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SecondPhilippines

ProgressReporton the

MillenniumDevelopment

Goals

Second Philippines Progress Report on2

Malacañang PalaceManila

The Millennium Development Goals (MDGs) consist of strategies to fight poverty, ensure humandevelopment and build prosperity for the greatest number of Filipino people.

The MDGs are mirrored in my ten-point pro-poor legacy agenda that aim to shore up the economy,uplift the lives of our people, strengthen democracy, and forge peace and national solidarity. The agendaare articulated in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010, which accord-ing to Prof. Jeffrey Sachs is “among the best, if not the best around” as it hews closely to MDGs. TheMTPDP focuses its action strategies on the promotion of livelihood, strengthening of education, attain-ment of fiscal stability, decentralization of development, and arriving at sustained national harmony.Likewise, the 2010 targets in the Plan are aligned and consistent with the MDG targets by 2015.

I am pleased that the Second Philippines Progress Report on the MDGs has been completed, inclose collaboration with the UN Country Team. It may be recalled that the First Philippines ProgressReport on the MDGs published in January 2003 analyzed the country’s performance from 1990 (MDGbaseline year) to 2000. The Second Report, for its part, presents the country’s situation beyond nationalaverages through data disaggregated by sex and geographical location. It also highlights efforts of thecivil society and business sector as well as the MDG localization and advocacy initiatives.

The Second Report shows that we have made several strides toward the attainment of the MDGs.However, we need to double or even triple our efforts in some of the targets. Notwithstanding thelikelihood of achieving the MDGs at the national level, the report uncovers wide disparities acrossregions. A case in point is the poverty situation –while there was a decline in subsistence poverty from15.8 percent in 2000 to 13.8 percent in 2003, six regions all in Luzon registered subsistence povertylower than the national average.

A number of key constraints also hamper the attainment of the MDGs in the Philippines. The Reportidentifies six crosscutting issues and concerns: reducing disparities across regions, increasing resourcesfor MDG-related programs and projects, enforcing stricter implementation of laws and passing ofMDG-supportive bills, strengthening monitoring and implementation, scaling up localization efforts, anddeveloping an advocacy plan. Cognizant of the country’s volatile fiscal situation, these underscore thesynergy of convergence and optimal use of our limited resources by focusing on areas where assistanceis most needed.

The government reaffirms its commitment and has directed its development efforts towards achievingthe MDGs by mainstreaming the MDGs in the Medium-Term Plan and building on the gains and opportu-nities offered by continued and evolving partnerships among various stakeholders.

GLORIA MACAPAGAL-ARROYOPresidentRepublic of the Philippines

FOREWORD

3the Millennium Development Goals

The National Economic and Development Authority (NEDA) recognizes the Millennium Develop-ment Goals (MDGs) as means to a productive life, economic growth, and further development. Thus,we are mindful that the MDGs must be at the core of the development agenda of the government.

Through our Medium-Term Philippine Development Plan (MTPDP) 2004-2010, the overall goalof which is to fight poverty, we seek to contribute to the attainment of the MDG targets by 2015.The strategies, policies and programs of the MTPDP 2004-2010 and its accompanying Medium-Term Public Investment Program (MTPIP) 2005-2010 are highly consistent with the key recommen-dations of the UN-commissioned Millennium Project headed by Prof. Jeffrey Sachs entitled “Invest-ing in Development: A Practical Plan to Achieve the Millennium Development Goals.” The MTPDP’spro-poor strategies require strong investment spending that would greatly contribute to an environ-ment favorable to the fulfillment of the MDGs. We thus intend to scale up the level of investments inthree critical areas: people, physical environment, and infrastructure. Investing in these critical areasis both a means and an end in itself , since these will not only accelerate economic development butalso empower people.

The Millennium Declaration and the Millennium Project Report underscored the significance ofgovernance, peace and security, and human rights including gender equality in the achievement of theMDGs. Correspondingly, the MTPDP reflects these in its chapters on anti-corruption, good gover-nance, bureaucratic reforms, and national harmony. Guided by the principle of gender equity, the Planplaces women and men at the core of development recognizing their gender-specific needs and ad-dressing these needs through gender-responsive strategies and interventions.

This Second Report provides an update on how the country and its different regions are faringvis-à-vis the MDG targets. It shows that we will likely achieve the targets on reducing extremepoverty, child mortality, and incidence of tuberculosis, malaria and HIV/AIDS as well as improvingdietary requirement, gender equality in education, and access to safe drinking water. However, westill face the challenges of closing the gaps in meeting the targets for maternal health, access to repro-ductive health services, nutrition, and primary education. Also, the depletion of the country’s naturalresource base continues to be a significant threat. Across regions, we have to address the widedisparities in development.

This report also features the contributions of the civil society and private sector to attain the MDGsas well as the advocacy and localization initiatives that have been made. Hopefully, this report will triggeraction from various stakeholders–the government especially the local government units, civil society,private sector, and the communities–to accelerate progress in meeting the goals. Notwithstanding thegains we already accomplished, the country has to intensify its efforts. The goals may appear ambitiousbut if we put our bold strategies into action we can definitely make dramatic progress.

We hope that this endeavor will strengthen and unify the country’s efforts and initiatives needed torespond optimally to the challenges and gaps in achieving the MDGs.

ROMULO L. NERISecretary of Socioeconomic Planning

PREFACE


Congratulations to the Philippines on the Second Philippines Progress Report on the Millennium Devel-opment Goals. The progress made on each Goal, the challenges that remain as well as next steps aresystematically and clearly delineated in the Report. Data are disaggregated regionally and by gender.

Of critical importance is the process by which the Report was crafted. This involved the active andspirited participation of business and private sector organizations, environmental groups, women’s organi-zations, NGOs involved in rural development, resource centers working with the urban poor, informalsettlers and industrial workers, academia and developmental communication / community media groups ina multi-stakeholder consultation observed by the international donor and diplomatic communities. Consulta-tions were held with these various stakeholders as Government placed drafts of the Report on the table fortheir critique and constructive suggestions. For this, we commend Secretary Romulo Neri and his verycompetent team at the National Economic and Development Authority.

As documented in the Report, it is wonderful to see the efforts of government and the various stake-holders to weave the Millennium Development Goals into the very fabric of Philippine institutions, pro-cesses and cultural values. In the period between the publication of the First Philippines Progress Reportuntil now, so much work has been done on the ground to mainstream the Millennium Development Goals.

After a series of roundtable discussions on the Millennium Development Goals, the House of Repre-sentatives has formally created a Committee on the Millennium Development Goals with 19 members. It istasked to review existing laws, conduct studies in aid of legislation and ensure budgetary support for theMillennium Development Goals. This is historic and visionary.

The 2004 - 2010 Medium Term Philippine Development Program placed the Millennium DevelopmentGoals at the centre of development concerns for the country.

For its part, the business sector initiated a series of discussions on the Millennium Development Goals,culminating in the December 2004 launch of A Roadmap to Millennium Development for Philippine Business.

At the local government level, local officials are working hard to localize the Millennium DevelopmentGoals. Local government officials have volunteered to be scorecarded by their constituents as far asMillennium Development Goal implementation is concerned, in a true demonstration of accountability andgood governance.

Civil society groups have also brought their tremendous expertise to bear on advocating the MillenniumDevelopment Goals. Some are taking part in the efforts to come up with benchmarks and monitoring /evaluation systems for the achievement of the Millennium Development Goals down to the barangay level.Young people have crystallized their role toward the Millennium Development Goals in the recentlyreleased Youth and the Millennium Development Goals: Challenges and Opportunities for Implementation.

The Second Philippines Progress Report shows the determination of the Philippine Government andother key stakeholders to achieve the Millennium Development Goals in the Philippines.

On behalf of the United Nations family in the Philippines, I wish to commend the Philippine Governmentfor launching the Second Philippines Progress Report on progress being made to attain the MillenniumDevelopment Goals. The United Nations family in the Philippines is deeply committed to doing everythingit can to support the multiple efforts of the different stakeholders in the country to ensure that the Philippinesattains the Millennium Development Goals.

DEBORAH LANDEYUnited Nations Resident Coordinator

MESSAGE


The Second Philippines Progress Report on the Millennium Development Goals was prepared through broad-based consultations with national andlocal government agencies, civil society, business sector and donor community. The National Economic and Development Authority (NEDA), as Chairof the Multisectoral Committee on International Human Development Commitments (MC-IHDC) spearheaded the consultations in close coordination withthe United Nations Country Team.

KEY CONTRIBUTORSNational Economic and Development Authority

Romulo L. Neri (Secretary of Socioeconomic Planning and Director General); Margarita R. Songco (Assistant Director General); Erlinda M. Capones(Director, Social Development Staff); Cleofe S. Pastrana (Assistant Director, Social Development Staff); Marites B. Lagarto (Chief Economic DevelopmentSpecialist [EDS]); Eden Grace R. Lumilan (Senior EDS); April H. Mendoza (EDS II); Arlene S. Ruiz (Chief EDS); Elnora C. Romero (Chief EDS);Emmanuel C. Torrente (Supervising EDS); Ramon M. Falcon (Supervising EDS); Angelito S. Obcena (Supervising EDS); Reina Elena C. Go Tian (SeniorEDS); Susan M. Carandang (Senior EDS); Rhodora A. Tiongson (Senior EDS); Edgardo S. Aranjuez II (Senior EDS ); Michael Angelo U. Provido (SeniorEDS); Dennis V. Villarta (Senior EDS); Rhona B. Caoli Rodriguez (Senior EDS); Gemma T. Bade (Senior EDS); Kathy Fule-Logan (Senior EDS); JosephRyan B. Paglingayen (EDS II); Rozanno E. Rufino (EDS II); Lianelle V. Gopez (EDS II); Girlie Grace J. Casimiro (EDS II); Rae Francis D. Ong (EDSII); Carmela O. Enriquez (EDS I); Sheara L. Lupangco (EDS I); Edwin P. Daiwey (Chief EDS); Celine R. de Castro (Supervising EDS).Lead Agencies for MDGs of the MC-IHDC

National Anti-Poverty Commission (Poverty Alleviation); Housing and Urban Development Coordinating Council (Shelter and Human Settlements);Department of Health (Health Concerns including Water and Sanitation); National Nutrition Council (Hunger and Nutrition); Department of Education(Primary Education); National Commission on the Role of Filipino Women (Gender Equality and Women Empowerment); Department of Environment andNatural Resources (Environmental Sustainability); Department of Interior and Local Government (Localization of the MDGs); National StatisticalCoordination Board and National Statistics Office (Indicators/Statistics); Department of Budget and Management (Financing); Department of Trade andIndustry and Department of Finance (Global Partnership for Development); NEDA (Overall Coordinator).Office of the United Nations Resident Coordinator

Deborah Landey (UN Resident Coordinator); Maria Rosanna E. Senga (Advisor to the UN Resident Coordinator); Jaclynn Jane R. Saez (ResidentCoordinator Programme Assistant).

UNITED NATIONS COUNTRY TEAMRamesh C.A. Jain (FAO); Zahidul A. Huque (UNFPA); Nicholas K. Alipui (UNICEF); Jean-Marc J. Olive (WHO); Werner Konrad Blenk (ILO);

Rico Salcedo (UNCHR); Kyo Naka (UNDP); Stephen Hill (UNESCO); Brenda Pimentel (IMO); Ma. Elena F. Borromeo (UNAIDS); Lowie C.Rosales (UN-Habitat); Corazon T. Urquico (UNDP); Wilfredo G. Nuqui (UNICEF); Ma. Florence T. Tayzon (UNFPA); Clarissa Arida (UNDP); LucilleNievera (WHO); Lourdes Quintos (UNAIDS).

CONSULTANTMaria Loreto Padua, Assistant Professor of UP College of Social Work and Community Development.

PARTICIPANTS IN NATIONAL CONSULTATION WORKSHOPGovernment

Commission on Population; Council for the Welfare of Children; Cooperative Development Authority; Congressional Planning & Budget Department;Department of Agriculture; Department of Budget & Management; Department of Education; Department of Environment & Natural Resources; Departmentof Finance; Department of Foreign Affairs; Department of Health; Department of Interior & Local Government; Department of Labor & Employment;Department of Land Reform; Department of Public Works & Highways; Department of Social Welfare & Development; Department of Trade & Industry;Food & Nutrition Research Institute; Housing & Urban Development Coordinating Council; Housing & Land Use Regulatory Board; Local Water UtilitiesAdministration; National Water Resources Board; National Economic & Development Authority (Agriculture Staff, Development Information Staff,Infrastructure Staff, Management Staff, Social Development Staff, National Policy & Planning Staff, Project Monitoring Staff, Public Investment Staff, Trade,Industry & Utilities Staff, Regional Development Coordination Staff, NEDA Regional Offices IV-A, IV-B, V and X, and Sixth Country Program for Children-Program Coordination & Monitoring Unit); National Anti-Poverty Commission; National Commission on the Role of Filipino Women; National YouthCommission; National Nutrition Council; National Statistical Coordination Board; National Statistics Office; National Commission on Indigenous People;Office of the Executive Secretary; Office of the Presidential Adviser on the Peace Process; Presidential Commission for the Urban Poor; PhilippineInformation Agency; Technical Education & Skills Development Authority; Philippine National AIDS Council; Senate Economic Planning Office; Houseof Representatives Special Committee on the MDGs; League of Provinces; League of Municipalities.Non-Government Organizations

Action for Economic Reforms; Civil Society Counterpart Council for Sustainable Development; Co-Multiversity; Environmental Broadcast Circle;Institute on Church and Social Issues; Molave Development Foundation, Inc.; National Council for Social Development; Philippine Business for SocialProgress; Philippine Coalition Against Tuberculosis; Philippine Center for Population Development; Philippine League of Government Midwives;Philippine Legislators’ Committee on Population and Development; Philippine NGO Council for Health, Population and Welfare; Philippine RuralReconstruction Movement; Samahan ng Mamamayan-Zone One Tondo Organization; Social Watch Philippines.Business Sector/Foundations

Maynilad; ABS-CBN Foundation; Zuellig Foundation.Donor Community

United Nations Country Team; Asian Development Bank; Australian Agency for International Development; Canadian International DevelopmentAgency; International Finance Corporation; International Monetary Fund; International Organization for Migration; Japan International Cooperation Agency;Korea International Cooperation Agency; Netherlands Embassy; Spanish Embassy; Swedish Embassy; United States Agency for InternationalDevelopment; World Bank.Academe/ Research Institutions

Ateneo de Manila University; Institute for Social Studies and Action; UP-National College of Public Administration and Governance; Asia-PacificPolicy Center; Philippine Institute for Development Studies.

