Análisis de la complejidad computacional

Due to the sheer size of the informal settlement communities, social and economic challenges are equally huge in scope. Unfortunately, the deteriorating urban environment has been viewed as the emerging state of affairs which impact on the bid for competitiveness, social and economic growth of urban areas. Sadly, those that are affected most by these challenges are very poor households and women. Whatever the causes of urban crumble, the economic, social, and environmental costs of informal settlements have reached a critical point.

A major challenge is how to accommodate rapidly increasing informal settler population and the swift program to facilitate improvements of their communities’ risks and vulnerabilities. Furthermore, there is strong need for an effective response to the weak and/or lack of resources for social services, employment and other income generating activities. Relentless extreme climate changes have definitely added pressure to the ISFs’ demand for essential urban basic services.

The key shelter agencies and other national agencies including the LGUs did implement programs and services in order to uplift the current conditions of informal settlements in the entire country. However, despite these provisions, the task of bridging the gap between the current situation and the desired end of having sustainable communities is still present. Some probable causes of these are perhaps due the enormity and extent of the problem, lack of funds, weak governance structure that provides a venue for a better policy dialogue, program implementation, coordination and convergence of actions among government agencies, the private sector, with a meaningful participation of the ISFs. 5.2.1 Unsustained efforts on local economic growth and job creation

NEDA midterm review of the Philippine Development Plan 2010-2016 indicated that we are on track with respect to our economic targets which indicated an increase in Gross Domestic Product (GDP) by 7-8% as well as an increase to 22% in investment ratio. Economic growth has reached an acceptable level though this has not favourably trickled down to poverty reduction. Achievement of MDG goals in the social services targets has remained a considerable challenge. NSCB quoted poverty incidence at 27.9% as of the 1st _{semester of 2012 and this figure shows that there is no statistical significance}

when compared to the 28.6% level for the period 2006-2009. Unemployment rate reached 7.0% while underemployment rate was registered at 20% for the first semester of 2012. Various studies and review on poverty situation in the country suggest that poverty in the Philippines is associated with the problem of unemployment and underemployment due to low economic growth.

POLICY IMPLICATION/S:

 Low economic growth is ascribed to low investments and slow technology development, lack of access to production growth, and the country’s capacity to mitigate ill impacts of natural disasters

Developing a National Informal Settlements Upgrading Strategy for the Philippines

Appendix 1: Comprehensive Assessment Report

July 2014

Draft Final Report

58

FINAL REPORT

58

and extreme weather disturbances that affect labor intensive sector particularly the informal settlements. Regularity of disasters can negate the gains or even push back development.

 The limited incentives for local economic development activities that are primarily intended for the ISFs need improvement. Priority attention must be geared to policy enhancement on the incentives offered to investors which are expected to open more job opportunities, as well as mobilize entrepreneurial and livelihood investments in the ISF communities.

5.2.2 Weak coordination among government agencies and private sector

The magnitude of informal settlers in the entire country had increased tremendously over the last decades after a presidential proclamation for Areas for Priority Development (APDs) were established way back in the 80’s. Few of these informal settlement sites have been upgraded under the NHA’s Zonal Improvement Program (ZIP) and the Slum Improvement and Resettlement (SIR) program that were both implemented in major urban centers in Metro Manila and in the key urban cities in the regions of Visayas and Mindanao.

NHA’s approach then to housing development was complemented with the provisions of cross subsidy scheme with commercial lots, infusion of direct funds for social services, basic utilities and services, livelihood and school facilities for the relocatees. While the mandate for the” soft programs” is the responsibility of other government agencies, the NHA was authorized to advance the investment in behalf of these agencies providing the “soft inputs” with the arrangement that they shall be reimbursed of their funds by the other government agencies including the power and water utility companies. Investments in the provision of basic social services were also implemented and funds for education and health facilities were provided for by NHA through this scheme. However, through the years, the NHA had a downgrade on its mandate which required NHA to focus its investment in the production of low cost housing primarily for the informal settlers that shall be relocated off city and or near city. Inputs for the other components were lodged with the regular agencies of government, utility companies and the host LGUs. Funds for these components were measly provided as the timing for the budget cycle has never been effectively coordinated to ensure timeliness and lead time to complete the facilities prior to the transfer of informal settlers.

