An annual publication of the University of San Francisco Center for the Pacific Rim Volume V · Number 2 August · 2005 Copyright 2005 Special Issue: REDEMOCRATIZING SOUTH EAST ASIA THROUGH CITIZEN, CORPORATION, AND GOVERNMENT ALLIANCES Editors Joaquin Gonzalez John Nelson Is There Room for More Social Responsibility in Asia’s Business and Economic Graduate Student Turn Around? Editor >>..................................................Joaquin L. Gonzalez III 1 Pamela Nagashima Government and Citizen Engagement at the Local Level in Thailand: Nan Editorial Consultants Municipality’s ”Roundtables” and ”Expert Panels” Barbara K. Bundy >>.............................................................Alex M. Mutebi 16 Hartmut Fischer Patrick L. Hatcher Richard J. Kozicki The Penang, Malaysia Experiment in People, Private, and Public Partnerships: Stephen Uhalley, Jr. Xiaoxin Wu Process, Progress, and Procedures >>................................................................Tan Pek Leng 29 Editorial Board Yoko Arisaka Bih-hsya Hsieh Citizens, Government, Business and the Transformation of a Ravaged Philippine Uldis Kruze City: The Case of San Fernando, Pampanga Man-lui Lau Mark Mir >>...............................................................Edel C. Guiza 44 Noriko Nagata Stephen Roddy Initiating Participatory Democracy in Indonesia: The Case of Surakarta Kyoko Suda Bruce Wydick Municipality >>.......................................................................Pratikno 59 Asia Pacific: Perspectives is a peer-reviewed journal published at least once a year, usually in April/May. It Asia Pacific: Perspectives welcomes submissions from all fields of the social sciences and the humanities with relevance to the Asia Pacific Center for the Pacific Rim region.* In keeping with the Jesuit traditions of the University of San Francisco, Asia Pacific: Perspectives 2130 Fulton St, LM202 San Francisco, CA commits itself to the highest standards of learning and scholarship. 94117-1080 Our task is to inform public opinion by a broad hospitality to divergent views and ideas that promote cross- Tel: (415) 422-6357 cultural understanding, tolerance, and the dissemination of knowledge unreservedly. Papers adopting a Fax: (415) 422-5933 comparative, interdisciplinary approach will be especially welcome. Graduate students are strongly [email protected] encouraged to submit their work for consideration. * ‘Asia Pacific region’ as used here includes East Asia, Southeast Asia, South Asia, Oceania, and the Russian Far East. Downloaded from http://www.pacificrim.usfca.edu/research/perspectives USF Center for the Pacific Rim Asia Pacific: Perspectives · August 2005 the lives of their constituents. This case study is one such story of a group of people who capitalized on their crisis and worked together to survive and transform their city amidst Citizens, Government, the ruins of volcanic eruption, floods and typhoons. The Business and the Trans- study will try to answer the following questions: How were the citizens of San Fernando, a calamity prone and ravaged formation of a Ravaged area, able to transform their city? What was the role of the local government and its leadership? How were they able to Philippine City: The Case of generate the needed revenues to finance the transformation and improve the delivery of basic services? What were the San Fernando, Pampanga results? What are the practical lessons and insights that can be by Edel C. Guiza gained from their experience? What are the prospects for sustainability and replicability? As a backdrop to the San Fernando case, a brief review of Abstract the country and its relevant political, economic and historical After more than ten years of devolution, the Philippine local landscape is features will be discussed with special focus on the decen- energized by success stories of local governments who dared to innovate tralization policy, specifically the salient provisions of the and make a difference in the lives of their constituents. This case study is 1991 Local Government Code institutionalizing citizen one such story of a group of people who capitalized on their crisis and worked together to survive and transform their city amidst the ruins of participation to promote good local governance. The San volcanic eruption, floods and typhoons. The study will try to answer the Fernando case is best understood in the context of national following questions: How were the citizens of San Fernando, a calamity policy and related national trends. prone and ravaged area, able to transform their city? What was the role of the local government and its leadership? How were they able to generate II. A Brief Country Profile the needed revenues to finance the transformation and improve the delivery