Governance and Development Module 2

REPUBLIC OF THE PHILIPPINES
NORTHERN NEGROS STATE COLLEGE OF SCIENCE AND

TECHNOLOGY
OLD SAGAY, SAGAY CITY, NEGROS OCCIDENTAL
(034)722-4169/www.nonescost.edu.com
COLLEGE OF
BUSINESS AND
MANAGEMENT
GOVERNANCE
and
DEVELOPMENT
1 Semester; A.Y. 2022 – 2023
st
COURSE FACILITATOR: KATHY S. CINCO, LPT, MPA

FB/MESSENGER: Maam Kaye
Email: Kathy.cinco1209@gmail.com
2
Phone No: 09466290909/09279418632
This document is a property of NONESCOST

MODULE
Module 1 | Page 1
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VISION
Northern Negros State College of Science and technology envisions a skillful and
productive manpower, qualified and competent professionals endowed with leadership qualities,
commitment to public service, a common shared values, and capacities to integrate and use
new knowledge and skills in various vocations and professions to meet the challenges of the
new millennium.
MISSION
To train and develop semi-skilled manpower, middle level professionals and competent
and qualified leaders in the various professions responsive to the needs and requirements of
the service areas providing appropriate and relevant curricular programs and offerings, research
projects and entrepreneurial activities, extension services and develop progressive leadership
to effect socio-economic change and thereby improve the quality of life.
INSTITUTIONAL OUTCOMES
1. Demonstrate logical thinking, critical judgment and independent decision-making on any

confronting situations
2. Demonstrate necessary knowledge, skills and desirable attitudes expected of one’s
educational level and field of discipline
3. Exhibit necessary knowledge, skills and desirable attitudes in research
4. Exhibit proactive and collaborative attributes in diverse fields
5. Manifest abilities and willingness to work well with others either in the practice of one’s
profession or community involvement without compromising legal and ethical
responsibilities and accountabilities.
This document is a property of NONESCOST Module 1 | Page 2

PROGRAM LEARNING OUTCOMES
BPA Program Outcomes:
The program shall produce a graduate who can:

a. articulate and discuss the latest developments in the specific field of practice;
b. effectively communicate orally and in writing using both English and Filipino;
c. work effectively and independently in multi-disciplinary and multi-cultural teams;
d. act in recognition of professional, social and ethical responsibility;
e. preserve and promote “Filipino historical and cultural heritage”;
f. demonstrate corporate citizenship and social responsibility;
g. exercise high personal moral and ethical standards;
h. apply information and communication technology (ICT) skills as required for Public
Administration;
i. employ adequate knowledge and understanding of fundamentals of good governance;
j. demonstrate high appreciation for the demands and challenges of public service;
k. develop ethical values for public service, accountability, nationalism and sustainability;
l. exhibit strong sense of duty to promote and protect public interest especially for the
depressed and the marginalized communities;
m. apply adequate skills in management including planning, implementation, monitoring and
human, material and resource management for government and civil society
organizations; and
n. apply adequate ability to engage in scientific research and national decision-making.
NONESCOST BPA Program Outcomes:

The program shall produce a graduate who can:
1. conceptualize, utilize and commercialize administrative and management research
outputs;
2. apply current and relevant practices and trends in the public sector; and
3. assess and address issues of the community in the field of public administration and
management.

Warm greetings!
Welcome to the second semester of School Year 2020-2021! Welcome to the College of
Arts and Sciences and welcome to NONESCOST!
Despite of all the happenings around us, there is still so much to be thankful for and one
of these is the opportunity to continue learning.
You are right now browsing your course module in GE103, The Contemporary World. As
you read on, you will have an overview of the course, the content, requirements and
other related information regarding the course. The module is made up of 3 lessons.
Each lesson has seven parts:
INTRODUCTION- Overview of the lesson
LEARNING OUTCOMES- Lesson objectives for you to ponder on
MOTIVATION- Fuels you to go on
PRESENTATION- A smooth transition to the lesson
TEACHING POINTS- Collection of ideas that you must discover
LEARNING ACTIVITIES – To measure your learnings in the lesson where you wandered
ASSESSMENT – To test your understanding in the lesson you discovered

Please read your modules and learn the concepts by heart. It would help you prepare to
be effective and efficient professional in your respective fields. You can explore more of
the concepts by reading the references and the supplementary readings.
I encourage you to get in touch with me in case you may encounter problems while
studying your modules. Keep a constant and open communication. Use your real names
in your FB accounts or messenger so I can recognize you based on the list of officially
enrolled students in the course. I would be very glad to assist you in your journey.
Furthermore, I would also suggest that you build a workgroup among your classmates.
Participate actively in our discussion board or online discussion if possible and submit
your outputs/requirements on time. You may submit them online through email and
messenger. You can also submit hard copies. Place them in short size bond paper inside
a short plastic envelop with your names and submit them in designated pick-up areas.
I hope that you will find this course interesting and fun. I hope to know more of your
experiences, insights, challenges and difficulties in learning as we go along this course. I
am very positive that we will successfully meet the objectives of the course.
May you continue to find inspiration to become a great professional. Keep safe and God
bless!
Course Outline in PA 104 – Governance and Development

Course
PA 104
Number
Course Title Governance and Development
The course covers the social and economic context of governance and
development. It includes the analysis of the nature, and scope and relevance
of the Millennium Development Goals (MDGs) as a benchmark for evaluating
Course
social development. It analyses the importance of the Rights Based Approach
Description
(RBA) in the context of the MDGs, promotion of good governance through
transparency and accountability against corruption, people participation and
empowerment through partnerships, decentralization and local autonomy.
No. of Units 3 units
Pre-requisites None
1. Discuss the meaning, nature and dynamism of governance;
2. Identify the key actors in governance and their roles in promoting
development;
3. Describe the main features and characteristics of good governance;
4. Identify and discuss the factors and processes that affect and influence
governance;
Course
5. Identify and explain the significance of the MDGs in defining good
Intended
governance and development;
Learning
Outcomes 6. Explain the rationale of the Rights Based Approach as a framework in
attaining the MDGs;
7. Apply skills in fostering productive partnerships with the academe,
community, and the LGU’s by utilizing the Town and Gown Approach through
Service-Learning that would enhance a two-way process of providing a
service and at the same time creating an avenue for learning.
MODULE 2
LESSON 4
A. Factors/Processes Pushing for Governance
B. Key Issues in Governance
C. The Role of Institutions and Organization
LESSON 5
Content A. Theories on Development
Coverage
B. Development Assistance in the Philippines: Debt and Structural
Adjustments
LESSON 6
A. Millennium Development Goals and Social Development
B. The United Nations Millennium Declaration
C. The Millennium Development Goals and Its Target
References SUPPLEMENTARY READINGS:

REFERENCES:
1. Asian Development Bank, (2005), Governance: Sound Development
Management.
2. Asian Development Bank (2005), Country Governance Assessment.
3. Associations of Schools of Public Administration in the Philippines, (2004).
Proceedings of the National Conference on Public Administration and the
Millennium Development Goals: Challenges and Reforms for Effective
Teaching and Capacity Building for Service Delivery.
4. Ewalt, Jo Ann G. (2001). Theories of Governance & New Public
Management: Links to Understanding Welfare Policy Implementation. A
Second Draft. A Paper Presented at the Annual Conference of the American
Society for Public Administration.
5. Laura Edgar, et al (2006) Partnerships: Putting Good Governance Principles
in Practice. Institute on Governance (IOG)
6. Legaspi, Perla E. (2005). Overview of Governance Framework. A Working
Draft on a Handbook on LGU-SPA Partnership; UP NCPAG.
7. Ma. Oliva Z. Domingo, Third Sector Governance: Meanings, Issues, and
Challenges in the Philippines, National College of Public Administration and
Governance, University of the Philippines.
8. United Nations Development Program & Economic & Social Commission for
Asia & the Pacific, (2003) Promoting the Millennium Development Goals in
Asia and the Pacific: Meeting the Challenges of Poverty Reduction; New York
9. Vlassis, Dimitri (2006) United Nations Convention against Corruption, United
Nations Office on Drugs and Crime Division for Treaty Affair. A Paper
Presented During the Trainors’ Training on UNCAC at the University of the
Philippines, National College of Public Administration & Governance.
TEXTBOOK:
OTHER REFERENCES:
ONLINE REFERENCES:

1. Active class participation (online discussion board, FB Closed group
account)
Course
2. Submit all activities required
Requirements
3. Quizzes
4. Final Output
Prepared by: JAY-R C. BUTNANDE, MPA
Adopted by: KATHY S. CINCO, LPT, MPA
Reviewed and Approved by:
Subject Area Coordinator: ERNALYN M. AURETA, MPA
Dean, CBM : RICHEL P. ALOB, Ph. D.
GAD Director : MARY ANN T. ARCEŇO, LPT, Ph. D.
CIMD, Chairperson : MA. JANET S. GEROSO, LPT, Ph. D.
QA Director : DONNA FE V. TOLEDO, LPT, Ed. D.
VP- Academic Affairs : SAMSON M. LAUSA, Ph. D.

