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Quality of Leaders and Barangay Finance

Local Government Units (LGUs) play a crucial role in the Philippines’ economic development. When each barangay, municipality and city improves economically, economic progress in the entire country follows naturally. For Hector De Leon (1997), LGUs can identify the needs and concerns of their localities best, and they can meet these needs by channelling the public goods and services to their constituents who need them the most. De Leon asserts that local affairs can be best regulated by the people in the locality rather than by the central authority. Even literature supports the contention that leaders affect economic growth (Jones 2008; Jones and Olken 2005). Moreover, there is no authority more familiar with local needs and concerns than the barangay leaders themselves.

The Local Government Code of 1991 mandates the following services and facilities that each barangay needs to provide: 1) Agricultural support services which include planting materials, distribution system and operation of farm produce collection and buying stations; 2) health and social welfare services which include maintenance of barangay health center and daycare center; 3) services and facilities related to general hygiene and sanitation, beautification, and solid waste collection; 4) maintenance of katarungang pambarangay; 5) maintenance of barangay roads and bridges and water supply systems; 6) infrastructure facilities such as multipurpose hall, multipurpose pavement, plaza, sports center, and other similar facilities; 7) information and reading center; and 8) satellite or public market.

To be able to carry out its mandate, the LGU at the barangay level has two essential needs: 1) The adequate funding to finance all these responsibilities; and, 2) the competency to raise and use these finances efficiently. Both are necessary; one is deficient without the other. However, the latter is the more important of the two because in the case where finances are insufficient, competent leaders can demonstrate resourcefulness in generating revenues.

The focal contention of this paper is that the financial condition of the barangays is directly related to their kind of local leaders. Specifically, the main research question is: Is the financial capability of local governments affected by the quality of its leaders? This paper, therefore, attempts to measure the extent to which leadership competency contributes to the financial capability of LGUs, specifically of the barangays. The paper first presents the challenges besetting the finances of the barangays particularly in Zamboanga City, and then examines how leadership qualities may have contributed or eased these challenges.

A Review on Barangay Finance

Like any LGU, the barangay has two main sources of funding one of which is the Internal Revenue. Allotment (IRA). The IRA is a share that barangays are entitled to get from the national taxes as assured by Section 285 in Title 3 of the Local Government Code of 1991. Another source of funds is stipulated in section 129 of the same code that allows LGUs the power to generate its own income, which this paper calls own-source revenues (OSR).

With such a daunting mandate, the problem lies on the LGUs’ limited financial resources to carry out its responsibilities. Layug et al. (2010) reported in their study that the bulk of the barangay income in Agusan del Sur and Dumaguete is being spent on salaries and wages. Little money is left for fulfilling the devolved functions of barangays, with most of them failing to finance these functions.

Moreover, the many responsibilities of barangays mean that the limited financial resources are thinly distributed among their several functions. Some of these barangays fail to spend on important basic services such as education and health. In all study areas, no amount was spent on agricultural support services, maintenance of barangay roads, bridges, and water systems, and infrastructure facilities. Expenditures on health and nutrition range from PhP 2,000 to PhP 81,000, and these were spent on paying for utilities expense and honoraria of Barangay Health Workers (BHW) and medicines (Layug et al. 2010).

Another financial concern is the barangays’ dependency on their IRA and their lack of initiative to raise their OSR.

The 2010 Financial Report by the Commission of Audit (COA) reveals that 65 percent of the LGUs’ incomes come from the IRA. In their study, Layug et al. (2010) report that the barangays’ dependency on their IRA ranges from 85 percent to 97 percent. This IRA-dependency of the LGUs has been noted and concurred by several papers (Layug et al. 2010; Manasan 1987; and Quaile 2009). Furthermore, Layug et al. (2010) state that barangays do not address the misalignment of revenue and expenditure assignment, as well as the counter-equalizing and disincentive effects of IRA by not raisingenough OSR in their localities and optimizing their use of corporate powers as evidenced by a zero percentage on borrowings.

In a joint project of the Philippine Institute for Development Studies (PIDS) and the United Nations Children’s Emergency Fund (UNICEF) in 2009, it stated that “without sufficient funding to finance the production, distribution, consumption, or provision of public services, well-meaning public officials are unable, to deliver. Given these perennial constraints, local chief executives are faced with a great challenge to be resourceful and innovative, and most of all, to exercise strong political will in overcoming the limitations and in delivering the needed services.”

Among the reasons for the financial handicap disenabling the barangays to deliver goods and services to their constituents are the barangay leaders themselves. Layug et al. (2010) identify this as the lack of political will among barangay officials to innovate alternative modalities of revenue generation—or optimal use of corporate powers in terms of accessing credit facilities, among others.

This ‘lack of political will’ is due to the inadequate competence of these barangay officials which hampers them from tackling the financial as well as the public service needs of their constituency. The Besley, Montalvo and Reynal-Querol’s (2011) study reveals that economic growth is enhanced by having leaders who are more highly educated.

Traits of a Leader in Multiple Regression and Econometric Model

Ideas on leadership qualities can be traced as far back as the Greek philosopher Plato. In Plato’s Republic, he described that a leader, a philosopher-king, should have the following qualities: Highly intelligent, morally upright, and well-trained.

In the field of leadership studies today, among the theories of leadership that are often discusssed is the trait theory. Trait theory assumes that people possess or acquire certain qualities that make them better suited to leadership. This theory asserts that effective leaders demonstrate certain traits or characteristics. Such traits help explain what makes one leader stand out from others. These traits can be character traits (Esguia and Padilla 2010) or some level of cognitive or emotional intelligence.

