Interim Evaluation of the Sustainable Rural Development Program (SRDP), By Eddie L. Quitoriano

8/14/2019 Interim Evaluation of the Sustainable Rural Development Program (SRDP), By Eddie L. Quitoriano

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Introduction

The Central Luzon Sustainable Rural Development Programme (CL-SRDP) is a strategicconsolidation program that takes off from the Rural Empowerment through Agrarian/AssetDevelopment (READ) Programme that was evaluated by the German Federal Ministry forEconomic Cooperation and Development (BMZ) and the German Protestant ChurchDevelopment Service (EED) in 2003. It continues to complement EEDs and the GermanGovernments Program of Action 2015 that aims to halve poverty worldwide.

The CL-SRDP is a continuity program that takes off from the success of the READProgramme. It has seven (7) major components, namely: (1) genuine agrarian reform, (2)economic support services, (3) education support program, (4) local governance, (5)capability building, (6) women empowerment and leadership training for holisticdevelopment and (7) youth development. Its declared objectives include the following:

To strengthen autonomy and capacity of NMGL and other major partner POs. To protect the gains of agrarian reform and pursue land reform struggles for landless

farmers To increase household incomes and quality of life of the beneficiaries To increase people participation in local governance To increase participation of women and strengthen their co-ownership of assets

accruing from agrarian reform To increase the participation of the youth in agrarian reform and rural development To increase the level of human capital resources in rural areas

Objectives of the Evaluation

This Interim Evaluation is a formative evaluation. It is an externally-assisted process onbehalf of and for the benefit of the management of PDI and NMGL and other partner POs..Both participated in the process of collecting and analyzing the data. The main objectives are:

To assess the interim results of the CL-SRDP based on its declared objectives; To assess the preparedness of PDI and NMGL and other partner POs to

sustain program implementation; and, To determine gaps and recommend necessary measures in order to ensure

achievement of the declared objectives.

Evaluation Criteria

The evaluator undertook an interim assessment as a process of consolidating lessons learnedwhich could help PDI and NMGL and other partner POs determine programming activitiesfor the next phase. Primary emphasis will be on the review of the management and deliverymechanisms adopted by both PDI and NMGL and its partner POs and secondarily on theinterim assessment of relevance, effectiveness and sustainability relative to the rationale,problems and needs of the target groups and overall changes in the external environment of

Central Luzon.

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The specific areas of study are the following:

1. Efficiency primarily to review the quality of the internal organizational andmanagerial structures of PDI and NMGL and its partner POs in relation to thefulfillment of the program objectives, deployment of human resources, project

budgets, disbursements and overall management of financial, technical andhuman resources.

2. Relevance primarily to review the validity of the strategies used against therationale and assumptions of the program; also, to review the inter-relationships of the various components relative to the declared objectives.

3. Effectiveness primarily to review the interim results and benefits accruing tothe target groups relative to the strategies used and cost of activities.

4. Sustainability primarily to review, on the one hand, the readiness of PDI todevolve responsibilities and resources to NMGL and its partner POs and, onthe other, the preparedness of NMGL and partner POs to assume greater roleand ownership of the program.

Methodology

The evaluator used two main methods of achieving the evaluation objectives, namely:

Document Review and analysis primarily using internal and project relateddocumentation of PDI and NMGL and partner POs. These include internal

plans, assessments, researches and financial reports. Evaluation Workshop participated by management personnel of PDI(including some BOT members), leaders of NMGL and partner POs(including some BOT members) and selected heads of the women and youthorganizations. The workshop was conducted on December 12-14, 2006 at theAngels Hills Foundation Retreat Center in Tagaytay City.

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Interim Results

Programme Management

The CL-SRDP implementation strategy is intrinsically a partnership strategy between PDIand NMGL and other PO partners. At the onset, PDI relied on the partnership with NMGLespecially on the agrarian reform arena. Currently, the partnership has been broadened toinclude BUKAL, the regional representation of IP organizations and PASAMAKA-L, theregional representation of womens organizations. Thus, CL-SRDP is now implemented by amuch broader partnership that encompasses PDI and NMGL, BUKAL and PASAMAKA-L.Nevertheless, NMGL plays a critical role in the partnership being the core partner. PDI, onthe other hand, retains overall supervision and management of funds and deliverymechanisms. The role of NMGL, BUKAL, PASAMAKA-L and their affiliates ishighlighted in almost all components of the program but most especially in agrarian reform,

indigenous peoples support, economic support services, women and youth development andorganizing and capacity building.

The PDI organizational structure is a functional and area-based structure. Instead of creatingcentral office-based departments, the operational bodies are field-based and the scope of work is determined by boundaries in outreach usually following the governments politicalboundaries. The Central Office hosts overall leadership and management by the Office of theExecutive Director and major support units like Finance and Administration, Research andMonitoring and Information System.

The frontline units are the Area Management Teams (AMTs) of which three (3) are fullyconstituted, namely: Zambales Area Management Team, Nueva Ecja Area ManagementTeam and Palawan Area Management Team. In provinces where NMGL and affiliates cantake on heavier partnership roles (such as Pampanga, Tarlac or Bataan), PDI fields one-person units for purposive work in developing the capacity of NMGL and partner POs.

Efficiency

The total project cost, as of June 2006, is PHP 32.23 million of which PHP 21.27 million wasused to cover direct program costs, PHP 9.12 million for personnel costs and PHP 1.12

million for coordination costs. Overall, the program is relatively efficient having maintaineddelivery cost of 31.77 percent to total cost. 1 This efficiency ratio would rise if leveragedresources were added to total costs.

For the period under review, PDI spent PHP 21.27 million in direct program costs. Duringthe same period, the POs were able to exercise their political muscle to generate PHP 21.4million worth of resources from government for the benefit of the communities covered bythe CL-SRDP. This essentially meant that the CL-SRDP had practically doubled the directprogram budget by matching PHP 21.4 million of leveraged resources to the EED budget of PHP 21.27 million. This means that PDI and NMGL have been able to generate PHP 1 forevery PHP 1 that EED granted to the program beneficiaries.

1Delivery cost refers to the total cost involved in delivering the direct program costs to the beneficiaries. This

includes cost of personnel, administration and coordination. These are also alternatively described as indirect costs.

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Taking the above into account, the total program resources would be PHP 53.63 million of which PHP 42.67 million theoretically comprised the direct program resources delivered tothe beneficiaries at a cost of PHP 10.24 million. This suggests a higher efficiency ratio wherePDI is able to deliver the program resources at a mere 5.24 percent of total costs.

Capacity

The officers and staff of PDI have acquired new knowledge and skills from theory andpractice in development work and from the organizations capability building programdeveloped and implemented after the READ Programme Evaluation. The ability to deliver isreinforced by a sense of organizational citizenship that is strengthened by their closeness tothe partner organizations in the communities and their constant interaction with thegrassroots. Structurally, the NGO staff co-inhabits the program machinery at the field leveldirectly with its partners inclusive of the fact that some NGO staff are also from thecommunities. Thus a high level of unity between NGO and PO has been achieved butwithout sacrificing the autonomy of either organizations.

At the central level, the Management Committee assists the Office of the Executive Directorin organizational leadership and program implementation. Comprised by the ExecutiveDirector and major line officers, the Management Committee also acts as a mechanism forthe development of PDI second liners which matches the inputs provided in the capabilitybuilding program. The Management Committee is the main platform through which theExecutive Director provides a mentoring and directional role to guide the second liners.

The present second liners exhibit distinct abilities in field operations, financial managementand administration.

Alliances and Networks

PDI and NMGL continue to benefit from its wide-ranging network of allies in governmentand the private sector both at the national and local levels. At the Department of AgrarianReform (DAR), PDI and NMGL counts on the attention and support of at least 24 keyofficials including the DAR Secretary, Undersecretary and Assistant Secretary as well asregional, provincial and municipal agrarian reform officers. At the Department of Education(DepEd), they have at least 5 allies at the regional and district levels. At the NationalCommission on Indigenous Peoples (NCIP), they have at least 4 allies including twocommissioners and a regional director. Engagements with LGUs have also produced at least

10 allies including one Provincial Governor and 9 Municipal Mayors.

PDIs traditional strength is its alliances with like-minded NGOs. To date, this network of allies has expanded to 21 including foreign NGOs like VSO and FIAN. This is reinforced byPDIs alliance with the party list group AKBAYAN and deep-seated links with privatepersons in the NGO community, academe and private sector. There are at least 10 allies inthe private sector who contribute not only knowledge and skills but also financial resources;7 allies from the professional sector who can enrich PDI knowledge base; 4 allies from theChurch sector including the influential Catholic Bishops Conference of the Philippines(CBCP) and more than a dozen allies in the academe including experts working inuniversities abroad.

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Agrarian Reform

During the implementation of the READ Programme, PDI and NMGL targeted 5,291hectares of private agricultural lands and were able to effect the distribution of 2,953 hectaresin favor of agrarian reform beneficiaries (ARBs). Currently, under the CL-SRDPconsolidation program, the declared target is 2,338 hectares of private agricultural lands and1,000 hectares of ancestral domain lands.