EDITORIAL SUPPORT AND DESIGNPeople and Advocacy

ACKNOWLEDGMENTS


FOREWORDPREFACEACKNOWLEDGMENTS

EXECUTIVE SUMMARY 10

THE DEVELOPMENT CONTEXT 29

PROGRESS BY GOALGOAL 1: Eradicate Extreme Poverty and Hunger* Target 1: Halve the proportion of people living in extreme poverty

between 1990 and 2015 32* Target 2: Halve the proportion of population below the minimum level of dietary

energy consumption and halve the proportion of underweight children(under five years old) 41

GOAL 2: Achieve Universal Primary Education* Target 3: Achieve universal access to primary education by 2015 49

GOAL 3: Promote Gender Equality* Target 4: Eliminate gender disparity in primary and secondary education,

preferably by 2005, and in all levels of education no later than 2015 64

GOAL 4: Reduce Child Mortality* Target 5: Reduce children under-five mortality rate by two-thirds by 2015 72

GOAL 5: Improve Maternal Health

TABLE OF CONTENTS



* Target 6: Reduce maternal mortality rate by three-quarters by 2015(half by 2000, half by 2015) 74

* Target 7: Increase access to reproductive health (RH) services to 60 percent by2005, 80 percent by 2010 and 100 percent by 2015 77

GOAL 6: Combat HIV/AIDS, Malaria and other Diseases* Target 8: Halt and reverse the spread of HIV/AIDS by 2015 84* Target 9: Halt and begin to reverse the incidence of malaria and other major diseases by 2015 88

GOAL 7: Ensure Environmental Sustainability* Target 10: Implement national strategies for sustainable development by 2005,

to reverse loss of environmental resources by 2015 91* Target 11: Halve the proportion of people with no access to safe drinking water and

basic sanitation, or those who cannot afford it, by 2015 100* Target 12: Achieve a significant improvement in lives of at least 100 million slum dwellers by 2020 103

GOAL 8: Develop a Global Partnership for Development* Target 13: Develop further an open, rule-based, predictable, non-discriminatory trading

and financial system; include a commitment to good governance,development and poverty reduction–both nationally and internationally 107

* Target 14: Deal comprehensively with the debt problems of developing countriesthrough national and international measures in order to make debtssustainable in the long term 111

* Target 15: Provide access to affordable essential drugs, in cooperation with pharmaceutical companies 114

ADVOCATING AND LOCALIZING THE MDGs 116

FINANCING THE MDGs 128

MONITORING THE MDGs 132



TABLESTable 1: MDGs: Rate of Progress 28Table 2: Key Development Indicators 30Table 3: Government Targets Under the Medium-Term Philippine Development Plan 2004-2010 32Table 4: Subsistence Incidence, by Population, by Region (in percent) 32Table 5: Regional Poverty Incidence, by Population (in percent) 34Table 6: Gini Concentration Ratios, by Region, 2000 and 2003 36Table 7: Percentage of Households with <100% Energy Adequacy 41Table 8: Prevalence of Underweight 0 to 5-Year-Olds, by Region 42Table 9: Employed Persons by Major Occupation Group and Sex, 2001 and 2003

(in thousands except percent) 67Table 10: Prevalence of STIs in General Population, 2002

RTI/STI Prevalence Survey In Selected Sites in the Philippines 84Table 11: Forest Cover by Forest Type, 2003 91Table 12: Area Reforested, 1990-2003 (in hectares) 92Table 13: Informal Settler Families, by Region, 2002 103Table 14: Program for Slum Dwellers 103Table 15: Comparative GDP Growth Rates of Asian Countries (in percent) 107Table 16: Export and Import Growth Rates 107Table 17: Exports Performance by Country of Destination, 2001-2003

(Share of Total and Growth Rates in Percent) 108Table 18: National Government Expenditure Program by Sector, FYs 2000-2005

(net of debt amortization) 112Table 19: Specific Business Response to the MDGs 119Table 20: Distribution of Public Expenditures, National Government,

by sector, 2001-2004 (in thousand pesos) 128Table 21: Distribution of Public Expenditures, Local Government Units,

by sector, 2001-2004 (in thousand pesos) 128Table 22: ODA Commitments, by sector, 2001-2004 (US$ million) 128Table 23: Lead Agencies per Area of Concern 134

FIGURESFigure 1: Subsistence Incidence, by Population, by Region, 2003 33Figure 2: Poverty Incidence, by Population, by Region, 2003 35Figure 3: Gini Coefficients of Selected Asian Countries 36Figure 4: Gini Concentration Ratios, by Region, 2003 37



Figure 5: Proportion of Households with Per Capita IntakeBelow 100 Percent Dietary Energy Requirement 41

Figure 6: Trends in the Prevalence of Underweight Among 0 to 5-Year-Old Children 42Figure 7: Projection on Prevalence of Underweight Among 0 to 5-Year-Old Children 42Figure 8: Percentage of Households with less than 100% Energy Adequacy 43Figure 9: Percentage of Underweight Children 0 to 5-Year-Olds 44Figure 10: Elementary Education Participation Rate, SY 2000-2003 49Figure 11: Elementary Education Participation Rate Across Regions, SY 2002-2003 50Figure 12: Elementary Education Completion and Cohort Survival Rate, SY 2000-2003 52Figure 13: Cohort Survival Rate Across Regions, SY 2002-2003 52Figure 14: Completion Rate Across Regions, SY 2002-2003 54Figure 15: Simple Literacy Across Regions (10 years old and over), 2003 56Figure 16: Functional Literacy Rate Across Regions (10 to 64 years old), 2003 58Figure 17: Comparative Literacy Rates by Sex, Philippines, 1994 & 2003 64Figure 18: Elementary Participation Rates by Sex, by Region, SY 2003-2004 65Figure 19: Secondary Education Participation Rate Gender Parity Index, SY 2003-2004 66Figure 20: Unmet Need for Family Planning 78Figure 21: Informal Settler Families, by Region 104

BEST PRACTICESThe Ahon Badjao Project of Zamboanga City 38Action for Nutrition Improvement (ANI) Concept 45The Longer Road 60Empowering Maguindanao Women through Education and Skills Development 70Zero Maternal Death in Gattaran, Cagayan 76The Lamlunay Research and Learning Center:Bringing Hope to Barangay Upo, Maitum, Saranggani Province 98The Molave Experience 102Localizing the MDGs: The Naga City Framework 125

ACRONYMS 136

REFERENCES 140

ANNEXAnnex 1: MDG Localization Framework 142



EXECUTIVESUMMARY

Halve the proportion of peopleliving in extreme povertybetween 1990 and 2015

As of 2003, 13.8 percent of the population (10.4percent of all Filipino families) were living belowthe subsistence food threshold or were food poor.This represents a decline from the 2000 figure of15.8 percent of the population (12.3 percent offamilies). The subsistence level or threshold wasestimated at PhP8,134 per capita per year orPhP3,389 per month for a family of five members.Regions IX and XIII showed the highest percent-age of food-poor population. Six regions, all inLuzon, were in extreme poverty, lower than thenational average.

In terms of overall poverty incidence in 2003,however, 30.4 percent of the Filipinos (or 24.7percent of Filipino families) were consideredincome poor. Six regions showed income povertylower than the national average.

The major challenges and priorities for actionare the following: fast-tracking the asset reformprogram; prioritizing microenterprise development;strengthening local government and civil societycapacity in governance; and localizing poverty-reduction efforts.

Target1


11the Millennium Development Goalsthe Millenni velopment Goals

Despite the adequate food supply, many Filipinoscontinue to grapple with food insecurity. The proportionof Filipino households with per capita intake below 100percent dietary energy requirement decreased from 69.4percent in 1993 to 56.9 percent in 2003. However, theaverage annual percentage point reduction of 1.25percent is lower than the required annual decrease of1.85 percentage points per year to meet the 34.7 percenttarget by 2015. Households with less than 100 percentenergy adequacy surpassed the national figure of 56.9percent in 2003 in at least eight regions (Cavite-Laguna-Batangas-Rizal-Quezon or CALABARZON, RegionsV, VII, VIII, IX, X, XII and the Autonomous Region inMuslim Mindanao or ARMM).

The prevalence of underweight preschool childrendeclined from 30.6 percent in 2001 to 27.6 percent in2003. However, the average annual rate of decline of0.53 percent is below the desired 0.69 percent inorder to meet the target of 17.25 percent by 2015.Eleven out of 17 regions recorded prevalence rateshigher than the national figure of 27.6 percent.

The assessment of the Medium-Term PhilippinePlan of Action on Nutrition (MTPPAN) 1999-2004is ongoing, results of which will be the basis for thenext medium-term plan.

In response to the challenges under the firstMillennium Development Goals (MDG) Report, theAction for Nutrition Improvement or ANI wasformulated as a national program that can be repli-cated at the local level. The National Economic andDevelopment Authority-Social Development Commit-tee (NEDA-SDC) approved the program and issueda resolution integrating nutrition objectives andcomponents into the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of SocialServices (KALAHI-CIDSS), a community-basedpoverty alleviation program. Efforts along nutrition

improvement were also undertaken by: the Councilfor the Welfare of Children (CWC), in terms of theBright Child campaign; the Department of SocialWelfare and Development (DSWD) and the NationalAnti-Poverty Commission (NAPC) in terms of theFood for Work; and the National Food Authority(NFA) in terms of the new rice distribution schemecalled the Targeted Rice Distribution Program(TRDP). The business sector committed to popular-ize food fortification and nutrition in the workplace;adopt nutrition programs at the community level; andboost mass media advocacy for consumers topatronize the products with the Sangkap Pinoy seal.

Priority actions were drawn up to attain thisMDG target:

1) Strategic complementation with otherstrategies such as the anti-poverty measures andthe Bright Child Program;

2) Improved food security at the macro andhousehold levels;

3) Prevention of intergenerational transfer ofundernutrition, by considering the needs and dy-namic interaction of the consequences of nutritionaldeficiencies in all stages of the life cycle;

4) Reduction of wide disparities in nutritionalstatus by focusing efforts on the most at-risk areas(rural areas and ARMM), particularly children insituations of armed conflict;

5) Strict enforcement of the ASIN Law andFood Fortification Act;

6) Increased investments in nutrition;7) Strengthened community involvement;8) Popularization of LGUs’ contributions in

addressing nutrition problems;9) Improved data at the local level; and10) Arrest of the increasing trend of overweight

and obesity.

Halve the proportion of population below the minimum level of dietary energyconsumption and halve the proportion of underweight children (under five years old)

Target2

11


Target3


Latest data on participation rate suggest thatgreat effort must be exerted to achieve the targetof universal access to elementary education.Based on the school-age population of 6-11 yearsold, the participation rate at the primary or elemen-tary level stood at 90.05 percent in SY 2002-2003.Across regions, ARMM registered the highestparticipation rate with 91.37 percent while thelowest was registered in the National CapitalRegion (NCR), with 77.15 percent.

Cohort survival rate (CSR) at elementarylevel steadily improved from 67.21 percent (SY2000-2001) to 69.84 percent (SY 2002-2003),but remains low. Slight improvements wereshown by the completion rate from 66.13 per-cent to 66.85 percent; and the dropout rate, from

7.67 percent to 7.34 percent, for the two periods.ARMM registered the lowest cohort survival rateand completion rate at 47.49 percent and 42.91percent, respectively. On the positive side,Region I (Ilocos Region) posted the highest CSRand completion rates of 87.47 percent and 84.09percent, respectively, almost twice higher thanthose of the ARMM.

Based on the 2003 Functional LiteracyEducation and Mass Media Survey (FLEMMS),the simple literacy rate stood at 93.9 percent,one of the highest in Southeast Asia. Acrossregions, the ARMM registered the lowest with70.7 percent, in sharp contrast to the 99.1percent literacy rate in the NCR.

Three major challenges and priorities foraction include: a) improving school-retentioncapacity; b) improving quality; and c) improvinggovernance and resource allocation and utiliza-tion.

Achieve universal access toprimary education by 2015


Target4

Eliminate gender disparity inprimary and secondary education,preferably by 2005, and in all levelsof education no later than 2015

2001-2002 showed 55 percent of total enroleeswere female while the graduation figures for SY2000-2001 showed 60 percent of graduates werefemale. Likewise, the entry of females into several“traditionally” male-dominated disciplines hascontinued.

The scenario in the technical-vocational educa-tion and training (TVET), on the other hand, indi-cated an almost equal distribution between femaleand male graduates (49 percent vs. 51 percent)based on SY 2002-2003. However, regionalenrolment data (SY 2003-2004) suggested unevendegrees of disparity, with NCR showing a female-male ratio of 14:10 while Region II had 6:10.

Significant efforts are being pursued by theDepartment of Education (DepEd) to address thegender concern. Notable is the consideration ofgender issues in the 2002 Restructured BasicEducation Curriculum. The Technical Educationand Skills Development Authority (TESDA), for itspart, put up the Kasanayan-Kabuhayan-One-StopShop to address the needs of displaced womenworkers and workers in the informal sector.

With the above developments, addressinggender concerns in education requires the follow-ing priority actions: (1) understanding the sociocul-tural nuances of Philippine gender issues; (2)strengthening the alternative learning systemprimarily through the Bureau of AlternativeLearning System (BALS) at DepEd to ensure thatall types of learners outside the school system arereached through a more flexible approach; (3)improving the gender content of education; (4)making media more gender-sensitive; and (5)providing better opportunities for women.

Female advantage over the male can begenerally observed across the three levels ofeducation based on indicators such as simpleliteracy rate, functional literacy rate, participationrate, cohort survival rate, completion rate, andnumber of graduates in higher education.

For simple literacy (based on the 2003FLEMMS), the rate among females was 94.6percent and among males, 93.2 percent. On aregional basis, female dominance was true for 12 ofthe 17 regions. The regions which showed slightmale dominance were: Cordillera AdministrativeRegion (CAR), Ilocos Region, Central Luzon,Mindoro-Marinduque-Romblon-Palawan(MIMAROPA) and ARMM.

Female advantage is more pronounced in func-tional literacy, as female rates were higher in allregions (except in the ARMM with rates of 62.1percent and 63.6 percent for females and males,respectively). Likewise, the range of gender disparityin functional literacy is much wider, with EasternVisayas showing the widest gap (82.1 percent vs.71.7 percent).

Although girls showed higher participation rates inelementary and high school, disparity was generallyminimal across regions at the elementary level exceptin the ARMM. Large discrepancies were noted atthe secondary level particularly in Eastern Visayas.

At the higher education level, female domi-nance was also noted. Enrolment figures for SY



Target5

Reduce children under-fivemortality rate by two-thirdsby 2015

the revised Implementing Rules and Regulations(IRR) of the Act Promoting Salt Iodization Nation-wide (ASIN) was also approved in 2003. Like-wise, the Comprehensive Policy and a NationalSystem for Ensuring Newborn Screening or RA

9288 was also passed in July 2003.Hence, to enhance government efforts

to achieve this MDG target, the followingmeasures need to be given priority:

1) Strengthening of the local govern-ment unit (LGU) provision and manage-ment of Maternal and Child Health

(MCH) service since under the LocalGovernment Code, the LGU is theprimary provider of basic health careservices;

2) Increasing advocacy for thefinancing and delivery of under-fivehealth services at the local level;

3) Increasing the supply of afford-able and fortified foods;

4) Improving the policy environmentfor financing and provision of services;

5) Improving policy dissemination;6) Developing the Perinatal and

Neonatal Programs; and7) Advocating infant and young child

feeding.

Infant mortality rate and child mortality rateshave shown decreasing trends for the past 10years from 34 to 29 infant deaths for 1,000 livebirths and from 54 to 40 under-five deaths per1,000 live births, respectively.

However, a cause for concern is the repeateddecline in the number of children fully immunizedbefore they turn a year old. For example, the2002 figure of 62 percent in 2002 is a three-percentage point decline from the 2000figure of 65 percent.

Programs/efforts implemented toaddress these concerns include the follow-ing: (1) Expanded Program on Immunization(EPI) of the Department of Health (DOH); (2)Early Childhood Development (ECD) whichimplements a 10-year National Early ChildhoodDevelopment Program; (3) Bright Child which isan integrated approach to deal with the physical,emotional, social and educational requirements ofraising a bright child; and (4) Mother-and-Baby-Friendly Hospital Initiative (MBFHI).

In terms of legislation, RA 8976 or the Philip-pine Food Fortification Act was passed in 2000 and



Target6


Reduce maternal mortalityrate by three-quarters by 2015(half by 2000, half by 2015)

There were several noteworthy family plan-ning program/activities: mainstreaming of naturalfamily planning method; deployment of 640volunteers health workers in KALAHI areas ofNCR for the provision of FP services to theurban poor; training of Barangay Health Work-ers (BHWs) in 250 municipalities on Commu-nity-Based Management Information System(CBMIS) and FP provision, and the Door-to-Door Family Planning Campaign. Not to beoverlooked are local health endeavors like theUNFPA-assisted Gattaran Birthing CenterProjects in Gattaran, Cagayan, which washonored by the Commission on Population(POPCOM) as one of the best practices inReproductive Health Care.

Three major issues cramp efforts to reducematernal mortality rate by three quarters by2015. First, is the urgent need to improve datacollection and data quality. Related to this, theNational Statistics Office (NSO) will enhancethe civil registration system with focus onimproving the system for generating MMR andunder-five mortality rate (U5MR) data.

Second, is the need to accelerate efforts toimprove maternal health, with emphasis ondeveloping alternative and creative strategies toprovide adequate funding and mobilize all stake-holders such as the families and the communities.

Third, is the need to address the brain drainof health workers, specifically doctors andnurses. The country cannot match the economicopportunities offered abroad; hence, there isneed to review the compensation, incentives andbenefits of health workers toward a moreattractive compensation package. Likewise, anational health human resources plan has to beformulated and adopted.

Estimates from the 1993 and 1998 NationalDemographic and Health Survey (NDHS)showed a declining trend of maternal mortalityrate (MMR): from 209 per 100,000 live births for1987-1993 down to 172 per 100,000 live births in1991-1997. However, it is difficult to concludethat MMR has declined, due to problems of largesampling errors and the absence of new officialdata.

Seven related or proxy indicators weretherefore analyzed from 1998 to 2003 in theabsence of new data. Positive trends wereshown by six indicators: proportion of birthsattended by health professionals; percentage ofbirths delivered in a health facility; prenatalcare coverage; post-natal care coverage;percentage of those injected with tetanustoxoid; and the provisions of iron tablet supple-ments. On the other hand, maternal anemia inpregnant women declined for the same period.

The government promotes maternal healththrough the two-pronged strategy involving safemotherhood and family planning services. Safemotherhood strategies involve nine aspects:training, information dissemination, social mobili-zation, community participation, promotion ofgender sensitivity, quality assurance schemes,MMR audit, upgrading of equipment for obstetricemergencies, and making quality care acces-sible.

In family planning (FP), the DOH anchored itsprogram on four major principles: responsibleparenthood, respect for life, birth spacing andinformed choice.


Target7


Increase access to reproductivehealth (RH) services to 60 percentby 2005, 80 percent by 2010 and100 percent by 2015

percent for the same period.The government, particularly through the

POPCOM and the DOH, came up with severalplans/programs/strategies to respond to the needsof women and youth of reproductive age. Fore-most of these, on the part of POPCOM, are: theformulation of the Philippine Population Manage-ment Program (PPMP) 2001-2004, the PPMPStrategic Operational Plan (SOP) and PPMPPublic Investment Program (PIP) 2002-2004.DOH, on the other hand, formulated the 10-yearReproductive Health (RH) Plan and issuedseveral Administrative Orders (AOs) in supportof the National Family Planning (FP) Program,such as AO No. 79 series of 2000 specifying theSafe Motherhood Policy and AO No. 132 seriesof 2004, creating the DOH Natural FP Programand its Program Management.

