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Obstacles to Empowerment: Local Politics and Civil Society in Metropolitan


Manila, the Philippines

Article  in  Urban Studies · November 2000


DOI: 10.1080/00420980020002841

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Urban Studies, Vol. 37, No. 12, 2357 – 2375, 2000

Obstacles to Empowerment: Local Politics and


Civil Society in Metropolitan Manila, the
Philippines

Gavin Shatkin
[Paper Ž rst received, September 1999; in Ž nal form, March 2000]

Summary. In recent years, the Philippine government has undertaken a number of reforms for
decentralising urban governance and increasing the role of community-based organisations
(CBOs) and non-governmental organisations in urban policy and programme development and
implementation. Popular interpretations see these changes as an outcome of the ‘people’s power’
movement against centralisation and authoritarianism and stress the potential for increased civil
society participation in government in the future. This paper critically examines these interpre-
tations with reference to the situation of CBOs in informal settlements in Metropolitan Manila.
SpeciŽ cally, it argues that decentralisation re ects the interests of a variety of politically powerful
social groups, including not only organisations of civil society, but also local political families and
international and domestic business interests. In addition, a number of factors continue to inhibit
meaningful civil society participation. These include the lack of local government capacity in
many cities and municipalities and the existence of powerful economic interests at the local level
that compete with civil society organisations for in uence.

In recent years, many developing countries reducing their cost and increasing their
have adopted reforms for decentralisation efŽ ciency. Secondly, local governments are
and increased citizen participation in urban supposedly more responsive to CBOs be-
development programmes and policies. In cause of their proximity and greater account-
the area of tenure regularisation and infra- ability to communities. In practice, however,
structure delivery in informal settlements, studies have shown that CBOs and NGOs
central governments have in many cases de- continue to face obstacles to participation in
volved responsibility to local governments local governments and that these reforms
and have enhanced the role of non- have had a limited impact on access to shel-
governmental and community-based organi- ter among low-income urban residents
sations (NGOs and CBOs) in organising (Burgess et al., 1997).
residents for improvement projects. Two This paper will examine some of the rea-
justiŽ cations are generally given for imple- sons for the limited success of reforms for
menting reforms for decentralisation and par- decentralisation and participation in shelter
ticipation. First, participation by community delivery, with reference to the case of
residents supposedly enhances community Metro(politan) Manila, the Philippines.
improvement programmes and projects by SpeciŽ cally, it will argue that these reforms
Gavin Shatkin is in the College of Design, Art, Architecture and Planning, University of Cincinnati, PO Box 210016, Cincinnati, OH
45221-0016, USA. Fax: 513 556 1274. E-mail: gmshatkin@yahoo.com.

0042-0980 Print/1360-063X On-line/00/122357-19 Ó 2000 The Editors of Urban Studies


DOI: 10.1080/00420980020002841
2358 GAVIN SHATKIN

have a limited impact largely because they civil society in Metro Manila’s cities with
do not address one of the main causes of the respect to the issue of urban poverty and
lack of legal access to housing among low- informal settlements, highlighting case stud-
income groups—the high cost of urban land ies of three localities.
due to speculation and development pres-
sures caused by urbanisation (Strassmann
Cities, States and Citizens in a Globalising
and Blunt, 1994). The lack of legal afford-
World
able housing for low-income people is a
serious problem in Metro Manila. Approxi- The increased appeal of reforms for decen-
mately 37 per cent of the city’s population of tralisation and community participation in
10 million live in informal housing that often urban development in recent years is largely
lacks basic services and is severely over- attributable to cynicism regarding the ca-
crowded (PCUP, 1998). Since the overthrow pacity of government to deliver effectively
of the authoritarian government of Ferdinand goods and services. Such reforms are often
Marcos, the Philippines has undertaken a depicted as a means to overcome the per-
particularly dramatic experiment in decentra- ceived shortcomings of government, namely
lisation of government and recent reforms their inefŽ ciency and lack of accountability
have institutionalised a role for CBOs and (Pugh, 1994; Schubeler, 1996). This view is
NGOs in urban development. Yet many of succinctly summarised by Tendler (1997)
the reforms have not been fully implemented
According to these accounts, public
and local governments have often been un-
ofŽ cials and their workers pursue their
willing to undertake politically sensitive ini-
own private interests rather than those of
tiatives, such as raising property taxes or
the public good. Governments overextend
large-scale government acquisition of land,
themselves in hiring and spending. Clien-
that would make land available for low-
telism runs rampant, with workers being
income housing. Intense developmental pres-
hired and Ž red on the basis of kinship and
sures due to rapid urbanisation and an in ux
political loyalty rather than merit. …
of foreign investment have forced land prices
Badly conceived programs and policies
up, thereby exacerbating the problem. CBOs
create myriad opportunities for bribery,
have experienced limited successes in some
in uence peddling and other forms of
parts of the Metropolitan area, particularly
malfeasance. All this adds up to the disap-
where there are large amounts of vacant land
pointing inability on many governments to
and where informal settlers constitute a large
deliver good public services and to cope
potential constituency that somewhat offsets
with the persistent problems of corruption,
the political in uence of land-owners. In
poverty, and macroeconomic mismanage-
other cases, however, they have had very
ment (Tendler, 1997, p. 1).
little in uence.
The paper will begin with a brief review of Decentralisation and the formation of part-
recent literature on the role of civil society in nerships between government and corpora-
urban development in developing countries. tions and organisations of civil society are
Next, it will examine the historical an- therefore seen as a means to take goods and
tecedents to the recent decentralisation of service provision out of the hands of central
urban government in the Philippines and the governments and provide a role for more
impact of the recent reforms on urban poli- efŽ cient, accountable entities.
tics. The paper will then examine the chang- There are two main perspectives on the
ing nature of Metro Manila’s relation to the recent spate of reforms for decentralisation
global economy and how these changes are and participation, which differ in their politi-
impacting on local political economies in the cal perspective and in their interpretation of
Metropolitan area. Finally, it will examine why the reforms have taken place. One view,
current relations between government and put forth by the World Bank (1993) and
OBSTACLES TO EMPOWERMENT 2359

