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Philippines Development Plan
Part I: Introduction
Chapter 1:The Long View
Chapter 2:Global and Regional Trends and Prospects
Chapter 3:Overlay of Economic Growth, Demographic Trends, and Physical Characteristics
Chapter 4: Philippine Development Plan 2017-2022 Overall Framework
Part II: Enhancing the Social Fabric ("Malasakit")
Chapter 5: Ensuring People-Centered, Clean, and Efficient Governance
Chapter 6:Pursuing Swift and Fair Administration of Justice
Chapter 7:Promoting Philippine Culture and Values
Part III: Inequality-Reducing Transformation ("Pagbabago")
Chapter 8:Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries
Chapter 9:Expanding Economic Opportunities in Industry and Services through Trabahoand Negosyo
Chapter 10: Accelerating Human Capital Development
Chapter 11:Reducing Vulnerability of Individuals and Families
Chapter 12: Building Safe and Secure Communities
Part IV: Increasing Growth Potential ("Patuloy na Pag-unlad")
Chapter 13:Reaching for the Demographic Dividend
Chapter 14: Vigorously Advancing Science, Technology, and Innovation
Part V: Enabling and Supportive Economic Environment
Chapter 15: Ensuring Sound Macroeconomic Policy
Chapter 16:Leveling the Playing Field through a National Competition Policy
Part VI: Foundations for Sustainable Development
Chapter 17: Attaining Just and Lasting Peace
Chapter 18:Ensuring Security, Public Order, and Safety
Chapter 19:Accelerating Infrastructure Development
Chapter 20: Ensuring Ecological Integrity, Clean and Healthy Environment
Part VII: From Plan to Action
Chapter 21:Plan Implementation and Monitoring
The Long View
The Philippines by 2040: matatag, maginhawa, at panatag na buhay. The country is a prosperous middle class society where no one is poor. People live long and healthy lives and are smart and innovative. The Philippines is a high-trust society where families thrive in vibrant, culturally diverse, and resilient communities.
AmBisyon Natin 2040
Since embarking on a program of inclusive growth and poverty reduction under the Philippine Development Plan 2011-2016, the Philippines has gradually transformed from being the economic laggard in Asia to one of the region’s best-performing economies.
Sustaining growth at the rate of 6.3 percent during the previous plan period, the economy is now clearly on a higher growth trajectory. Strong macroeconomic fundamentals have steeled it against disruptions caused by natural calamities and the global business cycle. The larger fiscal space created has enabled government to support the provision of public goods and services, stimulate private ventures, finance social programs to reduce poverty, and widen economic opportunities for the citizenry. These gains, combined with maintaining a low-andstable inflation environment, have contributed to the significant decline in income poverty during the previous Plan period.
Moreover, the emphasis on good governance and respect for the rule of law has paid off with the unprecedented level of confidence accorded by the international community on the country as a travel and investment destination, and the generally stable political environment that has been conducive to sustained economic growth and peaceful political transitions.
To carry forward the progress that has been achieved toward inclusive growth, it is important to draw lessons from the experience during the previous plan period. The experience underscores the significant role of macroeconomic and political stability in creating the conditions for sustained growth. Yet while necessary, it takes more than growth to be able to lift the poor out of poverty. The various constraints preventing the poor from permanently exiting poverty have to be directly addressed. As these constraints operate differently depending on the spatial and sectoral location of the poor, government development strategies need to consider the differences arising from geographical and sector-specific factors. In particular, given the extent to which natural disasters can reverse gains in development work, development plans must provide for investments in disaster risk management, especially because of the country’s vulnerability to various risks associated with natural hazards. Finally, fostering credible and effective institutions that will enforce the rule of law and guarantee stability and predictability in the investment climate is critical, as are transparency and accountability in government transactions, in order to strengthen the public’s trust in government as an agent of reform.
Towards A National Long-Term Vision
As one of Asia’s better-performing economies today, the Philippines is in a more favorable position than it has ever been in the last four decades. No longer weighed down by an unmanageable fiscal deficit and more secure in its political legitimacy, the government can now afford to think about national goals based on a longer time horizon.
It is important to have a long-term perspective because securing the means for improving people’s lives, which ought to be the metric for gauging economic progress, is not a one-off event. Many of the problems requiring government action involve a combination of social, economic, and institutional processes that take years to produce the desired results. This endeavor requires sustained effort and persistence.
Moreover, the world is constantly changing. As problems are solved, new ones emerge. The rate at which current knowledge becomes obsolete is also increasing. For example, young people in more advanced countries today are being trained to solve problems that have yet to be identified using technologies that still have to be developed. The prospects can be mindboggling. How is the Philippines preparing its youth for the future? What kinds of skills are necessary for survival, for advancement, in tomorrow’s technology-driven, knowledgeintensive world of work? What kind of industries will exist in the country 10 or 15 years from now? How are Filipino businesses preparing to compete with the rest of the region and the world? What types of skills will be required and where will they come from?
That these forward-looking questions have not been at the center of the national conversation may be partly due to the preoccupation of government in the past with economic stabilization and political instability. Like an impoverished person who is unable to see beyond the next meal, it was as if the nation had to prioritize its survival over thinking farther into the future about where it wants to be. Another reason is the electoral cycle which shortens the time horizon for development planning to coincide with the six-year term of elected officials. Plans and programs are often arbitrarily terminated and replaced to suit the preferences of incumbents to the detriment of continuity.
But if the Philippine government were to articulate a future direction for the nation, how should this be done? Would such a vision for the future be accepted by the people as their own? How will this vision translate to specific policies, strategies, plans, and programs for implementation on the ground?
Following the idea that human development is the process of expanding people’s choices, or enabling them to “unfold their capabilities”––so that they live full lives as human beings––it makes sense that the people’s aspirations are the starting point of any national vision for development. Government policies, strategies, plans, and programs should be anchored on people’s collective vision.
AmBisyon Natin 2040: The Vision, Our Ambition
On October 11, 2016, President Rodrigo R. Duterte signed Executive Order No. 5, s. 2016 approving and adopting the 25-year long-term vision entitled AmBisyon Natin 2040as a guide for development planning. According to EO 5, the Philippine Development Plan 2017-2022 (PDP 2017-2022) and the succeeding PDPs until 2040 shall be anchored on AmBisyon Natin
2040. In its preamble, EO 5 recognizes the need for a “bold vision and effective development planning” based on a “forward-looking approach that goes beyond a single administration”. It also emphasized the centrality of people in development planning and their aspirations as requisite for the design of government interventions to achieve development outcomes.
AmBisyon Natin 2040is the result of a long-term visioning process that began under the previous administration in 2015. More than 300 citizens participated in focus group discussions (FGDs) and close to 10,000 responded to the national survey designed to gather information about the kind of life Filipinos want for themselves and their children and what they hope the country would be like in 2040. Technical studies were commissioned to identify strategic options for realizing the vision articulated by citizens. The exercise benefitted from the guidance of an advisory committee composed of select representatives from government, academe, civil society, and the private sector.
AmBisyon Natin 2040represents the collective long-term vision and aspirations of the Filipino people for themselves and for the country in the next 25 years. It is a vision, not a plan. A vision presents a picture of the future, a set of personal life goals as well as ideals for the country; a plan, on the other hand, consists of a set of strategies to achieve the goals. Plans are contingent on various factors and circumstances, just as routes to a given destination can vary depending on weather or road conditions. A vision, like a goal or a destination, remains fixed, at least for the given time horizon. Ambisyon Natin 2040provides the anchor for the country’s development plans until 2040.
Middle class aspirations
The Filipinos’ vision for the Philippines in 2040 is a prosperous, predominantly middle class society where there is equality of opportunities and poverty has been eradicated. It will be a society where people live long and healthy lives with a higher life expectancy at birth of 80 years. Longevity will be enhanced by the ability of individuals and communities to withstand natural as well as man-made shocks and disasters. With smarter and more innovative people, the country in 2040 is also envisioned to be a major player in the global knowledge economy, producing innovative products and processes that are used to make high-quality goods and services at competitive prices. The Philippines will be a high trust, more caring, and peaceful society where human security is assured and government enjoys the people’s trust because it is clean, efficient, and service-oriented. High trust will also prevail between the private sector and the government, as well as between and among peoples. Overall, a high trust society will facilitate official and business transactions, and smooth interpersonal relations.
On the kind of life they want for themselves, Filipinos want a life that is strongly-rooted, comfortable, and secure: matatag, maginhawa, at panatag.
The terms “strongly-rooted, comfortable, and secure” used to describe the life envisioned by Filipinos by 2040 reveal middle-class aspirations. They include home ownership, a steady source of income to support family and self, college education for the children, a motor vehicle, stable finances to cover daily needs and contingencies, savings for retirement, and time for vacation and travel. There is also a strong family orientation that underlies the preferences as reflected in the choice of living and working in the same locality, the desire for adequate spaces that allow for activities with family and friends, and the desire for access to convenient and affordable transportation for occasional visits to family and friends, among other reasons. The same value is reflected in the importance attached to education. Nearly every Filipino family considers college education a requisite to a decent job and so aspires to have the children complete a college degree.
The desired lifestyle requires a monthly family income of at least PHP120,000for a family of four valued in 2015 prices in the National Capital Region. Can the vision be realized? What will it take?
Realizing the Vision
With the right policies, improvements in productivity and efficiency can more than triple the gross national income per capita of the country in 25 years. This will allow the majority of Filipinos to enjoy a middle-class standard of living. Without reforms, however, per capita income can only double over a period of 25 years (Figure 1.1).
Figure 1.1 Observed and Simulated Growth Scenarios of Philippine Per Capita Gross Domestic Product, 1995-2040 (in PHP)
Source: Clarete, Ramon. Economic Growth and Poverty Reduction in the Philippines. Unpublished manuscript
Poverty can also be eradicated by 2040, or sooner, with the right policies and programs (Figure 1.2). The speed with which this can be accomplished will depend both on the robustness of economic growth as well as on how it is distributed across income groups. If income grows only weakly and income disparity rises, poverty reduction will take longer. However, strong economic growth accompanied by reductions in inequality – aided by zero unmet need for modern family planning services – will drastically reduce poverty and virtually eradicate it before 2040. Economic growth must thus be sustained and inclusive.
Figure 1.2 Scenarios of Eradicating Poverty in the Philippines
Source: Clarete, Ramon. Economic Growth and Poverty Reduction in the Philippines. Unpublished manuscript
To make the people’s aspirations a reality, government must use the various policy instruments in its arsenal to accomplish the following: (a) investment in human capital so that Filipinos are equipped to learn and adapt to new technology and the changing profile of society; (b) investment in high-quality infrastructure to make the cost of moving people, goods, and services competitive; (c) sound urban development that takes advantage of scale and agglomeration economies to make the cities more competitive and livable; and (d) adequate and inclusive finance to enable households to build up savings and to provide capital for MSMEs and households considering the desire of many to run their own businesses.
In particular, fiscal policy should support a strategic spending program aimed at addressing capacity constraints by investing in infrastructure and encouraging innovation. Monetary and financial policy should continue to support growth through the maintenance of low and stable inflation and financial inclusion. For its part, regulatory policy should promote competition, reduce the set-up costs for new entrants, especially small players, and ensure consumer protection. Finally, social policy needs to expand beyond the current range of services to include social protection for uncovered sectors and disaster risk mitigation, among others, and access to quality healthcare.
Four areas for strategic action over the next 25 years will help realize the national vision.
Toward building a prosperous, predominantly middle-class society where no one is poor, create the conditions for the growth of enterprises that generate high-quality jobs and produce high-quality goods and services at competitive prices. Give priority to enterprises in sectors that produce goods and services that meet AmBisyon (i.e.,for which there is a domestic market) and those that are able to participate in global trade. Nine priority sectors with the greatest potential to contribute to realizing AmBisyon have been identified:
Housing and urban development
Manufacturing (food processing, housing-related goods and services, transport)
Connectivity (roads, ports, airports, bridges, communication)
Toward promoting a long and healthy life, a range of programs starting with quality and affordable universal health care and social protection is required.
Reduction of infant mortality rate through quality maternal health and child care
Reproductive health and family planning programs
Eradication of malnutrition
Programs and facilities to encourage development of healthy lifestyles Efficiently-managed natural resources and environment
Toward becoming smarter and more innovative, people need to expand their skill set in order to adapt to rapidly changing technology and work requirements.
Education system should equip citizens with knowledge and skills necessary to occupy high-productivity jobs, while remaining adaptable to changing needs of the economy. The K to 12 program provides a foundation for a smarter society, and it should continue.
Strong intellectual property rights framework to encourage Filipinos to generate innovative products and ideas
A mature research and development (R&D) program
Toward building a high-trust society, government must be people-centered, effective, and accountable.
Public goods and services should be efficiently delivered by a professional bureaucracy, including at the local level
Promote competition and inclusiveness in the political system through major political and electoral reform
Pursue the peace agenda that accompanies a long-term development agenda for areas threatened by armed conflict
Create social and cultural awareness and develop in every Filipino a deep appreciation of the Filipino nation.
To sustain the Vision over the next 25 years, it is necessary to build a broad constituency behind the reforms needed to attain it. An effective communications strategy is critical to disseminate the Vision to all stakeholders. The Vision also needs to be translated into specific goals, measurable targets, and intermediate milestones while allowing for flexibility in strategies. Preferences and needs may change over time so the Vision will need revisiting and review. The strategies needed to achieve the targets will then be the subject of four PDPs until 2040.
The Philippine Development Plan 2017-2022
The PDP 2017-2022 that takes off from the Administration’s 0+10 Point Socioeconomic Agenda is the first medium-term plan anchored on Ambisyon Natin 2040following EO 5, s. 2016. The current Plan aims to lay a stronger foundation for inclusive growth, a high-trust society, and a globally-competitive economy toward realizing the vision by 2040.
Under the current plan, the target is to reduce poverty incidence from 21.6 percent in 2015 to 14.0 percent by 2022. This is equivalent to lifting about 6 million people out of poverty. Specifically, poverty in agriculture and in lagging regions with high poverty incidence and inequality will be targeted. Individuals and communities will also be made more resilient by reducing their exposure to risks, mitigating the impact of risks, and accelerating recovery when the risk materializes. Moreover, innovation will be encouraged as the country sets its eyes on graduating to a knowledge economy in order to accelerate growth in the future.
The strategies to achieve the targets cited above are grouped under three pillars: Malasakit or enhancing the social fabric, Pagbabagoor reducing inequality, and Patuloy na Pag-unlador increasing growth potential. Chapter 4discusses the strategic framework of PDP 2017-2022.
This document is organized into seven parts. Part I provides the overall context for the Plan. Part II is about enhancing the social fabric to build the foundations for a high-trust society. Part III stresses the importance of reducing inequalities in economic development opportunities. Part IV focuses on increasing potential growth. Part V calls for a supportive economic environment that will enable the economy to sustain growth, and Part VI is about foundations for inclusive and sustainable development. Finally, Part VII describes the institutional arrangements for implementation and monitoring––making sure that what is planned is implemented and that timely adjustments are done. As the PDP 2017-2022 is the first concrete step towards the realization of AmBisyon Natin 2040, the government needs to make sure that it contributes to achieving the collective aspirations of its citizens.
Global and Regional Trends and Prospects
The next six years is likely to be a period not just of major change and growing uncertainties, but also of great possibilities. To plan appropriately for the future, it is important to be familiar with the inter-related trends in various areas such as economics, politics, demographics, technology, and environment, both at the international and regional levels.
Muted Global Economic Recovery
Since the 2008-2009 global financial crisis, global economic growth has been sluggish, without any immediate prospect of renewed economic vigor.From an average growth of 5.1 percent in 2003-2007, global output growth slowed to an average of 3.2 percent in 2008-2015.After a weak outturn in 2016 (estimated at 3.1%), economic activity is expected to accelerate slowly in the medium term. Overall though, the global economy is seen to remain weak, with average growth rising only slightly to 3.6 percent in 2017-2021. Moreover, the outlook is clouded by uncertainty on the policy stance of the new administration in the United States of America, which may have global repercussions.
Source: International Monetary Fund, World Economic Outlook database, October 2016
Economic growth in emerging markets and developing economies in Asia has likewise slowed from an average of 9.5 percent in 2003-2007 to 7.5 percent in 2008-2015. This is largely driven by the slowdown in China from an average of 11.7 to 8.6 percent growth during the same periods. Growth from 2017-2021 is expected to slow down further to an average of 6.3 percent in emerging Asia and 6.0 percent in China.
In the ASEAN-5 (Association of Southeast Asian Nations: Indonesia, Malaysia, Philippines, Thailand, and Vietnam), the slowdown was not as pronounced, with 5.7 percent average growth in 2003-2007 and 5.1 percent in 2008-2015. The region’s economy is expected to gradually recover with growth averaging at 5.4 percent in 2017-2022.
Oil prices are also expected to rise gradually following the agreement among OPEC members and several other major producers to limit supply. Nevertheless, oil prices are not expected to return to pre-2014 levels given the rise of shale oil, in addition to increasing the adoption of renewable energy and conservation measures.
Figure 2.2 Average Crude Oil Price (in USD/bbl)
Source: Actual Data from World Bank Commodity Price Data – the Pink Sheet (January 2017). Forecasts in red from World Bank Commodity Markets Outlook (January 2017)
Sluggish International Trade
Growth in global trade (export volume) also slowed significantly from an average of 8.3 percent in 2003-2007 to 3.0 percent in 2008-2015. World merchandise trade volume is expected to have grown by just 2.2 percent in 2016, the slowest since the global financial crisis. Export growth is expected to improve only slightly to an average of 3.9 percent in 2017-2021.
Figure 2.3 Merchandise exports volume growth
Source: International Monetary Fund. October 2016. World Economic Outlook Database
In the face of the trend toward inward-looking policies and protectionism, concluding preferential or multilateral trade agreements may become increasingly difficult. This comes with the risk of igniting trade wars or ignoring established international rules in trade and commerce.
Nevertheless, the fundamental trends driving increased global economic integration are likely to remain. This includes the rise of global production networks (GPNs) and buying chains, much of them under the auspices of multinational enterprises. GPNs already account for about half of intra-East Asian trade and intra-ASEAN trade, most of them in electronics.
The sluggish growth in 2012-2014 and the magnitude of the decline in trade of goods and services in 2015 suggest a potential change in the dynamics behind the international integration process. The fall in commodity prices and the appreciation of the US dollar are the factors that contribute most to the nominal fall in world trade. Another contributing factor is the shortening of global value chains. Some countries, including those in East Asia, may be re-shoring and consolidating manufacturing production processes.
Technological change – which has led to declining transport costs – and the internet revolution have made a dramatic effect in lowering the costs of business within and across countries, including in the services sector. Many business services can now be provided over the internet at greatly reduced cost, and this trend is likely to accelerate.
Surge in Foreign Investments
Prior to the global financial crisis, global foreign direct investment (FDI) inflows averaged USD1.1 trillion from 2003-2007. This increased to an average USD1.4 trillion between 2008 and 2015. In 2015, global flows of FDI rose by about 40 percent, to USD1.8 trillion, the highest level since the global economic and financial crisis began in 2008. However, this growth did not translate to a proportionate expansion in productive capacity in all countries.
For developing Asia,however, FDI inflows increased by 79 percent from USD237 billion in 2003-2007 to USD424 billion in 2008-2015. In 2015, this region remained the largest recipient of FDI while flows declined steeply among countries transitioning to a market economy in Southeast Europe and the Commonwealth of Independent States.
An increase of 16 percent in FDI inflows to USD541 billion for developing Asia in 2015 was primarily driven by increased FDI in East and South Asian economies. In East Asia, FDI rose by 25 percent to USD322 billion, reflecting large equity investments related to a corporate restructuring in Hong Kong, China, and dynamic FDI flows to the services sector of China.
ASEAN received only USD52 billion in FDI on average in 2003-2007, but this increased by 93 percent, to USD100.2 billion on average, in 2008-2015. In 2015, FDI in low-income economies such as Myanmar and Vietnam soared, but this was offset by the lackluster performance of higher-income countries, including Indonesia, Malaysia, and Singapore.
Hindered by the current global and regional economic slowdown, FDI inflows to developing Asia are expected to decline in 2016 by about 15 percent, reverting to their 2014 level. Data on cross-border merger and acquisition sales and announced greenfield investment projects support the expected decline. However, flows to Asian economies such as China, India, Myanmar, and Vietnam are likely to see a moderate increase in inflows in 2016.
Over the medium term, global FDI flows are projected to resume growth in 2017 and to surpass USD1.8 trillion in 2018, reflecting an expected increase in global growth.
Despite the decline in outflows from developing Asia by 17 percent, at USD332 billion, the region’s outward FDI in 2015 remained the third highest ever. Outward FDI from a number of Asian economies, including China and Thailand, increased. With outflows worth USD128 billion, China was the third largest investing country worldwide, after the United States of America and Japan.
There are indications that intraregional investments are rising, and among the most important industries driving this development are infrastructure and electronics. In 2015, 53 percent of the value of greenfield projects came from developing Asia, particularly from China, India, the Republic of Korea, and Singapore.
Asynchronous Monetary Policy in Advanced Economies
With the improved performance of the US economy, the Federal Reserve has started raising its policy rates. Consequently, the International Monetary Fund expects a less gradual normalization of monetary policy and some fiscal stimulus. The fiscal policies considered by the new US Administration, including reducing taxes and increasing infrastructure spending, are likely to raise the budget deficit and lead to higher interest rates. On the other hand, monetary authorities in the European Union (EU) and Japan are likely to maintain their accommodative stance in order to support the slow recovery of their economies. These unaligned policies produce volatilities in capital flows and in the exchange rate.
Populist and Protectionist Tendencies
World Trade Organization reports indicate that during the global financial and economic crises, there was a modest increase in protectionist pressures. The number of new measures remains high and the rollback of existing trade-restrictive measures continues to be slow. In addition, the rate of trade facilitating measures applied each month declined against the previous period, remaining below the 2009-2015 trend.
Figure 2.5 G20 Trade-restrictive Measures (average per month)
Source: World Trade Organization. November 2016. Report on G20 Trade Measures
Trade remedy investigations were the most popular trade-restrictive measures, representing 72 percent, which is above the average share observed since 2009. The G20 economies initiated much more trade remedy actions (61) than they terminated (36) during the latest reporting period. Metal products (particularly steel), chemicals, plastics, and rubber account for most of anti-dumping and countervailing initiations during the review period.
As a result, the share of global trade affected by such restrictions gradually rose. As of the most recent reporting period,the share of world imports covered by import-restrictive measures implemented since October 2008 and still in place is 5 percent and the share of G20 imports covered is 6.5 percent. Of the 1,671 trade-restrictive measures recorded for G20 economies since 2008, only 408 had been removed by mid-October 2016. The overall stock of measures has increased by 5.6 percent compared to the previous report--with the total number of restrictive measures in effect now at 1,263. The rollback of trade-restrictive measures recorded since 2008 remains too slow and continues to hover just below 25 percent.
Figure 2.6 Figure Stockpile of Trade-restrictive Measures
Source: WTO. November 2016. Report on G20 Trade Measures
As a consequence of the global financial crisis, there has been a growing backlash against the consequences of globalization. Over the medium term, politicians and interest groups are expected to capitalize on the backlash to push for populist and protectionist agenda. This situation raises the risk of ushering in or reinforcing authoritarian governments.
This backlash seems to be manifested in the results of the United Kingdom (UK) referendum on Brexit and the US Presidential elections. The UK seems headed for a “hard Brexit”, where it would likely leave the EU Single Market, though possibly in phases. While the UK government is keen on concluding the process within the two years provided under Article 50 of the EU Treaty, negotiations on the terms may take much longer, leading to further uncertainties. A full-blown trade war between the US and China could plunge the global economy into a recession.
Upcoming changes in political leadership in France, Germany, Netherlands, and Italy could further fuel this trend, possibly calling into question the future of the European project. Political developments in China and Russia need to be keenly monitored as well.
Rise of Fundamentalism
The threat from terrorism has been growing, as illustrated by a number of recent attacks carried out in Europe, Asia, Africa, among others. While the Islamic State has suffered significant setbacks, it is likely to take several more years before the threat, including retaliation from the group and its other sympathizers, is fully neutralized. Generally, the Middle East will probably continue to be a region of instability.
In 2016, the Permanent Court of Arbitration ruled in favor of the Philippines on the case of the West Philippine Sea. Despite this development, conflicting interests and claims in the West Philippine Sea are likely to remain unresolved given the challenges in enforcing the Court’s ruling.
Social and Demographic Trends
Social and demographic factors will increasingly become important determinants of economic progress in the country and the world.
Better nutrition, sanitation, healthcare, education, and economic well-being have led to changes in reproductive and life expectancy trends. People are living longer and healthier and having fewer children. The global population will continue to age quickly, especially in several major rich countries and regions, notably, Japan and most of the EU.
Between 2015 and 2030, the number of senior citizens in the world is projected to grow by 56 percent, from 901 million (1:8 people) to more than 1.4 billion (1:6 people). The ageing process advanced the most in Europe and Northern America, where more than 1:5 people were aged 60 or over in 2015. However, ageing is expected to grow quickly in other regions as well. By 2030, older persons are expected to account for more than 25 percent of the populations in Europe and Northern America, 20 percent in Oceania, 17 percent in Asia and Latin America, and 6 percent in Africa. In fact, the number of older persons is expected to grow fastest in Latin America and the Caribbean (71%), followed by Asia (66%), Africa (64%), Oceania (47%), Northern America (41%), and Europe (23%). By 2050, life expectancy at birth is projected to surpass 80 years in Europe, Latin America and the Caribbean, Northern America, and Oceania; it will approach 80 years in Asia and 70 years in Africa.
China is also ageing quickly. In spite of the recent relaxation of the one-child policy, the process will accelerate as the second and third-generation effects of the policy are felt.Recent reports indicate that even Thailand and Vietnam are facing the challenge of population ageing. Thailand’s population is predicted to begin declining before 2020, as its fertility rate has been below replacement level for 20 years and continues to fall. Data from Vietnam’s 2009 census shows that the number of older persons–older women, in particular––has risen more rapidly than any other age group.
Figure 2.7 Percentage aged 60 years or over by region, 1980-2050
Source: United Nations Department of Economic and Social Affairs. World Population Ageing 2015
The ageing workforce in advanced economies will continue to support the demand for migrant workers. In contrast, the workforce in the Philippines will remain relatively young for some time. However, the backlash against globalization is also bringing a rising sentiment against immigration in some countries. This could lead to more stringent migration policies and procedures, as well as to less hospitable working environments for migrant workers.
Inequality May Persist in Some Nations
Related to these demographic trends, inequality is likely to continue to be a major global challenge.. It is probable that the trends of the past decade or more will continue. That is, inequality across nations will likely decline. This is driven mainly by narrowing inter-country differences, as many low- and middle-income economies grow faster than the rich ones. Much of this narrowing gap is driven by the dynamic Asian economies. Trends in inequality within countries are difficult to forecast, but high or rising inequality will likely continue to be a major challenge in most countries.
It is impossible to predict the speed and direction of future technological change. Many of tomorrow’s jobs do not yet exist. Historically, over 95 percent of research and development, and hence, innovation, occurred in member nations of the Organisation for Economic Cooperation and Development (OECD). However, much of future innovation will originate in today’s middle-income economies, especially those with a strong research and development base such as China, India, Russia, and Brazil.
Shift Towards Universities and Private Funding
Most OECD economies continued to maintain or increase public spending on research and development between 2000 and 2015. On average, however, public spending on R&D in OECD countries declined between 2000 and 2015.
Figure 2.8 Government Budget Appropriations and Outlays for Research and Development as a Share of Total Government Expenditures, 2000 and 2015
Source: OECD Science, Technology and Innovation Outlook 2016
Public research in OECD has also been shifting toward universities. These universities, in turn, are increasingly relying on private funding, including from charities, philanthropists, and private foundations.
Source: OECD. Science, Technology and Innovation Outlook 2016
Upcoming Disruptive Technologies
Among the most promising and potentially disruptive emerging technologies are the Internet of Things, big data analytics, artificial intelligence, neurotechnologies, nano- or microsatellites, nanomaterials, additive manufacturing, advanced energy storage technologies, synthetic biology, and blockchain.
The Internet of Things envisions a hyper-connected, digitally-responsive society. The largest impact is expected in healthcare, manufacturing, network industries, and local government. While it has great potential to support human, societal, and environmental development, several safeguards need to be put in place to ensure data protection and security.
Big data analytics is a set of techniques and tools used to process and interpret large volumes of data that are generated by the increasing digitization of content, the greater monitoring of human activities, and the spread of the Internet of Things. It will play a key role in the innovation and competitiveness of firms. Its application to public sector data can improve government policies and public services. Monitoring and predictive analytics can lead to earlier detection of illnesses. However, it is important to balance the need for openness with the threats to privacy, security, equity, and integrity.
Artificial intelligence is the ability of machines and systems to acquire and apply knowledge and carry out intelligent behavior. This technology makes robots that can adjust to changing working conditions, reduce work accidents, and enhance decision-making in hazardous and dangerous situations, thereby leading to substantial savings and increased productivity.
Demand for knowledge workers who are able to develop artificial intelligence will increase. Creative or tacit knowledge, which is less codifiable, and skills requiring social interaction or physical dexterity, which are less easy to automate, are likely to remain unaffected. Advances in artificial intelligenceare expected to have beneficial impact on health, environment, and other areas. It may take some time though before societies and governments accept this technology and to put in place the appropriate regulations for its use, especially in sensitive areas such as transport and medicine.On the other hand, the use of artificial intelligence in less sensitive areas such as voice computing may find wider acceptance, posing a challenge to the call center industry for instance.
Neurotechnology is an artificial means of interacting with the brain and nervous system in order to investigate, access, and manipulate the structure and function of neural systems. It can greatly enhance diagnosis and therapy. However, some neurotechnologies raise ethical, legal, social, and cultural questions.
Nano/microsatellites, which weigh between 1 kilogram (kg) and 50 kg, offer vast opportunities for making construction faster and more flexible. They can also be used in navigation, communications or remote sensing for civilian and defense purposes. Increasing use of such satellites requires the right regulatory framework and business environments to ensure proper use.
Nanomaterials are materials whoseexternal dimension is in the nanoscale (10-9 meter). They have unique optical, magnetic, and electrical properties that can be used in healthcare, energy, and other technologies. However, technical constraints and uncertainties over their toxicity to humans and the environment must be considered.
Additive manufacturing––also known as three-dimensional (3D) printing––encompasses different techniques that build products by adding materials in layers, often using computeraided design software. 3D printing technologies may bring about new products in health, medicine, biotechnology, and metal processing among others. This could lead to changes in work and production patterns. As 3D printing becomes more accessible, legal and regulatory issues regarding data protection, product liability, and intellectual property will become increasingly important.
Energy storage technology is a system that absorbs energy and stores it for a period of time before releasing it to supply energy or power services. Advances in this technology are important to optimize energy systems and allow the integration of renewable energy systems. As the materials, technologies, and deployment applications for storing energy are created, ensuring safety and minimizing the risk of failure and losses become crucial.
Synthetic biology is a new field of research in biotechnology that uses engineering principles to manipulate the genetic make-up of organisms. It allows new biological parts to be constructed and natural biological systems to be re-designed. It is expected to have a wide range of applications in health, agriculture, industry, and energy. It also raises major legal and ethical issues.
The Blockchain is a database that allows the transfer of value within computer networks. It technology is expected to be used in several markets to ensure trustworthy transactions without the need for a third party. However, it is constrained by unresolved technical issues and risk of abuse for illegal purposes.
The science of climate change may continue to be controversial and highly uncertain, though there is now wider consensus among professionals about the gradually rising average temperatures and climate volatility.
The Intergovernmental Panel on Climate Change (IPCC) says that the average global temperature increased by 0.85 degree Celsius (°C) between 1880 and 2012. As a result, major crops like maize and wheat have suffered significant yield reductions at the global level of 40 megatonnes (MT) per year between 1981 and 2002. Also, the global average sea level increased by 19 centimeters from 1901 to 2010, as oceans expanded due to warming and melting of ice. The Arctic has been losing 1.07 million square kilometers of ice every decade since 1979. The increase in global temperature by the end of this century will likely exceed 1.5°C compared to the levels from 1850 to 1900, considering the continuous emissions of greenhouse gases. In fact, 2016 was declared the hottest year on record, with the global average temperature about 1.1°C higher than the pre-industrial period.This condition led to widespread coral reef bleaching. If current trends continue, nearly all of the world’s coral reefs will suffer severe bleaching every year.
Source: IPCC, 2014: Climate Change 2014 - Synthesis Report
The world’s oceans will also continue to warm and the ice melt. Average sea level rise is predicted at 24-30 cm by 2065 and 40-63 cm by 2100. Most aspects of climate change will persist for many centuries even if emissions stop.
To address climate change, countries adopted the Paris Agreement at the Conference of Parties 21 on December 12, 2015. All signatories agreed to limit global temperature rise to below 2°C and to strive for 1.5°C.The Paris Agreement represents an important step in international efforts to combat climate change. However, potential changes in the direction of US policy could undermine the implementation of the agreement. Nevertheless, where the local impact of climate change and environmental degradation has become more evident, pressure from domestic stakeholders may encourage their governments to pursue the path of sustainable development.
Figure 2.13 Widespread Impact Attributed to Climate Change Based on Available Scientific Literature Since the 4th Assessment Report of the IPCC
Source: IPCC, 2014: Climate Change 2014 - Synthesis Report.
The next six years will be filled with great challenges for policymakers in emerging economies, such as the Philippines, which have little control over global and regional trends. The following chapters illustrate how the country intends to navigate through these difficult times.
Overlay of Economic Growth,
Demographic Trends, and Physical Characteristics
The Philippine Development Plan (PDP) 2017-2022, which takes off from the current Administration's 0+10 Socioeconomic Agenda, pursues the realization of inclusive development, anchored on the Long-Term Vision or AmBisyon Natin 2040: matatag, maginhawa, at panatag na buhay.It defines the desired spatial distribution of human activity in the country based on economic, social, institutional, and environmental conditions.
The Plan espouses a national spatial strategy (NSS) that describes the geographic development challenges and opportunities in population and economic growth. The NSS provides the basis for policies on urban development, infrastructure development, disaster mitigation, and environmental resource protection and conservation. It recommends sustainable human settlements, efficient production, and effective service delivery systems.
The key principles of spatial development are as follows:
- Integration of leading and lagging areas and urban-rural linkages through transportation networks
- Improvement of access to social services
- Identification of locations of major infrastructure to maximize their benefits
- Improvement of local, national, and international connectivity
- Promotion of sustainable development and resiliency
Economic and Demographic Trends
The spatial distribution of population reflects the structure of the economy, characterized by varying concentrations of production and consumption in cities and municipalities, and in their respective host regions. The notable trends include the following:
- The total population continues to increase following a long-term trend.
- The overall growth rate, however, is decreasing, which is a global trend.
- Regions with established and large cities (regional centers) are growing the fastest. Notably, while the regional centers are growing much faster than other cities and municipalities, the National Capital Region’s growth is much slower. Its share of the population is getting smaller even though its contribution to gross domestic product (GDP) remains highest among the regions.
- Regions with the largest populations also have the largest shares to GDP.
Regional Shares in GDP
The country’s three most populous regions––CALABARZON (Region 4A), National Capital Region (NCR), and Central Luzon (Region 3)––account for nearly two-thirds of the Philippine domestic production (see Figure 3.1). NCR had the largest share of GDP at 37.9 percent in 2015, followed by CALABARZON at 15.5 percent, and Central Luzon at 8.9 percent, for a combined total share of 62.3 percent. The growth of these regions has been due primarily to the location of the central government, which facilitates the expansion of the industry and services sectors.
On the other hand, the regions with the smallest contributions to GDP are the Autonomous Region in Muslim Mindanao (ARMM) at 0.7 percent, followed by Caraga at 1.3 percent, and Mindoro Occidental, Mindoro Oriental, Marinduque, Romblon, Palawan (MIMAROPA) at 1.6 percent.
The rest of Luzon accounts for 10.3 percent, Visayas for 12.4 percent, and Mindanao for 14.5 percent share to GDP.
Figure 3.1 Average Regional Share in GDP, 2010-2015
In terms of growth rates, six regions expanded faster than the 6.2 percent average GDP growth rate in the past six years. The Caraga region, coming from a low base, is the fastest with an average gross regional domestic product (GRDP) growth rate of 8.8 percent. It is followed by Central Visayas (Region 7) and Central Luzon at 8.2 percent and 7.2 percent, respectively.
Table 3.1. GRDP Growth Rate and Regional Contribution to GDP Growth, 2010-2015
GRDP GROWTH RATE
CONTRIBUTION TO GDP GROWTH
ON TO GDP
| || |
| || |
Source: Philippine Statistics Authority
Trends in Population Growth
The population of the Philippines continues to increase. Based on the 2015 census, the country’s population is 100,981,437. It is 8.64 million more than the population in 2010 and 24.47 million more than in 2000. Annual population growth rate, however, has been slowing down––from 1.90 percent in 2000-2010 to 1.72 percent in 2010-2015.CALABARZON has the largest population with 14.4 million, followed by NCR with 12.9 million, and Central Luzon with 11.2 million. The least populated regions are MIMAROPA with 3 million, Caraga with 2.6 million, and Cordillera Administrative Region (CAR) with 1.7 million.
By 2045, the population of the Philippines is projected Figure 3.2. Population by Region, 2015 to increase to 142,095,100. CALABARZON is projected to continue to have the highest population. Central Luzon and NCR will have almost equal population levels of 14.5 million. Western Visayas (Region 6) and Central Visayas, the next most populous regions, are each expected to have 9.7 million people by 2030. On the other hand, CAR will continue to be the least populated.
Population Growth of Major Cities
Based on the 2015 Census of Population, the Philippines has 33 highly-urbanized cities, with four of them having a population of more than one million: Quezon City (2.94 million), Manila City (1.78 million), Davao City (1.63 million), and Caloocan City (1.58 million). Most of these cities are located in the Luzon island. After Davao City, cities with the highest population outside Luzon are Cebu City in the Visayas with 922,611 and Zamboanga City in Mindanao with 861,799.
Source: Philippine Statistics Authority
Figure 3.3 Population of Major Cities
Population of Metropolitan Areas
NCR remains to have the largest population with 12.9 million in 2015, followed by Metro Cebu with 2.8 million, Metro Davao with 2.5 million, and Metro Cagayan de Oro (CDO) with 1.4 million.
Figure 3.4. Population of Metropolitan Areas: 2000, 2010, and 2015
The Relationship of Population to GRDP
With few exceptions, regions with higher GRDP also have larger populations (see Figure 3.5). Within these regions, certain cities or groups of cities and municipalities dominate in population levels and economic development, except NCR whose cities and municipalities are functionally linked as one big metropolis.
Figure 3.5. Population and GRDP, 2015
The Overall Spatial Strategy
The NSS sets the direction of future growth that is consistent with the vision under AmBisyon Natin 2040. It recognizes the role of cities as engines of economic growth and venues of growth and poverty reduction, and infrastructure to provide efficient connective networks of sustainable urban and rural communities.
The NSS aims to decongest NCR and direct growth to key centers throughout the country, where the benefits of agglomeration can have greater potentials of being realized. It recognizes comparative advantages of cities and municipalities and seeks to address spatial and socioeconomic inequalities by linking lagging regions with leading ones, rather than advocating the uniform dispersal of development, which can create diseconomies and inefficiencies. The NSS thus forms a network of settlements to maximize the benefits of agglomeration.
The NSS consists of the following components: regional agglomeration with growth in key centers, connectivity, and reduction of vulnerability. The spatial strategy provides a basis for identifying more specific projects that can serve the catchment and market or service areas of the various centers. These can be included in the Regional Development Plans.
The NSS seeks to build on the efficiencies and maximize the benefits of scale and agglomeration economies. The strategy will build on the current trend where NCR growth is slowing down and regional centers, including their peripheral areas, are growing faster and increasing their shares of the country’s population.
The growth of regional centers will be managed so that they function more efficiently. The advantages of their scale and agglomeration economies are to be maximized and spread to outlying areas or regions, as in a hub-and-spokes model, through their relatively large markets, labor force, and innovation opportunities.
Regional development thrust will be supported with suitable physical and human infrastructure (including affordable housing, quality education, and healthcare), other social and economic services, and efficient urban management.
Regional development thrust will be supported through suitable physical and human infrastructure (including affordable housing, quality education, and healthcare), other social and economic services, and efficient urban management.
Network of Settlements
Based on population trends, service catchments, and economic activities, the country’s settlements have a three-tiered network: (a) metropolitan centers; (b) regional centers; and (c) sub-regional centers.
- Metropolitan Centers
These are the economic centers of the country’s three main island groups. They have distinct functions in innovation and advanced services, culture and tourism, education and research, transportation and trade (e.g., primary international gateway), manufacturing, and technology development.
There are three metropolitan centers in the country: NCR, Metro Cebu, and Metro Davao. NCR is the metropolitan center of Luzon and the Philippines, and is envisioned to remain as the seat of the national government. Metro Cebu is the country’s second largest urban center with extensive domestic and international links. Its central location makes it a natural hub for economic, commercial, and logistics activities in the Visayas. Metro Davao is a major international gateway and Mindanao’s premier commercial hub; center for education, health, and services; and tourist attraction.
By 2025, Metro CDO will become the 4th metropolitan center based on its projected population growth and functional role as a major gateway and trans-shipment hub in Northern Mindanao. It will also remain as a key educational center in Northern Mindanao.
- Regional Centers
They are regional markets and service centers for several provinces. They have markets that are large enough to support a range of services and investments. Regional centers have the most direct linkages to metropolitan centers. They are regional administrative centers, international gateways, and tourism hubs.
- Sub-regional Centers
These large settlements serve as market catchments of regional centers. They also connect to and serve as service centers of smaller provincial and local centers. As they grow, these subregional centers tend to merge with adjacent regional centers to form even larger metropolitan areas as those formed by the NCR, CALABARZON, and Central Luzon.
Table 3.2. Network Settlements
1. Metropolitan Centers
- NCR -
- Metro Cebu -
By 2025, Metro CDO (CDO City, Jasaan, Villanueva,
Tagoloan, Claveria, Manolo Fortich, Opol, El Salvador, Alubijid, Laguindingan, Gitagum, Libertad, Initao)
2. Regional Centers
- Laoag City -
- Tuguegarao City -
- Tabuk City -
- Santiago City -
- San Fernando City -
(La Union) -
- Baguio City-La -
- Cabanatuan City -
- Tarlac City -
- Subic-Olongapo City
- Balanga City -
- Angeles City
Dasmariñas City -
Antipolo City -
Calamba City -
Batangas City -
Lucena City -
Calapan City -
Puerto Princesa City -
Legazpi City -
Naga City (Camarines -
Iloilo (Iloilo City- Pavia- -
Oton- Leganes, Santa -
Barbara- San Miguel) -
Bacolod (Bacolod CityTalisay City-Silay City)
General Santos City
3. Sub-regional Center
- Alfonso Lista (Potia) -
- Banaue -
- Bangued -
- Bauko -
- Besao -
- Bontoc (Mountain -
- Danglas -
- Flora -
- Kiangan -
- La Paz (Abra) -
- Lamut -
- Langiden -
- Luna (Apayao) -
- Peñarrubia -
- Pidigan -
- Pudtol -
- Sadanga -
- San Isidro (Abra) -
- Santa Marcela -
- Tayum -
- Tubo -
- Alaminos City -
- Dagupan City -
- Cauayan City -
- Ilagan City -
- Santa Ana (Cagayan) -
- Arayat -
- Capas -
- Concepcion (Tarlac) -
- Hagonoy (Bulacan) -
- Lubao -
- Mabalacat City -
- Marilao -
- Mariveles -
- Mexico -
- Meycauayan City -
- San Fernando City -
- San Ildefonso (Bulacan)
San Jose City -
San Jose del Monte City -
San Miguel (Bulacan) -
Santa Maria (Bulacan) -
Bacoor City -
Baras (Rizal) -
Biñan City -
Cabuyao City -
Gen. Mariano Alvarez -
General Trias City -
Imus City -
Lipa City -
Rodriguez (Montalban) -
San Mateo (Rizal) -
San Pablo City -
San Pedro City -
Santa Rosa City -
Tanauan City -
Taytay (Rizal) -
Romblon (Capital) -
San Jose (Occi. Min) -
Iriga City -
Ligao City -
Masbate City -
Sorsogon City -
Tabaco City -
Roxas City -
San Carlos City (Negros -
San Jose (Antique)
Parang (Maguindanao) San Francisco (Agusan del Sur)
Tubod (Lanao del Norte)
Aurora (Zamboanga del
Functions of Centers
The metropolitan centers of NCR, Metro Cebu, and Metro Davao provide higher forms of services and facilities that serve domestic and international requirements. Regional and subregional centers, on the other hand, have population sizes, services, natural physical features, and strategic locations that enable them to host certain activities or functions.
- Regional administrative centers: Baguio City, Tuguegarao City, San Fernando City (La Union), Calamba City, Legazpi City, San Fernando City (Pampanga), Calapan City, Tacloban City, Iloilo City, Butuan City, Pagadian City, and Koronadal City
- International gatewaysexamples: Iloilo City, Bacolod City, Angeles City, Zamboanga City, Legazpi City, Laoag City, Puerto Princesa City, and General Santos City
- Tourism hubs: (Examples) Legazpi City, Naga City, Calapan City, Puerto Princesa City, Laoag City, Tagbilaran City, and Surigao City
- Tourism hub examples: Alaminos City, Matnog, Malay, Kalibo, Jordan, and Tubigon
- Agri-industrial centersexamples: Midsayap, Mati, Cauayan City, Polomolok, Kidapawan City, Bislig, Tacurong City, and Calbayog City
- Industrial centersexamples: Biñan City, Sta. Rosa City, Lipa City, Tanauan City, San Carlos City, Iligan City, Subic, and Mariveles
- Higher education examples: Marawi City, Miag-ao, and Dumaguete City
These centers share the same characteristic as some of the existing economic zones identified in the Special Economic Zone Act and tourism circuits identified in tourism plans.
The strategy of connectivity aims to connect the settlements to form an efficient network.This means improving linkages among settlements and key production areas by connecting rural areas to growth centers or strengthening urban-rural linkages. These linkages will increase people’s access to jobs and services, especially those in smaller settlements. Also, they will direct growth in areas with greatest economic potentials through efficient transport networks.
Connectivity seeks to equalize opportunities across space. This is not only achieved through physical connectivity but also through investments and human development, particularly in areas where economic opportunities are limited. It includes isolated conflict-affected areas where peace and development efforts can be enhanced. Investing in human capital through education, health, and other social services will improve people’s mobility. Moreover, connectivity will provide accessible social services to improve the quality of life in the locality, including in isolated conflict-affected areas where peace and development efforts can be enhanced.
The NSS seeks to address socioeconomic inequalities by linking lagging regions with leading ones, rather than forcing uniform dispersal of development, which can create diseconomies and inefficiencies. With a more efficient network of settlements, more opportunities for production and employment are expected to be generated, thus increasing family incomes and savings for investment and growth, and reducing poverty.
The NSS also recognizes that while cities tend to be engines of growth, they also need appropriate infrastructure, affordable housing, and service systems. These are needed to manage growth and address the challenges of congestion, inadequate social services, and vulnerability to natural disasters.
Connectivity requires strengthening of transportation and telecommunication linkages to provide accessibility and integration of production and settlement areas. It emphasizes the need to connect various centers within a network of settlements through transport infrastructures to improve people’s mobility and accessibility to jobs and services.
Reduction of Vulnerability
The NSS seeks to make vulnerability reduction an integral part of development.Vulnerability reduction involves instituting prevention and mitigation measures to avoid or reduce the impact of climate change and disasters on the community. These may include redundancy routes to provide access to areas affected by hazards.
The Philippines is prone to both geological and hydrometeorological hazards. The frequency and severity of these hazards, climate change and its impact are expected to increase. Thus, the Philippines ranks third among the countries with the highest disaster risk in the world, after Vanuatu (1st) and Tonga (2nd), according to the World Risk Report 2016.
Based on the climate projections in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, which uses emission scenarios or Representative Concentration Pathways, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) estimates the country’s average temperature to be warmer at 0.9-1.9 Cto 1.2-2.3 Cby mid-21st century (2036-2065). The projected changes in seasonal rainfall in most parts of the country are expected to be within the range of its natural variability. These changes are strongly influenced by the El Niño Southern Oscillation, except for a highly likely drier future over the central sections of Mindanao. Projections further reveal, although with low confidence, that wetter conditions associated with extreme rainfall events could be experienced over most parts of Luzon and western sections of the Visayas. Sea level rise, faster than the global average, has been observed in some coastal areas in the country, and this condition is projected to continue.
Figure 3.6. Projected Changes in Seasonal Rainfall in the Mid 21stCentury (2036-2065) relative to 1971-2000 under High Emission Scenario (RCP8.5)
P h i l i p p i n e D e v e l o p m e n t P l a n2 0 1 7 - 2 0 2 2| 3 -
Figure 3.7. Annual Mean Temperature
Disaster and climate risks erode development gains and hamper the full development of the country’s potentials. Such risks may be attributed to several factors including the country’s geophysical condition and uncontrolled and unsustainable development, particularly in ecologically-sensitive and hazard-prone areas.
The primary concern is to reduce the risks on the communities exposed to the threats of climate change impact and disasters. Essential to this is an analysis of hazards present in an area. Scientific agencies have gained significant accomplishment in hazard mapping. The Mines and Geosciences Bureau completed a 1:10,000 scale hazard map of the country showing flooding and rain-induced landslide-prone areas. The Philippine Institute of Volcanology and Seismology has prepared volcanic and earthquake related maps such as those on tsunami, ground rupture, landslides and liquefaction. On the other hand, PAGASA is mapping hydrometeorological-related hazards such as flooding and storm surge. The Department of Science and Technology, through its Project NOAH (Nationwide Operational Assessment of Hazards), has also produced high-resolution flood hazard maps for the country’s major river basins.
Methodologies for determining resilience levels of areas to natural hazards have also been developed. These can be the basis for planning infrastructure, housing, and other services, as well as for designing programs and projects.
Hazard maps, and risk and resiliency methodologies are useful in identifying and designing mitigation measures to minimize the negative impact of hazardous events. Specific climate change adaptation and disaster risk reduction strategies are best formulated at the regional and local levels where specific hazards can be defined. Furthermore, strategies for vulnerability reduction may be incorporated in sectoral plans to ensure the safety and resiliency of the people and the community.
P h i l i p p i n e D e v e l o p m e n t P l a n2 0 1 7 - 2 0 2 2| 3 -
Philippine Development Plan
2017-2022 Overall Framework
The Philippine Development Plan (PDP) 2017-2022 is the first medium-term plan anchored on the AmBisyonNatin2040, consistent with Executive Order No. 5, series of 2016. The priorities are guided by the Duterte Administration's 0 to10-point Socioeconomic Agenda, the regional consultations conducted by the various planning committees and the social development summits that culminated in the 20@22 Agenda: Malasakit at Pagbabago.
The goal of the PDP 2017-2022 is to enable Filipinos to attain a “matatag, maginhawa at panatag na buhay.” It acknowledges the accomplishments of the previous administrations, adopts the good practices and carefully considers the lessons gleaned from these experiences.
Assessment and Challenges
The performance of the economy during the past administration, though impressive, actually fell short of the targets set in the PDP 2011-2016. In contrast, those pertaining to the social dimension – reducing poverty incidence and unemployment rate – surpassed the target. The target to significantly reduce underemployment, however, remains elusive.
INDICATOR (IN PERCENT)
GDP growth rate
6.5 - 7.5
7.0 - 8.0
7.0 - 8.0
GVA in AFF
(0.9) - 0.1
2.0 - 3.0
2.5 - 3.5
GVA in Industry
9.8 - 11.0
8.6 - 9.7
9.3 -1 0.3
GVA in Services
6.0 - 6.9
6.8 - 7.8
7.2 - 8.1
6.7 - 6.9
6.6 - 6.8
6.5 - 6.7
Figures in redimply that the accomplishment is below target.
The country’s gross domestic product grew at an average of 6.1 percent during the period 20102016, the fastest 6-year moving average since 1978, although this was still below target. The 2014 below-par performance of 6.2 percent growth rate could be explained as due to TY Yolanda. The slowdown in 2015 largely reflected in the Industry sector was, perhaps, due to capacity constraints in major roads, ports and airports, as well as government underspending. The poor performance of Agriculture, meanwhile, can be traced to extreme weather events experienced by the country across the spectrum – tropical cyclones, El Niño-induced drought – and pest infestation. Worse, output in the fishery subsector suffered consecutive declines for six out of the past seven years, except in 2013.
The more serious criticism against the Philippines’ growth profile is the stark inequality in development. As illustrated in Figure 4.1, the per capita Gross Regional Domestic Product (GRDP) in the National Capital Region is not only the highest, but is more than twice that in CALABARZON (Region 4A), second highest per capita GRDP) and more than twelve times that in the Autonomous Region in Muslim Mindanao MM (lowest per capita GRDP).
Figure 4.1 Per capita GRDP in constant prices, 2009 and 2015
The unemployment rate targets were surpassed. This was achieved by the dramatic reduction in the youth unemployment rate, from 16.6 in 2010 to 11.6 in 2016. Apart from the increased labor demand in support of economic growth, a big factor was the expansion of the Pantawid Pamilyang Pilipino Program (Pantawid Pamilya) to the secondary level and, beginning 2016, the implementation of the senior high school program, which increased school participation (and, therefore, reduced labor market participation) of those aged 15 to 17 years.
The underemployment rate, however, remained high. Despite the poor economic performance of agriculture, it continues to account for a significant share of employment – close to 30 percent. But the jobs available were seasonal and low-paying, hence, underemployment in the agriculture sector was about 25 percent, compared to 20 percent in industry and close to 15 percent in services.
The target to reduce poverty incidence was also met. From a baseline of 26.3 percent poverty incidence in 2009, the target was to reduce this to 22.5 percent in 2015 but the actual rate was 21.6 percent. This was due to the 82 percent increase in per capita income among the bottom three deciles, which was much higher than the 29 percent increase in the poverty line. Subsistence incidence also declined from 10.9 percent of individuals in 2009 to 8.1 percent in
A major factor that resulted in the significant decline in poverty rate is the expansion of Pantawid Pamilya. Pantawid Pamilya provided cash transfers to family beneficiaries conditional on the attendance in school of child members and in Family Development Sessions of parent/s and the healthcare seeking behavior of families. In fact, the decline in poverty incidence would have been more pronounced had individuals and families been more resilient, and the economic sectors more prepared to withstand natural and human-induced shocks, or at least able to recover quickly from the shocks. Food inflation, though generally tame throughout the period 2010-2015, rose to at least 7 percent from June to October of 2014 due to the lingering effects of TY Yolanda, which was made worse by the decision to restrict rice imports in mid-2013. This situation proved very detrimental to the poor given that a sizable share of their budget goes to food, particularly rice.
Viewed from the perspective of the average citizen, however, the recent progress made in the economy and governance offers no immediate relief from the grind of daily living. There is a prevailing sense among significant sections of the population – the farming communities that must deal with drought and typhoons, the rural folk who have no access to health and other social services, the urban poor who have the put up with the congestion and the neighborhood bullies, the minimum wage earners and middle-level professionals who must spend time in traffic travelling to and from work, the fresh college graduates as well as the credit-constrained small entrepreneurs whose time and energies are exhausted going through the bureaucratic maze to obtain clearances, the aggrieved ordinary citizen with no access to the authorities to obtain redress for substandard service – that either too little is being done or they have been completely bypassed by Government. This situation, where citizens feel increasingly alienated from their government, cannot be allowed to persist. Otherwise the door is opened for opportunists promising quick fixes that could only lead to far worse outcomes.
That many aspects of people’s welfare are in fact only weakly reflected in earned incomesshould underscore the urgency of paying attention to outcomes in gauging the success of government actions. Although sustaining the momentum of economic growth must remain a key objective, the real measure of achievement is the extent to which people’s lives have been improved.
By the end of 2022, more Filipinos will be closer to achieving their AmBisyon to have a “matatag, maginhawa at panatag na buhay.” The Administration will lay down a solid foundation for more inclusive growth, a high-trust and resilient society, and a globally competitive knowledge economy.
Growth will be more inclusive as manifested by a lower poverty incidence in the rural areas, from 30 percent in 2015 to 20 percent in 2022. Overall poverty rate will decline from 21.6 percent to 14.0 percent in 2022 – equivalent to lifting about 6 million Filipinos out of poverty. The proportion of subsistence poor individuals will fall from 8.1 percent to 5.0 percent. Food inflation will also be closely monitored, to serve as an early warning indicator on the welfare of the poor. It should not go beyond the bounds set for overall inflation, which is at 2 to 4 percent.
The unemployment rate will decline from the current 5.5 percent to 3-5 percent in 2022. Assuming a slight increase in labor force participation rate to 64.1 percent, this implies that 950,000 to 1.1 million new jobs will be generated per year. Youth unemployment rate will decline to about 8 percent from the current 11 percent. In areas outside NCR (AONCR), emphasis will be on improving the quality of employment. The underemployment rate in AONCR will be reduced to 16-18 percent by 2022.
There will be greater trust in government and in society. The indicators for this will need to be developed and then measured by the Philippine Statistics Authority for 2017 and 2022.
Individuals and communities will be more resilient. It should be noted that the Philippines ranks fourth in terms of number of natural calamities faced in 1995-2015. This is on top of risks from human-induced hazards like ideologically-motivated conflict, criminality, house fires, etc. Building up resilience involves reducing exposure to hazards, mitigating the impact of the risks, and accelerating recovery if and when the risk materializes. An index will be developed, considering the interplay of these three components; data will be collected to estimate the baseline (2018) value and the value in 2022.
Filipinos will have greater drive for innovation. As measured by the Global Innovation Index, the Philippines will rank among the top one-third by 2022 from being in the top 60 percentile (74 out of 128 economies) in 2016. More individuals will be encouraged to obtain knowledge, or acquire skills and expertise. There will be more of the youth and adults (aged 15 and up) who will be engaged in employment, education or training.
The strategies to achieve the targets cited above fall under the three major pillars of “Malasakit,” “Pagbabago,” and “Patuloy na Pag-unlad”. There are cross-cutting strategies, as well, to support the other interventions and to provide a solid bedrock for all strategies to work.
Enhancing the social fabric:The aim is to regain peoples’ trust in public institutions and cultivate trust in fellow Filipinos.
Public offices will be characterized as people-centered, efficient and clean (Chapter 5). Government offices will be equipped with adequate facilities, personnel will be trained and systems will be improved to ensure the prompt delivery of services. Citizens will be also empowered to engage with the government.
Administration of justice will be perceived as swift and fair (Chapter 6). From a fragmented mode of delivering justice, a “sector approach” will be adopted. Processes -- from lodging of complaints to investigation, prosecution, and conviction -- will be streamlined and harmonized across the different agencies in the executive and judiciary branches of government. Systems to exact accountability (including indicators of efficiency) will be put in place.
Filipinos will have increased awareness of and will learn to value the country's cultural diversity and shared heritage (Chapter 7). Existing traditions will be meticulously documented and archived in Knowledge Development Centers and Institutes of Living Traditions to be established across the country. Heritage conservation plans will be formulated and implemented. Cultural education will be mainstreamed in basic and higher education.
Values for the common good, to include “malasakit” values, will be promoted using several media and integrated in school curricula. Personnel in government will also be taught about these values and how these will be demonstrated in public service.
“Pagka-malikhain” for development is another value that will be advanced under the PDP 2017-2022. This will include building awareness and appreciation for the arts, and then promoting creative excellence.
Inequality-reducing Transformation: Ordinary Filipinos will feel the “Pagbabago”.
For each economic sector, there will be more opportunities for growth of output and income, and sub-sectors and economic groups that used to lag behind, like small farmers and fisherfolk and MSMEs, will benefit from these opportunities (Chapters 8 and 9).
Opportunities in agriculture will be expanded by fostering linkages with the industry and service sectors for more efficient value-adding processes and more effective commercialization. For this to happen, productivity in agriculture will need to be raised. This will be done by first developing an integrated agricultural map to identify the comparative advantage of particular areas. Then, collaboration between and among the science, technology and extension systems in agriculture will be strengthened. Greater farm mechanization and technology adoption will be promoted. Organized farm management will be encouraged to achieve economies of scale. Climate-resilient small-scale irrigation systems will be constructed or retrofitted, as necessary.
The governance framework for fisheries management will be improved to make it effective. This includes, though is not limited to, undertaking regular fish stock inventory, strictly enforcing measures against illegal, unreported and unregulated fishing, and regulating fishery structures. As with agriculture, the fishery subsector will also benefit from stronger linkages with the Industry and Service sectors for value-adding, packaging, storage, transport, distribution and marketing, and even financing.