Attainment of the RH target requires con-certed efforts among the various sectors includingthe legislative, the church, civil society groups andgovernment, particularly the LGUs. To achievethis target, the priority actions include:

1) Passage of a legislation on RH;2) Establishment of a strong partnership among various RH stakeholders;3) Filling of the anticipated shortfall in FP commodities;4) Expansion of the NHIP;5) Filling up of data gaps on RH; and6) Provision of culture-sensitive, high quality, accessible and user-friendly services on RH.

Considering the 10 service components ofReproductive Health (RH), it is difficult to assessholistically whether the country is on target ornot. Hence, the use of proxy indicators wasresorted to.

In terms of the number of antenatal check-ups(ANC), the 2003 National Demographic andHealth Survey (NDHS) showed that only 7 out of10 women, who had live births in the past fiveyears before the survey, received a minimum offour ANCs of which more than half (53 percent)were performed in the first trimester. Healthprofessionals attended to almost 88 percent of alldeliveries and nearly 72 percent received post-partum check-ups (PPCs).

A modest decline in fertility was observedbased on the decline of actual total fertility rate(TFR) from 3.7 percent (1996-1998) to 3.5percent (2001-2003). This is still one child morethan the desired fertility rate of 2.5 children perwomen.

Contraceptive prevalence rate (CPR) slightlyincreased from 47 percent in 1998 to 49 percentin 2003, owing to the increased use of moderncontraceptives from 28 percent to 33 percent.The unmet need for FP services of currentlymarried women declined from 20 percent to 17


Halt and reverse the spreadof HIV/AIDS by 2015

Target8


servants, informal sector, and overseas Filipinoworkers (OFWs);

2) Strengthening of institutional and generalpublic preventive intervention which include thedevelopment of a unified advocacy plan and anexpanded voluntary counseling and testingservice;

3) Scaling up and improving the quality oftreatment, case and support services for peopleinfected with and affected by HIV/AIDS–thesecan include functional referral chains, communityand home-based care system, and HIV-positivecommunity support groups;

4) Integration of stigma-reduction measures inthe preventive, treatment, case and supportservices and in the design of management systems;

5) Strengthening and institutionalization ofmanagement systems in support of the delivery ofHIV/AIDS information and preventive services,treatment, care and support which can includeconcretizing guidelines in manuals and standardiza-tion, an expanded collaboration with the privatesector including faith-based organizations, fast-tracking of the establishment of a monitoring andevaluation system, and expanded local responses.

The number of HIV/Ab seropositive casessince 1984 increased from 1,451 in 2000 to 2,200 inDecember 2004. Epidemiologists and expertsestimate that the actual number of HIV cases isaround 10,000. Despite the increasing number ofcases, the prevalence rate remains consistentlybelow one percent.

Despite the low prevalence and the slow rateof increase in the number of cases, the precondi-tions for a full-blown epidemic are present: lowcondom use, prevalence of sexually-transmittedinfections (STIs), increasing rural-urban migration,relatively young sexually active population, and athriving sex industry in selected areas. The Philip-pine National AIDS Council (PNAC) now de-scribes the epidemic to be “hidden and growing.”

Although there is almost universal awarenessof AIDS among the youth, a sizeable portion ofthem have misconceptions. Furthermore, theprevalence of premarital sexual activity among theyouth increased from 18 percent in 1994 to 23percent in 2002.

The policies and programs implemented in thecountry were in line with Republic Act 8504 orthe Philippine AIDS Prevention and Control Actof 1998 and the Third Medium-Term Plan (MTPIII) on AIDS covering the period 2000-2004.Various prevention and control efforts wereundertaken both by government agencies andnongovernment organizations (NGOs). In termsof accelerating local responses, local AIDScouncils have been established in sites previouslygiven foreign assistance.

Currently being developed is the national HIV/AIDS monitoring system, which involvesmultisectoral participation. Preparatory activitiesare ongoing in the formulation of the FourthMedium-Term Plan for AIDS covering the period2005-2010.

Although there was an observed accelerationof local response against HIV/AIDS during 2000-2003, sustaining prevention activities and strength-ening multisectoral involvement remain criticalchallenges.

Current efforts among five major areas shouldthus be sustained and accelerated:

1) Scaling up and improving the quality ofpreventive interventions targeted for identifiedhighly vulnerable groups such as the youth, civil


Target9


Halt and begin to reverse theincidence of malaria and othermajor diseases by 2015

sites, most of the funds are for training andcapacity building [except for the World HealthOrganization/ Rollback Malaria (WHO/RBM) andthe Global Fund for AIDS, TB and Malaria(GFATM) grant], hence, the lack of budgetsupport for drugs/diagnostic and insecticidepurchase.

The National Tuberculosis Control Program(NTP) continued to promote the Directly ObservedTreatment Short Course (DOTS) therapy as themain strategy for TB control. The Comprehensiveand Unified Policy for TB Control (CUP), whichcovers the guidelines for the implementation of theNTP, was formulated. Executive Order No. 187 wasissued by the President, enjoining government andprivate sector organizations to work as partners indisseminating and conducting training on the CUP.

Although significant strides have been achievedin malaria and TB prevention and control, the designof more effective policies and activities must beimproved. This covers two major categories, namely,improving service provision and strengtheningprogram support services. Improving serviceprovision includes four aspects: meeting unmetrequirements, addressing new requirements,improving the quality of services, and ensuringfunds availability. Under the second category,important activities include the development of aTB database, advocacy to improve the health-seeking behavior of the population, and strengthen-ing public-private, NGO and community partnership.

Malaria, the eighth leading cause of morbidity inthe country, has declined in terms of morbidity andmortality rates. The 2002 figures stood at 48 casesper 100,000 population (morbidity) and 0.11 deathsper 100,000 population (mortality). It is endemicin 65 provinces but more than 90 percent of caseswere found only in 25 provinces.

Tuberculosis, on the other hand, was the sixthleading cause of death and morbidity in 2001.Mortality and morbidity rates for TB also showeddeclining trends for 1995 to 2001: from 39 to 38deaths per 100,000 population (mortality), andfrom 173 to 142 cases per 100,000 population(morbidity). In 2002 and 2003, the regions withthe most number of TB cases were NCR, CentralLuzon, Western Visayas, Bicol, Southern Tagalogand Central Visayas.

The DOH continued to implement the MalariaControl Program (MCP) in partnership with LGUs,NGOs and communities at risk. The upsurge ofcases in the northern part of the country in 2002compelled the use of a combination treatmentregimes and the approval of a new national policyin diagnosis and chemotherapy for malaria usingmicroscopy or rapid diagnostic test. Although theMCP has obtained and coordinated donor fundingfor malaria control activities in selected project


Implement nationalstrategies for sustainabledevelopment by 2005, toreverse loss of environmen-tal resources by 2015

and watershed management include: (a) theadoption of the Watershed Ecosystem Manage-ment approach; (b) implementation of CommunityLivelihood Assistance Special Program (CLASP);(c) launching of timber corridors in Mindanao; (d)more vigorous campaigns against illegal loggingand erring DENR officials; (e) survey of prioritywatersheds for rehabilitation and protection; (f)promotion of tissue culture and cloning of seed-lings; (g) conduct of management plans; (h)implementation of urban forestry; and (i) imple-mentation of the Tanim Ko, Aalagaan Ko” project.

In 1992, 50 percent of the 63 national parks losttheir biological importance due to various levels ofdegradation. To address this, the DENR is intensi-fying its efforts to implement the National Inte-grated Protected Areas System (NIPAS) Act andthe National Biodiversity and Action Plan(NBSAP). The National Caves and Cave Re-sources Management and Protection Act waspassed in 2001 to conserve, protect and manage

caves and cave resources aspart of the country’s naturalwealth.

Overfishing, destructivefishing methods, siltation, andpollution have threatened theproductivity of the coastal andmarine ecosystems. It isestimated that only five percent

of coral reefs are in excellent condition whilemangroves have declined by as much as 57percent in the last 23 years. Seagrass losses havebeen estimated at 30-50 percent over the last 50years. In response, the DENR adopted the inte-grated coastal area management approach andprovided technical assistance in the conduct ofParticipatory Coastal Resource Assessment(PCRA) and in the preparation of the MunicipalCoastal Environment Profile (MCEP). On theother hand, the Department of Agriculture (DA)implemented the Fisheries Resource ManagementProgram (FRMP).

In 2004, data gathered from the eight new airquality monitoring stations in Metro Manilaairshed, which include LGUs in NCR and partsof Regions III and IV, showed that ambient airquality is within standard in terms of NitrogenDioxide (NO2), Carbon Monoxide (CO), SulfurDioxide (SO2) and ozone. Fortotal suspended particulates(TSPs) in 2003, data gatheredfrom the old monitoring stationsnationwide showed that air qualitywas not within standards, with theexception of the cities of Caviteand Davao. To curb the increas-ing level of pollutants in the

Target10

One reason for the widespread poverty in thecountry is the mismanagement of its naturalresources. Hence, there is an urgent need toproperly manage natural resources and protect theenvironment to improve the quality of life of thepresent as well as that of future generations.

About 15,854,922 hectares or 52.9 percent ofthe Philippine land area are classified as forestland while the remaining 47.1 percent or14,145,078 hectares are alienable and disposable(A&D) land. The total forest cover increased by11 percent from 6.5 million hectares in 1988 to 7.2million hectares in 2004. The increase in bothforest and A&D lands can be generally attributedto the slowdown in commercial timber harvestingwith the imposition of a logging moratorium inseveral provinces, log and lumber export bans andthe implementation of the National ForestationProgram in the late 1980s. Several forest policyshifts and initiatives like the Philippine ForestryMaster Plan, Community-Based Forest Manage-ment Strategy, and the Forestry Sector Loan IIProject also contributed significantly to theincrease in the country’s forest cover.

Recent initiatives of the Department of Envi-ronment and Natural Resources (DENR) in forest



atmosphere, the DENR phased out lead ingasoline in 2000 and implemented severalprograms. The Clean Air Act was also passedin 1999, providing for a comprehensive frameworkfor the management of air quality and mandatingthe reduction of sulfur content in diesel fuel.

The issues in the water sector includedisparities in water supply coverage acrossregions, depletion of groundwater especially inMetro Manila and Metro Cebu, lack of costrecovery on investments, institutional weaknesses,and unwillingness of consumers to pay. Thepollution of water resources has also beenevident in many parts of the country. Of the 462water bodies classified by the DENR as of 2003,35 percent meet the water classification of “ClassC” or quality of water, which can support lifesystems. About 48 percent of water pollutants aredomestic waste, 37 percent are agricultural waste,and the remaining 15 percent are industrial waste.To improve the water quality, DENR facilitated theissuance of the Clean Water Act and the imple-mentation of Beach Ecowatch, among others.Likewise, the government created the PresidentialTask Force on Water Resources Development andManagement under the DENR, and prepared theNational Strategy and Action Plan for the WaterSupply and Sanitation Sector.

Solid waste generation in Metro Manila isestimated at 5,345 tons per day, which is expected todouble by 2010. Only 65 to 75 percent of total wastegenerated in Metro Manila are collected and onlyabout 13 percent are recycled. At present, there isno integrated treatment facility for hazardous wastein the country. There are approximately 50,000 tonsof hazardous waste stored on or offsite due to lackof proper treatment and landfill facilities. TheDENR in collaboration with MMDA, LGUs, andNGOs, is trying to remedy the worsening garbagesituation with: (a) the closure of dumpsites; (b)launch of the Solid Waste Management Program;(c) implementation of the Ecological Solid WasteManagement (ESWM) System; (d) designation of213 ESWM coordinators nationwide; (e) provisionof technical assistance in the conversion of opendumpsites; and (f) conduct of the NationwideSearch for Model Barangays for ESWM System.

In the medium term (2004-2010), the Environ-ment and Natural Resources Sector will pursuethese major thrusts consistent with the 10-PointAgenda of the administration: (a) sustainable andmore productive utilization of natural resources;(b) focus on and strengthening of the protection ofvulnerable and ecologically fragile areas; (c)creation of a healthier environment for the popula-tion; (d) mitigation of the occurrence of naturaldisasters to prevent the loss of lives and properties;and (e) environmental accountability for all industries.

Target11


Halve the proportion of peoplewith no access to safe drinkingwater or those who cannot affordit by 2015

Household access to safe water supply roseslightly from 78.69 percent in 2000 to 80 percent in2002. The ARMM is the most disadvantagedregion in 2002 with only one-third of families usingwater coming from community water systems ortubed/piped wells, compared with 96 percent offamilies in Central Luzon having access to thesetypes of sources.

Households with sanitary toilet facilities in-creased from 81.97 percent in 2000 to 86 percentin 2002. Among the regions, the NCR had thehighest proportion of families with sanitary toilets(98 percent) while ARMM had the least (44.7percent).

The laws on regulation and protection ofwater resources have been poorly enforced,causing the severe deterioration of water qualityand exploitation of groundwater resources.Hence, the government adopted the IntegratedWater Resources Management (IWRM) ap-proach. Also, the President tasked the NationalAnti-Poverty Commission (NAPC) to spearheadthe government’s plan to provide potable water towaterless communities.

The Philippine Clean Water Act of 2004 (RA9275) was signed into law, mandating the DENRto implement a comprehensive quality manage-ment program to guarantee effective waterutilization and conservation. Executive Order 123reconstituted the National Water ResourcesBoard (NWRB) and EO 279 instituted policyreforms in the Water Supply and SewerageSector and for the water service providers.

The water sector will continue to addressthese challenges in order to meet the MDGtarget: (a) focusing on providing potable water towaterless areas; and (b) giving importance tosanitation services.


Target12


Achieve a significantimprovement in the lives ofat least 100 million slumdwellers by 2020

Gawad Kalinga (GK 777) Project of the Couplesfor Christ, Gawad Kapatiran and Habitat forHumanity, all of which aimed to improve someblighted communities and provide dwelling units forinformal settlers. The HUDCC has extendedtechnical and financial assistance and providedfinancing for the development of housing units tobenefit GK beneficiaries.

EO 272, issued in 2004, authorized the creationof the Social Housing Finance Corporation (SHFC)which will cater to the housing needs of the bottom30 percent of the population. It also transferred theimplementation of the CMP and Abot-KayaPabahay Fund Program of the NHMFC to theSHFC as the former’s subsidiary.

The housing sector will continue to address thesechallenges and priorities in order to attain the MDGgoal on improving the lives of slum dwellers: (a)meet the housing requirements of informal settlers,particularly the relocation of those in danger zones;(b) pursue an urban asset reform program byproviding property rights for informal settlers; (c)promote a sustainable source of housing finance bypursuing a legislation which operationalizes theSHFC as the primary institution for addressing theneeds of the bottom 30 percent poorest households;(d) expand private sector participation in socializedhousing finance and construction; (e) rationalizecoordination for housing and urban developmentthrough the elevation of HUDCC into the Depart-ment of Housing and Urban Development (DHUD);and (f) strengthen housing regulation primarilythrough the establishment of Local Housing Boardsand the institution of the National Land Use Policy.

In 2002, the government estimated that therewere 588,853 informal settler families or squatterhouseholds nationwide, 51percent of which are inthe NCR, Region VI and Region IV. Theseinformal settlers live in dwelling units that aresubstandard or are not durable for at least fiveyears, mostly in urban slum areas with little or nobasic or auxiliary services such as safe water,health centers, elementary and high schools, anddecent and gainful livelihood opportunities.

Security of tenure or shelter units were pro-vided to 382, 285 households from 2001 to 2004,mainly through government programs and privatesector initiatives. The National Home MortgageFinance Corporation (NHMFC) revised theCommunity Mortgage Program (CMP) Guidelineswhich increased the loan ceiling from PhP100, 000to PhP120, 000 in Metro Manila and other highlyurbanized areas, and from PhP85, 000 to PhP100,000 in other areas. The number of documentsrequired for the CMP was also significantlyreduced from 56 to 18, and technical assistanceand financing were provided to the beneficiarycommunities for expenses related to title transferto hasten the processing of CMP projects.

The housing agencies, under the guidance ofthe Housing and Urban Development Council(HUDCC), worked closely with NGOs and privatesector groups in their projects. These include the


Target13


Deal comprehensively with the debtproblems of developing countriesthrough national and internationalmeasures in order to make debtssustainable in the long term

Over the years, fiscal flexibility was steadilyeroded, with shrinking revenues and risingrequirements for nondiscretionary portions of thebudget such as personnel expenditures, interestpayments, and block grants to local governmentunits. Tax efforts stood at 12.4 percent, belowthe MTPDP target of 12.8 percent. Government

Develop further an open, rule-based,predictable, non-discriminatory tradingand financial system; include acommitment to good governance,development and poverty reduction-both nationally and internationally

On rates promotion, critical reforms were madeon the harmonization of trade-related procedureswith other countries; provision of tax incentives toinvestors in IT zones; and issuance of the Imple-menting Rules and Regulations or IRR of theElectric Power Industry Reform Act. Likewise,greater access of Philippine products to foreignmarkets was negotiated, particularly with otherASEAN countries and nontraditional markets. Thegovernment also took steps to ensure that productsare of the best quality, primarily through the conductof quality test and aligning domestic product stan-dards with international standards.