This research paper finds its inspiration from Jones and Olken (2005) who assert that quality of leaders mattered for economic—or in this paper’s case, income—growth. They believe that “some leaders are more competent than others and are able to make sensible economic policy choices which enhance economic performance.” This conclusion is supported by Besley, Montalvo and Reyna-Querol (2011) who assert that economic “growth is enhanced by having leaders who are more highly educated.” Butler, Lee and Moretti (2004) add that political affiliation also matters for growth.

This study had drawn some of the variables from the latter literature. It applied multiple regression analysis using cross-sectional data. It estimated how much each of the pertinent qualities of these chairpersons elected last 2010 has affected the barangays’ financial capability. This is expressed in the following model: [Refer to PDF File for the formula (Page 3)]

Methodology, Variables and Significance of the Study

This study utilizes both qualitative and quantitative analyses. For the qualitative analysis, the paper first presents an overview of the consolidated financial condition of the ninety-eight barangays in Zamboanga City, to be followed by a summary profile of all the chairpersons locally known as “punong barangays.” The regression test uses the ordinary least squares method to provide the empirical basis for the quantitative analysis of the estimated variables.

The dependent variable is the Financial Capability which is the total income of a particular barangay’s net of its IRA, denoted as OSR. Urbanized barangays tend to have larger incomes and rural barangays have smaller incomes. To remove this bias toward rich barangays, OSR is expressed in a form of a ratio. Mathematically, it is expressed in the following:
[Refer to PDF FILE]

To approximate the contribution of the chairperson’s qualities on the financial capability of his/her barangay, the change in OSR is estimated. The change here denotes the difference between the levels of barangay income at the end of 2011 and the level of barangay income prior to his/her assumption of office in 2009. This difference will show if this official has brought about a financial improvement, stagnation or decline in the LGU.
[Refer to PDF FILE]

The independent variables that this study will look into include the qualities of barangay chairpersons namely: Education, experience, age, gender, civil status and familial affiliations of the barangay chairpersons.

This paper is interested to find out if educational background is a significant factor in enabling the barangay chairpersons to be good fund-raisers. The level of education represents the knowledge, skills and formal trainings these officials have to make them good leaders of their own locality. This is determined by the highest educational attainment of the barangay captain, in terms of number of years of formal and informal schooling. This study hypothesizes that leaders with higher educational attainment (college or graduate level) are better economic planners, more innovative and open-minded to new sources of revenues than those with lower educational levels Experience is measured by the number of years in public service, either as chairperson or any other official position in the barangay. A first-term official is assumed to have less experience in public service than an official with two or more terms in office. This paper hypothesizes that experience of the barangay chairpersons has a significantly positive relation with the financial capability of their barangays.

Affiliation is another important factor to consider. Butler, Lee, and Moretti (2004) point out that political affiliation is related to economic growth. However, the Local Government Code of 1991 stipulates the apolitical and non-partisan nature of local officials. Hence, generally and by custom, barangay officials have not outrightly engaged themselves in partisan politics. For the purposes of this paper, the term affiliation is referred to as familial which is defined as the number of officials who hold various barangay positions with the same surname. The positions may vary from chairperson, kagawad, Sangguniang Kabataan (SK) chairperson, barangay secretary or treasurer. Since it is quite common for families to reside in the same village, this study assumes that officials with identical surnames are, to some degree, related to one another. By practice in this country, candidates of political clans often get elected, even when political dynasties are discouraged by the Philippine Constitution. This research would like to see if having relatives in the village council, either at present or in the past, affects the barangay’s OSR.

Finally, this paper tests whether age, gender and civil status of punong barangays can also affect their ability to raise funds.

For the purposes of this paper, the term barangay chairperson is used interchangeably with the terms chairperson, punong barangay and captain; whereas, barangays are also referred to as villages. The city proper is locally known in Zamboanga City as pueblo and in this paper is also termed poblacion. The OSR is used interchangeably with own source incomes.

The total income is taken from the annual Statements of Appropriation, Income and Expenditures reported by the City Auditor’s Office. The OSR is computed using this total income minus the IRA which is prepared by the Office of the Department of Budget and Management (DBM) in Region IX.

For the independent variables, the Department of Interior and Local Government (DILG) has compiled a concise profile of all barangay officials in the city.

Meanwhile, this study is important for the following reasons. Firstly, it fills in a research vacuum focusing on barangay leadership and finance. There is limited literature on Philippine barangays per se as more researches tend to focus on cities, municipalities and even provinces due to readily available data. This paper will help provide a picture of the financial as well as economic condition of the barangays in Zamboanga City.

Secondly, institutions that train future leaders, like the Ateneo de Zamboanga University (ADZU) which is a service provider of higher education in Region IX, will benefit greatly from this paper. The research findings can help in evaluating their curriculum and programs and in designing their course offerings that reflect the training of future leaders as well as in inculcating in their students civic duties and responsibilities. More particularly, as a stakeholder and participant of local development, ADZU may find this study helpful in guiding its social development projects.

Thirdly, social planners, both in national and local government agencies, will also find the results of this paper useful in helping local officials become better fiscal managers and the LGUs, particularly the barangays, perform their functions better.

Finally, this study is opportune and relevant in times of elections, specifically barangay elections. It can reveal the importance of choosing the right leaders and the implication of the electorate’s votes on the performance of their LGUs.

Results and Discussion

Financial Status of the Barangays in Zamboanga City

According to the City Auditor’s records, as of year 2011, the ninety-eight barangays in Zamboanga City have a combined total income of PhP 390.7 million, higher by 8.5 percent than the previous year. This is higher when compared to the combined total expenses of the same year, which was PhP 275.5 million. In fact, the barangays in Zamboanga City have been saving since 2009, only that the surpluses have been declining from PhP 132.9 million in 2009 to PhP 121.5 million in 2010 and PhP 115.1 million in 2011. Still, what is notable is that each of these barangays has gained surpluses in all these three years. Not one of them had a deficit. As for the reason behind this, perhaps another in-depth research study can be made on the disbursement process of these funds.

