The Philippine government wants to change the previously over-centralized budgeting process while giving more power to citizens. Thus the Benigno Aquino government has therefore launched a four-year, nationwide participatory budgeting programme, Bottom-up Budgeting.
This case study was developed by Wei Luo, Shijia Chen, Ziqi Li,Xiaorui Niu,Danni Zhao, during the class Collective Intelligence at Southampton University in the Fall of 2022
Brief Description
The Philippine government wants to change the previously over-centralized budgeting process while giving more power to citizens. Thus the Benigno Aquino government has therefore launched a four-year, nationwide participatory budgeting (PB) programme, Bottom-up Budgeting (BuB), in the Philippines, starting in 2012.
Problems and Purpose
The BUB project aims to help the Philippines achieve its Millennium Development Goals, including inclusive growth and poverty reduction while promoting local government governance.[1] The specific measures are summarised in the following three points. Firstly, rearranging power relations at the local level. [2] Secondly, empowering communities and letting participation be implemented throughout local and national government planning and budgeting processes.[3] Finally, strengthening the role of civil society organisations in local development [4].
Background History & Context
The Corazon Aquino government issued the Local Government Code (LGC) in 1991 to address the country's over-centralised political and administrative system.[5] The LGC strengthens the powers of sub-national units and decentralises them, widening the scope for local government participation. Meanwhile, the LGC provides a number of avenues for citizen participation, including the establishment of Local Development Councils (LDCs), Local Special Bodies (LSBs), Local legislatures and other bodies that allow citizens to delegate power through participatory institutions.[6]
In the development of decentralisation, the Philippine government has become closer to the people, allowing for downward accountability to citizens, and a process of direct participation by the people has been established in the LGC to ensure accountability.[7]
More than two decades after the implementation of the LGC, scholar Ronald Holmes assesses that decentralization in the Philippines has performed well, giving local governments access to more resources.[8] But equally, the implementation of the LGC has been constrained by various factors, including: firstly, the mismatch between local government staff capacity and resources and the devolved powers, secondly, the fact that local powers are still limited, including the power to levy and collect taxes, thirdly, it has been shown through research that the Philippines is still controlled by the elite.[9]
Thus, effective participation of the people was also ensured in the LGC through activities such as conducting referendums, giving the approval of proposals to the public, General Assemblies and consultations to empower the people to consult with their localities.[10]
It is in this context of broad decentralization and effective citizen participation that PB was introduced to the Philippines, thus facilitating the implementation of The Bottom-up Budgeting (BuB) approach in the Philippines.
Organizing, Supporting, and Funding Entities
The Aquino administration launched the BUB programme in 2012 in collaboration with the Human Development and Poverty Reduction Cluster and the Good Governance and Anti-Corruption Cluster. [11] A total of 15 national government agencies are participating in the BuB program and the actual implementation of the project is the responsibility of national government agencies or local government units.[12] In the BuB program, priority poverty reduction projects are identified by local governments in conjunction with civil society organisations, and their budgets are calculated and integrated into the Local Poverty Reduction Action Plans (LPRAPs), which are approved and incorporated into the subsequent annual budgets of the 15 participating line agencies. [13]
In 2013, more than 600 cities in the Philippines were piloted with an adequate budget of Php 8 billion, doubling the number of pilot cities and increasing the budget to Php 20 billion in 2014, increasing the number of pilot cities to 1,634 in 2015, and finally extending the BUB program to all local governments in the Philippines in 2016, except Autonomous Region in Muslim Mindanao.[14]
The project is planned to be overseen by five national agencies, including the Ministry of Budget Management, the National Anti-Poverty Commission and others. [15] The secretaries of these five agencies form the Executive Committee of the project, which provides overall guidance to the BuB project and deals with The five agencies form the Executive Committee of the project, which provides overall guidance to the BuB project and deals with major implementation issues as they arise. The secretaries of these five agencies form the Executive Committee of the project, which provides overall guidance to the BuB project and deals with major implementation issues as they arise. [16]
