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DEVELOPMENT RESEARCH NEWS PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Vol. XXV No. 6

Editor’s Notes Continued development of government infra-

DEVEL O PMENT RESEARCH NEWS November - December 2007

a closer look at BOT

prove the delivery of public services. Because the development of such projects entails huge amounts of investments, the state seeks the support of private firms through the build-operate-transfer (BOT) scheme. This is being establishment and operation of power plants, expressways, water supply services, and many other projects. Recently, however, there has been an observed decline in private sector investments. While this is a global trend brought about by certain factors, controversial transactions are some of the reasons behind investment decline in the country. But where do these controversies stem from?

ISSN 0115-9097

It’ s all in the contract: It’s

structure facilities aims to facilitate and im-

backed by the BOT Law that has permitted the

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S

carce financial resources have prompted the government to tap the private sector in undertaking major infrastructure projects that would help improve the delivery of public services.

A method perceived to be the most effective is the build-operate-transfer (BOT) arrangement, where a private proponent invests in the construction, operation, and maintenance of government infrastructure projects. At the end of the concession period, say 10 years, the project proponent transfers the ownership and operation of the project to the government. In the Philippines, the BOT Law provides the legal framework for this arrangement and other variants, and the parameters by which development projects may be undertaken.

This issue’s main feature tells us that the smooth implementation of big BOT projects depends on carefully designed contracts. Using the challenging case of the Land Trans 16

What’s Inside 6

Intergroup attitudes and policy support: How prejudice against minority groups affect support for public policies

13 Public policy seminar focuses on macroeconomics and children’s rights 14 PIDS launches PIDS Corners in Iloilo City and Davao City

In the light of recent efforts to amend the implementing rules and regulations (IRR) of the BOT Law, it is a timely opportunity to take a closer look at a particular project under this program, and learn from our country’s experience in implementing a big BOT project. Decreasing investments Numerous BOT projects have been implemented for the provision of public services mostly in the utilities and transportation sectors. In recent years, however, a decline in the trend of new investments has been noted by observers from the academe and government. From 1999 to 2003, the BOT Center reports that the cost of new investments committed by the private sector has gone down from $14.6B to $1.7B (Figure 1). While the World Bank reports the decline in private sector interest as a global trend owing to the financial crisis of the nineties, among other factors, it cannot be argued that in the Philippines, the lack of appetite for investments has been caused mainly by the uncovering of some BOT projects that have been found controversial and questionable before the courts.


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Figure 1. Cost of awarded projects (in US$M) 16,000.00 14,000.00

14,696.80

Project Cost

12,000.00 10,000.00 8,000.00

6,079.90

6,000.00

5,863.90 4,149.38

4,000.00

1,740.08

2,000.00 0.00 1999

2000

2001

2002

2003

Year

Source: Build-Operate Transfer (BOT) Center time-series data.

This finding was a timely basis to conduct a review of the Philippines’ experience with BOT and related arrangements. A study titled “Build-operate-transfer (BOT) arrangements: the experience and policy changes” was conducted by Adoracion Navarro, former researcher at the Philippine Institute for Development Studies (PIDS), to examine the nature of BOT-type contracts, their design, and content. The study was conducted to identify issues and problems faced by the government and private investors in implementing a challenging contract.

http://www.lto.gov.ph/programs.html

At the onset, Navarro theorized that some of the reasons for the dwindling investor appetite are related to weaknesses in contract design and gaps in institutional framework for BOT-type arrangements. These are

ICT projects such as the LTO-IT project aim to facilitate the government’s delivery of public services through computerization and automation.

manifested by contractual disputes between the government and private proponents in most big BOT-type projects. As discussed lengthily in the study, Philippine BOT contracts, just like most long-term contracts, are, by nature, incomplete. This incompleteness makes the projects open to opportunism and moral hazard problems during the implementation stage. A challenging case The government contracted a BOT project under the build-operate-own (BOO) scheme on the land transportation vehicle registration and drivers’ licensing in 1998. The US$75M project, implemented by the Land Transportation Office (LTO), was called the Database Infrastructure and Information Technology Project. The project involved the development of an integrated IT system designed to interconnect the regional and field offices across the country, automate LTO’s core business processes such as licensing and motor vehicle registration, and enable online transactions. At the time when the LTO-IT project was being developed, there were no policy guidelines yet specifically for the ICT sector. Later on, it was recognized that the BOT Law and IRR were not capable of addressing the need for clearer policy guidelines in the approval of ICT projects. Thus, to fill the policy gap and to formulate an urgent and immediately implementable solution,


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Analysis of the LTO-IT project revealed certain issues that were primarily related to weakness in contract design. There were no specified control mechanisms to ensure satisfactory performance of the proponent. For one thing, there was no provision on liquidated damages in case of the contractor’s delays in project completion.

