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Vol.XI No.4

July-August 1993

ISSN0115- 9097

J

Communicating PolicyIssuesforDevelopment By Fermin D. Adriano There is much to learn from an outsider looking in and assessing the state of how policy studies are being used by target audiences. But there is wisdom in listening to ustav Ranis, Yale University professor, once complained thattheproblem with thePhilippinesis thatit doesnotseem to listen to its policy analysts. He noted that the sameissues that the country was confronted with two decades ago are the very same issues that are facing the no* lion today. Thus, it is no mere coincidence that the policy recommendations being offered today merelyre-echo those in the past. All that one needs to do is to change the date and the names of institulions, and the policy studies conducted in the 1960s and 1970s still stand valid today.

insiders sharing their views and actual experiences in the field of communicating policy issues to support development. This is what DRN hopes readers will gain in this issue as it features the complementary article and highlights of the masteral thesis of Dr. Fermin Adriano and Jennifer P.T. Liguton, respectively. Dr. Adriano, a respected development economist, is currently writing a regular column for a prestigous Manila-based daily and is the Executive Director of the Center forPolicyandDevelopmentStudiesattheUniversityofthePhilippinesatLosBa_os.Ms. Liguton, PIDS" director for research information, recently concluded her study on "Communication and Related Social Factors Enhancing the Utilization of Policy Research Results" and the results provide useful insights on how various research institutions in the country communicate their research results to their public. Readers will also find interesting notes in the seminar reports on how China continues to woo foreign investors, as discussed by an investment expert, for the Philippines to consider, while a town planner traces how land prices in Metro Manila are affecting housing programs. Also in this issue is the account on how the Philippine system _ To page15

Having read most of the major policy works (cf. Ben Report1950; Power

r_

Philippine Bureaucracy: In Search for the Right Formula for Effective Governance

_1

Findings of DRD-Phase II Studies Out

_

A Look at China's Investment Perks

1971;ILO1974;Baldwin1975;WorldBank 1978; Bautista et al. 1979; de Dies, ed. ....

1984; Alburo et al. 1986; APST 1986; Krugman 1992; and PIDS 1992) on the Philippines, I cannot help but agree with Professor Ranis' observalion. Indeed,

Escalating Land Prices Affect Housing Programs

the persistence of the same set of policy problems throughout these years is a testimony to much-needed the failure of our analystsreto push for the economic

_

Philippine System of National Accounts: Revising for Relevance and Accuracy

_

Communicating Policy Issues for Development

_

Enhancingthe Use of Research

forms. This failure can be traced to two factors. One is that losers in the policy reform process wield considerable political and economic dout that they are able to successfully block attempts to change thepolicylandscape.

And twoisthatour _Wl'opage 2

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DEVELOPMENTRESEARCHNEWS

Communicating Policy issues.., (From page 1)

analysts' ability to communicate their message effectively to policymakers, media, and the public is wanting, Thispaperdealswiththesecond factor for pragmatic reasons. First, the losers-gainers equation is a given; no matter what one does, there will always belosersand gainersin anypolicy reform process. Losers willresist policy reform ..... fo_r_=_e_ o_bj_e__ctive "m_terest (Le., survival) is at stake. On the other hand, gainers will be natural allies of the policy change but their degree of support will depend on whether they understand the process

July- August1993

of thepolicyreform communicationprocess. Communicating policy issues for development is akin to delivering electricityfromthepowersourcetothehouse of an ordinary consumer. A series of step-dOwnprocessesmustbeundertaken, starting from hundreds of megawatts from the plant down to mere tens of kilowatts in the household, to make the tremendous amount 0f energy at the source usable, and hence, beneficial to the consumers. Without these series of downgradings, the enormous amount of power generated in the plant will be rendered useless. ..............................

I! ...our

analysts'

(anditsresults), theresources at their command, and the magnitude of benefits

ability to communicate

that they will reap.

their message effectively

And second, it is much easier to

ker withacomm _,ication desi or strategy than with the interests of the parties in the policy reform process. The communication strategy can be suited according to the interests of the constellation of forces in the politico-economic spectrum and not the other way around. The latter is a given and it is up to the communication specialist to surmount, counter or cushion the argument of the losers, ........ C0mmunicati__ g pg_h'cy__ i_ss_uesis an easy one; communicating policy issues for developmentis not. The former involves conveying results of policy research; the latter involves conveying the message as an instrument of effecting a change or obtaining a result. In other words, the task of an analyst or philosopher is perceived as that of an "interprete_' ofeventswhile thelatteris viewed asan agent of change. Iris obvious that most policy analysts would like to fit in the shoes of the latter, AN ANALOGY To be able to become an effective agent of change, it is imperative that a policyanalystmusthaveanappreciation

After all, sound policyrecommendations emanate from good policy studies. But for the process to end in policy change, additional home works need to be accomplished. In our power generating analogy, these activities are what we referred to as the downgrading phase, or what is known in communication as the "popularization" stage. Two elements are critical in this stage of the policy reform chain. First is what I Would refer to generically as the "form" of the ruessage and the second, its "content." Under the former concern, I would4_ategorize the follow__ng:1) language used, 2) themessenger,3)timingof themessage,4) audience, and 5) the packaging of the message. For the latter, the considerations would be: 1) the losersgainers equation, 2) media structure, and 3) the analyst-advocate interaction. Undeniably, thelist is not exhaustive and, in

to policymakers, media and the public is

some instances, fromtheauthor's own experience in policy advocacy. But

wantin=."

the parameters are still in the stage of being defined. The foregoing is an attempt to contribute toward this direction.

O

as the field is fairly new in the country,

Similarly, policy research conFORM ducted by the best brains around are like electricpowerplants. Advancesinpolicy Language. Despite claims that studies have resulted in the application economicproblemscanbetranslatedinto of more rigorous analytical techniques mathematical forms, man's main cornthat only a few privileged individuals, munication instrument will remain to be mOSLof whpm ac?den___" _ci_aps_, c_a_app_re_-_e _phab_etl Ma thema tical equations do ciate. Thus, even well-intentioned express in simpler and dearer terms felapolicymakers, seeking the advice of our tionships among variables but, unfortur analysts in order to improve the policy nately, onlyafewaregiftedtoappreciate, landscape, are deterred by the prospect letaloneunderstand them. On top of this, ofwrestlingwiththelabyrinthofgraphs, economicshasitsownjargonthatonlyits tables, and equations. By not translating followers can understand. In fact, even theseworksintoamorereadableform, it amongthefaithfulstherearestilldifficulis most likely that they will accumulate ties in comprehending some of them. If dust in the library. But there are waysof this is the case, one cannot therefore exavoidingthisunhappyandwastefulsitupect non-economists, as most ationfrom occurring. Wetackleanumber policymakers are, to understand what of them below, economistsare saying. Listening toeconomists will either make him feel stupid or AREAS OF CONCERN be discouraged in carrying the interaction further. Policy analysts must be Undoubtedly, policy research forewarned that the inability of the employing sophisticated analytical tools policymaker to comprehend them is not are critical in the policy reform chain, necessarily due to incompetence but be-


DEVELOPMENTRESEARCHNEWS

cause economics and related fields have their own set of jargons understandable onlytothosewhospedalized on thefield, It is like an economist thrown into the middle of a discussion of agroup ofmedical doctors trying to analyze a particular ailment of a patient. In this situation, itis understandable of the economist to feel inadequate because the topic being discusseddoesnotfaUundertherealmofhis competence. Policy researchers should be similarly generous with those who chose a different career path. Messenger. Regardlessofclaims by our nationalists, colonial mentality is stiU ingrained in our culture. A foreign scholar working in the Philippines will obtain tzemendous amount of information, whether volunteered or forced,_rom F'flipino sources than his local counterpart who is analyzing the same issue, Likewise, it is much easier for foreigners to seek an audience with our p0licymakers than a Filipino lobbyist or complainant. Given this situation, it is sometimes advisable to employ the services of foreign scholars when pushing for certain policy reform measures. When judiciously planned, their intervenlion becomes a critical factor on whether a particular policy is adopted or not.