The Industry and Service sectors will be globally competitive as the country strengthens its economic ties with other countries. Domestic suppliers, including MSMEs, will be encouraged to maximize the benefits of existing free trade agreements and other cooperative arrangements.
Increasing presence in the global market, supply and value chains will be made more efficient with stronger forward and backward linkages. This will require a dependable supply of raw materials, adequate labor and technology, and the presence of suitable soft and hard infrastructure.
Inclusive business models and social enterprises will be developed to better engage MSMEs.
MSMEs will enjoy easier access to finance. At the same time, financial literacy training will be provided to MSMEs, cooperatives, and to Overseas Filipinos and their families.
Restrictions on foreign investments will be eased and bureaucratic processes for both local and foreign investors will be streamlined.
Individuals and people groupswill have more options to develop their full potential as aimed for.(Chapter 10).
Nutritional and health status will be improved by ensuring access to proper care at all life stages. Health financing programs will be sustained.
Lifelong learning opportunities will be made available to all. Government will invest in soft and hard infrastructure for basic education to make the facilities more accessible and the curriculum more relevant. Quality of higher and technical education will be improved so that they produce competent and highly nimble individuals and workforce.
Policies and programs will be put in place to increase the income-earning ability of individuals. These include apprenticeship and internship programs, opportunities for re-tooling and skills enhancement, and policies to promote work-life balance and ensure that workers receive decent wages.
Vulnerability of individuals will be reduced (Chapter 11). Some individuals and people groups have inherent vulnerabilities, like children, older persons, women, persons with disabilities, and indigenous peoples. Policies and programs will be put in place to ensure that their social, cultural and economic rights are protected and that they are eventually empowered to participate in the development of the country. There will also be programs to help ensure the well-being of individuals and families against economic risks, natural and human-induced hazards.
Communities will be more resilient (Chapter 12). The housing program of the Duterte Administration will be in line with the new urban agenda of developing integrated neighborhoods and sustainable communities. Innovative solutions to housing construction will be encouraged and alternative modes of financing will be developed to improve the access of families to decent housing. Community relations will be strengthened and community organizations will be empowered to engage with government in ensuring the safety, security and development of their communities.
Increasing potential growth:It is imperative that economic growth is accelerated and sustained for “Patuloy na Pag-unlad.”
A major strategy to sustain and further accelerate growth in the future is by graduating to a knowledge economy (Chapter 14).Science, technology and innovation (STI) in agriculture, industry and service sectors will be promoted and even accelerated. Policies and programs to facilitate knowledge flows and protect intellectual property rights will be put in place or enhanced. A culture of creativity will be created, beginning with the very young students in basic education and all through higher and technical education. Innovation hubs will be established as a way of providing venues to nurture creativity and innovation.
Potential growth can be further enhanced by accelerating the full harvest of the demographic dividend (Chapter 13). There will be aggressive efforts to ensure that families will be of the size that they can adequately care and provide for. Age-appropriate sexuality education will be integrated in the school curriculum. Full information and orientation programs on responsible parenthood and reproductive health will be made widely available. Access to services will also be made easier in order to fully meet the need for modern family planning methods. This will be complemented by measures to increase the labor market participation of women, to defer childbearing and attain wholesome birth spacing (Chapter 14).
Enabling and supportive economic environment. Growth will be supported by maintaining macroeconomic stability, putting in place a strategic trade and fiscal policy, and enhancing access to financial services. The tax system, including its administration, will be made simpler, fairer, more equitable and internationally competitive (Chapter 15).
Market competition will be enhanced (Chapter 16). There will be broad-based communication and advocacy efforts to increase awareness about the benefits of market competition. Reporting and feedback mechanisms will also be developed through which consumers can report on anticompetitive behavior and practices of firms. At the same time, government policies and regulations will be reviewed to ensure competition-neutrality.
Foundations for sustainable development. The physical environment, on the other hand, will be characterized by a balanced and strategic development of infrastructure, while ensuring ecological integrity and a clean and healthy environment.
The next six years will be characterized as the “golden age of infrastructure” in the Philippines (Chapter 19). Spending on infrastructure will increase to at least 5 percent of GDP from less than 3 percent previously. The program will be rationalized based on strategic masterplans effecting inter-regional connectivity and integrated province-level plans, some of which will be developed and some updated. There will be greater complementation of the different modes of financing infrastructure projects – locally-funded, foreign assisted, and projects under public-private partnership.
Implementation of the infrastructure program will be fast-tracked by adopting a 24/7 work schedule for major infrastructure projects. Other issues will be addressed by better governance, policy and regulatory reforms such as the creation of an apex body to coordinate efforts in the water resource sector, ensuring availability of right-of-way, and streamlining processes in the issuance of permits necessary to implement the projects.
All these will be underpinned by ensuring national security against internal and external threats
(Chapter 17). There will be earnest efforts to secure lasting peace through the resumption of peace talks and pursuing social justice. Agreements to resolve the conflict will be negotiated and implemented. Communities in the conflict-affected and conflict-vulnerable areas will be protected and developed. Government peace and development institutions will be strengthened to make them more responsive to peace, conflict and security issues.
Territorial integrity and sovereignty will be upheld and protected (Chapter 18). This will be achieved by strategic diplomacy and by continuously upgrading our defense capability. Government will strengthen bilateral relations, alliances and mutually-beneficial partnerships, ensure a strong presence in regional and multilateral forums, and develop new security and cooperation arrangements. The capability of the military, including law enforcers in terms of facilities, equipment and skills will be enhanced to protect our strategic interests and to effectively implement laws and policies.
A top priority of the Duterte Administration is the reduction of all forms of criminal laws and illegal drugs. This will be done through a holistic program that involves not only combatting crimes but also the corruption that perpetuate such acts (Chapter 19). The approach will be comprehensive and will include information and education campaigns, community organization and mobilization, and police-community partnerships to ensure public order and safety.
An important partner of development is the environment and natural resources (ENR) sector. Its contribution should be properly recognized, to wit: provisioning (e.g., food, raw materials, freshwater), regulating (e.g., local climate and air quality, carbon sequestration and storage, erosion prevention), supporting (e.g., habitats for species, maintenance of genetic diversity) and cultural (e.g., recreation, tourism). However, improper use and abuse of ENR greatly diminishes the quantity and quality of its contribution to development and, if left unchecked for some time, can result in the deterioration of the quality of life of the people it serves.
The PDP 2017-2022 contains strategies to rehabilitate and restore degraded natural resources, and protect fragile ecosystems. Even in urban areas, green spaces will be expanded. At the same time, there will be programs to improve the welfare of resource-dependent communities as they take on the role of primary stewards of the ENR (Chapter 20). The interventions will be designed following a ridge-to-reef approach and a sustainable area development framework so that the interdependence of the different ecosystems are considered. Policies to define property and usufruct rights will be put in place so that responsibilities for care and management of the ENR are identified.
Migration and development. This PDP gives deliberate attention to the special circumstances of Overseas Filipinos and their families. The goal is to protect their rights and improve their well-being, whether here or abroad, strengthen their engagement in governance and facilitate their integration in their country’s development while working abroad, and eventually reintegration in their home country. The appropriate strategies are mainstreamed in the relevant chapters.
The next chapters are structured similar to this overview chapter. Each chapter begins with an assessment of previous accomplishments and the lessons learned. This is followed by an enumeration of the medium-term targets, all directed to the attainment of the 0-10 Socioeconomic Agenda and towards AmBisyon Natin 2040. The strategies to meet these targets are then elaborated next.
Ensuring People-Centered, Clean, and Efficient Governance
A high-trust society broadens the opportunities for inclusive development. This trust is between citizens, peoples, the private sector, and government. A high-trust society is a necessary condition for facilitating official and business transactions, as well as interpersonal relationships. Citizens obey the law; they willingly pay the correct taxes trusting that government will prudently manage the fiscal resources. Government, in turn, is able to allocate adequate resources for public goods and services, especially to those who need them the most. The needy who benefitted from the prompt delivery of adequate services are then accorded better chances of achieving more in life. The taxpaying public, meanwhile, is able to pursue further their economic and other interests, secure in the knowledge that their rights over the fruits of their labor are protected, first by government and also by their fellow citizens.
The cornerstone of a high-trust society is the trust in government. This chapter discusses strategies to ensure a people-centered, clean, efficient, and effective governance by strengthening institutions, engaging and empowering citizens, and providing enabling mechanisms to improve access to public goods and services.
Assessment and Challenges
The previous Philippine Development Plan (PDP) focused on increasing transparency, citizen’s participation, and accountability. Significant achievements were made but much needs to be followed through in the current administration.
Reforms contributed to the improvement of the Philippine rankings in most global indicators. Although the country gained recognition from international award-giving bodies, it still ranked lower than most of its neighbors in the Association of Southeast Asian Nations (ASEAN). The challenge now is to strengthen the system and sustain or even surpass past achievements. In 2015, the Philippines met and even exceeded the end of plan (EOP) target for voice and accountability (≥50%) in the Worldwide Governance Indicators, but it did not reach the targets for other core indicators under governance. Compared to past percentile rankings, however, it rose steadily over the past six years, indicating effectiveness of governance reforms. This boosted the country’s ranking higher than most ASEAN countries in Voice and Accountability. However, control of corruption remained an issue (Table 5.1).
Table 5.1 Philippines’ Performancein the Worldwide Governance Indicators (WGI)vs. Selected ASEAN Counterparts, 2010-2015
2010 2013 2015
2010 2013 2015
2010 2013 2015
Source: World Bank (WB)
Over time, the country’s Corruption Perceptions Index (CPI) improved except in 2015, which may be attributed to the Priority Development Assistance Fund scam. Even so, the business and economic climate of the country steadily rose, with favorable results for the indices on Economic Freedom (EFI), Global Competitiveness (GCI), and Ease of Doing Business (EODB) (Figure 5.1). Economic Freedom reached its peak in 2016 (62pctl), the highest ever since the EFI’s first ranking in 2008. Stable macroeconomic environment, favorable market size, and increased business sophistication drove the steady increase of the country’s ranking in GCI. Meanwhile, ease of trading across borders and ease of getting electricity promoted the country’s rankings in the EODB Index.
Figure 5.1 Philippines’ Percentile Rank (pctl) in Selected Governance Indices, 2010 to 2016
Sources: 2010-2016 reports from Transparency International’s Corruption Perceptions Index (CPI);
WorldEconomic Forum’s Global Competitiveness Index (GCI); World Bank’s Ease of Doing Business (EODB)
Index; Heritage International’s Index of Economic Freedom (EFI)
More than the improvement in global ranking, the current administration aims to make government services more accessible by reducing requirements, processing time, and the signatories for the transactions. The challenge is to ensure that delivery of services is effective and efficient at all levels. For example, the Ease of Doing Business reportnotes that it takes
28 days for a business to secure a permit, longer than the President’s directive of three days. Among citizens, there have been complaints about accessing basic services such as getting driver’s licenses and passports.
Platforms for participatory governance were established but the general public was not yet deeply involved.As part of the Bottom Up Budgeting (BUB) approach to local planning and budgeting, 98 percent of cities and municipalities formulated their local poverty reduction action plans, surpassing the target of 95 percent; 55,480 projects were implemented.Under the Kapit-Bisig Laban sa Kahirapan-Comprehensive Integrated Delivery of Social Services program, 7,021 community projects have been completed in collaboration with people’s organizations (POs) and civil society organizations (CSOs).
In November 2012, the Commission on Audit (COA) launched the Citizen Participatory Audit (CPA) Program. This initiative to open the audit processes to citizens and CSOs was intended to improve effectiveness and efficiency in the use of public resources.
Vibrant civic engagement was also apparent in the May 2016 national elections, with a recordhigh voter turnout rate of 81 percent.
Platforms for citizen participation were made available but these were underutilized by the general public. Two possible reasons are ignorance and apathybecause of misinformation or lack of proper information. In line with the current administration’s thrust to directly engage the public at all levels, the previous platforms must be reviewed and modified for a more effective citizen engagement. At the same time, shared responsibility and accountability with civil society must be strengthened.
Government data were made available to the public; however, there was no contextsensitive or contextual measure of performance. Government data such as budgets, statistics, plans, and other relevant documents were made available using the Open Data portal (www.data.gov.ph). Government agencies also increased their online presence through websites and pages in social media platforms.
Provinces, cities, and municipalities (PCMs) garnered 76 percent full compliance to the Full Disclosure Policy (FDP), exceeding the target of 75 percent. Furthermore, all national government agencies (NGAs), government-owned and controlled corporations (GOCCs), and local government units (LGUs) are now registered in the Philippine Government Electronic Procurement System (PhilGEPS). As of 2015, 87 percent of NGAs and GOCCs used the PhilGEPS to publish their invitations to bid and contracts awarded as required by the Government Procurement Reform Act (RA 9184).
Almost all NGAs, GOCCs, and state universities and colleges (SUCs) complied with the transparency requirement to post budget and program information: 98 percent in 2015, compared to 87 percent in 2012. Moreover, updated citizen’s charters for 99 percent of NGAs and GOCCs were posted in conspicuous places. Submission of statements of assets, liabilities, and net worth (SALN) of public officials and civil servants was at 96 percent. The report on ageing of cash advance also increased to 98 percent in 2015 from 91 percent in 2012.
However, despite the multitude of available data online, it was still difficult to gauge the performance of the sector. Several global indices were available but these were not contextual to the Philippine setting. Thus, there is a need to develop local indicators to measure the progress of good governance initiatives. This information must also be made available and easily understandable to the public. Moreover, the quality of the data shared must be scrutinized as these are instrumental in the development of programs.
Measures to improve public service delivery and accountability were enhanced but compliance to standards remains low. LGUs garnered 74 percent compliance with respect to public financial management (PFM) standards in the 1stquarter of 2016, surpassing the EOP target of 65 percent. Incentive-based initiatives, such as the Seal of Good Local Governance (SGLG) and the Performance Challenge Fund (PCF), proved very effective in positively influencing the performance of local government units nationwide. LGUs conferred with the seal were provided with the Performance Challenge Fund that funded some anti-poverty projects in these LGUs.
Citizen feedback on the kind and quality of services rendered by the city and municipal governments were gathered through the Citizens’ Satisfaction Index System in 163 LGUs, exceeding the target of 153. Moreover, the Contact Center ng Bayan has grown steadily, reporting 63,281 complaints in 2015, a big improvement from the 2,685 in 2010.
The Civil Service Commission (CSC) expanded the coverage of the Report Card Survey (RCS), a critical component of the Anti-Red Tape Act (ARTA) of 2007 (RA 9485),from 50 frontline agencies in 2010 to 1,109 agencies in 2016. Passing rates have also improved from 78 in 2010 to 93 percent in 2016.
The Inter-Agency Anti-Corruption Coordinating Council was established to institutionalize transparent, accountable, and participatory governance. Anti-corruption initiatives were also intensified in the bureaucracy. The Governance Commission for GOCCs (GCG) was created in 2012 to fight corruption in government-owned and controlled corporations and improve the quality of management.
In local government, reforms were also introduced in the Sangguniang Kabataan(SK) with the inclusion of an anti-political dynasty provision, increase in the age requirement to 18-24 years, and training for SK officials on good government practices and fiscal transparency.
Public financial management reforms were also implemented. However, challenges remain in implementing these reforms, particularly the linkage of planning, budgeting, cash management, accounting, and auditing across the bureaucracy. Inter-operability remains an issue. In particular, the Government Integrated Financial Management Information System (GIFMIS) has not been fully established. Gaps in the information and communications technology (ICT) environment for financial control and accountability also need to be addressed. Moreover, those that have been proven effective must be institutionalized, preferably through legislation.
New imperatives in planning and budgeting must also be implemented. Examples are the application of enterprise risk management for financial and operational risks, which is a requirement for certification by the International Organization for Standardization (ISO) 9001:2015, and the mainstreaming of green growth principles in the planning process.
Measures to improve efficiency and competence of public service were initiated but these should be accompanied by higher absorptive capacity and better access to information. The Public Management Development Program capacitated 654 senior executives and middle managers in 2016, exceeding its target of 513. Various competency-based training programs have been implemented such as the Public Financial Management Certificate Program, Program to Institutionalize Meritocracy and Excellence in Human Resource Management (PRIME-HRM), and Government Procurement Policy Board procurement training courses.
Since the institutionalization of the Government Quality Management Program in 2007, certification for ISO 9001 Certified Quality Management Systems (QMS) increased. This included the certification of the Department of Budget and Management, Department of Labor and Employment, Bangko Sentral ng Pilipinas, among others. With the priority on the certification of frontline services, offices that are ISO 9001 Certified QMS reached 589, surpassing its target of 498.
The Performance-Based Incentives System (PBIS) was launched and implemented in 2012 through Administrative Order No. 25, s. 2011 and Executive Order No. 80, s. 2012. It was instrumental in upgrading the performance of the bureaucracy because it promoted merit, teamwork, and management control. In 2016, the bureaucracy achieved an overall compliance rate of 96 percent on basic governance conditions, higher than 88 percent in 2012. On performance management systems, the Strategic Performance Management System (SPMS) reached 2,321 agencies, 229 short of its 2,550 target for 2016.
There are legal frameworks and existing policies to improve performance management and accountability in government, such as the Anti-Red Tape Act (ARTA), anti-corruption laws, and the Strategic Performance Management System. However, compliance remains low due to inadequate control mechanisms and the agencies’ lack of appreciation of the flexibilities allowed in the system.
The Philippine Development Plan 2017-2022 aims for people-centered, clean, efficient, and effective governance. In particular, it aims to reduce corruption, achieve seamless service delivery, enhance administrative governance, strengthen the civil service, and fully engage and empower citizens.
Global governance indices such as the Worldwide Governance Indicators (WGI), Corruption Perceptions Index (CPI), Global Competitiveness Index (GCI), and Open Budget Index (OBI) will again be used to gauge the country’s quality of governance. To address the call for a more context-sensitive indicator, a national governance index will be developed by NEDA and then measured by the Philippine Statistics Authority. Table 5.2shows the targets corresponding to the desired subsector outcomes.
Table 5.2 Plan Targets to Ensure People-centered, Clean, Efficient, and Effective Governance
INDICATORS BASELINE (2016) END OF PLAN TARGET
Sector Outcome A: People-centered, innovative, clean, efficient, effective, and inclusive delivery of public goods and services
No existing national Fully functional national
National governance index improved
governance index governance index
Subsector Outcome 1: Corruption reduced
Percentile ranking in the WGI – Control of
Percentile ranking in CPI improved 43pctl 50pctl
Subsector Outcome 2: Seamless service delivery achieved
Percentile ranking in the WGI – Regulatory Quality
53pctl 60pctl improved
Percentile ranking in the GCI improved 59pctl 62pctl
Subsector Outcome 3: Administrative governance enhanced
Percentile ranking in the WGI – Government
Subsector Outcome 4: Citizenry fully engaged and empowered
Percentile ranking in the WGI – Voice and
OBI score improved 64/100 71
Strategies to improve governance fall under the Malasakit pillar of the PDP 2017-2022 (Figure 5.2). The desired outcome is to enhance the social fabric by making government worthy of people’s trust.
Figure 5.2 Strategic Framework to Ensure People-centered, Clean, Efficient, and Effective Governance, 2017-2022
People will trust a government that is clean, efficient, effective and people-centered. Policies and programs must also be responsive to the needs of the people; public goods and services must be delivered in a timely manner. While government is expected to enforce regulations, it must be perceived as fair and the regulations must be seen as necessary and not too burdensome.
The strategic framework to improve governance adopts a culture-sensitive perspective, gendersensitive paradigm, and human rights-based approach (HRBA) in public service. This ensures that the interests of vulnerable sectors such as indigenous peoples, persons with disabilities, women, youth, and children are well considered. Culture-sensitive governance will be encouraged through awards or incentives. Overseas Filipinos (OFs) will also be encouraged to participate in good governance initiatives (elections, providing feedback on service delivery, among others) in applicable strategies.
Subsector Outcome 1: Corruption reduced
Reducing corruption in government will increase people’s trust in government, which explains why “reducing corruption and bribery in all forms” is part of the Sustainable Development Goals (SDG 16). The strategies to reduce corruption include:
Promote public awareness of anti-corruption drives. The media will be used to publicize effective enforcement cases and encourage the public to report corruption. Schools and organizations will also be tapped to educate students and communities on anti-corruption. Corruption prevention talks and ethics development seminars will be done for public servants and the business sector.
Integrity Caravans, initiated by the Ombudsman (OMB), during youth and multi-sectoral forum, and barangay good governance seminars will be continued. This will promote and communicate the work and various anti-corruption programs of the OMB, and ways by which the public can be involved.
Implement prevention measures. The legal and policy framework for corruption prevention will be enhanced to ensure compliance with the United Nations Convention Against Corruption (UNCAC) and other international standards. Internal systems and procedures of government agencies will be assessed in terms of corruption vulnerabilities. Partnership with various stakeholders including legislature will be strengthened. The following initiatives are:
- Developing OMB’s Integrity, Transparency and Accountability Program (ITAP),which answers the need for customized training modules for public officials and private individuals.
- Continuing implementation of the Integrity Management Program (IMP), which aims to establish a systematic approach in building, improving, reinforcing, and sustaining a culture of integrity in public sector institutions. The culture is rooted in acceptable values, principles, and standards of good governance.
- Enhancing the income and asset declaration system by improving the system of filing and analyzing SALN. The OMB, with the Civil Service Commission and the Office of the President, is pilot-testing the implementation of an electronic-based SALN.
- Implementing the Blue Certification Programto revalidate the anti-red tape standards prescribed for business permits and licensing offices in local government units. The program has established a multi-level certification similar to the ISO-certification for management system standards.
Strengthen deterrence mechanisms. Specific initiatives include:
- Implementing OMB’s 8-Point Agenda (2011 to 2018),namely: (a) disposition of highprofile cases; (b) zero backlog; (c) improved “survival” rate of fact-finding; (d) enforced monitoring of referred cases; (e) improved responsiveness of public assistance; (f) improved anti-corruption policy and program coordination among sectors; (g) rationalization of the functional structure; and (h) enhanced transparency and credibility.
- Developing a National Anti-Corruption and Advocacy Plan,a five-year plan that will ease the transition from one administration to the next. It will adopt the National AntiCorruption Framework, a commitment under the United Nations Convention Against Corruption (UNCAC).
- Strictly enforcing and monitoring of anti-corruption laws and policies,which include the Anti-Graft and Corrupt Practices Act, the Anti-Red Tape Act (ARTA), National Guidelines on Internal Control System, Government Procurement Reform Act, mandatory provisions of UNCAC, the Code of Conduct and Ethical Standards for Public Officials and Employees (RA 6713), and the Anti-Money Laundering Act.
- Implementing the programs under the Investment Ombudsman,which ensure enforcement of laws, and handle complaints against public officers and employees. This program provides prompt action on investor-related grievances and speedy resolution of investors’ complaints.
Subsector Outcome 2: Seamless service delivery achieved
Public institutions will be responsive to the needs of the intended beneficiaries. Goods and services will be delivered in a timely manner to maximize the intended benefits. There will be greater preparedness to address possible risks from natural hazards, climate variability, and extreme events to lessen disruption in service delivery. The scope will be extended to include Overseas Filipinos (OFs). There will be close monitoring of political and socioeconomic situations in destination countries, and crisis contingency plans will be drawn up, as necessary, but well ahead of the breakout of the crisis.
Adopt a whole-of-government approach in delivery of key services.A whole-of-government approach means that government systems and processes work together to provide ease of access and use by citizens. To achieve this, the following initiatives will be undertaken:
- Achieving inter-operability of government processes,which includes converging of government databases, achieving a smart and automated government, and continuation of ongoing initiatives such as the Inter-Agency Business Process Inter-operability Program. The objective is to implement unified information and communications technology-enabled business processes and establish an information infrastructure that will allow the exchange, collaboration, and sharing of data. This will include administrative and field data of various government agencies on international migration that will be harmonized for evidence-based policymaking and planning.
- Becoming a “One Connected Government.”Citizens transacting with government will find it easier to locate and access government services and complete particular transactions end-to-end. Currently, applications for passports and business permits require applicants to transact with different agencies at different levels of government. The service delivery model can range from a simple co-location of agencies or onestop shops to an integrated single-window and single-door approach. For high impact, the government will identify the basket of basic government to citizen (G2C) services, government to business (G2B) services, and government to government services. The services and agencies will be clustered according to the citizen life cycle in the case of G2C services, or the business life cycle for G2B services; and then designate the point of service.
- Strengthening the linkages and coordination of agencies.There are administrative arrangements in government that require horizontal and vertical linkages of different agencies and offices. These are the NEDA Board, Cabinet Clusters, the LegislativeExecutive Development Advisory Council, and the National Disaster Risk Reduction Management Council, to name a few. These mechanisms will be strengthened and the linkages rationalized to improve decision-making, avoid duplication of initiatives, and maximize complementation of resources.
- Simplifying government transactions. Compliance-cost analysis and time-and-motion studies will be conducted for frequently-used government services to determine the cost of completing a specific government transaction. Documentary requirements, steps, processing time, and the number of signatories will be reduced to lessen the costs. The list of government transactions that will be simplified will initially include passport processes; driver’s license; BIR and LGU processes, rules and procedures that are burdensome to MSMEs; land administration (land titling, mapping, and transfer of titles); and services for Overseas Filipinos (job placement, membership to entitlements such as Overseas Workers Welfare Administration, Pag-IBIG, PhilHealth, and Social Security System).
- Implementing the National ID systemwill facilitate the delivery of public services especially to marginalized groups such as indigenous peoples and the poor. The national ID system will be harmonized with the civil registry system as well.
Implement regulatory reforms. Government will continue to review, simplify, and modernize its regulations to reduce regulatory burden, making it easier and less costly to transact with government. Specific initiatives include:
- Modernizing government regulatory processes. Previous initiatives to improve the regulatory environment will be sustained. This will then proceed to the next phase of the reform, which will develop an overarching National Regulatory Architecture with the following components: (a) a comprehensive national regulatory policy; (b) an appropriate institutional infrastructure to manage regulations; (c) regulatory making and review process; (d) regulatory framework per priority industry; (e) a quality regulatory management system; (f) a public consultation process; (g) competency development programs for relevant government bodies; and (h) the Philippine Business Regulatory Information System.
- Enhancing Project Repeal,which will continue to review, and repeal or amend existing regulations including legislations that impose unnecessary burden on business firms.
- Institutionalizing regulatory impact assessmentwithin government to improve the quality of regulations through a rigorous, evidence-based process in identifying and assessing policy options (regulatory or otherwise) that will deliver the greatest net benefit, taking into account all of the benefits and costs.
Improve productivity of the public sector. Productivity improvements will enhance the efficiency, economy and effectiveness of the public sector, thus be more able to provide timely and responsive government services. The initiatives under this strategy are:
- Promoting a culture of innovation and productivity in public sector organizations.This will be done through: (a) a national 5S campaign to raise consciousness on the fundamental concepts of orderliness, cleanliness, elimination of wastes especially waste of time and effort; (b) the One-Innovation per agency program, focusing on efficiency improvement and people-centered service delivery; and (c) institutionalization of lean management practices, office automation and knowledge productivity improvement.
- Enhancing and sustaining government performance in the delivery of quality servicesby upgrading the government quality management systems to be more client- and citizen-oriented and driving agencies towards performance excellence to boost citizen trust in government.
- Improving adaptive capacities to minimize disruption in service from natural and manmade hazards. Services are disrupted when natural or man-made disasters occur; therefore, government agencies including LGUs will be capacitated on climate change adaptation and disaster risk reduction, and will adopt business continuity practices.
Subsector Outcome 3: Administrative governance enhanced
Enhancements will focus on administrative and institutional systems.
Right-size the bureaucracy. A National Government Right-sizing Program will be implemented to enable the radical and transformational reform initiatives in the government. The program will require agencies to rationalize their staffing pattern with their mandate and functions, and in consideration of other agencies’ mandate and functions to eliminate duplication. It will also address the growing number of contractual personnel in government.
Strengthen results-based performance management (RBPM), public financial management (PFM), and accountability systems.PFM reforms will be continued to ensure that planning, budgeting, cash management, accounting, and auditing become integrated processes. Moreover, they must be aligned with the goals and targets set in the Philippine Development Plan (PDP). This provides the environment for transparency, accountability, efficiency, and outcome-orientation of government operations.
Cascading these efforts, local capacity-building programs on service delivery mechanisms will also be geared towards strengthening LGU capacities for integrated planning, investment programming, budgeting, implementation, and M&E.
Commission on Audit (COA) rules and regulations will be reviewed and simplified. Some rules will need to be revised in order to improve efficiency of government. For instance, the quick progression of technologies will require the procurement of new IT goods and services to keep government processes in sync with the kind of efficiency expected by the public because of improved technology.
Other initiatives include:
- Completing the Budget and Treasury Management System and the Single Treasury Account to provide an integrated systems environment, produce timely reports needed for decision making and audit, and generate savings in time and funds for government.
- Shifting to the Program Expenditure Classification-based agency budget structure starting FY 2018. This will promote the focus on outcomes and results and will be complemented by the results-based monitoring, evaluation, and reporting system of agency programs. In addition, the formulation of the Medium-Term Expenditure Programs for the largest departments and the Three-Year Rolling Infrastructure Program will strengthen strategic planning and better preparation, programming and execution of infrastructure and other investment programs and projects.
- Intensifying Results-Based Performance Management by refining performance measurements and strengthening the monitoring and evaluation systems of performance targets. The performance-based incentives system of government will focus on the achievement of desired sectoral, societal outcomes and results that matter to ordinary citizens. The functionality of the Strategic Performance Management System will also be reviewed.
Subsector Outcome 4: Citizenry fully-engaged and empowered
To ensure that government policies, programs and projects are responsive to the needs of the people, government will actively seek to engage citizens in all aspects of governance. To accomplish this, the following will be implemented:
Promote participatory governance
- Establishing mechanisms for citizens to be able to submit complaints on lapses in government services, and proactively negotiate with the government for delegated power of services or programs that would be beneficial to their communities. Volunteerism will be encouraged. There will be several platforms for inclusive volunteering to enable ordinary citizens to take an active role in information sharing, public resource management, conflict resolution, and other related processes. These will then strengthen democratic institutions for nation-building.
- Promoting shared responsibility and accountability with civil society in achieving development goals. This will mean transforming the role of civil society from thirdparty observer to partner in development. Programs that allow people to participate in the promotion of peace and order, community development, and citizen empowerment will be pursued to reach the remotest barangays. Examples of these are the Mamamayang Ayaw Sa Anomalya, Mamamayang Ayaw Sa Ilegal na Droga(MASA MASID) and Kilusang Pagbabago (KP).The MASA MASID was launched by the Department of the Interior and Local Government to involve community members in combatting the spread of illegal drugs, corruption, and criminality. It includes information and education campaigns, reporting mechanisms, and community-based rehabilitation programs.KP is an initiative that brings government services down to the ground by establishing a KP unit in each barangay to easily determine and respond to the needs of communities.
- Sustaining existing participatory governance initiatives at the local and international levels such as participatory budget partnerships, citizen participatory audit (CPA), and the Open Government Partnership (OGP) initiativewith the aim to develop the next PH-OGP Action Plans. Citizen’s participatory budgeting councils at the municipal level will be created. There will be genuine representation from farmers’ groups, fisherfolk, and other members of the basic and marginalized sectors, rural or urban poor organizations and community-based groups. Overseas Filipinos and their families will also be encouraged to participate in development planning. Overseas voter turnout in national elections, plebiscites, and related processes will be increased through the use of more advanced technology during elections. Comprehensive communication plans will be crafted at the local, national, and international levels on the value of right to suffrage and its impact to the diaspora.
Ensure public access to information. Comprehensive, timely, and relevant government information enables citizens to make informed decisions and then collaborate, and engage with public officials in enhancing public policies. The following initiatives will be pursued:
- Facilitating the passage of the Freedom of Information (FOI) Bill and other FOI measures. Executive Order No. 2, s. 2016 is only applicable to offices or agencies under the executive branch. For the public to gain access to all relevant government data, the FOI Bill must be enacted into law.
- Sustaining existing transparency initiatives, which are part of the good governance conditions of the PBIS such as the FDP, Transparency Seal, PhilGEPS posting, citizen’s charters, and submission of SALN, and report on ageing of cash advance. The Open Data initiatives, such as the Open Data Portal, will be enhanced according to the Philippine Open Government Partnership (PH-OGP) Action Plan.
- Providing information and communications technology (ICT) infrastructure for internet accessibility. There will be free wifi access in all public places; eCenters will be established in communities with minimal or no access to information and government services.
- Making information accessible offline and reader-friendly. Citizens who do not know how to access or do not have access to internet will still have access to information about government services and data. Government plans will be disseminated in a form that is easily understandable by the public.
Institutionalize response and feedback mechanisms. The existing response and feedback mechanisms such as the Citizen’s Hotline (8888) will be strengthened. The necessary followthrough protocols will be developed to ensure that response and feedback are systematically processed and tracked. Raising awareness on the existing mechanisms will be done, and as a supplement, incentivizing feedback loops will also be considered to increase engagement. Government will also ensure the security of citizens who reported complaints or incidents of corruption.
Implement electoral reforms. Participation in the electoral process is perhaps the most effective way for citizens to be involved in the affairs of government. Thus, political and electoral reforms to ensure zero disenfranchisement of the rights of suffrage will be prioritized. These will include voters’ education, regulations on campaign finance, orientation for newly-elected officials, among others. Technologies will be tapped to make the process of voting easier and more accessible. The Commission on Human Rights will monitor and advocate for policy measures to ensure the full and meaningful participation and inclusion of marginalized sectors in electoral processes.
Subsector Outcome 5: Civil service strengthened
Improving the public’s perception of government is tantamount to improving the public’s trust toward civil servants. A civil servant is expected to show professionalism, and must have ethical foundation and probity. The strategies to achieve this are the following:
Promote shared public service values. The values of professionalism, excellence, integrity and non-discrimination in public service will be adhered to by all civil servants through:
- Raising awareness of civil service values and norms among all government personnel
- Strictly implementing anti-corruption laws and provision under the Anti-Red Tape Act (ARTA)
- Instilling in civil servants their role as "duty bearers" to ensure human dignity in service delivery
Improve Human Resource Management (HRM) systems and processes.Program to Institutionalize Meritocracy and Excellence in HRM (PRIME-HRM), a key government-wide initiative to improve HRM practices and systems, will continue to be implemented and further strengthened by:
- Implementing competency-based recruitment, selection, and placement systems
- Intensifying competency-based learning and development systems
- Improving career development and succession planning
- Enhancing performance management systems
- Promoting care and compassion (health, wellness, occupational safety, disaster risk reduction and management, welfare) for government employees
- Improving competency-based rewards and recognition mechanism;
- Promoting HR management best practices sharing across the bureaucracy
- Using information and communications technology (ICT) effectively in HR management (HR analytics)
Develop and invest in human resource. The government must invest in developing its workforce so that civil servants are capable, effective, and efficient. This will be done by:
- Reactivating the Philippine Civil Service Academy (Presidential Decree No. 1218, s. 1977) to: (a) provide leadership and direction in all training activities and programs and integrate all HR development programs for all levels and ranks; (b) pursue in a more systematic, integrated, and purposeful scale, the training programs of the academy, particularly for middle management and first-line positions; (c) draw up and conduct continuing training programs for various employee levels in the career service; and (d) rationalize policies of scholarship programs for government employees, locally or abroad.
- Continuing training and capability advancement of government executives and highlevel civil servants to maintain an efficient and talented bureaucracy; to promote innovation, teamwork, reform-orientation, and outcome focus among government personnel; and to break the silo mentality. This will be done through a Career Executive Service Development Program for government such as the Public Management Development Program, the Leadership Certification for Middle Managers, the Public Financial Management Competency Programs, and the like.
- Conducting capability- and capacity-building interventions for first and second level civil servants to hone competencies and talents.
- Developing future reform leaders or leaders of changeto strengthen public sector capacity to transform institutions and regain people’s confidence in government. This will include capability-building programs on contemporary planning methodologies for environmental scanning, scenario building, forecasting, benchmarking, foresight planning, etc. Hardware and software will also be provided to ensure comprehensive and timely information and to enable a state-of-the-art analytics.
The following priority legislative agenda will be pursued:
Table 5.3 Legislative Agenda to Ensure People-centered, Clean, Efficient, and Effective Governance, 2017-2022
LEGISLATIVE AGENDA RATIONALE
Subsector Outcome A: Corruption reduced
Institutional strengthening of the
Strengthen the OMB by upgrading employee skills, augmenting compensation and benefits and enhancing fiscal autonomy to curb corruption
Strengthening the powers on asset forfeiture
Strengthen the forfeiture powers of the state and establish the Public Assets Management Corporation of the Philippines to expedite case processing
Expansion of the powers of the
Strengthen the institutional capacity of the OMB by amending certain provisions of RA 6770
Subsector Outcome B: Seamless service delivery achieved
Amendment of the Local Government Code
Amend the Local Government Code to address the challenges in local service delivery
Passage of the E-Government
Enable interoperability of government data and processes to increase efficiency and economy in the delivery of services.
Passage of the Unified National Identification System Act
Expand EO 420 to harmonize ID systems, and cover self-employed, the unemployed, minors and those working abroad
Amendment of the Corporation
Address the bottlenecks in starting an enterprise, protect minority investors, improve visitorial powers of the Securities and Exchange Commission, penalize fraud and graft and corruption, and provide mechanisms to avoid protracted litigation
Subsector Outcome C: Citizenry fully engaged and empowered
Passage of the Freedom of Information Bill
Require government agencies to allow public review and copy of all official information to promote meaningful and increased participation of the people in government decision-making and public accountability
Institutionalization of citizens’ participation in the budget
Allow the public to participate in decisions regarding the local budget in order to promote shared accountability
Subsector Outcome D: Administrative governance enhanced
Passage of the Budget Reform Act
Incorporate the necessary ingredients of a modern budget system: (a) a shift from obligation-basis to cash-basis; (b) and from a two-year appropriation shelf-life to one-year; (c) sustain a results-based approach; (d) establish an Office of the Comptroller General; and (e) strengthen the congressional power of the purse.
Passage of an Act Right-sizing the National Government to Improve Public Service Delivery
Implement transformational or radical improvements or shifts to streamline the operations of departments or agencies, right-size the organizational structure and staffing pattern, and simplify systems and processes to deliver public goods and services in the most efficient, effective and economical manner
Implement finance reforms in campaign expenditures, sources of funds and management of such to minimize corruption, promote transparency and informed decision-making
Strengthen the political party system to develop genuine political development and democratization
Provide an effective and expanded structural and functional organization to protect the human rights of Filipinos, here and abroad
Repeal the Government Auditing Code of the Philippines to review and update COA provisions
Enactment of a law regulating campaign contributions
Passage of the Party Development Act
Passage of a charter for the
Commission on Human Rights
Amendment of the Commission on Audit charter
Subsector Outcome E: Civil service strengthened
Passage of the Civil Service Address deeply-rooted problems besetting the public service (such as graft Code and corruption, red tape, violations of employee rights, and organizational
Creation of a Human Resource
Management Office in Local
Create a Human Resource Management Office in all LGUs to ensure adequate capacities for public service delivery at the local level
Enhanced Code of Conduct and
Ethical Standards for Public
Servants of 2016
Amend RA 6713 “Code of Conduct and Ethical Standards for Public
Officials and Employees” to promote shared public values in civil servants
Pursuing Swift and Fair Administration of Justice
Providing justice is a crucial element in enhancing the social fabric. It serves as a deterrent to those intending to violate the law, provides recompense and closure to the victims of those who violate the law, and gives a chance to those convicted of violating the law to face the consequence of their action and redeem themselves in society.
Providing justice is the role of government, therefore, the administration of justice must be swift and fair so that people trust government.
Under the Philippine Development Plan (PDP) 2017-2022, the traditional institutionsbased method of justice administration will be shifted to a more sector-based approach. It highlights coordination among the justice sector institutions, agencies, and actors to ensure a swift and fair administration of justice. This historic shift will deliver justice in a way that is responsive to the demands of its constituents.
Assessment and Challenges
Previous reform initiatives boosted the country’s ranking in the global indices.Advances made in the past six years toward improving the administration of justice and enhancing economic justice resulted in generally improved rankings in the Ease of Doing Business (EODB) Survey Index and the Global Competitiveness Index (GCI). These indices include indicators on judicial independence, efficiency of legal framework in settling disputes, efficiency of legal framework in challenging regulations, and ease of resolving insolvency. While there has been a decline in some indicators in the last three years, improvements are still generally remarkable over time. However, there are still many issues that need to be addressed.
Fragmentation of the justice system remains a challenge. Traditionally, the five pillars of the justice system – law enforcement, prosecution, courts, correction, and community – performed their respective roles independently, albeit with narrow focus on their spheres of authority. This resulted in procedural inconsistencies and lapses in policy guidance.
A key initiative, the Justice Sector Coordinating Council (JSCC) – composed of the Judiciary, Department of Justice (DOJ), and Department of the Interior and Local Government (DILG) and their relevant attached agencies – has become fully operational as a collaborative mechanism to implement the justice sector agenda. In addition, the establishment of the National Justice Information System (NJIS) also contributed in facilitating coordination among justice sector agencies. Although said accomplishments contributed in addressing fragmentation, the gains need to be further enhanced and scaled up.
Backlogs in resolving cases and delays in case development procedures continue to increase, and penal facilities are occupied way beyond capacity.Justice-related agencies have managed to speed up the disposition of complaints and cases for investigation, prosecution, and trial. The National Bureau of Investigation (NBI), for instance, reduced its backlogs to 13 percent versus the 15 percent target committed in the previous plan. Moreover, 130 Philippine Mediation Center (PMC) units were established to promote the use of
Alternative Dispute Resolution (ADR). This is higher than the 125 units targeted in the previous PDP. Various jail decongestion programs (e.g., HustisYeah! project, hiring of case decongestion officers, Assisting Courts System, Continuous Trial System, Enhanced Justice on Wheels [E-JOW], use of electronic [e]Subpoena and eCourts systems, etc.) were also effective. The number of detainees released was 5,166, which is slightly higher than the target of 5,000.
However, the uneven ratio between judges and caseloads, in which cases filed outnumber the cases resolved in normal operations, contributes to the piling-up and case hearing delays. In turn, it congests penal facilities to about 500 percent of its original capacity.
Lack of public awareness, trust, and investor confidence underscore the people’s low appreciation of the country’s justice system.The Supreme Court continues to enjoy a positive image in fighting corruption for the past six years based on the 2016 Surveys of Enterprises on Corruption. However, due to existing protocols and structural constraints, coordination problems among justice sector agencies continue. This results in blame-passing among agencies: court dismissal of cases for lack of evidence blame prosecution; prosecutors, in turn, blame the police for poor evidence gathering; and the police blame the lack of policy guidance. As a consequence, clients see the justice process in the country as very inefficient and slow.
Limited resources of relevant agencies cause inefficiency and slow delivery of justice. Many capacity-building programs have been implemented (preparation of judicial affidavits, forensic evidence trainings, implementation of Task Force Katarungan at Kalayaan), and even the establishment of alternative courts (E-JOWS, eCourts, automated hearings, etc.) to support the swift and fair administration of justice.
Lack of human resources is evident in the uneven ratio between public attorneys and court. A public attorney-to-court ratio of 1:3 remains, despite the law (Republic Act 9406) requiring one public attorney per court (1:1). Even financially, the funding for projects for the whole justice sector is not enough to fully implement them and respond to sector efficiency concerns.
The PDP 2017-2022 aims to ensure that justice is administered fairly and swiftly. In order to address the pervasive and persisting issues of the justice system, there will be an overhaul of existing mechanisms. At the core of the methodological shift is a streamlined interdependence among the justice sector institutions, a process that recognizes their respective jurisdictions and mandates.
The country’s ranking in the World Governance Indicator (WGI) and World Justice Project (WJP) will continue to be monitored. The target by 2022 is to move up the ranking in the WGI rule of law indicator to the upper half; WJP fundamental rights and criminal justice indicator to the upper 25 percentile; and WJP civil justice indicator to the upper 20 percentile. Table 6.1shows the results matrix at the level of subsector outcomes.
Table 6.1 Plan Targets to Pursue a Swift and Fair Administration of Justice, PDP 2017-2022
INDICATORS BASELINE END OF PLAN TARGET
Sector Outcome A: Swift and fair administration of justice ensured
Subsector Outcome 1: Civil, criminal, commercial, and administrative justice systems enhanced
Percentile Rank in the WGI – Rule of Law 50.00
Percentile Rank in the World Justice Project (WJP) 73.45
Rule of Law: Fundamental Rights (2016)
Subsector Outcome 2: Sector efficiency and accountability improved
Percentile Rank in the WJP Rule of Law: Civil Justice 81.00
Percentile Rank in the WJP Rule of Law: Criminal 74.34
Justice is inclusive when it is swift. Enhancing systems and rationalizing interdependence among justice sector institutions or actors are essential developmental approaches to provide the timely delivery of justice. There will be harmonized efforts and seamless coordination among the different actors involved in civil, criminal, commercial and administrative justice.
Figure 6.1 Strategic Framework for Pursuing a Swift and Fair Administration of Justice
Delivery of justice will be impartial and meted out objectively, without fear or favor. In relation to this, the institutions that serve justice will be held accountable. Appropriate resources will also be provided to the justice sector actors to support the fair administration of justice.
Subsector Outcome 1: Civil, criminal, commercial, and administrative justice systems enhanced
Institutionalize the Justice Sector Coordinating Council (JSCC). A national body to monitor and facilitate coordination between and among justice sector agencies and other stakeholders will be institutionalized. Organized in 2009, the JSCC is the vehicle for institutionalizing mechanisms to ensure effective and efficient coordination among all justice sector agencies and other stakeholders. Effective coordination will facilitate the necessary planning, budgeting and investment programming systems to effectively address systemic issues and concerns in the justice sector.
At the ground level, more justice zones will be established to provide a platform for effective inter-agency coordination in the criminal system. Justice zones are areas or localities where the minimum degree of inter-agency coordinative reforms are at work. They will be subject to the selection and rating criteria formulated by JSCC. Justice zones will monitor the life spans of criminal cases and track activities and targets set by relevant actors and agencies. For the plan period, at least 14 justice zones will be established and assessed for possible replication.
A Justice Hub will also be established in selected local government unit (LGUs). This infrastructure will house courts, prosecutors, public attorneys, the police, and a jail with classified housing for surrendered or apprehended drug offenders. The justice hub will serve as a one-stop venue for criminal justice and will aim to improve access to judicial processes.
Strengthen economic justice. To strengthen the administration of economic justice, substrategies to establish and enhance special courts as well as streamline land disposition rules will be undertaken:
- Establish and enhance special courts.To rebuild the confidence of investors, the sector will designate special courts to address specific cases and pursuecontract enforcement. For instance, infrastructure courts will hear and decide all disputes arising from construction or infrastructure contracts, whether government or private-initiated and implemented. Commercial courts will handle cases related to corporate rehabilitation, insolvency, liquidation, intellectual property rights, and competition cases. Cybercrime courts will coincide with their designations as commercial courts. Lastly, environmental courts will be strengthened to keep up with the influx of pending environmental cases.
To streamline judicial activities, special courts will be selected from the regular jurisdiction courts of the regional trial courts (RTCs). Court officials and personnel will be trained to apply the special rules adopted by the Supreme Court. The special courts will use the proven formula of the Guidelines for Litigation in Quezon City courts, the Guidelines for Continuous Trial, and other rules intended for the speedy disposition of cases. In addition, factual issues will be referred to commissioners selected from a pool of accredited professionals in relevant fields. As such, proceedings before the commissioners will not be governed by the structures of the rules in regular trials. Only legal issues will be handled by judges.
- Streamline rules on the disposition of land cases.The rules on land disputes will be streamlined to impose the mandatory consolidation of causes of action relating to the same real property, whether for possession, ownership, or damages. Assessed value threshold
will be maintained in order to operate under the jurisdiction of Batas Pambansa Blg. 129, as amended by Republic Act 7691, albeit excluding delegated jurisdiction on cadastral and land registration cases. The jurisdiction of the National Commission on Indigenous Peoples(NCIP) on claims of indigenous peoples and indigenous cultural communities (ICCs) on ancestral domains will be taken into account.
The Supreme Court will study the need to designate special courts on land dispute settlement.
Deliver justice real-time. Real-time justice will be operationalized through inter-agency efforts. The sector-based approach will deliver justice real-time and as needed. Sub-strategies mentioned below will help in the reduction of aging of criminal, civil, administrative and commercial cases from filing to judgment.
- Streamline investigation and prosecutorial processes.The DOJ will streamline criminal investigation, prosecution and case management processes, including those for heinous crimes and illegal drugs. The sector will push for the implementation of Republic Act 108674in raising scientific investigation capabilities, and strengthening witness and whistleblower protection to increase investigative and prosecutorial effectiveness.
The Philippine National Police (PNP) will coordinate with the prosecutors even during case build-up to acquire technical guidance in securing evidence that will generate successful prosecution to conviction. The procedures under Administrative Order No. 35will be followed.
- Enhance and expand the continuous trial system.Reducing time gaps between trial procedures, as endeavored by the implementation of Continuous Trial Guidelines, will be further enhanced through the introduction of electronic and multimodal means of providing services and communication, all to be voluntarily agreed upon by the parties. Courts will operate on a daily continuous trial basis, on top of their regular trial work in other cases.
- Roll out automated systems in court hearings nationwide.Key to the success of the conduct of continuous trial is the implementation of automated hearing. This platform allows the courts to issue real-time orders and processes such as subpoena, warrants of arrest, and hold departure orders. Automated hearings also expedite the issuance and termination of courtissued papers. The government will implement automated hearings in all trial courts in the National Capital Judicial Region (NCJR) by 2017, and subsequently and in phases in the rest of the courts nationwide.
- Enhance and expand night courts.Night courts, which are currently operational in Manila, Quezon City and Pasay courts, address the need to provide immediate judicial action after office hours. They prioritize the handling of bail applications, lifting of warrants of arrest, urgent applications for hold departure orders, plea bargain agreements, and voluntary pleasof guilt. A night court can also conduct summary hearings that require urgent action in cases involving women and children,
tourists, and detainees. Each night court will have an assigned DOJ prosecutor and public attorney to facilitate such procedures.
The Supreme Court will constitute a technical working group to study the current night courts and craft rules for enhancing the services rendered by them. The rules will be adopted within the first half of 2017; additional pilot night courts will be established by the second half of 2017.
- Adopt special rules of procedure for the speedy disposition of multi-party cases.To handle multi-party cases, special rules of procedure will be crafted to govern cases of this nature. The procedures will be simplified to give access to those who seek redress in mass injury cases, whether through civil or criminal proceedings. The procedures will prevent procedural missteps – as demonstrated in the 1987 MV Doña Paz sinking and Maguindanao Massacre – and facilitate due process for all parties.
- Enhance and expand eSubpoena and eWarrant systems.The eSubpoena enables the courts to send subpoena via e-mail directly to the police witnesses and the units assigned. It also allows the PNP to monitor compliance and sanction police officers who fail to attend hearings. In addition, the PNP’s eWarrant system allows easy search, viewing, and retrieval of information relating to a person with an outstanding warrant of arrest or a previous arrest record. The government will aim to expand the operationalization of eSubpoena and eWarrant systems to ease preliminary judicial process
- Strengthen forfeiture and recovery of assets.The Philippine criminal justice system will undertake measures to strengthen civil forfeiture and recovery mechanisms, especially in relation to cases of corruption, illegal drugs, human trafficking, cybercrime, economic sabotage, terrorism, and other organized transnational crimes.
- Enhance and expand family courts.Pursuant to Republic Act 8369 (Family Courts Act of 1997), family courts will be enhanced and expanded in the RTCs. Special training will be given to judges, court personnel and other stakeholders, including law enforcement agencies, Department of Social Welfare and Development (DSWD) personnel, and the barangays.
- Implement measures to enhance administrative justice.An “Agrarian Justice on Wheels” Program, similar to the “Justice on Wheels” Program of the Supreme Court, will be implemented to bring the Department of Agrarian Reform Adjudication Board (DARAB) to the location of the tillers in order to speedily resolve disputes in tenurial arrangements.
Subsector Outcome 2: Sector efficiency and accountability improved
Deliver fair and equal justice. An impartial and non-discriminatory administration of justice promotes inclusion. To achieve this, several sub-strategies will be undertaken:
Increase access to legal aidespecially of the poor and the marginalized sector.Whereas legal aid is provided, several challenges remain such as gaps in the process and the non-availability of competent counsels.
Plantilla positions for public attorneys and prosecutors nationwide will be increased. By the end of the plan period, the current prosecutor-to-court ratio of 1:1 will be increased to 2:1, and the public attorney-to-court ratio of 1:3 will be increased to 1:1.
The 24-hour hotline of the public attorney’s office (PAO) will be expanded to cover all regions at a more acceptable public defender-to-population ratio.
Overseas Filipinos (OFs) will be provided with a court hotline for inquiries about the status of their cases. Facilities for remote testimony will also be established through embassies for pending court cases and utilizing automated hearings. Remote filing of small claims will also be allowed among OFs.
Likewise, the Bureau of Jail Management and Penology (BJMP) and the Parole and Probation Administration (PPA) will continue its paralegal programs that look after the rights of detained individuals on pre- or post-conviction. The Supreme Court will continue consolidating issues regarding legal aid rule, particularly on clinical legal aid programs in law schools and agrarian legal aid.
- Strengthen victim legal protection and assistance.Access to justice will be made more inclusive especially for persons with special needs including women, children, persons with disabilities, senior citizens, and indigenous peoples. The DOJ will strengthen victim assistance work toward developing child-sensitive and victim-centered approaches to child rescue operations, case build-up, and prosecution. Further, gendersensitive, child-friendly, and accessible public assistance desks and interview rooms will be established, starting with prosecution offices nationwide. The PNP will sustain their women’s and children’s desks and other related initiatives.
Fragmented mechanisms in existing witness protection and victim assistance programs for child witnesses and victim-survivors will be addressed by strengthening coordination between DSWD, PNP, and DOJ.
By amending Republic Act 7309, DOJ will intensify the Victims Compensation Program. It will increase the compensation for victims of unjust imprisonment and violent crimes, improve access to the program, and enhance its administration.
Likewise, the Commission on Human Rights (CHR) will intensify its efforts to facilitate access to justice by: (a) monitoring and evaluation; (b) empowering the poor and marginalized to seek response and remedies for injustice; (c) improving legal protection, awareness and aid; (d) civil society and parliamentary oversight; (e) addressing human rights violations in the justice sector; and (f) strengthening linkages between formal and informal structures.
- Pursue strategies and reforms to decongest jails and detention facilities.The pursuit of fair and equal justice also includes measures to decongest jails and detention facilities.
The Task Force Katarungan at Kalayaan will be continued to eventually cover, by the end of 2017, cities outside Metro Manila where there are more than 500 inmates in a detention facility. Established in trial courts in Manila, Quezon City, and Pasay City, the Task Force tracks the progress of criminal cases of all detained persons within the courts’ jurisdiction. It gathers information to support actions that should be undertaken to speed up the trials, and thus decongest the detention facilities. An implementation manual produced as a result of the Manila City Jail experience will serve as guide for the establishment of future task forces.
The DOJ will pursue bail reforms,including the review and update of the 2000 DOJ Bail Bond Guide. The reforms will rationalize and institute equitable amounts and procedures, not just in response to the jail congestion problem, but also to the socioeconomic, crime prevention and law enforcement implications.
On the other hand, BJMP will address the 550 percent congestion by fast-tracking the release process of qualified inmates.
- Pursue corrections reform strategies.With the war on drugs and intensified campaign against criminality, the penology system—from preventive detention, to serving of prison sentence, probation, parole, executive clemency, and final release or discharge—will have to be reformed in a systemic way. This will involve the establishment of a unified corrections framework and systems that includes custody, rehabilitation and social reintegration. This will be done through the establishment of a single correction agency, or a harmonization of processes, standards, and programs across different corrections agencies.
While such is underway, the implementation of new legislations on the modernization of the Bureau of Correction (BuCor), recognizance, amended probation law, and good conduct time allowance will be pursued.
The BJMP's eDalaw Program helps offenders, especially those who are in inaccessible corrections and penal facilities, to communicate virtually with their families, communities and legal counsel. As part of the program, video and internet equipment will be installed in justice zones between 2017 and 2019, as well as in other penal facilities.
Bias against job applicants with criminal records can be addressed by rallying the business sector to open their work places to these returning offenders. The alternative learning system in BuCor gives detainees educational options while serving time. The therapeutic community modality program provides counseling and guidance to inmates. The DILG has implemented barangay-based reintegration programs. These programs will help returning offenders reintegrate into society and reduce reoffenders.
The war on drugs has spawned a different need for corrections and reintegration. For drug users who enter the criminal justice system, documentation and recordal will be done through the DILG's National Centralized Database of drug offenders which will be linked to the Criminal Justice Information Exchange (CJiX).
Enhance accountability through an engaged citizenry. Engaging the citizenry will spur trust and enhance public accountability. By launching broader information, education, and communication (IEC) campaigns, the public will better understand the justice system.This will lead to a higher degree of citizen engagement, which in turn will facilitate sectoral and agencybased accountability.
The Justice Sector will work toward instituting several modes of feedback mechanisms. This will come in the form of: (a) agency-client satisfaction surveys on frontline services to examine the impact of the Anti-Red Tape Act (ARTA), Government Quality Management System (GQMS) and other performance management and accountability mechanisms; and (b) survey on access to justice and procedures, to be included in the nationwide census commissioned by the Philippine Statistics Authority (PSA). Results of these surveys will provide a baseline of people’s outlook and perception of the justice system and its corollary institutions.
Another activity is the crafting of a communication plan that will effectively convey initiatives and processes to stakeholders, especially the step-by-step process of the justice system from filing of a complaint up to the disposition of cases. It will utilize the wide reach of social media platforms, and reinforce barangay helpdesks.
Enhance sector efficiency. Central to the justice reform initiative is the establishment of a framework of coordination among judicial agencies that recognizes their specific functions and mandates. The framework will converge efforts where needed and will shift the mode of service delivery of the sector. The goal is to depart from the prevailing mindset of institution-focused performance to sector-aware performance and sector-directed targets. This will be achieved through the following:
- Establish a central evidence unit (CEU) that will serve as the main repository of all evidence in all criminal cases.Currently, inefficient processing of evidence has resulted in case dismissals, and which has caused frustration among public and government institutions. To address this, an integrated system will be put in place to handle electronic and physical validation and documentation of evidence coming from various agencies: from law enforcement, prosecution, and the courts. Once implemented, it will obviate the need for evidence custodians to appear in court and authenticate the evidence. Consequently, loss or corruption of evidence will be reduced, if not completely eradicated. Likewise, the lack of evidence custodians will be addressed. This system will usher in a swifter, accountable and more transparent evidence processing and presentation.
- Adopt a uniform template for court-bound and court-issued papers to reduce time gaps to the minimum.These templates will ensure consistency and speed up the submission and processing of required documents. Templates for criminal and civil cases will be accessible to the public online as part of the Trial Courts Automation Project. The National Prosecution Service (NPS) will prepare their own templates for institutions of criminal actions and offense checklist.
- Identify areas for rationalization of resources for easier sector budget support.To ensure efficient delivery of service, the following will be addressed: staffing deficiencies, rationalization of court positions, selection process, harmonization of human resource standards, and implementation of inter-agency programs across justice sector agencies to achieve multidisciplinary approaches in handling cases.
- Undertake joint training programs to reorient all sector actors toward a coordinated delivery of justice real-time.Trainings on handling small claims cases and resolution will be conducted for DARAB members. The Philippine Judicial Academy (PhilJA) and the National Competitiveness Council (NCC) will conduct trainings on handling competition cases for commercial courts and involved agencies. Joint trainings on handling cybercrime cases will be pursued through PhilJA, DOJ, NBI, and PNP for judges and personnel of the cybercrime courts, prosecutors, and law enforcement agents.
- Efforts will be undertaken to reinforce ADR mechanisms so that courts can refer cases for ADR and help in the speedy disposition of cases. The PMC will continue to establish mediation units all over the country.
Toward the end of the plan, the Office for Alternative Dispute Resolution (OADR), through Republic Act 9285, will operate as a discrete functional agency of the DOJ. It will explore methods of promoting and strengthening ADR mechanisms and practices in government. These include ADR at the level of barangay, law enforcers, prosecutors, public attorneys, administrative and regulatory agencies, among others. Further, mediation being piloted by the DOJ will be rolled out to all prosecution offices.