The MSMEs were further developed andassisted in the areas of credit, technology andmarketing assistance. In line with the empower-ment and capacity-building strategy for MSMEs,the Bangko Sentral ng Pilipinas (BSP) has ven-tured into several policy reforms to promote andintegrate microfinance principles into the financialservices of the banking system.

In the nonbank financial system, three impor-tant laws were passed to effect a more stablefinancial position for the country: the SecuritiesRegulation Code, the Securitization Act, and theAnti-Money Laundering Act.

To strengthen and sustain the country’s produc-tivity and competitiveness at both domestic andglobal markets, the government will focus on threemajor actions: ensure an enabling environment forMSME development; sustain efforts to lower thecost of doing business; and strengthen and expandstrategies for investment and export promotion.

The Philippine economy grew moderately overthe period 2001-2004 with GNP and GDP expandingat average rates of five percent and four percent,respectively. Relevant ratios and indicators, such asthe investment-to-GDP ratio, foreign direct invest-ments and gross domestic savings-to- GDP ratio,have not significantly increased to effect a highereconomic growth. Moreover, the country’s rank inthe Global Competitiveness Ranking continued toslip from 2001 to 2004. Exports have not grownsteadily relative to imports since 2001.

Four major policies and programs were continu-ally pushed to improve trade and financial perfor-mance, namely: investment liberalization; tradepromotion; micro, small and medium enterprises(MSMEs) development; and pursuance of financialreforms and price stability. Strategic measures andpolicies were pursued, which include: the reduc-tion of tariffs under the Common Effective Prefer-ential Tariff (CEPT) Scheme of the ASEAN FreeTrade Area; unilateral tariff reduction and elimina-tion of measures to lower cost of production inputs;and issuance of a supporting policy to allowproducts manufactured in Special Economic Zones(SEZs) and sold domestically to enter the Philip-pine customs territory under CEPT rates.

debt balloned to PhP3.81 trillion in 2004, or 78.7percent of the country’s GDP. The consolidatedpublic sector deficit (CPSD) tapered a bit to 4.8percent of GDP in 2004.

The increased share of personal services,IRA and interest payments contributed to thecontraction in capital spending and other produc-tivity expenditures. Average capital spending forthe country stood at three percent of GDP, thelowest among Asian countries for 1998-2004.

Debt servicing took the biggest share (almostone-third) of the 2004 budget pie. Actual totaldebt service is already 68 percent of the total

Target14


Target15


NG cash disbursement in 2004.As the proportion of the national

government’s social expenditure to GDP de-clined from 6.35 percent (2000) to 5.1 percent(2004), real per capita spending for health,education, social security, welfare and employ-ment, and housing went down.

However, one-third of total ODA loansdisbursement (almost US$358 million) went tosocial services for 2001-2003, helping cushion theimpact of the tight fiscal situation on provision ofsocial services.

Several initiatives, primarily the use ofinformation technology, were directed at boostingcollection efficiency. Reforms put in placeincluded Republic Act 9334 (adjusting excisetaxes on alcohol and cigarette products), theLateral Attrition Act of 2005 (RA 9335), andExecutive Order No. 399 or the No-AuditProgram (NAP).

Initiatives were taken to improve ODA utiliza-tion, notably the conduct of an ODA portfolio reviewin early 2003 by the Development Budget Coordi-nation Committee (DBCC) and the InvestmentCoordination Committee (ICC).

Reforms in ICC policy and programming werealso made to improve the country’s expendituremanagement.

Three critical challenges need to be ad-dressed if we are to achieve the goal of debtsustainability:

• Rapid rise in public debt which constrainsability to finance development objectives;

• Poor management of off-budget risks; and• Need for shared responsibility and account-

ability which hinges on transparent and effectivecommunication of reforms being undertaken.

Relatedly, the Philippine International TradingCorporation (PITC), supplied low cost medicines to1,496 municipalities, 2,400 BnBs, 112 outlets of theDrugstores Association of the Philippines (DSAP),and 10 outlets of the Coops for Christ through its“Presyong Tama, Gamot Pampamilya” program.

Continuing challenges need to be addressed asdrug price management goes beyond actual pricinginterventions. Suggested priorities for action are: 1)strengthening of the Bureau of Food and Drugs(BFAD) as a regulatory agency and its function ofensuring quality of drugs, 2) lowering the price ofbranded drugs and medicines through a significantincrease in parallel drug imports in order to affectthe market shares for similar products, 3) promo-tion of authentic herbal/traditional/natural alterna-tive medications that are cost-effective andappropriate as treatments for certain illnesses, and4) addressing problems of access to hospitals andhealth professionals, availability of certain medi-cines, and health insurance issues.

Provide access to affordable essentialdrugs, in cooperation with pharmaceuti-cal companies

Efforts to bring down the cost of drugs as oneof the means to provide access to affordablemedicines have slowly made headway during thelast quarter of 2004. Parallel drug importationachieved an estimated average of 60.9 percentprice reduction, a figure above the 50 percenttarget through the DOH’s GMA 50 (Gamot naMabisa at Abot Kaya). DOH also sought thesupport of local and multinational pharmaceuticalcompanies to help bring down drug prices. As aresult, generics companies have been morecompetitive and are now providing medicines tohospitals at prices even lower than competingparallel imports.

In terms of widening distribution of commonlyused drugs, 3,802 Botika ng Barangays (BnBs)have been established as of January 2005.


ADVOCATING AND LOCALIZINGThe attainment of the MDGs requires a strong

advocacy for national ownership and sustainedaction to operationalize the goals and targetsespecially at the local level. The LGUs as well ascivil society and business sector have critical rolesin realizing the MDGs.

There are six major policy developments whichare instrumental in supporting MDG advocacy andlocalization:

1) Social Development Committee (SDC)Resolution No. 1, Series of 2003, “Expanding theFunctions and Composition of the Multi-SectoralCommittee on International Human DevelopmentCommitment” (MC-IHDC), through which theDepartment of Interior and Local Government(DILG) was tasked as the lead agency for local-ization of the MDGs;

2) DILG Memorandum Circular No. 2004-152“Guide to Local Government Units in the Localiza-tion of the MDGs,” which provides the menu ofprogram, projects and activities (PPAs) per MDGgoal and target to guide LGUs in responding toMDGs among others;

3) The Medium-Term Philippine DevelopmentPlan (MTPDP) 2004-2010, which cited the MDGsnot just as top priority goals and targets, but as acommitment to ensure a brighter prospect for allFilipinos;

4) The identification of investments per goaland target in the Medium-Term Public InvestmentProgram (MTPIP) 2005-2010;

5) Strong commitment of the business sectorand civil society organizations (CSOs) in achievingthe MDGs; and

6) Strong support coming from the donorcommunity for the MDGs.

Several advocacy initiatives on the MDGsincluded the following: launching of the FirstPhilippines Progress Report on the MDGs; conductof a strategy workshop on mainstreaming theMDGs; conduct of a national workshop on enhanc-ing the capacity to monitor global human develop-ment commitments; the “10 to 10” campaign whichincludes the MDGs among its thematic areas; andreframing the “20 to 20” campaign of the TaskForce on the 20-20 Initiative towards the MDGs.


Posters and brochures on the MDGs were alsoproduced and disseminated.

Various advocacy efforts were also conductedamong the legislators, both from the Upper andLower Houses of Congress. A series ofroundtable discussions (RTDs) entitled “Crafting aLegislative Agenda in Pursuit of the MDGs” wasconducted. A more significant development is thecreation of the Special Committee on the MDGswith Congresswoman Nerissa Corazon Soon-Ruizserving as the chair. With regard to the initiativesof the civil society organizations, notable was theleadership of the Social Watch Philippines (SWP).

On the part of the business sector, the PhilippineBusiness for Social Progress (PBSP) spearheadedthe creation of a roadmap for business sectorsupport of the MDGs organized along four majorclusters–poverty, education, health and environ-ment–and embodied in the document entitled”Responding to the Millennium DevelopmentChallenge: A Roadmap for Philippine Business.”

The academe also had its share in supportingthe MDGs through the National College of Public

Administration and Governance of the Universityof the Philippines and the Association of Schools ofPublic Administration in the Philippines (ASPAP).A national conference and general assembly forschools and teachers of public administration wereconducted wherein their roles in good governanceand the MDGs were discussed.

There were also various local level initiativesadvocating the MDGs which started with theNEDA/DILG Regional Workshop onMainstreaming the MDGs and SOMIS. ThePhilippines also participated in various regional(inter-country) level initiatives in pursuance of theMDGs. One of the results of these workshops isthe 2004-2005 Philippine MDG Action Plan.

Localization initiatives on the MDGs are guidedby the MDG localization framework developed bythe DILG, which identified a set of desired out-comes. Along these desired outcomes, interven-tions carried out covered four major areas: a)policy formulation, b) tools development, c) capac-ity-building, and d) documentation and replicationof good practices.

THE MDGs


Total national government expenditures onsocial services for the period 2001 to 2004 showedan increasing absolute level from PhP158 billion(2001) to PhP192 billion (2004). However, itspercentage share to the total national governmentexpenditures showed an unpredictable trend from27.5 percent in 2001 to 30 percent in 2002, adecline to 27.6 percent in 2003 and then movinguphill in 2004 to 44 percent. The data on LGUs’expenditures for social services also showed mixedresults, as the levels declined from PhP28 billion in2001 to PhP26 billion in 2002, but then rose laterto reach PhP36 billion in 2004.

On the other hand, official development assis-tance (ODA) for social reform development hasbeen fluctuating since 2002, from PhP318 billion toPhP58.13 billion in 2004.

The government’s targets and strategies in theMTPDP are set beyond the current performancelevels so that poverty would be reduced signifi-cantly and greater prosperity is achieved at the endof the six-year period in 2010. Growth needs toaccelerate to at least seven to eight percent by 2009to reduce unemployment and poverty incidence.

Thus, to ensure financing for the MDGs for theyear up to 2010, a mix of strategies must be set inplace:

1. Revenue generation which is anchored onboth increasing tax collection and savings genera-tion. The action plan requires four administrativeand eight legislative tax measures.

26

FINANCING THE MDGs2. Mobilization of LGUs, private sector and civil

society support to finance the difference between thePlan’s target and the fiscal resources.

3. Expansion of microfinance services to the poor,which will greatly involve the government financialinstitutions, social security institutions andmicrofinance institutions. Technical assistance in theform of grants will continue to be provided to qualifiedmicrofinancing institutions (MFIs) to lessen their costof expansions.

4. Prioritization of projects with high economicimpact to enlarge the economic pie, such as theDiosdado Macapagal International Airport (DMIA)which will be funded by the Clark DevelopmentCorporation; the Subic International Port, NorthLuzon Expressway and the Clark-Subic Expresswayfunded by the Japan Bank for International Coopera-tion (JBIC).

5. Right-sizing of the bureaucracy withoutsacrificing efficiency and effectiveness.

6. Privatization of some sectors such as theNational Power Corporation (NPC) in recognition ofthe inherent comparative advantage of the privatesector in such field.

7. Tapping of the remittance of OFWs which passthrough the formal banking sector to provide bothdirect and indirect revenues in attaining the MDGs.To do this, government will have to advocate with theOFWs and/or their organizations, the local bankingsector and the LGUs, among others, for a mutuallybeneficial collaboration and cooperation.

Second Philippines Progress Report on


Effective monitoring of the MDGs depends on theavailability of data disaggregated at appropriate levels,the existence of an operational and effective monitor-ing tool, and functional institutional arrangements.

Presently, the Social Development ManagementInformation System (SOMIS), an IT-based system,is used to monitor the various international commit-ments on human development, including the MDGs.This can be used by relevant government agencies,researchers, policy makers and the public in orderto track the country’s performance on the MDGs.

However, the SOMIS does not allow users tomanipulate data. Hence, the DevInfo software, auser-friendly software derived from the ChildInfosoftware developed by the United Nations will beutilized. This has many features, thus making themonitoring of MDG progress easier.

The two important agencies dealing with thedata repository and generation are the NationalStatistical Coordination Board (NSCB) and theNational Statistics Office (NSO), respectively.The NSCB was designated as the repository of theMDG indicators through NSCB Resolution No. 10,Series of 2004, “Adoption of and Enjoining DataSupport to the Millennium/MDG Indicators.”NEDA, on the other hand, is already using theDevInfo software. Its use is already being endorsedto the NEDA Regional Office and all LGUs.

For the CSOs, Social Watch Philippines (SWP)developed the Social Watch Monitoring System asa mechanism for monitoring the realization of

MONITORING THE MDGscommitments to the Millennium Declaration,through small area level, i.e., by provinces andmunicipalities.

In terms of institutional arrangements, theMultisectoral Committee on International HumanDevelopment Commitments (MC-IHDC) of theNEDA Board-Social Development Committee(NEDA-SDC) is being utilized for the overallmonitoring of the MDGs. NEDA, as chair of theMC-IHDC, leads in the monitoring of the MDGs.Lead agencies were also identified per area ofconcern of the MDGs through SDC ResolutionNo. 1, Series of 2003, “Expanding the Function andComposition of the MC-IHDC.”

To improve the MDG indicators, NSCB withassistance from the United Nations Office of theResident Coordinator (UNRC), and in partnershipwith various data sources and oversight agencies,conducted a consultative meeting on the MDGIndicators in June 2004.

At least 48 indicators will be monitored todetermine the country’s progress on the attainmentof the MDGs. On data availability, 29 could beobtained from various sources, eight are notavailable while 11 are found not applicable to thePhilippines. The Philippines ranked first among the11 countries in Southeast Asia in terms of relativedata availability in support of the MDGs, with arating of 27 percent.

Based on the above situation, effective andefficient monitoring of the MDGs must address the


mortality rate (U5MR). Likewise, there is a needto improve the quality of available data;

• Lack of disagreggated data by sex andprovince to monitor imbalances in the distributionof resources; and

• Inability to fully operationalize institutionalarrangements at the subnational level, building onexisting statistical infrastructures and mechanismssuch as the Regional Statistical CoordinationCommittee.

following challenges and priorities for action:• Unavailability of data, particularly, in terms of

the seven indicators which are not currentlymonitored. Indicators in support of Goal 6 oncombating HIV/AIDS, TB, Malaria and otherdiseases, and Goal 7 indicators, ensuring environ-mental sustainability, are not monitored.

• Lack of updated data, specifically for health-related indicators such as maternal mortality rate(MMR), and annual estimates for under-five

Sources: Medium-Term Philippine Development Plan 2004-20102004 UNDP Human Development ReportFamily Income and Expenditure Survey 2003

TABLE 1: MDGs: Rate of Progress

Probabilityof

Attainingthe Targets

5/

Ratio ofRequired

RatetoAverage

Rate(l =b/a)

RequiredRate of

Progress(2002/

2003-2015)(b)

AverageRate of

Progress(1990-2002/

2003)(a)

Targetby

20151/

CurrentLevel

(2002/2003)

Baseline(1990 or

yearclosestto 1990)

MDG

Eradicate extreme poverty and hungerProportion of population below

subsistence (food) thresholdpoverty threshold

Proportion of families belowsubsistence (food) thresholdpoverty threshold

Prevalence of malnutrition among 0-5year-old children (% underweight) - Basedon international reference standardsProportion of households with per capitaintake below 100 percent dietary energyrequirement

Achieve universal primary educationElementary participation rate 4/Elementary cohort survival rate

Promote gender equality andempower womenRatio of girls to 100 boys

Elementary educationSecondary education

Reduce child mortalityUnder 5-mortality rate (per 1,000 children)Infant mortality rate (per 1,000 live births)

Improve maternal healthMaternal mortality rate

Increase access to reproductivehealth servicesPrevalence of men and women/couplespracticing responsible parenthoodHIV prevalence

Halt and begin to reverse theincidence of malaria and otherdiseasesMalaria morbidity rate (per 100,000population)

Provide basic amenitiesProportion of families with access to safedrinking water

Notes:a/ 1991: Uses the old methodology considering special rice in the

menu and using regional prices; family size is six.b/ 1993c/ 1996d/ 1998e/ Based on preliminary estimates of DepEdf/ 2003: Uses ordinary rice, and uses provincial prices; family size is five.