the BOT Center spearheaded the drafting of the supplemental guidelines for ICT projects, which only became fully operational in September 2003. As mandated by law, the LTO-IT project underwent the usual government procedure that started with a project review by the Investment Coordination Committee (ICC), an inter-agency body under the National Economic and Development Authority (NEDA) Board headed by the President. Upon approval, bidding and review of the draft contract followed. This was also the sequencing followed for some projects approved prior to the 1999 amendment of the IRR such as the Ninoy Aquino International Terminal 3 BOT Project. However, said sequencing is now generally viewed as inconsistent with prudent BOT approval procedure. In the study, Navarro summarized the contractual provisions that include major undertakings of each party, performance securities, price agreement and adjustment procedures, events and remedies for default, termination procedures, and compensation principles in the event of early contract termination. The author identified issues prior to and during the contract implementation phases and related these to contract design and institutional framework. Navarro explained that the issues stemmed from the fact that during the design and initial phases of the project, the Philippines was still at a younger stage of implementing BOT arrangements. In fact, it can be said that the BOT Law IRR was tested by the LTO-IT project contract. Weak design, weak implementation Analysis of the LTO-IT project revealed cer-

tain issues that were primarily related to weakness in contract design. Navarro pointed out that there were no specified control mechanisms to ensure satisfactory performance of the proponent. For one thing, there was no provision on liquidated damages in case of the contractor’s delays in project completion. The delays translate to opportunity costs at the expense of the public sector, which can provide a strong basis for requiring liquidated damages. As a result, the contractor has a weak incentive to finish the project on time since it knows that the government will not impose penalty for delays, even minor ones. Navarro noted that in the absence of the liquidated damages provision in the contract, the government could have called on the performance bond. The contract stated a PhP100 million performance bond during the operation phase, valid and in full effect for a period of 10 years until the issuance of the Certificate of Acceptance of IT Facility (CAIF). Said bond was intended as a guarantee for the proponent’s completion of the project in accordance with performance standards and timeframe. However, the contract did not specify any penalty “for every day of delay.” It even allowed for 20-percent allowable delays, which the government can approve through requests for extension. The contract did not also explicitly specify whether or not said bond can be called upon should it happen that the IT facilities’ performance is below standard. These issues point to the glaring incompleteness of the LTO-IT contract with respect to a guarantee for faithful performance of the private proponent during operation. The contract provides no penalty at all for minor de-

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According to Navarro, the formula used to compute for IT fees was inappropriate as it follows automatic fee adjustment based on fluctuations in the peso-dollar exchange and the yield on 180-day Treasury bills and thus may result in overcharging.

faults during the operation phase and this creates yet another room for “opportunism” by the contractor. In the absence of calibrated penalties for minor defaults by the contractor, the severest penalty is early termination together with forfeiture of performance bonds. However, due to the incompleteness of the contract, the contractor doest not expect the government to carry out this threat for minor defaults and thus may behave opportunistically during contract implementation. Related to this issue is the BOT Law’s IRR statement on attendant liabilities that once a contractor commits a breach in the contract, the agency concerned may rescind the contract and may either take over the facility and assume all attendant liabilities or allow the proponent to assign the project to another. While the LTO and the private contractor entered into an agreement to amend some provisions in the contract such as the commencement of the project and in-service dates, allowance for downtime, and frequency of payment, most of the weaknesses of the main contract identified above, however, have not been addressed. Another issue pertains to the formula being used in the imposition of IT fees that are

November - December 2007 collected from the public in view of the revenue-sharing scheme in the project. The proponent is authorized to collect fees from the end-users for the use of the IT services on motor vehicle registration and processing of driver’s licenses. According to Navarro, the formula, which follows automatic fee adjustment based on fluctuations in the peso-dollar exchange rates and the yield on 180-day Treasury bills, may result in overcharging because it passes on the full effects of depreciation and inflation to the motor vehicle owners and drivers. Moreover, that the income tax is being recovered through said formula is inappropriate, according to Navarro. In the economic sense, corporate income taxes are meant as taxes on project companies (i.e., the income earner) and therefore must not be passed on to the end-users or consumers. As of the study’s writing, most of the weaknesses discussed above remain unaddressed as the parties implement the contract. A few of these issues, however, have been identified by outside parties. On August 29, 2003, the Commission on Audit (COA), in its Sectoral Performance Audit, concluded that the LTO-IT Project was not efficiently and effectively implemented, and both government and public interests were not adequately protected under the contract. Consequently, the weaknesses in the contract brought about more issues during the implementation stage. First, there were construction and installation delays in which the LTO granted several extensions. Second, the COA suspended remittances to the contractor due to several findings that the audit agency found disadvantageous to the government. Third, the contractor requested for two successive applications of fee adjustments for cost recovery as well as additional fees for the automatic driver’s license examination system and the clearance transactions using the law enforcement and traffic adjudication system. The LTO should have sanctioned the contractor for the delays in implementation. But this did not happen. Instead, the contractor was issued the final CAIF despite the fact that the project was only 93 percent com-


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Asymmetry of information resulting from imperfect monitoring is a source of moral hazard problems. Since it is difficult to monitor BOT project companies, they have an incentive to take on more risks if the regulator or the incomplete contract is unable to penalize them.

pleted. On the additional fees, Navarro pointed out that these were not part of the contract for bidding as only two kinds of fees were allowed—the driver’s license fee and the motor vehicle registration fee. Conclusions and policy recommendations Despite failure of the contractor to deliver satisfactory results on time, the LTO could not penalize it simply due to lack of such provisions in the contract. This boils down to lack of rigorous project preparation and appraisal and to LTO’s unreadiness to undertake the project. In light of this finding, Navarro strongly recommended that further amendments to the present BOT Law and its IRR be explored to identify ways in which incompleteness of contracts may be minimized. One of these is the provision for penalties by setting liquidated damages should the contractor fail to perform satisfactorily during operation. The 1999 IRR prescribes principles for setting an operating security, but the liquidated damages provision is for the construction or installation stage only. Furthermore, the government should take a harmonized and unified view on the issue of attendant liabilities, as this is a cause for concern in policymaking. The provision on attendant liabilities must be revisited and subjected to further examination. Rather than specifically stating the practice of assuming a terminated project’s attendant liabilities as a policy, the government should formulate guidelines based on valuation methods of project asset and/or future earnings for determining compensation in the event of early termination. Additionally, BOT arrangements do not necessarily improve inefficiencies in the pub-

