Development Research News October – December 2015

Philippine Institute for Development DEVELOPMENT Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas RESEARCH NEWS

Vol. XXXIII No. 4 October – December 2015 ISSN 0115-9097

PIDS, NEDA, 3ie bolster Editor’s Notes campaign to create a culture We bid goodbye to 2015 by featuring the Institute’s main research work since 2014— impact evaluation. One of the Institute’s of evaluation biggest challenges to date, this project has two components. One is building the capacity of technical staff of oversight agencies like the National Economic Knowing what works and what does not is vital in ensuring that government and and Development Authority and the donor funds are used sensibly, and that limited resources are spent on cost-effective Department of Budget and Management projects and programs. in conducting impact evaluation. A total of 300 staff have been trained so far. A new way of doing this is through a special type of research called impact evaluation More will be capacitated in 2016. PIDS (IE). Through IE, policymakers and program implementers are able to ascertain and the International Initiative for Impact whether a particular program is achieving its objectives and whether the results are Evaluation will hold a 10-day intensive attributable to the intervention. impact evaluation course in January. We envision that our “graduates” from these The Philippine government, in its efforts to promote greater transparency and training courses will serve as our partners accountability, has started doing IE in 2014 through a project of state think tank in diffusing the importance of impact evaluation in governance. Philippine Institute for Development Studies (PIDS). Spearheaded by the National Economic and Development Authority (NEDA) and the Department of Budget The other component is assessing the and Management (DBM), the project involves the conduct of IE studies on key effectiveness of key government policies and programs. This component consists of 23 impact evaluation studies on agriculture

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What’s Inside

6 PIDS studies explore core irrigation problems, propose means to curb poor irrigation performance 9 PIDS brings research findings to Congress through policy dialogues

For IE to become an effective tool in evaluating government policies, projects, and programs, policymakers and program 12 Bottom-up budgeting can empower implementers should understand and appreciate its importance in making development interventions work. Photo shows local communities if refined local and foreign staff from various organizations discussing about IE during a workshop at the 2014 international conference “Making Impact Evaluation Matter” organized by the Philippine Institute for Development Studies, the International Initiative 14 Community Mortgage Program: for Impact Evaluation, and the Asian Development Bank. (File photo by Jigs Tenorio / PIDS) Does it work? Development Research News October – December 2015

government programs and projects and Llanto also informed the audience that underinvestment and start promoting a capacity-building programs for aside from the IE studies that PIDS has culture of evaluation,” he stated. various government agencies and been undertaking, it has been involved selected state universities and colleges in conducting technical courses on IE. So In July this year, the government (SUCs). The project was the brainchild far, about 300 staff from NEDA, DBM, finalized the National Evaluation Policy of NEDA Director-General and and other agencies have been trained. This Framework (NEPF) through a Joint Socioeconomic Planning Secretary number is expected to increase because Memorandum Circular between the Arsenio Balisacan and Budget Secretary a two-week training course from January NEDA and the DBM. Florencio Abad in support of the Aquino 4 to 15 next year is being organized by administration’s reform program. PIDS and 3ie. Around 30 participants According to Esguerra, the NEPF from selected regional universities and provides for the assessment of the For IE to become an effective tool for other government agencies are expected to outcomes, efficiency, and impact of ensuring that development interventions attend. Aside from covering the concepts national projects and programs. It are achieving their intended objectives, of IE, the course will teach participants also aims to further improve resource it is important for policymakers and commonly used econometric and statistical allocation processes for various program implementers to understand methods to evaluate the impacts of government projects and programs. and appreciate its importance in social and other programs in developing development work. countries. It will include both randomized “We want to mainstream IE using and nonrandomized IE methods. standardized procedures in the practices Thus, on December 16, senior of the bureaucracy so that we are well- government officials from the ranks of Institutionalizing IE informed whether interventions are undersecretary and assistant secretary of making a difference in the lives of our government agencies were invited to the In his opening remarks, NEDA people, or if not, whether we can improve Policy Forum on Impact Evaluation held Deputy Director-General Emmanuel them or discard them altogether. Through at Marco Polo in Ortigas Center, Pasig Esguerra stressed the importance of the budget provisions for the conduct City. The event, which was attended by institutionalizing IE across government. of policy evaluations, we want to make representatives of the Department of sure that all government agencies, Education (DepED), Department of “With the institutionalization of rigorous including SUCs, government-owned Labor and Employment (DOLE), Office impact evaluation, we will be more and controlled corporations, and local of the Presidential Adviser on the Peace confident about the basis for our policy financial institutions are equipped with Process (OPAPP), and the Supreme decisions. From a fiscal standpoint, it the necessary analytical tools to ensure Court, was aimed at discussing ways on also assures us that our limited resources the relevance and effectiveness of their how government agencies can use IE in are efficiently allocated and effectively projects,” Esguerra explained. assessing their programs and projects. utilized,” he maintained. It was jointly organized by the PIDS, Under the NEPF, evaluation units of NEDA, and the International Initiative However, he noted that conducting IE each implementing agency, namely, the for Impact Evaluation (3ie), with of the “good kind” is not easy to do. The evaluation task forces and the interim support from the Australian Agency for conceptual and measurement issues are technical working groups, will work to International Development. aplenty, not to mention the technical ensure the smooth and efficient process difficulty of data collection and the flow of evaluation projects. A six-year PIDS President Gilberto Llanto, in his specialized set of skills required to do IE. evaluation agenda will then serve as opening remarks, explained why the a guide to align the projects with the strong support of officials from each “Thus, there is a tendency to underinvest Philippine Development Plan and the department is needed. “To sustain in honest-to-goodness IEs, with Public Investment Program. what we started, we need to bring the policymakers opting to focus only on importance of IE to the consciousness of projects that work well or on the short- Esguerra also mentioned three ongoing other officials.” term benefits of certain projects. Through IE studies being conducted under the 3ie’s this forum, we hope to correct this Policy Window Philippines. One is for

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“What is not so obvious, but nonetheless a real challenge to policymakers like yourselves, is actually using this research, and making sure that the policy development process you undertake, from formulation of policies to implementation, and to evaluation, is governed by good evidence. In principle, we all agree that it should be like this, but often, it is not so in practice,” Biti noted.

Likewise, she pointed out that research uptake does not come easily and has its own set of challenges. Having a good IE strategy, she said, is needed in order to take advantage of the opportunities that good evidence provides.