July-August 1993

forwarded by our local scholars. Similarly, the recommendations of the muchpublicized Krugman Report (1992) were earlier posited by the faculty of the University of the Philippines (UP) School of Economics. Where does the difference lie? It lies in the fact that the reports of the foreign experts were given much publidty by our media, considered more seriouslybyourpolicymakersasreflected by the amount of time spent in their discussion and the decisionmakers' attendance in the workshop, and became the basis for some of the conditionalities for us to avail of foreign loans, Timing. A foreign expert once remarked that the Philippines is an overstudied country. Most aspects of its economy and what ails it have already been tackled, analyzed, and dissected to its very last detail. Thus, it is difficult to do something in the field of policy research which is not yet known to other scholars. The most that one can do is update the data set or fine-tune previous studies on the same issues through the useofmoresophislicatedanalyticaltools, preferably with the aid of computers,

°Reseal chers and

Of course, people complain about the considerable amount involved in bringing these foreign experts into the country. But when one considers that most foreign technical assistance or grants contain a provisionfor availing of the services of these foreign scholars (which somehow helpsin alleviating the unemployment

advocates I

should see

__i_i_¢_1"_

separately

a]:gl!_ es.:

Audience. Policy research to becomerelevantmustbemarket-oriented. In the same vein, messagesin order to be effectively conveyed to their intended targetaudiencemustbeformulated with the client in mind. Scholarly writings are best suited for academicians while articles written in a journalisticmanner have a larger popular appeal. The masses are swayed by slogans and continuousbombardment of messages while a rational presentation of facts has a greater appeal to the middle class. Policymakers are, by nature, extremelybusyindividuals;onlythosewho have the inclinations for academic stuff will bother to go through scholarly articles. Most will skim through it, preferring to pay close attention either to the summary or recommendations. For policy analysts to reach them, messages must be condensed into one or two-page write-up, usuallytypedboldlyorincapital letters, the highlights concisely presented, and the options and their consequences clearly spelled out. Sending a voluminous manuscript to policymakers (without any executive summary) is tantamount to consigning the document to the waste basket.

Packagi_. Variousinformation,

they become

to be effectively conveyed, require different forms of packaging. A book is the best host for scholarly work; a journalor a working paper can accom-

_ weak

but

together they

serve

asa

powerful force

for change,

nal authors to repackage them will surprisingly obtain tremendous net benefits to institutions advocating for policy reform.

problem in their respective countries), the country will be far benefited by their presence if they are carefully relected by the recipient government agency and harnessed based on a well thought-out scheme. A second complaint usually hurled is that these foreign expertsmerelyre-echomost of the findings of studies previously done by Filipinos scholars. For instance, the United Na-

l!

But it does not necessarily follow that there is no longer use for such studie_ As earlier noted, past economic problems persisted to this very day, and hence, most of these works are still relevant. What is critical now is how to

modate scientific articles, a fly sheet best suit policymakers who do not have the time to read a research result; and the media is the most appropriate medium to use when attempting to gain public support. If the battle has to be won in allfronts, necessarily thepolicyreform advocate must package the information in various forms that wiU fit the different outlets.

tions Development Programme (UNDP) report on the Philippines conducted two yearsagodldnotcontainanyrecommendations that have not been previously

repackage them properly and time their releases to get maximum media coverage. A small amount of money flexible enough to hire the services of their origi-

Packaging is a critical element in getting the message across. For example, _To page4 ,I EnR I


DRN July-August1993

Communicating PolicyIssues... (From page 3) I_(::)LIcy HI_I=OI=_IVI_;

some of our policy analysts are baffled why a particular institution or institutions are accorded undue attention and respect by policymakers, businessmen, and the media despite the low quality of the analytical techniques employed in their research undertakings. On the other hand, other research institutions which have produced studies employing sophisticated analytical tools do not command • the s#meattention, The secrethereis that the former knows how to package their research results while the latter, ignoring theimportanceofpackaging, relegate this critical task to theix junior staff members. And to think that packaging only costs a little compared to the amount devoted in the actual conduct of the research, it is therefore worth investing more time and effort in this activity, CONIENT Losers and Gainers. Policy reformdealswithchangeandinanychange, there will always be gainers and losers, Expectedly, the losers will resist reform measures as these will adversely affect their interest while the beneficiaries may or may not support the measures depending on their understanding of the reform process. Policy analysts, when presenting their recommendations to policymakers, must be cognizant of this fact so that they can forewarn the latter of what to expect from the losers. It will be a lot easier for the policymakers to form ulate a strategy to operationalize reformmeasuresiftheyaresimplyinformed about the magnitude of opposition, There is a certain degree of hesitance on thepart of policy analysts to venture in this terrain given the feeling that this is already the domain of politics rather than economics. But the bifurcation between the two fields is really an artificial one because in the realm of real-. ity, the two are inherently intertwined, OnecznnottalkofeffidentresourceaUocation without taking into consideration iii B

IlL

Things to consider... thecozffiguration ofinterestgroupswithin a given society. Under a capitalist system, property ownership is predominantly in the private hands. Any attempt to reconfigure the distribution of these assetswiUnecessarilyentailclashingwith theinterestofthosewhowillbeadversely affected by the reform program, Let me emphasize that we are not dealing with a zero-sum game here. What is being proposed is that policy work must be cognizant of these divergent interest groups. Also, provisions can be offered to cushion the negative impact of adjustments, thereby softening the opposition of the losers in the reform program. In o_er w ords_wha t we are saying is that policy analysts must be more creative than what they are today, Media structure. The term "structure" is being used here in its generic sense and refers to two things: one is the ownership of the media, and two is the people that workin the media. As one of the power bases in the country, it is imperative that policy analysts have an understandingofthosetwofactorsifthey are going to make full use of the media in their crusade, WeaUknow that themedia ownership in the country is in the hands of a few individuals or groups. Theprimary reason for this is not because it is a lucraHIS

II

I_ve business proposition, as reflected by the fact that majority of them are losing a lotofmoney, butbecausetheseindividuadsor groups feel theyarebig enough that they can afford to lose money just to protect their interest. Ownership ofmedia means power since one has the facility to get even with a detractor or criticize a government official not sympathetic to thebusinessinterestsofthemediaowner. Likewise, it is a means to deter attacks fromcompetitorswhoalsohavemediain their possession or control. The above is common knowledge in the industry. What is not given emphasis is that most owners of the media belong to the import-substitution.industrialistclasswhichprosperedthrough the long years of government protection and subsidy'of their firms. Thus, it is not surprising that reforms meant to liberalize certain economic activities are hardly given a sympathetic ear by the media. The simpleexplanationisthatthesemeasures go against the very interests of the media moguls. A second factor why liberalization proposals are difficult to sell in the media is because of the political orientation ofitsmiddleand seniorlevelstaff. It must be borne in mind that most of them are products of student activism in the late 1960s and early 1970s wherein the thesis of imperialism had reached the I m IIIBm


proportion of a dogma. For them, it is simply difficult to disengage themselves _rom the dogma and thus, liberalism and institutions associated with it like the World Bank or the International Monetary Fund are treated as something obnoxious. To disabuse their mindset, extra effortmust be exertedin explaining to

Theseattitudesmustbechanged if the reform process is to be pushed successfully. Researchers and advocates should see themselves as natural allies: separatelytheybecomeweakbuttogether they serve as a powerful force for change, Each one must have an appreciation of the contribution of the other. For without

able to thelayman. Forhiseffort, Asimov has been hailed a brilliant author in a field close to his heart, that is, science. Asimov's example should be a living inspirationfor budding policy communicators. ,_

them that liberalization, if carried out properly, will attain for the society the

this mutual respect, their ability to push for the adoption of reforms willbe se-

goals of efficiency and equity, objectives which their previous learnings are supposeclly aiming for. In this way, they can be assured that policy analysts are their allies in the task of reforming our society,

verely handicapped.

