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Philippines Development Plan

2017-2022

Contents

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 

Chapter 1 

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^[1], 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.^[2] 

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”^[3]––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 PHP120,000^[4]for 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)^[5].

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)

                        Education services

                        Financial services

                        Health services

                        Tourism-related services

                        Agricultural development

                        Countryside development

 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.  

Chapter 2 

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. 

Economic Trends 

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.^[6]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.^[7]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^[8].  

  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.^[9]

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^[10].  

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^[11]. Many business services can now be provided over the internet at greatly reduced cost, and this trend is likely to accelerate^[12].

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^[13].

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.^[14]

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^[15]. 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.  

Political Trends 

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^[16].

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.^[17]

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.^[18]

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.^[19]

Maritime Disputes 

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.  

Ageing Populations 

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^[20].  

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.^[21]

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.^[22]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.^[23]

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^[24]. 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.^[25]

Technological Trends^[26]

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.^[27]

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.^[28]

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.^[29]

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.^[30]

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.^[31]  

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.^[32]  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.^[33]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.^[34]  

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.^[35]  

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.^[36]  

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.^[37]  

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.^[38]   

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.^[39]  

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.^[40]  

Environmental Trends 

Climate Change 

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.^[41]

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.^[42]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.^[43]   

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.^[44]  

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.^[45]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. 

Chapter 3 

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 

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.^[46]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. 

Regional Agglomeration  

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.  

1. 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.

1. 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. 

1. 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 

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 Centers 

• 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

Sub-regional Centers 

• 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. 

Connectivity 

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 C^[47]to 1.2-2.3 C^[48]by 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 21^stCentury (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 - 

Chapter 4

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. 

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 

2015.   

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 incomes^[49]should 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.  

Strategic Framework

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.   

Targets 

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^[50]. 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^[51].  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. 

Strategies 

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. 

Chapter 5 

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’ Performance^[52]in the Worldwide Governance Indicators (WGI)^[53]vs. Selected ASEAN Counterparts, 2010-2015 

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.^[54]

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)^[55]; 

WorldEconomic Forum’s Global Competitiveness Index (GCI)^[56]; World Bank’s Ease of Doing Business (EODB) 

Index^[57]; Heritage International’s Index of Economic Freedom (EFI)^[58]

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 report^[59]notes 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.^[60]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.^[61]

Vibrant civic engagement was also apparent in the May 2016 national elections, with a recordhigh voter turnout rate of 81 percent.^[62]

Platforms for citizen participation were made available but these were underutilized by the general public. Two possible reasons are ignorance and apathy^[63]because 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 1^stquarter 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),^[64]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.^[65]

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.  

Strategic Framework 

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.  

Targets  

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

Strategies 

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.^[67]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.^[68]
• 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.  

Legislative Agenda 

The following priority legislative agenda will be pursued: 

Table 5.3 Legislative Agenda to Ensure People-centered, Clean, Efficient, and Effective Governance, 2017-2022 

Chapter 6 

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. 

Strategic Framework 

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. 

Targets 

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 

Strategies 

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^[69], as amended by Republic Act 7691^[70], 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^[71][72].

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. 35^[73]will 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 aid^[74]especially 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.^[75]

• 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^[76], 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.^[77]

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^[78], 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^[79], 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. 

Legislative Agenda 

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 

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Chapter 7 

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 languages^[80]spoken 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^[81]. 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.^[82]” 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 legislations^[83]that created the cultural agencies with clear mandates. But conflicting provisions in certain laws compromise the implementation of cultural initiatives.^[84]

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.^[85]  

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. 

Strategic Framework 

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.  

Targets 

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 Targets^[86]to Promote Philippine Culture and Values, 2017-2022 

Strategies 

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.^[87]” 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 sector^[88]can 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.

Legislative Agenda 

Table7.2 Legislative Agenda to Promote Philippine Culture and Values, 2017-2022  

Chapter 8 

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) 

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 credit^[89]due 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.^[90]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.^[91]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.^[92]  

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.^[93]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.^[94]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.^[95]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. 

Strategic Framework 

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.

Targets 

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  

Strategies 

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.  

Legislative Agenda 

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 

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Chapter 9 

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.^[96]

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^[97].

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.^[98]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.^[99]

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.^[100]

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. 

Strategic Framework 

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.   

Targets 

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 

**Baseline data is as of Q1 2016 *Baseline data is from Q1-Q3 of 2016 

Strategies 

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^[105].

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 

• 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^[107]; 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. 

Legislative Agenda  

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 

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Chapter 10 

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”^[108]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.^[109]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.^[110]

Table 10.1. Health Indicators in the Results Matrix of the Updated Philippine Development Plan and Selected Health Millennium Development Goals (MDGs) Indicators 

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 ARMM^[111]lagged 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.^[112][113]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.   

Basic Education

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)^[114]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,^[115][116]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 

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.^[117]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^[118].   

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^[119].  

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 number^[120]of higher education institutions (HEIs) in the Philippines is ten times more than its neighboring countries,’^[121]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 

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 displacement^[122]and 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. 

Labor Policies 

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.^[123]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.^[124]  

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 21^stcentury 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.  

Strategic Framework 

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.  

Targets 

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)

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) 

Table 10.6 Plan Target to Increase Income Earning Ability (Core Indicators) 

^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: 

ADB 

Note: (*) are indicators based on the SDGs 

Strategies 

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^[127]

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 21^st 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.^[128]  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^[129], 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.   

Legislative Agenda 

To complement and support the actions of the executive branch, the following legislations will be required: 

Table 10.7 Legislative agenda 

Chapter 11

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. 

Risk Factors 

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.”^[130]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^[131]. 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 8425^[132]because 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^[133].

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.^[134]  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^[135], 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) 

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 hazards^[136]experienced. 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.^[137]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.^[138][139]

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 

*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^[140]).  

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 percent^[141]of 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) 

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. 

Strategic Framework  

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. 

Targets 

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 

*UN Sustainable Development Goals indicators 

Strategies 

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,^[143]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.