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
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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!
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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.
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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
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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
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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.
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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.
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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
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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. The urban poor face a host of incidental misfortunes: problems in health and sanitation, unsafe drinking water, lack of education opportunities, homelessness, and unemployment.
The preamble of Republic Act 8425, enacted in 1997 under the Social Reform
Agenda (SRA) of the Ramos administration, captures the vision of the Philippine government in poverty reduction.
The so-called Minimum Basic Needs (MBN) approach is a poverty reduction strategy prioritizing basic requirements of Filipino households and community units to guarantee the fulfilment of their basic needs such as survival and security. The MBN approach to poverty is multi-targeted as it thrusts upon economic, social, ecological, and institutional reforms.
The government created the Poverty Alleviation Fund in 1996 to financially support
MBN programs. In its first year, the Fund financed primarily activities by the national departments. Among the high priorities were education and literacy (e.g., purchase of school desks), and direct services for health and nutrition (e.g., deployment of doctors to the barrios), welfare (e.g., granting of scholarships and financial assistance to disadvantaged sectors).
In 1999, the Poverty Alleviation Fund was renamed Lingap sa Mahirap. Envisioned to target appropriate sectors, Lingap sa Mahirap was channelled exclusively for the MBN of
5 marginal sectors and depressed communities. The programs supported were food and nutrition and medical assistance, livelihood development, socialized housing, rural waterworks, and price support for staple crops.
Under the Estrada administration, MBN was continued in line with the Social
Contract with the Poor. In 1998, President Estrada declared that he would "expand and strengthen national delivery mechanisms using the Minimum Basic Needs approach to cover the country's poorest communities". The Administration subsequently launched the National
Anti-Poverty Action Agenda (NAPC) in 2000. While the NAPC was initially successful and achieved major successes especially in policy formulation, it failed to objectively identify the poor who received priority assistance in the previous Lingap sa Mahirap program. The program also met some difficulty in sustaining empowerment because of contiguity deficit in the selection of target families.
National Anti-Poverty Commission. (2000a). “Exodus on Recent Developments on the
Minimum Basic Needs”. Presented before the MBN Technical Working Group, January 10.
Succeeding Estrada after EDSA II, President Gloria Macapagal-Arroyo formulated the KALAHI (Kapit-Bisig Laban sa Kahirapan) Program to "raise the poor's share in the country's resources and their access to public services. Strategy-wise, the KALAHI adopts the
"convergence" approach used by the Ramos' Social Reform Agenda as it affirms the need for
"joint programming, implementation, and monitoring among national and local agencies, civil society sectors and people's organizations in the poor communities" One of the
6 innovations of the KALAHI is the "expanded strategy" which combines basic services, asset reform, and social protection in the intervention. The KALAHI poverty reduction program's
"laudable features” include the addition of social protection and security component to address urgent problems brought by economic shocks and disasters, and the implementation of programs that capitalize on existing resources of the different government agencies. The
KALAHI's human development services are criticized to be projects that dangerously incorporate electrification, waste management services, and anti-flooding interventions because these projects are not targeted directly for the poor. She recommends the need for the government to avoid duplication or overlap of project initiatives by working with existing structures in poverty reduction.
Ellao, Janess. (2010). “Critics Slam 'Conditional Cash Transfer' Program as Unsustainable,
Corruption-Prone”. Bulatlat. Retrieved from bulatlat.com on March 10, 2013.
Under PNoy's administration, poverty reduction and empowerment of the poor are tackled through the Conditional Cash Transfer (CCT) Scheme. Also known as the Pantawid
Pamilyang Pilipino Program or 4Ps, the CCT aims to provide a "life vest" to thousands of
Filipino families countrywide through the qualified grants of financial assistance. Through the CCT, poor Filipino families are enabled to provide food in the dining table, send their kids to school, and spend for health expenses. The CCT is not without its critics, however.
Various analysts and urban poor groups such as Kadamay label the CCT to be a "band-aid solution” to poverty, which should be dealt with a rather long-term policy, one that is sustainable and corruption-free.
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Institute of Labor and Manpower Studies. (1976). “A Survey of the ASEAN Countries'
Employment Programs and Strategies”. Manila: Institute of Labor and Manpower Studies.
"Of all evils, worklessness is the worst" (p.7). At present, the crisis of unemployment affects millions of people in the world. Unemployment is so pervasive that it has become the
"most striking symptom of underdevelopment". In Third World countries, unemployment stems from various variables such as the continuously booming population and ineffective development strategies.
Last year, less than 3 million Filipinos were reported to be unemployed, which is equal to an unemployment rate of 6.8 percent. The National Capital Region (NCR) registered the highest unemployment rate at 11.0 percent. Nearly half of the unemployed belong to the
15 - 24 years age bracket.
Constantino, Renato et al. (1992). “A Filipino Vision of Development: Proposals for
Survival, Renewal and Transformation”. Quezon City: Foundation for Nationalist Studies.
At least a million Filipinos join the workforce every year . Labor absorption rate, especially in agriculture and industry, cannot cope with the expansion of the labor supply.
Institute of Labor and Manpower Studies. (1976). “A Survey of the ASEAN Countries'
Employment Programs and Strategies”. Manila: Institute of Labor and Manpower Studies.