POLICY IMPLICATION/S:

 While efforts of NHA to undertake preparatory work with the informal settlements were effective, many challenges were identified as in the following areas: (i) uncoordinated budget preparation and implementation schedule among key agencies mandated to provide housing and other services; (ii) unclear delineation of roles and responsibilities in terms project identification, development and construction, beneficiary selection and monitoring and sustenance of project inputs in the ISF communities; (iii) lack of intensive social dialogue among various stakeholders including the main players in the relocation/upgrading process, including that of community participation; (iv) lack of available land in the city and near city for the relocation of the informal settlers. Many more challenges were faced by the NHA with regard to the formulation of a national program to abate the constant increase of informal settlements in Metro Manila and in the urban centers in Visayas and Mindanao. This is worsened by the weak compliance of the local government to embark on the prevention mechanism to bar the continuous increase of informal settlements within their jurisdiction.

 The proliferation of informal settlements in the Metropolis is attributed to the weak compliance of the LGUs in the preparation, update, and the weak enforcement of CLUP and the CDPs. These mandatory documents are the basic guideposts of the LGUs in their bid to be the forefront of development efforts for their constituency.

Developing a National Informal Settlements Upgrading Strategy for the Philippines

Appendix 1: Comprehensive Assessment Report

July 2014

Draft Final Report

59

FINAL REPORT

59

5.2.3 Lack of targeted programs and social protection measures for ISFs

To ascertain the number of ISFs remains difficult due to the fact that there is no reliable and standard data base for the informal settlements except for the estimates submitted by the LGUs to the national agencies. It is likely difficult to allocate resources toward targeted programs for social services and social protection measures. Access to social protection in the country has limited coverage as it is implemented on a voluntary basis. Thus, the larger part of the vulnerable work force with seasonal employment belong to the ISFs.

POLICY IMPLICATION/S:

 Social protection programs for the ISFs include among others the provision of social security, health insurance and housing. Data from the Bureau of Labor and Employment Services (BLES 2009) shows that almost half of the country’s workforce belonged to the informal economy. They include, among others, micro-entrepreneurs, unpaid family workers, vendors, and domestic workers, a large majority of which are living in identified informal settlement communities.

 Unfortunately, they are beyond the coverage of the Labor Code and other legislations that make the ISFs subject of abusive and exploitative work arrangements. The absence of consistent policies to address their concerns will prevent their access to productive resources, just and humane conditions of work.

5.2.4 Limited investments in education, health and human capital

To finance higher spending on infrastructure, education, and health, complementary reforms are needed in public financial management (PFM), taxation, and statistics. Enhancing official statistics is needed to improve evidence-based policymaking. Successful reforms in public finance management requires strengthening the demand side to cause financial reforms. Accelerated participatory budgeting such as bottom-up budgeting process, (BUB) and community-driven development have been defined as the major reforms required. Successful implementation of public sector reforms would allow the country to increase public investment and pro-poor spending to create an environment that is conducive to attracting more investments and creating better jobs. This scheme will allow the public to see and evaluate them and its development impact. They shall have the opportunity to examine tangible improvements in governance. Eventually, the taxpayers will be made aware that their taxes are being spent wisely in education, health and human capital build-up for maximum benefits to redound the entire population.

POLICY IMPLICATION/S:

 Participation of private sector stakeholders such as NGOs and communities may be encouraged in the planning process. The barangays could spearhead the drafting of people’s plans and serve as a voice at the municipal council level. Utilization of resources must be well programmed and based on prioritized needs which the communities themselves have identified. Improvements in the provision of basic services will be anchored on citywide methodology to ensure that the outcome and impact will benefit not only the formal taxpayers but the ISFs in the communities, too.