State of the Philippine Population Report 2004

Urbis 5 MAKING
CITIES WORK
Population, Urbanization,
and Local Governance

Commission on Population n
Welfareville Compound
Acacia Lane
Mandaluyong City
Philippines
www.popcom.gov.ph
Tel. +63 (2) 531-6805, 531-6978

Commission on Population United Nations Population Fund

Preface Acknowledgments
R
apid urban growth, when unmanaged, strains the The following were mainly responsible for the planning, conceptualization,
capacity of local and national governments to provide coordination, and production of the SPPR 2004:
even the most basic of services such as health, food,
TECHNICAL COMMITTEE
shelter, productive employmen, and education. Mercedes B. Concepcion, Ph.D. (Chairperson), CARD
The challenge then is for the national government and Gelia T. Castillo, Ph.D., NAST
most especially the local governments to develop effective Ledivina V. Cariño, Ph.D., UP-NCPAG
policies, programs, and strategies that will help them get the Mario B. Lamberte, Ph.D., PIDS
most out of urbanization; to manage urbanization to ensure Nimfa B. Ogena, Ph.D., UPPI
Marissa C. Reyes-Camacho, PCPD
development.
Ma. Theresa M. Fernandez, UNFPA
Efforts at solving urban development problems must be Tomas M. Osias, POPCOM
guided by the fact that such problems are inextricably affected Mia C. Ventura Victoria D. Corpuz
by the population and development link, and therefore policy Lolita C. Layser Zenaida M. Opiniano
and institutional interventions that address both population Rosalinda D. Marcelino Gloria I. Mendoza
and development concerns holistically are required.
TECHNICAL WRITING TEAM
The State of the Philippine Population Report 2004
Philippine Institute for Development Studies
entitled “Urbis 5: Making Cities Work” seeks to explain this Aniceto C. Orbeta, Ph.D. (Team Leader)
relationship and recommends responsive policy interventions Rosario G. Manasan, Ph.D.
that, if implemented, would contribute to good governance Fatima E. Del Prado Ma. Luisa D. Barrios-Fabian
and the improved quality of life of Filipinos. Janet S. Cuenca John Michael Ian I. Salas
Iris L. Acejo Hope A. Gerochi
Eden C. Villanueva Glenda R. Gonzales
Maraming salamat po!
Leilanie Q. Basilio

COMMISSION ON POPULATION
Ma. Libertad M. Dometita Ralph A. Ruivivar
Moises F. Villacorta Harold Alfred P. Marshall
Tomas M. Osias Lyrah Gay Ellies S. Borja Darlyn S. Remolino
Jeremias Cabasan
Executive Director
Commission on Population POPULAR VERSION TEAM
Katherine S. Lopez Elizabeth M. Libas
Albert A. Borrero Serlie B. Jamias
George R. Reyes Tanya Mia M. Hisanan

Urbis 5 PROJECT MANAGEMENT OFFICE

Albert P. Aquino, Ph.D.
David Dereck P. Golla, VI
Atty. Nolito M. Quilang
Tanya Mia M. Hisanan
The theme of the State of the Philippine Population Report (SPPR) 2004 Luis M. Pedroso Riela A. Ramos
Ronald Allan B. Sindo Rey Dennis G. Caballero
is Urbanization, Population, and Local Governance. To highlight the
Ferdinand B. Estoesta Felix B. Agravante
importance of the theme, the SPPR titled Urbis 5: Making Cities Work,
promotes five interlocking messages on how local governance can be
PHOTO CREDITS
enhanced to manage population and urbanization. Urbis 5 represents the Department of Tourism City of Lipa
framework that was used to develop the messages and prescriptions for Benjamin S. Espartero Ariel T. Javellana
making cities succeed. Urbis is the Latin word for city, while five represents Regional Population Offices
the number of messages, elements, and goals that urban centers could aim (Regions 6, 9 and 11)
for to make cities work. The elements include a productive population,
responsive service delivery, revenue generation, investment opportunities,
and sustained productivity. These are hinged on five important and basic
needs that include food, shelter, health, education, and employment.

1 The Urban Sprawl
Bahay Kubo Country No More
E
very day, new urban dwellers
are added to the world’s
cities and urban centers,
contributing to the human
bloat of more than 3 billion in 2003.
A United Nations report says that
the dramatic growth of the global urban
population, “especially concentrated
in the less developed regions, continue
to pose formidable challenges to
individual countries as well as the world
community…”
The Philippines is an urbanizing
society. In 2000, its urban population—
the proportion of the total population
living in areas classified as urban—was
pegged at 48%—proof that the country
is more urbanized than rural or
agricultural. Urban growth was largely
attributed to the natural increase in
population in urban centers, migration
of people from rural areas, and the
reclassification of settlements from rural
to urban.
Urbis 5 Making Cities Work
This rapid urbanization has
occurred only in the last four or five
decades, when many rural dwellers
trooped to urban centers in search for
the proverbial good fortune and good
life. Indeed, as research shows, cities
provide countless opportunities for
economic development. In fact, urban
areas contribute to the growth and
expansion of the domestic economy.
Furthermore, urban areas serve
as the industrial, commercial, and
1
 Urbis 5 Making Cities Work

administrative centers in the different population problem, especially in our solve problems of local governance, The report stresses that
regions of the country. Urban centers rapidly urbanizing society, is a serious service delivery, and population urbanization creates both opportunities
represent availability and accessibility to concern that needs to be addressed management. and challenges. Opportunities include
various services and facilities. immediately if the quality of life in our Local government units should take expanding tax base and joint economies,
Often, however, urbanization is cities and towns will be improved. To on the task of managing the population accompanied by the burden of heavier
occurring at such a rapid pace that arrest problems in urbanizing centers, in earnest. Implementation of population service delivery. It is expected that an
cities are not able or are unequipped population growth needs to be stabilized programs indicate the importance increase in revenues from tax collection
to manage the attendant concerns and and managed. that the LGUs place on demographic or the internal revenue allotment should
provide the basic services needed by the The implication of this is worrisome concerns. And currently, LGUs do not be able to pay for increased service
growing population. for the national government, but even put much focus on these concerns. provision.
more so for local city executives and This report also promotes several
Population management: local government officials. How will SPPR 2004 interlocking messages that could make
LGU mandate they manage the burgeoning urban cities work. Productive population,
mass? How can they even plan to The State of the Philippine Population responsive service delivery, revenue RA 7160: The Local Government Code, Section 17,
Managing rapid urban population growth enhance delivery of services when basic Report (SPPR) 2004 focuses on how generation, investment opportunities, Basic Services and Facilities
is a critical concern of the government, problems such as lack of an appropriate LGUs manage the growing urban and sustained productivity are the
especially local government units (LGU). structure to deal with local governance population and cope with the challenges goals that cities work for. These are a. Local government units shall endeavor to be self-reliant and shall continue exercising
the powers and discharging the duties and functions currently vested upon them.
Under Executive Order 307 and Section and inadequate resource generation brought about by decentralization, rapid hinged on five basic needs that include Local government units shall likewise exercise such other powers and discharge such
17 of the Local Government Code, mechanisms or revenues for city urbanization, and booming population. food, shelter, health, education, and other functions and responsibilities as are necessary, appropriate, or incidental to
LGUs are now tasked with providing development and improvement persist? It presents the results of eight case employment. efficient and effective provision of the basic services and facilities enumerated herein.
services and carrying out programs on How can cities cope with the issues, cities and highlights how selected LGUs How well the LGUs handle changes b. Such basic services and facilities include, but are not limited to, the following:
population. Thus, they are expected challenges, and constraints that they rose to the challenge of providing brought about by urbanization are
to manage the problems arising from currently face? There is no one blueprint critical services to an ever-increasing tackled in the individual case studies, For a Barangay: Health and social welfares which include maintenance of barangay
health center and day-care center.
population growth resulting from for success that local executives could population, specifically in the areas of which also show the unique strengths
For a Municipality: Subject to the provisions of Title Five, Book I of this Code, health
urbanization and development. follow. Each local executive can learn local policies, planning and monitoring, and advantages of each of the cities. services which include the implementation of programs and projects on primary
Our local government executives from the experiences of other city resource mobilization, revenue Lessons distilled from the cases are health care, maternal and child care, and communicable and noncommunicable
disease control services; access to secondary and tertiary health services; purchase of
are faced with a tall order. The planners and officials on how best to allocation, population management, and presented in the last two chapters,
medicines, medical supplies, and equipment needed to carry out the services herein
institutional collaboration. which also include some policy enumerated.
recommendations.
Some prescriptions are forwarded Social services which include programs and projects on child and youth welfare,
family and community welfare, women’s welfare of the elderly and disabled persons,
here based on the experiences of the
Urbanization Executive Order No.307: devolving the selected cities. These should provide
community-based rehabilitation programs for vagrants, beggars, street children,
scavengers, juvenile delinquents, and victims of drug abuse; livelihood and other pro-
Urbanization refers to the proportion of total population living in
population management mandate to local executives with a guide to what poor projects; nutrition services; and family planning services.
urban areas. LGUs works and what does not work.
Urban areas are defined as “cities and municipalities which For a Province: Subject to the provisions of the Title Five, Book I of this Code, health
Implementing a family planning program at the local Learning from these experiences would services which include programs and projects on rebel returnees and evacuees; relief
have a population density of at least 1,000 persons per square
kilometer, poblaciones or central districts of municipalities and government level help city planners and executives avoid operations and population development services.
cities which have a population density of at least 500 persons per In Executive Order 307 signed by then President Fidel V. For a City: All the services and facilities of the municipality and province, and in
the pitfalls of poor or lack of urban or
square kilometer, and poblaciones or central districts regardless Ramos on February 28, 1996, local chief executives, specifically addition thereto, the following:
governors and mayors of cities and municipalities, were directed municipal planning.
of size, which have the following: street pattern, at least six
establishments (commercial, manufacturing, recreational, and/or to promote the Philippine Family Planning Program as a priority Our actions today will decide a. National agencies or offices concerned shall devolve to local government units
government program through advocacy activities, participation the responsibility for the provision of basic services and facilities enumerated in
personal services), any three of the following: town hall, church, whether tomorrow’s population will
or chapel with religious services at least once a month; public in program management, use of local facilities, services of local this section within six months after the effectivity of this Code.
providers and local employees, and use of other local resources
lead healthier and more productive lives.
plaza, park, or cemetery; market place or building where trading
activities are carried out at least once a month; a public building and expertise. It is urgent that the right choices and b. The basic services and facilities shall be funded from the share of local
such as a school, hospital, puericulture and health center, or Furthermore, local government executives were tasked to decisions are made now because the government units in the proceeds of national taxes and other local revenues
library), and barangays with at least 1,000 inhabitants, where the ensure that information and services endorsed by the program are and funding support from the National Government, its instrumentalities
consequences of these decisions would and government-owned or controlled corporations which are tasked by law to
occupation of inhabitants is predominantly nonagricultural. made available at appropriate levels of service outlets, that they
An updated definition of urbanization will be adopted in the provide the needed financial support to the program, and that they take time and resources that there is not establish and maintain such services or facilities. Any fund or resource available
next census. coordinate with the Department of Health and the Commission enough of. for use of local government units shall be first allocated to the provision of basic
on Population as well as nongovernment organizations and the services or facilities enumerated in subsection (b) hereof before applying the
Source: National Statistics Office in 1960, 1970 private sector in implementing the program. same for other purposes, unless otherwise provided in this Code.

2 State of Philippine Population Report 2004 The urban sprawl 3

 Urbis 5 Making Cities Work

The Facts of Urbanization More developed regions

World urban population (%), 1995

Less developed regions

Urbanization levels
History clearly documents the beginning
of cities and urban cores during the
Spanish times and how this set off
the Philippines’ path to urbanization.
By 1950, approximately 15% of the
country’s population resided in urban
agglomerations or clusters with more
than 26,000 persons, while 10%
resided in poblaciones or town centers
of municipalities. In addition, the
proportion of urban population in the
Philippines stood at 27.1%, the highest in
Southeast Asia at the time.
During the 50s and 60s, however,
the pace of urbanization in the country
became slower than its Asian neighbors.
In contrast, the level of urbanization
increased from 31.8% in 1970 to 37.5%
in 1980, further shooting up to 47% in
1990. The increase was attributed to
the marked rise in urban population
growth, which was 4.4% in the 1970s
and 5% per annum in the 1980s, and
a decline in rural population growth
from 1.8% in the 1970s to 0.3% in the
1980s. Surprisingly, the acceleration
in urbanization coincided with the
stagnating economy during the period.
From 1990 to 2000, urbanization
increased only by one percentage
point, that is 47.1% to 48%. This
was due to two major setbacks that
severely constrained the expansion of
employment opportunities in urban
areas. The 1990-1991 and 1997-1998
periods experienced negative real gross
domestic product (GDP) growth. The
Philippines had the lowest annual growth
rate of 1.4% in Asia from 1992 to 2002.
Geographical patterns
Two patterns of urbanization are evident
by geographic location: (1) Urbanization
rates have consistently been highest in
the same five regions—excluding the
East Asia
National Capital Region (NCR), and Central Asia
(2) the urban population has remained Southeast Asia
spatially concentrated. South Asia
The NCR along with other regions Latin America
such as Central Luzon (Region lll), North Africa
Southern Tagalog (Region lV), Central sub-Saharan Africa
Visayas (Region Vll), Northern Mindanao
0 10 20 30 40 50 60 70 80 90
(Region X ), and Southern Mindanao Percent (%)
(Region Xl) had the highest proportion
Sources: Pernia and Alabastro 1997, 2002 ADB Key Indicators
of urban population since 1970.
Of the 1,500 towns and cities in
the Philippines, the 14 urban areas with Urban population (% of total), SEA countries, 1950-1995
The facts of urbanization
population sizes exceeding 250,000 Percentage (%)
120 • The world’s urban population was 3 billion in 2003 and is
accounted for about 55% of urban expected to rise to 5 billion by 2030.
population in 1970 and about 44% in 100 • 48% of the world’s population lived in urban areas in 2003.
2000. The NCR accounted for 27.8%—a This is projected to exceed the 50% mark by 2007, when the
80 world will have more urban residents than rural residents.
condition referred to as urban primacy. Cambodia
Indonesia
Philippines
Singapore • By 2030, the proportion of urban population is expected to be
The obvious trend is that smaller 60
Laos Thailand 61%.
Malaysia Vietnam
towns and cities are starting to have • Population growth will be particularly rapid in urban areas of
40 less developed regions, averaging 2.3% per year during 2002-
higher population growth than the larger 2003.
cities, indicating that: (1) migration has • By 2017, the number of urban dwellers will equal the number
20
started to favor smaller urban centers of rural dwellers in the less developed regions.
as areas of destination, and (2) gradual 0 • Asia posted the fastest urban population growth in the world
1950 1960 1970 1980 1990 1995 in recent years. By 2015 almost half of the world’s 27 cities will
geographic deconcentration of the urban be found in Asia.
Source: Pernia and Alabastro 1997, Pernia and Israel 1994, and NSO (Philippines 1970-1995)
population has started. Source: UN Press Release POP/899, 24 March 2004

Urban areas and cities in the Philippines with

population exceeding 250,000 persons in 2000 Sources of growth source of urban growth. In contrast, Across cities, the importance of
Percentage (%) reclassification was the main source migration in the growth of cities located
30 NCR In the Philippines, urban population has followed by natural increase in the within the same region varied. Another
15 been growing much faster than total 1980s-1990s. observation was that while core cities
population. It has been increasing in may not be growing fast, the surrounding
5
three ways: natural increase (births areas are growing faster, indicating
4 minus deaths), net migration (in- spillover effects.
ao bu
D Ce
ro

migration minus out-migration), and Urbanization is expected to

et
av
M

3
reclassification of previously rural to continue and may reach 65% by 2020.
ro
ga

O
an

2 urban areas. Urban primacy, however, will be reduced

os
de
bo

nt
m

n
ya

Sa
Za

d
ga

lo

al
co
Ca

er

Among the three sources of as other urban destinations become

Ba

en

ilo

an

as
an
G

Ilo

les

1
io
ng
tu
Ilig

c
ge
rla

gu
Bu

ta
An

Ba

Ba
Ta

urban growth, natural increase was more attractive.

0 the largest source of growth, followed
2000
Source: Philippine Statistical Yearbooks, 1970 and 2000 only by reclassification in 1960-1970.
Net migration was also a significant

4 State of Philippine Population Report 2004 The urban sprawl 5

 Urbis 5 Making Cities Work

Tales of 8 Cities
Legalizing Cooperation
in Cebu
A metropolitan area is defined as
a large urban settlement with a
population of at least 1 million. Its
geographical area extends across
several local government boundaries.
There’s no question about it—Metro
Cebu is a metropolitan area.
Metro Cebu consists of four
cities—Cebu, Mandaue, Lapu-Lapu,
and Talisay—and six municipalities. In
2000, its population was 1,693,881.
This is projected to double by 2010.
Cebu one of the major sites for foreign
investments. And as the manufacturing
industries and economic activities
came in, so did the workers and
migrants from nearby municipalities
and provinces. Metro Cebu offered an
alternative for people wanting to go to
Metro Manila.
Now, Metro Cebu is the
economic, trading, and educational hub
of central and southern Philippines. It
is accessible through numerous ports

2
Ceboom
Before the 70s, Cebu was among the
slowest growing provinces. But during
the late 80s to early 90s, changes in
and an international airport. It is the
second international gateway and
the second largest urban area in the
country—Metro Manila being the first.
It is also second to Metro Manila in
terms of population.

CEBU
the global environment made Metro

General
Facts

T
Land area 74,209 ha
Industries Manufacturing, banking, real estate he mention of Cebu City brings to mind
Population 1,693,881 (2000) Magellan’s cross and the feast of Sinulog. Cebu
Population growth rate 2.90 (2000)
Population density 2,351 persons/km2 City is the second most important city in the
Crude birth rate Cebu: 26.16%; Lapu-Lapu: 31.28%;
Mandaue: 29.78% (2000) Philippines and, according to Asiaweek in 1995,
Crude death rate Cebu: 6.17%; Lapu-Lapu: 4.43%; the eighth most livable city in Asia. It is part of a bigger
Mandaue: 4.56% (2000)
Net migration -187.87 (2000) group of towns and cities called Metropolitan Cebu.
Per capita income PhP1,088.35
Total income PhP3,390.60 M (2000)

Source: Techinical Report on Population, Urbanization and Local Governance,

a joint project of POPCOM and PIDS.

