Decentralizing Philippine development : an assessment of the decentralized shelter and urban development program

DSUD"s goals include helping cities to: 1) develop a self-sustaining system of financing; 2) improve the delivery of urban services and infrastructure; and 3) improve access to sustainable urban shelter delivery for low-income households. The report also examines the broader context and progress of decentralization in the Philippines, focusing on economic change and patterns of urbanization. The overall conclusions of this assessment are as follows. (1) The GOP has made significant progress on all requirements specified in the DSUD Policy Matrix as the basis for the initial borrowing. Of the 10 targets related to the first tranche, 8 appear to have been met satisfactorily (although opportunities for further strengthening are pointed out in a few of these areas), and enough progress has been made on the remaining two to suggest they will be achieved shortly. Also, although final certifications have not been provided, preliminary tabulations indicate that sufficient HG-eligible investments have been made to satisfy the investment plan requirement for the first tranche. (2) The overall decentralization program is clearly one of the government"s highest priorities. The reconciliation of legislative drafts for the new Local Government Code is now in its final stages and passage appears imminent, with full implementation to occur 6 months after passage. (3) There is an urgent need to expand and expedite the technical work needed for the effective implementation of decentralization. More forceful coordination and guideline development at the central level and more aggressive "demand-driven" capacity development at the local level are critical at this point. The rapid and well-focused deployment of DSUD technical assistance and training can make an important contribution to these ends. (Author abstract)