Comparative Capacity

Development Profiles of
China and the
Philippines:
Convergence and
Divergence
Jephte O. Munez, CPA, CrFA,
MBA, MSF
Manila, Philippines
Developmental Aspects
Development
Administration
Nations prepare
development plans
but Herbert Emmerich
estimated that eighty
(80) percent of these
development plans
worldwide are
incapable of being
fulfilled due to
administrative lacuna
(Adah and Abasilim,
2015)
Development
Administration
 As a means of program
implementation for socio-
economic progress, effective
monitoring of the nation-building
process and administrative
modifications to keep the
establishment updated (Harry
Friedman)
 As the course of guiding a firm on
the way to the accomplishment of
progressive political, economic
and social objectives, which are
authoritatively determined in one
manner or the other (Edward
Weidner) (Makinde, 2005)
Capacity Development
Framework
Capacity Development
 Capacity Development is about
transformations that empower individuals,
leaders, organizations and societies. If
something does not lead to change that
is generated, guided and sustained by
those whom it is meant to benefit, then it
cannot be said to have enhanced
capacity, even if it has served a valid
development purpose.
Why Capacity Matters
“The old model has been based on (the)
mistaken assumption … that is possible simply to
ignore existing capacities in developing
countries and replace them with knowledge
and systems produced elsewhere – a form of
development as displacement, rather than
development as transformation”
Capacity for Development: New Solution
to Old Problems
 The Evolution of UNDP’s
Capacity Development Approach
Assumption The Practice The Result
Developing Development Aid: • Greater focus on
countries need Developed countries investment and
money lend or grant money reporting than on
to developing results.
countries • Mounting debt
• Dependence on
foreign aid
• Projects end
when money runs
out.

Source: UNDP Capacity Development Primer

 The Evolution of UNDP’s
Capacity Development Approach
Assumption The Practice The Result
Developing Technical • Projects launched
countries should just Assistance: but disconnected
model themselves Foreign experts from local goals
after the developed come in to operate or priorities.
ones their own projects, • Assumes few or
which they expect no resources
to yield similar results available locally.
to those seen in • Dependence on
developed foreign experts
countries. • Expertise not
always transferred
from foreigners to
locals.

Source: UNDP Capacity Development Primer

 The Evolution of UNDP’s
Capacity Development Approach
Assumption The Practice The Result
Developing Technical • The externally-
countries should just Assistance: driven mode3l
model themselves Foreign experts may ignore local
after the developed come in to operate realities.
ones their own projects, • Idea of assistance
which they expect highlights unequal
to yield similar results relationship
to those seen in between
developed developed and
countries. developing
countries.

Source: UNDP Capacity Development Primer

 The Evolution of UNDP’s
Capacity Development Approach
Assumption The Practice The Result
Developing Technical • Local expertise
countries should Cooperation: enhanced
partner with Greater emphasis on • Projects
developed ones training, transferring somewhat more
knowledge, based in line with local
on national policies priorities and
and priorities goals.
• Driven by outside
forces,
opportunities
missed to develop
local institutions
and strengthen
local capacities.
Source: UNDP Capacity Development • Expensive
Primer
 The Evolution of UNDP’s
Capacity Development Approach
Assumption The Practice The Result
Developing countries Capacity Development: • Make the most of local
should own, design, A focus on empowering resource – people,
direct, implement and and strengthening skills, technologies,
sustain the process endogenous capabilities institutions – and build
themselves. on these.
• Favours sustainable
change
• Takes on inclusive
approach in
addressing issues of
power inequality in
relations between rich
and poor, mainstream
and marginalized
countries, groups and
Source: UNDP Capacity Development Primer individuals)
 The Evolution of UNDP’s
Capacity Development Approach
Assumption The Practice The Result
Developing countries Capacity • Emphasizes deep
should own, design, Development: lasting
direct, implement A focus on transformation
and sustain the empowering and through policy and
process themselves. strengthening institutional reforms.
endogenous • Values best fit for
capabilities the context over
the best practice,
as one size does
not fit all.