6 Tales of 8 Cities 7

Population Trend
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1970 1980
Population landscape
Although Metro Cebu’s almost 2
million population is a far cry from
Metro Manila’s 8 million, its population
increase is still rapid. Its growth rate
may have decreased from 3.69 in 1990
to 2.90 in 2000, but this figure is still
higher than Cebu Province’s 2.41%
and the country’s 2.34%. Both the
significant migration and the high rate
of natural increase have contributed to
this.
Metro Cebu has a young
population as a result of high fertility.
Its median age is 22, which means half
of the population is 22 years and below.
Women of child-bearing age (15-49
years old) make up 55.4% of the total
population. This has an implication on
Metro Cebu’s increased population
growth.
8 State of Philippine Population Report 2004
1990 2000
However, congestion and high
housing prices have forced many to
move out of the Metro Cebu cities.
This is reflected by the trend of out-
migration observed in 2000 in the
cities of Cebu and Lapu-Lapu. But
Metro Cebu is still densely populated.
Its entire population is almost half
of the population of the province of
Cebu but it only takes up 14% of the
province’s land area.
Curbing the baby boom
Metro Cebu exhibits high fertility rates.
In 2000, the cities of Cebu, Mandaue,
and Lapu-Lapu exhibited 10.1, 8.5,
and 11.4% fertility rates, respectively,
compared with the country’s average
of 3.38%.
In Cebu City, the City Health
Office dispenses free family planning
commodities distributed to health
centers in the city’s 77 barangays. In
Lapu-Lapu, it has been noted that
female sterilization has become a
popular method of family planning.
The Metro Cebu Community
Advocacy Network for Family
Planning and Reproductive Health
was also launched last July 2004. This
is a network of different urban poor
groups and community associations
which aims to bring other urban poor
communities and informal sector
organizations into the family planning
advocacy to intensify information
dissemination on reproductive health.
Improving service delivery
Metro Cebu’s population programs
are part of its efforts of battling the
growing population problem. Improving
service delivery is another area of
concern because of the increasing need
for basic services. For Cebu City, Lapu-
Lapu and Mandaue, the biggest share of
their budget in 2000 went to general
public services.
Despite this, there are still
inadequacies that need to be met.
Although the number of health facilities
covers 91% of the total area of Metro
Cebu, infant mortality is still high in
Cebu City, Lapu-Lapu, and Mandaue.
School facilities and teachers are also
inadequate in number. From 1993 to
1999, there was a 60% increase in the
number of registered motor vehicles
in the Metro, which further aggravated
the traffic problem. There is also a
housing crisis because of unavailability
and unaffordability of land for mass
housing. The creation of the Inayawan
Sanitary Landfill addressed the problem
of waste disposal but the dumpsite is
now on its 6th year of operation and
is nearing its life. In addition, the water
supply capacity of the Metro Cebu
Water District is not sufficient for the
growing number of urban population in
Metro Cebu.
Putting their acts together
Urban services are provided more
efficiently and effectively if they are
jointly planned and delivered. Thus, the
cities and municipalities of Metro Cebu
embarked on a project called Metro
Cebu Development Project (MCDP)
to put their acts together. The Metro
Cebu Development Council (MCDC)
was created as its project office. The
governor of Cebu plus the mayors
of Metro Cebu’s four cities and six
municipalities are its members.
MCDP addressed traffic
management and congestion through
infrastructure development by
expanding existing roads, constructing
new roads, and establishing a bus
terminal and public markets. The
delivery of more cost-effective
services such as water supply, garbage
disposal, and solid waste management
across shared borders is also being
studied. Public health and basic
education receive priority attention
because these services benefit even
nonresidents of a local jurisdiction.
Urbis 5 Making Cities Work
Toward a metropolitan
development authority
Establishing a permanent body
that would look into the various
development needs of Metro Cebu
as a whole looks like the answer
to more efficient service delivery
and governance. A metropolitan
development authority would address
the lack of financial sustainability of a
council whose budget is tied with funds
coming from partner agencies.
Under Section 10 of RA 7924, a
metropolitan development authority
is given one billion pesos as an initial
budget for its operation. Thereafter,
annual expenditures are provided for
under the General Appropriations Act.
A bill creating a Metropolitan
Cebu Development Authority (MCDA)
was forwarded in Congress. The
proposal is for MCDA not to be placed
under the Office of the President.
Its Chairman will be elected from
among the members of the council
annually instead of being a presidential
appointee.
Until now, Metro Cebu is waiting
for the bill to be passed so the LGUs
can officially work with each other in
improving service delivery.
Tales of 8 Cities 9
 Urbis 5 Making Cities Work

Iligan: Steeling it Up

ILIGAN Industries fuel urbanization
These industries became the magnet
that attracted a throng of migrants
looking for higher wages or better jobs.
The population of Iligan City climbed
by 7.5% in 1960. Two decades later, the
population of 58,433 almost tripled to
General
Facts
167,358. The highest net migration rate
recorded so far was 14.5% in 1975-
1980.
The population in Iligan City
Land area 81,337 ha
skyrocketed from 9% in 1970 to 31% in
not include the other industries which
catered to NSC’s needs, such as the
Refractories Corporation of the
Philippines, which supplied industrial
bricks for the NSC heating system.
To some extent the lifeline of Iligan
and its people heavily relied on NSC’s
operations. As long as NSC and the
other major industries were ticking,
good times are to stay in Iligan, or so
the city residents thought.
However, Iligan and its people
were unprepared for the turnaround.

B
Industries Manufacturing, Agriculture
Services
Products Steel, cement, coffee, abaca,
ehind Iligan City’s industrialization is Mother 1990. Unfavorable climate conditions such
cutflower, cabbage, watermelon Nature’s gift of a 320-foot high cascade, the Iligan City was home to 17 as El Niño and La Niña, implementation
Charter year 1950
Population 285,061 (2000) Maria Cristina Falls. When this wonder of nature manufacturing industries at one of trade liberalization, and the onslaught
Population growth rate 0.93% (2000) dubbed as “The Mother of Industry” was tapped time, which fueled its growth. These of the Asian financial crisis drove away
Crude birth rate 31.95% (1995-2000)
Crude death rate 5.41% (1995-2000) for hydroelectric power in 1952, it propelled Iligan City to industries became a significant source the major industries in Iligan.
Net migration -25,135 (1995-2000)
Poverty incidence 54% (1998)
urbanization and eventual progress. Soon, many industries of revenue and livelihood. The most At least 10 major firms closed
Total income PhP698 M (2003) sprouted in the city such as Mabuhay Vinyl Corp., Mindanao notable of these is the NSC which and stopped their operations between
Source: Techinical Report on Population, Urbanization and Local Governance, Portland Cement, San Miguel Corporation-Iligan Coconut employed as many as 4,000 people 1998 and 1999. The hardest blow came
a joint project of POPCOM and PIDS.
Oil Mill, Granexport Manufacturing Corp., and National and provided as much as 75% of when NSC suspended its operations.
Steel Corp. (NSC), among others. Iligan’s total tax revenue. This does As a result of the economic crisis,

10 Tales of 8 Cities 11
 Urbis 5 Making Cities Work

collection. It even advertised in the

Population Trend Employment by Industry (1997–2002) local radio and television to remind Enhancing revenue collection in Iligan
300,000 its constituents of the tax payment The abrupt exit of the big manufacturing government based the new assessments on
250,000 Total Population
Urban Population Agriculture
period and permit renewal. There industries in Iligan meant that the local 1997 classification rates, but adopted new
200,000 17% was even a government vehicle roving government suddenly had to support market values. Although taxes under the
its large and newly-jobless population new scheme still did not reflect true market
150,000 around barangays making public with too little money. But by improving values, the government already managed to
Industry announcements.
100,000 tax collection, Iligan City proved that get some increases.
18%
Services The most exemplary effort of the “pamamaluktot” is not the only solution
50,000
65% for a “maiksing kumot”. It showed that to Easier Tax Payments
0
city government is its dedication to
cope with a short blanket, every square The hassle involved in going from one
involve its constituents in its projects. inch must be maximized. With increased office to another to get documents and
03

18

39

48

60

70

90
80

00
19

19

19
19
19

19

19
19

20
investments nose-dived by 87% from
PhP4,144 million in 1997 to PhP358
million in 1999. Exports plummeted
from $178 million in 1998 to $84
million in 1999.
Many residents in Iligan found
themselves jobless. According to the
National Statistics Office (NSO),
industrial employment constantly
decreased from 1997 to 2000 with
9,000 jobs lost. Overall employment
did not decrease though until 2000
with 12,000 jobs lost.
Consequently, with the bleak
economy, many Iliganons scrambled
to look for other sources of livelihood
elsewhere. Iligan City ’s population
growth rate dipped to 0.93% when
the crisis hit. From 1995 to 2000,
net migration rate was at an almost
negative 9%. The city’s population went
down by 25,135 due to outmigration.
Accordingly, the city government
of Iligan found itself with many jobless
constituents amid decreasing revenues
and economic slowdown.
Involving the people in
solving the crisis
In responding to the crisis, the city
government of Iligan was unfazed.
It ventured into participatory and
innovative programs to address the
problems.
It launched week-long trainings
for displaced workers to learn new
skills. It also provided part-time and
casual employment in the city hall. The
city government also embarked on
infrastructure projects to boost the
competitiveness of Iligan and at the
same time supply jobs to Iliganons.
Learning from the crisis, the city
government shifted its development
strategies and decided to start
developing its agriculture and tourism
to expand its economic base.
In addition, it committed itself
to improving revenue generation
through the Tax Revenue Assessment
and Collection System (TRACS), a
software that facilitates identification
and collection of due revenues;
intensification of tax mapping;
modernization of property assessment;
and the one-stop shop for tax
A case in point is the rebuilding of
Iligan’s city market which was gutted
by fire. Stall owners helped raise
resources to reconstruct 240 stalls by
paying a PhP20,000—equity fund which
served as a tax credit for five years.
After which the stalls will be passed on
to the city government.
The city government also conducts
public consultations so that land use
and medium-term plans echo the true
needs of its constituents.
The city government broadened its
participatory governance approaches
by requiring barangays to come up with
their own Barangay Development Plan
(BDP) before their share of the city
budget could be granted. The BDP uses
the Participatory Resource Appraisal
(PRA) to determine the needs of the
barangay residents.
In recognition of the efforts of
the city government, the Mayor of
Iligan who showed the way during
the economic crisis was named Most
Outstanding City Mayor in 2002
and was the recipient of a Local
Government Leadership Award.
Five years after the economic
crisis, Iligan City is gradually bouncing
back to regain its status as the “symbol
of RP’s industrialization”.
revenues from efficient tax collection,
Iligan city ensured that it would have
enough funds to serve its people.
Systematized Tax Records
Computerizing and integrating the tax
collection system made it easier to assess
and verify Iligan residents’ tax records.
With the help of the Philippine Regional
Municipal Development Project, Iligan
developed the TRACS or Tax Revenue
Assessment and Collection System
software. This resulted in more accurate
tax record-keeping and cross-checking for
the city.
Intensified Tax Mapping
Small businesses sustain local economies,
not just by creating job opportunities, but
also by contributing to local government
revenue. Efficient fund collection, however,
begins with registration and validation of
businesses. By linking to the Geographic
Information System, the Iligan Treasurer’s
Office and Planning Office worked
together to easily identify new business
and commercial areas, and facilitate proper
taxation.
Updated Property Assessment
Outdated land classification schemes and
market values in City Assessors’ records
often result in below-optimum collection
of property taxes. Iligan, particularly, had
been collecting very low property taxes
since its land classification scheme had not
been adjusted since 1997.
Thus, new property assessment
levels were recommended in 2002, based
on new land classifications and market
values. Because of public opposition to
the sudden property tax increase, the
make payments is one reason why people
hate paying taxes. Thus, to encourage
Iligan residents to pay their taxes, the
city government set up a “one-stop shop”,
allowing taxpayers to get all needed
documents and make necessary payments
in one complex. The city government also
painstakingly reminded people to pay their
taxes using posters, TV and radio ads, and
even government vehicles equipped with
loudspeakers.
Innovative Financing Strategies
Aside from improving taxation, Iligan also
made innovations in funding infrastructure
projects, such as the reconstruction of the
public market, and the construction of the
integrated bus and jeepney terminal.
Two hundred forty stalls had to be
rebuilt when fire destroyed the Iligan
City Market in 2000. Realizing that
high interest payments to government
financial institutions would devour the
city’s finances, the Iligan city government
worked instead with the stall owners
themselves. Store owners agreed to shoulder
the reconstruction of their respective stalls,
in return for 5 years of free rental. After 5
years, the stalls would be passed on to the
city government.
The Iligan City jeepney and
bus terminal was built to facilitate
transportation. To maximize revenues,
a commercial center was built inside it.
Bidding was employed to allocate stalls
in the complex. Minimum prices for
each stall were set by the city government
based on the expected profitability of the
stall locations. Bidding started from these
minimum prices. This process generated
prices which more accurately reflected the
stalls’ actual market values.

12 State of Philippine Population Report 2004 Tales of 8 Cities 13

 Urbis 5 Making Cities Work

ILOILO
More Heads Are Working in Iloilo
Participatory Iloilo
Participation is at the heart of the
development efforts in Iloilo City. Many
General
Facts of the city’s projects and programs
Another example of Iloilo’s
participatory approach to governance
is the planning workshops it conducted
to come up with the Comprehensive
Land Use Plan (CLUP) for 1998 to
CLUP was closely coordinated with
its neighboring municipalities of Pavia,
Leganes, Oton, and San Miguel.
Iloilo City is able to grab the
opportunities brought about by the

M
outh-watering seafood and original La Paz involve the participation of various 2010. Here, the city government active participation of the various
batchoy—one of the best places to find these sectors. One good example is the sought public participation in sectors, which play a big role in helping
Land area 7,023 ha delicacies is in Iloilo. city’s Community Oriented Policing identifying measures that would
Industries Agro-industrial, services These delicacies are not prepared by Ilonggos to System (COPS). The project capitalizes address urbanization issues. Various
Population 391,293 (2003)
Daytime transient population 550,000 (2003) be savored alone but in groups. Eating is indeed more on people’s cooperation to prevent sectors actively participated in the
Population growth rate 1.93% (1995-2000)
Population density 6,533 persons/km2
pleasurable when the experience is shared. and solve crimes. This system helped workshop including the academe,
Crude birth rate 10.23% (2003) In the same manner, responding to the problems improve the Iloilo City Police Office’s nongovernment organizations,
Crude death rate 4.89% (2003)
Per capita income PhP1,632 (2002) brought about by urban growth is more efficient when done (ICPO) efficiency and effectiveness. people’s organizations, church, banking
Poverty incidence 9.11% (2002) by a group. There are more ideas and inputs, and efforts Thus, despite the ICPO’s shortage in institutions, business clubs, civic
Source: Techinical Report on Population, Urbanization and Local Governance, become coordinated making the resulting response more manpower, it bagged the Best City clubs, and other professional clubs.
a joint project of POPCOM and PIDS.
cost-effective. Police award in 2003. In addition, the preparation of the

14 Tales of 8 Cities 15

Employment by Type of Job (2002)
22%
23%
5%
10%
9%
5%
3%
9%
14%
it meet the needs of its populace
despite limited resources. This strategy
of governance has also helped the city
address the challenges associated with
urban growth.
Controlling inmigration
The city’s economic activity started to
flourish during the American regime
when the sugar industry was booming.
Its thriving business environment was
also enhanced by the availability of
port facilities. Job opportunities were
16 State of Philippine Population Report 2004
Gov’t and special
interest org officials
Professionals
Technicians
Clerks
Service workers
Farmers
Traders
Plant and machine
operators
Laborers
created. And the migrants from other
provinces and nearby municipalities
came. In 2003, Iloilo City had a resident
population of 391,293. Its daytime
transient population was around
550,000.
Since the city can only
accommodate a maximum of 405,000
people because of limited area and
facilities, the city’s land use and facilities
plan regulates net migration.
Its population growth rate of
1.93% in 1995 to 2002 is relatively low
compared with the national average of
2.36% which could be attributed to its
very high population density. However,
the neighboring towns of Leganes,
Oton, Pavia, and San Miguel with
growth rates of 4.30%, 3.05%, 4.48%,
and 2.12%, respectively, seem to be
the ones absorbing the population
pressures.
Delivering local services
Iloilo City puts extra effort in managing
urban growth, especially in its basic
services delivery. In education, one
of its noteworthy projects are the
scholarship grants it gives to children
of poor families. It also provides free
has also launched initiatives to address
all components of an ecological waste
management system.
Traffic is also being addressed
with one of the city’s projects which
is setting of perimeter boundaries for
public utility vehicles. As with housing,
41% of the total urban poor have
benefitted from the city’s resettlement
program. On the one hand, almost
48% have remained informal settlers
and majority of them are located in
danger zones or high-risk areas, such
as waterways, road easements, and
shorelines. The remaining portion
accounts for renters. Thus, 59% of the
urban poor are in need of resettlement
home lots, the city government is
expecting funding from the National
Housing Authority, which would allow
it to buy an additional 16 hectares for
relocation sites.
However, despite Iloilo City’s
efforts to manage its urban growth,
social, economic, and environmental
technical and vocational education
problems have begun to spill over to
through the Technical Institute of Iloilo
the nearby municipalities of Leganes,
City.
Oton, Pavia, and San Miguel.
All seven of Iloilo City’s district
health centers are certified Sentrong
Dealing with the spillover
Sigla, which means they have met
the standards and requirements set
The Metropolitan Iloilo Development
by the Department of Health. Also
Council (MIDC) was created to answer
noteworthy is the city’s prioritization
the problems associated with urban
of social welfare services. In particular,
growth, which is spreading its tentacles
the day care service of the City Social
Welfare and Development Office
(CSWDO) eats up almost half (47%)
of its budget. The CSWDO also pays
attention to the street children and
out-of-school youth population.
In environmental protection,
the City Environment and Natural
Resources Office has accomplished
several projects particularly in water
resources management. With only 70%
efficiency in garbage collection, the city
Urbis 5 Making Cities Work
Iloilo’s development plans
1. Panay Area Business Development Project. This aims to make Panay Island a premier
agricultural and fishery product exporter and tourism service provider.
2. Circumferential Road System. This will connect the municipalities inside and outside
the metropolitan area.
3. Solid Waste Management. This is in line with RA 9003 which converts open dumps
into controlled dumps within three years.
4. Iloilo Flood Control Project. The plans and maps of Iloilo Flood Control Project will
be integrated in the final Metro Iloilo Land Use Plan (MILUP).
5. Integrated Water Resource Management. This will:
5.1. develop a master plan on how to manage water resources;
5.2. ensure that efforts are properly linked and coordinated with other planning
initiatives and programs;
5.3. plan, implement, monitor, and evaluate projects with other entities;
5.4. raise people’s awareness on managing and conserving water resources;
5.5. support the development of infrastructure such as drainages; and
5.6. formulate measures to sustain the economic value of water resources.
6. Iloilo River Rehabilitation. This is a major initiative to rehabilitate the urban region’s
largest and most polluted waterway.
across Metro Iloilo. Iloilo City, Leganes, its satellites. Pavia will serve as the
Oton, Pavia, and San Miguel are agro-industrial center; San Miguel as
partners in this arrangement and their the agricultural basket; Leganes as the
respective mayors are the members of center for light industries; and Oton as
the Executive Council. a residential area.
MIDC was created so that these The contribution of the Canadian
five local government units (LGUs) can Urban Institute in the success of MIDC
address the urban growth problems is also noteworthy. In 1998, it started
collectively. They have identified areas to sponsor capability-building activities
of collaboration along which they for local officials. These activities
based their common and integrated helped them realize the importance of
development plan. In the MIDC a metropolitan arrangement in planning
framework, Iloilo City will remain as and managing issues and services that
the center for residential, commercial, cut across LGU borders.
financial, and educational activities.
The other four municipalities are On participation
Indeed, Iloilo City’s recognition of
the importance of participation and
cooperation has helped the city stay
afloat amid problems regarding urban
growth. Its alliance with neighboring
municipalities has proved to be a
wise move in facing the complicated
pressures of urbanization.
After all, five LGUs working
together are indeed better than one.
Tales of 8 Cities 17
 Different Folks,
3 Different Strokes

T
here are many ways to skin a cat. Similarly, there are various paths to
urbanization and there are diverse ways of treading these paths. A look at
eight cities though show some similarities in how local government units
(LGUs) deal with the challenges and changes that go with urbanization.