lic sector. To address this, Navarro recommends incorporating some measures either into policy such as the BOT Law IRR or into the contract design itself to incentivize government units to be efficient. This was in relation to the significant delays that the LTO-IT project encountered when it had a backlog in the manufacturing of license plates. Despite the presence of computerized systems in the district offices, the central office could not cope with the demand and thus resorted to manual operations. Another recommendation is striking a balance between comprehensive regulation and micromanagement of big projects under BOT arrangements. Navarro pointed out that asymmetry of information resulting from imperfect monitoring is a source of moral hazard problems; and since it is difficult to monitor BOT project companies, they have an incentive to take on more risks if the regulator or the incomplete contract is unable to penalize them. As a valuable source of information on the companies’ investment behavior, government regulators can refer to the audited financial statements being required annually by the Securities and Exchange Commission. This kind of approach will make the government better informed but it involves significant micromanagement in regulation and monitoring. Lastly, as subjects for future research, a more thorough examination of the development of incentive theories in the economics of regulation and risk allocation mechanisms in the economics of finance, as they relate to BOT contract design, must also be undertaken. Noting also how some aspects of the analysis presented in Navarro’s paper were actually a merging of law and economics, it pays to devote more study on the integration of law and economics in contract design. MAAG

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November - December 2007

Intergroup attitudes and policy support: How prejudice against minority groups affect support for public policies* Clarissa C. David, Ph.D.**

I

t is natural for humans, as social beings, to identify themselves with groups and use these group memberships as key self-identification mechanisms (Brewer and Miller 1996). Further, such groups are important for social cohesion, support, order, and even personal fulfillment and happiness (Nelson 2002). The existence of groups, however, while necessary for organized social structures, also introduces problems and negative behaviors. People favor members of their own groups (ingroups) over those from other groups (outgroups)(Allport 1954; Hamilton 1976; Ostrom and Sedikikes 1992). This tendency is so strong that it is manifested even when group membership is based on arbitrary or trivial criteria (such as randomly assigning people to two groups). Prejudice against “outgroup members” are often based on irrational and illogical reasons, and yet many educated and intelligent

*

This research was supported by the Human Development Network (HDN) through funding provided by the United Nations Development Program (UNDP). Assistance was provided by Jenna Mae Atun and Alcina Habulan. Views presented are those of the author alone, and do not reflect the views of the HDN or the UNDP. **

Assistant Professor, College of Mass Communication, University of the Philippines, Diliman.

people continue to harbor such attitudes (Brewer 1979; Nelson 2002). In any culture, outgroup members are stereotyped, discriminated against, and marginalized. Conflicts between groups (intergroup) are common in society. Many times, intergroup conflicts escalate to violence—such as in instances of gang fights and hate crimes. In recent times, religion, particularly Islam, has emerged as a group that is subject to increasing “outgroup prejudice” all over the world (Hussain 2000; Weller 2006). Liberal democratic ideals support equality and equal protections under the law, regardless of race, gender, or religion. Historically, however, there are instances when government policies support discrimination, or are guided by discriminatory tendencies among the public. Thus, the very government that professes to protect all people equally, at times—through policy—institutionally support procedures that worsen prejudicial practices. This can happen in societies where governments are popularly elected and are thus influenced strongly by public opinion. We argue in this paper that public opinion is sometimes (even frequently) flawed and wanting. If majority of the public holds prejudicial attitudes against minority groups (based on group differences such as religion), and if those attitudes directly affect opinions about support for policy proposals that are in line with their prejudicial opinions, then a gov-


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This study examines the influence of individual belief in negative stereotypes on one’s propensity to discriminate and the effects of both on support for aggressive government policy approaches to address religion-based conflict. The Philippine experience with conflict in its Southern region, where many Filipino Muslims reside, provides a context for this study. This country has been the site of continued armed conflict with the Moro front, which some research argues, began and has persisted because of the marginalization and minoritization of the Filipino Islamic population (PHDR 2005; Santos 2005). Background In this paper, we adopt Ashmore and Del Boca’s (1981) definition of stereotypes as “a set of beliefs about the personal attributes of a group of people.” A stereotype is any generalization about a group, whether negative or positive (Nelson 2002; Neuberg et al. 2000). Believing in stereotypes means believing that all members of a group share relevant characteristics. People who ascribe to stereotypes neglect or refuse to acknowledge individual differences between members of the same group. The literal meaning of prejudice is to “prejudge” something as favorable or unfavorable (Gardner 1994). In the psychology literature, however, there is a more complex set of definitions. We adopt, for this study, a straightforward definition of prejudice as “a biased evaluation of a group, based on real or imagined characteristics of the group members” (Nelson 2002). In particular, this study is interested in examining “prejudgments, usually negative, about a group or its members” (Plous 2002; Fiske 1998; Jones 1997). Discrimination is “putting group members at a disadvantage or treating them unfairly as a result of their group membership” (Plous 2002). Those who believe in negative stereotypes and who are prejudiced against members of a group would be more likely to discriminate. These include acts such as denying employment, avoiding neighborhoods

