Session 5: Monitoring the Achievement of the MDGs Through CBMS

Transcription

1 378 Proceedings of the 2008 CBMS Network Meeting Session 5: Monitoring the Achievement of the MDGs Through CBMS development plans of both the municipality and the barangays to ensure sustainability even beyond CBMS for us is a very important tool in localizing the MDGs. Through this, we were able to analyze the current situation and identify trends in Orion. Orion s strategy in localizing the MDGs is not at all different from other LGUs. However, instead of the municipality alone identifying PPAs to address critical areas of poverty alleviation, education, health, and environment, all the 23 barangays have synchronized actions in response to problems found. The presence of CBMS paved the way to a shift from general to specific approach in responding to MDG concerns. The lack of available data pushed us to tackle the problem from the general perspective. Now that data are available, solutions to a problem are being infused right were the problem is happening. It is worthy to note that outright response was immediately made on some unmet needs. A few days after the barangay validation, a water tank was put up through the initiative of Congressman Albert Garcia to respond to the problem of Puroks 3, 4, 6 and 7 of Barangay Bilolo, which had been lacking access to potable water. In education, the 2006 CBMS survey revealed that 516 or 19.4 percent of children aged 6 12 are not attending elementary school. Access to nearby schools and financial constraints are the two main reasons why they do not attend school. Responding to this, Barangay General Lim passed a scholarship program funded out of its 20 percent development fund to sustain the education of at least 15 children. The municipality also granted scholarship to needy children identified through the CBMS data as confirmed by school principals. Among children years old, CBMS survey result showed 415, or 28 percent, are not attending high school. Spatial analysis of the result showed that barangays in the periphery have high cases due to inaccessibility of the existing high school. Most of these cases belong to families living below the poverty threshold. With this data, the municipal government opted to provide scholarship to 320 high school students. In health and sanitation, CBMS survey result revealed 77 cases of malnourishment representing 1.5 percent of the total population of Raymundo.pmd 378 5/25/2010, 4:29 PM

2 Monitoring the Achievement of the MDGs Through the CBMS Antonio L. Raymundo, Jr. 379 children aged 0 5. The LGUs immediately responded to the cases. In Barangay Sabatan, 30 malnourished and underweight children were subjected to a 120-day feeding program. Of the 18 percent or 2,511 persons unemployed, further analyses were made. Coordination of the Public Employment Service Office (PESO) with barangays was strengthened to reach out to those looking for jobs. Those lacking skills were given training through the Technical Education and Skills Development Authority (TESDA) Center in the municipality. They were given skills that matched the labor demand in the nearby Subic Bay Metropolitan Authority and the Bataan Economic Zone. On the other hand, livelihood trainings were provided to women in partnership with some academic institutions through the Bataan Peninsula State University (BPSU) extension program. List of those deserving of the training were also provided by the CBMS survey. MDGs 1, 2, 4 and 5 are about the needs of children 0 17 years old, of women, and of the community as a whole. Data gathered by the CBMS survey on unmet needs were used by the Municipal Council for the Protection of Children (MCPC) as basis in conceptualizing the Orion Kids Dapat the Brightest Project, a project that aims to pursue a more holistic approach to the well-being and development of every child in Orion. Initially, among the projects needing financial assistance are: (i) Bulilit Ko, Pag-aaralin Ko, a basic education access program; (ii) KBP Kumpletong Bakunang Pambata; (iii) Gabay Kalusugan: Sa Tiyan Pa Lang Hanggang Pagsilang Siya ang Number 1, which aims to intensify the pre- and post-natal services for mothers; (iv) Operasyon Zero Malnutrisyon, a project for the eradication of malnutrition cases in Orion; and (v) Talento at Palakasan Laban sa Barkadang BI at Drogang Mapanira ng Kinabukasan which include primary prevention activities focused on the development/enhancement of talent/skills, and wholesome sports and recreation. The identification of PhilHealth s Medicare Para Sa Masa beneficiaries prior to the implementation of the CBMS had been erroneous because of the absence of reliable data that reflect those belonging to the indigent group. This problem was rectified using CBMS data, thus the present 2,509 beneficiaries are truly deserving of the Medicare health cards. Raymundo.pmd 379 5/25/2010, 4:29 PM

3 380 Proceedings of the 2008 CBMS Network Meeting Session 5: Monitoring the Achievement of the MDGs Through CBMS The result of the indicator on proportion of households without access to safe drinking water was used as basis to gauge client perception on services provided by local entities such as the Orion Water District (ORIWAD), which serves at least 17 barangays. Despite ORIWAD s initial resistance to accepting the findings, it nevertheless exerted efforts to address the issues revealed by the survey and to improve its services. Moreover, it resolved to use the findings as a basis for its future policies and directions. This year, Orion was chosen as the pilot site for the market trial of Iron Fortified Rice (IFR). CBMS data becomes very useful as it has easily identified the target sector. At the height of the so-called rice crisis, CBMS data were used to identify the list of indigents. Through this, only deserving beneficiaries were given priority in the program. From 45 percent of the total indigents being allocated subsidized rice from the National Food Authority (NFA), an additional 30 percent was also given allocation, thus covering at least 75 percent of those listed as indigent. However, all efforts of the LGU to localize the MDGs will be meaningless without efforts to gauge what have been undertaken. The municipality s plan to implement the second round of CBMS intends to benchmark all interventions that have been initiated. With proper targeting and monitoring of various local organizational structures already in place, measuring MDG achievements is easier to facilitate. The tool being used by the Department of the Interior and Local Government in Tracking MDG Responsiveness of LGU in the case of Orion uses most of CBMS data as basis. This system not only summarizes the concrete and direct interventions but also includes those legislative, structural, and organizational actions undertaken to make localization actions responsive. With the CBMS, responding to MDGs is more focused. However, beyond establishing the data and monitoring and measuring progress, the critical question is how to get the needed funds so that the proposed projects can be implemented. Other pilot communities are lucky to have funds to make things happen for the MDGs. For our part, we have initiated moves to do our share of achieving the MDGs with some assistance from our partners. But there is still so much to do, and we take advantage of this opportunity Raymundo.pmd 380 5/25/2010, 4:29 PM

4 Monitoring the Achievement of the MDGs Through the CBMS Antonio L. Raymundo, Jr. 381 to invite more partner donor agencies to help us do our share of achieving the MDGs through our proposed projects. Raymundo.pmd 381 5/25/2010, 4:29 PM

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6 Monitoring the Basic Capability Index Though the CBMS Leonor Briones 383 Monitoring the Basic Capability Index Through the CBMS * Leonor Briones I will just state very briefly the experience of Social Watch Philippines in utilizing the community-based monitoring system (CBMS) tool in working with the municipalities of Orion in Bataan and Tabaco in Albay. You are probably aware that Social Watch Philippines is a global network that monitors the state of commitments of governments all over the world to social development. Right now we are focusing on the millennium development goals (MDGs) because they offer us the best and the most powerful handle to convince and engage governments in making good their commitments to the 8 goals. We termed MDGs as the minimum development goals because after all we want our children not just to reach Grade 4 but to reach their full potential. We are not happy with decreasing poverty by just 50 percent by 2015 or decreasing maternal mortality by 70 percent, and so on. These are just minimum levels which we meant governments to deliver, and we do the monitoring. In the Philippines, while we do monitoring on a national scale, we have to combine and look up national reports, and it is here where we engage governments. And on poverty advocacy, we combine looking at the macro figures and statistics with monitoring at the local level. For this, Social Watch developed what we call the Basic Capability Index.We use it to look at maternal mortality, child mortality, and health basic issues which for us measure the state of development * An edited transcript of the speech of Dr. Leonor Briones, Lead Convenor, Social Watch Philippines Briones.pmd 383 5/25/2010, 4:39 PM

7 384 Proceedings of the 2008 CBMS Network Meeting Session 5: Monitoring the Achievement of the MDGs Through CBMS in a government or in a municipality. This Basic Capability Index has been adopted by Social Watch on a global scale. To monitor the Basic Capability Index at the local level, we need CBMS. We at Social Watch realize that CBMS is a powerful tool that gives many of the information and data that we need, so instead of developing our own system of monitoring at the local level, we adopt CBMS. We just add specific features depending on which municipality or local government we are monitoring to get the kind of information we need specifically for global as well as national reports. We have found CBMS to be very refined as we used it in Bataan and in Tabaco City. Our only regret is that we cannot do this on a much wider scale because of the usual financial constraints. And we anticipate that we will have more difficulty because of the financial crisis. It takes commitment on the part of local government officials to support CBMS efforts because the cost of doing the monitoring mechanism is not cheap. You have tools, you have interviewers, you have the methodology, the monitoring, and all that. It takes committed leadership to invest in 6-figure projects, and this is not easy for local government units. But we found out that this mechanism is very important, and we are for the advocacy of spending more for social economic development. CBMS is a very useful tool in determining priorities in the local budget. I wish national governments would also have such tool to determine which areas in the country would probably need more intervention. So I would like to affirm the usefulness of the CBMS. There is a lot of information that the local government units may want to find out and know about CBMS. They may want to map out poverty and they can build on that through CBMS, and we hope that the local government units could teach a lesson or two to the national government. Right now the Senate is contemplating the national budget proposal for 2009 and the debates are very rigorous and very exciting. The budget issue is always very exciting and Social Watch Philippines has presented a counter-proposal to government at the national level and we call it the alternative budget, where we presented alternative projects for health, education, the environment, and other projects relative to the proposed budget of the executive, and a great deal of the list of priorities was based on the experiences we had with the local government units looking at the problem at the local level. After all, the national Briones.pmd 384 5/25/2010, 4:39 PM

8 Monitoring the Basic Capability Index Though the CBMS Leonor Briones 385 government, like local government units, is supposed to be committed also to the MDGs. And through the MDGs we are able to correlate what is happening on the expenditure at the municipal level and this experience has been very fruitful for us. Our only wish is that there would be a way of bringing down the costs, that there would be a way by which the technology can be spread and shared by other institutions. I know that Social Watch is not the only organization teaming up with CBMS. The way information can be generated from CBMS can be linked to the national poverty reduction, to the national efforts to improve the municipalities and the countryside. The way we can monitor poverty more accurately using CBMS, as experienced by local governments can be shared with and taught to the national government. Briones.pmd 385 5/25/2010, 4:39 PM

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10 Millennium Development Goals, Poverty, Trade and CBMS Ravi Ratnayake 387 Millennium Development Goals, Poverty, Trade and CBMS Ravi Ratnayake * I am honored to be given an opportunity to deliver a keynote address at your meeting. The recent events in Bangkok have unfortunately prevented me from attending the meeting in person and benefitting from your deliberations, but I hope my speech will provide you with some useful thoughts for the further development of community-based monitoring system (CBMS). I believe that CBMS can make a significant contribution to the monitoring of many millennium development goal (MDG) indicators, including those related to poverty. Rather than limiting my address strictly to trade, poverty and CBMS, I have decided to take this opportunity to provide you first with a brief presentation on the progress in achieving the United Nations MDGs in Asia and the Pacific based on our recent MDG report. I will then briefly discuss the linkages between trade and poverty and highlight a number of important trade policy issues that are not directly covered by CBMS but whose impact is not fully understood and could benefit from community-based monitoring. Progress in Achieving MDGs in Asia and the Pacific 1 Despite being an economic powerhouse with some of the world s most dynamic economies, the Asia-Pacific region has been making slower progress with some of the MDGs. Most countries, particularly the less- * Director, Trade and Investment Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and Coordinator, Asia-Pacific Research and Training Network on Trade (ARTNeT) 1 A Future Within Reach 2008, Regional Partnerships for the Millennium Development Goals in Asia and the Pacific, UN ESCAP (in cooperation with ADB and UNDP). Ratnayake.pmd 387 5/25/2010, 4:46 PM

11 388 Proceedings of the 2008 CBMS Network Meeting Keynote Address developed countries (LDCs) and economies in transition, will miss some of the targets and goals, including poverty reduction. The targets, on which most countries in the region are off track, are: CO 2 emissions, rural sanitation coverage, the proportion of underweight children, and rural access to clean water. But the region also needs to do more in a number of other areas. Let me briefly describe the targets and indicators that are of greatest concern. Child and maternal mortality Some 4 million children in the region still die before they reach the age of 5. Some 250,000 women in the region also die each year during childbirth or from pregnancyrelated complications. The high number of maternal deaths contributes to a declining sex ratio, which, combined with selective abortion or infanticide of girls, means that millions of women are missing. Climate change and environmental sustainability Rapid economic growth has had huge environmental costs, including deforestation, destruction of wetlands, and extensive pollution of air and water. Rising CO 2 emissions are also of increasing concern as climate change is expected to have a serious impact on the region, through rising sea levels and changing weather patterns. On the positive side, however, the region appears to be making significant progress in reducing the consumption of ozone-depleting chlorofluorocarbons. Water and sanitation This is arguably the area in which the region performs most poorly, Almost half of the countries investigated are off their track in providing their rural populations with access to safe water. More than half of the countries 17 out of 32 are off their track in providing rural areas with access to basic sanitation. More progress appears to have been made in urban areas, but in some cases, public service delivery systems are struggling to keep pace with rapidly growing urban populations. Empowerment of women Differences across the region on this issue are vast, with more women employed than men in some countries. However, in several Asia-Pacific countries, women are second-class citizens and remain predominantly employed in labor-intensive, low value-added manufacturing and service sector jobs. Hunger and malnutrition There has been some progress in this area, and both the total number and the prevalence of undernourished people have fallen. But that is not fast enough to keep the region on Ratnayake.pmd 388 5/25/2010, 4:46 PM

12 Millennium Development Goals, Poverty, Trade and CBMS Ravi Ratnayake 389 track for the MDG of halving the undernourished population by More than half a billion people in Asia and the Pacific are consuming less than the global standard of 2,200 calories per day constituting 65 percent of the world s undernourished. Even more disturbing, the region accounts for around two-thirds of the world s underweight children, with more than a quarter of all under-5 children in the region being underweight. This is considerably behind the target for Communicable diseases Large numbers of people in the region are infected by malaria and tuberculosis. The prevalence of HIV, at 0.3 percent, is lower than in some other world regions, but is still some way from meeting the MDG of halting and reversing the spread of the pandemic by Six million people remain infected with the virus. Finally, global cooperation The eighth Millennium Development Goal calls for global cooperation through official development assistance (ODA), debt sustainability, and international trade. The region is not making a satisfactory progress in this goal. For example, Asia-Pacific LDCs had the same level of duty-free access as sub- Saharan LDCs, but by the late 1990s and early 2000s, their share of trade had declined. Let me conclude this brief progress report on MDGs in Asia- Pacific with MDG 1 Reducing Poverty, an issue that is the main focus of the PEP and CBMS networks. Actually, the greatest success of the region in MDGs has been with poverty, for which the region as a whole is likely to meet the 2015 target of halving the proportion of people living in income poverty. Between 1990 and 2004, the proportion of people living on less than $1 (PPP) a day in the Asia and Pacific region fell from 31 percent to 17 percent. Moreover, during the same period, and despite population growth, the absolute number of poor people also fell from over 1 billion to 641 million. But despite falls in poverty, progress has been unevenly distributed and some countries have experienced sharp increases in inequality. Overall, the region s MDG progress is uneven and the extent of disparities within and between countries is disturbing. For more details on MDG progress, you may wish to refer to the MDG report 2008 produced by ESCAP, UNDP, and ADB. This report offers a comprehensive set of solutions and recommendations to fill MDG gaps in the region. Ratnayake.pmd 389 5/25/2010, 4:46 PM