AgriculturalPolicyandStrategyTeam. Agenda for Action for thePhilipinesRural Sector.Vol. 1.Makati: PhilippineInstitut_ iorDevelopment Studies. May 1,1986.

Analysts and Advocates. Many policy analysts view the publication of their work as the end goal of their effort, To policy reform advocates, they view theworkofthepolicyresearcherasmerely an ammunition in the long process of effecting a change in our policy landscape. Often, researchers think that they themselves are the advocates and this is

ence. UnlikePRworkwhichfocuseson marketing a product or a person, communicating policies deals with ideas. Because ideas are by nature abstract, any PR man will agree that policy communication is a tough job. It requires a special kind of person to understand, let alone appreciate, the works of policy researchers. Most likely, the person himself had

Baldwin, Rola_ E. Foreign TradeRegtnm and Ewnomic_tin thePhilippines.New York: National Bureau of Economic Re_ search, 1975.

something

in the past engaged in the challenging

Ball, D.U. et aL Report to the Presidentof the Uniteti Statesbythe F,conamicSurveyMission to the'Philippines. Washington, D.C. Also containingthe,,HardieReport_cmtheAgrartan Problem in the Philippines, 1950.

that should be encouraged,

CONCLUSION To some degree, communicating policy issues for development is public relations (PR) work, but with a differ-

But since most of them are preoccupied with fulfilling their mandate of "publish or perish," or do not have the inclination to engage in the bloody affair of policy advocacy, pushing for the adoption of their recommendations fall on the shoul-

world of policy work, making him an insider of sort. The pr0blem is thatunlike the policy analysts who reap all the glory for the things that they publish, policy communicators arerelegated to thebackground, contented with the thought of

der of policy advocates,

assisting policy researchers to reach a larger audience, and in the process, also helping their country. But not all of us can be a policy analyst. The best stance is to take heed of Plato's advice in his work "The Republic" wherein heexhorted that

The relationship between the two, however, isfarfromideal. Tosome degree, it mimics the relationships between a medical doctor and his nursing staff: the former thinks that he aloneis the best person that can judge what is good for the patient and therefore has the sacrosanct right to order the latter. Meanwhile, thenursing stafffeelthat asprofessionals, they are the better judge in the recovery phase of the patient. Similarly, policy analysts feel that since they produce the substantive aspect of the work, they treat communicators as a mere appendagethathastorespondtothelrneeds,

each one should do his uianost best in his chosen career to make this world a better place to stay.

On the other hand, policy advocates/ communicators fed that without them,

ordinary scientists since he does not possess thebrilliance tobecome an outstand-

analystswillsimplybeconsignedtotheir ivory tower unable to relate their works, no matter how outstanding, to the real world,

ingone. Asforhischosencareer, Asimov has written more than a hundred books and articles discussing scientific and scholarly, matters in words understand-

n n

HI

REFERENCES'

Isaac Asimov, a multi-awarded sciencewriter, didjustthat. Whenhewas interviewed why he chose to become a science writer instead of becoming a scienlist when he had a degree for it, he quipped that if he had chosen the latter, he would just have been one of those

nnnM

mlmjl

m II

Album, Florian et al. EconomicReeaxcryand lamg-RunGrmath:AgendaforReJim_.Maka_. Philippine Institute forDevelopment Studies, 1986.

Bautista,Romeo M.andJohnPower _nd Associates. Industrial PromotionPolicies in the Philippines. Makati: PhilippineInstitutefor Development Studies, 1979.

De Dins, Emmanuel, ed. "An Analysis of the Philippine EconomicCri-is." Awhitepaper produced by the UP Schoolof Economks, 1984. Kmgn_n,PauIR.,JamesAlm, SmanM.Collim, andEliM.Remolona. TransformingthePhilipp/ne Economy. Manila: NEDA/UNDP, 1992. InternationalLabor Organization. Sharingin Devetopment:.APrograrameofEmployment, Equity, and Growth_r the Philippines. Geneva: International Labor Organization, 1974. PIDS Poverty Study Group. Poverty, Growth and the Fiscal Crisis: Main Report. Makati: Philippine Institute forDevelopment Studies, 1992. Power, John, I-Land Gerardo P. Sicat. The Philippines: Industrializatianand TradePollc/es.Oxford:OxfordUnive_ityPresa, 1971. World Bank. ThePhilippines: Prioritiesanti Pros/_te _or Det_lapment. Washington: International Bank for Recomtmctlon and Development, 1976.


DEVELOPMENTRESEARCHNEWS

The

size

of

July-August1993

the

bureaucracy has always been raised as a major issue in a]] the

Philippine Bureaucracy:

In Searchfor the RightFormula for EffectiveGovernance

efforts to reform the government. The

common perception is that the country has a "'bloated'" bureaucracy.

......

Trimming the Fat Perhaps guided by this perception, no less than five major reorganizationshavebeenmountedsince 1946. In 1972, then President Marcos' In* tegrated Reorganization Plan carried out purges supposedly to streamline the size of the civil service for efficiency. Partly to stave off the growing public deficit, another massive layoff was carried out during the early Aquino regime such thatby the end of 1987, government employees numbered only 565,894. Despite these dramatic purges, it is ironic to note that the size of the bureaucracy doubled during the martial law period while the size jumped nearly three times to about 1.5 million in 1989, two years after the Aquino government ordered the layoffs,

585 national agencies and 1,2 miUion per .... manent positions. It aUoted P76.4 billion or 36 percent of its total appropriations forpersonalservicesaloneforthepresent fiscal year. Considering the limited resourceswhich must trickle down to some 64 million Filipinos, that proportion certainly manifests inefficiencies. Symptomsofdysfunc5oncanbe seen in the overlapping of functions, programs and activities, inadequate and often delayed provision of goods and services, and unnecessary competition with the private sector, among others. And yet, bills continue to pile up in Congress seeking for the creation of new agencies, Popular Assumption

reaucracy is indeed "bloated." They argue that to continue to assert that it is so is simply to express a value judgment, and notbased on rationaldata. Consultation

among

These were am_ong the critical issues tackled during the continuing series of consultation-meeth_gs among experts involved in the "Streamlining the Bureaucracy Project." The Department of Budget and Management (DBM) was tasked to lead a Presidential Task Force that will look into areas where the bureaucracy can be streamlined for efficiency and effectiveness. In turn, DBM asked PIDS to prepare a study that will provide the overall and sectoral frameworks on governance. A series of consultati0n meetings were held starting last May 5 and 15, and again on June 6, all held at PIDS, Makati. P!DS is jointly sponsoring the series with the DepartmentofBudgetandManagement(DBM).

On March 31,1993,barely a year in office but already anxious that an "energized" bureaucracy has not been realized, President Fidel Ramos summoned his Cabinet to a workshop. Asin many occasions in the past, he singled out the streamlining of the government as a vision of his administration. "Let's breathe life to that vision," he reminded his Cabinet.

