Reflections on the Human Condition - Api-fellowships.org

270 SESSION IV
The Local Government Code (LGC) of 1991 has
given new incentives to local politicians to plan and
implement various kinds of development projects in
their jurisdictions. Before the enactment of the LGC,
local development projects only meant construction
of local roads and public utilities. It was only recently
that relatively large-scale and long-term development
projects became possible for local government units
(LGUs) to implement. The nature of development is
also shifting from hard infrastructure to job and/or
income generating projects. The fruits of the new type
of development projects could benefit not only the local
politicians (e.g. from contract commissions), but also
the residents of the LGUs. The success of development
projects could also be a showcase of the local politicians’
management skills, as well as a positive complement for
their political ambitions.
With the enactment of the Special Ecozone 1 Act in
1995, LGUs have been authorized to establish the
export processing zones. Such projects are normally
planned and implemented by the national government
in other ASEAN countries. In this sense, the Philippine
local governments have more authority in development
planning than their ASEAN counterparts.
A locally initiated export processing zone is not only
a unique experiment in development planning in the
region but is also a good example from which shorter
term and less expensive development projects can
extract instructive or useful lessons. Since an export
processing zone project needs time and resources, it
demands local government longer-term planning and
funding, creative use of formal and informal rules,
and maximum political skills of the chief executive.
The project needs a comprehensive development
approach as well, since it needs not only on- and offsite
infrastructure and industrial development but also
increase of agricultural products for agro-industrial
Ecozones and so on. Moreover, if a political leader who
initiated the project wants to taste the fruits of his work,
he needs to maintain specific political positions or at
least to make sure that his political allies maintain them.
If not, he only spends time and resources, but cannot
gain much benefit from the project.
To determine the targets of local governments, the
author followed an Ecozone list made by the Philippine
Economic Zone Authority (PEZA) in 1999. According
to the list, there have been 11 LGUs registered with the
Philippine Economic Zone Authority as proponents of
export processing zones in their localities. The number
has not been changed until 2004. One LGU (Agusan
del Norte) has two projects in Nasipit and Tanay;
Ref lections on the Human Condition: Change, Conflict and Modernity
The Work of the 2004/2005 API Fellows
therefore 12 cases were the subjects of my fieldwork.
The research approach was as follows:
1. To conduct interviews with key actors of the projects
namely: local chief executives, local legislators, local
officials, barangay2 captains, regional/ provincial/
city/ municipal representatives of national agencies,
local residents, and local NGOs; and
2. To collect data, written papers and newspaper
articles related to the projects.
The analysis will be carried out as follows:
1. To categorize cases in terms of their beginnings,
features of the development site, type of the
implementing body, and marketing styles; and
2. To classify the cases according to their stage of
development (i.e. PEZA approval, presidential
endorsement, site construction, start of operation)
and identify the decisive factors that define the
stage of development. General possible factors
are geographical factors (rural or urban, distance
from Manila), economic factors (size of income,
infrastructures), and political factors (leadership,
political will, political stability).
The analysis of the political dynamics in relation to
the implementation of projects is a fruitful exercise to
understand the development process. It is hypothesized
that (a) political factors are playing the most decisive
role among others; (b) the confluence of the new rules
and actors amidst the old patron-client relations defines
the nature of the pace/stage of project implementation;
(c) successful local governments are able to make
innovative arrangements for securing funds and
maintaining implementing bodies in order to continue
the project and hurdle the constitutional term limits for
local politicians.
BACKGROUND OF EXPORT PROCESSING
ZONE IN THE PHILIPPINES
Early efforts at export promotion similar to the East
and Southeast Asian counterparts were employed
during Marcos administration. The Incentives Act of
1967 (RA5186), the Export Incentives Act of 1970
(RA6135), and the Foreign Business Relations Act of
1970 (RA5455) were legislated.
Four national government-owned economic export
processing zones were established during the Marcos
administration. 3 The history of Philippine Ecozones
shows deep involvement of the president himself in the
selection of the locations and planning and funding of
Ecozone constructions. In two out of four cases, local