other international aid and lending organisa- 1980 and 1993, developing countries in-
tions since the early 1990s, holds that reduc- creased their share of world industrial output
ing central government intervention will from 10 per cent to 22 per cent (Burgess et
result in the more efŽ cient and cost-effective al., 1997). At the same time, many countries
provision of social services. This view is that had adopted economic development
premised on a neo-liberal economic perspec- strategies based on import-oriented industri-
tive that holds that markets are inherently alisation or basic commodity production
more capable of delivering goods and ser- were experiencing economic difŽ culties, as
vices than government. In this view, govern- falling commodities prices and borrowing to
ments have begun to undertake such reforms Ž nance industrialisation had led to debt
out of enlightened self-interest. A second crises. Pressured by international aid and
view is premised on political economy the- lending institutions to repay their loans,
ory, which stresses the capacity of com- many countries agreed to undergo structural
munity groups to produce development adjustment programmes which involved the
outcomes that are more sustainable and more freeing of markets, the reduction or elimin-
appropriate to local socioeconomic and cul- ation of subsidies and price controls and
tural needs (Friedmann, 1992). Political decreased government expenditures on social
economists tend to emphasise the resistance services (Walton and Seddon, 1990). Such
of economic, political and bureaucratic inter- reforms were part of an overall effort to
ests in the state to community participation in restructure developing economies to re ect
planning and see reforms for decentralization the neo-liberal economic ideals of decreased
and participation as a victory of social move- government intervention in economic mat-
ments for local autonomy. ters, Ž scal austerity and liberalised markets.
This paper will argue that neither of these These measures were for the most part
explanations of the genesis of the recent backed by export-oriented industrial interests
reforms is sufŽ cient. Rather, reforms for de- in developing countries, who were becoming
centralisation and participation are largely increasingly in uential due to their increased
the result of changes in the nature of urban importance in national economies.
politics in developing countries resulting During the 1980s, however, declines in
from globalisation and rapid urbanisation. standards of living caused by the retreat of
SpeciŽ cally, these reforms re ect the impact national governments from redistributive and
of two trends that are common to many social welfare roles led to increased poverty
developing countries—increased pressures and civil strife (Walton and Seddon, 1990).
on governments for Ž scal austerity in the era Wary of the economic and political impacts
of globalisation, which has caused many cen- of these developments, international organi-
tral governments to retreat from a role in sations such as the World Bank began to
social welfare and the increased political formulate a framework for the role of the
in uence of social groups who have a vested state in urban planning and management and
interest in political decentralisation and liber- social service delivery, that was consistent
alisation. In order to understand these with neo-liberalism and the need for Ž scal
changes, it is necessary to discuss brie y the austerity. The result was ‘enablement’ theory
impacts of globalisation on developing coun- (World Bank, 1993). In the enablement
tries. framework, cities are seen as important gen-
Since the 1960s and 1970s, advances in erators of economic development and
transport and telecommunications technolo- government attempts to control urban devel-
gies have resulted in rapid industrial growth opment through regulations, land-use con-
in many developing countries, as multina- trols or government provision of housing are
tional corporations have taken advantage of generally seen as misguided and counter-
their increased mobility to seek out lower productive. Rather, the primary roles for
production costs and new markets. Between government are in providing trunk infra-
2360 GAVIN SHATKIN

structure, ensuring economic stability and be expected to provide channels for mean-
formulating policies and programmes that ingful political participation by organisations
will ‘enable’ the for-proŽ t private sector and of civil society? Secondly, what capacity
civil society to deliver social services. does civil society have to take advantage of
SpeciŽ c measures include the deregulation of this political space? I would argue that two
land markets, the privatisation of certain ser- main factors in uence local governments’
vices and improved governance (Pugh, inclination and capacity to incorporate popu-
1994). In enablement theory, NGOs and lar participation in decision-making. The Ž rst
CBOs represent the interests of urban resi- of these is simply the relative capacity of
dents in relations with other actors and foster local governments to address the demands of
popular participation in order to pool re- civil society. Economic development is in-
sources to reduce costs and to ensure the herently uneven in cities and high-value land
sustainability of improvement projects uses tend to be concentrated in certain parts
(Schubeler, 1996). of the city. There is consequently a disparity
The imperative for countries to participate in the revenue-generating capacity of local
in the global economy and the incentives governments. Likewise, cities differ in the
provided by international organisations, have availability of other resources, most notably
led many governments to implement enable- vacant land. Thus, in a decentralised system,
ment reforms. These reforms have led to a even where there is the political will to co-
limited convergence of interests among vari- operate with civil society, local governments
ous actors in urban development. As a result may lack basic resources, such as personnel,
of such reforms, national governments are funding or land, to do so.
able to cut expenditures while also accessing The second factor is the nature of relations
the resources of international organisations, between the state, the for-proŽ t private sector
local governments gain increased autonomy, and communities in localities. SpeciŽ cally,
the for-proŽ t private sector gains freedom the degree to which CBOs can in uence
from much central state regulation and civil decision-making is likely to be strongly af-
society organisations are provided with op- fected by the interests of politicians and po-
portunities to in uence decision-making. Yet litically in uential private-sector actors in
there is a contradiction in enablement theory local land markets. In many localities, the
with respect to the situation of informal set- bond between the state and capital is es-
tlements. While the enablement model en- pecially strong and governments may have
courages governments to co-operate with strong economic incentives to discourage
organisations of civil society, it also stresses CBO and NGO participation in government.
that governments should refrain from inter- This is particularly true in highly urbanised
vening in land markets. Yet these objectives areas, where land is scarce and valuable.
may be in con ict. SpeciŽ cally, efforts by
Governments have been reluctant to em-
CBOs to access urban land at prices afford-
power grass-roots organizations in inner
able to low-income residents are often in
city areas, because they create obstacles to
con ict with the objective of land-owners to
the exercise of politically and economi-
increase the value of that land. Governments
cally sensitive planning powers …
must therefore choose between conceding to
required to facilitate not the poor, but the
the interests of informal settlers and main-
commercial property interests linked to ur-
taining the primacy of market forces in land
ban renewal, gentriŽ cation and the conver-
allocation. In practice, governments often
sion of residential to commercial and
align with land-owning interests, thereby
public land uses (Burgess et al., 1997,
limiting the space for participation by CBOs.
p. 157).
Two questions emerge from the above
analysis. First, given the contradiction stated In addition, government ofŽ cials themselves
above, to what extent can local governments often have a direct interest in the local econ-
OBSTACLES TO EMPOWERMENT 2361