The Land Tenure Improvement (LTI) aspect of PDIs genuine agrarian reform programincludes two major reform areas, namely: (a) agrarian reform focused on agricultural landscovered under CARP under the mandate of the Department of Agrarian Reform (DAR); and,(c) ancestral domain advocacy in support of indigenous peoples (IP) claims over theirancestral domains as provided for by the Indigenous Peoples Rights Act (IPRA) of 1998.These lands pertain mainly to uplands and forest lands claimed defined as ancestral domainsand under the mandate of the National Commission of Indigenous Peoples (NCIP). Prior tothe enactment of the IPRA and the creation of the NCIP, the DENR administered the issuanceof Certificates of Ancestral Domain Claim (CADCs).

Nationwide, LTI processes under CARP have been fraught with problems since thepresidency of Estrada in 2000. Then, the DAR balances consisted mainly of prime privateagricultural lands where landlord resistance is strong and CARP processes have beencontentious, legally and extra-legally. In many places, violence have occurred if only toemphasize that landlords are not willing to easily give up their lands and, on the other, ARBsare not easily cowed as to retract their rightful claims to unreformed big private agriculturallands. Similarly, the CL-SRDP targets consist of highly contentious private agricultural landswhere landowner resistance can range from putting up of legal obstacles to contestations

regarding land valuation. This occurs at a time when the government has been gettingreluctant to sustain the budget for CARP. Nevertheless, PDI and NMGL pursued LTI targetsunder CARP against formidable odds. Where other NGOs have failed, PDI was able tooptimize its resources using the SCAT technology of engaging the DAR and localgovernments.

During the last three years (2004-2006), PDI and NMGL were able to reform 14 landholdingsinvolving 578.9 hectares in favor of 466 ARBs (see Table 1). Most of these processesoccurred in Tarlac (146 hectares; 2 landholdings), Pampanga (106 hectares; 3 landholdings),Palawan (93.9 hectares; 1 landholding), Zambales (34 hectares; 3 landholdings), Bataan ( 31hectares; 2 landholdings), Nueva Ecija (35.9 hectares; 2 landholdings) and Bulacan ( 12

hectares; 1 landholding).

The major bulk of land transfers occurred in 2004 when seven (7) landholdings werereformed involving 323 hectares in favor of 246 ARBs. These lands are prime agriculturallands with an aggregate assessed value of PHP 22.7 million. Based on prevailing sellingprices in informal markets, these lands have an aggregate value of PHP 216.4 million.

PDI and NMGL reformed another six (6) landholdings in 2005 involving 162 hectares infavor of 153 ARBs. These lands have an assessed aggregate value of PHP 23.8 million. Atprevailing market prices, however, these lands have an aggregate value of PHP 101.6 million.

In 2006, PDI and NMGL succeeded in reforming one big landholding in Palawan involving93.9 hectares. This land was distributed to 67 ARBs. The assessed value, PHP 59,829 per

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hectare, is relatively lower than agricultural lands in Central Luzon. However, prevailingprices in the same locality already indicate that these lands would now reach a total value of PHP 14.0 million.

Two major issues can be gleaned from the recent agrarian reform struggles: one , the ability of

PDI and NMGL to pursue agrarian reform in highly contentious, highly productive and high-priced agricultural lands where other civil society actors have failed; and, two , the distortionof land markets due to urbanization and speculation where speculative land prices tend torapidly rise at 6 times the assessed value of land. The combination of these two issuesimpacts on the pace of LTI in remaining private agricultural lands. Firstly , landlords will beemboldened to challenge land valuation assessments by the Land Bank and bring the matteroutside of the agrarian courts thus delaying LTI processes. Secondly , ARBs amortizationobligations will unduly rise above the prevailing ability of agrarian reform lands to producerevenues and household incomes.

Table 1. LTI Accomplishment in Private Agricultural Lands, 2004-2006

Year Town/Cities

No.

LO/LH

AreaAwarded

Land Bank of the Phils.

TotalAssessed

Total Land Bankof the Phils. Current Totalof FBs

(in Has.) Value/ha. Assessed Value MarketValue/ha. Market Value

(in PHP) (in PHP) (in PHP) (in PHP Million)

2004 Laur , Nueva Ecija 20 Lot 22 Tinio Property 21 40,000.00 840,000.00 100,000.00 2.1

Morong, Bataan 15 Frederick De Dios 29.05 50,000.00 1,452,620.00 150,000.00 4.3Magalang,

Pampanga 14 Feliciano Tino 28.8 125,000.00 3,600,000.00 1,000,000.00 28.8Angeles,

Pampanga 46 Raul Claveria 34.96 125,000.00 4,370,550.00 1,000,000.00 34.9

Masinloc, Zambales 25 D. Yap 23.5 40,000.00 940,000.00 700,000.00 16.4

11 V. Jalipa 11 40,000.00 440,000.00 700,000.00 7.7CandelariaZambales 14 F. Yap 42.07 40,000.00 1,682,668.00 700,000.00 29.4

Masinloc, Zambales 81 P. Estella 74.66 40,000.00 2,986,280.00 700,000.00 52.2

Tarlac 20 Carbonel 58 110,000.00 6,380,000.00 700,000.00 40.6

2005 Laur , Nueva Ecija 10 Esteban Abesamis 14.97 40,000.00 598,848.00 100,000.00 1.5

Tarlac 90 J. Cojuangco 88 200,000.00 17,600,000.00 1,000,000.00 88Magalang,Pampanga 28 Tinio Prop. 42.51 40,000.00 1,700,496.00 100,000.00 4.2

3 Forfom Prop. 1.5 125,000.00 187,500.00 1,000,000.00 1.5

Morong, Bataan 1 F. De Dios 3 50,000.00 150,000.00 150,000.00 0.4Kaybanban,

Bulacan 21 Veterans Bank 12 300,000.00 3,600,000.00 500,000.00 6

2006 Borac, Palawan 67Felipe Ricafort & Rodolfo

Pebiaco 93.93 60,000.00 5,635,848.00 150,000.00 14

466 14 landho ldin gs 578.9has. PhP52,164,810.00 PHP 332.0 M

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Implications to Rural Poverty and Economy

The 578.9 hectares of acquired land have an aggregate assessed value of PHP 52.1 million.This assessment is made by the Land Bank of the Philippines for the purpose of determiningthe compensation to the landowner and amortization obligations of the recipient ARB. This

means that ARBs have acquired encumbered assets worth PHP 52.1 million and that this hasto be paid before they could assume full control of the land. In principle, however, the ARBshave become new asset owners at an average of 1.24 hectares each valued at PHP 111,802.This also means that each ARB is PHP 111,802 better off than he/she was before agrarianreform.

Land prices, however, are changing and these changes occur most rapidly in urbanizing areaslike most Central Luzon provinces. Using informal land prices (sale or rental across allprovinces) as proxy indicator of real market prices, it is estimated that the real market valueof the 578.9 hectares is PHP 332.0 million (see Table 1, last column). This means that ARBshave acquired assets whose value is more than six times the assessed value or, t heoretically,each would have acquired real property valued at PHP 713,519 per beneficiary. 2

Under the agrarian reform program, asset acquisition is a function of poverty and social justice, i.e. it serves the objective of breaking land monopoly and allowing landless farmersto acquire assets from which they could secure the livelihood of their families. Asset-wise,the ARBs are better off than before although they may still be income poor during theamortization period. However, they can also get rich quickly by uploading their land to theinformal land market and still retain more than half a million each for the family.

The PDI-NMGL experience shows, nevertheless, that ARBs are not easily tempted to give upthe assets they have fought for despite the temptation to do so. Among ARBs, possession of cash is less secure than possession of land. They know that ARBs who have given up theirlands without planning and financial management are now part of the statistics of thehomeless and unemployed in urban areas.

For PDI and NMGL, the new acquisitions signify new challenges in poverty alleviation. Theland-to-ARB ratio is 1.24:1 which means that each ARB family would have to depend on1.24 hectares of agricultural land. In real terms, the current agricultural output value would beless than the speculative non-agricultural value of the land. The imperative, therefore, is toestablish the viability of agriculture in areas where rapid changes in actual land use isexerting pressure on land markets and prices. This means modernizing agriculture technology

in small farms without jeopardizing environmental sustainability. This also means strugglingto promote agro-industrial development in the midst of rapid urbanization and landspeculation.

Implications to Power Distribution

Agrarian reform has a direct influence on the distribution of power in rural areas especially inlocalities where the landed gentry exercise monopoly over local governance authority. Thereform of 14 landholdings signifies transfer of economic authority from 14 landowners to 466

2

At a current market price of PHP 574,365 per hectare x 1.24-hectare average ARB share = PHP 713,519.Conversely, the same value can be derived by dividing P332.5 million among 466 beneficiaries (i.e. PHP 332.5/466 = PHP713,519.