3ie Executive Director Emmanuel Jimenez (left) and NEDA Deputy Director-General Emmanuel Esguerra (middle) listen She cited the DSWD’s conditional cash on as PIDS Visiting Research Fellow Vicente Paqueo answers a question from a participant of the Policy Forum on Impact transfer program or 4Ps as by far the Evaluation held on December 16, 2015, in Pasig City. (Photo by Jigs Tenorio / PIDS) most successful policy intervention that has withstood political pressures, the Special Program for the Employment conditions of those who have participated misunderstandings, and vested interests. of Youth of the DOLE, which currently in them and by how much. We shall She credited the success of the 4Ps to serves more than 150,000 students also be on a more solid ground when we DSWD’s investment in establishing hard annually by linking low-income youth argue whether any of them ought to be evidence through IE and use of research to formal work opportunities while discontinued, expanded, modified, or to explain and defend the program’s on school break. Under this program, terminated,” he maintained. worth. employers are offered a 40-percent wage subsidy and a matching process Australian Aid Counsellor Robyn Biti, Meanwhile, the Australian government is likewise facilitated. Meanwhile, in in her message, alluded to the earlier launched research grants for the Policy the Sustainable Livelihood Program of remarks and highlighted the role of IE Window Program of 3ie, which aims the Department of Social Welfare and in assessing policies and programs of to support the DSWD in undertaking Development (DSWD), the beneficiaries government, particularly in determining another IE study for its Sustainable of the Pantawid Pamilyang Pilipino whether these interventions have actually Livelihood Program. In addition, as Program (4Ps) are directed to either the made a difference in people’s lives. earlier expressed by Esguerra, research microenterprise development or the grants have been extended to three other employment facilitation track, both of “Through IE, we will be able to assess agencies of the Philippine government— which have the goal of bringing the poor whether taxpayers’ money has been OPAPP, DOLE, and the Supreme Court— out of poverty. The third project is the used wisely. IE helps inform decisions to establish the impact of their respective Mapayapa at Masaganang Pamayanan and provide accountability for actions,” selected interventions. or the PAMANA project of the OPAPP she emphasized. that caters to the peace and development “The potential of these studies to needs of conflict-affected communities She added that through the research- demonstrate the value of their policies is through a number of interventions. based evidence produced from IE, huge and we eagerly await their results. As program implementers in Australia are we approach a new Philippine leadership “Sometime next year, through these IE able to get the backing of policymakers next year, the importance of establishing studies, we shall be in a better position and the public for otherwise unpopular the impact of these programs to the to say if these projects have improved the but necessary public programs.

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lives of their beneficiaries is all the more highlighted,” Biti concluded.

What is impact evaluation?

3ie Executive Director Emmanuel Jimenez talked about why IE studies are needed, when they should be used, and how they are implemented.

According to Jimenez, in conducting IE, it is important to study the changes in outcomes that can be attributed to the intervention. An intervention could be a policy, program, or project. To do this, one has to ask the question of the counterfactual: What would have happened without the intervention or program? For Education Secretary Br. Armin Luistro, IE can help many of the government programs to succeed. (Photo by Jigs Tenorio / PIDS) To demonstrate this concept, he cited a World Bank-financed health reform pilot project in Russia. It was observed that methods like randomized control trials Among the countries that have health outcomes were improving even or quasi-experimental methods. institutionalized IE are Mexico and before the project started and that health South Africa. Both countries have come outcomes were also improving in all the Thus, he emphasized that rigorous up with national evaluation frameworks, other regions in Russia. Thus, in this evaluations are needed to be sure that which are joint initiatives of both the particular case, improvement in health changes in outcomes are attributable to executive and legislative branches. They outcomes could not be attributed to the the interventions. are supported by central secretariats of health reform pilot project. seasoned and qualified professionals that Jimenez also discussed some of the consult across ministries. “One problem is the effect of outside important elements that could lead to factors. When we are evaluating successful take-up of evidence, namely, “Institutionalizing impact evaluations projects, we typically have comparators,” quality, leadership, engagement, and requires a change in culture that needs Jimenez stressed. timeliness. First, research should be strong leadership in a broader evaluation of high quality for the findings to be system, an open and credible system A second problem, Jimenez pointed out, credible. Second, IE requires buy-in of quality assurance, and a constant is implementation. One must make sure from key champions to be sustained engagement between evaluators and that implementation is actually done and institutionalized. Third, continued policymakers and implementers,” well. Another issue in implementing IE, engagement between researchers Jimenez stressed. according to Jimenez, is selection. “For and policymakers across all stages projects, differences between beneficiaries of conducting IE is crucial. It is also Examples of use of IE in the Philippines and nonbeneficiaries may not be due to the important that the demand for IE is project at all. It could be due to participants coming directly from the implementing To illustrate how IE methods can be self-selecting or not,” he explained. agencies. Fourth, results from IE studies applied to policies, programs, and must also be communicated well. They projects, PIDS Visiting Research Fellow According to Jimenez, there are should be given to policymakers when they and former World Bank Lead Expert a number of ways to establish the need them and not when researchers are Vicente Paqueo presented three studies counterfactual, such as experimental ready to publish. that evaluated the impact of the programs

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on their intended beneficiaries. These project and in ensuring its effectiveness Meanwhile, IE studies on the impact of studies include the impact of 4Ps on and sustainability. the KALAHI-CIDSS on civil conflict education, health, and other welfare have helped shed new light on the outcomes; minimum wage policy on IE methodology can also be used to mechanisms that link aid and conflict. employment and income; and Kapit-Bisig evaluate the impact of policy, not just There have been studies showing that Laban sa Kahirapan-Comprehensive and programs and projects. development projects reduce civil Integrated Delivery of Social Services conflicts. However, there is also the (KALAHI-CIDSS) on civil conflict. “The risk and cost of adopting policies alternative view that a promising without appropriate empirical evidence development program can undermine According to Paqueo, looking into these can be substantial. Likewise, the use of popular support for insurgents’ cause studies will help policymakers and foreign evidence as basis for formulating so there is a tendency for the insurgents program managers appreciate the value of policy without validating it against local to sabotage the program to discourage IE in estimating the effects as well as the experience can be dangerous and costly,” communities from participating. causal mechanisms that generate those Paqueo cautioned. effects, which can eventually lead to more One IE study strongly suggests that effective and efficient interventions. In the case of the legal minimum wage KALAHI-CIDSS, in fact, led to an (LMW) policy, IE studies were able to increase in violent conflict. Therefore, The World Bank has cited the 4Ps as one uncover the counterintuitive effects of there is a need for government to of the largest and best-targeted social this policy. recognize this reality so that appropriate safety net programs in the world. measures can be taken proactively to Paqueo noted that 82 percent of the Advocates of the LMW believe that this maximize program success without benefits of the 4Ps go to the bottom policy increases household income, intensifying civil conflicts. 40 percent of the Philippine population. particularly of poor minimum-wage The bottom 40 percent comprises the workers, and therefore reduces poverty Paqueo pointed out that there has been country’s poorest households and those incidence rate. They also cited empirical a trend in promoting the conduct of IE described as highly vulnerable to poverty. evidence from the United States and in recent years but this is not enough. other developed countries to support There are still too few IE studies. Paqueo Patterned after the successful conditional their contention that LMW does not noted the lack of capacity, budget, and cash transfer programs in Mexico, Brazil, hurt employment. appreciation of the benefits of a good IE. and Colombia, the 4Ps was launched The costs are also substantial, but it is during the Arroyo administration as a However, an IE study of PIDS conducted important for policymakers to consider small-scale pilot project. The Aquino by Paqueo and colleagues Aniceto investing in IE because it can promote administration then scaled it up after wide Orbeta of PIDS, Leonardo Lanzona of transparency and accountability, as well consultations with stakeholders. Ateneo de Manila University, and Dean as improve the quality of development Dulay estimated that a rise in LMW interventions. Based on studies conducted on the would significantly decrease average impact of 4Ps, it was established that the household income by 20 percent and Appreciating the value of IE project has been effective in improving increase poverty incidence by key education and health indicators like 1.7–3.0 percentage points. The policy forum concluded on a high children’s school enrollment rate, school note with the remarks of Education attendance, and reduced stunting. Self- “Thus, IE allows us to recognize Secretary Br. Armin Luistro. Opening rated poverty among beneficiaries has also adverse, unintended consequences of his speech by expressing one of his many been declining. Meanwhile, concerns about rapid increases in LMW. The evidence take-aways from the discussion, Luistro 4Ps encouraging laziness and dependency is also important for tempering labor said that paying attention to the value have been found to be baseless. unions’ demand for huge LMW increases of IE can help many of the government’s and for highlighting the need for programs to succeed. Thus, these findings are important in alternative and compensatory measures,” responding to concerns about the Paqueo noted. c p. 16