LESSON
FACTORS/PROCESSES PUSHING FOR
4 GOVERNANCE, KEY ISSUES IN

GOVERNANCE AND THE ROLE OF
INSTITUTIONS AND ORGANIZATION
5
HOURS
MODULE 2
Chaotic situations make us uncomfortable. They involve the unknown; they can be
dangerous; only the naïve, the idealistic, and the inexperienced believe all experiences and
experiments have a happy ending. We all want to be in an ordered society. Therefore,
embracing chaos requires conscious shift in our relationship to instability. Embracing chaos
does not mean abandonment to a willingness to support and promote all unknown factors or
reckless conditions.
“Under certain conditions, when a system is far from the equilibrium, creative
individuals can have an enormous impact, “says Margaret Wheatley. The initiatives, the
projects of creative individuals, in chaotic circumstances, have the leveraged effect in
bringing forth the emerging social era.
At the end of the lesson, the learners should be able to:
1.) Describe the processes/factors pushing for governance and the capacities needed for good
governance;
2.) Highlight some of the key issues facing policy makers as they seek to advance the growth
and adoption of good governance in their domestic environment;
3.) Identify the key issues and questions where collaboration and cooperation are needed;
4.) Cite the different problems, challenges and issues encountered by the different actors in
governance e.g the issue on corruption and the efforts to fight it at the supranational level.
5.) Discuss the trends, efforts and challenges for good governance; and
6.) Identify the lessons learned and recommend solutions to realize good governance.

We cannot be mere consumers of good governance; we must be participants; we must
be co-creators. – Rohini Nelikani
Answer the question below: for 20 pts.

 How can you contribute in the attainment of good governance in your
community?
FACTORS/PROCESSES PUSHING FOR GOVERNANCE
The International Monetary Fund (IMF) identified several factors/processes pushing for
governance, good governance, in particular. These are:
 the quest for growth and development

 the environmental movement
 globalization
 consolidation
The Quest for Growth & Development
This is the key factor pushing for governance. Since the Industrial Revolution, the market had
the principal role in growth, with the state needed only to nurture the climate that would allow it
to grow. However, the quarter century after World War II swung the pendulum to the state. In
the West, John Maynard Keynes gave theoretical justification for the state to manipulate price
signals and fight unemployment and business downswings. Meanwhile, the socialist states
installed and consolidated central planning systems.
In the Third World, the state also reigned supreme as the principal planner, energizer, promoter
and director of the accelerated development effort” (Lewis, 1964:26). In the attempt to assume a
central role in planning for the whole economy and society but also to create its own
enterprises. However, at its best, the state had to saddle these economic institutions with social
functions, making it difficult to compete on equal terms in the economy. At the extreme, elite
control of the enterprises or of the state itself made them subject to rent seeking and corruption,
leading to losses that were shouldered not by those responsible for them, but all taxpayers in a
country. In many states where the taxation system was regressive, the losses were borne
primarily by the poor.
Thus, a quarter century of the interventionist’s state saw a widespread dissatisfaction about it
from all fronts. In the First World, the trigger was the burgeoning welfare bill, in the Second
World, the failure of state planning symbolized by the collapse of the Soviet Union, and in the
Third World, the inability of states, even when achieving some economic prosperity, to check
growth of inequality and poverty in their territories. Governmental rent seeking, inefficiency and
corruption led the demands for privatization, which pushed the state away from its central role.
However, the private sector by itself could not consider the distributional questions that led to
the rethinking of development as economic growth in the first place.
The inability of economic gains to produce acceptable levels or redistribution, poverty reduction
and political freedoms woke up civil society. But they could criticize government and set up
alternative delivery systems but could not provide nationwide coverage. Similarly, they decried
the private sweatshops but could not set up the industries to take their place. Clearly, no one
sector could manage society by itself but each had a role to play in making it move forward.
The Environmental Movement
The concept of development has changed from the exclusive focus on economic growth of the
1950s to the inclusion of distributional goals like the reduction of poverty and inequality during
the UN Development Decades, to the current battle cry for “sustainable human development”.
Although SHD as a term is espoused primarily by the United Nations, its incorporation of
concerns for people and nature not only for the present but also for later generations is now
widely accepted by state, market and civil society worldwide. People- centeredness as an
aspect of development recognized that growth alone may affect human lives adversely.
Therefore the concern for people must be central and not just be a by-product or a trickling
down of economic achievement. The incorporation of nature into the equation owes much to the
environmental movement which brought home the point that everyone is indeed only one
planet, and the depletion of resources in one area is felt in a real way in all areas. There is no
dichotomy between people and nature, however, because the preservation of the environment
is itself a pledge to care for generations of people yet unborn who must also be allowed to enjoy
and care for the bio- diversity, beauty and wealth of the planet as a proper habitat for all
creation.
The environmental movement has provided to governance an urgency to deal with issues in a
holistic manner, to include not only the sector at hand and the obvious stakeholders, but also
other affected by them in other areas and in future times 8. It has forced a redefinition of the
public interest with nature itself as a recognized stakeholder. It has pressured private firms to
consider ecological effects of their products-even goods as useful and popular as cars have
come under close scrutiny for their lead emissions, for their greedy use of non-replaceable
fuels, for the noise and traffic they cause that debase the quality of these aspects, and firms
both for profit and non-profit to race for alternative, ecologically acceptable solutions. The state
has also been pressed to consider new regulatory laws and deregulation of the economy. If
nothing else, the ecological movement has underscored the point that no one sector can
manage the demands of society- and the environment- all by itself.
Globalization
The global context*
The transformation from command to market-oriented economies, the emergence of democratic

political regimes in the former Soviet Union, the rapid development and global proliferation of
new technologies, the pervasive spread of telecommunications systems, the growing
importance of knowledge-based industries and skills and the continuing integration of the world
economy through trade and investment - all these have created the foundation for a new age of
sustainable human development. But all carry risks as well. Is it to be a breakthrough or a
breakdown?
Changes in the world's economic, political and social systems have indeed brought
unprecedented improvements in human living conditions in both developed and developing
countries. Consider the profound breakthroughs in communications, transport, agriculture,
medicine, genetic engineering, computerization, environmentally friendly energy systems,
political structures, peace settlements. The list goes on.
But these changes also bring new uncertainties and challenges as the world steps into the 21st
century. Signs of breakdown are everywhere: disintegration of families; destruction of
indigenous societies; degradation and annihilation of plant and animal life; pollution of rivers,
oceans and the atmosphere; crime, alienation and substance abuse; higher unemployment; and
a widening gap in incomes and capabilities. Not a pretty picture.
The trend towards globalization deserves special attention. It is manifest in the growth of
regional blocs that cooperate in such areas as trade and legal frameworks, in the power of
intergovernmental bodies such as the World Trade Organization and in the spread of
transnational corporations. Globalization has profound implications for governance the final
impact of which we cannot yet determine. First is the increasing marginalization of certain
population groups. Those who do not have access to the technological/information revolution
are in danger of becoming part of a structural underclass. Second is the erosion of state
sovereignty as transnational bodies increasingly mediate national concerns and press for
universal laws. Third is the increased globalization of social and economic problems, such as
crime, narcotics, infectious diseases and the migration of labour. Finally, international capital
and trade are decreasingly accountable to sovereign states.
Governance can no longer be considered a closed system. The state's task is to find a balance
between taking advantage of globalization and providing a secure and stable social and
economic domestic environment, particularly for the most vulnerable. Globalization is also
placing governments under greater scrutiny, leading to improved state conduct and more
responsible economic policies.
Because each domain of governance - state, private sector, civil society - has strengths and
weaknesses, the pursuit of good governance requires greater interaction among the three to
define the right balance among them for sustainable people- centered development. Given that
change is continuous, the ability for the three domains to continuously interact and adjust must
be built-in, thus allowing for long-term stability. UNDP's Initiatives for Change recognizes that
the relationships among government, civil society and the private sector:
..are key determinants in whether a nation is able to create and sustain equitable
opportunities for all of its people. If a government does not function efficiently and
effectively, scarce resources will be wasted. If it does not have legitimacy in the eyes of
the people, it will not be able to achieve its goals or theirs. If it is unable to build national
consensus around these objectives, no external assistance can help bring them about. If
it is unable to foster a strong social fabric, the society risks disintegration and chaos.
Equally important, if people are not empowered to take responsibility for their own
development within an enabling framework provided by government, development will
not be sustainable.
Developing countries must ensure that everyone can participate in economic and social
development and take advantage of globalization. They must build a political system that
encourages government, political, business and civic leaders to articulate and pursue objectives
that are centered around people and a system that promotes public consensus on these
objectives.
The term "globalization" has acquired considerable emotive force. Some view it as a process
that is beneficial—a key to future world economic development—and also inevitable and
irreversible. Others regard it with hostility, even fear, believing that it increases inequality within
and between nations, threatens employment and living standards and thwarts social progress.
This brief offers an overview of some aspects of globalization and aims to identify ways in which
countries can tap the gains of this process, while remaining realistic about its potential and its
risks.
Globalization offers extensive opportunities for truly worldwide development but it is not
progressing evenly. Some countries are becoming integrated into the global economy more
quickly than others. Countries that have been able to integrate are seeing faster growth and
reduced poverty. Outward-oriented policies brought dynamism and greater prosperity to much
of East Asia, transforming it from one of the poorest areas of the world 40 years ago. And as
living standards rose, it became possible to make progress on democracy and economic issues
such as the environment and work standards.
Undersecretary Luis C. Liwanag of DBM highlighted that one of the greatest challenges that is
confronted in any development efforts today is globalization 9. Globalization has been criticized
for having a lopsided inclination towards rich and developed countries. It has also been said that
globalization impinges on nation-states sovereignty and territory since the dominant players
weaken the power and influence of individual nation-states, particularly the Third World
Countries and those that are not linked to the regional trading blocs. With globalization, we are
bounded by foreign economic policies and by agreements between member nations.
Economic "globalization" is a historical process, the result of human innovation and