Some cities urbanized because With urbanization looming

of their strategic locations, others
because of national government
mandate. There were those whose
urbanization and progress were largely
dependent upon one firm or one
industry, which led to lessons about
expanding one’s economic base.
in the horizon, some resorted to
metropolitan arrangements, others
employed participatory governance.
Many realized the need to make
their local revenue generation more
aggressive.

38

At the right place, at the
right time
Lipa, Tagum, and Zamboanga City owe
their urbanization to their strategic
locations. Lipa is only one and a half
hours away from Metro Manila and
thirty minutes away from Batangas
City, where an international port is
located. Tagum is at the crossroads
of two progressive areas. It is the
doorway to the northern regions of
Mindanao and Davao City. Zamboanga
City is the gateway to Southwestern
Mindanao. Their locations jumpstarted
their economic growth.
For Lipa, which gets the spillover
of development from Metro Manila
and Batangas City, its centralized
location makes it an ideal financial
center of Region IV, with the number
of banks increasing steadily. Being at
the crossroads, Tagum is the trading
center for gold, agricultural products
and other services. On the other hand,
Zamboanga City, with its port facilities,
is the hub of Southwestern Mindanao
for trade and transportation.
Their locations made them fertile
ground for investments and trade.
Livelihood opportunities became
abundant, attracting migrants seeking
for greener and better pastures. These
paved the way for urbanization.
On the spotlight
The national government agenda can
influence urbanization trends. The
branding of Mindanao as “the land of
promise” and the inclusion of Bohol
in the Philippine Tourism Master
Plan are just a couple of examples.
These brought Zamboanga City and
Tagbilaran into the spotlight.
Urbis 5 Making Cities Work
SOCIAL WELFARE
Meeting Needs, Building Hopes
Public office is public service. Meeting the needs of the various
sectors in a city or municipality delegates a big responsibility to
administrators.
In Iloilo City, the City Social Welfare and Development Office
(CSWDO) carries six major functions: (1) day care services,
(2) nutrition program, (3) emergency assistance program,
(4) practical skills development and job placement, (5) self-
employment assistance, and (6) other special social services.
Much of the programs of the CSWDO have benefited
children ages 6 and below. With the help of the World Bank
Early Childhood Care and Development (ECD) Project,
CSWDO continues to improve day care services and nutrition
programs in various barangays. As of April 2004, there were 251
day care centers in the city. Only 25 out of the 180 barangays in
the city do not have day care centers, a big improvement from 32
in 2002.
Another big chunk of the budget is the emergency assistance
program, which amounted to P5.136 million in 2003. Victims
of calamities, accidents, and squatter families, which need to be
relocated avail of the assistance.
The CSWDO also extends its hands to the street children and
the out-of-school-youths in the city through scholarship programs
and leadership trainings among others.
Meanwhile, Zamboanga City has a unique experience in
providing social services. Among those the city government is
working on are the less privileged and marginalized deportees
from Malaysia.
The One-Stop Shop Crisis Assistance Center was established
to assist repatriates in the processing and documentation of travel
employment papers, including the issuance of free passports.
On the other hand, the Regional Disaster Coordinating
Council continues to implement the necessary program of action
for the “halaws” not only in Zamboanga but throughout the
region.
The city government is also addressing the health and
education needs of the migrants’ children.
Different folks, different strokes 39
 Tagbilaran and Zamboanga’s image On the other hand, the Vulnerability of one-firm
became that of “a place to be” for development of Tagbilaran’s feature cities
tourism and a better life, respectively, as the gateway to Bohol became
for tourists and migrants alike. one of the province’s top priorities. Iligan had a phenomenal net migration
With the government promoting Various infrastructure developments of 14.5% because of the livelihood
Mindanao, migrants trooped to were undertaken to create the right opportunities that its major industries
Zamboanga City. This spurred tourism atmosphere. Compared with offered, particularly, the National Steel
economic activities in the city and Zamboanga, wherein the campaign Corporation (NSC). These industries
lured crowds of transients. However, lured people to become permanent pushed Iligan to industrialize with many
the ethnic strife in Mindanao and the settlers, the campaign for Tagbilaran Iliganons, even the LGU, relying on
worsening peace and order situation in hopes to attract tourists into the these industries for livelihood. When
the area has tarnished its image as “the province of Bohol, which boasts of a many of these industries shut down,
land of promise”. good many natural attractions. including NSC, it brought with it the
economy of Iligan. This compelled its
residents to look for jobs elsewhere.
REPRODUCTIVE HEALTH Iligan City’s population growth rate of
Promoting Vasectomy in Tagum barely one percent (0.93) during this
crisis was attributed to outmigration.
Migration played a significant role in the city’s rapid urbanization in the early 80s during More residents were leaving Iligan
the gold rush in the Davao region but no doubt the relatively high population growth
during this time with a net migration of
rate increase presents an overwhelming challenge for the city government in supplying
adequate basic services to its constituents. negative 9%.
Realizing that resources can hardly keep up with the growing demand, the local Olongapo suffered the same
government embarked on population management programs to influence the tempo
experience as Iligan whose urbanization
of population growth. Aside from premarriage counseling and making artificial family
planning devices available at the City Health Office, the city government is encouraging was brought about by beefing up the
males to voluntarily undergo a vasectomy. The City Health Office was tasked to support services needs of the US
administer the program while the surgical procedure was carried out by the Davao military facility, was ravaged when the
Provincial Hospital, charged against the city’s annual contribution to the provincial
hospital. military bases were closed down. This
was worsened by the eruption of Mt.

40 State of Philippine Population Report 2004

 Urbis 5 Making Cities Work

THE ADOLESCENT-FRIENDLY HEALTH SERVICES NETWORK

More is Better
A bleak future apparently awaits those who are touted to be the hope of it.
A number of studies show that figures on unwanted pregnancies, abortions, sexually transmitted
diseases, and drug addiction continue to soar among the youth who comprised one-fourth of the
country’s total population. Adolescence is a critical period in a person’s life. It is a time when young
people discover themselves as individuals and establish life-long patterns of adult behavior and
relationships. Unfortunately, many young people go through this period without information or
skills they need to make responsible decisions.
The public and private sectors have long been addressing this problem on the youth. However,
most of the programs fail because they tend to work independently. They fail to recognize that the
interrelatedness of the causes should bring about a holistic solution.
The national government has recently delegated to the local government units (LGUs) the
problem on the booming population, an offshoot of poor reproductive health knowledge and
practices. The LGUs are now in a very influential position to spearhead programs for their constituents. Interestingly, however, programs
nowadays consider the problem as part of the solution—the youth.

Not only one

In 2003, the Save the Children Federation (SCF) based in Manila launched a network of adolescent-friendly health centers. It was piloted
in Las Piñas, Parañaque, and Taguig. The network aims to ensure better delivery of a comprehensive package of quality reproductive and
sexual health information to the Filipino youth.
Emphasizing the role of networking, it pools together government agencies, LGUs, nongovernment organizations (NGOs), and most
important—the parents and youth organizations. The network ensures the quality of delivered services through six standards: (1) trained
health service providers, (2) adequate space and service, (3) youth involvement, (4) sufficient privacy and confidentiality, (5) availability of
referrals, and (6) information, education, and communication materials.
All these actions, however, have to thrive in a supportive policy environment. Hence, on top of its priority, the network conducts
advocacy activities among local government officials for them to allocate funds, create resolutions, and support clinics focusing on
adolescent reproductive and sexual health.

Bringing back hope

The lifeline of the network relies on building on its human resources. The network is proud of having trained more than 100 nurses,
midwives, and barangay health workers in handling and treating adolescent clients.
A core group of trainers, the first to undergo training, have been conducting these training courses for their colleagues. They have also
served as models, mentors, and coaches to fellow service providers.
In the little time the network has been operating, it already has taken big leaps as more organizations continue to link up.
It may still take time for alarming figures carried by studies on the Filipino youth to drop. But the experience of the Adolescent-Friendly
Health Services Network definitely proves that it pays to work with partners.

Pinatubo, resulting in outmigration in parks, thus reviving the city’s economy.

the early 90s. The population grew by
barely 1.45% annually starting in 1991.
Faced with the dilemma of
“deurbanization”, Iligan chose to
reinforce its tax collection and cultivate
its neglected agriculture and tourism.
Notable was Iligan’s effort to draw
on the participation of its residents
in dealing with the crisis. Olongapo,
on the other hand, took advantage of
its Subic Bay Freeport and converted
the US military facility to industrial
Employment rate and jobs considerably
increased.
TEAM
Metropolitan arrangements are the
wave of the future. More and more
urban areas are realizing the cost-
effectiveness of planning together and
pooling their resources with other
LGUs to improve their basic services
delivery across city borders. These

Different folks, different strokes 41

 metropolitan arrangements highlight
the importance of cooperation
between and among the different LGUs
involved.
This is clear in the cases of Metro
Iloilo and Metro Cebu. In both cases,
Iloilo City and Cebu City are the core
42 State of Philippine Population Report 2004
cities. Due to their rapid urbanization,
their neighboring cities and
municipalities experience the spillover
effects of their developments.
People attracted to the jobs and
opportunities these urban centers offer
also chose to live in the nearby cities
and municipalities. In addition, the
neighboring cities and municipalities’
nearness to the core cities make them
attractive to investments and trade.
These are the positive spillover effects.
As the neighboring cities and
municipalities urbanize as well, they
also experience urbanization’s negative
effects. Pressures on the water supply
become evident. Problems in garbage
disposal and solid waste management
set in, with the increasing volume
of wastes and growing lack of space
for dumps. Housing also becomes a
problem as the squatter population
soars.
In the case of Iloilo City and
Cebu City, they signed memoranda of
agreement with their respective neighbor
cities. Both are now part of metropolitan
development councils. Iloilo City, along
with its neighbor LGUs Pavia, Leganes,
San Miguel, and Oton, is now part of the

Metropolitan Iloilo Development Council
(MIDC). Together, they compose Metro
Iloilo.
On the other hand, Cebu City is part
of the Metropolitan Cebu Development
Council. With it are its three neighbor
cities (Mandaue, Lapu-Lapu, and Talisay)
and six other municipalities. Together they
form Metro Cebu.
Organizing these metropolitan
development councils helps address
the problems associated with rapid
urban growth, which are experienced
by all member LGUs. Metro Cebu
and Metro Iloilo have recognized that
through cooperation they can provide
certain urban services more efficiently
and effectively. After all, Together
Everyone Achieves More (TEAM).
Echoing the true needs
of the folks
Any effort in handling urbanization is
ineffective if it does not mirror the real
concerns of the people. Lipa, Iloilo,
Tagum, Iligan, and Olongapo know
this well as they explore participatory
approaches in their governance.
Tagum’s City Council teamed up
with purok leaders in visiting barangays
and other activities to keep an eye on
implementing ordinances passed. The
City Council also took the initiative
of educating its purok leaders on legal
matters.
Iligan moved a step higher with its
public consultations before formulating
its land use and midterm plans. It
expanded its efforts by requiring
barangays to come up with their own
barangay development plan (BDP)
before they could get their share of the
city budget. In coming up with the BDP,
the barangays employ participatory
resource appraisal to uncover the
needs of their constituents.
Urbis 5 Making Cities Work
REVENUE GENERATION
Getting More to Do More
Money makes the world go round, especially cities.
Revenue generation has always been one of the key concerns of any city administration
to keep it operating and ensure the delivery of services to its constituents.
In Lipa City, revenue generation in the past 10 years may seem to be a roller coaster
ride. Nevertheless, it managed to bounce back especially in 2002 when income posted a
growth rate of 15%. In 2003, it reached PhP422 million.
Part of the city government’s success was due to amendments made to its Revenue Code
to generate additional income. Aside from tax amendments, the city government also
invested in computerization of its collection system. This also gave birth to the one-stop
shop project for faster transaction and issuance of permits.
A user’s fee called Environmental Management Fee (EMF) has also been imposed on
households for the city’s comprehensive waste disposal and management system.
Lipa City’s effort to improve its revenue collection was not left unnoticed. In 2000 and
2003, the city government received recognition for being first in the collection of RPT
citywide in Region IV. In addition, it was one of the awardees in the “best in tax collection
efforts” category in 2002.
Tagum City is getting the right amount of tax, not imposing new ones. Aside from tax
mapping and the one-stop shop, the city government deploys a revenue task force, which
visits establishments and bring the renewal process right at their doorstep.
Tagum City officials definitely know how to take care of business. They recently
enacted a “Code for Economic Enterprises” which codifies and refines the various
ordinances governing its economic enterprise. Alongside is the formation of the Economic
Enterprises Regulatory Board that ensures and oversees the effective and efficient
management of the enterprises.
Getting more and saving more money seems to work in Tagbiliran City.
The city’s expenditure is decreasing in recent years (within 45-55% cap for 2000-2003).
The city’s aggressiveness in tax collection is evident in the increase of the locally sourced
revenues from PhP71.6 million in 1999 to PhP101.6 million in 2003.
True to the idea that taxes do mean improved services, Iloilo City’s collection of 1%
additional property taxes amounting to PhP56.5 million went to its Special Education
Fund (SEF). Moreover, an increased collection of RPT in 2003 which resulted in a surplus
enabled the City to supplement the budget for the Iloilo City School Board in 2004.
No Goliath
How the Quezon City government was able to solve its mammoth
budget deficit through improved tax administration
A ballooning revenue deficit and debt may have been his greatest challenge when he was
elected mayor of the largest city in Metro Manila in 2001.
Now on to his fourth year as Quezon City’s top official, Feliciano Belmonte Jr. is proud
to have solved the problem and paints a bright future of the city.
Together with city treasurer Victor Endriga, Belmonte improved the city’s tax
administration through a “carrot and stick” approach.
The “sticks” are direct measures to increase tax collection. These include strict
monitoring of delinquent payers and property auctions; submission by business
establishments of detailed financial statements and prerequisite permits; and direct
withholding of taxes from the city’s contractors.
On the other hand, the “carrots” were measures in the form of incentives and services to
encourage city constituents to pay their dues on time. “Outstanding” taxpayers were even
recognized by the mayor in a ceremony.
Within 18 months at the helm, Belmonte was able to solve the city’s fiscal problem.
From PhP2.3 billion in 2001, own-source revenue rose to PhP3.9 billion in 2002. The
city even closed the year 2002 with a surplus of PhP0.5 billion.
Apparently, the city government’s solution to the seemingly insurmountable fiscal
problem was not just by increasing tax rates. More importantly, it is exercising a strong
political will and creating a conducive environment for all taxpayers in one of the highly
urbanized cities in the country.
Different folks, different strokes 43
 EDUCATION

Free to Learn
The best way to empower people is through education.
Some city governments, despite their many concerns, extend as much assistance to what
could be the greatest investment they could do for the youth. This is by providing them,
especially the less fortunate, free education.
The Lipa City Public College (LCPC) operated by the city government offers free
education to poor yet deserving students of Lipa City and nearby towns.
The city government also ensures the improvement of the delivery of basic education.
In collaboration with Synergia Foundation, De La Salle Lipa and Department of
Education through the City Schools Division, it implements “Project K” which is short for
“Karunungan para sa Kinabukasan ng mga Kabataan.”
Funded by the Ford Foundation, the project aims to improve the quality of primary
education particularly the reading proficiency of Grades I-IV pupils. Specifically, it aims to
assess the quality of primary education in reading proficiency; determine areas for strategic
intervention; implement reforms in teacher preparation, teaching methods, curriculum,
and instructional materials; and device a mechanism for sustaining the efforts identified in
the first two objectives and for generating resources for possible replication and expansion
of the project.
The project started in 2002 and will run until 2006.
In the case of Iloilo City, education also remains the top priority. The city government
provides scholarships to deserving yet financially incapable students to pursue college
or enrol in Technical and Vocational Education and Training (TVET) courses. The
Technical Institute of Iloilo City provides free technical and vocational education to
children of poor families.

Public consultation is also the
tool of choice of Iloilo City. In 1998,
the LGU got the public’s participation
in coming up with ways to combat
urbanization issues. A series of
planning workshops was conducted
to come up with the Comprehensive
Land Use Plan (CLUP) for 1998 to
2010. Various sectors that include
the academe, NGOs, people’s
organizations, church, banking
institutions, business clubs, civic clubs
and other professional clubs were
actively involved in these planning
workshops. The CLUP was also
formulated in close coordination with
the four neighboring municipalities.
Lipa, on the other hand, focused
on institutional capability building
through VILMA’S MBN. The project
hopes to make barangays self-reliant
and strong through orientations,
consultations, and capability-building
trainings.
Olongapo instituted reforms
and launched campaigns and projects
championed by its residents. Residents
also had a highly ingrained civic
consiousness, sense of duty, and
volunterism.