13 390 Proceedings of the 2008 CBMS Network Meeting Keynote Address Can Trade Help? Let us now turn to trade and poverty. With regard to MDGs, according to our research, trade has contributed positively to MDG 1 poverty reduction. Trade also had a significant effect on some other social sectors, including education. Theoretically, poverty and trade are related indirectly. Trade is an engine of growth, and growth provides much needed resources and capacities for poverty reduction. However, trade may also have a more direct impact on poverty through changes in prices for items consumed (but not produced) by the poor as well as through employment in export-oriented industries. Practically, the relationship between trade and poverty has been very clear when you look at the empirical evidence, particularly in Asia. The countries that embarked on trade-oriented growth strategies have been able to reduce poverty faster than others that maintained close and inward-looking strategies. Examples include the Republic of Korea, Singapore, Hong Kong, the People s Republic of China, and most recently Southeast Asian countries. At the same time, empirical evidence suggests that more trade in itself is not enough. For example, in South Asia, trade is booming, growth is rapidly increasing, but many poor people remain in the region. It is obvious that the gains from growth and trade are not reaching the poor. Something is missing. Pro-poor economic growth and trade policies are lacking! Countries need to introduce such policies to make trade work for the poor. Such policies should make sure that resources go to factors of production, i.e., labor and sectors and industries in which the poor are employed. Government should play an active role in introducing such policies and implementing them without leaving everything to markets, which are not perfect in distributing resources efficiently. Potential Role for CBMS and Some Priority Trade Issues to be Monitored CBMS has an important role to play in the development of trade and investment policy frameworks that take into account the needs of the poor and vulnerable groups. Ratnayake.pmd 390 5/25/2010, 4:46 PM

14 Millennium Development Goals, Poverty, Trade and CBMS Ravi Ratnayake 391 The research conducted by the Asia-Pacific Research and Training Network on Trade (ARTNeT) members now over 20 research institutions from developing countries of the Asia-Pacific region has confirmed time and again that trade policies, investment policies, and other policies, including social policies, cannot be designed independently as the ultimate impact of each individual policy, particularly on vulnerable groups, will depend on the overall policy environment and framework in which they are implemented. At the same time, poverty is localized i.e., not uniformly distributed throughout the region or a national territory and the nature and channels of the impact of trade on poverty are likely to vary widely across sectors and industries (e.g., textile and garments vs. information and communication technology or ICT services). For these reasons, national and macro-level monitoring or research on the impact of trade and investment policies on the poor will remain limited in their effectiveness, particularly at a time when policymakers think less about maximizing economic growth and more about achieving a more inclusive growth, one that will limit or slow the rise in inequalities within their countries. Given the central role of trade in the development of many countries of the region, and the ever increasing dependence of individual economies on international trade and investment, I would like to encourage you to think about ways in which CBMS can be designed to do the following: assist in understanding how trade affects the poor (by providing detailed information on employment changes in tradable sectors, or on changes in prices of the goods that they consume), identify those most affected by changes in trade and investment regimes, and provide a basis for targeted adjustment policies and/ or changes in trade and investment policies. In that context, I would like to highlight a number of trade-related issues which have been identified by the ARTNeT, 2 through its annual Trade and Investment Research Priority Survey of researchers and 2 Ratnayake.pmd 391 5/25/2010, 4:46 PM

15 392 Proceedings of the 2008 CBMS Network Meeting Keynote Address policymakers, to be of particular importance and concern to the region, and whose impact may be worth monitoring more closely at the community level (note that this might require extending the CBMS). The first issue of concern is the continuous rise in preferential trade agreements (PTAs). There has been an explosion in the number of PTAs and in particular Bilateral Trade Agreements (BTAs) in Asia- Pacific. Many of these agreements have been criticized because of the lack of consultation and transparency surrounding their negotiations. The impact of these agreements is not well known. Monitoring the evolution of employment data collected through CBMS in various sectors against the commitments made in PTAs in those same sectors may shed some light on the impact of PTAs as they are implemented. CBMS could also assist negotiators and policymakers in determining which communities are most exposed to trade liberalization in specific sectors/industries in advance, so that adjustment policies and programs may be put in place in advance of the PTA implementation. The second issue of concern is the amount of red tape involved in engaging in international trade, or even in simply doing business. Administrative regulations and procedures involved in conducting international trade and business have now been recognized as a major impediment to trade. Utilizing CBMS to identify and monitor, from time to time, the effectiveness of specific administrative procedures and regulatory processes affecting business and trade would certainly be helpful to trade policymakers in designing more inclusive trade rules and regulations. In addition, CBMS would have the potential to provide more information on informal trade taking place at border between countries, and on trade s evolving contribution to and importance for households in these areas. An ARTNeT Policy Brief forthcoming this month highlights that for many of the poor in border areas, cross-border trade and integration policies have an important role in lifting them out of poverty. However, there is limited data to guide the development of relevant policies and programs on crossborder trade. CBMS could fill this data gap. The third and last area I would like to bring to your attention is that of what we call, in the trade policy field, Mode 4 Trade in Services, or the temporary movement of natural persons. This type of trade results in the persons working temporarily abroad transferring Ratnayake.pmd 392 5/25/2010, 4:46 PM

16 Millennium Development Goals, Poverty, Trade and CBMS Ravi Ratnayake 393 part of their income back to their home countries, typically to family members. These remittances amounted in Asia-Pacific to $106 billion in Global remittances to the developing world amount to twice the level of Official Development Aid. The potential impact of these remittances on development is very high, but much remain to be learned about their actual impact and how to ensure that they really benefit the poor. Increased understanding of the benefits of remittances associated with Mode 4 Trade in Services could also assist developing countries in convincing developed countries to further liberalize this mode of trade. I believe CBMS could help in answering questions such as: How important are remittances for development and poverty alleviation in selected communities? How volatile are they? How are they used and can they be made more beneficial? I have highlighted a small number of trade-related issues that could benefit from micro-level analysis and community-based monitoring. There are many others, some of which may readily be addressed using existing CBMS. As I conclude, I would like to leave you with this simple message: Countries need to develop their own trade policy agenda, taking into consideration not only the World Trade Organization process and those associated with bilateral and regional trade agreements but also the national socioeconomic development priorities, in particular the need to achieve a kind of growth that is both sustainable and inclusive. There are no miracle solutions. The impact of trade on poverty has been found to be highly country-specific and context-specific. For this reason, any initiative that seeks to collect more disaggregated data that would allow detailed analysis and informed policymaking, such as CBMS initiatives, should be strongly supported. On behalf of the ESCAP Trade and Investment Division and the ARTNeT Secretariat, I look forward to working with you in developing community-based monitoring systems that can assist in ensuring that the poor benefit from trade. Ratnayake.pmd 393 5/25/2010, 4:46 PM

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18 Facilitating Gender-Responsive Budgeting with CBMS: An Overview Celia M. Reyes 395 Facilitating Gender-Responsive Budgeting with CBMS: An Overview * Celia M. Reyes Good morning. This session is basically very exciting because we will show you one of the uses of community-based monitoring system (CBMS). We have developed a module for this. When we developed CBMS we always thought that it would be used to facilitate budgeting and planning. For this morning we will be focusing on genderresponsive planning and budgeting through CBMS. What we will do is present the pilot project we did in Escalante City. We will also have a presentation from the Morocco project. We have our team leaders from the Morocco project to share with us their experience. I will just be providing you with an overview of what we did for the project. We will share with you the specific aspects of the project that we worked on. For the brief background we ll focus on the local planning in the Philippines just to give you the context of the project and the key features of CBMS gender-responsive budgeting (GRB). I will not talk about the lessons from the pilot project because my other colleagues will do that. Local Planning and Budgeting in the Philippines Decentralization placed local government units (LGUs) at the forefront of public service delivery and policymaking. LGUs are expected to develop plans, budgets, and projects that would address the needs of their localities. However, significant challenges exist in local planning and budgeting. Among them, making plans and budgets responsive to the divergent needs of their constituents. This challenge, like many * An edited transcript of the presentation of Dr. Celia M. Reyes, Poverty and Economic Policy (PEP) Co- Director and Community-Based Monitoring System (CBMS) Network Leader ReyesGRB.pmd 395 5/25/2010, 4:49 PM

19 396 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting other challenges, may be traced back to the lack of disaggregated socioeconomic data at the local level. However, because of limited disaggregated data we are left with ultra technical development plans, shotgun approach to service delivery planning and budgeting, guesswork-filled governance, nearsighted development programming and service delivery, not too participatory development plans and budgets, and gender and development that tends to serve as a cookie jar. There is also no means to track changing patterns, trends, and budgetary efficiency. Lastly, the formulated local development plans and budgets are gender blind. Local budgets and plans mainly serve as compliance rather than policy documents. Recently, local governments in the Philippines have to prepare 27 different plans, but what happens is that many of them remain unfunded and, therefore, not implemented. There arose a need for an information source (CBMS) that would particularly help facilitate evidence-based, gender-responsive planning and budgeting (GRB). After a series of forums and workshops, the CBMS-GRB methodology was developed and piloted. Why Use CBMS for GRB? First, as a policymaking tool, GRB needs a solid basis for it to be firmly rooted in local level planning and budgeting processes. And as we all know, CBMS as a monitoring tool is lodged in local government units. Second, gender-relevant programs need a reliable information source for performance monitoring and evaluation (M&E). CBMS provides the needed data for pragmatic M&E activities. And third, beneficiaries of gender-related interventions need to be identified and targeted to optimize resources. CBMS can generate the needed gender-disaggregated data for targeting and resource allocation. The CBMS-GRB: Its Key Features The CBMS-GRB is essentially based on the Philippine CBMS methodology. It includes enhancements that aim to collect other key gender-relevant information on different aspects of human well-being: education, health, empowerment, protection/care, and access to ReyesGRB.pmd 396 5/25/2010, 4:49 PM

20 Facilitating Gender-Responsive Budgeting with CBMS: An Overview Celia M. Reyes 397 government assistance. These are some of the additional indicators we have incorporated. The CBMS methodology also includes new activities and sub-modules that promote greater participation and better usage of CBMS-GRB data for planning and budgeting. To enhance the CBMS-GRB, focus group discussions as well as computer-based planning and budgeting module using CBMS-GRB data were introduced. On the technical side, enhancements were made on data collection instruments, incorporating other relevant questions and a rider questionnaire on the data processing system, particularly the encoding system and the statistical simulator. GRB and CBMS: Convergence Points Point #1: Both interested in targeting and prioritization GRB intends to analyze and formulate budgets that truly respond to the needs of those who need them most. CBMS as a tool enables Figure 1. The CBMS-GRB Methodology Advocacy and Workplan The Result: gender responsive and evidence-based budget programs and interventions Data Collection Dissemination Data Processing Community Validation Database Building Analysis and Planning ReyesGRB.pmd 397 5/25/2010, 4:49 PM

21 398 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting empirically based beneficiary targeting, needs identification, and prioritization of development initiatives. Point #2: Both interested in evidence-based policymaking GRB examines government budgetary and planning documentations to analyze their impacts to a diverse set of social groupings (across gender, age, social group, etc.). CBMS provides a multidimensional view of welfare conditions at the local level to aid policymaking. Point #3: Both should be ongoing exercises GRB should be ideally carried out as a periodic exercise to analyze budgets as they are formulated and spent. CBMS is done by carrying out different activities from data collection and processing to validation and utilization. It is designed to be conducted periodically (ideally every 2 years). ReyesGRB.pmd 398 5/25/2010, 4:49 PM

22 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 399 CBMS Planning and Budgeting Module for LGUs * Aniceto Orbeta Introduction This paper is based on a presentation that is culled from a couple of days of training local planners as jointly undertaken by the PEP- CBMS Network Coordinating Team and two local government units (LGUs) from Negros Occidental: the LGU of Escalante City and the LGU of the Municipality of E.B. Magalona. The specific objective is to improve the empirical basis of local planning and budgeting through the strategic use of CBMS data. Benchmarking The first procedure we want to introduce is benchmarking. Basically, benchmarking is one of the simplest ways of identifying and prioritizing major development problems objectively. Benchmarking is basically comparing numbers pertaining to the performance of a city/municipality/barangay with: (i) other cities/ municipalities/barangays; (ii) past performance; and, (iii) planning standards. Benchmarking involves (i) identifying relevant indicators; (ii) generating/gathering the indicators; and, (iii) comparing indicators. It is as simple as that. Where do you get relevant indicators? Relevant indicators are basically determined by your development goals and objectives. For instance, you have the CBMS 13+1 Core Indicators. If you do not have specific indicators in mind, you can use the Global Millennium Development Goals (MDGs) or the National Development Goals * An edited transcript of the presentation of Dr. Aniceto Orbeta, Senior Research Fellow, Philippine Institute for Development Studies (PIDS) AnicetoOrbeta.pmd 399 5/25/2010, 4:52 PM

23 Proceedings of the 2008 CBMS Network Meeting 400 Session 6: CBMS and Gender-Responsive Budgeting (NDG) and objectives from the Medium Term Philippine Development Plan (MTPDP). Where do you get benchmarking information? Of course, since benchmarking involves comparisons, the first thing to ask is whom are you going to compare yourself with? You can also generate data from similar national, regional, provincial and municipal indicators from national censuses and representative surveys. If you have already conducted several CBMS rounds, you can compare your performance records over time. Or if you happen to have planning standards for certain sectors, you can also use them. The PEP-CBMS Network Coordinating Team has developed a module the Statistics Simulator which automatically generates the CBMS 13+1 Core Indicators. If you have encoded the data, you just have to click on a couple of buttons to generate this data at the barangay or purok level. If you are adventurous enough, you can process public-use files of national censuses and surveys. Oftentimes some of these indicators are actually available from the summary tables on the NSO website. The subsequent illustrative exercises consider the CBMS 13+1 Core Indicators as the desired set of development indicators. The LGUs can have a slightly or completely different set of development indicators in the future, but for now, let us use this as a starting point. Table 1 shows an example of benchmarking for nutrition. What is indicated for nutrition? We have the proportion of malnourished children 0-5 years old. On the third column, you have the totals for the city where you can also see the best and worst case scenarios for the city. On the last column is the benchmark basically, the national indicator for malnutrition which can be compared with the CBMS indicator. Meanwhile, Table 2 gives you the same analysis for education. What does benchmarking in this example tell us? It tells us that: Nutrition is not a pressing problem for Escalante. The worst case scenario for the city is even better than the national average. But it should be noted that in Escalante, girls have higher malnutrition incidence than boys. School attendance a big problem in the community; in addition, boys have higher non-attendance rates than girls, particularly at the secondary level. AnicetoOrbeta.pmd 400 5/25/2010, 4:52 PM