technological progress. It refers to the increasing integration of economies around the world,
particularly through trade and financial flows. The term sometimes also refers to the movement
of people (labor) and knowledge (technology) across international borders. There are also
broader cultural, political and environmental dimensions of globalization that are not covered
here.
At its most basic, there is nothing mysterious about globalization. The term has come into
common usage since the 1980s, reflecting technological advances that have made it easier and
quicker to complete international transactions—both trade and financial flows. It refers to an
extension beyond national borders of the same market forces that have operated for centuries
at all levels of human economic activity—village markets, urban industries, or financial centers.
Markets promote efficiency through competition and the division of labor—the specialization that
allows people and economies to focus on what they do best. Global markets offer greater
opportunity for people to tap into more and larger markets around the world. It means that they
can have access to more capital flows, technology, cheaper imports, and larger export markets.
But markets do not necessarily ensure that the benefits of increased efficiency are shared by
all. Countries must be prepared to embrace the policies needed, and in the case of the poorest
countries may need the support of the international community as they do so.
As globalization has progressed, living conditions (particularly when measured by broader

indicators of well being) have improved significantly in virtually all countries.
However, the strongest gains have been made by the advanced countries and only some of the
developing countries.
That the income gap between high-income and low-income countries has grown wider is a
matter for concern. And the number of the world’s citizens in abject poverty is deeply disturbing.
But it is wrong to jump to the conclusion that globalization has caused the divergence, or that
nothing can be done to improve the situation. To the contrary: low-income countries have not
been able to integrate with the global economy as quickly as others, partly because of their
chosen policies and partly because of factors outside their control. No country, least of all the
poorest, can afford to remain isolated from the world economy. Every country should seek to
reduce poverty. The international community should endeavor—by strengthening the
international financial system, through trade, and through aid—to help the poorest countries

integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to
ensure all people in all countries have access to the benefits of globalization.
Consolidating Peace
Another force pressing for governance is the need to consolidate peace in war- torn nations.
This issue is rarely recognized as among the processes pushing for governance. However, this
unique perspective was brought to the force dramatically by Hage Geingob, Prime Minister of
Namibia, in his remarks to the World Cog. Countries that have undergone a civil war, secession
movements or the creation of a new state out of the break-up of national territories have a
specially strong imperative to get everyone involved in the process of building a nation or
affecting a national reconciliation. In these situations, the coming together of the state, market
and civil society to manage societal affairs is not more rhetoric but a national urgency. It
requires bringing together former adversaries beyond the discussion table to the fields of
service in the cities and farms including those which were battlegrounds. This is not only a
lesson learned in Namibia.
In a recent study in Mali, Uganda, Thailand, Guatemala and the Philippines, as countries
emerging from internal conflict, all found governance particularly, decentralizing governance-
was necessary to make concrete the commitments of all protagonists for peace. It entailed
capacity building not only for state agencies in dealing with former rebels, but also leadership
and political skills training for those former combatants so that they may take up social
responsibilities side by side with their military and civilian counterparts.
It required the private sector to regard them with new eyes, as potential producers and
consumers and therefore part of the market also (UNDP, 2000:25-34) They were
acknowledged as members of civil society even as other organizations of that sector also
recognized their role in affecting changes in governance for all and not only for former
adversaries. As Prime Minister Geingob stated, the tasks of nation building must be seen by all
as their responsibility and the resulting peace and development their common ownership.
KEY ISSUES and CHALLENGES IN GOVERNANCE

The Philippine Experience
1. Policy Issues, Concerns, and Challenges
Most people agree that the constitutional and legal frameworks in the Philippines provide the
foundations for good governance. The policy environment allows people’s participation and
public scrutiny and criticism of government operations and outputs. Further, the country has
adequate laws, rules, and regulations to establish order and move forward. While
underdevelopment can easily be attributed to a lack of institutional capacity and professional
competencies to implement policies and enforce laws, certain lessons learned and issues
related to public policy making deserve mention. The Philippine public policy-making process
bears the following features: (i) policy decisions and programs are arrived at through
institutional mechanisms provided for in the Constitution of the Republic of the Philippines and
other laws; (ii) policy-making process is then characterized as precedent bound, based on laws
and forged by such structures as a bicameral legislative body and the executive branch of the
Government; (iii) legislative branch is composed of the Senate and the House of
Representatives, while the president heads the executive branch of the Government and is the
prime initiator and implementer of policies and programs; and (iv) the decisions of the legislative

and executive branches are subject to judicial review by the Supreme Court and inferior courts
on questions of constitutionality and statutory construction.
Different sets of forces each influence the different stages of public policy making, namely,
decisions on (i) including items in the agenda, (ii) developing any particular agenda item, (iii)
passing legislation, and (iv) implementing new laws. Different constituencies exert their
influences at different stages of policy development and execution. Many policies have
nonetheless missed out in giving importance to meaningful public consultations, constructive
debate and criticism, and needed consensus building and development of a sense of ownership
of different stakeholders. Without these elements, and with extensive graft and corruption in the
country (which undermines and subverts the rule of law), many policies fail to command respect
and compliance.
It should also be made clear that policy initiatives for governance reforms could be undertaken
by the Government even without legislation. In these cases, one might consider whether
legislation is useful or not. The value of legislation is that it binds public institutions to certain
decreed directions. If one wants to assure the future sustenance of any initiative currently
carried out by the Government, legislation may be considered. However, the Government tends
to be too legalistic and rule bound in addressing most of its problems.
Legislation is complicated, not under the complete control of any person or group, and may
have unpredictable results. Embarking on a campaign to get something legislated cannot be a
decision taken lightly or casually. In addition, successful legislation generally occurs when the
problems deemed important meet the solutions deemed highly probable by political
personalities or groups in positions of power. Problems, policies, and politicians have to
intersect for proper action to occur.
Legislation as an instrument for achieving desirable societal goals and institutionalizing reforms
is advisable when the underlying assumptions of policies have any or all of the following
characteristics:
 policies can only be optimally effective when adopted by the whole Government and
supported by stakeholders;
 policies can yield best results only when implemented over the life of several
administrations;
 policies can be accomplished only with adequate and judicious use of resources;
 policies can be accomplished by the Government’s applying cost-effective measures and
using available technology and resources;
 policies, when deliberated and agreed, would create a framework for many people and
groups to assume broader responsibilities on an institutional basis.
A policy needs to be very clear and specific about the:
 nature and magnitude of the problem being addressed;

 basic mechanism for responding to the problem;
 standards and provisions for making the mechanism work;
 system of responsibilities and accountabilities for coordination, implementation, control,
and review of results; and
 organizational and budgetary implications.
 These elements are often deficient in many public policies. It is common to have layers of
rules and regulations to clarify policy provisions, not to mention sets of procedures to
inform and guide implementers and stakeholders.
Some policy initiatives may not be ready to be pursued because the data and analysis
necessary to make a decision may be unavailable. In these cases, research is probably more
appropriate than formulating a new policy or draft legislation. Some policies are haphazardly
and hastily developed and scarcely take into account deliberate and careful planning and
effective use of objective and accurate information. Public policy making in the Philippines
boldly underscores the need to improve its capacities in undertaking knowledge-based policy
analysis and development.
Access to timely and correct information about public policies also precludes overall efficiency,
effectiveness, and productivity. Those who are affected may sometimes be unaware of or
improperly informed about their rights, duties, and responsibilities provided for in relevant
policies.
2. Problems in the Bureaucracy
Bureaucracy is a distinctive arrangement used by human beings to organize their activities. The
invention of Western bureaucracy several centuries ago helped solve the problem for leaders of
governing human systems that grew larger and more complicated with each passing year. The
great virtue and probably defining characteristic of bureaucracy, according to the one of the
founders of sociology, German Max Weber (1864-1920), is as “an institutional method for
applying general rules to specific cases, thereby making the actions of government fair and
predictable” However, in the governance process, there are two problems in a bureaucratic type
of government: inefficiency and arbitrariness.
For nearly half a century, the Philippines was caught in an endless cycle of reform exercises
that hardly produced tangible and lasting results. Structural issues— such as (i) duplicated
functions and overlapped jurisdictions, (ii) outdated and slow government procedures, (iii)
various loopholes in administrative procedures, and (iv) limited capacity for policy analysis and
strategic long-range planning that caused delays and higher costs in handling business—made
maintaining objectivity, accountability, and transparency in decision making and government
operations difficult and gave rise to a host of other problems, including poor implementation and
coordination. (ADB, 2005).
As reflected in the Country Governance Assessment, (2004) Administrative reform efforts in the
Philippines did not fully succeed because of the following:
1. lack of acceptance of and commitment to the need for reform by political authorities and
different affected entities;
2. lack of stakeholder appreciation and agreement concerning administrative reform being a
long, strategic, and continuous process;
3. lack of understanding that reform objectives are specific, measurable, realistic, and time
bound;
4. lack of good reform implementation strategies and adequate resources to carry them out;
5. lack of an established central agency tasked with formulating, coordinating, and
monitoring reforms and providing corrective measures;
6. lack of reform procedures and regulations that are fairly and consistently applied;
7. lack of meaningful stakeholder participation in the entire reform process;
8. lack of strong and sustained support of political leaders;
9. lack of an established and enforced system of accountabilities; and
10. lack of safety nets for groups and individuals who may be disenfranchised by
interventions.