of immigrants, and refusing entry into exclusive clubs on the basis of race or religion. A concern expressed by some scholars today is that discrimination may not be declining and might even be taking on less obvious forms (Crosby et al. 1980; Hodson et al. 2002; Page 1997) making it more insidious and more difficult to mend. Prejudice in the Philippines Widespread discriminatory practices make minority group members feel that their interests are not valued by the majority; furthermore, when public policy does not protect them, it creates feelings of social exclusion, marginalization, and dissatisfaction (Weller 2006). This is true in the Philippines where the Muslim minority population is both socially and economically marginalized (PHDR 2005). Muslims face more acute financial hardships than their Christian counterparts. Studies demonstrate real and significant evidence of anti-Muslim discrimination based on unfounded negative stereotypes attached to all Muslims (Pulse Asia Report 2005). A national survey of opinions and attitudes toward Muslims conducted by Pulse Asia and commissioned by the Human Development Network reveals marked bias and prejudice

http://istambay.files.wordpress.com/2007/04/unifil.jpg

ernment that follows public opinion may end up institutionalizing policies that perpetuate or implicitly allow discriminatory practices.

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The Philippine Human Development Report (2005) says that in the Philippines where the Muslim minority population is both socially and economically marginalized, Muslims face more acute financial hardships than their Christian counterparts.


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by the dominantly Christian population. These biased attitudes are present even in segments of the population that never had personal contact with Muslims. Those who do not live in communities with a substantial minority population derive their impressions of Muslims from representations in the media. What are the relevant stereotypes? Results of the survey show that majority of Filipinos agree with the statement that Muslims are more prone to run amok (55%). Close to half also report that Muslims are probably terrorists or extremists (47%) and that Muslims probably do not consider themselves Filipino (49%). It is interesting to note that even when wide swaths of the public hold biased attitudes and would willingly report being discriminatory against Muslims, only 14 percent can say that they have had any personal contact with Muslims (Pulse Asia 2005). In addition to the empirical evidence, Filipino Muslims’ personal accounts of experiences of discrimination paint a discouraging picture of the exclusionary world they face everyday. Women report having to take off their veils in order to get a taxi to stop for them (PHDR 2005), Muslim professionals get turned down for loans, and many take a Christian-sounding name to get a fair chance when applying for jobs.

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Learning stereotypes in media Mass media can be unwitting but powerful peddlers of stereotypes. There is a preponderance of empirical evidence supporting the claim that exposure to media depictions of gender roles, race, or religious groups can magnify beliefs in stereotypes (Morgan 1982; Rothschild and Morgan 1987). Content analyses of media products such as advertising, television programs, and film find that media content are replete with both racial and gender stereotypes (Entman 1992; Entman and Rojecki 2000; Furnham and Mak 1999; Plous and Neptune 1997). In a European mail-in survey of different immigrant groups, Muslims, more than people of any other religion, expressed discontent with what they perceive to be ‘frequent’ unfair treatment of media (Weller 2006). Following the mechanisms proposed by various media effects models (Gerbner 1972; Gerbner and Gross 1976; Gerbner et al. 1981), we argue that exposure to stereotypical depictions in the media (whether in news or in entertainment) affect how people think about their world. Television and film products, even when audiences are aware that they are fiction, are viewed as mirrors of the surrounding world (Croteau and Hoynes 2000; Gerbner et al. 1994). Social cues are learned from watching television, and through continued and accumulated exposure to different kinds of media content (e.g. film, newspapers). We expect that the effect of media on belief in negative stereotypes would be more pronounced among those who rely on media for exposure to Filipino Muslims. Local news coverage about the conflict in Mindanao has been criticized repeatedly for language and reporting that “encourages bias,” prejudice, and stereotyping (PHDR 2005).

www.research.vt.edu/resmag/sc99/violence_art.gif

Criticism has been leveled, for example, against constant use of terms such as “Muslim terrorist,” “ Muslim bandit,” or “Muslim rebel,” since for the majority of the population, the perpetrator’s religious belief is never reported as a significant identifying marker (for instance, one would not report about a “Catholic kidnapper”) (PHDR 2005). If these observations were indeed rep-


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resentative of the general reportorial style of journalists, and if we hold that exposure to such depictions encourage bias in the minds of viewers or listeners, then it follows that those who are more frequent viewers and listeners of media would be more prejudiced than others. Prejudice and its impact on policies Race and ethnic discrimination studies inform our argument for effects on public policy and politics. Tested models of behavior indicate that attitudes, beliefs, and perceived norms drive behaviors (Fishbein and Ajzen 1975). Thus, it is reasonable to expect that those who harbor negative attitudes toward Muslims would be more likely to discriminate than those who do not. In democratic societies, public attitudes and opinions have a strong influence on policies and programs (Price 1992). Therefore, to the extent that public sentiment is considered an important factor in policymaking, personal attitudes of ordinary citizens about minority groups can influence government policies. Lahav (2004), in an empirical examination of public opinion toward immigration in the EU, argues that “policy cooperation reflects norms that broadly reflect public opinion.� Mass attitudes can also influence government positions through politicization of elites, who (quite naturally) tend to convert issues of public concern and translate these to political agenda (Lahav 2004). In sum, we argue that in the Philippines, there exists a significant level of prejudice against Filipino Muslims, and that this prejudice increases the likelihood of discriminatory behavior. Belief in negative stereotypes and prejudicial attitudes are fueled by media through its unfair depictions of the minority group as mentioned specifically by members of the Muslim community (PHDR 2005). These prejudicial attitudes affect support for or opposition to policy proposals relevant to the minority group. In this context, we examine how prejudicial attitudes influence support for more aggressive militaristic policy solutions to the conflict over peaceful solutions such as peace talks.