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PIDS studies explore core irrigation problems, propose means to curb poor irrigation performance

The sufficiency of water t Thishat seemingly low public investments the two types of irrigation system in the flows through every farming system on irrigations result in low productivity, Philippines. NIS are large gravity systems contributes to rice productivity. Water issues in construction and design, and that cover more than 1,000 hectares, while scarcity in rice fields often leads to major concerns in terms of operation and CIS are typically smaller in size. poor harvest, which, in turn, affects maintenance (O&M). farmers’ incomes, food prices, and food According to Roberto Clemente, a PIDS availability. Irrigations, hence, play a This, then, raises the question: What consultant, and his team, NIS suffer from fundamental role in making sure there is should be done to address the poor siltation and flooding problems, as well rice on every Filipino table. performance of the irrigation sector, as from illegal settlers that dwell near particularly in its development and NIS, improper waste management, and However, the irrigation sector in the management? A PIDS-funded project illegal pumping. These, in return, cause Philippines has long been facing issues titled “Characterizing the Governance issues in water quality and inequality in of underdevelopment, mismanagement, Structure of the Irrigation Sector in water distribution. and environmental degradation. Despite the Philippines”—together with its receiving a third of the total budget of the component studies—pinpoints an To address these issues, the National Department of Agriculture, the sector has inclusive approach to tackle the complex Irrigation Administration (NIA)—which always fallen short in delivering what is issues that hound the irrigation sector. governs the planning, construction, expected from it. For instance, according The project was aimed at assessing and O&M of NIS—should adopt an to a study by Roger Luyun Jr., consultant at the technical and institutional aspects integrated water management approach the Philippine Institute for Development of irrigation systems, analyzing that (1) controls damaging runoff, (2) Studies (PIDS), only about 57 percent of opportunities in increasing farmers’ conserves water and soil, (3) enhances the total irrigable area in the Philippines access to irrigation water, and providing water resource, (4) moderates flood have been developed for irrigation. recommendations to strengthen peaks in downstream areas, and (5) institutional infrastructure. increases water infiltration. Moreover, to “Although there are massive rehabilitation improve efficiency in water allocation and efforts and funds for the construction of According to Agnes Rola, also a PIDS distribution, continuous maintenance and new irrigation facilities, the increase in consultant, innovation and technological timely rehabilitation of canals and other irrigation area is minimal,” Luyun explained. advancements in the sector are not irrigation infrastructures are warranted. enough to address the issues. The In fact, a study by Wilfredo David, governance aspect, including policies and Farmer-owned CIS, meanwhile, are professor at the University of the institutions, should also be included in the facing challenges brought by lack of water Philippines, and his team reported that picture, she noted. supply, sedimentation (i.e., buildup of between 1995 and 2005, the rate of increase sand and dirt in the bottom of the canal), in actual irrigation service areas is only Irrigation systems and low irrigation efficiency made more about 10,000 hectares per year, while the complicated by the shortcomings in dam deterioration rate is overwhelming at National irrigation systems (NIS) and design. According to Luyun, a water 134,000 hectares per year. communal irrigation systems (CIS) are management scheme should be put in

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place together with a water scheduling agreement to address water scarcity, especially during the dry season. Because water supply—its sufficiency or insufficiency—is interrelated with other CIS problems, addressing this issue is a primary concern.

“When the water supply is unreliable, it also becomes difficult to organize farmers to participate in O&M activities. This, together with ineffective irrigation water management, leads to lower crop yields in both the wet and dry seasons,” Luyun argued. Hence, he suggested for the NIA to collate all historical or The Anao CIS dam (above), one of the CIS covered by the PIDS-funded project, was constructed after the previous dam generated synthetic streamflow data tilted due to the scouring at the downstream area of the dam. (Photo by Engr. Rory Abance / NIA) to identify potential sites for diversion dams and storage reservoir. climate change—surfaced to be the main and the Department of Environment To limit sedimentation in the canals, Luyun concern of the IAs. Nguyen’s team noted and Natural Resources (DENR), the proposed the provision of silt control that “water scarcity or declining water NIA is tasked to undertake the planning, devices for sediment-laden rivers, and the quantity, whether in NIS or CIS, needs maintenance, and rehabilitation of use of Sabo dams to minimize the effect to be addressed to increase agricultural irrigation systems, particularly NIS. of lahar and volcanic flow. Like Clemente production.” IAs, then, should implement However, according to Rola, multiple and his team, Luyun also called for a water scheduling and distribution policies agencies in the country have legal watershed protection program in place. to expand system performance. mandates for water governance, but these Lastly, he urged the NIA to check for design agencies do not coordinate with each shortcomings—especially those that affect To further improve farmers’ access to other. For instance, the DENR and the NIA O&M—in existing irrigation systems. irrigation water, the team recommended do not coordinate on matters regarding the following: (1) repairing and watershed management, which is an Access to irrigation water rehabilitating irrigation facilities, (2) important factor in irrigation development. strengthening the capacity of IAs on water Irrigators associations (IAs) are organized and system management, (3) enhancing Rola also found out that even within to operate and maintain irrigation facilities institutional development of IAs to the irrigation sector, there are multiple or systems, particularly CIS. However, improve management and governance, agencies that are duplicating various these IAs, based on the study of Miriam and (4) rethinking the policies on functions. These multiple agencies that Nguyen, another PIDS consultant, and her irrigation management transfer for the have similar tasks weaken the mandate team, are beset with problems that limit NIS and the devolution of CIS to local of the NIA. As an example, the Bureau of their productivity, particularly for those government units (LGUs). Soils and Water Management (BSWM) whose farms are in the downstream area of has the same water management the irrigation system. Strengthening institutional mandate as NIA, only in a smaller scale. infrastructure However, the no-cost-recovery policy of Inadequate water supply—which is the BSWM confuses the IAs, allowing the attributed to water allocation and Together with other government agencies, farmers to refuse to pay amortization to distribution, watershed degradation, and such as the National Water Resource Board the NIA.

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To address all these, Rola suggested to craft an integrated irrigation development plan that will oblige all agencies working on irrigation to coordinate their projects, sites, and respective IAs. She added that there must be a substantial effort to have science-based planning to depoliticize policy decisions. Moreover, Rola put forward the need to revisit the provisions of the Agriculture and Fisheries Modernization Act on the role of LGUs in developing CIS. According to her, LGUs have no technical capacity to manage CIS, and there is yet to be an LGU to embrace such function.