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new small landowners. With property to their names, the new landowners would becomebonafide participants in building the local economy through production and activeparticipation in local governance processes. In addition to the land asset they have acquired,the 466 ARBs would have acquired knowledge and skills in economy building and politicalparticipation through active involvement in the CL-SRDP.

The same experience above can be used as an argument in pushing the DAR to completeremaining LTI balances. In many cases, the DAR has declared such LTI lands asproblematic and in some cases these lands have been deducted from the scope. PDI andNGML, on the contrary, have proven that LTI processes can still proceed even when thesituation is highly contentious and problematic.

Economic Support Services

The Economic Support Services (ESS) component of the CL-SRDP is designed to developPO capacity in enterprise development and business management. Taking root from thegains of agrarian reform, this initiative would have the long-term perspective of capitalgeneration and accumulation to promote agro-industrial development with the activeparticipation of ARBs and other asset holders like IPs and women. Within the CL-SRDP, theimmediate objectives are to scale up viable enterprises in at least three focused crops orcommodities in every province, link producers to markets, develop off-farm and non-farmenterprises, promote value-adding technology and assist producers in product development.

To date, PDI has provided PhP 2.86 million in loans to 39 POs and PHP 150,000.00 as grantto 1 PO. (see Table 2). Seventy percent of the loans were released in 2005 after a methodicalpreparation for the POs to establish basic foundations for their economic projects. PDI

provided a mentoring role in feasibility studies, developing project designs and loanproposals.

Of the 39 POs involved in the ESS projects, one PO, PASAMBOT, was provided a grant of PHP 150,000 to establish a multi-purpose bodega. Overall, PO economic projects aimed tobenefit 3,506 members.

The 11 types of enterprises have been selected either due to their market potential or due tocompelling livelihood needs of the PO and its community. The major enterprise clusterssupported by the ESS (in terms of loan volume) are seaweed production (PHP 598,000),livestock production (PHP 591,750) and pineapple production (PHP 498,000). The next

major items are agro-forestry (PHP 350,000) and palay seed dispersal (PHP 200,000).

Table 2. Starting aid, by cluster of econo mic activity and volume o f loan,(as of June 2006)

Economic Activity Amount of Loan Number ofLoans/Grants

Number ofBeneficiaries

2005 2006 Total

Multi Purpose Bodega 150,000 150,000 1 351Nursery 150,000 150,000 4 1,100

Agro-Forestry 350,000 350,000 4 1,100Forest Trees 100,000 100,000 1 25

Seaweed production 598,000 598,000 6 120Livestock

(goat, carabao, hog)196,750 395,000 591,750 12 323

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Pineapple Production 444,000 54,000 498,000 4 117Honey Production and

Processing30,000 65,000 95,000 3 264

Water Sprinkler 135,000 135,000 1 13Virgin Coconut Oil 87,070 87,070 1 25

Palay seed dispersal 200,000 200,000 2 42Sweet potato production 60,000 60,000 1 26

Total 2,153,750 861,070 3,014,820 40 3506

Of the eleven clusters, five show movement in amortization payments, the highest being41.5% of the honey producers and processors and 33.3% for repayment of the water sprinklerloan. Pineapple production has been found to be very viable financially and economicallyand, in Bulacan, the provincial government has provided additional capital of half a millionpesos to the POs.

Effects on Productivity and Income

Most of the enterprises capitalized by PDI loans are in their early stages of development.While some have completed or even repeated some production cycles with success, there arefinancial constraints affecting their loan repayment performance. Some examples are thefollowing:

PASAMA Sweet Corn Project in Pampanga - PASAMA members areARBs cultivating a section of their newly acquired land for sweet cornproduction. They availed of a PHP 135,000 loan from PDI to irrigate the farmusing a water sprinkler. With this input, production increased to an average15,000 ears of corn (from a previous 10,000 ears) and, correspondingly, grosssales increased to PHP 75,000 (from PHP 38,000 previously). The added

benefit of the project is that the ARBs are now able to harvest twice a year,thus doubling the sales to PHP 150,000 per year. This earns them a net profitof PHP 74,000. They started repaying the loan in December 2005. To date,they have repaid PHP 45,000 or 33 percent of the loan amount. Thisrepayment represents 45 percent of their operating profit for the year. Thethirteen (13) project participants share 25 percent of the operating profit whileanother 5 percent of the profit accrues to the PO. The individual incomesaugment household incomes.

LAKAS Honey Production in Zambales LAKAS is a 130-memberorganization of IPs and is a recipient of a PHP 15,000 loan acquired in June2006. Only 5 members of the organization are directly involved in the project,hence, 5 is the basis for equity distribution and incentive structure. Theproject is about buying and processing raw honey (i.e. bottling). The loan wasused to cover labor costs and buying capital. With the loan, the participantswere able to increase their production from a previous 650 bottles to 1,300bottles with a gross value of PHP 143,000. The cost of acquiring raw honey isPHP 70 per bottle and the selling price (after processing and bottling) is PHP110. Less cost of raw honey and other costs, the operating profit per cycle isPHP 39,400. The income distribution structure indicates that the loan isimmediately deducted from the gross income. The net income is structuredthree ways: 10 percent goes to the Scholarship Fund of the PO, PHP 15,000is retained as revolving capital and the rest is distributed among the fiveparticipants.

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Pineapple Production of PASAMA-Laur, Nueva Ecija Pineapple

production has long been proven to be a high income earning cash crop. InMindanao, big plantations like Dole and Del Monte, export the commodity tointernational markets. In Cavite, rich farming families manage 2-3 hectare

pineapple farms with high return on investments. PASAMA-Laur aimed tointroduce pineapple production in Nueva Ecija. For December 2005-October2006, PASAMA reported that its first cycle sales reached PHP 100,000. Lessproduction cost of PHP 42,200, it earned an operating income of PHP 57,800.Further deducting loan amortization payment of PHP 13,500, the PO earned anet income of PHP 44,300. In November 2005, it took up a PHP 150,000 loanfrom PDI for the enterprise. It takes from 18 to 20 months for the pineapple tomature and ripen so their first harvest is expected sometime in May 2007. Thebeneficiaries plan to divide net profits after expenses and loan repayment bygiving 30% to the peasant organization and dividing 70% among themselves.

Pineapple Production of SAMAKA-SJDM, Bulacan SAMAKA-SJDM isa 32-member Municipal PO. In October 2005, it availed of a PHP 144,000loan from PDI to engage in pineapple production. Lessons learned fromexposure trips in Cavite and application of sloping agriculture land technologyin Bulacan proved beneficial not only to the PO but to the larger community.In fact, the Provincial Government offered half a million in credit assistancefor similar initiatives in the province. SAMAKA-SJDM accounts indicate thatthe capital infusion from PDI enhanced their capacity to provide adequateinputs on the land. Experimenting on a 1.2-hectare area, the PO could make 2croppings on the primary and another 2 croppings on the crowns thus earning

total sales of PHP 388,500. Less production cost of PHP 140,000, the POcould theoretically earn a net income of PHP 248,000. According to itsPresident, the PO would use its net earnings for expansion into four otherbarangays. Harvest from the input planted in October 2005 is expectedsometime in May 2007.

Sweet Potato Production of NASAKA-Kinaragan, Bataan - NASAKA-Kinaragan availed a PHP 60,000 production loan from PDI in May 2006 forsweet potato production in 5 hectares of land involving 15 participants. Theloan would be used to cover production cost. For the period June to October2006, the PO increased its production to 50 sacks per hectare (from 20 sack

previously) or a total of 250 sacks. With good market access, they could selleach sack for PHP 800 thus earning total sales of PHP 400,000 (for 2croppings). Less production cost of PHP 12,000 per hectare (@ 2 croppings =PHP 120,000), the PO earned an operating income of PHP 280,000. The netincome structure is not clear. Records show, however, that PHP 61,800 wasallocated as revolving capital, PHP 1,800 accrued to the PO as share of theorganization and PHP 216,400 accrued to the 15 participants (or a per capitaincome of PHP 14,426).

NASAKA has informed PDI that they will fully pay their loan on February2006.

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A number of issues and lessons can be inferred from the preceding data:

The loans are covered by formal contracts indicating loan maturity and termsof payment. Each contract is differentiated by type of enterprise or agricultural

production. Loans for pineapple production, for example, would have amaturity of 18-20 months representing the total production cycle. While somePOs have structured their revenues to include allocation for loan repayment,others have yet to map this out in their revenue structures. In Palawan, the POspre-allocate loan repayments at 10-15 percent of net revenues.

Agricultural credit is generally considered high risk by formal financialinstitutions. PDI, however, has to respond to agricultural credit needs of ARBsand CADT/CADC holders in view of constraints in securitizing theseownership instruments and generating capital therein. In short, PDItransitionally absorbs the risk with the estimation that the ARBs andCADT/CADC holders or their organizations will be able to accumulateenterprise knowledge and skills as well as capital from where they would be ina better position to access formal credit from government or private financialinstitutions.

