Social Development and Management Program: Budget Allocation Challenge
Social Development and Management Program: Budget Allocation Challenge
Social Development and Management Program: Budget Allocation Challenge
Mechanics:
1. This challenge is open to anyone.
2. The goal of this challenge is to have an adequate and convincing consensus between
different stakeholders in an economy namely; industry (mining company),
government (local and national agencies), and society (community).
3. This activity is meant to simulate the planning and negotiation that take place in the
economy. Each stakeholder has what it wants, given the limitations, which will
certainly differ from another stakeholders’ demands.
4. Your job is not only to have an adequate allocation and program plan but, to agree
with your other stakeholders on the allocation and program plan that will make
everyone happy and satisfied. This would obviously result in some level of
compromise, negotiation, and resolution.
5. All participants shall be divided into two big groups, each group with 9 participants
each.
6. In each group, they will be further divided into three small groups with each
subgroup comprising of 3 members each representing industry, government, and
society.
7. The total allocated time of the activity is 1 hour.
8. Each subgroup will be given 20 minutes to propose their initial allocations
independent of the other subgroups.
9. After 20 minutes, all subgroups within a group will convene to hash out the final
allocation plan and subsequently create the proposal of their project plans, plans of
action, timelines, expected outcomes, etc.
10. The expected project plan, timeline, expected outcome, etc. should be presented in
a detailed, clear, and concise manner.
11. This will be presented after the Lunch break to an esteemed panel of judges
composed of industry experts, academe, and other practitioners.
12. The presentation for each group shall last for no more than 15 minutes.
13. Your presentation will be judged for 40% Quality of Projects and Allocation, 40% Feasibility
and Sustainability, and 20% Presentation Quality.
14. Each member in the winning team will receive a prize.
1
Brief Overview of the SDMP
The state of Philippine mining has been very much in the headlines the past few years
given many questions on its various externalities and benefits to the economy at large.
However, it remains to be a crucial sector of the Philippine economy responsible for the
employment of many Filipinos and their subsequent well-being.
One key government policy implemented in the country is in accordance with Republic
Act No. 7942 more commonly known as the Philippine Mining Act of 1995 is the Social
Development and Management Program or SDMP for short 1. This program is a
comprehensive and extensive five-year plan of the contractor authorizing the
commencement or continuance of mining operations contingent on the sustained
improvement of the living standards of the local communities and their subsequent
neighbors by enabling them to be responsible, self-reliant and capable of developing,
implementing and managing development programs in their communities. This was
revised twice which primarily concerned the implementing rules and regulations for the
SDMP found in the DENR Administrative Order 96-40, Chapter XIV Section 134 and
subsequently the DAO 2000-99.
Because of this key initiative, the state mandates operators of mining companies to take
part in the development and progression of their host communities and neighboring
communities. In essence, it shares similar objectives to corporate social responsibility, in
particular, to the pillar on contribution to sustainable economic growth, working with
stakeholders and the community.
Your Task
As a group, your job is to allocate the budget of the Mining Company for their SDMP
implementation program. To do this effectively, you must allocate the budget to meet the
goals of the SDMP to the highest degree. Bear in mind that your proposed allocation is
based on what you believe would be right. This will certainly differ from other
stakeholders in the economy (which may be the groups around you). Not only will you
create an allocation plan, but you would need to propose at least 3 major programs
which can help alleviate community concerns in line with the Sustainable Development
Goals.
1
The SDMP is in Chapter X of Republic Act No. 7942 which stipulates the duties of contractors in
the development of the local and neighboring mining communities and the promotion of the
general welfare of its inhabitants.
Things to Consider
1. The SDMP mandates that the total budget be equal to 1.5% of gross operating
expenses of a mining company. Of that 1.5%, 1.125% must be allocated to
community programs, 0.225% must be allocated to advancements in mining
technology and 0.150% must be allocated to education and communications
programs.
2. Any proposal is subject to the approval of the local government and the DENR.
3. The project implementation will span for 5 years. For simplicity, the budget
proposed shall be for the full 5 years.
The company has allocated a budget of Php 100,000,000 for all SDMP related
initiatives. Hence, this amount is 1.5% of their gross operating expenses. Bear in mind
that the budget is for all of the 5 years already. No budget increase is allowed.
You may freely divide the budget across the 5 years in a manner you see fit.
Narrative
There are a total of 1 host community and 8 neighboring communities that will be
served by the SDMP of the Mining Company. These communities are prone to natural
disasters especially typhoons as they are seemingly always hit when the typhoon
season comes. The mine has been in operation for 10 years, and based on company
projections, only 15 years are left until the mine closes its operations as it will be fully
exhausted by then. Hence, only three more iterations of the SDMP are left until the
mine will fully be closed. The local communities rely on mining jobs supplied by the
mining company, small scale farming and medium scale fishing activities, and other
small scale retail operations to garner income.
The following are some sentiments from the host and neighboring communities that
might help you in the decision of the allocation of the budget. These sentiments were
collected when the mining company conducted the survey.
Appendix
*Note: The components here need not be the components in your budget plan. Please try
and be more specific with your plans with a specific plan of action and an issue it is meant to
address
Policy Paper
20-17 16-13 12-9 8-5 4-1
Score
Presentation
was somewhat
Presentation was Presentation was
creative, informative and creative and creative and
was able to tackle all informative and was informative and Presentation was
Presentation
points of industry, able to tackle most was able to obvious but
Quality of was not
government and society. points. A decent tackle some efforts had been
Presentation creative nor
Consensus in the effort was made to points. A decent done to
(20%) informative.
decision was seen and incorporate effort was made incorporate
Limited
all plans of action were stakeholder to incorporate policies.
______ points were
easily understood. approaches. stakeholder Audience was
tackled.
Audience was listening Audience was approaches. aloof.
attentively. listening attentively. Audience was
listening
somewhat.
30-26 25-18 17-13 12-8 7-1
The project plans are The project plans are The project
feasible and can be feasible and can be The project plans plans are not
sustained over the five sustained over the are somewhat feasible and can
year period and five year period. feasible and can be cannot
Project evidence is shown that it There is some be sustained sustained over The project
Sustainability can be sustained for evidence of over the five year the five year plan is not
and Feasibility longer. There is no infeasibility with period. There is period. There is feasible.
(40%) evidence of infeasibility regards to the some evidence of some evidence Allocation is
with regards to the allocation. The infeasibility with infeasibility with insufficient
allocation. The allocation allocation follows the regards to the regards to the and does
follows the standards standards applicable allocation.. Some allocation.. Major not address
______ applicable by law in the by law in the SDMP. errors were made errors were any goal.
SDMP. No errors were Some errors were in computation made in
made in computation made in computation and allocation. computation and
and allocation. and allocation. allocation
40-35 34-25 24-15 14-7 6-1
The project plans
The project plans
The project plans address SDMP
address SDMP goals The project
Project Plans address SDMP goals and goals They are
SDG goals. They are and SDG goals. They practical will plans somewhat The project
of Action
creative, well thought of, are innovative and benefit most address SDMP plans fail
and Budget
innovative and practical. practical. They will stakeholders and goals They are address
Allocation
They will benefit all benefit most an agreement practical will SDMP goals.
(40%)
stakeholders and an stakeholders and an can be made for benefit some They fail to
agreement can be made agreement can be its stakeholders and address
for its implementation. made for its implementation. an agreement stakeholder
Plans are sufficient and implementation. Plans are can be made for concerns.
meet all law Plans are sufficient sufficient and its
______
requirements. and meet all law meet all law implementation.
requirements. requirements.