1/ 2015 target is based on 1990 estimate or the closest year where data is available2/ Target by 2010 based on MTPDP 2004-20103/ Based on DepEd - Education For All (EFA) target4/ Beginning SY 2002-2003, participation rate was derived based on the age group consisting

of 6-11 years old for elementary and 12-15 secondary whereas the previous system used 7-12 and 13-16 yearsold for elementary and secondary, respectively. Hence, SY 2002-2003 data cannot be compared with that of theprevious years

5/ The criterion used in determining whether the target will be met is the ratio between the annual rate of changeneeded to reach the target and the current annual rate of progress. The ratings correspond to ranges of rategiven below:

Rate needed to reach target/Current rate of progress< 1.5 High1.5 to 2.0 Medium> 2.0 Low

24.3a/45.3a/

20.4 a/39.9 a/

34.5

69.4 b/

85.1 a/68.4 a/

95.8 c/104.5 c/

8057

209

40 b/< 1%

123

73.7 a/

13.8 f/30.4 f/

10.4 f/24.7 f/

27.6

56.9

90.0569.8

101.8 e/115.9 e/

4029

172 d/

48.9< 1%

48

80

12.1522.65

10.219.95

17.25

34.7

100 83 3/

100100

26.719

52.2

70< 1% 2/

24 2/

86.8

-0.88-1.24

-0.83-1.27

-0.53

-1.25

0.450.13

1.001.90

-3.08-2.15

-4.63

0.890.00

-5.77

0.57

-0.14-0.65

-0.02-0.40

-0.86

-1.85

0.771.04

-0.14-1.22

-1.11-0.83

-7.05

1.760.00

-1.83

0.52

0.160.52

0.020.31

1.63

1.48

1.708.16

-0.14-0.64

0.360.39

1.52

1.980.00

0.32

0.91

HighHigh

HighHIgh

Medium

High

MediumLow

HighHigh

HighHigh

Medium

MediumHigh

High

High



At the Millennium Summit in September 2000,the United Nations General Assembly adopted theMillennium Declaration which affirmed the Millen-nium Development Goals (MDGs) as the globalcommitment to peace and development. Themember nations who committed to the MDGs haveset goals and targets aimed at eradicating povertyglobally. These MDGs are:

a) eradicating extreme poverty and hunger;b) achieving universal primary education;c) promoting gender equality;d) reducing child mortality;e) improving maternal health;f) combating HIV/AIDS, malaria and other

diseases;g) ensuring environmental sustainability; andh) developing a global partnership for develop-

ment.The MDGs recognize women’s human right to

gender equality as an essential developmentalgoal on which all the other goals are built – frompoverty reduction to combating HIV/AIDS toenvironmental sustainability. It acknowledges thefact that meaningful and sustainable reductions inpoverty levels cannot be accomplished withoutaddressing the gender inequalities that haveundermined women’s human potential. As across-cutting concern for all the goals, genderequality needs to be articulated in the targets,indicators and strategies to achieve the MDGs atthe national and local levels.

The Convention on the Elimination of all Formsof Discrimination Against Women (CEDAW), andthe Beijing Fourth World Conference on Womenprovide detailed guidance on the whole gamut ofgender equality issues in the different goals, andthese can be used to fine-tune the MDG agenda.The actual strategies to be adopted in the MDGsmust incorporate strong gender equality initiativesif the goals are to be successful. These three –CEDAW, Beijing and the MDGs – are mutually

supporting processes. The first two provide theMDGs with an in-depth analysis of the ways inwhich gender inequality operates in every dimen-sion of women’s lives, serving as touchstones forrealizing the goals. The last process generates thecommitment and resources that can also be used tofurther support the implementation of CEDAW andBeijing.

All goals are mutually reinforcing and contrib-ute to poverty reduction. While they are means toproductivity and economic growth, they are alsoends in themselves because they are direct goalsof society. The MDGs are measured by thequantifiable progress toward each of the targetsand goals achieved in any given year. However,the achievement of these targets and goals hingeson factors such as good governance and the ruleof law, the protection of human rights includingwomen’s rights, and peace and security, amongothers.

The overall goal of eliminating extreme povertyis consistent with the basic task of the Medium-Term Philippine Development Plan (MTPDP)2004-2010 to fight poverty by building prosperityfor the greater number of Filipinos. The 10-PointAgenda contained in the MTPDP along the areasof livelihood, education, fiscal strength, decentral-ized development and national harmony willsignificantly help attain the MDGs.

In the Philippines, the monitoring of the MDGsis carried out through close collaboration amongthe Social Development Committee (SDC) of theNational Economic and Development Authority(NEDA) Board, the Multisectoral Committee onInternational Human Development Commitments(MCIHDC), and the UN Country Team (UNCT).The preparation of the First Philippine ProgressReport on the MDGs in January 2003 and thisSecond Report was a multisectoral effort of thesaid committees that involved government, civilsociety and the UN agencies.

THEDEVELOPMENT

CONTEXT



As of 2005, the population of the Philippineswas estimated at 85.5 million spread over a landarea of 300,000 square kilometers in 7,107 islands.Growing annually at 2.11 percent, the population isprojected to reach 102.8 million by 2015. Theannual per capita Gross Domestic Product (GDP)was estimated at US$1,025.98 using 2004 nominalprices and exchange rate. Regions X, XI and XIIregistered the highest growth rates (more than 9percent) in their Gross Regional Domestic Product(GRDP) in 2001-2004.

The Philippine economy grew despite theadverse effects of international shocks from theSeptember 11 bombing in New York, the SevereAcute Respiratory Syndrome (SARS) scare whichslowed down the tourism industry, and the US-IraqWar which dislocated OFWs in the Middle East,among others.

Economic situationThe country’s real Gross National Product

(GNP) from 2001 to 2004 expanded at anaverage of 5.05 percent while real GDP grew byan average of 4.52 percent, which was withinthe target set during the same period. Theservices sector has been the engine of growth,expanding at an average rate of 5.62 percentover the said period. The expansion may beattributed to the growth of the telecommunica-tion sector and the new investments in callcenters, business process outsourcing andsoftware development. Meanwhile, the tradesector also performed well due to strong con-sumer spending. This was supported by thesteady growth of the agriculture sector andremittances of overseas Filipino workers(OFWs) deployed in higher-paying jobs as ICTprofessionals, teachers and nurses/caregivers.

Sources: Medium-Term Philippine Development Plan 2004-20102004 UNDP Human Development ReportFamily Income and Expenditure Survey 2003

TABLE 2: Key Development Indicators

Indicator Value Year

Estimated Population Size 85.5 million 2005Population Size 76,498,735 2000Population Growth Rate 2.11% 2000-2005

Human Development Index (HDI), HDI rank 0.753, 83rd 2002Gender Development Index (GDI), GDI rank 0.751, 66th 2002GDP per capita (US$) 1, 025.98 2004

NG Tax Revenue/GDP 12.34% 2004Investment/GNP 15.89% 2004Total Outstanding NG Debt/GDP 76.99% 2004

Public Debt (% of GDP) 101% 2003External Debt (% of GNP) 61.9% 2004Social Sector Expenditures (as % of total expenditure) 42.81% 2003

Share of poorest quintile in income or consumption 4.7% 2003Share of richest quintile in income or consumption 53.3% 2003

Life Expectancy at Birth (in years)

Male 67.2 2003Female 72.5 2003Unemployment rate 10.9% 2004

Underemployment rate 16.9% 2004Poverty headcount ratio (% of families below national poverty line) (Preliminary) 24.7% 2003Population with access to safe water supply 80% 2002

Proportion of underweight children (0-5 years old) 32% 2003Simple Literacy Rate 93.9% 2003Elementary Participation rate 90.05% 2002

Under-5 mortality rate (per 1,000 children) 40 2003Maternal mortality rate (per 100,000 live births) 172 1998


The agriculture sector grew at an average of4.05 percent over the period 2001-2004. Effectivegovernment programs, complemented by favor-able weather conditions, led to respectablegrowths in major crops such as palay and corn,fishery, poultry and livestock. Likewise, favorableprices boosted farm incomes.

The industry sector experienced sluggishgrowth at a mere 3.4 percent in 2001-2004.Growth was limited by the large cuts in publicconstruction to control the deficit, as well as thedifficulties of some manufacturing industries tokeep in step with the global market. Moreover,the increase in foreign investments was minimal,from US $1.43 billion in 2002 to US $1.49 billionin 2003. The minimal foreign direct investments isa result of several factors, including the pull ofinvestments toward China, weakening investorconfidence due to concerns about fiscalsustainability, peace and order, and a weakinfrastructure/logistics system. Based on theWorld Competitiveness Report, the Philippines’ranking slid from 48 in 2001 to 56 in 2002 amongthe countries included in the Global Competitive-ness Ranking (GCR) 2001. It was sixty-firstamong countries included in the 2002 report. Thehigh cost of doing business hampered the com-petitiveness of the Philippines. Power costs arehigher compared to China, Taipei, Korea, andIndonesia due to high distribution charges. Philip-pine power rates, however, are lower thanSingapore, Malaysia, Thailand and India. Only themining industry had a good showing, growing atdouble-digit rates due to favorable internationalmetal prices.

Unemployment remained high at 10.9 percentin October 2004 notwithstanding the 3.2 millionjobs generated from 2001 to 2004. From Januaryto July 2004, the average unemployment rate was12 percent as the number of jobs generated couldnot absorb the influx of labor entrants. In 2004,Region IV-B, Region II and ARMM had thelowest unemployment rates at below sevenpercent. On the other hand, NCR, Region I andRegion IV-A had the highest unemployment ratesat above 13 percent.

Underemployment was a more serious prob-lem since its magnitude was higher than that ofthe unemployment rate. Underemployment ratewas 16.9 percent in October 2004, of which 61percent was in the rural areas (NSCB, 2004Philippine Statistical Yearbook).

The fiscal deficit emerged as the majormacroeconomic problem. The consolidated publicsector deficit (CPSD) is at -5.52 percent of GDPwhile the National Government deficit surged to3.8 percent of GDP in 2004. Consequently, therising deficit pushed the public sector debt to 101

percent of GDP by 2003.Given the aforementioned challenges, the

MTPDP 2004-2010 aims to fight poverty andbuild prosperity for the greatest number ofFilipinos. By 2010, the following will be the 10-point legacy of the Arroyo Administration:

Livelihood1) Have created 10 million jobs by supporting

three million entrepreneurs through loans and bydeveloping two million hectares of agribusinessland,

Education2) Have constructed 3,000 elementary school

buildings a year and put a computer in everyhigh school,

Fiscal Strength3) Have balanced the budget by collecting

the right revenues and spending on the rightthings,

Decentralized Development4) Have linked the entire country through the

network of transport and digital infrastructure,5) Have provided power and water regularly

to the entire country,6) Have decongested Metro Manila with

economic activity growing and spreading to newcenters of government, business and communityin Luzon, Visayas and Mindanao,

7) Have made Subic-Clark corridor the mostcompetitive international service and logisticscenter in Southeast Asia,

National Harmony8) Have completely computerized the elec-

toral process so that the integrity of electionswill no longer be doubted,


9) Have brought peace in Mindanao and allinsurgency areas, and

10) Have put a just closure to the divisiveissues generated by EDSA 1, 2 and 3.

The strategies, policies, and action plan in theMTPDP 2004-2010 have been synchronizedtoward the attainment of the MDG goals andtargets. As stated in the MTPDP’s Chapter onMacroeconomy, the “MDG goals are considerednot just top priority goals and targets but acommitment to ensure a brighter prospect for allFilipinos, especially the poor.” The Chapter onEducation and Youth also stipulates that “basiceducation should be anchored on the nationalcommitment to the Education for All (EFA) globalmovement and the country’s commitments to theMDGs.” Similarly, the Chapter on HousingConstruction provides that “the housing sectorshall adopt a strategic framework anchored on amultistakeholder/tripartite, market-based, privatesector and LGU-led reforms and approaches tomeet the goals of: 1) job generation, 2) sheltersecurity of the different market segments, and 3)improving the lives of slum dwellers. Finally, inthe Chapter on Responding to Basic Needs ofthe Poor, the MTPDP commits that “efforts shallbe intensified to achieve the MDGs particularlyin the areas of poverty reduction and humandevelopment, through a broad and strategicpartnership among all concerned stakeholdersespecially the LGUs.” It contains a tableshowing the MDG targets and the Plan targetsfor 2010.

Source: MTPDP 2004-2010

TABLE 3: Government Targets Under theMedium-Term Philippine Development Plan 2004-2010

I. SOCIOECONOMIC TARGETS

GDP growth rate is targeted to accelerate from 4.9%-5.8 % in2004 to 7%-8% by 2010

GNP growth rate is targeted to increase from 5.2 %-6.0% in 2004to 7.2 %-8.2 % by 2010

Exports growth rate is targeted to rise from 3.4%-4.4% in 2004 to11.1%-12.1% by 2010

Investments is targeted to expand from 8.8%-9.3% in 2004 to13.8%-15.8% by 2010

Inflation rate to be 4.0% -5.0% in 2004 to 3.0%-4.0% by 2010

NG fiscal deficit as a percent of GDP to improve from -3.8% in2004 to 0 by 2010

Consolidated public sector deficit (CPSD) as a proportion of GDPto decline from -5.52 % in 2003 to 1.0 % by 2010

Unemployment rate is targeted to go down from 12.1% in 2004 to8.9% in 2010

Reduction of poverty incidence (of families) from 28.4 % in 2000to 17.89 %-19.81% by 2010


Status and trendsExtreme poverty is poverty measured in terms

of one’s capacity to satisfy food requirements orthe subsistence incidence. In the Philippines,extreme poverty is estimated using the proportionof the population living below the subsistence orfood threshold. In 2003, 13.8 percent of thepopulation (10.4 percent of all Filipino families)were living below the subsistence food thresholdor were food poor which is a decline from 15.8percent (12.3 percent of families) in 2000. Thesubsistence level or threshold, measured as theminimum income needed by a person to satisfyhis/her nutritional requirements (i.e., 2,000kilocalories per day), was estimated at PhP 8,134per capita per year or PhP3,389 per month for afamily with an average of five members in 2003.This is slightly higher than the per capita foodthreshold of PhP7,707 registered in 2000. Thefood-poor population was concentrated in RegionsIX and XIII in 2003. (Table 4 and Figure 1).

Source: National Statistical Coordination Board (NSCB) *Revised **Preliminary estimates

TABLE 4: Subsistence Incidence, by Population, by Region (in percent)

Region 2000* 2003**

Philippines 15.8 13.8

NCR - National Capital Region 1.0 0.6CAR - Cordillera Administrative Region 17.9 13.4Region I - Ilocos 15.2 11.2

Region II - Cagayan Valley 11.8 7.6Region III - Central Luzon 5.5 4.2Region IV- A (CALABARZON) 6.5 4.9

Region IV- B (MIMAROPA) 24.1 22.9Region V - Bicol 29.3 26.6Region VI - Western Visayas 23.1 17.7

Region VII - Central Visayas 20.7 14.6Region VIII - Eastern Visayas 24.8 21.0Region IX - Zamboanga Peninsula 25.8 32.8

Region X - Northern Mindanao 23.8 25.4Region XI - Southern Mindanao 16.7 17.6Region XII - SOCSARGEN 22.6 18.4

Region XIII - Caraga 30.7 31.0ARMM - Autonomous Region in Muslim Mindanao 28.5 24.1

Halve the proportion of peopleliving in extreme povertybetween 1990 and 2015

Target1

PROGRESS BY GOALSGoal 1: Eradicate extremepoverty & hunger

33the Millennium Development Goals 33the Millennium Development Goals

FIGURE 1: Subsistence Incidence, by Population, by Region, 2003

Below national average

Above national average

Cagayan Valley7.6

Bicol26.6

Eastern Visayas21

Central Visayas14.6

Caraga31

SOCSARGEN18.4

Southern Mindanao17.6

ARMM24.1

ZamboangaPeninsula32.8

Northern Mindanao25.4

Western Visayas17.7

MIMAROPA22.9

CALABARZON4.9

NCR0.6

Central Luzon4.2

Ilocos11.2

CAR13.4

Source: NSCB


As of 2003, 30.4 percent of the Filipinos (or24.7 percent of Filipino families) were consid-ered income poor compared to 33 percent ofFilipinos in 2000 (or 27.5 percent of families in2000). The poor population had income that wasbelow the per capita poverty threshold ofPhP12,267 in 2003. Increases in the nominalearnings were noted across almost all incomelevels and across all regions except in MetroManila, CALABARZON and Northern

Source: National Statistical Coordination Board (NSCB) *Revised **Preliminary

TABLE 5: Regional Poverty Incidence, by Population (in percent)

Region 2000* 2003**


NCR - National Capital Region 7.60 7.30

CAR - Cordillera Administrative Region 37.6 31.2

Region I - Ilocos 35.1 30.2

Region II - Cagayan Valley 30.4 24.5

Region III - Central Luzon 21.4 17.7

Region IV- A (CALABARZON) 19.1 18.8

Region IV- B (MIMAROPA) 45.2 47.9

Region V - Bicol 52.6 48.4

Region VI - Western Visayas 44.4 39.1

Region VII - Central Visayas 36.2 28.4

Region VIII - Eastern Visayas 45.1 43.3

Region IX - Zamboanga Peninsula 44.8 49.4

Region X - Northern Mindanao 43.8 44.3

Region XI - Southern Mindanao 33.1 34.4

Region XII - SOCSARGEN 46.8 38.4

Region XIII - Caraga 50.9 54.2

ARMM - Autonomous Region in Muslim Mindanao 59.8 53.1

Mindanao.The poverty situation in 2003 continued to

reveal the wide disparities in poverty incidenceacross regions (Table 5 and Figure 2). TheARMM and Regions XIII and IX were thepoorest regions. They experienced slackenedeconomic growth and a decrease in investmentsdue to peace and order concerns.