24 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 401 Table 1. Benchmarking Illustration: Nutrition in Escalante City, Negros Occidental Area Nutrition Indicator Proportion of malnourished children 0-5 years old Survey Estimate Escalante City Total 6.07 Male: 5.24 Female: 6.99 Brgy. Alimango Total: Male: Female: Brgy. Jonobjonob Total: 0.69 Male: 0.20 Female: 1.17 Benchmarks Underweight children 0-5 years old National (2003, NNS) Total: 27.6 Boys: 27.2 Girls: 28.1 Regional (2001 Update) Total: 35.2 Provincial (2001 Update) Total: 42.6 Table 2. Benchmarking Illustration: Education in Escalante City, Negros Occidental Area Education Indicator Proportion of children 6-12 years old not attending elementary school Survey Estimate Escalante City Total Male: Female: Brgy. Binaguiohan Total: Male: Female: Brgy. Washington Total: Male: Female: Benchmarks Children 6-12 years old who are attending elementary school National: 90.6 (APIS 2004) Socioeconomic Groups Bottom 30%: 91.4 (APIS 2004) Higher 70%: 90.1 (APIS 2004) The above exercise tells you what the pressing problems are. The next thing you want to know is what to do with these problems. Analytical Frameworks Frameworks are very simplified structural representations of development realities. Why use frameworks? We use analytical AnicetoOrbeta.pmd 401 5/25/2010, 4:52 PM

25 Proceedings of the 2008 CBMS Network Meeting 402 Session 6: CBMS and Gender-Responsive Budgeting frameworks for three reasons: to enrich situation analysis, to enrich strategy formulation, and to organize data into useful summaries. The simplest framework is shown in Figure 1. It suggests that one can identify determinants for specific outcomes. Figure 1. Determinants Framework Determinants Outcomes Cause Effect fect We can further expand this to a Proximate Determinants Framework as shown in Figure 2. The basic feature of the proximate determinant framework is the separation of direct determinants from the indirect determinants. The latter group affects the outcomes through the direct or proximate determinants. The proximate determinants may be considered as the technical (in the sense of a production function relationship) determinants. The key characteristic of proximate determinants is their presumed stable relationship with the final outcomes. Figure 3 shows an example of the proximate determinants framework applied to health. If you look at a community s health situation, you have individual, household and community characteristics. But in the middle, you have direct determinants like health and service utilization, sanitation and environmental contamination, nutrient/dietary intake, fertility and injury. These proximate determinants are the things that you have to look out for if AnicetoOrbeta.pmd 402 5/25/2010, 4:52 PM

26 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 403 Figure 2. Proximate Determinants Framework Underlying Determinants Proximate Determinants Outcomes Davis and Blake ( ) Figure 3. Determinants of Health Outcomes: Proximate Determinants Framework Underlying Determinants Proximate Determinants Outcomes Individual Household Community Healthcare e service utilization Sanitation & environmental contamination Nutrient/dietary y intake Fertility Injury Mortality Morbidity Nutritional Status Disability you want to analyze mortality, morbidity, nutritional status and disability. Figure 4 shows the same analysis for education. This framework also suggests that there are other determinants besides obvious direct determinants. For example, people may wonder why the nutrition status of a particular community s children is still not improving even after the implementation of a nutrition AnicetoOrbeta.pmd 403 5/25/2010, 4:52 PM

27 Proceedings of the 2008 CBMS Network Meeting 404 Session 6: CBMS and Gender-Responsive Budgeting Figure 4. Determinants of Education Outcomes: Proximate Determinants Framework Underlying Determinants Proximate Determinants Outcomes Individual School characteristics Literacy/Numeracy Household Community Student characteristics Labor market characteristics Enrollment/ Participation Education attainment of population Retention/dropout/ completion Scores in standardized tests Skills-employment opportunities matching Socio-moral values program. The reason for that is because they are looking only at the implementation of feeding programs per se (which is an obvious direct determinant), but not at other factors or proximate determinants that may also affect not only the nutrition status of the children, but also the effectivity of the feeding program being implemented. Another example pertains to school attendance which is determined not only by education variables (e.g. availability of a school in the vicinity) but also by other factors such as the health status of children, attitudes of parents towards schooling, etc. Thus, we need to examine these other determinants as well. We can use the determinants framework to identify important determinants of outcomes of interest as well as the needed components of intervention programs/projects. Often, more in-depth information and details on the determinants (and how important they are) can only be generated from Focus Group Discussions (FGDs), with frameworks as guides on what questions to ask for specific issues. For example, there are common perceptions about development problems such as: Malnourished children are from households that have low incomes, experience food shortage, and have unhealthy surroundings. AnicetoOrbeta.pmd 404 5/25/2010, 4:52 PM

28 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 405 Non-attending school-age children are from households with low incomes, parents with low educational status, and homes not conducive for studying. Poor households have working-age members who are unemployed. From the two tabulated results of the CBMS data and Statistics Simulator using the determinants framework (Tables 3-8), it may be concluded that: 1. Malnutrition is: negatively affected by income and poverty status, family size, education of reference person; positively affected by health condition in the home (water supply, sanitation). 2. School Attendance (elementary) is: affected by status of settlement and presence of electricity; but is not hindered by the educational status of reference person, income and poverty status. Disaggregation by Socioeconomic Groups The other thing that we can look into is disaggregation by socioeconomic groups. It helps you understand the disparities in your locality. You can also improve the effectiveness of your targeting by looking at the many differences among the poor households in a community (Tables 9-10). The disaggregation by income classes shows that income is a consistent source of disparity in outcomes except in the case of informal settlers. There seems to be a higher incidence of informal settlers even among the higher income groups. AnicetoOrbeta.pmd 405 5/25/2010, 4:52 PM

29 Proceedings of the 2008 CBMS Network Meeting 406 Session 6: CBMS and Gender-Responsive Budgeting tion tion of of tion tion of of opor opor opor opor Pr Pr Pr Pr Malnourished Children Y Y en and Household Characteristics (Makeshift Housing, Informal Settlers, Pover Table 4. Malnourished Children and Household Characteristics (Makeshift Housing, Infor Incidence and Food Shortage), Jonobjonob, Escalante City,, 2006 mal Settlers, Poverty & Subsistence 0-5 Years Old Proportion of tion of tion of Pr Pr ears Old ears Old Jonobjonob Households With Children 0-5 Years Old With Malnourished Child Without Malnourished Child Households without Children 0-5 Years Old Proportion of Pr Pr tion tion of of opor opor tion of Households Living in Makeshift Housing tion tion of of tion tion of of opor opor tion of Households who are Informal Settlers Proportion of opor opor Pr Pr tion of Households with Incomes Below the the Pover Pover the Poverty Households who Experienced Food ty ty ty Threshold Proportion of Households Incomes Below tage tage Shor Shor the Food Threshold tage Table 3. Malnourished Children and Household Characteristics (Per Capita Income, Household Size, Access to Safe Water and Sanitary y Toilet Facilities), Jonobjonob, Escalante City,, 2006 Malnourished Children Number Propor oportion Mean Per Mean Propor oportion of Propor oportion of 0-5 Years Old Capita Household Households Without Households Without Income Size Access to Safe Water Access to Sanitary Supply Toilet Facilities Proportion of Jonobjonob 1, , Households With Children 0-5 Years Old With Malnourished Child Without Malnourished Child Households without Children 0-5 Years Old Shortage , , , , AnicetoOrbeta.pmd 406 5/25/2010, 4:52 PM

30 Malnourished Children tion tion of of tion tion of of tion tion of of opor opor opor opor Y Y CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta Years Old Proportion of Pr Pr Pr Pr opor opor Pr Pr Employment ears Old Rate Jonobjonob Households With Children 0-5 Years Old With Malnourished Child Without Malnourished Child Households without Children 0-5 Years Old Proportion of tion tion of of opor opor Pr Pr tion of Household Reference Persons who are Literate Proportion of tion of tion of tion of Household Household Reference Persons with at Least Elementary Education Household Reference Persons Reference Persons with Above Secondary with Secondary Education Education Table 5. Malnourished Children and Household Characteristics (Employment, Literacy and Educational Attainment of Household Reference ence Person), Jonobjonob, Escalante City,, 2006 Proportion of able 6. School Participation and Household Characteristics (Per Capita Income, Household Size, Members 6-24 Years Old and Table 6. School Par Access to Safe Water Supply), Jonobjonob, Escalante City,, 2006 Elementary y School Participation Number Propor oportion Mean Per Capita Income Jonobjonob Households With Children 6-12 Years Old With Child not Attending All Children Attending Households without Children 6-12 Years Old 1, , , , , , Mean Household Size Household Members who are 6-24 Years Old Propor oportion of Households Without Access to Safe Water Supply AnicetoOrbeta.pmd 407 5/25/2010, 4:52 PM

31 Elementar Proceedings of the 2008 CBMS Network Meeting 408 Session 6: CBMS and Gender-Responsive Budgeting Elementary y School Participation Par Proportion of Toilet Facilities Proportion of Proportion of Proportion of Proportion of the Poverty Jonobjonob y y School Par Par ticipation ticipation Households With Children 6-12 Years Old With Child not Attending All Children Attending Households Without Children 6-12 Years Old Pr Pr opor opor tion tion of of tion of Households Without Access to Sanitary Sanitar oilet oilet Facilities oilet Facilities Pr Pr opor opor tion tion of of tion of Households Living in Makeshift Housing Pr Pr opor opor tion tion of of tion of Households who are Informal Settlers Pr Pr opor opor tion tion of of tion of Households with Electricity Pr Pr opor opor tion tion of of tion of Households with Incomes Below the the Pover Pover Threshold ty ty ty Table 7. School Participation and Household Characteristics (Access to Sanitary T Settlers, Access to Electricity and Poverty Incidence), Jonobjonob, Escalante City,, 2006 mal y Toilet Facilities, Makeshift Housing, Informal Table 8. School Participation and Household Characteristics (Subsistence Incidence, Food Shor tage and Educational Attainment of Household Reference ence Person), Jonobjonob, Escalante City, 2006 Elementary School Participation Propor oportion of Households with Incomes Below the Food Threshold Propor oportion of Households who Experienced Food Shortage Propor oportion of Household Reference Persons with at Least Elementary Education Propor oportion of Household Reference Persons with Secondary Education Propor oportion of Household Reference Persons with Above Secondary Education Jonobjonob Households With Children 6-12 Years Old With Child not Attending All Children Attending Households Without Children 6-12 Years Old AnicetoOrbeta.pmd 408 5/25/2010, 4:52 PM

32 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 409 Table 9. Income Classes and Household Characteristics (Per Capita Income, Child Deaths, Malnourished Children, Makeshift Housing and Informal Settlers), Escalante City,, 2006 Number Propor oportion tion Mean Per Capita Income Propor oportion of Child Deaths 0-5 Years Old Propor oportion of Women Deaths Due to Pregnancy- Related Causes Propor oportion of Malnourished Children 0-5 Years Old Propor oportion of Households Living in Makeshift Housing Propor oportion of Households who are Informal Settlers 18, , City of Escalante 3,790 3,790 3,790 3,790 3, ,741 4,595 7,588 12,532 48, Poorest Lower Middle Middle Upper Middle Richest tici- Table 10. Income Classes and Household Characteristics (Access to Safe Water Supply and Sanitary T pation, Unemployment and Victims of Crime), Escalante City,, 2006 y Toilet Facilities, School Partici- Propor oportion of Households without Access to Safe Water Propor oportion of Households without Access to Sanitary Toilet Facilities Proportion of Children 6-12 Year ears Old Not Attending Elementary School Propor oportion of Children Years Old Not Attending High School Propor oportion of Children 6-16 Years Old Not Attending School Unemployment Rate Propor oportion of Persons who were Victims of Crime City of Escalante Poorest Lower Middle Middle Upper Middle Richest AnicetoOrbeta.pmd 409 5/25/2010, 4:52 PM

33 Proceedings of the 2008 CBMS Network Meeting 410 Session 6: CBMS and Gender-Responsive Budgeting By using the tool of disaggregation by income classes, you will be able to tell whether your program is hitting the people you are targeting, whether the program is hitting the poor if it is intended for the poor. As may be noted in Table 11 (which details a population s access to a program by income classes), the program is apparently reaching more poorer households than richer ones. Is this information important for you to know as a local planner? If so, then disaggregation by income classes is the tool to use. Table 11. Access to Program by Income Classes, Escalante City,, 2006 City of Escalante Total 86,581 Members Male 44,350 Female 42,218 Number of Member Beneficiaries by Income Group by Sex Magnitude Propor oportion Total Male Female Total Male Female Poorest Lower middle Middle Upper Middle Richest 7,310 7,941 6,475 5,620 4,962 3,797 4,101 3,334 2,848 2,416 3,513 3,840 3,141 2,772 2, As to gender-responsive planning/budgeting, gender parlance is already mainstreamed into CBMS with all individual indicators disaggregated as male or female. Using the CBMS Data for Budgeting After planning, how do you use CBMS data for budgeting? Let me now show you how to use CBMS for budget preparation and expenditure program configuration. Since CBMS data will be available for officials who review and authorize the budget, they can also review your assumptions and your computations. In the same way that you can prepare plans using the CBMS database, the Sanggunian can also look at the same CBMS database to review your budget. Improving the results-orientation of the budget process through an Outcomes-Output Framework is a key concept which CBMS is trying to utilize. This involves not only aligning Programs, Projects and Activities (PPAs) with objectives and strategies, but also specifying performance indicators and performance targets. This is also a means for improving plan-budget link in which CBMS data plays a big role. AnicetoOrbeta.pmd 410 5/25/2010, 4:52 PM

34 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 411 What follows is a cursory review of the proposed Development Fund (20 percent of the Internal Revenue Allotment or IRA) budget in the light of CBMS results. The first thing that we did was to look at the allocation of the 20 percent Development Fund for Escalante City (see Table 12). Then we compared it with the problems of Escalante (see Table 13). Benchmarking using core indicators shows that the main problems of the city are: High incidence of poverty (74 percent versus the national poverty incidence rate of 24 percent). High school non-attendance rates are twice higher than the national non-attendance rate. Low access to safe drinking water and sanitary toilets (rates for both indicators are more than twice the national incidence rate). From these observations, we can assess the priorities expressed in the Annual Investment Plan (AIP) allocations, as follows: There are big allocations for housing projects (e.g., Site Development allocation amounting to PhP1 million and Land Banking allocation amounting to PhP5 million) although housing is not a problem. Given a very high poverty incidence, economic development allocations may need to be increased, with particular attention to sources of additional income as unemployment is already very low. There is no apparent allocation for education interventions despite the fact that the school non-attendance rate is very high. Projects for improving access to safe drinking water sources and sanitary toilet facilities may need more allocations. The large allocation for the health program needs clearer justification since malnutrition as well as child and maternal deaths are not problem areas. I am not saying that the priorities reflected in the AIP are wrong. That is not for me to say. However, I would like to use CBMS data towards a more informed discussion on the appropriateness of the prioritization which determines the allocation. Without the CBMS AnicetoOrbeta.pmd 411 5/25/2010, 4:52 PM