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In the Philippines, the "increasing pressure by a steadily growing population upon the labor supply is the core of the employment problem" (p. 30). Unemployment levels remain high despite the increased rates of economic growth. Among the sectors of the labor force, urban workers comprise the majority of the unemployed. Urban unemployment is seen as a result of the twin trends of migration and urbanization, and the concentration of industries in some urban areas.
International Labour Organization. (1970). “Towards Full Employment: A Programme for
Columbia”. Geneva: ILO.
The correlation between unemployment and poverty is well-researched. Studies show that unemployment and poverty are directly related such that increasing employment levels contributes to successful income distribution and poverty reduction. No less than the
International Labour Organization states:
1...It is in fact almost the only way of providing the poorest groups of the
population with the opportunity to obtain a larger share of the total. A
policy of full employment is the first and most effective component of a
programme to eliminate extreme poverty.
In response to the perennial problem of unemployment, the Philippine government, in various administrations, has attempted to give the highest priority to full employment,
1 p. 139, “Towards Full Employment: A Programme for Columbia”. Geneva: ILO.
9 while accelerating economic growth at the same time. The government has adopted a two- pronged approach to unemployment, by fixing both the demand and supply sides of labor. It seeks to accelerate economic development and ensure that economic growth would result in expanded employment opportunities. On the other hand, it endeavors to intensify the education and training of the labor force.
Constantino, Renato et al. (1992). “A Filipino Vision of Development: Proposals for
Survival, Renewal and Transformation”. Quezon City: Foundation for Nationalist Studies.
Several strategies can be employed to increase the demand for labor. The dense concentration of industries in urban centers can be solved by encouraging industrial dispersal toward the rural areas for regional development. The government should support small and medium-size enterprises (SMEs), which are labor-intensive and produce goods for local needs and for exports. SMEs generate employment, increase rural income, and earn foreign exchange. Increase in rural employment is important as it reduces rural-to-urban migration, mitigating the problem of urban congestion and pressure on limited infrastructures and services available in the metropolitan areas. Industrial stability and productivity can be promoted through livelihood and community welfare programs for workers and their families, and formation of workers' cooperatives, for example.
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Institute of Labor and Manpower Studies. (1976). “A Survey of the ASEAN Countries'
Employment Programs and Strategies”. Manila: Institute of Labor and Manpower Studies.
Other policy strategies include raising the rate of investment (e.g., through export- oriented industries), promoting labor-intensive techniques, intensifying land reform programs, establishing export zones or industrial estates (to attract foreign investments), creating infrastructure projects (e.g., feeder roads, irrigation, rural electrification, communication structures), and encouraging labor migration. Meanwhile, the labor supply could be developed in such ways as the expansion of labor training programs, restructuring of the educational system, and family planning.
Tidalgo, Rosa Linda & Esguerra, Emmanuel. (1984). “Philippine Employment in the
Seventies”. Makati City: Philippine Institute for Development Studies.
The effects of government policies on employment levels are categorized as direct or indirect. Policies which are deliberately used to alter the outcome of a given labor market are believed to have direct effects on employment. These include apprenticeship programs and legislations in support of overseas employment. Policies which have objectives other than employment are considered to have indirect effects on employment. These 2"indirectly affect employment through their effects on the level of output, output mix, technology, and relative factor prices". Examples include government's industrialization and income policies, and legislations to protect the rights of workers.
2 (p.21)., Tidalgo, Rosa Linda & Esguerra, Emmanuel. (1984). “Philippine Employment in the Seventies” 11
The directional impact of employment policies may be positive, negative, or neutral.
Theoretically, it is possible to predict a priori the directional effect of a particular employment policy. Those that increase output or promote investments tend to positively affect employment. Meanwhile, measures which cheapen capital vis-a-vis labor, for instance, negatively impact labor. Lastly, a policy may be 3"potentially employment-creating to the extent that it encourages expansion of output in one sector; at the same time it could serve to limit or discourage employment in the same sector through the nature of the incentives employed to promote that sector".
Being a developing country, the Philippines is still "preoccupied with the goal of sustaining and increasing its rate of economic growth". In line with this goal, the Philippine government has officially endorsed the strategy of attaining balanced agro-industrial development, trade diversification, and rationalization. The general acceptance of the failure of the import substitution policy has led to the shift towards the exportation of non-traditional exports and manufacture. Foreign investments have been persistently encouraged to complement domestic capital. Government policies such as tax incentives have been enacted to attract foreign investors. The political economic thought in the Philippines is dominated by the idea that the private sector is the engine of economic growth and the "prime mover of development". Increasingly, the private sector is being tapped to play a more active role in the national economy. In support, the government has fuelled economic activities that are capital-intensive and high-risk. Employment generation may only be promoted where economic productivity is reassuring. As such, labor legislation has stressed the regulation of labor-management relations. In the 1970s for instance, the government enacted measures to
3 (p. 23),. Tidalgo, Rosa Linda & Esguerra, Emmanuel. (1984). “Philippine Employment in the Seventies” 12 ensure the speedy disposition of labor cases, the illegalization of all forms of work stoppages in "vital industries", and the representation of the labor sector in government policy-making bodies under the principle of tripartism.