Source: UNDP Capacity Development Primer

 Barometers of Capacity
Development
 The Enabling Environment
 The Organizational Level
 At the Individual Level
Convergence and Divergence in Capacity
Development
Official Development Assistance
 ThePhilippines and China received
Official Development Assistance from
other countries, particularly from the
United States of America and Japan*.
Country Total ODA Status
as of 2018
Philippines US $ 14.51 Billion Active*
China US 228.231Billion From World
Bank inclusive of
military
expenditure**
* As of December 31, 2018
** https://www.ceicdata.com/en/china/defense-and-official-development-assistance (2017)
Convergence and Divergence in Capacity
Development
Official Development Assistance to the Philippines
ODA ODA Country /
(Value, in US $) % International
Organization
5.98 Billion 41.20 % Japan
3.13 Billion 21.57 % World Bank
2.24 Billion 15.43 % Asian Development
Bank
.807 Million 5.57 % USA
.660 Million 4.55 % Korea
1.693 Billion 11.68 % Other ODA partners*

14.51 Billion 100.00%

Source: NEDA (2018)
**Australia, UN System, Asian Infrastructure Investment Bank, France, European Union, China, Germany, OPEC Fund for
Economic Development, Italy, Canada, Spain and New Zealand
Convergence and Divergence in Capacity
Development
Official Development Assistance to the Philippines
 The loans and grants are much needed to pursue
efforts in social and physical development reforms
to reach set goals. (Socio-Economic Planning Sec.
Ernesto Pernia)
 The Duterte Administration has adopted the “Build,
Build, Build” program as well as the adoption of
the Universal Access to Quality Tertiary Education
and Universal Health Care and the continuation of
Conditional Cash Transfer program.
 Questions: Has the ills of development addressed?
Has corruption levels gone down and systemic
reforms already set in place?
Convergence and Divergence in Capacity
Development
Official Development Assistance to China
 From Japan, approximately 3.6553 Trillion Yen
from 1979 to 2016. The breakdown are as
follows:
Yen Loans 3.3164 Trillion Yen
Yen Grants in Aid 157.2 Billion Yen
Yen Technical
Cooperation 181.7 Billion Yen
Total 3.6553 Trillion Yen
(US $ 196.227 Billion)*
Source: https://www.mofa.go.jp/policy/oda/region/e_asia/china/index.html
• https://jpy.fxexchangerate.com/usd/2016-currency-rates.html
Convergence and Divergence in Capacity
Development
Official Development Assistance to China
 Past ODA projects in China included large-scale economic
infrastructure projects, including the building of roads, airports and
power stations, as well as infrastructure projects in medical and
environmental areas. These projects have played a significant role in
the realization of China's current economic growth.
 For example, through Japanese loan aid (yen loans), a total length of
5,200 km of railway lines were electrified, and in the area of seaports,
approximately 60 large-size berths capable of taking ships in excess of
10,000 tons were built. In addition, the China-Japan Friendship Hospital
that was established through grant aid is one of the major medical
institutions in the Beijing metropolitan area, treating approximately 3,000
patients each day.
 Assistance includes more than infrastructure projects. In the area of
technical cooperation the Japan International Cooperation Agency
(JICA) has accepted trainees from China for the purpose of providing
assistance to cultivate administrative personnel. As of FY2013 JICA had
accepted a cumulative total of over 35,000 trainees to nurture the
human resources required for industrial promotion. JICA has also
dispatched 9.027 experts to China.
Source:
https://www.mofa.go.jp/policy/oda/region/e_asia/china/index.html
Convergence and Divergence in Capacity
Development
Official Development Assistance to China
 During the October 25, 2018 state visit of Japan Prime
Minister Shinzo Abe, the ODA to China was
announced to have ended. China is now an
economic tiger and considered the second largest
economy in the world, next to the United States of
America, and overtook Japan in terms of Gross
Domestic Product is concern since 2010.
 China provides ODA to other developing countries.
Based on a study conducted by Aid Data, for a
fifteen year- period (2000-2015), China has already
provided foreign aids to developing countries
amounting to US $ 354.4 Billion for humanitarian,
health, economic and socio-economic projects.
Convergence and Divergence in Capacity Development
Economic Development Profiles of China and the Philippines
 The Philippines and China are considered developing countries but
in varying levels.
 China is considered the second largest economy in the world and
soon to lead with its growing GDP. Employment generation
continuously increased with industrial production of consumer
goods across the globe is being manufactured in China due to
cheap labour compared to other countries elsewhere. China has
practiced “Market Leninism”, a Chinese model of economic
development by doing structural transformation, due to economic
liberalization and institutional transition. The Chinese experience
demonstrates the superiority of evolutionary, experimental and
bottom-up reforms over the comprehensive and top-down, big-
bang approach. (Lin and Wang, 2012:2)
 The Philippines’ GDP has been on an increasing trend with the
highest in 2018 at 330.91 Billion, with the highest coming from the
Services Sector, followed by Utilities sector. With the diaspora of
Filipinos all over the world, the continuous growth of remittances
from Overseas Filipino Workers support the highest GDP sector in
the service sector.
Convergence and Divergence in Capacity Development
Political Development Profiles of China and the Philippines
 Political development in the Philippines can be described
to be lethargic and divisive, leaving majority of the
common Filipinos politically immature in choosing their
elected political leaders. Political dynasties continued to be
prevalent across the country. Incidents of poverty has
declined to 21 percent of the 108,562,976 (as of October
21, 2019).
 On the other hand, the political development of China has
been radical in a positive light. China went through various
phases of transitions (from imperial rule, creation of the
republic, warlord politics, Japanese invasion, civil war,
establishment of the People’s Republic of China, land
reform, socialist transition, cultural revolution and reform
and opening up of China. Many changes were seen but
many things remained the same in China.
Convergence and Divergence in Capacity Development
Political Development Profiles of China and the Philippines
 In general, Filipino leaders are still guilty of lip service with too much
debate on matters of national interest yet still with dismal results.
The Duterte administration has been strong in its fight against the
drug war. However, the problem continue to perpetuate in the
countryside and still an electoral promise that will have to be
accomplished in the remaining half of the 6-year administration of
Pres. Duterte. Certain leaders are making a dent, like Manila City
Mayor Isko Moreno Dumagoso, and performance of Local
Government Units are continuously being monitored by the
Department of Interior and Local Government using e-reporting.
Participation is still limited, via social media, but need to be
translated to a more active citizens’ participation to national and
local affairs.
 The Chinese counterparts have the political will to effect change
and bring about the fruits of economic development through
collaborative governance mechanism. Example: Private citizens
may be commissioned by the Chinese government to conduct
state audit.
Convergence and Divergence in Capacity Development
Social Development Profiles of China and the Philippines
 For the Philippines, social development through advocacy,
technical assistance and capacity development
arrangements are provided by UNDP. Social protection
programmes are supported. The programme will continue
to facilitate local communities’ access to and use of assets
and revenues from sustainable management and
conservation of environmental and mineral resources and
overseas remittances for local development. Also, funding
is being provided by international organization to increase
capacities and leadership skills of national and local
officials to plan and implement sustainable, comprehensive
and effective responses to health issues in the Filipino
society (e.g. HIV and AIDS management and educational
campaign)
Convergence and Divergence in Capacity Development
Social Development Profiles of China and the Philippines

