Course Code and Title: 10 BACR3 Good Governance and Social Responsibility

Lesson Number: 10

Topic 11: Executing Public Policy with Strategic Management and Benchmarking

Professor: Soledad S. Escritor J.D.

This module categorizes the many sectors od society that influence government
policy. Public opinion puts significant pressure on government’s policy direction.
Government acts on them by executing preventive or corrective measures which
enhances the image and acceptability of a bureaucrat or administrator in power. Interest
groups bring forth heavy stress on the government which compels it to act or not to act
on certain policy concern. Religious organizations in the Philippines can change or
unseat a government in power. Leaders and politicians would discover ways to lure the
religious sector by acting / behaving in a manner consistent with thrit pronouncements
and preferences.

Learning Objectives:

At the end of the lesson, the student should be able to:

1. Identify issues which are addressed by public policy including its components.
2. Translate the factors which trigger policy making process into concrete project by
giving examples.
3. Interpret strategic management and benchmarking approaches to good
governance

Pre-assessment: Sentence Completion: Fill the blank with the correct word/s to
complete the statement.

A. The public sector is 1) ________than the private sector in embracing strategic

management notions. The reason is because they are focused on their 2) _____
assigned by 3) _______.Strategic management is the 4) _________application
of military arts and science to the contemporary business and public
administration toward the attainment of 5) _____________ and goals.

Words to choose from:

law objectives modern duties slower

Lesson Presentation:

Public policy is a course of action which a government adopts to tackle specific

public concern or issue. They do it in the form of regulation, laws, programs or
decisions. Policy guides individuals and groups towards a desired outcome.

A problem is a particular apprehension that often requires specific solution. The

players refer to the actors or group of actors that design specific formula to tackle the
issue at hand while policy is the finished course of action ready for implementation.
Execution is carried out by the government and in some cases by cultural institutions,
religious formation or any authorized group including the private sector and to a given
extent the civil society as well.

Generally, public opinion is advanced through lobby groups, survey studies or

media exposure/mileage, thus, influencing a plan of action (or inaction) on the part of
the government. The policymaking process revolves within several factors which trigger
agenda initiation, government formulation and implementation, and policy evaluation. In
agenda or policy setting, government agencies and officials usually meet to discuss the
component problem, and then, formulate specific but responsive course of actions,
then, implementation consistently. The success or failure is determined through policy
evaluation. Every policy designed for public purpose aims to bring about solvency and
normalcy to the situation once jeopardized. The success of policy implementation is
largely dependent on policy implementers. This is the stage of policy process which is
regarded as the common cause of policy defeat and eventual failure. What are the
steps involved? First is initiation, formulation, implementation and evaluation.

People look at the government not only as an institution to which they render
obedience. It does, not only as an agency that formulates and expresses their will and
protects their interests. They see government as ultimately responsible for the
promotion and advancement of peoples’ welfare. It is designed to service the people’s
needs from womb to tomb, so to speak.

Policymaking Process

Policy process relates to the mechanisms through which public government policy
is made. Policymaking is a process in two aspects: First, it involves a linked series of
actions or events. It commences with the germination of ideas and the initiation of
proposals continues with some form of debate, analysis and evaluation; and concludes
with the making of formal decisions and their implementation through designated action.
Policymaking therefore, is similar to the process of digestion in the human body; it links
certain “inputs” to particular “outputs.” Second, it is a process in the sense that it
distinguishes the “how” of the government from the “what” of government. It focuses on
the way in which policy is made (product). Ultimately, policy can be evaluated only in
the light of its impact, according to “what actually happens”

Political Environment: The Public Policymaking Process

A Framework for Policymaking Process

Policy Initiation / Agenda Setting

Initiation refers to the making of decisions in a certain aspect where policy

initiation determines the political agenda through identification of emerging problems as
issues of relevance and by determining how those significant matters are to be
responded to by the government. Agenda setting is the process by which ideas or
issues bubble up through the various political channels to wind up for consideration by a
political institution such as a legislator or court. The agenda setting process often makes
extensive use of the mass media, through publicity; expand the numbers of people who
care about the issue so that an institution is forced to take some action. For example,
why did the Philippines take public ownership of most companies in the 1970s and then,
sell them out to the private sector in the early 1990s? This is a question of policy
initiation about the decision to control state ownership and later on privatize them.

