Business Magazine

Beaten to the Punch

Posted on the 25 July 2011 by Center For International Private Enterprise @CIPEglobal
Beaten to the punch

Participants at the Manila expert roundtable (Photo: CIPE)

caught on tape

The mayor maintains that the mandatory provisions governing demolition policies were not followed and the sheriff has not yet filed a formal complaint against her so the legal outcome of the scuffle remains to be determined. But there is a broader significance to the problem that this case highlighted: the pervasiveness of informal property in the Philippines. People who live on untitled plots, or who squat on privately owned land, face resettlements and thus have little incentive and ability to invest in the land they live on.

RA 7279, or Urban Development and Housing Act of 1992, and the so-called Lina Law outline the bases for community consultation as well as the steps and rules of relocation. Yet, the laws fail to address the root causes of informal settlements and – while in theory are meant to protect the settlers – in practice they create “professional” squatters. At the same time, the practice of illegal settlements undermines legal property ownership, leading to confrontations such as the one in Davao.

As a part of the international property markets scorecard project, CIPE and the Institute for Solidarity in Asia (ISA), discussed this and other problems affecting urban property markets in the Philippines during July 12 expert roundtable held in Manila. Participants included banking, real estate, and SME experts as well as policymakers and representatives of relevant government agencies. The discussion was based on the international property markets scorecard approach and focused on challenges faced by small businesses in urban commercial markets and opportunities for reform. The challenge for the country is to look beyond the punching incident and think more broadly and systematically about property markets reform that would empower the poor, many of whom are SME owners, to gain secure land ownership to end the vicious cycle of demolitions and resettlements with no better job or life prospects.

Sara Duterte Carpio is now dubbed “The Puncher.” But reforming property markets requires more than punching your way through problems. Reforms need a systematic approach that examines which elements of those markets are not functioning well and how they can be improved.

The Philippines is one of the four countries where CIPE is working on this project with local partners, along with Armenia, Kenya, and China (roundtable upcoming).


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