National Anti-Poverty Program Part2

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The poverty program of the Aquino administration is a response to two major

challenges: the abject failure of anti

administration and the organizational challenges of maximizing anti

efforts with limited public resourc

Pamilya has been designed to provide substantial assistance to the largest

possible number of poor people in the shortest possible time. A carefully

designed framework maximizing the convergence of economic

initiatives answers the second challenge. Given the enormity of the tasks ahead,

this program will remain, for some time, a work in progress, but one that already

diverges substantively from past practice.

The Aquino administration’s fi

firm commitment to anti

allocation with at least 34.1 percent of the budget, substantially larger than the

next largest allocation, economic servic

Infrastructure has been cut from Php 165.1 billion in 2010 to Php 148.2 billion.

The relatively smaller budget for economic services (notably for the Department

of Agriculture and the Department of Public Works and Highw

by more strategic support for public

incorporated into the budget.

The largest departmental budget increase is for the Department of Social Welfare

and Development (DSWD) at 122.9 percent. T

Pamilya is Php 21.2 billion, more than double the Php 10 billion allocated in 2010.

Another Php 8 billion has been budgeted for various hunger and nutrition

programs, for the Supplemental Feeding Program, Food for Work for I

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(2010-2016)

Part 2


challenges: the abject failure of anti-poverty work under the Arroyo

administration and the organizational challenges of maximizing anti

efforts with limited public resources. In response to the first challenge,

has been designed to provide substantial assistance to the largest


designed framework maximizing the convergence of economic



diverges substantively from past practice.

The Aquino administration’s first budget, the 2011 Reform Budget, established its

firm commitment to anti-poverty work. The social services sector has the largest


next largest allocation, economic services, which received only 22 percent.



of Agriculture and the Department of Public Works and Highw

by more strategic support for public-private partnerships, which will be directly

incorporated into the budget.


and Development (DSWD) at 122.9 percent. The DSWD allocation for

is Php 21.2 billion, more than double the Php 10 billion allocated in 2010.


programs, for the Supplemental Feeding Program, Food for Work for I

nneess

MM


poverty work under the Arroyo

administration and the organizational challenges of maximizing anti-poverty

es. In response to the first challenge, Pantawid

has been designed to provide substantial assistance to the largest


designed framework maximizing the convergence of economic programs and local



rst budget, the 2011 Reform Budget, established its

poverty work. The social services sector has the largest


es, which received only 22 percent.



of Agriculture and the Department of Public Works and Highways) will be offset

private partnerships, which will be directly


he DSWD allocation for Pantawid

is Php 21.2 billion, more than double the Php 10 billion allocated in 2010.


programs, for the Supplemental Feeding Program, Food for Work for Internally

Page 2 of 34

Displaced Persons, while Php 4.234 billion has been budgeted for the Rice Subsidy

program alone. Other major DSWD programs include SEA-K and KALAHI-CIDSS.

The “supply side” allocations for Pantawid Pamilya include:

•••• Php 12.4 billion for classrooms, 57 percent higher than that allotted in 2010

and more than triple the 6,000 classrooms normally constructed yearly.

•••• Php 1.8 billion for the purchase of an estimated 32.3 million textbooks in

2011.

•••• Php 1.6 billion for the creation of 10,000 teaching positions to meet the

ideal ratio of 5:3 teachers to classes.

•••• More than double the allocation for the upgrading of health facilities from

Php 3.2 billion in 2010 to Php 7.1 billion in 2011.

•••• Some Php 3.5 billion for the Health Insurance Premium of 4.6 million

indigent families.

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I. ANTI-POVERTY THRUSTS

The poverty reduction strategy of the Aquino administration will be anchored on

efforts to reduce poverty incidence to 14.2 percent, which is the MDG target.

Given the expectation that growth in 2011 and subsequent years may be more

moderate than was experienced in 2010, it is likely that economic growth will not

adequately reduce the headcount index to this target. If the social services

allocation of 34.1 percent of the budget cannot be significantly increased in

subsequent years, poverty gains will have to be achieved through greater

efficiencies in programming.

The extent and depth of poverty is such that the initial thrust of anti-poverty

programs will be to reduce the burden of poverty -- to provide income, food,

education and health services, as well as jobs, so the poor can provide for

themselves. But government anti-poverty programs will be designed to build

capacity and create opportunities for the poor in the course of reducing the

burden of poverty. The first priority is to provide the basic income, food and

nutrition, health and education needs of the poor.

The program thrusts of this administration will be the following:

Focus on the poorest of the poor. Our anti-poverty interventions are focused

towards expanding access of the poor to basic social services, especially

education, health and family planning services; providing risk mitigation; and

expanding social protection programs so poor households can cope better with

economic, social and natural disasters. These will also entail the expansion of

economic and social opportunities for the poor so they can increase their incomes

and build their assets. Asset reform programs will also be undertaken to ensure

redistribution of resources to the poorest of the poor.

Focus on poorest areas. We will focus on the poorest regions and provinces so

that those who are especially in need of public support can be provided with the

mechanisms to improve their lives. Focus municipalities will be from the poorest

regions and those with the largest concentrations of the poor in densely

populated provinces. We will incorporate projects that address the vulnerabilities

of the poor and marginalized, especially those affected by social conflict and

environmental disasters, into our anti-poverty programs.

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People’s participation and empowerment. People’s participation in governance

can make poverty reduction work more effective. People empowerment is the

antidote to old-style patronage. But people empowerment can do more than help

improve the material conditions of poor peoples’ lives. Poverty deprives people of

their dignity and the incentive to make efforts to improve their lives.

Civil society organizations and social movement groups will be mobilized to

organize the poor. We will continue to expand programs that emphasize

community-driven development strategies, such as the Kapit Bisig Laban sa

Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-

CIDSS).

Rationalization of anti-poverty reduction programs. At the same time, we

recognize the importance of streamlining and coordinating government anti-

poverty programs, not only to reduce inefficiency and duplication, but also to

improve the effectiveness of each program. In 2009, there were an estimated 66

programs that responded to the needs of the poor. This multiplicity of programs

tends to result in poor coordination, as well overlapping and double counting of

program beneficiaries, which reduces the effectiveness and efficiency of anti-

poverty programs over-all.

We will systematize existing anti-poverty programs and build new programs,

given existing gaps in anti-poverty interventions, especially in the areas of hunger

and disaster relief and mitigation.