 There is a growing need to increase the

participation of the poorest and the most
vulnerable in China’s social and economic
development. International organizations, such as
UNDP, provide policy and capacity building
support to deepen the reforms that address
disparities, promote equitable distribution of public
resources and foster equal access to social
services and livelihood support by poor
communities and vulnerable groups (e.g. the
elderly, the disabled and migrant workers) are
strengthened, from provincial to the township
levels.
Convergence and Divergence in Capacity Development
Cultural Development Profiles of China and the Philippines
 Filipinos and Chinese are resilient people, with forefathers
who were diligent to make outstanding monuments (Rice
Terraces for the Philippines and the Great Wall for China
respectively). Filipinos and Chinese diaspora, as migrant
workers, as immigrant citizens, in search for the promise
land, where milk and honey glows, for those willing to work
hard. Concern and loyalty to the family is very much
evident among Filipino and the Chinese people.
 Difference on the population policy has drawn the line.
One child policy with financial penalty for violation ranked
China on the 164th place with 0.43 percent population
growth rate. On the other hand, the Philippines has a
population growth rate of 1.59 percent (2016), ranked 73rd
place worldwide.
Convergence and Divergence in Capacity Development
Human Development Profiles of China and the Philippines
 China is under Category 2, with Human Development Index
of 0.752, 86th place of 189 countries
 Philippines is under Category 3 with Human Development
Index of 0.699, 113th place of 189 countries.
The Human Development Index is a statistic composite index
of life expectancy, education, and per capita income
indicators, which are used to rank countries into four tiers of
human development. A country scores a higher HDI when the
lifespan is higher, the education level is higher, and the gross
national income GNI per capita is higher. It was developed
by Pakistani economist Mahbub ul Haq, with help from Gustav
Ranis of Yale University and Meghnad Desai of the London
School of Economics, and was further used to measure a
country's development by the United Nations Development
Programme's Human Development Report Office.
Convergence and Divergence in Capacity Development
Civil Service System Profile of China and the Philippines
 PhilippinesCivil Service System is a fusion
of the East and the West, with local
culture considerably changing the
Weberian principles.
 Chinese Civil Service System is
predominantly unified with a central
government that presides over 30
provinces.
Convergence and Divergence in Capacity Development
Civil Service System Profile of China and the Philippines
Criteria China Philippines
On promotion Based on support Based on
secured from competence but
peers and from strongly on
relevant leaders. cultural ties
On job security Socialist ideology Security of tenure
is imbued. is not absolute.
On requirements Evidence of job Pass written and
competence, oral examinations
passing the CSC
exam and high
Individual
Performance and
Competency
Report
Convergence and Divergence in Capacity Development
Civil Service System Profile of China and the Philippines
Criteria China Philippines
On compensation Job salary scale Job salary scale
depends on job depends on job
grade grade.
On politization Highly politicized Civil servants are
and should be expected to be
loyal to the politically neutral,
leaders of the faithfully
central implementing
government policies
dependent on
their personal
views bout
current
administration.
Convergence and Divergence in Capacity Development
Civil Service System Profile of China and the Philippines
Criteria China Philippines
On public opinion Elite rules the Civil servants are
country. Political generally viewed
neutrality and as corrupt,
protection from arrogant,
political influence indifferent and
is not evident. lack the
motivation to
perform well.
On reform and Economic and Constant
diffusion administrative reorganization
reforms for better and reforms aim
service to the to streamline the
public. bureaucracy, to
be competitive
workforce.
Convergence and Divergence in Capacity Development
Civil Service System Profile of China and the Philippines

