San Isidro, Leyte Public Market: an Economic Impact Analysis

Chapter I: Introduction

Background of the Study

San Isidro is a 4th class municipality in the province of Leyte, Philippines. Its number of population as of 2011 according to the Local Governance Performance Management System (LGPMS) is 19, 655. San Isidro is politically subdivided into 19 barangays with a total land area (in has) of 14, 254.12. San Isidro’s economic activities lie on agriculture, fishery, commercial and service centers, industrial and mining.

As part of its economic activity, commercial and service centers, the public market of San Isidro is apparently operating as a dynamic factor in the progress of the town. Long before the ample changes of the market, there were only a few businesses providing for the primary needs of both household and government individuals. And as to the transitional alterations of the whole picture of the market, little by little, it boosts the capabilities of small and medium enterprises of the municipalities as it is being opened to them a way to increase productivity and cater social assistances in the form of goods or services.

Public Market is a market, in public spaces, where independent merchants can sell their products to the public. Typical products sold at public markets include fresh produce, baked goods, locally raised meats and dairy products and various other food items and handcrafted goods. Public markets often emphasize foods, clothing, and artisanal products reflective of the ethnicities in their respective regions. They can also serve as popular venues for public events and busking. Public markets are distinct from farmers’ markets in that they often feature imported goods.

That is why, I came up with the notion of creating a study as regards Public Market in San Isidro in a view of its history up to the present state. I am interested to its ability to help advance economic prosperity in the town.

Statement of the Problem

This research is designed to present and analyze the San Isidro, Leyte Public Market using an Economic Impact Analysis Approach.

Specifically, this research study aims to answer the following questions:

1.) What is the socio-economic profile of the municipality of San Isidro prior to the transitional changes of the Public Market?

2.) What are the socio-economic changes effected on the municipality of San Isidro as to the overall improvement of the Public Market in terms of the following?

a. LGU Perspectives

b. LGU Income

c. Local Business Registration

d. Socio-Economic Profile of Residents

3.) What is the impact of these socio-economic changes to the local economy of the municipality?

4.) What Local Development Policy and Strategy could be proposed to further improve the quality of the Public Market of San Isidro to attain a general socio-economic welfare?

Conceptual Framework

Figure1. Conceptual Framework of the Study
The conceptual framework of this study (Figure 1) traces the impact of Public Market to the local economy of San Isidro. The schematic diagram above represents the independent variable which is the public market that has corresponding effects on the dependent variables that include LGU perspectives, income of the local government, local business registration and socio-economic profile of the residents. The study is undertaken using an economic impact analysis approach. Economic impact analysis (EIA) examines the effect of a policy, program, project, activity or event on the economy of a given area. The area can range from a neighbourhood to the entire globe. Economic impact is usually measured in terms of changes in economic growth (output or value added) and associated changes in jobs (employment) and income (wages).

The analysis typically measures or estimates the level of economic activity occurring at a given time with the project or policy occurring, and calculating the difference from what would otherwise be expected if the project or policy did not occur (which is referred to as the counterfactual case). This analysis can be done either before or after the fact (ex ante or ex post). The term economic impact can be applied to analysis of the economic contribution of a given activity or industry to the existing local economy.

Significance of the Study

This research study was thought of with a humble desire to impart new avenues of facts and knowledge so valuable to the following: For the Local Government Unit of San Isidro. This study will strengthen the LGU’s framing of new policies and design programs that will enable progress in the municipality. The LGU can also become more acquainted and aware of its basic and fundamental role as facilitator of development since it gradually understands its function for the maintenance and sustainability of the public market.

For the Small and Medium Enterprises. This study will duly give insight on the privileges they can get in engaging into businesses, the rights to air out possible complaints or recommendations on the agreement with the local government in connection with their use of the public market.

For the residents. The study will help the residents of San Isidro understand the role of this public market in the incitement of their economic transactions in answering their needs and wants as sole consumers.

For the researcher. The study will enable the researcher to understand the concepts underlying public market and good governance. He or she will also be equipped with new knowledge and add up to existing facts new parcel of information he or she was able to find out.

Definition of Terms

The following terms are defined in the context of this study:

Public Market is a market, in public spaces, where independent merchants can sell their products to the public. Typical products sold at public markets include fresh produce, baked goods, locally raised meats and dairy products and various other food items and handcrafted goods. Public markets often emphasize foods, clothing, and artisanal products reflective of the ethnicities in their respective regions. They can also serve as popular venues for public events and busking. Public markets are distinct from farmers’ markets in that they often feature imported goods.

By and large, there must have been two or more people transacting with one another with the goal of satisfying their basic needs and wants.

Local Government is a form of public administration which in a majority of contexts, exists as the lowest tier of administration within a given state. The term is used to contrast with offices at state level, which are referred to as the central government, national government, or (where appropriate) federal government and also to supranational government which deals with governing institutions between states.