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http://www.armytimes.com/xml/news/2007/02/GNSPhillippines070215/ 070215_philippines_story1.JPG

DEVELOPMENT RESEARCH NEWS

The study predicts that intention to discriminate against Filipino Muslims is positively associated with support for militaristic solutions.

Method Data came from a nationally representative sample survey of the Philippine population conducted by Pulse Asia Incorporated. The survey was fielded from October 21 to November 8, 2006. These variables were commissioned by the Human Development Network. Interviews were done through face-toface conversations with 1,200 voting-age adults randomly selected from the Philippine population. The final sample consisted of 50 percent male and 72 percent urban residents. Eighteen percent of the sample was between the ages of 18 and 24, 27 percent between 25 and 34, 22 percent between 35 and 44, 16 percent between 45 and 54, and the remainder was above 55 years old. Eighteen percent have up to an elementary schooling, 14 percent have some high school education, and 36 percent graduated from high school. The rest have at least some years of tertiary schooling. Intention to discriminate was measured through a summative index composed of four items, each asking about willingness to be personally involved with or be in close physical proximity with Filipino Muslims. Respondents were provided different sce-


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narios and asked whom they would choose between two individuals, one with a Christian-sounding name or one with a Muslimsounding name. Prejudices or biased attitudes toward Filipino Muslims were measured with a multi-item summed scale that asked about belief in negative stereotypes. Respondents were asked to say whether they think the Muslim stereotypes presented are either “probably true” or “probably false.” No neutral response was offered, but respondents were allowed to offer unprompted refusals to answer or “don’t know.” When asked a closed-ended multiple-response question about their sources of information about Filipino Muslims, 79 percent said television, 41.2 percent said radio, 28 percent said newspapers, 24.5 percent gave friends, 1.9 percent gave relatives in the Middle East, 6.3 percent said relatives in Mindanao, and 19.4 percent cited their own experience. Table 1. Logistic regression predicting selection of militaristic solution to conflict Predictors

Intent to Discriminate Index Prejudice Index

Pursue the rebels to achieve peace in Mindanao Model 3 Model 1 Model 2 B B B(Exp) B B(Exp) B(Exp) .14 .09

Source of information about Muslims Television Radio Newspaper Friends Relatives in the Middle East Relatives in Mindanao Own experience

1.15** 1.1***

.14 .1

1.15** 1.1***

.13 .09

1.14** 1.1***

-.13 .07 -.08 -.11 -1.1 -.01 -.36

.88 1.07 .92 .9 .35 .99 .7

-.04 .07 -.01 -.16 -.95 -.06 -.48

.97 1.07 .99 .85 .39 .94 .62*

-.58 -.29 -.47 -.02 .07 -.01 .06

.56** .75 .63* .98 1.08 .99 1.07

1130

1149

Background NCR Balance Luzon Visayas Education Age Gender Socioeconomic status 70% correctly classified N Note: * = p<.05; **= p<.01; ***= p<.001

1149

1149

Policy preference was measured by asking respondents to select what, in their personal opinion, is the most desirable government policy action to achieve peace in Mindanao. They were allowed to choose two from the following four options: (a) government should declare an immediate ceasefire whether the rebels agree or not; (b) government forces should pursue the rebels until they are completely wiped out or weakened; (c) continue dialogues between the different parties affected by the Mindanao conflict; and (d) exert greater efforts to address the poverty problem in Mindanao. Option B, the most aggressive and militaristic response, was used as the main dependent variable. Results Correlations between the index for prejudice and self-reported reliance on media indicate partial support for the argument that those who are prejudiced are more likely to be reliant on media for information on Muslims. Those who identify radio as a significant source of information are slightly more likely to be prejudiced against Filipino Muslims (r=.12; p=.001). However, the prejudice index is not significantly associated with identification of television (r=0; p=.9) or radio (r=.03; p=.4) as a source of information. Intention to discriminate, on the other hand, is significantly correlated with identification of television as a source of information about Filipino Muslims (r=13; p<.0005) and not with radio (r=.07; p=.06) or newspapers (r=.021; p=.55). The following argument is that prejudice against Filipino Muslims leads to support for aggressive militaristic solutions to conflict. This study predicts that intention to discriminate against Filipino Muslims is positively associated with support for militaristic solutions. The argument is tested with a single logistic regression equation predicting the dichotomous variable for choosing the militaristic solution (1, did not choose=0) among the four policy options (Table 1). Results show that both prejudice and discrimination indexes are significant predictors of support for the aggressive policy op-