“LGUs are more dominant and have Locals take part in clearing the settling basin through combined manual and hydraulic flushing using a silk ejector. (Photo by Engr. Rory Abance / NIA) the money, but there are project delays due to many procedures that the LGUs are not familiar with. The NIA provides technical advice, but this step adds another layer to the project cycle,” The PIDS studies, which covered 66 Philippines. PIDS Policy Notes explained Rola. CIS and 22 NIS in 16 provinces in Series. Forthcoming. Quezon City, Luzon, clearly demonstrate the need for Philippines: Philippine Institute for Lastly, Rola also said that there is a need both short- and long-term solutions to Development Studies. to rationalize the many agencies that resolve, once and for all, the perennial David, W.P., M.L.F. Delos Reyes, M.G. deal with irrigation. She suggested that underperformance of the country’s Villano, and A.L. Fajardo. 2012. Faulty the funds for new irrigation projects, irrigation sector. These solutions design parameters and criteria of rehabilitation, and restoration; O&M include a systematic approach to water farm water requirements result in cost; and IA management should allocation and distribution, an integrated poor performance of canal irrigation be delegated to the NIA alone for development plan, and a review of systems in Ilocos Norte, Philippines. consistency in role implementation. existing policies and regulations that Philippine Agricultural Scientist possibly hamper the growth of the 95(2):199–208. Inclusive approach irrigation sector. Without an inclusive Luyun, R.A. 2015. Technical assessment approach, the sector will continue of communal irrigation systems in Policy coordination, hence, is a vital step to to deliver poorly despite the huge Luzon. PIDS Policy Notes No. 2015-27 correct the inconsistencies in the approach investments it gets. MVPA Quezon City, Philippines: Philippine of the government, particularly the NIA, Institute for Development Studies. in addressing the poor performance of References Nguyen, M.R., A.C. Rola, D.D. Elazegui, irrigation systems in the Philippines. An A.B. Inocencio, M.C.A. Alvarez, and inclusive approach that tackles the issues Clemente, R.S., A.B. Inocencio, A.C.C. Rola. 2015. Increasing farmers’ from the IA level to the national level, A.L. Fajardo, V.G. Ballaran, and access to irrigation water. PIDS Policy which also recognizes the adverse effects J.C. Ureta. 2015. Technical and Notes Series. Forthcoming. Quezon of climate change and environmental institutional evaluation of selected City, Philippines: Philippine Institute degradation, should be prioritized. national irrigation systems in Luzon, for Development Studies.

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PIDS brings research findings to Congress through policy dialogues

To further encourage the use of industry in the Greater Capital Region, would be close to nothing. Under the research and evidence in policymaking, and a paper on reducing regulatory BUB process, CSO participation is at state think tank Philippine Institute for burden and improving regulatory quality. 50 percent, compared to the 25-percent Development Studies (PIDS) resumed participation of CSOs allowed in the its partnership with the Congressional Evaluation of the bottom-up budgeting normal local budgeting process under the Planning and Budget Research process Local Government Code. Department (CPBRD) of the House of Representatives by co-organizing Started in 2012, the BUB process aims Despite all of these, however, Manasan policy dialogues on a number of issues to promote the participation of citizens remarked that the CSOs will be more confronting the country. in identifying projects at the local level empowered and their decisionmaking for funding by the national government. more enhanced if the BUB process will Dubbed as the PIDS-CPBRD Legislative It also aims to help the poorest local be refined. Manasan noted that CSOs are Forum Series, the partnership aims to government units (LGUs) work their way generally only able to participate in the discuss policy issues and options with out of poverty by providing additional BUB process in terms of the planning legislators based on research studies funding for the most critical poverty- and project prioritization stages. conducted by PIDS. alleviating programs identified by LGUs However, she noted that the mechanisms and civil society organizations (CSOs). to monitor the implementation and According to PIDS President Gilberto evaluation of their projects do not exist. Llanto, the forum series, which started in Dr. Rosario Manasan, senior research This, Manasan emphasized, dampens the 1999, hopes to give legislators concrete fellow at PIDS, in a presentation on inclusiveness of the BUB process. basis in coming up with the right policy November 10, noted that the program interventions to society’s problems. has performed well in accomplishing Meanwhile, on the second objective of its first objective of making the budget alleviating poverty, there has been no CPBRD Director-General Romulo process a participatory exercise. concrete evidence showing that BUB has Miral stressed that the discussions could been effective in reducing the number supplement the committee hearings “For the first time, the CSOs felt free to of poor people in a locality. She argued being conducted by Congress. But unlike speak and that their inputs were being that this is partly due to the absence of committee hearings, the PIDS-CPBRD listened to,” Manasan related. However, monitoring mechanisms and the slow seminars are less formal, encouraging to enhance the quality of participation implementation of the projects. freewheeling discussions. by CSOs, she suggested that there should be enough time for discussions and (See box article on page 12 for more This year, four research papers were deliberations to enable them to come up information on the BUB assessment.) presented as part of the series, touching with project proposals that are sustainable on the following topics: an evaluation and beneficial to more people. Assessment of the government’s of the bottom-up budgeting (BUB) postharvest facilities process, an assessment of the Department She also pointed out that without the BUB of Agriculture’s postharvest facilities, as a mechanism, the participation of CSOs The government has been spending a system-wide study of the logistics in identifying projects and programs significant amounts of money to set up

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facilities for reducing postharvest losses buying prices compared to private traders the management, operation, viability, and among farmers. These programs cover and millers,” the authors noted. sustainability of these PHFs are addressed. various stages of the food supply chain, such as on-farm postharvest activities, The authors computed the total gain in Based on their design capacities, each processing, logistics, marketing, and farmers’ income due to higher buying RPC can service 1,000 hectares of trading. The PIDS, through Drs. Nerlita prices at around PHP 13.9 million. production area. But in order for these Manalili, Kevin Yaptenco, and Alessandro Without these facilities, farmers could facilities to operate at full capacity, the Manilay, assessed the effectiveness of easily lose some PHP 286.96 million. authors suggested an investment of these facilities to determine if they are around PHP 80 million for each site. worthy of government investments. Food terminals in these four provinces where RPCs are located were also found Increasing the investment in RPCs will In a presentation on November 25, to be effective in helping provide agro allow them to buy more rice paddies from Manalili and her co-authors noted that, suppliers with access to markets. As a farmers. To achieve this, RPCs should overall, the postharvest facilities (PHFs) result, availability of commodities and also invest in more cargo trucks for timely they assessed have a positive impact basic goods has improved. Likewise, pickup of harvested paddy and delivery of in addressing postharvest losses and the increased economic activities milled rice, the authors proposed. improving the marketing system for rice brought by these food terminals have and high-value crops. created more employment and business Additional investments in RPCs, however, opportunities. should be subject to performance They explained that access to PHFs can evaluation of factors such as the ability of increase rice farmers’ income because The PIDS paper, however, argued that an RPC to produce good-quality milled using modern technology allows them benefits from these facilities can still be rice products, maintain healthy financial to produce good-quality milled rice and improved if the operating capital for these standing, and have a positive impact on reduce postharvest losses. RPCs is increased and if issues related to farmers, the paper suggested.

Specifically, they assessed the rice processing centers (RPCs) in the provinces of Pangasinan, Davao del Sur, Bohol, and Iloilo. These RPCs, which were established through a PHP 648-million grant by the Korea International Development Agency (KOICA) with counterpart investment from government and farmer beneficiaries, are equipped with modern milling and drying equipment. Under the deal with KOICA, the Philippine government, through the Department of Agriculture, provided counterpart investment of PHP 20 million for each of the four sites while farmer organizations who are the beneficiaries of the projects were required to put in an additional PHP 2 million per site as part of the working capital for these RPCs.