In the Common country Assessment of the Philippines (2004), an inefficient bureaucracy is one
of the major problems and an area for development cooperation 11. Past Philippine
administrations have carried out reorganization and reengineering schemes for the
bureaucracy, in an effort to improve efficiency and reduce corruption. Studies about Philippine
civil service system point to several deficiencies include:
1. Weak mechanisms for planning, agenda setting and policy-making;

2. Failure to implement and maintain an appropriate performance management and
measurement system;
3. Overlapping and duplicating government functions and activities;
4. Overemphasis on rules and procedures rather than direct resource management towards
the realization of intended outcomes and impacts;
5. A highly politicized bureaucracy
6. Lack of required managerial and technical expertise
2.1 Corruption
Corruption damages the development process in many ways. It undermines social confidence in
the willingness and capacity of public institutions to fulfill their obligations to the people and it
reinforces existing power relationships that are themselves typically part of the development
problem. Losses due to corruption deepen poverty as they deprive the disadvantaged sectors of
much needed programs and environmental stewardship. Incidences of bribery and graft are
often front-page news, leading the public to perceive them as the norm rather than the
exception in government transactions, further reducing the incentive or willingness to increase
taxpayer compliance.
The Government has recently introduced affirmative actions toward addressing this problem
such as the passage of the Procurement Act, the implementation of lifestyle checks among
government officials, and the reactivation of the Inter-Agency Anti-Corruption Committee
(IAGCC) to synchronize the various anti-corruption initiatives of the national government.
Despite these efforts, large scale and petty corruption is pervasive throughout various levels of
the Philippine government. The draft report of the “Consultations on the UN Conference on
Financing for Development cited that out of a total national budget of Php 781 billion in 2001,
PhP100 billion, or 13% was at risk of being lost to corruption; 70% involved in public works
contracts while 30% involved the purchase of supplies and equipment. The Office of the
Ombudsman estimated that a total of USD48 billion was lost to graft and corruption over the
past 20 years, and that only 60% of the national budget was actually spent on government
programs and projects.
Numerous laws addressing graft and corruption exist in the Philippines, and this date back to
1955. At present, the main references are the Revised Penal Code of 1960, referred to as the
Anti-Graft and Corrupt Practices Act, and Article XI of the 1987 Constitution of the Republic of
the Philippines. Box 1 presents a summary list of related laws, presidential decrees and
proclamations, and other regulations on corruption prevention.
3. Issue on Public Fiscal Management
Another issue on good governance is on public fiscal management. Prior to government reform
programs, there were weaknesses and constraints in fiscal management, especially in the
budgeting process. Some of these constraints are still lingering.

Recognizing the impact that the fiscal condition has on macroeconomic stability, the
government should continue to give priority to raising revenues and improving the efficiency of
the bureaucracy so that more and better-quality public service can be delivered.
Following the onset of the Asian financial crisis, the Philippines government’s deficit
deteriorated quickly, mainly due to slippages in revenue collection. The major causes of the
decline include the following:
1. Tax evasion and weakness in the tax structure.

2. The private corporate and banking sectors which are major contributors to the national
coffers were weighed down by nonperforming assets.
3. Deficiencies in the Political and Electoral System
Public confidence in election outcomes is low because of widely alleged irregularities in the
Philippine electoral processes. The modernization of the electoral system in the country today is
an attempt to enhance public confidence in election outcomes and address traditional election
anomalies such as cheating, intimidation and bribery. The government has initiated concrete
efforts to institutionalize electoral reforms through the passage of laws on Election
Modernization (see appendix for the full text of the Election Modernization Act or RA 8436),
Party-List System and the Absentee Voting for Overseas Filipinos13. A democratic and effective
political and electoral system is important to ensure that a development agenda, primarily
addressing the needs of poor and disadvantaged, is promoted and sustained beyond
administrations. Civil society organizations are currently working with their government
counterparts of pending reform bills in Congress that also seek to address issues on political
dynasties, the continued practice of party turn-coatism and the diminution of the electoral
process into mere contests of personalities.

Answer the following questions. 20 points each.
The students are going to critique and analyze the different issues in governance
1. Aside from what is discussed, what do you think are other issues and challenges
confronting governance? Why do you think these issues occur?
2. What can you suggest to further improve the performance of government in a

governance process?
The students’ output will be assessed in terms of the following criteria:
Rubrics:
Ideas and Content 5 pts
Creativity 5 pts
Organization 5 pts
Use of term 5 pts
Total 20 pts

LESSO
N
THE DEFINITION OF
5 DEVELOPMENT: ITS NATURE

AND SCOPE
6
HOURS
With the advent of globalization, new opportunities for countries around the world have emerged
through economic liberalization, foreign investment and capital flows, technological change, and
information flows. However, rapid globalization has not led to equitable benefits for millions
around the world.
1. Describe the nature and evolution of the definition of development;

2. Trace the early concepts, theories, and beliefs of how academic proponents define
development and explain the significance of how these ideas have influenced people and
nations in the present day;
3. Describe and trace the nature of economic and social development in the Philippines;
and,
4. Describe and evaluate the effectiveness of development assistance in the Philippines.
Think about this:
The growth and development of people is the highest calling of leadership. – Harvey S.
Firestone
Do you agree with this quote? If yes, why? If No, Why Not?
While the reasons for unbalanced distribution of the gains of globalization vary from region to
region and from one country to another, one factor is constant ---- state capacity is a necessary
condition to make use of opportunities provided by globalization, promote human rights, human
security, and to protect and promote the interests of vulnerable groups in the society.
The commitment to achieve the Millennium Development Goals has gathered the largest
number of heads of state to do all they can to eradicate poverty, promote human dignity and
equality, and achieve peace, democracy, and environmental sustainability.
THE DEFINITION OF DEVELOPMENT: ITS NATURE AND SCOPE
What is Development?
Development can be considered either as a process of improvement with respect to a set

of values or, when comparing the relative levels of development of different countries, as a
comparative state of being with respect to such values. The values in question relate to desired
conditions in society.
Since 1990, the United Nations has sponsored a series of global conferences that
resulted in the adoption of a comprehensive social development agenda. The 1995 World
Summit on Social development (WSSD) embraced three core objectives, namely: poverty
alleviation, expansion of productive employment, and social integration. Eleven major social
concerns and 53 key indicators sustained these core objectives. In September 2000, the
Millennium Summit of 190 countries, including the Philippines, adopted the Millennium
Development Goals (MDGs) which endeavored to capture the
most important points that were expressed in the previous world conferences. The summit
identified eight goals and 14 key targets to be achieved by 2015.
Prior to the MDGs, there existed broad concepts on the eradication of poverty, reduction
of unemployment and economic inequality as provided by measuring tools such as the Human
Development Index (HDI) of UNDP. The difference with the MDGs is that there is now a
universal agreement about what these desired conditions should be that is specific and time-
bound. Through their political manifestation nations express views about the desired state of
society that may change through time, adding to the complexity of looking at development.
Therefore, based on that premise, the relative level of a country’s development refers to
normative concepts whose definition and measurement depend upon the value judgments of
the analysts involved. With the universal acceptance of the MDGs as a normative framework for
development, nations now share a common set of values to base their judgments about
development.