35 Proceedings of the 2008 CBMS Network Meeting 412 Session 6: CBMS and Gender-Responsive Budgeting Table 12. Annual Investment Plans of Escalante City,, 2006 & Amount Amount Share Amount Amount Share I. Loan Amortization Land Bank Loan Amortization LOGOFIND Loan Amortization II. City Development Assistance Fund CDAF (P500,000/Brgy x 21) III. Special Funds of Elective Officials ficials Mayor (P400,000) Vice Mayor (P200,000) 12 SP Members (P75,000/member) IV.. Economic Development Cooperative Development Assistance Investment and Trade Promotion Tourism Dev t Program Agriculture Development Program Job Center Kiosk Construction of Farm to Market Roads Energization Project Const. of Rear Canopy & GI Louvers (Public Market) V.. Social Development Health Program Water System Development Coastal Resource Dev t Program Solid Waste Management Program Clean and Green Program Nursery Project Site Development (Gawad Kalinga) Land Banking VI. General Public Services Human Resource Development CBMS Acq. of 3 units GPS 12,750,000 4,000,000 10,500, , , , , , ,000 1,000, ,000 1,000,000 1,000, ,000 1,000, , , , ,000 60,000 1,000,000 5,000,000 1,000, , ,000 16,750,000 10,500,000 1,500,000 4,250,000 7,940,000 1,340, ,800,000 2,550,000 10,500, , , , , , ,000 1,200,000 1,000, , , , ,000 50,000 1,000, ,000 16,350,000 10,500,000 1,500,000 3,400,000 2,250, , Total 42,280,000 42,280, ,800,000 34,800, AnicetoOrbeta.pmd 412 5/25/2010, 4:52 PM

36 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 413 Table 13. CBMS Core Indicators, Escalante City,, 2006 Indicator Demography Population Average Household Size Children 0-5 years old Children 6-12 years old Members years old Members 6-16 years old Members 10 years old and above Members of the labor force Magnitude Total Male Female 86,581 11,401 15,108 9,239 24,947 66,430 28,463 44,350 6,006 7,799 4,797 12,596 33,843 19,274 Population 42,218 5,395 7,309 4,442 11,751 32,586 9,189 Propor oportion Total Male Female Health and Nutrition Children 0-5 years old who died Women who died due to pregnancy-related causes Malnourished children 0-5 years old Housing Households living in makeshift housing Households who are squatters 4,389 7,020 2,248 3,586 2,129 3, Water and Sanitation Households without access to safe water Households without access to sanitary toilet facility 43,482 52,764 22,582 27,637 20,888 25, Basic Education Children 6-12 years old not attending elementary school Children years old not attending high school Children 6-16 years old not attending school 3,680 4,885 4,865 2,049 2,927 2,945 1,631 1,958 1, Income and Livelihood Households with incomes below the poverty threshold Households with incomes below the food threshold Households who experienced food shortage Unemployed members of the labor force 68,575 58,299 2, ,372 30,065 1, ,202 28,233 1, Peace and Order Victims of Crime AnicetoOrbeta.pmd 413 5/25/2010, 4:52 PM

37 Proceedings of the 2008 CBMS Network Meeting 414 Session 6: CBMS and Gender-Responsive Budgeting data, it would be difficult to argue for or against the allocation of resources into specific PPAs in specific locations. In fact, in the absence of CBMS, it would be easier to simply perpetuate previous PPAs and adopt them again into the current or future AIPs. But with CBMS data, one can argue with confidence even for a seemingly unpopular allocation. How do we veer away from lump-sum allocation into evidencebased targeting? In particular, how can CBMS data help in the process? The PPA can be configured using frameworks with CBMS data to validate what goods and/or services need to be delivered. After identifying the interventions, the next step is to cost them. Basically the budget is just the number of clients multiplied by coverage multiplied by unit cost. The number of clients can be provided by CBMS data, (e.g., numbers of malnourished children, households without safe water supply, households without sanitary toilets, etc.); while coverage (i.e., how many/much will be covered for the budget year) is determined by the LGU s financing capability. On the other hand, unit cost can be determined from administrative records. The following is a sample unit cost computation for a nutrition program. It is taken from worksheets which are cross-linked and are designed to automatically fill up forms from the Updated Budget Operations Manual (UBOM) for LGUs (2005) and Budget Operations Manual for Barangays (BOMB) (2006). Table 14. Sample Unit Cost Computation for a Nutrition Program Nutrition Program Unit: Personnel (BHW) up to 20 children Time in the project Salary per month Months Material per child Food Food (per day) Cooking gas (per day) Number of days/week Number of weeks Capital Equipment Cooking equipment Acquisition value Useful life (years) Malnourished Child 3, (¼ time) (program will last for 12 weeks) 1, ,000 10,000 5 AnicetoOrbeta.pmd 414 5/25/2010, 4:52 PM

38 CBMS Planning and Budgeting Module for LGUs Aniceto C. Orbeta 415 The foregoing example shows the strategic use of CBMS data in budgeting, in particular, in identifying the number of beneficiaries of specific PPA. To facilitate this process, a budget workbook has also been prepared. References Davis, K and J. Blake ( ) Social Structure and Fertility: An Analytical Framework, Economic Development and Cultural Change 4(1): Orbeta, A. (1994) A Planning Framework for Social Development. Integrated Population and Development Planning Project, National Economic and Development Authority. AnicetoOrbeta.pmd 415 5/25/2010, 4:52 PM

39 BLANK PAGE AnicetoOrbeta.pmd 416 5/25/2010, 4:52 PM

40 Improving LGU Planning and Budgeting Capabilities Through CBMS Godofredo Reteracion 417 Improving LGU Planning and Budgeting Capabilities Through CBMS in Escalante City Godofredo Reteracion* Profile of Escalante City Created seven years ago on 28 February 2001, the city of Escalante is one of the 13 cities of Negros Occidental. It is located at the northeastern tip of the province, some 95 kilometers away from Bacolod City, the provincial capital. It is a coastal town with a land area of square kilometers equivalent to the combined land areas of the cities of Quezon, Pasay and Pasig in the National Capital Region. It has a population of 86,580, which is 18 times smaller than that of the City of Manila. Its municipal waters constitute an area of 230 square kilometers, more or less. One of its comparative advantages is the presence of port facilities, making it one of the two gateways of Negros Occidental to the Island of Cebu. Neither the full implementation of the Comprehensive Agrarian Reform Program (CARP), nor its conversion into a city has changed the complexion of Escalante s local economy. Economic activities are still mainly agricultural, with 47 percent of the city s total labor force engaged in agriculture. Among its agricultural activities, sugarcane production, as in most part of the province, continues to predominate. In fact, roughly 60 percent of the total arable land of the city is devoted to sugarcane farming. It is not surprising then that 53 percent of its employed labor force have seasonal, temporary or piecemeal employment, rendering * City Planning and Development Coordinator (CPDC), Escalante City, Province of Negros Occidental, Philippines GodofredoReteracion.pmd 417 5/25/2010, 4:55 PM

41 Proceedings of the 2008 CBMS Network Meeting 418 Session 6: CBMS and Gender-Responsive Budgeting them unemployed during off-season, which lasts from five to six months each year. Other gainful economic activities in the City are fishing, aquaculture, and wholesale and retail trading. The manufacturing sector is insignificant, with an employment share of only 3 percent compared to the City Government s share of roughly 3.5 percent of the total labor force of 28,213. CBMS Implementation in Escalante City A. Rationale Data is a basic ingredient in the planning, budgeting and impact monitoring processes. This basic ingredient must be available in order for a local government unit (LGU) to efficiently and effectively allocate its limited resources, design responsive programs, projects and activities, and monitor and evaluate their program/project impact on their constituents. Like most other LGUs, the LGU of the City of Escalante lacks this basic planning ingredient. It did attempt in 2004 and 2005 to generate by itself the required information but failed, mainly due to lack of expertise and the absence of effective software for data processing, analysis and interpretation. The entry of the Community-Based Monitoring System (CBMS) into the picture when Escalante was chosen as a pilot area for the implementation of its enhanced instruments and training module for local planning and budgeting was a welcome development for the city s LGU. B. Start of Implementation The CBMS implementation in Escalante started in March 2006 when the City Council through Resolution No , dated March 6, 2006, approved the Memorandum of Agreement (MOA) between the City and the PEP-CBMS Network Coordinating Team. To help implement the project, the Team engaged the services of a local NGO, the DAWN Foundation, which insisted on and secured the inclusion of Gender as one of the areas to be assessed in the project. GodofredoReteracion.pmd 418 5/25/2010, 4:55 PM

42 Improving LGU Planning and Budgeting Capabilities Through CBMS Godofredo Reteracion 419 C. CBMS Questionnaire Both parties agreed upon a 12-page questionnaire designed to capture comprehensive data on the socio-economic conditions of the residents. To capture desired data on Gender, a two-page questionnaire prepared by the DAWN Foundation was added to each regular questionnaire to be administered in target areas. D. CBMS Coverage The project aimed to gather data from each of the estimated 19,000 household population (18,935 to be exact) in all the 21 barangays of the city. This process was intended to serve as a census enumeration, rather than a survey. Moreover, a 2-page questionnaire on gender was administered in only two barangays among the 21 namely, Old Poblacion, a coastal barangay, and Jonobjonob, an inland barangay. E. Data Enumerators The City utilized the city/barangay health workers to do the actual data gathering. The health workers were numerous, coming from the sitios/puroks where they were assigned. Being in this position, they knew most if not all of the target respondents. To capacitate them in data gathering, a 3-day orientation seminar was conducted for the pre-selected health workers, together with barangay midwives. Those found capable were selected as enumerators. Each one was to be given an incentive of PhP15 for every properly-filled up questionnaire. The midwives, who were tasked as field supervisors to review the filled-up questionnaires submitted by health workers, were to be given a PhP3 incentive per questionnaire. F. Project Cost The project cost was a shared responsibility. The City Government shouldered the cost of questionnaire reproduction, the incentives of data gatherers and field supervisors, the wages of data encoders, and other related operating expenses. The city appropriated a total of PhP720,000 to ensure proper project implementation and completion. Computed on a per-household basis, the project cost for the City was PhP38 per household. GodofredoReteracion.pmd 419 5/25/2010, 4:55 PM

43 Proceedings of the 2008 CBMS Network Meeting 420 Session 6: CBMS and Gender-Responsive Budgeting G. Data Encoding A distinct advantage of the city in this regard was its Barangay Computerization Project through which each barangay was given a computer set together with a city-paid computer operator. The encoders were provided appropriate trainings on CBMS software, including map digitizing. Thus, the data encoding aspect of the project implementation did not meet any serious hitches. H. Data Validation To validate the data generated, CBMS results per barangay were presented in public hearings that were held in the respective barangays. Attendance of barangay officials was required, while sitio/purok leaders, school heads or their representatives, health workers, and other community leaders were urged to attend. After the completion of the barangay validation process, the results were consolidated into one city-level report. The report was again presented in a public hearing with city officials, Department of Education(DepEd) officials, representatives from the Civil Society and Private Sector Organizations, and other stakeholders who were invited to attend. After corrections were effected here and there, the City CBMS Report was finalized. Main Issues/Problems in CBMS Implemenation One issue in the CBMS project implementation in Escalante pertained to the use of English as the language for the questionnaire. This issue stemmed from the fact that most of the data gatherers the city/ barangay health workers had low educational attainment. Most completed only secondary education, some reached only the elementary level, and only a handful reached college level. So it was highly probable that many of them had encountered the problem of properly understanding the content of the instrument. The 3-day orientation seminar and training, as well as the questionnaire s vernacular (translated) version given to each data gatherer as reference did help, but did not entirely solve the problem. The other issue was the length of the questionnaire. At 12 pages long, the questionnaire, on the average, took 40 minutes for the GodofredoReteracion.pmd 420 5/25/2010, 4:55 PM

44 Improving LGU Planning and Budgeting Capabilities Through CBMS Godofredo Reteracion 421 respondent to answer. This was seen as simply too taxing for both the interviewer and the interviewee. It was felt that the information sought should have been reduced to the basic minimum. Still another issue pertained to the data gatherers. Although the distinct advantage of utilizing the health workers was well appreciated, it was felt that the selection process should have been more stringent, and the training longer to ensure data gathering accuracy. Key CBMS Results A. On Population Growth The results showed that the city population was increasing by no less than 1,200 a year, or at a rate of 1.58 percent annually. This confirmed our misgivings against the Nationsl Statistics Office (NSO) data for 2000 which showed a negative population growth for the city. The 830 decrease in the city population per the 2000 Census meant a reduction in Escalante s Internal Revenue Allotment (IRA) share from the National Government by no less than PhP8 million a year since B. On Poverty Incidence The data on poverty incidence came as a shocking revelation: at 74.4 percent, the city s poverty incidence was 3 times higher than the national average of 24.4 percent. This revelation reflected something else. Although admittedly poverty incidence in the City is definitely high, it should not have been as grave as how the data depicted it. There could have been something amiss somewhere. Or it could have been the mindset of the respondents as people in rural areas are not usually keen about the monetary unit of measure. Thus, it was highly probable that many of the noncash income they generated or received and consumed directly might not have been taken into account in their measures of monetized income. Thus, in this case, people may not really have been as poor as they thought. C. On Education The survey results showed that the literacy rate of the city improved from 88 percent in 2000 to 93 percent in 2006 (the year the survey was conducted). Of the 7 percent illiterate, GodofredoReteracion.pmd 421 5/25/2010, 4:55 PM

45 Proceedings of the 2008 CBMS Network Meeting 422 Session 6: CBMS and Gender-Responsive Budgeting or a total of 4,174 individuals, there were more males than females. Data by age bracket was also interesting. In the age bracket of 65 years old and above, there was a higher percentage of female illiterates that male. However, as the age bracket became younger, the percentage of female illiterates became smaller. This could be interpreted to mean that in our locality, there has been a positive shift in the education of women. In other words, more and more women are gaining greater access to educational opportunities over time. The enrollment rate for children 6-16 years old was disturbing. Some 24 percent of children 6-12 years old were not attending elementary school, while 53 percent of children years old were not attending high school. Overall, of children 6-16 years old, 20 percent were not attending school. This suggests that if this trend is not arrested, illiteracy rate in the city will be increasing instead of decreasing. It would also be instructive to point out that one of the major reasons for school non-attendance is poverty. Among poor families with uneducated parents, a nine-year old child or younger is normally perceived not as a potential student to educate but as a pair of hands that can help earn money to augment the meager family income. So, child labor is not uncommon in poor rural communities. A child has to work (instead of going to school) in order for the family to survive. D. On Health and Environmental Sanitation The survey showed that 49.6 percent of the city s household population had no access to safe water. This was two and a half times worse that the national average. The real problem here is not so much the scarcity of potable water sources as the lack of measures to improve existing or develop new sources of potable water. On sanitation, 59.4 percent of the total household population had no access to sanitary toilet facilities. Unsafe water, dirty surroundings, and poverty have a collective adverse impact on the health and lives of inhabitants. Data on morbidity shows that the top ten leading causes are related either to poverty or to unsanitary living GodofredoReteracion.pmd 422 5/25/2010, 4:55 PM