“Farmers are assured of competitive prices for their wet paddies even during periods A normal day at the Port of Manila—the port preferred by shippers because of the availability of shipping lines; its proximity to consignees, importers, and warehouses; and the reliability of its shipping schedule compared to other ports. of oversupply because RPCs offer higher (Photo by Matikas 0805 via Wikipedia)

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System-wide study of the logistics However, the continued dominance of the President Gilberto Llanto. He examined industry in the Greater Capital Region Port of Manila, which currently has an the case of reducing regulatory annual cargo-handling capacity of burdens and improving regulatory Due to the worsening traffic situation, the 3.7 million containers, has contributed to quality in the Philippines. City of Manila implemented a truck ban the congestion not only of roads within in 2014 that lasted for seven months. With the port area but also along major roads As a signatory to the ASEAN Economic the reduced operating hours of container in Metro Manila. The seven-month truck Community (AEC) 2015 and other trucks plying the city streets, this resulted ban aggravated the situation. regional trade agreements, it is imperative in delays in the delivery of goods, for the Philippines to improve its overall accumulation of containers at the port, As a short-term measure to reduce business and economic environment slowdown in the logistics chain in and out congestion in the Port of Manila and to stimulate investments and growth of the port, empty containers returning encourage use of the Batangas and Subic through regulatory frameworks that are to the port, increased trucking and port Ports, the PIDS study recommends to harmonized with those of other ASEAN costs, and shipping line charges. government to issue a policy statement member-states. However, Llanto stressed that puts a cap on the capacity of Manila’s that even without globalization or the A PIDS study estimated the economic ports. Moreover, government should AEC 2015, there is still a need to improve cost of the port congestion during the allow cargoes bound for or coming the quality of regulations in the country. truck ban period at PHP 43.85 billion from the south of Manila to call on the due to decrease in customs revenues, Batangas Port, while those bound for or A poor regulatory environment, output and productivity losses, and coming from the north of Manila should according to Llanto, undermines increased vehicle operating costs. be allowed to call on the Subic Port. The business confidence and competitiveness, revival of the rail freight by the Philippine erodes public trust in government, In a presentation on December 2, National Railway must also be explored. and encourages corruption in public Dr. Epictetus Patalinghug, professor The paper also recommends the rollout institutions and public processes. emeritus at the University of the of a 24-hour web-based integrated truck Philippines and PIDS consultant, dispatching, appointment, and booking To improve the quality of regulations, presented the findings of a PIDS study system to improve the logistics chain. Llanto is espousing the establishment of that looked into the issues surrounding a formal regulatory management system the congestion in the Port of Manila and However, a long-term solution to the (RMS) with four elements: regulatory the underutilization of the Batangas and port congestion problem, according policies, regulatory institutions, regulatory Subic Ports. He explained some of the to Patalinghug, is to have a national procedures, and regulatory tools. A reasons why shippers, freight forwarders, multimodal transport and logistics formal RMS, he said, can help to reduce logistics services providers, and truckers development plan with special emphasis regulatory burden on citizens and firms, prefer the Manila Port over Batangas on connecting the Subic-Clark-Manila- improve regulatory quality, and identify and Subic Ports. At the same time, he Batangas corridor to the rest of the the best choice of policy options. presented short-, medium-, and long- country. Also, construction of a new and term measures to address the congestion large deep-sea port must be pursued He cited the case of Malaysia, which and underutilization issues. along with an investment plan for new adopted an RMS process, wherein rail, maritime, port, airport, and road regulators proposing new regulations The Port of Manila is preferred because infrastructure to link the Philippine ports or regulatory changes must undertake of the availability of shipping lines, its to the global supply chains. a regulatory impact analysis (RIA). proximity to consignees, importers, and Likewise, notice of proposed regulations warehouses, and the ease of transaction Reduce regulatory burdens, improve and amendments must be given so that and release of goods due to the presence regulatory quality there is time to make changes and to of specialized Bureau of Customs staff. take comments from affected parties The Port of Manila also has a more The last and fourth paper presented in into account. reliable and frequent shipping schedule Congress on December 9 as part of the compared to Batangas and Subic Ports. forum series was a paper written by PIDS c p. 16

11 Development Research News October – December 2015

Bottom-up budgeting can empower local communities if refined

According to a recent assessment conducted bottom approach in identifying issues and for the first time, they could speak freely and by researchers of state think tank Philippine implementing projects and programs, the their voices were being heard. Institute for Development Studies (PIDS), BUB enjoins the participation of all sectors of local community stakeholders of some of the local community. The authors of the Agusan del Norte report, the poorest municipalities in the country are Skilty Labastilla and Clarice Colleen Manuel, pleased to participate in the government’s CSOs and local government units (LGUs) said the CSOs were generally pleased to bottom-up budgeting (BUB) program. convene to deliberate the issues in their participate in the program, going as far as But to completely succeed in its primary community. They eventually consolidate the supporting a nationwide signature campaign objectives, the program needs refinement, results of their deliberation and recommend to institutionalize the BUB. most importantly in the aspect of project solutions that they feel are addressing the implementation. most pressing concerns they face. They elect In Camarines Sur, the research pair of Cleofe representatives to the LPRAT, which identifies Pastrana and Marites Lagarto reported in The research team, led by PIDS Senior and prioritizes the relevant programs and their study that trust has been rekindled Fellow Rosario Manasan, evaluated the projects, and endorses their final proposal to between local community stakeholders and BUB process using the participation of civil the Department of Budget and Management the national government. society organizations (CSOs) as a benchmark (DBM) for review. to assess the aspects of inclusiveness, The BUB process bypasses the patronage quality of participation, and quality of the After reviewing the proposal, the DBM system of previous special projects funding projects that their respective Local Poverty forwards the approved projects to the schemes like the Priority Development Reduction Action Team (LPRAT) came up concerned national government agencies Assistance Fund. The structure and process of with. The team conducted focus group (NGAs), along with the funding, for the BUB give CSOs and the local community discussions and key informant interviews in implementation. If an LGU has the capacity a direct bottom-up approach line to the 12 municipalities in the provinces of Agusan to implement the projects, as measured NGAs, which oversee implementation and del Norte, Zamboanga del Norte, Antique, by its attainment of minimum governance facilitate funding. Furthermore, the NGAs and Camarines Sur. standards such as the seal of good are in constant engagement with the local housekeeping, it may implement the project. stakeholders, providing implementation The BUB is a participatory budgeting scheme guidelines and other important information. designed to facilitate inclusiveness in local Positive assessment governance, and to help many areas in But the BUB process is not without its the Philippines climb out of poverty. The The assessments done in Agusan del Norte problems. participation of citizens is a fundamental and Camarines Sur revealed varied results feature of the program. and observations. But the common opinion Issues with inclusiveness among stakeholders was that the BUB was and implementation Known originally as the Grassroots effectively inclusive. It empowered CSOs Participatory Budgeting, BUB was rolled and stakeholders by giving them a voice in At a recent seminar held at the House of out in 2012. Unlike the traditional national the decisionmaking process of their LGUs. Representatives, Manasan brought up issues budgeting system, which uses a top- According to Manasan, the CSOs felt that, that mired the program’s inclusiveness thrust