44 State of Philippine Population Report 2004

 Urbis 5 Making Cities Work

PEACE AND ORDER

Taking care of business

A peaceful environment is always a perquisite for development. The
rights of all groups and individuals regardless of gender, social status,
political belief, and religion have to be upheld to maintain societal order.
However, maintaining peace and order in a community does not
always have to be the sole responsibility of law enforcers or the police. In
fact, it is through closely working with the various stakeholders in the
community when peace and order can be truly achieved.
The Lipa City Police Station (LCPS) has been receiving support from
the city government and barangay-based organizations/task forces/
groups. Despite the shortage in human resource, the LCPS has managed
to improve its crime solution efficiency rating (CSER) through the years.
Their labor began to bear fruit when they won third place in the PNP
National Headquarters’ search for the Best City Police Station in 2002.
Similarly, the Iloilo City Police Office (ICPO) has managed to
deal with peace and order problems through its community oriented
policing system (COPS). The system is guided by the principle, “The
Community is the Police and the Police is the Community.”
The barangay tanods take care of the crime intelligence while the
police provide firearms.
This strategy also proved to be successful with a sharp decline in
reported crimes since the early 1990s. Recently, the ICPO was adjudged
as the Best City Police in 2003.

Filling up the coffers
How much and how many services a
city can provide its constituents largely
depend on its revenue. This is why
cities are aggresively boosting their
revenue generation efforts.
Constrained by a five-year tax
moratorium, Tagum intensified its drive
to perk up local revenues through
tax mapping, one-stop shop for tax
collection, and the establishment of a
Revenue Task Force. This Task Force
facilitates tax collection by bringing the
renewal right at the clients’ doorsteps.
Lipa also came up with a one-
stop shop for the processing of the
mayor’s permit and paying taxes. The
city invested on computerization to
encourage residents to pay their taxes
correctly and promptly.
Tagbilaran, like Lipa and Tagum,
also has a one-stop shop center
for taxpayers. Satellite centers for
tax collection are also established
within the city to make payment easy.
Delinquent taxpayers are sent demand
letters and non-compliance means that
their names will be published in the
local newspaper at the end of the year.
There are also incentives such as the
20 percent discount on real property
tax given to early taxpayers.
Olongapo, with its strong political
leadership used its savings to improve
its service delivery and enhance
revenue generation by establishing
a one-stop shop for business
permits, licenses, and tax payments;
computerizing its real estate tax
assessment, and upgrading the city-
owned electricity distribution facility to
cut down on losses.
Iligan capitalized on information
technology.It benefited from the Tax
Revenue Assessment and Collection
System (TRACS, a software that
hastens identification and collection
of due revenues). The city also took
advantage of the geographic information
system (GIS) to identify new businesses
and commercial areas more easily.
These are in addition to its one-stop
shop for tax collection and revisions in
property assessment and revenue code.
Progress is the ultimate goal and
urbanization and the accompanying
population issues are the probable
outcomes. If a city’s dream is to
progress, it must be prepared to face
the inevitable challenges.
It may be that there are different
strokes for different folks but the
bottomline is for governance to be
responsive to the needs of the people.

Different folks, different strokes 45

 Urbis 5 Making Cities Work

LIPA
Lipa: Coping with Urbanization
General Boom boom Because of this, Lipa has attracted

Facts
T
he first-time visitor would find it difficult to think multinational companies such as LIMA
of Lipa as an agricultural city with its busy streets The city’s booming business economy Industrial Estate, PKI, and Nestle
lined with retail trade shops and the occasional may be attributed to its strategic Philippines. In turn, they have attracted
mall or shopping center looming in the horizon. location. It is only one and a half migrants from near and far. From
Land area 20,940 ha
Industries Trade, services, poultry, Many would probably be surprised to know that Lipa hours away from Metro Manila and 30 1995 to 2000, within which the LIMA
livestock, agriculture
Products Coffee, coconut, rice, corn,
City is comprised of more than 70% agricultural land. minutes from Batangas City, where Technology Park was established,
sugarcane However, Lipa’s agricultural activities are no longer so an international port is located. Thus, Lipa’s population growth rate more
Charter year 1947
Population 218,447 (2000) intensive. An increasing number of Lipeños are engaging Lipa is able to get the spillover of than doubled from the previous
Population growth rate 4.50% (1995-2000) in commerce and trade, which they believe to be more development from these two more period’s average. From 2.12% to 4.5%,
Population density 10.43 persons/ha
Crude birth rate 23.79% (2000) profitable. The commercial sector has become increasingly established urban centers. Moreover, this figure is very much higher than
Poverty incidence 11% (2000)
Total income PhP422 M
important to the city’s economic development. From the Lipa’s centralized location makes it an the growth rate of Batangas City,
Education Enrolment data (2003-2004) 30 hectares devoted to commerce in 1995, it now occupies ideal financial center of Region IV as the province of Batangas, Region IV,
31,139 (Elementary)
15,998 (High school) 105 hectares—a clear indication of Lipa’s thriving business well. There is an increasing number of and the entire country. Thus, Lipa’s
Source: Techinical Report on Population, Urbanization and Local Governance, a
sector. banks in the city—yet another clear booming economy is accompanied by a
joint project of POPCOM and PIDS. indication of its favorable business booming population, which can also be
environment.

18 Tales of 8 Cities 19
 Urbis 5 Making Cities Work

Population Trend
250,000

200,000

150,000

100,000

50,000

0
1900 1918 1939 1948 1960 1970 1980 1990 2000
Year

attributed to natural increase. It is now
7th among Philippine cities in population
growth increase.
Urbanization issues
With the growth of its business sector
and the rate of in-migration, it is clear
that the city is urbanizing. A very good
indicator of well-managed urbanization
is ensuring tenure in housing—
especially among the urban poor.
However, in Lipa’s case the squatter
population had more than doubled
between 1987 and 1998 and continued
to increase further in 2000. This
implies the need to improve security
and housing tenure.
There is also the increasing
amount of garbage to contend
with. Lipa generates 24 truckloads
of garbage a day. This does not
include the waste generated by the
40 barangays not covered by the
garbage collection. An Environmental
Planning and Management (EPM) Unit
was institutionalized by the city’s
Environment and Natural Resources
Office in 2001. In principle, the
CENRO should continue the EPM
project activities, i.e., to implement
them in as many barangays as possible
but it did not materialize. If activities
have pushed through and have
been supported by local officials,
barangays not covered by the garbage
collection could have designed their
own community-based solid waste
management plan.
Proving its worth
Despite these headaches with obvious
potentials to become migraines in the
future, the city government of Lipa is
coping well with its health, peace and
order, and education sectors–even
if its resources and manpower are
not commensurate to its increasing
population. For instance, although the
city needs 167 more police personnel
to satisfy the 1:1000 police-to-
population ratio, the Lipa City Police
Station still managed to bag the 2nd
runner-up place in the search for
“Best City Police Station” by the PNP
National Headquarters in 2002.
Lipa also bagged the Department
of Health Sentrong Sigla regional award
in 2001 for its five district health
centers (DHC)—all equipped with
facilities, personnel, supplies, and
laboratory. These DHCs offer various
programs on health—such as family
planning, which includes premarital
counseling.
Also noteworthy is Lipa’s emphasis
on education, which is the top priority
in the 10-point agenda of the city
government. This city has various
projects and programs to improve its
educational system, including the free
college education it offers with Lipa City
Public College (LCC) to less privileged
yet deserving students of Lipa and other
nearby towns. This operation bagged the
second place in the first League of Cities
of the Philippines Best Practice Award.
Financing the coping
mechanisms
Lipa’s ability to respond to the
residents’ growing demand for basic
services is crucial. Recognizing the
need to generate funds, it has adopted
measures to boost income generation.
Aside from tax amendments, the city
government set up a one-stop shop
project where representatives from
all the offices concerned with the
issuance of Mayor’s permits and taxes
are assembled in one place to process
permits faster—only a day or two.
This generated PhP20 M for business
permits alone in 2001.
Another innovation is the
collection of the environment
management fee, which is a user’s fee
intended for the city’s comprehensive
waste disposal and management
system. It is collected by including it in
the monthly household water bills. The
fee collected is remitted to the City’s
Treasurer Office in the nature of a
trust fund form the CENRO operation.
Since April 2000 until October 4,
2004, a considerable amount has been
collected and it has been a source of
funding for the CENRO operations.
United we stand
Besides Lipa’s moves to cope with
growing population and urbanization,
the Lipeños’ strong sense of
cooperation is worthy of note. Various
cooperative and civic organizations
actively participate in local government
activities. However, there is still a
need to increase the participation of
the grassroots community in local
governance.
Unity and cooperation are values
that the city government hopes to
cultivate among its citizenry. The LGU
provides the enabling framework
for participatory governance. This is
evident from the launch of the Vibrant
and Innovative Local Managers’ Action
Toward Mobilizing Barangays in Nation
Building (VILMA’S MBN). The project
believes that a convergent approach is
needed in preparing and implementing
plans and strategies to streamline
and synchronize anti-poverty efforts.
VILMA’S MBN is viewed as a “catalytic
vehicle” that will bring Lipa to the list
of top ten cities.
On to the top ten…
The Asian Institute of Management
ranked Lipa City as 6th in the Philippine
Cities Competitiveness Ranking Project
in 2002. Although Lipa did not maintain
this position in 2003, it was still in the
list of top 13 cities among the 50 cities
in the country.
Yet as Lipa City gears toward
urbanization, it is faced with issues and
challenges, which together with its
potentials, will determine whether Lipa
remains a promising city or transforms
into a highly-urbanized one.

20 State of Philippine Population Report 2004 Tales of 8 Cities 21

 Urbis 5 Making Cities Work

OLONGAPO
Bouncing Back: a Second Life for Olongapo
‘Thank you, Joe?’ tripled to 45,330, registering an annual mostly females and of child-bearing
growth rate of 10.23%. By conservative age. Olongapo is a good example of
General
Facts
However, there are those who estimates, this is quite high. a city where there is feminization of

O
longapo, with its rugged mountains, pristine look at the US military bases as the Because of this, having only been migration.
beaches, and virgin forests is a nature lover’s boon of Olongapo. It was during declared as a municipality in itself in Migration heightened in the late
paradise. No wonder it has been a favorite the establishment of the bases 1959, Olongapo was chartered as a city 1960s with the booming activities in
Land area 185 km2 destination for many tourists. And with the that Olongapo experienced rapid in 1966. the naval base.
Industries Trade, manufacturing rise of world-class industrial parks and a seaport that rivals urbanization. The inmigration that occurred
Charter year 1966
Population 194,260 (2000) the cramped South Harbor in Manila Bay, Olongapo is now Olongapo was once (circa 1948) ‘Feminization’ of migration contributed to rapid population
Population growth rate 1.56% (2000)
Population density 1, 050 persons/km2
again making waves as entrepreneuers and traders swamp a quiet and rustic barangay in Subic growth. In fact, migrants comprised
Crude birth rate 2.4% (2001) the area. with only 14,090 inhabitants. Twelve The shoot-up in the city population about 45.9% of the population 10 years
Crude death rate 0.4% (2001)
Net migration -4,988 (1995-2000) Olongapo is also known as “Sin City” because of years later and nine years since the and its consequent rapid urbanization old and over in 1970. In 1974, the city
Total income PhP369,702 (1994) rampant prostitution when the US military bases were still development of the Cubi Naval Air from 1950 to 1974 were attributed registered an unusually high rate of
Source: Techinical Report on Population, Urbanization and Local Governance, in the area. This is a part of Olongapo’s history that many of Station, its population more than to the high natural rate of increase natural births and a sizeable number of
a joint project of POPCOM and PIDS.
its townsfolk would rather forget. in population and influx of migrants, illegitimate births.

22 Tales of 8 Cities 23

Population Trend
250,000
200,000
150,000
100,000
50,000
0 were soon created in the freeport,
1948 1960 1970 1980
As expected, when activities in
the military bases dwindled because
of the signing of the Vietnam ceasefire
agreement in 1973, the local economy
of Olongapo took a downturn.
Inmigration decrease beginning in
1975, with people even trooping out
until 1980. Furthermore, the actual
annual population growth rate of the
city also dropped from 6.42% in 1975
to 1.24% in 1980 and 2.14% in 1990.
After achieving its peak as an
urban center in 1983, Olongapo
stopped being a favored destination
of migrants. From 1975 to 1990,
urbanization slowed down.
Wrath of Mt. Pinatubo,
pull-out of American troops
The eruption of Mt. Pinatubo in 1991
and the pull-out of American troops
from the Subic Naval Base in 1992
further crippled Olongapo’s already
limping economy. In fact, employment
rate was strikingly lower when the
military bases closed. Its employment
rate averaged 78% in 1990-1991, 72% in
1992-1993, and 69% in 1995.
The 1995 census recorded
the first-ever decline in the city’s
population and population density.
24 State of Philippine Population Report 2004
1990 2000
Economic turnaround
This “deurbanization” was turned
around by its leaders, who wanted to
prove that Olongapo was more than
just the US military base. The naval
facility was immediately converted into
an industrial complex and freeport, in
line with a 1981 development plan. The
city mayor was appointed as the first
chair of the Subic Bay Metropolitan
Authority (SBMA).
The development of the
freeport revived the city’s economy.
Manufacturing jobs started to increase
and employment rose again. Even
females moved into this line of work;
they were accommodated in parts
assembly and garments factories. The
employment rate improved to 71% in
1996-97 and rose to 81% in 1998-2001,
even higher than the 1980 levels.
Government responses
To combat the negative image of
Olongapo, the city government
instituted reforms that showcased the
strengths of the city and its people. It
pioneered an integrated solid waste
management program that relied on
user fees for operating expenses. After
an extensive information campaign
that highlighted civic responsibility,
residents adopted the program
wholeheartedly. This resulted in
arguably the cleanest city in the
country.
The city also initiated color-coding
of public transportation that reduced
colorum vehicles and ensured safety in
the streets.
Community slogans were also
placed in public spaces that rallied
the residents around government
programs and priorities such as “Keep
Olongapo City Clean”, “Self-Help,
Self-Reliance and Cooperation”, “Aim
High Olongapo”. In 1997, as economic
activity picked up, “Redevelop,
Reurbanize, It’s Our Time” was the
battle cry. The residents identified with
the slogans and made them their own.
Even with the presence of the
naval base, an STD testing center
was established to ensure the health
of entertainment workers, who
were required to undergo weekly
examinations. Affected workers were
immediately treated. Establishments
were routinely checked for compliance
of their workers and were closed if
they violated the mandated health
procedure. This program successfully
kept HIV infections at bay and
controlled the spread of sexually
transmitted diseases.
With the turnover of the military
base, volunteerism was encouraged
to protect and maintain the facilities.
Residents physically cut grass, guarded
entry and exit points, cleaned buildings
and rooms, among others. The
volunteers were given priority in job
placements.
The pull-out of the bases imperiled
the city’s finances. The resulting
economic hardship forced residents to
use existing public services, aggravating
the need for additional facilities.
The city subsidized the medical fees
of indigent patients, which include
residents from the city and from
nearby areas.
Because the city government
previously succeeded in addressing
public needs, bouncing back was
not an uphill battle. To maintain
the quality of life of its residents,
the city used its savings to improve
infrastructure and service delivery. It
helped that significant outmigration
set in immediately and that new jobs
easing the strain on service delivery.
Moreover, the SBMA leadership
supported the city by donating medical
apparati and shouldering the PhP80
million dredging and desilting of city
rivers and creeks.
The city undertook steps toward
self-reliance. Thus, an infrastructure
program was initiated in full blast to
complement existing tourism facilities
and to promote the city as an all-year-
round services and leisure center. The
city even availed of a PhP60 million
loan in 2000 and 2001 to help finance
projects.
This was complemented by
enhanced revenue generation through
the establishment of a one-stop center
for business permits, licenses, and tax
payments, the computerization of real
estate tax assessment and the use of
GIS tax mapping, and the upgrading of
facilities at the city-owned electricity
distribution utility to cut down on
costly system losses.
Urbis 5 Making Cities Work
Bouncing back
Despite the ambitious plans, the city
continues to improve the quality of
life of its residents by constructing
additional classrooms, establishing a
city college, providing scholarships to
deserving students from high school to
college, constructing additional wards
and private rooms at the city hospital,
and upgrading all barangay centers to
Sentrong Sigla standards. Population
management has not taken a backseat
either, with the city fully supporting
a family planning program that does
not discriminate between artificial
and natural means. This has led to a
continued increase in the number of
registered current acceptors. The city
population office spearheaded this
effort with active support from civic
organizations.
Through the years, the city
consistently reaped honors for its
innovative approaches and consistency
in high quality service delivery. It
garnered numerous Galing Pook awards,
Clean and Green citations, the titles
Child-Friendly City and Healthy Public
Market, among others. In various years,
its police force, disaster coordinating
council, budget office, and barangay
officials (lupong tagapamayapa) have
been recognized as the best local
government unit departments in the
region and in the country.
The city’s remarkable turnaround
from a “sin” city to a model city and
from reliance on the former military
facility to finding its own competitive
niche is a lesson in local governance that
deserves to be emulated not because it
pays tribute to an equipped leadership
but because it celebrates the strength
and resilience of its residents.
Tales of 8 Cities 25
 Urbis 5 Making Cities Work

TAGBILARAN
T
General
Facts agbilaran is on its way to the top. Years of
suffering from substandard water and power
systems, plus its nearness to the popular
Tourism Catapults Tagbilaran
Land area
Products/industries
32.7 km2
Handicrafts, tourism, Retail,
Metro Cebu had retarded Tagbilaran’s rate of
progress. But now that Bohol and Panglao Islands have been
into Limelight
accommodation, transport, identified in the Philippine Tourism Master Plan as major
manufacturing, meat processing,
automotive machine shops tourist attractions, the city’s development is picking up
Charter year
Population
1966
89,037 (2003)
pace. Ecotourism, now identified in Bohol’s Medium-Term Developing its front act
Population growth rate 3.26% (2000) Development Plan as one of its three priority growth areas, ability
Crude birth rate 21.2% (2002)
Crude death rate 3.93% (2001)
demands that Tagbilaran play a significant role.
Net migration rate 37.03% (2003) Tagbilaran is not a major tourist
Per capita income PhP 5,954
Poverty incidence 40% (1997) destination. Most of the popular tourist
Total Revenue PhP101,606,376 (2003) attractions in Bohol Province are
Education Enrolment rate (2003-2004):
60.80% (Elementary) outside the city. But its accessibility
59.56% (High school)
makes it a necessary and major
Source: Techinical Report on Population, Urbanization and Local Governance, stopover to tourist destinations in the
a joint project of POPCOM and PIDS.
province. Tagbilaran is only one hour

26 Tales of 8 Cities 27
 Urbis 5 Making Cities Work

Population Trend
100,000
80,000
60,000
40,000
20,000
0
1900 1920 1940 1960 1980 1990 2003

and 20 minutes away from Cebu by
test craft and 45 minutes away from
Manila by plane.
It is this characteristic as the
gateway to the province that Tagbilaran
hopes to exploit. The city’s efforts now
focus on pursuing the development
of infrastructure, services, and
facilities and creating the right tourism
atmosphere. Improvements in the
Tagbilaran Airport and Tagbilaran
City Tourist Pier have enhanced its
accessibility. Enhancements in its social
services delivery have also been made.
To finance this tourism-oriented
development strategy, the city has
become more aggressive in its tax
collection. Treasury satellite centers
for tax collection have been established
within the city to make paying easy.
Delinquent tax payers are sent demand
letters and their noncompliance leads
to the publication of their names in the
newspaper annually. A 20% discount on
real property tax for early taxpayers
was also introduced as an incentive.
The city’s aggressiveness in tax
collection has increased the locally
sourced income from PhP71.6 million
in 1999 to PhP101.6 million in 2003.
This income, plus the additional funding
from the national government thru the
internal revenue allotment, has enabled
Tagbilaran to start more developmental
projects. More than 50% of the city’s
development fund is set aside for
infrastructure improvement.
Ensuring the spotlight
doesn’t dim
But all these efforts to create the
right tourism atmosphere will not
succeed if the city’s population remains
unmanaged. Tagbilaran is yet to
prepare a comprehensive population
management plan. Although the
number of births declined in the last
two decades, the city’s crude birth rate
is still higher than that of the whole
province. This means that Tagbilaran
has not been able to significantly
reduce its birth rate as Bohol, whose
crude birth rate was once 3.28% points
higher than Tagbilaran’s in 2000.
Tagbilaran City has a young
population—more than 60% of its
citizens are below 30 years of age.
Statistics show that it will retain this
young population for some time but at
a declining rate. Nevertheless, without
any indication of a comprehensive
population plan, unmanaged population
growth may occur. This will definitely
hamper any development in tourism,
however complete other preparations
are to meet the demands of the
tourism market.
Unmanaged increase in population
puts pressure on limited resources
available such as employment, housing,
and safe water supply. It also results in
congestion and increase in squatters.
This is undesirable, especially for a city
whose major undertaking is to attract
tourists. Tagbilaran must seriously
incorporate population concerns in all
aspects of local development planning
and program implementation.
For an emerging city on its way
to the top, Tagbilaran must make sure
that it does everything to guarantee
that it indeed gets there.

