PUMP PRIMING LOCAL DEVELOPMENT

I had mixed feelings when I learned that most of the local government units (LGUs) in both the provincial and municipal levels are not complying with the law that requires them to establish Local Development Councils (LDCs) that are supposed to advice them on the distribution of the Internal Revenue Allotments (IRAs) that are allotted to them by the national government. On one hand, I felt sad that local development planning is not being done properly, but on the other hand I felt glad that there is such a law that provides for this much needed democratic participation.

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To my surprise as well, I also found out that the Local Government Code (LGC) provides for two seats in the municipal and city councils so that the marginalized sectors could be represented. These are appointive councilor positions that are similar to those given to the youth representatives. Among those qualified to be appointed to these positions are those coming from marginalized farmers, people with disabilities and senior citizens.

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It is very clear that the intention of the IRA and LGC laws is to make local development planning as democratic and as equitable as possible. Since this provision for sectoral representation is already in the laws, what is needed now is an advocacy to implement these laws, considering that enforcing the “rule of law” is supposed to be a critical element in a vibrant democracy.

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Also according to the IRA guidelines (actually part of the General Appropriations Act or GAA), 20% of the funds given to the LGUs should be allotted for economic development purposes, part of which should be for livelihood or job creation initiatives. It is worthwhile to note here that many LGUs have actually done this, even without an LDC organized in their areas. On the other hand, we could only say that the LGUs that do not have LGCs are probably just appropriating (or misappropriating) the funds on their own.

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In theory, all of the IRA funds as well as the Countryside Development Funds (CDF) as the name implies are actually intended for local development purposes, but their utilization is subject to the determination of local priorities, hence the need for consultation with all the concerned local sectors. In practice, the LDCs (where they exist) always have representatives from the youth sector, from the business sector and from the women sector, among others.

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While the GAA is very specific about sectoral representation in the allocation of the local development funds, there seems to be no clear cut rules when it comes to the allocation of the CDF. From what we could observe, it seems that the congressmen are left on their own to decide how to use the money and where, and they are not even required to consult with the concerned sectors in their jurisdictions. This is true for district congressmen, but what is ironic is that the sectoral congressmen are apparently not consulting their own sectors also in the use of their CDFs.

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It may sound like wishful thinking, but I think that it would be a good idea to integrate the planning and allocation of the IRA and CDF funds, so that the appreciation of priorities could be combined. Admittedly, the level of priorities would vary from one district to another, but generally speaking, the more urgent needs are in the areas of education, health, infrastructure and livelihood.

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It’s welcome news that the government has again promised to “pump prime” the economy by investing in local development, but before going ahead with these new plans, it would be prudent on the part of our officials to revisit the way the IRA and CDF funds are being utilized now, because in truth, these two funds were also intended to “pump prime” the local economies.

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Using my radio program as a platform for development, I am now calling on my listeners to support their LDCs where they exist, and to be active in organizing new LDCs where there are none. Through this blog, I am also calling on my readers to do the same. Instead of complaining that the government is not doing anything, we should all do something by getting involved in the LDCs.

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The LDC is actually the lowest component of a nationwide planning network that also includes Provincial Development Councils (PDCs) and Regional Development Councils (RDCs). From the level of RDCs, planning inputs are supposed to go up to the national level through the National Economic Development Authority (NEDA) but right now the connection seems to be very weak. While it is true that the government is now going through a fiscal crisis, it does not mean that it has run out of money to fund local development. Money is available, but the planning has to be transparent.