Political Decentralization

Rachael O. Morala

Introduction

The case study documents the experience of a former fifth class municipality in implementing and institutionalizing an innovative system of social service delivery. Citizens of Valencia, Negros Oriental regularly receive a package of social services among which are health and education benefits. The provision of these social services has improved the lives of the people in the community.

Several factors contributed to the program’s success. The presence of an enterprising and reformist local government official provided the impetus for the development of the program. The Local Government Code provided the legal environment that made the program possible. While the active participation of community based organizations from within and outside the municipality ensured the attainment of the program’s goals.

The social service delivery system implemented in the municipality of Valencia is being sustained. In fact, the experience in Valencia is paving the way for similar programs to be implemented in the various municipalities of Negros Oriental.

The case study also assesses the processes undertaken to implement and institutionalize the social service delivery program in Valencia. It will show that although cooperation between local government and civil society organizations resulted in the institutionalization of an innovative local government program it did not automatically lead to the institutionalization of civil society participation. It is because of this gap that local government and civil society interactions have not led to sustainable partnerships.

Thus, despite the relative success of the program implemented in Valencia there remain areas of improvement in terms of the genuine partnership between the municipal government and civil society. The change in the officials in the municipal government has brought about changes in the priorities of the municipal government. As assessed by civil society organizations in Valencia these priorities run counter to the priorities they have identified. The CSOs have not been able to dialogue with the local government in order for them to reconsider their priorities. In fact some civil society organizations in Valencia even with their previous successful encounters with local government have opted not to deal with the local government in the mean time.

There are two clear messages that can be drawn from the case study on Valencia, Negros Oriental. One, that participation leads to sustainable outcomes and two, that it is equally important to institutionalize participation, the very process that allows for the sustainability of these outcomes.

The Innovation in the Delivery of Social Services

There is no municipality quite like Valencia, Negros Oriental. This municipality nine kilometers west of Dumaguete City[1] boasts of a scenic rural community at the foot of famed Mt. Talinis. Valencia is not simply set apart by its physical beauty, but more importantly the municipality is host to a unique system of social service delivery unparalleled even at the national government level.

Over and above the social services regularly provided by the national government, residents of Valencia starting 1992 enjoy P2,000.00 annual hospitalization benefits, P125.00 monthly electricity subsidy and burial assistance in cases of death. In exchange for a minimal registration fee and appropriate tax payments, identification cards are issued to all residents aged 18 and above. These identification cards allow the residents to access the social service benefits.

In 1995 additional services were added to the program after the municipality received a grant from the Literacy Coordinating Council (LCC) of the Department of Education, Culture and Sports (DECS) and the University of the Philippines Center for Integrative Development Studies – Education Research Program (UP CIDS-ERP). The implementation of the Comprehensive Community Education and Development Program (CECDP) allowed registrants to be automatically blood-typed for the municipality’s living blood bank. Registrants who were unable to read and write were automatically enrolled in a free basic literacy and numeracy course.

To date the program covers 80% of the municipal population.[2] Although the literacy components have been removed after the end of the CECDP, the core programs of the social service delivery system is still in place.

How Things Began

Valencia has long been a fifth class municipality. In the Philippines lower class municipal government incomes and relatively poorer communities characterize fifth class municipalities. Agriculture is the main source of livelihood.[3] Corn, abaca and vegetables are the primary produce. Banana and fruits such as lanzones, rambutan and mangoes are grown through backyard tending and are sold on a seasonal basis. Land is relatively equitably distributed. There are no big landlords within the municipality. Farmlots sizes average one hectare. There are no big or even medium industries to speak of.[4] Dumaguete City is the primary market of all agricultural produce. Alternately, items and necessities are sourced from the provincial center. Residents recall of a time when households do not even have enough income to support their children’s education.[5]

Things began to change for Valencia beginning 1988. Elected Mayor Edgardo Teves put priority in developing the local economy. Projects were undertaken by the municipal government to improve farm productivity and to prod farmers to shift to production of high valued crops such as broccoli and asparagus. Residents with land to spare were encouraged to cultivate ornamental orchids.

Efforts at priming the economy were assisted by several civil society organizations. The Rotary Village Corps along with the Ting Matiao Foundation organized productivity training for farmers. Farmers’ organizations were revived and became beneficiaries of the program. Rural Improvement Clubs, an association for women/mothers in the community, were given training in alternative livelihood programs such as cooking, sewing and others.

To further boost the economy, the municipality of Valencia packaged some of its natural wonders into ecological tourism areas particularly Mt. Talinis. VALMOGA (Valencia Mountain Guides Association) an organization of mountain guides was organized to assist visiting tourists. They also received training regarding environmental awareness in order to preserve the tourist spots.

The comprehensive local economic development program resulted in noticeable gains in the economic condition of households in the area. Residents cite how they have been able to rebuild their house as a sign of their improved economic conditions.[6] Most households now have level II water and sanitation facilities (except for the three barangays located within the mountainous areas of the municipality).

A1 farmer Mr. Hermes Dagohoy testifies how his family’s situation has greatly improved after receiving support in crop shifting. [7] Mr. Dagohoy now has a supply contract with one of the big groceries in the provincial capital. Mrs. Maria Cepe adds that as a school principal she has noticed how households are now more involved in economic activities and how the lives of her students have become better off. [8] Once can see the improvement in people’s lives for example in celebrating the fiesta.[9] People are now more generous in their celebration. It is reflective of the bounty they have been receiving.

The success of the local development program implemented during the first term of Mayor Edgardo Teves effectively addressed the economic needs of the community. It also facilitated the revival and creation of civil society organizations in the municipality. This initial encounter paved the way for local CSOs to participate in other municipal government programs. In a way, the initial encounter became the testing ground for local government and civil society relations.