The National Anti-Poverty Commission (NAPC) will be the primary agency

overseeing the convergence of these anti-poverty programs. We will ensure that

there is coordination of different anti-poverty efforts among national government

agencies, non-government organizations and private organizations in targeted

communities and sectors.

Strengthening targeting and monitoring mechanisms for poverty reduction. We

will encourage the use of data-based mechanisms, such as DSWD’s National

Household Targeting System for Poverty Reduction (NHTS-PR). We will use the

NHTS-PR, which is already being utilized for the Pantawid program, as the single

national targeting system for key social protection programs such as the

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PhilHealth Indigent Program. We will ensure the coordination of existing anti-

poverty databases being undertaken by different national government agencies

so that the planning and implementation of anti-poverty programs can be better

harmonized.

We will further ensure that monitoring and evaluation mechanisms will be

integrated into these programs. And we will encourage local government units

through training and funding support to use Community Based Monitoring

Systems (CBMS) so that they can better monitor the effectiveness of their

respective programs.

We will continue to track our progress in terms of reducing income and capability

poverty by regularly tracking poverty incidence and severity at the national,

regional and provincial level, using Millennium Development Goals (MDG) and

Human Development Index (HDI) indicators. Reforms in existing statistical

systems will also be encouraged so more data on marginalized groups, such as the

workers in the informal sector, will be available.

Institutional aspects of poverty reduction. We recognize the importance of

buttressing anti-poverty programs with governance reforms, which will need to

be undertaken across the bureaucracy and in the other areas of governance.

Participation of the poor in policy making. We will ensure that the different

government bodies representing marginalized sectors are strengthened by

providing them with the necessary resources for their operations. We will also

encourage a more transparent selection process for their representatives so the

voices of these sectors can be heard across the bureaucracy through effective and

democratic leadership.

Support for local government initiatives. Local government capacities to reduce

poverty will be strengthened. We will improve the system for providing incentives

to better performing local government units (LGUs) to fund their poverty

reduction programs, strengthen inter-LGU systems to coordinate their projects,

and advocate the use of poverty indicators in planning and measuring their

progress toward poverty reduction.

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Corruption and poverty. Anti-corruption work in both the revenue generation

and expenditure sides of government will generate additional revenue for pro-

poor programs. Collecting taxes is also a form of asset reform to the extent that

tax reforms succeed in collecting more from those with higher incomes and from

the assets of the rich. This asset reform is “clinched” when the national budget is

realigned towards social services. Anti-corruption reform should then be

extended to promote innovation and entrepreneurship, discourage rent seeking,

and minimize political intervention in business.

Political Reforms. The government must be able to reform its institutions so they

can initiate and implement key economic reforms without undue influence from

vested interest groups. It should guarantee independence and objectivity (i.e.,

stop “regulatory capture”) of its regulatory institutions. It should further enforce a

comprehensive competition policy.

We will ensure maximum transparency in the planning, implementation and

monitoring of programs. This will facilitate civil society participation in monitoring

programs through a selected number of social accountability instruments. As a

corollary to this, we will re-file and work towards the passage of the Freedom of

Information law.

We will extend the spirit of voluntarism during the campaign by engaging

business and the private sector in government programs. We will encourage the

People Power Volunteers for Reform (PPVR) and organized sectors at NAPC to

participate in the localization of anti-poverty programs.

Resource Generation. The financing of anti-poverty programs will be carefully

studied. The rationalization of existing programs, with an eye to cutting leakage,

should provide additional resources. Closing the funding for programs with very

little impact and realigning NFA expenditures alone would produce tens of billions

of pesos. We will tap overseas development assistance, both grants and low-

interest loans, to fund our major anti-poverty programs.

We will also support reforms that increase public resources, especially the

reforms that reduce inequality in incomes across economic sectors. Reforms to

increase the excise taxes on alcohol and tobacco products and that rationalize

fiscal incentives enjoyed by private corporations will be advocated.

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Communications Program. The program should have a carefully worked out

communications plan. It is not enough that beneficiaries know what the

government is doing for them. The general public should also be informed in

order for us to achieve maximum political benefit and so that they can participate

in the implementation of these programs.

Gender aspects of the anti-poverty strategy. The poverty reduction framework

recognizes important gender concerns and issues, and highlights the important

role of women as actors in anti-poverty work as recommended in past anti-

poverty plans (Ofreneo and Acosta, 2002). The following gender objectives will be

incorporated into poverty work: a) adopting macroeconomic policies that address

the needs and efforts of women; b) ensuring women’s equal rights and access to

economic resources; c) strengthening the efforts of women to access savings and

credit mechanisms; and d) developing gender-based methodologies and

conducting research on women in poverty.

Environmental aspects of the anti-poverty strategy. Specific programs should be

designed to reduce the impacts of environmental changes on the poor, who

suffer disproportionately from climate change.

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II. STRATEGIES

Strengthening the pro-poor response of economic growth. Rapid economic

growth is a necessary, but insufficient, condition for poverty reduction. GNP grew

on the average by 5% during the period 2000-2009 but poverty incidence actually

increased. From 2003 to 2009, GNP per capita grew by 23.8 percent, from Php

14,307 to Php 17,725, but average family income declined by 0.8 percent, from

Php 130,000 to Php 129,000 (see Table 19 below).

Table 19. Changes in Average Family Income and Expenditures and GNP and PCE per capita,

2003- 2009

Component 2003 2006 2009 2003- 2009 change

Average family income 130,000 125,000 129,000 -0.8%

Average family expenditure 109,000 107,000 110,000 +0.9%

GNP per capita 14,307 15,997 17,725 +23.8%

PCE per capita 10,425 11,495 12,467 +19.6% Note: GDP is gross national product. PCE is personal consumption expenditure.

Source: National Statistics Coordination Board; National Statistics Office.

Poverty reduction can be accelerated in two ways, through more rapid economic

growth and/or by improving the impact of economic growth on the poor. The

latter can be done by undertaking the following:

a) Creating productive employment opportunities. The growth strategies

of the government will ensure that broad-based economic

opportunities are available to all Filipinos. In particular, there will be an

emphasis on the development of enterprises that provide the highest

value-added to agricultural outputs. Infrastructure development,

including the provision of farm-to-market roads and public markets,

would be a key component in this regard.

b) Increasing agricultural productivity. Since 70 percent of the poor live in

rural areas, raising the output of farms and farm-based enterprises is

critical. The provision of irrigation, credit and the dispersal of modern

technology through training and education are important factors to

raise incomes in rural areas.

c) Facilitating economic diversification, especially in rural areas.