12 Development Research News October – December 2015

Fisherfolk in Dagupan receive GPS-enabled Fish Finders—electronic devices that detect fish to help increase yield and lower down costs—funded by the BUB program that empowers communities in determining and implementing their own livelihood projects. (Photo courtesy of DILG via the Official Gazette) and questioned its ability to follow through implementation of projects as another reason the coordination between LGUs and other with implementation. to lose interest in and withdraw from the stakeholders in the BUB process. process. In Camarines Sur, more than two- In Agusan del Norte, Labastilla and Manuel thirds of the approved LPRAT projects for Labastilla and Manuel constructed their observed that political divisions and alliances 2013 and 2014 have yet to be implemented. recommendations around the same influenced the process of inviting CSOs to the There are also no uniform mechanisms for elements—improve CSO engagement and assembly, thereby weakening inclusiveness. the local communities to closely monitor the CSO-LGU relationship, improve facilitation of progress of their proposed projects. the BUB process at all phases to ensure fair There were also times when a degree of representation and informed decisionmaking, dissonance between LPRAT members and Addressing shortcomings and strengthen implementation and the CSOs they represented was observed. monitoring mechanisms. Sometimes, LGU leaders deliberately interfered The authors of both studies recommend and replaced the list of priority projects to giving emphasis on improving the Overall, the studies showed that the BUB is an usher their own agenda. Currently, there is no implementation and monitoring processes. important mechanism for increasing citizens’ mechanism in place to prevent this, or at the participation in the development of their very least, ensure that the projects the LPRAT Lagarto and Pastrana suggest that the communities. eventually proposed to DBM reflected the BUB should create a local monitoring issues identified in the CSO assembly. These team, capacitate CSOs, encourage them Manasan reckons that if the program will be situations led to disenfranchised CSOs opting to actively participate in the process, and refined further, and the implementation and to decline from participating in the following create a one-stop LGU office for information monitoring processes improved significantly, year’s assembly. dissemination, inquiry, and monitoring of the BUB can further empower local the BUB projects. Regional DBM officers communities whose voices need to be heard Another major shortcoming is in the must also undertake monitoring at their the most. MHB implementation phase. CSOs cited the slow own level. Their role is crucial in improving

13 Development Research News October – December 2015

Community Mortgage Program: Does it work?

T he CoMMUNITY Mortgage of Public Works and Highways. Forty The SHFC does not directly reach out to Program (CMP), run by the Social percent of these informal settlers reside in specific informal settlements or CAs to Housing Finance Corporation (SHFC), the National Capital Region, particularly acquire its services. Instead, the SHFC is a socialized housing program that in Quezon City. relies on agents called CMP mobilizers. makes it possible for informal settlers, CMP mobilizers introduce the as organized communities, to acquire The CMP addresses a market failure in program to the community and and become legal owners of the land housing finance by making it possible intermediate to help streamline the they occupy. for the poorest families in informal requirements, compliances, and settlements to legitimize their occupancy. obligations of both sides. Based on an impact assessment Being able to secure property rights helps conducted by state think tank Philippine informal settlers to improve their status The processes of applying for a loan, Institute for Development Studies in several ways. purchasing the land, developing the site, (PIDS), the CMP has remained a and improving the houses are long, with relevant program for helping informal The authors cited studies wherein meticulous requirements. The CMP settler families (ISFs) improve their lives, acquiring land ownership motivates mobilizer, who comes from various since its establishment in 1998. However, informal settlers to invest in the sectors of the community—government, Dr. Marife Ballesteros, senior research development of their households and nongovernment organizations, national fellow at PIDS, and her co-authors their communities. It also emancipates agencies, and private entities—helps the Tatum Ramos and Jasmine Egana, them from sudden eviction, gives them CA fulfill a 23-point requirement to get underscored that the CMP needs to access to loans, and gives them the ability their loans approved. improve significantly its service delivery to transfer the land. and program organization if it intends Once a loan is approved, there are three to achieve its objectives of helping poor The informal settler community elects phases of development where financing communities secure property rights a community association (CA) to occurs in increments. The SHFC loans and transforming the lives of informal represent them in the process. The CAs a maximum of PHP 100,000 for lot settler residents. play an important role—the land is acquisition, a maximum of PHP 30,000 titled to their name, they agree on the for site development, and a maximum of How does the CMP work? mortgage with the SHFC, and they are PHP 120,000 for housing materials. in-charge of individualizing the title Rapid urbanization begets a surge in and unitizing the mortgage to their Does the CMP work? population growth, which, in turn, member-households. Individualization increases the demand for housing. From means the titles are finally transferred According to Ballesteros and her 1991 to 2012, the size of ISFs in the from the CA to the individual co-authors, various factors revealed by country grew annually at 7.2 percent. As household, while unitization of the their case studies show that the CMP of 2011, there are over 1.5 million ISFs mortgage refers to the transfer from the needs improvement to be able to provide according to a survey of the National CA to the individual household of the better service to the communities, make Housing Authority and the Department loan payment transactions. its collection process more efficient

14 Development Research News October – December 2015

in order to strengthen the program’s and households. This leaves the program program pertain to problems that the continuity, and transform informal settler open to issues. That nonresident SHFC cannot control, such as land communities by strengthening their links households can be part of a CA is not constraints, tax-related constraints, and to the formal housing finance market. necessarily a problem. But the CA community-related constraints. tends to be “selective of their members”, Right now, some of the phases, preferring those that have the ability Recommendations requirements, and other elements of the to pay because project approval partly program miss out on its primary target depends on it. Again, this opens the door That the CMP is a relevant program recipients: the poor ISFs. for excluding the very poor. cannot be denied. But the authors surmise it to be slow in responding to the demand For example, the CA must grant Another way the poor can be excluded it has created. The number of projects and collateral and provide equity for the from the program is the system of beneficiaries between 1994 and 2014 has portion that the loan does not cover. substitution. On one hand, substitutions shown no significant change, serving only However, the SHFC does not monitor can be good for the program. They 13,000 households yearly. how equity is raised by the CA or how have a positive impact on the collection the CA and the landowner come to an efficiency rate. On the other hand, the The SHFC needs to be more proactive agreement on the price of the property. very poor—the ones who desperately in addressing targeting issues. It has to This makes it possible for the very need to access the loans to build their be more innovative in identifying the poor households to be excluded from shelters—may be the very households that qualify and those who the program because they do not have ones defaulting in payments and do not, those that should but cannot. The the capacity to raise enough money to getting substituted. authors specifically recommend mapping contribute to the community equity. out the location of ISFs and places in Aside from elaborate requirements (23 the country where poverty is highest. The SHFC also lacks a proactive position items as earlier mentioned) to get loans The SHFC should also provide clear when it comes to targeting communities approved, the other weaknesses of the guidelines on loan repayment.

To prevent the poor from being excluded through substitution, the authors recommend designing and implementing “an income-based subsidy scheme to enable access”.

They add that the SHFC should consider its role not as a financier, but as a development partner with an active, clear, and strong presence in the development and transformation of its beneficiary communities. It should initiate capacity-building programs to strengthen the CA and not just rely on the intermediary mobilizers.

Beyond granting loans, the SHFC should pursue an end goal of enabling the CA to The Community Mortgage Program needs to improve significantly if it intends to achieve its objective of helping informal transform and mature into a functioning settlers have a better life. (Photo by Mark Vincent Aranas / PIDS) homeowner’s association. MHB