The Legal Environment

It was in 1992 that the Local Government Code (LGC) was passed. [10] By this time the people of Valencia re-elected Mayor Teves for his second term in office.

The passage of the LGC marked the shift in the system of social service delivery in the Philippines. The LGC became the legal basis and governing policy framework for local governments with regard social service delivery. From being provided solely by the national government social services now became the primary responsibility of the local governments.

Decentralization of the social service delivery was among the contentious provisions of the Code. For the first time in Philippine contemporary history services such as health, social welfare, sanitation, hygiene and support for recreation became the responsibility of the local government units (LGUs).[11] At the onset of the Code’s passage, many argued that while the responsibility of providing such services were devolved, the resources to finance the delivery of these services were not. This was especially true for lower class municipalities because of their meager budgets.

For more enterprising local governments, however, the LGC became windows of opportunity. Such is the case for Valencia.

In 1992, the municipal government of Valencia exercised its newfound taxing power and imposed a royalty tax on the Philippine National Oil Company (PNOC). The PNOC is a government owned and controlled corporation and it has been operating a geothermal plant in the municipality since 1977. Electricity generated by the PNOC services the various provinces in Region VII namely Cebu, Bohol and Negros Oriental.

Book II of the LGC allows municipalities to generate local resources through local tax measures.[12] While the Code added responsibility to the LGUs, it also gave them the flexibility to generate resources outside those provided by the national government.

Income generated from the royalty tax on PNOC financed and continues to finance the municipal expenses for the social services program. It also allowed the municipality to purchase and maintain its own ambulance, dump truck and fire truck.

In 1992 the municipal budget jumped from P2.50 million to P10.98 million largely because of the royalty tax collections. Since then the municipal income averaged P12 million. More than half of the municipal resources are locally generated while the rest are internal revenue allotments.

Apart from royalty tax collections, there was substantial improvement in the collection of individual taxes because of the registration process associated with the social services program. Mr. Fred Anqui, [13] municipal development and planning officer, argues that through the implementation of the social service program individual tax collection has become more efficient. The municipality is more able to identify tax collectibles from individuals through the registration requirement. Also, local taxpayers are encouraged to pay appropriate taxes since they know these taxes are being used to finance the social services provided by the municipal government.

The Enterprising and Reformist Local Government Official

Accounts related above show the critical role played by the municipal mayor in initiating development in the area. Edgardo Teves became mayor of Valencia right after the EDSA revolution in 1986. The Teves’ are a known political family in the province of Negros Oriental. Edgardo’s uncle is currently congressional representative of the province while his cousin Gary Teves was the province's previous representative. Edgardo however claims that he belongs to the less political and less economically endowed strain of the clan.[14]

Running as mayor of Valencia was Edgardo Teves’s first crack at politics. Before being mayor, he was actively involved in his wife’s business. He was schooled until high school within Valencia and he received his college and law degree within Dumaguete City. Edgardo Teves recalls how the EDSA revolution inspired him to do his share in nation building such that in the first election after the ouster of Marcos, he took on the challenge of the emerging politics.

He was elected for three consecutive terms as mayor of Valencia. From 1988 to 1992 Mayor Teves implemented projects and programs not within the usual areas of work of former Valencia mayors. Citizens of Valencia are one in saying that the performance of Teves as mayor of the municipality has been exemplary. In fact, if not for the term limit mandated by the LGC,[15] they would have wanted him to remain as mayor of Valencia.[16] As a testimony of Edgardo Teves’s astonishing performance as mayor, he has been overwhelmingly elected as Negros, Oriental’s Vice-Governor in the most recent local elections.

The enterprising and reformist perspective of Edgardo Teves allowed him to:

(1)  appropriately identify certain needs of the community;

(2)  maximize the municipality’s existing resources to address these identified needs;

(3)  generate external assistance to complete the gaps in both human and financial requirement of the municipality’s program; and,

(4)  utilize civil society participation in program implementation.

The arrival and implementation of the CECDP in Valencia exemplifies how Edgardo Teves wielded different opportunities and actors/players that ensured the program’s success.

The CECDP was implemented in Valencia during his third term. It integrated the delivery of social services with the basic education program being implemented by the DECS-LCC with the cooperation of the UP CIDS-ERP. It also covered the integration of other municipal development programs like eco-tourism and agricultural projects.

It was in September 1995 that then Mayor Teves attended and actively participated in the First National Literacy Congress of the DECS. The conference aimed to solicit support from LGUs regarding localizing education programs. Education has not been devolved by the national government but the DECS has been experimenting on ways wherein LGUs can be involved in the delivery of basic education programs. Dr. Rose Sese of the DECS-LCC recalls the enthusiasm of Mayor Teves in volunteering the municipality as the pilot project site for the LCC. [17] Right there and there the mayor committed the full support of the municipality to the program. The DECS-LCC in return committed to


provide P1.5 million in grant to Valencia for the implementation of a community development program.

It was a chance encounter at the conference venue elevator where Mayor Teves sealed the participation of UP CIDS-ERP as partners to the education program to be implemented in Valencia. He discussed with the UP CIDS-ERP executive Director Malou Doronilla about the possible design of the project. By the end of the conference, the CECDP project design was being drafted by Mayor Teves along with the DECS Regional Office - Negros Oriental Division and UP CIDS-ERP personnel onboard the boat they rode on the way home from the conference.[18]

Immediately upon his return to the municipality Mayor Teves gathered municipal officials with officers of different government local agencies that will be involved in the program. He presented the project proposal to them and solicited their support in the implementation of CECDP in Valencia. Soon after, the UP CIDS-ERP team came to Valencia to conduct a rapid community appraisal and area needs identification workshops.[19] The results of the appraisal and workshops were very much similar to the needs that the CECDP sought to address.