Households in many towns and municipalities are reliant on one or two

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types of economic enterprises. There should be a concerted effort to

promote diversification so that households will not be affected by the

vagaries of price changes of a single commodity.

We will focus on modernizing agriculture because that is where the largest

number of our poor work. We will shape the government’s infrastructure

program to serve these industries. All departments and agencies of the

government will be instructed to examine policies and programs from a pro-poor

perspective.

Income distribution in rural areas has worsened. Redistribution is therefore a

necessary priority for this administration. As many studies, particularly the World

Bank (2006) have noted, the best policies for poverty reduction involve the

redistribution of opportunities to the poor as this allows for the reform of policies

and institutions that strengthen property rights, which in turn enhance the

functioning of markets. At the same time, equity allows growth to be sustainable.

More specific aspects of these strategy components are the following:

•••• Promotion of agricultural growth. As De Dios (1993) has noted, growth

impacts on poverty reduction if the production factors and resources that

are enhanced are those owned by the poor, or if the returns on these

outputs increase with growth. However, in the past, growth strategies

adversely affect the productive resources of the poor by constraining

returns on labor and agricultural products.

Poor Filipinos tend to be concentrated in rural areas and in agriculture,

have less access to basic services, lower levels of education, and larger

families. Regrettably, the sector pattern of growth since 2000 has been

biased against agriculture and toward sectors that are least intensive in the

use of labor. Although agriculture’s contribution to GDP is small, it has a

significant contribution to job creation.

• Ensuring a bias for labor-intensive production technologies. We will

promote public and private projects that are biased towards the usage of

the main productive resource of the poor, which is labor. We will focus on

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the development of enterprises that are labor generating and undertake

the necessary research to accomplish this.

• Tourism as a component of the anti-poverty strategy. The growth

potential of sustainable and gender-sensitive tourism is large as it will also

help sustain and conserve natural resources, in addition to providing

employment for the poor. It is also in tourism where the potential for job

generation and small-scale entrepreneurship tends to be greatest.

• Consideration of local characteristics for poverty reduction strategies.

Area-specific strategies for poverty reduction will be studied. We recognize

that there is no “one size fits all” strategy for poverty reduction. In some

areas, there will be an emphasis on the development of land-based

resources, but in other areas where the level of urbanization has been

dominant, we will emphasize human resource development.

•••• Maximizing the opportunities in the domestic and international economy.

We need to revisit the export-oriented policy regime from the vantage

point of agricultural growth and international trends in the aftermath of the

2008 international financial crisis. At the same time, while liberalization has

advanced competition and strengthened efficiency in some industries, we

will closely calibrate our tariff and competition policy to maximize benefits

for the majority of our citizens.

• Small and medium scale enterprises. SMEs, especially social enterprises,

are the main generators of jobs in the country, especially for the poorer

sectors. But they lack access to credit and finance, to markets and to

technology so that they can connect to the global economy.

We will not only encourage microfinance, we will also harness the

remittances of our overseas workers by creating financial instruments that

can attract remittances and be channeled to the rural sector.

For market and technology access, we will encourage the private sector to

link up with local firms, using information exchange, by giving the private

sector appropriate incentives.

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III. PROGRAMS

A. DIRECT SUBSIDIES. Providing the poor with direct interventions across sectoral

and geographical lines is, in terms of budget allocations, the most important

component of the anti-poverty program. The programs under this strategy

include Pantawid Pamilya, a conditional cash transfer program; subsidized

PhilHealth coverage for indigents; a cash transfer program for poor senior

citizens; and various hunger mitigation programs.

1. Expansion of the existing Pantawid Pamilyang Pilipino Program (4Ps).

The 4Ps provides cash transfers (CCT) to the poor conditioned upon:

(a) their children attending school and (b) their use of preventive

health care, including reproductive health care and nutrition services.

There is already a programmed increase from 700,000 families at the time of the

transfer to the Aquino administration in July 2010 to 1 million by the end of 2010,

and 2.3 million by the end of 2011. This is expected to meet the needs of all 1.8

million families below the subsistence threshold. We will target full coverage to

families below the income threshold by the end of 2016 to 4.7 million beneficiary

households. The budgetary requirement for this program, the full cost of which

would reach around Php 50 billion per year, is likely to be available from ODA and

IFI sources.

The program aims to reduce inter-generational poverty by providing health and

education services to children of poor families. According to studies undertaken

by foreign donors, the CCT is expected to reduce poverty incidence in targeted

areas by 6.1 percentage points (World Bank, 2009).

The minimum amount that a qualified household will receive in exchange for

fulfilling certain education and health conditions is Php 9,000 a year (with one

child who is at least 3 years old) and the maximum is Php 15,000 (with three

children up to age 14). The latter amount represents, based on 2006 family

income data, an additional income of almost 50 percent for families in the bottom

decile, almost 30 percent for those in the second lowest decile; and almost 25

percent for those in the third lowest decile.

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In 2009, a family of five needed Php 4,869 monthly income to meet food needs

and Php 7,017 to meet their food and non-food needs. The Pantawid Pamilyang

Pilipino provides a subsidy of Php 1,400 for a family with three children in school.