46 Improving LGU Planning and Budgeting Capabilities Through CBMS Godofredo Reteracion 423 conditions, such as upper respiratory tract infection, diarrhea, pneumonia, anemia and abdominal disorders. The same observation applies to mortality. Among the top ten leading causes of death are pneumonia, tuberculosis, diarrhea, measles and delivery, which are all related either to poverty or unhealthy living conditions. E. On Shelter The CBMS results confirmed one major problem in the city and adjacent areas squatting. Roughly 63 percent or more than 6 out of 10 households did not own the lots they occupied but were merely squatting on them (with the tolerance or tacit consent of the landowners, of course). The comprehensive land reform program has made but a small dent in arresting the city s squatting problem. In addition to insecurity of tenure, 5 percent of the total household population lived in makeshift structures, and roughly 35 percent in temporary shelters. The city s shelter program, implemented in collaboration with the National Housing Authority (NHA) and various housing NGOs like Gawad Kalinga, Habitat for Humanity and the Negros Economic Development Foundation (NEDF), has made some headway, but still has a long way to go. F. On Employment Based on the CBMS data, the unemployment rate was unbelievably low at one percent (1%) or less. The reason for this may have had something to do with the period when the data enumeration was conducted which was from September to December This happened to be the milling season when most if not all of the city s labor force were gainfully employed mainly in the harvesting of sugarcane not only in the city but in rest of the province as well. By industry groups, agriculture accounted for 47 percent of the employed labor force, manufacturing for 3 percent, trade and commerce for 2 percent, and the services sector for the rest. By status of employment, 46 percent of the employed had permanent jobs, while 54 percent had seasonal, shortterm or day-to-day employment. GodofredoReteracion.pmd 423 5/25/2010, 4:55 PM

47 Proceedings of the 2008 CBMS Network Meeting 424 Session 6: CBMS and Gender-Responsive Budgeting Forty percent (40%) of the labor force fell into the unskilled category. Female members of the labor force appeared to be better off than their male counterparts only 33.4 percent of female workers fell into the unskilled category versus the 43 percent for the male workers. Interestingly, males outnumbered females in the labor force accounting for 67.8 percent or more than two-thirds of the labor force, versus the females share of 32.2 percent or less than one-third. One dimension of the employment data generated thru the CBMS pertained to the city s overseas worker. Two percent (2%) of our labor force or 570 workers had employment outside the country. Of this number, 29 percent (166) were employed as domestic helpers and caregivers (all women of course); 16 percent as seafarers, 4.4 percent as factory workers, and the rest (50%) as professionals or skilled workers. Overseas employment brings in fresh money from outside the country, and better financial conditions for the respective families, but it exerts some adverse social effects on women and children. G. On Peace and Order Escalante is a relatively peaceful city. This was reflected in the CBMS statistics showing that only 1.08 crimes were committed per thousand population during the survey period. But of the crimes committed, 51 percent were committed against women, and 8.7 percent against children. Of the crimes committed against women, spousal abuse ranked first with a share of 32 percent, followed by rape with 17 percent. Interestingly also, the CBMS figure on crime and violence appeared smaller than the actual figure reported to the City Social Welfare and Development Office. The reason for this is that household members, particularly women, tend to hide such information during data gathering. H. On Women Empowerment The CBMS results showed that only 3 percent of women in the city were members of women organizations. Most (72%) of them, however, are members of the city s religious groups which tend to promote women s welfare. GodofredoReteracion.pmd 424 5/25/2010, 4:55 PM

48 Improving LGU Planning and Budgeting Capabilities Through CBMS Godofredo Reteracion 425 Use of CBMS Results in Planning and Budgeting The CBMS in Escalante City has been helping its LGU in identifying priority areas of concern, which include the following: 1. Poverty Reduction 2. Provision of Basic Education 3. Delivery of Basic Health Services (including greater access to safe water and sanitary toilet facilities) 4. Capacity Development 5. Provision of Security of Tenure and Decent Shelter (with bias for women as direct beneficiaries) 6. Women Empowerment Moreover, the Escalante City LGU has undertaken some policy shifts as a result of the CBMS data analysis. For example, with respect to the 20 percent Development Funds of the City, the new administration has made it a requirement to utilize at least 50 percent of the PhP10.5 million allocation for Barangay Development Assistance. Likewise, a bigger budget allocation has been earmarked under the 20 percent Development Funds for year 2008 for water system development, cooperative development and farm-to-market roads. The city has also made it a policy to ensure that the 5 percent Gender and Development (GAD) Budget be spent in accordance with the GAD Plan that was formulated with the assistance of the DAWN Foundation. The CBMS data on Gender has influenced planners into thinking of better ways to promote women s welfare, even in little ways such as: Providing a greater number of toilet facilities for women than for men; and, Establishing Minding Centers in public buildings for lactating mothers and mothers with infants and small children. The stark economic realities brought to light by the CBMS results motivated the City s LGU to craft its own Development Agenda towards appropriately responding, wholly or partially, to the many GodofredoReteracion.pmd 425 5/25/2010, 4:55 PM

49 Proceedings of the 2008 CBMS Network Meeting 426 Session 6: CBMS and Gender-Responsive Budgeting challenges confronting the people of Escalante City. This Development Agenda is encapsulized in the acronym HEALERS with each letter representing: Human Resource Development Economic Growth and Development Asset Growth and Development Livability Enhancement Environmental Protection and Renewal Responsible Leadership and Citizenry Social Justice and Equity Conclusion The CBMS is a power tool for generating household-based data. But there are some aspects in the data-generating instrument that needs to be improved so that it is able to capture valid, accurate and relevant information. In spite of its minor weaknesses (which represent areas for improvement), CBMS should nevertheless still be employed by LGUs to establish or improve their data banks, and as their ultimate planning and budgeting tool towards effectively responding to the real issues and problems of their respective constituents. GodofredoReteracion.pmd 426 5/25/2010, 4:55 PM

50 Why LGUs Should Adopt CBMS-GRB Celia Flor 427 Why LGUs Should Adopt CBMS-GRB * Celia Flor Good morning. I will talk about the uses of community-based monitoring system (CBMS) for gender-based budgeting (GRB) especially for planning and budgeting. Why should local government units (LGUs) adopt CBMS-GRB? The stake of national and local governments, civil society, and their constituencies is to address poverty and the social, economic, cultural, and political empowerment of the poor and marginalized, particularly women. Those from local governments in the Philippines know that we are, almost yearly, barraged with national mandates that are often unimplemented, mostly donor/fund-driven, and unsustainable. LGUs lack commitment to fund-driven projects. When funds run out, the projects are abandoned. Changes in the local leadership s thrusts also affect focus. Attention is turned to different directions. That is the disappointing state we have in Philippine local governments. Since the early 1990s, gender and development (GAD) has been a mandate and advocacy of many sectors. Unfortunately, even with aggressive advocacy, even with the national policy of providing at least 5 percent of the budget to GAD planning and budgeting, implementation has not been good. GAD generally remained just a concept. If you ask people in local governments if they have GAD plans or GAD budget, they would say yes, they have their 5 percent budget, but what kind of plans do they have? That is the question. * An edited transcript of the presentation of Celia Flor, Councilor, Bacolod City, Negros Occidental, Philippines Flor.pmd 427 5/25/2010, 4:59 PM

51 428 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting With CBMS-GRB, gender mainstreaming is no longer just a concept. For LGUs, it is actually practical more strategic, more responsive, and more sustainable because LGUs are major stakeholders in gender mainstreaming, where they invest in terms of fund and policy. We married CBMS with GRB because of their common functions such as promoting transparency and accountability and monitoring efficiency, impacts, and outcomes. Their complementarities lie mainly in the flexibility of CBMS, which has allowed local governments to input more local indicators, aside from the core indicators of CBMS and even gender indicators, into their planning and policymaking. We have also enhanced CBMS-GRB. We have done Gender Sensitivity Trainings (GSTs), which have made people more aware and more responsive to gender issues. To enhance the validation of CBMS, we have done focus group discussions (FGDs) to validate results, encourage women participation, and validate delivery of services to the constituents. CBMS also facilitates achieving the goals of gender budgeting, such as empowerment, etc. It must be said, however, that we should not simply equate an input or inputs to a certain indicator with one impact or outcome. Outcomes, particularly of empowerment, are mostly a result of a confluence of so many inputs and processes that make CBMS very strategic, as it presents a menu of indicators and processes which encourage community participation and involvement and, thus, are empowering. CBMS provides the necessary database required for GRB. It provides sex disaggregated data; data on conditions of women and men, girls and boys; and data on empowering indicators and environment. Through the core CBMS indicators, the quality of life can be monitored. Moreover, the enhanced CBMS indicators and processes such as the FGDs and GSTs allow for monitoring of household roles, power relations, community participation, and asset ownership. One of the key features of CBMS-GRB is the linking of the household level data with GAD planning. The main objective of CBMS-GRB is to increase the status of women and increase their participation in planning and decision making to address household functions or the reproductive/productive divide, i.e., address the issue of ownership and control of resources and benefits. Flor.pmd 428 5/25/2010, 4:59 PM

52 Why LGUs Should Adopt CBMS-GRB Celia Flor 429 CBMS-Facilitating GAD Plan Figure 1. GAD Plan Column 1 provides for the description or situation analysis of women and men, girls and boys according to a particular indicator (in this case, indicator of CBMS). This is the first step to GRB. Column 2 looks at the gender issue/implication of the particular situation described. How does the situation affect the women and men, girls and boys? Column 3 provides for gender-responsive inputs needed to address the gender issue/implication identified. The input is categorized into policy or program; the policy input is further identified as either executive or legislative in nature. Column 4 describes the activities to be done to achieve policy and/or program input. Column 5 provides for the expected outputs of the identified activities and targets of the identified policy or program inputs. Column 6 describes the expected outcome or impact of policy or program inputs in the promotion of gender equity and fairness in gender relations and gender patterns. It further classifies the outcomes in terms of the practical or strategic gender needs addressed. Flor.pmd 429 5/25/2010, 4:59 PM

53 430 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting Practical vs. Strategic Gender Needs The needs of women and men come out of existing gender roles and are characterized as practical and strategic. Practical gender needs (PGNs) are met through actions that assist women and men to perform existing gender roles more easily. Strategic gender needs (SGNs) are addressed through actions that challenge or change existing gender roles. Addressing the needs of women and men may change existing gender roles. Flor.pmd 430 5/25/2010, 4:59 PM

54 Local Level Gender-Responsive Budgeting and CBMS Ramanjeet Sohal 431 Local Level Gender-Responsive Budgeting and CBMS * Ramanjeet Sohal GRB Initiatives By 2007, more than 90 countries around the world had pursued efforts to introduce gender-responsive budgeting (GRB) into their national or local budget systems. GRB initiatives are primarily concerned with ensuring equitable allocation of government budgets. The aim is to bring awareness of the different needs and priorities of boys and girls, men and women into policies and budgets and of how decisions are made. This could go on beyond gender development to other differentiations, such as race, to try to understand how different segments of population are accepted and whether or not budgets are designed and implemented in a single way. The first point is to understand how budgets are formulated to become gender sensitive, There are two stages in budget reforms. Gender-responsive budgets do not need separate budgets for women. The second point is that gender should be a priority. The third point is that there should be a more equitable distribution of budget. Local Level Gender Budget Initiatives The United Nations Development Fund for Women, or UNIFEM, has supported many gender budget initiatives at the local level. Initiatives have helped to achieve increased transparency in government processes and increased allocations for women s priorities, leading to a more equitable distribution of resources. * An edited transcript of the presentation of Ramanjeet Sohal, Consultant, United Nations Development Fund for Women (UNIFEM) Sohal.pmd 431 5/25/2010, 5:09 PM

55 432 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting Challenges of Implementing Local Level Gender Budget Initiatives Due to very limited data, there is a need for evidence-based data for gender budgeting. There are constraints in the capacity of local governments to generate such data. In many countries, a large portion of budgets is allocated to salaries and operational costs, leaving very little amount for providing services. There are constraints related to limited authority of local governments over inter-governmental fiscal transfers. Integrating GRB into CBMS CBMS-GRB is designed to facilitate local level planning and budgeting using gender-sensitive approach. CBMS-GRB addresses the lack of adequate data at local level, specifically the lack of gender-related data. It also addresses the limited use by local governments of available data in developing policy, programs, and related budgets. CBMS and GRB can reinforce each other and the integration of GRB into CBMS enhances the overall system. CBMS strengthens the potential for facilitating genderresponsive and participatory planning and budgeting. CBMS provides a platform for ongoing monitoring of budgets in terms of their gender responsiveness. Gender-Equitable Local Development One of the programs to be implemented next year is the Gender- Equitable Local Development, which is a joint program of the United Nations Capital Development Fund, UNIFEM, and the United Nations Development Programme. This program is to be implemented in five African countries: Senegal, Sierra Leone, Rwanda, Tanzania, and Mozambique. The aim is to promote gender-equitable development and improvement of women s access to resources and services at the local level through gender-responsive planning, programming, and budgeting. Sohal.pmd 432 5/25/2010, 5:09 PM

56 Learnings from the CBMS-GRB Initiative Nancy Spence 433 Learnings from the CBMS-GRB Initiative Nancy Spence * I must exclaim WOW when I see how far gender budgeting has come since its early days at the Commonwealth Secretariat when it was fairly strictly applied to Ministries of Finance at national levels and quite aloof from ordinary citizens lives. This has changed dramatically and the case studies today demonstrate the degree- to which ordinary people and local governments can benefit from genderresponsive budgeting (GRB). What is it that makes gender budgeting important for local governments? 1. The engendering of the participation and democratization of the budgeting whereby the budget includes the voices of both men and women 2. The ensurance of content of budgets that reflects gender equality and social justice goals, allocating funds and generating income in ways that are socially equitable to both men and women. Why are They so Important? In areas of Justice, they use public funds ordinary citizens have a right to know how budgets are being utilized. In areas of Accountability now transparency is introduced into typically closed practices. In areas of Efficiency, items are more precisely targeted and impact analysis is carried out. In areas of Sustainability, taxpayers become more willing to increase contributions if budget is more transparent and thus, there * Economic and Social Development Affiliates (ESDA), Canada Spence.pmd 433 5/25/2010, 5:13 PM

57 434 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting is increased accountability. In areas where the quality of life is better targeted and public spending is directed to reach those who need it the most. Further characteristics that particularly make the CBMS-GRB tool attractive and innovative are: Its local level application Its proactive, not reactive, nature It specifically targets and adapts to that targeting It is participatory It can target sectoral areas that matter to women such as in health areas; education; and Home Affairs So in the examples and case studies today, are these characteristics evident? The question posed today is to what extent do our two case studies today make use of and demonstrate these characteristics and principles? PIDS Case Study Dr Aniceto Orbeta from the Philippine Institute for Development Studies (PIDS) has demonstrated how CBMS mainstream data could identify areas of the budget that need more allocation based on the sex -disaggregated data and differential allocations to men and women, boys and girls. These provide important benchmarks for governments especially at the local level. They also show how this can better influence the preparations for PPA s configuration and future budget allocations. The Case Study of Morocco Background GRB work in Morocco started in 2002 when senior planners and budget professionals from the Ministry of Finance and line ministries supported the development of gender-sensitive indicators as part of the budget reform to encourage the development of instruments. One of the highlights, in 2005, was the production by the Ministry of Finance of a Gender Report. The Gender Report was presented as an annex to the annual Economic and Financial Report for the year 2006 which accompanied the presentation of the Budget and covered the following policy areas pertinent to the MDG goals: Education, Spence.pmd 434 5/25/2010, 5:13 PM