Theories of Development
The most important justification for reviewing theories of development and criticisms
about them is the insight it provides into the nature and dimensions of the development process.
When particular theories are expressed or adopted, it is because it was felt that they addressed
themselves to some crucial variables and relationships in the development process, in a way,
helping either to comprehend the process or to formulate policies to initiate the process.
Subsequently, as these theories have been found insufficient, it is because their

simplifying assumptions do not fit the environment they are being applied to. Eventually, it is
realized that the theory thought to be the chrysalis of development proved to have ignored
factors found to be of significant importance especially for developing countries. By examining
both the content and some alleged pitfalls of the theories, we gain an understanding of what
development is really all about.
David Ricardo, Principles of Political Economy and Taxation (1817)1, presented several
theories based on his studies of the long-range distribution of wealth. He feared increasing
population would lead to a shortage of productive land; his theory of rent is based on relative
land productivity. He supported the classical theory of international trade, emphasizing national
specialization and freedom of competition. His labor theory of value states that wages are
determined by the price of food, which in turn is determined by the cost of production, itself
determined by the amount of labor required to produce the food; in other words, labor
determines value.
The political and economic and economic ideas of Karl Marx (1818-83) and Friedrich
Engels (1820-1895) states that society inevitably develops through class struggle from
oppression under capitalism to classlessness, is one theoretical giant that dominated global
concepts of development. Development is subject to the control of economic forces that move
all human societies along the road to socialism, through the stages of the ancient era, feudal,
and capitalism, the stage that is currently occupied by most of mankind. Society is driven by
self-interest, which is the mainspring of all human behavior regardless of motives professed
(historical materialism); classes represent the collective expression of self-interest and all
human events is nothing but class conflict that serves as a catalyst for movement through the
historical stages.
Class is determined by their role in the productive process and by the division of labor,
whose true interests are antagonistic to other classes. Each successive stage in history has a
dominant class and has also harbored the class determined to over throw it. This results in the
creation of a cyclical dialectic in which the thesis creates the antithesis.
However, we cannot deny that this essentialist view of class is not immune from
ideological criticism. John Tosh describes this flaw as:
The biggest weakness of Marxist theory is that it does not recognize the strength of
associations, which men and women enter into for reasons, which have nothing to do
with production. Identification by religion, race, or nationality has been at least as
important over the long term as identification by class. These loyalties cannot simply
be dismissed as ‘false consciousnesses’ promoted by the ruling class to blind the
lower orders to their real condition of exploitation; it is more likely they satisfy a
fundamental human need.
It is in this concept that Marx eradicated the ‘humanity’ in his presumptions and attributed
all causes and results to the class struggles through time is shortsighted since to attribute all
explanation of historical change to economic and material forces may be viewed short of ‘total
history’. The main criticism towards this approach is the limitation of looking at development
from the economic perspective.
According to Adam Smith in his work The Wealth of Nations (1776), capital is best
employed for the production and distribution of wealth under conditions of governmental non-
interference, or laissez-faire, and free trade. In Smith's view, the production and exchange of
goods can be stimulated, and a consequent rise in the general standard of living attained, only
through the efficient operations of private industrial and commercial entrepreneurs acting with a
minimum of regulation and control by governments. To explain this concept of government
maintaining a laissez-faire attitude toward commercial endeavors, Smith proclaimed the
principle of the “invisible hand”: Every individual, in pursuing his or her own good is led, as if by
an invisible hand (the free market economy) to achieve the best good for all. Therefore, any
interference with free competition by government is almost certain to be injurious.
Although this view has undergone considerable modification by economists in the light of
historical developments since Smith's time, many sections of The Wealth of Nations, notably
those relating to the sources of income and the nature of capital, have continued to form the
basis for theoretical study in the field of political economy. The Wealth of Nations has also
served, perhaps more than any other single work in its field, as a guide to the formulation of
governmental economic policies.
After the Second World War, having achieved superpower status, the United States
could no longer maintain its isolationist stand and not engage itself in the global arena. As
European empires were dissolved, newly independent nations emerged and sought to identify
policies that would lead them from poverty and misery to development and prosperity. With the
intention of promoting development and discouraging new states from adopting Communism,
policy-makers and social scientists of the “west” devoted serious attention to the questions of
development. The result was modernization analysis, which became especially popular in
American academic circles during the 1950s and 1960s, wielding extensive influence in a wide
array of academic disciplines.
These theorists concentrated on the “stages of economic growth” which looked at

economic development as a series of stages through which all countries undergo, with the right
combination of investment, foreign aid, and saving. One of the most prominent works to lend
definition to the modernization school was W.W. Rostow’s essay, The Stages of Economic
Growth: A Non-Communist Manifesto, first published in 1960. His analysis states that
development from a traditional to a modern industrial society of high mass consumption was
basically an economic affair. He called the crucial stage in this development the “take off,” which
elevates a situation into self-sustained economic growth. The take-off would result from high
levels of productive investment, amounting to 10 percent of national income. Given such
investment, any society may experience the take-off and develop a flourishing industrial
economy usually associated with Western nations or the First World.
The modernization analyses concentrated on themes that are absolutely crucial in the
effort to understand western society in the aspects of urbanization, industrialization, science,
technology, communications, mass education, and the like.
They succeeded especially well in analyzing developments within a society such as

capital investment, the building of transportation and communications infrastructure, the
development of work ethic, and the organization of mass public education that all worked
together to bring about modernization or development. This ideology then fostered the thought
that the road to development for all nations was possible if the “western” non-communist
formula of modernization was to be adopted.
However, the modernization school faced challenges by the 1970s, which questioned the
rationality of the western model of democracy that claimed a guarantee to progress and
prosperity. This occurred when insurgency and revolution ravaged the Third World that
disenchanted many, where people began to question the Eurocentric assumptions that the
Western peoples have found the road to development (modernity), and all should follow. The
situation was further aggravated by unpopular policies that were imposed on former European
and American colonies by their former occupants. This led to the rise of the “structural-
internationalists.”
The new approach examines the occurrence of underdevelopment as influenced by

international and domestic power relationship, institutional and structural economic rigidities,
and the resulting propagation of dual economies and societies (as dictated by political and
economic ideologies adopted by nations). The eradication of poverty, provision of diversified
employment opportunities, and the reduction of income inequalities are the main focus that
attributes underdevelopment to the unequal international capitalist system. The coexistence of
poor and rich nations results in an inequitable power relationship that makes development effort
by the poorer nations difficult, and even impossible.
In 1979, the Nobel Prize for economics was awarded to T.W. Schultz 6 whose major
contribution to development economics was to show that the behavior of people in developing
countries is, like the people in the developed countries, that of homo economicus, reacting to
incentives and opportunities. He stressed on the importance of investing in human capital (skills
and knowledge) to increase productivity (especially agriculture) and entrepreneurship.
In 1993, another Nobel laureate, R.W. Fogel, emphasized the importance of “people
development” in another way. Taking a historical view, he underscored the importance of the
contribution of technological change to physiological improvements. He concluded that the
“techno-physio” evolution (as he termed it) accounted for about half of British economic growth
over the past two centuries. He stated: “Much of this gain was due to the improvement in human
thermodynamic efficiency.” The rate of converting human energy into work output appears to
have increased by about 50 percent since 1790. He was also one of the few economists who
recognized the importance of long-term health effects from deprivation during early childhood.
A. Sen, who received the Nobel Prize in 1998, also recognized the central role of
investing in people. The resulting higher income, from higher productivity, reduced poverty and
increased economic well-being. However, he also underscored better health, higher education
levels, and improved nutrition as separate goals which, in addition to higher income, represent
non- monetary aspects of the quality of life (human development) that are valuable in
themselves. He extended his concept by emphasizing that individual freedom was the ultimate
goal of economic life. He defined freedom as freedom from hunger, disease, ignorance, all
forms of deprivation, poverty, as well as political and economic freedom and civil rights.
Since then, the concept of development has considerably changed from the restricted
focal point on the economic facet, to include the political and social aspect in which
development is not just measured by economic benchmarks, such as GNP and GDP, but by
looking into the redistribution of wealth and income, the poverty line, efficiency and
effectiveness of government services, and individual well-being. With these aspects, the
concept of social development emerged, in which the term “social” referred to non-material or
less economic factors that contributed to the overall quality of life that included aspects that
were more concerned with people rather than with material things.
One conclusion emerges from the attempt to define development – and it is that as a
process it is not synonymous with economic growth. It is conceivable that, in a particular
country, the average GNP per capita might have risen, while at the same time income inequality
increased. The poor become poorer and no evident progress is seen in other development
goals. This situation can be considered as economic growth with negative development.
This understanding allows societies from various political and cultural environments to
claim to have achieved development, for as long as their policies and programs have
contributed to the betterment of people’s conditions, thus may be considered as a component of
social development.
As a result, today, the scope of social development would include the extent of
availability of basic life-sustaining goods such as food, shelter, health protection; the degree of
increase in levels of living which go beyond higher incomes since development would include
more jobs, better education and greater attention to cultural and humanistic values that
promotes individual self-esteem. The concepts now formulate the understanding of progress as
sustainable human development.
In module III, sustainable human development is measured from the earliest stages of
life by looking at the Quality-of-Life Index (QLI) which is similar to the Human Development
Index (HDI) of UNDP. The indicator measures human development by looking at the capability
to be well nourished; the capability for safe reproduction; and the capability to be educated and
be knowledgeable.
.
Furthermore, development is also viewed as the extent to which economic and social
choices of individuals and nations are provided to free themselves from servitude and
dependence in relation to other people and nation-states, as well as freedom from the forces of
ignorance and human misery.
The succeeding section discusses the nature and state of social development from a
historical perspective. The discussions pertain to the prevailing issues that have influenced the
attainment of social developmental goals in the Philippines.
TOTAL UPLIFTMENT OF PEOPLE’S LIVES = HUMAN DEVELOPMENT =