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Empirical studies on media content with specific interest in representations and depictions of Muslims have yet to be conducted. Such studies can yield important information about the presence of, fairness, and accuracy of depictions of the minority group. tion. Without controls, the estimated odds ratio of selecting the military response for proximity is 1.15 (p=.002) and for prejudice is 1.1 (p<.0005). Those who would actively avoid close contact with Muslims are more likely to select the military option, as are those who are prejudiced. As expected, the behavioral indicator for discrimination is a better predictor of selection of the aggressive response than the attitudinal indicator prejudice. Both prejudice and discrimination indexes remain significant predictors even with all the additional controls. Coefficients of the control variables also show that those who base their impressions of Muslims on their “own experience” are significantly less likely to select the militaristic response. Residents of NCR and Visayas are also significantly less likely to say that the Muslim rebels should be pursued. Discussion and recommendations That prejudice and discrimination are significant predictors of support for certain policy approaches bears important theoretical and practical implications. Results presented here reveal that individual-level prejudicial attitudes can lead to an exacerbation of conflict at the national level, even in the political realm. Aggregate-level analysis presented in the 2005 PHDR shows that predictors of the frequency of armed conflict in a province are measures of deprivation in public services such as water and education (2005). That these factors, and not individual-level measures of income poverty and aggregate measures of income inequality, emerge as significant determinants of armed conflict illustrates the importance of perceived state support on the continuation of the conflict. When the minority population feels excluded and discriminated against by the

majority, and their interests and rights are not protected or valued by public policy, it creates a deep sense of dissatisfaction and resentment against the state, which in turn, fuels the desire to rebel. Individual-level prejudice, which has been shown here to be associated with propensity to discriminate, determines people’s support for certain types of public policies. Results show that those who intend to discriminate against Filipino Muslims are significantly more likely to favor the most militaristic and aggressive policy for dealing with the conflict in the South. When wide swaths of a population are prejudicial and would support an aggressive policy, public (opinion) support, in the political sense, public demand, will be evident. In elected governments, public opinion, even if it is wrong, can have strong influence on state actions. If governments are directed by biased public opinion, then state policies related to dealing with the minority populations (whether involving conflict or not) will inherently be biased as well. From the point of view of the members of the minority group, the government itself appears discriminatory and biased, which in turn, alienates the minority population. The findings of this study support the argument that media representations can help (or hurt) the process of long-term conflict resolution. Media can affect the peace process through at least two mechanisms: directly, through the press’ ability to place pressure on policy makers, or indirectly, by helping assuage prejudice among the majority population and mainstream Filipino Muslims nationally. The latter is a more complex proposition. Empirical studies on media content with specific interest in representations and depictions of Muslims have yet to be conducted. Such studies can yield important information about the presence of, fairness,

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and accuracy of depictions of the minority group. News reporters and editors can have a critical function in advancing the cause of longterm peace in the South. Building a national constituency for peace was identified in the 2005 PHDR as an important means through which to place pressure on government institutions to pursue long-term peace with Filipino Muslims. Placing issues of Filipino Muslims (i.e., the state of their human development) on the media agenda will affect both the public agenda and the policy agenda. Public opinion has been found to follow news cues regarding the national importance of certain political and social issues (see review of Agenda-setting, McCombs 1994). Thus, increased (and fair) news coverage of the issue can create public demand for government prioritization of Muslim affairs. The presence of prejudice and discrimination among wide swaths of the population against Filipino Muslims is a critical barrier to sustainable freedom from conflict (PHDR 2005). Systemic marginalization from both the state and the majority population fuels resentment and frustration among members of the Muslim community. This study shows that reliance on media for information about Muslims exacerbates prejudice, which in turn, increases public support for aggressive and militaristic policy approaches to the conflict. It is reasonable to expect then that the practice of responsible news reporting and entertainment programming, depicting Filipino Muslims in a fair and accurate manner, can be a profound contribution to the achievement of long-term peace in Mindanao. References Allport, G. 1954. The nature of prejudice. Reading. MA: Addison-Wesley. Ashmore, R.D. and F. K Del Boca, 1981. Conceptual approaches to stereotypes and stereotyping. In Cognitive processes in stereotyping and intergroup behavior, edited by D. L. Hamilton. Hillsdale, NJ: Lawrence Erlbaum Associates. Brewer, M.B. 1979. In-group bias in the miniman intergroup situation: A cognitive-motivational analysis. Psychological Bulletin 86:307-324.

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Brewer, M.B. and N. Miller. 1996. Intergroup relations. Pacific Grove, CA: Brooks-Cole. Crosby, F., S. Bromley and L. Saxe. 1980. Recent unobtrusive studies of black and white discrimination and prejudice: A literature review. Psychological Bulletin 87:546-563. Croteau, D. and W. Hoynes. 2000. Media/Society: Industries, images, and audiences. 2 nd edition. Pine Forge Press: London. Entman, R. 1992. Blacks in the news: television, modern racism, and cultural change. Journalism Quarterly 69:341-361. Entman, R.M. and A. Rojecki. 2000. The Black image in the White mind: media and race in America. Chicago IL: University of Chicago Press. Fiske, S. 1998. Stereotyping, prejudice, and discrimination. In The handbook of social psychology, 4th edition, edited by D.T. Gilbert, S.T. Fiske, and G. Lindzey. New York: McGraw-Hill. Fishbein, M. and I. Ajzen. 1975. Belief, attitude, intention, and behavior: an introduction to theory and research. Reading, MA: Addison-Wesley. Furnham, A. and T. Mak. 1999. Sex-role stereotyping in television commercials: a review and comparison of 14 studies done on five continents over 25 years. Sex Roles 41:413-437. Gardner, R.C. 1994. Stereotypes as consensual beliefs. In The psychology of prejudice: the Ontario Symposium, Vol. 7, edited by M.P. Zanna and J.M. Olson. Hillsdale, NJ: Erlbaum. Gerbner, G. 1972. Violence in television drama: trends and symbolic functions. In Television and social behaviour, Vol. 1. Media content and control, edited by G.A. Comstock and E. Rubenstein. Washington, DC: US Government Printing Office. Gerbner, G. and L. Gross. 1976. Living with television: the violence profile. Journal of Communication 26:173-199. Gerbner, G., L. Gross, M. Morgan and N. Signorelli. 1981. A curious journey into the scary world of Paul Hirsch. Communication Research 8:39-72. Hamilton, D.L. 1976. Cognitive biases in the perception of social groups. In Cognition and social behavior, edited by J.S. Carroll and J.W. Payne. Hillsdale, NJ: Erlbaum. Hodson, G., J.F. Dovidio, and S.L. Gaertner. 2002. Processes in racial discrimination: differential weighting of conflicting information. Personality and Social Psychology Bulletin 28:460-471. Human Development Network. 2005. Philippine human development report 2005: peace, human security and human development in the Philippines. Manila: Human Development Network. Hussain, M. 2000. Islam, media, and minorities in Denmark. Current Sociology 48(4): 95-116. 15