The PO assumes the responsibility of fulfilling the loan obligations. While theprojects are actually operated by selected participants, the PO retainssupervisory and managerial authority in the internal distribution of capital anddefinition of the revenue structure. This set up strengthens the PDI-POpartnership in program implementation through NMGL, BUKAL and

PASAMAKA-L.

Trading Capital

Another aspect of Economic Support Services is Trading Capital. Like Starting Aid, it wasdesigned to develop POs capacity in business management but this time focused on tradingenterprises. The trading capital was given in the 2 nd quarter of 2006.

Table 2.1 TRADING CAPITAL, by volumeAs of June 30, 2006

Activity Amount Beneficiary LocationBuy & sell of variouslocal products

PhP 150,000.00 PASAMA Nueva Ecija

Buy & sell of variouslocal products

PhP 500,000.00 NAGSIKAP Zambales

Buy & sell of cashewnuts

PhP 30,000.00 SAMMARU Palawan

Total PhP 680,000.00

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Table 3. Ancestral Domain Lands Transferred to Indigenous Communities

Location Size (in Hectares) Number of BeneficiariesFlorida Blanca, Pampanga 8,218 1,424

Hermosa, Bataan 4,355 700Botolan, Zambales 22,400 1,200Total 34,973 3,324

PDIs intervention in the IP arena takes root from its agrarian reform advocacy where itdiscovered that the DAR had insensitively sought to treat IPs as ARB claimants and not IPswith prior rights to their ancestral domains. The resulting bureaucratic tangle between theNational Commission on Indigenous Peoples (NCIP), the Department of Agrarian Reform(DAR), the Department of Environment and Natural Resources (DENR) and localgovernment units (LGUs) exacerbated bottlenecks in processing ancestral domain claims.

The NCIP is perceived to be one of the weakest national agencies of government in terms of resources and capacities to enforce its mandate. Delays in processing of CADC/CADTapplication are a common occurrence due to lack of field personnel, inadequate surveyingcapacity or pure bureaucratic inefficiency. This is not to mention the fact that NCIP actionsare vulnerable to legal and bureaucratic contestations by the DAR, DENR or LGUs. LGUs,for example, generally resent the reduction of their territories with the issuance of CADC/CADTs that are under the mandate of the NCIP. Similarly, for the DENR,CADT/CADC issuances entail additional processes and procedures in the approval of miningand commercial timber license applications.

Having established its influence at the central level of national line agencies, PDI was able to

unclog the bottlenecks by simultaneously negotiating with the DAR, NCIP and LGUs. Thus,in Zambales where the CADC claim has been sitting at the NCIP since 1997, PDI was able tounclog the processes and influence the grant of ownership within two years.

The above, however, resulted not only from PDIs effective engagement with governmentagencies and reform-minded officials within concerned agencies. Internally, it involvedpainstaking work on fundamental requisites that the IPs were not able to prepare for lack of attention from the NCIP. PDI staff had to go strengthen the IP claims by establishingrequirements such as genealogies and technical specifications of the lands being claimed (e.g.land survey and maps) as well as preparing the IP organizations to assume ownership of theirdomains. The same also indicates the versatility of PDI staff in responding to community

needs.

Implications

The recognition of 34,973 hectares as ancestral domain land is momentous for the Aetas of Zambales, Pampanga and Bataan. After years of divestment (e.g. the utilization of theirancestral domains as U.S. Military Bases in Clark and Subic), marginalization anddeprivation and displacement (due to the Mt. Pinatubo eruption), they have re-acquiredcontrol and ownership of their ancestral domains. The same is also momentous for the factthat most ancestral domains in the country are now at risk due to the Supreme Courtsaffirmation of the constitutionality of the Mining Act of 1995 in December 2004.

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It must be recalled that in January 2004, the Supreme Court declared that some provisions of the Mining Act and its implementing rules and regulations (IRR) were unconstitutional.However, the year 2004 was when the Gloria Macapagal-Arroyo (GMA) governmentpromoted mining as a new major arena for inducing foreign investments. In January 2004,GMA signed Executive Order 270, otherwise known as the National Policy Agenda on

Revitalizing Mining in the Philippines. This formed the basis of the formulation of theMineral Action Plan that practically opens up 70 percent of national territory for mininginvestments.

The Mineral Action Plan also shows how the government is willing to sacrifice the interestsand rights of IPs over their ancestral domains. In a discourse with foreign investors, the plansuggests that the government is willing to reduce NCIP certification processes by 27 percentand to hasten the issuance of Environment Clearance Certificate (ECC) to 120 days if only toinduce foreigners to invest in mining.

The threat to IP ancestral domains is not only mining. In fact, they are already reeling fromextreme natural resource degradation. According to the DENR, 97 percent of the countrysforests has been logged for timber and that only 18 percent of national territory has forestcover. As of 2001, only 1 million hectares (of the countrys 30 million hectares) is coveredwith primary forests.

PDIs unprecedented success in ancestral domain advocacy in Central Luzon has occurredunder extreme adversity both at the level of policy changes at the national level and at theoperational level where PDI has to deal with bureaucratic barriers posed by localgovernments and the NCIP.

The sudden expansion of acquired assets (578.9 hectares of private agricultural lands and34,973 hectares of ancestral domain lands) also has immediate effects on the resourcesavailable for the CL-SRDP and the future trajectory of PDIs presence in Central Luzon.While it is already difficult enough for ARBs to defend their newly acquired lands, includingprime agricultural lands due to lack of government support and adverse conditions affectingagriculture, it is much more difficult for IP communities to develop and defend largeterritories. While the private agricultural lands have land-to-man ratio of 1.24 hectares perARB, ancestral domains have a land-to-man ratio of more than 10 hectares to every person.

During the evaluation workshop at Angels Hills, the following issues were raised concerningthis matter:

Central Luzon has an increasing population with decreasing farm sizes due toscarcity of land. Local governments and national line agencies tend tomainstream IP individuals and communities into the prevailing social andpolitical settings so that ancestral domain lands can be made accessible to thelarger public.

There is continuing conflict between the NCIP and the LGUs over mandatepertaining to area and population management in the uplands bordering LGUterritories. This is exacerbated by the fact that the NCIP is a line agency withno ability to provide basic social services and security in its mandated areas of

supervision.

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PDI has been instrumental in the transfer of 34,973 hectares of land to IPcommunities but it does not have the resources to cover land developmentcosts and livelihood needs of these communities. This resource constraint willbe more highlighted in Zambales where ancestral domain lands have beenaffected by lahar (due to the Mt. Pinatubo eruption).

Even before the issuance of the CADT or CADC to the IP communities, therehave been incursions into ancestral domain lands. Some incursions areinduced by private investors with the consent of LGUs. Others are due todemographic pressure on the uplands resulting from scarcity of agriculturallands. CADC and CADT holders require assistance in delineating anddefending their property.

Overall, PDI may need to look into possible adjustments of the remaining years of CL-SRDPin order to accommodate the resource needs of ancestral domain lands and IP communities.Certainly, it has to consider long term implications of IP and ancestral domain advocacy toits traditional image, reputation and competence at a time of major shifts in strategies fromthe READ Programme to the CL-SRDP and thereafter.

Local Governance and People Empowerment

During the 2003 evaluation, it was noted that PDI had been able to help establish 59 POsconsisting of 2,501 members where women constituted 20 percent. During the past two yearsof CL-SRDP implementation, PDI and NMGL were able to establish 103 new village-basedorganizations with a membership base of 9,689 individuals (see Table 4). In contrast to themale-dominated POs in 2003, the new POs consist of 53.2 percent women. Thus,

quantitatively, women have increased their political participation and achieved adequaterepresentation in community organizations.

The main track for empowering communities is the creation of strong autonomous POs thatare able to take on sectoral and wider community concerns with government throughbargaining and negotiations and direct penetration of local government bodies. As shown inTable 5 and 6, the formerly-considered weak and marginalized ARBs, IPs and women, arenow potently organized and capacitated to claim and exercise their right to be heard and toinfluence local government processes and decisions.

The above indicates the potency of community organizing and PO building in empowering

weak and marginalized sectors. Likewise, it indicates that capacitated POs can engage, claimand broaden space for political participation by employing their political muscle andsharpness in advocacy and resource mobilization.

Table 4. PDI-NMGL PO Building, November 2004-November 2006

Province Number of POs Level/Scope MembersMen Women Youth Total

Pampanga 6 Barangay Level 62 93 0 155Tarlac 7 Barangay Level 24 177 0 201Aurora 9 Barangay Level 118 248 39 405Bataan 12 Barangay Level 580 387 54 1,021Bulacan 9 Municipal Level 197 228 0 425

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Nueva Ecija 23 Barangay Level 110 364 0 474Zambales 29 1 Municipal, 28

Barangay Level1,021 986 0 2,007

Palawan 8 1 Municipal, 7Barangay

2,227 2,681 93 5,001

Total 103 2 Municipal, 101

Barangay

4,339

(44.7%)

5,164

(53.2%)

186

(1.9%)

9,689

Penetration of Local Government Bodies

The continuous expansion of community-level POs has increased the capacity of the PDI-NMGL alliance to strengthen local governance participation by penetrating local bodies.While organizational activities and mobilizations generally get the attention of localauthorities and the general public, they become more effective when POs also activelypenetrate government bodies and other governance mechanisms. As shown in Table 5, 89PO leaders and members have penetrated various bodies of barangay local governments andtwo others sit as sectoral representatives at the municipal or city level.