Under the PNoy administration, the Department of Labor and Employment (DOLE) is tasked to undertake "a package of reforms" in employment facilitation, workers' welfare and protection, and labor relations. Employment facilitation projects include the integrated human resources data warehouse, JobsFit 2020 (aimed to enhance information dissemination about career opportunities), public employment service offices, industry training boards, government scholarship programs (e.g., TESDA scholarship grants), National Summit on
Labor and Employment, Emergency Employment Program (EEP), Joint Programme on
Youth, Employment, and Migration, accelerated registration of nurses, et cetera.
Davao Today. (2013). "Anakbayan: Aquino gov't Noynoying on joblessness". Retrieved from davaotoday.com on March 5, 2013.
Various administrations have been attacked for their ineffective employment strategies. PNoy is no exception. Anakbayan National Chairperson Vencer Crisostomo proclaims, “As a youth organization, we at Anakbayan are deeply worried about the youth’s prospects for decent jobs after graduation. Tila walang pagbabago sa ilalim ni Aquino pagdating sa kawalan ng trabaho. Noynoying ang graduates. Joblessness must be addressed to ensure a sustainable future for young Filipinos". According to 2011 NSO estimates, the
13 data show that the labor sector that is hardest hit by unemployment are the youth, 50.4% of the unemployed being 15-24 years old, 42% of the unemployed being college graduates.
Constantino, Renato et al. (1992). A Filipino Vision of Development: Proposals for Survival,
Renewal and Transformation. Quezon City: Foundation for Nationalist Studies.
More than half of the urban population are classified as informal settlers. Homeless
International estimates this figure to be 22.8 million urban dwellers. Among the root causes of the housing crisis are unregulated land and realty business, high cost of construction materials, ineffective government mass housing programs, and low incomes of the poor.
Llanto, Gilberto & Orbeta, Aniceto. (2001). "The State of Philippine Housing Programs: A
Critical Look at How Philippine Housing Subsidies Work". Makati City: Philippine Institute for Development Studies.
The types of housing subsidies (explicit and implicit) include public housing, rent controls, rent supplements, income tax benefits, loans at interest rates below-market, and mortgage insurance and guarantees. On the demand side, housing subsidies work by lowering the price of housing services or by increasing households' disposable income.
Subsidies to public housing tenants arise due to the lower-than-market rents that government charges. Thus, the magnitude of the subsidy is calculated to be the "difference between the actual rent paid on the unit and the market". Tax expenditures refer to a number
14 of housing-related exclusions from income taxation that are available to owner-occupiers.
Among these are the imputed rental income on owner-occupied housing, capital gains from house sale, and deductions from taxable income of mortgage interest and property taxes. In general, rent controls are "inefficient and should be resorted to only as a short-run response to abnormal market conditions.
In 1987, the Aquino government created the Housing and Urban Development
Coordinating Council (HUDCC) through Executive Order No. 90 to rationalize the housing sector. The HUDCC is the highest policymaking and coordinating body for urban and housing development. Its main functions are to coordinate, monitor, and exercise oversight over the activities of government housing agencies such as the National Housing Authority
(NHA), NHMFC, Home Insurance Guaranty Corporation (HIGC), and the Housing and Land
Use Regulatory Board (HLRB). The HDMF, Social Security System (SSS), and Government
Service Insurance System (GSIS) finance the NHMFC, the agency tasked to administer the government's Unified Home Lending Program (UHLP).
The UHLP distinguishes "socialized" housing from "economic" housing. Under EO
90, the private sector is enjoined in the production and financing of low-cost or "socialized" housing. The government encourages both private entities and financial institutions to cater to the less privileged in the housing market by providing them a package of mostly financial incentive and subsidies. Under the Urban Housing and Development Act of 1992 or RA
7279, the government seeks to provide decent shelter to the poor, develop a framework for the use of urban land, and involve the community in shelter development and construction.
As a policy support, the Local Government Code of 1991 (RA 7160) provides that local
15 government units (LGUs) be jointly responsible for the provision of socialized housing and regulation of shelter-related activities.
Aside from the Unified Home Lending Program or UHLP, the government also undertook other major housing programs such as the Community Mortgage Program (CMP), the Social Housing Development Loan Program (SHDLP), the Abot-Kaya Pababay Fund, and NHA Resettlement Program . The CMP is a mass housing program that seeks to solve land tenurial problems in depressed communities. The SHDLP is an in-house program of the
NHMFC, which aims to complement the UHLP through financial assistance to private developers, nongovernment organizations, landowners, and LGUs in undertaking housing projects. The Abot-Kaya Pabahay Fund, a NHMFC program, seeks to enhance the affordability of low-cost housing to low-income families through amortization support, development financing, cash flow guarantee, and liquidity and interest subsidy support.
The government housing programs are confronted with a host of problems because the actual beneficiaries have not been the target population. This is explained by many reasons. First, the flawed targeting mechanisms allow the unqualified recipients to receive the state subsidies. Usually, the unqualified recipients are better educated and can present themselves as worthy to receive the government subsidy programs. Second, there may be imperfections in the transfer mechanisms. Subsidy transfers are done in institutions like banks which may be biased against the intended low-income beneficiaries. Access to financial markets by poor beneficiaries is also hampered by high transaction costs, information asymmetry and perception of high credit risks. Third, present housing subsidy programs may have created a dangerous incentive structure "to encourage the participation in
16 the housing markets of borrowers, lenders, developers and public housing agencies".