58 Learnings from the CBMS-GRB Initiative Nancy Spence 435 Health, Agriculture, Justice, Family, Water, Infrastructure, Energy, Transport, Housing, Employment, Planning and Finance. There are four phases as described in the paper that was presented. Phase One and Phase Two have been described to us today in their application at much more decentralized levels. Phase One looked at the criteria for selection of communities for gender budgeting and the subsequent tool collection such as questionnaires and their results. Two subsequent questionnaires looked at a number of areas that were pertinent to the citizens in its community and included: health statistics: socio- economic levels of citizens and their needs; living standards; participation in local governance; incidence of violence; and many others - all of which produced a degree of results. These were then able to finetune a Second Phase of tools and approaches so that the community could complete its own gender budget process, utilizing population and employment statistics ; child mortality and maternal mortality figures, and the division of labour between men and women. In the Third Phase, with local communities, the complexities of the community needs and demands were then able to be identified and teams formed that could create a customized programme at a local level, funded by the World Bank and the Japanese to address specifically community needs. The Fourth Stage will be the adoption of the Community plan for public expenditure based on locally expressed needs and local planning by participants from the community. Hence to assess this case study, on its scale of the above mentioned criteria: It is decentralized, It is participatory; It is transparent. It represents a pro-activity to community needs It reflects a socially equitable response to both the needs of men and women. It also represents a significant and valid shift from centralized control of budgets into the hands of the community. So, top marks to Morocco! Spence.pmd 435 5/25/2010, 5:13 PM

59 436 Proceedings of the 2008 CBMS Network Meeting Session 6: CBMS and Gender-Responsive Budgeting The Case of the Escalante Experience This is closer to home- an area of the Philippines with 21 barangays and 18,000 households, largely involved in sugar cane refinement. Though the national budget had allocated 5 percent to women s areas (gender and development budget or GAD), this budget often went unutilized for a variety of factors. Many budgets drawn up reflected the usual difficulties in defining targeted needs within a top-down politically motivated budget process, in which budgets were often political tools, done by guesswork (despite this National GAD budget target to women) with little gender differentiated analysis. Outside support through the CBMS and women s advocate groups such as DAWN made an analysis of the 2006 data collection and in 2007, an analysis of this. The shocking statistics helped target better budget allocations. They also allowed for integrating evidence- based gender disaggregated data into the future planning processes and procedures. How? The statistics and analysis identified felt needs of the community. These included: 1. A reduction of child and maternal mortality rates and the need for development programmes around this to help women 2. Environmental sustainability of households with safe water and toilets 3. The empowerment of women in employment, family planning, leadership and credit facilities. Only 5 percent of the available women s groups had been involved to date in any planning purposes. Why is the Escalante project a good example of gender budgeting? It identified the target group - to empower women (only 1/3 formally working; only 5 percent part of women s groups involved). The female heads of households had great needs previously overlooked It clearly identified priority needs: child mortality; safe water, toilets and sanitation and economic empowerment. It empowered women by local government participation in planning of budgets with a sense if ownership It used evidence-based data to show how to target goals and provide benchmarks of progress to meeting these. Spence.pmd 436 5/25/2010, 5:13 PM

60 Learnings from the CBMS-GRB Initiative Nancy Spence 437 So another top marks to Escalante! The Case Study of Bacolod City. Celia Flor, the mayor of Bacolod City, demonstrated the matrices and focus groups used to develop CBMS principles applied to genderresponsive budgets in their implementation aspects of 13 plus core indicators of the CBMS tool. Two pages of gender data were collected and they assiduously used gender mainstreaming principles that followed the 5 percent GAD services in the national budget as per the National Commission on the Role of Filipino Women (NCRFW) allocations. Again, the statistics proved revealing and allowed for evidence- based gender analysis to be adopted within the planning and budget principles in Bacolod City. Conclusion What do all these case studies show? What have we learned about CBMS and GRB? We all know that the Millennium Development Goals have many gender issues within them but this has not always helped to target the programme designed to meet the targets of the MDGs. All of the case studies show that gender budgeting, using the CBMS indicators, can assist local governments to address the principles of Millennium Development Goals in a way that are equitable for men and for women, boys and girls. The case studies show the value of using CBMS for local governments in localizing the MDGs. The conclusion drawn is that the use of CBMS applied to MDG targeting covers off many gender issues in its analysis and data gathering, while accessing and identifying a potentially wider financial support base for its activities. Spence.pmd 437 5/25/2010, 5:13 PM

61 BLANK PAGE Spence.pmd 438 5/25/2010, 5:13 PM

62 Regional Poverty Disparity in Viet Nam Regional Poverty Disparity in Viet Nam Vu Tuan Anh 439 Vu Tuan Anh * Viet Nam has 82 million inhabitants living in different regions with different geographical, climatic, economic, and social characteristics. Economic growth, livelihood, income, living conditions, and poverty of the population vary by regions. Viet Nam has made considerable progress in poverty reduction. The poverty rate in the whole country has halved after less than 10 years. However, poverty reduction is still slow in some regions. Identification of regional disparities of multidimensional poverty provides the background for a more focused targeting of the poor and enhancement of appropriate poverty policies in each specific region. In the past few years, the CBMS-Viet Nam project has cooperated with local partners in five provinces in five different regions to conduct poverty studies. This paper presents the results of CBMS implementation in Viet Nam, using CBMS data for the analysis of regional disparities in poverty. The main objective of this analysis is to find out the possible explanatory factors affecting the disparity. Based on the results of analysis, some poverty alleviation policies and proposals for application of a multidimensional poverty index are recommended. This paper consists of three parts. The first part gives an overview of poverty reduction and regional poverty disparity in Viet Nam. The second part examines regional disparity in multidimensional aspects of poverty, based on the analysis of CBMS data. The third part suggests a regional poverty index, which might be used for regional poverty comparison. * Team Leader, CBMS-Viet Nam VuTuanAnh.pmd 439 5/25/2010, 5:18 PM

63 440 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Economic Growth and Regional Poverty Disparity Economic growth is the first and essential factor in improving the living standards of the population and in reducing absolute poverty. Where economic growth is fast and stable, poverty is lesser and is easily alleviated. Employment and income generation have direct economic impact on the population, and it is through the trickle-down effect that growth benefits accrue to the lowest strata of society. Increased disparities in the distribution of living benefits, both across social strata and between regions, are widely experienced in many developing countries. This reflects the failure of distribution policies and the inappropriateness of social and political institutions. Regional disparity in living standard is measured by the difference in income and expenditure of the population in different regions. It is measured also by indicators of specific aspects of welfare, such as education, health, and others. Regional disparity in poverty is measured by the difference in poverty rates of regions. In the 1990s, Viet Nam witnessed an increase in the growth rate of its gross domestic product (GDP). It registered an average annual GDP growth rate of 7.6 percent in the past 16 years ( ). During this period, Viet Nam s population increased by 118 percent and GDP by 322 percent. This represented a GDP per capita growth of 253 percent, or 6 percent annually. Viet Nam s per capita GDP was US$288 in 1995, US$639 in 2005, and US$835 in Thanks to the stable economic growth, poverty rate has declined significantly. The poverty rate measured by Vietnam Living Standard Surveys continuously declined from 58.1percent in 1993 to 16.0 percent in Poverty rate in 2002 has halved compared to that in 1993, and poverty rate in 2006 has also halved compared to that in On average, the poverty rate halved every 8 to 9 years. This means the first goal of the millennium development goals (MDGs) has been completed. Viet Nam is considered a success case in poverty reduction among developing countries. The Human Poverty Index for developing countries (HPI-1) developed by the United Nations Development Programme is an indication of the standard of living in a country. It is a measure of the extent to which people in a country are not benefitting from VuTuanAnh.pmd 440 5/25/2010, 5:18 PM

64 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 441 Figure 1: GDP and Poverty Rate, GDP (bill. US$) Poverty rate (%) Sources: General Statistical Office, Vietnam Statistic Yearbook. Various years. development. While the Human Development Index (HDI) consists of three essential dimensions of human life (i.e., longevity, knowledge, and standard of living) and assesses these components as development, the HPI assesses the same three components from an opposite point of view to take into account factors that HDI does not include. 1 The HPI of Vietnam has significantly declined in the last decade (Table 1). Despite this success, poverty reduction faces some limitations and remains a major concern for Vietnamese society. Some of its limitations are: Poverty reduction is still fragile, unsustainable. A large proportion of people has low income, close to the poverty line; therefore, they easily fall to poverty when natural disasters or economic crises occur, or even when a family member gets seriously sick. The probability of falling again into poverty is still common. 1 The three components of HPI are: (i) Longevity measured by the proportion of the population not expected to survive to the age of 40. (ii) (iii) Knowledge measured by the adult illiteracy rate. Standard of living a composite value measured by the proportion of the population without access to clean water, health services, and the proportion of children under 5 years of age who are underweight. VuTuanAnh.pmd 441 5/25/2010, 5:18 PM

65 442 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Table 1: Human Poverty Index (HPI-1) of Some Asian Countries HPI Rank Malaysia Thailand China Vietnam Philippines Indonesia India Source: UNDP, Human Development Reports 2000, 2007/08. The disparity in income and living standard between rural and urban areas, between different social strata, and between poor and rich provinces tends to increase. The income gap between the richest quintile and the poorest quintile doubled in 15 years (according to the living standard survey of Vietnam s General Statistical Office, it was 4.2 in 1990 and 8.37 in 2006). The Gini index based on income indicator grew up from 0.35 in 1994 to 0.42 in 2006, while the Gini index based on expenditure indicator was 0.34 in 1993, but only 0.37 in There are two opposite tendencies: on the one hand, poverty decreases, but on the other hand, inequality increases. Regional poverty disparity is extending despite reduction of poverty rates in all regions of the country. This paper will look more deeply into this trend. Regional poverty disparity is reflected through some following features: 2 General Statistical Office, Vietnam Statistics Yearbook Hanoi. VuTuanAnh.pmd 442 5/25/2010, 5:18 PM

66 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 443 First, poverty has declined significantly in all major regions in the country, but at different rates. According to the division of the General Statistical Office, there are 8 main geo-economic regions: 1. Red River Delta (11 provinces,population 18.4 million) 2. Northeast Mountains (11 provinces, population 9.5 million) 3. Northwest Mountains (4 provinces, population 2.7 million) 4. North Central Coast (6 provinces, population 10.7 million) 5. South Central Coast (6 provinces, population 7.2 million) 6. Central Highlands (5 provinces, population 4.9 million) 7. Southeast Region (8 provinces, population 14.2 million) 8. Mekong River Delta (13 provinces, population 17.5 million) Map 1: Viet Nam s Eight Regions VuTuanAnh.pmd 443 5/25/2010, 5:18 PM

67 444 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Among these 8 regions, 4 regions (Northwest, Northeast, North Central Coast, and Central Highlands) are less developed economically. They are uplands and mostly populated by ethnic minorities. They face many development constraints, including a difficult physical environment, lack of access to infrastructure, and low educational level. Poverty rate are still high in these regions. The Northwest has a small population but the highest poverty rate. During , the poverty rate fell by 24.4 percentage points (from 73.4% in 1998 to 49.0% in 2006). The Northeast was the second poorest region in 1998, but in 2006 it ranked fourth. Its poverty incidence fell by 37.0 percentage points (from 62.0% to 25.0%). The Central Highlands was the third poorest in 1998 and remained so in 2006 despite a decline in its poverty rate by 23.8 percentage points (from 52.4% to 28.6%). The North Central Coast was ranked fourth in 1998, but it became the second poorest region in Its poverty incidence declined by 19 percentage points (from 48.1% to 29.1%). The remaining 4 regions have reduced their poverty incidence at different rates: in the Red River Delta by 20.5 percentage points, in the Mekong Delta by 26.6 percentage points, in the South Central Coast by 21.9 percentage points, and in the Southeast by only 6.4 percentage points, but it s original poverty rate was already low at 12.2 percent in 1998 (Table 2). Second, as a result of the different rates of poverty reduction, there exists a big difference between poverty incidences of regions and the gap is widening for the poorest regions. The gap in poverty incidence has been reduced in most regions except in 3 of the 4 poorest regions. Compared to the lowest poverty rate in the Southeast region, the poverty difference in the Northwest increased from 6.0 times in 1998 to 8.4 times in 2006, in the North Central Coast from 3.9 to 5.0, and in the Central Highlands from 4.3 to 4.9. At the same time, the difference in the Northeast has decreased from 5.1 to 4.3 (Figure 2). VuTuanAnh.pmd 444 5/25/2010, 5:18 PM

68 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 445 Table 2: Differ ference ence in Poverty Rates Rate (%) Difference (time) Rate (%) Difference (time) Rate (%) Difference (time) Whole country Red River Delta Northeast Mountains Northwest Mountains North Central Coast South Central Coast Central Highland Southeast Region Mekong River Delta Source: General Statistical Office. Vietnam Statistics Yearbook Hanoi. Notes: 1) Poverty rate was calculated by poverty line, which is measured by per capita expenditures in a month as follows: 1998: VND149,000; 2002: VND160,000; and 2006: VND213,000. 2) Regional poverty gap is the difference between poverty rates of other regions to the Southeast Region, which has the lowest poverty rate. Figure e 2: Poverty ty Gaps Between Regions (Southeast Region = 1) Poverty gap between regions (Southeast =1) Northwest Mountains Central Highland North Central Coat Northeast Mountains South Central Coast Mekong River Delta Red River Delta Source: General Statistical Office. Vietnam Statistics Yearbook Hanoi. VuTuanAnh.pmd 445 5/25/2010, 5:18 PM

69 446 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Regional Poverty Disparity Measured by CBMS Data During the last two years ( ), the CBMS-Viet Nam project team has supported local partners in 5 provinces, which represent 4 regions, to conduct CBMS in 50 communes (45 rural communes and 5 urban wards) of 14 districts. Table 3: Scope of CBMS Implementation in Region Province No. of Districts No. of Rural Communes No. of Urban Wards No. of Households Red River Delta Ha Tay ,016 Ninh Binh ,725 Northern Mountains Yen Bai ,314 Southern Central Coast Quang Ngai ,382 Central Highlands Lam Dong ,500 TOTAL ,937 In the surveyed localities, there are 3 whole districts (in Yen Bai, Ninh Binh, and Lam Dong). Except Quang Ngai, all surveyed localities consist of one or two urban wards and several rural communes. Although the population structure in rural-urban terms is not similar in surveyed localities, the collected data can be used as examples for comparing localities in different regions. Using CBMS approach, we also conducted a nationwide sample household survey in within the framework of a research project of the Vietnam Academy of Social Sciences. The survey covered 14,044 households in 133 rural communes and urban wards of 63 provinces (of which there were 11,740 rural households in 60 provinces and 2,304 urban households in 16 cities). In each province two communes/wards were selected, and in each commune/ward approximately 100 households were randomly selected for interview. The results of this survey showed changes in the socioeconomic situation of households and communities (Anh and Mai 2007). This paper also uses the data of this survey, especially data on rural VuTuanAnh.pmd 446 5/25/2010, 5:18 PM