28 State of Philippine Population Report 2004 Tales of 8 Cities 29

 Urbis 5 Making Cities Work

TAGUM
Tagum at the Crossroads

T
General
Facts agum City’s strategic location earned for it the
name, “The City of Golden Opportunities”. The
city, being at the crossroads of the northern
When the banana industry weakened
sometime in the 80s, the discovery
of mineral resources in nearby Davao
Fated urbanization

Because of the many livelihood

population growth was attributed
more to natural increase stemming
from a persistently high birth rate.
regions of Mindanao and of the Region XI capital, transformed Tagum into the focal point opportunities that Tagum has to Efforts to manage the population
Davao City, has become the commercial and trading hub and of buy-and-sell activities for small-scale offer, there was an influx of migrants was done in 2001-2003 when males
Industries Trade, services, agriculture
Products coconut, banana, rice, the favored destination of many in search of a better life. gold producers and miners. especially in the 90s. were encouraged to voluntarily
metalcraft, jewelry, and The myriad of industries in Tagum includes coconut, Business establishments and other Tagum City’s population grew underwent vasectomy.
construction
Charter year 1998 banana, and rice production, furniture, metalcraft, jewelry, commercial activities soon flourished annually at almost 3% in 1995-2000. Although the population of Tagum
Population 179,531 (2000)
Population growth rate 2.93% (2000) and construction. bringing about rapid urbanization This is higher than the national, has been increasing, total population
Population density 935 persons/km2 during the late 80s. Urban population regional, and provincial growth growth rate has consistently slowed
Crude birth rate 25.6% (1999)
Crude death rate 4.2% (1999) growth increased to as high as 10% rates. The two main sources of the down throughout the censal periods.
Net migration 1,005 (1999) per year during this period. Shortly city’s population growth are natural In contrast, urban population share
Total income PhP335 M (2002)
thereafter, Tagum became a city in increase and net migration. The recent to total population radically increased
Source: Techinical Report on Population, Urbanization and Local Governance,
a joint project of POPCOM and PIDS. 1998. It is the seat of government of from less than half in 1980 to 76% in
Davao del Norte. 1990.

30 Tales of 8 Cities 31

Population Trend
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0 accommodate about 100 waiting passengers. On average, around 150 buses and 800
1970 1980
Year
To ease congestion in urban areas,
there is a plan to relocate the city hall
to a less densely populated area. This
would disperse economic activity from
the poblacion to other parts of the city.
From agriculture to trade
and services
Trade and services dominate the
local economy of Tagum, comprising
as much as 95% of its total new
Department of Trade and Investment
(DTI)-registered investment in 2003.
Likewise, in the same year, the city’s
employment share in Davao del
Norte’s total employment in trade and
services was 58%.
On the other hand, the share
of agriculture in the investment pie
shrank to 2%. Given the slowdown in
the banana industry and the changing
structure of the city, less investments
32 State of Philippine Population Report 2004
Total Population
Urban Population
1990 2000
is turning up for the agriculture sector
through the emerging banana chips
industry that has the potential to
further boost the rural economy of
Tagum. Nevertheless, agriculture is
still an important sector for the city
with 17 of the city’s 23 barangays still
engaged in agricultural production.
Tagum, along with Panabo City, was
designated as the Provincial Agri-
Industrial Center (PAIC) for Region Xl.
Head to head with the
challenges of urbanization
The local government of Tagum
did not leave any stone unturned in
responding to the changing demands of
urbanization.
Improvements have been made
in infrastructure, education, health,
and water supply. To fund these
efforts, the city heavily relied on its
internal revenue allotment (IRA) and
strengthened its drive to generate
other sources of local revenues
particularly from its economic
enterprises. The city adopted a five-
year moratorium on its tax rates to
cushion residents from an abrupt
increase in taxes as Tagum was
elevated to a city.
The tax moratorium leaves
little room for local revenue-raising
measures but the city’s economic
enterprises made it possible to gain
some fiscal elbow room. In fact,
economic enterprises contributed
about 12% of total income since 1999.
These enterprises, such as the public
market, slaughterhouse, overland
transport integrated terminal, livestock
auction center, cultural and trade
center, and asphalt plant are all earning
profits.
Meanwhile, the maintenance and
expansion of the city’s road network
are the main city expenditures. In fact,
large capital outlays in 1998 were due
to enhancement of roads and other
structures. Although construction
and maintenance of national roads are
under the jurisdiction of the national
government, Tagum has contributed
to paving portions of the national
highway passing through its territory
to speed up the development of its
main corridor. However, much of the
barangay roads are still unpaved while
about only a little over half (52%) of
its city roads are paved. Data in 2000
showed that around 89% of national
roads and 15.5% of provincial roads
traversing Tagum are already paved.
The City also has other notable
projects in the delivery of social services.
Part of the social services provided
by the City Government is education.
The City Government took an active
stance in increasing the number of
classrooms. The City Government
funded majority of the classrooms
which followed the more spacious and
aesthetic “Tagum-style” classroom.
Notwithstanding, student-classroom
ratio for both the secondary and
elementary schools still fall short of
meeting the standard ratio.
The health and potable water
supply needs of the City are the most
problematic.
In 2001, to cope with only one
doctor and 12 nurses in its two health
centers the City adopted the referral
system wherein barangay health workers
first screened patients in the barangay
and determined who will be referred to
the health centers in the poblacion.
Meanwhile, the City Government’s
remarkable management of its finances
was recognized when it was awarded
the “Most Outstanding LGU in Budget
Administration” in 1999 and 2000.
Some of the innovative undertakings of
the City Government are tax mapping,
one-stop shop for tax collection, and
a Revenue Task Force, which visits
establishments and brings the renewal
right at the doorsteps of their clients.
This is apart from actual monitoring
and inspection of activities to validate
tax declarations of businesses.
Urbis 5 Making Cities Work
APPROACH TO REVENUE GENERATION
All Roads Lead to Tagum
Two major road networks—the Davao-Mati and the Davao-Agusan national highways—
intersect at the heart of Tagum City. This makes the city very accessible—being at the
crossroads—whether going to the northern regions of Mindanao from Davao City or
to neighboring provinces such as Compostela Valley and Davao Oriental. Operating a
transport terminal capitalizes on its geographical advantage.
The Tagum City Overland Transport Integrated Terminal or TCOTIT was
constructed in 1997 through a loan. It has 24 bays for buses and a lounge that can
public utility jeepneys load and unload passengers at the terminal daily. Terminal fees
are set according to passenger capacity and destination. Toll fees are also collected from
multicabs, jeepneys soliciting passengers, and vans and cargo trucks doing business in the
terminal area. Spaces for businesses are also rented.
But demand is only half the story. Since becoming a component city in 1998,
Tagum aims to establish and operate viable and stable economic enterprises. By adopting
business practices and management styles of private enterprises, fiscal discipline is instilled.
The revenues generated are earmarked for the enterprises’ administrative, operating,
improvement and debt-servicing expenses.
Going a step further, Tagum recently enacted a Code of Economic Enterprises,
which refines the various ordinances governing the operation of its economic enterprises—
the transport terminal, public market, livestock auction center, cultural trade center,
slaughterhouse, and public cemetery. The Code serves as the “bible” for the overall
management of the city’s economic enterprises.
New provisions include the creation of the Economic Enterprises Regulatory Board
which ensures and oversees the effective and efficient management of the enterprises. Two
private sector representatives—one from an accredited stallholders/vendors organization
and another from a consumers’ group—are given a seat on the board. To date, all of
the city’s economic enterprises cover more than the operation and maintenance costs.
Self-sufficient and earning, Tagum’s economic enterprises have emerged as a major local
revenue source.
Attempting a more
responsive governance
The different City Council Committees
teamed up with other local officials
in visits to barangays to monitor the
implementation of ordinances passed
and other activities. The City Council
also has a program in continuing legal
education of purok leaders by inviting
speakers.
Although the city government
implemented concrete projects in
addressing the challenges posed by areas in Davao del Norte, shows that
Tagum’s urbanization, its Governance there is still a need for a stronger
for Local Development Index feedback mechanism to determine
(GOFORDEV) wherein it ranked the real needs and concerns of its
second to the last in the six pilot constituents.
Tales of 8 Cities 33
 Urbis 5 Making Cities Work

ZAMBOANGA
Zamboanga: the Gateway to
General Better Opportunities?
Facts
T
he colorful and beautiful native vintas reflect the
richness and diversity that is Zamboanga City.
Zamboanga City is the hub of Impact of ethnic strife in
Contributing to these richness and diversity are
Southwestern Mindanao for trade, Mindanao
the mixed races that had settled in Zamboanga.
transportation, communication,
Aside from domestic migrants, there were the Chinese,
education, government, tourism, and From 1970 to 1980, the City’s
Malays, and Spaniards who for a time stayed in this city.
Land area 148,338.49 ha religion. population growth rate attained its
Industries Trade, agriculture, fishery Indeed, migration has played a key role in shaping
Products Coconut, seafood As the gateway to and from highest at 5.8%. In the 70s urban
Charter year 1936 Zamboanga City. A multitude of migrants from Luzon and
Mindanao, Zamboanga is accessible growth soared as a result of migration
Population 601, 794 (2000) Visayas came to Zamboanga especially when the Philippine
Net migration 26, 657 (1995-2000) both by sea and land. Its main source from nearby rural areas.
Poverty incidence 53% (2000) Government launched a campaign promoting Mindanao as
Total Income PhP974, 136, 332.08 (2000) of income are process aqua marine In the 1980s, the population
“The Land of Promise”.
products, which account for 78.5%. density of the city was twice that for
Source: Techinical Report on Population, Urbanization and Local Governance,
a joint project of POPCOM and PIDS. western Mindanao (Region IX) and

34 Tales of 8 Cities 35
 Urbis 5 Making Cities Work

Population Trend
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
00

18

39

48

60

70

90
80

00
19

19

19
19
19

19
19
19

20
Year

one and a half times more than the
national average. In 2000, Zamboanga’s
population density was five times the
national rate. The dramatic increase
in population was attributed to high
natural increase and greater net
migration over the two decades.
Almost 60% of Zamboanga’s population
in 2000 are 24 years old and under.
Some native Zamboangenos saw
the influx of migrants as a deliberate
and systematic resettlement program
of the government. This resulted in
conflict and disputes in land ownership
between the migrants and the native
inhabitants. Following the 1972 Martial
Law declaration, 45,000 Muslim Filipinos
fled the ethnic strife in Mindanao.
Despite this, however, migrants
still trooped to Zamboanga because of
its nearness and accessibility to Sabah,
Malaysia where Filipino southerners
sought economic and political refuge.
As of 2002, approximately 500,000
Filipino Muslims ran away to Malaysia
to escape the long-standing conflict
between Muslim insurgents and the
Philippine military.
In addition, when the peace and
order situation in nearby Sulu, Tawi-
Tawi, and Basilan worsened during
1990-1995, many moved to Zamboanga
City.
Compounding these population
movements were the returning
migrants composed of deportees from
Malaysia called the “halaws” and Badjaos
who went home to Zamboanga when
they failed to find better opportunities
in Manila.
As a result of the urban sprawl,
Zamboanga City is now troubled with
traffic congestion, slums, deterioration
of quality and water levels, lack of
proper disposal and waste management
system, and degradation of major rivers
and pollution of marine life.
Aggravating these is the state
of peace and order which factored
in its declining investments. Also,
the city’s existing road network in
the urban core is inefficient because
the roads are narrow with limited
interconnectedness.
Consequently, it is said that
Zamboanga City is now failing to
live up to its image as “The City of
Flowers”.
However, these concerns do not
remain unaddressed. In its 1997-2012
Master Development Plan, the city
recognized the need to persistently
pursue efforts to remove the root
cause of dissidence and internal
conflicts by improving the delivery of
basic services to the poor. The newly
elected Mayor, Honorable Celso L.
Lobregat, emphasized the need for
the improvement of the plight of
the less privileged and marginalized
sectors of the society and bringing
the government closer to the people.
To help the “halaws”, the City
Government set up the “One-Stop-
Shop Crisis Assistance Center” to
assist repatriates in processing and
documentation of travel employment
papers, including the issuance of
free passports. The regional line
agencies, led by the Regional Disaster
Coordinating Council, provide several
relief and emergency programs for the
“halaws” not only in Zamboanga, but
throughout the region.
In addition, the AIDS Council was
created to help sex workers who were
reported to have been forced into
prostitution because of poverty.

36 State of Philippine Population Report 2004 Tales of 8 Cities 37


Urbanization Does Not Happen by Chance
Making Cities Work
MANAGE URBANIZATION AND
DEVELOPMENT
E
veryone aspires to be in power.
However, only a few are given
the chance.
4
Winning the election may have
come off easy for local public officials,
but the true challenge lies when they
buckle down to work and chart the
development of their municipality or
city in the next three or six years.
Promises and plans may vary from
one official or city to another. On the
other hand, if we are to look closely,
they all seem to thread the same
road—the road to urbanization.
Urbanization, which is sometimes
equated with industrialization and
development, continues to effect
46
changes in the lives of the people and
key cities in the country. Urbanization
generally aims to improve our
present day living, provide more
jobs, and deliver more goods and
services. Undeniably, however, it has
its ugly side. Problems on poverty,
burgeoning population, environmental
destruction—to name a few, have also
been hounding any urbanized society in
the country.
It is in this light that local public
officials and units should be aware of the
immense power that they yield. Power,
if used wisely, could spell progress for
any growing city in the country.
“Whoever would change men must change the conditions of their lives.”
For urbanization to succeed,
the city government should focus on
the areas of fiscal management and
development planning, and policy
development. Successfully fought
battles are not achieved overnight,
but with careful planning and strategy.
Development should also be seen in
this light.
Inside the treasure chest
A plan is good only on paper if there
are no resources to achieve it. Any city
government would agree that essential
to any development plan is a stable
resource base. But any city official
would find it hard to generate the right
amount of money if more than half of
the people in the city have just enough
to live modestly.
In the case of Tagbilaran City and
Iloilo City, an efficient tax collection
is the key. One-stop shops and tax
collection centers were established.
While the city government is running
after delinquent taxpayers, it seeks
to improve its collection offices and
facilities, and come up with incentives
for regular taxpayers.
– Theodore Herzl
Generating revenue need not
mean increasing taxes. It is finding
measures to collect the amount that
the city government should be getting
in the first place.
From words to action
Planning the growth of a city is
no longer the sole role of the city
government. The various stakeholders
and sectors in the city are now well
represented in the decision-making
process.
Long before Iloilo City became
a chartered city on July 16, 1973, its
economy already started to flourish
during the American regime because
of its booming sugar industry. Through
the years, roads and port areas were
Urbis 5 Making Cities Work
constructed. Job opportunities became
available to locals. Migrants from other
provinces found jobs in this growing
city.
A total of 2,495 business
establishments registered with the
Department of Trade and Industry
as of 2003. Canteens, karinderia and
restaurants ranked first, followed by
semi-skilled services.
To address the demands of
urbanization and development, the
city government solicited public
participation. These sectors were
identified: economic, infrastructure,
land use, environment, social, local
administration, and demography. The
private sector also participated actively
in the planning and implementation
of projects. These include the
Making Cities Work 47
 Urbis 5 Making Cities Work

academe, NGOs, POs, church, banking
institutions, business clubs, civic clubs,
and other professional clubs.
This concerted effort gave birth
to the Comprehensive Land Use Plan
(CLUP) for 1998-2010.
DAVAO CITY
Lipa City, on the other hand, bids
as the “emerging city for all seasons,”
a take-off from the well-deserved
accolade heaped upon the city’s
current mayor, Vilma Santos, known in
the history of Philippine Movies as the
“star for all seasons.”
As early as 1887, Queen Isabella
of Spain elevated the town of Lipa to a
city with the name “Villa de Lipa” due
to the prosperity brought about by the
booming coffee industry (The coffee
beans are called “Barako”). For some
unknown reason, the city was reverted
to a municipality in 1895.
The new town, which was once
topnotch agricultural product and
revenue earner.
Fifty-two years later, the town
again became a city—this time with its
own charter under Republic Act No.
162 sponsored by then Speaker Jose
P. Laurel, Sr. Lipa was inaugurated as a
city in 1947.
If there is an agricultural city that is
products are coffee, coconut, and rice.
Meanwhile, there were 137 poultry and
livestock raisers as of 2000.
Complementing this impressive
agricultural profile is the equally
impressive business profile totaling
5,276 as of 2003. Majority of the city
business is on retail trade and services.
The city’s progress would be in vain
However, coming up with many
laws is no guaranteed solution to an
ailing community. It is when the city
government exercises political will
when everything begins to take shape.
The steel will of Olongapo’s
leaders helped turn around the city’s
ailing economy. With strong resolve,
the city government took steps to

Kaugmaon Center for Children’s Concern a city, continued to develop just the
same with “barako” coffee still its
enjoying rapid urbanization growth, Lipa
City fits the description. Its top three
if it does not trickle down to the people.
Development, as exemplified
institute reforms that successfully
transformed Olongapo into a city to
Formulation by these two cities, will be truly emulate.
Life is a stage. appreciated by the people themselves The strategies employed by the
You have to dance to the tune if you want to get the attention. because they are working for it. most successful cities in the country
This is the strategy used by the Kaugmaon Center for Children’s Concern are backed by the full implementation
Foundation in Davao City in implementing their adolescent reproductive health project.
They have put up youth centers which will serve as a shelter where the youth can Write what is right of policies by their city governments.
socialize and learn important life skills. They use the peer education strategy, which entails No miracle program or project
developing trained people to assist others in their peer group to make decisions about Any government program or project is is bound to succeed if the city
reproductive health issues. This is conducted either through one-on-one counseling or in
the Group Guided Interactions (CGI). anchored on a policy. government does not render its hand
The centers have been successful not only in getting adolescent participants but also Legislation, therefore, is a very to steer its resources and mobilize
youth organizations. Kaugmaon was also commended by the barangay by making it a crucial process. It should create a people to action.
member of the Barangay Council for Protection of Children and Youth.
conducive ‘environment’ before any If we want to see results, we have
Different sectors have also been mobilized to address adolescent reproductive health
issues. This led to a more efficient way of implementing reproductive and sexual health development plan could take place. to express our desire and take the
programs for the youth. Local government officials should take lead. Political will is needed to make
Topping all these strategies is perhaps the most interesting way of getting the youth
their role seriously in passing laws and urbanization work.
interested in reproductive health—through Interactive Theater.
The MAKAMALAY, a community theater group, was able to reach out to the wider making sure that these are concerns of
audience to deliver reproductive health messages. The whole community was able to watch the constituents.
and learn from the performances.
The nature of the theater presentations dictates that it can be done anywhere where
there are large, empty spaces—parks, basketball courts. The total number of performances
reached 26 with an audience of 4,000.
The group has been getting a number of requests from communities and networks
especially during fiestas and special holidays.