Financial institutions practice formula lending, which does not recognize the borrowers' lack of capacity to pay. Thus, regardless of lack of capacity to pay or to incur additional indebtedness, borrowers are encouraged to take a housing loan because it is accessible.
Equally important is that the housing market in the Philippines has not effectively tapped the role of the private sector. In reality, the government lacks the resources to finance very costly housing programs. Housing access deficits could not be satisfied without the adequate harnessing of private resources.
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Chapter II Background of the Study
“Dito po ako nakatira sa tondo. Maraming mahirap na tao. Magulo kasi maraming istambay. Maraming istambay dahil walang trabaho. Walang trabaho kaya mahirap.” –
Tribu (Filipino Independent Film 2007).
Metro Manila is overly populated. When you pause and take a minute to observe the streets and the people in it, you will always notice that a lot of the people walking around, crossing streets, riding public transports, and entering buildings hold folders in their hands.
Obviously, these are folders that contain their resumes, curriculum vitaes, diplomas and other documents that show their competence to work. Often times, you can see a few that have newspapers and checking classified ads. At the end of the day, they go home and come back to the street again in search once more. This is the everyday life of the job seeker. Entering building to building much eager of what awaits them inside but most come out disappointed that they are not able to reach even an interview for the post that was advertised available for the taking. After a whole day’s worth of searching and searching the real questions is where do they go home and where to they take shelter after.
Not everybody has the luck of landing a high paying job. Not everybody has the connections to pull-of a one-time high-paying deal on their first try. Given the Philippines' economic situation on unemployment and underemployment, companies are not afraid to wait for the right hire. In Metro Manila, an 11% unemployment rate goes to show that more than 800,000 people above the age of 15 are willing to work and more of them are possible competitors since they are underemployed.
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It has been identified for a long time now that Metro Manila is now sinking below sea level. The maximum carrying capacity of the area is too much packed and can no longer be conducive for healthy and sustainable living. A 19,137 per kilometer population density for the National Capital Region (this includes the Las Piñas area already considered as a province by some) is far too much crowded than the ideal density which is identified by the demographers as 50-100 people per kilometer, so much so that 150 is bearable but not desirable. Such is the situation of the region.
The infamous Tondo area is identified as one of the biggest slum areas in the National
Capital Region. A statement was released by former president Gloria Macapagal-Arroyo identifying Tondo as one of her greatest challenges in poverty alleviation.
Even in provinces, Tondo is known to be a place densely populated by informal settlers and the unemployed. Aside from that Tondo is overpopulated because of informal settling, it is also overly-populated because of the cheaper housing for the employed that come from the provinces.
Republic Act 7279 also known as the "Urban Development and Housing Act of
1992" is an act to provide for a comprehensive and continuing urban development and housing program. The two main purposes of this act are to create socialized housing and develop new settlements. This act clearly answers the need of the Filipino people for shelter security but it also clearly identifies two things in reality stated in its objectives: (1) That there is a need for shelter and (2) that shelter is necessary to alleviate poverty. With these objectives, the government is not only concerned about the shelter security of its people but
19 that it should also be concerned with poverty. Not just shelter poverty per se but the poverty that is a result of lack of the capability to own a home. To state simply, people do not have homes because they lack the means to acquire ones.
Good employment means a better home and a better life. This seems to be the mindset of people in the provinces since most of them move to the city after they graduate.
There are only few available jobs in the provinces as they say. And most young professional seek more options in the city.
Back in the regime of former President Ferdinand Marcos, the housing project initiated by former first lady Imelda Marcos was started. The Bagong Lipunan Sites and
Services (BLISS) project aims to improve the living conditions of the poor by providing them with the right to occupy a home. This project revolutionized the housing policy of the government since it utilized smaller spaces to accommodate more families. Instead of building low-cost houses that covered bigger lands, BLISS housing was constructed as a low- rise condominium project that was more space-efficient.
The BLISS project worked in so far as to accomplish its objective to provide housing for the low-income Filipinos. The location of the sites was also very accessible since it is located in prime spots near national highways and near offices. The problem is, it lacked the provision for livelihood.
Most settlers in the BLISS housing projects are unemployed, underemployed or are employed far from their employment or prospective employment area. The BLISS housing project was effective in so far as sheltering the poor but the problem was it did not provide livelihood for the poor to sustain their families. The families in the projects sold their right to
20 other people so as they have money to start a new. This has two implications. First, the problem is not really shelter security, but employment and livelihood. Second, it does not matter if it is a small space to live it as long as it is more convenient for their jobs – that is for the people who bought the rights of the poor. 4These are the main problems that the BLISS housing project could not solve.
The current administration is looking into bringing back the BLISS project under the leadership of the Vice President, who is also, the current chairman of the Housing and Land
Use Regulatory Board. The envisioned revival of the BLISS project was just recently announced. There are still no fixes on its failure more than 30 years ago, although the revival of the project is a supplement on the on-going projects of the government. One such project is the resettlement program of the National Housing Authority (NHA) which aims to dilute the cities by providing housing for the unsheltered with lands and housing that the government has acquired in provinces. The project also aims to alleviate the poor slum areas by providing basic social services like water lines and electricity to slum areas.