A study on the Philippines by Balisacan andPernia (2002) empirically established the rela-



FIGURE 2: Poverty Incidence, by Population, by Region, 2003

Below national average 7.3 - 30.4

Above national average 30.5 - 54.2

Cagayan Valley24.5

Bicol48.4

Eastern Visayas43.3

Central Visayas28.4

Caraga54.2

SOCSARGEN38.4


ARMM53.1



Western Visayas39.1

MIMAROPA47.9

CALABARZON18.8

NCR7.3

Central Luzon17.7

Ilocos30.2

CAR31.2

Source: NSCB


tionship between income and poverty. Thestudy showed that a one-percent increase inthe overall mean income raises the meanincome of the poorest quintile by about 0.5percent. This demonstrates that while economicgrowth is a major factor in explaining povertyreduction, there are still other determinants(e.g., education, infrastructure, terms-of-trade,governance, asset reform and other geographi-cal attributes) of poverty reduction. Thus,multidimensional approaches are necessary toattack poverty.

A study on the income movements of poorand nonpoor households using panel data(Reyes, 2002) revealed that about one-fifth ofthe poor in 2000 were “transient poor” or hadbeen moving in and out of poverty since 1997.On the other hand, other groups remained pooror were “chronic poor” or permanently poorthroughout the same period. Transient poverty istemporary where the families are impoverishedby economic shocks. Once they have recoveredand regained their economic security, they areagain nonpoor. Chronic poverty characterizesthe families who are permanently poor, attributedlargely to structural causes such as inadequateaccess to productive assets or employment/livelihood opportunities. Thus, varying strategiesand interventions are needed to address thesetwo types of poverty.

Income distribution in the Philippines re-mained largely unequal as measured by the Giniratio (i.e., a measure of income inequality witha range from 0 to 1, the closer to 1 the moreunequal). Compared to its Asian neighbors, thesituation in the Philippines shows wider dispar-ity in terms of income distribution, i.e., the incomegap between the higher and lower income groupsis larger (Figure 3). The Philippine Gini ratio,however, improved slightly by 0.0162 or from

0.4822 in 2000 to 0.4660 in 2003.In some of the regions, the Gini concentration

ratios registered decreases, indicating a move-ment towards a less unequal income distributionamong families. The NCR showed the biggestdecrease from 0.4451 in 2000 to 0.4130 in 2003.However, eight out of the 17 regions registeredincreases in the Gini concentration ratios whichindicated a growing inequality in these regions.It is also noteworthy that ARMM, Region IIIand Region I had the least unequal incomedistribution while Regions IX, X, and V had themost unequal income distribution (Table 6 andFigure 4).

Based on the preliminary results of the 2003Family Income and Expenditure Survey, house-holds’ allocation for food expenditures decreasedfrom 43 percent in 2000 to 42 percent in 2003.They also reduced the allocation of expenditureon food consumed at home from 38 percent in2000 to 37 percent in 2003. On the other hand,higher spending on food consumed outside thehome was observed as the proportion went upfrom 5 percent in 2000 to 5.3 percent in 2003,suggesting a change in the Filipino family’slifestyle of eating at home.

Source: National Statistics Office (NSO), 2003 Family Income and Expenditure Survey(Preliminary Results)

TABLE 6: Gini Concentration Ratios, By Region 2000 and 2003

Region 2000 2003


NCR - National Capital Region 0.4451 0.4130

CAR - Cordillera Administrative Region 0.4439 0.4294

Region I - Ilocos 0.4071 0.3968

Region II - Cagayan Valley 0.4227 0.4411

Region III - Central Luzon 0.3591 0.3486

Region IV-A (CALABARZON) 0.4086 0.4058

Region IV-B (MIMAROPA) 0.4076 0.4354

Region V - Bicol 0.4455 0.4648

Region VI - Western Visayas 0.4594 0.4392

Region VII - Central Visayas 0.4691 0.4711

Region VIII - Eastern Visayas 0.4807 0.4577

Region IX - Zamboanga Peninsula 0.4732 0.5197

Region X - Northern Mindanao 0.4794 0.4768

Region XI - Southern Mindanao 0.4318 0.4567

Region XII - SOCSARGEN 0.4631 0.4583

Region XIII - Caraga 0.4118 0.4294

ARMM - Autonomous Region in Muslim Mindanao 0.3171 0.3464


FIGURE4: Gini Concentration Ratios, by Region, 2003

Below national average

Above national average

Cagayan Valley0.4411

Bicol0.4648

Eastern Visayas0.4577

Central Visayas0.4711

Caraga0.4294

SOCSARGEN0.4583


ARMM0.3464



Western Visayas0.4392

MIMAROPA0.4354

CALABARZON0.4058

NCR0.4130

Central Luzon0.3486

Ilocos0.3968

CAR0.4294

Source: NSO – Family Income and Expenditure Survey, 2003


Priority policiesand programs

The Ahon Badjao Project is a success story thatdemonstrates the effectiveness of implementors whogain the trust and confidence of the community byspeaking the language or dialect of the community,as well as the ready availability of resources. Startedin December 1998, this five-year joint endeavor of theDepartment of Social Welfare and Development(DSWD) IX and the Zamboanga government is aimedat empowering and uplifting the socioeconomic con-ditions of Badjaos in six barangays. Implemented asa prototype project of the Comprehensive and Inte-grated Delivery of Social Services (CIDSS), the projecttargeted some 59 Badjao families in BarangaysMaasin/Caragasan, Recodo, Rio Hondo,Taluksangay, Arena Blanco and Mampang.

The interventions to capacitate the Badjaos in-

The Ahon Badjao Project of Zambo “Teach them how to fish and

During the period 2001-2004, the Governmentimplemented major policy and institutional reformsas well as key programs geared toward protectingand empowering the poor and the vulnerablegroups. It used a comprehensive and integratedconvergence approach called the Kapit-BisigLaban sa Kahirapan (KALAHI) or Linking ArmsAgainst Poverty. This pro-poor strategy focusedon the acceleration of asset and ancestral domainreforms; improving access to and quality ofessential human development services and socialprotection interventions; employment, livelihoodand entrepreneurial opportunities for the poor;security and protection of the poor and identifiedvulnerable groups; and empowerment throughfuller and meaningful participation of the basicsectors in governance and decision making in alllevels of government.

The Arroyo administration realized variousaccomplishments that benefited the poor. In assetreform, this included: a) distribution of 2.9 millionhectares of private and public lands to landlessfarmers; b) distribution of ancestral domain titlescovering 367,440 hectares to indigenous peoples;c) security of tenure to 268,861 households andhousing services to over 115,000 low-incomehouseholds; and d) proclamation of nearly 310hectares of urban land (through 73 Presidentialproclamations) as socialized housing sites underthe urban asset reform program. More specifi-cally, the Community Mortgage Program (CMP)benefited 59,456 families for the same period.The National Government Center (NGC) East-West Projects and the North and South RailRelocation Projects benefited 12,249 and 12,186families, respectively.

The government also delivered human devel-opment services that included, among others: a)construction of school buildings in 607 school-lessbarangays; b) attainment of a 1:1 text-book-to-student ratio for 16.8 million public school stu-dents; c) provision of electricity to 3,600barangays, d) supply of low-cost medicines to 300hospitals nationwide; and e) implementation ofdistance learning schemes under the StrongRepublic School System.

In terms of employment and livelihood, thegovernment provided: a) 600,000 agriculture-related jobs created in rural areas; b)microfinance assistance to more than one millionwomen borrowers; and c) about 1.7 millionworkers with jobs through job placement andreferral schemes of the Department of Labor andEmployment (DOLE).

To expand social protection, the followinginterventions were pursued: a) enrolment ofnearly seven million beneficiaries under theNational Health Insurance Program of thePhilippine Health Insurance Corporation; b)operation of 500 rolling stores carrying low-pricedrice and other basic commodities nationwide; andc) provision of emergency rice and food assis-tance to about 250,000 coconut farmers.

The wholesale portfolio of the People’s Creditand Finance Corporation (PCFC), which is taskedto mobilize resources and deliver financial ser-vices to microfinance institutions (MFIs), grew


o anga City they will live forever.”

volved training courses on leadership, Self-Employ-ment Assistance-Kaunlaran (SEA-K) orientation, skillstraining on mat weaving, boat making, dressmaking,bag making, net weaving, slipper making, and sailweaving. Other trainings included parent effectiveness,farm management, organizing and running coopera-tives, nutrition education, literacy classes, and repro-ductive health orientation. The DSWD, ZamboangaGovernment, Technical Education and Skills Devel-opment Authority (TESDA), National Commission onIndigenous People (NCIP), Department of Agriculture/Bureau of Fisheries and Aquatic Resources (DA/BFAR), Department of Education (DepEd), and De-partment of Science and Technology (DOST) collabo-rated to implement the training program. The CityGovernment of Zamboanga allocated PhP9.8 million

Social protection interventions were carriedout through social assistance, social security andsocial safety nets. Significant achievements weremade, particularly in the convergent and inte-grated delivery of social services. This can beattributed to the sustained commitment of LGUs,cooperation and assistance of national govern-ment agencies, and infusion of external assistanceand more meaningful partnership with non-government organizations (NGOs), the privatesector and the beneficiaries themselves.

On governance and decision-making, effortshave been greatly exerted in institutionalizing themeaningful participation of civil society. This isexemplified by the participation of the 12 BasicSector Groups in the national and regional struc-tures of the NAPC and the presence of othernational sectoral bodies as well as local develop-ment or legislative councils/committees whichmobilized community participation in barangayassemblies and municipal inter-agency fora.

significantly with funding support from externalsources. As of the end of June 2004, the govern-ment financial institutions/government-owned andcontrolled corporations [National LivelihoodSupport Fund (NLSF), Technology and LivelihoodResource Center (TLRC), Small BusinessGuarantee and Finance Corporation (SBGFC),Bangko Sentral ng Pilipinas (BSP), with People’sCredit and Finance Corporation (PCFC) as themain lending arm] have released a total ofPhP6.88 billion of microfinance loans to 1,536,697poor clients. Capability-building needs of MFIshave also been supported through several donor-funded programs, like the National Anti-PovertyCommission-United Nations DevelopmentProgramme (NAPC-UNDP) MicrofinanceSector Strengthening Project (MSSP), theUSAID funded Microenterprise Access toBanking Services (MABS), Cooperative UnionEmpowerment and Strengthening (CUES),among others.

for infrastructure support which comprise a livelihoodcenter, berthing area, agar-agar sun-drier, foot bridge,housing units, classrooms, and a health center.

Today, the project has succeeded in improving thequality of life of the Badjaos. Malnutrition has been sig-nificantly reduced; all 45 malnourished children whoparticipated in the supplemental feeding program be-came properly nourished. There is also a noteworthyimprovement in elementary and high-school participa-tion. Now there are 31 children in elementary and eighthigh-school students. Badjao children aged 6-17 yearsregularly attend school even without educational as-sistance and one has already enroled in college. Evenmore reassuring is that the Badjaos now have the meansto earn a living, enjoy better health, and have regainedtheir sense of dignity and identity.


• Fast tracking the asset reform programThe restructuring of the Department of

Agrarian Reform (DAR) and the attachment ofthe Presidential Commission for the Urban Poor(PCUP) and the National Commission on Indig-enous Peoples (NCIP) to the Department ofLand Reform (DLR) to fast track the assetreform program needs to be operationalized. Thethrust of asset reform which now includesagrarian reform, urban land reform and ancestraldomain reform offers much promise but is facedwith resource challenges and constraints inprogram implementation.

• Prioritizing microenterprise developmentThere is a need to prioritize initiatives towards

microenterprise development: diversification ofproducts and skills, improvement of productivity,increase in value added and access to market tobridge the wide gap between microenterprises andsmall-and-medium enterprises (SMEs). A majortask ahead is to widen the playing field formicrofinance providers by: (a) encouraging newplayers to enter the market and providing trainingto build capacity to expand services, (b) enticingexisting microfinance providers to reach moreenterprising poor, especially in the hard to reachareas, including poor families in identifiedKALAHI areas, and (c) strengthening and mobiliz-ing cooperatives.

• Strengthening civil society capacity ingovernance

Some of the mandated mechanisms for civilsociety participation at the local level have yet tobe fully implemented. Both government and civilsociety need to ensure that full and quality partici-pation of the latter is achieved, sustained and

guided by transparency, accountability and open-ness. Capacities of the basic sectors need to beenhanced for this purpose. There is also a need tocapacitate the indigenous communities as well asprovide for their representation in local legislativecouncils.

LGUs, on the other hand, need to increase theircapacities in identifying the needs of their constitu-ents especially the poor and in determining theappropriate poverty alleviation programs orprojects to be implemented. Tools such as the CoreLocal Poverty Indicators Monitoring System(CLPIMS) and the Enhanced Integrated Monitor-ing System for Antipoverty Programs and Projects(E-IMSAPP) have to be fully institutionalized tosustain the empowerment initiatives.

• Localizing the poverty reduction effortsOther factors that hindered full realization of

the antipoverty strategy include budgetary con-straints and delays in fund releases as well aslow appreciation and commitment of some localgovernment units (LGUs) to invest on socialprotection interventions (e.g., health insurancefor the indigents). In ensuring more effective andcost efficient social protection interventions, thefollowing challenges have to be addressed: (a)full localization of the Comprehensive and Inte-grated Delivery of Social Services (CIDSS)approach; (b) fund sufficiency for KALAHIprograms; (c) strengthening of livelihood andentrepreneurship interventions; (d) affordabilityand accessibility of social security/health insur-ance; (e) adequacy and responsiveness of socialsafety net measures; (f) full advocacy and en-forcement of laws and policies; and (g) dataadequacy and timeliness, including sex-disaggre-gated data, where appropriate.


Challenges and priorities for actionChallenges and priorities for action


Source: FNRI, NNS

Table 7: Percentage of Households with<100% Energy Adequacy

Region 2003

Philippines 56.9

NCR 53.0

I. Ilocos 52.9

CAR 51.3

II. Cagayan Valley 50.1

III. Central Luzon 55.1

IV. Southern Tagalog IV-A (CALABARZON) 60.8 IV-B (MIMAROPA) 47.3

V. Bicol 62.0

VI. Western Visayas 55.5

VII. Central Visayas 64.5

VIII. Eastern Visayas 62.5

IX. Zamboanga Peninsula 63.8

X. Northern Mindanao 62.1

XI. Southern Mindanao 48.4

XII. SOCSARGEN 59.9

Caraga 52.3

ARMM 64.2

In 2001, the total food supply was more thanadequate to meet the recommended nutrientallowance of the population. The country’s per capitafood supply of 1,188.4 grams in 2001 exceeded theRecommended Dietary Allowance (RDA) of 1,031grams despite a slight decrease of 0.2 percentfrom 1,191.2 grams in 2000 (DOST-FNRI).

The adjusted 1999-2001 Food Balance Sheetsalso reflected high sufficiency ratios of averagedaily nutrient consumption of Filipinos. For theperiod 2000-2001, food supply over consumptionratios for calories, protein and fats increased from133.9 percent to 151.9 percent, 136.9 percent to162.2 percent and 139.4 percent to 163.4 percent,respectively. Despite the adequate food supply, alot of Filipinos continue to grapple with foodinsecurity primarily due to poverty.

Results of the 2003 Household Food Consump-tion Survey (HFCS) by FNRI revealed generalimprovements in quantity and quality of absoluteintake of Filipino households. From 1993 to 2003,mean one-day per capita food consumption and meanone-day per capita energy intake increased from869 grams to 886 grams, and 1,684 kilo calories to1,904 kilo calories, respectively. Animal sourceshave higher contribution to total food and proteinintake. Higher intake of fats, oils and nutrientswas observed, except that of iron and vitamin C.

The proportion of Filipino households with percapita intake below 100 percent dietary energyrequirement decreased from 69.4 percent in 1993 to56.9 percent in 2003, with an average annualpercentage point reduction of 1.25 percent. To meetthe MDG target of 34.7 percent by 2015, an annualincrease of 1.85 percentage points per year shouldbe achieved. Therefore, there is a high probability ofmeeting the target. It should be noted that HFCSused different nutrient-based dietary standards, i.e.,RDA in 1993 vis-à-vis Recommended Energy andNutrient Intakes (RENI) in 2003 to emphasize thatthe standards are based on nutrients and not merelyon food or diet, which is the case in RDA.

It can be gleaned from Table 7 that eightregions (CALABARZON, V, VII, VIII, IX, X, XII,and ARMM) even registered higher percentageof households with less than 100 percent energyadequacy than the national figure of 56.9 percentin 2003.

Malnutrition remains a major threat to thesurvival of 0 to 5-year-old Filipino children.Although the prevalence of underweight pre-school children declined from 30.6 percent in2001 to 27.6 percent in 2003, the average annualpercentage point reduction of 0.53 percent wasbelow the target of 0.69 percent. Thus, to meetthe MDG target of 17.25 percent by 2015, theprevalence reduction target needs to be adjustedat a faster rate of around 0.86 percent pointevery year for the period 2005-2015. The

Status and trends

Halve the proportion of populationbelow the minimum level of dietaryenergy consumption and halve theproportion of underweight children(under five years old)

Target2


MTPDP’s target of 21.6 percent by 2010 isconsistent with the MDG target of 17.25percent by 2015. From low probability in theFirst Progress Report, there is now mediumprobability of achieving the target for nutrition.Furthermore, there is a slight difference in theprevalence of malnutrition between boy (27.2percent) and girl (28.1 percent) preschoolchildren.