The popular assumption is that the bureaucracy is already too big and expensive. ThUS, efforts to trim down the size were periodically launched. However, the paradox is that thebureaucracy always ended up bigger after every rearganization is launched. Such ironic situation, experts say, can be explained by the failure to define the appropriate size of the Philippine bureaucracy. Despite all thosepublicities to trim thebureaucracy to a manageable size, none of those early reorganization efforts ever defined anappropriatestandard sizefor thecountry. Just what is the appropriate size for the Philippine bureaucracy?

Bureaucracy In Focus

No Standards

|i_i_;;_,!;O,,_?

vey by the Department of Budget and Management(DBM),thegovernmenthas

experts say, there is really no sensible way to determine if the Philippine bu-

__"l_,_-_:_i,_'_"__ _!_e__

Why the constant streamline?

pressure ....

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Experts

Painful Process Streamlining the bureaucracy, however, is easier said than done. Like thepruningofaplant, it aims to improve growth, but streamlining government operations entails a long, tedious, and painful process because it involves peapie, systems, cultu:e and a lot of politics.

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DEVELOPMENTRESEARCHNEWS

July- August1993

Some people in government are so focused on tasks, title and turf. They Would spin with the daily grind of functions, fancy structures and authority, and in the process, entanglethemselvesinthe not-so-ideal web of systems and procedures. Before they realize it, they have imbibed a culture that clouds the real intent of governance and public service, What Needs

to be Done

During the initial workshop the "Streamlining the Bu-

the capabilities of agencies to do the right things at the right time in the right manner in response tO public expectations and policy dedsions.'Streamlining, therefore, isseenasatooltoredefinescopeand focus of governance, redirect works to essential tasks, pinpoint areas for strategic intervention, simplify operational processes, remove extraneous impositions to achieving results, and create conditions for sustained improvements in performance,

of

reaucracy May 5, Dr.Project" PoncianoheldIntal, on

,

Jr.,PIDSpresident, laiddown the broad framework of the project, that is, "to generate

tar_etted _,_. ,:_, ....

I!

...cha_r,_ _l?l°'_i¢'a_lxld !

be

to vreserve..... where _,,,,_,,_,;._,..:_,. .. ........

appropriate, reduce where mOreconsideratiofi,productivity,policyeqUitYman_ necessary_ and enhance where agement, trust through clear desirable the capabilities of agencies to do the right things at the right time in the right

delineation responsibili-of ties, and the ofelimination duplicated

functions."

!1 The task, according manner..., to him, is to redefine the scope and approach of government activitiesratherthanfocusonthesizeofthe _vernmentvls-G-vlsPrlvr_leSector bureaucracy. The five guiding princiThe private sector is the real enpies, which were drawn up andbased gine of growth and government, accordfrom a previous reorganization effort, ing to Taguiwalo, thus, government are: 1) promotion of private initiative; 2) should play the role of an enabler. As improvementoftheefficiencyoffrontline a principle, government should operate services; 3) decentralization; 4) accountonly in areas where the private sector, ability; and 5) cost effectiveness, non-government organizations (NGOs) or the local governments are unable to How will the Project's study effectively respond even with proper team go about the "herculean" task of policy and public financing, and where constructing the right formula for an elthe cost of national government infective bureaucracy? tervention is less than the cost of nonintervention, The strategy, according to the Project's team leader Mario Taguiwalo, consists of examining the desired outcomes in society through the MediumTerm Development Plan, and a review of existing roles of governrnent agencies in various sectors,

Thecentralissuein refo_ing thebureaucracy,

according to Taguiwalo,

is to see whether government is effective in achieving national goals. Also, institutional changes should be targetted to preserve where appropriate, reduce where necessary, and enhance where desirable I1[

In areas where NGOs and the private sector can perform effectively, the government should limititsrole to establishing and maintaining the environment of policies, rules and regulations necessary for their continued operation. in areas where public financing is necessary to achieve public goals, the govemrnentmustonlyadministerpublic funds without unnecessarily undertaking the activity, in areas where government must produce goods and services, the local government must be given the greater role. Foot of Experls

project

The experts working on the are Drs. Fermin and Lourdes

Adriano for agrarian reform, Drs.Cristina David Bruce J.delos Tolentino for agriculture, and Drs.V. Marian Angeles and Danilo Israel for environment and natural resources, Mario Taguiwalo for the integrative report and health and social welfare, Dr. Jose Magpantay for science and technology, Rehe Ofreneo for labor, Melito Salazar and Dr. Epictetus Patalinghug for industry, tourism, trade and economic diplomacy, Dr. Tereso Tullao, Jr.foreducation, Drs.Bienvenido Alano and Erlinda Medalla for customs andtaxadministration,Dr.AmeliaAncog and Imelda Rodriguezfor financial management and auditing reforms, Dr. Rosario Manasan for interg0vernmental fiscal relations, Jose Endriga and Dr. Ma. Concepcion Alfiler for size and incentire structure of the bureaucracy, and Prof. Elena Panganiban for decentralization. 4"

!!As

a'principle, government should operate ol_y in areas where the private sector, NGOs or the i_GUsi are unable to effectively respond even with _[K)per policy and public financing, and where the 'iCostof nationalgovernment intervention is less than _.!, (_OStof non-intervention, t! IIIIIIl_L_

IIIII

IIII

IIIII

I

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DEVELOPMENTRESEARCHNEWS

lmost everyone today acknowledges the importance of research in the process of policymaking. Years ago, though, this was not the case. When policymaking in the Philippines was mostly the domain of traditional politiat all, were done to support the derisions drafted, discussed and approved on the basis of political motives, self-interests and profit orientation. Many things have transpired since then. Theimpositionofmartiallaw in the seventies, for one, brought in a number of the so-called technocrats who occupied key positions in government, With them in the mainstream of governmentdecisionmaking, research became a key input to the process of deliberation and policymaking, and remains to be so to this day (as can be gleaned in Table 1 which records the creation of a number of research institutions in the country over the years)., In her study "Communication and Related Social Factors Enhancing the Utilization of Policy Research Results", Jennifer P.T. Liguton traces the evolution of the role of policy research and policy research institutionsin thepolicymaking process in the country, and looks into the extent and manner by which said institutions have employed communication and communication-related activities in enhancingtheutilizationoftheirresearch results by policymakers, The Study Submittedasamasteralthesisin March 1993 at the University of the Philippines' College of Mass Communication, Liguton's study covers 31 research institutions from all over the country doing policy studies 1 on Philippine economic and social development. Using a set of six criteria as her basis in defining and selecting the research institutions, Liguton provides a profile for each of the institutions;looksintothevariousareas/ fields of research that each institution undertakes, noting theareaswhereineach is strong and listing some of the more

July- Au!ust 1993

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R

E

Enhancing the Use of Research importantstudiestheinstitutionhasdone; and examines the communication approaches, methods and techniques that each institution had used and still uses to relay the results of its studies, With the help of self-administered questionnaires, follow-up interviews with offidals and staff of the research institutions, literature search of documents, newspaper clippings, draft bills, etc. that are related to findings of solneoftheinstitutions'studies, andpersonal interviews with policymakers on both nationaland regionallevels, Liguton came up with some interesting results, Credibility and Communlcc_ion: The Ideal Combination As noted by a majority of the policyresearch institutions studied, the 2 keyingredients that usually spell success in influencing policymakers on the use of a particular institution's research findingsare: 1)thecredibilityoftheresearch institution as brought about by its track record of high-quality research outputs; and 2) the proper commianication of its research results to and rapport with its target audience. This response serves tO strengthen previous research findings: thatwhilethebottomlinefor influencing policymakers in considering an institution's research recommendations is the quality and soundness of its study, it is not a sufficient reason for effecting utilization. Itis only the minimum requirement, What ultimately increases the chances of the resuIts' being used is an extra push by means of appropriate communication approaches,

