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The role of business sector in the local governance of bacolod city (A case of Metro Bacolod Chamber of Commerce and Industries)

The role of business sector in the local governance of bacolod city (A case of Metro Bacolod Chamber of Commerce and Industries)

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Published by gen_nala
Second chapter of our research which presents some of the related materials and articles that aids the development of our research.
Second chapter of our research which presents some of the related materials and articles that aids the development of our research.

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Published by: gen_nala on Jun 30, 2009
Copyright:Attribution Non-commercial


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CHAPTER IIReview of Related Literature
 Nowadays, it is practically impossible to separate business and politics. The twoareas of society are strongly interlinked in order to build communities and people’s lives.“In fact,” writes Asis and Alfaro, “for good governance to be sustainable, it requires partnerships between government and civil society.” Gomez (2007) recalls PresidentGloria Arroyo saying, “it would take the private sector working together with governmentto create the jobs needed to build a strong middle class and a modern, first world nation.”Although it is well-known that business and politics are involved together increating our current environment, the extent and specific effects of the relationship hasnever been delved into. In fact, this would be the first time the relationship of businessand politics will be studied by a group of University of St. La Salle researchers. Thingsthat have not been determined before are the specific numbers of taxation income that businessmen provide to the government, the usability of that income, and whether thatsum of money is being wholly contributed to the public good. Employment is another factor that no research has fully made comprehensible, such as how many people,especially of the lower class, do businesses employ and thus help in the reduction of  poverty.
A study done by Asis and Alfaro (www.worldbank.org/governance) determinedthat “governance includes the State, but also transcends it--by including civil society. TheState, in order to create an encouraging political and legal environment, needs the supportof civil society to facilitate political and social interactions, such as mobilizing groups to participate in economic, social and political activities. Article 10 Section 20 of the 1987constitution states that ”The State recognizes the indispensable role of the private sector,encourages private enterprise, and provides incentives to needed investments.” (de leon,1987 Philippine Constitution) The State also needs the private sector to activate themarket and generate jobs and income. In order to understand the relationship betweencivic participation and local governance, the reader may already have grasped that it isthrough good governance that local governments and societies can foster development.Good governance, of which the main elements are participation, transparency andaccountability, can provide more productive investment, spur faster economic growth,and alleviate poverty…It is a two-way communication process between the governmentand citizens, with the overall goal of better decisions that are supported by the public, theincreased the [sic] well-being of the population, and the reduction of poverty.”
Extractive industry benefits from having reliablelocal counterparts, with which companies can negotiate, communicate, strategize, andresolve conflicts. Local government and traditional authorities can benefit from the jobs,infrastructure, and information that large companies bring to remote areas. Unfortunately,often the potential for mutually beneficial relationships is not met. There are other caseswhere national governments send significant portions of extractive revenues back to thelocalities from which the resources were drawn, but the local government does not have
the capacity to turn those funds into investments that improve local welfare in the longrun. Increasingly, companies, government, civil society and donors, are piloting ways tofurther community development without circumventing local government and traditionalleaders. This involves capacity building for local government in areas such as: revenuemanagement, participatory planning and monitoring, transparency and communications.It is clear that community development activities at the operational level are mosteffective when they are aligned with existing local or regional development plans and arelinked to long-term strategic objectives. Policies, resources and support from the nationallevel government are a necessary foundation for community development investments to be sustainable beyond the life of a specific mine or local leader.(http://www.commdev.org/section/topics/local_govt_devpt
). Bacolod City bested amongthe 130 other cities when the Philippine Chamber of Commerce and Industry declared itthe "Most Business-Friendly Local Government Unit in the Philippines" on Friday. (FiledUnder: Economy, Business & Finance,Government)Bacolod City did not top the list of the next-wave cities of the Department of Trade and Industry, Commission on Information Technology and the Business ProcessAssociation of the Philippines. But it surpassed all other business process outsourcing(BPO) locations in one category—business environment. In the 2008 scorecard for next-wave cities, Bacolod City landed on the 5th spot—behind the clusters of localgovernment units of Laguna and Cavite, and the cities of Iloilo and Davao. Bacolod City,however, got the highest score of 96% in the business environment category of the study.(

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