Second ASEAN Plus Three Seminar on Poverty Reduction 25-29 September 2006 Beijing, China

1. Second ASEAN Plus Three Seminar on Poverty Reduction 25-29 September 2006 Beijing, China Host: People’s Republic of China Sharing Poverty Reduction Experience: Presentation from the Philippines Dolores De Quiros - Castillo Assistant Secretary National Anti-Poverty Commission

2. Outline of Presentation: 1.Philippine Poverty Reduction Strategy and the MTDP 2004 – 2010 --Poverty Focus of the MTDP 2004 – 2010 --Ten Point Agenda of the Macapagal – Arroyo Administration and State of the Nation Address 2006 2. Progress in Achieving the MDGs --Background --Accomplishments and Recommendations 3. Priority Programs/ Thrusts for Poverty Reduction 4. Role of the National Anti- Poverty Commission

3. POVERTY REDUCTION STRATEGY AND PROGRAM THRUSTS Redistributive Social Reform through: • Asset reform, including agrarian reform, aquatic resources reform, urban land reform and recognition of ancestral domain claims 2. Full provision of the requirements of human development services, especially basic education, health, shelter, water and electricity 3. Increased livelihood and employment opportunities and strengthening the capacities of marginalized groups to engage in productive enterprises

4. 4.Providing basic sectors social protection and security from violence through social welfare and assistance, safety nets, social insurance and legal reforms 5. Participation in governance and institution-building, including appointment in key national and local economic, political and sectoral bodies

5. Poverty Situation (Income) • Official poverty incidences for 2000 and 2003 • As earnings rose across all income levels except among top 10, poverty dropped by almost 3 percentage points 24.4

6. POVERTY REDUCTION THRUSTS PGMA 10 Point Legacy Agenda B — Balanced budget E — Education for all A — Automated elections T — Transport infrastructure T — Terminate NPA and MILF hostilities H — Heal the wounds of EDSA 1, 2, and 3 E — Electricity and water for all O — Opportunities for livelihood and jobs D — Decongestion of Metro Manila D — Decentralize Development S -- Subic-Clark alliance

7. State of the Nation Address 2006 Highlights of Accomplishments

8. BALANCED BUDGET • P31.5 billion fiscal deficit from January to June 2006, P58.9 billion below target ceiling of P90.4 billion for the 1st semester 2006 • P471.1 billion revenues for the first 6 months of 2006, up by 21.1% from P389.4billion collected last year • Expenditures of P502.6 billion from January to June 2006 is P43.9 billion below the P546.41 billion ceiling for the first semester of the year EDUCATION FOR ALL • Constructed 6,592 classrooms, 10% more than the 6,000 target • Tuition fee subsidies given to 350,000 students in SY 2004-2005 and 383,482 students in SY 2005-2006 • Distributed 97,980 education vouchers for SY 2006-2007 • Built 1,385 out of 1,617 classrooms in unserved barangays • Provided 3,512 of the 4,769 public high schools with computers • Procured and distributed 105 million textbooks • Allocated 5,300 new teacher positions

9. AUTOMATED ELECTIONS • Supported the computerization of electoral process through increase of the proposed budget of the COMELEC by as much as 135% and the creation of a Technical Working Group to propose amendments to RA 8436 (Election Modernization Law) • Signed EO 498 on 26 January 2006 creating the Office of the Senior Presidential Adviser on Electoral Reforms to examine the whole electoral process and system and make the necessary recommendations • Certified for immediate enactment House Bill 5352 and Senate Bill 2231 which aim to amend Republic Act No. 8436 allowing COMELEC to determine the advanced technology most suitable to the conditions and needs of the Philippine electoral system.