The Rise of Advocacy in Policy Research Ligutonnotesthat therehasbeen a growing sentiment in recent years among certain policy research institutions to evolve from a previous role of beingmereproducersofresearch/policy analysis and dispassionate experts on policy issues to a more pro-activerole of being "advocates" on certain policy issues. She observes, however, thatadvocacy should be exercised with caution as it entails and calls for a whole new type of expertise, one that needs a dear understanding of the complexities of the cornmunica tlon process and of the intricacies of the political nature of policymaking. Indeed, something that many researchers are not adequately equipped with. It likewise requires getting to know better one's audience. For the task of advocating through the "education of the policyinakers" would need having an idea of the values and orientation of this group as well as its predisposition towards acceptance of certain ideas. Getting Audience

Attention

The study asserts that policymakersputahighpremium on the format of presentation of research studiesand theirfindings/recommendations, whether they are presented verballyin a face-to-face interaction or are written in the form of discussion papers, summaries, etc. It is therefore important to use crisp, direct-to-the-point and clear language in communicating messages and to prepare policy briefs, executive summaries, table of contents, glossary and


_

_ _ HI

_,_:_i _ .... i_"i_-_i _II.I_I __:_ ___ _ _ _ _-_._ _ _ _i_c_i_i_i_i_ ___ _ _...._ _.... _ _. _ _ _- : _ _ _ ._ : index:as ac:companying aids to v01umi; : _i_ei'i_'J_l"i_:_"'_i_'_ t_:.'.i_,_iiC_i;¢i_"_:/_"_.s_'i:t;_/_%:._"_:_ ..........the policymaking: comm_znity: and the nousrep0r!s. :i i : policy research institutions calls for a ............ ....... ..................... : ........:........ : .... more involved role of bodies like, for .... ::

i

As: expected, face-to-face rote'r* acti0nlikebriefings, dialoguesandrneet.... ings is preferred by policymakers since ....... one Can easily establish rapport: _tnd get immediate:feedback .... ..... :: ....... : :: i i

:

i ....

..... Th:estudyMsoreportsthat:coin, i ii : bining several communication ap* proaC!_esensureshigherutilizationi The i greater thenUmber Of method combina_

: : _Ihe: heavy concentratton of policy research institutions within the Metro Manila area suggests theneed for thebuildingupand strengthening ofsimilar institutions in:various parts of t'he country. Asnotedinthestudy, thebottleneck is in the shortage of max_power in both:areas of research and commux_ication. Thus, investments in the develop; mentor human resources through the setting up of library facilities, traipsing : programsandresearchmaterialsarevery

•

instance, the Regional Development Councils (RDCs) a_d various research consortia .... .... : ...... :OnCe eVery Semester perhapS_ theRDCs, during theirregularmeetings, may focus their agenda exclusively on the identification of government's needs for research and the assignment of research institx_fions to look J.nto certain research issues for policy use. At the _me time, the agenda may include the

tions_thebetter

....... :: ::

therestfltsarein:term sof:il important:.: ......... presentation of researd_ results of re_ WiltS::r:ega:rd: :f0::::th_:m : : : i :i::::: ......... ..... se;u'ch m Stitu tions within the region _md mix_thest_dyaddsthatthechoiceshould : : :::::::Corol!arily; the absence of an .....the comments oftI_epolicymakers on the :de:p_n:d ea regular i feasibility: the: stud:ies¢:recommenda: medium.: : researchdialoguesintheregi0nsbetween tions. .... _'_ To page 15

...........


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i es Ou t RD Phase Ii Stud i......

hefind!ngs:m_dpolicy i: :Hisfindingsshowthattheusual ¢ati0ns of the studies done indicators of ruralperformance tend to under the D._amics0fRltrN i be bia_d downward. According to the

ages 0f agricul_ral income growth, in2 creaselaborandtotalfactorproductivity m_dbuild the hmnan capital of fl_epoor.

_"'_:i :Developm_t (DRD) Project stUdy, the shifting of areas formerly clas:::: : PartIlwerePresemtedinase_2inar-work: i : sified as:rural:to urbanas population shop: attended:by researd_e_ from the: activityThis in _ National:: Economic and Development creases: makes: a economic lot:of difference.

He also points out areas where more research should be done for deeper.understanding and analysis of the• dynam_ icsofr_zraldevelopment.

.......

_::ii:::

nance (DOF)i:Philippine COuncil:forAg:: differenceinmralpovertyestimates. The Incce¢l_cl Rurclllncomethrough RNEs ricultureii_ Forestry and Natural Re-study notes:htrther that while this was sources, Research and Development not a serious problem for h_tertemporM .... Rural nonfarm enterprises: rof......... fl_ePhilippines of:........ rural p overt can exp.................................................... and and be a substanti_ .......................... • comparison •........ .... ..... y in the 1960_ _.....(RNEs) , .......... _......................... .... :::::and:;:!l:970g; if the 1980S rural ................. ...... fl_eprivate sector such as Center for Re-and 1990s; in 1980, a large number of areas if provided with an environment searchamd Communication and intemai: :::areasinitiallyeonsideredasruralbecame .....conducive for growth. Thisis the findh_g i of fl_e study 'qTtie Impact of Credit on : (OSU)and United States Agency for _ *r _ifromrural to urban, Productivity and Growth of Rural -, . , donebyMa_Ludla ternational Development (USAID) on reduced rural population share in the Non farmEnterpnses April. 15-16;i993 at the CaylabneResort[[ HESfrom62percentin1988tO50percent Lapar, PlDS Rese_ch Associate [[ [:: inCavite.

:: :

..... ...... ...... : [ [i:i [ :: Fo_singheystudyintheVisayas [: :[:: ::::: e:[i::: DRD [isi:a :compreim_sive[[ :i [ : [::Th:e:[iminimaIrural p0verty:re_:: :area_Lapar studies impact of credit tht4e:ye:ar:,e:geafctipr0gram which :Com2:[idu_iti0n: in the sec6nd: half6f::the 1960s on. the productivitY and growth of rural ......... .... and ......... ..... • _...... _ y : nonfarm.....enter P risesand • fom_dthat pro: March :]994,1:Funded:by the:Te&nicd:i :n0ted:; c0nSidering: that agricultural : vidingcredit tofi_ancetheworkingcapi:i were fairly tal needs of R.NEswillreSult in increases

....

standm:ds, :: > the ross output of the RNE ::: : gram :consists of:studies in agrarian red: _Palsmayalso SuggeSt:tl_a_rapid:agricul-: .... sector. [: : [ mralgrowthis no[enough factor for [ : Crddit,[the Study suggests; will : : [: r "* -_ _ " " ...... ......................................................... u r8,lareasto move to a p,os> .... ....... : .............................. ............... develop : .....: ........ ..... ..allow entre_ p _en_urs .... ' to ........ : tion where they can combirmresources or [ : ::::[::[::: : ::::::::::[: ::[::::[=::::: ::: :::: ::: :: ::: :: :: :::::: : : ::::: [::::: ::[: :: ::Bali;ican suggesis: thaf to sus2 h_puts optimall y, For the m anu fact_urer, of::rUral: poverty, creditwillenabfetheefficientuseofmore ....... _::'.':...........: .... :: :........ ............ : : : ]_ : Y: :. .... ::Pro-: ::in,uts. t ..... _:: ....... : ......... i....... gg ........ madmay_ot be asaccurate as tliey Should gTamsmust be putin place. These should services, adddtional funds from creditwill : mean:anmct ....