Conditionalities of the Civil Service Reforms:

1. Reorganize the civil structure to reduce the
size of the bureaucracy.
2. Restructure and reduce the public sector
through privatization
3. Introduce competition into the residual
public service through contracting out of
public services to the private sector.
4. Enhance efficiency and obtain “value for
money” via performance management and
auditing (Minogue 2001)
Core Issues of Capacity
Development
 Framework for Measuring
Capacity Development
Input: Availability of Resources and Competencies

China Philippines
Human (2019) 7,000,000 1,835,118
Financial As ODA provider As ODA
US $ Recipient US
14.77 Billion
Physical Score of 0.391 Score of 0.336,
Ranked 19th Ranked 24th
Place in the APII Place in the APII
2015 2015
Framework for the Measuring
of Capacity Development
 On Leadership
Philippines – The leader to provide an
enabling environment to encourage
bureaucrats to work for the benefit of the
people. Unorthodox approach need to fit
the demands of socio-cultural and political
environment for change to happen.
China – the leader has the support of the
CPC to carry out the reform.
Framework for the Measuring
of Capacity Development
 On Knowledge
Philippines – Universal Access to Quality Tertiary
Education, Kinder to Grade 12 program, quality
improvement and internationalization, the
Philippine Qualifications Framework
China – Expand pre-school and compulsory
education, greater equity in access to good
education, enhance quality education and
better data and evaluation measures.
Framework for the Measuring
of Capacity Development
 On Accountability
Commission on Audit is mandated to conduct
financial audit and performance audit on the
financial transactions of the National Government
(NG) offices and agencies, Local Government Units
(LGUs), Government-Owned and Controlled
Corporations (GOCCs) and Constitutional
Commissions. Also, Agency Performance Review
carried out by the Department of Budget and
Management’ Performance Challenge Funds for the
Local Government Units and the use of Citizens
Report Card.
Framework for the Measuring
of Capacity Development
 On Accountability
In China, there is a need to improve
accountability relationships for public
service delivery, define accountability
relationships and reconcile competing
interests within government structures
through an enhance performance
evaluation system.
Framework for the Measuring
of Capacity Development
 On Regulatory Governance
Philippines – Human Rights-based and gender
equality reflected into plans and budget.
Citizen engagement and active citizen
participation to have a voice and influence
public debates on development issues.
Environmental governance and enhancing
social accountability in public service delivery.
Installation of citizens’ monitoring tools and
institutional mechanism in key sectors to
promote integrity and accountability, especially
in public finance and delivery of public services.
Framework for the Measuring
of Capacity Development

 On Regulatory Governance
China = it is characterized by institutional
framework for market forces across various
industries for the rule of law to prevail.
Evaluation Capacity
Development
a. The policy and institutional context of evaluation
Policy frameworks for public sector results-
orientation
Organizational learning vs management
accountability
Linkage between evaluation and policy formulation,
resource planning, programme monitoring and
management
b. The practice of evaluation
Evaluation criteria and conceptual approaches
Options for organization of the evaluation function
Skills, resources and methodologies
Challenges of evaluation in specific sectors e.g.
science and technology
Concluding Remarks
 Convergence of China and the Philippines
* Developing countries
* Resilience
 Divergence of China and the Philippines
* Landmass
* ODA dependence
* Political system
* Civil Service System
* Citizen Participation
* Results-based performance evaluation
system
The winds of change have headed East and shall call for the
capacity to absorb development in a sustainable manner for
the present and future generations.