ECONOMIC DEVELOPMENT
Should we look at development this way? Why or why not?
Development in the Philippines: A Brief History
The Land Tenure System
Whenever development is discussed in the Philippine context, it is crucial to understand

the role of agriculture and its impact on the nation. Since our history is closely tied to the land,
the events that shaped how this resource has been utilized give us a foundational perspective
of our development.
As a former colony of Spain, the Philippines inherited a land tenure system that was
feudal in character. Large tracts of land were in the hands of a few, while the tillers worked the
land as sharecrop tenants. Vast landholdings were appropriated by religious
orders – the friar lands which were owned by various religious orders in the Philippines.
During the Spanish regime, the government attempted to systematize land tenure by
urging landowners to secure titles to their lands. But the system worked in reverse because it
led to land grabbing by the affluent and influential groups, and relegated small landowners to
the role of share-tenants.
During the first Philippine Republic established immediately after the Revolution of 1896,
the government headed by Gen. Emilio Aguinaldo attempted to confiscate the large estates,
especially the friar lands. Since the Republic was short-lived, the plan did
not materialize.

During the American colonial rule, the Commonwealth period, and after the proclamation
of independence, several laws were passed to regulate and improve land tenure. Unfortunately,
despite these efforts land distribution and use was still unequal due to rampant circumvention of
sharecropping regulations, failure to implement owner cultivatorship, and the failure to convert
tenants into leaseholders due to legal and procedural roadblocks by landowners and
lawmakers. Thus, as a result of the prevailing feudal system to this day, we have an economy
that has brought development only to a privileged few.
Development Strategies in the Philippines: The Nature of Debt and Structural

Adjustments and its Implications on Developmental Thrusts
Retelling the Philippine debt story allows us to have a clear picture of the nature of
“development assistance” in the Philippines through the years. It provides answers to questions
like, “Why is development slow in the Philippines?” Or, “How is it that amidst growths in GNP
and GDP a large number of the population remains poor?” To understand the importance of the
MDGs, our debt story provides for us a meaningful cause to further promote the attainment of
the MDGs. Furthermore, by understanding development strategies adopted by the Philippines,
the challenges posed to those tasked to bring about change in the quality of life of each Filipino
is deemed crucial.
Structural adjustment (SA) is the process of changing certain economic and financial
practices of a country in order to get it out of a deficit. Another aim of SA is growth for a poor
country. This process involves short-term (1-3 years) measures called stabilization primarily
aimed at reducing government expenses. SA also involves a series of steps whose aim is to
increase government earnings that take a longer period of time (4 years or longer)8. In the
Philippines, SA has been part and parcel of preconditions prior to the granting of financial
assistance from partner countries and international financial institutions. These measures
include austerity measures, liberalization, currency devaluation, tight money supply, high
interest rates for loans, and privatization.
Early SA measures in the Philippines came in the form of the Bell Trade Relations Act
that provided free trade with the United States until 1954 and was a precondition to the granting
of independence by the United States. After such, goods coming from the Philippines would be
taxed 5 percent and increased yearly until 100 percent is reached by 1974 and American goods
would come in tax-free. It also provided Parity Rights to the Americans, which allowed them to
exploit, dispose, and develop all natural resources in the country, as well as control of all public
utilities. These measures were deemed as prerequisites in the Tydings Rehabilitation Act to the
release of the amount of $620 million for a much-needed post-World War II reconstruction. On
March 17, 1947 the amendments to the Constitution were approved in order to accommodate
the provisions of the Bell Trade Act.
1960s The Philippines availed of loans through the International

Monetary Fund (IMF) to serve as stabilization loans.
1972 Then President Ferdinand E. Marcos created the National
Economic Development Authority (NEDA) with the purpose
of overhauling the economy to a labor-intensive and export-
oriented agenda of industrial development.
President Marcos took over big industries owned by the

ruling elite who opposed him, giving him control of the
economy and changing it according to his whims and
caprices.
1974 A partner lending institution of the IMF, the World Bank
(WB), determined that the measures implemented by the
Marcos government failed to boost the economy, and up
until 1979, economic growth was still not showing any
improvement.
1980 The WB offered its first Structural Adjustment Loan (SAL) in
the amount of $200 million which Marcos accepted, the
country being short of funds. The Structural Adjustment
Program (SAP) 1 was implemented for three years.
1983 The crisis brought about by the assassination of staunch
Marcos’s critic, former Senator Benigno “Ninoy” Aquino,
added to the worsening economic situation, forcing Marcos
to borrow anew $300 million, thus launching SAP 2.
1986 With Marcos finally out of power, hopes were high with
Ninoy’s widow, Cory Aquino, taking the reins as President.
Marcos and his cronies left her with a debt-ridden economy
amounting to $26 billion. Unfortunately, in a visit to the US,
President Aquino promised to pay all debts, including those
tainted with fraud, which the Filipino nation never benefited
from. Because of this honorable debtor policy, coupled with
the two SAPs, it has caused oil price hikes, freeze in the
hiring of government employees, budget cuts for
infrastructure, and anti-poor taxes.
1991-1992 The economy still in a slump, the 21st SA called Economic

Stabilization Program was implemented in the country, the
third under President Aquino that dictated the reduction of
government spending, less infrastructure, freeze in the
hiring of new government employees, lay-offs, reduction of
budgets for government agencies, and the removal of
subsidies for rice and fuel oil. The removal of subsidies for
fuel oil caused the increase in power rates.
In conclusion, the implementation of the SAPs, which were measures designed to assist
and bring about development to the country, resulted to more debts and created a situation of
perpetual dependency on lending institutions for financial aid because of dictated measures that
proved to be detrimental to development goals. The most disparaging of all measures to
address our debt problem was the prioritization of debt payments charged to the national
budget of the country. Table 1 below illustrates this dilemma.
Table 1
Sectoral Percentage Share in National Budget
% Share to Total NG Budget

PARTICULARS 1999 2000 2001 2002 2003 2004
Economic Services 24 24.5 22.1 21 20.2 18.03
Social Services 33.2 31.2 30.4 30.7 29.6 28.73
Defense 5.7 5.3 5.1 5.5 5.1 4.99
General Public Services 18.2 18 17.1 17 16.7 16.21
Net Lending 0.6 0.4 0.6 1 0.7 0.64
Debt Service 18.3 20.7 24.7 24.9 27.8 31.4
TOTAL 100 100 100 100 100 100
Source: PowerPoint Presentation of Prof. Leonor M.Briones, The MDGs: Opportunities and
Challenges for Civil Society, NCPAG, UP, Diliman. (Refer to CD Rom for full presentation,
Module II folder, Public Debt and Debt Figures)

The highest budget allocation for debt servicing was from 1980-89 when the government
declared our “honorable debtor policy” which reached an average ratio of 32.99% and continued
to remain high from 1990-1997 reaching 19.99% (World Bank, World Debt Tables, various
years, and Global Development Finance 1997 and 1998 (Vol. 2); BSP for 1997 data.). In a
report of the World Bank entitled “Filipino Report Card on Pro-Poor Services” released in 2000,
the following summary of conclusions were arrived at:
Health
 The non-poor use health facilities more than the poor due to high costs of health care.
 Public facilities are low in cost but inferior in quality.
 Primary facilities (barangay health stations) are frequently bypassed due to inferior quality of
services (facilities and personnel).
 Government hospitals require quality upgrading. The poor pay more but get less—the modest
health care spending of the poor absorbs a larger share of their income than does the health care
spending of the rich.
 Less than 1 percent of the poor are covered by insurance. Insurance coverage could lighten
medicine burden of Filipinos.
 High prices of medicines are a burden. The Philippines has the highest prices of medicines
among the ASEAN member countries.
Education
 Dropouts are mostly from poor families; 60 percent do so in Grades 4 and 5.

 Children drop out for health and economic reasons.
 Public schools are low in cost but inferior in quality.
 Public elementary education is far from free. Families spend 2 percent of total household
expenditures on each child enrolled and 1/5 of this amount goes to miscellaneous fees and
donations for the schools’ maintenance. Transportation accounts for one half of education
expenses and one-fourth for uniforms.
Water Service
 Two out of five Filipinos do not get water from formal sources. Almost 40 percent of consumers
devise their own way to secure water.
 Only one-fourth of the nation’s poor get water piped to their homes.
 Rural communities in Mindanao are underserved.
 The poor and rural households are more vulnerable to diseases like malaria, gastroenteritis,
dengue fever, and typhoid caused generally by scarce, contaminated water.
 Quality of water in rural households is considered unsafe as evidenced by spending more than
twice as much on treating water as they do in their utility bills. The poor have to allocate a larger
percentage for water than the rich, depleting their meager incomes.
 The rich are subsidized more than the poor. Piping systems get the largest subsidies and are
prevalent in the non-poor urban centers.
Housing
 Dissatisfaction with housing is widespread.