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their programs, projects, and policies formal regulatory policy statement more comprehensively. IE will also help is the government’s declaration of Evaluation... from p. 5 and compel them to work together in the national competitiveness as a goal areas of research, implementation, and through Executive Order No. 571, which “Unless an agency is able to identify evaluation. GGM established the Public-Private Task Force what works and what doesn’t, a program on Philippine Competitiveness. However, or a project is just another activity. Llanto noted that under this program, Government agencies must acknowledge regulators are neither required to that they need IE,” he stated. undertake regulatory impact analysis nor issue regulatory impact statements (RIS). According to Luistro, when secretaries Policy dialogues... from p. 11 attend budget hearings, they need to supply “The most common tools used in evidence to stymie legislators’ parochial assessing the effect of regulatory changes interventions. Project heads and program “It is important to undertake a regulatory are descriptive analysis and standard leaders are often subjected to sermons impact analysis even before a certain cost-benefit analysis. Also, agencies are citing irrelevant and anecdotal data, and policy takes into effect to determine its not required to publish the results of their to soapbox grandstanding for political probable impact on the economy. One assessments,” he added. agenda. IE, Luistro said, is an important way to do this is through the conduct tool for departments to demonstrate to of a cost-benefit analysis, a systematic Thus, Llanto called for government to populist leaders that they cannot go against approach to estimate the strengths and exercise firm leadership and political a whole program on the basis of anecdotes. weaknesses of a regulation,” Llanto will in reducing regulatory burden explained. and improving regulatory quality. He “IE is also useful in media engagement. suggested the establishment of a formal Proper data have to be communicated As an example, Llanto referred to the RMS through the issuance of an executive to counter sensationalist headlines,” truck ban policy imposed by the City of order announcing RIA as a whole-of- Luistro added. Manila, which was implemented without government policy, and not for sector first computing its costs and benefits to regulators alone. Most of all, Luistro highlighted the value all sectors of the economy. He added of IE in engaging with other government that the estimates of the losses from this A central oversight body that will oversee agencies, nongovernment organizations, regulation came only after businesses the implementation of a formal RMS and other civil society groups. IE started to complain about it. must also be constituted. This body will can show the limitations of politics, oversee the conduct of RIA in national leadership, and bureaucracy. These In terms of reducing regulatory burden, government regulatory agencies and the limitations include term limits of local Llanto cited the experience of Viet Nam in issuance of regulatory impact statements. government executives and contradictions making its administrative system simpler, to national plans and agenda—things that, more efficient, and more transparent. He also stressed the need for regulatory among others, complicate budgeting. agencies to build their capacity in To do this, Viet Nam prepared a undertaking RIA and formulating IE makes it clear that it is important for standardized list of administrative RIS. To reduce regulatory burden, he government to practice coordination procedures, which are reviewed and recommended a systematic review of the and sharing of data. On this, Luistro assessed for their necessity, suitability, role, mandate, and stock of regulations of emphasized what the conduct of IE can and reasonability. Based on the regulatory agencies. Lastly, he called for teach the government in the area of data assessments, these administrative government oversight agencies like the handling and sharing. procedures are either retained, National Economic and Development simplified, or abolished. Authority to ensure a more intensive Lastly, institutionalizing IE, he involvement of the private sector, civil explained, will help the entities of the In the case of the Philippines, the society, academe, research institutions, government bureaucracy understand closest Philippine equivalent to a and media in regulatory reform. GGM

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Research Digests

Policy Notes 2015-23 Program (AFFP): Why a Second Look at Communal irrigation systems (CIS) are a Will the Philippines Benefit from the Its Implementing Guidelines Is a Must category of irrigation systems that are Regional Comprehensive Economic by Ma. Piedad Geron and Gilberto M. Llanto typically small in scale and constructed Partnership? The Agriculture and Fisheries Financing with the participation of farmer- by Caesar B. Cororaton Program (AFFP) is a PHP 1-billion flexible beneficiaries through their irrigators’ The Regional Comprehensive Economic credit facility that is intended for farmers association. This Policy Note examines the Partnership (RCEP) is a free trade area and fisherfolk who are non-agrarian reform common technical problems associated among the 10 member-states of the beneficiaries and are engaged in priority with the construction and operation and Association of Southeast Asian Nations or commodities identified by the Department management of CIS based on a study of 66 ASEAN and six non-ASEAN countries in Asia of Agriculture in the 20 poorest provinces CIS in 11 provinces in Luzon. The specific and Oceania (i.e., Australia, China, Japan, of the country. It aims to serve as an technical concerns examined include South Korea, New Zealand, and India). The alternative to the rigid and stringent credit the sources of water, sedimentation, and economies covered in the RCEP have a total facilities provided by banks. It seeks to design considerations from headworks to gross domestic product of USD 21 trillion ensure the availability of financing for the distribution systems of CIS. in 2013, and a population of 3.4 billion. This small farmers and fisherfolk and increase Policy Note examines the potential effects of their access to loans from formal sources. PIDS Book 2015-02 the reduction in RCEP tariffs and nontariff This Policy Note provides a summary of the Building Inclusive Economies, Building barriers on the Philippine economy using key findings and recommendations from a Better World: A Look at the APEC 2015 mathematical modeling. an evaluation of the AFFP. The findings Priority Areas (Volume 1) point to the need to review the program by the Philippine Institute for Development Policy Notes 2015-24 design and implementing guidelines of Studies and Philippine APEC Study Center Agricultural Credit and Policy Council the AFFP as the government seems to be Network (ACPC): Performing More than It Should going back to an old approach that did not The Department of Foreign Affairs, as chair by Ma. Piedad Geron and Doreen Carla Erfe work in the past. of the Asia-Pacific Economic Cooperation The Agricultural Credit and Policy Council (APEC) 2015 National Organizing Council (ACPC) has the mandate of coordinating Policy Notes 2015-26 Committee on Host Economy Priorities all credit policies and programs in support An Exegesis of Mediocrity: Institutions and as APEC National Secretariat, of the Department of Agriculture’s and Inclusion in the Philippines commissioned the Philippine Institute policy and program priorities. It is also by Raul V. Fabella for Development Studies, through the the administrator of the Agro-Industry The lack of inclusivity of economic growth Philippine APEC Study Center Network, Modernization Credit and Financing characterizes Philippine development. This to undertake research on the identified Program (AMCFP). This Policy Note discusses is evident in the perennially inadequate, priority areas of APEC 2015 in order the results of an assessment of the ACPC’s poor-quality, and non-inclusive public to gather expert analyses and insights role—as evaluator of credit programs, goods and services despite a growing that can serve as inputs to the various policy research body, and administrator and economy. This Policy Note, contributed discussions during the summit as well as implementer of the AMCFP vis-à-vis its legal by a National Scientist of the Philippines, help advocate domestic reforms in the mandates. The review mainly looked at the explains this phenomenon through the longer term. credit financing activities of the ACPC from concept of collective action. 2008 to 2012, specifically those pertaining This two-volume publication consists of to the AMCFP. Policy Notes 2015-27 policy papers written under the Research Technical Assessment of Communal Project APEC 2015. The project explores Policy Notes 2015-25 Irrigation Systems in Luzon the four priority areas of APEC 2015, Agriculture and Fisheries Financing by Roger A. Luyun Jr. namely, enhancing regional economic