Table 20. Pantawid Pamilyang Pilipino Program Regional Allocation. 2010

Region # of HH

Beneficiar

ies

% of HH to

the Total # of

Beneficiaries

Budget Allocation % Share in

the Total

Budget

Poverty

Incidence

(2008 NSCB)

ARMM 193,080 14.82%

1,468,681,650.00

16.39% 55.3

CARAGA 61,652 4.73%

486,291,360.00

5.43% 45.5

Region VIII 89,850 6.90%

466,106,460.00

5.20% 40.7

Region V 177,374 13.61%

1,329,996,660.00

14.84% 41.8

Region IV-B 74,843 5.74%

591,253,140.00

6.60% 43.7

CAR 9,691 0.74%

54,862,050.00

0.61% 28.8

Region I 10,238 0.79%

53,538,210.00

0.60% 26.2

Region II 9,589 0.74%

43,365,300.00

0.48% 20.5

Region III 2,218 0.17%

17,899,260.00

0.20% 16.8

Region IV-A 65,048 4.99%

410,044,680.00

4.58% 16.7

Region VI 135,582 10.40%

776,770,410.00

8.67% 31.1

Region VII 93,778 7.20%

586,876,080.00

6.55% 30.8

Region IX 68,021 5.22%

567,939,300.00

6.34% 40.2

Region X 124,886 9.58%

915,417,810.00

10.22% 36.1

Region XI 61,923 4.75%

384,287,640.00

4.29% 30.6

Region XII 125,326 9.62%

807,797,820.00

9.01% 33.8

GRAND

TOTAL

1,303,099

8,961,127,830.00

Source: Department of Social Welfare and Development

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In Table 20 above, the five regions where the program is concentrated (in terms

of the number of beneficiaries and budgetary allocation) have the highest poverty

incidence; this includes the Autonomous Region for Muslim Mindanao, CARAGA,

Eastern Visayas, Bicol Region and MIMAROPA. Table 15 below shows the number

of beneficiaries of the program from 2008 to 2011.

Table 21. Pantawid Pamilyang Pilipino Program Beneficiaries, 2008- 2011

HH Set Number of

HHs

Female

Grantees

Children 0-

2 years old

Children 3-5

years old

Children 6-14

years old

Pregnant

Women

2008 333,915 294,179 44,604 188,111 585,963 16,280

2009 288,263 267,354 76,908 160,872 484,924 8,752

2010 350,000 238,378 90,210 155,161 466,831 11,060

Subtotal 972,178 799,911 211,722 504,144 1,537,718 36,092

2011 (est.) 1,303,099 1,072,194* 283,053* 675,750* 2,061,144* 48,377*

Total 2,275,277 1,872,105 494,775 1,179,894 3,598,862 84,469 Source: Department of Social Welfare and Development

2. Other cash transfer programs. We will enhance the cash transfer

program for senior citizens under the Senior Citizen Act of 2010 by

developing mechanisms to pinpoint the neediest. However, this may

entail revisiting the value-added tax discounts granted to the elderly.

We will also examine the possibility of support programs for other

socially marginalized sectors.

3. Consolidation and expansion of the various hunger mitigation

programs. In December 2009, the proportion of families experiencing

involuntary hunger rose to a record high of 24 percent (about 4.4

million families). There are several government hunger mitigation

programs that are vulnerable to corruption and, given the scale of the

problem, ineffective.

Operationally, all program efforts should be concentrated in municipalities and

barangays, and we will explore the possibility of using the NHTS-PR to target

households for food assistance. We will continue the feeding programs in schools

and day care centers in areas that have a high level of malnutrition, and will

explore increasing financial subsidy to these programs beyond the Php 7.9 billion

budgeted in 2011. The intervention will be sustained for six years to reverse the

tide of hunger among poor families.

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B. DIRECT SERVICE DELIVERY. Another strategy of the anti-poverty program is

the provision of the full requirements of basic education, health and nutrition,

shelter, water and sanitation for the poor that can help build their assets.

Specific components of this strategy are the following:

• Addressing critical educational needs. We will ensure that resources are

devoted towards basic education so that we will achieve universal

enrollment (100 percent participation rate) in basic education by 2016.

Some of the critical infrastructure bottlenecks include: school facilities,

teacher positions, textbooks, and the provision of training and scholarship

programs for poor but deserving underprivileged students. At the same

time, several measures will be undertaken to ensure that there is a strong

focus on the education sector in the country—implementing a 12 year-basic

education cycle; review and restructure the content and delivery of

curriculum; addressing issues concerning teacher training, textbook

procurement and classroom construction; strengthening management at

the national and local levels; and ensuring participation of the community

in the implementation of the program.

As stated above, the 4P program and breakfast distribution program will

complement these educational reforms. In addition, there will be continued

emphasis on vocational and technical education; its entrepreneurial

component will be enhanced since the employment rate for voc-tech

education has been below target.

Table 22. Education Indicators and Targets, 2009/10 to 2015/16

INDICATOR ACTUAL

(2009-2010)

TARGET

(2015-2016)

Participation Rate 85.01% 98.10%

Cohort Survival Rate 74.38% 84.67%

Completion Rate 72.18% 81.04%

Source: Department of Education; National Economic and Development Authority

• Universal Philippine Health Insurance Program (PhilHealth) coverage for all

Filipinos. We will expand the Philippine Health Insurance Program towards

universal coverage in order to provide the poor with financial protection

against illness and make the public health system more sustainable. We will

enroll more than 5 million indigents in the PhilHealth indigent program and

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prioritize the expansion of the sponsored program to poor households in

ARMM, Zamboanga Peninsula (Region 9), Eastern Visayas (Region 0), Bicol

(Region 5), MIMAROPA (Region 4-B), SOCSARGEN (Region 12) and CARAGA.

Part of the PhilHealth reserves will be utilized to upgrade government

hospitals and other health facilities in these 7 regions so these can be

accredited by PhilHealth.

To complement this program, we will:

i. Build additional health centers required for increased demand;

ii. Upgrade health facilities including hospitals and health centers.

Table 23. Health and nutrition indicators and targets, 2010 to 2016

Indicator Baseline Target (2016)

Proportion of underweight children 0-5

years old

26.2% (NNS 2008) 17.25%

Under-five mortality rate (per 1,000 live

births)

34 (NDHS 2008) 26.7

Infant mortality rate (per 1,000 live births) 25 (NDHS 2008) 19

Maternal mortality ratio (per 100,000 live

births)

162 (FPS 2006) 52

Proportion of births attended by skilled

health professional

62 (NDHS 2008) 70%

Contraceptive prevalence rate (modern

method)

34% (NDHS 2008) 60%

PhilHealth Coverage rate 53% (Joint DOH-

PhilHealth Review)

85%

PhilHealth Availment rate 42% (Joint DOH-

PhilHealth Review)

92%

PhilHealth Support Value 34% (Joint DOH-

PhilHealth Review)

70%; 100% for

identified

indigents

PhilHealth Benefit Delivery rate 8% (Joint DOH-

PhilHealth Review)

54%

Percentage Out-of-pocket expenditures 54% (2007 PNHA) < 30%

Percentage accredited facilities (hospitals)

among licensed

91% (Reyes, et. al,

2010)

95%

Source: Department of Education; Philippine Health Insurance Corporation; National Economic and Development

Authority

Page 16 of 34

• The provision of water infrastructure to ‘waterless’ municipalities is an

important aspect of this program. Infrastructure will be provided to the 483

municipalities that have less than 50 percent service coverage in terms of

sustainable water sources; a list of 115 municipalities to be initially included

in the program is currently being prepared. NAPC will serve as the lead

coordinating agency in the implementation of the program, and shall

ensure that priority be given to barangays in municipalities with the highest

density of poor households. The Department of Health will provide the

funding requirements for monitoring the implementation of the water and

sanitation facilities in waterless municipalities, while the Department of

Interior and Local Governments shall develop and implement capacity

development interventions under the program, while establishing

collaborative partnerships with relevant agencies, non-governmental

organizations, academe and other institutions. The provision of sanitation

facilities is also an important concern and will be addressed.