Aside from increasing the coverage of the Katarungang Pambarangay, the DILG will conduct more trainings on ADR to surpass its previous accomplishment. It will partner with the Supreme Court through the PhilJA in formulating a "trainers training module" so that it can acquire the capacity to conduct trainings nationwide and on a long-term basis for members of the Lupong Tagapamayapa. At least two trainings will be conducted in 2017.
As for law enforcement, the PNP will formulate its rules for mediation techniques for petty disputes. The Supreme Court, through PhilJA, will partner with DILG in training PNP personnel on mediation techniques. The collaboration intends to formulate standard rules for mediation and roll out trainings in 2017.
The ADR will explore attributes of community-based or indigenous conflict resolution processes to augment issues on access and further improve non-judicial mechanisms.
Information and communication technology (ICT) will be used sector-wide to help address fragmentation in the justice system and greatly enhance the information management of the whole justice sector.TheNational Justice Information System
(NJIS), supported by the Department of Information and Communication Technology (DICT) and funded by Congress since 2012, is a project that involves the development and setup of core agency information management systems and inter-agency exchange mechanisms among them. In a Memorandum of Agreement (MOA), the DOJ leads the project. Participating agencies are the DILG, Philippine Drug Enforcement Agency (PDEA), and Dangerous Drugs Board (DDB).
The CJiX will be established in all justice sector agencies; each agency will then develop its ICT systems, as appropriate. This will build the structure necessary to facilitate interchange of crime-related data pertinent to civil actions and special proceedings, such as fraud in commercial transactions, unfair competition, infringement on intellectual property rights, and infrastructure and land disputes. Agencies at the core of this network are DOJ, DILG, and the judiciary. A key feature of the CJiX is the harmonization of criminal definitions and procedures, as well as consensus on data capture, storage and retrieval.
The Single Carpeta System will establish inmate information management systems for the BJMP, Board of Pardons and Parole (BPP), and PPA, providing an exchange portal among them and with the Inmate Management Information System of BuCor.
The Prosecution Case Management System of the DOJ is also undergoing enhancements for implementation in 2017. This will form part of the Law Enforcement Case Management System that will also cover the case management systems of the PNP, NBI, Bureau of Immigration (BI), PDEA, and DDB.
- Mechanisms to utilize ICT infrastructure in the judicial process will be established.The Enterprise Information System Plan (EISP), a major reform program, is the judiciary’s roadmap to maximize the use of ICT. Its component, the Judiciary Case Management System (JCMS), addresses the twin problem of docket congestion and delay through the automation of the clerical processing of cases from inception to promulgation of decision. A major strategy is the eCourts system, which will put into a single loop all the case management systems that exist in various court levels and allow for a seamless, electronic transmission of essential case data from lower level courts to the Supreme Court. It involves the electronic capture, storage, management, and retrieval of essential case data to aid judges and court case processors in efficiently handling the volume of cases that flood the judiciary.
In the long-term, eCourts will enable eFiling of cases and of subsequent pleadings such that the filing of both civil and criminal complaints as well as of subsequent pleadings may be carried out by simply accessing the court through its website.
- The justice sector will work together in developing, adopting and continually updating a national crime index. This will include all crimes and its corresponding penalties as prescribed in the Revised Penal Code and special penal laws. The index will be used for purposes of the NJIS and CJiX, crime statistics and research, implementation of the 2015 United Nation (UN) Standard Crime Classification for Statistical Purposes, as well as development of vital policies and legislations, including codification and indexation of crimes, penalties and bail bond amounts.
Following are the key legislations that will play an important role in improving justice administration during the plan period. The set of agenda was formulated with full cognizance of the Supreme Court’s fundamental role in the determination of questions of constitutionality of present and future legislations, and preservation of the independence of the judiciary.
Table 6.2 Legislative Agenda to Pursue Swift and Fair Administration of Justice, 2017-2022
LEGISLATIVE AGENDA RATIONALE
Swift and Fair Administration of Justice
Subsector Outcome A: Civil, commercial, criminal and cdministrative system enhanced
Codifying the Philippine Criminal Laws
Codify all penal laws, update the Revised Penal Code provisions in the process, and henceforth adopt a historical compilation-type of codification akin to the U.S. Federal Statutes compilation.
Streamlining the criminal investigation process
Guide law enforcers and prosecutors on the standards set by laws and rules, and on probable cause for the commencement of a criminal action.
Creation of new courts
Restudy the distribution of courts under BP Blg.129, the Judiciary Reorganization Act, in relation to the population per proposed court location, historical volume of filings, and the existing dockets of the courts in that location. Where necessary, the existing courts may be redistributed and new courts created. It is also more practical to vest the Supreme Court with the power to assign and reassign judges in order to address inequalities in case distribution.
Creation of additional prosecutor and public attorney positions
As new courts are created, increase the number of public prosecutors and public attorneys (who are assigned to courts for trial duty).
Amendment of Republic Act 9165 or “An Act Instituting the
Comprehensive Dangerous Drugs
Act of 2002”
Amend RA 9165, particularly its very strict rules for evidence to be considered admissible in court proceedings, and for the same to be given weight.
Review of the standard of proof in determining probable cause
Increase the threshold for the investigation phase to harmonize it with the steep threshold for the trial phase.
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LEGISLATIVE AGENDA RATIONALE
Restorative Justice Bill
Craft a clear policy that will be visibly identified by law, providing a humane process through which remorseful offenders accept responsibility for their misconduct, particularly to their victims and to the community.
Streamline the rules to impose the mandatory consolidation of causes of action relating to the same real property, whether for possession, ownership, and/or damages.
Amend the Anti-Rape Law, pursuant to the CEDAW recommendation to capitalize “lack of consent” on the part of the victim as an element of the crime, instead of the element of “just force, threat or intimidation.”
Review and streamlining of land ownership laws and remedies available, in accordance with the National Land Use Act and Indigenous Peoples' Rights Act with respect to jurisdiction of NCIP
Amendments to the Anti-Rape Law of 1997 (RA 8353)
Revisions on the Local Government Code
Increase the coverage of the Katarungang Pambarangay and to mandate the composition of the Lupong Tagapamayapa, revising Section 399 of the Local Government Code which only requires for membership that one be a resident of or have work in the barangay concerned; to include the accreditation of service by lawyers on the Lupon as legal aid; and to institutionalize the concept of inhibition due to relationship and interest.
Subsector Outcome B: Sector Efficiency and Accountability Improved
Strengthening of the Victims Compensation Program
Amend its enabling law, RA 7309 to increase compensation for victims of unjust imprisonment or detention and victims of violent crimes as well as to increase access to the program and enhance its administration.
Strengthen the CHR as a National Human Rights Institution (NHRI), compliant with the requirements of the UN Paris Principles affecting NHRIs worldwide. Among the requirements are ensuring NHRI’s independence, hence full fiscal autonomy is necessary.
Mandate the establishment of a unified penology system.
Establishment of the Commission on Human Rights (CHR) Charter
Establishment of a Unified Penology System
Strengthening of the witness protection and whistleblower protection
Strengthen the Witness Protection Program to protect whistleblowers, and to encourage more witnesses to be covered and remain therein, toward successful prosecution, especially for heinous and high profile crimes.
Addressing dependencies on LGU support through legislation, policy and the national budget
Augment the compensation packages of the affected officials, as indicated in the General Appropriations Act. The perception of dependence on LGU support, specifically through the receipt of allowances and other material assistance, creates a level of doubt, if not distrust, in the mind of the public. Meanwhile, it must be recognized that the current salary levels of judicial and prosecutorial officials are wanting.
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Promoting Philippine Culture and Values
The Philippine Development Plan (PDP) pays close attention to the empowering nature of culture. Cultural awareness is a requirement for social inclusion and equity. Enhancing the social fabric toward a high-trust society entails building better relations for social cohesion among people. More and better interactions among members of a community, in turn, require awareness and appreciation of culture and values that drive people’s attitudes and behavior. Culture is that complex whole of the people’s way of life, which includes the knowledge, belief, art, law, morals, customs, values, ideas, sentiments, and any other capabilities acquired by a person as a member of society. It offers a summation and distillation of the past that provides a sound basis for living in the present and marching into the future.
Culture has several dimensions; its role in development spans and intersects with multiple sectors. As such, culture is regarded as one of the pillars for achieving inclusive, sustainable, and human-centered development. Building culture into the formulation of policies and in the design of development interventions enhances the effectiveness of programs and projects because cultural contexts are recognized. Failure to acknowledge the significance of culture in shaping our society may lead to cultural fragmentation, perceived distrust toward fellow Filipinos, parochialism, perpetuation of historical injustices, and inability to collaborate for nation building.
The priority areas of the cultural agenda are: (a) safeguarding and enshrining our cultural heritage; (b) achieving equity and inclusion in access to cultural resources and services; and (c) sustaining and enhancing cultural assets to foster creativity and innovation for socio-economic growth.
Assessment and Challenges
The Philippines is a nation of diverse cultures but this is not adequately documented and existing documentation is not easily accessible.Cultural forms and creative expressions are as diverse as the number of communities existing in the country. There are about 120-170 languagesspoken by 110 ethnolinguistic groups. Culture also varies according to age group, gender, spirituality, and socio-economic class – even persons with disabilities have their own culture. However, a complete assessment of the country’s diverse cultures, covering both the tangible and intangible, remains a challenge because data are sparse, scattered, and not regularly gathered. Efforts to create a database are constrained by lack of cultural experts to conduct research and gather data in a culture-sensitive and ethical manner, and by lack of funding to sustain these activities.
Filipino identity has been undermined but there are inherent Filipino values that can be nurtured toward promoting the common good.Our colonial experience gave rise to feelings of inferiority as manifested by our culture of hiyaor shame. The pervasive undermining of what it means to be Filipino gave way for regional identities (e.g., Ilocano, Tagalog, Waray, Maranaw) to overshadow national pride. This led to a society that has become disconnected from its core culture and is characterized by fragmented identities. Values like malasakit, bayanihan, orpangaddatanthat manifest pakikipagkapwa-tao, a way that Filipinos recognize kinship among themselves, need to be inculcated for national unity and social cohesion.
Channels of learning about our history, culture, and values have not been effective. Formal education across all levels emphasize developing literacy and skills in other fields over values education or critical teaching of history. Mainstream media failed to promote positive values in its pursuit of profit for the market-driven entertainment industry. Popular shows or movies “extol visual and aural symbols, characters, designs, replete with cultural ignorance and misinformation.” As a result, the level of consciousness among Filipinos about their own culture and embedded values remains low.
The concerns of culture extend beyond the national borders.There is also a need to consider the situation of overseas Filipinos or the diaspora of Filipinos, especially second and third generation Filipinos, in destination countries. It is important to consider that these migrants are likely to be less rooted in the Filipino culture and its history even as they also need to learn about and adapt to the culture of their destination countries.
Climate change and human-induced risks to the environment require mechanisms to mitigate their impact on communities, tangible heritage, and biodiversity.Cultural and historical structures built centuries ago that continue to stand today are tangible ties of the present generation to its past, giving life to the nation’s history in ways that the written text cannot provide. People need things that they can see, feel, taste, smell or hear in order to appreciate Philippine culture and history. Structures, monuments, and sites are some of the more easily recognizable icons. While the economic value of heritage sites can mostly be seen in the revenue generated from tourism, their greater value lies in what they symbolize for the local community and the key cultural and spiritual messages attached to them. Heritage structures can provide a sense of identity and belongingness, while recognition of their value can bring a sense of pride.
Heritage structures are vulnerable to the impact of climate change and human-induced disasters. Efforts to prevent their destruction need to be set in place. Unfortunately, conservation materials and the skilled labor required are expensive. Moreover, among national, regional, and local governments, development and modernity are often the priority over the conservation of important cultural assets of the country.
The current governance framework for cultural development has been inadequate in addressing the concerns of the sector.The government has consistently recognized the importance of culture in national development through landmark legislationsthat created the cultural agencies with clear mandates. But conflicting provisions in certain laws compromise the implementation of cultural initiatives.
The underrepresentation of marginalized sectors in local councils prejudice the quality of implementation and mainstreaming of culture in governance. Culture bearers, such as the indigenous peoples, are either denied or limited in their rightful representations in local fora despite the requirement of a mandatory representative at all levels of decision-making that affect their communities.
Another issue is the conflict between property rights of private individuals or entities and the cultural rights of indigenous peoples over their ancestral domain.
Existing laws include provisions on conservation and safeguarding of cultural heritage, protection, recognition, and empowerment of diverse cultures. However, violations are not penalized. This concern revolves around the unethical and exploitative extraction of knowledge, skills, and practices from indigenous cultural communities or repositories of local knowledge.
Stakeholders across the country pointed out that there is no coordinating body with regional presence to promote cultural development and address concerns at sub-national levels. There is continued clamor for the creation of a Department of Culture to address the increasing needs for equitable access to cultural resources and services, enhanced cultural education, improved conservation and safeguarding of cultural resources, and culture-driven sustainable development.
Despite the legal mandates, agencies do not have adequate resources to implement programs for cultural development. Cultural agencies generally depend on contractual staff for the operation of the agencies due to lack of plantilla positions. Considering the magnitude of the responsibilities and the long-term nature of public services for cultural development, there is a need for a bigger pool of regular human resources.
The government will increase the level of cultural awareness, inculcate values for the common good, cultivate creativity, and amplify national pride among Filipinos. These will be resonated in development plans across all levels of government. These will likewise be supported by adequate resources, capacity building for government agencies on culture-sensitivity, and increased engagement with stakeholders.
Given the cross-cutting nature of the culture agenda, the practice of volunteerism will be promoted and pursued, especially in the academe; corporate, non-government, and international volunteer service organizations; and government.
Core outcome and output indicators that will be monitored to ensure progress toward increasing the level of cultural awareness, inculcating values for the common good, cultivating creativity, and strengthening culture-sensitive governance and development are presented in Table 7.1.
Table 7.1 Plan Targetsto Promote Philippine Culture and Values, 2017-2022
END OF PLAN TARGET
Sector Outcome A: Philippine culture and values promoted
Subsector Outcome 1: Our diverse cultures valued
Subsector Outcome 2: Values for the common good inculcated
Subsector Outcome 3: Pagkamalikhain or creative excellence advanced
Subsector Outcome 4: Culture-sensitive governance and development strengthened
Figure 7.1 Strategic Framework to Promote Philippine Culture and Values, 2017-2022
Subsector Outcome 1:Our diverse cultures valued
Only with strengthened awareness of the different cultures in the country can Filipinos have the capability to integrate their cultural heritage into their lives and contribute to national development. Different segments of society must have a general consciousness that they belong to a national community. They should be aware of their heritage and be determined to ensure its preservation. It necessitates the establishment of mechanisms for recognition such as historical markers and a database of tangible and intangible cultural assets. Valuing cultural diversity therefore requires its recognition, protection, safeguarding, and promotion. To achieve this, the following strategies will be implemented:
Develop, produce, disseminate, and open access to information about Filipino culture. Under this PDP, learning materials will be developed in order to raise awareness about the country’s cultural diversity. Various agencies will collaborate to disseminate these information materials to their respective stakeholders, including overseas Filipinos (OFs) who may be reached through the Philippine embassies abroad, or anybody interested in learning about the country’s diverse cultures.
Institutionalize and intensify heritage conservation plans and programs. Protection of tangible heritage will be undertaken through comprehensive conservation plans, while recognizing that it is a shared responsibility of every Filipino.
Establish Knowledge Development Centers (KDCs) and Schools for Living Traditions (SLTs) for building the capacities of Filipinos. Knowledge Development Centers will be established to document, conserve, and protect tangible and intangible cultural heritage for posterity, as well as to enrich the people’s knowledge and sense of ownership of various elements of Filipino culture. Schools for Living Traditions (SLTs) have been the safeguards of intangible heritage since 1995 because they ensured its transmission to the next generations of indigenous peoples and the Bangsamoro. These schools will thus be expanded to educate more people who wish to learn skills from the various culture bearers.
Expand inclusive cultural structures as civic spaces for dialogue and cultural exchange. Cultural infrastructure and facilities will be used as venues for fostering social cohesion and valuing cultural diversity. Cultural structures, such as museums, cultural centers, archives, libraries, art galleries and other cultural facilities, will be made more inclusive in order to allow for dialogue and cultural exchange. The use of embassies for the regular engagement of Filipinos abroad in cultural initiatives will be institutionalized. Such facilities allow for the continuity of the intangible cultural heritage, practices as well as other creative expressions.
Subsector Outcome 2: Values for the common good inculcated
Instilling values for the common good into the consciousness of all citizens will provide the needed positive and transformative change that will eventually lead to a high-trust society.
Determine a set of core values that foster the common good. While there will always be conflicts of interests and differences in beliefs and principles, there are values that are common to Filipinos and that are important for social cohesion and inclusive development. Values that are embraced by various Filipino communities will be identified. Among them are discipline, persistence, and grit, as well as having a positive disposition for which Filipinos are known. Other values that many Filipinos share are Pagkamalikhain(creativity), as evidenced by Filipino ingenuity, and Malasakit(roughly translated to compassion or empathy), as evidenced by the readiness and willingness to help, especially in times of calamities. Establishing the core values, however, does not preclude the freedom of different cultural communities from defining their own values.
Because there is no existing baseline to serve as a starting point, there is a need to examine how social values are tackled in all institutions, such as schools, government, media, among others.
Utilize various channels of values inculcation to reach all community members. Once established, families, local communities, civil society organizations, workplaces, formal and informal education systems, and media platforms will be tapped to ultimately inculcate the core values in the general population.
Increase government efforts for promoting values that foster the common good. To reach the population, the production of information materials on the identified set of values will be intensified. Projects, activities, and programs that promote these Filipino values will also be created, implemented, integrated, and reviewed across all levels of government.
Mainstream cultural education in the basic, technical, vocational, and higher education systems. Promotion of these core values can take advantage of the reform of the basic education system through the K to 12 curriculum, particularly as regards the development of “21st century skills.” The desired outcome of the reform is to ensure that students are equipped with not only functional literacy and skills but also with the values necessary to become productive members of society. In particular, the reform identified the need to instill ethics among students – particularly focusing on virtuous behavior.
In addition, other means and channels for values formation will be utilized through the collaboration of several agencies in order to cover all stages of human development.
Subsector Outcome 3: Pagkamalikhainor creative excellence advanced
A culture of creative excellence needs to permeate various levels of public consciousness as the foundation of a globally-competitive knowledge economy.
Boost the development of Filipino creativity as a tool for cohesion and impetus for a culturebased industry and creative economy. Learners in the academe need to appreciate at a young age the importance of inventiveness and creativity. Inter-disciplinary collaboration among public and private sectors will boost innovation in various areas.
The country should also nurture certain mindsets: an entrepreneurial spirit that rewards industry and smart work, giving primacy to design in reinforcing cultural and national identity, generating solutions through innovation, and valuing intellectual property. It is also imperative to foster a culture that values arts, science, technology, and innovation. See also Chapter 14. Advancing the value of creative excellence will be integrated with the inculcation of values that foster the common good and appreciation of diverse cultures, so that creativity is developed together with core values. This will then result in the constructive pursuit of solutions to social ills.
Build appreciation of Filipino creativity. To realize the potentials of the creative process, the agents of creativity will be empowered and supported by an institution that will encourage the production of creative works, invest in human development of its stakeholders, support their products, and develop the industry (see also Chapter 9). It will provide due recognition to the contribution of the culture sector and other stakeholders concerned with heritage and creativity, to the social and economic life of the country.
Subsector Outcome 4: Culture-sensitive governance and development strengthened
The government has an important role to play in a nation’s cultural development. It can provide the needed resources to ensure the preservation and development of Philippine culture, and the exploration and understanding of Philippine history. In addition, local governments can support community initiatives to include culture in their local development plans.
Pursue institutional reforms for cultural development. A coordinating body that will streamline services and activities must be established. This will enable a systematic launch of cultural initiatives nationwide. Mechanisms will be built to improve the capacity of the culture sector in the fields of governance and legislation. This means improving infrastructure support for cultural agencies and strengthening the implementation of relevant policies.
Existing legislations need to be reviewed to assess whether the measures are still appropriate given the technological, political and social developments, and whether established mechanisms remain relevant in addressing issues such as those brought by climate change or human-induced disasters. Penalty clauses in applicable and relevant laws and regulations will also be based on a solid framework for cultural development.
Culture-sensitivity will be enhanced in government bureaucracies so that policymakers will not only focus on deriving economic benefits from cultural assets, but also recognize the intangible value of the creative process that pushes its citizens to imagine, create, and innovate.
Establish historic and cultural complexes nationwide as hubs for cultural education, entertainment, and tourism. This will help in showcasing the best of the Philippines for cultural tourism, which can contribute to economic growth.
Develop cultural assets across the country. Considering the geographic situation of the country, development of cultural assets is necessary to broaden access to cultural resources and activities.
Strengthen the protection of the rights of vulnerable sectors (indigenous peoples, women, youth and children, and PWDs) to access cultural resources and live a life free from discrimination and fear. Citizens must appreciate the principles behind cultural protection and become proactive defenders of culture themselves. Civil society, the academe, media, and other agencies of the culture sectorcan contribute to the efforts, but government needs to create the enabling environment for conserving and enriching the collective memory of the nation.
There is also a need to engage and seek the participation of indigenous cultural communities in the formulation of policies and measures that concern their communities and their environment. Indigenous knowledge and practices provide valuable insights and tools for ensuring environmental sustainability. This is an intangible heritage inextricable from the country’s biodiversity heritage. See also Chapter 5.
Table7.2 Legislative Agenda to Promote Philippine Culture and Values, 2017-2022
Modernization Act for the National Library of the Philippines
Establish the charter of the National Library of the Philippines to promote
full intellectual and cultural development of the Filipino. It will also standardize public libraries and ensure their funding.
National Museum of the Philippines Act
Strengthen the National Museum.
UNESCO Declaration on Cultural
Ratify the declaration.
Commemoration of the Indigenous
Peoples’ Rights Act
Declare a national, non-working holiday for the recognition and promotion of the rights of indigenous peoples.
Strengthening the Conservation and Protection of the National Cultural Heritage
Amend the Heritage Law (RA 10066). Update its provisions on jurisdictions.
Film Industry Development Act
Include film appreciation, construct local cinematheques, replace the Metro Manila Film Festival with a national film festival in December, encourage the production of films by providing incentives.
An Act Providing for the Welfare
Protection of Artists and Cultural
Protect and promote the rights of artists and cultural workers (e.g., conservationists) to be considered as persons actually engaged in cultural work and to benefit from all legal, social and economic advantages pertaining to the status of workers.
Establishment of the Department of Culture
Reorganize the National Commission on Culture and the Arts into the Department of Culture and the Arts, define its power and functions.
Strengthen the National Endowment for Culture and Arts.
Establishment of Kawanihan ng Pagsasalin/ Bureau of Translation
Establish an institutional mechanism for accreditation and
professionalization of translators in Filipino and other Philippine languages
Establishment of the Kandungan ng
mga Wika at Kultura in Rogongon, Iligan City
Establish a cultural complex comprising training centers, languages laboratories, language park, and balay-wika (languages museums)
Establishment of Local Culture and Arts Councils and Allocate Funding similar to the Gender and Development (GAD) Fund or
Special Education Fund
Establish offices for culture and arts in LGUs, with a mandate to protect and promote local cultural heritage and arts.
Establishment of an Institute for Cultural Heritage Conservation of the Philippines
In line with the implementation of the Cultural Heritage Law (RA 10066), there is a need to come up with an institute that will offer trainings and workshops on cultural heritage education through formal, alternative and informal education. This will emphasize the protection, conservation, preservation, and safeguarding of cultural heritage and properties.
It is envisioned to be an institute on Philippine conservation that offers education programs on methods and approaches that adhere to accepted international standards of conservation but adaptable to Philippine setting.
Public Art to Infrastructure
Allocate a certain percentage of the budget for any building to public art as part of infrastructure. An example is a space for art installations in infrastructure projects.
Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries
The agriculture, fisheries, and forestry (AFF) sector is pivotal in generating employment for about a third of the country’s labor force, thereby reducing poverty and inequality for three-fourths of the poor who are in the rural areas. AFF is also key to providing raw materials to the manufacturing and service sectors, resulting in forward linkages in terms of higher-paying and more stable job opportunities. Intensifying efforts to revitalize the AFF and harnessing its growth potentials are needed to promote more inclusive development. Given the sector’s links to agribusiness, interventions and investments will be channeled to expand existing opportunities and develop new ones, thus inducing greater participation of small farmers and fisherfolk.
Assessment and Challenges
The performance of AFF in the past three years indicates that revitalization must be strengthened. The contribution of AFF to the country’s gross domestic product (GDP) continued to decline. It recorded an annual average GDP share of 10 percent from 2013 to 2015. This declining contribution is a stylized fact as economies progress and undergo a structural transformation. However, such transformation has been slow, and the growth of AFF weak. Its annual average gross value added (GVA) grew by only 1.0 percent from 2013 to 2015, and contracted by 1.3 percent in the first three quarters of 2016. Central Luzon, CALABARZON, Northern Mindanao, Central Visayas, and SOCCSKSARGEN have been the regions with better-than-average performance.
The modest output expansion accompanied by a drop in employment in AFF translated to an average annual labor productivity growth of 2.9 percent in the last three years. Compared with the industry and services sectors, AFF labor productivity has been the lowest.
Table 8.1 GVA Growth Targets under the Philippine Development Plan (PDP) 2011-2016 versus Accomplishments (in percent)
1Q-3Q 2014 2015
Source of basic data: Philippine Statistics Authority
Crops subsector – the primary driver of AFF – pulled down the overall growth.On the average, the GVA of crops grew only by 0.2 percent during the period 2013 - 2015 (see Table 8.1). Its poor performance was due to: (a) typhoons and El Niño that adversely affected rice and corn production; (b) coconut scale infestation in CALABARZON; and (c) limited adoption of high-yielding varieties of commodities. On the other hand, production of high-value commodities such as banana, pineapple, and mango increased and gained better prices due to high market demand and improved crop management practices.
Fisheries maintained a weak performance.GVA of fisheries continued to slump, which can be attributed to reduced fishing activities due to typhoons and extreme weather condition and the implementation of the closed season policy in several areas. Closed season is part of the government’s effort to allow the recovery of fish population from overexploitation. Further affecting fisheries performance is the degraded fishery resources. To avert this, fishery management has shifted to protection and conservation through an ecosystems approach to fisheries management.
Livestock and poultry buffered the sluggish growth of crops and fisheries. The minimal effect of adverse weather coupled with favorable market conditions translated into the achievement of the PDP GVA targets in 2013 and even exceeding those of 2015.
Forestry sub-sector growth significantly declined. Forestry GVA dipped from 36.7 percent in 2013 to 4.9 percent in 2014 and further slipped to -26.7 percent in 2015. This is attributed to the issuance of Executive Order No. 23, s. 2011, which declared a moratorium on the cutting and harvesting of timber in natural and residual forests. However, EO 23, s. 2011 should be seen as an investment in ensuring the protection of forests and in preserving the various ecological services they provide to the people.
Despite the seemingly greater attention afforded to the agriculture sector in the past years, sustaining growth has continued to be elusive. This is due to the continued failure to address the challenges that have lingered over time and weakness to overcome the emerging ones.
Limited diversification prevented AFF from harnessing the potentials of the growing local and international markets. Over the years, area harvested for crops in the country has been highly concentrated to three dominant crops: rice, corn, and coconut. In contrast, the combined area harvested for high-value crops with greater prospects for market expansion (e.g., banana, sugarcane, and rubber) is much smaller than the combined area harvested of the three dominant crops. This limited crop production diversification suggests a failure in taking advantage of the growing export market.
Long-standing challenges in AFF continue to hamper productivity.This includes limited access to credit and agricultural insurance, and poor provision by the government of productivity-enhancing support services, infrastructure and facilities:
- Limited access to credit and insurance. Insufficient working capital inhibits farmers and fisherfolk from using the appropriate type of inputs, farm equipment, and facilities that will expand production and spur entrepreneurial activities in the rural economy. In 2015, about 39 percent of small farmers and fisherfolk borrowers did not access formal creditdue to: (a) lack of technical capacity to develop viable project proposals; (b) lack of or poor credit track record; (c) lack of acceptable collateral; and (d) limited information about available loan products. On the supply side, banks have low compliance to the loan quotas
(15% agricultural, 10% agrarian) of the Agri-Agra Law or RA 10000. In 2015, agricultural loans comprised 14 percent and agrarian loans only represented 1.1 percent of the banks’ total loanable funds.
Climate and disaster-related risks also amplify the need to address design and implementation issues in the country’s agricultural insurance programs. An initial assessment of the agricultural insurance programs of the Philippine Crop Insurance Corporation (PCIC) recognized that the features of PCIC’s agricultural insurance products have been mainly intended to safeguard lenders from loan default. Notwithstanding, it is equally important to protect farmers and fisherfolk from production shocks brought about by calamities.Legal constraints that limit capitalization and human resources hinder PCIC’s capability to insure more farmers and fisherfolk.
- Low farm mechanization and inadequate postharvest facilities. Despite the displacement of labor with greater mechanization, farm machinery and postharvest equipment and facilities are important to increase quantity and quality of produce, reduce losses, and lower labor costs.
Farm mechanization in the country improved considerably from 0.52 horsepower per hectare (hp/ha) in the 1990s to 1.23 hp/ha for all crops and 2.31 hp/ha for rice and corn in 2011.However, this improvement continues to lag behind the mechanization level in other Asian countries such as Japan, South Korea, Thailand, and People’s Republic of China; but somehow at par with Vietnam, Pakistan, and India.
Studies of the Philippine Center for Postharvest Development and Mechanization and the University of the Philippines Los Baños show that inadequate postharvest facilities result in relatively high losses, reaching up to 16.5 percent of production in rice, 7.8 percent in corn, 15.5 percent in banana, 30.4 percent in mango and 45.1 percent in onion. For the fisheries sector, post-harvest losses range from 20 to 40 percent of the total outputs based on the Bureau of Fisheries and Aquatic Resources data.
- Inadequate irrigation. As of 2015, only 1.7 million hectares or 57 percent of the 3.0 million hectare potential irrigable area has been irrigated. Irrigation development has been slow due to the long and tedious process of designing and constructing large-scale irrigation systems. On the other hand, the construction of small-scale irrigation systems has been limited and many of the existing irrigation systems need rehabilitation or restoration to improve their efficiency.
- Scant support for research and development (R&D). Despite the significance of R&D in developing technologies and identifying good farm and fishery management practices, the share of R&D programs remains low in the total budget of the Department of Agriculture (DA) and Department of Science and Technology-Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development. In 2015, the aggregate budget was at PHP3.8 billion or only 0.28 percent of the AFF GVA (in current prices), which is lower compared to the one percent level recommended for developing countries.The capacity for R&D is also adversely affected by the limited number of permanent positions for scientists and researchers in agriculture, thus leading to the contractualization of research jobs.
- Weak extension service.Weak extension service slows down the diffusion and adoption of farm practices and technologies that are applicable to a specific area and responsive to the needs of farmers and fisherfolk. Inefficiencies in the delivery of extension services can be attributed to inadequate operational funds and lack of human resources of local government units (LGUs). Almost half of the agricultural extension workers are also ageing, ranging from 43 to 64 years old, based on the survey conducted by the Agricultural Training Institute.
- The agrarian reform program has not been fully implemented.After decades of implementing the Comprehensive Agrarian Reform Program (CARP), land acquisition and distribution (LAD) remains incomplete. The slow pace of LAD has been due to: (a) landowner’s resistance, particularly in the compulsory acquisition of private agriculture lands; (b) tedious processes and delays; (c) variability in the LAD targets; and (d) pending harmonization of rules to conform to Supreme Court decisions regarding the acquisition of lands under Operation Land Transfer. Moreover, the subdivision of the collective Certificate of Land Ownership Award (CLOA) was hampered by problems in identifying agrarian reform beneficiaries (ARB) and locating the landholdings, procedural delays in updating the names listed in the collective CLOAs, and tedious validation process to determine whether collective CLOAs are within the alienable portion of the public domain.
Despite the enduring efforts to redistribute lands, there is insufficient data on the conditions of ARBs, and if lands remain in their hands. From the business standpoint, the unfinished land reform program has created uncertainties and discouraged investments in agricultural production and agribusiness.In addition, the limits imposed to ownership of agricultural land under CARP have been recognized to affect the land market.
- Ageing farmers and fisherfolk.The average age of farm operators of palay, corn, bangus and tilapia ranges from 48 to 55 years old.While the sector’s workforce gets older, the younger population finds more attractive employment opportunities outside the sector.
Limited connectivity between production areas and markets, and poor compliance with product standards resulted in low competitiveness of AFF products. An inefficient transport and logistics system makes AFF products less competitive in the market due to: (a) increase of travel time from the production area to markets; (b) reduction of quality during transport; and (c) increase of transport and handling costs. In 2015, only 6,549 kilometers of farm-to-market roads (FMR) were constructed out of the 13,999 km target of DA from 2011 to 2017. Meanwhile, owing to poor compliance with quality standards along the supply chain, the Philippines experienced agri-food rejections at the border of the importing countries (e.g., European Union, United States, Japan and Australia). This was due to the presence of mycotoxins, additives, bacteria and other contaminants; labelling; and adulteration of or missing documentary requirements.
Weak institutions also fail to stimulate sector growth. Overlapping functions across several government agencies led to the inefficient delivery of support services and hampered agrarian reform implementation. Without close coordination of efforts, limited public investments will not be strategically directed to areas with greater needs and potentials for development, thus resulting in duplication of activities. Premature and illegal conversion of prime agricultural lands, irrigated and irrigable lands also continue, despitesafeguards against land conversion (e.g., Agricultural and Fisheries Modernization Act, CARP, and Local Government Code). If existing laws are not strictly implemented, premature and illegal conversion may persist, and this will compromise food security and agrarian reform objectives.
Lifting of the quantitative restrictions (QR) on rice poses risks to AFF stakeholders who remain uncompetitive. The expiration of the QR on rice on June 30, 2017 will pose disadvantages to less competitive producers, particularly small farmers. However, it can help lower the price of rice, and this will benefit the general public including farmers who are net consumers of rice. The share of rice in the total food expenditure of the lowest quintile (poorest 20%) of Filipino households is quite substantial at 30.6 percent based on the 2012 Family Income and Expenditure Survey.
Growing population threatens existing agricultural land use.Growth in population will continue to pose pressure on the use of natural resources to respond to increases in the demand for AFF products. The increasing demand for housing, likewise, has already entailed huge conversion of existing agricultural lands to settlement lands. Competing use of these resources, land and water in particular, suggests the need to strike a balance in development objectives such as addressing housing needs, agro-industrialization and food security objectives, among others.
Compounding these issues is the sector’s vulnerability to climate and disaster risks.The impact of climate change and disasters has overturned gains in the sector to the detriment of small farmers and fisherfolk. From 2011 to 2015, production losses and damage to infrastructure amounted to PHP163.6 billion in agriculture based on the assessment of DA.
In the medium-term, AFF will seek to: (a) expand economic opportunities for those who are currently engaged in producing AFF products; and (b) increase access to economic opportunities for small farmers and fisherfolk who are typically subsistence producers and have limited market participation. These will be beneficial to existing producers and marginalized farmers and fisherfolk, including women, elderly and indigenous peoples.
Over the plan period, the main target is to substantially increase GVA in AFF from the baseline value of 0.1 percent to within 2.5 to 3.5 percent in 2017, and maintain that growth rate over the next five years. A reversal of the negative growth of the value of fisheries production and exports is likewise aimed for. Table 8.2presents the key indicators.
Table 8.2 Plan Targets toExpand Economic Opportunities in Agriculture, Fisheries, and Forestry, 2017-2022
END OF PLAN BASELINE
YEAR VALUE 2022
Sector Outcome A: Economic opportunities in AFF expanded
Growth of GVA in Agriculture, Forestry and Fisheries
Increased (year-on-year at constant 2000 prices, in 2015 0.1% 2.5%-3.5% percent)
Growth in Value of Production of Fisheries Increased (year-ona. Commercial
2015 year at constant 2
Growth in the Value of Agriculture and Fishery Exports Increased (year-on-year, FOB value, in percent)
Sector Outcome B: Access to economic opportunities by small farmers and fisherfolk increased
Growth in Labor Productivity of Farmers and
Fisherfolk Increased (year-on-year at constant 2000 2015 4.6% 5.0-6.0% prices, in percent)
Strategies to expand economic opportunities in AFF fall under Pagbabagoor reducing inequality. The goal is to improve productivity and increase access.
Figure 8.1 Strategic Framework toExpand Economic Opportunities in Agriculture, Fisheries, and Forestry, 2017-2022
To achieve the sector and subsector outcomes and the targets, the following strategies will be implemented:
Sector Outcome A: Economic opportunities in AFF expanded
To expand economic opportunities for existing AFF producers: (a) productivity must be improved sustainably; and (b) the number and capacity of AFF-based enterprises must increase. Productivity enhancements will be attained within the ecological limit by striking a balance between utilization and regeneration of land and water resources to ensure sustained benefits. New AFF-based enterprises will be developed, while existing ones will be encouraged to increase production and to go beyond producing merely raw materials through increased valueadding of products with higher market value. The resulting rise in potential incomes will attract more people, including the youth, to venture into the sector.
With the lifting of quantitative restrictions on rice, the government will pay close attention to rice farmers and help them be more competitive and provide them with more and diversified livelihood and income opportunities.
Subsector Outcome 1: AFF productivity within ecological limitimproved
Develop an integrated color-coded agricultural map to identify the comparative advantage of specific areas. It will contain updated sub-national information on soil characteristics, water availability, climatic types, topography, and socioeconomic conditions. The map will inform production decisions about suitable crops and agricultural activities. It will also guide the identification and prioritization of programs, projects, and activities in the sector.
Accelerate construction of disaster- and climate-resilient, small-scale irrigation systems and retrofit existing ones. Irrigation systems must be disaster- and climate-resilient and compliant with construction standards. Priority will be given to small and communal irrigation systems, especially water harvesting technologies. Large-scale irrigation systems will be constructed if deemed hydrologically appropriate (i.e., water source is available and stable) and economically feasible.
The construction of these irrigation systems will be accelerated in areas with high irrigation development potential such as Central Luzon, Cagayan Valley (Region 2), SOCCSKSARGEN, Autonomous Region in Muslim Mindanao (ARMM), and Bicol Region. Periodic rehabilitation of damaged systems and restoration of non-functional ones may involve retrofitting to ensure disaster and climate resiliency.
Effective and efficient water saving and management technologies will be promoted to cushion the impact of El Niño. Moreover, an integrated watershed management approach will be implemented to sustain soil productivity and water efficiency, particularly in the 143 critical watersheds in the country.
Facilitate the use of appropriate farm and fishery machinery and equipment. Funding will be provided for the full implementation of the Agricultural and Fisheries Mechanization Law or RA 10601 to encourage local manufacturing and assembly of machinery and equipment for production, post-harvest, and processing activities. Government will intensify information, education and communication (IEC) activities on available local machinery (e.g., tractors, tillers, and harvesters), equipment, (e.g., mechanical dryers, threshers, and milling equipment) and fishing technologies (e.g., fiberglass hull and small engines in fishing boats).
For rice production to become more competitive, especially when the quantitative restrictions on the commodity are lifted, the government will encourage the adoption of farm machinery and equipment to reduce production costs. This will be undertaken especially in selected provinces of the Ilocos Region (Region 1), Central Luzon, and MIMAROPA—regions whose yields are above the national average (4 metric tons/hectare) but have relatively higher production costs.
The displaced labor from the promotion of mechanization will be linked to commodity diversification, value-adding, and AFF entrepreneurial activities. Proper training and certification for machine operation will also be provided, especially to low-skilled farm laborers and fishery workers. Custom hiring (e.g., renting of machinery and servicing of farm implements) and machine pooling will be encouraged to promote efficiency and provide alternative livelihood.
Strengthen the AFF extension system. The existing extension system will be strengthened through the engagement of a pool of professional extension workers that will provide technical and business advisory services. This should shorten the lag from R&D to adoption. Priority extension activities will include encouraging farmers and fisherfolk to use: (a) certified seeds and quality planting materials, especially high-yielding and stress-tolerant varieties (e.g., drought and flood); (b) quality semen of animals and eggs for poultry; and (c) quality fish fry and fingerlings. The government will recognize and advocate for the adoption of good practices (e.g., integrated pest management, integrated nutrient management, and sustainable fishing practices), and food safety and product standards (e.g., good agricultural practices, good aquaculture practices, good handling practices, code of practices for fresh fruits and vegetables, food hygiene practices, and packaging and transport practices). In addition, the government will continue to promote climate change adaptation measures, organic agriculture, urban agriculture, and halal food production. Timely and site-specific weather and climate advisories will be provided. Advanced information and communication technology (ICT) will be utilized to reach and serve a greater number of stakeholders.
The DA will continue to guide and coordinate extension units, and will also strengthen their links to R&D institutions and think tanks. The coordination and complementation between DA and LGUs will be strengthened for a more efficient delivery of extension services and feedback on farm-related problems. State universities and colleges (SUCs) will also be tapped to hasten the diffusion of good farm and fishery practices, indigenous and local knowledge, and appropriate technologies. To complement these, market-driven extension models such as nucleus estate model and multi-stakeholder partnerships led by the private sector will be supported.
Pursue an ecosystems approach to fisheries management. The government will undertake the following:
- conduct regular nationwide fish stock inventory and assessment
- implement appropriate fisheries management strategies such as scaling up of the Community-Based Coastal Resources Management, territorial use rights in fisheries, and closed season for selected species in some fishing areas
- strengthen measures against illegal, unreported and unregulated fishing
- regulate fishery structures such as fish pens and cages in inland bodies of water;
- implement boat, vessel and gear registration and licensing, and monitoring of compliance with catch documentation requirements among municipal and commercial fishing boats
- conduct aggressive information, education, and communication activities to increase awareness and appreciation of resource conservation measures, and to intensify compliance with fishery laws.
Subsector Outcome 2: AFF-based enterprises increased
Diversify into commodities with high value-adding and market potential. Commodities that can be developed based on vulnerability, suitability, and value-chain analyses of DA include mango for Ilocos, coffee for the Cordillera Administrative Region (CAR), dairy cattle for CALABARZON, calamansi for MIMAROPA, abaca for the Bicol Region and Eastern Visayas, rubber for the Zamboanga Peninsula, banana for Northern Mindanao, and cacao for the Davao Region. The adoption of integrated farming systems such as intercropping, livestock-crops, crops-livestock-fish, and agro-forestry will be promoted to maximize the use of land. The integrated color-coded agricultural map can be utilized for this purpose.
Expand AFF-based enterprises through new and innovative production and marketing schemes. New forms of linkages such as contract farming and corporate farming that will connect AFF enterprises to markets and other upstream services will be established. The government will lead in market facilitation through the conduct of domestic and international trade fairs and market-matching activities. It will also intensify enterprise-based capacity building and business advisory services for farmers and fisherfolk organizations, including ARB organizations. The capacity building and advisory will help the organizations manage profitable AFF-enterprises and effectively participate in the development of vibrant rural communities.
Strengthen community-based enterprises in upland areas. The government will continue to implement and monitor programs and projects that foster community-based enterprises in upland areas. At the same time, efforts will be undertaken to address issues of accessibility and connectivity, as well as vulnerability to climate and disaster risks.
Sector Outcome B: Access to economic opportunities by small farmers and fisherfolk increased
To increase the access of small farmers and fisherfolk to economic opportunities, the government will facilitate their access to value-chains, technology, and financing. At the same time, it will ensure that their rights and welfare are defended and asserted.
Subsector Outcome 1: Access to value-chains increased
Physically link production areas to markets through road and rail-based transport, interisland water transport and logistics system.FMRs, bridges, tramlines, and railways will be constructed to connect small farmers and fisherfolk to the agricultural value chain. Inter-island water transport (e.g., roll on-roll off nautical highway) and port facilities such as fish ports, will be improved to foster greater inter-regional trade of agriculture and fishery produce. Climate and disaster risks will also be taken into account in the design of transport networks. See Chapter 19.
Organize small farmers and fisherfolk into formal groupsand farms into clusters to create economies of scale. Social preparation such as organization building and management will be conducted among smallholder farmers and fisherfolk who are not yet organized into associations and cooperatives. Efforts to integrate them into larger agribusiness enterprises and institutional buyers will also be pursued.
Provide capacity building for small farmers and fisherfolk on value-adding activities.Professional agricultural extension workers will be tapped to provide trainings to small farmers and fisherfolk in the farmer field schools and demonstration farms that will be established. The trainings will include processing, packaging, marketing, and compliance with product standards and certification.
Provide non-farm livelihood options to seasonal farm and fishery workers whose incomes are irregular and who are vulnerable to shocks. The government will continue to implement community-based employment programs as alternative income sources during the off-season. Seasonal workers will also be trained on off-farm and non-farm activities to enable them to take advantage of alternative employment opportunities, including their involvement in the development of agri-tourism.
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Subsector Outcome 2: Access to innovative financing increased
Increase the number of small farmers and fisherfolk that are provided with agricultural insurance. This will be done by improving the awareness and appreciation of small farmers and fisherfolk of risk insurance. Innovative agricultural insurance schemes such as weather index-based and area-based yield index insurance will be promoted.
Provide small farmers and fisherfolk easy access to affordable formal credit. The government will develop and implement innovative loan products with responsive credit delivery mechanisms, and it will provide adequate information and assistance to borrowers on the available loans. It will also assess the credit demand of the agriculture sector. The Agri-Agra Law will be revisited to identify factors that limit its effectiveness and determine appropriate measures. The coverage of the Agricultural Guarantee Fund Pool Program will be expanded to include long-gestating crops.
Subsector Outcome 3: Access to technology increased
Raise investments in R&D for production and post-harvest technologies.This aims to reduce losses, maintain quality and food safety, and increase the value of agricultural and fishery commodities (e.g., ice-making and storage technologies). Investments will be increased to cover the direct cost of R&D, build a critical mass of human resources, and improve infrastructure in support of the Harmonized National R&D Agenda for Agriculture, Aquatic and Natural Resources 2017-2022. This agenda espouses the use of advanced and emerging technologies such as biotechnology, genomics, bioinformatics, nanotechnology, and ICT as tools to find science and technology solutions to AFF problems and to develop new products with significant impact to the sector. See Chapter 14.
The following will continue to be priorities for the sector: (a) development of climate and disaster-responsive technologies and innovations; (b) development of fishery culture system for species with high market potential; and (c) improvement of fishery culture for traditional species.
Enhance capacity of small farmers and fisherfolk to adopt better and new technologies.This entails information dissemination and capacity building on the use of certified seeds as well as post-harvest, processing and packaging technologies.
Subsector Outcome 4: Access of small farmers and fisherfolk to land and water resources increased and protected
Ensure and protect the land tenure security of ARBsby completing the LAD and immediately install ARBs in awarded lands upon the issuance of emancipation patent or CLOAs. An inventory of lands and profiling of ARBs will be conducted to ensure an updated status of land distribution in the country and guide the delivery of support services in agrarian reform communities and clusters.
Fast track the resolution of agrarian-related casesinvolving large numbers of affected farmers. Timely and free legal assistance will be provided to ARBs, including counselling and representation in judicial and quasi-judicial bodies.
Revisit Section 20 of the Local Government Code (RA 7160), which authorizes LGUs to reclassify agricultural lands for other uses.This law does not include any provision for sanctions or penalties to LGUs that reclassify agricultural lands more than the allowable limit (i.e., 15% for highly urbanized cities, 10% for component cities, and 5% for 4th-6th class municipalities). Hence, it is critical that LGUs provide baseline information about the LGU’s land types, and this information will be the basis for implanting land classification.
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Complete the delineation of municipal waters. Local ordinances must be issued to effect this. The Fisheries Code provision on fisherfolk settlement must also be implemented. Under the code, certain areas of the public domain, specifically near fishing grounds, will be reserved for the settlements of municipal fisherfolk.
Complement strategic efforts with environmental and governance strategies. To strengthen the efficiency and effectiveness of the strategies, the government will: (a) expand the existing human resource base by increasing scholarship opportunities in AFF-related courses (see also Chapter 10); (b)continue to pursue the national convergence initiative using the ridge-to-reef approach; (c) strengthen resilience to climate and disaster risks; (d) regularly update the Registry System for Basic Sectors in Agriculture and Fisheries Registration, especially the information used in targeting for credit and agricultural insurance; (e) conduct a comprehensive market scoping to analyze competition issues in priority sectors, which may include land market (see also Chapter 16); (f) ensure the meaningful participation of all stakeholders (i.e., through organized groups) in planning, monitoring and implementation; (g) strengthen coordination and convergence of the efforts of national government agencies, LGUs, civil society organizations, and SUCs on AFF concerns and cross-cutting issues such as food security and nutrition; and (h) intensify public-private partnership especially in rural infrastructure and logistics facilities to support value-chain development.
To strengthen the effectiveness of identified strategies, legislative action is needed in the following.
Table 8.3 Legislative Agenda toExpand Economic Opportunities in Agriculture, Fisheries, and Forestry, 2017-2022
LEGISLATIVE AGENDA RATIONALE
Sector Outcome A: Economic opportunities in AFF expanded
Subsector Outcome: AFF productivity improved within ecological limit
Abolish the irrigation service fees for small farmers Waive the irrigation service fees to small farmers as many of them cannot afford to pay the fee imposed by the National Irrigation Administration on its national irrigation system. A minimal fee may be imposed on pump-driven irrigation systems as they have higher operating expenses. Wholesale condonation of past-due irrigation service fees of farmers and corporations with large landholdings
(e.g., those owning 5 ha) may have to be restructured under mutually agreed terms and conditions so as not to additionally burden them, but at the same time be fair to those who regularly paid the required fees.
Comprehensive Forestry Law, and Delineation of the Specific Forest Limits
See Chapter 20
Sector Outcome B: Access to economic opportunities by small farmers and fisherfolk increased
Subsector Outcome: Access to innovative financing Increased
Amend the Revised Charter of the PCIC Act of 1995 or RA 8175 as well as other relevant laws
Reorganize the Philippine Crop Insurance
Corporation (PCIC) and increase its authorized PHP2 billion capital stock to cater more effectively to the demands of small farmers and fisherfolk.
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Amend or repeal Presidential Decree No. 4 of 1972 as well as other relevant laws
Decouple the regulatory and proprietary function of the National Food Authority (NFA). The NFA will continue to exist but its role will focus on rice buffer stocking for food security
Replace quantitative restrictions on rice with tariffs. The tariff proceeds from rice imports will be ploughed back to the rice sector.
Amend the Agricultural Tariffication Act of 1996 or RA 8178
Provide guidelines for the utilization of the Coco Levy Fund.
Consolidate all assets and benefits emanating from the coconut levy. Create a Coconut Farmers and Industry Trust Fund to exclusively benefit coconut farmers and farm workers.
Pass the National Land Use Act (NALUA)
Protect prime agricultural lands, thereby ensuring the viability and sustainability of on-farm employment and overall rural development. The definition of prime agricultural lands in the NALUA should represent a socially-acceptable minimum agricultural land requirement that will maintain a certain level of agricultural industry in a given economic or spatial context at a given point in time.
See Chapter 20.
Land Administration Reform Act
See Chapter 20
Genuine and Comprehensive Agrarian Reform Program.
Distribute for free or without amortization agricultural lands to landless farmers and agricultural workers. Its coverage will include: all public and private agricultural lands exceeding five hectares; lands that have been declared and/or reserved for non-agricultural uses but remain unutilized and undeveloped; and lands that have been reclassified or converted for commercial, industrial or residential uses but have remained undeveloped and used for agricultural purposes.
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Expanding Economic Opportunities in Industry and
Services through Trabaho at Negosyo
Expanding economic opportunities in industry and services (I&S) is critical to laying down the foundation for inclusive growth, high-trust society, and a globally competitive and resilient knowledge economy. Accordingly, increased access to economic opportunities for micro, small, and medium enterprises (MSMEs), cooperatives, and overseas Filipinos (OFs) is also crucial if more business activities are to be created to reduce inequality and poverty. This also takes into consideration factors related to the current and potential comparative advantage, environmental protection and biodiversity conservation, low carbon growth, disaster and climate resilient industries, and gender equality.
Assessment and Challenges
Remaining issues on logistics bottlenecks, mining, and natural disasters may inhibit the growth of domestic production and trade. Climate-resilient and reliable infrastructure, such as roads, bridges, railways, airports, seaports, stable power supply, and internet connectivity, continue to be inadequate. Mining activities are still concentrated in low-value adding activities. Economic activity and investments remain concentrated in the National Capital Region (NCR) and adjacent regions and has led to unequal development across regions. CALABARZON (Region 4A) had the highest share in total industry output, accounting for 32 percent from 2013 to 2015. The NCR registered the biggest share in total services output at 52 percent for the same period. The Autonomous Region in Muslim Mindanao (ARMM) had the smallest share in both sectors at 4 percent and 0.1 percent, respectively.
Restrictive economic provisions of the Constitution, as well as pertinent laws, rules, and regulations limit foreign participation in certain sectors. Restrictions on foreign participation limit competition, investments, and trade in the country. Despite significant increases over the last six years, a comparison of net foreign direct investments (FDI) vis-à-vis selected ASEAN countries would show that, except for Thailand (USD4.8 billion), net FDI inflows to the country (USD5.7 billion) were lower compared with Singapore (USD65.3 billion), Indonesia (USD18.7 billion), and Malaysia (USD9.8 billion) in 2015.
The cost of doing business remains high and reforms are yet to be fully implemented. Many of these involve cumbersome regulatory or licensing requirements and procedures. Business registration and licensing in some municipalities still need to be streamlined. Requirements for permits of national and local governments (e.g. numerous signatures needed to put up a power generation company), among others, need to be drastically cut (see also Chapter 5).The Philippines jumped 41 places to 103rd out of 189 countries from 144th out of 183 countries in 2010 in the Doing Business Report 2015-2016 of the World Bank–
International Finance Corporation.The country’s ranking in dealing with construction permits improved to 99 from 124. However, the country’s ranking dropped in other indicators such as starting a business, trading across borders, and enforcing contracts.
Improving the competitiveness of the sectors to reduce vulnerability to uncertainties in the global market also continues to be a challenge.The slowdown in the global economy, including the Philippines’ top trading partners Japan, European Union, United States (US), and China, may affect the performance of industry and services including trade. Exports are concentrated in few products and markets. Domestic firms are lagging behind in terms of technology and innovation processes (see also Chapter 14).The opportunity for establishing domestic economic zones is currently underutilized. Such zones are important in integrating existing economic and freeport zone activities within the domestic economy. Most firms remain vulnerable to natural hazards and are unable to proactively manage the adverse effects.
Many consumers, especially in rural areas, still lack awareness of their rights to safety, information, and prices.In 2015, 23 percent of consumers surveyed said that they were unaware of these rights.
The mismatch between the technical and practical skills of the labor force and the human capital needs of the sectors remains. Thiscontributes to the slow absorption of available labor, and the out-migration of young technically-skilled and educated Filipinos. Industry accounted for 16.3 percent of total employment from 2013 to 2016, with manufacturing absorbing an average of 8 percent of its total. On the other hand, services accounted for 54.5 percent of total employment from 2013 to 2016. Wholesale and retail trade, specifically repair of motor vehicles, accounted for 19 percent of the total.
Statistics on I&S, including those for MSMEs, are inadequate. These are needed to track the performance of the sectors, and the information is to be used as basis for strategic planning.
Political and security issues remain important considerations for investors. Investments in public and private construction in the next six years are likely to boost the growth of industry and services. With the government increasing expenditure on public infrastructure to at least 5
percent of GDP annually, demand for construction-related manufactures such as basic metals, fabricated metal products, and transport equipment, among others, is expected to grow. Manufacturing resurgence is also seen to drive industry growth in the medium term.
Investments in public infrastructure attract investments in private construction such as housing projects. The logistics subsector will benefit in the form of increased demand for transport and other related services, thus reducing time and cost of moving or transporting goods and labor. Improved connectivity is also expected to facilitate movement of products and people, including tourists, within the country.
The growing global interest in Asia provides an opportunity to attract investors to locate in the country. Increased investments will expand production and trade, not only for export but also for the growing domestic market. The country’s strong macroeconomic fundamentals, growing middle income class, political stability, and rising consumer and business confidence make it an attractive investment destination. Worldwide tourist arrivals have also been increasing continuously. Among ASEAN members states, however, the Philippines trails behind Malaysia, Thailand, Singapore, Indonesia, and Vietnam in attracting tourists.
Reducing inequality in economic opportunities will require strategies that will expand these opportunities for in industry and services, and increase the access particularly of MSMEs, cooperatives, and OFs.
The creation of globally-competitive I&S will be pursued by integrating these sectors to strengthen forward and backward linkages toward more efficient supply and value chains.
Developing globally competitive and innovative I&S products where the country’s comparative advantage lies would depend heavily not only on the availability of raw materials, labor, and technology but also on the presence of adequate soft and hard infrastructure.
The following table presents the medium-term targets for industry and services (I&S). Gross value-added (GVA) in services and industry (particularly manufacturing) will be improved. Employment generation in these sectors will be increased. The targets correspond to the subsector outcomes outlined below.
Table 9.1 Plan Targets to Expand Economic Opportunities in I&S, 2017 – 2022
END OF PLAN
Sector Outcome A: “Trabaho”: Economic opportunities in I&S expanded
GVA in the industry sector improved (%)
GVA in the services sector improved (%)
Manufacturing GVA as a proportion of GDP increased (%)
to be determined
Employment generated from the industry increased annually (in thousands)
Employment generated from the services sector increased annually (in thousands)
Manufacturing employment as a proportion of total employment (%)
Subsector Outcome 1: Local and foreign investments incre
Total approved investments increased
(in million pesos)**
to be determined
Net foreign direct investment (in million dollars)*
2016 US$ 6,217.04
ompetitiveness, innovativeness, and resilience increased
to be determined
Subsector Outcome 2: C
Philippine overall ranking in the WB-IFC
INDICATOR BASELINE END OF PLAN YEAR VALUE TARGETS
Doing Business Report improved
Subsector Outcome 3: Market access improved (refer to External Trade section of Chapter 15 –Sound Macroeconomic Policy)
Subsector Outcome: Consumer access to safe and quality goods and services ensured
Level of consumer to be
awareness increased determined
Sector Outcome B: “Negosyo”: Access to economic opportunities in I&S for MSMEs, cooperatives, and
Proportion of small-scale industries (enterprises) in total industry value added increased
to be determined
Subsector Outcome 1: A
ccess to production networks improved
Number of MSMEs
participating in global value chains increased
to be determined
Subsector Outcome 2: A
ccess to finance improved
Proportion of small-scale industries (enterprises) with a loan or line of credit increased
to be to be
to be determined
Subsector Outcome 3: Pr
oductivity, efficiency, and resilience improved
Number of barangay micro business enterprises registered
to be determined
| || || || || |
**Baseline data is as of Q1 2016 *Baseline data is from Q1-Q3 of 2016
As part of reducing inequality, the PDP 2017-2022 aims to expand economic opportunities in the industry and services sectors. It also seeks to increase the access of MSMEs, cooperatives, and overseas Filipinos to economic opportunities in industry and services. Through trabaho at negosyo, entrepreneurs will be encouraged to hire and pay for labor, thus contributing to employment generationand enabling enterprises to move the scale and gain efficiency.
Figure 9.1 Strategic Framework to Expand Economic Opportunities in I&S, 2017 – 2022
To achieve sector and subsector outcomes as well as targets, the following strategies will be implemented:
Sector Outcome A: “Trabaho”: Economic opportunities in I&S expanded
Subsector Outcome 1: Local and foreign direct investments increased
Strengthen value and supply chain linkages
- Implement the comprehensive national industrial strategy aimed at upgrading industry, particularly manufacturing, agriculture, and services, while strengthening their linkages to domestic and global value chains. This will develop globally-competitive industries and services with strong forward and backward linkages, especially for MSMEs in regional and global production networks and global value chains.
- Adopt a holistic market-driven perspectivein promoting and developing a high value and more profitable agribusiness sector. Farming technologies and techniques, supply chains, infrastructure, and a reliable property rights regime will be important in modernizing agricultural practices to improve productivity in agriculture (see also Chapter 8).
- Improve backbone services, such as financial, telecommunications, distribution, transport, and logistics services to facilitate the movement of people, goods, services, knowledge, and ideas as well as link firms, especially MSMEs, to domestic and global markets. Investments in infrastructure and logistics will also boost competitiveness, improve connectivity, and reduce costs.
- Enhance business servicessuch as legal and accounting, research and development, and packaging to support manufacturing; and strengthen other sectors such as agriculture, fisheries, and other services.