48 State of Philippine Population Report 2004 Making Cities Work 49


Lonely at the Top? Listen to the Vibrancy Below
BUILD FROM THE GROUND UP: WORK WITH PEOPLE
P
articipation is the most
essential ingredient of
development.
When city managers plan for
development priorities and policies,
the first and best management strategy
they can adopt is to seek out and
listen to their constituents. What
do they really need? What are their
aspirations and dreams? What can they
contribute?
When people are involved
in making decisions about their
community, they do not only feel a
strong sense of belongingness. They
50
gain the dignity of being partners, not
just beneficiaries of development. They
are empowered.
The stories of eight cities show
that more and more local governments
are appreciating and using participatory
approaches to listen to their
constituents.
Build on local initiatives and
contribute to peoples’ efforts
A wise city manager picks up from
where his constituents have already
started or builds on what they have
initiated.
The Metro Iloilo Development
Authority (MIDA) was formed because
business entrepreneurs in the early
1990s had the foresight to bat for a
metropolitan agreement between fast-
growing Iloilo City and its neighboring
municipalities to make governance
better. Their initiative was picked up
by the local government officials who
revived the concept of a metropolitan
Iloilo in 1996. A congressman later
lobbied for the mayors’ proposal in
Congress and successfully passed it as
a bill.
In 1998, the Canadian Urban
Institute started to support the
establishment of a council. It advocated
the value of interlocal cooperation
among local officials by sponsoring
their meetings, workshops, and study
tours here and abroad for them to
witness success stories of metro cities.
To establish the council, the
city enjoined the active participation
of all stakeholders. It conducted
consultative workshops, participatory
strategic planning workshops, and
public consultations with over 500
stakeholders from local government,
national government agencies,
business sector, and nongovernment
organizations. Today the MIDA is
recognized as a governance body in
Iloilo with staff support and funding.
Consult affected people and
strengthen communication
among stakeholders
LGUs have involved their constituents
quite extensively in land use planning.
This is very important because land
use planning guides zoning ordinances
on which real properties are assessed.
Better assessments can generate higher
incomes for the cities, thus bolstering
their economies.
In Iligan, the draft City Land Use
Plan (CLUP), which was approved in
2001, first passed through a series
of public consultations. This was
presented for review and feedback
to purok leaders representing their
barangays, labor groups, farmers,
teachers, students, and others.
The same goes with its City
Development Strategy (CDS) or
medium-term plan. The CDS passed
through a continuous feedback system
from various stakeholders who were
consulted using intercity and national
consultation workshops. Iligan is part
of the CDS Project, which advocates
an integrated, comprehensive, and
participatory approach to urban
management.
Iloilo also held a series of
multisectoral consultation workshops
to produce its Comprehensive Land
“It is they who bear the risk; they must make the commitment.”
– J. Brian Atwood, USAID Administrator
Use Plan (CLUP) for 1998-2010. The
city’s private sector partners, such as
the academe, NGOs, POs, church,
banking institutions, business clubs,
civic clubs, and other professional clubs
participated in the planning process.
Increase the enabling
capacity of people
To mobilize barangays into strong and
self-reliant communities, Mayor Vilma
Santos-Recto launched Vibrant, and
Innovative Local Managers’ Action
Toward Mobilizing Barangays in Nation
Urbis 5 Making Cities Work
Building or VILMA’S MBN in 2001. The
project holds a series of trainings for
community volunteers on barangay
orientation, consultations, and
capability building. Further, it also aims
to empower the poor by teaching and
assisting them to be self-reliant.
Believing that education is a
potent tool to fight poverty and to
build a competent manpower for its
growing industries, Lipa has prioritized
education in its 10-point agenda. It has
invested in providing free education to
poor but deserving students in the city
and nearby communities in the Lipa
City Public Colleges (LCPC). Students
of the college also immerse themselves
in rural communities for two months
to teach out-of-school youths and for
community organizing and building.
Iloilo, on the other hand, is
soliciting the inputs of villagers in three
barangays where community-based
solid waste management facilities will
be set up. Staff of the Department of
Public Works and Highways (DPWH)
and CENRO staff have started
organizing and conducting planning
workshops for the villagers. They are
also teaching villagers how to manage
the materials recovery facilities that
will be built in their barangays.
Making Cities Work 51

Unleash local initiative and
innovation
In Iloilo, the community has risen up
to the challenge of providing better
services. To augment the collection
service, some commercial centers
deploy their own vehicles to dispose
garbage. Starting 2003, the private
sector and peoples’ organizations have
also joined forces with the city to clean
up the Iloilo River in celebration of the
International Coastal Cleanup Day.
To beef up the shortage of police
officers, Iloilo also enforced the
barangay-based anti-crime strategy.
Dubbed as Community Oriented
Policing System (COPS), the system is
simply a partnership between civilians
and police in fighting crimes. The tanods
provide intelligence; the police the
firearms.
In Iligan, the mayor has required
barangays to come up with barangay
development plans (BDP) before they
can get a slice of the city’s budget.
Assisted by the Barangay Management
Committee, the barangay leaders
drafted these plans in consultation
with their constituents. The BDP uses
participatory resource appraisal (PRA)
to assess the real needs and priorities
of the community.
52 State of Philippine Population Report 2004
Three barangays have already
finished their BDPs while the rest
are still consulting with the general
assembly. The city government is really
proud of this project and residents
have accepted it with enthusiasm
because they are now more involved
in developing their city. Involvement
enhances the commitment of the
community and the accountability of
local leaders.
To rebuild Iligan’s public market
razed by fire in 2000, the stall
owners agreed to share part of the
reconstruction cost of their booths
with the city. They enjoyed “free”
rent in the first five years, and the
city was able to augment its funds for
infrastructure.
Winning bidders also occupy the
market stalls of a commercial center
that was built inside the Integrated
Bus-Jeepney Terminal. All interested
renters in the community actively
participated in a fair and transparent
process. In return, the city got the best
competitive prices for its investment.
Provide a greater voice to the
poor and disadvantaged
Under the late Mayor Ma. Clara L.
Lobregat, Zamboanga worked with an
NGO to study the urban poor areas in
Zamboanga. Forced migrants—natives
fleeing war-strifed Mindanao, Badjaos,
Filipino Muslim deportees from
Malaysia—have converged as urban
poor in the city. While they were
treated with humanitarian care, some
sectors perceived them as potential
problems. This local research was
an initial attempt to ‘put a face’ on
the urban poor to serve as inputs in
development planning.
To track newcomers and monitor
transients, the city has issued an
ordinance to barangay officials to
report them to the mayor’s office. It
has also set up the ‘One-Stop-Shop’
Crisis Assistance Center to assist
Malaysian deportees process and
document their travel and employment
papers, as well as to secure free
passports.
A participatory approach may
be considered in future resettlement
programs of the government to avoid
internal conflicts among population
groups. It is also a promising tool to
grip the root causes of dissidence and
internal conflicts among the city’s
ethnic groups and diverse population.
The urban poor communities
and informal sector organizations are
also being drawn to help advocate
family planning in Cebu. To fast track
population management and family
planning, local leaders launched the
Metro Cebu Community Advocacy
Network for Family Planning and
Reproductive Health in July 2004.
The network is composed of different
urban poor groups and community
associations—those who are most
affected and stand to gain the most
benefits from the program.
Tagbilaran provides housing
for the poor and has reserved two
resettlement areas for them with the
help of the private sector. The city was
also the first and the only city in the
region to implement socialized housing
projects. Taxes generated from the
housing project increased the city’s
income a hundred percent from PhP13
million in 2000 to PhP27 million in
2003.
Strengthen the capacity
of institutions
In Tagum City, the different City
Council Committees teamed up
with other local officials in visiting
Urbis 5 Making Cities Work
the barangays and in monitoring the
implementation of ordinances passed
by the Sangguniang Panglunsod (SP).
The City council also invites speakers
to provide a continuing legal education
for purok leaders. These undertakings
provide a good monitoring and an
informal feedback mechanism on the
ordinances passed by the SP.
A project funded by the United
Nations Development Programme
in 1998 enhanced Lipa’s capacity for
participatory environmental planning
and management. Through the
project, the city has produced its City
Environmental Profile (CEP).
The vibrancy below
Participatory development is not just
about listening to the people, but
helping them to voice out their needs.
And enabling them to articulate their
aspirations and ideas as stakeholders
and partners in development
through education and empowering
mechanisms. The people know the
heart of the communities best. They
know the vibrancy below.
Making Cities Work 53

Healthy, Wealthy, and Wise: They Make Cities Rise
MANAGE THE POPULATION: ENHANCE
PRODUCTIVE CAPACITIES
A
healthy, well-educated,
skilled, and active population
is a boon to any leader. They
are not only physically, but mentally,
emotionally and socially capable to be
partners in the development process.
They are the foundations in building
cities; the prime assets in expanding
them.
Thus, a city manager must ensure
that he provides health, education,
livelihood opportunities and other
services that harness and enhance
54
these capabilities. This requires
considerable investments that may
bear fruit only after some years, even
decades. But they are worth it.
It pays to invest in people
Most of the cities invested much of their
budgets on social services—that is to
provide their constituents education,
health, housing and social welfare
services. Metro Iloilo allocated 40%
of its budget to social services; Iligan,
31% (in 2003); and Zamboanga, 36% (in
2001). Tagbilaran also spent most of its
maintenance and operating expenses on
community development, especially in
1999 with a 63% share of the budget.
Others chose to invest
in development priorities that
strategically generate revenues to
provide for such social services.
Tagum invested more on economic
services, basically to build massive
infrastructures for industries, and
Metro Cebu poured in more money on
economic and general public services.
Wealth in health
Health and education should be given
priority as these greatly affect the
human resources available. Poor health
can lead to increased government
expenditures, thus negating the
benefits of urbanization. Malnutrition,
on the other hand, can decimate the
future generation’s ability to manage
growth.
Bulk of Iloilo’s budget in health
goes to basic health services. The
city’s seven health district health
centers are certified Sentrong Sigla,
with health facilities that have met the
DOH’s standards to deliver quality
basic services. It has a family planning
and population management program,
“People are the primary reasons for development and that they, in
premarital counseling, and information
and education campaign. Its nutrition
programs have also slightly reduced
malnutrition problems to 4.5%.
Almost 91% of Metro Cebu is
covered by hospitals, puericulture
centers and barangay health stations.
There are also enough government
doctors and nurses for Cebu, Mandaue
and Lapu-Lapu City. Population
programs in Cebu are administered
primarily by the Regional Commission
on Population. Cebu City dispenses
free family planning aids that are
distributed to 77 barangays. In Lapu-
Lapu City, female sterilization has
become a popular method of family
planning. To involve urban poor
groups and community associations
in advocacy and information
dissemination, the city launched the
Metro Cebu Community Advocacy
Network for Family Planning and
Reproductive Health in 2004.
Iligan constructed and expanded
its health facilities using funds from the
national government and international
agencies like the UNFPA. The city
plans to construct seven district health
stations and clinics, build 24 daycare
centers, and expand the Gregorio T.
Lluch Memorial Hospital.
turn, are the prime resource for development.”
–Ignacio R. Bunye, former mayor of Muntinlupa
Zamboanga offers health
services to its constituents, including
migrants—native Muslims fleeing
ethnic war in Mindanao, Badjaos,
and Filipino Muslim deportees from
Malaysia—with augmenting funds from
the PCSO, Zamboanga Medical Center,
NGOs and the private sector. The
city has created the City Health Board
to support health programs and the
AIDS Council to control diseases from
prostitution.
Dubbed as the ‘medical center for
Laguna’, Lipa’s budget for health has
been increasing yearly to about 11%
(PhP41 million) of its expenditures.
All five district health centers of Lipa
equipped with facility, manpower and
laboratories are DOH-accredited
Sentrong Sigla. The people use pills,
and condoms for family planning.
Almost all mothers (99.6%) have
delivered their babies attended by
Urbis 5 Making Cities Work
trained health personnel in 2003.
In 2002, Lipa also forked PhP2
million for supplemental feeding of
children and nutrition classes among
parents of malnourished children and
pregnant mothers. In 2001, it reserved
PhP5 million for health insurance of the
poor.
Tagbilaran’s successful efforts to
reduce malnutrition from 1999 to 2001
earned for it the CROWN Green
Banner awards for 2000, 2001, and 2003.
From 2001 to 2003, Tagum
implemented a radical population
program by giving incentives for males
who would undergo vasectomy. The
city also holds pre-marriage counseling.
It has also proposed a plantilla item for
a POPCOM officer in the city’s new
organizational structure. To augment
and complement the services of the
health centers, barangay health workers
have been trained to screen and then
Making Cities Work 55
 Urbis 5 Making Cities Work

refer patients to the health centers (LCPC) provides free education to project with Synergia Foundation, to indigents, and trainings to out-of- property taxes. As of 2004, the P0.56 million for supplemental feeding.
when needed. Service charges are poor but deserving students of Lipa De La Salle Lipa and DepEd involves school youth. For instance, it allotted School Board has a budget of Iloilo gave PhP3 million counterpart
minimal and free if the patient is poor. and nearby towns. The city gave PhP14 training of teachers and parents as well PhP2.3 million to grant scholarships PhP70.5 million and a supplemental to the World Bank-funded Early
million for its operation in 2000. as dialogues with the community to for college and technical and vocational budget of PhP12 million. Through the Childhood Care and Development
Price to be wise Since 1999, the city has sponsored the develop a better curriculum, methods education and training (TVET) in 2003. latter, the city was able to hire more (ECCD) project for children six years
scholarship of 27 poor students who and materials for teaching. That same year, it gave the Technical teachers, improve its instruction old and younger. ECCD focuses on the
Poor quality of education can lead to received stipends of PhP50,000 a year Tagbilaran, an emerging city, Institute of Iloilo PhP1.3 million to programs, books, science facilities psychosocial development and early
poor quality of human resources. each to study. has used remedial classes for the provide free TVET to children of poor and supplies and to construct education of preschoolers and provides
Hence, the fast urbanizing Lipa To improve the quality of teaching elementary and night classes for families. The school imparts skills covered gyms. for supplemental feeding.
placed education as top priority in reading to elementary pupils, Lipa is secondary pupils starting 2000 in automotive, electrical, and civil Preschoolers are also taken Metro Cebu is also expanding
its 10-point agenda. Believing that implementing Project K or Karunungan to improve basic education. With technology to the youth for free. cared of in 251 daycare centers. its education facilities, including
education is the best weapon against Para sa Kinabukasan ng mga Kabataan five colleges, 11 high schools, 22 The city also keeps a Special In 2003, the city allotted PhP7.1 classrooms, and beefing up its teachers.
poverty, the Lipa City Public College from 2002 to 2006. This collaborative elementary schools and 31 daycare Education Fund, mainly from real million for daycare services and In 2000, 81% of the barangays have
centers, it is the center of education
in the province. Now, it has also
TRADE UNION CONGRESS OF THE PHILIPPINES (TUCP) opened branches of three information
Young, Working, and Healthy technology schools.
Tagum City implements a college
It’s not just about money. scholarship program—City Educational
The Trade Union Congress of the Philippines (TUCP) is eyeing better sexual and
reproductive health opportunities for our young people at work. Scholarhip Program (CESPRO)—for
Adapting a more holistic reproductive health program, the TUCP has more than poor deserving students. Aside from
a hundred companies that have already integrated reproductive health provisions and paying their tuition and miscellaneous
benefits in their collective bargaining agreements.
There are five labor federations and two labor education counseling centers (LECC) fees, it provides scholars a PhP1,000
that have adopted the program, distributed in at least five strategic areas in the country monthly stipend and PhP1,000 per
including the National Capital Region, Regions III, VI, VII, and XI. semester book and uniform allowance.
Their project “Work-based Reproductive Health Project for the Youth” employs
With education as a major thrust
the following strategies: (a) capacity building for youth leadership on sexual and
reproductive health; (b) young adult peer education; (c) youth-friendly behavior change for Tagum, this rising city has built
communication materials; (d) engaging trade union leaders and employers; and (e) more classrooms designed Tagum-
harnessing multisectoral partnership.
style—that is more spacious and
The program has been successful in generating wider recognition among unions and
partners alike that youth sexual and reproductive health is a human right. It also led to the aesthetic. The city funded most of the
training of 45 selected young workers into leaders and young adult peer educators. classrooms while the rest were built
Innovative schemes (like Young Adult Peer Education) were also employed to from congressional funds.
address youth information needs. This is particularly helpful to the youth who are too
embarrassed to ask questions. The more established Metro Iloilo
provided scholarships, free education