Table 5. Local Government Representation, by Province

ProvinceLocal Representatives/Officers

Barangay Level Municipal LevelZambales 3 Chieftains

6 Councilors

4 Brgy. Health Workers2 HR Committee Officers1 BARC

Bataaan 17 Chieftains2 Brgy. Health Workers4 Councilors

Pampanga 3 Brgy. Captains1 Brgy. Secretary2 BARC

1 Farmers SectoralRepresentative

Bulacan 5 BARC 1 Farmers SectoralRepresentative inChartered City

Palawan 5 Councilors

4 Brgy. Health Workers2 Brgy. Captains3 Chieftains2 Treasurer

Tarlac 1 Brgy. Councilor1 Daycare President1 BARC

Nueva Ecija 4 Councilors2 Social Workers5 Brg. Health Workers1 Brgy. Secretary2 BARC1 Daycare worker

Aurora 3 Chieftains1 Brgy. Health Worker1 Councilor

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Total 89 2

Engagements and Resource Generation

People participation in local governance has been brought to a new level. On top of or inconjunction with mass mobilizations, dialogues and consultations and other forms of actionas non-state actors, the POs are able to deploy capable leaders and members to directlyparticipate in decision-making processes of local bodies. These actions tend to produce aconvergence of pressure from within and from the outside thus hastening local governmentresponse to issues.

Table 6. Resources Generated by POs in 2004-2006, by province,

Province Value of Resources

(In PHP)Main bulk of resources

Bulacan 1,848,000.00 Water impounding, barangay road

Zambales 7,461,000.00 Bridge, farm-to-market road, schoolbuilding

Aurora 264,000.00 Non-formal education (supplies, learningcenter)

Tarlac 214,000.00 School building, daycare center, sewerage

Palawan 465,000.00 Education, literacy

Bataan 3,129,200.00 Road, school building

Nueva Ecija 8,050,000.00 Irrigation, farm-to-market road

Total 21,431,200.00

PO reports indicate positive results. In three years time, the POs succeeded in leveraging theirstrength and capabilities to mobilize PHP 21.4 million worth of local government resourcesfor rural development needs (see Table 6). The level and intensity of engagements and valueof resources generated vary from province to province.

Bulacan The major arena for engagement is the city government of San Jose

del Monte. During the last three years (2004-2006) SAMAKA was able togenerate PHP 1.84 million worth of resources from the city governmentthrough the City Development Council and the City Agriculture Office. Theseresources include PHP 800,000 for a barangay road that benefited 400families, a PHP 1 million water impounding project that benefit 150 familiesand a PHP 48,000 capital assistance for the production of Red Lady papaya.

Zambales The POs in Zambales engaged government at various levels,from local government units to national government offices including theOffice of the President. LAKAS, SAMATT-K, SAMATT-K Narra and IPcommunities in Pasambot, Botolan and San Juan were able to mobilize PHP

7.46 million worth of government and private sector assistance from 2004 to2006. The biggest chunk was a PHP 5 million bridge lobbied by LAKAS withthe Office of the President and that currently benefits 200 families. The next

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biggest chunk was a PHP 1 million farm-to-market road lobbied for bySAMATT-K in Narra. This road currently benefits 106 families. The restconsists of various assistance such as: a PHP 300,000 day care center inBotolan that benefits 200 learners; a PHP 600,000 school building donatedby a private citizen and that currently benefits 200 students; a PHP 175,000

community lighting system that benefits 200 families in LAKAS settlementarea; a PHP 120,000 water project that benefits agricultural areas of 100families in Pasambot; and various other forms of assistance that benefitedchildren (e.g. feeding program), NFE learners (e.g. honorarium forfacilitators, books), poor families (e.g. medicines) and community leaders(e.g. trainings).

Aurora In Aurora, the focus of engagement was the municipal LGU of Dingalan, the provincial capital. In 2004-2006, the POs were able to generatePHP 264,000 worth of resources mainly for their NFE projects. These consistof a community learning center (a PHP 90,000 building), school supplies for150 learners (PHP 54,000), contracting scheme for literacy skills benefiting11 barangays (PHP 50,000) and a PHP 70,000 Alternative Learning System(ALS) program.

Tarlac In Tarlac, the main arena of engagement was the municipalgovernment of Sta. Barbara. However, PO engagements included targets suchas the Philippine National Railways (PNR) and TESDA. In 2004-2006, thePOs were able to generate PHP 214,000 worth of resources. The biggest chunk of assistance generated was a PHP 100,000 school building donated by thePNR. This building benefits 761 pupils. The rests consisted of the following:

a PHP 55,000 day care center for 100 learners, a PHP 20,000, 20-metersewerage system for 35 families, TESDA vocational courses (PHP 34,000)benefiting 285 trainees and a PHP 5,000 solid waste management project thatbenefit 500 families.

Bataan The POs in Bataan engaged various actors at various levels togenerate additional resources for the communities. These engagementsincluded lobby, dialogue and consultations with the DAR, Catholic Churchhierarchy, the provincial government and the municipal governments of Limay, Orion, Bagac and Morong. In 2004-2006, these engagements producedPHP 3.12 million worth of resources. The biggest chunk was a PHP 2 million

farm-to-market road project of the DAR/ARCDP II in Orion, Morong andBagac. The others consist of the following: a PHP 800,000 school building inLimay, a PHP 328,000 education assistance from the Catholic Church and aPHP 1,200 local government assistance for ALS in Morong.

Nueva Ecija - In Nueva Ecija, the main engagements were direct at nationalline agencies like the DAR and the Department of Labor and Employment(DOLE). The total amount of resources generated during the period was PHP8.05 million. The biggest chunks were a PHP 5 million farm-to-market roadproject and PHP 3 million irrigation canal project from the DAR which benefitaround 80 families in Pantoc, San Isidro and Casareal and a PHP 50,000financial assistance from the DOLE which benefits 25 women members of alocal cooperative in Gabaldon.

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Mobilizations

Collective action such as specific type of mobilizations like protest rallies, marches, picketsand barricades are a powerful form of engagement with the state, whether at the national or

local level. From January 2004 to June 2006, PDI, NMGL and BUKAL conducted 28mobilizations. Eleven mobilizations were conducted in 2004 (or almost once a month) wherewomen constituted 39.2 percent of participants. Six mobilizations were conducted in 2005where women participation declined to 29.2 percent. The year 2006 was most intense with 11mobilizations in 6 months up to June. This meant an average of two (2) actions per month.During this year, women participation increased to 37.9 percent. Overall, women wouldconstitute at least 34 percent of participants in the mobilizations.More than 90 percent of mobilizations were related to agrarian reform advocacy and wereconducted mostly at the national level in conjunction with other NGOs and POs. Theoutcomes can be seen in LTI successes in private agricultural lands despite barriers andlandlord resistance. By the middle of 2005 until 2006, some mobilizations took upcompelling national policy issues and concerns such as the legitimacy of the GloriaMacapagal-Arroyo administration, human rights violations, electoral reforms and others.These are reflective not only of the PDI, NMGL and partner POs solidarity with civil societyadvocacy on social justice and good governance but also of the POs higher level of awareness on national concerns and issues.

Table 8. Mobilizations and Level of PO Participation, 2004-2006

Date Participants TotalMen Women Youth

200423 January 60 30 6 9626-27 January 162 63 0 22526 February 42 515 9 6623 March 42 15 9 6625 April 42 15 9 6610 June 249 105 12 36610 June 612 243 81 93616 June 24 18 6 4815 October 99 54 9 16225 October 252 152 30 43427 October 636 372 46 1,054

Total Mobilization 11 11 11 11Level of Participation 55.5 % 39.2% 5.2%

200501 February 108 63 0 1719 June 21 15 0 3610 June 1,008 393 81 1,48211 June 252 105 12 36913 July 496 218 8 72220 October 189 102 0 291Total 6 6 6 6Level of Participation 67.6% 29.2% 3.1%

200630 January 144 84 12 24023 February 56 20 0 7625 February 228 144 12 382

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25 April 108 84 0 19226 April 40 16 0 5628 April 112 92 12 21601 May 224 136 0 3605-6 May 20 20 0 402-15 June 4 0 0 410 June 4 0 0 419 June 32 16 0 48Total Mobilizations 11 11 11 11Level of Participation 60.6% 37.9% 1.3%

SummaryLevel of Participation 62.4% 34.0% 3.5%

The intensity and quality of the mobilizations are also influential in instigating governmentresponse to the development needs of communities. Although it needs further research toanalyze the direct relationship between mobilizations and state action, it may be inferred that

the above mobilizations have contributed to the pace of land transfers in private agriculturallands and ancestral domain areas.

