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The passage of the Local Government Code in 1991 has put the spotlight on Local Government Units (LGUs), particularly on the huge responsibility that was entrusted to them as well as the amount of resources that are now at their disposal to effectively discharge the devolved functions. In the report of the Union of Local Authorities of the Philippines, they noted the increasing share of local governments in national internal revenues. For the period 1991–2001, the average Internal Revenue Allotment per year was PHP79.96 billion, (As of 31 March 2009, 48.25 Philippine pesos (PHP) = US$1.) or 13.83% of the national budget.

The vast amount of resources that is now under their control dramatically highlights the importance of making sure that they are equipped with the right tools, systems, and procedures to ensure an effective use of public financial resources. One way of doing this is by providing them with access to comprehensive socioeconomic data, such as the data generated by the Community-Based Monitoring System or CBMS, on the basis of which they can craft their development plans.

This is especially evident in the Philippines, the birthplace of CBMS, where CBMS data is now being used for facilitating evidence-based planning and budgeting in 13 498 barangays in 531 municipalities, 42 cities and 52 provinces. Since it was pilot-tested in the 1990s, the CBMS has been transplanted to 14 other countries in Asia and Africa. Indeed, the exuberance with which these LGUs have embraced CBMS can only be a glowing testament to how it has effectively responded to a long-felt need for a system that can provide a reliable and credible information base at the local level for policymaking, program design, and impact monitoring.

The Philippine Government has been very supportive of this initiative. For instance, the Medium-Term Philippine Development Plan 2004–2010 targets the expansion of CBMS coverage to all LGUs by 2010. Several memorandum circulars and policy issuances have likewise been prepared by key national government agencies supporting the use of CBMS as a monitoring tool to diagnose poverty at the local level as well as to localize the Millennium Development Goals (MDGs):

• The NEDA (National Economic and Development Authority) Board Social Development Committee issued Resolution No. 3 series of 2006 enjoining all national government agencies and LGUs to adopt the CBMS as the systematic monitoring tool to diagnose the poverty situation at the local level.

• The National Anti-Poverty Commission has issued an En Banc Resolution No. 7 (issued in March 2003) directing LGUs to adopt the 13 core local poverty indicators as the minimum set of community-based information for poverty diagnosis and planning at the local level.
  
  
• The Department of the Interior and Local Government has issued Memorandum Circulars 2003-92 (April 2003) to set policy guidelines for the adoption of the 13 core local poverty indicators for planning and 2004-152 (November 2004) to encourage LGUs to intensify efforts toward the achievement of the MDGs. The latter cicular also enjoins LGUs to use monitoring systems such as MBN-CBIS, CBMS, IRAP, etc., in monitoring the nature and extent of poverty.
  
  
• The National Statistical Coordination Board (NSCB) has also issued Resolution No. 6 (2005) which recognizes and enjoins support to the CBMS as a tool for strengthening the statistical system at the local level. It also directs NSCB Technical Staff to initiate and coordinate an advocacy program for the adoption of CBMS by the LGUs, through the Regional Statistical Coordinating Committee, the technical arm of the NSCB Executive Board in the regions.
  
  
• The League of Municipalities of the Philippines has also issued Memorandum Circulars 027-2006 and 027-2006B enjoining member LGUs to adopt (or sustain the adoption of) the CBMS as a tool for local poverty diagnosis and to institutionalize this as part of the system of local governance. At the same time, the League has issued these circulars to ensure the incorporation of the MDG targets and utilization of the CBMS data in the local development plans at the municipal and barangay levels for focused poverty targeting.

We believe that CBMS represents a significant step forward in the nation’s struggle to allow more Filipino families a just share of the national wealth and, as such, deserves the support and commitment of all who believe that a brighter, more prosperous future awaits our nation and people in the years ahead.

Document(s) 2 of 10