The Context of and Rationale for Public
Sector-Led Planning
Governance and teh 3 Actors in Society
Government
Functions of the State
key actor in polity, its central concern is participatory democratic governance. Through its rule making function, it
secures human rights, justice and equity for all citizens.
Secures law and order
Promotes human rights, social justice and equity
Safeguards public interest
Executive, Legislative, Judiciary
Private Sector/ For Profit
Often both are accused of consolidating their power in an unholy alliance that corners society’s
benefits … at the expense of the general public
Functions of the Private Sector
key actor in economy. Its basic concern is the production and distribution of goods and services to
meet the needs of people in a manner that is mutually beneficial.
Production and distribution of goods and services
Provides gainful employment
Contributes to capital build up
Business Interface
Conducive business climate
Job security
Fiscal incentives to private investments
Environment-friendly production
Civil Society / Non-profit / Voluntary
third pillar, Known variously as NGOs, PVOs, POs, CBOs, etc., civil society is a collection of individuals
and organizations which are independent of the government and who manifest the will and interests
of citizens
Functions of the Civil Society
key actor in the realm of culture. It is concerned with the development of social and spiritual
capacities of people in order for them to advance the frontiers of knowledge, to clarify and organize
human values, and to advocate the public interest
Advances civil and political rights
Develops social and spiritual capacities
Clarifies and organizes the values of society
Advocates the public interest
CSO Interface
Concern for social and spatial equity – rationale for social services provision and regional development
planning
Promotion and enrichment of Filipino culture – top General Welfare goal (Sec. 16, RA 7160)
Participation and empowerment especially of the marginalized - Indigenous people – RA 8371 -
Artisanal fisher folk – RA 8550 - Urban poor – RA 7279 - Upland dwellers – RA 7586
power, relationships, responsibility and accountability
All three entities are critical agents for sustaining human development. The state creates a
conducive political and legal environment. For its part, the private sector generates jobs and income.
And civil society facilitates political and social interaction – mobilizing groups to participate in
economic, social and political activities.
Functions of the State
the state has the function of safeguarding the public interest and promoting the general welfare
has the capacity to intervene in practically all aspects of community life in the public interest
1. Provider of Goods and Services
1.1 Basic Goods like food and medicine
1.2 Provider of day to day peace and order and other protective services
1.3 Makes land and other resources available for use by the market or individuals
2. Regulator and Facilitator of the Market
3. Arbiter between Contending Social Groups
4. Social Engineer
5. State as Land Administrator / Steward of the Environment
Administrator of territory and its sustainable use
Territories should be administered and defended by the state
Eminent Domain - government can take a property for public purpose with due process and just compensation
Police Power - Regulation of actions and behaviors of individuals and groups in accordance with socially acceptable norms
Produce comprehensive rational solutions to social problems
Maintaining social order, harmony and peace
Restructuring social relations through distribution of the locus of power
national policy to have a preferential option for the poor
Balance interests of stakeholders
1. Soft Approach - values formation | 2. Hard Approach - restructuring society
2.1 Natural Monopolies
2.2 Economies of Scale are Needed
2.3 Externalities
2.4 Pure Public Goods
TYPES OF GOODS
1. Private Good - individually consumed
2. Common Pool Good - individually consumed but impossible to exclude others
3. Toll Good - collectively consumed but is possible to exclude others by raising charges and fees
4. Collective good - jointly consumed and it is impossible to exclude others from its use
5. Merit goods - objects or services that may should be provided because they are intrinsically or widely beneficial to society
NATURE OF PUBLIC GOODS
1. Collective consumption
2. Indivisibility
3. No Market Price
4. Spill Over Effects
EXAMPLES
production support infrastructure
reduction of tariffs on import and export of materials
tax exemption holidays and credits
reduced transactions costs
absorbing risks for investors
maintaining livability and attractiveness of the locality for both living and making a living
Private Sector as Provider of Goods?
Physical Resources and Funds
Relatively Efficient Systems
Manpower and Technical Skills
Quality and Variety in Outputs
State as the 'Primus Inter Pares'
Taxation & Land Use Planning
Taxation as a means to raise funds and equalize opportunites
Basic Real Property Tax, levied on owner of land
Special Levies on Land, Imposed specifically
Special Benefit Levy, imposed on lands with immediate benefits from public works projects
Idle Land Tax
Worsement Compensation, claimed from eminent domain proceedings
Socialized housing tax, additional tax on properties that bear social function
Local Sanggunian / Local Gov. Planning
Police Power
highest priority to the enactment of measures
that protect and enhance the right of all the
people to human dignity
State shall regulate the acquisition, ownership,
use, and disposition of property and its
increments. (Constitution, Art. XIII, Sec. 1)
State to promote distributive justice and to
intervene when the common good so demands.
(Constitution, Art XII, Sec. 6)
ZONING, the regulation by districts of the height, bulk, and use of buildings,
the use of the land, and the density of population. (ASPO)
SUBDIVISION REGULATION, another principal instrument of police power to
control the division of larger parcels of land into individual building lots to ensure
BUILDING REGULATION, to see to the structural integrity of all buildings and the
safety of building sites and the standards of sanitation are followed
ENVIRONMENTAL LAWS, Implementation of environmental laws, e.g. - the
Ecological Solid Waste Management Act (RA 9003) - the Clean Air Act (RA 8749) -
the Clean Water Act (RA 9275)
Eminent Domain
exercise its power of eminent domain for public use, or purpose, or
welfare for the benefit of the poor and landless, upon payment of
just compensation,
- that a valid and definite offer has been made previously to the owner but
- that upon filing the expropriation proceedings and upon making a deposit
of 15% of the fair market value of the property, the LGU may take
immediate possession of the property to be expropriated; and
- that the amount to be paid shall be based on the fair market value at the
time of the taking as determined by the proper court.