1. Christopher T. Pablo Senior Urban Development Specialist World Bank
Municipal Performance Measurement: A Tool to Create Equity and Inclusiveness THE PHILIPPINE CASE
Christopher T. Pablo
Senior Urban Development Specialist
World Bank

2. Setting the Context
Despite a long history of decentralization, local governments still depend largely on fiscal transfers
Categories of Local Government Units (LGUs)
Provinces
Cities
Municipalities
Barangays

3. Tools for Measuring Performance
Local Government Performance Management System (LGPMS)
Seal of Good Housekeeping (SGH)
Galing Pook Award

4. Local Governance Performance Management System (LGPMS): From Measurement to Performance Management.
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Self-assessment, management & development tool on local government performance in the delivery of essential public services
Web-based information system on the state of local governance performance and the state of local development, using governance and development indicators
LGPMS is not a Performance Measurement but a Performance Management tool as it helps identify development gaps and further guides LGUs to develop executive and legislative actions to address such gaps.
spearheaded by DILG through the Bureau of Local Government Supervision
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5. LGPMS Framework Version 1 Version 2 Input-Output-Outcome Relationship
Local Governance Management Performance
State of Local Governance Performance
Input
Output
State of Local Development
Outcome
Version 2
Input-Output-Outcome Relationship
There are 2 versions of LGPMS: Version 1 and Version 2
Version 1
– founded on input-output-outcome indicator relationship in determining the performance of a particular LGU. HOWEVER, the outcome indicators cannot be solely attributed to the performance of LGUs since there are many players and factors that influence the state of development of a particular locality
Version 2
- the revised framework looks into the state of local governance which is measured using governance indicators, either input or output, and the state of local development which is measured using development or outcome indicators.
- distinction was made to emphasize that governance indicators are based on the LGU’s key responsibilities (LGU has direct control of) and that development indicators are not necessarily within the control of LGU.
Information on the state of local governance performance and the state of local development are equally important inputs in managing LGU performance in local governance.
The latest LGPMS version 2 includes the integration of the LGU Scorecard on Health designed by the DOH and the Local Tourism Statistics, developed by the DOT to the LGPMS.
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6. LGPMS Indicator Structure
Governance Indicators Cluster
Development Indicators Cluster
Performance Areas
Service Area
1. Administrative Governance
Local Legislation
Development Planning
Revenue Generation
Resource Allocation and Utilization
Customer Service
Resource Management & Development
2. Social Governance
Health Service
Support to Education
Support to Housing & Basic Utilities
Peace, Security and Disaster Risk Management
3. Economic Governance
Support to Agriculture Sector
Support to Fishery Services
Entrepreneurship, Business and Industry Promotion
4. Environmental Governance
Forest Ecosystem Management
Freshwater Ecosystem Management
Coastal Marine Ecosystem Management
Urban Ecosystem Management
5. Valuing Fundamentals of Good Governance
Transparency
Participation
Financial Accountability
Development Sector
Development Sub-Sector
1. Social Development
State of Health & Nutrition
State of Education
State of Housing & Basic Utilities
Peace and Order Condition
2. Economic Development
State of Income
State of Employment
3. Environmental Development
State of Agricultural Ecosystem
State of Forest Ecosystem
State of Coastal Marine Ecosystem
State of Freshwater Ecosystem
State of Urban Ecosystem
Governance Indicators are collected and reported ANNUALLY
Development Indicators are collected and reported EVERY 3 YEARS
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7. Source: http://www.blgs.gov.ph/lgpms
LGPMS Scaling System
Performance Scale 5 4 3 2 1
Excellent
High but not Excellent
Fair
Low
Very Low
Development Index 5 4 3 2 1
Very High
High
Fair
Poor
Bad
A 5-point scale is applied
The scale do not use equal distribution of intervals as applied ins statistical operation but use uneven class breaks in order to highlight issues
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8. Electronic Reports generated by LGPMS
LGU Profile
State of Local Governance Performance Report (SLGPR)
E-SLGPR Summary includes Year, Summary Type (National, Regional, Province) and Regional Name
Financial Performance
State of Local Development Report (SLDR)
E-SLDR Summary
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9. Source: http://www.blgs.gov.ph/lgpms
Sample Reports
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10. Source: http://www.blgs.gov.ph/lgpms
Sample Reports
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11. Uses of LGPMS information
In planning and budgeting
In identifying areas for training & institutional strengthening
As inputs to project proposals
In performance monitoring (LGU Performance and State of Development)
In public reporting on government programs
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Source: Annual Report 2011, BLGS
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12. Seal of Good Housekeeping (SGH)
Raises the bar in measuring LGU performance monitoring
A tool for good governance, accountability, honesty and transparency
Rewards performance with grants for development projects (Performance Challenge Fund)
Requirement to access loans
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The assessment also focused on the areas on good planning, sound fiscal management, valuing of performance information, and general impressions on the local government.
aims to raise the bar of measuring the performance of LGUs because those that wave banners of excellence are magnets of business and progress
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13. Requirements for the Seal of Good Housekeeping
Compliance with the full disclosure policy of DILG
No adverse reports from Commission on Audits
Compliance with the Anti-Red Tape Act
Adoption of Comprehensive Development Plan
Above benchmark performance in the LGPMS
Source: Annual Report 2011, BLGS
The raising of the standards would eventually translate to more investments, innovation and growth. Aside from the improved SGH, the DILG is also expanding its business permits and licensing system program to support LGUs that rely on tourism for local growth and development.
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14. Performance Challenge Fund (PCF)
An incentive system for local governments excelling good local governance performance
Helps stimulate local governments to put premium on transparency and accountability
Fund Allocation
As subsidy for the 1st to 3rd class LGU
Province – Php7M (US$ 166T)
City – Php3M (US$ 71T)
Municipality – Php1M (US$ 24T)
As incentive to the 2012 Gawad Pamana ng Lahi Regional awardees
Province – Php3M (US$ 71T)
City – Php2M (US$ 47T)
As incentive to the 2012 Gawad Pamana ng Lahi National awardees
Php5M (US$ 118T) for each province, city and municipality
Source: DILG, Memorandum Circular on Scaled-up Seal of Good Housekeeping, April 2012
Source: DILG, Memorandum Circular on Scaled-up Seal of Good Housekeeping, April 2012
PCF – recognizes LGU exhibiting exemplary performance in internal housekeeping particularly in the areas of planning, fiscal management, transparency and accountability and valuing performance monitoring (LGPMS)

15. Galing Pook Award Private awards program
Recognizes best and innovative practices
Promotes adoption of good practices across the country
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Eligibility
For the LG program to be considered for the Galing Pook Awards, it must meet the following minimum requirements:
It must have involved or engaged processes within a local government unit (barangay, municipality, city, or province) even if the program might have been initiated (either independently or jointly) by an NGO, CSO and/or an LGU.
It must have been in operation for at least one (1) year before the deadline of submission.
It must have verifiable and significant results.
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16. Looking forward….
CSOs/People’s Organizations to become active partners in the validation of LGPMS and Performance Challenge Fund results
Performance-based grants still relatively new and still to be tested
Broader reform needed of fiscal transfer system to incentivize improved LGU performance (e.g., performance criterion in the Internal Revenue Allotment formula)
LGPMs is self-reporting

17. Thank you! http://swotti.starmedia.com/cities/manila_18733.htm
Manila, Philippines
Mr. Christopher T. Pablo
Senior Urban Development Specialist
Sustainable Development Department - Philippines
The World Bank - East Asia and the Pacific Region