The impact of decentralization of human development: a closer look at Philippine provinces
Date
2008-03
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Abstract
The success of the country's decentralization program should be ultimately based on how well its policies improve public welfare- and quality of life. However, studies on decentralization in the Philippines have focused merely on its fiscal and budgetary aspects and have placed secondary consideration on the human development dimension. To fill this research gap, this study explores the effect of the decentralization program, enacted through' the Local Government Code (LGC) of 1991, on human development and quality of life. This study investigates the impact of the decentralization program on human development of 77 provinces by determining the effect of the internal revenue allotment (IRA), along with other factors, on the Human Development Index (HOI) using panel data regression analysis. Several dummy variables are included in the estimated model to account for the qualitative factors affecting HOI such as political party and dynasty. In general, this study finds evidence supporting the hypothesis that decentralization in the Philippines improved quality of life primarily through the resource channel. On the other hand, behavioral factors such as leader's interest and political affiliations and the extent of local elite influence also affect human development as manifested through the governance channel.
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Keywords
Public welfare, Human capital, Human development, Decentralization, Social welfare