This reflects a government in a local level wherein offices of the national government appoints positions through elections to serve the people of different provinces, cities and municipalities.

Government revenue is revenue received by a government. Its opposite is government spending. Yet, governments coin money. Government revenue is an important part of fiscal policy. Revenue may be from taxation or non-tax revenue, such as revenue from government-owned corporations or sovereign wealth funds.

Income in this manner is synonymous with revenue. It is the earnings of the government through its run projects or through tax.

Ambulant is a vendor who does not occupy a definite or permanent place or stall in the market that comes to sell goods either daily or occasionally by sitting or moving place to place within the market premises.

A “vendor” shall mean a person who sells, commodities or foodstuffs, within the market premises.

Rental Fee means a charge fixed by law or agency, whether in money or otherwise, given for the enjoyment or use of a thing.

Local market authorities refer to the city/municipality Mayor, his duly appointed Market Administrator, the City/municipal Administrator, the city/municipal Treasurer, or any other city/municipal official charged with the management of the day to day operations of the public market and/or specific aspects of such operations.

Small and medium enterprise or small and medium-sized enterprise (SMEs, small and medium-sized businesses, SMBs and variations thereof) are companies whose personnel numbers fall below certain limits. The abbreviation “SME” is used in the European Union and by international organizations such as the World Bank, the United Nations and the World Trade Organization (WTO). In most economies, smaller enterprises outnumber large companies by a wide margin. SMEs are said to be responsible for driving innovation and competition in many economic sectors.

Chapter II: Related Literature and Studies

Related Literature

This chapter presents a discussion of the different literature and studies reviewed which the researcher consider relevant to the study.

In Section 17 of the Local Government Code, RA 7160, local government units shall exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate or incidental to efficient and effective provision of the basic services and facilities. Such basic services and facilities, include, for a barangay, satellite or public markets, where viable, and for both municipality and city, public markets. (Senate Bill No. 1319, Manny Villar)

Crucial to the country’s socio-economic progress is infrastructure development. Infrastructure lays down the foundation for creating an environment conducive to investment. It provides employment in the metropolitan area as well as in the countryside and affects the efficient delivery of basic services to the public. (Agency Profiles and Program Targets FY 1993, Republic of the Philippines)

The nature of governance will determine the availability and quality of public services and hence the extent to which the poor have access to them, (North 1991, 97).

According to Manny Villar in his Senate Bill No. 1390, “It need not be stressed that public markets are responsive and effective instruments of public service. They are also dynamic and viable enterprises which strengthen the financial capabilities of cities, municipalities, and even barangays. Thus, their significant contribution to both national and local development. For the full realization of their potential as such, there is a need for a law that will develop, regulate, and standardize market systems and professionalize market services in all public markets throughout the country, whether owned and managed by the government or by private groups and individuals. Thus, the attached bill which institutes a national market code for the Philippines. To attain the goal of clean and orderly marketplaces in every municipality, city, and where viable, barangay in the country, approval of the attached bill is respectfully urged”.

Related Studies

One of the most obvious, but perhaps least understood, methods of enhancing social integration in public spaces and encouraging upward mobility are public markets. Increasingly, community leaders and local government see public markets as a means of addressing some of the more vexing problems of our cities: the need to bring people of different ethnic groups and incomes together; the need to make inviting and safe public spaces; the need to reinvigorate low- and moderate-income neighborhoods and to support small-scale economic activity; the need to provide fresh, high-quality produce to inner-city residents; and the need to protect open space and preserve farming around cities.

This report summarizes the results of a six-month research effort where Project for Public Spaces, Inc. (PPS) in association with Partners for Liveable Communities(Partners), took a fresh look at the issue of public markets which serve low- and moderate-income, ethnically diverse communities. This research allowed us to address specifically how public markets enhance the potential for social integration in public spaces – attracting diverse income levels, ages, and ethnicities – and thereby create a sustainable vehicle for upward mobility and individual empowerment for low-income communities. For the purposes of this study, therefore, we defined a successful market as: one that succeeds in both its economic and social aspects and can sustain both over the long term. (Phase I Report: An Overview of Existing Programs and Assessment of Opportunities)

It is well documented that the venture capital industry is highly volatile and that much of this volatility is associated with shifting valuations and activity in public equity markets. This paper examines how changes in public market signals affected venture capital investing between 1975 and 1998. We find that venture capitalists with the most industry experience increase their investments the most when public market signals become more favourable. Their reaction to an increase is greater than the reaction of venture capital organizations with relatively little industry experience and those with considerable experience but in other industries. The increase in investment rates does not affect the success of these transactions adversely to a significant extent. These findings are consistent with the view that venture capitalists rationally respond to attractive investment opportunities signalled by public market shifts. (Paul Gompers, Anna Kovner, Josh Lerner, and David Scharfstein)