10 September 1982

His Excellency Ferdinand E. Marcos
President
Republic of the Philippines
Malacanang Palace, Manila

Dear Mr. President:

On behalf of the membership of The Makati Business Club, we greet you on the occasion of your birthday and wish you many happy returns.

May we also present for your consideration and as a sign of our common aspiration towards Philippine development, a paper that is the product of a series of MBC-sponsored conferences on various aspects of the national condition. These meetings were held from June to August of this year, and included top businessmen, academicians, economists, communicators and the military. Aside from MBC, the participating groups were the Philippine Economic Society, Development Academy of the Philippines, Asian Institute of Journalism, National Defense College of the Philippines, and Ministry of Budget and Management.

The perceptions and suggestions contained in the paper have been on many occasions articulated by other more prestigious entities, including the World Bank, IMF, NEDA, ILO in the Ranis Report and UNESCO in the MacBride Report.

Moreover, your recent pronouncements on local autonomy and regionalization may find similar lines of thinking in the four-page paper. The linkage between security and development supports your statement that these issues are merely two sides of the same coin.

May we, therefore, present for your consideration “Policy Suggestions for Regional Development”, formulated at the Makati Business Club Plenary Conference.

Respectfully yours,

ENRIQUE ZOBEL
Chairman
Executive Board

CESAR A. BUENAVENTURA
Chairman
Advisory Board

VICENTE T. PATERNO
Chairman
Resolutions Committee

Policy Suggestions for Regional Development

The MAKATI BUSINESS CLUB, in consultation with other concerned groups from both public and private sectors, expresses grave concern over the social, economic and political upheavals besetting the world today and contributing to poverty and unrest in the country. These global disturbances are, in no small way, the product of declining moral standards in society as a whole.

This perception does not diminish the fact that the country has clearly advanced in the last two decades, notably in:

1. The expansion and diversification of our economic infrastructure,
2. Self-sufficiency in rise,
3. The development of exports and export markets, and
4. A more independent foreign policy.

Still, much remains to be done if the benefits of progress are to be lasting and equitably distributed. In particular, efforts should be exerted to alleviate a number of developmental deficiencies also cited in other reports, including the Philippine Development Plan for 1983-1987.

1. The great disparities in development between Metro Manila and other regions,
2. Insufficient resources and decision-making powers of local governments, and
3. The growing frustration of substantial segments of the nation at the lack of opportunity to articulate their perceptions and influence the wielders of economic and political power.

Partly as a consequence of these factors, development of the country’s resources has not yet been able to provide many Filipinos with sufficient levels of income and services to maintain human dignity. This situation of want has, for many, grown to unbearable proportions with the onset or world recession, and has driven an alarming number to lawlessness and desperation. The increasing number of barangays influenced in varying degrees by the NPA is clear evidence of this trend, and of the President’s statement that security and development are but two sides of the same coin.

After considering the above situation and its long-term effects on national welfare and stability, and sharing the President’s own concern, the MBC respectfully proposes priority attention to the following courses of action addressing these problems of growing poverty, waning confidence and moral decline:

1. The allocation of a significant, fixed and specific portion of national appropriations for local governments to budget and spend themselves, under the technical supervision and auditing control of the central government. These funds may be allocated to regions according to population, social needs, maintenance requirements of in-place infrastructure, and other parameters; and regularly incorporated into the national budget
   
   Along with this measure, regional offices should be allowed more decision-making authority within certain general guidelines from the center. This measure will allow speedier action that is more responsive to the local situation, bringing government closer to the people.
   
2. The appointment of a Regional Mobilization Commission composed of government, business and regional representatives to study certain priority regions, formulate programs to mobilize them and coordinate government and business efforts to implement ensuing plans. This commission may be given a budget, depending on its plans, with the private sector participants providing or soliciting counterpart investments to match the government outlay. Target regions may be depressed areas or high-potential sectors.
   
3. Increased private sector participation in KKK projects. The use of existing rural, development and (branches of) commercial banks as conduits for KKK funds should be considered, along with joint ventures between established business groups, KKK beneficiaries and the government. Technical support may be coursed through regional agricultural and technical schools. These measures could reduce the delivery costs, shorten delivery time and maximize the benefits of KKK through more viable enterprises.
   
4. The creation of Citizens’ Advisory Councils (CACs) at the municipal, city, provincial and regional levels, composed of barangay, municipal and regional leaders and sectoral representatives, and tasked with advising influential sectors of the people’s true sentiments and needs, and reviewing and reporting the actions of these sectors to their respective constituents. Drawing representation from the plurality of community interests, these CACs will evaluate according to ethical and social imperatives all important community entities – the government, business interests, the Church, schools, media, etc. – and disseminate their findings using funds from a non-partisan entity, perhaps a special foundation for this purpose.

While the merits of strong central government have been well manifested during the growth decade of the 70’s, we believe that the people have matured sufficiently to be ready and eager to take a greater hand in their development. The above recommendations are presented with the view to giving them increased opportunity to shape their destiny. The mistakes they might make in the process will be more than compensated by the vibrant feeling of greater participation and freedom of choice in economic alternatives.

There are many responsible entities in the business sector who, concerned with the current situation, will respond to government’s call for specific measures to alleviate rural poverty. Depending on their capabilities, this response may include providing technical and managerial expertise, participating in commissions and councils, and/or investing in specific rural projects justified by reasonable returns on funds employed. The MBC offers its services to help mobilize any desired participation from the private sector in priority activities that the government may program.