Developing Rural Human Resources through Education

PDIs education support services address not only the education and literacy dimensions of poverty but also the knowledge and skills requirements of community institution building.Thus, education support is approached through a multi-pronged delivery system that includesNFE, college scholarships, barefoot managers training and youth organizing. This is also acomponent of the CL-SRDP where PDI is able to exercise more leverage by mobilizing otherexternal sources of funds such as the Angping Development Foundation for Education(ADFE),

Non-Formal Education

In 2004-2006, PDI mobilized EED resources and leveraged resources from ADFE, SSF, ESPto bargain with local government units and the Department of Education in order to broadenand mainstream PDIs alternative education system. The results have been mutuallybeneficial and enabled multilateral exchanges of resources, knowledge and skills.

The main beneficiaries of the program are the indigenous communities of Zambales, Palawan

and Aurora. These are communities who have been left out in the formal education system orwho have been marginalized due to social discrimination and deprivation of access to basicsocial services.

During the last three years, PDI and its partner POs in Palawan, Bataan, Zambales andAurora 3 engaged local governments and the Department of Education to implement NFEactivities for the Aeta, Tagbanua and Dumagat IP communities. A total of 751 (Level 1-5)learners have graduated during the 2004-2005 period. In 2004, more than 80 percent of the368 learners were Tagbanuas from Palawan and Aetas from Bataan. In 2005, the Tagbanuasof Palawan still constituted the main bulk of 383 learners for the year. However, Aurorabegan NFE activities during the year with a sizable 112 learners. Currently, there are 537

learners in the four provinces covered by the NFE program.

3In Aurora, the NFE started only in 2005.

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Table 9. Number of NFE Learners, 2004-2006

Location Ethnic Group NFE Partner Number of Learners

2004 2005 2006Palawan Tagbanua LocalGovernment

Unit of Coron,Department of

Education,Coron District

184 231 349

Bataan Aeta LocalGovernment

Unit of Morong,

Department of Education,

MorongDistrict

124 35 16

Zambales Aeta LocalGovernment

Unit of Botolan,

Department of Education,

BotolanDistrict

60 35 48

Aurora Dumagat LocalGovernment

Unit of

Dingalan,Department of

Education,DingalanDistrict

NFE in 2005112 124

Total 368 413 537

It is not yet possible to explore new dimensions of the impact of NFE on poverty and ruraldevelopment. The 2003 evaluation of the READ Programme had already established positiveimpacts on individual enrollees and their communities particularly on the aspect of self-esteem and confidence, ability to relate with people from other social or ethnic groups,ability to negotiate and greater sense of power by also knowing what others know.

Certainly the NFE responds to the same compelling problem of marginalization of IPcommunities where education forms part of lost opportunities. Their right to education hastaken a new light with the acquisition of ancestral domain rights that require adequateknowledge and skills in protecting and developing vast tracks of the uplands. NFE hasbecome more relevant at the current stage IP communities need to develop, protect andstrengthen ownership of their ancestral domains.

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College Scholarships

PDI continues to provide higher education opportunities for deserving rural youth especially

those with potential for thickening the second line leadership of the POs, those who cancontribute to asset development in both agrarian reform and ancestral domain arenas andthose who have their communities at heart. The mechanisms for selection have beenestablished allowing adequate requisites for fairness and competitiveness.

It must be noted that the college scholarship program of PDI started as early as 1995. Tenyears thereafter, 62 young people, who would have otherwise fallen from the educationladder and would have been forced to accept limited, if not undesirable, options in labormarkets, have been graduated from college. Another 15 scholars graduated from college inMarch 2006.This brings the total number of graduates to 77 which also means that at least77 families have alleviated their poverty by acquiring a college educated son or daughter andby having liberated some income to support the education needs of the younger siblings. Thisnumber excludes upcoming graduates. Currently, there are 37 grantees of which almost 70percent are females.

The scholarship grants have a straightforward objective of providing opportunities for poorbut deserving youth to acquire college education. Graduated grantees are living proof of theattainment of the objectives. Not only household needs have been alleviated. The graduateshave emerged as a stronger generation of human resources in rural areas due to their acquiredknowledge and skills, maturity and ability to discern the world around them with greaterconfidence.

Empowering Women

In 2003, women participation in NMGL and affiliated POs was only 20 percent. In 2004-2006, women already constitute 53.2 percent of the 9,689 members of 103 new POs inCentral Luzon and Palawan. This change is a reflection not only of active womenparticipation in traditionally male-dominated POs but also of the emergence of women-ledorganizations. The same is coherent with women participation in the political affairs of thecommunity and government. Table 10 shows the significant participation of women (at 34%)in local government bodies. Most certainly, women predominate the health sector. It is alsoimportant to note that in critical local executive functions (such as the position of barangay

captain or barangay council), women occupy 30 to 50 percent of positions penetrated by POs.Women also dominate administrative, financial and social welfare functions of local bodies.By tradition, however, the position of chieftain of indigenous communities remains thedomain of men.

Table 10. PO penetration of local bodies, by gender, by function (as of 2004-2006)

Local Positions No. Of Officers Women MenBrgy. Councilors 21 7 14

Brgy. Chieftain 28 28Brgy. Captains 5 5Bgry. Health Workers 14 14

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Sectoral Representatives 2 2CommitteeOfficers 2 2Brgy. Treasurer 2 2Brgy. Secretary 2 2Social Workers 2 2Daycare Worker 1 1Daycare Officer 1 1BARC 11 11Number of Local Officers andRepresentatives at the LocalGovernment Units

91 31(34%)

60(66%)

The general level of women participation in local bodies in Central Luzon and Palawan ishighly significant given the generally low level of women participation in political affairs atthe national level. A USAID study in 2004 shows that women representation in the PhilippineSenate is only 14 percent, 18 percent at the House of Representat ives, 17 percent in the city

and municipal councils and 17 percent in the provincial councils.4

A survey by the NationalStatistics Office (NSO) in 2002 also indicates that women constitute only 16 percent of persons working as officers of government and special interest groups and as corporateexecutives. In PDI and PASAMAKA-Ls recent experience, women have attained asignificant participation rate of 34 percent, which is almost twice prevailing rate acrossseveral levels.

Women-led organizations are also fast-emerging. To date there are 29 women POs of which3 are provincial federations, 16 are municipal federations and 10 are village levelorganizations (see Table 10). The largest concentration of women PO members are in NuevaEcija (368 members) and Zambales (268 members) followed by Tarlac (159) and Palawan

(150). Provincial level engagements by women POs are concentrated in Zambales,Pampanga and Nueva Ecija because these are where provincial federations are located.However, municipal level engagements tend to be more intense as shown by the level of resources generated from municipal governments.

Table 11. Womens POs, as of November 2006.

Location Number of POs Coverage Members

Pampanga 3 POs1 provincial, 2municipal 93

Aurora 1 PO Municipal 109

Bataan 5 POs1 municipal, 4barangay 90

Bulacan 4 POs 4 municipal 111

Nueva Ecija 4 POs1 provincial, 3municipal 368

Palawan 1 PO Municipal 150

Tarlac 7 POs1 municipal, 6barangay 159

Zambales 4 POs1 provincial, 3municipal 268

Total 293 provincial, 16

municipal, 10 1,348

4Sobritchea, C. Gender Assessment of USAID/Philippines: Strategy for 2005-2009. USAID, May 2004.

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barangay

PASAMAKA-L, the regional women PO representing women organizations in Central Luzonis now a bona fide PO partner and political pole, co-equal with the predominantly male POs

partnering with PDI in the implementation of CL-SRDP.

Capacity Building and Leadership Formation

The Central Luzon and Palawan leaders of POs, community volunteers and activists andsecond liners of PO leaders are a product of multiple inputs from PDI and its allies andspecialized associates. This includes the Barefoot Managers Course which forms part of thewhole gamut of capacity building inputs that combine training workshops and seminars onorganizational development, human resource management, health, education livelihoods,

gender, justice and rights and other developmental learning necessary for improving thecapacity of organizational and community leaders. These inputs are necessary to ensure thesustainability of agrarian and rural development institutions emerging, first from the READProgramme and then from the current CL-SRDP.

In 2004-2006, PDI conducted 136 training sessions involving a total of 3,175 participants.Nine percent of the sessions were conducted on site or at the community level. Around 10percent, consisting of highly specialized trainings, were conducted at the national level.

The trainings benefit not only the PO leaders and members but PDI staff as well. Goingthrough the same training sessions with the POs allow PDI staff to better understand the level

of knowledge, skills and awareness of their PO partners. Some specialized trainings wouldalso improve the capacity of PDI staff in replication of training activities, research and policyadvocacy, information management and education.

The localization of training activities enables wider and substantive participation from POand community leaders. In the course of undertaking the activities, first line PO leaders seizethe opportunity of mentoring second liners. Currently, there are 37 first line leaders of NMGL, BUKAL and PASAMAKA-L of whom 43 percent are women. Most would haveundergone 8-12 types of training under PDI.