omy, or in local real estate markets. Thus the high cost of land also leads to the growth of
assumption that there is greater space for informal settlements, as many low-income
civil society participation at the local level is urban residents are shut out of the legal
questionable—local governments may be housing markets.
more accountable to land-owning interests Political reforms have signiŽ cantly
than to civil society. changed the Philippines’ urban development
The remainder of this paper will focus on framework in recent years, with signiŽ cant
the case of Metro Manila. First, the recent implications for housing markets. The 1987
reforms will be placed in the historical con- Constitution ensures the autonomy of city
text of local– national government relations in and municipal governments and calls for par-
the Philippines. Next, the paper will discuss ticipation in government by the country’s
how global economic forces are impacting exceptionally mobilised civil society (Busto,
on the politics of space in Metro Manila and n.d.; Siliman and Noble, 1998a). The Local
on the role of civil society in government. Government Code of 1991 devolves import-
The paper concludes with a discussion of ant planning powers, including zoning and
some speciŽ c cases of local government – land-use planning, to city and municipal gov-
civil society interaction around the issue of ernments. It also dictates that NGO and CBO
informal settlements. representatives constitute 25 per cent of local
development councils (LDCs), the entities
responsible for the formulation of develop-
Case Study of Metro Manila
ment plans. Governance in Metro Manila has
The proliferation of informal settlements in also changed signiŽ cantly. The powerful
Metro Manila is largely a consequence of the Metro Manila Commission, which had been
relatively high cost of land in the city. Stud- headed by a strong governor appointed by
ies have shown that the ratio of land costs to the President during the Marcos period, has
incomes is high in Metro Manila as com- been replaced by a weakened Metro Manila
pared to most large cities in developing Development Authority governed by a board
countries (Strassmann and Blunt, 1994). Two of mayors whose chair rotates every six
factors are largely responsible for the high months (Berner, 1997). According to the
land prices. The Ž rst is rapid urbanisation— Constitution, the national government has no
the metropolitan area’s population grew from authority to merge existing cities and munic-
approximately 4 million in 1970 to close to ipalities into metropolitan political sub-
10 million currently—an average annual divisions without the consent of the populace
growth of 200 000 (NSO, 1998). The second through a plebiscite (Busto n.d.).
is speculation in urban land. Much privately Recent programmes and policies in hous-
owned land is vacant, held for speculative ing have also emphasised the role of local
purposes. A study conducted in the early government, CBOs and NGOs. Under the
1980s found that 44 per cent of land-owners government’s current housing framework,
in Metro Manila held 300 square metres or established by the Urban Development and
more and some held plots large enough for Housing Act (UDHA) of 1995, national
5000 home lots (Mendiola, 1983). Due to the government agencies generally focus on
high cost of land, residents must cut their Ž nancing housing programmes, while im-
housing costs by reducing  oor space and plementation is largely left to partnerships
cutting back on services. A study conducted between local governments, organisations of
in 1991 found that over 80 per cent of famil- civil society and the private sector. Under
ies in Metro Manila occupied dwellings of 2 UDHA, local governments are also required
rooms or less and that approximately one- to set aside land for relocation of informal
third of dwellings lacked indoor piped water, settlers and to compile lists of informal set-
with a similar number lacking a water sealed tlers who are eligible for relocation. The law
toilet (Strassmann and Blunt, 1994). The also stipulates that sub-division developers
2362 GAVIN SHATKIN

must set aside 20 per cent of project costs for land in the Philippines in recent years, which
socialised housing. The Community Mort- is largely a consequence of the integration of
gage Programme (CMP), the main govern- Metro Manila into the global economy. The
ment initiative for low-income housing, next two sections will explore how these
entails community organisations in informal factors have shaped government – community
settlements taking loans from government to relations in the Philippines.
purchase land, usually from private owners,
at market prices.
Historical Foundations of Contemporary
While organisations of civil society are
Local Politics in the Philippines
granted an enhanced role in recent pro-
grammes and policies, in practice CBOs and Family plays a critical role in the Philip-
NGOs have often encountered signiŽ cant pines’ economic and political organisation.
difŽ culties in in uencing local governments Family-owned enterprises constitute a large
and the reforms have had a limited impact on part of the economy—as indicated by the fact
access to legal housing for residents of infor- that over 90 per cent of the top 1000 corpora-
mal settlements. Local governments have tions in the Philippines are not publicly listed
been slow to comply with certain politically (McCoy, 1993). In the political realm,
sensitive provisions of UDHA, such as the in uential families have passed political
identiŽ cation of vacant land for socialised power down through the generations. One
housing and developers have largely ignored study indicated that 169 of the 200 House
the provision for setting aside part of project Representatives elected in the Ž rst post-
costs for socialised housing (Racelis, 1998). Marcos elections, held in 1987, were either
In addition, provisions for the rights of infor- from pre-martial-law political families or
mal settlers in cases of eviction are often not related to these families by marriage
observed. The Urban Poor Associates, an (Anderson, 1988).
NGO that works with urban poor communi- An extensive literature has documented
ties, recorded 105 demolitions affecting the historical development of these élite fam-
20 110 families between July 1992 and De- ilies (Anderson, 1988; McCoy, 1993; Sidel,
cember 1995. Only 43 per cent of affected 1997). These accounts usually trace the
families were provided with relocation origins of this phenomenon to early Spanish
(Karaos, 1996). Civil society participation on colonial times, when religious orders consol-
local development councils has sometimes idated large tracts of rural land into agricul-
been dominated groups like the Rotarians or tural estates. Later, the Philippines turned to
the Lion’s Club, which do not represent the the production of tropical agricultural prod-
interests of marginal groups. Finally, CMP ucts, such as sugar, tobacco, abaca and cof-
projects have only reached a small minority fee, to meet increasing demand in the
of communities and some projects have re- industrialising countries (Anderson, 1988;
sulted in the displacement of poorer resi- McAndrew, 1994). Export-oriented agricul-
dents, as they are unable to afford to make ture led to rising land values and en-
payments on their loans (Berner, 1996). trepreneurial families, often of mestizo
In sum, while reforms have theoretically Chinese heritage, began to acquire rural land
provided the potential for the political em- either by leasing from the religious orders
powerment of CBOs, in practice their role or by engaging in money-lending to small
continues to be limited. I would argue that cultivators.
two factors have limited the role of CBOs. When the Americans took over colonial
The Ž rst is the persistent in uence of local rule of the Philippines, these families domi-
economic élites in political processes in nated agricultural production and trade. Hop-
Philippine political culture, a phenomenon ing to diminish the in uence of the Spanish
related to Philippine history. The second is religious orders, the Americans soon under-
the increased development pressure on urban took a land reform programme that allowed
OBSTACLES TO EMPOWERMENT 2363