On one side, policy initiation may originate from any part of the political system. It
can be influenced from top leaders, state bureaucrats or lawmakers, or “from above.”
On the other side, policy can be influenced “from below” like interest groups, political
parties, the mass media, and so forth. In the form of policy “from above,” policy initiation
views to stir support from the omnipotent vision of a leader or from the ideological
perspective of a ruling party or group. They are called transformational leaders who
have the outside capability to carry out a major structural change in the society like
Marcos of the Philippines for his New Society campaign during the 1970s. We can also
include three (3) forces that influence policy initiation like the media, science and
technology. The media influence policy initiation through press releases either in print or
in broadcast. They have the capability to cause public panic, outcry or agitate situation.
Science is also influential, the current concern on environmental issues and global
warming effects rest primarily on scientific assessments of their future implications and
from there, policy initiatives towards the protection of the planet and its citizens may
come in many forms. Technological innovations in management can persuade better
governance of public administration like the adoption of e-Government system around
the world. Political leaders propagate the ideological or leadership thrusts to the public
coming from the advices of their political think-tanks or from various theories and
philosophies of practical politics.
 The Agenda Setting Process

Policy Formulation

Policy formulation is the job for government officials, politicians, consulted groups
and key advisers. Once an issue is determined to exist, a more careful and planned
collaboration takes place. Policy formulation is the conceptualization stage of policy
process where the detailed development of a policy is framed into more or less concrete
proposals.

Policy Implementation

Implementation is the process of putting the government policy into effect; it is the
total process of translating a legal mandate, an executive order or an enacted statute
into appropriate program, directives and structure that provide services or create goods.
Implementation is the doing part of public administration. It is called the policy execution
meaning putting out the policy into practice. Putting policy into practice is a technical
matter of administration. It is the most problematic area. Certain degree of flexibility
should be adopted to respond to changing circumstances, but flexibility too, breeds
potential drawback. There are certain conditions required in order to achieve perfect
implementation; ensuring that policy is delivered exactly as intended: a) unitary
administrative system with a single line of authority to ensure central control; b) uniform
norms and rules that operate through the system; c) perfect obedience or perfect
control; d) perfect information, perfect communication and perfect coordination; and e)
sufficient time for administrative resources to be modified.

Policy Evaluation:

Policy evaluation appraises outcomes of a policy as implemented; meaning what

the government achieves. How did the policy affect the lives of the stakeholders or
beneficiaries? Policy outcomes should be contrasted within the inputs employed; what
the government does from what it attains. Yet, it is undisputable that the outcomes of
the policy process are often very strange from what was originally intended by those
who formulated policy actions and decisions. The standard criteria for evaluating a
policy or a government program are the concepts of efficiency and effectiveness which
are the traditional ethos of public administration. An evaluation is an assessment; the
systematic examination of activities undertaken by the government to make a
determination about their effects both for the short-term and long-term.

Policy evaluation is the appraisal or review of a policy being implemented as to its

success or failure. Policy appraisal is the culmination of a course of action, which will
result in a decision whether it will be continued, altered or terminated. It completes the
policy process in that the result or the information acquired by means of evaluation can
be fed back into the initial and formulation cycles. This system of review can build up
policy direction and can help refine or improve present policies. Without this
mechanism, the government will almost always fail to learn from its experience.

Strategic Management and Benchmarking Approaches

Strategic management is basically taken from a military strategy of operation

through tactical planning and systematic execution. The idea and philosophy of war and
war plans can highly be effective in management approach of the business sector that
is mission-oriented and goals-driven organization in the administration of public affairs
in the government.

Benchmarking is a dramatic and ambitious management approach to compare /

contrast successful organizational endeavors. Benchmarking offers new meaning in
governance as it tries to look into BEST PRACTICES of other government entities, as to
how they operationally work successfully, enticing a unique and more effective
governance framework demonstrated in some parts of the world.

Defining Strategic Management Approach

In a business organization, strategic management integrates the activities of the

various functional sectors of a business (production, marketing, human resources,
promotion and many more) to achieve organizational goals. It is generally the “highest
level of managerial activity, usually initiated by the board of directors and executed by
the firm’s chief executive officer (CEO) and executive team.

Strategic management is the art and science of formulating, implementing, and

evaluating cross-functional decisions that will enable an organization to achieve its
objectives. It involves the systematic identification of specifying the firm’s objectives,
nurturing policies and strategies to achieve these objectives and acquiring and making
these resources available to implement the policies and strategies to achieve the firm’s
objectives. Strategic management is an ongoing process that assesses the businesses
and industries in which the company is involved; assesses its competitors and sets
goals and strategies to meet all existing and potential competitors. It reassesses its
strategy regularly to determine how it has been implemented and whether it has
succeeded or needs replacement by a new strategy to meet changed environment, new
technology, new competitors and new economic environment or a new social, financial
or political environment.