In 2010, Tondo has yet again top the population charts of the National Statistics
Office (NSO) with a 38% share of the population of Manila. Of the 1,660,714 total population of the city, 630,604 are residents of Tondo. Previous surveys indicate that Tondo is the most populated area of Metro Manila.
Household is defined by the National Statistics office as a social unit consisting as a person or a group of persons who sleep in the same housing unit and have common
4 http://www.pinoyprogress.com/showthread.php?t=625
21 arrangements in the preparation and consumption of food. 5137,834 households are identified in the Tondo area.
The data shows that an average household in Tondo, Manila is 4-5 persons.
630,604 persons___ = 4.58 persons/houshold 137,834 household
According to the National Wages and Productivity Commission and the National
Statistics office, a family of six in the National Capital Region should have a daily income of
P1022 for them to have a decent living. Living wage also known as subsistence wage is defined as the income a person or group of person needed for a person or his family to live a decently. This covers basic survival needs like food and shelter.
The current nominal minimum wage rate in NCR is P446 which is only 43.6% of the daily living wage. The wage gap between the minimum wage and the living wage is 56.4% meaning in a family of six, even if either parents or any two members of the family is employed, their total is 12.8% short of what is needed.
5 http://www.census.gov.ph/content/city-manila-experienced-negative-population-growth-rate
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The living wage computation amounts to P1022 per day which means a monthly needed allowance of a family of six would be P30, 660. The nominal minimum wage of P446 multiplied by 30 days amounting only to 13, 380 falls short of the living wage even if two family works at the same time.
6SUMMARY OF CURRENT REGIONAL DAILY MINIMUM WAGE RATES Non-Agriculture, Agriculture As of January 2013 (In pesos) NON- AGRICULTURE REGION DATE OF EFFECTIVITY AGRICULTURE Plantation Non-Plantation NCR June 3/Nov.1, 2012 P 419.00 - 456.00 P 419.00 P 419.00 CAR June 18, 2012 263.00 - 280.00 246.00 - 262.00 246.00 - 262.00 I July 25, 2012 233.00 - 253.00 233.00 205.00 II May 16, 2012 247.00 - 255.00 235.00 - 243.00 235.00 - 243.00 III October 11, 2012 285.00 - 336.00 270.00 - 306.00 258.00 - 290.00 IV-A May 15, 2012 255.00 - 349.50 251.00 - 324.50 231.00 - 304.50 IV-B February 1, 2013 205.00 - 275.00 215.00 - 225.00 215.00 - 225.00 V April 7, 2012 228.00 - 252.00 228.00 228.00 VI May 31, 2012 235.00 - 277.00 245.00 235.00 VII December 7, 2012 282.00 - 327.00 262.00 - 309.00 262.00 - 309.00 VIII October 16, 2012 260.00 235.00-241.00 220.50 IX Nov. 25, 2011 267.00 242.00 222.00 X July 24, 2011 271.00 - 286.00 259.00 - 274.00 259.00 - 274.00 XI Jan. 1, 2012 301.00 291.00 291.00 XII April 18, 2012 270.00 252.00 249.00 XIII November 11, 2011 258.00 248.00 228.00 ARMM September 21, 2012 232.00 232.00 232.00 http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html
The highest minimum wage for Laguna and Ilocos Norte based on their regional data are P349.50 and P253.00 respectively. The regions in Visayas and Mindanao that offer the highest minimum wage are Region VII for Visayas with P327.00 and Region XI for
6 http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html
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Mindanao with P301.00. Region VII and Region XI have the major cities of Cebu and Davao respectively. The highest minimum wage that NCR offers is P456.00.
Region Highest Minimum Purchasing power of Inflation Rate Wage the Peso NCR P456.00 0.79 2.4 Region I P253.00 0.81 1.1 Region IV-A P349.50 0.76 2.1 Region VII P327.00 0.76 6.9 Region XI P301.00 0.73 2.7
The table above shows the highest minimum wage versus the purchasing power of the peso and inflation rate of the five regions.
The purchasing powers of the peso on all the regions are almost equal. This shows that the value of peso in all regions is almost the same. The cost of products in the regions is the same and purchasing one good on a region would almost be the same price on another region. It is reasonable to assume that people tend to seek a higher wage since the value of their salaries is the same in the regions. The National Capital Region offers the highest minimum wage in the country. The average purchasing power of the peso in the country is
0.76 which is lower compared to NCR.
The inflation rate affects the value of money. The inflation rate in NCR may not be the highest among the five regions listed above, but it is lower than the average national statistics with a value of 3.3. This shows that there is higher value of money in the national capital region.