- Implement the new medium-term National Tourism Development Plan which is anchored on improving competitiveness, enhancing development, and pursuing sustainable and inclusive growth, and convergence.
Remove restrictions, provide incentives, and promote job-creating investments
- Amend restrictive economic provisions in the Constitution; repeal or amend as appropriate relevant laws, rules, and regulations that impose restrictions on foreign participation in certain economic activities; and enhance the competitiveness of the industry and services sector by ensuring that regulations promote fair competition (see also Chapter 16).
- Modernize the incentive system to remove nationality and export biases and make it more relevant to investors and more competitive with other ASEAN member states. With this, incentives will be simple, targeted, performance-based, and time-bound.
- Implement aggressive investment promotion programsto attract more FDIs, especially those that can bring in new technologies and competition, particularly in key public utilities.
- Address cross-cutting issuesthat impede the country’s competitiveness such as high power cost (see also Chapter 19).
- Support the development of the services subsectors outside value and supply chainssuch as social services.
Accelerate the implementation of infrastructure programs and projects
Ramp up spending on infrastructure to at least 5 percent of annual GDPto improve the country’s economic and social environment. Aside from physical infrastructure, the development of the information and communications technology (ICT) sector is essential to strengthen the value chain linkages in I&S (see also Chapter 19).
Subsector Outcome 2: Competitiveness, innovativeness, and resilience of industries and services increased
Develop high-value added, competitive, and sustainable sectors
- Improve the competitiveness of I&Sto transform the economy and achieve broad-based growth. This entails, among others, ensuring openness of services markets; promoting good regulatory practices and sound competition policy framework and institutions; fostering dynamic, competitive, and effective ICT policies; and improving people-to-people, physical, and institutional connectivity.
- Adopt a cluster-based industrial approachto promote inter-firm cooperation and agglomeration and build a strong and competitive regional economy (see Table 9.2).
Table 9.2 Priority Sectors by Region
coffee, cacao, processed fruits, processed meat, tourism
processed fruits, processed meat, coffee, furniture, cacao, agribusiness
bamboo, furniture, aerospace, processed meat, shipbuilding, aerospace
auto, electronics, petrochemical, Information Technology and Business Process Management (IT-BPM), chemicals, aerospace
seaweed, cacao, rubber, coco coir, tourism
metal casting, coco coir, health care, agribusiness
processed meat, processed shrimp, tourism
seaweed/carrageenan, dried mangoes, furniture, IT-BPM, shipbuilding, tourism
processed meat, copper, processed marine, processed fruits, natural health products, agribusiness
rubber, cacao, processed fruits (mango), coconut, agribusiness
rubber, bamboo, cacao, coco coir, coffee, agribusiness, tourism
processed meat, seaweed/carrageenan, cacao, agribusiness, tourism
rubber, palm oil, processed fish/aquamarine, tourism, agribusiness
processed marine, palm oil, rubber, agribusiness
coffee, processed vegetables, aerospace, electronics, tourism
coffee, rubber, cacao, palm oil, agribusiness
- Provide incentives for green manufacturingto encourage companies to shift to energy efficient technologies.
- Fully implement the Green Jobs Actto promote green growth, blue economy (see also Chapter 8),and innovation, among others.
- Focus attention on boosting services exportsby moving up the global value chain of the ITBPM industry and increasing the country’s market share in international tourism, including health and education services; promoting creative industries that cover both tangible products and intangible services; and developing the potential of the Philippines in digital trade and e-commerce. To support these priorities, services-related statistics will be developed to support plan implementation and monitoring.
- Implement structural reforms to create more open, well-functioning, transparent, and competitive markets. These include creating a competent national body for multimodal transport; formulating and implementing a national broadband plan (see also Chapter 19); institutionalizing a Quality Regulatory Management System(see also Chapter 16); and removing unnecessary regulatory burden through Project Repeal (see also Chapter 5).
- Simplify the rules and regulations on business registration and licensing, entry and exit, paying taxes, and access to finance to encourage the rapid growth of businesses of all sizes and the movement of small firms to the formal sector. Harmonizing and streamlining procedures among national government agencies and local government units will minimize, if not eliminate, redundancies and overlaps. Full implementation of the Philippine Business Registry and the Business Permit Licensing System will also facilitate start-ups and help reduce transaction costs.
Improve the business climate
Improve access to technology and innovation
- Establish the National Quality Infrastructureto harmonize the country’s strategies on metrology, standards, and accreditation, where accreditation includes certification, inspection, and testing.
- Establish an Inclusive Innovation Centerto support the development of the country’s innovation system and facilitate inter-firm and academe-industry collaboration in hightechnology activities (see also Chapter 14).
- Encourage innovation and adoption of new technologiesto spur the development of new services (see also Chapter 14).
Enhance labor capacities
- Invest in human capital developmentbased on the transformation of jobs, facilities, processes, and future skills needs (see also Chapter 11).
- Strengthen industry-academe linkagesto help meet labor market needs and reduce future jobs-skills mismatches. This will also increase opportunities for lifelong learning (see also Chapter 11).
Subsector Outcome 3: Market access improved (see Chapter 15)
Subsector Outcome: Consumer access to safe and quality goods and services ensured
Heighten consumer vigilance on product safety, value for money and access to quality goods and services. Quality consciousness among consumers will be promoted while enforcing strict compliance with technical regulations by manufacturers/suppliers. Awareness on consumer rights will be increased through intensified advocacy and education campaigns, particularly in the secondary and tertiary schools. Campaigns on value for money, safety, and quality of goods and services will maximize the use of multimedia.
Build stronger linkages and partnerships with private sectors and professional associations to strengthen consumer redress mechanisms.Redress mechanisms for speedy resolution of consumer complaints will be made available through partnership with professional associations while advocacies for consumer concerns are channeled through reputable consumer organizations in all provinces.
Harmonize domestic and international policy framework on consumer protection. Consumer protection policies will be modernized and aligned with international policies to become adaptable to changes brought about by globalization and technological advancement.
Promote consumer protection. Standards and regulations will be enforced to protect and empower consumers against unfair trade practices. Policies against fraudulent business schemes will be strengthened, and enforcement activities intensified.
Sector Outcome B: “Negosyo”: Access to economic opportunities in I&S for MSMEs, cooperatives, and OFs increased
Subsector Outcome 1: Access to production networks improved
This entails supporting the linkage between MSMEs and large corporations to facilitate increased participation of the former in global value chains; developing more inclusive business models and social enterprises; and establishing feasible domestic economic zones for MSMEs in accordance with relevant laws.
Subsector Outcome 2: Access to finance improved
Increase access to finance. Loan processes for MSMEs, cooperatives, and OFs need to be streamlined and simplified.A more comprehensive credit information system needs to be established to help cooperatives and financial institutions better assess credit risk and make more informed lending decisions.
A policy for alternative collaterals for borrowers also needs to be developed. Appropriate financial products, services, and support programs for MSMEs (especially start-ups and those operating in the countryside) and cooperatives need further development.
Enhance financial literacy. Financial literacy trainings for MSMEs, cooperatives, and OFs and their families to help them understand and access financial products will likewise be provided. (see also Chapter 15)
Assess MSME-related laws. Assess the implementation of, and compliance with, the Microfinance NGOs Act and Credit Surety Fund Cooperative Act, and determine if and where remedial legislation is needed.
Subsector Outcome: Productivity, efficiency, and resilience enhanced
Increase access to technology.Expand the Small Enterprise Technology Upgrading Program and Shared Service Facilities to areas where the poor reside. The upgrade of existing testing, calibration, and quality assurance services will broaden the access of MSMEs to innovative, appropriate, and cost-effective technologies.
Implement MSME development plan and assess MSME-related laws. Implement the MSME Development Plan particularly the productivity and efficiency portfolio, taking into account the 2017-2022 Livelihood Agenda, which aims to foster the convergence of different livelihood and entrepreneurship programs of government agencies.
The government also needs to assess the implementation of, and compliance with, MSME laws (i.e., Go Negosyo Act, Magna Carta for MSMEs, and the Barangay Micro Business Enterprises Act) and determine if and where remedial legislation is needed.
Encourage entrepreneurship.Households receiving OF remittances need to be encouraged to put these to more productive use and invest cash transfers from abroad in business activities in the country. A broader base for MSME development will thus be created.
To strengthen the effectiveness of the strategies, legislative action is needed on the following:
Table 9.3 Legislative Agenda to Expand Economic Opportunities in I&S, 2017-2022
LEGISLATIVE AGENDA RATIONALE
Sector Outcome A: “Trabaho”: Economic opportunities in I&S expanded
Subsector Outcome: Local and foreign investments increased
Amend certain economic provisions of the Constitution
Relax restrictive foreign ownership provisions of the Constitution to attract more FDI
Pass the Ease of Doing Business Act
Enhance market competition through improving ease of doing business. This legislation will sustain the intention of Project Repeal to review existing policies, statutes, and regulations, and eventually repeal unnecessary issuances.
Amend the Public Service Act
Define “public utility”.
Align guidelines for foreign investments with the Foreign Investment Act and lower capital requirements for foreign enterprises and harmonize with those observed in Asian countries.
Create a level playing field for foreign firms when bidding in government procurement.
Amend the Retail Trade Liberalization Act
Repeal or amend the Flag Law (Commonwealth Act 138)
Adopt an open access policy
Adopt and enforce open access in various segments of the telecommunications market (e.g., backhaul and backbone facilities) on a non-discriminatory basis and publish prices in order to introduce effective competition in the broadband or telecom market.
Subsector Outcome: Competitiveness, innovativeness, and resilience increased
Set up a National Quality Infrastructure system
Integrate and coordinate standardization, metrology, testing analysis, quality management, certification, and accreditation.
Subsector Outcome: Consumer access to safe and quality goods and services ensured
Amend the Consumer Act Increase protection of consumers and harmonize existing law with current and future technological advancements.
Sector Outcome B: “Negosyo”: Access to economic opportunities in I&S for MSMEs, cooperatives, and
Subsector Outcome: Access to production networks improved
Institutionalize the industry cluster approach
Pursue local economic development through inter-local cooperation among LGUs and strengthen people participation in community development.
Inclusive Business Bill
Develop a national strategy for the promotion of inclusive businesses to be implemented by the Inclusive Business Center. This also provides policies for accreditation, support, and incentives.
Social Enterprise Bill
Provide a framework for the planning and implementation of a National Poverty Reduction Through Social Entrepreneurship Program. This also promotes social enterprises as a tool in the government’s poverty reduction program.
P h i l i p p i n e D e v e l o p m e n t P l a n2 0 1 7 - 2 0 2 2| 9 -
Accelerating Human Capital Development
Equalizing opportunities for human development is an important part of the Philippine Development Plan (PDP). Under the pillar Pagbabago,the PDP recognizes human development not just as a means to an end (i.e., human capital as a factor of production) but also an end in itself. Thus, in the next six years, individuals and people groups will have more options to develop their full potential. Better human development outcomes will be attained by reducing inequalities in the Filipinos’ ability to stay healthy, be well-nourished, and continue learning throughout their lives. Inclusive strategies and other interventions will be directed at ensuring that all Filipinos, especially the poor and underserved, will have long, healthy, and productive lives; lifelong learning opportunities; and improved income-earning ability. This is consistent with the Filipino people’s aspirations, as articulated in AmBisyon Natin 2040.
Assessment and Challenges
In the past several years the government has made large investments in health and education to address backlogs accumulated over decades while also trying to meet increasing demand brought about by population growth. This proved to be a great challenge for the government; thus, the outcomes of such investment in terms of genuine human development have been uneven at best.
Nutrition and Health
Improvements in nutrition and health (Table 10.1)were supported by the increase in health insurance coverage for indigents beginning 2013 as government increased budget support to the National Health Insurance Program (NHIP). In addition, service delivery and coverage were enhanced by legislation, particularly those that expanded health insurance to automatically cover senior citizens and indigents, enhanced immunization of infants and children, and provided a clear policy on reproductive health care.
Access to quality health services has improved but there are still gaps that need to be addressed.Access to quality health services improved with the increased coverage of the NHIP and the construction and upgrade of health facilities. The coverage rate significantly increased from 2012 to 2015 as more of the poor were enrolled and availed of medical services. Benefit packages were also continuously increased and enhanced to reduce out-of-pocket medical expenses. See Chapter 11.
In addition, 7,713 health facilities1 were constructed and upgraded from 2010 to 2016, half of which are barangay health stations providing primary health care closer to people within the community. More health facilities would have been upgraded had there been no delays in project implementation.2The number of public health professionals deployed increased from
14,332 Barangay Health Stations (BHS), 2,626 Rural Health Units (RHUs), 685 LGU Hospitals, and 70 DOH hospitals. 2Disagreement on the design of buildings, multiple construction assignments of some contractors, poor coordination, and maintenance of services during construction (Picazo, Pantig, and dela Cruz 2015)
439 in 2010 to 23,836 in 2016. Majority of these are nurses deployed in under- and unserved communities. However, there are still geographically-isolated and disadvantaged areas (GIDAs) with inadequate number of health workers. Additional financial sources are required to: (a) provide the sufficient number of Human Resources for Health (HRH) and retain them in service; and (b) adequately respond to community needs.
Children and their families have been poorly nourished. More families had difficulty improving their nutrition status. The prevalence of underweight children under five and the proportionof households with per capita intake below 100 percent of dietary energy requirement worsened from 2008 to 2015, missing the plan target for 2015. These burdened the efforts to address the prevalence of stunting (33% in 2015) and wasting (7.1% in 2015), which remained high in all regions of the country. This poor performance is partly attributed to the weak multi-sectoral and multilevel approach to address malnutrition.
Infant and under-five health outcomes improved but safe childbirth remains a concern.While infant and under-five mortality decreased from 2011 to 2015, maternal mortality remains high. This means that pregnant women continue to experience the “three delays”in maternal health care. For example, even as improved maternal health service delivery resulted in increased proportion of births attended by a health professional and births delivered in a health facility for the period 2011to 2015, the end-of-plan targets were not achieved.
Progress in family planning initiatives was reversed.The contraceptive prevalence rate (all methods) in the country improved in 2011-2013 but progress was reversed in 2015. Use of modern methods remained low at 35.7 percent in 2015. The low contraceptive use was partly due to the weak family planning service delivery network and the lack of a nationally-led advocacy campaign. Poor access, especially among the youth, has led to an increase in the incidence of teenage pregnancies.Implementation of the Responsible Parenthood and Reproductive Health (RPRH) Law remains a challenge because of the temporary restraining order (TRO) on contraceptive products and supplies. Such TRO threatens the full implementation of the RPRH law in addressing unmet needs for family planning services. This will adversely affect efforts to reduce maternal mortality and rising teenage pregnancy in the country, thereby making it more difficult to significantly reduce poverty during the current administration.
Progress in combating communicable diseases has been uneven. The 2015 targets for malaria mortality and tuberculosis detection rates were met. While malaria morbidity rate significantly declined from 2011 to 2014, it increased again in 2015. The increase in malaria morbidity and mortality was concentrated in endemic areas (e.g., Palawan) and among indigenous peoples and mobile populations.
There has been a substantial increase in newly-diagnosed HIV cases.Prevalence of HIV remains below one percent of the total population but there has been a steady increase in the number of newly-diagnosed HIV cases since 2010. The number of new cases detected per day rose from 4 in 2010 to 26 in 2016.5Majority of these new cases can be found among 15-34 year olds and in highly-urbanized areas. Regions with the highest number of cases are the National Capital Region (NCR), CALABARZON, and Central Visayas. At present, HIV cases are concentrated in the following most-at-risk populations (MARPs): (a) males who have sex with males (MSMs); (b) people who inject drugs (PWIDs); and (c) female sex workers (FSWs). It should be noted, though, that the increased reported cases may be due to better surveillance and testing methods.
Target on access to safe water was met but access to sanitary toilet facilities was missed. The target for access to safe water had already been exceeded in 2015, and the target for families with access to sanitary toilet facilities was almost met in the same period. However, there were still 1.2 million households with no access to safe water and 1.8 million households with no access to sanitary toilet facilities.
Table 10.1. Health Indicators in the Results Matrix of the Updated Philippine Development Plan and Selected Health Millennium Development Goals (MDGs) Indicators
PDP Health Indicators
National Health Insurance Program (NHIP) coverage rate increased (%)e
Prevalence of underweight children under five decreased
Proportion of households with per capita intake below 100% of dietary energy requirement decreased (%)b
Infant mortality rate per 1,000 live births decreaseda
Under-five mortality rate per 1,000 live births decreaseda
Maternal mortality ratio per
100,000 live births decreaseda
Proportion of births attended by health professional increased
Proportion of births delivered in facility increased (%)a
Contraceptive prevalence rate (all methods) increased (%)a
Malaria mortality rate per
100,000 population decreased c
Malaria morbidity rate per 100,000 decreased c
Tuberculosis case detection rate (all forms) increased (%)c
HIV prevalence decreased (% of population)c
Proportion of population with access to safe water increased
(families in %) d
Proportion of population with access to sanitary toilet increased (families in %)d
Sources: a2011: Family Health Survey, Philippine Statistical Authority; 2013: National Demographic and Health
Survey. Philippine Statistical Authority
b National Nutrition Survey, Department of Science and Technology-Food and Nutrition Research Institute cProgram data, Department of Health dAnnual Poverty Indicator Survey, Philippine Statistical Authority ePhilippine Health Insurance Corporation
*Note that these values are from the 2015 National Nutrition Survey MDG rider questions and have not been published as official by PSA and DOH.
Health care for people with special needs has been inadequate.There is a need to address the healthcare requirements of certain groups with special needs such as indigenous peoples, persons with disabilities (PWDs), and those in GIDA and disaster-prone areas. For example, health outcomes in ARMMlagged behind most regions. Also, indigenous peoples have poor health outcomes because traditional knowledge and culture may not have been considered in the implementation of national health programs. Older persons, on the other hand, require specialized geriatric services, while PWDs need access to affordable rehabilitation and therapy services.
“Triple burden of disease” is a public health concern.Morbidity caused by infectious diseases, mortality by non-communicable diseases (NCDs), and emerging incidence of injuries, mental health, and alcohol and drug abuse threaten the country with the triple burden of disease. Since mortality from NCDs is increasing, the public needs to be aware of risk factors such as smoking, excessive alcohol consumption, poor diet, and lack of physical activity. Addressing nutrition in uterois also important as it affects health outcomes later in life. For example, growth retardation of the fetus is associated with higher rates of NCDs in adulthood.
Emergency situations disrupt the implementation of routine and normal programs. Floods, earthquakes, and pandemics spread diseases and cause malnutrition. The ensuing disruptions in providing safe water, sanitation, and health care services can reverse the gains in health outcomes and create new threats. See Chapter 12.
Financing for nutrition and health services by local government units (LGUs) is inadequate.LGU spending on health is around 7 percent of total government health expenditure from 2013 to 2014.There are also variations in nutrition and health budget allocation among LGUs, from 9 to 14 percent of total budget in 20149. The allocation depends largely on the priority of the local chief executives. This inadequate financing results in inequalities in nutrition and health service delivery, and consequently, affect the nutrition and health status of the population.
Data gaps constrain decision-making for nutrition and health.There is a need to resolve quality issues on coverage, timeliness, reliability, consistency, and coherence of administrative and survey data. Lack of quality data can hamper proper decision-making, thus affecting the implementation of health interventions.
Basic, Higher, and Technical Education
Key reforms in education increased access and improved the quality of basic education, improved the competencies of the workforce, and produced high-quality graduates. Data from the Human Development Report 2015 showed that mean years of schooling slightly improved from 8.2 in 2010 to 8.9 in 2014. However, more work needs to be done to attain missed education targets.
Enrolment rates increased but targets were missed. An institutionalized kindergarten pushed enrolment to as high as 79 percent, which could have been higher if not for a change in age requirement. At the elementary level, most recent data showed that net enrolment rate (NER) reached 91 percent in school year (SY) 2015-2016. Annual data for NER may not be compared because of recent improvements in tracking learners through the use of the Learner Information System (LIS). NER at the secondary level increased from 64.70 percent in 2010 to 68.15 percent in 2015. Enrolment in the first year of Senior High School (SHS)in 2016 was higher than anticipated. The support extended to learners played an important role in this outcome, with 715,337 Grade 11 learners availing of the voucher program.
Raising the quality of education remained a challenge. Elementary and secondary achievement rates stayed low, and this is indicative of the low quality of education. Contributing to this was a lack of teacher competencies,high student-teacher ratios, absence of basic educational facilities, and the quality of classrooms.
Efficiency improved at the elementary level, with mixed results at the secondary level. Completion rates (CompR) and cohort survival rates (CSR) at the elementary level improved. At the secondary level, while CSR increased during the same period, CompR decreased significantly in SY 2015-2016. The decline in CompR may be due to students’ lack of personal interest, need to look for work, and insufficient family income.12 Moreover, among the out-ofschool children and youth 6 to 24 years old, marriage was the most common reason for not attending school.
Drop-out rates decreased from 6.29 percent in SY 2010-2011 to 2.70 percent in SY 2015-2016 at the elementary level and from 7.79 percent to 6.65 percent at the secondary level. Comparison between sexes, however, showed that more boys were unable to finish school than girls. Drop-out rates for males was at 0.65 percent and 3.32 percent in the elementary and secondary levels, respectively, compared with girls at 0.36 percent and 1.64 percent.
Table 10.2. Basic Education Indicators in the Results Matrix of the Updated Philippine Development Plan 2011-2016
BASELINE ANNUAL PDP TARGETS
YEAR VALUE 2014 2015 2016
Net enrolment rate increased (in %)
2010 57.2 89.7 100.0 100.0
2010 95.9 97.0 98.0 99.0
2010 64.7 68.0 70.0 71.0
Adjusted net enrolment rate increased (in %)
98.5 99.0 99.0
92.5 95.0 97.0
Completion rate increased (in %)
72.1 78.0 81.0
75.1 76.0 78.0
BASELINE ANNUAL PDP TARGETS
VALUE 2014 2015
Cohort survival rate increased (in %)
74.2 79.0 81.0
79.4 81.0 83.0
Achievement rate increased (in %)
68.2 73.0 75.0
47.9 57.0 62.0
| || || || || || || || |
Sources: EMIS, DepEd
Quality early childhood care and development (ECCD) programs are seen to better prepare young children for formal education. The number of three- to four-year-old children in LGUmanaged child development centers (CDCs) increased as more CDCs were established.However, this constitutes only 41 percent of the total 4.3 million 3-4 year old children in 2013.
Disparities within the sector and among regions persist. Enrolment data on special education (SpEd) for SY 2015-2016 showed that there were only 2,571 publicly-funded SpEd teachers, 37 pure SpEd centers, and 278 regular schools with a SpEd centers catering to about 150,000 students with special needs in public schools.
The Alternative Learning System (ALS) was able to serve 1,020,049 or 23 percent of the total out-of-school youth aged 16 to 26 years. As of 2012, there were only around 9,000 learning facilitators involved in implementing ALS.
Despite the increased number of teachers with the creation of 169,511 teaching positions from 2010 to 2015, the average teacher-student ratio at the elementary level remained higher than the national average (1:33 in SY 2015-2016) in some regions such as ARMM (1:41), CALABARZON (1:37), Davao Region (1:36), and NCR (1:36). Likewise, for SY 2014-2015, student-classroom ratio was higher than the national average of 1:34 at elementary and 1:48 at secondary level in CALABARZON (1:41 and 1:52), Bicol Region (1:35 and 1:41), Davao Region (1:41 and 1:46), ARMM (1:49 and 1:55), and NCR (1:70 and 1:60).
Regional data showed that ARMM continued to lag in all performance indicators. Based on the results of the baseline study on learning outcomes, the current level of teacher proficiency in ARMM may explain the low performance of students.
The mixed performance in basic education points to the need to focus on sectors that are left behind, to improve quality, and to address disparities across regions. This will entail: (a) strengthening capacity building among basic education teachers and other educational agents (including school administrators and non-teaching personnel); (b) ensuring that curriculum is responsive and relevant (gender-responsive, culture-sensitive) to the needs of the community and will be able to develop 21st century skills; (c) improving school facilities and providing additional classrooms and teachers for new school entrants due to natural population increase and migration; and (d) prioritizing the provision of quality learning resources such as textbooks, libraries, tools and equipment, and ICT-assisted learning.
Higher and Technical Education
The overall performance of Technical-Vocational Education and Training (TVET) is laudable, but inclusive access, desirability, and quality remain a challenge.TVET enrolment and number of graduates surpassed the end-of-plan targets with modest improvements from 2011 to 2015. Subsequently, the number of skilled workers who underwent competency assessment improved from 835,000 in 2011 to 1.4 million in 2015. Certification rate also increased by 6.9 percentage points during the same period. This means about 9 out of 10 workers assessed had been certified.
Majority of the graduates in 2012 are in the young age groups of 15-24 (61%) and 25-34 (23%) years old. By income class, the bigger shares of enrolment remain in the middle socioeconomic classes. The sex distribution in TVET graduates in 2012 is about even, with males at 50.6 percent and females at 49.4 percent. Misconceptions about TVET could explain the lack of inclusive access, as college education is a more attractive option to enhance employability and increase capacity. The need to upgrade quality as evidenced by the lack of qualified trainers and equipment and the non-responsiveness of curriculum to industry needs may also explain the limited access of vulnerable groups to quality technical education. There is also a need to increase the capacity of the Technical Education and Skills Development Authority (TESDA) and its accredited training institutions to respond to the needs of persons with disabilities and to offer higher-level qualifications such as National Certificate (NC) III and IV.
The higher education system is beset by stubborn issues which, in light of 21st century challenges, require urgent, tactical, and transformative solutions. The number of graduates of higher education (1,775,659 in 2014) has exceeded expectations, and this may be partly due to the increase in the beneficiaries of higher education scholarships and financial assistance programs of the Commission on Higher Education (CHED). Nonetheless, the quality of Philippine higher education graduates remains an issue. While the numberof higher education institutions (HEIs) in the Philippines is ten times more than its neighboring countries,’the Philippines’ lackluster performance in producing innovators (ranked 74 out of 128 in the 2016
Global Innovation Index), researchers (81 researchers per million population versus 205 in Indonesia and 115 in Vietnam), and knowledge producers (28 out of 777 journals or 3.6 percent are listed under Thomson Reuters, Scopus, or both) indicates the level of quality that seems to have accompanied expanded access to higher education. Indeed, the country has lagged behind many of its ASEAN neighbors in producing the knowledge builders, researchers, innovators, job creators, solutions seekers, and solutions providers needed to effectively function in a knowledge economy.
Exacerbating the question of quality is the lack of faculty with advanced degrees in higher education. Quality is further compromised by the low number of HEIs with accredited programs and the low national passing percentage in licensure examinations. The poor quality of graduate programs and inadequate attention to research and technological innovations have reinforced a deficient science and innovation culture and lack of interest among young Filipinos to pursue scientific, engineering, and technical studies.
Adding to the challenge of providing quality higher education is the mismatch between higher education and industry requirements. These may be attributed to: (a) underdeveloped 21st century competencies among graduates; (b) adherence to a teacher-centered and input-based education paradigm; and (c) the uncritical application of the evolving quality standards of universities (e.g., publications in peer-reviewed journals) to Philippine HEIs regardless of mission, thus resulting in watered-down standards for universities and inefficiencies in other types of HEIs (e.g., allocation of funds for token research centers instead of laboratories). Organizational issues within the bureaucracy and questionable practices also need to be addressed. Lastly, HEIs need to be responsive to international challenges and developments in higher education, as they can affect the country’s regional and global competitiveness.
Table 10.3 Higher and Technical Education Indicators in the Results Matrix of the Updated Philippine Development Plan 2011-2016
ANNUAL PDP TARGETS
2015 2016 2014 2015
Certification rate in
TVET increased (in %)
87 87.5 91.3 91.1
TVET graduates increased
1,610,510 1,771,560 1,785,679 2,129,758
Higher education graduates increased
584,474 601,505 632,076 692,602
Proportion of HEI faculty with MA increased (in %)
60 65 40.81 40.34
Proportion of HEI faculty with PhD increased (in %)
25 30 12.54
HEIs with accredited programs increased (in
25 26 25.38 26.63
National passing percentage (across disciplines) in licensure exams increased (in %)
50.94 52.53 61.45 58.59
The passage of laws, such as the K to 12 and the Green Jobs Act, and commitment to international frameworks, require the allocation of resources for emerging needs.The full implementation of K to 12 may see a surge in HEI faculty displacementand a decline in HEI enrolment in the short-term. The passage of the Green Jobs Act in 2016 also marks the need to prepare the faculty, facilities, and curriculum for the knowledge and skills requirement of a green economy. The commitment to internationalizing higher education entails re-examining current quality assurance systems and student transfer policies to ensure that programs are at par with international standards. Lastly, the approval of the ASEAN Qualifications Reference Framework (AQRF), which will ease learner mobility within the ASEAN region, requires updating of course programs and addressing issues related to the Mutual Recognition Agreements (MRAs), such as the alignment of domestic regulations with specific MRAs, lack of budgetary support, and inadequate collaboration between the public and private sectors.
The higher pace and improved quality of economic growth have created more and better employment in the last six years, leading to significant decline in unemployment rate and improved quality of the employment generated. Unemployment rate reached its lowest in the past decade in 2016. At the same time, quality of employment improved in the past six years, as majority of workers found remunerative work and fulltime employment, thus increasing the overall mean hours of work.
Despite these achievements, significant employment challenges remain. The country needs to address underemployment, youth unemployment, low labor market participation of women, and inadequate jobs leading to out-migration. There is also a need to increase investments in priority sectors to ensure that the labor market can accommodate future entrants.
PDP 2011-2016 unemployment targets were achieved, but the underemployment targets were not. The country has consistently exceeded the PDP 2011-2016 Midterm Update targets for unemployment in the past three years. However, a more serious concern than unemployment is underemployment, as the country has lagged behind in attaining its underemployment targets, except in 2014. The high underemployment rate of the country can be attributed to a considerable segment of laborers and unskilled workers, which makes up one-third of total employment. Moreover, incomes of the employed remain inadequate to lift themselves and their families out of poverty. This encourages workers to seek additional hours of work.
Underemployment problem is significant in all regions and prevalent in the agriculture sector.In most regions, underemployment rates are higher than unemployment rates, and is most prevalent in the agriculture sector. This is partly due to seasonality of work (for one-fifth of agricultural workers), part-time work engagement (two-thirds do not work full time), and the low productivity and low wages in agriculture.
Youth unemployment is important but the youth who are neither studying nor employed are a more critical focus for intervention.Unemployment rate among the 15-24 year olds is more than twice the overall unemployment rate and triple the unemployment rate among the 25-54 year olds. Looking deeper, as of April-October 2016, the share of youth who are neither in education nor in employment in the total young working population reached 22.1 percent, implying that around 4.4 million young Filipinos are underutilized with skills not being enhanced either by education, training, or employment. Additionally, school-to-work transition for many young Filipinos is associated with change, waiting, and uncertainty. It takes a high school-leaver four years and a college graduate two years to find a permanent wage job.
Labor force participation of women barely improved throughout the years. Labor force participation of women has improved only slightly over the past 25 years, from about 47 percent in the early 1990s to around 50 percent in more recent years. Beginning 2012, however, it has stagnated at around 50 percent.
Limited employment opportunities force Filipinos to migrate by necessity and not by choice. Many overseas Filipinos (OFs) have been pushed to take on low-skilled jobs abroad. In 2015, 37.8 percent were employed as household workers. Despite the resilience of these lowskilled jobs and being a steady source of employment for many Filipinos, OFs employed in these kinds of jobs remain vulnerable to abuse and exploitation. Regional integration initiatives such as the ASEAN Economic Community and the government’s efforts to strengthen ties with other countries such as China and Russia could present opportunities to diversify the destination of OFs.
Labor productivity in the industry and services sectors improved but remained below targets. Labor productivity of the sectors grew by 2.4 percent in 2014 and by 3.6 percent in 2015.These are below the plan targets of 3.9 to 4.7 percent and 4.1 to 5.0 percent, respectively. Over the past six years, labor productivity growth of both sectors was generally slow, with services rising faster than industry. The positive but weak growth in the service sector could be due to the labor shift from agriculture to services, which is observed in the recent period. The transition of workers to the services sector, where self-employment is common and wages are more flexible, resulted to more employment in the low-skill, low-wage category.
The lack of the needed skills (technical and soft), work experience, as well as lack of technological progress and innovation contributed to both sectors’ low labor productivity.
Domestic and global developments, such as the K to 12 program and the ASEAN integration, require strengthening the academe-industry linkage to prepare Filipinos for the changing world of work. Though the latest enrolment data underscore the strong preference for the academic track, SHS graduates in the labor market may be absorbed over the long-term. The industry needs to recognize the qualifications of these graduates to ease their transition to work.
The diverse and dynamic working environments that come with further economic integration require 21stcentury skills among graduates. Over the medium to long term, these skills will enable the country’s youth to make informed career decisions and develop life skills necessary to succeed in a competitive workplace.
The Philippine Development Plan 2017-2022 aims to reduce inequalities in human development outcomes. In particular, it aims to improve nutrition and health for all, ensure lifelong learning opportunities for all, and increase the income-earning ability of Filipinos.
The following tables show the indicators and corresponding targets for improving human development outcomes.
Table 10.4 Plan Targets to Improve Nutrition and Health (Core Indicators21)
END OF PLAN TARGET
Life expectancy at birth
Total Fertility Rate
Maternal mortality ratio per 100,000 live births
Neonatal mortality rate per 1,000 live births
Infant mortality rate per 1,000 live births
Under-5 mortality rate per 1,000 live births
Premature mortality attributed to cardiovascular disease, cancer, diabetes, and chronic respiratory diseases23
Proportion of households with per capita intake below 100% dietary energy requirement
Prevalence of stunting among children under 5 (%)
Tuberculosis incidence per 100,000 population
Malaria prevalence per 100,000 population
Number of new HIV infections (newly diagnosed cases/year)
Modern Contraceptive Prevalence Rate (%)
21Complete list of indicators is found in the accompanying Results Matrix document.
22 WHO, UNICEF, UNFPA, World Bank Group, and the United Nations Population Division Estimate
23 Baseline and targets will be identified in the accompanying Results Matrix
Table 10.5 Plan Targets to Ensure Lifelong Learning Opportunities for All (Core Indicators)
END OF PLAN TARGET
Mean Years of Schooling
Functional Literacy Rate*
Net Enrolment Rate
Junior High School
Junior High School
Proportion of students performing at moving towards mastery, closely approximating mastery and mastered increased
Junior High School
Proportion of students at low mastery reduced from 14% to 10%
Junior High School
Percentage of students awarded scholarships, grants, and other financial assistance (%)
Percentage of tertiary graduates in science, engineering, manufacturing and construction
Percentage of ETEEAP graduates
Increased government expenditure for higher education research, development, and innovation
0.17% of GDP
0.5% of GDP
Increased number of patents, licenses, and royalties issued to HEIs
Increased number of researchers and scientists
Number of curricula and programs developed / revised based on multi-disciplinal platforms that foster 21st century competencies
Increased number of HEIs engaged in local and global partnerships and collaborations
Increased number of graduate education graduates (MA/PhD) engaged in original research of creative work
Increased number of innovation hubs established within HEIs
Certification rate of TVET graduatesa
Table 10.6 Plan Target to Increase Income Earning Ability (Core Indicators)
END OF PLAN TARGET
Decreased percentage of adult NEET
not available, for
Decreased percentage of youth NEETa* (%)
Decreased duration of school-to-workbtransition of college graduate
2 years (2008 ADB
Decreased duration of school-to-workbtransition of high school graduate
4 years (2008 ADB
Decreased percentage of discouraged workers (%)
Increased number of HE graduates engaged in job collaboration
Percentage of female with advanced degrees employed (%)
Increased labor force participation rate of women (%)
Labor productivity in industry sector increased (%)
Labor productivity in service sector increased (%)
Percentage of unemployed covered by unemployment insurance
Not available, for development
aBaseline and target are only for not in education and employment (NEE). The indicator for NEET is to be developed in the Labor Force Survey. b Work is defined as permanent wage job. cBird, K. 2012. Are Filipino Youth off to a Good Start? Youth Labor Market Experience in the Philippines. Manila:
Note: (*) are indicators based on the SDGs
To improve nutrition and health for all, the PDP seeks to guarantee care at all life stages, ensure access to functional service delivery network, and sustain financing for health. To ensure lifelong learning opportunities, the PDP seeks to achieve quality, accessible, relevant, and liberating basic education for all; and improve the quality of higher and technical education and research for equity and global competitiveness. Moreover, to increase the income-earning ability of Filipinos, the Plan seeks to improve employability and productivity and enhance labor mobility and income security.
Figure 10.1 Strategic Framework for Accelerating Human Capital Development
To achieve the targets, the following strategies will be pursued:
Sector Outcome A: Nutrition and health for all improved
Nutrition and health for all will be improved as the government (a) guarantees services that provide care at all life stages; (b) ensures the accessibility of these services in functional service delivery networks; and (c) sustainably finances these services through universal health insurance. These will be supported through increased investments in the sector, which are expected to redound to higher life expectancy of Filipinos.
Subsector Outcome 1: Care at all life stages guaranteed
Provide quality nutrition and health care interventions at all life stages. Better nutrition and health outcomes are expected by providing care and services to the well and the sick at all life stages, from infancy to old age. Specifically, during pregnancy, attention will be on pre-natal care and safe delivery. For newborns and infants, essential intra-partumnewborn care, exclusive breastfeeding, complementary feeding, food and micronutrient supplementation, and immunization will be given for thefirst 1,000 days of life. All other services from adolescence to adulthood will be provided, including sexual and reproductive health (SRH), adolescent health, and health services for older persons to improve their quality of life.
Accelerating the full implementation of the RPRH Law will be pursued to ensure universal access to quality SRH services. This is to enable the exercise of reproductive rights, including determining the desired family size. Key strategies will focus on eliminating unmet need for family planning methods and reducing the incidence of teenage pregnancy through collaborative interventions. See Chapter 13.
There will be focus on specific communicable diseases (HIV/AIDS, tuberculosis, and malaria) and on the elimination of diseases such as dengue, leptospirosis, Ebola and Zika. Noncommunicable diseases such as cancer, diabetes, and heart disease will be addressed along with their risk factors. Injuries, substance abuse, and mental illness will be addressed through interventions, such as advocacy to prevent injuries, treatment and rehabilitation of drug dependents, and psycho-social interventions. Attention will also be given to pandemics and travel medicine as well as the health consequences of climate change and disasters. Addressing malnutrition in all its forms will likewise be given importance, particularly in strengthening the school health and nutrition program.
Improve health-seeking behavior and target the most vulnerable.The population’s healthseeking behavior will be improved. Health promotion for all interventions will be pursued to increase awareness of health entitlements, thus resulting in wider participation of people. To ensure equity in access, vulnerable populations, the poor, PWDs, indigenous peoples, and older persons will be prioritized in the provision of services. Specific and targeted interventions will also be provided, such as annual health visits for the vulnerable populations.
Subsector Outcome 2: Access through functional service delivery networks ensured
Ensure functional and efficient networks of health care providers.Service delivery networks (SDNs) will be expanded and strengthened to allow more people to reach health facilities and avail of needed services such as nutrition, reproductive health, drug abuse management and rehabilitation, and services related to health emergency response. The SDNs will facilitate access to all levels of care, specifically, gatekeeping and continuum of patient-friendly services from primary care level up to the specialty centers. These services will be client-centered, gender responsive, culturally sensitive, and compliant with clinical standards. The SDNs will be responsive and resilient in times of emergencies and disasters. Private provider participation will be harnessed and coordinated when planning SDNs, implementing interventions, and securing supply-side investments. Delivery of services will also be made more accessible with the use of information and communications technology. In addition, a redress mechanism will be set up to improve the responsiveness of the system.
Upgrade and equip health facilities and improve human resources for health (HRH). Additional resources will be provided for health facility enhancement, HRH improvement (quality, quantity, and distribution), and health supplies (vaccines, family planning commodities, and medicines). Hospitals will be equipped with multi-specialty training capabilities and reference laboratories. Health facilities with maternity and newborn services will be upgraded to fully promote and support rooming-in, breastfeeding, and other motherbaby friendly practices.
The health profession will be more responsive to local and global needs and will focus on primary and preventive health care. Availability of HRH in unserved and underserved areas, including GIDAs, will be ensured. HRH compensation package will be reviewed so that those serving in ARMM, IP areas, and GIDAs will have the highest pay. Pre- and in-service trainings will be strengthened toward client responsiveness by integrating gender and culture perspectives. Incentives will also be given to health workers, including Barangay Nutrition Scholars (BNS) and Barangay Population Volunteers to ensure the continuous service delivery and advocacy for nutrition and RH. Scholarships will continue to be provided to those who will enter the health profession.
Subsector Outcome 3: Health financing sustained
Expand health insurance coverage and improve benefit packages.The NHIP will continue to provide financial risk protection to ensure that every Filipino will be a PhilHealth member. New benefits packages will be developed and existing ones may be expanded to lower the members’ out-of-pocket costs. See Chapter 11.
The following activities will be undertaken to support the attainment of the subsector outcomes:
Invest in eHealth and data collection mechanisms for decision making to address data gaps.Timeliness, quality, and disaggregation of data will be improved and the monitoring and evaluation systems will be strengthened for better decision making. Administrative data collection systems, such as local civil registration and vital statistics, will be strengthened to complement national surveys. Collection and reporting in provinces, cities, and municipalities will be intensified to ensure the responsiveness of interventions and improve accountability. Information systems will be streamlined. The use of electronic medical records (clinical and administrative) in all health facilities will become a requirement for licensing and contracting of health facilities and drug outlets. A performance monitoring unit will be established to track the progress of reforms and medical audits, and to oversee third-party monitoring. Health research will also be pursued, particularly in the areas of technology development, financing, service delivery, and socioeconomic and environmental concerns.
Elicit multisector, multi-stakeholder support for nutrition and health.The government will ensure that other social determinants of nutrition and health will be addressed through the adoption of a “Nutrition and Health in All Policies” agenda. The LGUs’ role in nutrition and health services delivery, such as advancing local health policies, providing family planning services and commodities, and reducing disaster risks will also be supported. Development partners will be tapped, if necessary, to provide official development assistance (ODA) aligned with the nutrition and health agenda. Possible areas of assistance include service delivery in nutrition, reproductive health, and drug management and rehabilitation. Civil society organizations (CSOs), including volunteers, will be mobilized to participate in budget development, service delivery, and monitoring and evaluation through their involvement in local development councils and other special bodies.
Sector Outcome B: Lifelong learning opportunities for all ensured
Lifelong learning will be pursued to attain both personal and national goals. Filipinos will be equipped with 21st century skills to engage in meaningful and rewarding careers in today’s changing world of work. Lifelong learning will also contribute to the development and growth of agriculture, industry, and services in the country. To yield greater equity in human development outcomes, education will be made accessible to vulnerable groups and those not reached by formal education.
Subsector Outcome 1: Quality, accessible, relevant and liberating basic education for all achieved
Strengthen programs for early childhood care and development (ECCD) in order to adequately prepare for basic education.The first eight years of a child’s life is critical to the development of the child’s physical, cognitive, emotional, and social well-being; thus, quality early childhood programs will be made available to families. This entails strengthening the capacities of child development service providers, implementing a developmentallyappropriate curriculum, and building a competent workforce. To ensure that child development centers are following standards and providing appropriate services, the following need to be approved and implemented: (a) the revised accreditation processes and tools for CDCs; and (b) the early childhood developmental delays and disability detection, intervention, and referral system. Coordination among agencies is needed to ensure that ECCD-related services and initiatives are harmonized.
Pursue the full implementation of K to 12.The sub-strategies to ensure the success of K to 12 are: (a) timely delivery of adequate education inputs such as school infrastructure, quality learning materials including assistive devices, and ICT equipment; (b) hiring and professional development of teachers; c) effective and transparent monitoring and evaluation system; d) public financial management reforms to ensure availability and timely delivery of infrastructure and learning resources for formal and non-formal education; and e) a financial management information system to track the status of budget releases and facilitate timely interventions when problems arise.
Strengthen inclusion programs.Improving the mechanisms for mapping, profiling, and tracking of learners and school-aged children will ensure that learners with special needs, indigenous peoples, and out-of-school children and youth are provided with the appropriate educational interventions. Intensifying and expanding the ALS will enable those not reached by the formal system to complete basic education or acquire lifelong learning. Education inputs should also focus on areas with poor education performance – targeting the needs of hard-toreach and vulnerable learners (such as street children, indigenous peoples, PWDs, children-inconflict with the law [CICL], and children in conflict areas).
Develop and improve interventions to keep children in school.Providing school-based interventions such as feeding programs, counseling programs, remedial classes, and conducive learning environments can help keep children in school to complete basic education.
Continue curricular reforms.Making the curriculum more gender-responsive and relevant by contextualizing and localizing lessons can help improve achievement rates. The science and technology curriculum will be enhanced to foster innovation and creative imagination. Emphasis will be given to culture and the arts, drug abuse prevention, reproductive health, gender, environment, disaster risk reduction and management, and climate change.
Enhance teacher competencies.Improvement in pre-service teacher education and relevant and regular in-service training on pedagogical approaches and subject matter are needed to improve student learning outcomes. This can be done through a responsive pre-service education curriculum, mentoring, school learning action cells, workshops, organized training, eLearning, and learning visits.
Subsector Outcome 2: Quality of higher and technical education and research for equity and global competitiveness improved
TVET for Equity
Enhance community-based training for special groups.Community-based training will be promoted by identifying and supplying the specific skills requirements of different barangays. It will be area-specific, resource-based, flexible, holistic, and product and serviceoriented. It will use the community-driven approach to training delivery, and continuous consultations and collaboration at the grassroots levels with other government agencies. Attention will be given to informal workers, indigenous peoples, farmers, fisherfolk, drug dependents, rebel returnees, women victims of abuse and human trafficking, returning and repatriated OFs, and PWDs so that they can become active participants in the development process.
Provide access to quality and relevant TVET opportunities.Scholarships and linkages with government tech-voc schools and state universities and colleges offering TVET programs will be pursued and strengthened so that they can provide access to a greater number of trainees. Skills development will be done through community- or barangay-based, mobile, and online training. Supportive programs for drug dependents will be conducted. On-site assessment will be done to provide workers, particularly OFs, an opportunity to obtain an NC and improve employment options.
TVET for Global Competitiveness
Ensure globally-competitive TVET programs. To become globally competitive, TVET programs will be benchmarked with international standards, adapt recent technology and innovations, and respond to industry demands. This can be doneby: (a) scaling-up of technical education; (b) developing competency standards and training regulations; (c) capability building for centers of excellence; (d) international alignment of Philippine TVET qualifications; (e) strengthening the Philippine Qualifications Framework (PQF); (f) recognizing higher TVET qualifications; (g) expanding public-private partnership, and (h) strengthening stakeholder collaboration, including linkages with foreign skills training institutions.
Higher education as a force for social and cultural transformation
The role of higher education in spurring social change and cultural transformation is articulated in the mission, vision, and programs of many Philippine higher education institutions that instill the values of nationhood and responsible citizenship. These institutions also enjoin students and faculty to develop intellectual tools and practical skills for productive social service.
Expand access to higher education. Government will ensure the full implementation of the Unified Financial Assistance System for Tertiary Education (UniFAST) Act (RA 10687) and develop a policy to rationalize tuition and school fees. It will promote the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP), Ladderized Education Program (LEP), and Distance Education to provide working students and school leavers the opportunity to earn a degree. Higher education programs will be enhanced by emphasizing CHED Memorandum Order No. 20, s. 2013: General Education Curriculum: Holistic Understandings, Intellectual and Civic Competencies.
Integrate 21st century competencies. Government will steer higher education programs and curricula to produce graduates who can demonstrate 21stcentury competencies to lead, compete, and excel in the global knowledge economy.
Promote the creative arts. Courses and curricula for developing artistic and cultural workers will be developed and promoted to provide citizens with opportunities to be absorbed in culture industries (e.g. media, tourism, performing arts).
Higher education as accelerator of innovation and inclusive economic prosperity
Just as important is higher education’s mission in economic development, job generation, and wealth creation. In an era of remarkable speed and dynamism in the knowledge-driven global economy, Philippine higher education should be positioned as a major driver of economic competitiveness.
In support of these pursuits, government will advocate for purposive investments that: (a) steer career interest towards science, technology, engineering, agri-fisheries and mathematics, which are the building blocks of the knowledge economy; (b) foster a healthy and vibrant relationship with industry as well as small- and medium-scale businesses; (c) accelerate local and global inter-university research collaboration; (d) establish institutional scientific-technological niches and economic centers; and (e) create an innovation ecosystem.
Strengthen Quality Assurance Mechanism. Government will ensure the full implementation of the Outcomes and Typology-based Quality Assurance System. It will reform Philippine graduate education to serve as an advanced program of study that constitutes a level or stage of academic and scholarly work. The program will be characterized by academic and scholarly rigor; peer interaction and evaluation; and production of original research or creative work. Government will also implement the Philippine Qualifications Framework (PQF) and AQRF and harmonize key academic programs with international standards.
Improve research, innovation, and extension services. Government will build a robust national ecosystem for knowledge production and innovation, which is critical for the country’s engagement in the knowledge-based global economy. It will invest in: (a) improving the research capabilities of college and university faculty, research staff, and graduate students; (b) building the capital and institutional infrastructure needed for knowledge production and innovation; and (c) building up, retraining, and retaining a sustainable stream of new researchers. Similarly, government will promote structured partnerships between HEIs and stakeholders in the community, business, and industry. The intent is to integrate “formal” research and innovation efforts with “informal” grassroots knowledge and innovation. Policies and programs will be formulated for the normative and reasonable allocation of hours for teaching and research and for the operationalization of extension as part of applied research engagement.
Expand the collaboration between government, academe, and industry.Government will strengthen linkages with academe and industry in pursuit of leading-edge, commercial-ready innovations. It will devise performance measures, incentives, and rewards for universities to collaborate with industry partners and to allow industries to recommend innovations in academic programs, curriculum or delivery modalities. It will accelerate global inter-university research collaborations, and establish institutional scientific-technological niches and innovation and economic centers.
Promote excellence among HEIs.Performance metrics that will measure excellence, such as research grant revenues, patents, publications and citations, and graduate employment rate will be developed. The government will determine a realistic target of costing and producing quality PhDs per year in the next five to seven years, considering the target of 2,700 PhDs per year in the next ten years, and allocating the necessary funds to support graduate students. Diversity in faculty roster, particularly in engaging international talents will be increased. Appropriate budgetary provisions to optimize the delivery of quality instruction as well as the quality and quantity of research and innovations will be pursued.
The three education agencies will ensure greater collaboration among themselves and with other government agencies, LGUs, and NGOs, in pursuit of education goals. Among the areas of collaboration will be the full implementation of the PQF and mobilization of stakeholders for its further substantiation.
Sector Outcome C: Income-earning ability increased
This chapter focuses on labor supply strategies that aim to raise the quality of human resources through a holistic approach that considers all key stages of employment. In addition, strategies that enhance the functioning of the labor market are included. Together, these are expected to translate to the increased income-earning ability of Filipinos.
Subsector Outcome 1: Employability improved
Ensuring the employability of labor entrants is important. This will be accomplished through the following strategies:
Encourage skills development and retooling through continuing education and training.Workers may improve their employability through skills enhancement. Providing opportunities for skills development and re-tooling is critical in addressing the problem of the youth who are not in education, employment, and training (NEET). For prospective and current OFs, properly identifying demand and upgrading their skills to meet the demand, will help them be employed in more stable and higher-paying jobs. Improvement in access to advanced degrees and trainings on topics such as entrepreneurship and proficiency in different languages, including through distance or online learning, will be promoted. The PQF should not only ease schoolto-work transition but should also guide professionals, employees, and employers in skills upgrading and professional development.
Strengthen employment facilitation services.Assistance to workers entering the labor market, especially first-timers, will be strengthened. Career advocacy, coaching, and counseling will be enhanced, both for those seeking employment locally or overseas. Online services for OFs will also be included. In addition, regulations will be reviewed with the aim of facilitating the eventual reintegration of OFs in the domestic economy. Local government units (LGUs) need to be capacitated in responding to the challenges in their respective areas. In particular, public employment service offices (PESOs) need to prepare for the needs of senior high school graduates and persons with disabilities, and consider the opportunities beyond their localities.
A dynamic and competitive labor market requires high-quality and easily-accessible labor market information (LMI)for job search. A public system such as PhilJobNet--the government’s web-based LMI, job-search, matching and referral portal--plays a significant role in providing Filipinos with free access to labor market information. PhilJobNet will be enhanced to: (a) meet the LMI needs of vulnerable groups of workers; and (b) serve as the labor market information portal of the Philippine government, capable of housing the critical supply and demand database systems. To ensure the availability of labor requirements for the expected surge in demand from public works projects, the following must be accessible to communities: labor market information, skills registration, employment facilitation services, training and monitoring.
Strengthen and expand internship, apprenticeship and dual-training programs that facilitate school-to-work transition.Current programs of the government that can be strengthened are the: (a) Government Internship Program (GIP) for those who want to pursue public service; (b) JobStart Program to enhance the employability of “at-risk” youth; and (c) apprenticeship, learnership and dual-training programs. Employer or enterprise-led skills training will be explored. For the work placements of job seekers, particularly the long-term unemployed, the government will support skills training networks across a wide range of industries, sectors and geographical areas.
Implement programs that encourage women to participate in the labor market. Strategies to increase labor participation of women include: (a) fully implementing the RPRH Law; (b) improving access and affordability of child care services; (c) formulating policies that promote work-life balance; (d) providing re-training services for women returning to the workforce; (e) enhancing maternal and paternal benefits; and (f) improving access of women to entrepreneurial opportunities. See Chapter 13.
In addition, the data essential to understand the full range of work carried out by women, including unpaid domestic and care work, will also be developed.
Subsector Outcome 2: Productivity improved
Strengthen the implementation of the two-tiered wage system.The two-tiered wage system will be continuously implemented as an approach to minimum wage-setting and as a strategy to tighten the link between wage and productivity growth. Workers and enterprises will be encouraged and capacitated to formulate productivity-based incentive schemes. As mandatory minimum wages will continue to be set, enterprises will also be encouraged to adopt productivity-based pay schemes that will accelerate productivity growth and ensure commensurate growth in wages.
Ensure safety and health in the workplace.Sound, gender-responsive occupational safety and health (OSH) practices will be ensured through vigorous enforcement of existing regulations. Implementation of enhanced workplace emergency plans and disaster risk reduction programs will be encouraged.There is also a need to intensify workforce-focused OSH programs, such as information campaigns and industrial dialogues that will promote and cultivate a culture of OSH. Integration of OSH in the local health development plans as well as a comprehensive health and safety program for government workers will likewise be pursued. In terms of education, integration of OSH in the secondary and tertiary education curriculum will be advocated.
Nurture workplace harmony. Improvements in labor-management relations will be nurtured. Venues for social dialogue will be promoted by strengthening institutional mechanisms for social negotiations, including collective bargaining.
Subsector Outcome 3: Labor mobility and income security enhanced
Provide income support and emergency employment. Better social protection, particularly through income security, will be pursued through the introduction of an unemployment protection system, possibly in the form of unemployment insurance. At the same time, emergency employment programs such as the Community-based Employment Program (CBEP) will be enhanced to provide additional income opportunities to seasonal workers or long-term unemployed during lean or off-season periods.
Enhance the efficacy of the minimum wage policy.Existing wage gaps across industries or sectors, gender and geographic areas can be addressed through labor market policies and institutions that directly affect the distribution of wages, such as through minimum wages and collective bargaining. The implementation of the current minimum wage policy should be adjusted to enhance inclusivity. Efforts to simplify the process, reduce the number of minimum wage rates per region, limit potential exclusions and exemptions from coverage, and encourage parties to use productivity and performance as means to further increasing workers’ income will be pursued.
To complement and support the actions of the executive branch, the following legislations will be required:
Table 10.7 Legislative agenda
LEGISLATIVE AGENDA RATIONALE
Sector Outcome A: Nutrition and health for all improved
Subsector Outcome: Care at all life stages guaranteed
Increasing Taxes on SugarSweetened Beverages and Junk
Lower the consumption of sugar-sweetened beverages and junk food through higher taxes. It will be a cost-effective intervention to the increasing incidence of lifestyle-related non-communicable diseases (NCDs) by addressing risk factors.
Amendment to the Philippine HIV-AIDS Law
Strengthen the HIV Law to make it more responsive and relevant to the current epidemic. It will restructure the legal framework to harmonize evidence-informed strategies and approaches for the prevention, treatment, care, and support for HIV and AIDS patients and MARPs with government’s response.
Provide for the establishment and operation of population offices to ensure the effective implementation of population management strategies and measures at the local level.
Facilitate the development of a National Program of Action and Investment Plan for the prevention of teenage pregnancy. The program of action will serve as the national framework for interagency and inter-sectoral collaboration at all levels to address the various health, cultural, socio-economic and institutional determinants of teenage pregnancy.
Local Population Development Act
Prevention of Adolescent Pregnancy Act
Subsector Outcome: Access to functional service delivery network ensured
National Mental Health Care Delivery System
Establish the legal framework to provide care and services to those with mental illness. It will consolidate mental health provisions in existing laws, namely the Revised Penal Code, the Magna Carta for Disabled Persons, and the Family Code.
Amendment of the law on the
Barangay Nutrition Scholar
Upgrade incentives and benefits and ensure the security of tenure of BNS. This is essential in the provision of continuous frontline nutrition services to the community. This law will ensure that trained and experienced BNS are carried over by succeeding political administrations.
Sector Outcome B: Lifelong learning opportunities for all ensured
Subsector Outcome: Quality, accessible, relevant and liberating basic education for all achieved
Magna Carta for Day Care Workers
Provide day care workers with proper compensation and benefits
Subsector Outcome: Quality of higher and technical education and research improved for equity and global competitiveness improved
Philippine Qualifications Framework Bill
Establish a quality-assured national system for the development, recognition, and award of qualifications based on the standards of knowledge, skills, and attitude acquired by learners and workers in the country. It aims to institutionalize the PQF to encourage lifelong learning of individuals, provide employers specific training standards and qualifications that are aligned with industry standards, ensure that training and educational institutions adhere to specific standards and are accountable for achieving the same, and provide the government with a common taxonomy and typology of qualifications as a basis for granting approvals to stakeholders.
Enterprise-based Training Bill The bill aims to strengthen enterprise-based training by
consolidating apprenticeship and learnership dual training, on-thejob training and all other forms of industry-based training arrangements into one harmonized and rationalized system. Specifically, it aims to: a) help meet the demand of the economy for skilled workforce; b) establish a national enterprise-based training system and standards that is competency-based including all its modalities; and c) broaden the opportunities and venues of education and training for greater access.
Apprenticeship Bill Establish a reformed apprenticeship program that will ensure the
availability of qualified manpower in the field of critical and indemand technical skills, and with the active participation of all
LEGISLATIVE AGENDA RATIONALE
workers, enterprises, government agencies, and non-government organizations.
Amendment to the Dual Training Review RA 7686 in order to entice more companies to engage in
System Act of 1994 DTS. The current law stipulates the responsibilities of the trainees and establishments, and incentives for participating establishments.
Sector Outcome C: Income-earning ability increased
Subsector Outcome: Employability improved
100-Day Maternity Leave Act Institutionalize a mechanism to expand the maternity leave period of women workers. This will provide ample time for mothers to regain health and overall wellness as well as assume maternal roles before resuming paid work. (An extended paternity leave is also proposed to enable fathers to participate in child-rearing.)
Subsector Outcome: Productivity improved
Productivity Incentive Bill Encourage enterprises to adopt productivity improvement and gainsharing schemes. RA 6971 or the Productivity Incentives Act should be amended to liberalize its restrictive provisions. These include the basis for computing baseline productivity data, the manner and frequency of distributing productivity-based bonuses, and the sharing scheme. Workers and enterprises must be allowed to design their own productivity incentive programs depending on the growth requirements of the enterprise.
Subsector Outcome: Labor mobility and income security enhanced
Unemployment Insurance Address income insecurity of displaced workers. However, at present, there is no unemployment insurance for private sector employees. For a more efficient system that provides incentives for reentry to the labor market, unemployment insurance must be linked to active labor market programs such as employment facilitation, skills training, and livelihood. The rationale for government intervention must be to facilitate re-employment of the unemployed, upgrade skills for better employability, provide entrepreneurial opportunities, and protect the unemployed and their families against temporary loss of employment and income.
Reducing Vulnerability of Individuals and Families
People face various types of risks that may bring hardships and temporary setbacks or prolonged crises. These risks are associated with global or domestic economic instability, weather disturbances, health-related shocks, political disruptions, or other unexpected events that cause losses in income or assets. Some of these risks can be prevented and managed but others are unavoidable.