Filipino farmers to purchase the land they The dominance of traditional landed, ru-
tilled. This resulted in the further consolida- ral-based elite in the Congress resulted in
tion of land in the hands of rural land-owning more attention being paid to local, particu-
élites, as they used their superior Ž nancial laristic legislation compared with national
resources to accumulate lands. The Ameri- programs such as, for example, the issue
cans also undertook the development of a of balanced agricultural and industrial de-
parliamentary democracy in the country, velopment, or income and property tax
holding elections for municipal ofŽ ce in legislation. Congress enacted local auton-
1901, for provincial governors in 1902, for omy laws, created new towns and cities,
the Philippine Assembly in 1907 and for subdivided provinces and increased pork
Commonwealth president in 1935 (Sidel, barrel appropriations in order to satisfy
1997). Elected city and provincial ofŽ cials local supporters (Caoili, 1988, p. 61).
gained power over local law enforcement,
taxation and public works, while national- The political in uence of the rural élite
level ofŽ cials gained in uence over the ap- gradually waned in the post-colonial era,
portionment of national government funds however, as industrialisation created new
and loans by the national bank, the appoint- bases of power and an increasingly urban and
ment of ofŽ cials, the awarding of contracts educated population sought alternatives to
and other powers. Political ofŽ ce therefore what they saw as the backwardness of the
held considerable potential for personal rural élite. Their era of dominance ended
economic advancement and many land- abruptly with Marcos’ declaration of martial
owning families took advantage of their law in 1972. Marcos strengthened and co-
economic position to achieve political power. opted the military and police forces and used
Thus the stage was set for ‘cacique democ- them to seize control forcibly of the assets of
racy’, in which family-based political dynas- the rural élite and pass them on to his loyal-
ties in localities perpetuated their power in a ists (Anderson, 1988). Once his authority
democratic system through a combination of was assured, Marcos declared his intention to
patronage and violence (McCoy, 1993). adopt an economic development policy based
Many contemporary political Ž gures are on export-oriented industrialisation, which
from large land-owning families that was experiencing success in other countries
amassed wealth from agricultural land hold- in the region. This earned him praise from
ings and trading during the 19th century and the middle class and local industrial interests,
later gained electoral ofŽ ce. One example is as well as foreign investors and the World
Corazon Aquino, the icon of the ‘people’s Bank. The improved security situation, the
power’ movement, who is from the Co- introduction of tax and duty concessions and
juangco family, owners of large plantations the suppression of labour unions brought in a
in Luzon. surge of foreign aid and investment, which
The dominance of land-owning families at helped to solidify Marcos’ rule (Thompson,
the local level translated into in uence at the 1995).
national level as well. During the colonial The Marcos government also used the
and immediate post-colonial period, their governance of Metro Manila to consolidate
main political concerns at the national level its rule. In 1975, Marcos issued a presidential
were with the continuation of preferential decree forming the Metro Manila Com-
treatment of Philippine agricultural products mission which consolidated 17 municipali-
in the US market (a legacy of the colonial ties under a uniŽ ed authority responsible for
era) and obtaining ‘pork-barrel’ funds from planning and policy-making. Marcos’ wife
the national government. Their concern with Imelda was appointed Governor of the new
maintaining hegemony in their areas made entity. The Marcos government undertook a
them a powerful coalition against attempts to spate of monumental building projects em-
centralise rule in the Philippines. ploying the latest in modernist architecture
2364 GAVIN SHATKIN

and building techniques (often employing that openly opposed Marcos’ rule. Thus the
crony companies), designed to project the stage was set for the ‘people’s power’ revolt
image of a modern, world-class metropolis. of 1986.
These included the Cultural Centre of the Politics in the post-Marcos era has
Philippines, the Folk Arts Theatre and the re ected this coalition of interests opposed to
Philippine International Convention Centre authoritarianism and centralisation. Foreign
(Pinches, 1994). These buildings were the and local industrial interests fear the return of
venue for a number of prestigious inter- the cronyism and national-level corruption
national events, including the 1974 Miss that had driven the economy to the brink of
Universe Pageant and the 1976 International ruin. NGOs, many of which were formed by
Monetary Fund and World Bank Conference. middle-class activists and former communist
These projects and the events they hosted, organisers, have demanded an increased role
often came at a direct cost to low-income for civil society in decision-making. The old
communities. During the preparations for the land-owning families have partially returned
Miss Universe Pageant, an estimated 100 000 to power and continue to resist efforts of
people were evicted, while during the IMF central government to usurp their authority.
and World Bank Conference, an estimated These interests have in uenced the radical
60 000 people were evicted. In all, it has experiment in decentralisation that the
been estimated that 400 000 families were Philippines has undertaken.
evicted between 1973 and 1980 (Pinches, However, the recent political change does
1994). not represent a complete return to the pre-
Opposition to Marcos’ rule gradually Marcos political order. The current political
mounted during the late 1970s and 1980s. climate is also in uenced by the fact that the
The communist New People’s Army (NPA) population has become more urban and edu-
had gained control of large parts of the cated and politicised by the experience of the
countryside by the late 1970s (Thompson, anti-authoritarian movement. As a result,
1995). The mainstream opposition to Mar- political candidates from rural land-owning
cos, led by members of prominent pre- families have often not fared well in national
Marcos political families such as former Sen- elections. The presidential elections of 1992
ators Benigno Aquino and Lorenzo Tanada and 1998 resulted in the elections of Fidel
and the son of former Senate President Gil Ramos, a former general who had Aquino’s
Puyat, advocated increasingly radical and backing and Joseph Estrada, a former Ž lm
sometimes violent forms of protest. Some star and populist politician. Metro Manila
formed alliances with the Communist Party politics has manifest elements of both the
of the Philippines (CPP), the political wing in uence of wealthy families that is the
of the communist movement. Support for legacy of colonial history and the civil so-
Marcos in the business community also ciety mobilisation that is the legacy of the
slipped, as extreme corruption and lack of anti-authoritarian struggle. Family-based
transparency had led to a soaring budget politics has made a comeback in some ar-
deŽ cit and economic stagnation. Labour un- eas—prominent old political families have
rest and a worsening security situation due to returned to power in some cities and munici-
the growing communist insurgency had fur- palities and new families have gained power
ther limited economic opportunities. By the in others. In the 1998 elections, in which
early 1980s, some in the business community several mayors reached their term limit,
began providing Ž nancial support to the Mar- many candidates were the sons or wives of
cos opposition (Thompson, 1995). The 1983 the outgoing mayors. While some of these
assassination of political opposition leader candidates fared well, others did not. In
Benigno Aquino Ž nally drove these disparate Makati, for example, the wife of outgoing
elements—the left, the middle class, landed mayor Jejomar Binay prevailed over the son
élites and business interests—into a coalition of the Marcos-era mayor, Nestorio Yabut. In
OBSTACLES TO EMPOWERMENT 2365