On the issue as to whether or not the barangays in Zamboanga City are dependent on the IRA, records from the DBM show that the total combined IRA given to these barangays in 2011 amounted to PhP 335.8 million. This is 86 percent of the consolidated income of the same year (see Figure 1). Apparently, the 14 percent or about PhP 55 million generated by these LGUs themselves or their OSRs are clearly not enough to fund the PhP 275.5 million expenses incurred that year.

Another point of interest is to know whether or not the fiscal conditions of the barangays have improved in real values since 2009—the year before the current elected barangay chairpersons have assumed office up to their first year in office which was 2011. By real values, it meant using common price levels to make the incomes in these two years comparable. This is made possible by removing the effect of inflation on the 2011 total income. When computed, the real incomes of several barangays were actually lower in 2011 compared to 2009. When totalled together, the total real barangay income in 2011 was a mere PhP 8 million higher than the total income in 2009.

Top and Bottom Ten Barangays and their Chairpersons

When the ninety-eight barangays in Zamboanga City were ranked according to real OSR, the ten highest and the ten lowest OSRs, there were six barangays whose OSRs reached PhP 1 million to 2 million (see Table 1). Surprisingly, the villages with the biggest OSRs were Mampang, Sta. Catalina and Patalon; both the former and latter are rural villages. According to the COA regional office, the reason for Mampang’s and Patalon s sizeable OSR in 2011 was the large congressional fund given to these barangays allotted for medical equipment. For instance, Mampang received about PhP 1.9 million for this purpose.

It is worth noting that the richest barangays with the highest total incomewere not on this list: Talon-Talon, Baliwasan, Pasonanca, Tumaga, Calarian,San Jose Gusu and Tugbungan. These villages have the biggest total incomebecause their IRA are also the largest due to their sizeable populations andland area, while their OSRs may not be as substantial.

TABLE I. Barangays with the Highest and Lowest OSRs
[Refer to PDF FILE]

In terms of the percentage of the OSR to total income, the barangays with the biggest share were Zone III at 41 percent, Zone II at 35 percent, and Zone IV at 29 percent. This result is not surprising because they are all located at the central district of the city. Their OSRs are generated from establishments located in this area. Meanwhile, Tetuan and Sta. Maria had the smallest share in the top ten at 13 percent, Moreover, all these barangays are mostly situated within 4 kilometres of the city proper and are classified as urban areas except Mampang and Patalon which are 6 kilometres and 31 kilometres away from the poblacion, respectively.

The villages with the smallest OSRs are Kasanyagan, Pangapuyan, Tigbalabag, Landang Laum, Panubigan, Manalipa, Busay, Landang Gua, Tumalutab, and Dita. Notice that six of these are island villages and are economically classified as rural areas, except for Kasanyagan which is an urban village located 2 kilometres from the city proper. The six poorest villages with the smallest total incomes are not on this list. These are Latuan, Lumayang, Dulian (Upper Pasonanca), Taguiti, Pasilmanta and Capisan. They were not in the bottom ten barangays because their OSRs were among the smallest.

Table 2 reveals that on the average, the top ten barangays have a relatively larger share of OSR to their total incomes than the bottom ten barangays. This means that the former are relatively less dependent on their IRA allocation than the latter.

TABLE 2. Profile of Punong Barangays of Villages with the Highest and Lowest OSR
[Refer to PDF FILE]

On the average, the chairpersons of the top ten barangays have more years of experience in public service, more years of schooling and are older than the village captains in the bottom ten on the OSR ranking. Moreover, thepunong barangays of the top ten villages happen to be all males, all marriedand less than half of them has or had relatives serving in the barangay councileither at present and/or in the previous terms of office. As to whether thesevariables (that is, experience, education, gender, civil status, age and familyaffiliation) significandy affect OSR, these have to be tested empirically.

Regression Results

When the econometric model was tested using all independent variables,it appears that only education and age significantly affect the OSR of the ninety-eight barangays in 2011. Affiliation, gender and civil status have low values, hence, do not significantly affect the barangays OSR (see Figure 3).

Excluding the insignificant independent variables, the best econometric model with the lowest Akaike Info Criterion (AIC) and Schwarz Criterion is shown in Figure 4. Regression tests reveal heteroscedasticity and spatial autocorrelation problems. The presence of heteroscedasticity is brought about by outliers, with a few barangays having very large OSRs while some others with very small OSRs. Log transformations of the variables in the model have been used to address this problem. The autocorrelation is not a surprise since Zamboanga is a small city. Spillover effects of both positive and negative externalities nature on adjacent barangays are common. To correct this complication, a first-order autoregressive (AR) process (1) is used on the model.

Figure 4 reveals that for every additional year of schooling a punong barangay possesses, the OSR of the barangay increases by 5 percent. For every1 percent increase in the age of the punong barangay, OSR increases by 0.77percent. Both figures are significant within the 95 percent confidence level.Whereas, for every percent increase in public service experience, the barangays OSR gains by 12 percent. The low t statistic of the variable experience reveals that the latter result is still within the 90 percent confidence level. However,this interpretation should be approached with caution. If the auto correlationis uncorrected [or the AR 1 is excluded in the model], the p value of the variable experience is raised, thereby making it less significant. Nevertheless, the F-Stat of this model and its probability value show that this is moderately significant. This model, therefore, can explain and predict 20 percent of the movements in the barangays’ OSR.