10. TRANSPORT AND DIGITAL INFRASTRUCTURE • Reduced travel time from Mindanao through Visayas to Luzon by 10 hours and cargo transportation cost by 30 percent through the expansion of the nautical highway system • Pursued the following transport infrastructure projects: improvement of around 1,375 kilometers of road along the Nautical Highway; development of new airports in Negros Occidental (Silay City), Iloilo (Sta. Barbara/Cabatuan), and Bohol (Panglao); and development of ports in all the Roll-On and Roll-Off (RoRo) routes. • Launched in 2005 the Philippine Cyberservices Corridor, an ICT belt stretching over 600 miles from Baguio City to Zamboanga to interconnect the countryside and isolated regions of the country and encourage more investments in the information and communications technology-related industries.

11. TERMINATE HOSTILITIES • Conducted 12th Round of GRP-MILF Exploratory Talks in Kuala Lumpur on May 2-4, 2006, which resulted in substantive gains in the Ancestral Domain agenda. • Established the Mindanao Trust Fund Reconstruction and Development Program (MTF-RDP) in December 2005 to support post-conflict reconstruction and development in the conflict-affected areas in Mindanao once a formal GRP-MILF peace agreement is signed. • Established the Kalayaan Barangay Program or KALAHI para sa Kalayaan, a local peace building initiative in 600 areas affected by the communist insurgency which aims to accelerate delivery of basic services in the 600 barangays and transform them as enabling communities for peace and development. • Signed the Agreement on Cessation of Hostilities with Rebolusyonaryong Partidong Manggagawa ng Mindanao on 28 October 2005, at Balay Mindanaw Peace Center, Cagayan de Oro City.

12. HEALING THE WOUNDS OF EDSA • Convened the Council of State on 24 January 2006 to forge a strong consensus among the political leaders on how to strengthen the economy, social equity and political renewal.• PCGG cases favorably decided by the Supreme Court since 2001 include: a) COCOFED - declared coco levy funds as public funds; and b) Marcos Swiss Accounts - recovered 35 Billion Pesos from the said accounts. • Continued to engage all segments of society in a new government of political reform and economic change and introduced reforms in the military as recommended by the Feliciano Commission to address the legitimate grievances of military personnel.

13. ELECTRICITY AND WATER FOR ALL BARANGAYS • Provided electricity to 5,867 barangays from January 2001 to June 2006 under the Expanded Rural Electrification Program, bringing the total number of energized barangays to 39,469 out of the 41,945 barangays, attaining 94.10% barangay-level electrification. • Provided water services to 37 out of the 210 identified waterless areas in Metro Manila through MWSS concessionaires under the President’s Priority Program on Water (P3W) benefiting 25,340 households for Phase III of the MWSS program. Earlier water supply projects implemented under Phases I and II benefited 67,618 households in 61 communities within Metro Manila. • Completed 61 projects while 172 on-going projects were implemented outside Metro Manila to benefit 23,260 households in 541 waterless barangays in 2005, including 40 Kalayaan barangays in conflict areas.

14. OPPORTUNITIES TO CREATE 6 TO 10 MILLION JOBS • The April 2006 Labor Force Survey (LFS) which was released on 15 June 2006 posted an employment growth of 2.5%. or an additional employment of about 803,000 from April 2005 to April 2006. • Generated a total of 3.3 million jobs from January 2005 to March 2006 through various interventions: more than 1 million jobs were created through microfinance and SME lending, more than 300,000 jobs from agribusiness land development and around 2 million from the development of various sector/industries which include housing, tourism, infrastructure, ICT, mining, ecozones and apprenticeship.

15. DECONGESTING METRO MANILA • Pursued the development of the following priority rail/road projects: Northrail Project, Rail Linkage Project, MRT/LRT Loop Project, Southern Luzon Expressway Extension (SLEX) Project, Southern Tagalog Arterial Road (STAR) extension from Lipa City to Batangas City, Manila-Cavite Expressway Extension Project linking the existing R-1 Expressway to Noveleta, Cavite and C-5 (25.5 kms), Manila North Road (McArthur Highway) project, Plaridel Bypass Project, and Circumferential Road–6 (C-6).