Adopting Strategic Management Approach in the Public Sector

The public sector is slower than the private sector in embracing strategic
management notions. It is because public administrators are expected to focus not on
their objectives – what they were trying to achieve – but on their functions and
responsibilities - that is, the duties assigned to them by law. Public administration is
traditionally defined as the implementation of public policy – that is – the law. Strategic
management is the modern application of military arts and science to the contemporary
business and public administration through tactical employment of resources toward the
attainment of an avowed objectives or goals. The public sector should realize that in
order to be competitive and successful in its endeavors, it must review its strength,
weaknesses, opportunities and threats (SWOTS) for this technique is widely used to
examine the viability of strategic planning. Failure of a public policy may be reviewed
well in the context of strategic management, and also within the benchmarking
framework.

Benchmarking the Best Practices

Benchmarking systematically compares work processes with those of competitors

or with best practices in the industry. Where public and private sector organizations are
able to compete with one another on a “level playing field” – that is, under
circumstances where regulatory control, policy latitude, and other key determinants are
impartial (ceteris paribus) meaning everything else is equal – public sector
organizations often compare well with private sector counterparts, i.e. airline industry,
banking industry. It proves that competition is a more important pre-condition of
organizational efficiency than ownership as such.
Three Modalities of Benchmarking: Ways to Spot an Organization’s Best Practices
Benchmarking Some Best Practices in Philippine Governance

Best Practices, as defined, is “a technique, method or process or reward that is

believed to be more effective at delivering a particular outcome than any other
technique, method or process. It can also be defined as the most efficient (least amount
of effort) and effective (best results) way of accomplishing a task, based on repeatable
procedures that have proven themselves overtime for large numbers of people.
Therefore, the term “best practices” refers to those practices that have produced
outstanding results in another situation and that could be adopted for our situation.

Generalization:

The 1987 Constitution ensures the role of the National Economic and Development
Authority (NEDA) in our economy especially Art. X11, Sec. 9. NEDA serves as the
national and regional development plan and program coordinator based on Presidential
Decrees. It is tasked with the coordination of official development assistance and the
appraisal of programs and projects and conducts program and project-evaluation and
on-site reviews and consultations. On the basis of its mandate, NEDA is also well-
positioned to provide an economy-wide perspective. It is the only agency which has a
whole-of-economy outlook, and is well-placed to install institutional strategies that can
improve the country’s microeconomic policy structure. It can act as chief economic
advisor to the executive, and be an effective coordinating body.

Evaluation / Activity:

1. Select and point out an example of Best Practices in Philippine Governance in

these different fields:
a) Urban Planning
b) Health Program
c) Socialized Housing
d) Livelihood Program
e) Resettlement Program

References: Principles and Practices of Public administration by Ricardo S. Lazo, First

Edition, Rex Book Store, Inc. Copyright 2011

Course Code and Title: BACR3 Good Governance and Social Responsibility

Lesson Number: 11

Topic 11: Dealing with Public Fiscal Administration and Performance Mechanism

Professor: Soledad S. Escritor J.D.

This module introduces the system of government expenditures and revenue

administration. Fiscal policies manage all financial resources like budgeting, revenue
collection, accounting and systemizing. All these processes relate for the developmental
goals of the public sector.

Learning Objectives:

At the end of the lesson, the student should be able to:

1. Relate the level of exploitation of the country’s resources as a product of

centuries’ long imperialism and colonialism.
2. Assess the integrity of fiscal procedures which limit corruption and diversion of
the country’s financial resources.
3. Design standards and codes to improve accountability and credibility of policies
and reduce the vulnerability to crises.

Pre-Assessment: Sentence Completion: Fill the blank with the proper word/s to
complete the statement.

A. The 1) __________of the country’s resources led to the 2) ________________of

the Philippines aggravated by wrong or 3) _____________political leadership
that followed suit. Nowadays, a bold image of 4) _______________________and
5) ______________must be gained especially in the Third world such as ours.

Words to choose from:

transparency exploitation dictatorial accountability underdevelopment

Lesson Presentation:

Fiscal policies are programs of action involving the system of government

expenditures and revenue administration. A certain level of development must be
achieved. Most underdeveloped economies like ours were products of long imperialism
and colonialism. Such exploitation of states’ resources led to the theory of
underdevelopment which were further aggravated by wrong or dictatorial political
leadership that followed suit.
 Hence, third world countries need to gain momentum and assume bold image of
accountability and transparency in the field of tax generation, collection and
administration to resource distribution, public expenditures and management of public
debts. Fiscal management commences from income generation for the public sector
particularly in the form of tax revenues. Revenues are important component of the
economy to exist, and without collection there would be nothing to administer or
manage.