It is possible, though, that the education variable depends on the OSR. It is not uncommon for barangay councils with high financial capability,and those who belong to progressive villages with high standard of living, to have an educated electorate. Such progressive villages tend to elect educated officials. To test this possibility, the Granger Causality was used to determine the direction of dependence between these two variables. Results in Table 3 show that the probability of having OSR not causing the variable education  is moderately significant at 90 percent confidence level.

When the difference between 2011 real barangay income and 2009nominal income was regressed, only experience was the significant factor.All other variables do not directly affect nor contribute significantly to the change in barangay income. The result in Table 3 reveals that for every percent increase in the number of years of experience, the change in OSR increases by 50 percent. However, this result is not conclusive since the regression tests accepted only eleven out of ninety-eight observations in the model.

One probable reason for this result in Figure 5 was the short interval between the years the data have been taken. By 2011, the current barangay chairpersons had been in office for just over a year. By this time, only second and third term chairpersons were able to exercise their taxing powers more effectively than the first-time barangay captains. Moreover, the inclusion of the gender variable generates better regression results than without this variable in the model.

Delimitations of the Study

This paper covers chairpersons of all the ninety-eight barangays of Zamboanga City who were elected last 2010. This excludes the other barangay officials elected on the same year, such as kagawad, SK chairperson,barangay secretary and treasurer. It also excludes other city or municipal officials whether elected or appointed. Hence, the results, conclusions and implications of this research may not directly be applicable to other LGUs and elective officials. However, the information derived from this study provides evidence and support to the premise that abilities of local officials can and does affect the financial capabilities of the localities they serve.

Another limitation is that not all qualities of the punong barangay were included in this study due to non-availability of data such as profession.Only thirty-three out of ninety-eight chairpersons indicated their profession or means of livelihood in their file at the DILG. Among the explanations provided by the regional director of DILG is that these officials are bound not to report their means of livelihood because several of them ceased practicing their profession to devote themselves to full-time public service.

As to the latest available OSR used in this study which is 2011, the current barangay captains were in office for just a little over a year. The fiscal impact of these local executives on their villages’ GSRs is not yet fully realized, especially for the first-termers.

Moreover, the OSR may include endowments, grant and gifts that may be freely given to certain barangays or may be attained through a collective effort of the barangay council or even by some private individuals residing within or outside the concerned barangay. Consequently, the entire OSR may not be directly attributable solely to the personal leadership efforts of the village chairperson. Nevertheless, this paper was written on the premise that the qualities of the chairperson are important considerations to the willingness of private individuals or government officials to financially help the pertained barangay. In other words, the OSR is a product of both the direct efforts of the punong barangay, and indirectly of his personal qualities.

Finally, the financial conditions of these barangays depend solely on the financial reports filed by the barangay to the City Auditor and DILG. This research study assumes the figures on these financial records are accurate and has, therefore, no means of verifying unreported funds.

Conclusion and Recommendations

The purpose of this research study is to answer the question: Is the financial capability of local governments affected by the quality of its leaders?with ‘financial capability’ defined as OSR, and local government specified in this paper as barangays. The regression results support the hypothesis that education, age and experience of punong barangays positively contribute to the barangays’ financial capability in Zamboanga City.

However, in terms of raising real incomes in future years, only the experience of local chief executives appears to matter. This implies that to be able to have sustainable barangay funds, it is advantageous for a barangay chairperson to have years of experience in public service.

Both findings imply that for village councils to have sufficient and sustainable funding, the electorate has to choose quality local leaders who are well-educated, experienced and old or mature enough to be able to generate and maintain local funds.This paper recommends that villages in the bottom ten barangays in terms of the lowest OSR, as well as the poorest barangays should elect educated, mature and experienced village officials.This recommendation is also applicable to other LGUs. One possibility is for the government to appoint qualified local leaders in poor localities instead of having the usual democratic elections, but only until such time when a certain level of development has been achieved in these areas.

This paper also recommends that further research studies be conducted on the revenue structure, disbursements of funds, even case studies on the barangay chairpersons and other relevant issues which this paper was unable to cover. Further research can be conducted where the OSR is itemized and divested of grants such as congressional funds and endowments that are not directly attributed to the personal efforts of the barangay chairperson.

Kulungan, Sta. Maria, Davao Del Sur

General Profile of the Village

Kulungan (San Agustin) is one of the 17 barrios of the town of Sta. Maria. It is three kilometers away from the poblacion proper and can be reached via the tricycles that frequent the place. It has five sitios and a total land area of 2,890 hectares. At least 50 percent of this land area is agricultural planted with coconuts. Other crops include corn, rice and coffee. Houses are dispersed in rolling and hilly areas.

The latest population count done in the barrio by the Barangay Service Point Officers (BSPO) of the Population Commission revealed that there are 200 dwelling units with 333 households. There are 976 females and 937 males. The annual income of the barrio is approximated at P3,600 or an average family incom of P300.00. The people are of mixed origin. There are Ilocanos, Tagalogs, Cebuanos, and Natives such as Tausug, Kaolos and other Muslims. Except for a mail delivery system (usually done by the barrio captain), the barrio has no other communication facilities.

The barrio has chapels for Roman Catholics, Seventh Day Adventists, Protestants, and the Philippine Benevolent Missionary Alliance (PBMA). Aside from the presence of a KSP leader for the Catholics, no other resident pastors or ministers live in the barrio. There are seven *hilots*, one licensed midwife, and one government clinic in the area.

Almost all of the households have radios. Very few have access to newspapers and only family owns a TV set. People share the public artesian well which is the source of their drinking water. The well used to be a free-flowing body of water which was converted into an artesian well by a group who had served in the community under the so-called “Paglilingkod Bagong Lipinan” of the local government. It has been repaired once by the barrio folks themselves since the local government saw no need to replace it with a new one. As a result of the defective well, dysentery is a frequent occurrence in the barrio.