16. DEVELOP SUBIC-CLARK • Improved investments with FDI pledges from SBMA amounting to P51.4 billion for the 1st quarter of 2006 or 140 times more than the same period last year. Investments committed through CDC were likewise higher by 29 times than last year’s first quarter investments. • Constructed the Subic-Clark-Tarlac Expressway with Package 1 from Subic to Clark, 32.7926% complete and Phase 2 from Clark to Tarlac, 38.3116% complete as of 5 July 2006 • Commenced construction on Subic Bay Port Development project with Phase 1 and Phase 2 accomplishments at 69.95% as of 14 July 2006 • Upgraded the Diosdado Macapagal International Airport to improve its capability to operate and handle aircraft movement

17. ECONOMIC GROWTH Improved macroeconomic growth performance • GDP grew by 5.5 percent and GNP rose by 5.8% for the 1st quarter of 2006 • Inflation of 7.1% for the first six months of 2006, lower than the 8.3% rate recorded in the same period last year • Interest rates as of June 2006 further eased to 6.074% due to ample liquidity in the financial market fueled by strong demand for government debt papers • Peso appreciated against the US dollar by 2.3% from P53.36 per US$1 on 21 January 2001 to P52.14 on 10 July 2006 • Balance of payments (BOP) surplus of US$2.13 billion in the 1st quarter of 2006 is 8.1% of GDP and nearly thrice the US$782 million surplus posted in the same quarter a year ago • Gross international reserves (GIR) of US$21.147 billion as of end-June 2006 is US$197 million higher from the end-May 2006 level of US$20.950 billion • OFW remittances of US$4.9 billion for the first 5 months of 2006 is 14.8% higher compared to the same period last year

18. Second Philippines Progress Report on the Millennium Development GoalsJune 2005

19. Background • Millennium Declaration was signed in September 2000 • World Summit in September 2005 • Paris Declaration on Aid Effectiveness on March 2005

20. MDGs • Relevance to the Philippines: • Philippines has adopted and committed to realize the MDGs • Part of the UN General Assembly (member country) • Serves as useful guide for pursuing social reform and poverty reduction • Planning ang prioritizing interventions • Tracking progress

22. Source: Second Philippines Progress Report on the Millennium Development Goals Jube 2005

23. Source: Second Philippines Progress Report on the Millennium Development Goals Jube 2005

24. Source: Second Philippines Progress Report on the Millennium Development Goals Jube 2005

25. Source: Second Philippines Progress Report on the Millennium Development Goals Jube 2005

26. Medium Term Philippine Development Plan 2004-2010 Targets 1. Create 10 Million Jobs in six years 2. Bring down the incidence of poverty from 34% to 17% by 2010 (or at least 20%) 3. Aim for a sustainable growth of 7% (at least 6%) which shall enable the economy to generate 10 Million Jobs in 6 years. 4. Bring investments to 28% of GDP in 2 years (at least 25% by 2010) from the current rate of 19% of GDP 5. Increase exports to $50 Billion in 2 years 6. Develop 2 million hectares of land for Agri-business 7. Develop and support 3 million entrepreneurs

27. Medium Term Philippine Development Plan 2004-2010 Targets • Economic Growth and Job Creation Trade and Investment Agribusiness Environment and Natural Resources Housing Construction Tourism Infrastructure Water Fiscal Strength The Financial Sector Labor

28. Medium Term Philippine Development Plan 2004-2010 Targets II. Energy -- Trade and Investment -- Agribusiness III. Social Justice and Basic Needs -- Responding to Basic Needs of the Poor -- National Harmony: Automated Elections -- National Harmony: The Peace Process -- National Harmony: Healing the Wounds of EDSA -- Basic Need: Peace and Order -- Rule of Law

29. Medium Term Philippine Development Plan 2004-2010 Targets IV. Education and Youth Opportunity -- Education -- Science and Technology -- Culture V. Anti-Corruption and Good Governance -- Anti-Corruption -- Bureaucratic Reforms -- Defense Reforms -- Responsive Foreign Policy -- Constitutional Reforms

30. Priority Programs/ Thrusts for Poverty Reduction • Goal: Conduct capability-building programs for the basic sectors for effective participation in governance and decision-making • Target: Development of a framework for the convergent implementation of such programs/ projects and actual implementation of this approach