56 State of Philippine Population Report 2004 Making Cities Work 57


elementary schools and 42% barangays
have secondary schools up from
the 77% and 26% figures in 1990
respectively.
Iligan, which also prioritized
education, plans to construct more
classrooms, and establish elementary
and highschools in some barangays to
improve access to education of remote
areas.
Zamboanga, an educational
center of the region, has sought to
address early childhood care and
development, elementary education for
all, literacy programs, continuing adult
education, special education to meet
the needs of its special population, and
improvements in curricular programs
and services, such as post secondary or
higher education.
Employment for enrichment
Livelihood opportunities make a
population productive and enhances
its economic and social contributions.
In 2002, 80% of the labor force of
Iloilo was employed. Many work
in government and special interest
sectors or are engaged in enterprises,
such as the food business.
58 State of Philippine Population Report 2004
Iligan is now widening its economic
base from industrial to agriculture and
tourism industries. A contract with
Nestle Philippines Corporation now
provides its coffee industry with a
ready market. The government has also
forged a cooperative venture with the
New Tech Pulp using the Iligan abaca
fiber. This supports the cooperatives
that have been managing and operating
these abaca plantations in one of the
barangays. It is also formulating a city
tourism development and marketing
plan.
Zamboanga aims to increase the
urban core of the city to as much as
20 times over. This will extend the
commercial areas with expanded
industrial and residential zones.
Access to livelihood will also be given
to resettlement areas to make these
communities viable and sustainable.
Tagum operates viable economic
enterprises that provide jobs to its
population such as the transport
terminal, public market, livestock
auction center, cultural trade center,
slaughter house, and public cemetery.
Its own asphalt plant has earned
PhP11 million in its first year of
operation in 2002. Trade and services,
which account for 95% of its new
investments, are expected to generate
more jobs.
Tagbilaran with its 16 major banks
and 33 lending institutions, airport,
and seaport is a hub of trade and
commerce. Its booming ecotourism
industry is matched by the growing
retail, accommodation, and transport
industries. The traditional handicraft
industry, which dates back to 1920, has
become a leading source of livelihood
and income. In 1997, 80% of the
households in the province and 70% of
city households derived their income
from entrepreneurial activities.
Other sectors–potent factors
Women are gaining a voice and are
being empowered. Lipa’s Women
Welfare Division give women trainings
on self and social enhancement,
leadership, livelihood and family life.
Cebu will soon construct a Women’s
Crisis Center.
The marginalized or problem
groups are also being empowered and
integrated into mainstream society.
Lipa provides services for solo
parents, disabled persons, senior
citizens, and juvenile delinquents. Solo
parents can take more leaves. Disabled
persons or those who are visually
impaired, mentally challenged, and
autistic attend trainings and workshops
to develop skills and potentials. Senior
citizens also undergo social and
self-enhancement training. Juvenile
delinquents are counseled and their
parents pass through some training
to curb drug addiction, gambling, and
other social ills.
Cebu plans to build a holding
center for street children and
a rehabilitation center for drug
dependents.
In Iloilo, out-of-school youths
aged 15-24 are given scholarships or
undergo leadership training and self-
awareness programs to rekindle their
interest in going back to school. The
barangays also actively involve them in
community building, capability building,
and skills enhancement programs.
Iligan also encourages out-of-
school youths to go back to school and
Urbis 5 Making Cities Work
city conducts peer group support and
community-based services, as well as
coordinate with parents, teachers, and
community associations.
As part of their curriculum,
students of the Lipa City Public
Colleges immerse themselves in
the community for two months—
organizing, mobilizing, and building the
community particularly, the out-of-
school youth. Lipa also offers non-
formal courses in dressmaking, paper
craft, home décor, cosmetology, and
practical electricity to wives, the youth,
and other interested villagers.
Notable too is the Arabic literacy
class facilitated by the Tagum City
government and the establishment
of seven tribal centers for indigenous
Muslim tribes residing in Tagum to
foster cooperation and understanding.
Making Cities Work 59

Leaders and Partners Work Wonders
WORKING TOGETHER IS KEY
M
anaging cities nowadays
is serious business. It has
become more complex,
multidimensional, and dynamic.
The city managers are expected
to provide quality basic services for
a burgeoning population with diverse
needs. They must generate and expand
the economic base yet promote equity
to all constituents. Further, they should
sustain the environment for present
and future needs. Most importantly,
they should be a leader who can work
with partners.
These partners are stakeholders
that influence the city’s development:
the state, the private sector, and
the civil society. The state includes
the national and local governments.
60
The private sector comprises the
business sector and organizations,
such as professional organizations
(e.g., medical), sociocivic groups, the
academe, and even media groups. The
civil society includes NGOs and POs.
Donor agencies working through GOs
and NGOs are also key players.
It is the city managers’ task to
innovatively and decisively manage
the city’s unique strengths. They
must find ways where they can
converge, cooperate, and coordinate.
By managing economies of scale, the
managers can harness the social and
economic benefits of urbanization
more efficiently and effectively to
benefit the people.
It is a new brand of leadership; it is
called partnership.
Mega cities need metropolitan
arrangements: Iloilo and
Cebu form councils
Thriving economic activities of major
cities sometimes spill over urbanization
problems to neighboring municipalities.
To solve these problems, Iloilo City and
Cebu City solons signed metropolitan
agreements with their neighbors.
In 1997, Cebu City formed the
Metro Cebu Development Council
(MCDC) with the cities of Mandaue,
Lapu-Lapu, and Talisay and six other
municipalities in the eastern part of the
Cebu Province.
In 2001, Iloilo City also formed
the Metro Iloilo Development Council
(MIDC) with the municipalities of
Leganes, Oton, Pavia, and San Miguel.
Delivery of services and
governance improved. Lessons are also
thriving for future city leaders.
Partnership and political will equal
power. Iloilo had foundations to
build on, an enabling environment,
and a strong political will to make
partnership work for it. The local
leaders have already been exposed to
the concept of a metropolitan council
when it was forwarded by progressive-
minded Iloilo business entrepreneurs
in the early 1990s. Advocacy and
capability-building of an international
agency further ingrained in them the
advantages of a council. When the
concept was revived in 1996, the
mayors were ready. They prepared a
memorandum of agreement (MOA)
for forming a Metropolitan Iloilo
Development Authority (MIDA).
Strong local political will plus the
strong support of a local congressman,
Rep. Raul Gonzales, clinched the
agreement. House Bill 1355 creating
the Metropolitan Iloilo Development
Authority (MIDA) was passed in
Congress.
Olongapo’s strong political
leadership helped the city rise out its
economic slump and transformed into
a model world-class urban center.
Institutionalized partnership moves
mountain. Because the partnership in
Iloilo was institutionalized, it evolved
into an organizational structure
with support staff, office space, and
sustainable funding. The Executive
Council composed of the five mayors
is supported by an Advisory Board,
a Secretariat, and Project Steering
Committees. The Secretariat holds
office in the city hall and staff are paid
Urbis 5 Making Cities Work
“Coming together is a beginning; keeping together is
progress; working together is success.”
– Henry Ford
GOVERNANCE
It’s Everybody’s Business
Power is in people.
Local government units no longer have the monopoly of decision making in the
community. The church, business, and youth sectors among others now actively work with
the city or municipal government in laying out their plans for development.
Iligan’s recipe for growth
Empowering barangays in Iligan City has just gone a notch higher. Barangays are now
required to formulate their own barangay development plans (BDP). To accomplish this
plan, a barangay has to conduct a participatory resource appraisal (PRA), which would
provide them data for planning.
The process of formulating the BDP involves three steps: (1) community orientation;
(2) socioeconomic profiling; and (3) development of the BDP. The PRA is conducted in
the second step.
The mayor of Iligan City started the program in 2003. A Barangay Management
Committee was also formed to assist the barangays in formulating their plans. Eventually,
the BDP will be a prerequisite before a barangay gets its share of the city budget.
As of April 2004, three barangays have already submitted their BDPs while others are
still in consultation with the general assembly.
Lipa’s plan for all seasons
The city of Lipa may have a movie star as mayor, but the various barangays are now
sharing the spotlight when it comes to chartering their own development plans.
VILMA’S MBN launched in 2001 aims to empower barangays to become strong
and self-reliant communities by running a series of orientation, consultations, and capacity
building training for community volunteers. The private sector, academe, and non-
government organizations (NGOs) also actively participate in the program. This strategy
is envisioned to put Lipa into the list of the top ten cities in the country.
Community participation: the Ilonggo way
Urbanization is a big issue and the Ilonggos are not going to take it sitting down.
In 1998, the Iloilo City government solicited public participation in drawing up
measures that would address urbanization issues. A series of multisectoral consultative
planning workshops were conducted to come up with the Comprehensive Land Use Plan
(CLUP) for 1998-2010. The CLUP was formulated in close coordination with the four
neighboring municipalities of Leganes, Oton, Pavia, and San Miguel.
The experiences of Iligan, Lipa, and Iloilo may already be a part of a growing number
of cities, which are realizing the importance of engaging all stakeholders in their respective
areas in drawing out their plan for progress.
Although it may be too early to see the fruits of convened efforts, it is relieving to
know that no one will be left out. This is the true essence of empowering people.
Making Cities Work 61

plantilla salaries. Funds come from
commitments of council members:
Iloilo City shouldered PhP100,000 for
the first year and PhP200,000 for the
second year; the partner municipalities
shared half of the city’s counterpart
funds. Support for capability building
from the Canadian Urban Institute is
also assured until 2006. With these
resources, the council was able to
flexibly respond to development needs.
On the other hand, the Metro
Cebu Development Council was
created by the Regional Development
Council in 1997. Without a support
staff, the Governor of Cebu, who acts
as Interim Chairman of the Council,
relies on the NEDA Regional Office
VII as Interim Secretariat. To give the
council legal and institutional powers
and resources similar to that enjoyed
by the Metro Manila Development
Authority (MMDA), Cebu has
proposed a bill to create a Metro Cebu
Development Authority (MCDA). This
bill is pending in both the Congress and
Senate.
Common vision and grounds unite.
An MIDC Operations Manual has laid
down the ‘practical’ guidelines’ on how
Ilonggos can achieve a common vision.
All council members pursue a common
and integrated development plan. The
62 State of Philippine Population Report 2004
plan defines priorities and areas of
partnership which they themselves
agreed upon. Further, a framework
directs them toward complementary
areas of growth. Hence, the council is a
partnership of equals, respecting each
city’s strengths and contributions.
Partnership is forged, not forced.
Appreciation, readiness, and capability
to manage a metropolitan agreement
did not come overnight to Metro
Iloilo. An international partner—the
Canadian Urban Institute—began
building this conducive environment
starting in 1998. It funded capability-
building activities, sponsored meetings,
workshops, and study tours here
and abroad, which impinged on local
officials the importance of an interlocal
partnership. Aware of the benefits of
membership, all the LGUs voluntarily
joined the council.
International partners mobilize.
International partners have been
tapped to fund or cosponsor
infrastructure projects. Metro Iloilo’s
priority projects to improve the road
and flood control systems for 2004
to 2014 are funded by the Japanese
government.
Meanwhile, international donor
agencies from Japan and Malaysia were
tapped by Metro Cebu to fund its
massive infrastructure projects—the
focus of its development plan (MCDP)
to solve its urban problems.
Metro Cebu also networked with
sister cities in China to build economic
enterprises and solicit donations. The
city received a fire truck from Xiamen
and 100 buses to run a bus transport
system from Kaohsiung, Taiwan.
Professional organizations and NGOs
infuse valuable material and nonmaterial
inputs. In Iloilo, representatives from
the academe and different national
agencies support the mayors in policy
and decision-making. As members
of the Advisory Board in the council,
these think-tanks provide vital technical,
advisory, and information inputs that
cannot be valued in money terms.
Further, many NGOs support the
city’s family planning and reproductive
health programs, thus extending the city
government’s service in health care.
To sum up, metropolitan
arrangements require political maturity
and the strong political will of the
local leaders. Constituents also need
to fully understand and appreciate its
advantages. Moreover, stakeholders
must be willing to support the council’s
human resource and financial needs.
For rising mega cities, a
metropolitan development authority
is a more attractive structure. The
institution is relatively permanent, it
exerts greater corporate powers and
functions, and it enjoys fiscal advantage.
People come and people go:
deurbanization in Iligan and
reurbanization in Olongapo
When economic distress hits an area
and forces its residents to leave and
seek better cities, how does a city
manager cope?
Depopulation and deurbanization
have hit Iligan and Olongapo, although
the latter has started reurbanizing in
1996. Iligan’s economy crumbled when
its biggest taxpayer, the National Steel
Corporation, shut down. Olongapo’s
economy blew to ashes when Mt.
Pinatubo erupted and the US military
facilities pulled out. Both cities
experienced out-migration; people
simply left.
Quite bleak situations. Yet through
many forms of partnerships, these
cities have survived, transformed, and
progressed.
Olongapo’s remarkable
transformation to a model city
Urbis 5 Making Cities Work
FAMILY PLANNING
The Manobo Way
The Manobos comprise one of the largest tribes in the province of Sultan Kudarat. It has a
population of 52,186 spread through the five municipalities of the province.
Poor and marginalized, the Manobos dwell in less accessible and mountainous places.
Access to basic services, such as reproductive health, has been very limited.
The Manobo culture permits young marriages, which often lead to bearings
of an average of five children. This condition coupled with social and institutional
discrimination makes it more difficult for a typical Manobo family to be able to improve
their lives and actively contribute to the development of the province.
Hence, the Provincial Health Office devised a strategy to facilitate the promotion of
family planning in areas where this indigenous group lives. Taking advantage of certain
influential people in the tribe, the health office has tapped them to be family planning
motivators.
To make them more effective motivators, selected Manobo leaders were made
to undergo trainings. They were also taught to translate information, education, and
communication (IEC) materials into their native tongue to be used as a tool when they go
around to do their work as family planning motivators.
Since 1999, the program has been successful in making more couples responsible
over family planning. The increase in acceptance among Manobo couples has raised
contraceptive use nearly 60%.
stems from its strong and equipped SAGRIC, a foreign firm consultant
leadership, and its equally strong and hired by AusAid, also reviewed the ten-
resilient residents. year plan as it passed through a series
of consultations with stakeholders.
Local and international partners The plan is a product of partnerships
facilitate the job. LGUS can seek or among local institutions, including
accept the advice of local and foreign branches of the Department of Trade
experts in areas where they are weak. and Industries (DTI), Department
For instance, the Australian of Agriculture (DA), Department of
government renowned for its urban Labor and Employment (DOLE), and
planning, has assisted Iligan to develop others. The plan is now ready for
its City Land Use Plan (CLUP). approval by the Regional Land Use
Committee (RLUC).
Making Cities Work 63

As a beneficiary of the Philippine
Regional Municipal Development
Project (PRMDP) that is funded by
the Asian Development Bank (ADB)
and the Australian Assistance for
International Development (AIDAB),
Iligan stepped up its efforts to bolster
its economy. It computerized its tax
registration in 2001. Further, the Tax
Revenue Assessment and Collection
System (TRACS), which it developed,
was made the pilot system for other
cities under the PRMDP.
Iligan’s partnership with other
national and private agencies resulted
to innovative and effective revenue
programs. With the DENR, CREBA,
and other agencies, it mapped new
and existing businesses, updated land
classification, and valuated properties
in 44 barangays. One-stop shops
managed with local branches of DTI,
Bureau of Internal Revenue (BIR),
DENR, and the Social Security System
eased tax and business transactions.
The media also actively campaigned for
tax payments.
Olongapo, on the other hand,
coordinated with the ADB, DENR, and
the Office of the President in settling
problems in land titling and boundaries,
as well as in conducting cadastral
surveys.
64 State of Philippine Population Report 2004
Involve the private sector in profitable
or useful projects. International agencies
like the UNFPA helped Iligan construct
and expand its health centers. Other
infrastructure projects were funded
by the Development Bank of the
Philippines (DBP), the Land Bank of the
Philippines (LBP), and ADB.
The private sector was also
very active in Iligan’s multisectoral
housing project, the GK Missionville.
The city government provided the
resettlement sites. But mobilized for
funding and construction were over
a hundred representatives from the
private sector, business associations,
NGOs, religious organizations, urban
poor organizations, and the Philippine
Army construction battalion. The UN
Undersecretary General referred to
Missionville as an international model
for urban poor housing.
Business associations such as the
Iligan Bay Chamber of Industries and
the Iligan Chamber of Commerce are
also actively promoting investments
and industries in the city.
In Olongapo, the World Bank
supported studies on the city’s landfill
that can be used jointly with the SBMA.
Private investors in general services,
construction, and supplies that flocked
to the Subic Freeport also boosted
Olongapo’s economy and tourism
industry.
People come and stay,
but who are they? Forced
migration in Zamboanga
What if the scenario was reversed?
What if socioeconomic and political
distresses hit other areas and
dislocated migrants flock to your city?
This is Zamboanga’s plight. Many
forced migrants populate the city:
Muslims fleeing wars in other parts
of Mindanao; prodigal Badjaos coming
back from Metro Manila; and Filipino
Muslim refugees being deported from
neighboring Malaysia. People stay but
who are they?
The city’s Master Development
Plan for 1997-2012, which aims to
reduce poverty, especially among
the ‘forced migrants’ have led to
partnerships to meet their needs.
With funds from the Philippine
Charity Sweepstakes Office,
Zamboanga City Medical Center,
NGOs, and the private sector, the
city provides health services to all
constituents, including the migrants.
There is no discrimination. Under
Mayor Celso Lobregat’s term,
resettlement areas are also given
access to livelihood programs that
can transform them into economically
viable and sustainable communities.
Further, the regional line agencies like
the Regional Disaster Coordinating
Council (RDCC) have initiated many
relief and short-term emergency
programs for deportees. The LGUs and
the NGOs assist in delivering services
for these programs.
Rising stars: the emerging
cities of Lipa, Tagbilaran, and
Tagum
Three cities are rising fast. Lipa in
Luzon enjoys the spillover effects of
development from Manila and Batangas
City. Tagbilaran in the Visayas is the
gateway to Bohol and plays a critical
role in the province’s ecotourism
development strategy. Tagum has been
named one of the Provincial Agri-
Industrial Centers (PAIC) in Region 11
in Mindanao.
Again partnerships helped local
leaders manage their city’s potentials
to turn them into shining urban
centers.
The private sector in Lipa, such
as Nestle Philippines, Inc. and the
LIMA Technology Center, support the
city’s environmental programs. They
maintain an environmental office or
committee to monitor and prevent the
ill effects of their operations on the
city’s environment.
With the help of the city planning
experts from the DILG-AusAID
PRMDP Project, Tagbilaran identified
tourism as a key development strategy
in its medium-term development plan
and city land use plan.
A technical study by foreign
groups like the AIDAB served as
input to the success of a five-year
water development program in 1997.
Waterworks now generate about a
third of the city’s income. The ADB
and DENR have also set up a center for
migrants.
Urbis 5 Making Cities Work
In Tagum, an Economic Enterprises
Regulatory Board was created
to manage the city’s economic
enterprises. The Board is empowered
by two representatives from the
private sector – one from the vendors
group and one from the consumers
group. The city also built more
classrooms and designed the spacious
and aesthetic Tagum-style classrooms
by coordinating with the DepED and
DPWH.
Working together works
Partnership of the local government
with other stakeholders helps cities
survive, transform, and progress.
Where partnership was pursued,
somehow, something worked or was
accomplished. And where partnership
was more extensive and formalized,
the greater were the impacts. Only
by collaboration, cooperation, or
partnership with other stakeholders
in growing urban centers can the
city manager govern efficiently and
effectively from all angles—politically,
socioeconomically, and even culturally.
The point is that working together
actually works!
Making Cities Work 65
 Urbis 5 Making Cities Work

Building Stronger and Healthier Cities

CAPITALIZE ON STRENGTHS, DIVERSIFY

“Results are obtained by exploiting opportunities, not by solving problems.”

