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University of the Philippines Manila College of Arts and Sciences Padre Faura, Manila The Political Economy of Housing in Tondo, Manila An Undergraduate Thesis Presented to the Department of Social Sciences College of Arts and Sciences University of the Philippines Manila In Partial Fulfillment of the Requirements For the Degree of Bachelor of Arts Major in Development Studies Dr. Edberto Villegas Thesis Adviser Presented by Jonathan Paul M. Meneses 2006-57840 April 2013 Second Semester, AY 2012-2013 APPROVAL SHEET In partial fulfillment of the course requirements for the degree of Bachelor of Arts Major in Development Studies, this undergraduate thesis, entitled, “The Political Economy of Housing in Tondo, Manila”, prepared and submitted by Jonathan Paul Meneses, is hereby recommended for approval ______________________________ Dr. Edberto M. Villegas Thesis Adviser Department of Social Sciences ______________________________ Date signed This thesis is hereby accepted and approved as partial fulfillment of the requirements for the degree of Bachelor of Arts in Development Studies. ______________________________ Prof. Carl Marc L. Ramota Chairman Department of Social Sciences ______________________________ Date signed i Acknowledgement This thesis would not have been possible without the help of several individuals who contributed time and effort and valuable assistance in the completion of this study. First, I would like to thank my fraternity brother, Kevin Corpuz and his guidance on how this thesis was made. Your help is most appreciated. Second, I would like give thanks to Bro. Jerald Hermogenes, Bro. Ariel Gaspi, Bro. Atty. Nikki Neil Santos, and Sis. Lilian Laurezo for motivating me to finish this study. I would have not finished this without you. Thank you to my fraternity brothers and sorority sisters for their help in accomplishing the survey forms and assistance in the tabulation of data. I know it was dangerous but you stood by me in times of need. I would like to thank my parents for the almost daily chocolate macadamia frappe in writing this. Your support has always been there. To my thesis adviser Dr. Villegas, for his supervision, guidance and patience he has extended me through-out this study. Lastly, I would like to thank Justine for being there especially during times when I need an extra hand in other papers and reports needed to be done at the same time as I was finishing this thesis. You have inspired me to do better. Your love and support has been driving force in keeping me writing. Thank you all! ii Abstract This study was conducted to assess the socio-political and socio-economic problems that Tondo, Manila is currently facing. Government programs come left and right in response to the problems of unemployment, poverty and housing. This research is aimed towards identifying why, despite the fact that there are programs of the government, the problem of Tondo is still present even after a lot of changes in the administration. Through comparing tables of population growth, population density, poverty indices, income and expenditure, minimum wage, non-agricultural and agricultural businesses and industries, inflation rate and purchasing power of the peso, a cross-referential source of analysis was formed. This was backed by a survey that aims to identify why people from provinces flock to Metro Manila specifically Tondo. The study aims to identify the weakness of a single program approach compared to a more holistic and complimentary approach where multiple problems are tackled. iii TABLE OF CONTENTS CHAPTER TITLE PAGE Title Page Approval Sheet i Acknowledgements ii Abstract iii Table of Contents iv Chapter I: Introduction 1 A. Statement of the Problem 1 B. Objectives 1 C. Methodology 1 1. Design of the Study 1 2. Population and Sampling 2 3. Instruments to be used 2 4. Locale of the Study 2 D. Hypothesis 3 E. Analytical and Theoretical Framework 3 F. Significance of the Study 3 G. Review of Related Literature 4 Chapter II: Background of the Study 18 Chapter III: Presentation and Analysis of Data 29 Chapter IV: Conclusion and Recommendations 40 Bibliography 42 Appendices 45 I. Survey Forms iv Chapter I INTRODUCTION A. Statement of the Problem Poverty in the Philippines has a prominent urban character. Urban poverty is primarily caused by unemployment, which forces people to live below the standard of living. Unemployment levels are highest in the National Capital Region. Half of the unemployed fall within the age bracket of 15-24. The problems of pervasive unemployment and abject poverty are reflected in the crisis of urban homelessness. Based on statistics, more than half of the urban population are classified as informal settlers. The oversaturation of the city and resulting urban housing crisis has underlying economic and political factors. It is a combination of such economic problems as urban migration and unemployment, and the political crisis of ineffective government housing programs. B. Objectives The objectives of the study are to explain the problem of urban housing crisis, identify the underlying causal factors, determine the economic factors that contribute to the problem, and investigate whether government housing programs have been adequate in addressing urban housing deficits. C. Methodology 1. Design of the study The general design of the study will be descriptive. Quantitative measures such as survey will be used to describe the character of the population through the sample chosen. Qualitative measures such as 1 interviews will also be adopted to strengthen the descriptive claims of the research. 