R_ral: Per: : : ..........fomlali:Ceifidicators and Con:<:;:, : suinption :Pattems'_ d0ne by: i

: .....

:

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Bah,_.an examines the fro-m::::: m_d a_i:_::::: ii iii culturalgfo@fl_Hei0i_kSi*_t0 :i : i ttmme_ani{msbywhich ag_ :: ricultural: devel0 : c.ha!igestt_6e:conomic_a of thevarioUs:groUpsofpopu_ : : la:ti6k _:irm:al areas:: i : ......

...... .... ...........

of:: ::

ability to stock_pm_d offer ...... more ".... Varieties: ofgoods will expand theia'm_ke_ oppormnities. : ..... i

:

:i

:: i: : I:Wlii*etl_:eimp:ortm_C_of _'edit is emphasized, the role of market opportunities should al,,<_ _ given focus.The study noted: that RNEs with better access tom_ketoppor _ tunities are likely to be more productive than others with less. Dispersion of infrastruc-: ture to the rural areas where


DEVEL()PMENTRESEARCHNEWS

11

July- August1993

RNEs operate will not only help decongest the urban areas but will also provide better opportunities in terms of better access to markets and facilities. To maximize the opportunities that RNEs have opened up, government can provide assistance by solving the problems of financial constraints, low market demand and lack of access to primary markets due to poor infrastructure. CARP's Land Distribution to Take 40 years?

r_C_NOLOO'_

The study "DAR, Land ReformRelated Agendes and the CARP: A Study tare while farmers in Regions V and VI of Government and Alternative Aphad 1.59and 1.70 hectares, respectively, proaches to Land Acquisition and Distri ........ bution - An Analytical Framework and Budget Allocation Components Some Preliminary Findings" done by Dr. for Land Acquisition and Dl_rlbutlon Lourdes Adriano of the University of the Philippines at Los Ba_os discusses the The studynotes thattheaverage various approaches employed by the farm sizes in these three regions fall begovernment in land acquisition and dislow the targetted threehectaressetbyRA tribution. The study looked into the per6657. Most of the farmer-beneficiaries formance of land reform-related agenreceived emancipation patents, cies at the municipal, provincial and nationallevels focusing on Regions I, IV, V For land acquisition and distriand VI. bution, the budget allotment was growing at an average of 41.4 percent per From the period 1988-1992, Re- annumfrom1988to1992forRegionIand gion I has the smallest area (127,000 has) 27.2 percent per annum for Region V. targetted for CARP while Regions V and VI have the largest (750,000 and 612,000 Actual expenses by the regional has, respectively). However, in terms of offices of the Department of Agrarian area distributed, Region I has been more Reform (DAR) in Regions I and V coinsuccessful (63,373 has) than the other two prised mainly of personnel services, regions (56,000 and 58,000 has, respecmaintenance and operating costs, rent tively). This means that Region I has " and capital outlay. Annual total expendiaccomplished roughly 50 percent of its tures per hectare varied, from P 3,615 in target area scope while Regions V and VI 1991 to P 14,615 in 1992 for Region I and have accomplished merely 7.5 percent P 3,048 in 1988 to P 8,905 in 1991 for and 9.5 percent, respectively, during the Region V. Region I was more cost effisame period implying that under the cient in terms of total expenditures per presentpace, these two regionswiU take farmer, about 40 and 50 years respectively, to accomplish their target scope. Rural Workers Shifting to Nonfarrn Activities? Among various land types, rice and corn lands have the largest area distributed. They also have the highest area distribution accomplishment at 153 percent. Mostofthefarmer-beneficiariesgot rice and corn lands. The average area for farmers in Region I was less than a hec-

There is a need to look more closely into the capability of rural nonfarm enterprises to offer higher in comes and more employment opportunities,

This is one of the important implications of Ma. Teresa Sanchez's "A Study on Rural Labor Market Linkages and Nonfarm Activities: Preliminary Resuits." Covering the provinces of Iloilo, Negros Occidental, Cebu and Bohol, the study aims to determine the role of rural labor markets in the development process as rural nonfarm enterprises grow. The study also examined the links between the farm and the rural nonfarm sectors, and the factors that make people" decide.whether to do farm or nonfarm work. That an increasing number of rural workers are shifting to nonfarm activities was another important observation of the study. Sanchez notes that increased poverty, low labor absorption in the agricultural sector and overall unemployment are causing the shift from rural labor to nonfarm activities. RNEs low Productivity However, another observation is that rural nonfarm enterprises have low productivity. The study therefore suggests that efforts should be exerted to determine the extent to which these enterprises can grow through linkages. The study argues that if the government considers employment as the main policy objective, then promotion rural nonfarm enterprises must be optireal. Hence, rural development policies should address the needs of the local nonfarm enterprises. To page14

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DEVELOPMENTRESEARCHNEWS

12

July- Au, ust 1993

A Lookat China'sInvestment Perks An investment expert recommends formula for wooing investors

ixteen years after it opened up its economy to the rest of the world, China has set an impressive record of investment that today, it is considered a model that the Philippines can studyforits own investment program. China's investors enjoy investment perks, something that the Philippines has tOlearn from, despite China's being long known as a government that is more bureaucratic than the Philippine set up. So how was it done? Augusto de Leon, former President of RFM Corporation and of Marina Properties, Inc., explained before an audience of planners and policyimplementors how China wooed its investors during the Pulong Saliksikan sa PIDS, a regular discussion forum of the Institute, held in Makati on June 10,1993. Wooing Investors According to De Leon, part of China's investment-inducing scheme is ,to identify some prominent nationals of Chineseextracfionsaround theworld and woo them into visiting their ancestral lands. From there, generous incentives are offered to them as prospective investors,

assured of lesser extra-legal obstructions (e.g., simpler processing procedures) in their business transactions. This ease in investinginChinaisnotonlythenational government's initiative. The local level officials are also credited for cooperating with investors and contributing to the nation's overall positive investment di_ mate. De Leon also compared China's investment climate with that of the Philippines, illustrating how some of Filipinos'wayofthinkinghad caused delaysin the entry of foreign investments, One of the issues raised is when Filipino decisionmakers fail to come up with a collective decision. Prolonged debates sometimes fail to lead to a resolution. These, De Leon said, can frustrate and eventually drive awayinvestors. Ideally, guidelines should be concurred upon and drawn up before investors come in.

The speakeralso commented on other government investment programs

areas for the

r,ro,.osea A y

teryearsofbeingunderstateown-

multi-polar approach of A 1 -ueve,ot, mem:t O

De Leon noted that markets develop when two or more linked areas have a combined population of one million people. Among his proposed alternative multi-polar systems that satisfy this pre-requisite are: Lucena-San PabloBatangas; Laoag-Aparri; GeneralSantosDavao; and iligan-Cagayan de Oro. Developing an area, he said, starts by identifying regional industrial centers and growth corridors, refocusing resources to these priority areas and proriding them with the needed infrastructure.

The MuffbPolar Approach

One of these incentives is the huge discount on land. Af-

ership, land has been opened to foreign investors for lease and/ or sale. This new tack stems from the Chinese's confidence that the investorswilleventuaUydevelop

such as the industrial estates. De Leon proposed a shift from the enclave-type of development to the multi-polar approach, amethodthatcallsfortheformation of new markets and a linking of populations across agricultural areas through additional infrastructure. The aim is to cut down travel lime between two areas at a maximum of one-and-ahalf hours.

_

O T

Also, despiteChina'sbureaucratic nature, investors are

rrA_

This suggestion frastructure

Lucena-San Pablo-Batangas

theleasedland aswellas offer the peoplein that area some employment opportunities.