Fortunately, however, the barrio is blessed with clear sea water. As you walk along the sandy shore, schools of small fish vie for your attention. This abundance of fish makes most of the people dependent upon the sea for their source of livelihood. Aside from the fish resources, the barrio has a white beach at the farthest end, a rendezvous area for the romantic and young at heart. Inhabited by peace-loving and friendly people, the place is quiet except for the sound of the roaring engine of the fishermen’s boats. The people are simple contented with what they have. Wives stay at home, caring for the children and their homes, waiting for the arrival of their husbands. There are also many children in the place.

Despite the presence of comfort rooms it remains a wonder that the shore is still strewn with human especially in the early morning, thus marring the beautiful sandy seashore.

Most of the residents of San Agustin are fisherman. About 90 percent of them own bancas, around 20 percent of which operate by paddles while the rest are powered by motor. There appears to be no competition among the fishermen. They even set schedules for their fishing. Fishermen whose bancas use paddles leave at around 5:30 in the afternoon and come home at around mid-night. Those whose bancas are powered by a motor, commonly called “pump boats,” leave at around 2:00 in the morning and return around 1:00 to 2:00 p.m. of the following day. By following this schedule, they believe that they are practicing fairness and equality in their occupation.

Fishermen who own non-motorized bancas do their fishing offshore. The usual fishing gear are palangre (hooks placed in a box-like frame), baling (breach seine), and sapyaw (hand net). Fishermen engaged in deep-sea fishing use estangre (multiple set of hooks in a long line), pasol (using a nylon and a bait), and a pukot (encircling gill net). The fishing industry in Kulungan is a small-scale, using crude technology. Most of them attribute the quantity of their catch to suerte or sheer luck. Because of this suerte lang attitude, most of them fell that they can not do much to make their present lives prosperous, thus the fatalistic feeling of contentment. They do have hopes for the future, especially for their children, yet, the suerte lang attitude and “can’t do anything” orientation is pervasive making ambition difficult.

The fishermen’s wives play a vital role in marketing the products. They take care of weighing the catch along the seashore upon their husband’s arrival. They record the weight and usually decide on the price of the catch per kilo. The neighbors also help in weighing the fish. They help the fishermen’s wives find containers for the catch especially when it is abundant. The fishermen who are resting likewise help those who have arrived by properly anchoring their bancas. Daytime is rest time for the fishermen. They sleep till the time they leave for another fishing trip. They do not drink any liquor, not even the *tuba*.

The center of the barrio presents a contrasting picture with the fishing sitio of the place. Here, the children learn to smoke and gamble early. Young and old drink liquor. In contrast to the fishermen, the residents in the center are more aggressive. During our two-week stay in the place, two persons were killed by a drunk. Despite these contrasting characteristics of the sitio in San Agustin, the place is still well-liked. Everybody knows everyone. There are no secrets since what one does becomes public knowledge. Influential people are respected by them.

Data-gathering was conducted during a two-week period. To facilitate field activities, the project director and the student-interviewers stayed in the area. Such an arrangement allowed the cross-checking of survey date which otherwise would have been difficult with one-shot field interviews.

Profile of Fishermen

The presentation of the findings is divided into three major sections. The first section presents the socio-economic profile of the fishermen. Included in the profile are the demographic characteristics and the different indicators of levels of living, household size, food consumption pattern, and morbidity incidence in the family. This is followed by the discussion of fishing activities. A description of the fishermen’s fishing background introduces this section. Other topics, included are the volume of production during lean and peak months, marketing, and the expenses involved. The last section discusses the participation of the fishermen in existing organizations and their awareness of government-related projects in their barangay.

Ninety-four percent of the fishermen are married. They are also middle-aged, many belong to the 30-40 age group (mean age is 37 years old). Twenty-nine percent belong to the 20-29 age group, while twenty-two percent are 50 years old or over. These indicate that fishing as an occupation is popular among young household heads and persists asa a livelihood during the later years of adult male life. More that half of the fishermen (60 percent) were born in the province of Davao del Sur. Of this, 40 percent are from the same municipality. Half of those who came from the town of Sta. Maria were born in the village and have stayed in the area for 30 to 60 years. Average years of residence, however, is 20 years with a standard deviation of 18 years.

Socioeconomic Profile

The educational status of the fishermen is low with 70 percent reaching only the elementary level. Of this, only 23 percent finished grade six (model educational attainment). The mean years of schooling is four years with a standard deviation of two years. Very few (16 percent) have reached highschool and only one percent reached college. Low educational attainment probably stems from financial constraints.

Most of the respondents are Catholics (60 percent). The rest of the fishermen are Protestants (13 percent), Philippine Benevolent Missionary Alliance (PBMA) members (12 percent), and Muslims (5 percent). Although all of the fishermen speak Visayan, only 59 percent are Cebuanos. The rest of the population are natives (Kaolo, Kalagan – 32 percent) who mix their mother tongue with the Cebuano dialect.

Majority of the fishermen (99 percent) own their houses, but only 12 percent own both house and lot. Seventy-eight percent of the 99 percent live in rent-free lots. Only nine percent rent the lots where their houses are found. The rent-free privilege of most fishermen can be ascribed to the fact that Kulungan is an hacienda owned by only three families. One of these families allowed them to stay in their lot without any rent. Their dwelling units are mostly made of light materials like nipa/cogon for roofing and nipa/coconut leaves/bamboo for wallings. Majority of these houses (63 percent) are in good condition; 19 percent are in need of repair. Very few houses (9 percent) were built using permanent materials like GI roofing and cemented walls. The average number of rooms in the house is two, usually the kitchen and the sala.A number of the houses (34 percent) have only one room with a multi-purpose function. It serves as the bedroom during nighttime, sala at daytime, and dining room during mealtime. In this arrangement, the kitchen is found in the corner of the room or downstairs.