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Region Employment Non-Agricultural Agricultural Business and Rate Businesses and Industries Industries with 20 or with 20 or more workers more workers NCR 89 9119 22 Region I 92.6 455 4 Region IV-A 90.8 1901 77 Region VII 93.5 1221 73 Region XI 95.2 642 150 Total outside NCR (4219) (304)
The third and fourth columns represent the industries present on the regions that have
20 or more workers based on the 2009 survey but the National Statistics Office (NSO). Non- agricultural businesses and industries would include (1) Electric, Gas and Water, (2)
Construction, (3) Wholesale and Retail Trade, Repair of motor vehicles, Motorcycles,
Personal and Household Goods, (4) Hotels and Restaurants, (5) Transportation/Transport,
Storage and Communications, (6) Financial Intermediation, (7) Real Estate, Renting and
Business Activities, (8) Education/Private Education, (9) Health and Social work and (10)
Other community, Social and Personal Services. These 10 are medium to large enterprises that give salary and/or commissions to its workers. The Agricultural businesses and industries include (1) Agriculture, hunting and forestry and (2) Fishery/Fishing. In the five regions above, manufacturing, mining and quarrying are not applicable.
The employment rate in the National Capital Region is the lowest among the five regions. On the contrary it has the highest not agricultural industries even when the other four regions industries are combined. The data would tell us two things: first, there is ample employment in the provinces and second, people will flock to the National Capital Region since there are more jobs that could be offered.
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On the first point where there is ample employment in the provinces, while it is true that they have a high employment rate, most are occupied by mostly older folk. The young professionals who freshly graduated could not displace the currently employed and so they seek employment elsewhere.
On the second point where people tend to flock towards the National Capital Region because of availability of jobs, is that since the courses available on colleges and universities are now being more specific (i.e. earthquake engineering vis-à-vis geology), and for those who have only finished up to their secondary education, the availability of jobs and the variety of them can only be found in the Capital – another reason why people would seek employment here in the city.
Region Population density NCR (2009) 19,137 per square kilometer Tondo (2007) 69,297 per square kilometer Region I (2009) 366 per square kilometer Region IV-A (2009) 758 per square kilometer Region VII (2009) 428 per square kilometer Region XI (2009) 220 per square kilometer
The table above shows how populated a square kilometer of land is on the regions listed. The population density of Tondo is greater than that of the whole of NCR even with the whole other regions combined.
The oversaturation of Tondo is concurrent with the need of the people of the provinces to find work here in the National Capital Region. More are and more people flock to the city in so far as they believe that opportunity to get hire is greater here. It is also in the city where they could find jobs that would fit the course they graduated from or if they were
26 not able to graduate college, they opt for a post on the BPO industry (there is a large BPO company near the Area).
Housing now becomes a problem since employment seeking professionals flock towards the city.
There are two major problems with regards to the housing situation in the Philippines.
First is the availability of land and second is funding.
Availability of land refers to how much accessible a piece of land is readily available to place a structure where families can occupy as home. Either the land is owned by another person but does not utilize it in productive means such as letting the land for lease or for produce. Also the unavailability of land may also be that there is really no land available for the construction of houses.
The problem with funding goes two ways. First is, that private individuals do not the capacity to pay for the construction of their own home. And second, the government does not have enough funding to support the development of housing projects. Its either private individuals are poor enough not to be able to own a home or the government does not have enough budget or has allocated the budget on other things.
NCR (2009) Poverty Incidence Magnitude of Poor Employed 22.4 7,880,786 Self-employed and unpaid 2.3 family members 4,186,194 Total 12,066,980
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Poverty incidence is the percentage of the total households who has an income below the poverty line. 22.4% of the employed in the National Capital Region or 7,880,786 belong to below the poverty line. Even though only 2.3% of the self-employed and unpaid family members exist, 4,186,194 people or more than half of the magnitude of the employed belong to the poverty line.
With this amount of poor for those who have work and self-employed, the availability of funding for them to own a house is close to none. They would obviously rely now the government their housing projects.
The Housing and Urban Development Coordinating Council (HUDCC) is given
P125, 704,000 as budget for 2012 and not all of this is allocated for housing projects. This includes the pay for their employees and administration maintenance. The already reduced budget further is reduced by corruption and improper disbursement of funds. Also the issue in the biding of projects, that is, poor quality of construction and construction materials just to get more funds to corrupt.
The 125-million peso budget is not even a priority on the budget. Under the Other
Executive Offices on the yearly budget, the HUDCC ranks only 5th in budget.
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Chapter III Presentation and Analysis of Data
The sample population target is 80 respondents. Only 53 respondents where served due to the risk of meeting nightfall in the area. Out of 53 survey forms accomplished, the data is interpreted as follows:
Figure 1. Employment
The graph shows the percentage of employed among the 53 respondents. 28 (54%) are employed and 24 (46%) are unemployed. The figures show a high level of unemployment
(nearly half) among the sample.
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Figure 2. Previously Employed
The graphs shows that out of the currently unemployed, 55 % were previously with work.
Figures 1 and 2 show the capacity of the respondents to be able to pay for housing. 11 out of the 24 answered that they were not employed previously, showing that out of the 53 total respondents, 20.75% have no means and did not have any means of paying for housing.
30
Figure 3 Residency of Respondents
The scatter plot shows the number of years the respondents has been residents of
Tondo, Manila. The respondents’ range of residency is from 2-26. The average residency of the respondents is 9.96 years. The mode or most frequent answer is 5 years with a frequency of 6 out of 50.
Figure 3 would show how long the residents have lived in Tondo, Manila and would be an indicator on how long or how short they have endured or enjoyed their housing situation.