70 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 447 households, for analysis of regional disparity. The indicator set used in CBMS is modified in regions and provinces to adapt to circumstances of localities. However, a number of core indicators are the same in all surveyed localities. This paper uses these common core indicators to examine the regional disparity in the different poverty-related aspects of a socioeconomic situation, namely: (1) household structure, (2) income, (3) dwelling, (4) property, (5) education, and (6) health care. Population and Household Structure There is no significant difference in the sex structure of the population of the surveyed localities. The female population is a bit higher than the male population. This is true in the whole of Viet Nam (50.86% female to 49.14% male in 2007) and in almost all regions, except in the Northwest and in North Central Coast. Regarding the age structure, the significant reduction in fertility and the gradual increase in life expectancy have resulted in the ageing of Viet Nam s population, which has a smaller proportion of young population and a larger proportion of old population. The population below 15 years old has declined from 39 percent in 1989 to 33 percent in 1999 and further down to 26 percent in At the same time, due to rising life expectancy index, the proportion of the population aged 65 and above increased from 5 percent in 1989 to 6 percent in 1999 and 7 percent in 2007 (GSO 2008a). Data on the age structure of surveyed households in all regions reflects this trend in Viet Nam s population change. However, data of regions also show that the poorest regions (Northwest, North Central Coast, and Central Highlands) have higher proportions of young population (0 14 years old) and, accordingly, a lower proportion of people in working age and of people in old age compared to other regions. This is because family planning in these poor regions has weak effects on the fertility behavior of people and having many children is still popular, especially among some ethnic minority communities. The age structure of the population is used to calculate the total dependency ratio. This indicator reflects the relationship of age, fertility, and mortality in the country s labor force. The dependency ratio is an indicator used to assess the quality of the population and it reflects the VuTuanAnh.pmd 447 5/25/2010, 5:18 PM

71 448 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions burden of the working-age population able to work. Total dependency ratio is defined as the percentage of the number of people under 15 years old (0 14) plus old people (65 years old and over) per number of people aged The decline in total dependency ratio of Viet Nam has been due mainly to the reduction of child dependency ratio (0 14). This could be the result of effective family planning programs. The child dependency ratio in Viet Nam has declined from 84 percent in 1979 to 39 percent in 2007, a reduction by more than one-half in 26 years. Meanwhile, the old dependency ratio has continuously increased, but slightly. Data of the regions resemble the national data. Again here, three poorest regions have the highest dependency ratios. The average household size also reflects the differences in population change. While the average household size in the country is 4.6, sizes of households vary in regions, and three poorest regions have larger household size. Accordingly, large households (6 persons and over) in these regions have bigger proportion. Households with 3 5 members are the most popular type in all regions. The proportion of households with 4 members nuclear family with 2 children is about one-third of the total number of households. Poor households have larger household size. This is true for all regions. Households in low-income quintiles have larger size compared to households in higher-income quintiles. Income Income is the major indicator used by Vietnamese government authorities for identification of the poor. The Ministry of Labour, Invalids and Social Affairs has defined the national poverty line for every 5-year period using the monthly per capita income indicator. Local authorities use this poverty line for identifying the poor and distributing support and benefits to them. Household income is also used for analysis of living standards and of poverty and social stratification. Two opposite tendencies exist in Viet Nam during fast economic growth: on one hand, a reduction in poverty rate: on other hand, an increase in inequality in income distribution among social groups and regions, According to national household surveys made by the General VuTuanAnh.pmd 448 5/25/2010, 5:18 PM

72 VuTuanAnh.pmd 449 5/25/2010, 5:18 PM Table 4: Population Structur ucture e of Regions Red Whole River Country Delta Surveyed households Surveyed population Sex structure - Male - Female 2. Age structure (%) and over 3. Dependency ratio (%) - Total dependency - Child dependency - Old dependency Northeast North West North Central Coast South Central Coast Central Highlands South East Mekong River Delta Regional Poverty Disparity in Viet Nam Vu Tuan Anh 449

73 VuTuanAnh.pmd 450 5/25/2010, 5:18 PM Table 5: Structur ucture e of Households by Size (%) Average HH size (person) Of which: Working Age Dependent Number of dependents per working age HH size by income quintile * Quintile 1 * Quintile 2 * Quintile 3 * Quintile 4 * Quintile 5 Structure of HH by size (%) * 1 person * 2 persons * 3 persons Whole Country Red River Delta Northeast North West North Central Coast South Central Coast Central Highlands South East Mekong River Delta Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Proceedings of the 2008 CBMS Network Meeting * 4 persons * 5 persons * 6 persons and over

74 Regional Poverty Disparity in Viet Nam Vu Tuan Anh Statistical Office (GSO), while poverty rate halved during the last 7 8 years, the income difference between the richest and the poorest quintiles increased from 7.30 times in 1996 to 8.37 times in The Gini index of income distribution increased from 0.36 to 0.42 in the same period. CBMS implemented in the provinces of Viet Nam considers income as a most important indicator for comparison of regions and communities. Calculating the average income value in Viet Nam Dong (VND), annual turnover per household in the whole country is VND22.4 million. In the Mekong River Delta, households have the largest scope of economic turnover with VND33.7 million. They are followed by households in Southeast (VND30.7 million), Central Highlands (VND25.8 million), South Central Coast (VND21.5 million), Northeast (VND17.7 million), the Red River Delta (VND16.8 million), Northwest (VND15.4 million), and North Central Coast (VND13.8 million). Comparing the income values to the lowest turnover level of North Central Coast, the largest scope is equivalent to 2.4 times, and the average scope is 1.6 times. After deducting expenses from total turnover, the remaining value is the net income of households. On average, the annual income per household in whole country is VND18.4 million. The highest level is achieved in the Southeast (VND27.2 million), followed by the Mekong River Delta (VND25.3 million), Central Highlands (VND20.8 million), South Central Coast (VND19.1 million), Northeast (VND15.6 million), the Red River Delta (VND14.1 million), Northwest (VND13.5 million), and North Central Coast (VND10.8 million). Comparing the income levels of the regions to the lowest level, the highest level is 2.52 times higher, and the average level is 1.7 times higher, as follows: North Central Coast= 1.00 Northwest= 1.25 Red River Delta= 1.31 Northeast= 1.44 South Central Coast= 1.77 Central Highlands= 1.93 Mekong River Delta= 2.34 Southeast= 2.52 VuTuanAnh.pmd 451 5/25/2010, 5:18 PM

75 452 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Figure 3: Average Household s Tur urnover and Income in Regions (million VND) The difference of 2.52 times between the highest and the lowest income shows that income disparity of regions is quite significant. However, according to national household surveys conducted by GSO, this regional disparity is much wider at 2.85 times. The average income per capita per month is VND351,000. The regional difference is quite big. Taking the lowest income of the North Central Coast as 1, indexes of the other regions are as follows: Northwest 1.29, Red River Delta 1.57, Northeast 1.65, South Central Coast 2.04, Central Highlands 2.10, Mekong River Delta 2.49, and Southeast Figure 4: Average Monthly Per Capita Income ( 000 VND) VuTuanAnh.pmd 452 5/25/2010, 5:18 PM

76 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 453 Comparing the lowest income level (North Central Coast), the highest level is 2.87 times higher, and the average level is 1.9 times higher, as follows: North Central Coast= 1.00 Northwest= 1.29 Red River Delta= 1.57 Northeast= 1.66 South Central Coast= 2.05 Central Highlands= 2.11 Mekong River Delta= 2.49 Southeast= 2.87 A deeper analysis of income differentiation of quintiles helps to identify tendencies of social changes and to supply the background for policymaking process. Data shows that the poverty rate and depth in Viet Nam s rural areas are quite high. Thus, the income differentiation in rural areas is sharp. Taking the MOLISA-defined poverty line of VND200,000 as criterion for calculation of poverty rate in rural areas, it can be said that all households of the Quintile 1 and most of the Quintile 2 are poor. The poverty rate is 30 percent 35 percent, which is similar to the result of national surveys in The income difference of quintiles between the poorest (North Central Coast) and the richest (Southeast) regions increases from 1.31 times in Quintile 1 to 1.89 times in Quintile 5. That means the poverty situation is similar, but the richness has different levels in different regions. Income distribution has no significant difference between regions. As data show, in rural areas of the country, 20 percent of households belonging to Quintile 1 accounts for only 5.7 percent of total income, while 20 percent of households belonging to Quintile 5 accounts for 46.8 percent of total income. The poorer regions have smaller income gap between the rich and the poor. In the poorest region, the income gap between Quintile 5 and Quintile 1 is 6.8 times, while in the richest region, the index is VuTuanAnh.pmd 453 5/25/2010, 5:18 PM

77 VuTuanAnh.pmd 454 5/25/2010, 5:18 PM Table 6: Monthly Per Capita Income by Region and Quintile ( 000 VND) Rural area - Red River Delta - Northeast - Northwest - North Central Coast - South Central Coast - Central Highlands - Southeast - Mekong River Delta Max (Southeast) : Min (North th Central Coast) Whole country Quintile Quintile Quintile Quintile Quintile Quintile 5: Quintile Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Proceedings of the 2008 CBMS Network Meeting

78 VuTuanAnh.pmd 455 5/25/2010, 5:18 PM Table 7: Income Distribution (% total tal income) Total Quintile Rural area - Red River Delta - Northeast - Northwest - North Central Coast - South Central Coast - Central Highlands - Southeast - Mekong River Delta Maximum-Minimum Quintile Quintile Quintile Quintile Quintile 5: Quintile Regional Poverty Disparity in Viet Nam Vu Tuan Anh 455

79 456 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Dwelling Most households in Viet Nam own a house. In rural areas, almost all households have their own residential land and house. In urban areas, 90 percent of households own a dwelling (house, apartment, or room), and only 10 percent rents dwelling (Anh and Mai 2007). Types of dwelling are diversified by regions because of differences in climatic conditions, traditional housing habits of ethnic groups, and living standards. For identification of living standards, however, one can classify dwelling in terms of solidity of construction and conveniences. There are three types of dwelling used by localities for identifying living standards and poverty: (i) permanent houses, which consist of brick/stone houses (multi-storey or one-storey) and good wooden houses; (ii) semi-permanent houses (wooden or brick dwelling of low quality); and (iii) temporary houses (bamboo houses, tent, dilapidated houses). Poor households own certainly the third type of dwelling, but many of them have also the second type of dwelling. In addition, a small number of young families and migrants do not have their own dwelling. In the National Program for Poverty Reduction, supporting poor households in rubbing out temporary tents and degraded bamboo houses and in constructing new dwelling is one important activity. At the beginning of 2005, 4 provinces completed this objective. By the start of 2006, another 17 provinces have achieved the goal of rubbing out temporary dwellings. There are still a noticeable number of households with temporary dwelling in the poor regions. The proportion of households that own temporary dwelling is 17.7 percent in the whole country. The regions with a high percentage of this dwelling type are Mekong River Delta (29.3%), North Central Coast (24.4%), Southeast (24.2%), Northwest (23.6%), and Central Highlands (19.2%). Only the Red River Delta has low percentage of this dwelling type (2.8%). Regions in the north have lower proportion of temporary dwelling than regions in the south because the climate in the north is cold in winter (Table 8). VuTuanAnh.pmd 456 5/25/2010, 5:18 PM

80 VuTuanAnh.pmd 457 5/25/2010, 5:18 PM Table 8: Types of Dwelling (%) Propor oportion of households with dwelling (%) * Multi-storey permanent house * One-storey permanent house * Semi-permanent dwelling * Temporary dwelling * No owned dwelling Average living area of main dwelling (m2) * Multi-storey permanent house * One-storey permanent house * Semi-permanent dwelling * Temporary dwelling Whole country Red River Delta North th East North th West North Central Coast South Central Coast Central Highlands South east Mekong River Delta Regional Poverty Disparity in Viet Nam Vu Tuan Anh 457

81 458 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Figure 5: Structure of Dwelling Types in Regions Poor households and young families have mostly temporary dwelling. Approximately one-third of households belonging to the Quintile 1 (the poorest) have this dwelling type. The proportion of this dwelling type decreases with increasing income (Table 9). The proportion of households with permanent dwelling increases with the increase in income. This tendency is true in all regions. The Red River Delta has the highest proportion of permanent dwelling type, with 55.8 percent of households in Quintile 1 and 75.8 percent in Quintile 5. In other regions, the number of households with permanent dwelling has tended to increase. Ownership of Durable Consumer Goods Ownership of valuable consumer goods reflects the level of a household s living standards. It also shows the level of satisfaction of some basic needs, such as transportation, access to information, access to living convenience, and others. On means of transportation, bicycle and motorcycle are the most popular individual transport means in Viet Nam. Overall, 47.8 percent of rural households own at least a motorcycle. On average, there is 1 motorcycle per 2 households and 12 motorcycles for every 100 people. The poorest region (North Central Coast) has the lowest number of motorcycles per capita. VuTuanAnh.pmd 458 5/25/2010, 5:18 PM

82 VuTuanAnh.pmd 459 5/25/2010, 5:18 PM Table 9: Types of Dwelling by Region and Income Quintile (%) Whole country Red River Delta North th East North th West North th Central Coast South Central Coast Permanent dwelling (%) Total * Quintile 1 * Quintile 2 * Quintile 3 * Quintile 4 * Quintile 5 Semi-permanent dwelling (%) Total * Quintile 1 * Quintile 2 * Quintile 3 * Quintile 4 * Quintile Central Highlands South east Mekong River Delta Regional Poverty Disparity in Viet Nam Vu Tuan Anh 459

83 VuTuanAnh.pmd 460 5/25/2010, 5:18 PM Table 9 (continued) Temporar emporary y dwelling (%) Total * Quintile 1 * Quintile 2 * Quintile 3 * Quintile 4 * Quintile 5 Whole country Red River Delta North East North West North Central Coast South Central Coast Central Highlands South East Mekong River Delta Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Proceedings of the 2008 CBMS Network Meeting

84 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 461 More than one-fourth of households own at least a bicycle. The Mekong River Delta, where water transport is more popular than land transport, has the lowest percentage of ownership of bicycles. On average, every 100 people have 27 bicycles, and 13.8 percent of households do not have any motorcycle or bicycle. On equipment for accessing of information, the television set is popularly used by people. Of the 76.6 percent of households that own a TV, 62.9 percent have a color TV and 13.7 percent have a blackand-white TV. This latter type of TV is used mostly by the poor, or where there is no grid electricity yet. There is significant difference between regions in terms of ownership of TV. The poorest regions have lower ownership percentages: Northwest 59.2 percent, North Central Coast 65.0 percent, Northeast 72.1 percent, and Central Highlands 72.8 percent. The richer regions have higher percentages: Red River Delta 80.7 percent, South Central Coast 81.7 percent, Mekong River Delta 84 percent, and Southeast 87.1 percent. On average, there are 35 video-audio equipments available per 100 people. The highest number is in Red River Delta, Mekong River Delta, and Southeast (about 40 units), while the lowest number is in the poorest region (22 pieces in North Central Coast). Overall, 16.4 percent of households still do not own any video-audio equipment to access information. As usual, the poor regions have higher proportions of households that do not own any equipment, namely: Northwest 29 percent, North Central Coast 26 percent, Central Highlands 21.5 percent, and Northeast 20.5 percent. Other regions have much lower proportions: South Central Coast 13.7 percent, Red River Delta 11.1 percent, Mekong River Delta 10.6 percent, and Southeast 7.7 percent. Ownership of durable consumer goods also varies among households belonging to different income quintiles. Indicators of ownership of three goods TV set, motorcycle, and telephone show clear correlation between living standards and satisfaction of needs for transport, access to information, and communication (Table 10). Ownership of TV set is common among rich households, while the proportion of poor households (belonging to Quintiles 1 and 2) who do not have a TV set is high at percent in the poor regions. Ownership of motorcycle is at 60 percent 80 percent in richer VuTuanAnh.pmd 461 5/25/2010, 5:18 PM