C. COMMUNITY-DRIVEN DEVELOPMENT PROGRAMS. We will promote

programs that will expand the ability of poor communities to organize

themselves and support their own development.

1. Expansion of Self-Employment Assistance Kabuhayan (SEA-K). SEA-K is a

capability-building program established by DSWD in coordination with LGUs

designed to enhance the socio-economic skills of poor families to establish

and manage sustainable community-based micro-credit organizations for

entrepreneurial development. The program enables the poor to have

access to credit, promote entrepreneurship, enhance their understanding

of the value of honest work, pay debts, have social responsibility and

increase their income. In 2009, there were 1,389 SEA-K projects

established, benefiting 28,939 families nationwide. Funds amounting to

Php 143,089,000 million have been released as seed capital for livelihood

projects.

2. Employment generation programs. The labor force, which numbered 23.9

million in 1997, had increased by more than 50 percent to 39.2 million by

January 2011. There are approximately 3 million unemployed Filipinos in

the country, corresponding to an unemployment rate of 7.4 percent, while

the underemployed number is at 12 million. The Department of Labor and

Employment (DOLE) projects annual employment increases at only slightly

Page 17 of 34

more than 1 million new jobs a year, barely enough to provide jobs to new

entrants in the labor force.

Higher rates of economic growth will generate additional employment. But there

will be a time lag before the employment impact of growth kicks in. In the

meantime, the government needs to maximize job-generation in its infrastructure

and non-infrastructure projects.

We will work towards the following:

a. Raise the labor intensity of infrastructure projects in order to increase

the number of employed workers in these programs. Since one third

of public works programs can be implemented using labor-intensive

techniques, the government can employ 300 to 400 thousand

additional workers. DPWH will take the lead in this effort.

b. Design a program for guaranteed employment for victims of

disasters. The national government will also develop greater fiscal

flexibility in order to deploy infrastructure and non-infrastructure

budgets in the event of major disasters. This will have to come either

in the form of rapid-disbursing Social Protection Credit Lines or

national budget authorizations that allow the executive department

to temporarily defer projects in the pipeline, as well as deploying

these in favor of pre-qualified forms of assistance to victims of

calamities.

c. Explore the feasibility of an Employment Guarantee Scheme for the

poor. We will explore the implementation of an employment

guarantee scheme (EGS)1 for the poor to ensure that the poor can

have work if these are needed.

The new EGS can take the place of the different programs listed

above and can be designed together with other agencies2. Initially,

1 The program is similar to the Mahatma Gandhi Rural Employment Guarantee Scheme being

implemented in India starting in 2005. Towards the latter part of the term, we should explore the

possibility of adapting something similar to this job guarantee program. 2 This program can focus on: (1) Classroom construction, which ties in with our program for education,

such that before the end of our term, the 40-thousand classroom deficit will be eliminated. One indicative

estimate is that constructing 8,000 classrooms will produce 40,000 jobs for 100 days at Php 250/day, and

Page 18 of 34

this program can use existing budgetary resources by pushing DPWH

towards jobs-biased technologies in road and school construction,

the DA in farm-to-market roads, the and NIA in its irrigation projects.

Additional resources can be sourced from the Motor Vehicles Users

Charge (MVUC) or Road Tax.

In the design of the EGS, we will take into consideration several

important components, including ensuring that the wage structure

meets the self-targeting objectives of the program, including a

provision that allows for assistance during the monsoon season when

it is difficult to undertake construction; selecting programs that

enhance labor productivity; and reducing leakages in the non-labor

costs of the program (Ahmed, Quisumbing, Villafuerte and De La

Cruz-Dona, 2004a; Manasan, 2009).

The Cash For Training/Work (CFT/W) program of DSWD, which will

provide jobs for small farmers and fisherfolk during lean months, will

begin in July 2011. It replaces the NFA rice subsidy. It has been

allocated a large Php 4.2 billion budget for 2011. It can become a

prototype for programs for jobs for disaster victims and for the poor

in general.

NAPC and DOLE will be working together to examine the resource

and institutional requirements for implementing EGS for those who

have been displaced and affected by calamities, as well as those who

have been underemployed and are awaiting the emergence of new

pathways out of chronic poverty.

3. Widening the implementation of the Kapit-Bisig Laban sa Kahirapan-

Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS).

We will continue to expand KALAHI-CIDSS, a program for organized

participatory development planning at the barangay level, and the

cost Php 4 billion. (2) Clearing and repair of esteros, canals and other waterways to lessen, if not

altogether eliminate, flooding, especially those in the Ondoy path; (3) Rehabilitating and repairing the

irrigation of canals and ditches; and (4) Other agricultural infrastructure projects, such as farm-to-market

roads and water impoundment projects. We should explore getting new resources from ODA donors

especially for school construction.

Page 19 of 34

provision of funds for projects resulting from it. We will also explore the

possibility of developing a facility that can support projects chosen through

participatory barangay development planning similar to KALAHI-CIDSS.

Over the six years of KALAHI-CIDSS’ implementation, the program has

covered a total of 4,229 barangays in 184 of the poorest municipalities in

the poorest 42 provinces. With additional support from the government,

the Millennium Challenge Corporation and the World Bank, the program

will expand to 407 municipalities in 48 provinces by 2016.

We will undertake a pilot program for urban barangays; this may be similar

to the Strategic Private Sector Partnership for Urban Poverty Reduction

(STEP-UP), a project being undertaken by the Philippine Business for Social

Progress, to ensure the delivery of housing and urban development services

to the poor with the participation of the business sector, local governments

and key shelter agencies.