Notwithstanding the significant decrease in theprevalence of underweight among 0 to 5 year oldchildren, 11 out of 17 regions (I, II, MIMAROPA,V, VI, VII, VIII, IX, XII, Caraga and ARMM)recorded prevalence rates higher than the nationalfigure of 27.6 percent. Nine regions (I, II, V, VI,VIII, IX, XI, SOCSARGEN and Caraga) havehigher prevalence rates higher than the nationalfigure both in 1998 and 2001.

Source: FNRI

Table 8: Prevalence of Underweight 0 to 5-Year-Olds, By Region

Region 1998 2001 2003

Philippines 32.0 30.6 27.6

NCR 26.5 20.3 19.0

I. Ilocos 36.2 31.5 29.8

CAR 26.7 23.4 16.6

II. Cagayan Valley 32.3 31.2 34.1

III. Central Luzon 26.7 25.9 22.6

IV. Southern Tagalog 26.3 27.8

IV-A (CALABARZON) 23.5

IV-B (MIMAROPA) 35.3

V. Bicol 36.5 37.8 32.8

VI. Western Visayas 39.6 35.2 33.0

VII. Central Visayas 33.8 28.3 29.8

VIII. Eastern Visayas 37.8 32.0 31.4

IX. Zamboanga Peninsula 34.4 31.8 32.7

X. Northern Mindanao 29.8 34.1 24.9

XI. Southern Mindanao 32.9 32.3 22.6

XII. SOCSARGEN 32.4 30.2 31.2

Caraga 34.1 33.5 31.5

ARMM 29.1 27.9 34.0

Technical Notes:1. Figures should not be used to rank the regions2. Figures for CAR, Northern Mindanao and Southern Mindanao are unreliable estimates and should be used with caution


FIGURE 8: Percentage of Households with less than 100% Energy Adequacy

47.3 - 52.9

53.0 - 62.0

Cagayan Valley50.1

Bicol62

Eastern Visayas62.5

Central Visayas64.5

Caraga52.3

SOCSARGEN59.9


ARMM64.2

Zamboanga Peninsula63.8


Western Visayas55.5

MIMAROPA47.3

CALABARZON60.8

NCR53

Central Luzon55.1

Ilocos52.9

CAR51.3

Source: FNRI, 2003 National Nutrition Survey

62.1 - 64.5


FIGURE 9: Percentage of Underweight Children 0 - 5 Years Old

17 - 25

26 - 33

Cagayan Valley34.1

Bicol32.8

Eastern Visayas31.4

Central Visayas29.8

Caraga31.5

SOCSARGEN31.2


ARMM34



Western Visayas33

MIMAROPA35.3

CALABARZON23.5

NCR19

Central Luzon22.6

Ilocos29.8

CAR16.9

Source: FNRI, 2003 National Nutrition Survey

34 - 35


Government continued to implement thePhilippine Plan of Action for Nutrition (PPAN).Results of the assessment of the MTPPAN 1999-2004 shall serve as the basis for the formulationof the next medium-term plan for nutrition and thesupport of the major strategies and activities ofthe Medium-Term Philippine Development Plan2004-2010.

To integrate and mainstream the MDG targeton nutrition into all aspects of the functions of theMultisectoral Committee on International HumanDevelopment Commitments (MC-IHDC) of theNEDA-Social Development Committee (SDC),the membership was expanded to include theNational Nutrition Council (NNC) as the leadagency for hunger and nutrition under the Millen-nium Summit commitments. A strategic plan ofaction was developed consistent with PPAN.

In response to the challenges cited in the First

Priority policies and programsMDG Progress Report, the NNC formulated theAction for Nutrition Improvement or ANI as anational program that can be replicated at thelocal level. Compared to previous conventionalnutrition programs, ANI aims to fuel economicactivity at the grassroots level by creating link-ages between food production, processing andutilization with the end view of improving thenutritional status of children. The NEDA-SDCapproved the program and signed a resolutionintegrating nutrition objectives and componentsinto the Kapit-Bisig Laban sa Kahirapan-Compre-hensive and Integrated Delivery of Social Ser-vices (KALAHI-CIDSS) program, a community-based poverty alleviation program. It was furtherrecognized that nutrition, being a basic humanright and a basic input for achieving well-being,should be made a central theme of other anti-poverty programs.

Veering away from conventional nutrition programs, the ANI concept was inspired by success stories of dairycooperatives. The Wangan Dairy Farmers’ Cooperative (WADAC) stands out among the 10 members of the Fed-eration of Davao Dairy Farmers Cooperatives (FEDAFC).

Wangan is a hilly farming community 29 kilometers north of Davao City. Most of the farmers in the area are intococonut production while others are engaged in vegetable and fruit production.

In the early 1990s, dairy production was introduced in Wangan by the Philippine Dairy Corporation (the precursorof what is now the National Dairy Authority). WADAC started with 15 farmers with 45 animals who saw dairying as asecondary source of income. To date, the cooperative has 56 farmer-members, 11 of whom now rely on dairying as themain source of livelihood. Worthy of note too is that 15 of the cooperative members are women.

Putting the ANI Concept into ActionWADAC currently has a 178-herd inventory, of which 101 are dams. Of this number, 40 cows are on the milk line,

producing an average of 332 liters a day. The cooperative buys the milk produce of its members and resells the rawmilk to the FEDAFC milk processing plant. The margin from the buying and selling price serves as capital build-upand income of the cooperative.

To improve the economic well-being of its members, the group is also an active partner of the milk feedingprogram (MFP) of the city government of Davao. This participation has brought substantial earnings to the farmer-members as the supplier of the needed fresh milk. It has likewise allowed them to make a meaningful contributionto the efforts of Davao City to minimize child malnutrition. The prevalence of malnutrition in the city substantiallydecreased from 18.5 percent in 1992 to 4.1 percent in 2000.

Other activities of the WADAC include the lending program to farmer-members and Save-the Herd Program (SHP).The latter was put in place when farmers with outstanding accounts with the coop offered to settle their obligationsin the form of animals. These animals are kept in one place and eventually distributed to qualified membersthrough the ‘paiwi’ system (a scheme in which the caretaker gets to own the first-born offspring of the cow he tends).

Likewise, the cooperative provided animal dispersal to its members in the form of loans through the grantprovided by the joint Philippine-Australian Community Assistance Program-Dairy Development Foundation of thePhilippines, Inc. (PACAP-DDFPI). In addition, the cooperative tapped into the PACAP loan to provide credit assis-tance to farmers to supplement their production and personal needs. For example, the cooperative purchases feedingredients (made of indigenous produce such as copra meal, rice and corn bran) and formulate feeds for farmersto avail themselves of in the form of credit.

Indeed, WADAC transformed into a robust cooperative. This has been made possible because of its dairyingstyle and approach that involve the commitment and willingness of each member to help and assist fellow mem-bers - a dynamic usually missing in other organizations. This also translates the ANI concept into action, i.e., fuelingeconomic activity at the grassroots level, leading to the improvement of the nutritional status of children.

Source: National Dairy Authority

Action for Nutrition Improvement (ANI) Concept


Under the National Food Authority’s (NFA)new rice distribution scheme called Targeted RiceDistribution Program (TRDP), the poorest sectorof society will be given priority access to NFArice through designated outlets. The TRDPexpects to increase the buying capacity of poorfamilies through savings generated when they buyrice at a price much lower than the prevailingmarket price. As of December 2004, a total of2,970 TRDP store outlets located in 897 munici-palities nationwide were set up to serve a total of400,000 family-beneficiaries for the pilot andexpanded phase of the implementation. Theactual number of families covered by the programreached a total of 432,101 families or an esti-mated 2.26 million individuals. This is about 13.03percent higher than the targeted two millionindividual beneficiaries.

A series of discussions on Business andHealth, participated in by business, civil society,multilateral funding agencies, and the government,was conducted to identify gaps in thegovernment’s plan and opportunities for businessinvolvement. The body agreed that the moststrategic intervention in the malnutrition problemis the provision of economic and productivesource of income. Likewise, the business sectorcommitted to the following measures: 1) popular-ization of food fortification and nutrition programin the workplace; 2) adoption of nutrition programat the community level; and 3) mass mediaadvocacy for consumers to patronize productswith the Sangkap Pinoy seal.

A technical working group composed of theDepartment of Social Welfare and Development(DSWD), Department of the Interior and LocalGovernment (DILG), National Anti-PovertyCommission (NAPC), NEDA and NNC wascreated to formulate the operational details andguidelines for the integration of nutrition objectivesand components into KALAHI-CIDSS and othernational anti-poverty programs of the government.

The Council for the Welfare of Children(CWC) had a soft launch of the Bright Child (BC)campaign last January 2004 as a unifying brand inpursuing a convergent and integrated approach toEarly Childhood Care and Development (ECCD).Executive Order (EO) No. 286 was issued last 23February 2004 supporting the BC and providingPhP5 million as seed money. The BC project wasimplemented in 24 nutritionally depressed munici-palities (NDMs) in Regions V and VIII.

In response to the results of the recent surveyconducted by Social Weather Station, i.e., 15.1percent of the Philippine households are sufferingfrom hunger, the Department of Social Welfareand Development (DSWD) and National Anti-Poverty Commission (NAPC) spearheaded Foodfor Work, a poverty reduction program with“nutrition perspective.” It is a comprehensivepackage of interventions designed to address basicfood and socioeconomic needs of the poor. A totalof 14,445 food coupons worth PhP17.3 millionhave been distributed to poorest families inCamarines Sur, Eastern Samar, Sultan Kudarat,Maguindanao and Sulu.


Challenges and priorities for action

medium-term measures to address hungerand malnutrition.

Along with improvement of food securitymeasures is Hunger-Free Philippines, which waslaunched in April 2004. The program is committedto provide every Filipino with adequate access tofood at all times to minimize absolute poverty. It isa joint hunger reduction program of the PhilippineGovernment and the Rome-based Food andAgriculture Organization (FAO).

• Prevention of the intergenerational transferof undernutrition

It is necessary to consider the dynamic interac-tion of nutrient deficiencies in all stages of the lifecycle to identify nutrition and related services inorder to avoid intergenerational effects of malnutri-tion. Emphasis will be given to maternal health,women’s health and nutrition, and responsibleparenthood. Availability of preventive and curativecare services for mothers and women will bebroadened to support an enhanced quality of life.These services consist of, among others: a)adequate nutrition including specific micronutrients(iron/folate) to fight anemia; b) care of pregnantwomen before, during and after delivery of thechild (safe motherhood); and c) responsibleparenthood counseling, family planning services,and breastfeeding counseling to include theMother-and-Baby-Friendly hospital initiative.

• Reduction of wide disparities innutritional status

Targeting of beneficiaries will be improved toensure that the most at-risk areas are served (rural

The Medium-Term Philippine DevelopmentPlan 2004-2010 incorporates nutrition by puttinggreater emphasis on improving social services andprotecting and empowering vulnerable groups.Thus, these programs should be put in place.

• Complementation with other strategiesPoverty, as one of the root causes of malnutri-

tion, needs to be addressed immediately and in asustained manner. The Social DevelopmentCommittee (SDC) Resolution No. 1, Series 2004,Integrating Nutrition Objectives and Componentsinto the KALAHI-CIDSS Program and OtherAntipoverty Programs of Government and OtherRelevant Entities Toward Achievement of theMillennium Development Goals by 2015, has to bewidely disseminated and adopted to ensure thatnutrition is integrated into sectoral plans, particu-larly in food production, health, child welfare,population management, and poverty reductionpolicies and plans.

Government will support the Bright ChildProgram as a holistic approach in providinginterventions in food and nutrition, health, earlyeducation, and psychosocial programs. Govern-ment will continue to expand existing programs onmaternal and child health and nutrition welfare,namely, immunization, micronutrient supplementa-tion and fortification, breastfeeding and comple-mentary feeding, newborn screening services, andother programs.

• Improved food security at the macro andhousehold levels

Ensuring food availability and accessibilitymust be within the policy framework ofmacro agriculture. In the MTPDP 2004-2010,the government will: a) develop at least twomillion hectares of new agribusiness landswithin the next six years to create at leasttwo million jobs, and b) make food plentiful atcompetitive prices where the cost of priority“wage goods” like rice, sugar, vegetables,poultry, pork and fish, and other importantnon-wage goods like corn must be reduced.

At the household and community levels,the bio-intensive gardening (BIG) and FAITH(food always in the home) models, as well assmall scale dairy production, need to berevived and implemented. Likewise, produc-tion and utilization of foods of high-nutrientquality, increased consumption of fortifiedfoods, supplementary food for special situa-tions, have to be pursued as short- and


advocacy will be pursued through the continuingdocumentation of innovative, indigenous and effi-cient practices in nutrition and inclusion of nutritionunder the Local Development Fund.

• Strengthened community involvementCognizant of the reality that co-ownership of a

program is critical in addressing malnutrition, thereis a need to strengthen the participation of thecommunity in the assessment of the situation,identification of problems and formulation ofprograms and concrete activities, and subsequentmonitoring of interventions.

• Popularization LGUs’ contributions inaddressing nutrition problems

The NNC institutionalized the Monitoring andEvaluation of Local Level Plan Implementation(MELLPI), which involves the assessment of theefficiency and effectiveness of program implemen-tation by the nutrition committees enabling LGUsand program implementers to improve theirnutrition program. Outstanding support perfor-mance in local nutrition program management andimplementation are awarded with the NutritionHonor Award (NHA), Consistent Regional Out-standing Winner in Nutrition (CROWN), andCROWN Maintenance Awards. Exemplaryperformance of barangay nutrition scholars (BNS)in the delivery of basic nutrition services is alsorecognized by giving trophies and cash prizes.There will be increased media reportage andpopularized recognition and award systems toencourage LGU support for nutrition programs.

• Improved data at the local levelNutrition data/indicators need to be part of

performance targets of local officials in thedelivery of basic services allowing them to takecorrective actions to improve performance. TheOperation Timbang (OPT) results at the local levelwill be maximized to meet the data gaps duringyears when a national survey is not available.Moreover, in-depth analysis or correlational studiesof existing data will be conducted.

• Arrest of the increasing trend of overweightand obesity

The NNS revealed an increasing trend ofoverweight and obesity. From 1998 to 2003, theprevalence of overweight among 0 to 5-year-oldsincreased from 0.4 percent to 1.4 percent, posingan increased risk of developing diet-related chronicdiseases such as diseases of the vascular system,cancers and diabetes mellitus. Thus, a program toarrest the increasing trend of overweight andobesity and other lifestyle diseases has to bestrengthened.

areas, ARMM). Particular attention will be pro-vided to the needs of children in situations ofarmed conflict.

Food Insecurity and Vulnerability InformationMapping System (FIVIMS) will be institutionalizedthrough provision of adequate resources andadoption of the LGUs. This system will serve asbasis for characterizing and identifying people thatare most at risk of food insecurity and are vulner-able to malnutrition in the country. The FIVIMSwill also locate areas where they are, determinethe causes and magnitude of their food insecurityand vulnerability, so as to determine and carry outappropriate interventions.

• Strictl enforcement of the ASIN Law andFood Fortification Act

Awareness on the use of iodized salt is 79.5percent while household utilization is estimated onlyat 38.1 percent, according to the 2003 BaselineFood Consumption Survey for Evaluating theImpact of the Food Fortification Program in thePhilippines of the Sixth National Nutrition Survey(NNS). The anemia problem, especially amonginfants six months to less than a year old, andpregnant and lactating women, has remainedunabated.

Intensive advocacy and Information EducationCampaign (IEC) activities on childcare and nutrition,specifically the dissemination and strict enforcementof nutrition-related laws (e.g., Food Fortification Actand ASIN Law) will be implemented. There willalso be strict monitoring of the preparedness of boththe government and the food industry for theimplementation of mandatory fortification of staplefoods such as rice and sugar, which commenced inNovember 2004. Private sector participation will beencouraged to ensure the availability of fortifiedfood products in the market.

• Increased investments in nutritionWith the devolution of delivery of basic social

services under the Local Government Code(LGC), the focus on nutrition is dependent on thepriorities and appreciation of the local chiefexecutives (LCEs). Majority of LGUs have givenlow priority to nutrition programs.

Existing nutrition programs will be reviewedand more cost-effective nutrition interventions,including the full implementation of the Action forNutrition Improvement (ANI) Program, will beidentified. Likewise, the Healthier Children-Wealthier Farmers Program will be implemented.

Local-level capabilities for resource generationand mobilization, program management, monitoringand evaluation, and comprehensive planning thatconsiders child health and nutrition as priority areaswill be strengthened. Furthermore, localization


Goal 2: Achieve universalprimary education

Status and trendsEnrolment in public and private elementary

schools reached 13 million in School Year (SY)2003-2004 representing an increase of 1.6 percentfrom the SY 2000-2001 level of 12.8 million. Basedon the school-age population of 6-11 years old, theparticipation rate at the primary or elementary levelstood at 90.05 percent in SY 2002-2003. The mostrecent data on participation rate suggest that there isa need for greater effort to achieve the target ofuniversal access to elementary education. Acrossregions, the Autonomous Region in MuslimMindanao (ARMM) registered the highest participa-tion rate in elementary schools (public only) with91.37 percent while the lowest was registered in theNational Capital Region (NCR) with 77.15 percent.