85 VuTuanAnh.pmd 462 5/25/2010, 5:18 PM Table 10: Ownership of Durable Consumer Goods Percentage of households that own goods (%): * Radio receiver * B&W TV set * Color TV set * Video, VCD, DVD player * Audio equipments * Electric fan * Sewing machine * Refrigerator * Motorcycle * Bicycle * Telephone * Washing machine * Computer Whole country Red River Delta North th East North th West North th Central Coast South Central Coast Central Highlands South East Mekong River Delta Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Proceedings of the 2008 CBMS Network Meeting

86 VuTuanAnh.pmd 463 5/25/2010, 5:18 PM Table 10 (ontinued) Households without any video-audio equipment (%) Households without any motorcycle, bicycle (%) Number of motorcycles per 100 people Number of bicycles per 100 people Number of videoaudio equipments per 100 people Whole country Red River Delta North th East North th West North th Central Coast South Central Coast Central Highlands South East Mekong River Delta Regional Poverty Disparity in Viet Nam Vu Tuan Anh 463

87 VuTuanAnh.pmd 464 5/25/2010, 5:18 PM Table 11: Ownership of Durable Consumer Goods by Income Quintile (% Households) Whole country Red River Delta North th East North th West North th Central Coast South Central Coast Central Highlands South East Mekong River Delta TV set (%) Total * Quintile 1 * Quintile 2 * Quintile 3 * Quintile 4 * Quintile 5 Motorcycle (%) Total * Quintile 1 * Quintile 2 * Quintile 3 * Quintile 4 * Quintile Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Proceedings of the 2008 CBMS Network Meeting

88 VuTuanAnh.pmd 465 5/25/2010, 5:18 PM Table 11 (Continued) Whole country Telephone (%) Total 11.6 * Quintile * Quintile * Quintile * Quintile * Quintile 5 23 Red River Delta North th East North th West North th Central Coast South Central Central Highlands Coast South East Mekong River Delta Regional Poverty Disparity in Viet Nam Vu Tuan Anh 465

89 466 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions quintiles and at only 20 percent 30 percent in poor quintiles. In richer quintiles, 20 percent 30 percent of households have a telephone, while it is a rare equipment in poor households. Education Two indicators were used for analysis of the education situation: illiteracy and child school enrollment. The literacy rate calculated for people aged 6 and above is 94.5 percent in the whole country. Accordingly, illiteracy rate is 5.5 percent. The mountainous and poor regions have higher illiteracy rate, namely: Northeast 6.9 percent, Central Highlands 9.1 percent, and Northwest 14.9 percent. The percentage of people who have primary education (Grades 1 5) is 31.5 percent, lower secondary education (Grades 6 9) 41.6 percent, upper secondary education (10-12 grades) 18.8 percent, and college and university education 1.8 percent. Table 12: Education Levels of the Population 6 Years Old and Above (%) Whole country Red River Delta North East North West North South Central South Mekong Central Central Highlands East River Coast Coast Delta Illiteracy Primary (Grades 1 5) Lower secondary (Grades 6 9) Upper secondary (Grades 10 12) Vocational secondary College, university Regarding child s schooling, there is a small percentage of children who give up study or do not go to school at all. According to survey data, 5.5 percent of children of school age (6 14 years) do not attend study. The population in the northern part of the country has a VuTuanAnh.pmd 466 5/25/2010, 5:18 PM

90 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 467 tradition of paying more attention to the education of children. In the Red River Delta, the percentage is smallest, only 2.3 percent. The Northeast and North Central Coast, despite being poor regions, also have low percentages (3.4% and 3.6%, respectively). Other regions have significantly higher percentages than the national average, namely: South Central Coast 6.2 percent, Mekong River Delta 7.3 percent, Southeast 7.5 percent, Northwest 8.2 percent, and Central Highlands 9.5 percent. Poverty is an important reason why children do not go to school. Of the cases of children who have dropped out of school, 46.3 percent was due to lack of labor in the family, too high cost of schooling, and others; 14.5 percent was due to invalidity and serious sickness, 27.6 percent was due to bad results in study, and 9.5 percent was due to lack of awareness of parents and children on the necessity of education. The structure of causes of children not going to school is different among the regions. Table 13: Status of Child s Schooling (%) Whole Red North North country River East West Delta North South Central South Mekong Central Central Highlands East River Coast Coast Delta Percentage of 6 14 years old children not attending school (%) * Boys * Girls Why not go to school (% responses) * Lack of labor in family * High costs of education * Bad results in study * Invalidity, sickness * No necessity to study * Other VuTuanAnh.pmd 467 5/25/2010, 5:18 PM

91 468 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Health It is difficult to measure the level of satisfaction of people s basic needs in health care. In CBMS, we use some simple indicators that indirectly reflect the situation of health care of households. These are basic household sanitary facilities, such as supply of safe drinking water, use of sanitary toilet, and having a bathroom. The Government of Viet Nam considers the supply of safe water to population and securing sanitary living environment as among the national priority targets. The National Targeted Program of Safe Water Supply and Rural Sanitary Environment had invested VND7,000 billion (approximately US$0.5 billion) in Until the end of 2005, 68% of the rural population has access to safe drinking water. Still 32% of the rural population used unsafe water (from rivers, ponds, lakes, and others.). For , the National Targeted Program has planned to invest VND22,600 billion (US$1.4 billion). Poor regions belong to prioritized areas of this program. Sources of water are diverse in the regions. One used to consider piped water, rain water, and water from deep-drilled wells as safe. Water from dug wells may be safe or unsafe depending on concrete conditions of locations and seasons. Water from natural surface sources like rivers, lakes, ponds, and streams is considered unsafe. Table 14: Access to Safe Water for Drinking and Cooking (%) Whole country Red River Delta North East North West North South Central South Mekong Central Central Highlands East River Coast Coast Delta Piped water, public reservoir Rain water Deep-drilled well Dug well Pond, lake, river Note: Sum of all types might be over 100% because one household may use several water sources VuTuanAnh.pmd 468 5/25/2010, 5:18 PM

92 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 469 Accepting the working definition that water from dug well is considered unsafe, it can be said that only 50 percent of the population has access to safe water. In the mountainous regions like Northwest, Northeast, Central Highlands, and Southeast, more than 70 percent of the population still use unsafe water sources (Figure 6). Figure 6: Access to Safe Drinking Water (%) Poor households face more difficulties in accessing safe water sources. Based on two types of sources (deep-drilled well and natural surface sources) and comparing the percentage of users by income quintiles, one can see that the poorer quintiles have smaller percentages in using deep-drilled water since this type needs a certain amount of money to set up. On the other hand, these poorer quintiles have larger percentages in using free-of-charge but unsafe water from natural surface sources (Table 15). VuTuanAnh.pmd 469 5/25/2010, 5:18 PM

93 470 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions Table 15: Access to Safe and Unsafe Water by Income Quintile (%) Whole country Red River Delta North th East North th West North th South Central South Central Central Highlands East Coast Coast Mekong River Delta Deep-drilled well (%) * Quintile 1 17,9 17,8 14,3 0,0 29,0 26,0 1,0 10,6 29,4 * Quintile 2 18,4 19,8 13,9 1,4 30,0 23,5 0,5 12,8 30,2 * Quintile 3 20,0 22,0 13,3 0,7 37,5 27,5 1,0 14,4 31,7 * Quintile 4 21,7 20,2 14,9 1,4 43,2 30,5 3,0 16,7 33,8 * Quintile 5 24,2 22,8 19,2 2,1 48,5 30,0 1,5 15,5 38,3 Pond, lake, river (%) * Quintile 1 11,0 0,5 18,7 52,1 5,0 0,5 9,9 10,6 6,0 * Quintile 2 10,3 0,5 18,9 41,8 3,5 0,0 15,8 11,1 4,0 * Quintile 3 8,1 0,3 16,1 40,1 3,5 0,5 3,4 11,7 1,5 * Quintile 4 6,8 0,2 11,3 37,0 2,5 0,5 0,5 11,7 3,1 * Quintile 5 5,0 0,3 8,2 30,8 1,5 0,0 0,0 10,5 1,0 In the whole survey sample, only 41.5 percent of households have a sanitary toilet. This figure is similar to the result of the health survey done by the Ministry of Health in Among regions, the Red River Delta has the highest percentage (64.7%), followed by South Central Coast (54.9%), Southeast (49.1%), Northeast (46.3%), and North Central Coast (45.5%). The Northwest has only 22.9 percent, Central Highlands has 23.3 percent, and Mekong River Delta has 2 percent. These figures are too low compared with the target of the National Strategy of Safe Water Supply and Sanitary Environment, in which 70 percent of households will have sanitary toilets by VuTuanAnh.pmd 470 5/25/2010, 5:18 PM

94 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 471 Table 16: Types of Toilet (%) Whole Country Red River Delta North th East North th West North th Central Coast South Central Coast Central Highlands South East Mekong River Delta Sanitary types Unsanitary types No toilet Proposal for a Composite Poverty Index Poverty rate, measured by value indicators such as income and expenditures of households and individuals, gives a general picture of poverty but does not reflect concrete aspects of how people live. Poverty as a multidimensional phenomenon reflects first and foremost the failure of society to satisfy human basic needs such as food, clothing, housing, education, healthcare, information, and others. However, if indicators of basic needs are used separately, one cannot define the overall poverty rate nor compare the poverty of different regions. In CBMS, poverty is comprehensively reflected by a set of indicators that include both value indicators (income) and basic household needs (food intake, clothing, housing, transportation, education, and health care). A study has been also done for identifying a composite poverty indicator for Viet Nam (Asselin 2002; Asselin and Anh 2005). In this study, eight simple nonmonetary, categorical indicators of human and physical assets developed in CBMS research in Viet Nam have been analyzed and aggregated in a composite indicator using the factorial technique. These indicators reflect the following groups of basic needs of the population: (1) income generation (underemployment); (2) health (chronic sickness, access to safe drinking water, sanitary facilities); (3) education (adult illiteracy, child under schooling); (4) housing (types of dwelling); and (5) access to information (ownership of TV set, radio receiver). Comparing this multidimensional approach to poverty VuTuanAnh.pmd 471 5/25/2010, 5:18 PM

95 472 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions measurement with the money-metric approach based on total household expenditures shows that the CBMS-type indicators have a strong analytical potential for multidimensional poverty analysis, being complementary to the more standard money-metric analysis. In addition, due to their low cost, the CBMS-type indicators should be looked at to meet the objective of regularly producing largely disaggregated poverty profiles for a more efficient monitoring of poverty reduction policies and programs. During implementation of the proposed composite poverty index in localities, a problem occurred. It seems that the factorial analysis technique, or the multiple correspondence analysis (MCA), is having difficulty in implementation because local partners, especially people from the district and commune levels, are not able to understand and to use it. In order to follow one fundamental principle of CBMS, namely the simplicity of indicators and methods, we proposed to develop a composite poverty index, which is constructed without weighting primary indicators. In practice, this type of composite index has been implemented widely. The Human Development Index (HDI), Human Poverty Index (HPI), MDG Index, and some other indexes developed by the United Nations Development Programme belong to this type. The HPI for developing countries (HPI-1), for example, attempts to capture deprivations in three essential dimensions of human life already reflected in the HDI. It includes three components: Longevity measured by the proportion of the population not expected to survive to the age of 40 (P 1 ). Knowledge measured by the adult illiteracy rate (P 2 ). Standard of living a composite value measured by the proportion of the population without access to clean water (P 31 ), health services (P 32 ), and the proportion of children under 5 years of age who are underweight (P 33 ). The composite variable P 3 is constructed by taking a simple average of the three variables P 31, P 32, and P 33. Thus: P 3 = (P 31 + P 32 + P 33 ) / 3 VuTuanAnh.pmd 472 5/25/2010, 5:18 PM

96 Regional Poverty Disparity in Viet Nam Vu Tuan Anh 473 The HPI-1 is computed by the following formula: HPI-1 = [1/3(P 13 +P 23 +P 33 )] 1/3 The composite MDG index includes 8 goals divided into 18 targets with 48 indicators. Despite of its complexity, this index is calculated by a similar method as that of HPI. Implementing this computation method of composite indexes, we propose to compute a CBMS Composite Poverty Index (CBMS-CPI), using a set of CBMS indicators, namely: 1. Food poverty: percentage of households that have income below food poverty line (P 1 ). 2. Dwelling poverty: percentage of households that have temporary dwelling and do not have own dwelling (P 2 ). 3. Information poverty: percentage of households that do not own any audio-video equipment (P 3 ). 4. Communication poverty: percentage of households that do not own any motorcycle and bicycle (P 4 ). 5. Knowledge poverty: simple average of adult illiteracy rate and child under-schooling rate (P 5 = ½[P 51 + P 52 ]) 6. Health poverty: simple average percentage of households that have no access to safe drinking water and do not have a sanitary toilet (P 6 = ½[P 61 + P 62 ]). In a better option where data are available, we can add other indicators that reflect the fundamental situation of health poverty, like percentage of child malnutrition. The CBMS Composite Poverty Index is a simple average of the 6 poverty indicators above: CBMS-CPI = 1/6(P 1 +P 2 +P 3 +P 4 +P 5 +P 6 ) CBMS-CPI has the following advantages: It contains the major aspects of human poverty, thus it is a multi-dimensional poverty indicator. One can use it for measuring and comparing poverty across time and regions. Major aspects of poverty reflect most targets of the national VuTuanAnh.pmd 473 5/25/2010, 5:18 PM

97 474 Proceedings of the 2008 CBMS Network Meeting Session 7: Monitoring Sectoral and Geographical Disparities in Welfare Conditions poverty reduction program. Therefore, it can be used for monitoring poverty reduction activities and programs. Computing method is very simple and easy to understand, hence, people at the grassroots level can use it. Except income, all the rest of the indicators are based simply on data to be collected. However, data on income is the most important, which communities have to collect and to monitor regularly, and is used by MOLISA to determine the poverty line. This poverty line is approximately at the level of food poverty. Therefore, this data can be used for computing CBMS- CPI. To test CBMS-CPI, CBMS data is used for computing and comparing CBMS-CPI of regions (Table 17 and Figure 8). Comparing CBMS-CPI with income poverty P1, one can see how the multidimensions poverty and purely value poverty are different (Figure 9). Figure 9: Comparison of Income Poverty Rate and CBMS-CPI VuTuanAnh.pmd 474 5/25/2010, 5:18 PM