4. Develop and integrate new programs that reduce socio-political and

environmental vulnerabilities. The Payapa at Masaganang Pamayanan

(PAMANA) Program, implemented by the Office of the Presidential Adviser

for the Peace Process, is a critical part of the social protection program of

the government. We will fund the resources necessary to undertake

community-driven development, sustainable livelihood, tenure

improvement, and livelihood- and employment-generation in areas

affected by armed conflict.

The PAMANA program will provide assistance to the 13 percent of all

barangays that are conflict-affected -- areas where clashes between

government forces and insurgent groups are taking place, have taken place

or where there are evacuees and displaced people as a result of such

armed conflict. These are spread in 497 out of 1,628 municipalities/cities

nationwide. PAMANA will be implemented by phases to allow for capacity

building and resource mobilization.

Page 20 of 34

Table 24. PAMANA Implementation, 2010- 2013

PHASE COVERAGE TIMETABLE

PILOT 7 municipalities Oct.-Dec. 2010

PHASE I 50 sites Jan.-Dec. 2011

PHASE II 50 sites (including Conflict-

Affected Areas in Luzon and

Visayas)

Jan.-Dec. 2012

PHASE III Scaling up Jan.2013-Dec.

2013 Source: Office of the Presidential Adviser on the Peace Process

We will undertake a new program to reduce vulnerabilities following

natural disasters in coordination with projects undertaken by the

government on environmental sustainability and disaster coping

mechanisms.

5. Support for households dependent on coconut. Coconut farmers are among

the poorest of the poor in rural areas. Some 25 percent of agricultural lands

are devoted to coconuts; 700,000 of the 1.2 M hectares of CARP balance

are coconut lands. Coconut products remain the biggest single export

earning crop. The potential impact of promoting productivity growth in

coconut areas is great. Coconuts have vast potential in downstream

industry development (food/non-dairy, bio-lubricants, biofuels, virgin

coconut oil, non-dairy products, coconut fiber nets); the technology

required to increase the productivity of coconut farms is as simple as using

salt as fertilizer for coconut trees and intercropping with other high-value

crops (e.g. coffee, peppercorn, etc.) to raise farm incomes. A roadmap will

be created for the sector that will include replanting, fertilization and

intercropping strategies with supportive budgetary allocations: this

roadmap will engage civil society organizations, especially in terms of its

development, implementation and monitoring.

A comprehensive program for developing coconut lands can be financed by

coco levy funds. Some 27 percent of San Miguel Corporation stock (or 753

million shares), valued at roughly Php 56.5 billion, has been declared

“owned by government in trust for all the coconut farmers.” 3

3 P56 B is when you value the 753 million shares at 75 pesos/preferred share; at 110 per share, the latest price,

total is P82.83 Billion.

Page 21 of 34

IV. ASSET REFORM

It is vital that social protection programs are supported so the poor’s assets can

become more sustainable in the medium- to long-term. This will entail the

implementation of asset redistribution and housing programs. It has been shown

through several studies that an increase in agrarian reform implementation can

result in a reduction in poverty (e.g., Balisacan and Fuwa, 2003, 2004; World

Bank, 2009).

1. Agrarian Reform. The Aquino Administration will fast-track the

implementation of asset reform programs under existing laws, particularly

agrarian reform, ancestral domain, fishery reform and socialized housing.

The annual accomplishment targets for land distribution under CARP will be

doubled from the existing 100,000 hectares in order to complete land

distribution under CARP in five years. Of the remaining 1.102 million

hectares that CARP still has to cover until 2014, coconut farms represent

the largest balance at 350,000 hectares, one-third of which are large,

private agricultural lands.

Table 25. Land acquisition and distribution targets, 2010- 2014

Target

Land Acquisition and

Distribution (hectares)

Number of Beneficiaries

ARCS Number of

ARBS in

ARCS

Baseline* Target** Baseline Target Baseline Baseline

Low LAD

balance

871,440

86,000

608,763

152,569

692

421,012

Medium LAD

balance

1,316,957

237,510

747,218

420,749

714

444,001

High LAD

balance

1,995,125

646,824

1,048,777

1,145,849

609

448,795

Total

4,183,522

970,334

2,404,758

1,719,167

2,015

1,313,808

Note: *Baseline numbers are as of June 2010; ** Targets are set by the Comprehensive Agrarian Reform Law with

Extension (RA 9700); Low LAD (land acquisition and development) balance provinces with a LAD balance below

5,000 hectares. Medium LAD balance provinces with LAD balance between 5,000 to 13,500 hectares. High LAD

balance provinces with LAD balance of more than 13,500 hectares.

Source: Department of Agrarian Reform

2. Urban poor programs. Unlike in rural areas, the main problem for urban

poor is housing. We will end illegal forced evictions. We will explore

Page 22 of 34

projects for on-site and in-city relocation, where medium-rise buildings in

places where studies demonstrate feasibility, such as in the North Triangle

area of Quezon City. The government must provide decent relocation,

providing for quality housing, adequate basic services and sustainable

livelihood support.

From 1960-2000, the urban population grew at an average annual rate of

more than five percent and, by 2010, approximately 60 percent of the total

population lived in urban areas. Today, over 35 percent of the Metro

Manila population (over 3.4 million Filipinos) live in informal settlements,

where they suffer insecure tenure, lack of adequate health and educational

facilities, and inability to access capital, credit or social safety nets. They are

further exposed to public health risks due to makeshift housing, unsafe

water and poor sanitation, as well as crime, fire and sudden flooding (ADB,

2010).

Based on the Housing and Urban Development Coordinating Committee

(HUDCC) Housing Need Study, the number of informal settlers nationwide

total 550,771 households (based on its 2007 survey). About 36 percent or

199,398 households are found in NCR. It should be noted, however, that

HUDCC estimates on the number of informal settlers may be low and that

the true number of informal settler households could be as much as 1.2-1.5

million, given the fact civil society groups note that they compose a third of

the urban population.

