Policy Agenda of the PDF-WG on Decentralization and Local

Report

Theme of the 2013 Philippine Development Forum
(PDF): “President Aquino’s Social Contract: Progress
and Challenges in Achieving Inclusive Growth”

All PDF working groups (WG) were requested to draft
a 3-5 page progress report to:
◦ show the policy agenda pursued since the 2012
PDF;
◦ be used as inputs for discussing policy issues at the
cluster level (i.e. for the breakout sessions) at the
2013 PDF.

Emphasizes the role of the Filipino People as
◦ contributors to economic growth; and,
◦ the foundation of strong public institutions and
policy

To propel the Philippines to a path of inclusive
growth it is important to
◦ Invest in human capital; and,
◦ Create an environment conducive to business and
investment
Development Agenda
1. Promoting Good
Governance
2. Improve Fiscal
Autonomy for Local
Development
3. Accelerate Local
Economic and Sustainable
Development
Aspect of the Social Contract
Envisions public institutions
rebuilt on the solidarity of
Philippine Society and its
communities
Commitment to create an
environment conducive to the
growth and competitiveness of
private businesses

Promote transparency by helping the DILG
institutionalize the Full Disclosure Policy (FDP):
◦ development of an FDP Portal;
◦ capacity building of civil society organizations to utilize
the FDP reports and to engage in local special bodies;

Promote accountability through policy that links
incentives to performance such as:
◦ Seal of Good Housekeeping
◦ Performance Challenge Fund
◦ Local Government Performance Management System


Policy reforms to improve service delivery in
water and sanitation, local roads;
Reforms in local government public financial
management including efforts to integrate
participatory mechanisms in local planning
and budgeting through the Bottom-Up
Budgeting (BUB) process.

Efforts in:
◦ increasing own-source LGU revenues by
strengthening capacity for tax and revenue
administration;
◦ improved utilization of funds.

Provide technical assistance and capacity
building to national government (NG)
oversight bodies to reform sub-national fiscal
policies and systems for LGU fiscal reporting,
analysis and oversight.
Technical assistance to encourage investments has
been provided
 to streamline business registration through a scaleup of business permit and licensing systems with the
DTI and the WG on Growth and Investment Climate
(GIC);
 through capacity building for inter-local cooperation;
local investment promotion; and, disaster risk
reduction and climate change adaptation.
Development Agenda on Promoting Good Local Governance
Outcome
Meaningful
engagement of
people’s
organizations in
local governance
Major Project/Activities
Intensifying partnership with
people’s organization (POs),
CSOs and PS
More transparent
and accountable
local operations
Institutionalization of public
disclosure

Improved local
government
performance
Implementation of
Performance Challenge Fund
(PCF) and institutionalization
of incentive systems for local
governance

Strengthening LGU budget
and accountability
2010 Newly Elected Officials
Orientation Program

Improved
capacities of local
chief executives



Key Accomplishments
Strengthening the capacity of CSOs to engage
in local governance through local special
bodies, promoting volunteerism and mapping
and profiling of CSOs.
Capacity development of civil society
organizations to understand FDP Documents.
Mainstreaming LGU compliance and widening
public access to the Full Disclosure Policy
through the FDP Portal
(http:\\fdpp.dilg.gov.ph).
Improved the institutional mechanism for the
DILG to manage the PCF and providing
continuous technical assistance and
knowledge-sharing to strengthen the design
and implementation of Incentive Systems for
Local Governance and Performance.
Supported reforms in local PFM through the
Bottom-Up Budgeting process.
Conducted a series of capacity building
activities for newly-elected local chief
executives.
Development Agenda on Improving Fiscal Autonomy for Local Development
Outcome
Major Project/Activities
Key Accomplishments
Increased own- Development of local business
 Developed an operational plan and prototype
source
taxpayer database
program for a taxpayer database.
revenues
Facilitating LGU compliance on
 Implemented policy on monitoring and
More efficient
allocation of
expenditures
Improved LGU
fiscal
management
capacity
updating of Schedule of Market
Values (SMV) and collection of idle
land tax
Improving LGU utilization of funds 
Competency Certification Systems
(CCS) for local treasurers
Improving capacity of local
treasurers and assessors on
revenue generation and
management
Enhancement of local government
unit fiscal reporting system




consolidating the status of SMV revision and
idle lands inventory.
Developed and implemented policy on the
utilization of: 1) Special Education Fund; and
2) 20% Local Development Fund.
Development and implementation of
guidelines of CCS.
Capacity building of local treasurers and
assessors.
Development and roll-out of local treasurer’s
manual.
Added modules to the electronic Statement
of Revenues and Expenditures (e-SRE): 1)
fiscal capacity modelling and forecasting; 2)
financing modalities; 3) debt management;
and 4) creditworthiness and debt
certification.
Development Agenda on Accelerating Local Economic and Sustainable Development
Outcome
Streamlined
business
registration
system
Improved LGU
capacity to
encourage
investments
Disaster
resilient LGUs
and
communities
Key Accomplishments
Major Project/Activities
Up-scaling of business
permit and licensing system
(BPLS)

Completed the streamlining of BPLS for
87% of target LGUs including capacity
building for data collectors.
Encouraging investments by
supporting inter-LGU
Alliances for local economic
development

Local investment promotion

Mainstreaming disaster risk
reduction and climate
change in local governance

Capacity building and technical support
to inter-LGU alliances.
Capacity building for DILG and NGAs to
harmonize policies and coordinate
programs for Local Economic
Development.
Capacity building for Local Economic
and Investment Officers (LEIPOs) on
investment promotion and
competitiveness.
Capacity building of LGUs for climate
change adaptation and disaster risk
reduction management.


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