CEBU Province and Cebu City both fared well in the latest financial report on local governments.
With its net worth of P28.53 billion, Cebu Province topped the list of the country’s richest provinces. Cebu City, with a net worth of P8.12 billion as of 2015, landed in the top five of the richest cities list. All four other cities in the top five are in Metro Manila. About P8 billion separates Cebu City from the fourth richest on the list, Manila itself.
The Commission on Audit’s (COA) annual list, now reportedly pending with the Office of the President, provides a quick look at the cities and provinces with the healthiest bottom lines. One reason for this annual exercise could be to encourage poorer but ambitious local governments to figure out how those on the richest lists grew their assets, trimmed waste and provided public goods and services without going into crippling debt.
Making it to the lists, however, shouldn’t be seen as the end goal for local governments. A local government that keeps its net worth high by avoiding long-term debt isn’t necessarily the best at using its resources, which is a common misconception.
One thing that constituents need to know is how well their local governments are setting priorities and how creatively they’ve found solutions not just to familiar problems, but also emerging ones.
The city or province that keeps the roads good and safe, creates an environment that attracts investments, and supports public education and health services isn’t doing enough. It also needs to be investing in the people, facilities and training it needs to face such challenges as extreme weather, persistent inequality despite economic growth, and the threat of terrorism.
The dance that local and national governments have spent decades trying to learn is a difficult one. A strong national leadership needs to define its development plans clearly, and provide the incentives for local governments to align themselves with its goals. But at the same time, the national leadership needs to give local governments the space and fair share of resources they need to fix problems independently. For that to happen, it will need to do more than provide a richest and poorest list.