We will require all major infrastructure projects to include a Resettlement

Action Plan. We will shift the emphasis to slum upgrading and in-city

resettlement through the Community Mortgage Program and Presidential

Proclamations. We will proclaim public land for 50,000 poor families a year

or 300,000 families over our six-year term. We will accelerate the

Community Mortgage Program by wiping out the program backlog. We will

further ensure the full release and utilization of the Comprehensive and

Integrated Shelter Finance Act (CISFA) balance of Php 12 billion within 3

years. For 2011, we will increase the number of resettlement units and the

number of households with housing assistance (see Table 26 below).

Page 23 of 34

Table 26. Resettlement and Other Housing Targets, 2011

Particular Baseline Target

(2011)

Resettlement

Units

57,179 80,119

Other Housing

Assistance

7,432 7,386

Source: Housing and Urban Development Coordinating Committee

We will make infrastructure construction in urban poor areas a focus of our

job generation program. Labor-based, equipment-supported (LBES) public

works -- infrastructure projects that make an optimal use of labor as the

predominant resource -- will be used in infrastructure projects both for

post-disaster mitigation and disaster preparedness. A public works program

that aims to improve the safety and habitability of existing informal sites

and resettlement areas, as well as secure new living spaces for the urban

poor, will benefit a large number of people.

3. Distribution of ancestral domain titles. We will work towards the

distribution of ancestral domain titles as provided by the Indigenous

Peoples’ Rights Act. Table 27 below shows the 4.2 million of the targeted 10

million hectares still have to be distributed, 3.4 million of which are already

in the pipeline. The national government will invigorate the National

Commission on Indigenous Peoples (NCIP) to fulfill this program. Recent

appointments to NCIP should strengthen its reform credentials and lessen

its image as a corrupt body.

Table 27. Status for Approval of Ancestral Domain/ Ancestral Land Delineation and Titles,

as of November 30, 2010

PARTICULAR No of ADs Area (Hectares) No. of ALs Area (Hectares)

I. SURVEY COMPLETED 56 1,073,092.5221 46 8,567.8531

II. FOR SURVEY 41 834,767.8800 17 3,873.3200

III. UNDERGOING

SOCIAL PREPARATION

107 2,048,013.1300 434 2,806.5000

GRAND TOTAL 204 3,955,873.5321 497 15,247.6731 Source: National Commission for Indigenous Peoples

Page 24 of 34

Table 28 Status of Registration of Ancestral Domain/ Ancestral Land Delineation and

Titles, as of November 30, 2010

PARTICULAR No. of

CADTs

Area of CADTs

(Hectares)

No. of

Rightholders

No. of

CALTs

Area of

CALTs

(Hectares)

No. of

Rightholders

Transmitted to

ROD thru

RO/PO for reg

18 1,063.5788 540

CALT taken by

claimants for

registration to

ROD

12 3,550.912 2,014

Transmitted to

LRA, DENR &

DAR for

projection

55 1,247,996.4760 332,204 21 224.5804 543

Transmitted to

LRA, DENR &

DAR for re-

projection

15 366,799.2575 146,841 38 389.5514 289

Completion of

documents for

projection/re-

projection and

issuance of

certification to

LRA, DENR &

DAR

40 1,361,180.9648 190,132 30 3,814.3615 1,376

Completion of

documents

required by

ROD

12 449,318.2679 56,641 16 3,790.5814 1,116

Total 122 3,425,294.9662 725,818 135 12,833.5655 5,878 Source: National Commission for Indigenous Peoples

4. Fisheries and aquatic resources reform and management. We will work

with fisherfolk groups towards the implementation of the Fisheries Code.

The delineation of municipal waters, provided for in the Code, will be

hastened by issuing an Administrative Order within the next six months for

the delineation of municipal waters for those LGUs with offshore islands,

and will encourage municipalities to pass their comprehensive fisheries

Page 25 of 34

ordinance; promoting inter-LGU management of water resources will also

be pushed. Guidelines for the development of fisherfolk settlement areas

as mandated by the Fisheries Code will be undertaken, while funding for a

comprehensive fisheries plan will be developed. Funding for the

Comprehensive National Fisheries Industry Development Plan, a 25-year

planning document that provides for capacity building, sustainable

livelihoods for fisherfolk and rehabilitation of coastal and marine

ecosystems, needs to be prioritized.

Page 26 of 34

V. AGRICULTURAL AND RURAL DEVELOPMENT POLICIES

At the same time, we will undertake the hard policies to correct economic

distortions that reduce economic and social opportunities for the poor in rural

areas. In 2006, almost 75% of the poor were found in rural areas, mostly working

in agriculture, forestry and fishing. By 2010, 8 out of 10 of the chronic poor were

in rural areas (Reyes, 2010).

Agricultural growth. There are many steps that can be taken to promote

growth in agriculture, including more research, better extension services and

labor-intensive small infrastructure construction. The creation of non-farm

employment activities or rural industrialization is another. We will undertake

the following:

1. Strengthen an integrated and holistic approach by converging the efforts

made by the Department of Agriculture, the Department of Agrarian

Reform and the Department of Environment and Natural Resources;

2. Maximize the value of production by increasing the value-chain aspects of

primary agricultural products;

3. Promote agricultural productivity growth, especially in coconut areas;

4. Provide marketing assistance; and

5. Establish infrastructure support to agriculture (food supply chain), e.g.,

grains terminal and cold chain facilities.

We will further aim to achieve the following:

� Increase the average annual agricultural household income by 6 percent

per year or 42 percent in six years.

� Establish rice self-sufficiency by 2013.

� Establish trading centers in proposed areas, including La Trinidad,

Benguet, Dupax Sur, Nueva Vizcaya, Buguias, Benguet, Sta. Fe, Nueva

Vizcaya, Tagum, Davao del Norte, Digos, Davao del Sur, Taguig and

Metro Manila, which are the main trading centers of the country.

Page 27 of 34

VI. LOCALIZATION AND EMPOWERMENT STRATEGY FOR

CONVERGENCE

NAPC’s localization strategy is designed to maximize the anti-poverty impact of

existing programs by generating greater LGU and civil society participation, and

providing a frame for linking local and national anti-poverty planning. It has also

been deliberately angled to assist the Aquino government’s anti-corruption drive

by contributing to DILG programs for good local governance, and undercutting

channels of corruption by locating decision-making in inter-agency bodies.

Our poverty program is anchored on substantial and direct benefits to the poor –

on Pantawid Pamilya and PhilHealth, and supply side intensification of health and

education services. We need to develop what might be called Phase 2 programs

geared towards “helping the poor help themselves”. It is in these programs where

community organizing work is essential. Pantawid Pamilya and PhilHealth are top-

down programs, deliberately so Phase 2 programs have to be organized from the

bottom-up.