The Philippine Development Plan (PDP) 2017-2022 aims to enable individuals and families to deal and cope with risks. This chapter discusses strategies to reduce vulnerabilities by decreasing people’s exposure to risks and increasing their adaptive capacities. It describes a universal and transformative social protection program for all Filipinos that will build up socioeconomic resilience.
Assessment and Challenges
Poverty incidence decreased from 26.3 percent in 2009 to an estimated 21.6 percent in 2015. The decline could have been more pronounced were it not for the extreme natural and humaninduced shocks like super typhoon Yolanda, the Bohol earthquake, the Zamboanga siege, and El Niño, to name a few. These disasters, in addition to sudden illnesses and other shocks, are the most common reasons that even non-poor individuals fall into poverty and the poor find it hard to move out and stay out of poverty. This points to the importance of a social protection program that builds the socioeconomic resilience of the poor and those who recently graduated from poverty.
To determine appropriate interventions, a social protection program has to be based on a systematic understanding of the risk factors that may be present in some groups but not in others, or may affect people differently.
Inherent vulnerability. Certain individuals and groups have inherent vulnerabilities. These are the poor and transient poor, children, women, persons with disabilities (PWDs), indigenous peoples, overseas Filipinos (OFs) and their families, and older persons. Even non-vulnerable groups also face economic risks such as low and irregular incomes, and financial and economic crises. Other risks are brought about by environmental and natural hazards, and governance and political risks.
Children.In the Philippines, a child is a “person below 18 years of age, or a person over 18 years of age but is unable to fully care for him/herself or protect himself/herself from abuse, neglect, cruelty, exploitation, or discrimination because of a physical or mental disability or condition.”Often characterized by their dependence on adults, children are one of the most vulnerable sectors in society particularly during their first 1,000 days and through their early formative years. The preliminary results of the 2015 National Baseline Study on Violence
Against Children (NBS VAC) showed that: (a) two of three children reported to have experienced any form of physical violence in various settings; (b) three of five children reported to have experienced some form of psychological violence in any setting; and (c) one of four children reportedly suffered from some form of sexual violence in any setting.
Children are also among the poorest members of society. The 2012 basic sector data from the Philippine Statistics Authority (PSA) noted that 35.2 percent of Filipino children are poor. They are also vulnerable to continuing poverty and the economic shocks rendered by displacement, destruction to agriculture and properties, and lack of livelihood opportunities owing to major typhoons that devastated the country, foremost was super typhoon Yolanda (Haiyan).
Poverty also pushes a lot of children to work. In 2011, the number of working children was estimated at 3.3 million, of which 2.1 million were engaged in child labor. A huge chunk (97%) of them worked under hazardous labor conditions.
Women.Women face multiple and intersecting forms of discrimination such as women in poverty, women with disabilities, indigenous and Muslim women, women living in geographically inaccessible areas, and lesbian, bisexual, and transgender women. In fact, women have a higher poverty incidence than the general population in 2012 which was estimated at 25.6 percent. Societal norms impose additional risks as there is unequal power relationship between women and men.
Persons with Disabilities (PWDs).Disability is closely linked to poverty as one may cause the other. The poor may experience bad living and working conditions, which increase the risk of acquiring disability, and their exclusion and marginalization may reduce their economic productivity. Many PWDs become vulnerable to physical and psychological violence because of their disability. Disadvantages include lack of: (a) data on PWDs; (b) physical accessibility in schools and training facilities, government offices, public transportation, and government shelter and facilities; and (c) disability-support services to access information, communication and technology including personal assistance and sign language interpretation. Also, there are still individuals who hold limited and, sometimes, negative views toward disability and PWDs.
Indigenous Peoples.The National Commission on Indigenous Peoples (NCIP) says that there are 110 indigenous peoples groups in the Philippines numbering around 14 million persons in 2014, or about 15 percent of the total Philippine population of 92 million. The Indigenous Cultural Communities (ICCs) or indigenous peoples originally occupied more or less 13 million hectares, or approximately 45 percent of the total national land territory of about 30 million hectares.
Indigenous peoples are among the disadvantaged sectors identified under Republic Act 8425because of their vulnerability to exploitation and discrimination4. Extractive activities (i.e., mining and logging), “development work” (e.g., hydroelectric dams), in-migration, territorial control mechanisms (e.g., expropriation of land, imposition of territorial boundaries, and other policies), among others, lead to displacement and place great pressure on the preservation of their resources and way of life.
Older persons.In 2015, the estimated population of older persons, aged 60 years and above, was around 7.6 million (7.5% of the total population). This is expected to increase to 14.3 million in 2030 (11% of the total population). Older persons are particularly vulnerable since they are physically more fragile and have limited income sources.
Economic risks. Among the economic risks usually faced by the working age population are unemployment; underemployment; low and irregular income; end of source of livelihood; price instability of basic commodities; and financial and economic crises. Discrimination is also a form of economic risk for the vulnerable sectors not given the same opportunity for employment.
Overseas Filipinos (OFs) and their families.More than 10 million Filipinos are based abroad; more than half of them are temporary or irregular migrants. In 2015, newly-hired household service workers made up the largest proportion of deployed overseas Filipino workers (OFWs) at 37.8 percent, up from 28.2 percent in 2010. The OFWs are vulnerable to external shocks such as economic downturns in host countries, protectionist policies like Saudization, which requires Saudi companies and enterprises to fill up their workforce with Saudi nationals up to certain levels, and political instabilities, besides exploitation.
Workers in the informal sector (WIS).Although the definition of “informal sector” is still to be finalized, WIS are generally characterized as being outside the regulatory ambit of government. They could be working in hazardous conditions; they could be receiving substandard pay; they are typically not covered by social security.
Workers in the formal sector. Formal sector workers also face economic risks. A number of them experience income instability due to contractualization, retrenchment, and firm closures. In 2014, contractual workers accounted for 22 percent of the total 4.5 million workers employed in establishments with 20 or more employees.
Table 11.1 Precarious Employment in Establishments, 2014 (in 000 except percent)
CONTRACTUAL OR PROJECT-BASED
% OF TOTAL EMPLOYMENT
Note: The survey covered establishments employing 20 workers or more.
Source: Philippine Decent Work Country Profile 2016 (forthcoming), citing Philippine Statistics Authority, Integrated Survey on Labor and Employment
Female workers. One of the development objectives in this PDP is to increase the labor participation of women. Currently, however, there is no legal framework promoting work-life balance that will resolve the dilemmas faced by many women wanting to join the labor force. Female workers face additional vulnerability during pregnancy and maternity. Current maternity leave benefits are not sufficient to ensure that mothers have enough time to rest, recuperate, and regain their full health and adequately breastfeed their newborn. Women face risks such as gender wage gap, persistent occupational gender segregation, violence from their partners and sexual harassment in the workplace. With this, there is a need to empower women to ensure that mechanisms are in place to facilitate the entry of women workers into the formal sector, and promote work-life balance.
Natural hazards and human-induced shocks.Disasters caused by natural hazards are some of the leading causes of damage to property and even deaths. From 2005 to 2015, there were 2,754 natural hazardsexperienced. While not all of these events were considered catastrophic, about 56 percent of the damage to properties were due to typhoons and storms, 29 percent due to floods, and 6 percent due to landslides.Human-induced shocks are also inevitable and must be prepared for by the government. These may include incidents of house fires, crime, domestic violence, and military encounters.
Governance and political risks.Governance and political risks include effects of policies and regulation, and armed conflict, both here and abroad. Some development policies and regulations (total log ban, closed fishing season, closure of mines) may result in community displacement and termination of the stable income of people.
Social Protection Mechanisms
Social Protection (SP) mechanisms were put in place but these remain inadequate. Programs like conditional cash transfers, health insurance, social security systems, and income and livelihood support, have been existent but have limited coverage and benefits.
Children. To uphold the rights of children and ensure that their basic needs concerning education, healthcare and responsible parenting are met, the government implemented the Pantawid Pamilyang Pilipino Program or Pantawid Pamilya.
There have been a number of programs to eliminate child labor, such as profiling of child laborers, teaching Pantawid Pamilya parents on the rights of the child, advocating for child labor-free barangays and establishments, and providing livelihood assistance to parents of child laborers.
All these initiatives were combined into one program called HELP ME, which stands for Hhealth, E-education and training, L-livelihood, P-prevention, protection and prosecution and ME-monitoring and evaluation. In early 2016, several agencies under the Human Development and Poverty Reduction Cluster - Social Development Committee (HDPRC-SDC) signed a joint memorandum circular (JMC) to implement HELP ME in a convergent manner and cover all working children numbering 3.3 million in 2011.11
PWDs. Admittedly, there is limited understanding about the plight of individuals facing discrimination, abuse, exploitation, and bullying because of their attributes. Support services are lacking and government policies and programs are poorly implemented. A number of PWDs are not even aware of the benefits due them. Access to existing services remains a concern for PWDs residing in far-flung communities.
From 2011 to 2016, beneficiaries of the Pantawid Pamilya substantially increased from 2.3 million to almost 4.4 million households. However, the program had limited coverage of vulnerable sectors, especially PWDs, indigenous peoples, and homeless street families (Table 11.2).
Table 11.2 Number of Individuals Served by the Pantawid Pamilya, by Vulnerable Sector
VULNERABLE SECTOR SERVED
Households with PWDs
Homeless street families
Families in need of special protection
*Data as of Period (August - September 2016)
Source: DSWD Pantawid Pamilya Information System Data as of 31 December 2016
Older persons. Apart from PhilHealth coverage, indigent senior citizens receive a monthly pension amounting to PHP500. Since 2011, recipients of the Social Pension Program have significantly increased (Figure 11.1)due to the expansion of age coverage for indigents. As of December 2016, 1.3 million indigent senior citizens are enrolled in the program comprising 95.6 percent of the target population.
Figure 11.1 Indigent Senior Citizens Covered by the Social Pension, 2011-2016
The value of the pension, however, remained at PHP500. But increasing this amount needs to consider the increasing population of senior citizens and the need to ensure that sufficient budget is available to cover the indigent senior citizens.
Restrictive definition to qualify as indigent senior citizen hinders access to the program. Additionally, there is no national government body dedicated to address the issues confronting senior citizens.
Health insurance. The National Health Insurance Program (NHIP) coverage has reached 93 million in 2015 (92% of the total population). Of this, 61 million are the vulnerable (informal economy, indigent, sponsored and senior citizens).
Table 11.3 NHIP Beneficiaries per Membership Type
Persisting issues include gaps in coverage and low enrolment of households in the informal and self-employed sectors.
Another challenge is the need to increase the utilization of health insurance to match coverage expansion. Currently, benefit utilization among Pantawid Pamilya household remains low. This may be due to the lack of awareness of benefits and the inaccessibility of PhilHealth-accredited facilities. In addition, high cost of health and medical care can drive the households to reduce their consumption of other basic goods or forgo care. Out-of-pocket (OOP) costs still comprise 55.8 percentof total cost, implying that the support value of NHIP is low and that the NoBalance Billing policy for indigents has minimal impact. Medicines account for the highest share of OOP among all components of total health expenditures.
Social security systems for formal and informal workers. Institutions such as the Social Security System (SSS) and Government Service Insurance System (GSIS) provide an insurance for its members and beneficiaries against the hazards of old age, disability, and death. For female beneficiaries, SSS and GSIS provide sickness and maternity benefits.
GSIS pensioners receive at least PHP5,000 per month while SSS pensioners receive at least PHP2,200 per month.
SSS covers employers, regular employed and regular self-employed members, self-employed farmers and fisherfolk, agricultural workers, OFWs, non-working spouses, househelpers, and self-employed individuals with a net income of at least PHP1,000 per month through the expanded self-employed program.
There is a need to put in place programs that protect workers from high economic risks. These include an unemployment insurance mechanism coupled with aggressive employment facilitation. Informal sector workers need to be enrolled in social security programs even as they are being transitioned to the formal sector.
Under the principle “once a member, always a member,” SSS implemented the policy of allowing its members to submit voluntary contributions, regardless of employment status. Recognizing the growing role of the informal sector in the economy, SSS redefined its strategies to reach out to the members of the sector. However, despite these initiatives, enrolment rate remains low among those in the informal sector (seeTable 11.4).
Table 11.4 SSS Coverage by Type of Member, 2011-2015 (in thousands)
TYPE OF MEMBER
Total Registered Members
Source: SSS-CPPD Management Reports
* OFW Coverage is voluntary
In addition to insurance networks, the Employees’ Compensation Program (ECP) provides for income-replacement benefits and rehabilitation services in case of work-related injuries, diseases, and death.
OFs and their families. The Overseas Workers Welfare Administration (OWWA) provides social protection programs for OFWs covering disability, death and burial benefits, education and livelihood assistance program, and relief assistance program. The Department of Social Welfare and Development (DSWD), in coordination with the Department of Foreign Affairs (DFA), and other partner agencies, also provide services to OFs through the International Social Welfare Services for Filipino Nationals. Social welfare attachés (SWAs) assigned in selected diplomatic posts with large concentrations of OFs provide services and assistance to OFs who are in crisis or in need of special protection. Currently, SWAs are present in the Kingdom of Saudi Arabia, Malaysia, and Italy. DSWD is conducting a special audit of SWAs to assess the effectiveness of the International Social Services Offices and to identify the countries that must be prioritized.
The Migrants Workers and Overseas Filipino Act (RA 10022) mandates the provision of compulsory insurance to OFs. However, this insurance excludes direct hires, and is effective only during their stay in destination countries. In times of death and disability, OWWA members and their families receive benefits and assistance.
Assist WELL (Welfare, Employment, Legal, and Livelihood) Program, which converges reintegration assistance and services to address the needs of repatriated workers, began in 2014. It aims to cushion the impact of unemployment and assist in the reintegration of OFs in their respective communities by providing a one-time grant of PHP10,000 to distressed OFs. In 2015, around 6,500 repatriated OFs received assistance from the program.
Disaster-affected communities. According to the World Risk Report (2016), the Philippines ranks third among 171 countries with the highest levels of disaster risks. To prepare communities against environmental risks, the government has launched programs to identify vulnerabilities and create stop-gap measures to improve resilience. Called READY Project, the Hazards Mapping for Effective Community-Based Disaster Risk Mitigation initiated by the Department of Science and Technology (DOST) aims to address issues in local disaster risk management. The project has three components: (a) multi-hazard and risk assessment; (b) community-based disaster risk mitigation through development of community-based early warning system and conduct of information, education, and communication campaigns; and (c) mainstreaming disaster risk reduction in local development. The first component includes the Nationwide Operational Assessment of Hazards (Project NOAH), which has been instrumental in identifying vulnerable areas. The agency has also facilitated the formulation of comprehensive policies and plans that enabled local government units (LGUs) to prepare for upcoming disasters. The next step is to implement a nationwide rollout of the READY Project.
In times of disaster, DSWD augments the resources of local government units by providing food and non-food relief packs to affected households. Through the use of predictive analytics, estimates of households that will be affected can be done days in advance. Moreover, relief goods are sent to LGUs in advance to make their availability more timely. The DSWD’s National Resource Operations Center has helped make packing of relief items more efficient. It has made full use of lessons learned from the Yolanda experience to improve its disaster response program.
Disaster relief assistance from 2011 to 2015 has an average of 59 percent (Figure 11.2)in terms of the proportion of familiesaffected by natural and human-induced calamities provided with relief assistance.
Figure 11.2 Disaster Relief Assistance, 2011-2015
Early recovery and rehabilitation efforts for typhoons and tropical storms of great magnitude, particularly Sendong (2011), Pablo (2012), and Yolanda (2013), proved to be challenging. Following the onslaught of these super typhoons, bunk houses served as temporary settlements for affected communities. Provision of permanent resettlement took longer than expected, which spawned issues of human trafficking, gender-based violence, and diseases. Schools proved to be unconducive evacuation centers because of their structural design and lack of proper sanitation. Psychosocial support to victims and assistive devices for the specific needs of PWDs are to be provided to manage the psychological impact of disasters.
Under the pillar Pagbabagoor reducing inequality, the PDP 2017-2022 aims to build the socioeconomic resilience of individuals and families by reducing their vulnerability to various risks and disasters. In particular, the government will aim for universal and transformative social protection for all Filipinos.
The PDP aims to reduce each type of risk and enable people to manage individual, economic, environmental and natural risks. Table 11.5shows the plan indicators and corresponding targets.
Table 11.5 Plan Targets to Reduce Vulnerability of Individuals and Families, 2017-2022
END OF PLAN TARGET
Percentage of population covered by PhilHealth insurance
Percentage of out-of-pocket expenditure over total health expenditure
Proportion of poor senior citizens covered by social pension
(2016, coverage based on
Percentage of SSS regular members over the total number of workers employed by private sector
Percentage of employed in the government covered by GSIS
Percentage of OFW membership to OWWA over total documented OFWs increased
Proportion of children aged 5 17 years engaged in child labor, by sex and age*
30% reduction from latest data
Environmental and Natural Risks
Proportion of families affected by natural and human-induced calamities provided with relief assistance
Number of deaths due to disaster per 100,000 population*
Number of missing persons due to disaster per 100,000 population*
Emergency shelter assistance provided
Total government spending in SP as a proportion of the GDP* (in Php)
Total government spending in SP as a proportion of the national budget* (in Php)
*UN Sustainable Development Goals indicators
To build socioeconomic resilience of people, the government will aim to provide universal and transformative social protection that will benefit the entire population.
Social protection for the vulnerable will be based on the various risks that people face. Strategies will focus on job creation or efforts to create employment-centered growth and asset reforms. Social protection will include the following in its objectives: equity, social cohesion, nation-building, conflict management, disaster-risk reduction and management, and human capital formation. It will also prioritize the needs of the most vulnerable members of the community.
Figure 11.3 Strategic Framework to Reduce Vulnerability of Individuals and Families, 2017-2022
To mitigate risks faced by vulnerable groups:
Implement a convergence approach to help the poor and vulnerable become self-sufficient and self-reliant.The Listahanan showed that around 1.3 million household beneficiaries have already crossed the poverty line. While the numbers are still being validated,the urgent concern now is to prevent these families from retrogressing into poverty. To address health concerns, the Indigent Program of the NHIP will continue to cover the households identified in the Listahanan. There will also be programs to link these households with social enterprises to capacitate them to engage in livelihood opportunities.
Implement a multi-sectoral roadmap for children.This will build an enabling environment that respects, protects, and fulfils the rights of all children in the country. The government also recognizes the importance to protect children’s right to survival, development, protection, and participation, as well as their right to attain their full potentials as enshrined in the United Nations Convention on the Rights of the Child (UNCRC).
Enhance the conditional cash transfer program. The conditional cash transfer approach of the government will be continued to ensure that the rights of poor children are upheld. Moreover, it will be enhanced specifically to help child beneficiaries and their families become selfsufficient and self-reliant.
Reduce cases of child labor by 30 percent.The government will launch mechanisms to reduce cases of child labor and monitor the implementation of relevant policies.
Increase and harmonize maternity leave and paternity leave benefits.Increase in maternity leave benefits will ensure equal access to employment and security of tenure. This will cover female employees in the public and private sector. There is also a parallel initiative for the increase in paternity leave benefits from the current 7 days to at least 14 days. This will further ease the burden of caring for the infant.
Ensure a disability-inclusive society.Initiatives will include enhancing stakeholders’ understanding of disability (i.e., impairments and barriers to development) and stricter implementation of disability-related policies and programs. Relatedly, the Insurance Law will be reviewed to address issues on limited access to insurance policies due to disability and ensure adherence to the UN Convention on the Rights of Persons with Disabilities (UNCRPD).
Strengthen employment facilitation programs for PWDs.The government will adopt strategies to expand employment opportunities and enhance the quality of employment among PWDs. These will involve the integration of labor market information and employment facilitation systems, including supply and demand data, crafts and livelihood information, and conduct of trainings responsive to market demands. The government will also reinforce the implementation of laws providing incentives and recognition to employers with PWD staff.
Intensify social protection programs for OFs and their families.Social security benefits will be included in the standard employment contract for all types of OFs. The government will establish additional SSS, PAG-IBIG, and PhilHealth representative offices overseas, alongside massive information dissemination campaigns. There will be a review of existing state-to-state government mechanisms and identification of prospective bilateral agreements to maximize benefits and minimize costs of international migration. Additionally, to address the vulnerabilities caused by global developments, social safety nets will be extended and complemented by reintegration programs, skills upgrading, and skills matching with domestic opportunities.
Organize and support OFW family circles (OFCs).OFW family circles provide the link between OFs and their community. At the same time, the OFs are assured of a support system for the family left behind. Such circles also help OFWs navigate through the different phases of their overseas employment, including their reintegration when they return to the Philippines.
Improve social pension system.The Senior Citizen Law will be reviewed to tackle adjustments in social pension and redefine the inclusion criteria to improve coverage.
Establish a Council for the Welfare of Older Persons.Create a government body that will coordinate the formulation, implementation, and monitoring and evaluation of policies, plans, and programs for senior citizens.
Expand PhilHealth packages through the different health financial programs of the government.All health financial programs of government agencies will intersect to support a universal health insurance. The target is to increase benefit utilization and adjust case rates to ensure full coverage of cost of care. Benefit packages will continue to expand and cover outpatient diagnostics, medicine, blood, and blood products. NHIP will guarantee full support value for the poor and those admitted in basic accommodation. Predictable or fixed co-payment will be given to those admitted in non-basic, private accommodation.
Enhance ZMORPH implementation.PhilHealth will develop clear accreditation guidelines for government and non-government health facilities across the country for Mobility, Orthosis, Rehabilitation, Prosthesis Help (ZMORH). This may include providing support to develop and capacitate service suppliers in all regions down to the provincial level.
To manage economic risks:
Establish unemployment insurance (UI).This program will address income insecurity by: (a) facilitating re-employment for involuntarily-unemployed individuals; (b) re-tooling as required in job transitions or entrepreneurial endeavors; and (c) cushioning individuals and their families from the impact of involuntary work dismissal.
Enhance social protection for the informal sector.Benefits and SP services will expand to safeguard workers in the informal economy.
Facilitate transition of workers from the informal to the formal economy.This will target the promotion and facilitation of access to SP programs such as employment and entrepreneurship opportunities, social security schemes, social services, and insurance systems.
Strengthen mechanisms to ensure enrolment in the social security systems.The government will revisit and assess existing mechanisms to encourage SSS enrolment of people in the informal sector.
Ensure successful socioeconomic reintegration of overseas Filipinos and their families.The government will continue its initiatives toward the successful reintegration of OFs through the Assist WELL Program. Agencies under the Human Development and Poverty Reduction Cabinet (HDPRC) Cluster will converge efforts to intensify reintegration awareness, counselling, and onsite support to OFs and their families.
To deal with natural hazards:
Roll out climate and disaster vulnerability and risk assessment nationwide.To mainstream disaster risk reduction and climate change adaptation (DRR-CCA), the Climate Change Commission (CCC) will craft an enabling policy and provide assistance to local communities in conducting vulnerability and risk assessment. The results of the assessment will form the backbone of local strategies and measures to reduce vulnerabilities.
Develop facilities for adaptation including risk transfer mechanisms (RTM).The People Survival Fund (PSF) Facility will provide technical and financial assistance to enable local communities implement adaptation measures. The CCC will explore partnerships with the National Disaster Risk Reduction and Management Council (NDRRMC) to maximize the PSF and NDRRM Fund for risk transfer schemes such as insurance. It will also provide a clear policy on how climate finance will enhance SP for vulnerable communities.
Provide adequate transition houses and livelihood opportunities to disaster victims during the early rehabilitation and recovery period.National and local government units will collaborate in identifying safe areas for the construction of transition houses prior to relocation of victims to permanent resettlement areas. Identification of these areas can be based on the available risk assessments and hazard maps. Structural design will be improved and establishment of women and children-friendly spaces will be undertaken to protect and promote the welfare of women, children, and indigenous peoples. Protocols for emergency cash transfers, calamity loans, and livelihood programs will be established in areas most likely to be affected by disasters.
Provide adequate mental health and psychosocial support services (MHPSS).Disaster responsemust include economic, material and physical needs, and psychosocial and mental concerns. Efforts will include increasing public awareness of the MHPSS, capacity building of local implementers, and ensuring that facilities and relocation sites are MHPSS-friendly.
To address governance and political risks:
Address concerns of children in situations of armed conflict.Establish a protocol on monitoring, reporting and response system (MRRS) at the national and local levels. For the next six years, the Council for the Welfare of Children will: (a) establish a monitoring system at the national, regional, province, municipal and city levels to record and track incidents; and (b) respond to all cases of grave child rights violations and provide appropriate programs and services to the victims.
Address statelessness of individuals.Government will ensure that no child or person is stateless or undocumented in the Philippines. To achieve this, the following processes will be institutionalized: (a) identification of populations at risk of statelessness (foundlings are included); (b) issuance of legal documentation; (c) completion of processes related to confirmation of nationality; (d) enactment of laws, issuance of policies, and implementation of programs and services; and (e) amendment of Civil Registration Law and RA 9139 or the Philippine Immigration Act.
Formulate impact statement and design measures to mitigate the adverse impact of policies, programs, and projects.A protocol will be developed to identify the adverse impact of policies, programs, and projects, and design the necessary measures to mitigate this impact. Next step is to conduct capacity-building programs and then institutionalize the process.
To achieve universal social protection:
Adopt and institutionalize the Social Protection Floor.This guide will be anchored on the country’s official SP definition, and will consequently guide the identification and prioritization of relevant programs for vulnerable sectors.
Develop a medium-term Social Protection Plan.In 2013, the SP Handbook and SP Vulnerability and Adaptation Manual (SP-VAM) were developed. As of 2016, about 63% of the LGUs have been trained on the use of the SP Handbook. There is still a need to cover the remaining LGUs and expand the SP mechanism to include isolated and conflict-affected communities. See Chapter 17.
A medium-term SP Plan will serve as the point of convergence of various agencies in their implementation of SP programs. The SP Plan will be consistent and in harmony with the overall national development plan to provide broad guidance to national government agencies, LGUs, and civil society organizations (CSOs) in conceptualizing, delivering, and evaluating SP interventions, programs, and services.
Mainstream social protection in the local development process.Mainstreaming the SP framework at the local level will ensure its integration in local development processes. It will entail the conduct of SP dissemination forums to popularize it both at the national and regional levels.
Implement a Social Protection Statistical Framework.The government will formulate the framework and its subsequent indicators, consistent with the Philippine Statistical Development Plan (PSDP) and aligned with the UN Social Development Goals (SDGs) to deliver quality SP statistics in support of evidence-based policymaking, program implementation, and monitoring and evaluation. The data should track the status of vulnerable sectors, such as PWDs, WIS, child laborers, and indigenous peoples. This will also include early detection systems of risks that could affect communities.
Capacitate program and local planners on anticipatory planning (multi-scenario analysis) or future-oriented culture.Effective adaptation and mitigation measures will entail the application of multi-scenario analysis during risk assessments. Additionally, climate change projections will improve foresight on sector impacts, and will assist stakeholders in adjusting their systems to mitigate risks.
Improve implementation of laws and policies on social protection.Apart from improved policy implementation, the government will assess resources and capabilities of relevant national government agencies (NGAs). Existing laws such as Batas Pambansa Blg. 344will undergo review and possible amendments to be more responsive to emerging socioeconomic issues.
To complement the strategies, legislative action will be sought in support of the goal of achieving a universal and transformative social protection program for all Filipinos.
Table 11.6 Legislative Agenda to Reduce Vulnerability of Individuals and Families, 20172022
LEGISLATIVE AGENDA RATIONALE
Individual Lifecycle Risks
Philippine Adoption Act for
Abandoned and Neglected Improve the quality of foster care for abandoned and neglected children, Children and for Children with particularly those with special needs. Special Needs
Anti-Senior Citizen Abuse Act Protect senior citizens from all forms of abuse.
Support PWDs in rehabilitation services, appropriate assistive devices,
An Act Establishing a Disability technology, education, employment, and other disability support services. It Support Trust Fund will also involve capacity building of LGUs in providing services for PWDs and building their own trust fund.
Amend Republic Act 8972 on
Benefits and Privileges to Solo Increase the benefit package for solo parents. Parents and their Children
Social security initiatives Review the SSS Charter to ensure its long-term viability.
Amend Accessibility Law (BP Blg.
Include information, communication, and technology.344)
Unemployment insurance or Provide meaningful jobs, guarantee income security during sudden involuntary separation benefit unemployment, and provide financial assistance linked to active labor market system programs.
Subsidy on social insurance for Provide social insurance for the informal sector workers to safeguard and the informal sector incentivize them by registering in government programs.
Improve and harmonize the existing maternity benefits, including increasing
Extension of maternity leave the leave period from 60 to 78 days to at least 100 days for women in both benefits public and private sectors.
Environmental and Natural Risks
Mandatory Establishment of
Women-Child Friendly Spaces in Protect and promote the general welfare of women and children especially All Evacuation Centers in the during times of disaster.
Establish permanent and typhoon-resilient evacuation centers with the necessary facilities to avoid the practice of using classrooms as evacuation
Evacuation Center Act centers during calamities. Centers should also have PWD-friendly and elderly-friendly spaces. The NDRRMC will be in charge of identifying which municipalities and cities will be given priority.
Building Safe and Secure Communities
The quality of shelter and the kind of communities where people live can be both a source of vulnerability and a means to enhance development opportunities and improve human development outcomes. The government recognizes the importance of building and expanding people’s access to safe and secure shelter in well-planned communities. Housing has become even more significant given that, based on the results of a national survey for AmBisyonNatin2040, it is among the aspirations of most Filipinos. Moreover, housing and urban development become increasingly important as the economy grows, attracting people to urban areas where the opportunities are found. If not managed well, urbanization can pose risks to health, life, and property and compound natural hazards that cause disasters.
The Philippine Development Plan (PDP) 2017-2022 thus aims to support communities, marginalized sectors, local governments and the private sector in building safe and secure communities that will allow more families to enjoy a matatag, maginhawa, at panatag na buhay– strongly rooted, comfortable and secure – as part of building socioeconomic resilience.
Assessment and Challenges
Under the 1987 Constitution, “the State shall, by law, and for the common good, undertake, in cooperation with the private sector, a continuing program of urban land reform and housing which will make available at affordable cost, decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas.”
Achievements in terms of building shelters were dampened by the destruction caused by weather-related disasters and by increased demand. For the period 2011-2016, the National Shelter Program (NSP) delivered direct housing assistance to more than 730,000 households. This is supposed to correspond to an accomplishment rate of 83 percent; however, the number includes the housing units constructed after super typhoon Yolanda and the Bohol earthquake, which were not part of the original target. This in effect overstated the accomplishment rate because the target was not increased to factor in additional demand from households whose structures were damaged or completely destroyed.
Indirect housing assistance provided by the National Home Mortgage Finance Corporation (NHMFC), through the Housing Loan Receivables Purchase Program (HLRPP), accomplished more than twice its target at 256 percent. In contrast, Home Guaranty Corporation’s (HGC) housing guaranty program delivered only 56 percent due to the relatively low demand for housing guaranties from banks and financial institutions.
Table 12.1 Housing Targets and Accomplishments (in units/households), 2011-2016
KEY PERFORMANCE INDICATORS
Direct Housing Assistance
HDMF Socialized Housing
HDMF End-User Financing
GFI's End-User Financing***
Total Direct Housing Provision
Indirect Housing Assistance
TA - CLUP (LGUs Assisted)
Source: Housing and Urban Development Coordinating Council (HUDCC)
* As of October 2016, includes the Typhoon Yolanda Resettlement Program
** Excluding HOMA
*** Accomplishment was not included in the computation of Low-cost Housing Performance Rate and Total Direct Housing Provision Performance Rate since there was no target set.
**** As of November 2016
Beyond outputs, the social impact of the National Shelter Program has not been sufficiently monitored and evaluated. The NSP anchors primarily on a housing finance approach that is demand-driven, project-based, and profit-oriented. Consequently, performance is monitored in terms of output rather than social impact, i.e., the decrease in number of lowincome families living in unacceptable housing. During the 2017 budget call, the Department of Budget and Management (DBM) noted at least 15,000 unoccupied houses in 26 resettlements sites completed by the National Housing Authority (NHA). Against this backdrop, the NSP will need to shift its focus on livability and building well-planned and resilient communities.
The shortfall in NSP’s performance may be due to the following: (a) slow process in land acquisition, licensing, and agency/local government unit (LGU) clearances, among others; (b) weak urban planning and unclear rules among government agencies, as well as national and local policies; (c) limited appropriations where housing traditionally received less than 0.5 percent of the annual national budgetor 0.12 percent of GDP, one of the lowest among Southeast Asian countries; and (d) institutional limitations among the key shelter agencies (KSAs). The confluence of these factors resulted in low budget utilization rates – 71 percent for NHA and 67 percent for Social Housing Finance Corporation (SHFC) (2013-2015).
The practice of KSAs to decrease NSP targets may indicate, among others: (a) need for more accurate models that can better project housing targets; (b) weaknesses in budget utilization of KSAs; (c) recurring inefficiencies within specific NSP programs; and (d) need for the passage of relevant legislative agenda (e.g. National Land Use Act [NaLUA], Comprehensive and Integrated Shelter Finance Act [CISFA] II, Department of Housing and Urban Development [DHUD])
The housing sector has identified several challenges that need to be addressed immediately.
Implementation issues in the delivery of decent and affordable housing to the intended beneficiaries (e.g. poor, underprivileged, and communities vulnerable to multiple hazards) need to be addressed.Although the government prioritizes in-city resettlement, delays in the delivery of housing programs persist due to land acquisition problems (i.e., limited suitable and affordable land) for socialized housing development. Furthermore, the required numerous intergovernmental transactions and associated bureaucratic processes hinder the efficient provision of housing.
Box Article 12.1. Status of the PHP50 billion Oplan LikasHousing Program for Informal Settler Families (ISFs) Living in Danger Areas in Metro Manila
Under the five-year PHP50 billion Oplan Likas housing program for the relocation of around 104,000 ISFs residing along danger areas in Metro Manila, more than 83,000 housing units (69%) were completed by NHA and SHFC as of September 31, 2016. On the other hand, around 26, 000 units or 22 percent are on-going and about 11, 000 or 9 percent are yet to be started. Of the total housing units delivered, 11 percent are in-city and 89 percent are off-city resettlements.
The implementation of the PHP50 billion housing program for ISFs living in danger areas has been slow due to land acquisition, site development, and relocation issues and bottlenecks.
Problems in land acquisition include lack of suitable and affordable land, objection of LGUs to absorb ISFs residing outside their cities or municipalities, delayed issuance of a Bureau of Internal Revenue (BIR) ruling on capital gains tax exemption for developers, and difficulties among ISFs in complying with technical requirements. On the other hand, site development is hampered by delayed issuance by LGUs of permits and other requirements. Relocation also becomes a problem due to delayed power and water connection in off-city resettlement areas. Also, ISFs often do not voluntarily relocate for several reasons, among them are: (a) lack of livelihood opportunities in off-city resettlement sites; (b) slow payment of financial assistance to ISFs; (c) titling for High Density Housing (HDH); and (d) affordability of units.
Other issues affecting the implementation of the programs for ISFs include: (a) LGU properties previously committed for the program were no longer available; (b) ISFs’ slow submission or failure to submit pre-qualification documents despite follow-ups; and (c) issue on the clearing of privately-owned properties (e.g., business establishments, barangay halls, etc.) within the waterways.
In response to the land management challenge, the PDP 2011-2016 Midterm Update and the 2014 Socioeconomic Report identified and reiterated the need to adopt alternative approaches to land acquisition (e.g., usufruct, long-term lease, land-banking), as well as innovative approaches to housing solutions (e.g., high-density mass housing, vertical developments for socialized housing, public rental housing, expansion of housing microfinance). Although a few LGUs explore new approaches in public rental housing and socialized housing vertical developments, they remain limited especially at the national level, except for the SHFC’s High Density Housing Program. Furthermore, there is no established national program with set guidelines and standards for public rental housing, as well as housing microfinance and other nonmortgage-based models.
Box Article 12.2 Status of Yolanda Housing Assistance
The Shelter Assistance Program (SAP) of the Department of Social Welfare and Development (DSWD) has helped 1.14 million families rebuild their houses destroyed by Typhoon Yolanda. As of September 2016, the Emergency Shelter Assistance program provided cash or material assistance to 105% of the target families with partially and totally damaged houses under the Comprehensive Recovery and Rehabilitation Program (CRRP). Under the Core Shelter Assistance Project (CSAP), 1,075 units have been completed and occupied by the family-beneficiaries, construction of 211 units is ongoing, and 1,709 have yet to be constructed.
For permanent housing for Yolanda-affected areas, the NHA was tasked to assist 205,000 families/households. The affected families/households are distributed in 6 regions, 14 provinces, and 115 cities and municipalities. As of September 2016, there are 29,661 units completed and construction of 102,240 units ongoing. Meanwhile, SHFC provided 4,000 ISFs with land security through 280 Community Mortgage Program (CMP) projects, amounting to PHP250.95 million, in the provinces of Leyte and Capiz.
The delay in the implementation of the Yolanda Housing Projects, which started in December 2014, was mainly due to the following:
- lack of suitable sites due to the classification of danger areas (“no-build zones”) and protected areas (e.g., Bantayan Island is declared a wilderness area, Camotes Island is a Mangrove Swamp Forest Reserve)
- slow conversion of safe sites from agricultural to residential use
- titling problems as most lands in the Visayas Regions are untitled, with only tax declarations available difficulty in securing approvals of local Sanggunians
- issues with BIR (e.g., contractors are required to pay taxes despite NHA’s certification to fast track the issuance of titles for projects under Yolanda delay in the issuance of BIR ruling and electronic Certificate Authorizing Registration (eCAR) for lot titling)
- non-implementation of Administrative Order No. 44 or “Streamlining the Process of Issuance of Permits, Certifications, Clearances, and Licenses for Housing and Resettlement Projects in Yolanda-affected Areas, Directing all Government Agencies Concerned to Observe the Same and Imposing Sanctions for NonCompliance”
An inclusive and sustainable urban development framework has to be developed. There is a call for an inclusive and sustainable urban development framework given the implications of population growth, rapid urbanization, and rural-urban migration in the country. The total housing needof the country remains enormous at approximately 6.80 million units for the period 2017 to 2022, with a housing backlog (accumulated need)of 2.02 million as of December 2016.In 2014, the proportion of the Philippines’ urban population to total population or “urbanization rate” was estimated by the United Nations to be at 44 percent, and will reach 56 percent by 2050.Expanding access to decent, affordable, and secure shelter, particularly in urban areas, has been difficult for the housing sector primarily due to rapid urbanization and limited availability of suitable and affordable land. As of 2011, there is an estimated 1,502,336 ISFs nationwide, of which 584,425 ISFs or about 39 percent are in Metro Manila.
Table 12.2 Estimated Housing Needs, by Component, 2017-2022
OF HOUSING NEEDS
(AS OF DEC
ANNUAL INCREMENTAL NEEDS
Total Housing Needs
A. Accumulated Needs
1. HH in
a. Rent-free without consent of owner
c. Dilapidated/ condemned
d. Marginal Housing
2. Doubled-up HH in Acceptable HU
1. Allowance for
2. Increase in HHs (likely to afford to own acceptable
Source: Housing and Urban Development Coordinating Council
Implementation of key strategies and reforms is constrained by fragmented institutional arrangements in the sector.Although housing is decentralized to LGUs as prescribed by the Local Government Code (LGC) of 1991, KSAs perform their functions based on their specific mandates but delineation of responsibilities between the national and local government is not clearly defined.Only a number of LGUs have established local housing offices and local housing boards to address the unmet housing needs of their poor and underprivileged constituents. Hence, linkage of local shelter plans to regional and national plans needs to be improved toward a more holistic settlement planning, and inter-LGU urban development and planning systems need to be established.
The adoption of a New Urban Agenda (NUA) presents several prospects and opportunities to enhance the housing and urban development policy framework. Moreover, the adoption of a National Resettlement Policy Framework (NRPF) will rationalize common procedures and guidelines in resettlement to be adopted by all infrastructure agencies, KSAs, LGUs, and other government agencies implementing projects with resettlement and housing components.
Furthermore, updating the National Urban Development and Housing Framework (NUDHF) 2017-2022 is a good opportunity to re-evaluate the urban framework, align it with the NUA and PDP, and develop forward-looking responses to the challenges confronting Philippine human settlements.
Under the pillar Pagbabagoor reducing inequality, the PDP 2017-2022 aims to strengthen socioeconomic resilience by building safe and secure communities. This chapter focuses on expanding access to affordable, adequate, safe, and secure shelter in well-planned communities.
For the period 2017-2022, the housing sector targets to deliver direct housing assistance to 1,558,711 households, mainly through the NHA Housing Production, SHFC Community Driven Shelter Programs, and Home Development Mutual Fund (HDMF) End-User Financing Program (see Table12.3).
Table12.3 National Shelter Program Direct Housing Assistance Targets, 2017-2022
(In Households Assisted)
I. Direct Housing Provision
A. NHA Housing Production
1. Resettlement For ISFs
2. AFP/PNP Housing Program
3. Settlements Upgrading
4. Cost Recoverable Housing (Employee's
5. High-Impact Projects
6. Housing Assistance Program For Calamity
- Permanent Housing
Total NHA Without HOMA
B. COMMUNITY DRIVEN HOUSING PROGRAM
1. Community Mortgage Program (CMP)
2. High Density Housing Program (HDHP)
C. RETAIL &
a. Socialized Housing (SH)
b. Low Cost Housing (LC)
c. Medium Cost (MC)
d. Open Market (OM)
Total Direct Housing Provision*
Indirect housing provision will be provided by HGC, NHMFC, and Housing and Land Use Regulatory Board (HLURB) to assist more than 1,584,000 households over the plan period (seeTable12.4). Further, HLURB will continue to assist LGUs in the formulation of Comprehensive Land Use Plans (CLUPs).
Table 12. 4 Indirect Housing Assistance Targets, 2017-2022
I. New Guaranty Enrolments
A. Socialized Housing
B. Low-cost Housing
C. Medium-cost Housing
D. Open Housing
II. License to Sell
III. LGUs provided Comprehensive
Land Use Plan
IV. Housing Loan
Table 12. 5 Plan Targets to Build Safe and Secure Communities, 2017-2022
END OF PLAN TARGETS
Access to affordable, adequate, safe, and secure shelter in well-planned communities expanded
Proportion of urban population living in slums, informal
(2009, UN- 22 settlements or inadequate housing decreased* (SDG 11.1.1)
Proportion of socialized housing target to housing needs
47.87 85 improved (%)
Figure 12. 1 Strategic Framework to Build Safe and Secure Communities, 2017-2022
The following strategies will be adopted to achieve the targets for building safe and secure communities:
Develop integrated neighborhoods and sustainable communities particularly for low-income households. The government will implement the National Spatial Strategy (NSS) which seeks to address the challenges of agglomeration economies, connectivity, and vulnerability. (See Chapter 3) Under the NSS, the growth and development of urban centers and human settlements will proceed in a rational and sustainable manner, with the convergence of efforts of various sectors. This is to ensure that housing and auxiliary services and needs of resettled ISFs are adequately satisfied. The physical infrastructure of housing and location of human settlements must also ensure compliance with disaster risk reduction and management (DRRM) and climate change adaptation (CCA) requirements to mitigate risks and address vulnerability.
Intensify implementation of alternatives and innovative solutions in addressing the housing needs of the lower income classes and vulnerable sector.Solutions such as public rental housing, mixed-income / mixed-use housing development, housing microfinance initiatives, incremental housing programs, and housing cooperatives will be used to enhance housing affordability. These solutions will help address the issue of low occupancy rate and cater more sustainably to the needs of the homeless, poor, and underprivileged beneficiaries.
In addition, voucher-type direct subsidies for socialized and economic housing will be explored. A voucher-type scheme can expand the delivery mechanism to include not just NHA and SHFC but also the HDMF, LGUs, and government financial institutions (GFIs). Such a scheme introduces quasi-competition among players that comply with the substantive and procedural requirements of the Urban Development and Housing Act of 1992.
The National Informal Settlements Upgrading Strategy (NISUS) is the entry point to integrate these proposed solutions. The NISUS intends to provide secure tenure to at least one million ISFs by 2025.
The national government and LGUs will prioritize the establishment of safe and secure settlements for fisherfolk who can serve as stewards for the sustainable use of coastal and marine resources.
Housing finance reforms shall be instituted to meet the needs of starting families. The HDMF contribution system should be restructured to allow for a better matching of the age-earning profile of members and the required payment stream.
Strengthen decentralization of housing and urban development interventions. As prescribed by the LGC, LGUs shall be at the forefront of housing and urban development, with the support of the national government. The decentralization of housing and urban development efforts will be reinforced, especially on local shelter planning, comprehensive land use planning with a ridge-to-reef approach, land acquisition and development, curbing proliferation of informal settlers, implementation of Regional Resettlement Action Plan (RRAP), and pursuit of NUA and SDGs, in coordination with the NGAs.
Adopt viable land acquisition approaches and fast-track the inventory of lands for socialized housing development. The upscaling of land acquisition approaches aside from land ownership (such as usufruct, long-term lease, lease variants and land-banking, among others) will be pursued to address the perennial problem of identifying suitable land, particularly in urban areas. This will also address affordability issues and hasten land disposition for socialized housing.
Inventory of lands and cadastral surveys will be fast-tracked to hasten the process of identifying land for housing projects. The government will identify its idle land assets for potential use in socialized housing, as provided under Memorandum Circular No. 87, s. 2015.Full implementation of an integrated land and ISF information systemwill facilitate the identification of suitable lands for socialized and low-cost housing, as well as the mapping-out of government properties, forfeited properties, hazard areas, and location of informal settlers.
Mainstream program convergence budgeting in housing and resettlement, and innovative housing finance modalities. A programmatic and convergent approach to planning and budgeting for housing and resettlement interventions will be institutionalized in the national budget process. This will ensure that the budgetary requirements of agencies are identified early in the budget planning process for social preparation, provision of shelter, utilities, infrastructure, community facilities, livelihood opportunities, and social enterprise.
The budget will consider a proposed policy on an income-based subsidy scheme that will bridge the gap between housing costs and varying income levels of families. Under this scheme, those with lower income will receive higher subsidy. The National Resettlement Policy Framework (NRPF) will accommodate this scheme; KSAs shall likewise secure additional financing from the private sector through Public-Private Partnerships (PPPs), where government’s share will be in the form of government-owned lands under a sale, usufruct, or long-term lease arrangement.
Strengthen partnerships with stakeholders. As a cross-cutting strategy, the sector will continue to strengthen its multi-stakeholder partnerships through a participatory approach. This is to ensure that local shelter plans are linked with the National Resettlement Plan (NRP). It will encourage PPPs for housing projects and improve the compliance of developers to the policy of balanced housing development. The government will also harness the services of volunteers from the academe, corporate, non-government, and international organizations in delivering social services, providing technical assistance, responding to disasters, and undertaking humanitarian efforts.
Adopt a community-driven development (CDD) approach in shelter provision towards safe and secure communities.A gender-responsive CDD (“peoples’ plan”) approach will be promoted to involve the beneficiaries in the entire development process. Such an approach will help increase occupancy rates and efficiency in the collection of housing loan amortization, improve estate management, and ensure inclusive access to and control of housing and human settlement services and benefits.
The government will continue to adopt MASA-MASID (Mamamayang Ayaw sa Anomalya, Mamamayang Ayaw sa Iligal na Droga), implemented through DILG Memorandum Circular No. 2016-116. MASA-MASIDis a community-based program that encourages volunteers through the Ugnayan ng Barangay at Simbahan(UBAS) to assist the government in its campaign against corruption, illegal drugs, and criminality in the barangays. It adopts a multisectoral and mass-based approach, and banks on the participation of people to spark and sustain the spirit of volunteerism in the communities toward nation building.
Strengthen housing as a platform to reduce poverty and improve social outcomes. Housing programs will be linked with other social development programs. It will help maximize the “multiplier effect” of the provision of housing units as a means to reduce poverty, generate jobs and employment, and spur downstream economic activities.
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To complement the strategies, legislative action will be sought in support of the goal of building safe and secure shelter in well-planned communities.
Table 12.6 Legislative Agenda to Build Safe and Secure Communities, 2017-2022
Creation of the Department of
Housing and Urban Development
Integrate all housing and urban development policies, plans, programs, and projects. This department will be the sole NSP entity for planning and policymaking, regulatory, program coordination, and performance-monitoring.
Creation of the Social Housing
Strengthen the role of the previously created SHFC (by virtue of Executive Order No. 272, s. 2007) by redefining the powers and functions of the President, Board of Directors and of the Corporation, providing incentives, and enabling the SHDFC to enter into loans and issue bonds and other debentures to raise funds for housing construction.
Passage of the National Land
Use Act (NaLUA)
Establish a national land use framework that will define the indicative priorities for land utilization and allocation across residential, infrastructure, agricultural and protective uses; integrate efforts and monitor developments related to land use; and evolve policies, regulations and directions for land use planning processes.
Passage of the Comprehensive and Integrated Shelter Finance Act (CISFA) II
Enact the continuation of CISFA or RA 7835 to increase budget appropriation for the socialized housing program of the government, and significantly increase the provision of housing and tenure security to poor informal settlers in order to attain the SDGs.
Passage of the Idle Lands Tax
Promote the productive use of land by rationalizing taxation of idle lands, thereby repealing sections of RA 7160, otherwise known as the Local Government Code (LGC) of 1991.
Creation of Local Housing Boards (LHBs) in every city/ municipality
Strengthen the roles of the LGUs in providing shelter to households through the mandatory establishment of local housing boards in every city and municipality.
Amendments to the NHMFC
Strengthen its mandate to include the development of a secondary mortgage market for housing-related financial instruments and issuance of housingrelated asset-backed securities.
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Reaching for the Demographic Dividend
The age structure of a country’s population matters. A country whose population consists mostly of young children means that these children have to depend on those of working age. Likewise, as the population ages and the number of elderly persons appreciably increases, the dependence of this group on the workforce rises. By contrast, when people of working age comprise a relatively large proportion of the population, the workforce can generate increasingly higher production and income for the country and its population. This indicates that such a country has made the socalled demographic transition, resulting in what is conventionally referred to as demographic dividend.
Recognizing that demographic transition needs to be observed and planned for to enable the economy to reap the demographic dividend, the Philippine Development Plan 2017-2022 devotes this chapter on it. It spells out the key challenges and corresponding strategies to ensure that as the demographic window opens, more of the country’s population will steadily have good health and the right sets of skills to be highly productive. This is a condition that boosts economic growth and poverty reduction. Optimizing the demographic dividend is one of the key strategies to be implemented at the national and sub-national levels, under the national development pillar of Patuloy na Pag-unlador raising the economy’s potential growth.
Reaping the Demographic Dividend
Demographic dividend stems from demographic transition when fertility (birth) and mortality (death) rates decline, such that the age distribution changes to an extent that lesser spending is required to meet the needs of the youngest and oldest age groups. This frees up the resources for investment in economic development and family welfare.Demographic dividend therefore is a benefit, a windfall that is good for the economy and society.
Economies in East Asia (South Korea, Taiwan, and Hong Kong) began to reap this dividend as early as the 1980s, as did Singapore and Thailand in the 1990s, and Indonesia and Malaysia in the early 2000s. What is noteworthy is that, apart from reasonably good economic policies, all these countries have modern family planning (FP) programs beginning in the late 1960s to early 1970s and sustained over time. The Philippines, although it started its FP program in 1969, discontinued the program in the late 1970s due to strong opposition from conservative groups.
The Philippines is therefore only in the first phase of demographic transition characterized by a large proportion of the population in the under-15 years age bracket and with households having a large dependency burden.The shift to the second phase, that is, a bigger proportion of the working age population vis-à-vis dependents, will depend on how the country manages population growth through the Responsible Parenthood and Reproductive Health (RPRH) Law.
Figure 13.1 shows how the Philippines’ population pyramid by age compares with those of Thailand and South Korea.
Figure 13.1 Population Pyramids: Philippines, Thailand, and South Korea, 2015
A business-as-usual scenario means that the country needs to wait until at least 2050 to benefit from the demographic dividend, or possibly even miss it altogether. Full implementation of the RPRH law, coupled with adequate investment in the youth’s human capital, on the other hand, will enable the country to reap the dividend starting possibly in the 2030s through the 2040s.
Assessment and Challenges
Several factors associated with changes in the size, structure, and attributes of the country’s population affect the prospects for reaping the demographic dividend. These include population growth rates and distribution, health, education, employment, and finances. The country faces a number of challenges in these areas, and they need to be addressed.
The number of Filipinos continues to increase and the population is unevenly distributed across regions.The latest Population Census recorded about 101 million Filipinos living in the country in 2015. While the pace of growth is slowing – from 1.9 percent annual growth rate in 2000-2010 to 1.7 percent in 2010-2015 – the population continues to grow significantly, with about 2 million Filipinos added to the population every year. (Figure 13.2)
Figure 13.2 Trends in Population Size and Population Growth Rate: Philippines, 1948-2015
Source: Philippine Statistical Authority. Census of Population and Housing 2015
Regional differences in population size and growth are likewise noticeable based on the 2015 Population Census. Among the 17 administrative regions, CALABARZON (Region 4A) has the largest population with 14.4 million, followed by the National Capital Region (NCR) with about 12.8 million and Central Luzon (Region 3) with approximately 11.2 million. About onethird of Filipinos live in these three highly-urbanized regions, which can now be called a megaurban regional agglomeration.
The regional patterns of population growth that drive changes in regional age structures are linked to inequality in opportunities and outcomes.Economic opportunities are concentrated in a few regions, notably NCR, Central Luzon, and CALABARZON, where social conditions and development outcomes are better than other regions. Their relatively better performance compared with the rest of the regions is a product of geography and initial resource endowments. Public policies also influence the level and range of economic opportunities, the pace of social transformation, and the population movements in response to these economic and social developments.
Table 13.1 Trends in Population Size by Region: Philippines, 2010 and 2015
Ilocos Region (I)
Cagayan Valley (II)
Central Luzon (III)
Bicol Region (V)
Western Visayas (VI)
Central Visayas (VII)
Negros Island Region
Eastern Visayas (VIII)
Northern Mindanao (X)
Davao Region (XI)
| || || || || || || |
Source: PSA, 2015 Population Census
Young Filipinos continue to form the base of the country’s population age structure. Based on the 2010 population census, about 33.4 percent or 30.7 million Filipinos were below 15 years of age; 60.3 percent were between 15 to 64 years old (comprising the working or productive ages); and 4.2 percent were aged 65 and over. Having a young population means a continuing increase in population due to the large cohorts of young women who will soon enter the childbearing years and contribute to the fertility level in the country (population momentum). This also explains the large number of young dependents. In 2010, there were about 54 young dependents (14 years and below) and seven old dependents (65 years and above) for every 100 persons of working age (15-64 years old). Since not all in the working ages are engaged in productive labor (i.e., some are studying and others are unemployed), the real (economic) dependency ratio would be much higher than the age dependency ratio.
Figure 13.3 Population Distribution by Age Group and Sex: Philippines, 2000 and 2010
Source: Philippine Statistical Authority. Census of Population and Housing 2000 and 2010
The older population in the country is still a small fraction but slowly growing.In 2010, Filipinos aged 60 and older accounted for 6.2 percent of the country’s population, almost the same level as in 2000. However, while ageing prevalence in the Philippines may be relatively low, the proportion of the elderly to the total population is expected to reach a double-digit mark in 2020 assuming a moderate fertility and mortality decline. Females, who have a higher life expectancy, constitute the majority (55%) of the elderly population.
Figure 13.4 Percent Distribution of Population by Age Group, 1960, 2015, and 2045
Source: Philippine Statistical Authority. Census of Population and Housing 2000 and 2010, and 2010-Based Population Projections
Albeit slow, the declines in fertility since the 1960s have changed the age structure of the national population(Figures 13.2 and 13.3). The proportion of the young age group (0-14 years) has declined from 45.7 percent in 1960 to 32 percent in 2015, while the proportion of the working age group (15-64) years has increased from 52 percent in 1960 to 63 percent in 2015. Further shifts in the age structure are expected as fertility decline accelerates.
The demographic transition is slow because fertility rate remains high. The demographic transition is described as a change from a situation of high fertility and high mortality to one of low fertility and low mortality. In the Philippines, the demographic transition is at a stage where mortality is relatively low but fertility remains high. Based on the 2013 National Demographic and Health Survey (NDHS), every woman of reproductive age (15 - 49) has about three children within the duration of her childbearing years given the prevailing age-specific fertility rates in that year. While the actual fertility level reflects a modest improvement from the 1970s level (6 children), it has stagnated since 1996, with the latest figure at 3 children in 2013. More important, the latest TFR is higher by 1 child compared to the replacement fertility level of 2.1 children.
Figure 13.5 Trends in the Total Fertility Rate:Philippines, 1973-2013
The current fertility rate in the Philippine remains one of the highest in East Asia (Table 13.2). Rich countries that have gone through, and poor countries racing through, the demographic transition and that were able to achieve the replacement fertility rate of 2.1 include Singapore in the mid-1970s, South Korea in mid-1980s, Thailand in 1990, Vietnam and Myanmar in 2006. It is interesting that only three countries in Table 2have TFRs of about 3.0 in 2013: the Philippines (3.0), Lao PDR (3.0), and Cambodia (2.9).
Table 13.2 Trends in Total Fertility Rate: ASEAN and Korea, 1960-2013
Rest of SE Asia
Source: Cited in Mapa, 2016
Poor and less-educated women have more children than they want. Overall, Filipino women have one child more than what they wanted. However, poor and less-educated women tend to have two children more than what they want. The difference between the actual and wanted number of children among the poor and less educated and among those in the upper socioeconomic categories as shown in Table 13.3remains large and untenable.
Table 13.3 Actual and Wanted Fertility by Education and Wealth Index Quintile
TOTAL FERTILITY RATE (CHILDREN)
TOTAL WANTED FERTILITY RATE
Source: National Statistics Office. 2013. National Demographic and Health Survey (NDHS)
Closing the gap between the actual and wanted fertility rates means enabling women to exercise their reproductive rights. However, the challenge seems huge because poverty continues to constrain poor and uneducated women who have higher actual and wanted fertility rates.
The number of girls getting pregnant and giving birth for the first time at a young age has been increasing. Another significant driver of high fertility in the country is the increasing teenage pregnancies or young age at first birth. Early initiation of childbearing lengthens the reproductive period and subsequently increases fertility. Based on the 2013 NDHS, the median age at first birth is 23.5 years. More than one-fifth of women in the country give birth before reaching age 20. Moreover, the 2013 Young Adult Fertility and Sexuality Surveyconducted by the Demographic Research and Development Foundation (DRDF) noted an increasing proportion of adolescents aged 15-19 who have begun childbearing – from 6 percent in 2002 to 13.6 percent in 2013.
Women having more children than they wanted indicates a high unmet need for family planning.The high fertility level especially among poor women is mainly because of the low level of access to family planning commodities such as contraceptives. Only a third of women belonging to the lowest wealth quintile use modern contraceptives (33 percent modern contraceptive prevalence rate). More than 21 percent of these poor women have unmet need for family planning (i.e., they intend to limit or space their children but are not using any family planning method). Only 16 percent of women without education are using modern family planning methods and a high 24 percent have expressed unmet need for family planning.
Table 13.5 Contraceptive Prevalence Rate and Unmet Need for Family Planning by Background Characteristics: Philippines, 2013
CONTRACEPTIVE PREVALENCE RATE (MODERN METHOD)
UNMET NEED FOR FP
There are legal barriers to the full implementation of the Responsible Parenthood and Reproductive Health Law.While the RPRH Law has been enacted and affirmed as constitutional, the full implementation of the law is blocked by a temporary restraining order (TRO) on the distribution of implants and certification / re-certification of modern artificial FP commodities. The TRO affected the access of people, particularly of the poor because national and local governments are constrained in providing the widest range of free FP commodities and services. If not lifted immediately, the TRO will cause the non-availability of most of the modern FP commodities starting 2018.
Inequities remain in nutrition and health outcomes. While there have been major improvements in the health conditions of Filipinos as indicated by increasing life expectancy rates and low mortality and morbidity rates, inequities remain across regions, population and income groups. Among the regions, conflict-affected and disaster-prone areas experienced poorer health outcomes. ARMM lagged in most health indicatorsand regions exposed to multiple hazards (i.e. Zamboanga Peninsula and CARAGA) fared worse in some indicators compared to the national average.
