MEDDELANDEN FRÅN GÖTEBORGS UNIVERSITETS GEOGRAFISKA INSTITUTIONER SERIE B, NR 110 Responses to change in accessibility Socio-economic impacts of road investment: the distributive outcomes in two rural peripheral Philippine municipalities Jerry Olsson Handelshögskolan vid GÖTEBORGS UNIVERSITET Jerry Olsson Responses to change in accessibility Responses to change in accessibility Socio-economic impacts of road investment: the distributive outcomes in two rural peripheral Philippine municipalities Jerry Olsson Göteborg 2006 Kulturgeografiska institutionen Department of Human and Economic Geography Handelshögskolan vid School of Business, Economics and Law Göteborgs Universitet Göteborg University Vasagatan 1 Vasagatan 1 405 30 Göteborg S-405 30 Göteborg, Sweden Tryckt i Sverige Kompendiet Göteborg 2006 ISBN 91-86472-54-2 ISSN 0346-6663 © Jerry Olsson Abstract Olsson, J. (2006) Responses to change in accessibility. Socio-economic impacts of road investment: the distributive outcomes in two rural peripheral Philippine municipalities. Publication edited by the Department of Human and Economic Geography, University of Göteborg. Series B, no. 110. 207 pages. This study describes, evaluates and analyses how a substantial improvement of road accessibility has influenced the distributional outcomes of socio-economic development impacts in a rural peripheral area in the Philippines. The impact population consists of 75,000 inhabitants. The outcomes regarding the 500 households and firms are explored through a before-after micro-level case study, using a double difference technique and a multi-criteria impact assessment analysis. Other data were collected through key informant interviews, a traffic counting survey, road network accessibility inventories, and official documents. The data covers the years between 1990-2005. The research questions are essentially concerned with the distribution of an increased economic activity resulting from the road project. The objective is, to explore the scope of the changed conditions and outcomes primarily for the fishing sector, some other production sectors and economic activities in general, and also to investigate the changes in regional and local mobility, and household welfare. The theoretical approach emphasizes the role of the level of accessibility within and between networks on a disaggregated geographical level taking into account different forms of Basic Accessibility, and the relative improvement of accessibility. Results show that the direct road project related impacts substantially improved the study area’s regional network accessibility. These direct impacts had bearing on the indirect impacts. Production, employment, trade, competition, incomes and mobility increased substantially in all major economic sectors and in new ones, and among households. In absolute terms socio- economic development and economic growth were attained within the study area after the road project. However, the improvement in accessibility differed greatly between municipalities and villages. The variations in improved accessibility severely affected the extent in which resource outtake, production, trade, and participation in activities were enabled. It also severely affected the distributional outcomes. Intravillage outcomes showed great differences. Incomes increased among all income groups in all villages, but distribution became more unequal, benefiting upper income groups. From a poverty reduction perspective, the road project was good, but not good enough. Another conclusion is that, for a road to play an enabling role, other conditions and measures must coincide. A general conclusion is that distributional outcomes at local level can be better understood by identifying disaggregated levels of intra- and inter-network accessibility and by applying different forms of Basic Accessibility. Another general conclusion is that we need data on household and firm level and we need to use a double difference technique. Key words: intra- and inter-network accessibility, substantially below basic accessibility, below basic accessibility, basic accessibility, above basic accessibility, relative accessibility, road investment, Famy-Infanta road project, study area, study villages, Infanta, Nakar. ISBN 91-86472-54-2 Distributed by: ISSN 0346-6663 Department of Human and Economic Geography © Jerry Olsson School of Business, Economics and Law Printed by Kompendiet Göteborg University Göteborg, November 2006 Box 630, S-405 30 Göteborg, Sweden Acknowledgements Almost ten years ago I travelled along the Famy-Infanta road in the Philippines for the first time. I got stuck there. Since then I have been thinking about this 63 kilometres long road almost every single day. Perhaps it says something about an