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November - December 2007

Public policy seminar focuses on macroeconomics and children’ s rights children’s

T

he second seminar of the policy dialogue series on Public Policies and the Rights of Children in the Philippines brought together economists, researchers, government and development workers to discuss some intersections of the theory and practice of economics and the pursuit of the rights of children. Held at the Romulo Hall of the NEDA sa Makati Building on December 7, 2007, the seminar was part of the partnership between the Philippine Institute for Development Studies (PIDS) and the UNICEF. The highlight of the seminar was the presentation on “Inclusive growth as full employment: implications for Asian countries” by Dr. Jesus Felipe, principal economist at the Central and West Asia Department of the Asian Development Bank (ADB).

Dr. Jesus Felipe (third from left),principal economist at the Asian Development Bank speaks on full employment and the needed policy support to generate more jobs. Also in photo are (from left) Ateneo de Manila University Professor Dr. Joseph D. Lim, UNICEF Country Representative Dr. Nicholas Alipui, and UNICEF Deputy Country Representative Mr. Colin Davis.

Dr. Felipe introduced the concept of inclusive growth or a growth with equal opportunities. To achieve this, Dr. Felipe stressed the need for the government to commit efforts and resources in the pursuit of “full employment,” which basically means everybody has a job. This can be done by creating jobs and keeping people employed instead of putting resources to pay people as employment subsidies. This, he said, is by far the best tool to fight poverty because unemployment or underemployment of the labor force is the main problem that developing countries face.

While aiming for full employment sounds like an illusion, Dr. Felipe said that the policymaker’s role is to aim for zero involuntary unemployment and reduce underemployment. He then discussed the five sets of policies that policymakers should consider from a systematic point of view; these include agricultural development, investment and industrialization, industrial policy, monetary and fiscal policies, and public sector as employer of last resort. He likewise emphasized the role of the private sector in creating jobs and for the government to come up with good policies that will create jobs.

Zeroing in on the causes of unemployment, Dr. Felipe said that it is caused mainly by shortage of capital, equipment, and productive capacity. Therefore, the objective of development in countries like the Philippines is to increase the productive capacity of the economy by increasing investments.

The link between child labor and full employment was discussed by Dr. Joseph Lim, professor at the Ateneo de Manila University-Department of Economics. He said that lack of employment often leads to the situation where parents are forced to have their children work in low-skilled but dangerous jobs. MAAG


DEVELOPMENT RESEARCH NEWS

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November - December 2007

PIDS launches PIDS Corners in Iloilo City and Davao City n July 25 this year, the Philippine Institute for Development Studies (PIDS) opened its 6th host repository of PIDS collection at the Henry Luce III Library of the Central Philippines University (CPU) in Iloilo City.

O

only to Iloilo-based researchers and readers, but also to those in the entire Region 6. He likewise noted that the addition of the PIDS Corner complements well with the University’s being the repository of other collections like the Meyer Asian Collection.

Amid a formal yet lively gathering, CPU Vice President for Academic Affairs Dr. Nathaniel Fabula, and Vice President for Finance and Enterprises Professor Rowena Libo-on, joined PIDS President, Dr. Josef T. Yap, in the cutting of the ceremonial ribbon to signal the inauguration of the PIDS Corner.

Dr. Yap, for his part, noted that the program of setting up PIDS Corners in various parts of the country is part of the Institute’s contribution to strengthening regional development and integration in the country. This, he said, is through sharing knowledge resources and research inputs for better formulation of regional development policies and programs.

In his welcome remarks, Dr. Fabula extended CPU’s gratitude and appreciation to the PIDS for sharing its research resources with the University’s readers/users. He assured the Institute that these resources are very valuable and will indeed add to the knowledge base being shared by the University not

The inauguration was highlighted by the formal signing of a Memorandum of Agreement (MOA) between the PIDS and CPU with regard to the PIDS Corner and its objectives. Meanwhile, the 7 th PIDS Corner was launched in collaboration with the University of Southeastern Philippines (USEP) on November 7, 2007. This is the 3rd PIDS Corner in Mindanao, which is housed at the Main Library of USEP at the Obrero, Davao City campus. The inauguration and MOA signing was attended by officials and staff of USEP, PIDS, and National Economic and Development Authority Regional Office XI (NEDA-XI).

The program of setting up PIDS Corners in various parts of the country is part of the Institute’s contribution to strengthening regional development and integration in the country.