Participant Recruitment and Selection
In FY 2013 in the Philippines, the Human Development Research Centre (HDRC) identified 609 municipalities/cities to participate in the initial phase of BuB, of which 595 municipalities/cities submitted and responded to Local Poverty Reduction Action Plans (LPRAPs).[17] Due to the remarkable operation effect of the Bub plan in the initial phase, in FY2014, the plan was expanded to 1,233 municipalities/cities. [18] In FY 2015-2017, the BuB program was expanded to all municipalities across the Philippines. [19]
The programme uses a multi-year budgeting approach and is spearheaded by the National Anti-Poverty Commission (NAPC) to drive the process of upgrading BuB projects by strengthening the collaboration between civil society organisations and local government units. [20]
Methods and Tools Used
The organizers used bottom-up participatory budgeting (BUB) to carry out the initiative efficiently. It shifts the government's relationship with the public away from patronage and patron-client relationships and toward responsibility. This reflects the goal of increasing decentralization, achieving downward accountability, and making local governments accountable to constituents.[21]
This strategy entails the government, civil society organizations (CSOs), especially people's organizations (POs), encouraging grassroots groups and local communities to participate in local planning and budgeting, and assisting the government in poverty reduction projects.[22] Individuals do not have much power to influence potential policies. The implementation process starts with an introductory meeting before the annual budget preparation to introduce the CSOs to the BUB process and to jointly analyze the poverty situation in each district, followed by the selection of LPRAT members who jointly negotiate the priority ranking of the projects and vote again to select the projects to be considered and then signed by three CSO members to finally obtain the financial support for the regional team's inspection[23].
What Went On: Deliberation, Decisions, and Public Interaction
After the initial planning phase, participatory budgeting is conducted in three phases.
Phase 1: Introductory Meeting Presentation and Proposal
According to the BUB process, the first phase requires the municipality and the CSOs to attend a budget planning meeting together in the year before the budget preparation, and to work on introducing the BUB process to the CSOs and identifying the appropriate projects according to the number of poverty needs in different localities, and to analyze the poverty situation together.[24] to ensure that the real poverty situation is reflected.
Phase 2 : Election of LPRAT members
The LPRAT members will include the Executive Director and representatives of social organizations. CSO representatives will be elected, for example, local government heads, school directors, social welfare developers, women's teams, community or grassroots organizations etc.[25] It is worth noting that the number of CSO representatives should be the same as the number of government representatives.[26] The election of CSO representatives begins by dividing CSOs into two types, those that have been elected to the LPRAT at least once, and those that CSOs that have never been elected as members of the LPRAT. Subsequently, random sampling is conducted to select organizations from the two main categories of CSOs, and each selected organization then elects three individuals as leaders.[27] The leaders vote and express opinions on behalf of the organizations and do not represent individuals.
Phase 3: Discussion of final proposals and voting on which project is finally funded
The third settlement involves LPRAT's work to narrow down the proposals from the first phase and to vote on them. There will be many proposals in the initial general meeting, and after a brief recap of the first phase of the general meeting, LPRAT will go through a vote of its members to select a priority ranking of projects based on the number of poor families. Projects that are considered will also need to be signed by at least three CSO members to receive a uniform grant from the government treasury.[28] After receiving the funding and list, LPRAT also needs to discuss the solutions to be delivered to the Regional Poverty Reduction Action Team (RPRAT) for checking and validation.[29]