Disparities in nutrition and health outcomes are evident across income classes. Families in the lowest wealth quintile suffer from a higher prevalence of underweight children and higher infant and under-five mortalities. This has implications on the quality of human resources in the future. Likewise, population with little to no education also have poorer health outcomes, because they lag behind in nutrition and health indicators.
Access to education has been uneven and completion rate is low. Acquiring new knowledge and skills allows the workforce to become more productive, thereby increasing their incomes and improving their quality of life. Thus, education is a critical input in optimizing the demographic dividend.
While enrolment rates have improved (see also Chapter 10), access to education and keeping children in school remain to be a challenge. FLEMMS 2013 data showed that 11.5 million of 6- to 24-year-olds are not in school. Marriage was cited as one of the reasons for not attending school among 16 to 24 years old. Across regions, out-of-school children and youth was most prevalent in Mindanao, particularly in ARMM, SOCCSKSARGEN, and Davao.
Meanwhile, data on highest educational attainment showed that of the 81.9 million population in 2013, only 20 percent have completed secondary education. There were slightly more females than males finishing high school. Regional data showed that ARMM has the lowest proportion of high school graduates, followed by Zamboanga Peninsula and SOCCSKSARGEN.
Youth unemployment is extremely high.Unemployment rate among 15-24-year-olds is more than twice the overall unemployment rate. In addition, the share of youth not in education and not in employment in the total young working population is 22.1 percent (see also Chapter 10). This has serious implications, as the demographic dividend will largely depend on a productive working-age population.
Saving rate in the country is low. The country’s gross national saving-to-GDP ratio stands at 29.9 percent as of the third quarter of 2016. Capital accumulation facilitates economic growth, which will be an important factor in maximizing the demographic dividend, and even creating a second demographic dividend. However, saving behavior is quite shallow. The BSP estimates that only 22 percent of adults have a formal savings account.
To achieve the overall PDP goal of laying a strong foundation for inclusive growth, a high-trust society, and a globally-competitive knowledge economy, the country’s potential growth must be increased. This will be done by accelerating the demographic transition of the country into the low mortality and fertility levels that can facilitate the shift in the population age structure to a point where the working age population comprises the bulk – also called the demographic window of opportunity. Once the demographic precondition of this phenomenon is reached, the county will aim to maximize its potential dividend for economic growth.
Table 13.6shows the indicators and targets for the plan period 2017-2022 to maximize the demographic dividend.
Table 13.6 Plan Targets to Maximize the Demographic Dividend
INDICATORS BASELINE (2016)
Sector Outcome 1: Accelerate demographic transition
Reduced crude death rate
Reduced Total Fertility Rate
Reduced proportion of adolescents who
13.6% have begun childbearing
Increased contraceptive prevalence rate for
37.5% modern FP
Sector Outcome 2: Maximize gains from the demographic dividend
Maternal mortality ratio per 100,000 live births
Under-five mortality rate per 1,000 live births
Prevalence of stunting among children under 5
Reduced youth unemployment
Figure 13.6 Strategic Framework to Maximize the Demographic Dividend
The following strategies will be pursued to speed up the demographic transition and maximize potential gains from the demographic dividend:
Subsector Outcome: Mortality rates reduced
To attain a low rate of mortality that can facilitate demographic transition, the government will pursue a sustained universal health care program. The focus will be on lowering mortality rates, which are currently highest among infants, young children, and women. Other health strategies will also be done to reduce mortality rates. See Chapter 11.
Subsector Outcome: Fertility rates reduced
To lower the fertility level, the country’s population management and reproductive health policies and programs will be strengthened. The main strategy will be to assist couples and individuals to achieve their desired family size within the context of responsible parenthood and informed choice in order to achieve population outcomes that are facilitative of economic growth.
Address unmet demand for family planning and unwanted pregnancies. The government, together with all stakeholders, will collectively aim to attain zero unmet need for modern family planning, mainly through the full and aggressive implementation of the Responsible Parenthood and Reproductive Health Act (RA 10354), the Magna Carta of Women (RA 9710), the National Population Policy (PD 79, s. 1972) and other relevant national interventions that promote the reproductive rights of Filipinos. Demand-generation strategies including advocacy for increased local government counterpart resources and funding will be intensified to ensure improved access of all Filipinos to the widest range of family planning methods.
Attention will also be given to the improvement of the socio-economic conditions of poor women in urban communities and geographically isolated and disadvantaged areas (GIDAs), including indigenous women. As women are generally the poorest of the poor and at the same time key actors in the development process, eliminating social, cultural, political and economic discrimination against them is a requisite for development, which involves: eradicating poverty; promoting sustained economic growth in the context of sustainable development; ensuring quality family planning and reproductive health services; and achieving balance between population, available resources, and sustainable patterns of consumption and production.
Men’s involvement and civil society and private sector engagement will likewise be encouraged to mobilize all stakeholders in the promotion of universal access to modern family planning methods. Service delivery networks for maternal and adolescent health and family planning will be strengthened to ensure the continuum of reproductive health care, particularly family planning.
Increase the age at first birth. Strategies to increase the age at first birth or maternal age will be anchored on the promotion of age-appropriate and comprehensive sexuality education among adolescents. This approach will enable them to exercise responsible sexuality to prevent early pregnancies. Reproductive health education will be pursued in curricular and extracurricular modalities in schools, communities, and workplaces. Communication strategies for responsible sexuality education will use social media and other online networks to reach out to various segments of young people, especially the adolescents.
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In compliance with the reproductive health law, age-appropriate reproductive health services, including family planning, will be provided to sexually-active adolescents and those who had their first birth in order to prevent unwanted repeat pregnancies. For this purpose, information and service delivery networks for adolescent health and development will be established and strengthened at the local level to ensure a continuum of care for young people.
The role of parents, teachers, and adults in guiding their adolescent children toward responsible sexuality will also be strengthened through institutionalized capacity-building. Partnerships with civil society organizations and youth organizations will be strengthened for a more coordinated implementation of adolescent health and development interventions.
Increase birth spacing. Proper birth spacing of three to five years will be promoted to lower fertility levels among women. Proper birth spacing likewise facilitates the demographic dividend in households and among individuals. With birth spacing that results in lower fertility, women have greater chances of productively participating in the labor force and in human resource formation activities such as education and training. They can spend more of their productive years in gainful or paid employment. Moreover, parents with fewer young dependents are more able to invest in the formation of their children, who comprise the future human resources of society. The promotion of birth spacing will be integrated in the promotion of reproductive health and family planning interventions.
Subsector Outcome: Quality of human capital improved
Optimizing the increasing labor force for more productive economic output requires a quality human resource. Thus, it entails the improvement of health, education, and total wellbeing of the human capital.See Chapter 10.
Improve health outcomes. Increased investments in health initiatives can significantly support human capital formation or development by ensuring that children are healthy when they go to school, that members of the labor force are productive, and members of the family can enjoy the fruits of their labor. The government will therefore: (a) guarantee services that will provide care at all life stages; (b) ensure the accessibility of these services in functional delivery networks; and (c) sustainably finance these services through universal health insurance.
Improve education processes and outcomes.An educated and skilled labor force is an equally important requirement for the optimization of demographic dividend. Reforms in the basic and higher education curriculum were done to adapt to current realities. The K to 12 curriculum integrates lessons on sexuality education to help students make informed choices and decisions on issues that affect their well-being. Meanwhile, the new general education curriculum in higher education aims to develop learners’ intellectual competencies, personal and civic competencies, and practical skills.
Given the growing labor force, more investments for the improvement of educational services and facilities will be made. Without substantive investment in education, the lack of schools and teachers will significantly affect the quality of education and, eventually, the quality of the labor force.
Interventions to address issues on education will be simultaneously implemented with the initiatives to address population issues. Improving the education of girls, especially at the secondary level, helps delay marriage and prevent teenage pregnancy. Women who marry later tend to have fewer children than those who marry at a young age.
Subsector Outcome: Youth unemployment reduced
Create jobs and economic opportunities. The optimal use of a large and quality human resource is a critical strategy for maximizing demographic dividend. For this, job creation in the industrial, agricultural and service sectors will be facilitated by the government, in collaboration with the private sector. This will be done through the establishment of a more favorable climate for expanded trade and investment that is environmentally sound; greater investment in human resource development; development of democratic institutions; and good governance. Special effort will be made to create productive jobs through policies promoting efficient and, where required, labor-intensive industries, and transfer of modern technologies.
In support of the administration’s thrust to create one million new jobs annually, the government will pursue initiatives through major employment-promoting strategies: (a) employment generation; (b) employment preservation; (c) employment facilitation; and (d) employment enhancement. Programs supporting employment generation have been pursued to directly or indirectly create new employment opportunities in the domestic labor. Employment programs for the youth will also include support to young parents as part of social protection. Improving the living wage of young workers, especially those with young children to support, will be prioritized.
Subsector Outcome: Savings build-up encouraged
The government will assist couples and individuals in achieving their desired fertility intention as part of responsible parenthood. As financial capacity is important, the government will encourage savings build-up at the micro-meso-macro levels. With fewer children, couples can save more from the expenses for the health, education, and total well-being of children. Early pregnancy has economic implications particularly on savings. Financial inclusion strategies such as the efficient delivery of microfinance and micro-insurance products and services will be implemented. See Chapter 15.
Subsector Outcome : Integration of population and development (PopDev) strengthened
There is general agreement that persistent and widespread poverty and serious social and economic inequities have a significant influence on, and are in turn influenced by, demographic parameters such as population growth, structure and distribution. To ensure that demographic dynamics particularly those related to demographic dividend are considered in sustainable economic and other development initiatives, the integration of population factors in all development initiatives will be promoted.
Establish and utilize population and development data in planning and program formulation.Demographic data needed for planning and formulating appropriate interventions to optimize demographic dividend will be strengthened at all levels. The use of population data will be promoted particularly in planning interventions in health, education, employment, infrastructure, and economic development. Development strategies will reflect the short-, medium-, and long-term implications of, and consequences for, population dynamics as well as patterns of production and consumption. Specific strategies will include the following:
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- Capacity building of national, regional, and local government institutions in establishing and utilizing a demographic and socioeconomic database in development planning. This includes strengthening the local survey systems for demographic and socioeconomic data to be conducted by local population and planning offices. The survey systems will support local development planning and program development initiatives.
- Improving the knowledge base on population and development interrelationships through continuing research and studies
- Building public awareness and political commitment to address population issues that have implications on development concerns
Promote optimization of youth Dividend as part of urban agenda.The prospect of demographic dividend is more pronounced in the urban areas because of youth migration to cities. Because internal migration is economically-motivated, urban areas remain the main destination of migrants because of the perceived availability of economic opportunities in the cities (pull factor). Cities usually receive the bulk of new entrants to the labor force and the concomitant pressure to employ these workers.
As such, initiatives to optimize demographic dividend entails improving the capacities of cities to employ the vast human resources that they receive. This involves a review of urban management initiatives to integrate strategies for the optimization of demographic dividend as an urban agenda. Such agenda, nonetheless, will be pursued within the framework of an integrated and interdependent urban-rural development. Demographic interventions will also be developed to address the declining number of human resources in the rural areas.
Legislative support will be required for the effective implementation of the strategies.
Table 13.7 Legislative Agenda to Maximize Demographic Dividend, 2017-2022
Institutionalization of Local Population and Development Policy
A cohesive policy for addressing population and development at the local level is needed.
National Policy on the Prevention of Teenage Pregnancy
There is a need for comprehensive policy to address the alarming levels of teenage pregnancy.
Strengthening of the National Population and Development Policy
A comprehensive policy for population and
development needs to be mainstreamed to address the fragmentation of government efforts and initiatives for population and development. .
Vigorously Advancing Science, Technology, and Innovation
Science, Technology and Innovation (STI) plays an important role in economic and social progress. It is a key driver of the long-term growth of an economy.
Technology adoption allows the country’s firms and people to benefit from innovations created in other countries, and allows it to keep up and even leap frog obsolete technologies. This can lead to significant improvements in the productivity of firms in agriculture, industry, and services.
On the other hand, long-term investments in building the local capacity for technology generation can lead to innovations that will give firms a competitive advantage. This can result in the creation of new firms and even entirely new industries that can provide high-quality jobs. Due to the long gestation period for developing this capacity, it is important to start planting the seeds early.
Just as important, STI can lead to the creation of new public goods and services (or new methods of delivering public goods and services) that will help address the needs of society, especially of the disadvantaged, including in the areas of health, education, energy, disaster resiliency, and climate change adaptation, among others.
This chapter discusses the priority strategies and outcomes needed to increase the country’s potential growth though innovation, which will build the foundation for a globally competitive knowledge economy.
Assessment and Challenges
There is a low level of innovation in the country brought about by weaknesses in STI human capital, low research and development (R&D) expenditures and weak linkages in the STI ecosystem. In the Global Innovation Index(GII) Report of 2016, the Philippines ranked 74thamong 128 economies in innovation, garnering a score of 31.8 out of 100. This is a slight improvement from the score of 31.1, ranking 83rdout of 141 economies in 2015.
The country also ranked 5thout of the seven members of the Association of Southeast Asian Nations (ASEAN) in the survey, ahead of Cambodia (95th) and Indonesia (88th), but behind Singapore (6th), Malaysia (35th), Thailand (52nd), and Vietnam (59th).
The factors behind the weak performance of the STI sector are as follows:
Weak STI culture. There is a lack of public awareness and interest in STI. Many sectors do not recognize, appreciate, and understand the use of technology and science-based information in their daily activities. Weaknessesin social and professional cultures (i.e., research culture in universities, commercialization of results from public research, and awareness of intellectual property rights) in the research community and the general public persist.
Despite their availability, there are reports that the technologies are not widely used among micro, small, and medium enterprises (MSMEs) and sectors like agriculture and fisheries. This can be attributed to the lack of awareness on the available technology outputs (technologies, processes, or services) derived from public R&D activities, and the various government incentives to support innovation and further spur its growth. Other reasons are weak links between technology generators and users, capacity constraints of users, and inadequate local government unit support.
Low government spending on STI. Investments in R&D are central to enhancing the country’s innovation ecosystem. STI monitoring and evaluation of expenditures on R&D and innovation activities, as well as support for human resources development in the various fields of science and technology (S&T) indicates low government spending.
While nominal R&D expenditures increased by 80 percent to P15.92 billion in 2013, the proportion of R&D spending to Gross Domestic Product (GDP) stood at only 0.14 percent. This is substantially below the 1 percent benchmark recommended by the United Nations Educational, Scientific, and Cultural Organization (UNESCO) and the global average of 2.04 percent. It is also low compared to other ASEAN countries, such as Vietnam (0.19 %), Thailand (0.36%), Malaysia (1.09%), and Singapore (2.0%).
The country’s relatively low ranking in the GII Report was pulled down by weaknesses in human capital and R&D, with a score of 22.7 out of 100, ranking 95th. This is due to the low public and private expenditure on education and R&D, as well as low tertiary inbound mobility.
The bulk of R&D spending (60%) comes from the public sector. This was used for agricultural and industrial production and technology, protection and improvement of human health, control and care of the environment. Most of the R&D activities in the country are concentrated in the National Capital Region (NCR), Region IV-A (CALABARZON), and Region III (Central Luzon).
Inadequate S&T human resources engaged in STI R&D. Another indicator measuring the capacity for technology generation is the number of S&T human resources engaged in R&D. As of 2013, the country has a total of 36,517 R&D personnel, of which 26,495 are key researchers (scientific, technological, and engineering personnel), and the rest are technicians and support personnel. This means that there are only 270 researchers for every one million Filipinos, which falls short of the UNESCO norm of 380 per million population and the 1,020 researchers per million population average across developing economies of East Asia and the Pacific.
Of the total researchers in the country from the government, higher educational institutions (HEIs) and private non-profit sectors, 14 percent have PhDs, 38 percent have Master's degrees, and 34 percent have Bachelor of Science (BS) degrees up to post-BS degrees. The low number of researchers in the country reflects the propensity of the educational system to produce graduates outside of Science, Technology, Engineering, and Mathematics (STEM) programs, which are the disciplines where R&D flourishes. Nevertheless, the latest GII Report indicates that in terms of graduates in science and engineering, the country garnered a score of 25.5 out of 100, ranking 26th.
Difficulty in increasing employment opportunities and retaining S&T human capital. An assessment of the country’s innovation system conducted by the United States Agency for
International Development-Science, Technology, Research and Innovation for Development (USAID-STRIDE) Program revealed that the supply of STEM graduates exceeds local demand. As a result, there is an out-migration and underemployment of many skilled, locally-trained scientists and engineers. The report also cited a shortage in training in fields that are critical to innovation, particularly in information technology. This situation makes it difficult for firms to findworkers with the required skills.
Brain drain contributes to the problem as researchers, scientists, and engineers, who are the key actors for the innovation ecosystem to flourish, prefer to seek employment overseas where there are better economic opportunities and potential for advancement. Since knowledge and technology are mostly embodied in human resources, the problem stresses the urgency to accelerate the development of R&D human resource.
Absence of a vibrant intellectual property culture.The output of R&D is commonly measured in terms of patents applied and granted to Filipino residents. However, reports show that many universities do not have the expertise to market their patent portfolios for commercial use. Furthermore, technology generators face persisting issues in technology ownership, while researchers are constrained by the “publish or perish” phenomenon. This situation results in a weak technology transfer system in the country.
From 2005 to 2015, there was an annual average of 209 patents, 599 utility models and 598 industrial design applications. In the same period, an annual average of 54 patents, 446 utility models, and 502 industrial designs were granted. In 2016, the World Economic Forum (WEF) ranked the Philippines 86th out of 128 economies in the number of patents filed under Patent Cooperation Treaty per million population. Invention patents granted to local inventors represent the smallest share in the number of intellectual properties granted from 2001 to 2013. Industrial design and utility models consistently comprise the majority of the intellectual properties granted.
The country also needs to catch up in research publications since the number of scientific publications in peer-reviewed journals per million population stands at 55, substantially below that of ASEAN member states Singapore (10,368), Malaysia (1,484), Thailand (478), and Vietnam (105).
Weak linkages among players in the STI ecosystem.The 2009 Survey of Innovation Activities and the 2014 USAID-STRIDE Assessment of the Philippine Innovation Ecosystem show that innovation actors have weak cooperation, partnerships, and trust among them. Most HEIs perceive collaboration with companies as outside their core missions and as potential exploitation of their product or ideas. Firms report that convincing HEIs to collaborate with them is difficult because of resentment, suspicion, and distrust. Hence, firms end up with little technical assistance from the government and research institutions.
Restrictive regulations that hamper the implementation of R&D programs and projects. The tedious government procurement process hampers the immediate acquisition of equipment and other materials for research, which in turn delays the implementation of R&D programs and projects. This was confirmed by the USAID-STRIDE study, which shows that restrictive regulations make the procurement of equipment and consumables for research extremely slow and unnecessarily complex. They decrease research productivity, publication potential, and speed to market innovations. In addition, the report says that government research grants do not compensate universities for the salary of faculty members’ research activities. This practice is rarely seen outside the Philippines.
Inadequate STI infrastructure. The country does not have enough STI infrastructure such as laboratory facilities, testing facilities, and R&D centers. Those that exist need upgrading. The situation contributes to the lack of absorptive capacity in research institutions. The USAIDSTRIDE report notes that public institutions failed to provide young researchers, particularly those returning from PhD studies abroad with more advanced research agenda, with the necessary equipment. The Philippines’ leading research institutions also remain concentrated in Luzon.
The government continuously engages in technology-intensive research and capacity building projects to improve the quality of its service to the people.
Some successful examples are the following:
Nationwide Operational Assessment of Hazards (NOAH)
Project NOAH was initiated in June 2012 to help manage the risks associated with natural hazards and disasters. The project developed hydromet sensors and high-resolution geo-hazard maps, which were generated by light detection and ranging technology for flood modelling. It provides timely warning with a lead time of at least six hours during floods.
- In April 2016, the country launched into space its first micro-satellite called Diwata-1. It was designed, developed and assembled by Filipino researchers and engineers, with support from Japanese experts. Diwataprovides real-time, high-resolution and multi-color infrared images. They are used in meteorological imaging, crop and ocean productivity measurements, and high-resolution imaging of natural and man-made features. It enables a more precise estimate of the country’s agricultural production, provides images of watersheds and floodplains for a better view of water available for irrigation, power, and domestic consumption, as well as information on any disturbance and degradation of forest and upland areas.
Intelligent Operations Center Platform
- The Intelligent Operations Center Platform was established through a collaboration between the local government of Davao City and IBM Philippines. The Center resulted in the creation of a dashboard that allows authorized government agencies (i.e., police, fire, and anti-terrorism task force) to use analytics software for monitoring events and operations in real-time.
Establishment of state-of-the-art R&D and testing facilities
The DOST in cooperation with HEIs and research institutions established state-of-the-art facilities that seek to spur R&D activities and provide MSMEs access to testing services needed to increase their productivity and competitive advantage. These include the following:
- Advanced Device and Materials Testing Laboratories – equipped with advanced equipment for failure analysis and materials characterization to address advanced analytical needs for quality control, materials identification, and R&D
- Electronics Products Development Center – used to design, develop and test hardware and software for electronic products
- High Performance Computing Facilities– perform tests and run computation-intensive applications for numerical weather prediction, climate modelling, analytics and data modeling, and archiving
- Philippine Genome Center– a core facility that combines basic and applied research for the development of health diagnostics, therapeutics, DNA forensics and preventive products, and improved crop varieties
- Drug Discovery Facilities– address the requirements for producing high quality and globally acceptable drugs
- Nanotechnology Centers– provides technical services and enabling environment for interdisciplinary and collaborative R&D in various nanotechnology applications
- Radiation Processing Facilities– used to degrade, graft, or crosslink polymers, monomers, or chemical compounds for industrial, agricultural, environmental, and medical applications
- Die and Mold Solutions Center- enhances the competitiveness of the local tool and die sector through the localization of currently imported dies and molds
STI will contribute in the achievement of the overall PDP goal of establishing the foundation for inclusive growth, a high-trust and resilient society and a globally competitive knowledge economy by increasing the country’s potential growth. This will be done by promoting and accelerating technology adoption and stimulating innovation. Increasing STI in the agriculture, industry, and services sectors as well as investments in technology-based start-ups, enterprises and spin-offs will result to the promotion and acceleration of technology adoption. On the other hand, enhancing the creative capacity for knowledge and technology generation, acquisition and adoption, and strengthening open collaboration among actors in the STI ecosystem will stimulate innovation (see Figure 14.1).
Over the next six years, the government will aim to achieve the targets indicated in the following table.
Table 14.1 Plan Targets to Leveraging Science, Technology, and Innovation, 2017-2022
Proportion of high-tech agriculture, industry and services valueadded in sectoral value-added_/1
Share of agriculture, forestry, fisheries, industry, and services R&D to sectoral Gross Value Added
Total number of Filipino patent registered
Total number of Filipino utility model registered
Total number of Filipino industrial design registered
Percent of technology business incubation locators that graduate
R&D expenditure as a proportion of GDP_/2
Researchers (in fulltime equivalent) per million population_/3
WEF-Global Competitiveness Report (GCR) Innovation Ranking among ASEAN member countries
WED-GCR Technological Readiness Ranking among ASEAN member countries
WEF University-Industry Collaboration Index among ASEAN member countries
Number of technology transfer agreements
Number of scientific articles published by Filipino authors
To achieve the sectoral outcomes, the strategies as indicated in Figure 14.1will be pursued.
Subsector Outcome 1: STI utilization in the agriculture, industry, and services sectors increased
Promote commercialization and utilization of technologies from publicly-funded R&D. The government will promote and accelerate the dissemination, transfer, commercialization, and utilization of knowledge, technologies, information and processes derived from publiclyfunded S&T activities without prejudice to intellectual property rights. Those technologies with high commercial potential shall be given priority assistance. The application of these knowledge, technology, information, and processes to the agriculture, industry, and services sectors will be given priority to improve productivity. This is expected to translate to an increase in incomes and jobs, especially in the countryside. The government will also foster the development of networks and markets, and undertake effective marketing strategies through the extensive use of quad-media and the organization of fora, fairs, and exhibits.
Develop a vibrant Intellectual Property Rights (IPR) culture. The initiative to improve patent applications performance through the Patent Incentive Package will be strengthened. Likewise, the provision of the Philippine Technology Transfer Act of 2009 particularly on ownership and revenue sharing will be institutionalized. Aggressive and sustained advocacy to increase the appreciation and understanding of IPR shall be undertaken in order to leverage intellectual property protection as an essential component of the innovation ecosystem. The government will also conduct information campaigns on the importance of intellectual property rights to strengthen public awareness and create an intellectual property culture among Filipinos.
Subsector Outcome 2: Investments in STI-based start-ups, enterprises and spin-offs increased
Encourage more innovative financing mechanisms and private sector investments.The government will create an investment environment that encourages more private sector participation, including angel investments, venture capital, and crowd fund-sourcing for STIbased startups, enterprises, and spin-offs. The investment provided may be a one-time investment to help the businesses launch or a continuing injection of support fund to help incubate startups during the early stages of their development (see Chapters 8 and 9 on incentives for prospective investors). The government will strengthen programs that provide financing to commercially-viable innovation projects to bridge the gap between R&D and commercialization.
Provide support mechanisms for start-ups and MSMEs in the regions.The government will strengthen the policy and regulatory environment, and introduce new mechanisms to support technopreneurs, start-ups, spin-off companies, and MSMEs. It will provide platforms for technology commercialization such as the establishment of new technology business incubators in the regions in partnership with the private sector and HEIs; promote available technologies; and extend consultancy and other services for productivity improvement. These initiatives are intended to encourage uptake of innovation-based entrepreneurship.
The Small Enterprise Technology Upgrading Program will be expanded to enable more MSMEs to access government assistance for the provision of innovative and cost-effective facilities, provision of technical support for compliance with product and quality standards, packaging and labeling, as well as training and consultancy services.
Additionally, the Startup Ecosystem Development Program will be pursued to usher in a new breed of businesses that will thrive in an innovation economy. Under the program, support for start-ups will be bolstered through government services, capital, and resources. In addition, a start-up economic zone will be established and assistance in connecting start-ups with industries, including multinational corporations and potential markets, will be provided.
Subsector Outcome 3: Creative capacity for knowledge and technology generation, acquisition and adoption enhanced
Support research and development agenda. The government will invest in building an efficient system of knowledge creation and technology generation. Among others, this will include basic research that needs revitalization, promotion and development through a more rational share in the STI ecosystem budget and infrastructure. As suggested in the Organisation for Economic Cooperation and Development Innovation Strategy 2015, long-term funding for curiositydriven research must be preserved, as this has been the source of many significant innovations in the past and has high social returns.
Funding support will be provided for the implementation of the Harmonized National R&D
Agenda (HNRDA), which defines the country’s priorities and guides public investment in R&D. The agenda will consolidate and promote basic and applied research in agriculture, aquatic resources, natural resources, health and nutrition, drug discovery and development, industry, energy, defense and security, and emerging technologies.
STI initiatives for the creative industries, tourism, and other services industries will also be undertaken. Public investments will be channeled to cybersecurity and other technology-related ventures. Furthermore, investments will be made in support of the goal of Self-Reliant Defense Posture, which develops a local defense industry to sustain the material and non-material requirements of the defense forces. Innovation activities on the sectors covered by industry roadmaps will be supported. These roadmaps shall consider the utilization of results of researches and their R&D requirements, which will be made part of the HNRDA.
To keep up with the rapid global technological trends and developments, the Philippines will engage in more collaborative R&D activities and invest in infrastructure buildup to develop its capabilities and maximize the use of the following core and emerging technologies: a) information and communications technology; b) biotechnology for industry, agriculture, health, and environment; c) nanotechnology; d) genomics; e) nuclear science for energy, health, agriculture, and industry; f) artificial intelligence; g) space technology; and h) disaster risk reduction and climate change adaptation, and mitigation.
Increase funding for human resource development. Increasing the number and quality of researchers, scientists, and engineers is an essential strategy for the establishment of a vibrant STI ecosystem. The target is to achieve and even surpass the UNESCO norm of 380 researchers, scientists and engineers per million population by 2025 from its current level of 270. This can be achieved by providing continuous support and funding to ongoing S&T scholarships such as the following: (a) Expanded Specialized Science Secondary Education Scholarship; (b) Expanded Undergraduate S&T Scholarships for Inclusive Development; and (c) Expanded S&T Graduate (Masters/PhD) Scholarships. Strengthening these S&T-based scholarship programs and providing specialized training and incentives will accelerate the development of the S&T human resources that will be tapped to contribute to nation-building. A competitive work environment will be created and research as a career will be promoted to help motivate competent human resources to stay in the country.
Tap the expertise of foreigners and overseas Filipinos (OFs). Mechanisms will be established to encourage overseas-based experts to share their knowledge and specializations with the academe and industry through information and communication technology (ICT), such as videoconferencing. The BalikScientist Program and other related initiatives will be strengthened. The potential role of OFs in developing the country’s STI capability will be recognized and pursued by providing opportunities for them. The hiring of foreign scientists and experts will be explored in areas where expertise is not available locally to leapfrog products and process development and build capacity in the field. Institutional linkages through OFs, especially in ASEAN, will also be fostered to encourage more R&D collaboration and capacity building activities.
Strengthen STI infrastructure. STI infrastructure development will be undertaken across the country in order to address region-specific concerns. Niche centers for R&D will be established to equip regional academic institutions and improve industry competitiveness. Moreover, modernization of existing R&D facilities and other STI infrastructures, both in the public and
private HEIs, will be pursued to enable them to carry out higher-level R&D activities. The government will also invest in the establishment of product development centers, materials and product testing facilities, and climate and disaster risk reduction facilities.
Improvement of internet connectivity by putting in place a robust ICT infrastructure, particularly the national broadband infrastructure, will be given priority to boost productivity in research and other STI activities. The government is preparing for the rollout of its fiber optic cable network under the “Convergence Program” to link national government agencies in a fiber-optic network and shared resources.
Establish and promote innovation hubs and other similar mechanisms. Innovation hubs will be established in strategic locations in the country to include food innovation centers and shared service facilities. The country will position itself to become the global hub for Disaster Risk Reduction and Climate Change Adaptation and Mitigation. The hub will provide a platform for sharing technologies, lessons and best practices in responding and recovering from natural disasters such as typhoons, floods, and volcanic eruptions.
In addition, an innovation center will be established to promote not only innovation, but also design and creativity, and to provide support for the creation of incubation centers for MSMEs and start-ups. The Department of Trade and Industry will coordinate with the Department of Science and Technology (DOST) and other government agencies, the academe, the private sector, and people’s organizations on the necessary investments in scientific and technological research, as well as government support for science and technology parks and local R&D and training.
Moreover, existing services that will be continued and bolstered, such as the following: a) One Lab (Harmonized Laboratory Testing Services); b) One Expert; and c) One Store.
Foster an STI culture. The culture of inventiveness and creativity (see also Chapter 7 on advancing “pagkamalikhain” or creative excellence) will be promoted in all sectors and as early as possible. Programs to boost the interest of young students to pursue STEM courses and the creative arts as viable career options will be pursued. Communicating STI through various media and in partnership with different stakeholders will be carried out to increase public awareness and interest on the importance of STI in daily life.
An STI culture that fosters more effective decision making will be promoted among policy makers and government officials and employees. Being major users and consumers of products and services, government offices will also serve as showcase and promoter of innovative and STI-based solutions. The government will also support LGU-led innovation activities.
Sub-sector Outcome 4: Open collaboration among actors in the STI ecosystem strengthened
Strengthen tri-partite collaboration. Collaboration in R&D based on the triple helix model, which involves the coordination and cooperation of university, industry, and government, will be strengthened. It will be facilitated through the elimination of institutional bottlenecks for joint research activities, such as burdensome processes and administrative procedures, particularly in public higher education and research institutions. The government will also leverage public R&D grants, tax, and other incentives to increase productivity.
Intensify international cooperation in STI. International cooperation will be pursued more aggressively to enhance the flow and benefit of a wide range of existing knowledge and technologies from other countries. Existing fora such as the ASEAN, Asia-Pacific Economic Cooperation and other similar platforms for dialogue and collaboration will be utilized.
Public and private STI institutions will be encouraged to participate and collaborate with international partners in research platforms that seek solutions to common regional concerns such as food security, climate change, disaster risk reduction, resiliency and preparedness, and conservation of resources and biodiversity. These research platforms necessitate specific and strong support for policies that can: (a) facilitate the mobility of S&T experts, researchers, academics and students and other highly skilled human capital; and (b) advance cross-border education and inter-university collaboration in order to foster innovations in solving common regional concerns.
To strengthen the effectiveness of the strategies, legislative action is needed on the following:
Table 14.2 Legislative Agenda to Leveraging Science, Technology, and Innovation, 2017-2022
LEGISLATIVE AGENDA KEY REFORMS
Sector Outcome 1: Technology adoption promoted and accelerate
Achieve a higher standard of S&T, by prescribing the basic An Act Establishing the Science for Change policy requirements for the promotion of S&T and
Program comprehensively and systematically promoting policies for the
progress of S&T.
Establish a National Metrology Institute under the DOST;
An Act Strengthening the National Measurement provide capacity building programs through competency
Infrastructure System amending RA 9236, also training to strengthen local metrology authorities; and set up a known as the National Metrology Act of 2003 and metrology training program to undertake proficiency testing, for Other Purposes advocacy education and training on metrology.
Subsector Outcome 2: Innovation stimulated
An Act Adopting Innovation as a Vital
Generate and scale up action in education, training, research
Component of the Country’s Development and development to promote the innovation and
Policies to Drive Inclusive Development, Promote internationalization activities of MSMEs as a driver of the Growth and National Competitiveness of sustainable and inclusive growth.
MSMEs, and for other Purposes
Strengthen the scientific and technological human resources of An Act Strengthening the Balik Scientist Program the academe, public institutions, and domestic corporations, and Appropriating Funds Thereof through the promotion of knowledge sharing and accelerate the flow of new technologies into the country.
Legislate a Philippine Space Development and Utilization
An Act Creating the Philippine Space Agency Policy and create a Philippine Space Agency tasked with
providing the country’s space technology-related needs, from weather imaging to telecommunications.
Legislate an independent regulatory framework that will decide on issues affecting public health and safety, protection of the environment and nuclear security and safeguards, beyond the
An Act Providing for a Comprehensive Nuclear reach of entities with self-motivated interests. The resolution of
Regulation, Creating for the Purpose the issues within an autonomous regulatory structure will generate
Philippine Nuclear Regulatory Commission a higher level of trust and confidence in the application of
(PNRC), and Appropriating Funds Therefor nuclear technologies. The PNRC shall exercise authority over
all aspects of safety, security involving nuclear materials and other radioactive materials, facilities and radiation generating equipment.
Ensuring Sound Macroeconomic Policy
A sound, stable, and supportive macroeconomic environment is essential for expanding economic opportunities and fostering sustained growth. A fiscal sector that is responsible, strategic, and supportive of inclusive growth can boost the economy and provide a stable environment that is conducive to investments. Monetary policy that ensures price stability with a stable and inclusive financial sector can support growth and improve access to economic opportunities. A strategic external trade policy regime enables Philippine enterprises to successfully compete in global markets and provide employment opportunities for Filipinos.
Assessment and Challenges
A slowdown in international trade will likely persist given the subdued global economic outlook. As discussed in Chapter 2, the global economy is seen to remain weak, with average growth rising only slightly from 3.2 percent in 2008-2015 to 3.6 percent in 2017-2021. Consequently, global export volume growth is expected to improve only slightly from 3.0 percent in 2008-2015 to an average of 3.9 percent in 2017-2021.
There is a growing trend toward inward-looking policies and protectionism. Such a trend may make it difficult to engage in preferential or multilateral trade agreements and to expand market access. It also poses a challenge to established international trade rules.
Intensification of competition in the global market heightens the difficulties faced by the sector.Given the above trends, Philippine firms are likely to face stiffer competition both in international and domestic markets. While targets for Philippine exports have been met, the country’s competitiveness remains impeded by the high cost of doing business due to various factors including inadequate infrastructure and high electricity costs. Reforms are yet to be fully implemented, including streamlining of export and import procedures and other trade facilitation measures. Opportunities from existing bilateral and regional trade agreements were not fully utilized. The potential of services to drive growth and upgrade the economy remained limited due to various laws, rules, and regulations that govern the sector. Restrictions on foreign equity participation in certain sectors,coupled with burdensome regulatory or licensing requirements and procedures, constrained trade and investments. Keeping up with technological developments and changing demand structures also presents a challenge.
Rising global uncertainties will have an implication on the borrowing costs of the country.The Philippines enjoyed declining borrowing costs over the last six years as its credit rating improved to investment grade for the first time.This was triggered by its improved fiscal position and strong external position. From 2010 to 2015, its revenue effort increased from 13.4 to 15.8 percent, tax effort improved from 12.2 to 13.6 percent, the ratio of debt to gross domestic product (GDP) declined from 52.4 to 44.8 percent, and the share of interest payments in disbursements fell from 19.3 to 13.9 percent. Over the same period, it sustained a current account surplus averaging at 3.3 percent of GDP, while gross international reserves rose from USD62.4 billion to USD80.7 billion, as receipts from trade-in-services increased and remittances from overseas Filipinos (OFs) remained robust.
However, over the medium term, the shift in expectations about the future path of interest rates in the US (see also Chapter 2)will likely result in volatility in capital flows and the exchange rate, as well as affect international and domestic borrowing costs.
Higher investments in infrastructure, social services, and innovation will require more fiscal space. Improvements in the fiscal position over the last six years allowed primary expenditures to increase from 13.6 percent of GDP in 2010 to 14.4 percent in 2015, although targets were still not met. Social and economic sector allocations increased annually by an average of 16.3 and 13.2 percent, respectively, for the period 2010-2015. In particular, government infrastructure outlays grew by 28.4 percent on average over the same period. The ratio of government infrastructure outlay to GDP grew from 1.8 percent in 2010 to 4.3 percent in 2015.
Over the next six years, primary spending is seen to rise further to 18.8 percent of GDP by 2022. For instance, spending on infrastructure is expected to increase further to 7.4 percent of GDP by 2022 (see also Chapter 19). Spending on R&D is also planned to increase from 0.14
of GDP in 2013 to 0.50 percent of GDP (see also Chapter 14).Meanwhile, the total social expenditure gap is estimated to be equal to about 3.0 to 4.0 percent of GDP.
The tax system is inequitable, complex, and inefficient. The current tax system has inherent deficiencies that lead to revenue erosion and large scale leakages. These include nonindexation, a large number of special treatment and exemptions, and barriers that hinder tax administration, such as bank secrecy laws.
The absorptive capacities of national government agencies need improvement. While improvements in the fiscal space allowed for significant increases in budgetary resources for priority sectors, government agencies struggled to fully utilize such resources. The ratio of actual disbursements to the programed disbursements fell from an average of 96.4 percent in 2004-2009 to 91.7 percent in 2010-2015. Among the factors that affected budget utilization were weaknesses in project design and preparation, procurement difficulties, and implementation bottlenecks arising from structural weaknesses and capacity constraints of line agencies.
Overall, local government units (LGUs) remain dependent on the internal revenue allotment (IRA). On average, LGUs depend on IRAs for 61.5 percent of their income as many LGUs have not fully maximized their own revenue-raising powers under the Local Government Code. In urban and high income class LGUs, local revenues already provide a sizeable share of the total income, and in metro cities, they account for 70 percent on average. However, in low income class LGUs, dependence on IRA reaches up to 99 percent, given the low economic development and limited local resource mobilization capacity.
Other sources of fiscal risks remain. Theseinclude contingent liabilities associated with public-private partnerships and government owned or controlled corporation (GOCC) guaranteed liabilities. They will have a bearing on the fiscal position of the national government once the contingent liabilities materialize.
Despite widening networks, there are persistent geographical, human, institutional, and infrastructure-related barriers on access to financial services. RA 10693 (Microfinance Nongovernment Organizations [NGOs] Act) and the Microfinance NGO Regulatory Council reinforced government support in providing microfinance products and services for the poor. Over the last six years, the number of access points has increased to 9.4 per 10,000 adults in 2015, banks’ microfinance portfolio reached PHP11.3 billion, the cooperative sector deposits reached PHP86.2 billion, and insurance penetrationreached 1.8 percent of GDP. However, access remains limited, with only 30 percent of Filipinos having access to micro-insurance services for instance and insurance penetration below the average in ASEAN (3.3 % in 2014), in emerging markets (2.7 %), and in the world (6.2 %).An archipelagic landscape leads to spatial obstacles and market segmentation. Human barriers include limited knowledge and capability of households, while institutional constraints come in the form of cost to avail of banking services and distance of the bank, to name a few.Incomplete financial infrastructure also hinders access to available financial products and services.
Growing complexity across financial transactions is a risk to financial stability. Recent global financial market developments showed that financial stability is closely linked to monetary policy. Over the last six years, the banking system remained strong and stable as indicated by the steady growth in assets, loans, deposits, and capital accounts of banks. The banking system also maintained sufficient liquidity and adequate capitalization, and it remained profitable. Parallel to this, the national savings ratio increased. However, Philippine financial markets remain relatively shallow compared with that of its regional peers. Moreover, the growing complexity of financial transactions can lead to instability. Mitigating this risk requires granular data and regular exchange of information among local regulators across jurisdictions.
A strategic trade and fiscal policy along with macroeconomic stability will support the societal goals of reducing inequality and increasing potential growth. Three outcomes are expected: (a) a responsible, strategic and supportive fiscal sector; (b) a resilient and inclusive monetary and financial sector; and (c) a strategic external trade policy regime.
For 2017-2022, indicators have been identified and targets have been set to monitor the attainment of the sub-sector outcomes of responsible, strategic, and supportive fiscal sector, resilient and inclusive monetary and financial sectors, and strategic external trade policy, as outlined in Table 15.1.
Table 15.1 Plan Targets to Sustain a Sound, Stable, and Supportive Macroeconomic Environment, 2017-2022
END OF PLAN TARGET
Subsector Outcome 1: Responsible, strategic and supportive fiscal sector
Government revenue-to-GDP ratio (in %)1/
Tax revenue to GDP ratio (in %)1/
Primary expenditure to GDP ratio (in %) 1/
Percentage share of interest payments in the total disbursements (in %)1/
Ratio of discretionary spending to total budget (in %)2/
NG fiscal deficit to GDP ratio (in %)1/
Outstanding NG debt stock as a share of GDP (in %)1/
Investment grade credit rating
as of Oct 2016
as of May 2016
as of Sep 2016
Fitch - BBB-
S&P - BBB/A-
sustain or improve IG credit rating
Local source of LGU income share in total current operating income (in %)
Subsector Outcome 2: Resilient and inclusive monetary and financial sectors
Inflation rate (in %)
Financial system's total assets (growth rate in %)
as of Nov 2016
Gross National Saving to GDP ratio (in %)
as of Q3 2016
Number of deposit accounts
as of Q2 2016
Microfinance services delivery 3/
as of Sept 2016
PHP 12.1 billion
Number of access points per 10,000 adults 4/
as of Sept 2016
Percentage of adults with formal account (as a share to total adult population)
Remittance costs as a proportion of the amount remitted 5/
as of Q4 2016
Microinsurance penetration (as % of total population)
Subsector Outcome 2: Strategic external trade policy regime
Merchandise exports (in USD billion)6/ Jan-Sep 2016
61 to 62.2
Services exports (in USD billion)6/ Jan-Sep 2016
61 to 68.6
Current account balance to GDP ratio7/ Jan-Sep 2016
| || || || || |
* Headline inflation targets are only until 2020. Figures for 2021 and 2022 are inflation assumptions.
1/ 2017 Targets are based on the 2017 Budget of Expenditures and Sources of Financing while 2018-2022 are based on the 169th DBCC approved levels on December 20, 2016.
2/ Obligation basis
3/ This data refers to microfinance services delivery by the banking sector. Data from the cooperative and microfinance NGO sectors are not yet included. No numerical target but value should be increasing over time. 4/ This includes deposit accounts and e-money accounts. There is no numerical target but the percentage should be increasing over time. The BSP will monitor improvements based on results of a biennial demand-side survey.
5/ Proxy indicator: cost (in %) of sending USD200 from the United States to the Philippines.
6/ Baseline figures for goods and services exports are based on BOP (BPM6) data. Figures for 2017 – 2022 were estimated based on annualized 2016 BPM6 levels and latest DBCC assumptions on growth rates for exports of goods and services approved on 20 December 2016
7/ Medium term projections as approved by the Monetary Board on 23 December 2016
To attain a responsible, strategic, and supportive fiscal sector; a resilient and inclusive monetary and financial sector; and a strategic external trade policy regime, the strategies as outlined in Figure 15.1will be implemented.
Figure 15.1 Strategic Framework to Sustain a Sound, Stable and Supportive Macroeconomic Environment, 2017-2022
Sector Outcome 1: Responsible, strategic, and supportive fiscal sector
Improve revenues through reforms in tax policy and administration.The proposed tax policy reformshifts to a simpler, fairer, and more efficient tax system characterized by lower rates and a broader base. This is expected to correct both horizontal and vertical inequities in the system. Based on international experience, tax policy reform will be successful only if it is accompanied by tax administration reforms. Beyond revenue generation, tax reform should also help promote investments, create jobs, and lift people out of poverty.
Key reforms in the BIR include process and forms simplification for small taxpayers, electronic data sharing to improve compliance, taxpayer bill of rights, and relaxation of bank secrecy for fraud cases. These reforms are expected to improve taxpayer satisfaction, reduce cost of compliance in paying taxes, and result in public trust.
Meanwhile, the BOC will implement an aggressive anti-smuggling campaign in order to expand revenues. The campaign will be supported by tighter enforcement in free trade zones, fuel marking, and reconciliation of trade data with partner countries.
To increase local sources of LGU revenue, institute legislated and non-legislated measures..LGUs need to maximize the revenue-raising powers granted to them by the Local Government Code. Among the potential measures are: (a) professionalization of local treasurers through the Standardized Examination and Assessment for Local Treasury Service Program; (b) updating key local finance manuals to take into account developments in local finance; (c) intensifying LGU fiscal monitoring and performance evaluation through standardized reporting tools and metrics; (d) establishing the idle land inventory and imposing the idle land tax in all LGUs; and (e) enjoining LGUs to comply with LGC requirements concerning local revenue base.
Encourage the private sector to engage in public-private partnership schemes.This will free up the fiscal space so that government resources can be used for other public goods and services.
Increase budget share of social and infrastructure sectors. From an average share of 33 percent in the national budget in the past six-years from 2010 to 2015, developmental expenditures are targeted to reach 50.1 percent by 2022 to fund programs and projects crucial to sustaining inclusive growth. This will be made possible through (a) more prudent expenditure; (b) sustainable debt liability management strategies; and (c) government bureaucracy rightsizing to ensure more efficient and effective operations.
Formulate and implement expenditure management reforms.Several measures will be put in place to improve agency budget utilization and address underspending. These include: (a) strengthening the linkage between planning and budgeting; (b) capacity building for line agencies and other stakeholders; (c) streamlining the release of funds and development of integrated and user-friendly financial management system; (d) strengthening project monitoring through modern technology such as integrated systems, geotagging and mapping; and (e) developing a codex for the consistent and efficient application of the Commission on Audit Rules.
Enhance debt management through the Medium-Term Debt Strategy. This entails a proactive stance in the management of the debt portfolio and adoption of a borrowing mix program. It likewise requires reforms that: (a) boost liquidity and trading activity through debt consolidation, reissuance and reduction of outstanding securities; (b) reduce friction cost of investing in domestic government securities; (c) formulate an annual issuance program to maintain benchmark securities that will represent the domestic yield curve; (d) establish a Repo (Repurchase Agreement) Program for domestic securities to support the secondary market; and (e) establish a Primary Dealer Program that will set the rights, privileges and role of government securities dealers in market making.
Furthermore, government will push for amendments to the BOT Law, with the objective of improving the process of project appraisal, contract management, and management of contingent liabilities. Policies concerning re-financing, public consultation and trust liability accounts will be studied. The government will also streamline the data reporting process and provide comprehensive data through the Government Debt Recording and Monitoring System, which will help in the analysis of GOCC debt, better manage government financial exposure, and inform strategy formulation.
Sector Outcome 2: Resilient and inclusive monetary and financial sectors
Maintain a flexible inflation targeting framework through the interest rate corridor (IRC) system.As part of the initiatives to strengthen the framework for monetary policy implementation, the IRC system was launched in June 2016.To sustain the reform momentum, current policies and programs will be continued. The government will be vigilant to ensure that the inflation environment remains suitable and consistent with the evolving domestic price dynamics and sustained economic growth objectives.
Maintain a market-determined exchange rate and sufficient international reserves to better insulate the economy from external shocks that could disrupt the pace of economic growth. Measures to reduce the volatility of capital flows will be studied.
Pursue regional and international cooperation to prevent and manage future financial crisis.This will also boost the capability of the BSP to undertake quality economic surveillance that will contribute to informed formulation of monetary policies.
Promote financial stability through micro-macro prudential measures. Pre-emptive prudential measures seek to moderate credit and asset price booms. Such measures complement traditional monetary and financial policies. Since financial stability is a mutual concern among regulators, the creation of the Financial Stability Coordination Council allows different agencies to take a more comprehensive view of the financial system. Simultaneously, the government will continue to establish an enabling policy and regulatory environment that supports financial stability objectives.
Foster capital market development through the promotion of efficiency in trading, settlement and delivery of securities. Thedomestic capital market will be broadened and deepened to serve as an alternative stable funding source for financing infrastructure and other long-term needs. Securing the reliability, quality, and integrity of pricing and valuation of financial instruments will be pursued in collaboration with the private sector. Complementing these initiatives is the establishment of an integrated financial market infrastructure, which is considered as a key component of the financial system.
Strengthen the effectiveness of financial inclusion initiatives by focusing on the efficient delivery of microfinance and micro-insurance products and services for Filipinos including those who live abroad.These initiatives will include various economic and financial literacy activities that will encourage Filipinos to participate in economic governance and harness the investment potential of OF remittances toward innovative financial instruments such as personal equity and retirement funds or insurance products. These will be complemented by the creation of mechanisms that will cater to the Filipinos’ financial needs.
Encourage efficiency and innovation in microfinance and micro-insurance for the domestic market.Microfinance services such as credit access of micro, small, and medium enterprises (MSMEs) will be broadened. For microcredit to reach its full potential, credit bureaus and movable collateral registries will be developed and strengthened. On micro-insurance, innovative products will likewise be explored outside the existing micro-health and pre-need services. Private insurance providers will be encouraged to engage in the delivery of microinsurance for agriculture.
Develop the legal infrastructure for Islamic finance. The legal infrastructure will provide an enabling environment that accommodates and facilitates the development of Islamic finance products such as ‘sukuk’or Islamic bonds; a clear and efficient system that preserves the enforceability of Islamic financial contracts; anda credible and reliable forum for the settlement of legal disputes arising from Islamic finance transactions.
Sector Outcome 3: Strategic external trade policy regime
The government will focus on providing support and promoting products where the country has comparative advantage and has the potential for competitive advantage. External trade policy will support backward and forward linkages to both the domestic and international markets, spur the production of higher value-added goods and services, diversify products and markets, as well as provide opportunities for the growth of enterprises.
Expand market access and diversify export products and markets
Pursue strategic trade partnerships and maximize opportunities in bilateral, regional and global integration.These will also be used as platforms to expand market access and diversify products and markets. Advocacy and capacity-building programs to encourage businesses, especially MSMEs, to maximize export opportunities and increase the utilization of preferential trading agreements will be continued. Support programs to enable MSME exporters to graduate to higher levels will also be put in place. Comprehensive support packages will also be provided to priority sectors with comparative advantage.
Intensify marketing and promotion of Philippine goods and services and increase market intelligence.The Philippines will be promoted as a producer of high-quality goods and services to increase its presence in the international market. Promotion and marketing activities will include sustained brand awareness campaign programs, partnerships to promote Philippine-made products, and social media campaigns,among others.
Intensify market intelligence.This will entail strengthening the coordination among government and other relevant entities to help identify the opportunities, threats, and changes in demand structure that that may affect export performance. In addition, an integrated database between the Philippine Statistics Authority and the Bureau of Customs
(BOC) will be established for real-time assessment of trade flows. Exporters will be allowed to access information so that they can readily respond to market changes. Linkage between other government and private agencies with access to trade transactions as recognized by the BOC and investment promotion agencies will also be strengthened.
Explore new markets for Philippine exports.Maximize opportunities in Asia and link with emerging markets, which are expected to grow over the long-term.
Increase the competitiveness of Philippine exports
Minimize the cost of production and delivery of goods and services through reforms.Continueefforts to ease the cost of doing business in the local and national government. Likewise, implement programs and projects designed to cushion the impact of sharp foreign exchange adjustments on exporters. These may include the BSP’s Rediscounting Facility, hedging products, and market-based foreign exchange regulations, among others.
Improve the quality of goods and services by adopting best practices and successful business models in production processes.These will improve efficiency and raise the value of products and services. Enforcement activities should be strengthened to prevent the proliferation of substandard products. Laws, rules, and regulations will be reviewed with a view to adopting international standards.
Encourage and support innovationin the country’s export-oriented industries through investments.Innovation enhances the capacity of exporters to catch up with higher levels of technology, meet international quality standards and product specifications, boost productivity, and facilitate the production of higher-value added products. Focus areas include: (a) research and development for agricultural products and services with high demand in the world market; (b) miniaturization, robotics, and digitalization of new products and services; (c) state-of-the-art disaster and climate-resilient technologies; and (d) quality packaging that uses locally-sourced materials.
Develop human resources and improve institutional structures.Prioritize continued trainingfor the skillsneeded for higher value servicesto be able to diversify exports. Build the capacity of Philippine negotiators to assess and formulate Philippine positions and explore the possibility of establishing a body similar to trade representative offices in other countries. This body will coordinate Philippine positions and negotiate bilateral, regional and multilateral arrangements.
Enhance resiliency to disaster and climate change impact. This will be done by developing policies that ensure business continuity and mitigate risks to businesses or enterprises during disasters.
Enhance trade facilitation and strengthen linkages and connectivity
Review and implement laws, rules and regulations to reduce the cost to exporters and importers as well as facilitate and streamline procedures for engaging in trade.The full and effective implementation of RA 10668 (Foreign Ships Co-Loading Act) and RA 10863 (Customs Modernization and Tariff Act) will be pursued. Programs and initiatives under the WTO, Asia-Pacific Economic Cooperation, and the Association of Southeast Asian Nations (ASEAN), including its growth areas such as BIMP-EAGA, that aim to improve customs procedures and facilitate trade will be supported. Initiatives to reduce the time to undertake trade transactions, such as the Business Process Inter-operability, will be implemented to provide full exchange of information. The government will continue moving toward a trade facilitative Rules of Origin regime, such as the use of selfcertification in ASEAN.
Foster forward and backward linkages across sectors through the value chain approach.Exporters will be connected with multinational corporations and suppliers through business matching, trade fairs, and networking initiatives, among others. MSMEs will be promoted either as a supplier or service provider to foreign investors during investment and trade promotion events and as possible technology partners through technology license agreements.
Provide adequate infrastructure and logistical support to achieve connectivity, ensure efficient flow of goods and services domestically and internationally, and lower the cost of production and delivery.Formulate both the transport and logistics network plan and information and communication technology plan. These will complement the efforts to link the sectors with more markets and improve their competitiveness.
To strengthen the effectiveness of the strategies, legislative action is needed in the following.
Table 15.2 Legislative Agenda to Sustain a Sound, Stable and Supportive Macroeconomic Environment, 2017-2022
Tax Reform Program
Amend sections of the National Internal Revenue Code of 1997 to achieve a simpler, fairer, and efficient tax system.
Institutionalize the Extractive Industry Transparency Initiative
Improve transparency in revenue payments and sharing in the mining, oil and gas industries.
Unified Pension Reform Bill
Arrest the large and unsustainable fiscal impact of the ballooning pension requirements of the military and uniformed personnel.
Government Rightsizing Bill
Promote effectiveness and efficiency in government operations to ensure the quality of public service that is responsive to the changing needs of the population.
Budget Reform Bill
Institutionalize good PFM practices which include: a) shift to cashbased budgeting from the current obligation basis; b) reducing the validity of appropriations to one year from the current two years, etc.
Real Property Valuation and Assessment Reform Act
Institute reforms in real property valuation and assessment in the Philippines.
LGU Income Classification Bill
Institute the income classification of provinces, cities and municipalities, and for other Purposes.
LGU Property Insurance Bill
Amend RA 656 (Property Insurance Law) to make it mandatory for all LGUs to insure its properties (e.g., buildings, roads, bridges, plants, machineries and equipment).
Amendment of the Local Government Code of 1991
Amend (a) expenditure assignment; (b) revenue assignment and LGU taxing powers; (c) inter-governmental fiscal transfer; (d) credit financing for LGUs; (e) inter-LGU cooperation through alliances; (f) creation of new LGUs; and (g) local fiscal administration
Financial and Monetary Sector
LEGISLATIVE AGENDA RATIONALE
Proposed amendments to the BSP Expand and improve the operations of the Bangko Sentral ng
Promote the digitization and interoperability among payment
Enactment of the Payment Systems Act systems, including the supervisory oversight of the BSP.
Amendment of the Anti-Money Laundering Expand its organizations and transactions coverage, including
Act granting additional powers.
Strengthen the Al-Amanah Bank and promote the establishment of
Enactment of Islamic Banking other Islamic banks and engagement in Islamic banking arrangements under the supervision and regulation of the BSP.
Amendment to the provisions of RA 1405
Exempt government officials and employees, whether elected or
(Law on Secrecy of Bank Deposits) and RA appointed, from the coverage of the Bank Secrecy Law. 6426 (Foreign Currency Deposit Act)
Pursue a national identification system for the effective delivery of
Filipino Identification System Act government services.
Establish a comprehensive legal framework on lending
Secured Transactions Bill transactions involving personal property as collateral.
Enactment of the Collective Investment Anticipate participation of middle to low-income individuals in CIS
Schemes Law opportunities.
External Trade Sector
Key legislative measures that will promote and support the sector will be supported, including those that streamline export and import procedures and reduce import and licensing fees, as well as the related legislation listed in Chapter 9.
Leveling the Playing Field through a National Competition Policy
Competition makes markets perform better and promotes inclusive economic growth. It induces producers to reduce costs, innovate, and widen the range of goods and services available to consumers. It allows a level playing field where small entrepreneurs and firms, besides larger players, may operate and grow. In the process, competition raises productivity, expands economic opportunities, increases people’s real incomes, and improves overall welfare. Competition especially benefits the poor through job creation made possible by the entry, growth, and expansion of efficient firms; and through lower prices that result from greater variety and higher quality of goods and services.
Market competition does not operate in a vacuum. Its beneficial results depend on the prevailing environment. Experience has shown that competition may also lead to suboptimal results, especially in cases where private and social interests diverge.When competition intensifies, in the short term, less efficient firms are forced out of the industry, or firms may resort to anti-competitive or deceitful conduct. Socially beneficial competition is also hindered when sellers can exploit consumers’ imperfect information and human frailties.
On the other hand, socially beneficial competition ensues when the right incentives are generated “for firms to improve their economic performance vis-à-vis their actual and potential rivals and in so doing deliver the best outcomes for their consumers and society as a whole.”Such is the basic rationale for a competition policy.
The Philippine Development Plan (PDP) 2017-2022 seeks to enhance market competition by fostering an environment that penalizes anti-competitive practices, facilitates entry of players, and supports regulatory reforms to stimulate investments and innovation.
The enactment of Republic Act (RA) No. 10667 or the Philippine Competition Act (PCA) on July 21, 2015 reinforces the efforts of the government to sustain inclusive economic growth. The PCA provides for the formulation of a National Competition Policy (NCP) that aims to steer regulations and administrative procedures of government agencies toward promoting competition, as well as to strengthen the enforcement of anti-trust laws and effectively ensure competitive neutrality. The PCA specifically provides for the creation of the Philippine Competition Commission (PCC) which will conduct inquiries, investigate, hear, and decide on cases involving anticompetitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions (M&As).
Competition law and the corresponding mechanism to enforce it is an essential component of a national competition policy. In formulating the NCP, the other equally essential components, such as policies relating to competitive neutrality, consumer protection, government regulations that do not impede competition, and removal of structural barriers are established, and that an effective institutional mechanism to coordinate and oversee the implementation these inter-related components is put in place.
Assessment and Challenges
This section provides a general assessment of the Philippines’ standing relative to other countries and identifies the challenges that need to be addressed.
Despite the passage of the PCA, there are other laws and issuances that hinder competition.There are a number of government agencies with legislative charters that have dual regulatory and proprietary functions. Examples are the Philippine Coconut Administration and Philippine Ports Authority. The lack of separation between the dual functions of these agencies may result in conflicts of interest and may have unintended negative impact on market outcomes.