Pasay, several relatives of Pablo Cuneta, who between 1987 and 1997 (NSO, 1998). The
had been the country’s longest-serving country’s transformation from a primarily
mayor, ran for a variety of posts at the local agricultural economy to an industrial econ-
and national levels and all lost. In addition, omy continued during this period, as the
the strength of NGOs and increased network- share of manufacturing exports rose from
ing among CBOs, have made low-income 63.6 per cent of total exports in 1987 to 86
communities a more potent political force in per cent in 1997. Of particular note has been
many contexts and many politicians have the growth in exports of electrical com-
courted the votes of the poor by advocating ponents, from $1.1 billion in 1987 to $13.0
issues of concern to them. Thus local politics billion in 1997, indicating that the country is
has evinced a combination of clientèlism, moving towards more high-tech manufactur-
populism and grassroots political mobilis- ing.
ation. Organisations of civil society have A signiŽ cant impact of the growing im-
acquired a degree of political legitimacy, but portance of manufacturing exports in the
face entrenched interests in efforts to Philippine economy is the rapid industrialis-
improve housing in poor communities. ation and urbanisation that have occurred in
State– civil society relations with regard to areas other than Metro Manila. ‘Growth
the issue of housing for the poor have also zones’ have included the provinces immedi-
been affected by the impacts of economic ately surrounding Metro Manila, southern
globalisation. SpeciŽ cally, the Philippines’ Luzon, Cebu and economic zones created at
accelerated integration into the global econ- the former US military bases at Olongapo
omy as an exporter of manufactured goods and Subic Bay, to name some (PADCO,
has intensiŽ ed competition over urban land, 1992). Nevertheless, Metro Manila’s econ-
often pitting low-value uses such as housing omic primacy remains unchallenged. While
for the poor against higher-value commercial employment in industry in the Philippines
and industrial uses. Thus, organisations of grew from 3.08 million in 1987 to 4.45 mil-
the urban poor have often found themselves lion in 1998, Metro Manila’s share of this
in competition with corporate and land- employment remained fairly steady at around
owning interests for political in uence. The 21 per cent and its share of manufacturing
impact of globalisation on civil society par- value-added remained at around 43 per cent
ticipation in government is the subject of the (NSO, 1998). Meanwhile, the city’s share of
next section. gross national product rose from 28.7 per
cent in 1984 to 34.5 per cent in 1997. Econ-
omic growth has enhanced the city’s role as
Globalisation and the Changing Politics of
a centre for producer services—the command
Space in Metro Manila
and control centre of the Philippines. The
Eager to make up ground lost to the rapidly city has also remained the country’s premier
growing economies of neighbouring south- port—67.4 per cent of exports and 60.6 per
east Asian countries during the Marcos years, cent of imports passed through Metro Manila
the Philippine government has worked assid- ports in 1997.
uously to project an image of the Philippines Economic growth has brought with it
as the next in line in the region to achieve changing development pressures on urban
‘tiger’ status. The government has taken land. One study found that the share of in-
measures further to open the country to glo- dustrial land uses in Metro Manila increased
bal commerce, liberalise the banking indus- from 4.9 per cent in 1985 to 8.5 per cent in
try and deregulate key industries in order to 1994 (Urban Research Consortium, 1998).
encourage investment. As the security situ- Much of this development has taken place in
ation in the country has improved, these cities and municipalities on the urban fringe,
changes have paid off—Philippine exports most notably in Valenzuela, Quezon City,
grew from $5.72 billion to $25.23 billion Taguig and Paranaque (Figure 1). There has
2366 GAVIN SHATKIN

Figure 1. Development of industrial space by city and municipality in Metro Manila, 1990 – 97.
Source: NSO (1998).