31
Figure 4. Owning a House
Figure 4 shows that 77% or 41 out of 53 claims that they do not own a house. This shows a high level of homelessness among the sample.
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Figure 5. Rental Situation
Figure 5 shows that only 18 out of 53 or 34% are renting among the respondents. The remaining 35 of the 53 do not pay rent in any form. Based on the questionnaire 33 among the
45 admit that they are illegal settlers and 7 of which were tried to be evicted before.
The data shows that a large number but less than half of the sample rent their current residence. The data also shows that a third are illegal settlers. Very few admitted having experienced eviction.
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Figure 6. Affordability of Rentals
Figure 6 shows the opinion of the 18 who claim are renting in Tondo, Manila on the rates of rentals for their housing. 14 out of the 18 say it is expensive, 3 say that it is affordable, and only one says that it is cheap. The range of rentals is given to be P1, 000 to P
10, 000.
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Figure 7. Household Size
Figure 7 shows the household size or members of the family that live with them of all
53 respondents although some are hesitant to admit that they are illegal settlers. The average household size is 6 with a range of 2 to 11. The mode is 7 with a frequency of 12.
Figure 8. Floor Area
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Figure 8 shows how the respondents view the floor area of where they live in. 75% or 40 out of 53 believe that their house is too small for their household size, 17% or 9 believe that it is satisfactory, one says that they have extra room, and three did not answer the question.
Figure 9. Rating of Housing Situation
Figure 9 shows that opinion of all 53 respondents when asked about their housing situation rating it from Bad to Good represented by the number 1 through 5, 1 being the worst and 5 being the best.
19 out of the 53 rate their housing situation as worst (1), 14 for the rating of 2, 8 for the rating of 3, 6 with the rating of 4, and 5 with the best (5) rating. Two respondents did not respond to the question.
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Figure 10. Receiving of Government Support
The chart above shows the percentage of who the government has helped with regards to housing. 85% or 45 out of 53 says that they have not received any help from the government. Only 6% or 3 of the respondents have received help in form of cash and loan but all of them claim that this was only once. Five did not respond to the question.
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Figure 11. How Much In Need Of Government Support
Figure 11 shows the how much the 53 respondents would rate their need of government support – 1 being not in need and 5 having most need of support. 15 out the 53 says that they are most in need (5) of support, 14 with a rating of 4, 8 with a rating 3, 7 with a rating of 2, and 9 with a rating of 1 or not in need of support from the government.
Figure 12. Willingness to be Relocated
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Figure 12 shows that 77% or 41 out of 53 are willing to be relocated given decent housing but 23% or 12 respondents would not want to with reasons such as it might be far from their workplace, they are already content with where they are, some say that they are used to their living conditions, and some say that they already own a home.
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Chapter IV Conclusion and Recommendation
Tondo is a microcosm of the Filipino urban society, where most do not possess decent housing. At present, More than half of the population of Metro Manila are informal settlers Several presidents have come and pledged to mitigate the housing crisis, but the problem remains and continues to grow.
The urban housing problem is caused by economic factors (e.g., unemployment, poverty, urban migration), as well as political factors (e.g., poor government policies). Many people are unemployed and so lack the capacity to pay for decent housing. Others are mired in abject poverty that decent housing loses priority to more pressing needs such as food.
Urban migration further complicates the problem by causing congestion in informal settlements. Government-sponsored housing projects could not cope with the growing number of the poor. In general, housing projects have not benefited the deserving recipients as people in the middle and upper income classes manage to fool the selection process for housing subsidies.
This study has proven that the persistence of the problem of homelessness and informal settling in Tondo, Manila is a reflection of the failure of the government to enact laws on urban housing. Only three out of the 53 surveyed respondents was helped by the government which only happened once without any follow-up. To solve the urban housing crisis, the government must be able to achieve the objectives set upon agencies that were instituted to focus on the problem of housing.
One can use the political economy approach to suggest solutions to the urban housing problem. The government should target economic and political factors that cause and
40 exacerbate the housing crisis. To systematically reduce homelessness, unemployment, poverty, and urban migration should be addressed. Relocation is an effective way to decongest slum dwellings and thus minimize the urban housing problem. The research data suggests that a majority of the participants from Tondo are willing to be relocated as long as the site provides decent housing as well as employment opportunities.
Relocation programs should also have a livelihood program for those who opt to be self-employed. It must also have a support system that provides health care and educational opportunities so as to reduce the expenditure and increase the savings of household beneficiaries. A program for financial literacy should also be incorporated so that the people who are relocated would learn how to invest wisely.
The government should also make sure that its programs target the intended beneficiaries. The housing projects should be delivered to low-income and unemployed households. Current defects in the selection of housing subsidy recipients should be corrected so as to optimize government allocation and reduce the population of the homeless .
The case of the homeless people of Tondo reflects not only the economic depravity of the urban poor but also the policy deficits on the part of the government. The problem is not beyond incurable, though. Urban homelessness can be solved through the multi-pronged approach of addressing the socio-economic problems of poverty, unemployment, and urban migration, and the political problems of ineffective and misdirected government housing policies.
41
Bibliography
Books
Bautista, Victoria. (2002). Readings in Governance of Poverty Alleviation. Quezon
City: UP Diliman.