During the above BUB project process, five oversight bodies including the Department of Budget and Management (DBM), the Department of Interior and Local Government (DILG), the Department of Social Welfare and Development (DSWD), the National Anti-Poverty Commission (NAPC), and the National Economic Development Authority (NEDA) will also be established to guide and resolve issues that arise during the process.[30]
Influence, Outcomes, and Effects
To understand the success of participatory budgeting in the Philippines, we should look at the purpose of establishing the system, BUB aims to promote government governance and reduce poverty, and poverty reduction can be reflected by the total amount of funds decentralized and the number of grants.[31]
First of all in terms of the number of projects implemented the top five cities in the Philippines cuyapo, aliaga, Sto. domingo, quezon, and namoicuan all showed a yearly increase in the total number of projects from 2014-2016. cuyapo went up from two to six, Sto. domingo went up from three to nine, Sto. domingo rose from 5 to 7, quezon rose from 6 to 9, and namoicuan had the most significant increase, from 0 to 9.[32] In terms of implementation amounts, the five cities in the Philippines have also increased roughly year by year, with cuyapo rising from two to fifteen million, aliaga from ten to twelve million, Sto. domingo rising by about two and a half million in two years, quezon remaining flat, and namoicuan rising from zero to fifteen million, all improving.[33]
Participatory budgeting for the Philippines has been a gradual shift in political culture from adversarial tactics and corrupt political bargaining to constructive discussion and citizen participation in the governance process, making government spending more open, and decision-making more transparent, and affects the ability to implement public budgets.[34] Make the government itself more accountable, reducing poverty and strengthening the role of civil society organizations.[35] Second, it has helped to open the budget process to wider public scrutiny, thereby reducing opportunities for corruption, and principles such as tolerance, competition, and respect for commitments have become more valued.[36]
Analysis and Lessons Learned
See Also
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External Links
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Notes
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References
[1] Moralde, Rachael and Ubungen, Ronnel and Armas, Kenneth, Revisiting the Bottom-Up Budgeting Process in the Philippines: Issues, Findings and Recommendations (November 1, 2018). Available at SSRN: https://ssrn.com/abstract=3472483
[2] Aceron, J (2019) Pitfalls of Aiming to Empower the Bottom from the Top: The Case of Philippine Participatory Budgeting (online) Available at: https://accountabilityresearch.org/wp-content/uploads/2019/05/WorkingPaper-4-Philippines-Bottom-Up-Budgeting-web-May-9-2019.pdf (Accessed: December 09, 2022)
[3] Moralde, Rachael and Ubungen, Ronnel and Armas, Kenneth, Revisiting the Bottom-Up Budgeting Process in the Philippines: Issues, Findings and Recommendations (November 1, 2018). Available at SSRN: https://ssrn.com/abstract=3472483
[4] Moralde, Rachael and Ubungen, Ronnel and Armas, Kenneth, Revisiting the Bottom-Up Budgeting Process in the Philippines: Issues, Findings and Recommendations (November 1, 2018). Available at SSRN: https://ssrn.com/abstract=3472483
[5] Aceron, J (2019) Pitfalls of Aiming to Empower the Bottom from the Top: The Case of Philippine Participatory Budgeting (online) Available at: https://accountabilityresearch.org/wp-content/uploads/2019/05/WorkingPaper-4-Philippines-Bottom-Up-Budgeting-web-May-9-2019.pdf (Accessed: December 09, 2022)
[6] Aceron, J (2019) Pitfalls of Aiming to Empower the Bottom from the Top: The Case of Philippine Participatory Budgeting (online) Available at: https://accountabilityresearch.org/wp-content/uploads/2019/05/WorkingPaper-4-Philippines-Bottom-Up-Budgeting-web-May-9-2019.pdf (Accessed: December 09, 2022)
[7] Aceron, J (2019) Pitfalls of Aiming to Empower the Bottom from the Top: The Case of Philippine Participatory Budgeting (online) Available at: https://accountabilityresearch.org/wp-content/uploads/2019/05/WorkingPaper-4-Philippines-Bottom-Up-Budgeting-web-May-9-2019.pdf (Accessed: December 09, 2022)
[8] Aceron, J (2019) Pitfalls of Aiming to Empower the Bottom from the Top: The Case of Philippine Participatory Budgeting (online) Available at: https://accountabilityresearch.org/wp-content/uploads/2019/05/WorkingPaper-4-Philippines-Bottom-Up-Budgeting-web-May-9-2019.pdf (Accessed: December 09, 2022)
[9] Aceron, J (2019) Pitfalls of Aiming to Empower the Bottom from the Top: The Case of Philippine Participatory Budgeting (online) Available at: https://accountabilityresearch.org/wp-content/uploads/2019/05/WorkingPaper-4-Philippines-Bottom-Up-Budgeting-web-May-9-2019.pdf (Accessed: December 09, 2022)
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