also been a signiŽ cant increase in the share both commercial and business establish-
of commercial land uses in Metro Manila— ments. The largest of these is the Makati
from 3.8 per cent in 1985 to 6.1 per cent in central business district, developed by the
1994 (Urban Research Consortium, 1998). Ayala conglomerate, which has been devel-
Commercial space development has mainly oped since 1945. A largely undeveloped
taken the form of malls and high-rise ofŽ ce marsh on the urban periphery until the end of
facilities. Particularly noteworthy in the World War Two, Makati is now one of the
Metro Manila context is the existence of premier business centres in Asia. It is the
large-scale developments carried out by a home of 84 per cent of private commercial
single developer and containing a complex of banks in the Philippines, as well as 9 of the
OBSTACLES TO EMPOWERMENT 2367

country’s 10 largest insurance Ž rms and 48 endless, as the lack of public space in the city
of its 56 embassies (Gloria, 1995). More and congestion on roads leaving the city
recently, the Ortigas district in Mandaluyong render these establishments one of the few
has emerged as a potential challenger to forms of recreation available to most people.
Makati’s supremacy, having attracted the Commercial space development has occurred
ofŽ ces of the Asian Development Bank and mostly in central city areas, most notably in
other prestigious institutions. As in some Makati, but has also been prominent in Man-
other Asian mega-cities, malls have become daluyong, southern Quezon City and Manila
a ubiquitous feature in Metro Manila life. (Figure 2).
The demand for mall development seems The rapid pace of real estate development

Figure 2. Development of commercial space by city and municipality in Metro Manila, 1990 – 97. Source:
NSO (1998).
2368 GAVIN SHATKIN

in Metro Manila presents an opportunity for Metro Manila local governments ranged
city and municipal governments. Saddled from 486 pesos per capita in Malabon, to
with responsibility for a variety of services as 7656 pesos per capita in Makati (Figure 3).
a result of decentralisation, local govern- Cities with especially low revenue are likely
ments are under pressure to generate revenue to lack basic capacities in planning and pro-
through property and business taxes. Each of gramme development and implementation,
these sources of revenue now represents a thereby reducing their responsiveness to their
larger proportion of local government bud- constituents.
gets in Metro Manila than the Internal Rev- Thus economic changes associated with
enue Allotment (IRA), the sum provided by globalisation have weakened the ability of
the national government to all cities and CBOs to in uence government. Rapid urban-
municipalities. Local government ofŽ cials isation has intensiŽ ed development pres-
also often have a vested interest in encourag- sures, while uneven access to resources
ing local economic development, both be- among cities has weakened the capacity of
cause in uential businesspeople make some city and municipal governments. Yet
powerful political allies and because ofŽ cials both of these factors vary between cities and
themselves often come from families with municipalities in different parts of Metro
real estate interests. Thus city and municipal Manila and speciŽ cally between central areas
governments have increasingly competed to and the urban fringe, suggesting that local
attract investment in the form of commercial governments in some areas may be more
development, industrial development, high- open to civil society participation than oth-
value residential development and develop- ers. The next section will provide a compara-
ment of institutions such as colleges, tive examination of three case studies of
hospitals or government ofŽ ces. state– community relations in Metro Manila,
The imperative of local economic develop- emphasising the differences in civil society
ment for local government—and the conse- participation among them.
quent competition among them to attract
investment—has two major consequences for
Local Politics and Informal Settlements:
relations between local governments and
Three Case Studies
CBOs in informal settlements. First, local
governments may be inclined to discourage Large-scale urban community organising in
participation by CBOs, as they may see the the Philippines can be dated to the early
interests of informal settlements as 1970s, when the Philippine Ecumenical
con icting with the objective of local econ- Council for Community Organising
omic development. Informal settlements of- (PECCO) began training community organis-
ten occupy developable land, or land that ers in confrontational Alinsky-style organis-
would be required for infrastructure improve- ing tactics. CBOs experienced a number of
ments such as road improvements or the signiŽ cant successes in the 1970s in resisting
development of mass transit systems. The eviction, legalising tenure and improving in-
second consequence is that, because of varia- frastructure and services in communities.
tions in the ability of localities to attract During the martial law period, CBOs and
investment, there is a disparity in their ability NGOs faced oppression and many organisa-
to generate revenues. Inner-city areas and tions formed alliances with the National
large population centres are prime targets for Democratic Front (NDF), a political front
investment in retail and business ofŽ ce de- organisation for the Communist Party of the
velopment, which generate a great deal of Philippines. In recent years, government re-
revenue. Areas on the urban fringe and those pression has eased and the national govern-
that do not have adequate transport links ment has moved from a project to a
have greater difŽ culty in attracting such in- programme focus in its housing activities. In
vestment. In 1997, revenue collection of addition, funding to NGOs for community
OBSTACLES TO EMPOWERMENT 2369

Figure 3. Revenue per capita for cities and municipalities of Metro Manila, 1997. Source: Department
of Finance, Makati (unpublished data).

improvement projects has increased. In this ments are currently registered with the Home
context, many CBOs and NGOs have moved Insurance Guarantee Corporation, a national
from protest activities to service delivery and government agency that administers housing
have increasingly attempted to engage Ž nance programmes and 906 are registered
government in improvement projects. with the Presidential Commission on the Ur-
It is difŽ cult to determine the extent of ban Poor (PCUP, 1998; Housing Insurance
community organising in Metro Manila. Ap- Guarantee Corporation, unpublished data).
proximately 2000 CBOs in informal settle- However, these likely represent only a frac-
2370 GAVIN SHATKIN