Aside from radios which are owned by 63 percent of the respondents, the fishermen do not own appliances which urban dwellers consider as necessities like television sets, refrigerators, or gas ranges. Most of the families (98 percent) do not have dining sets as known by lowlanders. What they have are tables with long benches to sit on during mealtime. A few of them do not even see the need for tables. Wooden sala sets are owned by 86 percent of the household. This also holds true with bed ownership. Only nine percent are reported to have beds, while a greater majority (91 percent) sleeps on the floor.

Ninety-four percent of the households depend on kerosene for their lighting needs. Although some of the houses in the sitio of the village have access to electricity, the village as a whole still has not benefited from the main power station at the time of the survey. They use wood for cooking purposes (99 percent). For water, majority of the respondents still rely on public artesian wells. All households have toilet facilities, most of which are water-sealed. There is, however, a great disparity between ownership and use of comfort rooms. While everybody said they have toilets, the seashore still abounds with human waste. This is caused perhaps by the distance of their toilets from their houses. Most toilets are found several meters away from their houses, thus, most of the children prefer to use the seashore.

Livestock ownership is rare in the barrio. Only about 20 percent of the families domesticate animals, such as chicken and pigs. This rarity of livestock ownership indicates that most of the residents get their sustenance from the sea, and very few supplement their income through domestication of animals. Majority (72 percent) however, have equipment for their fishing activities. Fishing equipment are of the single-hook variety locally known as pasol, twenty-five percent are big nets or baling, and seven are estrangres or multiple hooks.

The average household size is six. The total number of household members is 573, with 144 working and 429 household members not working. Thus, every working household member has to support three other family members. Very few housewives work outside the home. The traditional model of a woman tending the house or looking after their children is still to adhered to in the village. Among the working wives, majority are fish vendors, while the rest work as mat weavers. All the households are nuclear families.

Per capita income from fishing activity is P1,137.31. The main source of household income in the village is fishing with ninety-seven percent (97 percent) depending on it. The remaining three percent are part time fishermen who only fish during peak months. In lean months they work in the farms or are hired as carpenters. Since fishing is the majority’s means of livelihood, most of them (88 percent) own bancas; 36 percent of which are motorized and 52 percent non-motorized. Only 12 percent of the respondents are either renters or hired crew.

The mean annual income of the households engaged in fishing is P6,516.8. This, however, is enjoyed by only a few fishermen (around 5 percent) as revealed by the standard deviation of P9,826.80. The median income is P3,650.00, though the middle 50 percent have an income range of P2,020.00 to P6,450.00 annually. Only twelve percent of the respondents are reported to have secondary sources of income. The include work as farmers, carpenters, or factory workers in Davao City. Annual mean income received from secondary jobs is P2,404.83. The standard deviation of P3,464.36 shows a disproportionate distribution of the income for those who claim to have secondary sources.

Rice is the staple food of most fishermen (70 percent) who spend more or less P29.27 a week for it. This amount comes to twelve kilos at P2.20 a kilo. Others eat corn, while others eat cassava for their breakfast if corn grits are not available. As expected, the most popular viand is fish. The imputed mean value of fish consumed in a week is P23.61 (4 kilos at P5.00 per kilo). In addition to rice and fish, they usually have vegetables especially during noon time. For these, they spend an average of P5.00 per week. Very little amount is spent on vegetables since the wives usually have backyard gardens where malunggay and other plants are cultivated. Conspicuously absent in their diet is meat. Very few (5 percent) have eaten meat at the time of the survey. For those who eat meat, they buy one-fourth to one-half kilo a week. Other food items consumed are dried and salted fish, sugar, cooking oil, and salt.

The most common illness in the barrio is flu/fever (87 percent), followed by colds (66 percent). Another illness which half of the fishermen reported is gastro-diarrhea. This may arise from the dubious quality of water supply found in the village.

Eighty-five members of fishermen’s household fell ill during the previous year. Of these, 57 members needed treatment. Of those who got sick during the past year, 54 members were brought to the doctor. This shows that the families in Kulungan have access to medical care in the town and consult the doctor in times of illness. Around 20 percent of those who got sick were treated at home. Some of them rely on the “herbolario” for curing different kinds of health disorders.

Fishing Activities

Out of one hundred fishermen interviewed, 97 percent reported that fishing is their primary occupation. The average number of years spent on fishing activities is sixteen years. The standard deviation of 11 years indicates, however, that there are those who have been fishing for more than fifty years, while others have just started.

Eighty-six percent of the fishermen acquired fishing skills through experience. Others learned the trade from friends (4 percent), from parents, or relative (8 percent), others (1 percent) When asked about opportunities to attend seminars related to fishing, the majority (91 percent) said they do not avail of any. Among those who attended seminars (18 percent), only fourteen percent said that these seminars were useful. The majority were unable to use the knowledge they learned. Seminars on technology were hardly useful owing to the lack of capital to buy the advertised equipment on the part of the fishermen, and failure to follow the prescribed method advised by the sponsoring agency of the seminar (usually the government).