Following the first liners are 43 second liners from eight provinces of whom 49 percent arewomen. It is to be noted that the gender balance has improved among second liners. Thisindicates that new women leaders are emerging from the same communities. It also needs tobe noted that in terms of numbers, Zambales forms the single biggest critical mass of firstand second liners contributing 21 percent and 27 percent respectively. Among first lineleaders, the next biggest contributors would be Bulacan (8) and Nueva Ecija (7). Amongsecond liners, the biggest contributors would be Zambales (12), Nueva Ecija (7) and Bataan(6).

Empowering the Youth

PDI has established 11 rural and tribal youth organizations in small communities in Luzonand Palawan, all at the barangay level. Targeting 376 youth leaders, PDIs efforts are focused

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on increasing social awareness, developing knowledge of their true selves and imparting theskills needed to initiate development activities.

PDI positions the youth as facilitators and initiators of development activities in thecommunities. Youth involvement has been noted on local advocacies and national

mobilizations. They have participated in 16 mass mobilizations from 2004 to 2006.

Table 12: Youth Organizing and Capability Building Accomplishment for the Period 2004 2006

Province Organization Membership ActivitiesMale Female Total

Bataan Samahan ngKabataan sa

KInaragan tungo saKaunlaran (SKKK)

SamahangPangkabataan

11

10

6

8

17

18

Youth Orientation andDevelopment

Basic Leadership Training NuevaEcija

San Joseph YouthOrganization

ScholarshipGrantees Association

12

3

17

5

29

8

Social AwarenessSeminar

Ten Steps in CommunityOrganizing

Palawan Samahan ngKabataan ng SitioMarupo

16 11 27 In-Depth and ContinuingEducation and Training(popular education forthe youth)

Aurora SangguniangKabataan Federation

NagkakaisangSamahan ngKabataan sa Matawe

Bangon Kabataan

Batch 2007 ReviewersAssociation

47

9

18

17

49

20

12

18

96

29

30

35

Values FormationSeminar

PracticumField-level-hands-onskills process for youthleaders for futurecommunity organizing

Facilitate meetings /assist communityactivities / consultation

Involvement with LGU Agro Forestry plantingand General cleaning inthe community

Zambales KnowledgeableEmpowered Youth(KEY)

LAKAS Kabataan

3

46

10

28

13

74

Hold assessment cum-reflection of the activitiesconducted

Participation in themobilization at the

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Regional and Nat'l Levelregarding govt advocacypolicy issues

Total 192 184 376

Conclusions

CL-SRDP Relevance

The CL-SRDP responds to the changing environment in Central Luzon and Palawan and the challenges presented by substantial assets now in the hands of the rural poor and indigenous communities.

Central Luzon remains a complex political and economic arena where external environmentchanges do not provide adequate opportunities and guarantees for the survival of the poor.The CL-SRDP is a continuity program that offers to pursue social justice and rights of the

farmers, farm workers, indigenous peoples, youth and women. Rapid macro economicdevelopments are changing the face of Central Luzon inclusive of changes in land usepatterns, land prices and taxation that tend to create disincentive for agricultural investmentsand development.

The CL-SRDP provides an opportunity for the rural poor to secure their future within thischanging environment with the twin steps of acquiring assets that are due to them andprotecting these assets (not only for their families but also for the national interest) throughcapacity building for the ARB organizations and capital infusion in agricultural productionand enterprise activities. The SRDPs long term proposition is for the rural poor to contributeto the resuscitation and development of the countrys agro-industrial base and arrest the

dangerous trend of developing a national economy that is getting dependent on services andconsumption.

A number of compelling problems and needs that the CL-SRDP responds to are thefollowing:

Relevance to the Youth - The sustained out-migration of skilled andeducated Filipino workers may have cushioned national economic difficultiesby infusing around USD 10-12 billion per year but not without serious socialcosts to families and communities and strategic economic costs due to thedrain in skilled human resources. In a meaningful way, PDI and NMGL aimsto fill some gaps and arrest human resource drain in areas where neededthrough NFE, barefoot managers training and scholarships. The combinedeffect of these initiatives is an opportunity to arrest further degeneration of skilled and knowledgeable human resources in rural areas and ensure thatnewly acquired assets are protected and developed.

Relevance to Women - In gender relations, women continue to suffer fromdifferential access to resources, inequitable arrangements in gender roleswithin the family and community and lack of space for participation incommunity organizations and local governance mechanisms. PDI andNMGL continue to provide opportunities for changing the gender equation:on the one hand, by promoting gender mainstreaming at the household,organization and community level and, on the other, by empowering women

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and their organizations so that they can claim their rights and space. The latteris very much evidenced by the increasing participation of women inmobilizations and in leading bodies of organizations at a participate ratehigher than the national average across several levels.

Relevance to Indigenous Peoples - IP communities in Central Luzon andPalawan have not only suffered from social discrimination and exclusionsfrom basic social services but, more significantly, they have suffered fromdisplacement either due to natural disasters (such as the eruption of Mt.Pinatubo), political conflict, demographic pressure from the lowlands andstate policy (such as the establishment of the U.S. military bases at Clark andSubic). An opportunity to reclaim their rights occurred during the enactmentof the IPRA in 1998. PDI and NMGL have actively supported their ancestraldomain claims backed up by education support programs to thicken theircapacity for survival and livelihoods. As of 2006, the CL-SRDP has deliveredon the fulfillment of their hopes by helping acquire 34,973 hectares of ancestral domain lands.

Relevance to Beneficiaries of Agrarian Reform : experience in rapidly-urbanizing areas shows that the rural poor, even those with assets, often losein the ensuing market exchanges. In southern Luzon, especially theCALABARZON, many farmers who are former ARBs, have been divested of their assets where the entitlements were not enough to secure their future inthe new market environment. In Central Luzon, the temptation is there. Landprices are speculative and run as high as six times the assessed values to bepaid for by the ARBs. The CL-SRDP offers opportunities by which ARBs are

able to hold on to their lands as foundation for negotiating changes in thequality of their lives and promotion of agro-industrial development.

New Imperatives The acquisition of lands under agrarian reform and IPRAalso brings up new imperatives and challenges. This requires post- CL-SRDPscenario building while building on from the current achievements of the CL-SRDP. Among the key imperatives are the following: (a) modernization of agriculture in high-priced agricultural lands while ensuring environmentalsustainability; (b) promotion of agro-industrial development amidst rapidurbanization and land speculation; and, (c) development and protection of ancestral domain lands amidst environmental degradation, problems of

delineation and incursions and lack of ancestral domain oriented supportservices from government. It must also be noted that in 2004, the governmentlaunched a National Mineral Action Plan in line with the Supreme Courtsupholding of the constitutionality of the Mining Act of 1995. The mineralaction plan outlines the government agenda of promoting mining as a majorsource of foreign investments and revenues.

Consistency in Good Governance Advocacy amidst Changing PoliticalEnvironments The behavior of local governments with whom PDI andNMGL work with are influenced by national political settings and directions.There have been questions on the legitimacy of the GMA administration,nationwide outcry on the way constitutional change is being proposed andtheres an upcoming national elections in 2007. All these scenarios influence

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local government behavior. The CL-SRDP offers terms of engagement thatcan withstand political turnovers. This is evidenced by the ability of the POsto influence local government policies and budgets.

New Economic Settings - The governments 2006-2010 Medium TermPhilippine Development Plan (MTPDP) outlines new economic thrusts suchas agribusiness, mining and other capital intensive and employment-orientedagricultural investments. The MTPDP calls for the creation of 10 million

jobs in 5 years (i.e. 2 million jobs per year). One major strategy for jobcreation is agribusiness for which 2 million hectares is being targeted fordevelopment (or 1 job per hectare). Another major strategy is thedevelopment of 9 million hectares of mineral lands (30 percent of total landarea) that is expected to induce USD 4-6 billion in foreign inve stments, USD5-7 billion in foreign exchange earnings and 210,000 new jobs. 5 Coupledwith rising urbanization, land speculation and changing land use patterns,these economic settings will have an adverse impact on the agricultureinitiatives of ARBS.

Efficiency

Program delivery is relatively efficient with indirect costs maintained at around 30 percent of total project cost.

As of June 2006, the program spent PHP 32.23 million of which PHP 21.27 million was usedto cover direct program costs and PHP 10.24 million to cover indirect costs (such as

personnel and administration). PDI has followed the budget lines as agreed in its fundingcontract with EED and has maintained indirect costing to 30 percent of total costs. If thePHP 21.4 million leveraged resources were taken into account, PDIs efficiency ratio wouldrise with the delivery cost reduced to around 5 percent of total cost.

Effectiveness

The program is highly effective in terms of costs and benefits. At PHP 32.23 million spent up to June 2006, the program has delivered to ARBs PHP 332.0 million worth of private agricultural lands (at present market value) and 34,973 hectares of ancestral domain lands to 3,324 indigenous peoples. In addition, the POs in various provinces were able to generate PHP 21.4 million of resources that reinforced development resources available to the poor. Overall, this meant that every peso spent by the program produced more than ten pesos in benefits to the target groups.