tion of the actual number of organisations. A owners, the political and economic costs to
large number of NGOs have formed to pro- local governments of enhancing access to
vide technical assistance to CBOs in areas land for the poor will be great. Local govern-
such as organisational development, legal ments may therefore be inclined to discour-
training and assistance and the establishment age participation by urban poor groups in
of livelihood and infrastructure improvement decision-making. CBOs are likely to be more
projects. Many CBOs also belong to CBO able to in uence government to legalise
federations that have organised at the city, housing where large amounts of vacant land
metro and national levels to lobby for local are available, where land ownership is in
government compliance with UDHA, for the con ict or where much of the vacant land is
formation of urban poor affairs ofŽ ces in city publicly owned (unless this land is needed
and municipal governments and for the pre- for important public projects).
vention of evictions. Some federations have The second factor is the local govern-
also backed political candidates from infor- ment’s access to sources of revenue. Two of
mal settlements. the major sources of revenue for local gov-
Experiences of NGOs and CBOs in work- ernments in Metro Manila are business and
ing with local governments have been mixed. property taxes and the level of local govern-
In some cities, these organisations have ment revenue is therefore largely a function
gained representation in local development of the amount of business investment coming
councils and other consultative bodies, but into localities and property values. Local
they have failed to do so in others. Urban government revenues from property taxes
poor affairs ofŽ ces have become important may be limited by the speculative holding of
channels for demand-making by urban poor undeveloped land. Where local governments
communities in some local governments, lack Ž nancial resources due to limitations in
while in others they have not been estab- revenue-generating capacity, they will be
lished at all. UDHA regulations regarding the less able to establish programmes to legalise
provision of adequate relocation in the case and improve informal settlements.
of eviction have often not been implemented The third factor is the nature of the local
and some local governments have been slow economic base and the relationship between
to comply with the UDHA mandate that they powerful economic actors and local govern-
conduct an inventory of vacant lands for ment. Where local ofŽ cials have a strong
relocation of informal settlers. vested interest in local economic develop-
Thus the question emerges as to why ment, either because of their direct involve-
CBOs and NGOs have succeeded in ment in the local economy or their ties to
in uencing local governments in some areas, local economic interests, they will be less
while they have failed to do so in others. it is likely to be responsive to the interests of
argued here that four contextual factors residents of informal settlements. This is par-
strongly in uence the degree to which CBOs ticularly true of smaller cities and municipal-
and NGOs are able to in uence local govern- ities, where a few families may dominate
ments. The Ž rst is the intensity of land devel- local economic and political power. The Ž nal
opment pressures in the locality. A major factor is the strength of community organis-
constraint on the availability of land for ing in the locality. This is dependent on a
housing low-income people in Metro Manila number of factors, including the presence of
is the fact that land-owners hold large NGOs in the locality, the historical develop-
amounts of developable land for speculative ment of community organising and relations
purposes. This problem is exacerbated by a between communities and local govern-
property tax system that provides incentives ments.
for such speculation. Thus, in heavily ur- The remainder of this section will illus-
banised or rapidly developing areas where trate the impact of the factors mentioned
extensive tracts of land are held by private above on CBO and NGO participation in
OBSTACLES TO EMPOWERMENT 2371

government with reference to two cities after Marcos’ rule, all three candidates were
(Quezon City and Makati) and one munici- sons of former mayors of Navotas. The even-
pality (Navotas) in Metro Manila. The three tual victor in the contest, Felipe del Rosario
areas differ considerably in terms of their Jr, came from a prominent family that grew
population density, socioeconomic compo- wealthy from the Ž shing industry and that
sition, economic base, historical develop- has been in uential in local politics since the
ment and other factors. They also differ in early part of the century. He was also the
the degree of civil society participation in director of the Inter-island Deep Sea Fishing
government. A brief description will be Association of the Philippines, a group repre-
given of how these differences have impac- senting major Ž shing magnates in the mu-
ted on the capacity of CBOs to in uence nicipality who were allegedly instrumental in
local governments. Ž nancing his campaign. In the 1998 elec-
tions, del Rosario had reached his term limit
Navotas. Navotas is a municipality of and his wife ran for mayor and was initially
229 039 people located on a narrow strip of declared the winner. However, allegations of
land on Manila Bay north of Manila. The fraud in the elections eventually resulted in
municipality is ideally located near waters her losing her position to Efren Bautista, a
that are well-suited for deep-sea Ž shing and local entrepreneur who had made a fortune in
Ž shing has been its major industry since the dry docking, shipping and the restaurant
19th century. Today, the Navotas economy business.
remains largely based on Ž shing and related Relations between the local government
industries, such as canning, shipping and the and communities have been shaped by a
production of Ž sh sauce. It is estimated that combination of clientèlism and populism.
70 per cent of Navotas residents are depen- Formal channels for representation by infor-
dent on these industries (TWSC, 1988). The mal settlements in the political process have
job opportunities offered by the Ž shing in- been quite limited. There is no urban poor
dustry have acted as a magnet for a steady affairs ofŽ ce in the municipality and civil
stream of migrants from rural areas, mostly society representation on the local develop-
from the Visayan Islands in the central part ment council is dominated by élite organisa-
of the country. As most of the limited tions. Navotas also has the second-lowest
amount of land in the municipality has long revenue collection for a local government in
since been developed, most of these migrants Metro Manila, thereby restricting its ability
have settled in informal settlements built on to plan for alternative housing solutions for
stilts along Manila Bay. The presence of the urban poor. The lack of land for econ-
these densely populated settlements gives the omic development has led the municipal
city an astounding population density of government to pursue the development of a
more than 88 000 people per square kilome- 48 billion peso (US$1.26 billion) business
tre, or about 6 times the Metro Manila aver- and commercial space development project
age (NSO, 1998). to be located on land to be reclaimed along
The Navotas economy is dominated by a the Navotas shoreline. The project is de-
handful of families that own large Ž shing signed to capitalise on Navotas’ proximity to
vessels, shipyards and food processing the densely populated cities of Manila and
plants. This élite group also dominates the Caloocan. While a recent environmental im-
political scene (TWSC, 1988). The continued pact assessment found that the project would
importance of Ž shing in the local economy not have any major social impact, a local
has meant that the composition of the local alliance of organisations representing the ur-
élite has been fairly stable and, as a result, ban poor, Alyansa at Pagkakaisa ng mga
there has been some intergenerational politi- Samahan ng Navotas (ALPASAN), believes
cal competition between these élite families. the project is likely to displace many of the
In the mayoral elections of 1988, the Ž rst 26 000 families that it estimates reside along
2372 GAVIN SHATKIN