The center of gravity of the localization program approved by the poverty cluster

will be the municipality. It is here where organizational problems are most

malleable and participation is easiest to organize. To maximize the impact of

Phase 2 programs, municipalities in the poorest regions where Pantawid Pamilya

and PhilHealth are in place will be given priority in the implementation of Phase 2

programs. The goal here is to have maximum impact in the shortest possible time

on the poorest of the poor.

We are currently compiling a list of roughly 600 municipalities based on a

combination of criteria: poverty incidence statistics, Pantawid Pamilya, PAMANA

and PhilHealth focus areas. This list will be pared down based on which

municipalities fulfill the requirements of the program. Baseline data for the

selection of focus municipalities will be poverty incidence and magnitude of

poverty (density of the poor per area).

Selected municipalities are thus from the poorest regions, and from high

population density provinces such as Cebu, where the incidence of poverty may

not be particularly high but where the absolute number of poor is high. Support

for non-focus municipalities will be demand driven. Special attention will be given

Page 28 of 34

to congress persons and/or governors who want to undertake poverty programs

by supporting component municipalities and projects cutting across more than

one municipality.

Participating municipalities will be required to undertake: (1) CBMS surveys,

which will serve as the base for (2) Anti-Poverty Action Planning; and (3) a set of

administrative and organizational reforms based on the DILG “seal of good

housekeeping.” CBMS will complement NHTS-PR and provide a monitoring tool

for anti-poverty work. Concrete targets in the poverty action plan will facilitate

monitoring. Good governance reform will strengthen the capacity of municipal

governments to plan and implement poverty programs. These reforms will feed

into the DILG’s “performance based grants” program.

NAPC is now in the middle of a long, legislated process for selecting sectoral

councils and representatives. To get away from undue focus on issues of

representation, they have tasked the sectors with identifying/devising

empowerment frames/programs for their own sectors. NAPC has instructed the

sectors to get away from their preoccupation with consultations and conferences,

and to devise programs where they actually work with the poor to produce goods

and services. We need to be able to support the organizing component of these

programs.

We have developed a frame for community-driven development (CDD) that will

enable civil society organizations and/or LGUs outside of the 400 municipalities

planned for the expanded KALAHI-CIDSS to implement CDD projects. We propose

a “Salubungan” fund for supporting small projects developed through: (1) a

participatory planning process at the barangay level; (2) community participation

through labor and materials donation; and (3) financial contributions by the

barangay and municipal governments. The fund would finance community

organizing, barangay development planning and “top up” local contributions,

allowing for larger projects. District and provincial wide projects will also be

encouraged.

Fighting Patronage. We propose that anti-poverty programs be grouped into

packages such as “infrastructure for the poor,” where water, rural electrification,

farm-to-market roads, etc, would be put under an inter-agency secretariat. This

would facilitate the salubungan of intensified national and local anti-poverty

Page 29 of 34

mapping. Town mayors with anti-poverty projects requiring national government

financing and/or technical support would only have to go to a couple of

interagency secretariats, rather than going to many different national agencies.

This would have the effect of breaking circuits of patronage, which flow through

departmental lines. The DPWH secretary would then be able to fend off

congressmen and/or governors by simply saying decisions are now being made at

the interagency level.

At the local level, the bayanihan-salubungan program breaks local patronage

circuits by locating decision-making on the initiation of publicly financed projects

at the community level, instead of with the mayor in the municipal hall.

Community involvement in the implementation of projects makes them more

transparent. Poverty programs with intensified community participation provide a

service/delivery-based connection between municipal officials and voters, moving

political relations away from highly personalistic exchanges of money and other

favors.

Poverty and Economic Growth. To correlate poverty programs with programs for

promoting economic growth, we propose dividing the country (in our case, focus

municipalities) into three economic zones:

1. Rural and peri-urban areas close to logistical and industrial hubs in

urbanizing growth areas. Here agriculture and other production by rural

poor can be more easily connected to markets and other factors of

production.

2. Areas further away from urban growth centers but with good resource

endowments, most importantly land and water.

3. Areas with neither good resource endowments nor logistical connections to

urban areas.

Poverty programs can then be differentiated based on the needs of each zone:

marketing and business development in Zone 1, production and roads in Zone 2,

direct assistance and service delivery in Zone 3. This ‘economic geography’

approach to poverty reduction will enable us to link the bottom-up planning at

the municipal level and the top-down approach of programs like Pantawid

Pamilya. It will also open up the possibility of linking poverty programs with other

Page 30 of 34

economic development programs and help shape budget allocations and multi-

year investment plans.

Page 31 of 34

VII. MONITORING AND ADMINISTRATION

The Philippine Development Plan indicators will be the basis for monitoring the

targets in the anti-poverty plan; this will be supplemented by work that would

express the targets in terms of regional, provincial and municipal level outcomes,

whenever practicable. The specific community empowerment methodology

outcome for each of the major anti-poverty programs will also be specified so

that local community organizations can participate in the implementation

process. The role of LGUs in pursuing these outcomes will also be strengthened so

that anti-poverty programs can be pursued in the context of strengthening

devolution through greater autonomy and accountability; benchmarks for

performance will be developed.

Local organizations will be encouraged to participate in the monitoring and

evaluation of programs so that bottom-up solutions can be undertaken to

improve the effectiveness of anti-poverty programs. Government communication

backbones and mapping efforts can support the monitoring and assessment of

programs; the NAPC Enhanced Integrated and Monitoring System for Anti-Poverty

Programs can play a role in this regard. At the end of 2011, it is suggested that

gaps be identified in the implementation of anti-poverty programs and can be

made a priority in the designing/re-designing of the Bayanihan-Salubungan

agenda.

CBMS will be employed as the main assessment instrument for evaluating local

poverty reduction action plans of LGUs and operationalizing performance-based

grants for LGUs and community-led service providers.

Monitoring and evaluation schemes will also be developed for public-private

partnership agreements that will draw budgets and financial guarantees from

government, and for projects that create social capital by fostering inter-local

government cooperation, especially in the management of value chains and

common facilities, and in the renewal of natural resources.

Page 32 of 34

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National Anti-Poverty Program Part2

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