One of my favorite authors and speakers is Fr. Ed de la Torre, a former Director General of the Technical Education and Skills Development Authority. As a sociologist, development worker, and political analyst, he excels at clarifying complex ideas, presenting them in easily understandable terms, and most notably, injecting humor into otherwise dull topics. His unique ability to make sense of the nonsensical and distill abstract concepts is what truly distinguishes him. He consistently impresses, as he did last April 22, in the GP@30 Forum at the Asian Institute of Management where, during a gloomy situation analysis, he spoke and likened Philippine events to a Netflix series. With a spark of hope, he inspired everyone to actively participate in ‘co-writing the third season’ by improving local governance.
To further improve local governance, he injected the idea of redefining “demand” — a concept that takes on diverse meanings across different disciplines. In economics, demand pertains to the willingness and ability of consumers to purchase goods and services at different price points, balanced by the willingness of sellers to supply these goods and services. This concept is fundamental in the study of market behaviors and is depicted graphically through the demand curve, which typically slopes downward, reflecting an inverse relationship between price and quantity demanded. Key factors influencing demand include income levels, consumer preferences, and prices of related goods.
Demand in Governance: From Voice to Responsibility
In governance, ‘demand’ typically signifies increased citizen participation and influence within decision-making processes, often measured by public engagement indicators such as participation in consultations and the responsiveness of leaders to community needs. This underpins the principle of “demand-driven governance,” aiming to create an inclusive, efficient system that addresses community priorities and enhances societal well-being.
However, ‘demand’ in governance should transcend ‘voice’ and ‘participation.’ While the Local Government Code of 1991 mandates participation, it should also embrace ‘responsibility,’ where constituents are actively involved, without being told, in co-analyzing situations, prioritizing, and funding solutions. This deepens their engagement and mirrors the economic ‘willingness to pay,’ moving beyond mere compliance with participation requirements to a more meaningful involvement.
Integrating Economic Insights into Governance Practices
Understanding demand in both economic and governance contexts underscores the need for governance that is both responsive and adaptive. Policymakers can take several steps to better integrate these concepts:
Enhanced Transparency and Data Sharing: Transparency in governance, much like market transparency, leads to better-informed citizens who are more engaged and satisfied. By making data freely available and understandable, governments can foster an environment of trust and informed participation.
Regular Feedback Mechanisms: Structured feedback systems akin to market research are essential in tailoring public services to citizen needs. These mechanisms must be clear, transparent, and focus on relevant indicators. A prime example of the need for such systems is the apparent disconnect between the high trust and satisfaction ratings of Sara Duterte as Vice President and Education Secretary, contrasted with the Philippines’ subpar performance in international education assessments. This discrepancy highlights the gap between perceived satisfaction and actual performance, emphasizing the need for feedback systems that reflect true public sentiment and the effectiveness of governance.
Policy Flexibility: Just as businesses must adapt to changing market demands, governments should also remain flexible, adjusting policies to meet emerging needs swiftly and effectively.
Accountability: In the marketplace, consumers influence product offerings through their purchasing decisions. Similarly, governance should enable dissatisfied constituents to hold officials accountable, advocating for changes that better address public demands. This process of accountability ensures that governance remains dynamic, participatory, and responsive to the evolving needs of its citizens.”
These strategies are aimed at creating a governance system that not only listens to its constituents but actively involves them in the decision-making process, ensuring that their voices lead to tangible changes and improvements.
Conclusion
The concept of demand, while originating in economics, offers valuable insights into improving governance. By adopting a demand-driven approach to public service delivery, governments can enhance not only the efficiency and effectiveness of their operations but also the satisfaction and trust of their constituents. Furthermore, elevating this demand-driven approach could enable a more equitable distribution of resources, ensuring that services not only respond to the voices of the most vocal or privileged but also reach underrepresented and marginalized groups. This evolution from responsiveness to inclusivity can help bridge gaps in access and opportunity, creating a governance system that truly reflects the diverse needs of its entire populace.
Polevu 