Seventy-four percent of the respondents own the banca they use for fishing. Twenty-two percent are hired crews (known as pasajeros) and the remaining four percent are boat renters. The average size of the boat is twenty-one feet long (standard deviation=10 feet), three feet wide (standard deviation = 1), and three feet deep (standard deviation = 1). On the average, a fishing trip lasts for 5.6 hours with a standard deviation of 4.4. The number of hours spent on fishing varies among the fishermen since the middle fifty percent spend nine to ten hours at sea. Ordinarily, the catch during those hours goes to the boat owners if there are no pasajeros. If there are pasajeros, the latter receive their share through a percentage of the catch in one fishing trip. The usual percentage share is 40 to 45 percent of the total net income. The boat owners take charge of selling the fish to the market or to a buyer. After deducting all the expenses of one fishing trip, the boat owner gives the share to his pasajeros. Aside from the cash share, the hired crew gets a portion of the catch as a token from the boat owner.

Almost all the respondents (96 percent) own fishing gear. Sixty-one percent of the fishing gear are single hooks locally known as pasol and only 24 percent are nets locally known as baling. Owing perhaps to the “crudeness” of the fishing gear used, the income of the fishermen is low. In addition, 52 percent of the fishermen own non-motorized bancas. Thus, the majority of them stay offshore for their fishing activities so that even if they fish almost everyday such industry hardly contributes to the improvement of their life considering the limitation of the fishing technology used.

Production

Peak and lean months vary among the fishermen. Generally, peak months in Kulungan last from three to five months. Months that are considered good for fishing are March, April, May, June, and July. Twenty-seven percent of the respondents report that their peak months is 4.4 with a standard deviation of 1.33. This short duration of peak months can be attributed to the type of technology being used. It must be remembered that 52 percent of the respondents use non-motorized bancas and 61 percent use the pasol (single-hook fishing gear) as their main equipment. Thus, a typhoon causes considerable losses in income. However, fishermen with bigger motorized bancas still manage to get adequate catch. This simple difference of technology appears to be the main cause of the recorded imbalance between the number of peak and lean months. This study shows that the number of lean months varies from seven to nine months. The average number of lean months is 7.2 with a standard deviation of 1.5.

The volume catch of the fishermen is unevenly distributed for the duration of the peak months. The lowest volume is recorded at ten kilos and the highest at more than 900 kilos. The average volume is 159.3 kilos with a standard deviation of 183.1. The standard deviation shows the wide variation in volume of fish caught during peak months. The catch of the middle 50 percent is between 40 to 999 kilos with a median volume of 100 kilos. The disparity in volume of the catch is caused by the presence of the capitalista — operator who averages at least 1,000 kilos during the peak months. The catch is usually sold at P4.00 to P5.00 a kilo.

The average value of a catch during lean months is P834.56 with a standard deviations of P1,074.78. The standard deviation shows how varied the value of a catch may be. This is directly caused by the disproportionate volume of catch during the lean months. In lean months, the catch is expectedly lower than those during peak months but it demands higher prices in the market. For the fishermen in Kulungan, the average volume during these months is 30 kilos with a standard deviation of 38.9. The median catch is 20 kilos with a median value of P100.00. The price per kilo during the lean months varies from P5.00 to P6.00. At this price, the mean value registered at P187.5, with a standard deviation of P220.9.

The fishermen’s customary expenses include fuel, food, and ice. In terms of cost these expenses are very minimal. For food, the average expense is P5.56 with a standard deviation of P8.6. Average expense on ice is P2.00 with a standard deviation of P4.17. Median ice expense is zero. The zero median expense can be explained by the fact that most of the fishermen use non-motorized bancas, staying out at sea for 8 to 12 hours. Thus, there is no need for ice to keep the fish fresh.

The study reveals that majority of the fishermen (69 percent) do not have access to credit. For those who have availed themselves of credit (31 percent), 80 percent obtain them from private individuals. Most of the study’s respondents borrowed money from their suki or favorite customer who usually are middlemen *(compradors).* The suki relationship as found in Kulungan makes the marketing of the catch easy. Whenever the need arises, the usual practice is to borrow money from the suki. In return, the fishermen delivers to catch to him after each fishing trip. The comprador buys the fish and then deducts the corresponding amount from the debt incurred bu the borrower. This arrangement places the fishermen at a disadvantage since the suki buys the fish at much lower price compared to other buyers. Despite the one-sided bargaining the fishermen are still obliged to sell the catch to him.

Marketing

The selling is usually done by the fisherman himself. Only thirteen percent report that it is the responsibility of the wives to sell the fish. The selling done by the wife usually refers to the peddling of the catch around the neighborhood. Convenience is the reason why most of the fishermen sell their catch to the suki who, most of the time is the fish dealer or middleman. The bargaining is usually done at the fish landing. In this way the fishermen are not saddled with bringing the catch all the way to the marketplace for which they will necessarily spend for transportation and other expenses. In the previous year, 1981, the average sale of the fishermen was P806.64 with a standard deviation of P890.99. The median value is P500.00. The biggest volume sold averaged at 145 kilos, with a standard deviation of 36.27 kilos. Mean value of the smallest sale is P168.14, with a standard deviation of P288.80. The median is P51.00 at the median volume of 10 kilos. The prevailing price then was between P4.00 to P5.00 per kilo.

Awareness of the Government

Sixty-six percent of the fishermen are aware of government projects being undertaken in their barrio. The projects they are highly aware of are electricity (90 percent of the 66 respondents), water system (86 percent), infrastructure (71 percent), and Biyayang-Dagat (51 percent). They are also aware of the Kilusang Kabuhayan at Kaunlaran (KKK), Development Bank of the Philippines project (loans), and BLISS projects (housing) now being planned by town officials. Very few of these projects, however, were reported to have benefited the fishermen. Aside from the infrastructure program and water system, the rest of the projects accomplished very little in terms of direct benefits.