of basic services? What were the results? What are the practical The Philippines is an archipelagic country of 7,100 islands lessons and insights that can be gained from their experience? What are with Luzon, Visayas and Mindanao as the three main islands. the prospects for sustainability and replicability? As a backdrop to the Unlike in other countries in Asia, the 2001 estimated popula- San Fernando case, a brief review of the country and its relevant political, tion of 80.1 million is predominantly Roman Catholic, a economic and historical features will be discussed with special focus on the decentralization policy, specifically the salient provisions of the 1991 legacy of Spain’s colonial rule for more than three centuries. Local Government Code institutionalizing citizen participation to English, also a colonial legacy but this time from the Ameri- promote good local governance. The San Fernando case is best under- cans, is widely spoken and the literacy rate is one of the stood in the context of national policy and related national trends. highest in Asia. In the 1950s and early 1960s, the Philippines was the envy of countries in Southeast Asia. But in the 1990’s, the country I. Introduction lagged behind all of its Southeast Asian neighbors except Decentralization is a pre-requisite to local autonomy, Indonesia. In 2001, the country registered a GDP growth of which is the degree of self-determination exercised by a local 3.4%. The fiscal deficit was 3.8% of GNP financed through government unit vis-à-vis the central government. It dis- borrowing by the national government. In 2001, total public perses power away from the center to the local government debt was estimated at P1.2 trillion pesos (US $1 = Php 50.00), units which are closest to the citizens. As such, it hastens the about P90 billion higher than that of 2000, and external debt decision making process at the community level, enables service payments amounted to 16.4% of total exports of goods participation of stakeholders and improves effectiveness and and services. To reduce the fiscal deficit, the national govern- efficiency in the delivery of basic services. Decentralization ment cut back on capital and infrastructure investments. comes in two main forms: 1) devolution, sometimes referred While there was a slowdown in public expenditures, private to as political decentralization, which involves the transfer of consumption spending was vibrant, primarily due to the power from central authorities to local governments and 2) high level of remittances from millions of overseas Filipino deconcentration or administrative decentralization, which is workers estimated at 8% of GNP. the delegation of functions by a central government authority to its field units. The Philippines has experienced both forms Poverty Reduction, A Major Challenge of decentralization: it deconcentrated a few decades back by Poverty incidence in 2001 has increased by 2.6 percentage creating regional field offices and, in 1991, devolved powers points from its 1997 level. Latest estimates have shown that and responsibilities to the local governments. By transferring 39% of the total population have incomes below the national more powers and functions to local government units, the poverty line. Poverty is more acute in the rural areas al- government hopes to strengthen the redemocratization though urban poverty has been rising due to the influx of process started in late 1980s and galvanize local energies for rural migrants in the urban centers in search of jobs. The local development. unemployment rate in 2001 is estimated at around 11%, After more than ten years of devolution, the Philippine considered the highest in the region. local landscape is energized by success stories of local Given the high level of poverty incidence in the country, governments who dared to innovate and make a difference in reducing poverty has been a major thrust of government. The http://www.pacificrim.usfca.edu/research/perspectives Transformation of a Ravaged Philippine City / Guiza · 44 USF Center for the Pacific Rim Asia Pacific: Perspectives · August 2005 present dispensation has formulated a comprehensive positions in government which paved the way for the package of interventions, a key feature of which is the creation of strategic partnerships between the government strengthening of democratic institutions at various levels of and the NGOs. This practice was continued by the Estrada government to promote people’s empowerment. and the (present) Arroyo administrations. The efforts of the The poverty in the country had been attributed to a NGOs made the bureaucracy conscious of its mandate to number of internal and external factors. The 1997 Asian work for those who need the government most—the