 Among expenditure groups, the poor have the lowest proportion of households owning residential
land. Land tenure is vital to housing satisfaction. This situation dampens the advantage of the
poor who can build their own houses but do not have the land to build on.
 Access to housing programs is very limited. When this survey was conducted, housing
assistance had the lowest access.
 Government housing assistance benefits those who need it least.Only 21 percent of beneficiaries
come from the poor and the rest come from the rich and middle-income households. Most of
these projects are located in the NCR urban regions.
 The poor are excluded from housing associations. The SSS, GSIS, and PAG-IBIG require a two-
year contribution period before qualifying for assistance. This practice discriminates against the
poor since only 3 percent can afford to become members because of unrealistic payment
requirements. Only 5 percent of rural applications are approved as compared to the rich that
reaches 47 percent, and 95 percent of approved applications are found in urban areas.
 Rejection by clients of housing assistance is high due to long waiting time, additional transaction
costs, and long distances to urban centers in order to pay.
Distribution of Subsidized Rice
 Availability of NFA rice is limited. NFA rice is supposed to ensure stable prices and supplies by its
presence in the market, but only 15 percent of the survey’s respondents buy NFA rice, signaling
its limited participation in the market.
 NFA rice has disproportionately reached the poor since anyone can purchase it as long as stocks
allow.
 The non-poor enjoys a bigger subsidy since middle-income and rich households purchase more
NFA rice than the poor. Worse, it is fed to domestic helpers and pets.
 NFA rice is low in cost, but inferior in quality.
 The non-poor patronizes supposed pro-poor stores more. An example of this was the ERAP
(Enhanced Retail Access for the Poor) stores which the middle-income and rich households had
 more access to due to awareness and location.
 Mindanao is excluded from a supply of NFA rice.100
So where has the development strategies driven us so far?
WAIT A MINUTE!
SINCE THE WORLD BANK ITSELF KNOWS ABOUT OUR PLIGHT, SHOULDN’T
THEY GIVE US A BREAK WITH OUR LOANS AND IMPOSITION OF STRUCTURAL
ADJUSTMENT MEASURES?
These alarming conditions show the effects of the huge allocations of debt servicing to
life-sustaining sectors of the national budget. Suggested measures to address this barrier to
genuine development are: 1) negotiate the reduction of official debts; 2) cancel fraudulent loans
and automatic appropriations in the budget; 3) reduce debt payments; 4) increase spending for
health, education, and other basic social and economic services; and, 5) reform the tax system
and make it more progressive and more efficient (Please refer to CD volume, Module II Folder,
Briones-Fiscal Crises and in the reader volume, May Pera pa ba? For further discussion issues.
In the Reader Volume, also refer to the Statistical Annex for data on socio-economic indicators.)
Human development is about people; it is about expanding their choices to live full,
creative lives with freedom and dignity. Economic growth, increased trade and investment, and
technological advancement are all-important. But they are just means, not the ends.
Fundamental to expanding human choices is building human capabilities -- the range of things
that people can be.

1. How do you evaluate development in the Philippines? Which theories do you think may
be applied to the Philippines? Explain your answer.
2. How do you define social development, sustainable development, human development

and sustainable human development?
The students’ output will be assessed in terms of the following criteria:
Rubrics:
Creativity 5 pts
Organization 5 pts
Use of term 5 pts
Total 20 pts

LESSON
6
6 THE UNITED NATIONS
MILLENNIUM DECLARATION
HOURS
With the advent of globalization, new opportunities for countries around the world have emerged
through economic liberalization, foreign investment and capital flows, technological change, and
information flows. However, rapid globalization has not led to equitable benefits for millions
around the world.
While the reasons for unbalanced distribution of the gains of globalization vary from region to
region and from one country to another, one factor is constant state
capacity is a necessary condition to make use of opportunities provided by globalization,
promote human rights, human security, and to protect and promote the interests of vulnerable
groups in the society.
The commitment to achieve the Millennium Development Goals has gathered the largest
number of heads of state to do all they can to eradicate poverty, promote human dignity and
equality, and achieve peace, democracy, and environmental sustainability.

1. Describe the nature and scope of the Millennium Declaration;
2. Identify and enumerate the eight Millennium Development Goals and understand its key
targets, and;
3. Verbalize the relevance and significance of the Millennium Declaration and the MDGs in
relation to the changing views and concepts of social development.

UN Sustainable Developmental Goal
GOAL 16: Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions at all levels.
The 2000 September Millennium Summit led to the adoption of the Millennium
Development Goals as a development benchmark for many countries. This historic landmark
led to the normative framework, the vision of shared development priorities, and specific time-
bound targets to be attained, all leading to social development aspirations of committed
countries. Since then, the MDGs have been globally accepted by developing countries, donors,
civil society, and development institutions as benchmarks of progress to meet the needs of the
poor. The Millennium Development Project has provided a practical “social development
compass” for national governments to use as guides for their programs and projects to attain
development beyond the economic sphere. The MDGs and the larger development agenda
have provided a global blueprint for cooperation at the local, national, regional, and global
levels.
The United Nations Millennium Declaration

(Excerpts from the resolution adopted by the General Assembly)
“In addition to our separate responsibilities to our individual societies, we have a

collective responsibility to uphold the principles of human dignity, equality, and equity at
the global level. As leaders we have a duty, therefore, to all the worlds’ people, especially
the most vulnerable and, in particular, the children of the world to whom the future
belongs.”
This statement was made in New York during the General Assembly meeting on
September 6-8, 2000 by the heads of states and governments that reaffirmed their faith to
seven focal commitments, namely: peace, security and disarmament, development and poverty
eradication, protecting our common environment, human rights, democracy and good
governance, and protecting the vulnerable. Synopses of the declaration’s main commitments
are described below.
I. Values and Principles

 “The challenge is to ensure that globalization becomes a positive force for the world. For
while globalization offers great opportunities, its benefits are very unevenly shared and
its costs are unevenly distributed. Only through broad and sustained efforts can it be
made fully inclusive and equitable.”
 Essential values to consider:

 Freedom. Men and women have the right to live their lives and raise their children in
dignity, free from hunger and from the fear of violence, oppression or injustice.
Democratic and participatory governance on the will of the people best assures these
rights.
 Equality. No individual and no nation must be denied the opportunity to benefit from
development. The equal rights and opportunities of women and men must be assured.
 Solidarity. Global challenges must be managed in a way that distribute the costs and
burdens fairly in accordance with basic principles of equity and social justice. Those who
suffer or who benefit least deserve help from those who benefit most.
 Tolerance. Human beings must respect one another, in all their diversity of belief, culture,
and language. Differences within and between societies should be neither feared nor
repressed, but cherished as a precious asset of humanity. A culture of peace and
dialogue among all civilizations should be actively promoted.
 Respect for Nature. Prudence must be shown in the management of all living species
and natural resources, in accordance with the precepts of sustainable development. Only
in this way can the immeasurable riches provided to us by nature be preserved and
passed on to our descendants. The current unsustainable patterns of production and
consumption must be changed in the interest of our future welfare and that of our
descendants.
 Shared Responsibility. Responsibility for managing worldwide economic and social
development, as well as threats to international peace and security, must be shared
among the nations of the world and should be exercised multilaterally. As the most
universal and most representative organization in the world, the United Nations must play
a role.
II. Peace, Security, and Disarmament

 To free peoples from the scourge of war, whether within or between states; to seek to
eliminate the dangers posed by weapons of mass destruction.
 To resolve, therefore:
 to strengthen respect for the rule of law in international as in national affairs,

in particular to ensure compliance by member states with the decisions of
the International Court of Justice and the Charter of the United Nations;
 to make the United Nations more effective in maintaining peace and security by
giving the resources and tools it needs;
 to take concerted action against international terrorism;
 to redouble efforts to counter the world drug problem;
 to intensify efforts to fight transnational crime;
 to strive for the elimination of weapons of mass destruction.
 To make arms transfer more transparent and support regional disarmament measures.
III. Development and Poverty Eradication

 To free our fellow men, women, and children from the abject and dehumanizing
conditions of extreme poverty.