Fragmented government regulatory functions also pose threats to competition. Often, regulatory agencies with related or similar functions over certain commodities operate in silos. This situation is aggravated by the decentralization of many regulatory functions to local government units by virtue of RA 7160, also known as the Local Government Code of 1991.
The country’s competition environment remains weak.The country has started laying the groundwork for promoting competition and achieved the following accomplishments under the Philippine Development Plan 2011-2016: (a) creation of the Office for Competition (OFC) in 2011 under the Department of Justice (DOJ); (b) enactment of the PCA in 2015; (c) modernization of the Tariff and Customs Administration in 2016; (d) allowing the full entry of foreign banks in the Philippines in 2014; (e) amendment of the Cabotage Law in 2015;, and (f) ongoing conduct of Project Repeal.
As these are relatively recent reforms, findings from the Global Competitiveness Index (GCI) for 2016 to 2017 show the need to further improve business dynamism, product market efficiency, and market size.
Table 16.1 GCI Rankings of Nine ASEAN Member States
PRODUCT MARKET EFFICIENCY
Product Market Regulation (PMR) by the World Bank Group and the Organisation for
Economic Co-operation and Development (OECD) puts the country at the bottom 40 percent.The country’s PMR score indicates a restrictive regulatory environment for competition largely due to high barriers to trade and investment, barriers to entrepreneurship, and state control. The Philippines appears to be worse than income comparators such as Colombia and South Africa.
The full enforcement of the PCA helps ensure a level playing field among firms, but there are challenges.Among these are: (a) achieving the right balance between efficiency of firms and market competition; and (b) ensuring government-owned and controlled corporations (GOCCs) and private firms compete on equal terms in the provision of goods and services.
For instance, in the banking sector, merger or consolidation of banks improves the stability of the financial system. It results in fewer but larger players. The case of a firm that buys out its only rival allows it to achieve a greater scale in production at a lower per unit cost. However, this situation benefits consumers only if the cost-savings lead to lower prices, better quality of products, or increased innovation. The merged or consolidated firm may not have ample incentives to do these unless properly regulated.
Preferential treatment by the government of GOCCs likewise poses risks because the practice is not compatible with the promotion of market competition. There is a need to ensure that GOCCs and private firms compete on equal terms.Currently, GOCCs enjoy tax exemptions and other incentives. As such, measures must be made to ensure that they are not given undue advantage when they directly or indirectly compete with firms in the provision of goods and services.
Government actions, while addressing important social objectives, potentially create market distortions by limiting the entry and expansion of current players and by protecting vested interests. These actions include: (a) government-owned monopolies; (b) government-authorized private monopolies; (c) government control of entry and expansion of market players; and (d) government provision of goods and services similar to those provided by private entities.
The existence of government-owned monopolies may be justified by the absence of private firms that could provide the necessary goods and services. However, if potential private providers are willing to enter the market, government action that precludes entry may be difficult to justify.
As for government-authorized private monopolies, the government could either create a GOCC to supply the good (a government-owned monopoly) or offer tax and market incentives to a private player (a government-authorized monopoly) to enter the undeveloped market and propel the capacity building stage. In the latter case, government grants a firm the legal authority to operate as a monopoly through either a legislative franchise, or an administrative franchise. These are common in electricity transmission, water distribution systems, and build-andoperate arrangements for transport facilities, including road services, railway, air and sea transport.
In some cases, government also controls the entry and expansion of market players, hence causing prospective players to face non-economic and regulatory barriers to entry. There are constitutional and statutory provisions that limit foreign equity (e.g., mass media) and the practice of professions by foreigners. While other societal goals underpin these restrictions, they preclude the Philippines from fully taking advantage of global and regional capital and labor mobility such as those promoted under the ASEAN Economic Community Blueprint.
Other government regulatory barriers that either distort incentives or limit the full participation of local players in the market include regulation of retail rates charged by distribution utilities for the supply of electricity. This affects the incentives faced by generators, electricity distributors, and retailers. The Philippines still has one of the highest electricity rates in Asia (see Chapter 19).
The importation of rice and sugar is also controlled through licensing powers held by the National Food Authority (NFA) and the Sugar Regulatory Administration (SRA).
The participation of government in providing goods and services similar to private entities also limits competition.Normally, government participation can be justified only if the private sector cannot provide the goods and services. For example, the government renders health services also supplied by private hospitals, and government educational institutions offer services similar to those provided by private schools. Likewise, government-owned banks, such as the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) provide financial services similar to commercial banks.
There are laws and regulations that potentially render undue disadvantage to some firms within the same sector. These undue disadvantages include incentives to enterprises located in special zones in order to attract foreign investment, differential tax treatments between renewable and non-renewable sources of energy, and a wedge in taxation between domestic and foreign shipping vessels. Also, a few government regulations could inadvertently facilitate collusion among competing firms.
Geographic fragmentation can create natural barriers to competition, limiting the entry of players or allowing the creation of artificial markets. In the cement industry, for instance, transport cost represents a significant share of delivered cost from producer to market. Likewise, the absence of interconnection in the power grids of Luzon, Visayas, and Mindanao precludes the shifting of supply to high demand areas and potentially lowering the cost of power.
The NCP needs to be formulated and implemented in order to improve consumer welfare and market efficiency. This addresses two societal goals: reducing inequality and increasing potential growth. Competition will create a level playing field for MSMEs by removing barriers to entry and reducing costs so that they can actively participate in the market. It will likewise facilitate innovation and promote efficiency, thereby expanding economic opportunities and promoting economic growth. This will be done through: (a) diminishing anti-competitive practices; (b) reducing barriers to entry; and (c) reducing limits to entrepreneurship to allow micro, small and medium enterprises to thrive.
In leveling the playing field, the NCP aims to improve market efficiency and consumer welfare. The target will rely on the GCI ranking of the Philippines. From the country’s ranking in 2016 at the top 40 among the 138 economies assessed, the midterm (2019) target is to be in the topthird (33%), and an end of plan target to be within the top 25 percent of all economies. Table 16.2 presents the targets, including those relating to intermediate outcomes.
Table 16.2 Plan Targets to Level the Playing Field, 2017-2022
END OF PLAN
Outcome 1: Consumer welfare improved
Market efficiency improved
Global Competitiveness Index (GCI) ranking improved
Intermediate Outcome 1:Anti-competitive practices diminished
Intermediate Outcome 2:
Barriers to entry reduced
Intermediate Outcome 3:
Limits to entrepreneurship reduced
Business dynamism improved
Product market efficiency improved
Market size expanded
Product Market Regulation (PMR) improved
To be determined
To be determined
Regulatory compliance costs incurred by firms reduced
To be determined
To be determined
The following are the strategies to achieve the outcomes and the corresponding targets. Given limited resources, a system of prioritizing strategies will be laid out based on spillover effects to other markets, contribution to a regulatory environment that is conducive to competition, and the feasibility of reform.
Figure 16.1 Strategic Framework for Leveling the Playing Field, 2017-2022
Review potentially anti-competitive legislations and policies that may substantially prevent, restrict, or lessen competition.It is important to examine government policy actions and determine whether they fulfill their intended objectives. Policy options available are to retainthe existing government market intervention if there is sufficient public benefit that outweighs its negative effects, notwithstanding its impact on market competition; recalibratethe intensity or form of the government market intervention, if such form has limited effectiveness or public benefit; replaceor modify the intervention if there are better, more effective alternatives available that address the same social ends without the uncompetitive by-product; remove the government intervention if the market structure is sufficient to ensure market competition; or conduct further reviewwhen additional data needs to be obtained, additional research needs to be undertaken, or additional discussions need to be made among stakeholders in order to reach a consensus.
The OFC will be reorganized and restructured in view of the enactment of the PCA and the establishment of the PCC.
The scope of Project Repeal will also be expanded. Repealing unnecessary regulations will reduce barriers to entry and stimulate more competition. Restrictions on competition will be kept only if they are consistent with public interest.
A review of the mandate, quality of services, and specific markets of GOCCs will also be continued to ensure that their proprietary activities do not conflict with their regulatory functions, and that procedures are streamlined.
Analyze competition issues in priority sectors.In addressing market competition issues, government will prioritize sectors where the largest impact on consumer welfare and market efficiency is expected. Specific sectors will be identified after a comprehensive market scoping is completed. In selecting priority sectors, the government will consider improvement in the variety and quality of goods and services that are essential to poverty reduction, generation of new livelihood and employment opportunities, spillover effects on other sectors in the economy, and indications of lack of competition.
In agriculture, market competition in key inputs to production (e.g., fertilizer, seeds) will be reviewed. If enhanced, market competition effectively widens the range of options available to producers and lowers the cost of inputs, and even small farmers have much to gain.
There is also a need to review government programs that distort market competition for land and that potentially affect small farmers’ access to credit and preclude their ability to benefit from economies of scale.
In the industry sector, lack of competition may be due to limited market, limited access to raw materials, high cost of research and development, monopolies created by patent protection, and the tendency to perceive price as a sign of quality. The market studies to be conducted will identify important competition issues in different industry subsectors and recommend measures to encourage market competition. See also Chapter 9.
Since the Philippine economy is to a great extent open, the industry sector, particularly manufacturing, is already subject to global market discipline through imports of goods. This means that abuse of market power through high prices is curbed directly by the importation of raw materials, and intermediate or final goods. However, this may not happen if importation is heavily controlled through quantitative restrictions or import permits.
In the services sector, the tradable goods sector's performance (including manufacturing and agriculture) relies heavily on the competition environment in services that feed into it. These ancillary services include power generation, electricity distribution, transportation (air, land, and water), telecommunications, and human capital. If the services sector is inefficient, the tradable goods sector (especially manufacturing) will suffer. Hence, enhancing competition in services, especially telecommunications and power, will be prioritized. See also Chapter 9.
Research outputs will inform legislation and policymaking, and support advocacy initiatives to make consumers, firms, and government agencies better understand the importance of market competition.
Investigate conduct and agreements that may substantially prevent, restrict, or lessen competition.The enforcement of the PCA requires the investigation of potentially anticompetitive behavior while maintaining an environment where businesses can compete on a level playing field.
The impact of the actions of firms on market efficiency, competition, and consumer welfare will be quantified. This information will be useful to the public as well as policymakers in understanding the seriousness of the competition problems in certain sectors and of the benefits that could be derived from inhibiting anti-competitive practices.
Promote competition-related policies and best practices.The promotion of market competition is a cross-cutting concern that affects all consumers and producers regardless of size. Fostering a culture of strong competition in the country requires concerted efforts among relevant government agencies and other sector regulators, with support from the executive, legislative and judiciary branches. Government will also collaborate with development partners and competition authorities from other jurisdictions. Activities will be conducted to help consumers better comprehend the terms of services offered by firms.
Conduct capacity-building activities for government agencies and other institutions.The government recognizes the importance of strengthening both institutional as well as individual capacities and creating a knowledge base for the effective implementation of the PCA. Considering that competition policy is a relatively new concept in the Philippines, the government will ensure that capacity-building efforts within its ranks are enhanced and that any gaps and needs are addressed immediately. There will be sustained support to improve the institutional and technical capacity of PCC as well as the other government units under the executive, legislative, and judicial departments that are mandated to promote market competition. Government will collaborate with academic and research institutions in strengthening programs on competition law and economics.
Institutionalize a mechanism for implementing the NCP.The government will uphold the principle of competitive neutralityand adopt policies that establish a level playing field where GOCCs and firms compete. The NCP will also provide guidelines for government agencies that issue rules and regulations that hamper competition.
A subsidiarity analysis on GOCCs, spearheaded by the Governance Commission for Government Owned and Controlled Corporations (GCG), will be done to determine actions that must be undertaken. The GCG is set to continue reviewing the mandate and performance of the other entities it oversees.
Meanwhile, a responsive regulatory management system will be institutionalized to monitor impact, ensure cohesiveness, and improve the quality and flexibility of government regulatory frameworks. A whole-of-government approach to regulatory reform will be implemented in reducing the burdens imposed by regulations, ensuring that no new anti-competitive laws and regulations are passed, and institutionalizing transparency in the regulatory management processes.
As the NCP will be comprehensive and will require a whole-of-government approach, an interagency mechanism to formulate and coordinate the implementation of the national policy will be instituted. Among others, the NEDA, DTI, PCC, DOJ, and GCG will be part of this oversight and coordinative mechanism.
Regulatory reforms will be pursued to complement the national competition policy. The government will work toward the enactment of the following legislation within the PDP 20172022 period.
Table 16.3 Legislative Agenda for Leveling the Playing Field
Amended Public Service Act
Ease or lift restrictions on foreign investments in certain industries by amending or repealing provisions that limit foreign participation in certain economic activities. Subsequently, this will amend the Foreign Investment Negative List to encourage foreign direct investments (FDI). Higher FDI boosts economic growth, fosters more competition, facilitates technology transfer, generates more jobs, and provides wider choices for consumers. See also Chapter 9.
Regulatory Management System Act
The government will push for the passage of a law on regulatory management system to establish a more competitive and coherent regulatory environment. A central body will be created to ensure that there is an evidence-based approach to formulating laws, rules, and regulations.
Additional items in the legislative agenda will be drawn following the review of potentially anti-competitive laws and policies that substantially prevent, restrict, or lessen competition.
Attaining Just and Lasting Peace
Economic growth cannot be sufficiently buoyant, sustained, nor inclusive without durable and enduring peace. Communities that experience armed conflict are frequently among the poorest in the country. Families that belong to these communities always need to be prepared for evacuation at a moment’s notice whenever fighting erupts. As a result, families are unable to build up assets, particularly immovable ones. Moreover, very few put up businesses not only because they fear for their safety but also because they cannot secure property rights. At the same time, schoolchildren in these areas are either forced to suspend or quit schooling, which leaves their learning stunted and options for the future limited.
In response, the government has been relentless in its pursuit of peace, through intensified development and other peace-building initiatives in conflict-affectedand vulnerablecommunities. While much has been achieved, so much more remains to be done.
Assessment and Challenges
There was a breakthrough in the peace talks with the Moro Islamic Liberation Front (MILF) but there was no enabling law to implement the peace agreement.In 2012, a year after the exploratory talks resumed, a breakthrough in the peace process was achieved with the signing of the Framework Agreement on the Bangsamoro (FAB) between the government of the Philippines (GPH) and MILF. This was subsequently followed by the signing of the Comprehensive Agreement on the Bangsamoro (CAB) in 2014, which proposed a comprehensive political settlement with two main thrusts: the passage of the Bangsamoro Basic Law (BBL) that will create the new Bangsamoro entity and replace the current Autonomous Region in Muslim Mindanao (ARMM), and the normalizationprocess in the Bangsamoro.
The proposed BBL went through deliberations in Congress and several public hearings. Unfortunately, the 16th Congress adjourned without enacting the bill. The setbacks encountered in the legislation of the proposed BBL remains a stumbling block in the implementation of the signed peace agreement with the MILF and in the achievement of lasting peace in Mindanao.
Nevertheless, as part of confidence-building measures, the government launched the Sajahatra Bangsamoro Program in 2013 to uplift the health, education, and livelihood of priority Bangsamoro communities and targeted individual beneficiaries through quick-gestation, highimpact, and social protection-type programs. Other commitments under the normalization process that were fulfilled include the submission and public release of the Transitional Justice and Reconciliation Commission’s comprehensive report to both negotiating panels. The report provided situationers and recommendations on correcting historical injustices, and addressing legitimate grievances, human rights violations and marginalization resulting from land dispossession in the Bangsamoro. In addition, the ceremonial turnover of 75 high-powered and crew-served weapons and decommissioning of 145 combatants, as part of the phase I of the decommissioning in the normalization process, and the provision of reintegration interventions were implemented.
Several issues on the implementation of the peace agreement with the Moro National Liberation Front (MNLF) remain pending. A fast-tracked review of the phase II of the 1996 Final Peace Agreement (FPA) was undertaken, which produced 42 consensus points that were translated into a draft amendatory bill. However, the draft bill was not submitted to Congress due to two outstanding issues on the establishment of the provisional government and the conduct of a plebiscite for the expansion of territory. The 42 consensus points and two remaining issues were then incorporated in the drafting of the BBL, which Congress was unable to enact. Nevertheless, both parties finally agreed to complete the Tripartite Review Process (TRP). The government will then focus on the implementation of its remaining commitments under the 1996 FPA.
A Bangsamoro convergence framework is needed. Intra-Bangsamoro convergence is a crucial pre-requisite to the passage of the new enabling law that will be brought before Congress. There must be a neutral, inclusive and independent space where an all-Bangsamoro conversation can take place, as well as a credible and impartial facilitator for the process. This will require the meaningful convergence of key non-state actors in the peace process, some of which were challenged by divisions and intra-group conflicts. If effectively managed, the Bangsamoro conversations may also address concerns on the participation of communities and their traditional leaders in the peace process.
Other threat groups pose security risks. Thesocio-political environment on the ground is marred by security threats posed by private armed groups, including those who have aligned with terrorist cells. Controlling radicalism and violent extremism fueled by a growing discontentment among disgruntled elements or former allies and members of the MILF and the MNLF is another security preoccupation. These further complicate the peace process in Mindanao.
Peace negotiations with the Communist Party of the Philippines-New People’s ArmyNational Democratic Front (CPP-NPA-NDF) collapsed.The resumption of formal talks between the GPH and the CPP-NPA-NDF in 2011, after seven years of impasse, was hampered by the unilateral postponement of peace talks by the NDF when the government refused to release the alleged NDF consultants who are high-ranking CPP/NPA officers. However, several efforts to facilitate the revival of peace talks failed due to the demands of NDF, which were unacceptable to the government.
A Closure Agreement with the Rebolusyonaryong Partidong Manggagawang PilipinasRevolutionary Proletarian Army-Alex Boncayao Brigade (RPMP-RPA-ABB) is pending. Pending the signing of the draft Closure Agreement, the inter-agency preparatory work at the national and regional levels has proceeded to ensure that the implementing agencies, local government units (LGUs), the Tabara-Paduano Group (TPG) of the RPMP-RPA-ABB, and the various stakeholders on the ground will be ready to operate once the agreement is signed. Various programs for socioeconomic integration, social protection, and institutional transformation were implemented. In particular, the TPG transformed itself from an armed group to a lawful and legitimate legal personality registered with the Securities and Exchange Commission (SEC) that recently won a seat in the House of Representatives through the Abang Lingkodparty-list.
Signed Closure Agreement with the Cordillera Bodong Administration-Cordillera People’s Liberation Army (CBA-CPLA) needs to be completed. In 2011, the GPH and the
CBA-CPLA signed a Memorandum of Agreement (MOA) “Towards the CPLA’s Final Disposition of Arms and Forces and its Transformation into a Potent Socio-economic Unarmed Force.” This resulted in the turnover of about 76 percent of the total inventoried firearms and detonation of all inventoried explosives. Registered under the SEC, the CPLA transformed into the Cordillera Forum for Peace and Development, Inc. and became a member of the Cordillera Regional Peace and Order Council. However, remaining activities particularly in the implementation of livelihood projects and the sustainability of interventions leading to socioeconomic transformationstill need to be completed.
Implementation of the Payapa at Masaganang Pamayanan(PAMANA) Programneeds to be enhanced and strengthened.The government’s peace and development convergence program extended development interventions to communities in isolated and hard-to-reach conflict-affected and conflict-vulnerable areas. PAMANA has improved socioeconomic conditions by providing PhilHealth insurance, scholarship grants and livelihood opportunities. Road infrastructure enhanced the access of communities to facilities and improved security conditions.
As of 2016, PAMANA has covered 16 regions, 50 provinces, 6 highly-urbanized cities, and 523 municipalities--all with communities affected by conflict due to the CPP-NPA-NDF and MNLF. Total funding for the program from 2011-2016 amounted to PHP36 billion. The program enabled community members to access basic social services, such as health and education. Improved accessibility and socioeconomic and security conditions resulted in lower transaction costs, which have significantly brought down prices, made profit margins bigger and spurred economic activities in the communities.Responding to emergencies and other security incidents also became easier for security forces.
PAMANA enhanced the capacity of national government agencies, communities and local government units on good governance to adopt and implement the peace-building agenda. There is now an increasing number of communities and LGUs that demonstrate higher levels of social cohesionmanifested in a heightened sense of belonging and respect for diversity among otherwise polarized individuals, groups, and sectors within and among communities; cooperation and volunteerism; and, increased participation of marginalized and vulnerable groups in peace-building and development activities.
However, the challenge is to further enhance and strengthen PAMANA because improving human security conditions through the delivery of basic socioeconomic services in a timely, conflict-sensitive and peace-promoting manner is the only way for peace dividends to be felt early by the long-time conflict-affected communities.
Implementation of the United Nations Security Council Resolution (UNSCR) 1325 and National Action Plan on Women, Peace, and Security (NAP-WPS) needs to be continued to ensure that women are further enabled and empowered to expand their role in conflict situations. The NAP-WPS was mainstreamed at the national level through its inclusion into Gender and Development (GAD) annual plans and budgetsand inclusion of women, peace, and security in the programs, projects, and activities of NGAs and local government units (LGUs). Women Peace Centers were also established in the ARMM. Integration and mainstreaming of gender and development perspective in all peace efforts was done through the active roles women played in key positions in the Office of the Presidential Adviser on the Peace Process (OPAPP) and in other bodies and mechanisms related to peace process under the previous administration.Particularly for the Bangsamoro peace process, the significant participation of women in peace negotiations paved the way for expressed provisions on the promotion of women’s rights and their meaningful participation in governance in the texts of the various negotiated agreements.
Ensuring peace and security is one of the crucial foundations that support the three pillars: Malasakit,Pagbabago,and Patuloy na Pag-unlad. The government aims to achieve a cohesive, secure, and progressive nation by attaining just and lasting peace, and by ensuring durable security, public order, and safety.
To attain this, the government aims to negotiate and implement peace agreements with all internal armed conflict groups. While engaging in peace talks, it will also ensure that communities in conflict-affected and vulnerable areas are protected and developed.
Figure 17.1 Strategic Framework to Attain Just and Lasting Peace
To support these outcomes, the following strategies, as guided by the Six-Point Peace and Development Agenda of the administration, will be implemented:
- Meaningful implementation of the peace agreement with the MILF toward healing in the Bangsamoro
- Completion of the implementation of remaining commitments under the GPH-MNLF peace agreement
- Accelerated signing and implementation of the final peace agreement with the CPPNPA-NDF
- Immediate conclusion of the peace process with the CBA-CPLA and the RPMP-RPAABB
- Implementation of peace-promoting and catch-up socioeconomic development in conflict-affected areas
- Empowering communities by increasing their capacity to address conflict and reduce their vulnerabilities
- Strengthening government peace and development institutions and mechanisms to increase their responsiveness to peace, conflict, and security issues
- Ensuring government rationalization, coordination, and monitoring of the delivery of socioeconomic programs, and other interventions by donor institutions and government agencies in conflict-affected areas, especially in Mindanao.
Subsector Outcome 1: Peace agreements with all internal armed conflict groups successfully negotiated and implemented
Pursue the meaningful implementation of the agreement with MILF toward healing in the Bangsamoro.An enhanced approach and roadmap for the implementation of the CAB and its annexes in close partnership with the MILF will be pursued. This will include the passage and ratification of an enabling law that is owned and advocated by various stakeholders and a national constituency. Inclusivity will be ensured by providing platforms for participation of different sectors and groups.
Parallel to the passage of the enabling law will be the implementation of the four components of the annex on normalization: security, socioeconomic development, confidence-building measures, and transitional justice and reconciliation. Along with these efforts, the GPH and MILF will commit to the maintenance of the ceasefire agreement in conflict-affected areas in Mindanao.
Complete the implementation of the remaining commitments under the GPH-MNLF Peace Agreements.The GPH will pursue the completion of its remaining commitments under the GPH-MNLF 1996 FPA based on the result of the TRP within an agreed timeframe. These deliverables include: (a) establishment and operationalization of the Bangsamoro Development Assistance Fund; (b) creation and operationalization of the Tripartite Implementation Monitoring Committee; and (c) resolution of issues on co-management of strategic mineral resources.
Moreover, convergence between the 1996 FPA and the CAB will be ensured in the Bangsamoro enabling law, which will incorporate the consensus points agreed upon by the GPH and the MNLF legal panels during the TRP. The participation of the MNLF in mechanisms created under the CAB, including the Bangsamoro Transition Commission, will also be ensured.
Accelerate the signing and implementation of the final peace agreement with the CPP-NPANDF.TheGPH and CPP-NPA-NDF have agreed to resume the formal talks and accelerate the negotiations for a final peace agreement. It is imperative that the high-level of confidence between the two parties as well as public interest and support are maintained.
The strategy will entail engaging the CPP-NPA-NDF in accelerated negotiations and related support processes to complete the three remaining substantive agenda of the talks: socioeconomic reforms, political and constitutional reforms (PCR); and end of hostilities and disposition of forces (EHDF). The final peace agreement with the CPP-NPA-NDF will be composed of the comprehensive agreements on these three reform areas and the Comprehensive Agreement on Respect for Human Rights and International Humanitarian Law.
As agreed by the parties, the negotiations will be done through accelerated and simultaneous discussions of the substantive agenda so that the agreement can be implemented within the term of the current President. Towards this end, Working Groups on PCR, ceasefire and EHDF will be created by the negotiating panels to begin discussions and immediately complete the draft comprehensive agreements, which will be approved by the two negotiating panels. The government will also sustain its engagement with the Royal Norwegian Government as thirdparty facilitator for the talks.
In addition, related support processes will be initiated in creating a favorable environment to keep the negotiations on track toward achieving the FPA. Parallel processes, such as internal advocacy on critical reform issues, strategic communication, and peace constituency building, will be intensified to ensure inclusivity and transparency in the peace process.
Immediately conclude the peace process with the CBA-CPLA and the RPMP-RPA-ABB.The government hopes to complete the peace process with the CBA-CPLA and the RPMP-RPAABB. By the end of 2022, the peace process should facilitate the return of former CBA-CPLA and RPMP-RPA-ABB members, their families and communities to productive and normal lives.
The strategy for the conclusion of the peace process with the CBA-CPLA will be three-pronged: (a) completion of implementation of the 2011 Closure Agreement; (b) continuing peace and development interventions; and (c) provision of support to regional development advocacies.
On the other hand, the closure of the RPMP-RPA-ABB track will employ the following strategies: (a) signing an agreement toward the group’s disposition of arms and forces; (b) multi-stakeholder convergence and support toward the full implementation of socioeconomic interventions; (c) release of alleged political offenders for humanitarian reasons; and (d) sustained local development support.
Subsector Outcome 2: Communities in conflict-affected and conflict-vulnerable areas protected and developed
Implement peace-promoting and catch-up socioeconomic development in conflict areas. The PAMANA Program will be strengthened based on an enhanced peace and development framework to support the Six-Point Peace and Development Agenda. This will focus on the implementation of peace-promoting and catch-up socioeconomic development in conflictaffected and conflict-vulnerable areas, as well as on building a culture of peace and conflictsensitivity. Likewise, it will address the issues of injustice and improve community access to socioeconomic interventions; improve governance by building the capacity of NGAs and LGUs to undertake a development approach that promotes peace and is sensitive to conflict, culture, and gender; and empower communities and strengthen their capacity to address issues of conflict and peace.
Empower communities by increasing their capacity to address conflicts and reduce their vulnerabilities.The negative impact of violent conflicts to communities will be mitigated, if not prevented, by supporting structures and mechanisms that will help them avert the emergence of conflict and prevent the escalation of existing ones. These will strengthen local or traditional conflict resolution and management mechanisms, as well as establish formal and informal avenues for continuing dialogue and broad-based participation of peace stakeholders in the peace and order councils, local development councils, and Katarungang Pambarangay. Appropriate systems and tools for conflict monitoring will also be established.
Mainstreaming of peace education programs and the promotion of a culture of peace and nonviolence will also be pursued in formal and non-formal settings. In formal education institutions, the Total-School Approach to peace education will be mainstreamed to promote peace and conflict sensitivity, introduce its principles in the school curriculum, and apply the principles within the various aspects of academic community life.
Moreover, the integration of former combatants will be addressed by focusing not only on their reconnection to mainstream society, but also their total healing and reconciliation with their communities.
Make government more responsive to peace, conflict, and security issues.Conflict sensitivity and peace promotion in the work of NGAs, LGUs, and other government mechanisms such as the peace and order councils, local development councils and disaster risk reduction and management (DRRM) councils will be mainstreamed.
Likewise, the continued implementation of the UNSCR 1325 and NAP-WPS will ensure the protection of women’s rights in conflict situations and expand their role in the peace process.
Programs and initiatives of government on various peace concerns resulting from internal armed conflict will be harmonized. These include protection of rights and promotion of interests of vulnerable groups (i.e., women, indigenous peoples (IPs), children, elderly, internally displaced persons (IDPs), persons with disabilities (PWDs), former combatants) in situations of armed conflict, observance of human rights and international humanitarian law, and conduct of interfaith and intercultural dialogue. Efforts will also be undertaken in addressing humanitarian concerns resulting from internal armed conflict, through the integration of DRRM into the peace process in line with RA 10121 or the National Disaster Risk Reduction and Management Act.
Rationalize, coordinate and monitor the delivery of socioeconomic programs and other interventions by donor institutions and government agencies in conflict affected areas, especially in Mindanao.A government-led coordination, collaboration and complementation mechanism among stakeholders in the implementation of all peace agreements, peacebuilding, and development initiatives will be established. The Mindanao Comprehensive Peacebuilding Program will be established, while the Mindanao Working Group will be reactivated to guide and harmonize the work of government and international partners. This will be anchored on the Mindanao Peace and Development Framework that will be formulated.
To strengthen the effectiveness of the strategies, legislative action is needed on the following:
Table 17.1 Legislative Agenda to Attain Just and Lasting Peace, 2017-2022
PROPOSED LEGISLATION RATIONALE
Subsector Outcome A: Peace agreements with all internal armed conflict groups successfully negotiated and implemented
The enabling law for the Bangsamoro political entity will have two main Enabling law that will pave the thrusts: (a) political-legislative track, which includes the passage of the way for the establishment of enabling law; and (b) normalization track, which runs alongside and the Bangsamoro political entity complementarily to the political-legislative work on the enabling law. This
enabling law will replace the draft BBL, which was not passed during the
16th Congress due to perceived unconstitutional provisions.
Amnesty proclamation for the
release of all alleged political Amnesty and pardon are part of the confidence-building measures that will offenders be undertaken in the peace tables with the armed rebel groups.
Ensuring Security, Public Order, and Safety
National security and public order are essential elements in building the foundation for inclusive growth, a high trust and resilient society, and a globally competitive knowledge economy. People feel safe wherever they are in the country and are able to go about their business, economic or social pursuits as long as they do not violate other people’s economic, social, and cultural rights. Such a condition enables the free flow of goods and services. Therefore, along with peace, security, public order, and safety constitute the bedrock of the 0+10 point Socioeconomic Agenda of the administration.
Assessment and Challenges
The previous Philippine Development Plan emphasized the need to safeguard the country’s territorial integrity, sovereignty, and sovereign right. While targets have been met, efforts now need to be intensified to eradicate crime, illegal drugs, and corruption. Further, the government must upgrade the capability of law enforcers to drastically reduce criminality and terrorism, and to ensure the safety and security of all people in the country.
The country needs to enhance its diplomatic and defense capability to protect its sovereignty and territorial integrity.The passage of the Revised Armed Forces of the Philippines (AFP) Modernization Act or Republic Act (RA) 10349 ensured the allocation of funds for the build-up of aircraft, vessels, and materiel to enable the country to attain a more credible defense posture.
In terms of external security and sovereignty, the country asserted its claims and sovereignty with the favorable ruling of the Permanent Court of Arbitration (PCA) on the South China Sea Arbitration Case. The case involved disputes on maritime jurisdictions and entitlements in the West Philippine Sea, and arbitration proceeded despite China’s refusal to participate.
In addition, the Philippines achieved a landmark agreement in 2014 to delimit the exclusive economic zone boundary with Indonesia. Bills on maritime zones and archipelagic sea lanes were introduced in Congress in 2015 to strengthen adherence to the provisions of the United Nations Convention on the Law of the Sea (UNCLOS).
Despite the decision of the PCA on the case filed by the Philippines pertaining to conflicting claims of maritime jurisdiction and entitlements under UNCLOS, the dispute in the West Philippine Sea will continue to be the main challenge to external security during this Plan period, and even in the longer term given the magnitude and complexity of the problem. Other territorial or jurisdictional problems such as maritime boundary delimitations with other neighboring countries will also need to be addressed.
The country forged strategic partnerships and bilateral agreements with other countries, which focused on political, security, and defense cooperation and other matters related to sovereignty and territorial integrity. Along with these agreements, defense and security assets and assistance were provided and committed by partner countries through diplomatic channels. These include humanitarian and disaster response, infrastructure and materiel upgrade, communication systems, capacity building for maritime security, search and rescue, and counter-terrorism.
Targets in crime volume and solution efficiency were met, but efforts need to be strengthened given the magnitude of the problem.The government exerted efforts to prevent and suppress security risks to citizens, guests, tourists, and vital infrastructure (e.g., power facilities, telecommunication towers, mining areas, etc.).
Crime volume was reduced by almost 20 percent from 2013 to 2015 due to intensified police interventions such as the creation of Patrol Operations Sections, conduct of Operation LambatSibat and various anti-criminality and law enforcement campaigns. Operation Lambat-Sibat is a deliberate, programmatic, and sustained police operation supported by scientific crime reporting with a wide dragnetand intel-targeted operations to catch small-time criminals and repeat offenders. These initiatives were complemented by the establishment of intelligence networks down to the barangay level that contributed to the success of police operations.
Although its volume has been reduced, crime remains a significant concern especially in urban areas. In 2015, the highest crime incidence was posted in the National Capital Region followed by the Central Luzon and Central Visayas regions. According to the Philippine National Police (PNP), the most common crimes reported in 2015 were theft, physical injury, and robbery. There were less incidents of pickpocketing, carjacking, and kidnapping reported.
Solving crimes is a challenge in law enforcement as it is affected by several factors beyond the control of the law enforcement agencies. These include people’s willingness to testify as witness and the efficiency of the pillars of the criminal justice system. Nevertheless, crime solution efficiency (CSE) has improved from 38.49 percent in 2013 to 51.36 percent in 2015. Although it surpassed the end of plan target of 38.26 percent, the number remains relatively low compared to CSE a decade ago, which averaged to around 90 percent in 2004 and 89 percent in 2005 (PSA, 2015).
The problem on illegal drugs needs a holistic approach. The use of illegal drugs is prevalent in the country with around four million drug users and 47 percent of barangays throughout the country being drug-affected (PDEA, 2016). Three illegal transnational drug groups of African, Chinese, and Mexican Sinaloa origin operating in the country have greatly aggravated the drug problem.
The government has therefore adopted a holistic approach in addressing criminality and illegal drugs. Nonetheless, the capability of military and law enforcement agencies must be intensified to address new threats to national security such as cybercrime and violent extremism. As these initiatives are expected to result in high incidence of apprehensions, the government must also upgrade its jail facilities and substantially increase the drug rehabilitation centers.
In all activities to address criminality, respect for human rights should be upheld and observed at all times. Mechanisms for reporting and addressing human rights violations should also be strengthened to ensure that violators are prosecuted.
Victims of human trafficking were effectively assisted, but preventive measures need to be strengthened. According to the Department of Justice, the government’s commitment to protect its people against trafficking led to the conviction of 248 traffickers and secured justice for 645 survivors from 2011 to 2016. There are already 24 task forces operating in different parts of the country, with a total of 7,185 trafficking victims rescued or repatriated and evacuated by foreign service posts abroad. Most victims were provided protection and assistance to enable them to recover from trauma and gain employment or start a business. The government continues to train and increase the capacities of law enforcers, service providers and front liners.
Government needs to give greater attention to public safety. Fire incidence increased from 12,301 in 2013 to 17,138 in 2015. NCR, Western Visayas, and CALABARZON recorded the most incidents in this period. A big factor is the lack of firemen, with the current ratio below the standard of one fireman for every 2,000 population.
Beyond fire safety measures, there are public safety issues that need to be addressed. These include emergency response, road safety, humanitarian assistance, and disaster response.
Safeguard migrants. Ensuring the safety and welfare of overseas Filipinos (OFs) is of paramount concern of the government given different sociocultural practices in host countries, geopolitical tensions, and natural and economic shocks. For surveillance and detection, the Bureau of Immigration has commenced the Alien Registration Program that mandates all foreign nationals to obtain a Special Security Registration Number. The government has also extended legal, financial and counselling assistance to many OFs through its embassies and consulates. Rapid Response Teams are also in place to respond to the needs and facilitate the immediate repatriation of OFs in countries in crisis.
Ensuring security, safety, and public order is the foundation of the strategies in the PDP 20172022; hence, it is accorded high priority by the administration. The accomplishment of this strategy is broken down into: (a) territorial integrity and sovereignty upheld and protected, (b) all forms of criminality and illegal drugs significantly reduced, (c) public safety ensured, and (d) security and safety of OFs ensured.
The strategies to achieve the targets involve several agencies in government, local government units, the local community, and the international community.
Figure 18.1 Strategic Framework to Ensure Security, Public Order, and Safety, 2017 – 2022
Subsector Outcome 1: Territorial integrity and sovereignty upheld and protected
Safeguarding the country’s territorial integrity, sovereignty, and sovereign rights is a core national interest. This is most pressing in addressing issues on the West Philippine Sea where a complex, multi-faceted, and multi-party maritime dispute is the main challenge in achieving a stable and secure external environment. To uphold and protect territorial integrity and sovereignty, the following strategies will be implemented:
Promote respect for a rules-based regime in the West Philippine Sea. In diplomatic relations, the country will promote respect for a rules-based regime in the West Philippine Sea to reduce tensions and to forestall conflicts that could destabilize the region. This includes promoting respect for legal and diplomatic processes to clarify issues and resolve disputes on maritime jurisdictions in accordance with international law, particularly the 1982 UNCLOS. This also involves confidence-building measures to create a favorable environment for the peaceful settlement of disputes between and among parties that are directly involved, as well as other interested parties with a stake in the disputed area.
Promote greater amity and cooperation with all nations.The country will take steps to promote greater amity and cooperation with all nations especially with countries in the region by enhancing bilateral relations, strengthening alliances and strategic partnerships, and developing new security and cooperation arrangements.
Expand and enhance diplomatic engagements and cooperation in regional and international fora, particularly in areas of interest to the country.
Expand the global presence of the Philippine Foreign Service and key attached agenciesthrough the establishment of foreign service posts in strategic areas. This will give greater voice to Philippine diplomacy and enhance diplomatic capability across a wider spectrum of international relations.
Pursue and sustain programs for the modernization and capability upgrade of AFP and PCG. Parallel to diplomatic efforts, a credible defense posture is critical to the protection and preservation of the country’s territorial integrity, sovereignty, and sovereign rights. The AFP Modernization Program, AFP Capability Upgrade Program, and Philippine Coast Guard (PCG) Modernization Program are essential to safeguarding the core interests of the country and must be pursued and sustained. The facilities, equipment, and skills of maritime law enforcers and local government units (LGUs) will be enhanced to protect our strategic maritime interests and territorial waters, and to implement maritime laws and policies.
Subsector Outcome 2: All forms of criminality and illegal drugs significantly reduced
The government will prioritize the reduction of all forms of criminality and illegal drugs through a holistic program that involves combatting not only crimes but also the corruption that leads to the perpetuation of such acts. The following strategies will be pursued:
Intensify law enforcement operations, including military support to fight criminality, trafficking, and terrorism. The PNP will strengthen its efforts to reduce all forms of criminality through police presence, law enforcement and anti-criminality, intelligence, case recording and tracking, detection and investigation services, case filing and arrest, capacity building, operational readiness, and disaster and emergency response. Police-community partnerships will be forged, complemented by information and education campaigns and community organization and mobilization to prevent and suppress crimes and lawlessness. The government will also pursue programs on counter-radicalization of the youth, to prevent and deter recruitment of the youth in sowing violence and terrorism.
Enhance the capability of police, coastguard, military, and other law enforcers to address the internal security threatsposed by local and transnational terrorists and criminal groups, and new and emerging security threats such as cybersecurity.
Launch a holistic program to combat criminality, illegal drugs, and corruption. The national anti-illegal drug strategy includes suppressing the flow of illegal drugs supply through sustained law enforcement operations and reducing consumer demand for drugs and other substances through drug rehabilitation and massive preventive education and awareness programs (see also Chapter 10). Critical to this strategy is the arrest and prosecution of police personnel involved in the use and trade of illegal drugs through counter-intelligence operations. This will employ an effective investigation, prosecution, and monitoring of drug cases from investigation through prosecution (see also Chapter 6). To do this, government will coordinate closely with local and foreign counterparts and other international anti-drug organizations.
The Philippine Drug Enforcement Agency’s campaign planBandiladefines the strategies and mechanisms to address the drug problem in the next six years. The implementation of Barangay Drug Clearing Program, a multi-stakeholder strategy to clear the barangay of illegal drug activities and personalities, will be done through partnerships between local enforcement officers and the barangays. Together, they will determine the presence of illegal drug activities and provide the illegal drug users with treatment, rehabilitation, skills training, and support for their reintegration to the society. Family members of surrenderers and the community will likewise be provided with counseling and support services.
Complementary to the above strategy is the Department of the Interior and Local Government’s Mamamayan Ayaw Sa Anomalya-Mamamayan Ayaw Sa Illegal na Droga(MASA-MASID) is the government’s platform for stronger collaboration between the LGU, community, and national government to fight criminality, corruption, and illegal drugs. It institutionalizes volunteerism in the community, intensifies advocacy and education, and creates an enabling environment that encourages collaboration among community partners to effectively implement a community-based rehabilitation program. Mechanisms to validate information will be put in place to ensure the integrity of the campaign.
With respect to human trafficking, the Inter-Agency Council Against Trafficking (IACAT) and its member agencies will sustain and further strengthen enforcement, including detection, rescues, investigations, prosecutions and asset forfeitures, as well as support services for victim-survivors. For this purpose, the government at all levels will institute policies and provide the necessary resources, capacity building, and public information services.
Deepen international partnership to counter violent extremism and intensify the fight against human trafficking. The government will continue and further deepen partnerships with the international community through multilateral and bilateral mechanisms such as mutual legal assistance agreements, global cooperation, and international law enforcement arrangements (e.g. International Criminal Police Investigation or INTERPOL and joint law enforcement operations). These initiatives can be bolstered with the amendment of the Philippine Immigration Act, which seeks to strengthen our legal and institutional framework; capability in border control at ports of entry; and regulation and registration of foreign nationals within the country. Such can help prevent the entry and stay of foreign terrorists, as well as transnational human traffickers.
For monitoring and evaluation, conduct of periodic nationwide Victimization Survey covering crimes and human rights violations will be pursued to augment administrative-based data.
Subsector Outcome 3: Public safety ensured
The government will develop responsive, highly professional, and competent public safety organizations that will ensure the safety of its citizenry. Local governments play a crucial role in maintaining public order, especially in addressing issues related to traffic, illegal settlers, sidewalk dwellers, and sidewalk vendors.
The following strategies will be implemented to raise standards for public safety:
Increase police visibility. The PNP will enhance its police presence and professionalism to maintain peace and order. Patrolling will continue to be the backbone of policing and the avenue for establishing and maintaining police presence in barangays. These interventions, which are all done in partnership with the community, include strategically-placed checkpoints, foot and mobile patrols, and focused and intelligence-driven operations against most wanted persons and members of criminal gangs.
Develop and promote non-traditional systems for responding to crime and emergencies.Nontraditional systems to enable our law enforcers to effectively respond to crimes and emergencies will be pursued through the establishment of an emergency hotline nationwide and promotion of social media platforms for crime and emergency reporting.
Improve capability of the fire protection services and other security forces. The capability of fire protection services and other security forces will be enhanced to ensure the protection of people’s lives and properties as well as the country’s vital and critical infrastructure. The capability of the security sector in humanitarian assistance and disaster response will also be enhanced.
Ensure that all law enforcement and military operations comply with the requirements set by the international human rights standardsprescribed in international human rights laws and domestic laws, including the Constitution, which provides safeguards against human rights violations. Integration of human rights in police and military training will be institutionalized. The human rights offices, desks or units in all police and military headquarters will likewise be strengthened and expanded as an institutional mechanism for the protection and promotion of human rights. The Commission on Human Rights will intensify its monitoring of the compliance of the security sector to human rights standards in the sector’s policies and operational manuals and their operations. Law enforcement operations will likewise ensure that the rights of women and children are promoted, protected, and fulfilled.
Enhance the capability of the security sector for humanitarian assistance and disaster response. The capacity of security sector agencies will be enhanced to respond to gender and development issues, especially during natural and human-induced disasters.
Subsector Outcome 4: Security and safety of overseas Filipinos ensured
Armed conflicts, economic instabilities, and social tensions in other countries put the welfare of all Filipinos overseas at risk. To ensure the safety of OFs, the following strategies will be implemented:
Provide sufficient information and safety nets to OFs prior to their travelon business, leisure, temporary employment or in search of permanent residency abroad.
Strengthen border control measures to protect OFs against human and drug trafficking, through capacity building and effective partnership with destination countries.
Provide sufficient assistance-to-nationals servicessuch as legal assistance and consular services in the home office and at all foreign service posts under the One Country Team approach. Technology will be improved for online and mobile application platform for legal aid, guidance, and counselling for migrants, 24/7 action line service for nationals in distress, and monitoring of victims of illegal recruitment and trafficking.
Establish mechanism to monitor the socioeconomic and political conditions of OFs. Persistent and emerging risks to the safety of OFs, especially the rise of global terrorism, call for measures that are more proactive. There needs to be a mechanism to actively and continually monitor the socioeconomic and political conditions of OFs.
Enhancethe capability of migrant-serving agencies and consular officers on crisis preparedness and contingency planning.Aside from being prepared for socioeconomic shocks, the government must also be ready for natural shocks such as health emergencies. Capacity building for migrant-serving agencies and consular officers on crisis preparedness and contingency planning will therefore be enhanced. The Crisis Contingency Plan also needs to be reviewed, taking into account the recent experiences in some countries where a significant number of overseas workers were affected by geopolitical and socioeconomic downturns. (See also Chapter 11).
To strengthen the effectiveness of the strategies, legislative action is needed on the following:
Table 18.1 Strategic Framework to Ensure Security, Public Order, and Safety, 2017 – 2022
LEGISLATIVE AGENDA RATIONALE
Subsector Outcome A: Territorial integrity and sovereignty upheld and protected
Pursue enactment of laws and policies to comply with commitments and obligations under treaties and international conventions to which the country is a state party, particularly UNCLOS
Introduce amendments to Republic Act 9184, also known as the Defense Procurement Act Government Procurement Reform Act, for a specialized procurement process for defense capabilities considering the classified nature of the
assets to be acquired.
Amend the National Defense Act of 1935 in order to: a) update national defense policies, principles, and concepts; and, b) codify various laws on
National Defense Act national defense, the Armed Forces of the Philippines and the civilian
bureaus in the defense establishment in order to streamline and professionalize the defense bureaucracy.
Provide for a national security policy and planning framework and institutionalize its planning process within national development planning.
National Security Act
This will enable every administration to lay down a blueprint of its national security priorities, policies, and strategies.
Subsector Outcome B: All forms of criminality and illegal drugs significantly reduced
Passage of PNP Reorganization Further improve its system capability in providing better police services and Modernization Act for crime prevention, suppression, and investigation.
Enhance certain provisions to address the present drug situation in the country, particularly in the enforcement of the law, the functions of
Amendment of the Comprehensive concerned government agencies, and the organization of PDEA. The Dangerous Act of 2002 amendments will support and complement the active and holistic approach being implemented in addressing the drug problem in the country.
Aims to strengthen, among other, legal and institutional framework,
Amendment of the Philippine capability on border control at ports of entry; and regulation and Immigration Act registration of foreign nationals within the country.
Subsector Outcome C: Public safety ensured
Based on the Constitutional provisions empowering the Government to call upon its citizens to defend the state and render personal military service and recognizing the vital role of the youth in nation-building, this will inculcate patriotism and nationalism, and encourage youth
Mandatory Reserve Officers' involvement in public and civic affairs. The DND envisions to create a
Training Corps (ROTC)
pool of trained reservists by making the ROTC mandatory again in order to generate the needed human resources in times of war, calamities and disasters, and in support of the government’s enhanced anti-crime strategy.
Establish an independent Disaster Risk Reduction Authority with sufficiently high level of authority to lead the coordination, monitoring, oversight and implementation of disaster risk reduction and
Amendments of Disaster Risk management. The authority will be equipped with the necessary
Reduction Management Act
competency and resources to engage new actors, particularly in the field of risk transfer and insurance, and built with the necessary structure to manage broader governance arrangements.
Accelerating Infrastructure Development
Infrastructure, by definition, undergirds a country’s socioeconomic development. The more strategically distributed it is – both sectorally and spatially – the better it is for inclusive growth and sustainable development.
With a growing economy, the Philippines requires more and better selected infrastructure investments, given its archipelagic landscape, expanding population and rapid urbanization. To support a higher growth trajectory and improve the quality of life in both urban and rural communities, infrastructure development will remain among the top priorities of the government over the medium term. Spending on infrastructure has to be intensified while addressing persistent issues and challenges hampering implementation, so that the so-called “Golden Age of Infrastructure” will form part of a solid foundation for reaching the country’s Long-Term Vision 2040.
Assessment and Challenges
The significant achievements and critical reforms in infrastructure were not enough to keep up with the rates of population growth and urbanization. Overcoming the bottlenecks facing the sector will require addressing areas where the issues persist.
In terms of global performance and ranking of overall infrastructure quality, the Philippines lagged behind the five pioneer members of the Association of Southeast Asian Nations (ASEAN).The previous administration targeted to improve quality of the country’s infrastructure by increasing the government’s budget for infrastructure. However, the actual government spending for infrastructure, particularly in 2012 and 2014, fell short of the target.
Figure 19.1 Public Spending on Infrastructure
Delays in implementation hampered the government’s aggressive Public-Private Partnership (PPP) program.Considering the size of the country’s PPP portfolio, further delays in implementation could eventually translate into huge fiscal impacts.
Despite the improvement and expansion of the transport systems, it is still inadequate visà-vis the growing demand.Additional roads and bridges, including drainage, were constructed and upgraded, and new alternative routes were opened in support of major economic sectors. Moreover, initial steps were taken towards developing new railway and other mass transit systems in and outside Metro Manila. Upgrading of the country’s gateways were undertaken to ensure the continued viability of inter-island transport and to prepare for the upcoming integration with the rest of the ASEAN Community and Brunei Darussalam-IndonesiaMalaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). However, transport facilities are either operated beyond capacities or are underutilized as envisioned ex-ante.
Road-based transport infrastructure remained a key point of convergence with other productive sectors but the quality remains inadequate. As of 2015, 97.19 percent (31,242 km) of national roads, 61.80 percent (15,377 km) of city roads, and 28.65 percent (31,075 km) of provincial roads were paved and 347,160 lineal meter (lm) bridges along national roads were made permanent along with the opening of new alternative routes. Still, the World Economic Forum-Global Competitiveness Report (WEF-GCR) 2015-2016 ranked the Philippines 97th out of 140 countries in terms of quality of road infrastructure.
The following are the main problems: (a) low-quality public transport; (b) traffic congestion; (c) poor road network quality; and (d) inadequate road safety features. The lack of reliable and convenient public transport, coupled with poor infrastructure provision for non-motorized transport, is a major cause of congestion, especially in urban areas. Commuters continue to shift to private vehicle use, as evidenced by the faster growth in the number of registered motor vehicles, which further strained the already limited road space. Road congestion contributed to inefficiencies in utilization of public transport, airports, and seaports. Traffic management efforts were undertaken but failed to yield significant improvements. Economic losses due to traffic congestion were estimated to be at least PHP2.4 billion per day in Metro Manila alone (as of 2014). Outside urban centers, roads connecting production to commercial centers are typically constrained in terms of safety. Moreover, these remain vulnerable to the adverse impact of natural calamities.
Nevertheless, road-based transport continued to provide support to productive sectors. A total of PHP60.5 billion was invested from 2011 to 2015 for 463 tourism road infrastructure projects, which is more than quadruple of the PHP13.79 billion allocated from 2006 to 2010. On the other hand, connection of farm-to-market roads to the main logistics network was also prioritized to support the agriculture sector. To enhance the agribusiness competitiveness in Mindanao, an intermodal logistics system was put in place to address major constraints, such as high cost of transport and inadequate logistics infrastructure. Under the program for Mindanao Logistics Infrastructure Network, 477 km of the total 2,206 km of national and local roads, including bridges that need to be constructed, widened, and improved have been funded until 2016.
Upgrading and expansion of the country’s mass transport network have not kept up with demand, and have not effected the desired shift from private car usage to high-capacity public transport solutions. According to the WEF-GCR 2015-2016, the quality of the Philippine rail infrastructure network ranks 84thout of 140 countries, with only three urban lines spanning 76.9 km in Metro Manila and two commuter lines of the Philippine National Railways (PNR) in Southern Luzon in operation. The development of mass transit systems connecting mainland Luzon and in emerging cities in the Visayas and Mindanao, is still at an early stage. The lack of high-capacity mass transportation options results in more trips using lower-capacity, road-congesting, and environmentally-polluting forms of transport and limited accessibility of business districts, commercial areas, industrial zones, educational institutions, and government centers.
The existing railway systems face problems of inter-operability (due to different gauge and signaling systems), congestion, and poor asset preservation/maintenance. Operation and maintenance of existing assets proved to be difficult, particularly since equipment and facilities require highly specialized parts and components, thus, entailing longer lead times between procurement and delivery. Existing Commission on Audit (COA) regulation, however, only allows a three-month inventory of spare parts.
The country’s civil aviation sector met its overall target, but with regional integration, it will need to meet a significantly higher demand. In 2015, the air transport sector exceeded by 25.8 percent its overall target increase of 52.51 million annual international and domestic passenger volume. This may be attributed to, among others, the opening of secondary airports to more international flights, implementation of various airport improvement and operations and maintenance (O&M) projects, upgrading of the Clark International Airport (CRK), and implementation of the ASEAN Multilateral Agreement in Air Services (which opened air traffic for national and local carriers to fly to and from the capital cities of ASEAN countries).
Nonetheless, air traffic congestion remains an issue among the major airportsespecially in the urban centers. The lack of night-time flying capabilities in other airports adds to the day-time airport congestion. Majority of passengers, even those from the natural catchment area of CRK preferred to use the NAIA because of the availability of more flights in that airport.
Existing capacities of most of the airports in the country will be unable to meet the expected demand unless new facilities are developed and existing ones are upgraded. A network perspective must be adopted to address congestion, to include not only the airside and landside facilities but also the access roads. For the greater capital region, what is needed is a clear policy direction as to the site for the future international airport in the vicinity of Metro Manila and an optimal operational arrangement with CRK, in accordance with international practices and standards and the regional economic strategies of the country.
The country’s port system benefitted from a number of projects but infrastructure quality and operational efficiency still need to be improved. Inter-island water transportation passengers increased from 52.7 million in 2010 to 62.76 million in 2015. Cargo transported through the country’s port system also increased from 166.40 million metric tons in 2010 to 223 million metric tons in 2015. A number of improvement projects for the port system including the oad-Roll-on-Roll-off (RoRo) network and conduct of feasibility, masterplan, and engineering studies were undertaken to ensure efficient operations and prepare the country’s port system for regional integration with the rest of the ASEAN.
Table 19.1 Traffic in Major Container Ports: 2015
CONTAINER TRAFFIC IN TWENTYFOOT EQUIVALENT UNIT
Manila International Container terminal
International Container Terminal Services Inc.
Manila North Harbor (domestic)
Manila North Harbor Port Inc.
Manila South Harbor
Asian Terminals Inc.
Asian Terminals Inc.
International Container Terminal Services Inc.
Cebu International Port
Oriental Port and Allied Services Corporation
Davao International Container Port
Container Terminal, Inc.
Inefficiencies in port operations resulted in congested access roads. For instance, the increasing cargo volumes in the ports of Manila and Cebu caused higher volumes of truck container traffic in access roads. To help decongest the major thoroughfares of Metro Manila, the Pasig River ferry system was rehabilitated but sustaining its operations remains problematic. A major solution was to encourage utilization of the Batangas and Subic ports. But users still preferred the major ports over these alternative ports because of the latter’s inadequacy of ancillary services, such as proximity to consolidators; warehouses and availability of carriers, service providers, forwarders and shipping companies; reliability of the shipping schedules; efficient cargo acceptance and release; and affordable rates. Again, this points to the need to adopt a systems approach in infrastructure provision.
The provision of adequate transport security has been constrained by the limited assets and institutional capacities of concerned agencies.To ensure that standards and protocols are up-to-date, the Office of Transportation Security (OTS) conducted a series of training programs to inform security officers with the latest threats, aviation security incidents, security measures (new technology) and procedures. The OTS, with assistance from the Armed Forces of the Philippines (AFP), Philippine National Police-Aviation Security Group and Maritime Group (PNP-AVSEGROUP), and the Philippine Coast Guard (PCG),) was able to intercept and confiscate various prohibited items in different airports and ports. However, it was not able to vet all the needed security plans and programs in the absence of the Civil Aviation Authority of the Philippines’ airport security programs.
Meanwhile, the PCG was only able to respond to 95.98 percent of all the maritime distress calls in 2015. PCG has limited patrol and response, as well as, search and rescue capabilities, especially considering the vast coastline to be manned and guarded. Moreover, majority of its assets are non-operational or poorly-maintained.
Despite the abundance of water resources and the many efforts to utilize and manage these, service remain inadequate. The country has a total of 421 principal and 18 major river basins and renewable water totaling 479 billion cubic meters (bcm)from which water can be drawn for beneficial use. The total volume of water rights granted for consumptive use is 87,000 million cubic meters (mcm), which is 60 percent of the 146,000 mcm potential volume for use. Despite the abundance of the resource and programs and projects, gaps in water services remain. Part of the problem can be traced to the fragmented governance structure of the sector. There is no apex body that would oversee overall planning, programming, and policy formulation based on sound data. This resulted in uncoordinated initiatives leading to inefficient provision of services.
Universal access to water supply, sewerage, and sanitation (WSSS) is yet to be achieved.Of the country’s 22.7 million families, 14.5 percent still have no access to safe water supply, whereas the target is to reduce this to 13.1 percent by 2015. In fact, in ten regions, the proportion of households with no access to safe water supply is even higher than the national average. In addition, 337 municipalities are still considered waterless, which fell short of the 2015 target of lowering it to 274. These are mostly located in the nation’s 10 poorest provinces.
As of 2015, 5.9 percent of households did not have access to a basic sanitary toilet facility, although the target was met. Only 4.4 percent of households nationwide are served by sewerage systems. Furthermore, despite the 40 percent subsidy of the national government (NG), under the National Sewerage and Septage Management Program (NSSMP)for service providers to establish sewerage services in the 17 highly urbanized cities outside Metro Manila, no sewerage projects have been implemented. Untreated wastewater exacerbates the non-availability of raw water sources for new development.
Many small water districts (WDs)and utilities operated by local government units (LGUs) have difficulty sustaining operations and generating capital for expansion due to low tariffs and consumers’ low willingness to pay.
The improved and equitable delivery of basic WSSS infrastructure is hindered by: inadequate financing; low technical capacities of small service providers; difficulty in acquisition of rightof-way for sewer lines; lack of available land for water supply and wastewater treatment facilities; and institutional challenges such as, among others, lengthy processing of water permit applications and absence of a single, independent and predictable regulatory regime. For water critical areas and the National Capital Region (NCR), there is a need to find alternative water sources to ensure water security.
Irrigation systems and appurtenant drainage facilities expanded marginally in recent years, and performance of irrigation systems was low due to deterioration and climaterelated factors, among others. Irrigation service to support agricultural production increased slightly from 56.57 percent of the total potential irrigable area of 3,019,609 hectares (ha)in 2014 to 57.33 percent in 2015, which is below the target of 70.91 percent. However, a total of 360,912 haof irrigated land have dysfunctional and aging canals. The performance of some national and community irrigation systems remained below par due to typhoons and inefficient water management practices. Irrigation systems performed poorly due to inadequate resources and the lack of capacity of the National Irrigation Administration and irrigators’ associations. Delayed fund releases, peace and order problems, and right-of-way issues hampered the implementation of programs and projects. Degradation of watersheds also reduced the quantity and quality of water for irrigation, and caused flooding during the rainy season and scarcity during the dry season. It resulted in rapid soil erosion that affected the conveyance of irrigation and drainage canals.