The recommendation also implies that half-baked infrastructure programs which were left unfinished because they are considered "rr_nor" projects should finally be completed.

{

in in-

programs can also

be applied to alarger context. De Leon underscores the need to attend to the "smaller problems" or "broken parts" that have remainedunaddressedtothisday.

O

"rarr" General Santos-Davao

Onlywhen these smallproblems are solved, he said, will the government'smacropoliciesbemost

O

Iligan-Cagayan

effective. (SADT)

de

Oro


privileged

and:

...........

:: ......

which in turn; contributesto: ........ price_ To control specula_ :: ....... ....... .. : tive:mvestments:matotten' ........ .... : .... :: ....: gove_ent :hOUSing:programs; a town: : planet mv01ved in tlrban development

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:::: ::: spoke,,on the she!tear:situation,_

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His:presentati0n was based : I71,1300 may::posslbty be:ejected or fh_d Land, lncomes, Mobilit Y and their houseS demolished .... Metro Manila and i ii: : 9erhewrote :: Uni-to :thegovernment must .... of Michigan ....... not only meet the L_n'owingdemand for

partly:0n: : :: yersity

i993 in : about ,'eloca ting _'esiden ts, legalizhag thee audience:: of: toga plamaers_ econo-: 140:Mc_e:Ye_:s? ...... .... tenure of households and decongesting :: mists and urban deVelopmentimpl:emenL: i : ii : i housing units with more than onehouse:: tots;: :: Houslngand hold; ............. ...... : :i : :i i: : i Urban_velopmentCoordinatingCoun.... :: :: : : :: : i.... :: Btuntadvotatesanincreasedrate:: cil:: (HUDCC)estimates that around : TheRamosadmi,_istrati0nplmas in reai i:: 636,000 (3Z2%)households in the Na-annual 40,000 additional _aaits in its properties:_dimproved,,, collecfi0n rates: :::ti0i_al:Capital Region (NCR) have vul:il housing program. But given the enortO stem spe_lations:on land prices,: ......: ii nerable tenurial arrangemenfs. Of these, mity of the housing backlog, Bkmt esfi _ ........ .................. ...... : ......... mates that it will take more than 40 years before all the relocati0n and tenureship problem can be accommodated. ::

: ..... The:: high land makes owning a housing unit an unreachable dream of the poor. In the'Philippines, land constitutes an atypical 50 percent of â&#x20AC;˘- which, when effectively acimh_istered, _n bring down fl_e price of land - has .......... :flaws inits system such that it fails to dissuade those who have the capital from further investing on land properties. Such weakne&s remains flaemain cause of the present land price disto:rtibn.

:

..... Toward this :end, Blunt suggested that the country's urban land re.; form should also include a study on how middle-dass investors can make _afer

::

and more productive :alternative forms of investments other l_u_nland. He also recommended a review of land use plans to ascertain that they reflect present and future demands on land, (5 AD"._")

ii

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PHILIPPINE SYSTEMOFNATIONAL ACCOUNTS

Revisingfor Relevance andAccuracy ince the 1950s, statisticaldata in the Philippine System of National Accounts (PSNA) havebeenprovidingplanners and decisionmakers with bases for their policy decisions. In recent years, how-

allprogram of revision ofitsmethodologiesand concepts.

ever, manyeconomiceventshaveeffected complexities in various transactions in the economy. For instance, the second oil shock and the government's takeover of nonperforming business corporations in the 1970s contributed to thegoVernment's expanded participation in the economy,

the latest benchmark tables based on the revised PSNA, during a seminar discussion jointly sponsored with the PIDS.

Changes such as this have to be interpreted correctly in the national aco counts entries if they are to accurately provide the foundation for planners' decisions. Thus, the National Statistical Coordination Board undertook an over-

On June 25, the NSCB and the National Statistical Office presented the 1988 input-output accounts,

During the seminar discussion attended by representatives from various government line agencies, private institutions and Congress, NSCB Secretary-GeneralRomuloA.Virolaexplained that the gathering aimed to solicit suggestions on how to further improve the input-outputaccountsaswellastointroduce its uses.

(From page 11)

per's preliminary results find this ironic situationwhenexaminingthedesignand provisions of CARP.

If properly planned, rural nonfarm enterprises such as cottage and small-scale industries, can also grow and contribute to ruralindustrialization. This is because rural nonfarm activities are observed tobedynamicandcanrespond to changing economic environment and opportunities. Hence, programs to gen-

The CARP, which is primarily envisioned to accomplish equity objectives through land distribution, alsoaims to address effidencyissues by increasing farmproductivity. In essence, CARPprovided a new structure of property rights among landowners, tenants, hired laborers and landless workers through transfers of ownership from one party to another. However, thelaw which should

Findings of DRD-PhaseI1,,.

erateruralemploymentmustfocusonits impact on hired labor and on productivity enhancement, i ,,,, , CARP'S Impac] _on Crops A number of restrictions inherent in the Comprehensive Agrarian Reform Law limits the program from accomplishing the very purpose for which the law was enacted, Dr. Piedad S. Geron of the National Economic and Development Authority (NEDA) studies "The Impact of CARP on the Crop Sector" and her pa-

makethisprogrameffectiveimposedcertainprohibitionslimitingpropertyrights of the landowner. For example, thestudynotes that the clause on non-transferability of ownership for a period of 10 years and nonenforceability(confiscation oflandin case of defaults on land amortization) may prevent the agrarian reform beneficiaries' (ARBs) access to formal finandal credit.In short, a farmer-beneficiary cannot borrow money from banks or any formalinstitution to finance his farming activiLiesbecauseofthisprovision. Banks refusetoacceptemancipationpatentsand ii =l|=lull

LI

They had to revise the accounts, induding concepts and methodologies, to reflect the real tramsactions made by the Philippine economy. In the past decades, there had been events unique in the country that necessitated the revision. One of these events is the take-over of the government of the non-productive institutions in the 1970s. As a coherent frameworkforrecording and presenting economic transactionsin the country, the PNSA (Philippine System of National Accounts) has provided planners and decisionmakers with vital information (for national developmen0 forwhich to base theirpolicy decisions. With the revisions made, taking into consideration the developments earlier mentioned, the accounts hope to be even more relevant and useful. (SADT)

certificates of land ownership awards as collateral on loans since these are not considered negotiable instruments. This prohibition also prevents sales or mortgage of the land which result in credit rationing among banks. This also leaves the Land Bank of the Philippines, having been mandated by law to provide credit to the ARBs, as the only credit facility where they can avail of loans. While this set-up seems convenient at the moment, the study notes that the question of sustainability st_IIremains an issue. Unproductive

Arrangements

Similarly, limitations on contract choices which the landlord and the tenant can enter into is not at all productive as shown by the low levels of production among ARBs. The low level of input application particularly in coconut farms also supports this claim. Dr. Geron strongly recommends further examination of the provisions and restrictions of the law to weed out those which limits CARP'seffectivity.Shesuggeststhatother forms of contract may be studied and considered to enhance effectivity of the CARP. 0t|q

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DEVELOPMENTRESEARCHNEWS

15

July- August1993

II II IIII

CARP as Threat to Cattle Industry Respondentsto thestudy"CARP and Agriculture: Adjustments in the PastureLeases" donebyAchillesC.Costales see the Comprehensive Agrarian Reform Program (CARP) as a threat to the cattle industry. CARP, they contend, encourages illegal encroachment into the pasture leases by speculating parties and is seen to aggravate the peace and order situation. The provinces covered by the studywereBukidnon, MasbateandSouth Cotabato. In his paper, Dr. Costales seeks toverifywhetheruncertaintiesattributed to the CARP and the peace and order situation axe significant to pasture lease holders. He also seeks to determine how pasture lease holders had been adjusting to such uncertainties and what adjustment mechanisms they employed, Proliminaryfindingsofthestudy reveal three major worries among par,ture lease holders. They are: the CARP, contending claims to the pasture lease, and the peace and order situation. About 44 percent are declared to be affected by contending claims to the pasture lease, mostlyby squatters inside the lease. The problem on peace and order, brought aboutby squatting issues and cattlerustiers, is evident in the deployment of

Enhancingthe Use............. (From page 9)

security teams by almost two-thirds of the leaseholders. Adjustment mechanisms employed by pasture leaseholders are the installation of their own security force (from hired hands also doubling up as farmhands), among others. Adverse

Effects of CARP

CARP has been found to have adverse effects in the access to formal credit by the aquaculture sector. This is thefindingofthestudyon"TheImpactof Agrarian Reform on Credit Markets in the Aquaculture Sector" by Gilberto IAanto and Maxife Magno.