Fiscal Transparency

Fiscal transparency relates to being open to public scrutiny and transparency is a

direct measure for institutional quality. Public fiscal information must be accessible for
the budget information and execution to limit corruption and diversion and therefore,
facilitates development and increase in living status. Fiscal transparency is a requisite of
a well-functioning public sector. Initiating such would strengthen institutions and
promote good governance. The development of international standards and codes in 12
areas such as accounting, anti-money laundering, auditing, banking, corporate
governance, dissemination of data, fiscal transparency, insolvency and creditors’ rights,
insurance regulation, monetary and financial transparency policies, payments systems
and securities market regulations must be accelerated. Likewise, these 12 areas cover
three (3) main categories namely:

1) Transparency standards (data, fiscal, monetary and financial policy

transparency);
2) Financial sector (banking supervision, securities, insurance, payments systems
and anti-money laundering);
3) Market integrity for the corporate sector (corporate governance, accounting,
auditing and insolvency and creditors’ rights).

The world Bank (WB) and the International Monetary Fund (IMF) initiated the Code on
Good Practices on Fiscal Transparency (CGPFT) in the late 1990s that provided four
principles of the code to wit:

1. Clarity of roles and responsibility of the government;

2. Public availability of information;
3. Open budget preparation, execution and reporting; and
4. Assurances of integrity (accountability).
Fiscal Accountability

Former Chairman of the Commission of Audit (COA) Francisco S. Tantuico, Jr. of

the Philippines viewed public accountability as: “Public accountability is the foundation
of integrity. It cuts t6o the soul of government. It unmasks the government of the day of
whatever façade it wears”. The Philippine Constitution describes public accountability
as:
Public office is a public trust. Public officers and employees must at all
Times be accountable to the people, serve them with utmost responsibility,
Integrity, loyalty and efficiency, act with patriotism and justice and lead
modest lives”.

Former Dean of the National College of Public administration and Governance of the
University of the Philippines defines accountability as: …..”the evolution of the actions.
It may be promoted through the imposition of external control and through the
inculcation of self-regulating values.” She identifies the different levels of administrative
accountability as:
1. Traditional accountability which focuses on the regularity of fiscal transaction
and faithful compliance as well as the adherence to legal requirements and
administrative policies;
2. Managerial accountability which is concerned with efficiency and economy in
the use of funds, property, manpower, and other resources;
3. Program accountability which pays attention to the results of government
operations; and
4. Process accountability which emphasizes procedures and methods of
operations.

Professor Briones further added that public financial accountability is promoted primarily
through the conduct of regular audits. Traditional audits include legal and compliance
audit.

Fiscal trends

The use of government spending and revenue collection to influence a country’s

economy is called fiscal policy. Knowing a country’s fiscal performance is not only
important whether its economy is doing well but also on how the government obtains
and makes use of its budget. One fiscal report said: where a government corruption
exceeds its budget, government suffers from budget deficit. When there is deficit, the
government resorts to borrowing to finance for the excessive spending. A balanced
budget is ideal in that it ensures the public that the government is able to maximize all
its resources and that there is zero surplus or deficit. This still depends on how the
government distributed its budget among different sectors of the economy. The issues
regarding the increasing government debts have always been a major concern in the
growth and development of our country’s economy. Just like the other underdeveloped
economies, the Philippines are also confronted with declining revenues and increasing
budget deficit. The government is trying to minimize its fiscal resources through limited
government spending and key fiscal and economic reforms.

Generalization:

The government has drafted a fiscal responsibility bill that proposes a prudent
debt and expenditure management strategy. This bill will impose a debt cap (as a
percentage of gross domestic product GNP) to reduce the consolidated non-financial
public sector and national government debt to manageable levels to provide for a three-
year Executive-Legislative-Medium-Term Fiscal Accord which should improve
predictability of funding for priority government programs. The government has
approved that proceeds from the VAT reform will be used primarily for debt reduction.
The government is more vigorously monitoring and managing its contingent liabilities,
including those related to the public pension funds and through better control over
issuance of guarantees. A Debt and Risk Management Office is being established in the
Department of Finance (DOF).

Evaluation / Activity:

1. Clip two (2) newspaper updates related to corrupt practices performed by civil
servants. Suggest ways to limit if not totally eradicate corruption and diversion of
the country’s financial resources. 10 %

References: Principles and Practices of Public administration in the Philippines by

Ricardo S. Lazo, First Edition, Rex Book Store, 2011