31. Priority Programs/ Thrusts for Poverty Reduction • Goal: Enhanced livelihood activities for the poor to generate jobs, increase income and strengthen local economy • Strategy: Create 3 Million Microentrepreneurs through microfinance in the next 6 years • Targets: Wider access to convergent, integrated and sustainable microfinance livelihood projects and services

32. Priority Programs/ Thrusts for Poverty Reduction • Goal: Accelerate asset reform in agriculture, urban asset & ancestral domain • Strategy: Provide institutional infrastructure to manage the reform programs for farmers and artisanal fisherfolks, indigenous cultural communities and urban poor

33. Priority Programs/ Thrusts for Poverty Reduction • Goal: Accelerate asset reform in agriculture, urban asset & ancestral domain • Strategy: Pursue urban asset reform • Target: Unlock “dead capital” of the poor by providing security of tenure to informal settlers in disposable government lands suitable for housing

34. Priority Programs/ Thrusts for Poverty Reduction • Goal: Improved accessibility and affordability of essential services • Strategy: Provide potable clean water and sanitation facilities • Target: Prioritized water and sanitation facilities to 200 waterless barangays in NCR and 200 Municipalities outside of NCR • Strategy: Make available quality, essential and affordable drugs • Target: 50% price reduction from the 2001 prices and increase access to essential medicines

35. Priority Programs/ Thrusts for Poverty Reduction • Goal: Improved accessibility and affordability of essential services • Strategy: Expand Health Insurance particularly for indigents through premium subsidy • Target: Universal Coverage of Philhealth (85% Nationwide)

36. Priority Programs/ Thrusts for Poverty Reduction • Goal: Improved accessibility and affordability of essential services • Strategy: accelerated public health program reforms • Target: Strengthened Health Promotion and Disease prevention & control program • Strategy: improve access to quality hospital care • Target: improve hospital services

37. Priority Programs/ Thrusts for Poverty Reduction • Goal: Give preferential access to social protection vulnerable groups • Target: Assistance to children in need of special attention • Target: Assistance to Youth with special needs • Target: Assistance to women in especially difficult circumstances and dysfunctional families • Target: Assistance to Persons with Disabilities • Target: Assistance to elderly persons

38. Priority Programs/ Thrusts for Poverty Reduction • Goal: Empowerment of the Poor • Strategy: Active participation of the poor in decision making especially in the analysis of their problems and definition of solutions • Target: Institutionalize the process of people empowerment • Expansion of KALAHI –CIDSS Strategy in 42 target provinces with active community participation during design, implementation and management of development, poverty reduction and community-based activities • By 2008, KALAHI-CIDSS shall have assisted 10 Million Poor Filipinos

39. National Anti-Poverty Commission Created by virtue of Republic Act 8425, the Social Reform and Poverty Alleviation Act, that took effect on June 30, 1998

40. NAPC KEY MANDATES AND FUNCTIONS • Incorporation of the Social Reform Agenda into the formulation of • developmentplansat the national, regional, sub regional and local levels • (2) Efficiency in the implementation of the anti-poverty programs by • strengthening and/or streamlining present poverty alleviation processes and mechanisms, and reducing the duplication of functions and activities among various government agencies • (3) Coordination and synchronization of social reform and poverty alleviation programs of national government agencies • (4) Exercise of policy oversight responsibilities to ensure the attainment of social reform and poverty alleviation goals

41. NAPC KEY MANDATES AND FUNCTIONS (5) Strengthening of local government units to more effectively operationalize the SRA in local development efforts (6) Institutionalization of basic sectoral and NGO participation in effective planning, decision-making, implementation, monitoring and evaluation of the SRA at all levels (7) Ensuring adequate, efficient and prompt delivery of basic services to the poor; and (8) Enjoining government financial institutions to open credit and savings windows for the poor, and advocating the creation of such windows for the poor among private banking institutions.

42. Office of the President of the Philippines NATIONAL ANTI-POVERTY COMMISSION Maraming Salamat po! Thank You!