While more flood-prone areas have been protected, flood management has become more challenging due to climate change impact and institutional issues.Protected flood-prone area increased from 12.8 percent in 2011 to 18.33 percent or 131,522 ha in 2015. In 2015, it was observed that flood waters in NCR subsided 25 minutes to 1.5 hours after heavy rains.
The major challenge in the sector is the increasing frequency and intensity of flood occurrences due to climate change. Another concern is the unclear delineation of responsibilities of LGUs and NG on the implementation and O&M of flood management and drainage structures. Floodprone areas in Regions I, II, III, VI, XII, XIII, and ARMM are particularly huge. Specifically, the provinces of Zamboanga Del Sur, Zamboanga Sibugay, Camarines Sur, and Compostela Valley, among others, are also considered highly susceptible to flooding.
The country’s energy self-sufficiency level of 53.5 percent fell short of the 60 percent target in 2015. The country’s total primary energy supply was placed at 50.4 metric tons of oil equivalent (MTOE) with local energy comprising 26.9 MTOE of the total. Oil remained the country’s major energy source accounting for 32.2 percent of the energy mix.(See Figure 19.2)
Figure 19.2 Philippine Energy Supply as of 2015
The country’s total final energy consumption reached 29.8 MTOE with the transportation sector accounting for 10.6 MTOE, and the residential sector for 8.7 MTOE.
Power generation has increased but is still insufficient to meet the growing demand, and the situation is further exacerbated by feedstock security concerns. Policies have been initiated to increase competition in power generation and support development in renewable energy. However, power supply is still insufficient to meet the ever-increasing demand for electricity which, in turn, contributes to the high cost of electricity.
The Philippines’ total installed capacity grew by 4.6 percent from 17,944 megawatts (MW) in 2014 to 18,765 MW in 2015. Power generation grew by 6.7 percent with the addition of 5,152 gigawatt-hour (GWh) from 2014 to 2015.
The Luzon grid had thin reserves up until September 2016 while the electricity supply in the Visayas was critical in the second semester of 2016. On the other hand, Mindanao has sufficient reserves until February 2017, with reserve capacity of more than 50 percent. While fiscal and non-fiscal incentives were provided to encourage investments in the sector, the timely entry of the private sector in power generation has been impeded by protracted red tape in the processing of necessary permits.
Table 19.2 Installed Capacity (in MW), as of 2015
(1st HALF 2016)
Despite the passage of the Renewable Energy Law in 2008 and the adoption of the National Renewable Energy Program for 2012-2030, only 7,013.9 MW of renewable energy has been installed out of the potential 14,499.8 MW.
Hydropower plants comprised 19.2 percent of the country’s total installed capacity, but extremely hot or dry weather conditions, like the El Niño phenomenon, affected the adequacy and reliability of energy supply.
Natural gas from Malampaya powers 23 percent of the Luzon dependable capacity. But the depletion of the Malampaya Natural Gas Field, as well as the expiry of the Gas Supply Purchase Agreement between Shell Philippines Exploration and its off-takers, threatens energy security. Continued exploration works in existing petroleum service contracts failed to produce new indigenous natural gas of commercial quantity. Disputes in the West Philippine Sea also contribute to uncertainties in petroleum exploration. The lack of policies and backbone infrastructure hampers the growth of the natural gas industry in the country.
Meanwhile, the private sector continued to invest in coal-fired power plants in view of shorter gestation period and in response to the country’s baseload capacity requirement. Indonesia supplies 70 percent of the Philippines' coal import needs, but their moratorium on coal shipments following the risk of kidnappings and piracy in the West Philippine Sea threatened the country’s coal supply.
Figure 19.3 Renewable Energy Share in Philippine Installed Capacity: 2015
Development of the transmission network and distribution facilities was hampered by issues on right-of-way, security and resiliency to natural calamities.The lack of interconnection between Mindanao and the Luzon-Visayas grid meant that surplus in the former could not be utilized in the latter, and vice-versa. Likewise, there is still no established structured market in Mindanao similar to the existing wholesale electricity spot market (WESM) in Luzon and Visayas. Aggravating the issue of reliable supply is the concern on resiliency against natural calamities and the safety of energy facilities against such issues as the sabotage of electricity transmission and distribution facilities, especially in Mindanao.
In addition, the difficulty of acquiring right-of-way necessary for the National Grid Corporation of the Philippines to implement transmission line projects is a constant obstacle to grid expansion. This is especially true in urban areas and even in the rural areas with indigenous peoples. Limited island-to-island interconnection is also seen as a hindrance to extending secure and reliable electricity service.
Part of the Philippine commitments to the ASEAN are the ASEAN Power Grid (APG) and the expansion of the Trans-ASEAN Gas Pipeline (TAGP). The Philippines has yet to develop its domestic pipelines prior to connection with other ASEAN countries due to the absence of an enabling legal and regulatory framework that will oversee and regulate the natural gas industry, including incentives to prospective investors19.
While there has been considerable effort in recent years to pursue nationwide distribution of electricity, gaps in access especially in the rural and off-grid areas remain.The household electrification level has reached 89.61 percent (20.36 million out of 22.72 million households) in July 2016 through the provision of technical and financial support to electric cooperatives and the implementation of missionary electrification programs, including the New Power Provider and Qualified Third Party20programs. However, much is still needed to achieve the 7th sustainable development goal of universal energy access by 2030, particularly in Mindanao where household electrification level stands only at 72.38 percent (see Table 19.3).
Table 19.3 Household (HH) Electrification as of July 201621
ELECTRIFICATION LEVEL (%)
As of June 2016, the total rated capacity of the 285 National Power Corporation-Small Power and Utilities Group power plants used in missionary electrification is 193.72 MW, with a total dependable capacity of 136.75 MW. Most of the power plants operate for limited hours only (i.e., 4, 8, or 12 hours).
19 2012-2030 Philippine Energy Plan: Overview and Executive Summary. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/pep/2012-2030-pep-executi...
20 The Qualified Third Party program is designed to attract alternative service providers and private investments in rural electrification. It is also responsible for the generation of power and its effective distribution to the area/community. 21 DOE
Generally, the distribution and provision of electricity has been hampered by the following:
a) High costs of fuel and logistical support for diesel plants and the low capacity to pay and low willingness to pay for the service of households especially in rural areas
b) Low technical and absorptive capacities of some electric cooperatives
c) Increasing number of households and service demands (e.g., request from 8 hours per day to 12 hours per day service)
d) More funds needed for missionary electrification to benefit more marginalized communities in off-grid areas
e) Few private sector participants
f) Various institutional bottlenecks such as compliance requirements of LGUs, right-of-way, and peace and order
Gains in energy efficiency and conservation have been achieved but more work is needed to optimize the benefits of demand-side management.In 2015, the country was able to save energy amounting to 5,199.6 kiloton of oil equivalent through the various programs under the National Energy Efficiency and Conservation Program. Moreover, as of March 2016, DOE has accredited 15 energy service companies (ESCOs)to accelerate the implementation of the government’s energy efficiency and conservation (EEC) initiatives. The initiatives will need to be expanded to include the development and promotion of new technologies and programs. This is to encourage the practice of sensible energy habits in government and private establishments, households and transportation to achieve greater energy savings.
Even at full capacity, indigenous supply is still way below the local demand to meet the increasing blending requirements of the local fuel industry.Due to the implementation of Republic Act 9367 (Biofuels Act) in 2009, 249 million liters (ML) and 179 ML of fuel have been displaced in 2015 through the mandated blending for bioethanol and biodiesel, respectively. However, total bioethanol and biodiesel plant capacities in the country stand at 198 ML and 584.9 ML annually, respectively.
The Philippines’ electricity rates remain amongst the highest in Asia.Electricity rates in the Philippines are high mainly because there is no state subsidy for the rates of privatelygenerated, transmitted, and distributed power supply. Users are charged with the feed-in-tariff (FiT)-All, universal charges, value-added taxes (VAT), and system losses in transmission and generation. There were other problems like minimal competition in the energy market, the alleged market manipulation, and other unforeseen disruptions in power supply .
While reducing the cost of electricity is vital to improving the competitiveness of industries and encouraging private sector investments, there should be a balance between the rates, service reliability, and the environmental implications of the different technologies utilized. Too much intermittent renewable energy affects grid reliability, but reliance on cheaper fuels, such as coal, increases greenhouse gas emissions. An optimal energy mix is needed to provide maximum benefits at the most reasonable costs to consumers while safeguarding the sector from external shocks.
Information and Communications Technology Infrastructure
Although the country’s information and communications technology (ICT) infrastructure has increased, it has not advanced enough to be at par with other ASEAN countries. Despite the increase in service coverage (i.e., cellular mobile at 99.38 percent and broadband internet at 76.44 percent of cities and municipalities), the Philippine ICT infrastructure is still inadequate and pales in comparison with competing economies in Asia in terms of quality and affordability. The country’s broadband download speed is among the slowest at 4.3megabits per second (Mbps) vis-à-vis ASEAN-5 average of 9.6Mbps in 2016, while the cost of fixed broadband as a percentage of Gross National Income (GNI) is at 7.53 percent, way above the
5.0 percent affordability threshold.
With the adoption of the Integrated Services Digital Broadcasting-Terrestrial Standard in 2013, the digital terrestrial television broadcasting (DTTB) migration is underway. Through this, the country is expected to benefit from the freeing up of spectrum frequencies that may be reallocated to other wireless ICT applications and services.
Through the e-Government Master Plan 2013-2016, the Integrated Government Philippines Project provided infrastructure, data centers, and other support systems to improve the country’s e-government system. The creation of the Department of Information and Communications Technology (DICT), through the enactment of Republic Act 10844 in 2016, is an important milestone to advance the country’s national ICT development agenda. This will address the inadequate ICT infrastructure and institute reforms to foster real market competition.
Social infrastructure (i.e., housing, education, health and solid waste management facilities) has increased during the past years but remains inadequate to meet the growing demand for basic social services.
Through various school building programs and projects, the provision of educational facilities has improved, however, classroom-to-pupil ratios remain low.Infrastructure provision for education reduced classroom-to-pupil ratio from 1:39 in 2010 to 1:34 in 2014 for the primary level, and from 1:54 to 1:48 for the secondary level in in the same period. However, these fell short of the targets at 1:32 and 1:47, for the primary and secondary levels, respectively.
From 2010 to 2015, the total number of classrooms constructed was 118,686, which already covered the classroom deficit of 66,800in 2010. However, a backlog of 66,463 classrooms remains from the previous plan period largely due to transferees from private schools. The implementation of the K-to-12 Programadded another 34,057 classroomsto the need. Furthermore, 3,819 schools still lack water supply and sanitation facilities.
The Department of Education also failed to utilize more than half its budget for capital outlay during the period 2012 to 2015.
While the overall number of hospitals and health facilities constructed or upgraded increased, several LGUs were unable to provide the necessary resources to keep such infrastructures functional.As of 2016, the total number of hospitals and healthcare facilities constructed or upgraded has reached 29,018 units, composed of 26,048 barangay health stations (BHSs), 2,626 rural health units (RHUs)/urban health centers, 234 district hospitals/LGU infirmaries, 27 provincial hospitals, 13 city hospitals, and 70 Department of Health (DOH) hospitals. Even then, the Department of Health (DOH) has cited the lack of affordable land as a challenge for the timely construction and expansion of primary healthcare facilities. A bigger problem is that LGUS are unable to provide adequate financial support, human resources and equipment necessary for the operation and maintenance of local health infrastructure facilities. Thus, these facilities are rendered non-functional or underutilized.
As of 2016, there are 14 DOH treatment and rehabilitation centers in the country with programs to reintegrate recovering drug dependents back into society. With the intensified government effort in curbing the drug problem, there is a need to provide additional infrastructure, i.e., at least one rehabilitation center in each province as mandated under the Dangerous Drugs Act of 2002.
The housing sector continues to provide decent shelter to the underprivileged while striving to keep up with growing housing needs and limited resources allotted to the sector.From 2011 to 2016, the National Housing Authority, Socialized Housing Finance Corporation, and Home Development Mutual Fund provided 730,181 socialized and low-cost housing units.Under Oplan Likas, 8,456 informal sector families (ISFs) were resettled in-city and 73,135 off-city, as of September 2016.
However, despite the efforts of key shelter agencies (KSAs), housing needs remains huge. For 2011 to 2016, an estimated 5.55 million households were in need of housing facilities. About 16 percent lived in unacceptable housingwhile another 8.83 percent were doubled-up households in acceptable housing. This is further expected to increase to 6.8 million during the period 2017 to 2022, which includes increase in inventory losses due to households affected by natural calamities and project-affected families due to expected accelerated infrastructure spending.
The major challenges faced by the housing sector include:
a) Lack of affordable land, which forced government to relocate communities off-city where opportunities are scarce or resort to in-city high-density mass housing. LGUs are also reluctant to accept more ISFs.
b) Limited appropriations for the sector
c) Cumbersome bureaucratic processes
d) Delayed or inadequate provision of basic and other services
e) Institutional limitations of national and local government entities to fulfil their respective roles in providing decent shelter.
LGU compliance with the Ecological Solid Waste Management Act (ESWMA) has been low and majority of local areas are still unserved by solid waste management (SWM) facilities or material recovery facilities (MRF).Increasing population and consumption also increased the generation of wastes, exacerbating the problems of inefficient collection and inadequate solid waste management (SWM) facilities. The country’s total solid waste generation is estimated at 40,000 tons per day or 14.6 million tons per year. Despite policy reforms, various financing windows, and legal action against non-complying LGUs, only 37 percent of all LGUshave complied with all aspects of the Republic Act 9003 (Ecological Solid Waste Management Act of 2000). Only 1,350 SWM plans were submitted for approval and review to the National Solid Waste Management Commission and the Department of Environment and Natural Resources (DENR) Environmental Management Bureau. Only 31.28 percent of barangays are covered by SWM facilities and 30.92 percent by materials recovery facilities. These are below the 2016 targets of 67.39 percent and 77.10 percent, respectively.
Nonetheless, the number of illegal disposal sites operating nationwide has decreased from 1,172 in 2010 to 546 in mid-2016. The remaining sites, which should have been phased out in 2006, are composed of 337 open dumpsites and 209 controlled disposal facilities.
The high capital investments associated with the establishment and operation of SWM facilities, the perceived low willingness of LGU constituents to pay for SWM services, and the LGUs’ lack of financial and technical capacity continue to hamper the full implementation of RA 9003. In addition, the sector continues to be challenged by:
a) Political factors that render the clustering sanitary landfills infeasible and unsustainable
b) Availability, suitability, and social acceptability problems in site selection for sanitary landfills
c) Technological constraints arising from existing legal issuances
d) Lack of or unconsolidated data on markets for recyclable materials
e) Limited awareness of communities and the general public on waste segregation and on recycling, recovery, and composting technologies
Facilities for managing health care and hazardous wastes remain inadequate and continues to be challenged by the absence of data needed to develop plans, policies, programs and projects to ensure that waste generators properly handle their wastes. Currently, only the waste management of DOH-registered facilities are monitored. Although the Philippine Inventory of Chemicals and Chemical Substances lists 44,600 chemicals for monitoring, as of latest data, only seven poison control centers, 108 DENR-recognized privately-owned hazardous waste treatment facilities, and 265 DENR-accredited hazardous waste transporters exist to cater to about 11,162 hazardous waste generators.
The prohibitive cost of available technologies continues to impede the health care waste management sector. For hazardous waste, insufficient capacity (technical experts on toxicology, infrastructure support for laboratory and disposal facilities, technical resources to detect hazardous waste, and trans-boundary smuggling) and lack of proper labelling for household chemicals (except for pesticides) inhibit proper management.
Prison facilities are extremely overcrowded and the number of inmates continues to rise.As of 2015, the population in 464 jails of the Bureau of Jail Management and Penology (BJMP) and 474 jails of the Philippine National Police (PNP) has reached a total of 94,320 detainees and prisoners. Meanwhile, as of November 2016, the seven prison facilities under the Bureau of Corrections (BuCor) held 41,400 prisoners. BJMP jails are 398 percent congested (based on the ideal capacity of 4.7 m2per inmate). Congestion is worse in Regions IV-A (720 percent), III (676 percent), IX (565 percent), I (549 percent) and XI (531 percent). Examples of overpopulated city and municipal jails include those of Malolos City; San Pedro, Laguna; and Gen. Trias, Cavite. Their congestion rates exceed 2,000 percent. Prison facilities under the BuCor, on the other hand, have an average congestion rate of 159 percent. Prison facilities with the worst rates are the Leyte Regional Prison (333 percent), Davao Prison and Penal Farm (250 percent), and the New Bilibid Prison (182 percent).
As shown in the Strategic Framework (Figure 19.5), infrastructure development supports all three pillars and intermediate goals of the plan, as it is vital to enhancing the social fabric, reducing inequality, and increasing the country’s growth potential. To this end, the overarching objective for the infrastructure sector in the medium-term is to accelerate infrastructure development and ensure that operations of infrastructure systems and facilities will be sustained.
Table 19.5shows the indicators and corresponding targets for the infrastructure sector.
Table 19.5 PDP Targets for Infrastructure Development
BASELINE END OF PLAN
YEAR VALUE TARGET
Societal goal: Foundation for inclusive growth, a high-trust society and a globally competitive knowledge economy created
Public infrastructure spending increased, in % GDP 2016 5.1 7.4
International Road Roughness Index in national primary roads
2015 4.62 3.0 achieved
Optimal capacity in train systems achieved, in passengers per
2015 5-8 4-8 square meter (sq.m.)
END OF PLAN TARGET
Philippine National Railways
(optimal capacity = 6 passengers per sq. m.)
Light Rail Transit Line 2
(optimal capacity = 4 - 5 passengers per sq. m.)
Air passenger traffic increased, (international and domestic), in number of passengers
Air cargo traffic increased, (international and domestic), in MT
Number of round-trip international flights increased
Number of round-trip domestic flights increased
No. of shipcalls increased
No. of passengers transported via sea increased
Cargo shipped increased (international and domestic), in MT
Container traffic increased, in twenty-foot equivalent unit (TEU)
No. of vehicles carried by RORO vessels increased
Water and Sanitation
Percentage of HHs with access to safe water supply increased
Percentage of HHs with access to basic sanitation increased
Ratio of actual irrigated area and area required for agricultural development increased
Cropping intensity increased, in percent
Power requirements met, maintained above 100 percent
= available capacity/(total peak demand + required reserve)
Available capacity supply increased, in megawatt (MW)
HHs with electricity increased, in percent
Energy intensity (primary energy) reduced, in tons of oil equivalent per PHP million
Amount of displaced gasoline increased, in ML (for bioethanol)
Amount of displaced diesel increased, in ML (for biodiesel)
Conserved annual amount of electricity and fuel increased, in kilotons oil equivalent
END OF PLAN TARGET
Classroom to pupil ratio improved
Total Number of Primary Schools (2015) = 38,657
Junior High School
Total Number of Secondary Schools (2015) = 8,082
Senior High School
Access to health services improved
Number of Barangay Health Stations established
Rural Health Unit/Urban Health Center established
Number of socialized housing units provided
National Housing Authority
Socialized Housing Finance Corporation
Home Development Mutual Fund
Percentage of barangays with access to Sanitary Land Fills
Number of barangays with access to Sanitary Land Fills
| || || || || || || || || |
Based on the strategic framework, there are four major strategies for the infrastructure sector: (a) increase spending on public infrastructure; (b) implement strategic infrastructure for the various infrastructure subsectors; (c) ensure asset preservation; and (d) intensify R&D on technologies that are cost-effective over the whole project life-cycle. These strategies are vital towards achieving the overall sectoral objective for the infrastructure sector and the corresponding targets set over the medium-term.
Figure 19.5 Strategic Framework for Infrastructure Development
Subsector Outcome 1: Spending on public infrastructure increased
Undertake strategic measures to ensure that the annual public spending on infrastructure will be further increased to at least 5.3 percent of GDP in 2017 and possibly to 7.4 percent of GDP in 2022. To achieve this, strategic measures will be undertaken:
Enhance the linkage of the planning, programming, and budgeting processes of the government.Agencies and other instrumentalities of government will identify priority infrastructure programs/activities/projects (PAPs) that are responsive to the objectives of the Philippine Development Plan (PDP). Appropriate policies will be introduced, including among others, integrated provincial level plans and regulatory reforms.
An investment program based on an optimal mix of government financing, official development assistance, and private capital will be undertaken. The investment program will carefully consider the application of new construction methodologies.
The Three-Year Rolling Infrastructure Program (TRIP) will be adopted to optimize utilization of agency budget allocations for the implementation of priority PAPs. Given a forward-looking infrastructure program, agencies can then undertake preparatory activities, including ensuring the availability of right-of-way, ahead of the project start. This will address the problems of underspending, expenditure realignments and cost overruns.
Encourage private sector participation. Cognizant of the private sector’s efficiency and innovativeness, the government will improve its PPP Program as a vehicle for private sector participation in financing where appropriate, the construction, operation and maintenance of infrastructure projects. Government will address the bottlenecks in PPP planning and implementation, and pursue reforms to enhance the business environment that can further encourage private sector participation anchored on promoting transparency and competition.
Formulate and update master plans and roadmaps. Master plans are necessary to ensure that the implementation of programs and projects are harmonized and well-coordinated.This entails providing assistance in financing potential infrastructure investment initiatives under established master plans and roadmaps. Relatedly, infrastructure development plans must be compatible with local land use and development plans to promote synergy and maximize strategic impact among efforts across all levels of government. Appropriate policies, including integrated provincial level plans and regulatory reforms will also be developed and implemented.
Improve government administrative systems and procedures on project implementation. With the intended increase in spending for infrastructure, the capacities of implementing agencies will also be increased with respect to project development and preparation. This will ensure quality-at-entry of proposals at appraisal and approval stage. Government administrative systems and procedures will also be improved, in addition to ensure the timely release of sufficient funds to implement projects.
To ensure the quality of contractors, the guidelines on contractors’ performance and compliance with the Contractor’s License Law will be strictly enforced. For major infrastructure projects, a round-the-clock work schedule will be implemented.
Subsector Outcome 2: Strategic infrastructure implemented
The efficiency of the transport sector will be enhanced to sustain economic growth and increase competitiveness by providing adequate, accessible, reliable, and safe access for people and goods across the country, neighboring regions, and the world.
There is a need to enact a National Transport Policy and to create independent regulatory bodies for the railways, airports and seaports, among others, to establish a more streamlined transport sector that is able to efficiently and effectively carry out the identified development strategies.
Roadmaps and evidenced-based studies should guide the rational development of an intermodal transport infrastructure network, taking into consideration compatibility, economic feasibility, comparative advantages, and linkages of desired transportation modes. The consolidation of baseline data and information relative to the national transport network is deemed critical in this plan of action.
With emphasis on improved connectivity and enhanced mobility, multi-modal transport terminals will be established, complete with ancillary facilities to provide smooth transition for passengers and freight from one mode to another. The fare collection systems will be integrated and stored value cards or similar electronic media will be used to ensure maximum convenience for passengers and enable easy transfer between modes.
To ensure that the transport sector is able to support economic development, the physical state of existing infrastructure will be maintained at a level that generates the optimal economic outcomes while the transport network is being expanded to reach the rest of the country and the world. Projects that are implemented, especially those identified as flagship projects, will be closely monitored to ensure the quality and timely delivery of output.
New economic centers as identified in the NSS will be supported with transport infrastructure and services in accordance with land use and urban planning methodologies (e.g., transitoriented development, township approach, high density residential development) and other sustainable construction technologies that have been proven effective in livable cities. Department of Public Works and Highways (DPWH) Design Guidelines, Criteria and Standards 2015, which incorporates resilient design, will be maximized to address the impact of climate change on all transport infrastructure. Also, the Green Building Code, which will help protect the environment, will be strictly followed by promoting resource use efficiency and environmentally friendly designs/technologies.
Transport agencies will continue to forge convergence programs with concerned agencies to ensure that economic sectors are provided with adequate transport infrastructure support and services. A convergence program with the industry and trade sector in underdeveloped rural areas will be rolled out. Agricultural areas will continue to be supported through the provision of farm-to-market and farm-to-mill roads, according to the standards set for both design and construction.
To support development in Mindanao, road projects under the Mindanao Logistics Infrastructure Network will be pursued along with the implementation of the Improving National Roads for Inclusive Growth in Mindanao Projects in Western Mindanao. The capacity of the BIMP-EAGA road network will also be increased.
It is important to secure broad-based support for the infrastructure program. There should be general recognition that infrastructure support is a crucial input to achieving the PDP targets, but that there is bound to be some public inconvenience while the project is being implemented. Efficient coordination mechanisms among the different transport agencies and those representing the interests of other economic sectors, as well as stakeholders and the general public, will be put in place. For instance, concerning road projects, there will be greater coordination among DPWH, telecommunications companies, WDs, electric cooperatives or distribution companies on projects, particularly on road widening that requires the transfer of affected utility lines. Such coordination will extend to all LGUs to ensure that local plans and programs are aligned with the national agenda. LGUs and metropolitan agencies will also need to take on more responsibility and accountability for traffic and public transport outcomes.
Access and other support facilities for marginalized sectors (senior citizens, persons with disabilities, women, etc.) will be integrated in the design of transport infrastructure projects.
In the short term, road-based transport will be improved by addressing traffic congestion through “engineering, enforcement, and education”; while in the long-run, the road network will be upgraded and expanded to the highest quality standards.
Appropriate traffic management measures will be enforced and updated to remain responsive to prevailing situations. Traffic engineering solutions, such as the use of intelligent transport systems (e.g., signalized intersections, advanced detection systems, incident detection), will be installed, particularly in urban areas.
The coverage of the high-standard highway operations will extend from 200 km to 300 km radius from the National Capital Region and eventually stretch across Visayas and Mindanao. Inter-island bridges and bridges across smaller bodies of water will form part of the road network when deemed viable. Where necessary and appropriate, bypasses, diversion roads, flyovers, interchanges and underpasses will be constructed (e.g., using tunnel technologies) and existing roads will be improved and widened. Anti-overloading measures including penalties and putting up additional weighbridges and portable weighing devices should be strictly enforced and strengthened to prevent the rapid deterioration of roads. To ensure compliance with international standards on vehicle safety and environmental impact, the Motor Vehicle Type Approval System and Motor Vehicle Inspection System will be implemented.
For a more efficient use of road infrastructure, the movement of people and goods will be prioritized over private vehicles. High quality public transport modes will be pursued so that commuters will prefer public over private vehicles. Non-motorized transport (e.g., bicycle and pedestrian infrastructure) will be improved and expanded to increase mobility, accessibility and safety and to encourage more walking and cycling trips.
Road-based transport initiatives, such as travel demand management, public transport reform and fleet modernization, route rationalization, environmentally sustainable urban transport systems, and bus rapid transit will be implemented, ensuring interconnectivity among different modes and landuses.
To highlight that mobility is a basic need requiring service and quality standards, a commuters’ charter or bill of rights will be developed.
The desired shift from private to public transport, with emphasis on mass transport, will be encouraged by ensuring the accessibility, availability, affordability, adequacy, convenience, and reliability of rail transport and bus rapid transit (BRT) systems.The rail network will be expanded by developing new lines in the major island regions. Development planning for the rail sector will take into consideration the plans for road-based transport infrastructure, especially in cases where projects will utilize the same right-of-way. Consistent with the objective of moving more people and cargo rather than vehicles, priority on the right-of-way will be accorded to rail-based transport over road-based transport.
To address the concern and to avoid future problems of connectivity and interoperability of railway systems, common rail standards, such as the policy of using standard gauge (1,435 mm) for projects in the pipeline and for all rail projects, will be implemented.
The policies and guidelines on the procurement activities in the railway sector will be customized to ensure the availability of highly-specialized spare parts and supplies.
The government will exhaust all possible means to improve the operational efficiency of airports and to address constraints to optimal capacity utilization. In particular, strategies will focus on decongesting air traffic serving the greater capital region, such as building a new international airport, guided by an optimal airport strategy. . In the interim, movements in both the land and air facilities at the Ninoy Aquino International Airport will be optimized (e.g., by transferring general aviation to other airports and constructing a rapid exit taxiway). Development plans for CRK will be fast tracked including the establishment of a fast and direct access to Manila (e.g., rail system providing non-stop and commuter services).
To serve the increasing passenger demand, the ongoing and planned improvements of regional airports will be fast tracked. Regional airports will be installed with night landing capabilities to help diffuse air traffic over a longer period of the day.
To improve the efficiency of airports, procedural measures which involve airspace management and adopting collaborative decision making among the air traffic control, airlines, and ground handlers will be implemented. Runway capacity will be optimized by cutting aircrafts’ occupancy times. Available airspace will be maximized by reducing restrictions and making procedural improvements to tighten intervals between aircraft movements. Unimpeded traffic flow of passengers and freight will be ensured through adequate and conducive access to all airports. All these will be undertaken through the procurement of the state-of-the-art technology and services such as ground radar movement and collaborative decision making software.
Port facilities will be improved to ensure that inter-island shipping, including a stronger RORO network, will remain a viable option for transporting people and cargo. Breakwater facilities will be developed for wave protection and to prevent ports from deteriorating. International standards will be followed in the expansion of port facilities. In addition, navigation channels to accommodate larger vessels will be developed to ensure the sustainability and efficiency of ports. These approaches will yield economic gains through lower transport cost, increased lifespan of products, and more profits and job opportunities, especially for fishing communities.
The government commits to optimize the utilization of existing ports. A more direct connection between Manila and Batangas ports will be explored and co-loading (modified cabotage) will be implemented to encourage shipment between domestic ports. Existing dry ports will be improved and new ones will be built to provide support to manufacturers, importers, and exporters. These will be done by reducing vehicle turnaround time, thus, accelerating trade movement. Logistics hubs will be developed where applicable to connect industrial and manufacturing zones as well as agro-industrial areas, to the major port areas.
Further, the BIMP-EAGA Transit Transport Route in Mindanao will be improved in terms of capacity to facilitate swift intra-EAGA transport.
Safety and security of the public transport system will be improved by adopting a security structure that is universally accepted to eradicate activities that may cause injury, death, loss, or damage to property.To this end, an independent body that will investigate transport accidents and provide transport safety recommendations will be created. In the interim, the Office of Transportation Security will continue to ensure public safety through inspections and evaluation of security plans of public transport terminals while concerned agencies will ensure that projects are designed with appropriate safety standards. Procurement and installation of advanced security systems for land-based terminals, airports and seaports will be pursued.
PCG, on the other hand, will continue to pursue its capability building programs to ensure presence and control over the country’s vast maritime domain. New floating and air assets will be procured and a sufficient well-trained personnel complement will be provided. To serve the growing tourism and maritime industry, new bases or stations will be developed in strategic locations.
The primary strategy for the water resources sector is to address its fragmented structure through the creation of an apex body and the formulation of masterplans that will foster coordinated efforts across the country.Such apex body will institutionalize a science-based river basin approach that integrates the principles of integrated water resource management.
The National Water Resources Board and the National Economic and Development Authority (NEDA) will strengthen coordination and linkages with partner institutions (i.e., LGUs, national government agencies, government-owned and controlled corporations, nongovernment organizations, private investors, and academe) in all aspects across the different subsectors toward achieving adequate access and sustainable water resources management. The government will enhance the capacities of concerned entities in developing and managing water-related projects. Local or regional agents will be deputized and capacitated to expedite the processing of water permits. Existing laws and regulations on water resources will be reviewed and strengthened.
Surface water source development for water-critical areas will be prioritized. Groundwater recharge system in the development of the surface water source for critical areas will be incorporated wherever possible in accordance with prescribed standards. Use of eco-efficient water infrastructure to address water demand and supply mismatch will continue to be promoted. Measures to promote efficient water utilization will be explored.
Institutional reforms will be pursued to encourage and guide investments in WSSS.The creation of an independent economic regulatory body for the WSSS subsector will be pursued for a more transparent and consistent regulation. A unified financing framework with a definite scope and streamlined process will be established to consolidate and make more accessible all available financial resources to support the WSSS projects of all water service providers. Further, a WSSS master plan will be prepared to guide the concerned implementing agencies to attain universal access in the sector. To improve the response from LGUs and WDs, plans to broaden the scope of the NSSMPwill be supported. The government will assist WDs in expanding the coverage of reliable water service at affordable rates and reducing NRW while ensuring economically-viable operations.
To ensure water security in water-critical areas and in Metro Manila, new water sources will be developed, watersheds critical to existing and potential water sources will be protected, technologies in water supply will be explored, and sewerage and sanitation infrastructurewill be expanded. For Metro Manila, Angat Dam and all its accessory structures will be maximized and maintained.
An irrigation master plan to set the direction for irrigation development and a framework for capital and O&M financing of irrigation projects will be formulated.The overall plan and framework will aim to: (a) institutionalize a policy providing government subsidy for capital investment and O&M of irrigation facilities; (b) strengthen the capacity of personnel; (c) strengthen the implementation of the Irrigation Management Transfer Program; (d) review and rationalize irrigation service fees; (e) establish and rehabilitate small-scale and communitybased irrigation projects in areas not served by national irrigation systems (f) prioritize small over large irrigation projects and rehabilitation over construction of facilities; and (g) conduct complete technical work and site validation in the project planning stage to eliminate the causes of delays in project implementation.
Flood management initiatives will continue to be undertaken.These include: (a) upgrading of engineering standards for the design and O&M of flood control works; (b) establishment of a database on river information and updating of baseline data on delineation of flood-prone areas; (c) completion and updating of flood control and drainage master plans and development plans for the 18 major river basins and other critical principal river basins, and (d) strengthening of the flood management capabilities of and coordination among concerned agencies (e.g., DPWH, LGUs).
The government will support the required massive investments and fast track the implementation of infrastructure projects to improve power generation.In particular, it will:
a) Accelerate and streamline the business processes for energy projects
b) Revisit roles, particularly of government, in the power industry
c) Expedite the implementation of remaining policy mechanisms under the Renewable Energy Act of 2008 (e.g., renewable energy market, renewable portfolio standards) to further encourage development
d) Declare energy projects as projects of national significance to expedite the timely completion of energy projects
e) Strictly monitor compliance to the DOE Department Circular DC2015-07-014, “Guidelines for Maintaining the Share of Renewable Energy in the Country” and Department Circular DC2015-03-0001, “Promulgating the Framework for the Implementation of Must Dispatch and Priority Dispatch of Renewable Energy Resources in the WESM” to address the intermittence of renewable energy
f) Harmonize the transmission development plan with renewable energy targets, and address potential grid reliability concerns with the scaling of variable renewable energy resources
g) Support smart grid development
h) Conduct technical audit of power plants in collaboration with professional engineering associations
i) Establish the commercial operations of the WESM in Mindanao
Table 19.6 Committed and Indicative Capacity per Grid, as of July 2016
INSTALLED CAPACITY* (MW)
COMMITTED PROJECTS 2016-2020 (MW)
INDICATIVE PROJECTS 2016-2020 (MW)
* Capacity mix as of June 30, 2016 sourced from DOE
* Based on committed and indicative projects as of July 2016
An optimal energy mix will be studied based on appropriate allocation of capacities (i.e., baseload, intermediate, peaking) and technologies (i.e., renewable energy, nuclear, coal, oil, gas, etc.). The study will propose a fuel mix policy for power generation that takes into consideration the resulting electricity cost, externalities, and technical limitations. Said optimal mix is expected to address the challenge of securing greater system stability and security of supply to meet power systems demand, as well as to increase the country’s system reserve requirement to 25 percent of peak demand (from the current 17 percent).
Competition will be encouraged to drive down electricity costs.Thus, the government will:
a) Accelerate the evaluation of retail electricity supplier license application to broaden the list of suppliers in the market
b) Accelerate the privatization of the power plant assets of the Power Sector Assets and Liabilities Management Corporation, which include the contracted capacity of generating plants and independent power producer plants
c) Strictly monitor compliance to or refinement of the following resolutions of the Energy Regulatory Commission:
- Resolution No. 17, series of 2013 adopting and approving the rules and procedures to govern the monitoring of reliability performance of generating units and the transmission system
- Resolution No. 20, series of 2014 adopting and establishing a pre-emptive mitigation measure in the WESM
- Resolution No. 04, series of 2015 adopting the procedure in the reporting by generation companies of outage events affecting their generating facilities
- Joint Resolution No. 03, series of 2015 setting the offer price cap and offer floor price in the WESM
d) Rationalize charges and taxes for electricity consumption
The government will also explore the expanded utilization of the Malampaya funds to cover universal charges for stranded contract cost and stranded debts, rehabilitation of government energy infrastructure, aside from financing the energy resource development programs and projects of the government.
The government will pursue the development of the natural gas industry. The creation of an enabling legal and regulatory framework for the natural gas industry will be prioritized to set the directions for the formulation of a natural gas development plan to guide investments in the sector. In pursuit of the APG and TAGP, the 121 km Batangas-to-Manila gas pipeline project is proposed to be the first natural gas pipeline in the country. It is expected to supply natural gas to targeted market areas situated in the high growth areas of Batangas, Laguna, Cavite, and Metro Manila. Moreover, liquefied natural gas terminals will be constructed in Quezon, Batangas, and Bataan. New oil and gas fields to replace the depleting Malampaya natural gas reservoir will be explored.
The government will ensure that the needed transmission facilities are implemented on time to efficiently transmit electricity to various load centers and interconnect the entire grid. For Luzon, the transmission network will be improved to support power generation capacity additions in the Quezon, Bataan, and Zambales areas. They will complement the establishment of a transmission loop with additional drawdown substations within Metro Manila. Furthermore, the power grid in the island of Mindoro will be interconnected to the Luzon grid through Batangas. For Visayas, the three-stage implementation of transmission backbone from Cebu to Panay Island will ensure full dispatch of both conventional and renewable energybased power plants. In addition, the interconnection of the Cebu-Bohol grids will increase the transmission capacity as well as improve the reliability of supply to Bohol Island. For Mindanao, the 230 kilovolt Mindanao backbone from Lanao del Sur in the north to Davao del Sur in the south will be fasttracked. The Visayas-Mindanao interconnection will be prioritized to increase the reliability of the Mindanao power systems and harness and enable capacity sharing of reserves and exchange or delivery of energy during periods of shortfall or surplus in power supply between grids.
The government will prioritize the provision of electricity services to the remaining unelectrified off-grid, island, remote, and last-mile communities to achieve total household electrification by 2022.To achieve universal access to electricity, the government will endeavor to:
a) Ensure the appropriateness, feasibility, and sustainability of projects involving new or emerging technologies for missionary electrification
b) Tap electric cooperative regional technical evaluators to complement the manpower of the National Electrification Administration (NEA) in facilitating the evaluation of electrification projects
c) Provide technical and financial support to NEA and electric cooperatives in total electrification
To reduce electricity rates, the government will:
a) Strengthen the competitive selection process in securing bilateral power supply contracts
b) Remove VAT on system loss charges
c) Revisit the rules and regulations on cross-ownership between retail electricity suppliers and generation companies or distribution utilities to foster transparency and promote fair competition in the implementation of the retail competition and open access
d) Restudy Section 43(f) of Republic Act 9136 (Electric Power Industry Reform Act) on the pricing methodology
e) Encourage renewable energy development in missionary areas to shift away from expensive diesel fuel and reduce universal charge for missionary electrification
f) Foster a more conducive business and regulatory environment to allow the entry of more power generation investors
g) Revisit government’s role in the sector, particularly in the provision of reserves
To improve energy efficiency, the government will continue the implementation of the EEC program that is aimed to support economic growth and environment protection.To achieve this, the government needs to do the following:
a) Push for the enactment of the EEC bill to promote demand-side management and incentivize energy efficiency projects
b) Impose minimum energy performance standards for energy-intensive industries and energy-consuming products
c) Implement policy allowing government agencies to engage the services of ESCOsxx
d) Implement the 2016-2020 EEC Action Plan and the Alternative Fuels Roadmap to provide incentives for the implementation of energy efficiency projects
The mandated biofuels blending will be reviewed with due consideration to the impact on prices, farmer incomes and environmental protection.Several undertakings under the Alternative Fuels Program, (such as the Auto-LPG Program and the Natural Gas Vehicle Program for Public Transport), will also be continued.
With the stronger recognition of ICT as a vital tool for nation-building and good governance, the government will ensure that the country’s ICT infrastructure and services are available, accessible, reliable, trusted and affordable. The government will be guided by the following priority strategies:
Expand the deployment of ICT infrastructure and address the gaps in digital connectivity. To create economic opportunities, the government will facilitate the faster and strategic rollout of ICT infrastructure in order to meet the growing demand for structures and services, particularly in underserved areas. Specifically, it will:
a) Work with the LGUs to streamline and harmonize government requirements and processes on permits, clearances, and fees issuances. This will be done by establishing a one-stop shop offline and online facilities that will encourage infrastructure investments and facilitate faster roll-out.
b) Facilitate and encourage infrastructure sharing and co-use by leveraging existing government infrastructure assets and forging partnerships with utility operators, and hence, potentially reducing associated costs in infrastructure deployment
c) Ensure the efficient utilization and management of the radio frequency spectrum to support the growth of various wireless ICT applications and services
d) Leverage the use of emerging technologies capable of establishing connection to the countryside and isolated islands
e) Explore the feasibility of creating a universal access fund (UAF), which may be used for the development of ICT infrastructure in the unserved/underserved areas
f) Formulate necessary master plans, such as the DTTB migration plan, national broadband plan, national cybersecurity plan, and other successor ICT master plans to provide the overall policy direction and guide all infrastructure roll-out and development interventions.
Continue to enhance the country’s e-government system as a vital tool for good governance.The government will harmonize and coordinate all ICT initiatives to optimize all government ICT resources, encourage information and resource-sharing and database-building, and ensure the development and protection of an integrated government ICT infrastructure and networks.
Institute reforms in the policy and regulatory frameworks.With the rapid advancements and convergence of technologies, the government will pursue significant reforms in the existing policy and regulatory frameworks, including strengthening the roles of DICT and the National Telecommunications Commission (NTC) in upholding competition in the ICT market, and promoting the innovative use of ICT, such as in education and human capital development.
The effective implementation of social infrastructure projects provides conducive access to basic social services necessary for human capital development.
Address the existing infrastructure deficit in the education sector to make the classroom environment more conducive to learning.The Basic Education Facilities Funds (BEFF) will be expanded, especially in areas where they are most needed. School buildings will be provided with complementary facilities such as power, ICT, water and sanitation facilities.
An open and comprehensive database of education infrastructure statistics will be developed and updated regularly by DepEd to aid in monitoring and evaluation activities. This will enhance planning, programming, and budgeting for basic educational facilities.
The reconstituted Joint DepEd-DPWH Technical Working Group on Basic Education Facilities will target the prompt construction of school buildings, starting with 47,492 new classrooms in 2017.
Existing plans and programs on the implementation of health facilities (e.g., Philippine Hospital Development Plan, Health Facilities Enhancement Program [HFEP]) will be expanded in the Philippine Health Facility Development Plan (PHFDP) to ensure the continued provision of health services, which would include the following, among others:
a) Upgrade and expand DOH hospitals and medical centers, provincial, district and municipal hospitals, and other national government agency hospitals and health facilities
b) Upgrade, expand, and construct rural health units, barangay health units, blood service facilities, psychiatric facilities, reference laboratories, quarantine stations
c) Construct emerging and re-emerging disease reference centers, vaccine production facilities, biosafety laboratories
d) Expand and construct treatment and rehabilitation centers
e) Upgrade and expand sanitaria facilities
The PHFDP will give LGUs the primary responsibility of identifying lands best suited for the construction and expansion of health facilities. Further, policy reforms that will allow income retention of health facilities for the operation and maintenance of all government health facilities will be pursued.
Secure tenure in affordable, safe and disaster-resilient housing will be provided to underprivileged and homeless families.The following strategies will be pursued by the Housing and Urban Development Coordinating Council (HUDCC), together with KSAs and LGUs, to ensure the timely provision of decent shelter to the underserved:
a) Strengthen sectoral governance. The creation of a strong and well-resourced Department of Housing and Urban Development that will rationalize the structure and functions of each housing and urban development agencies will be pursued.
b) Reduce processing time to improve rate of housing construction.To hasten the issuance of necessary permits, certifications, and licenses on housing and land development, the processing time across the KSAs and other concerned agencies will be reduced.
c) Promotion of housing and building technology. Innovative, cost-efficient and indigenous technology (e.g., pre-fabricated housing components, concrete interlocking blocks) shall be promoted to fasttrack housing construction and reduce cost. Current innovations in green technology will be considered in the structural design of housing units.
d) Enhance the coordination for the implementation of infrastructure programs and projects. For faster implementation of infrastructure projects, coordination among infrastructure implementing agencies and KSAs will be enhanced, where HUDCC and KSAs are informed of the need for relocation sites for affected ISFs even at the planning stage of the proposed infrastructure projects. A national resettlement policy framework will be adopted to serve as basis of resettlement action plans for proposed infrastructure projects. In addition, HUDCC will be consulted as regards the completeness of resettlement action plans before submitting a project for NEDA Board approval.
e) Prioritize on-site and in-city relocation. To emphasize the principle of maximum retention and minimum dislocation of beneficiaries who will be permitted access to opportunities and services (e.g., livelihood, schools, hospitals, etc.), off-city relocation will be considered as a last resort when moving ISFs living in danger areas or those affected by infrastructure projects. To this end, high-density mass housing and vertical developments for socialized housing will be promoted.
f) Provide for the needs of the vulnerable. Cultural aspects, gender-responsiveness, and accessibility will be considered when providing housing for different groups. Furthermore, housing designs will be gender-responsive, elderly- and persons with disability-friendly.
LGUs will be provided assistance in complying with the requirements under the ESWMA. There will also be public awareness programs to promote proper waste management; investments in relevant technologies will be undertaken to improve solid waste management throughout the country.The DENR-Environmental Management Bureau, in coordination with National Solid Waste Management Commission and relevant stakeholders, will implement strategies in support of RA 9003.
a) Promote clustering of LGUs for Common SWM facilities and services to take advantage of economies of scale
b) Revisit the provisions of RA 9003, and make necessary amendments, for the creation of
SWM units and appointment of environment and natural resource persons in each LGU
c) Fully utilize the national ecology centers and regional ecology centers as possible venues for trainings or education in integrated SWM
d) Provide an incentive mechanism to local recycling industries to encourage their continued participation in the local SWM system
e) Adopt alternative technologies, including waste-to-energy, as SWM solution, considering institutional, legal, and technical limits
f) Intensify the promotion of segregation-at-source by engaging local communities to participate in “learning by doing” programs, information and education campaigns and social marketing programs on SWM
g) Operationalize SWM fund and assess the reinstitutionalization of the NG- LGU cost sharing scheme for SWM
Enhance the capacities of relevant agencies in order to better monitor and manage health care and hazardous wastes.To address the challenges in the health care sector, the following will be pursued:
a) Establish a database of health care and hazardous waste facilities
b) Promote information exchange on available low-cost technologies for health care and hazardous waste management
c) Expand and accelerate assessment of chemical risks
d) Harmonize and improve labelling of chemicals
e) Strengthen national capabilities and capacities for management of toxic chemicals and substances
f) Strengthen the capacity to prevent illegal entry of toxic and dangerous products
Improve the deteriorating living conditions of inmates by addressing overcrowding in prison and jail facilities as well as the insufficient provision of basic services (e.g., potable water and proper sanitation facilities).Toward this end, the government will endeavor to undertake the following:
a) Construct new prison facilities in underserved regions to decongest prison population in existing facilities
b) Reduce congestion by the upgrading, expanding, and building of district, city and municipal jails and female dormitories
c) Improve living conditions for detainees and prisoners by providing basic infrastructure services such as: adequate and clean water supply; hygienic sanitation facilities; and, hospital or infirmaries on prison grounds.
Subsector Outcome 3: Asset preservation ensured
Infrastructure investment, sustainability, safety, and resilience are components of an integrated response to the improved performance of the infrastructure sector. The government will continue to strengthen its role in coordinating infrastructure management and place greater emphasis on sustainability, safety, and resilience. In particular, this plan highlights a range of specific measures that the government will undertake to achieve better outcomes:
Increase technical and financial capabilities for operations.Improved infrastructure relies on having effective public policies, institutions, and legislation. Within the objective of improved governance and strengthening of finances of authorities, the government will: strengthen the technical, management and financial capabilities of government agencies; rationalize national and local level planning; and improve accounting, compliance mechanisms, and reporting systems.
To maintain the emphasis on technical, management, and financial capacity building as an integral part of development assistance projects, government will strengthen regulatory oversight and personnel capacities in various departments for infrastructure planning, management, and operation. Value engineering and value analysis principles at various stages of project development will be mainstreamed to optimize the use of funds allocated for infrastructure development. To further reduce the occurrence of cost overruns, the government will formulate, use and mainstream technical manuals or guides, such as the DPWH Standard Cost Estimation Manuals in estimating project cost. Also, a Philippine Railway Institute will be established to serve as the country’s center for skills training, safety management, certification or licensing, and technology innovation.
To further develop regional areas, the national government will spearhead efforts to improve the allocation of infrastructure budget and the spatial location of infrastructure projects. Various infrastructure information databases will be developed to aid government entities in formulating, updating, and implementing infrastructure plans and programs.
Incorporate climate change adaptation and disaster resilience measures.Considering that the Philippines is highly vulnerable to disasters and effects of climate variability, the operational life of infrastructure will be secured. Disaster risk reduction and climate change adaptation strategies will be considered to ensure resilient infrastructure facilities. For instance, disasterresilient safety network of feeder ports that will safeguard secured and smooth logistics in times of disaster will be established on top of its rehabilitation and improvement. Moreover, the government will formulate and implement a national master plan for flood and drainage, which will outline concrete projects for the different flood-prone and affected areas in the country.
Ensure the security of infrastructure facilities.In response to risks that threaten essential infrastructure services, the government will enhance the security of the country’s infrastructure through proactive and coordinated efforts among government agencies. For instance, global navigation satellite system technologies, e.g., global positioning system, will be promoted and adopted in achieving seamless and green inter-modal transportation. These will enhance safety, security, and sustainability; improve supply chain connectivity; and strengthen capabilities for disaster-preparedness and emergency response. xx
Sector outcome 4: Intensify infrastructure-related research and development (R&D) intensified
To improve the infrastructure sector, it is imperative that R&D expertise is institutionalize. The government will pursue programs to develop R&D on, among others, renewable energy and technologies to meet the growing need for clean and affordable energy; cost-efficient technologies for wastewater and solid, hazardous, and health care wastes management for the protection of public health and the environment; new transportation technologies; climate change- and disaster resilient infrastructure designs; emerging ICT applications or platforms; and new methodologies for gathering and managing science-based data. In addition, establishment of R&D facilities will be supported.
The following set of priority legislative and policy interventions are deemed critical in realigning substantial impact on the overall performance of the infrastructure sector, such as, among others, improvements in the existing institutional and implementation capacities of the various agencies involved in infrastructure development planning and policy formulation.
Table 19.7 Legislative Agenda
PROPOSED LEGISLATION RATIONALE
Introduce reforms to address bottlenecks in PPP Amendments to the Build-Operate-Transfer Law and project implementation, further encourage private
its IRR sector participation, and keep the policies attuned to
the changing business environment.
Help achieve a safe, secure, efficient, competitive, dependable, integrated, environmentally sustainable and people-oriented Philippine transportation system
by setting policies that will serve as boundary Enactment of a National Transport Policy conditions to guide all entities involved in the transportation sector in the exercise of their functions.
This policy will provide the parameters for planning at the agency level, e.g., the formulation of the “Philippine Transport System Master Plan”.
Addresses the weak and fragmented institutional setup of concerned transport agencies by creating respective
Enactment of a Law Creating Independent independent regulatory bodies for the railway sector
Regulatory Bodies for Railway and Maritime and maritime transport sector, consistent with the
Transport Sectors National Transport Policy. The existing dual roles of
some agencies acting as both operator and regulator of transport facilities will be effectively eliminated.
Places all transport safety and security matters under a single independent body that will, among others, Enactment of a Law Creating an Independent Body investigate transport accidents and provide transport for Transport Safety and Security safety recommendations, thereby eliminating conflicting and overlapping functions of existing agencies or entities.
Addresses the weak and fragmented institutional setup
Enactment of a Law Creating an Apex Body for the of the water resources subsector with the creation of an Water Resources Sub-sector apex body that will act as the single lead agency to
oversee and coordinate overall policy, project and
Harmonizes the regulatory practices, processes, fees
Enactment of a Law Creating an Independent and standards on water supply and sanitation while
Economic or Financial Regulator for Water Supply addressing the overlapping functions or jurisdictions of and Sanitation existing regulatory entities.
PROPOSED LEGISLATION RATIONALE
Amendments to RA 9136, the Electric Power mprove the implementation of the law’s provisions and enhances its effectiveness to address high cost of
Industry Reform Act electricity, alleged market collusion, and insufficient
Provides an enabling legal and regulatory framework
Enactment of an Enabling Law for the Natural Gas for the natural gas industry to guide investments in the
Enactment of a Law Declaring Energy Projects as Expedites the timely completion of energy projects to Projects of National Significance help cushion the impact of high power rates
Enactment of a Law on Energy Efficiency and Promotes demand-side management and incentivizes
Conservation energy efficiency projects.
Provides an enabling legal and regulatory framework to Enactment of an Enabling Law to Utilize Malampaya expand the utilization of Malampaya funds to cover
Funds, otherwise known as the Energy Resource universal charges for stranded contract cost/stranded
Funds debt, and rehabilitation of government energy
Makes the law more responsive to technology advancements and changes in the market landscape,
Amendments to the Public Telecommunications considering convergence of technologies; and also
Policy Act of the Philippines
strengthens the roles of DICT and NTC in fostering and upholding competition in the market.
Addresses the weak administrative, organizational and institutional dynamics of LGUs in implementing SWM programs or projects.
Amendments to RA 9003, the Ecological Solid
The proposed amendments may include, among
Waste Management Act
others, the mandatory creation of a local Environment and Natural Resources offices and identification of dedicated focal SWM units with corresponding organization structure, powers and functions.
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Ensuring Ecological Integrity, Clean and Healthy Environment
The environment and natural resources (ENR) sector plays a critical role in the country’s development. It provides the following ecosystem services: (a) provisioning(e.g., food, raw materials, freshwater); (b) regulating(e.g., local climate and air quality, carbon sequestration and storage, erosion prevention); (c) supporting(e.g., habitats for species, maintenance of genetic diversity); and (d) cultural(e.g., recreation, tourism). These ecosystem services support the growth and performance of other sectors, including agriculture, fisheries, industry and services, and provide livelihood, especially to resource dependent communities.
Provision of these indispensable services, including the maintenance of a healthy and good quality environment, has been increasingly compromised due to mismanagement, misuse, and overexploitation of the country’s ENR. It is critical that environmental health is improved and integrity ensured to support the accelerated economic growth that the administration aims to achieve, strengthen resilience against the impact of climate change (CC) and disasters (natural and human induced),and improve the welfare of the poor and marginalized members of society.
The Philippine Development Plan (PDP) 2017-2022 includes more aggressive strategies to rehabilitate and restore degraded natural resources, and protect the fragile ecosystems while improving the welfare of resource-dependent communities.
Assessment and Challenges
The country’s rank in environmental management performance dropped between 2006 and 2014 but improved from thereon.Over the past decade, the country’s Environmental Performance Index (EPI) rankingdropped from 55thin 2006 to 114thin 2014, but recovered to rank 66 out of 180 countries in 2016 (Figure 20.1). The Philippines’ performance is poorer compared with Singapore and Malaysia but is consistently much better than Indonesia and Vietnam.
Management of natural resources has been improving. Several improvements were noted in the management of the country’s ENR, particularly in the reduction of open and denuded forest lands in the country as well as the effective management of key terrestrial and marine protected areas. This resulted in the improvement of critical habitats thereby arresting the extinction of threatened flora and fauna. These accomplishments were facilitated by the implementation of key environmental laws and policies such as: (a) Executive Order No. 23 on the Moratorium on Logging in Natural Forest and Executive Order No. 26 on the Implementation of the National Greening Program; (b) National Integrated Protected Area System Act; (c) Wildlife Resources Conservation and Protection Act; (d) Amended Fisheries Code; and (e) other governance modality in establishing conservation areas such as the local conservation areas and Indigenous Community Conserved Areas.
Figure 20.1 Environmental Performance Index Ranking of ASEAN-6 (2006-2016)
Source: Adapted from Environmental Performance Index Reports, Yale University, 2006-2016
Progress was also noted in the issuance of patents and certificates of land ownership. In fact, of the 14.1 million hectares (ha) of alienable and disposable lands, only around 400,000 ha remain untitled. The issuance of land titles and residential patents incentivizes the beneficiaries to make their land more productive so that it can generate higher income.
On mining rehabilitation, only four mine sites remain abandoned, thus requiring government intervention to prevent further damage to the environment and nearby communities.
Slight improvements in environmental quality have been noted but monitoring of environmental compliance remains weak.National ambient air quality for particulate matter measuring 10 micrometers in diameter or smaller (PM10) has improved over the last five years, from 76 micrograms per normal cubic meter (µg/Ncm) in 2011 to 46 µg/Ncm in 2015. This is due to more effective management of air quality in strategic areas in the country, including close monitoring of industries and stricter implementation of anti-smoke belching campaign. However, pollutant sources continue to increase, in particular, the rapidly growing number of privately owned vehicles (44% increase from 2006 to 2015), which remains the largest contributor of emissions in the country.
In terms of water quality,many of the classified water bodies are now unfit for their intended uses (e.g. public water supply, food production, and recreation) due to rapid population growth and expansion of residential and industrial areas. Untreated domestic wastewater discharges (33 %), agriculture and livestock (29%), industrial sources (27%) and non-point sources such as agricultural farms (11%) constituted the sources of water pollution. In fact, only about five percent of households are connected to sewerage network and treatment facilities.
The waste management problem has persisted despite 38 percent compliance of local government units (LGU)with the provisions of the Ecological Solid Waste Management Act or RA 9003 (see also Chapter 19).The greater majority have yet to comply and the reason cited is the lack of funds among LGUs to put up the infrastructure facilities required by RA 9003. In addition, only few households practice 3Rs (reduce, reuse, and recycle) in waste management.
Efforts on disaster risk reduction (DRR) and climate change adaptation (CCA) remain inadequate.Measures that help prevent and mitigate the impact of disasters and prepare for these events have come in various forms, including: (a) mainstreaming CCA and DRR into policies, plans, programs and budget; (b) risk and vulnerability analysis and assessments, including the development of multi-hazard maps; (c) strengthening institutional and financial mechanisms; (d) improving early warning systems; and (e) continuing information, education and communication (IEC) campaigns. However, not all LGUs have mainstreamed CCA and DRR measures in their comprehensive land use and development plans (CLUP and CDP) due to: (a) lack of capacity to use the available geospatial information; (b) unavailability of appropriately-scaled probabilistic multi-hazard maps; and (c) coarse spatial resolutions of available maps. Moreover, available funds are used primarily for relief and recovery activities and not for adaptation and mitigation measures. There is also a lack of IEC campaigns to increase adaptive capacity of communities, especially vulnerable groups (i.e., women, children, older persons, indigenous peoples, and persons with disabilities).
The existing protocols for relief and rehabilitation are not appropriate for long-gestating events such as El Niño. For instance, the quick response fund is intended for repair of infrastructure damaged due to a calamity, but El Niño does not result in damage in infrastructure but rather, loss of livelihood.
The socio-economic and environmental landscape is changing.Between 2017 and 2022 there will be additional 8.3 million Filipinos. In fact, Metro Manila will remain as the densest region, further exceeding the national population density average. More people translate to higher demand for food and houses that can put more pressure on ENR. Increasing concentration of people in urban areas will also likely increase demand for food, social services, infrastructure and transport facilities, electricity and power, and other basic needs, all of which could exacerbate air and water pollution and generate more waste. Together with the proliferation of inefficient industries, this could hasten the conversion of prime lands in urban fringes, and increase greenhouse gas (GHG) emissions, thus further aggravating the impact of CC.
Impact of climate extremes and variability are felt with increased intensity and frequency. With CC, Philippines is already experiencing increased intensity and frequency of extreme weather events. Adapting to CC, which now defines the new normal, and mitigating its impact, is a big challenge and efforts have to be heightened to a level that would safeguard not only lives but also economic gains. Transitioning to a low carbon pathway by adhering to the principle of common but differentiated responsibilities to address CC adds to the challenge.
ENR laws are weakly enforced.There are sufficient rules and regulations in the country that compel the protection, proper management, and sustainable use of resources. Their implementation and enforcement, however, are constrained by weak and fragmented institutional arrangements. For instance, while Laguna Lake Development Authority is responsible for the protection and development of Laguna Lake, regulation of other sources of pollutants such as household and industrial wast