– Peter Drucker

of its revenue. These positive changes
have transformed Olongapo into a
model city.
In the same way that Olongapo
reIied a great deal on the US military
bases, Iligan City’s economy revolved
around manufacturing industries,
particularly one firm—the National
Steel Corporation (NSC). Hence,
when many of these industries stopped
their operations, the local economy
collapsed. In managing the crisis, Iligan
altered its development strategies—it
started to work on its agriculture and
tourism. Although it is still striving to
regain its title as the “Industrial City
of the South”, it is now diversifying its
income and employment sources.
The stories of Olongapo and Iligan
are a reminder for city managers to
Making the most of its
location
Tagum’s economy prospered because
of its improved transportation node.
Because of its location, entrepreneurs
and traders found it advantageous
to do business in the city at the
crossroads.
Capitalizing on its strategic
location, Tagum maintained and
expanded its road network to profit
from the bustling business activities
and positive spillovers from the more
developed cities in Davao.
Aside from improving its road
network, Tagum City capitalized on its
geographical advantage by operating
revenue-earning enterprises such as
the 24-bay Tagum Overland Transport
telephone companies, cellular phone
companies, telegraph/telegram offices,
courier service providers, Internet
providers, and a cable TV operator.
Another city that benefited from
its strategic location is Zamboanga
City. Being the gateway from the
South, it is the heart of trade,
transportation, communication, and
tourism in Southwestern Mindanao.
It is also the transshipment center to
other parts of the Philippines and to
Indonesia and Malaysia.
Zamboanga City’s free port
and abundant natural resources,
particularly marine wealth keep it afloat
amid declining investments because of
the unstable peace and order situation
in Mindanao.
On the other hand, what
Tagbilaran lacked in natural resource
is more than compensated for by its
strategic position as the island’s center
of education, trade, and commerce;
seat of political power; and, more
importantly, the province’s primary
gateway. It houses the only domestic
airport and base port in the province.
Since it uses its location as the
province’s gateway to advantage,
Tagbilaran has established
infrastructure to enhance its
accessibility. The Tagbilaran Airport
and City Tourist Pier have been
improved further. The city has also
made sure that it has world class
facilities and amenities for visiting
tourists.

M
aking do with what one has
is a popular maxim. This
implies building up one’s
strengths to compensate for one’s
weaknesses.
Each city has something that it can
maximize to further its progress. It
could be a culture of participation, its
strategic location, its natural resources,
existing laws, and even its increasing
population—each can be used to cope
with the demands of urban growth.
Expanding the economic base
Struggling to pull itself together
after the eruption of Mt. Pinatubo
and pull-out of the US Navy base on
which it heavily depended, Olongapo
tapped its port and what was left of
the former military bases to pick up
where it left off. Olongapo now has
a free port, international airport, and
industrial park which employs many of
its residents and provides the city most
cultivate a wide economic base and not
to rely on only a few major industries
for income. This means not putting all
of one’s eggs in one basket.
Integrated Terminal.
The same is true for Lipa City,
which is strategically located between
Metro Manila and Batangas City. From
being purely an agricultural economy,
it is now fast developing its commerce
and trade, thus widening its economic
base.
Lipa City is continually exerting
efforts to attract more investments
by ensuring that various support
facilities are in place. These include
communication facilities such as
broadcast stations, a postal service,

66 Making Cities Work 67


Recognizing and capitalizing
on an area’s potential and strong
points provide options for spurring
economic activity and investments.
Other important concerns should be
addressed to promote the benefits
of urbanization, for instance, the
impact of the conflict in Mindanao on
Zamboanga’s economic viability.
Linking with partner organizations
and consulting local residents will help
make the transformation to an urban
center less of a problem.
Being mindful of its carrying
capacity
Migration is inevitable in the process
of urbanization. The increase in
investments in an area creates more
jobs, which attracts people. City
manager should seriously look at
controlling the flow of migrants into a
city.
A good example is Iloilo City. The
city can only accommodate a maximum
of 405,000 people due to limited area
and facilities. Thus, it regulates its net
migration. It also strictly implements
a no-squatting policy to control
inmigration.
In the same vein, in an effort to
manage its population, Tagum City
68 State of Philippine Population Report 2004
gave males who voluntarily underwent
vasectomy an incentive. The city
also intends to include a population
management section with two
population officers in its proposed
organizational structure.
Joining efforts with other
LGUs
A booming population brought about
by urbanization means more and
more people needing basic services.
Neighboring towns and municipalities
also experience the spillover effects of
this demand for a more efficient and
effective way to deliver basic services.
According to the 1991 Local
Government Code, “Local government
units may, through appropriate
ordinances, group themselves, consolidate
or coordinate efforts, services, and
resources for purposes commonly
beneficial to them.” This is exactly what
Metro Cebu and Metro Iloilo did.
Together with their neighboring local
government units (LGUs), they formed
metropolitan bodies that address
the problems of urbanization as a
collective.
City managers and planners
should look out for avenues of
collaboration and cooperation to
enhance governance. Metropolitan
arrangements enable the different
LGUs concerned to pool their
resources and unite in addressing
cross-border problems. Urban services
can be provided more effectively and
efficiently if they are jointly planned and
delivered by LGUs, their partners, and
stakeholders.
Such an arrangement, however,
requires a common vision of
development, a unified economic and
political base to implement the vision,
and an appropriate structure to provide
an institutional framework for successful
planning and implementation. In short,
local officials need to be politically
mature and strong willed to be able to
work together in synergy. The success
of a metropolitan arrangement largely
depends upon their ability to coordinate
and cooperate.
Generating local revenues
One of the advantages of urbanization
and population growth is the increased
opportunity for resource generation.
Under the Local Government Code of
1991, LGUs are authorized to impose
taxes. They are also empowered to
collect service fees, user charges and
fines, and operate enterprises.
Lipa’s Environmental Management
Fee (EMF), which is included in the
monthly household water bills, and
Iloilo City’s 1% additional property tax
that goes to the Special Education Fund
(SEF) are good examples.
City managers could innovate
in enhancing the efficiency of the tax
collection system. Lipa’s and Tagbilaran’s
one-stop shops are prime examples.
Incentives such as Tagbilaran’s 20%
discount on real property tax for early
taxpayers can also be instituted.
Tagum’s Revenue Task Force—
which moves around the city to visit
commercial establishments—is an
innovation from the “one-stop shop,”
which most cities have. It’s practically
bringing the process of effective tax
collection right at the people’s doorstep.
Computerization and ICTs can
also be exploited. This is what Iligan
did in its effort to systematize tax
records. It adopted the Tax Revenue
Assessment and Collection System
(TRACS) to make identification and
collection of due revenues easier. Iligan
also conducts business mapping with
the help of the geographic information
system (GIS) to identify new business
and commercial areas more easily.
Urbis 5 Making Cities Work
REPRODUCTIVE HEALTH
Responsibly Macho
Talk about equality of the sexes.
Men should also be aware of reproductive health and forget the notion that only
women are responsible for unwanted pregnancies.
In Nueva Vizcaya, a program has already been running to make men actively
participate in family planning in their own households.
The Male Reproductive Health Program is a community-based initiative under
the 4th Country Programme in 1999. The UNFPA and the local government jointly
implemented the project. Two pilot barangays were selected namely, Calaocan and Sto.
Domingo, both in the municipality of Bambang.
The program has three components: capability building, awareness building, and
rural health service provision. In terms of strategies, the project employs the following:
information, education and communication (IEC) campaign; advocacy; social
mobilization; multisectoral participation and networking capability building; and peer
approach.
Under the 5th Country Programme in 2000, the program went into full gear.
Men had to undergo training on reproductive health while purok reproductive health
committees were organized. Husband dialogues, meetings, consultations, and film
showing were conducted and used as venues for information and education campaigns.
Traditional barangay activities such as fiestas and sportsfest were also used for IEC
activities.
Nearly PhP600,000 was spent for the project in the last 3.5 years. The provincial,
municipal, and barangay LGUs absorbed almost 48% of the total expenses for the
implementation of the project while the UNFPA covered 52%.
Within three years of implementation, more male residents were reported to have
used condoms and greatly participated in health care and family planning. There was
also a significant decrease in cases of domestic violence against women reported to the
Katarungang Pambarangay.
The program has been extended to four other barangays.
Meeting the demands of urban strengths and potentials. By focusing on
growth is a challenge that requires what one has, enhancing its potential,
skill and innovativeness on the part and exploiting existing diversity, city
of the local government and local executives can wield strength.
executives. Each city has unique
Making Cities Work 69

Lessons, Policy Implications, and Recommendations
5
Population and Urbanization
Urbanization in a wider geographic area.
Urbanization continues although the
primacy of core cities is declining
as alternative sites become more
attractive. In addition, in many cases,
the surrounding areas are growing
faster than the original city core so that
urbanization is occurring in a wider
geographic area. This could mean the
rise of metropolitan arrangements in
the future.
The challenge of the ever-changing
economic structure. The economic
structure of cities, as expected, is
70
shaped by the drivers of urbanization.
While it is strategic to concentrate
on the development of leading
sectors, the experiences in Iligan and
Olongapo stress the importance of
diversifying the portfolio of economic
activities early enough while the city
is still reaping the fruits of its leading
sector. To find alternatives only after
the collapse of the leading economic
activity will be difficult because of the
accompanying diminished financial
capacity.
Cities as hubs. While cities may be
embroiled in their own problems, it
may not be in their best interest to be
solely inward looking. It is a strategic
advantage for cities to develop into
hubs for nearby municipalities by
providing gateway facilities for the
movement of people, goods, and
services. Tagbilaran, for instance, is a
gateway to final tourist destinations
in the province of Bohol. Cities
usually have the best transportation
and storage facilities for goods. They
are also usually a host to services
which may be not be viable in
smaller municipalities, such as banks,
telecommunication systems, tertiary
schools, and medical facilities. This
stance will likely stave off unwanted
migrations into the cities.
“What makes greatness is starting something that lives after you.”
Varied attention to population
concerns. The attention given to
population concerns had been
varied—largely dependent on the
city executive. In some cities, strong
population programs meant promoting
male involvement through vasectomy
(Tagum). In others, there is no mention
of any significant population program
at all. In still other cities, a strong
population program means promoting
only natural family planning and banning
artificial methods (Manila). Several
factors may have contributed to this
prevailing outcome. At the core is
that, the national government has
not provided the needed leadership
for better management of population
growth leaving it to the LGUs to craft
their own population management
programs.
There are several reasons why
this stance will not achieve the
desired effect of better population
management. LGUs may not find it
advantageous to manage population
growth. For one, the IRA allocation
is determined by population size. In
addition, because of the devolvement,
cities with successful population
management programs become
economically viable and thus attract
migrants like a magnet. Finally,
– Ralph W. Stockman
good population management may
undermine politicians’ interest in
building a larger political base. Given
all of these, a better strategy is for the
national government to provide strong
leadership in population management
and enjoin LGUs to participate in the
effort. In addition, there might be a
need to reexamine some more the
IRA allocation formula to minimize the
importance given to population size.
Resource Generation and
Allocation and Service
Delivery
Resource generation. Revenue
generation efforts have been, at best,
half-hearted because up to this point
cities did not feel the need to raise
revenues given the dividends derived
from urbanization and a generous
IRA allocation. While this may be
acceptable in the past, this may not
be necessarily true in the near future.
As the national government face fiscal
problems, the current IRA share
may not remain sacrosanct. A clear
indication of this is that there are
already attempts at withholding IRA
allocations in the recent past. There is
therefore a need for cities to develop
its revenue generation capacities.
Urbis 5 Making Cities Work
Republic Act 7279
Section 37 Article IX of the Republic
Act 7279 or “Urban Development and
Housing Act (UDHA) of 1992. The
law requires local governments to
act upon an effective mechanism to
monitor trends in the movement of
people from rural to urban, urban to
urban, and urban to rural areas. They
shall identify measures by which such
movements can be influenced to achieve
balance between urban capabilities
and population, to direct appropriate
segments of the population into areas
where they can have opportunities
to improve their lives and contribute
to national growth. They shall also
recommend legislation to Congress, if
necessary.
POPCOM, NEDA, and NSO to
provide advanced planning information
to national and local government
planners on population projections and
the services needed in particular urban
and urbanizable areas.
There are already many examples of
good practices in raising own-source
revenues. Quezon City is leading the
way in improving tax administration.
Tagum has demonstrated that public
utilities can contribute to the city
coffers rather than being a huge drain
71

to it. Olongapo, by simply including
garbage collection fees in the electric (a
utility the city owns) bill, has improved
its collection of garbage fees which
has, in turn, financed one of the model
garbage collection systems in the
country. Improved resource generation
would enable cities to finance even
better service delivery.
Beyond average service delivery
performance. Cities provide better
service delivery, in general, better
than the surrounding areas and the
national average. This is easy to
understand given that in cities the
households are relatively richer and/or
poverty incidence lower and that
city governments are well endowed
with financial resources both from
urbanization dividends and from
generous IRA shares. Given the higher
financial resources, they are in the best
position to go beyond the better than
average performance and be aggressive
in improving access of poorer
households.
Cross-border service use. The
devolution of frontline services has
highlighted the need for developing
72 State of Philippine Population Report 2004
models of dealing with cross-border
use of public services. Cross-border
use is not an issue if services are
nationally funded. With the devolution,
however, most frontline services are
locally funded. Nonresidents using
publicly funded services represent a
drain on services available to residents.
Enforcing residency requirements is
one administrative solution to this
problem but may be difficult or costly
to implement. There is a need to look
at other arrangements including cost-
sharing arrangements, which can be
part of a metropolitan or inter-LGU
arrangement.
Role of Institutions
The role of development planning in
resource allocation. There are indications
that development planning has limited
influence in actual resource allocation.
While there are already several good
practices, short-term considerations
and personal preference of the city
executive still predominate. For
instance, the importance given to
City Land Use Plans (CLUPs) was not
really because of strategic resource
allocation concerns but because it is
a requirement for zoning ordinances,
which are needed for taxation
purposes. The experience in developing
executive agendas, where the local
chief executive is engaged together
with stakeholders in a participatory
planning process, is an innovative way
of not leaving planning to technocrats
alone. On the whole, there is therefore
a need to create an environment where
the role of development planning is
enhanced and the influence of short-
term concerns in actual resource
allocation decisions is reduced even
before embarking on the desired
methodology of planning for population
development (POPDEV).
Participatory development.
Participation in development
planning and administration has
worked wonders in many cities in
both normal and difficult times. It
has been promoted for at least two
significant reasons, namely, improving
responsiveness to the needs of
the constituency and at the same
time promoting empowerment.
The LGC has provided mechanisms
for participation in planning and
implementing development efforts.
These mechanisms need to be
continuously reviewed to identify
better ways of effecting participatory
development.
Sustainable cooperation among cities
and nearby municipalities. Cooperation
among cities and adjacent municipalities
was resorted to in dealing with
coordination problems and spillover
effects. Several configurations have
appeared in the Philippine scene. A
critical review of the arrangements
done revealed that the search is still
on for an effective local governance
arrangement (Mercado and Manasan
2002). The Cebu case study revealed
that voluntary cooperation has proven
to be weak in terms of sustainability
as succeeding administrations tend
to be not as committed as previous
administrations who were party to
the forging of the agreements. Thus,
city administrators have proposed
the creation of a legal structure like
the MMDA. Mandated cooperation,
on the other hand, as illustrated by
the MMDA experience has also been
criticized as infringing too much on
the autonomy of member LGUs. This
is demonstrated by the perennial
tussle between the MMDA and the
Urbis 5 Making Cities Work
Population Size and IRA Allocation of LGUs
Share of LGUs
• After the LGC (1991): 40% of internal revenue taxes
• Before LGC: a maximum of 20% of internal revenue taxes
Shares among different levels of LGUs
• After LGC (1991): 23% to provinces, 23% to cities, 34% to municipalities
and 20% to barangays
• Before LGC: 27% to provinces, 23% to cities, 41% to municipalities, and
10% to barangays
Basis of allocation
• After LGC (1991): 50% population, 25% land area, 25% equal sharing
• Before LGC: 70% population, 20% land area, 10% equal sharing
For ARMM:
Sharing
• After the amendment to the organic act (2001): 30% central government,
35% regional government, 35% local government distributed using above-
mentioned formula
• Before the amendment to the organic act: 40% central government, 30%
regional government, 30% LGUs
Source: Manasan (2003) “Decentralization and Service Delivery Study: Intergovernmental Finance.”
Report to ADB-WB.
executives of member cities. On the arrangements of cooperation be
other hand, voluntary cooperation done. Among the nagging questions
seems to be working in the case of to be answered: How do we deal with
Iloilo. the challenge of infringement on the
The need for cooperation among autonomy of LGUs under a mandated
cities and nearby areas is real especially cooperation arrangement? What
in a decentralized environment. It kind of an environment needs to be
would be prudent to follow Manasan developed to hasten development and
and Mercado’s (2002) recommendation improve the sustainability of voluntary
that an in-depth research on models/ cooperation arrangements?
Lessons, Policy Implications, and Recommendations 73
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