Although many other benefits of the program would be difficult to quantify as their effectsand impacts would spill over to households and communities on a wide scale at a longer time,the most tangible benefit are the assets acquired. During the period under review, PDI and itspartner POs were able to effect the transfer of 578.9 hectares of prime agricultural lands to466 beneficiaries. The assessed value of these lands amount to PHP 52.1 million but theirreal market value is around PHP 332.0 million.

5MTDP 2004-2006.

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The program has also thickened by the rural poors ownership of the development effort ascan be shown by their active participation in the POs, mobilizations and campaigns and in thetraining activities. The convergence of newly acquired assets, knowledge, skills andorganization place the rural a step forward in poverty alleviation, rural democratization anddevelopment.

Interim Impacts

The major impacts of the program are not yet tractable. Most may be inferred but the actualimpact would depend on the convergence of factors in the coming years. Based on existingdata and other narrative accounts, the following major impacts can be gleaned:

Policy and behavior changes at the LGU level . This is evidenced by landuse policy settings protecting agricultural areas (such as those in Bulacan andPampanga) and budget allocation for the development needs of communities

(evidenced by the PHP 21.4 million resources generated by the POs).

Continuing democratization of access and control of resources . Despite theslow down in CARP and IPRA processes in other areas of the country, CL-SRDP continues to show significant movement in asset transfers such as the34,973 hectares of ancestral domain lands and 578.9 hectares of primeagricultural lands worth PHP 332.0 million.

The programs impact on poverty cannot, as yet, be measured. It needs several proxyindicators to accurately measure impact. Although there are specific accounts of agriculturalincome changes in pilot economic enterprises, these farm incomes are still emerging and havenot yet radically changed the level of household incomes.

There is certainly a major impact on education and literacy. However, there is a need to use amore focused instrument in measuring the impact on education and monitoring the behaviorand trajectories of the beneficiaries of the scholarship program and the NFE.

Imperatives for Moving On

Data indicates that PDI, NMGL, BUKAL and PASAMAKA-L need to tackle the new andemerging needs and demands resulting from the growth of POs, widening of beneficiaryoutreach and expansion of LTI gains (both under CARP and IPRA). Based on the strategicplan, PDI is on track with the continuity program while optimizing program resources toseize new opportunities and cover costs of expansion.

NMGL, BUKAL and PASAMAKA-L are currently faced with rapid expansion of POs. Onthe other hand, equity build up is relatively slow due to poverty of the members and theeconomic initiatives are still in the early stages of development. Success areas need to bestabilized before they can re-channel financial gains to support the political role of the POs.NMGL and other PO federations have yet to develop their managerial bureaucracies that willfocus on internal housekeeping and resource development. They need to give more push onequity development (e.g. from membership fees, annual dues, resource mobilization) from

where they can develop their financial management capacity.

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Given the accumulation of knowledge and skills among the first and second line leaders, itmight be possible to gradually transfer devolve management of some components of theprogram to NMGL or even to BUKAL and PASAMAKA-L.

On the other hand, PDI needs to look into three major imperatives that will influence its

future plans for Central Luzon:

The rapid increase in ancestral domain areas in the hands of IPs (now atclose to 35 thousand hectares). While the acquisition is a success, the samebrings in new challenges and demands primarily, the need to assist IPcommunities in protecting and developing their ancestral domains not only inthe context of their prior ownership of these lands but also of the larger societystake on these lands for ecological balance, biodiversity and protection of watersheds.

Agro-industrial development in rapidly urbanizing territories . As shownby the speculative value of ARB lands, there is a stronger challenge to provethat agriculture would remain viable under the changing market environments.This should lead PDI to put forward a clear road map for the future agro-industrial scenario of Central Luzon.

The need to sustain PO participation in local governance and expandpenetration of local bodies. The year 2007 is an election year that willsimultaneously offer risks and opportunities for local governmentparticipation. PDI, NMGL and other partner POs need to secure the space theyhave already carved while aiming to expand such through appropriate

engagements during the electoral exercise. This imperative includes specialattention to women empowerment that should take off from current successesin improving the gender balance in local bodies.

Recommendations

Immediate Term (Within CL-SRDP)

1. Direction Sustain the continuity track as laid out in the strategic plan but

give serious attention to new imperatives especially on ancestral domains,agro-industrial development and local governance with specific attention towomen empowerment. The new imperatives should induce acquisition of newHR expertise and accompanying resources. Also, entertain the possibility of elevating the IP/Ancestral Domain agenda into a full-pledged program withseparate funding or through a co-financing arrangement with EED and otherdonors.

2. Resources - Funds available for the ESS component are barely sufficient tosupport pilot projects and produce models or best practices. Overall, capitalinputs cover only a small portion of the total acquired ARB lands andancestral domains. While they can adequately support the need to secureeconomic fundamentals at the PO level, there is a need to explore capital

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3. Partnership with NMGL and other POs - Devolve some consolidation

activities and obligations to NMGL, BUKAL and PASAMAKA-L in the old

areas. The devolution should be covered with clear terms of reference andfunding arrangement. Separately, entertain the idea of approaching anotherfunding agency for a PDI-NMGL Joint Programme in one municipality orprovince. This program can pilot test co-management strategies and enableNMGL to gradually develop its program and resource management capability.

4. ESS and Enterprise Development Agricultural credit has always been riskysuch that only large government financing institutions (GFIs) such as the LandBank and Quedan Corp. are in the running to sustain credit for agriculture.The agricultural capital demands of the CL-SRDP areas are far greater thanwhat the ESS can provide. Moreover, the funds already in the hands of thePOs are very vulnerable to crop failures, financial management inefficiencyand other risks. In this regard, PDI may adopt the following courses of action:

a) Develop a separate or distinct organizational machinery for lendingand collection although this machinery shall remain under the Office of the Executive Director through the Admin and Finance Unit.Specifically, a distinct staff or officer should be in-charge of lendingand collection to avoid mixing NGO relations with loan-borrowerrelations.

b) Standardize lending volume and maturity by crop or product line,production area and production cycle. This way, borrowers can pegtheir borrowed capital to cost of production and allow them to plantheir finances accordingly. As always, there should be penaltyprovisions to induce discipline.

c) Assist ARB organizations in accessing Land Bank or Quedan Corpagricultural credit. These institutions are large enough to absorb creditrisks in agricultural areas.

d) Focus starting aid funds to value-adding and fast-recycling activities

(e.g. similar to honey processing), marketing (e.g. to support marketaccess of producers) and provision of agricultural inputs (e.g. tradingof feeds, organic fertilizers, seeds, etc.).

5. PO Development - The existing POs, including NMGL, BUKAL andPASAMAKA-L, are political and advocacy organizations that are notdesigned for enterprise management. Also, most of these organizations do nothave managerial structures such that executive functions are also appropriatedby the Board of Directors. Currently, similar POs are also handling economicenterprises under the ESS component thus creating pressure on PO leaders toundertake both political and economic functions. It would be more efficient to

let the POs focus on their political advocacy and let new economicorganizations emerge. These organizations can have different sets of leaders or

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managers and can assume several formats like cooperatives, partnerships,corporations and even family-owned businesses.

6. Monitoring on Scholarship Grants PDI has already graduated 77 collegescholars. It would be important to track the trajectories of these graduates to

understand their post-college survival strategies and contributions to theirfamilies and communities. The data can help inform the design of futurescholarship programs.

7. Co-Financing - PDI and EED should be able to optimize opportunities at theEU level through a joint proposal. This funding can be orientated towardssupporting the ancestral domain needs of IPs or the MDG goals pertaining towomen such as access to basic social services, maternal health care andelimination of violence.

8. Spin-Offs Entertain spinning off the enterprise initiatives into formallyregistered autonomous enterprise organizations (either as cooperatives,corporatives, joint venture partnerships or family-owned enterprises). In theinterim, unpaid loans can be converted to equity in favor of PDI and/orNMGL. The same can be programmed for divestment whereby PDI and/orNMGL gives up the equity (and role in co-management) as soon as theentrepreneurs are able to complete the loan repayment.

9. Joint Projects - Within the context of the CL-SRDP and in response toemerging challenges and needs, PDI can map out small but separate jointprojects with either NMGL, BUKAL or PASAMAKA-L in particular lines of work or areas within the region. They can approach other donors to fund theseprojects on short-term basis.

10. Sustainability As far as human resources and leadership capabilities areconcerned, there are no barriers to sustainability. However, there is a criticalproblem of equity development and ability of the PO partners to mobilize andmanage resources for their internal requirements. Without these, it would bedifficult for them to independently engage in funding arrangements with otherdonors. The remaining term of CL-SRDP should be an opportunity for them todevelop their resources and financial track record.

11. Communications and Social Marketing - PDI can

Interim Evaluation of the Sustainable Rural Development Program (SRDP), By Eddie L. Quitoriano

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