Constantino, Renato et al. (1992). A Filipino Vision of Development: Proposals for
Survival, Renewal and Transformation. Quezon City: Foundation for Nationalist
Studies.
Institute of Labor and Manpower Studies. (1976). A Survey of the ASEAN Countries'
Employment Programs and Strategies. Manila: Institute of Labor and Manpower
Studies.
International Labour Organization. (1970). Towards Full Employment: A Programme
for Columbia. Geneva: ILO.
Llanto, Gilberto & Orbeta, Aniceto. (2001). The State of Philippine Housing
Programs: A Critical Look at How Philippine Housing Subsidies Work. Makati
City: Philippine Institute for Development Studies.
National Anti-Poverty Commission. (2000a). Exodus on Recent Developments on the
Minimum Basic Needs. Presented before the MBN Technical Working Group,
January 10.
Tidalgo, Rosa Linda & Esguerra, Emmanuel. (1984). Philippine Employment in the
Seventies. Makati City: Philippine Institute for Development Studies.
42
Articles/ Journals
Ballesteros, Marife. (2010). “Reforming Housing for the poor in the Philippines”.
East Asia Forum. Retrieved from eastasiaforum.com on March 7, 2013.
Carino, Benjamin & Corpuz, Arturo. (2009). Toward a Strategic Urban Development
and Housing Policy for the Philippines. Discussion Paper Series No. 2009-21.
Davao Today. (2013). Anakbayan: Aquino gov't Noynoying on joblessness. Retrieved
from davaotoday.com on March 5, 2013.
Department of Labor and Employment. (2010). Labor and Employment Policy
Reforms and Program Implementation for the First 100 Days of the President
Benigno S. Aquino III Administration, June 30-October 8, 2010. Manila: DOLE.
Ellao, Janess. (2010). “Critics Slam 'Conditional Cash Transfer' Program as
Unsustainable, Corruption-Prone”. Bulatlat. Retrieved from bulatlat.com on March
10, 2013.
Mangahas, Mahar. (2012). “Painful statistics”. Philippine Daily Inquirer. Retrieved
from inquirer.net on March 7, 2013.
Pedros, Ma. Regina et al. (2006). Estimating Food Threshold and Poverty Incidence
Using Food Basket across Income Groups vs. the Bottom 30% Income Group.
Ubac, Michael. (2007). “Arroyo admits to Tondo folk poverty greatest challenge”.
Philippine Daily Inquirer. Retrieved from inquirer.net on March 7, 2013.
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43
Surveys/ Tables
http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/February2013.
http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/ncr_6.pdf
http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/reg01_6.pdf
http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/reg04A_7.pdf
http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/reg07_7.pdf
http://www.census.gov.ph/sites/default/files/attachments/ird/quickstat/reg11_6.pdf
http://www.nscb.gov.ph/poverty/2009/tables_basic.asp
http://www.nscb.gov.ph/poverty/sae/2003%20SAE%20of%20poverty%20(Full%20R
eport).pdf
Websites
http://www.census.gov.ph/content/poverty-situation-philippines-2007-selected-non-
income-poverty-indicators-2007-annual
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/
0,,contentMDK:20242881~isCURL:Y~menuPK:492130~pagePK:148956~piPK:216
618~theSitePK:430367,00.html
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Appendices
I. Survey Forms
University of the Philippines Manila College of Arts and Sciences Padre Faura St., Ermita, Manila
Good day!
In partial fulfillment of my course in Bachelor of Arts in Development Studies in the University of the Philippines Manila, I would like to prove my thesis hypothesis that the Government with its housing projects has not yet reached or has not fully reached the residents of Tondo, Manila.
I would like to ask your help by answering this short questionnaire. Thank you for your support!
Jonathan Paul M. Meneses B.A. Development Studies 2006-57840
Name (optional) : ______
Present Address: ______
Are you currently employed? □ Yes □ No
If No, were you employed before? □ Yes □ No
Highest Educational Attainment: □ College Graduate □High School Graduate□ Elementary Graduate
Did you graduate in any school outside NCR? □ Yes □ No
If Yes, what province? ______
How long have you been a resident of Tondo, Manila?
Does your family own a house in Metro Manila? □ Yes □ No
45
If Yes, how would you describe your house? □ Concrete □ Semi-concrete □ Wood □ Makeshift
Also, if Yes, do you own the land where your house stands? □ Yes □ No
If you your family do not own a house, are you renting a place in Tondo? □ Yes □ No
If No, are you squatting on a lot? □ Yes □ No
If Yes, did the owners try to evict you? □ Yes □ No
If Yes, how much do you pay for each month? ______
Also, if Yes, how would you describe the rates? □ Expensive □ Affordable □ Cheap
How many people occupy your house? ______
How would you describe the space in where you live in? □ Have extra space □ satisfactory □ too small
How would you describe your housing situation? Bad 1 2 3 4 5 Good
Have you receive any help from the government regarding housing? □ Yes □ No
If Yes, when? ______
Also, if Yes, how? ______
Furthermore, if Yes, how often do you receive help? ______
How much would you rate your need for government support? None 1 2 3 4 5 In Need
Are you willing to be relocated if given decent housing? □ Yes □ No
If No, why not? ______
46