2. Population and sampling The research population will include people in the Tondo area. The sampling method to be chosen is non-probability sampling. Accidental sampling will be used for practicality. Snowball sampling is also preferred because the population parameters are hardly known. 3. Instruments to be used A survey with 80 research participants will be conducted to validate the hypothesis. The survey instrument consists of questions about the socio- personal background of the participants (e.g., age, employment status, housing, address, family size), and attitudes towards government housing programs (e.g., effectiveness of previous programs and favorability of relocation). Ambush interviews will be held to support the hypothesis. 4. Locale of the study The locale of the study will consist of barangays around Tondo church, Tondo, Manila. The Tondo church area is preferred for its accessibility and convenience to the researcher. The selection of the barangays therefore is accidental. Other factors such as the researcher's safety will also determine the locale covered in the data-gathering process. 2 D. Hypothesis Ho: The persistence of the problem of homelessness and informal settlement in Tondo, Manila reflects the failure of the government to enact laws that would solve the urban housing crisis. E. Analytical and Theoretical Framework The study will adopt the political economy approach to the problem of urban homelessness. The political economy framework emphasizes the interplay between economics (e.g., employment conditions) and politics (e.g., government action). Political economy is an effective approach to issues and problems where the political and economic dimensions are closely connected. In the research, the political economy lens is used to theorize that the urban housing problem is a combination of economic factors such as urbanization and unemployment, and political factors such as poor government policies on housing. F. Significance of the Study The increase in population in the National Capital Region is more or less a hundred thousand every year. Around 60% of them are young professionals, new graduates from school and in search of employment. A fifth are high school fresh graduates that move to the city for their college education and the rest is the natural increase of the population. Cliché but true, most Filipino professionals dream of making it to the big city in the hopes of landing a job and to have better life. A lot of them struggle to find employment and shelter. 3 Certain households who seek additional income opt to convert their homes into boarding houses. Increase in income would mean more food on the table at the expense of space for conducive living. Small rooms originally for one member of the family is set for bed spacing for two to three people. The one bath the family has in the house turns to be a more public one. Each household strives to have a better life and is in a constant battle on how to provide for the family. The situation is also a reflection of the opportunity for additional income with the waves of professionals and students arriving at the city. Most that have jobs rather travel than look for shelter which is nearer their office. Even schools do not have in-house dormitories to cater to the needs of the students. The problem of traffic congestion can be attributed to this. New migrants do not have a clear idea on what to expect when they arrive at the city. Most are in the mode of “pakikipagsapalaran” and “bahala na”. Not so much are so fortunate to know someone who can accommodate them during the process of finding and landing a job and/or a place to stay in. Desperate, most rely on the government’s housing program as stepping stone for a better life. G. Review of Related Literature Bautista, Victoria. (2002). “Readings in Governance of Poverty Alleviation”. Quezon City: UP Diliman. In 2010, a third of the country's population are reported to be living below the poverty line, estimated to around $1.70 per day, or about $600 per year. Poverty in the 4 Philippines has both rural and urban character. Rural poverty is largely due to lack of economic opportunities in the provinces. On the other hand, urban poverty is partly caused by congestion in the metropolitan areas, low income for the employed poor and lack of social services on the part of the government.