academic mind, about obsession, and/or my personality. Do I want to get involved with a similar road again? Often I doubt it, but still, the road has given me opportunities I never imagined would come my way. I am forever grateful to the inhabitants of Infanta and Nakar municipalities, especially my respondents in the villages of Dinahican, Banugao, Lual, Infanta town, Poblacion, Catablingan, and Pesa. In particular, my thoughts go to those who died as mud, rocks and log debris crushed their homes in late November 2004, when the cyclone Winnie hit the study area with rage. The ugly face of poverty and ruthless people seeking profit maximization through illegal logging are to blame. The Infanta mayors, Mr. Velasco, Mr. Mortiz, and Mrs. America, and the mayors of Nakar, Mr. Avellaneda and Mr. Ruzol, authorised my research, and their staff helped me in every sense, especially Mrs. Alanes and Mr. Avila. Without my interpreter, Momar Mopera, the work would have been less complete and detailed. Numerous departments, bureaus, agencies, and libraries helped me with information and data. Thank you for your time and patience. Salamat po to all of you! I would like to thank the sponsors of my field trips; Fredrik d’Orchimonts Stiftelse, STINT (Swedish Foundation for International Cooperation in Research and Higher Education), Geografiska Föreningen i Göteborg, Kungliga Vetenskapsakademien, Adlerbertska Stipendiestiftelsen, Stiftelsen Viktor Rydbergs Minne, and Stiftelsen Paul och Marie Berghaus Donationsfond. At the institution, a special thanks goes to Jonas Lindberg for his support and friendship, and academically stimulating manner throughout this period. Thanks to my supervisor Åke Forsström for his encouragement of independent thoughts and work, and valuable comments. Also thanks to my assistant supervisor, Claes-Göran Alvstam, for his help. Bertil Vilhelmson helped me to raise this work to a higher level at the final seminar and in the final stage. Bertil has also given me valuable advice in non-academic matters. Thanks a lot. Likewise, thanks to Lotta Frändberg for her thoughtful manner and for showing me her ability to think thoughtful. Thanks to Anders Larsson, Robin Biddulph, John Shelton and Ulf Ernstson, Anders for making the maps informative and a pleasant sight, Robin for his comments on the manuscript, John for his English revision, and Ulf for helping me with final printing matters. I want to thank my mother and father for always supporting me. Thanks to Micke who has listened to my problems concerning the study all the time. I also want to thank my sister and her family, other friends, and family members in Korea. Finally, at the start of this work I met Jinhwi at a hostel in Manila. I only wish that I had met her much earlier. Trust me, this work had not been completed if Jinhwi had not been there. Göteborg in November 2006 Jerry Olsson Table of content Page Prelude to an investigation 1 1. Introduction 1.1 The Philippine context 5 1.2 Problem discussion 9 1.3 Purpose and research questions 12 1.4 Disposition 13 2. Theoretical outlines and conceptual discussion 2.1 Introduction 15 2.2 The influence of transport infrastructure on socio-economic development 15 2.3 Transport infrastructure approaches – context- and place-specific premises 20 2.4 Accessibility characteristics 22 2.5 Inter- and intra-network accessibility; its influence on socio-economic development on different geographical levels 28 2.6 The tools for the evaluation and analysis of the distributive outcomes 32 3. The Famy-Infanta national road project 3.1 Introduction 33 3.2 The inter-connecting qualities of the road and the conditions within the area of influence 33 3.3 Road characteristics before and after project implementation 34 3.4 Road project objectives 35 3.5 Summary 37 4. Infanta and General Nakar municipalities 4.1 Introduction 39 4.2 Location, physical barriers, and distances 39 4.3 Development of transport routes – connection to the wider space economy 39 4.4 Intra- and intermunicipal transport networks and services 42 4.5 Physical resources 47 4.6 Human resources 48 4.7 Employment patterns and economic structure 49 4.8 Other conditions and measures – their influence on the study area 53 4.9 Summary 56 5. Data collections: methods and sources 5.1 Introduction 59 5.2 Selection of the study area and the actors 60 5.3 Assessment methods 67 5.4 Methodological approach and choice of analysis method 68 5.5 Selection of data collection methods used 70 5.6 A note on fieldwork, authorization, interpreter, and respondents 77 6. Change in local context: the fishing sector, from self-sufficiency to market orientation 6.1 Introduction 79 6.2 Entrepreneurs, technological leaps, infrastructures, relocated knowledge and skills, capital, and supply