The program was opened by USEP Vice President for Research, Dr. Irvin C. Generalao, who welcomed the collaboration between PIDS and USEP as a way to address the current low utilization of research outputs. Ms. Jennifer P.T. Liguton, Director for Research Information at PIDS, gave a background about the PIDS Corner as well as the different research resources available at PIDS such


DEVELOPMENT RESEARCH NEWS

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November - December 2007

as the various publications and the web resources. Meanwhile, Ms. Mari-Len R. Macasaquit, PIDS Supervising Research Specialist, gave the audience a “tour” of the PIDS website, showing comprehensively the resources and information accessible online. The program was capped by the signing of the MOA by USEP President, Dr. Perfecto A. Alibin, and PIDS OIC-Vice President, Mr. Mario C. Feranil, and was followed by the ribbon cutting ceremony. The program continued with messages from the heads of the two institutions. As a closing note, Ms. Esther M. Lauron, OIC-University Head Librarian, expressed her gratitude for this partnership that will enrich their library collection and will be a step toward more linkages between USEP and PIDS in the future. Also present during the event was Dr. Rodulfo C. Sumugat, USEP Vice President for Administration. JPTL/MADR

Philippine Institute for Development Studies OIC-Vice President Mr. Mario C. Feranil and University of Southeastern Philippines President Dr. Perfecto A. Alibin sign the Memorandum of Agreement as part of the formal launching of the PIDS Corner at the University of Southeastern Philippines. There are now seven PIDS Corners all over the country, three of which are in Mindanao.

Intergroup...from p. 12 ○

Jones, J.M. 1997. Prejudice and racism. 2 nd ed. New York: McGraw Hill. Lahav, G. 2004. Public opinion toward immigration in the European Union: does it matter? Comparative Political Studies 37(10):1151-1183. McCombs, M. 1994. News influence on our pictures of the world. In Media effects: advances in theory and research, edited by J. Bryant and D. Zillman. Hillsdale, NJ: Erlbaum. Morgan, M. 1982. Television and adolescents’ sex role stereotypes: a longitudinal study. Journal of Personality and Social Psychology 43:947-955. Nelson, T. 2002. The psychology of prejudice. Boston: Allyn and Bacon. Neuberg, S.L., D.M. Smith and T. Asher. 2000. Why people stigmatize: Toward a biocultural framework. In The social psychology of stigma, edited by T.F. Heatherton, R.E. Kleck, M.R. Hebl and J.G. Hull. New York: Guilford. Ostrom, T.M. and C. Sedikides. 1992. Out-group homogeneity effects in natural and minimal groups. Psychology Bulletin 112:536-552. Page, S. 1997. An unobtrusive measure of racial behavior in a university cafeteria. Journal of Applied Social Psychology 27:2172-2176. Plous, S. 2002. The psychology of prejudice, stereo-

typing and discrimination: an overview. [online] http://www.UnderstandingPrejudice.org/ [Accessed 15 May 2007]. Plous, S. and D. Neptune. 1997. Racial and gender biases in magazine advertising: a content analytic study. Psychology of Women Quarterly 21:627-644. Price, V. 1992. Communication concepts 4: public opinion. Sage: London. Pulse Asia Incorporated. 2005. Final report for the Human Development Network: public perceptions on Muslims in the Philippines. Unpublished report for commissioned survey, submitted to HDN. Rothschild, N. M. Morgan. 1987. Cohesion and control: adolescents’ relationships with parents as mediators of television. Journal of Early Adolescence 7:299-314. Santos, S., Jr. 2005. Evolution of the armed conflict on the Moro front: a background paper. Submitted to the Human Development Network Foundation, Inc. for the Philippine Human Development Report 2005. Weller, P. 2006. Addressing religious discrimination and Islamophobia: Muslims and liberal democracies. The case of the United Kingdom. Journal of Islamic Studies 17(3):295-325.


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Reentered as second class mail at the Business Mail Service Office under Permit No. PS-570-04 NCR. Valid until December 31, 2007. Annual subscription rates are: P200.00 for local subscribers and US$20.00 for foreign subscribers. All rates are inclusive of mailing and handling costs. Prices may change without prior notice.

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Editor's Notes...from p. 1 ○

portation Office ICT project as basis, Adora

one’s propensity to discriminate and the effects

Navarro describes several issues that deter

of both on support for aggressive government

the smooth implementation of the said project.

policy approaches to address religion-based

These issues, the author explains in detail,

conflict. The Philippine experience with con-

are related to weaknesses in the contract de-

flict in its Southern region, where many Fili-

sign per se.

pino Muslims reside, provides a context for this study, which was initiated by the Human De-

Along this line, it is recommended that the

velopment Network (HDN).

present BOT Law and its implementing rules and regulations, the very backbone of BOT

Results show that reliance on mass media as

projects, be reviewed and amended. Careful

a source of information about Muslims leads to

review and appraisal of big BOT projects, par-

belief in negative stereotypes about Muslims

ticularly in the ICT sector, should be under-

and intention to discriminate against them. The

taken. This will protect the interests of the pub-

study provides emphasis on the crucial role

lic sector, while giving the private counterparts

that media plays in advancing the cause of

the assurance that it is all worth investing in

long-term peace in the South. Furthermore, it

public infrastructure projects.

states that fair and continued media coverage has the potential to create public demand for

Another feature talks about the influence of

policy and institutional support in prioritizing

individual belief in negative stereotypes on

Muslim affairs.

DRN


/pidsdrn07-6