Attitudes Toward Government Projects

Sixty percent of the fishermen agree with the statement that for the most part, government programs and projects serve the interests of a few organized groups in business or labor and are not very concerned with the needs of the people like themselves. Around 74 percent also agree that the government has no right to do. These attitudes toward the government and its projects may stem from the fact that most of them have not received any benefits from government projects.

Organizational Participation

Majority of the fishermen (67 percent) are not members of any organization in the barrio. The most prevalent reason is the lack of time for such activities. Most of them said that they are too busy to attend meetings. When asked which organization they would like to join if given the chance to become members, most of them (60 percent) refrained from naming any. For those who are members of the organizations (33 percent), the average number of years of membership is three years. For the last six months, members reported having attended six meetings.

Out of the thirty-three fishermen who are members of *barangay* organizations, twenty-four hold no position other than as members. When asked to rate their participation, twenty of the fishermen (60 percent) perceive themselves to be very active members. They receive some forms of benefits, the most popular of which are social benefits followed by financial ones. The most popular organization in the barrio is the Kasakit Organization. This is an organizations that maintains a common fund from which its members may draw from in cases of death of a family member. The fund is maintained from contributions of its members. Problems commonly met in the organization are leadership and lack of cooperation. Its members believe, however, that constant follow-up of members who are less cooperative solves the problem.

Needs, Aspirations, and Perceptions

Considering the circumstances of their lives, fifty percent of the fishermen still maintain that they are happy about their life as a whole. Twenty-five percent said, however, that are a little less than happy. When asked about the ability of their families to satisfy wants and needs, 65 percent reveal “somewhere in between” (neither happy nor unhappy).

Eighty-two percent of the fishermen who have participated and are members of the existing organizations in the barangay say that they are happy about their participation. Only 17 percent have have ambivalent feelings about their membership. The same holds true when asked about the government-assisted projects. Ninety-six percent of those who have heard and are aware of the different government programs are happy about them. When asked if there was anything that they could do to improve their living, 84 percent of the fishermen answered positively. They also think that the government can do something to help improve their living conditions and to stimulate the economic and social progress of their barrio. There is a consensus among the majority of the fishermen that the government should lend money for their fishing activities without too many requirements on their part.

Five years ago, 91 percent of the fishermen believed that they were within the first and fifth rungs of the ladder (mean rung is 3 with a standard deviation of 1). At present, 84 percent still believe that they have not improved their lives. Five years from now, 74 percent see themselves in the same rung. The mean rung is, however, increased to four which reveals that some of the fishermen see themselves as improving their lives in the future. Most of the answers of those fishermen who remain in the same level, state as a reason their inability to cope with the increasing cost of living. As they said , “the time is getting worse that improvement of our lives is becoming impossible.”

The values considered in the survey and the corresponding rates by the respondents are as follows: “salvation” ranks first with 98 percent of the fishermen saying it is very important. This is followed by “self-respect” (91 percent), “family security” (89 percent),”comfortable life” (84 percent), “sense of accomplishment” (75 percent), and “social recognition” (72 percent). Seventy-nine percent of the fishermen desire that their children finish college and land a stable job. This is one of the reasons cited by the percentage of the respondents who hope to have an improvement of their lives in the future. It was said that even if they suffer now, their children must finish their studies in the near future. It will be their parent’s turn to rest.

Conclusion

This study was conducted to gather some baseline information on the socio-economic conditions of fishing villages in Eastern Mindanao. Four coastal Villages were chosen for the study based on the criteria set by the Research Committee.

Findings revealed that fishermen constitute one sector of the marginalized and impoverished Filipinos. They are poor in many aspects of their life — education, income, food, housing conditions, technology used, benefits received from the government, and even in their social life. The fishermen acknowledge and accept their poverty without so much complaint.

The respondents from the four villages differ in the degree of their poverty. There are the very poor, and the not so poor. The fishermen in Barangay 10 of Buenavista, Agusan come out the poorest, while those in Magsaysay, Parang, Maguindanao, relatively, are better off. The former’s mean annual income is P3,392.65, while the latter’s is P8,781.31. The factor behind the difference, seemingly, is the type of boat the fishermen own and use. The fishermen from Magsaysay own more powerful boats that can better withstand bad weather and travel great distances. They can travel to richer fishing grounds and suffer less from lean months. Consequently, they get a bigger annual catch which means more income. Since they earn more, they eat better food, possess more property, and enjoy a better life.

It was also found out that the poor fishermen go into credit more often in an effort to augment their income and obtain more capital. As a result, they are forced to sell their catch to the money lender who buys the fish at a much lower price than that in the market. Thus, the fishermen are deprived of better returns for their
fish.

The overall feeling among the fishermen of happiness and contentment made hide feelings of helplessness in the midst of poverty. Majority claim that they are contented with their food and housing conditions which are actually far from satisfactory. The fatalistic attitude results from a strong impression among them that they can not do anything anymore to improve their lot in life. Most of the fishermen look to salvation as their only reward after going through so much suffering here on earth. In contrast, the Magsaysay respondents who are better off consider family security of primary importance, which was rated only second to salvation by the poorer respondents from the other areas. The former conceive the education of their children as their hope of escape from poverty.

The fishermen from the four areas differ in their attitudes towards government programs. Bago Aplaya and Magsaysay fishermen were non-committal, while respondents from Kulungan and Barangay 10 looked negatively at government projects. These fishermen consider the seminars given on their behalf not helpful. Such attitudes toward the programs of the government could be due to the way the projects and assistance are planned out and given to fishermen without prior consultation with those who will be affected by them. Hence, these people are alienated from planners and implementors, and from the project as a whole.

The study’s Findings reveal that the problem of poverty among the fishermen is multi-faceted. Such has important implications for policy-makers and program planners. It points to a need for rethinking government programs and their development approach to this particular sector of the society.