the Bay (Gaia South Inc., 1996). Yet the ment councils, as well as in a number of
municipality’s consultation with the informal other committees that provide civil society
settlers along Manila Bay regarding this proj- input into housing policy and speciŽ c hous-
ect has been minimal. ing projects. In addition, Quezon City con-
In sum, CBOs exercise very little political tains a large number of NGOs, many of
in uence in Navotas local government. Re- which have ties to the many prominent uni-
source constraints on local government have versities in the city. Thus informal settle-
limited their interaction with informal com- ments are relatively well organised. One of
munities and the limited availability of land the most well-organised areas is the National
in the municipality has created an obstacle to Government Centre (NGC), a large piece of
possibilities for in-city relocation. In ad- land in northern Quezon City. In the 1950s,
dition, demand for centrally located ofŽ ce the NGC was set aside by the national
and commercial space from heavily popu- government as the future site of the Philip-
lated and densely built-up areas adjoining pine capital, but due to slow implementation
Navotas, such as Manila to the south and of the project informal settlers gradually oc-
Caloocan to the east, have created pressures cupied the area. Since the end of the Marcos
for the proposed reclamation project. Finally, era, several large CBO federations have per-
the existence of a political élite with econ- suaded the national government to grant a
omic interests in the locality has created a large part of the NGC for settlement by the
climate of clientèlism that has hindered dia- more than 50 000 families that now occupy
logue between the municipal government and the area. One reason for their success has
communities. been the active role of NGOs together with
the presence of local government ofŽ cials
Quezon City. Quezon City occupies one- who have generally supported the CBOs.
quarter of Metro Manila’s land area to the Several factors have contributed to the
north-east of Manila city. With a population relatively benign response of Quezon City
of over 2 million, it is the most populous city government to the situation of informal set-
in the metro area (NSO, 1998). The city was tlers. The availability of large tracts of vacant
created in 1939 during the presidency of land, much of which is government-owned,
Manuel Quezon and in 1948 was ofŽ cially has provided the local government with the
proclaimed the capital of the Philippines. means to accommodate at least some infor-
Since that time, the city has grown rapidly. mal settlers. The existence of a large popu-
Many government facilities have relocated to lation of informal settlements, often in large
Quezon City and substantial residential and agglomerations such as that in the NGC, has
commercial development has occurred as made housing for the urban poor a populist
well. In addition, the existence of large tracts political issue. Consequently, the mayor and
of vacant land in the city has attracted low- several of the city councillors have taken
income families in recent years and currently visibly pro-poor stands on many issues.
over one-half of the city’s population lives in Finally, NGOs have played a key role as
informal settlements. advocates and technical-assistance providers
In contrast to Navotas, Quezon City has for CBOs. Nevertheless, the efforts of Que-
proved relatively responsive to co-operation zon City government have had a limited
with CBOs. The city has an active urban impact, largely due to the fact that the
poor affairs ofŽ ce that has acted as an origin- government has been unwilling to allocate
ator for 82 Community Mortgage Pro- large sums of money to housing pro-
gramme loans, although these projects have grammes.
beneŽ ted less than 4000 households, or less
than 2 per cent of the city’s informal settlers. Makati. As noted earlier, Makati has grown
Channels for NGO and CBO consultation in the past several decades to be the econ-
with government exist in the local develop- omic centre of the Philippines. However,
OBSTACLES TO EMPOWERMENT 2373

while the city’s name elicits ofŽ ce buildings, subsequently re-elected twice, largely on the
malls and gated sub-divisions, Makati is in power of a political machine built upon
fact composed of three distinct parts. The Makati’s economic resources. Binay has un-
Ž rst is the central business district. This area dertaken a spate of politically popular
is largely privately managed and handles its projects, such as the building of schools and
own security, garbage collection and plan- basketball courts, and road paving. He has
ning. The second area consists of the 17 also developed direct links to low-income
barangay that surround the business district, communities. For example, he makes it a
which are generally composed of lower- and point to visit personally funerals in such
middle-income residential areas. Finally, areas and provides cash gifts to relatives of
there is Fort Bonifacio, an expanse of land to the deceased. Binay was ineligible to run for
the north-west of the central business district re-election in 1998 due to term limits. He
that was formerly a military barracks. In subsequently sponsored his wife’s successful
1995, part of Fort Bonifacio was purchased bid to replace him.
by the Metro PaciŽ c Group, a consortium of While Makati mayors have courted the
business interests, for approximately $1.4 political support of the poor, they have also
billion, to develop an ofŽ ce and commercial been wary of the potential threat CBOs could
complex (Gloria, 1995). pose to development initiatives in the city.
Overall, the population of Makati was Thus, city government has discouraged com-
484 176 in 1995 and the PCUP estimated munity organising and has attempted to as-
that 44 per cent of that number were residing sert in uence in communities through the
in low-income families. The presence of a barangay-level government. There is mini-
large low-income population in the city has mal consultation between the city govern-
contributed to the populist nature of local ment and the urban poor and there is no
politics. Local politicians have undertaken a urban poor affairs ofŽ ce. There are few
number of initiatives to foster a political base NGOs that work with informal settlers or
in low-income communities, utilising the city CBO federations in the city and the city
government’s considerable revenue- government usually only directly interacts
generating capacity to populist political ends. with informal settlements when it is planning
For example, under a plan developed by an eviction.
Marcos-era mayor Nestorio Yabut and ex-
panded under recent administrations, low-
Conclusions
income Makati residents are given free ac-
cess to medical treatment at the Makati The brief case studies outlined above high-
Medical Centre, one of the most advanced light some of the constraints faced by NGOs
hospitals in the country (Gloria, 1995). The and CBO federations in attempting to expand
city also has an exceptionally well-Ž nanced legal access to housing for the poor. In
school system. However, due to the high Makati and Navotas, CBOs have generally
value of land in the city and the consequent been denied in uence in decision-making
opportunities for graft from land transactions due to obstacles posed by political and econ-
and development, local government has omic structures in the two localities, as well
maintained a strong grip on decision-making as the lack of available land that the govern-
in local development. ment is willing to allocate for socialised
Since the end of the Marcos era, Makati housing. Quezon City has shown greater
politics have been dominated by Jejomar Bi- openness to civil society participation, but it
nay, a man of humble origins who became a has as yet not allocated signiŽ cant budgetary
prominent human rights lawyer and anti- resources to urban poor housing.
authoritarian activist during the Marcos era. In much of the literature on urban develop-
Binay was chosen by President Corazon ment, reforms for decentralisation and civil
Aquino in 1986 to replace Yabut. He was society participation in urban governance are
2374 GAVIN SHATKIN

represented rather simplistically as a trans- era, institutions of civil society that represent
formation from a top-down to a bottom-up the urban poor groups continue to face
model of planning. Democratisation is often signiŽ cant obstacles in their efforts to
represented as an evolutionary phenomenon in uence government.
resulting from popular movements against
authoritarian and centralised decision-
making systems. In this paper, it has been References
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