EDITOR'SNOTE (From page 1) of national accounts was revised to reflect issues and realities of the times. The findings of the Dynamics of Rural Development-Phase II Project share important observations on rural poverty estimates, productivity, cattle industry, nonfarm enterprises, the CARP's land distribution, and CARP's impact on crops. Finally, the government's quest for a leaner bureaucracy is underscored by the frenzied search for the right formulatoanefficientandeffectivegovernance.AnaccountofthisDBMJedstudy is found in this issue..'_,

ment towar_ds decentralization has also resulted in an increasing number of research institutions focusing their stu dies on local autonomy and devolution issues.

Areas of Research Other Recommendations Through the years, most of the institutions studied have built a strong capability in doing studies on agriculture-relatedaspects, agrarian reform and rural development. This comes as no surprise since majority of the funding assistance for research which came from international agencies were channelled into these areas. However, in later years, certain research institutions shifted to areas relating to human resource development. The recent thrust of the govern-

Thestudylikewisepresentsother recommmendations, among which are: Speak their (policymakers) language. Thisisabasicingredientofgetting through to policymakers, something that research institutions must take to heart, This entails repackaging or popularization of the institutions' research results, However, in view of the lament of many research institutions on the lack of man-

Aquaculture lands have been considered by banks as undesirable collateral. Aquaculture operations require high investment costs and profits are maximized atland areaslarger than the CARP's limit of five hectares. While banks prefer large areas, they are afraid toprovidecreditforpondimprovements and expansions due to the uncertainties brought about by CARP. Although rural banks and Land Bank field offices accept aquaculture lands as coUaterai, the loan value has been limited to five hectares. This situation is disadvantageous for small operators with no other collaterals to offer. Hence, small fishpond operators turn to informal credit to finance their production. Unfortunately, informal credit cannot sustain the credit needs of aquaculture production. The adverse effects of CARP slow down the growth of the aquaculture industry. While removing the uncertainties due to CARP can make aquaculture landsacceptableascollateral, still, CARP's limitation on the size of lands seems to put to question the viability of fishpond operati9ns. It was observed that maximizing land use requires access to adequate credit for higher investments to improve the fishponds' carrying capacityand to ensure access to a steady supply of quality fries and fingerlings. _,

power equipped with this type of skills, the study suggests exploring with communica tion schools thepossibility of their putting up special non-degree and short programs for practitionersin government wishing to hone their communication abilities. Likewise, specialarrangements between communication departments and other school departments like economics, demography, sdence, health, etc. may be tapped wherein specially-designed courses in these fields may be incorporated in the program. As such, familiarity with a specific subject matter combined with a confidence in writing and communicating messages may be developed. _ To page 16


Philippine Institute for Development Studies NEOAsa MakatiBuilding 106AmorsoloStreet,LegasplVillage 1229Makatl,MetroManila,Philippines

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Enhancingthe Use... (From page 15)

.:. o:o .:.

Edltorlal Board

DEVELOPMENT RESEARCH NEWS is a hi-monthly publication of the PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS). It highlights the findings and recommendations of PIDS

utilize the output. A collaborative or participatory research ensures that one's client is involved all the way: from the concep tualiza tion of the program to identification of needs and gaps to actual

Or PoncianoS. Intal,Jr. Presk_nt

research projects and important policy issues discussed during PIDS seminars.

Dr.Made8. Lamberle _'_e-Prss/_nt

research work to the analysis of results. Advantages could be tremendous, attested by institutions who have usedasthis

Ms JenniferP.T.Liguton DirectorforResearchInfocma_on

PIDS is a nonstock, nonprofit government research institution engaged in longterm, policy-oriented research. This publication is part of the Institute's program to disseminate information to promote the use

tack. For one, working with policymakers' staff and trusted aides ena-

MrM_o C. Feranil D/rectorforResearch

blesresearchinstitutionstogetfirsthand views and perceptions of what they (policymakers) requixe in their work. Later on, such working association could very well serve to assist in the advocacy task as the staff and aides could become

Mr.IsaacS. PunsIII Direc_forOl_rationsandRnance

Vol. XINo. 4 Collaborate. The studynotesthat this is a practical approach for getting one's intended client (policymakers) to

July-August 993

Mr Cre_oncioR.Jovellanoe oirecm_Mana_r In_rne_on (onleave)

the direct conduits for the policy studies s_aight into the drawing boards of the policymakers. There is perhaps no better way than this approach to ensure that the fruits of research are directly inputted into the decisionmaking process.

^,y. R0queA.8_r=o L6ga/Counss/

How progressed Policymakers

Comon P. Dosuas_o lssueEditor

Jennifo¢P.T.Ligul0n Editor-in-Chief

much has policy research in the Philippines? today have reason to be

pleased,knowing that yearsback,there were

staff

not as many

experts

and

institu-

tionsas thereare todaythatcanbetapped into the difficult

and

expensive task of

Ma Lourdos M.Salcedo,AnneO.Llamoso, Suw AnnD.TaparanandLezylB.Pesos Con¢_ E_o_ VaJsntlnaV.T01onti_andAnneP. Cloofas

policy research..:.

Ex_ae

_Notallthe31institutionsmaybeconsidered as doin s purely Many of them studies, baseline as long

as said

policy

studi_

in the real

sense

of the

word.

NedtaZ.Aquiao,D_ia $.Romaro, GoJican0A,Gode_andFeOmcoD. Ulzame C/rcu/aUoaand 8uba_oa

also conduct a combination of feasibility eau diee, applied r_-s_mrch, eee. HoWever, for institutions

alao do studies

with

satb_ttantial

policyimplicati°meither f°rnati°nal°rregi°nalconaidera" fish, the authorincludedthemin thelist. _

.

ADDamoGo Lay-sOl _ D_l_gn

of research findings. The views and opinions published here are those of the authors and do not necessarily reflect those of the Institute. Inquiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as suggestions or comments on the publication are welcome. Please address all related inquiries to:

correspcuadcnce and.

Research Information Staff Philippine InstituteforIMvclopmcntStudies Room 304. NEDA sa Mai_ti Building. 106 AmorsoloStreet,Legaspi Village 1229 Makati, Metro Manila,Philipp/n¢= Telephone Numbers 884059 and 865705 T¢lefax Number (632) 8161091 Re-entered asSecondclassmail at the Makati Central Post Office on April 27, 1987. Annual subscription rates are: P90.00 for private f'mns and individuals; PS0.00 for students, libraries, academic and research institutions; and US$16.00 for foreign subscribcrs. All rates are inclusive of mailing and handling costs. Prices may change without

prior notice.

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