 To create an environment that is conducive to development and the elimination of
poverty.
 To commit to an open, equitable, rule-based, predictable, and non- discriminatory
multilateral trading and financial system.
 To address the special needs of the least developed countries (LDCs).
 to adopt a policy of duty and quota free access for all exports from the LDCs;
 to implement the enhanced program of debt relief for the heavily indebted poor
countries;
 to grant more generous development assistance.
 To deal comprehensively and effectively with the debt problems of low and middle-
income developing countries.
 To address the special needs of Small Island and landlocked developing states.
 To resolve that, by the year 2015:
 to halve the proportion of the world’s people whose income is less than one dollar
a day and the proportion of people who suffer from hunger, and to halve the
proportion of people who are unable to reach or afford safe drinking water;
 to ensure that children everywhere will be able to complete a full course of primary
schooling, and that girls and boys will have equal access to all levels of education;
 to reduce maternal mortality by three quarters and under-five child mortality by
two-thirds of their current rates;
 to halve, halt, or reverse the spread of HIV/AIDS;
 to achieve by 2020 a significant improvement in the lives of that least 100 million
slum dwellers.
 To resolve:
 to promote gender equality and the empowerment of women as effective ways to
combat poverty, hunger and disease, and to stimulate development that is truly
sustainable;
 to develop and implement strategies that will give young people everywhere a real
chance to find decent productive work;
 to encourage the pharmaceutical industry to make essential drugs more widely
available and affordable by all;
 to develop strong partnerships with the private sector and civil society
organizations in pursuit of development and poverty eradication.
IV. Protecting our Common Environment

 To spare no effort to free all of humanity from the threat of living on a planet spoiled by
human activities and whose resources would no longer be sufficient for their needs.
 To reaffirm support for the principles of sustainable development.
 To adopt a new ethic of conservation and stewardship that will resolve:
 to intensify collective efforts for the management, conservation, and sustainable
development of all types of forests;
 to stop the unsustainable exploitation of water resources by developing water
management strategies that promote both equitable access and adequate
supplies;
 to intensify cooperation to reduce the number and effects of natural and man-
made disasters.
V. Human Rights, Democracy, and Good Governance

 To respectfully uphold the Universal Declaration of Human Rights.
 To strive for the full protection and promotion in all countries of civil, political economic,
social, and cultural rights for all.
 To strengthen the capacity of all countries to implement the principles and practices of
democracy and respect for human rights.
 To combat all forms of violence against women.
 To ensure respect and protection of the human rights of migrants, migrant workers and
their families, and to eliminate the increasing acts of racism and xenophobia.
 To work for more inclusive political processes, allowing genuine participation by all
citizens in all countries.
 To ensure the freedom of media and the right of the public to have access to information.
VI. Protecting the Vulnerable

 To ensure that the children and all civilian populations that suffer disproportionately the
consequences of natural disasters, genocide, armed conflicts, and other humanitarian
emergencies are given every assistance and protection so that they can resume a
normal life as soon as possible.
VII. Meeting the Special Needs of Africa

 To support the consolidation of democracy in Africa and assist Africans in their struggle
for lasting peace, poverty eradication, and sustainable development, thereby bringing
Africa into the mainstream of the world economy.
VIII. Strengthening the United Nations

 To make the United Nations a more effective instrument for pursuing all of these priorities: the
fight for development for all peoples of the world; the fight against poverty, ignorance, and
disease; the fight against injustice; the fight against violence, terror, and crime; and, the fight
against the degradation and destruction of our common home.
The Millenium Developmental Goals –
8 goals and 14 targets to be achieved by 2015 by 190

signatory countries
Goal 1: Eradicate extreme poverty and hunger

 Halve the proportion of people living in extreme poverty within 1990-2015.
 Halve the percentage of population below minimum level of dietary energy consumption
& halve the proportion of underweight children (under 5 years old).
Goal 2: Achieve universal primary education

 Achieve access to primary education by 2015.
Goal 3: Promote gender equality and empower women

 Eliminate gender disparity in primary & secondary education, preferably by 2005 & all
levels of education not later than 2015.
Goal 4: Reduce child mortality

 Reduce Children under five mortality rate by two thirds by 2015.
Goal 5: Improve maternal health
 Reduce maternal mortality rate by three quarters by 2015.
 Increase access to reproductive health services to 60 percent by 2005, 80 percent by
2010, and 100 percent by 2015.
Goal 6: Combat HIV/AIDS, malaria, and other diseases

 Halt/reverse the spread of HIV/AIDS by 2015.
 Halt by 2015 and begin reverse the incidence of malaria and toher major diseases.
Goal 7: Ensure environmental sustainability

 Implement national strategies for sustainable development by 2005, to reverse loss of
environment resources by 2015.
 By 2020, to achieve a significant improvement in the lives of at least 100 million slum
dwellers.
Goal 8: Develop a global partnership for development

 Develop further an open, rule-based, predictable, non- discriminatory trading and
financial system; include a commitment to good governance, development and poverty
reduction –both nationally and internationally.
 Deal comprehensively with the debt problems of developing countries through national
and international measures in order to make debts sustainable in the long run.
The MDGs as Goals and Targets to achieve Social Development
As mentioned in lesson 1, the MDGs serve as an archetype to allow development policy

makers, those tasked to implement these policies, and those who are the recipients of these
policies, to realize what real development is all about. The illustration below shows the link
between human development and the Millennium Development Goals by associating key
capabilities for human development and the essential conditions for human development to
each of the MDGs.
Thus, the MDGs, when adopted by governments as a development goal and targets, allows the
state to realize their inherent right, duty, and responsibility to comprehensive social
development since government now takes on three critical roles. Understanding these three
roles provides a way to appreciate the links between the MDG goals and the key capabilities
for human development; and essential conditions for human development. These roles
are: 1) to create an enabling environment for participating effectively in a global economy so
that all segments of the population are able to benefit from international trade and investment;
2) to focus on gender sensitive - pro-poor policies that combat poverty and enhance the
capacities of the poor to participate in productive activities; and, 3) to strengthen the capacity of
public institutions to promote socially equitable development and enhance people’s participation
in the decision-making process.
Significantly, comprehending these key capabilities and essential conditions to understand

social development also defines how the world views sustainable human development.

Essay: Explain your answer in 5 sentences or more.
1.) What is the significance of the Millennium Declaration and the MDGs to yourself and your family?
2.) How do you define social development, sustainable development, human development and
sustainable human development?
Rubrics:
Creativity 5 pts
Organization 5 pts
Use of term 5 pts
Total 20 pts


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REPUBLIC OF THE PHILIPPINES

NORTHERN NEGROS STATE COLLEGE OF SCIENCE AND

COURSE FACILITATOR: KATHY S. CINCO, LPT, MPA

This document is a property of NONESCOST

to effect socio-economic change and thereby improve the quality of life.

1. Demonstrate logical thinking, critical judgment and independent decision-making on any

This document is a property of NONESCOST Module 1 | Page 2

BPA Program Outcomes:

The program shall produce a graduate who can:

NONESCOST BPA Program Outcomes:

This document is a property of NONESCOST Module 1 | Page 3

INTRODUCTION- Overview of the lesson

LEARNING OUTCOMES- Lesson objectives for you to ponder on

MOTIVATION- Fuels you to go on

PRESENTATION- A smooth transition to the lesson

TEACHING POINTS- Collection of ideas that you must discover

ASSESSMENT – To test your understanding in the lesson you discovered

This document is a property of NONESCOST Module 1 | Page 4

Course Outline in PA 104 – Governance and Development

References SUPPLEMENTARY READINGS:

Subject Area Coordinator: ERNALYN M. AURETA, MPA

Dean, CBM : RICHEL P. ALOB, Ph. D.

GAD Director : MARY ANN T. ARCEŇO, LPT, Ph. D.

CIMD, Chairperson : MA. JANET S. GEROSO, LPT, Ph. D.

QA Director : DONNA FE V. TOLEDO, LPT, Ed. D.

VP- Academic Affairs : SAMSON M. LAUSA, Ph. D.

This document is a property of NONESCOST Module 1 | Page 7

4 GOVERNANCE, KEY ISSUES IN

At the end of the lesson, the learners should be able to:

This document is a property of NONESCOST Module 1 | Page 8

Answer the question below: for 20 pts.

FACTORS/PROCESSES PUSHING FOR GOVERNANCE

 the quest for growth and development

The Quest for Growth & Development

The Environmental Movement

The global context*

The transformation from command to market-oriented economies, the emergence of democratic

Economic "globalization" is a historical process, the result of human innovation and

As globalization has progressed, living conditions (particularly when measured by broader

This document is a property of NONESCOST Module 1 | Page 12

KEY ISSUES and CHALLENGES IN GOVERNANCE

1. Policy Issues, Concerns, and Challenges

This document is a property of NONESCOST Module 1 | Page 13

A policy needs to be very clear and specific about the:

 nature and magnitude of the problem being addressed;

2. Problems in the Bureaucracy

This document is a property of NONESCOST Module 1 | Page 15

1. Weak mechanisms for planning, agenda setting and policy-making;

3. Issue on Public Fiscal Management

This document is a property of NONESCOST Module 1 | Page 16

1. Tax evasion and weakness in the tax structure.

3. Deficiencies in the Political and Electoral System

This document is a property of NONESCOST Module 1 | Page 17

2. What can you suggest to further improve the performance of government in a

The students’ output will be assessed in terms of the following criteria:

This document is a property of NONESCOST Module 1 | Page 18

5 DEVELOPMENT: ITS NATURE

At the end of the lesson, the learners should be able to:

1. Describe the nature and evolution of the definition of development;