17 Development Research News October – December 2015

integration, fostering small and medium thereby reducing income of rice farmers. Discussion Paper 2015-49 enterprises’ participation in the regional This study evaluates various payment Nongovernment Reforestation in the and global economy, investing in human schemes to serve as safety nets for rice Philippines: Review, Analysis, and Ways capital development, and building farmers after tariffication. Evaluation Forward sustainable and resilient communities. considers international experience with by Danilo C. Israel Volume I focuses on enhancing regional such schemes based on cost, efficiency, The study reviewed and assessed economic integration and investing in and coverage of farmers. A decoupled nongovernment reforestation in the human capital development. It is made payment scheme linked to above-baseline Philippines vis-à-vis government and up of papers that tackle the pathways to imports emerges as the most favorable total reforestation using primary and the Free Trade Area of the Asia Pacific, the option. Financial viability of the payment secondary data. The end purpose was role of services, APEC-wide connectivity scheme is further subjected to scenario to identify issues and problems related through infrastructure development, analysis using a supply-demand model. to nongovernment reforestation supply chain connectivity, and human Results suggest that significant financial and recommend actions that can be capacity building. support can be provided to the average undertaken to address them. The study rice farmer, with cost below the projected found that government reforestation Research Paper 2015-03 revenues from the rice tariff. dominated total reforestation while Assessment of the DSWD SEA-K Strategy nongovernment reforestation only has by Marife M. Ballesteros et al. Discussion Paper 2015-48 a relatively small contribution in recent This study assesses the effectiveness of Comparative Assessment of Proposals years. During the first three years of the strategy and the complementary to Amend the Personal Income Tax Law implementation of the National Greening interventions of the Sustainable by Rosario G. Manasan Program, in particular, nongovernment Livelihood Program’s Self-Employment Proposals to reform the personal income reforestation had been erratic, increasing Assistance Kaunlaran (SLP SEA-K). The tax have gained prominence in recent in 2011 but decreasing in 2012 and SLP SEA-K uses a microcredit strategy to months. This paper aims to evaluate 2013. The study asserted that private provide credit access to the poor, improve the various proposals in both houses of reforestation, or reforestation conducted the ability of the group to borrow, and Congress to amend the existing personal by the private sector under no agreement enable it to engage in income-generating income legislation. Proposals to amend with the government, has been the main activities. Microcredit services are the personal income tax schedule appear driver of nongovernment reforestation generally believed to have a positive to be well-justified from the perspective at present. However, its full development socioeconomic impact; however, the of (i) the need to eliminate the bracket as an industry has been hindered by success of projects may depend largely creep and (ii) easing the tax burden on various institutional, production, and on the management of the program. The Filipino personal income taxpayers relative marketing issues and problems. The authors found out that the government to their ASEAN neighbors. The projected study recommended ways to address lacks the capacity to handle microcredit revenue loss from proposals to restructure these problems and issues and move programs. Additionally, they see the one- the personal income tax is best seen in nongovernment reforestation forward. size-fits-all strategy of the program as a the context of the government’s overall problem because of the diverse range of revenue and tax effort. Fiscal prudence Discussion Paper 2015-50 beneficiary profiles. dictates that new revenue measures be Assessment of Sources and Utilization of found to compensate for the projected Funding of State Universities and Colleges Discussion Paper 2015-46 revenue loss that will arise as a result by Rosario G. Manasan and Ma. Laarni D. Options for Supporting Rice Farmers of the implementation of any one of Revilla Under a Post-QR Regime: Review and the various proposals to restructure the The implementation of the “Higher Assessment personal income tax. Thus, the questions Education Modernization Act of 1997”, by Roehlano M. Briones and Lovely Ann C. Tolin that beg to be asked is: What new revenue CHED Memorandum Order No. 20, Under the World Trade Organization, measure or combination of measures will and “Public Higher Education Reform the Philippines has maintained special allow government to recover the revenue Framework” granted state universities treatment for rice, which expires in loss from the new personal income tax and colleges (SUCs) the right to July 2017. Tariffication will involve structure? Possibilities include increasing corporatize and manage their own greater competition from imports and the VAT rate, excise tax on petroleum incomes. Given these laws and rules, the decline of domestic paddy prices, products, and road user’s tax. an assessment/review on the income

18 Development Research News October – December 2015

collection and utilization of SUCs has important, if not more so, on the accuracy Institutions of a higher standard may become mandatory. This study aims to and integrity of the SUCs’ Financial be interested in MOOCs primarily as a review the specific sources of internally Accountability Reports (as submitted to means of reducing costs and possibly generated incomes (IGI) of SUCs and the DBM). redirecting resources to research or analyze how these incomes are allocated graduate teaching. Universities of a and utilized. It also evaluates the shares Discussion Paper 2015-53 lesser standard, on the other hand, may of the national government subsidy and The Use of MOOCs as a Potential use MOOCs as a means of improving or IGI in terms of collection and usage. Avenue to Modernize Learning augmenting curation, though perhaps The study is intended to provide some in the Philippines at a higher cost. Factors that hinder guidance on how to increase SUCs’ IGI by Emmanuel S. De Dios or promote the adoption of MOOCs and ensure that the utilization of the A framework is proposed for are identified that allow realistic same is focused on their instruction, understanding the potential value added expectations to be set regarding the research, and extension activities in a of massive open online courses (MOOCs) role of MOOCs in Philippine education manner that is complementary with the along the lines of curation, credentialing, in the near term. Public policies and regular subsidy provided to SUCs by the and cost. MOOCs are likely to appeal private sector initiatives to achieve these national government. The study, however, differently to universities depending on expectations are suggested. does not cover an issue, which is just as their current standard and desired goals.

19 Development Research News October – December 2015

Editor’s Notes. . . from p. 1 and postharvest facilities, the Bottom-up Southeast Asia, ranking 37th among the top Budgeting program, and the ports in the 50 in the world. Out of the top 80 international Greater Manila Area. development think tanks, it ranks 69th, and (irrigation, postharvest facilities), natural 33rd out of the top 55 top education policy resources management (reforestation), The evaluation results were honest and raw. think tanks. These accolades are a source social services (housing, student financial The unfavorable outcomes may irk some of inspiration to PIDS, to strive harder in assistance, school-feeding program, hospital people who wish to hear only positive bringing relevant and objective research. facilities’ enhancement), citizen participation things. But reporting the facts based on real in budgeting, water and sanitation, logistics evidence gathered from rigorous research Our involvement in impact evaluation work sector, free trade agreements, and fiscal is the hallmark of PIDS’ relevance and is our way to bring policy research in the incentives, to name a few. independence, which it constantly strives to country one step higher. Through it, we hope maintain. We are a state think tank, funded to further elevate the quality of Philippine Within the year, some of these studies were mainly by government, but our commitment policymaking and help come up with completed and their findings were presented is to the Filipino people. policies, programs, and projects that are truly to stakeholders in various seminars, such as inclusive and cost effective. the policy forum series organized by PIDS This year, PIDS received the honor of being with the Congressional Policy and Budget included, once again, in the list of top think We thank everyone who partnered with Research Department and the Senate tanks in the world. Based on the 2014 Go or supported PIDS this year in the conduct Economic Planning Office. This Development To Think Tanks Index Report released by the of research and knowledge dissemination, Research News issue gives a peek into Think Tanks and Civil Societies Program of patronized our publication products, the impact evaluation of the Community the University of Pennsylvania, the Institute attended our seminars and events, and Mortgage Program, the irrigation systems remains the top social policy think tank in relentlessly believed in the work that we do.

Staff Box DEVELOPMENT RESEARCH NEWS Vol. XXXIII No. 4 DEVELOPMENT RESEARCH NEWS is a quarterly publication of the PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS). It highlights Editorial Board: Dr. Gilberto M. October – December 2015 the findings and recommendations of PIDS research projects and Llanto, President; Dr. Marife M. ISSN 0115-9097 Ballesteros, OIC Vice-President; Ms. important policy issues discussed during PIDS seminars. PIDS is a Andrea S. Agcaoili, Director for nonstock, nonprofit government research institution engaged in long-term, policy-oriented research. This Operations & Finance; Dr. Sheila V. Siar, publication is part of the Institute's program to disseminate information to promote the use of research findings. Director for Research Information; Ms. The views and opinions expressed here are those of the authors and do not necessarily reflect those of the Institute. Renee Ann Jolina C. Ajayi, Director for Inquiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as suggestions Project Services & Development. or comments are welcome. Please address all correspondence and inquiries to:

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