Achieve universal access toprimary education by 2015

Target3


FIGURE 11: Elementary Education Participation Rate Across Regions, SY 2002-2003*

Source: Research and Statistics Division, DepEd *Public schools only

ARMM

Caraga

XII

XI

X

IX

VIII

VII

VI

V

IV-B

IV-A

NCR

CAR

III

II

I

91.37

78.56

78.56

80.09

84.59

87.40

84.18

83.05

82.51

88.45

89.09

82.83

77.15

82.81

84.27

83.33

83.93

70 75 80 85 90 95


77.15 - 82.00

82.01 - 86.00

Cagayan Valley83.33

Bicol88.45



Caraga78.56

SOCSARGEN78.56


ARMM91.37




MIMAROPA89.09

CALABARZON82.83

NCR77.15

Central Luzon84.27

Ilocos83.93

CAR82.81

86.01 - 91-37


Cohort survival rate (CSR) at the elementarylevel showed continuing improvement from67.21 percent in SY 2000-2001 to 69.84 percentin SY 2002-2003 though it remains low. In thesame period, completion rate showed slightimprovement from 66.13 percent to 66.85percent. Conversely, dropout rate for elementaryslightly declined from 7.67 percent in SY 2000-2001 to 7.34 percent in SY 2002-2003.

Though ARMM registered a high participa-tion rate, it posted the lowest CSR and comple-tion rate of 47.49 percent and 42.91 percent,respectively. On the other hand, Region I(Ilocos Region) posted the highest cohortsurvival and completion rates of 87.47 percentand 84.09 percent, respectively. The highestdropout rate was registered in Region VII(Central Visayas) with 3.03 percent.

FIGURE 13: Cohort Survival Rate Across Regions, SY 2002-2003*


47.49

69.06

80.00

56.66

53.29

69.61

67.06

61.11

65.38

67.58

62.17

72.44

69.18

75.09

79.96

77.66

87.47

40 50 60 70 80 9045 55 65 75 85 95

ARMM

CAR

NCR

Caraga

XII

XI

X

IX

VIII

VII

VI

V

IV-B

IV-A

III

II

I

52


47-49 - 60.81

60.82 - 74.15

Cagayan Valley77.66

Bicol72.44



Caraga56.66

SOCSARGEN53.29


ARMM47.49




MIMAROPA69.18

CALABARZON75.09

NCR80

Central Luzon79.96

Ilocos87.47

CAR69.06

74.16 - 87.47


FIGURE 14: Completion Rate Across Regions, SY 2002-2003*


42.91

66.76

78.37

55.21

51.25

68.42

65.57

58.29

62.79

64.11

59.56

69.19

65.76

73.29

76.46

76.39

84.09

40 50 60 70 75 85

ARMM

CAR

NCR

Caraga

XII

XI

X

IX

VIII

VII

VI

V

IV-B

IV-A

III

II

I

45 55 65 80 90


42.91 - 56.64

56.65 - 70.38

Cagayan Valley76.39

Bicol69.19



Caraga55.21

SOCSARGEN51.25


ARMM42.91




MIMAROPA65.76

CALABARZON73.29

NCR78.37

Central Luzon76.46

Ilocos84.09

CAR66.76

70.39 - 84.09


level were Region I (Ilocos Region) with 97.4percent, Region IV-A (Southern Tagalog -CALABARZON) with 97.2 percent, Region III(Central Luzon) with 96.9 percent, and Region V(Bicol Region) with 95.0 percent.

In terms of functional literacy, the 2003FLEMMS showed that of the country’s 57.6million Filipinos aged 10-64 years, 48.4 million or84.1 percent are functionally literate. Thisrepresents a 0.3 improvement from the 1994 level

Based on the 2003 Functional Literacy Educa-tion and Mass Media Survey (FLEMMS), thePhilippines’ basic or simple literacy rate stood at93.4 percent, one of the highest in Southeast Asia.There was a slight difference between male (92.6percent) and female (94.3 percent) literacy.Across regions, the NCR posted the highestliteracy rate at 99.0 percent while ARMMregistered the lowest with 70.2 percent. Otherregions with higher literacy rate than the national

FIGURE 15: Simple Literacy Rate Across Regions (10 years old and over), 2003

Source: National Statistics Office, 2003 Functional Literacy, Education and Mass Media Survey (FLEMMS)

ARMM

Caraga

XI

IX

VIII

VII

VI

V

IV-B

IV-A

NCR

CAR

III

II

I

70.2

92.1

87.3

90.3

91.8

88.9

90.1

92.4

92.8

95.0

91.2

97.2

99.0

91.6

96.9

92.7

97.4

60

XII

X

70 80 90 100


FIGURE 15: Simple Literacy Rate Across Regions (10 years old and over), 2003

70.7 - 91.9

92.0 - 93.4

Cagayan Valley92.7

Bicol95.0

Eastern Visayas90.1

Central Visayas92.4

Caraga92.1

SOCSARGEN87.3


ARMM70.2



Western Visayas92.8

MIMAROPA91.2

CALABARZON97.2

NCR99.0

Central Luzon96.9

Ilocos97.4

CAR91.6

Source: 2003 Functional Literacy, Education and Mass Media Survey (FLEMMS)

93.4 - 99.1


Government spending for basic education grew atan annual average of 4.5 percent from 2000-2004.The 2004 budget for basic education increased byPhP10.8 billion or about 11 percent from the 2001level of PhP98.2 billion. Apart from the nationalbudget, the subsector was able to gain from theresources available to the LGUs through theSpecial Education Fund, the private sector, andofficial development assistance (ODA).

of 83.8 percent. The National Capital Region hadthe highest functional literacy rate (94.6 percent)while the ARMM registered the lowest rate(62.9 percent).

In terms of resource allocation, the basiceducation subsector continues to take the biggerchunk of the education budget in line with thegovernment’s commitment to free and compulsoryelementary education and free secondary education.

FIGURE 16: Functional Literacy Rate Across Regions (10 To 64 Years Old), 2003


ARMM

Caraga

XI

X

IX

VIII

VII

VI

V

IV-B

IV-A

III

II

I

62.9

81.0

77.1

77.8

83.7

74.8

76.7

81.7

81.5

80.1

82.3

90.4

85.4

94.6

86.9

84.4

88.6

60

XII

70 80 90 100

CAR

NCR


FIGURE 16: Functional Literacy Rate Across Regions (10 To 64 Years Old), 2003

Cagayan Valley84.4

Bicol80.1

Eastern Visayas76.7

Central Visayas81.7

Caraga81

SOCSARGEN77.1


ARMM62.9



Western Visayas81.5

MIMAROPA82.3

CALABARZON90.4

NCR94.6

Central Luzon86.9

Ilocos88.6

CAR85.4



The FFCCCII constructed 482 classrooms for theperiod 2002-2003. The Adopt-A-School Programaimed at generating private sector support for thepublic basic education system was also promotedby the DepEd. The program yielded donationsvalued at over PhP270 million from September2002 to January 2004. Donor assistance came inthe form of classroom construction; teachingskills development; provision of basic schoolresources; including textbooks, computer andscience laboratory equipment; and school-feedingprograms for children.

Along this line, various programs and projectsthat address the needs of the hard-to-reach areas,out-of-school children and youth, and poverty-stricken areas were implemented. These includethe Multigrade Program in Philippine Education,Third Elementary Education Program, BasicEducation Assistance for Mindanao, Accreditationand Equivalency Program and the Child-FriendlySchool System under the Fifth Country Programfor Children (CPCV-CFSS).

To reach communities which are unserved orunderserved by the formal school system, alterna-tive delivery programs such as the Strong Repub-lic Schools (SRS) - Distance Learning Programwas launched in 2003. The program utilizesdistance learning technologies such as television,radio and cable networks in identified communi-ties/barangays nationwide. The SRS with an initialtarget of 500 barangays aims to provide basicliteracy and equivalency programs, among others.

Through Republic Act 9155 (Governance ofBasic Education Act of 2001), the Department ofEducation (DepEd) continues to implementpolicies, programs and projects aimed at improv-ing the quality of Philippine education. Theseinitiatives will make education accessible to allFilipinos and responsive to the developmentchallenges of the country.

• Access to basic educationIn 2000, there were 4,569 barangays (about

10 percent of total barangays) without elemen-tary schools. However, it was identified in 2001that only 1,617 of these barangays neededschools because the rest had access to schoolsoutside of their barangays. Of barangays thathave no access to elementary education, only118 remain unserved as of 2004.

There was a significant reduction in thenumber of incomplete elementary schools from2,537 in 2001 to 1,492 in 2003 (a decrease ofabout 41 percent over a three-year period).

Sustaining the gains in improving access tobasic education remians a priority in the Philip-pines as a response to the increasing demanddue to the growing school-age population. Schoolpartnership with various stakeholders – thecommunity, parents, LGUs, non-governmentorganizations (NGOs) and business groups–isfurther encouraged, along with taking moreactive roles in planning and resource mobilizationfor education improvement, both at the nationaland local levels.

In May 2003, the DepEd launched theBrigada Eskwela (School Brigade) to mobilizecommunity support. This is a school mainte-nance project that involves time, labor andresources volunteered by the community for therehabilitation and maintenance of classrooms,laboratories and multipurpose workshops. Sinceits launching, the number of participating el-ementary and secondary schools increased from13,660 in 2003 to 16,086 in 2004. Moreover, atotal of 278,170 parent-volunteers joined theprogram in May 2004 and undertook rehabilita-tion and maintenance activities. The DepEd alsotapped the Federation of Filipino-ChineseChamber of Commerce and Industry, Inc.(FFCCCII) to construct and rehabilitate class-rooms at a lower cost as its members partlysubsidized the cost of materials and services.


He takes a longer road to school. But 16-year-old Alex Langgomez does not mind the lengthy hikeas long as it leads to Pangao-an Elementary School.Not wanting to be late for his classes, Alex leaveshome at five in the morning to reach school atseven. Now in Grade 5, Alex lives in Manobisa, amountain sitio of Barangay Pangao-an in Magpet,Cotabato. This sitio is populated mainly byManobos, one of many indigenous groups inMindanao.

Alex started schooling at age 10. He used tostudy at the Manobisa Primary School, which wasnearer home and had multigrade classes fromGrades 1 to 4 only. Due to poverty, he dropped outtwice to give way to his elder brother. His father,Mang Felipe, earns a meager 50 pesos per day as afarm laborer in the rubber and coconut plantation inManibosa. He augments his income by makingpaypay (fan made from anahaw leaf), bucag (bigbasket with no handles), and walis (soft broom made

The Longer Road


Grading System, which did away with the use of atransmutation table for giving out student grades.The old system was regarded as a deceptivegrading system because it assigns a grade forcertain scores through the use of a transmutationtable, thus not reflecting the actual mark. With theimproved test designs, the new system hopes togauge the real level of learning outcomes.

A new student assessment scheme wasintroduced in SY 2002-2003 while the High-School Bridge Program was launched in SY2004-2005. The new student assessment schemeincluded a diagnostic test administered to GradeIV pupils and First-Year students at the start ofthe school year to determine learning gaps; testresults served as the basis for implementingremedial measures within the school year.Achievement tests were then administered to thesame group of pupils and students at the end ofthe school year to determine progress in learning.Results of both tests indicated that pupils/studentswere not ready for higher grade/level of educa-tion as there was no mastery of the desiredcompetencies. A remedial program becameimperative to protect the interest of the studentsand after careful study and consultations, theHigh-School Bridge Program was launched.Designed to improve elementary school gradu-ates’ preparedness for high school, the BridgeProgram determines the pupils’ level of compe-tency through placement or readiness tests.Based on the results, pupils will either proceed to

• Improving quality of educationThe DepED has been relentlessly responding to

the challenge of improving the quality of basiceducation with various policy reforms and pro-grams. A restructured Basic Education Curriculum(BEC) which aims to allow concentration oncritical key subjects (English, Science, Mathemat-ics and Filipino) was implemented beginning in SY2002-2003. This was accompanied by the institu-tionalization of the New Performance-Based

from tiger grass). With eight children to support,Mang Felipe finds it difficult to make both ends meet.His wife and children have to help. “Nagpahurnalman ako sa paghimpieza sa uma (I worked as a farmhand weeding the farm),” Alex says. He savedmoney so that he could return to school this year tofinish his studies.

Despite the inclusion of a multigrade class forGrades 5 to 6 in Manobisa, Alex opted to go toPangao-an Elementary School, a child-friendlyschool system (CFSS) pilot site. As a child-friendlyschool, Pangao-an is protective and inclusive of allchildren, promoting tolerance of diversity andequality between sexes and among ethnic groupsand age groups. It also adjusts to meet differingneeds of children. This kind of environment isnecessary especially with the Balik-Aral (Return toSchool) program which is being implemented by theDepEd in Pangao-an. The program encouragesolder children and even adults to go back to school.

Alex must have experienced this caring atmo-sphere at Pangao-an Elementary School. When his

teachers encouraged him to go back to ManobisaElementary School, which was nearer his home, herefused. “Dili na ako mag-eskuwela kung ipabalik akosa Manobisa (I won’t go to school anymore if theyforce me to go back to Manobisa),” he says resolutely.

Not that the school in Manobisa is less caringbut Alex simply prefers the more-focused attentionthat teachers in a monograde system providestudents. According to Alex, teachers in Pangao-anare indeed friendly. His teacher, Eleanor Borra, callsstudents ga or palangga (a term of endearmentwhich means love). Teachers there do not usesticks or raise their voices to enforce discipline.“Dili pud kami ginakusi (They don’t pinch us either).”Alex says that teachers treat their pupils like theirown children. “Pupils at Pangao-an are happy,” headds. “We play together. Everyone is friendly. Wehelp one another. We can go to our teachers andask for help, when necessary.”

Source: Child-Friendly Learning Happens Here, 2003 (Stories onthe Child-Friendly School System)


first year using the existing four-year high-schoolcurriculum, or first take a one-year bridge pro-gram focusing on English, Science and Math.

Reforms to support the empowerment ofteachers continued to be implemented. Theseincluded the increase of their take-home pay bystopping deductions on teachers’ salaries (such asfor loss of textbooks by students), adopting acheckless payroll system, and loan restructuring.Teachers were also freed from non-teachingactivities so that they can focus on their instruc-tion duties. Moreover, to improve their teachingand management skills, teachers were providedwith various in-service training focusing onEnglish, Science, Math and Filipino (in support ofthe revised BEC) and a special course on Lead-ership and Basic School Management to preparethem for eventual school-based management.

A move by the Commission on Higher Educa-tion (CHED) to modify and improve the curriculumof the pre-service teacher education and training in2004 was welcomed by the DepEd, as it seeksincreased responsiveness to the new BEC, thedecentralization of education management anddelivery, and the empowerment of the schools. Adistinct feature of the new pre-service teachereducation curriculum is an earlier and longerimmersion in public schools to hone the practicalaptitude of the future teachers and enhance theircontent knowledge.

To address the problem on school attendance ofpoor children, the Food for School Program waslaunched by the Department of Social Welfare andDevelopment (DSWD) on November 9, 2004.The program involves a package of comprehensiveand immediate interventions including food assis-

tance for Grades 1 and 2 students and theirfamilies. It has an initial target of 50,000 studentsfrom three cities in Metro Manila (Caloocan,Manila and Quezon City) and three provinces inRegion IV (Cavite, Bulacan and Rizal).

• Good governanceRepublic Act No. 9155 (Governance of Basic

Education Act of 2001) provided the frameworkfor the decentralization of management of basiceducation and enabled a structural reform to boostthe effectiveness of the DepEd from the centraloffice to its subnational levels, especially theschools. Through this Act, all school heads arenow authorized to initiate and engage in educa-tional innovations that will improve actual deliveryof basic education to the children based on theirown needs, resources and contexts, with thedivisions, regions and central offices providing allthe system support. To complement this, partner-ships between the schools and the communities arealso strengthened and fostered. Because this majorshift in delivering basic education is difficult andtime-consuming, training programs and workshopsare being held to enable the schools to performschool-based management. On the other hand,supervisors and educational managers from thedivision up to the central level are performing moreoversight functions (supervision, program review,monitoring and evaluation, provision of technicalassistance, etc.). A number of existing policies arealso being reviewed with the end goal of facilitatingthe smooth implementation of school-basedmanagement by the schools themselves whichincludes, among others, the grant of MOOEresources direct to these institutions.


• Improving school-retention capacityFormal and alternative approaches to reduce

dropout rate should continue to be extended tochildren and their families especially those inremote areas with armed conflict, in extremepoverty, and belonging to indigenous communities.Antipoverty measures need to be intensified asnon-school inputs such as health and nutrition,livelihood support programs for parents, communitysupport system, and other social protection pro-grams are also crucial to keep the children inschool and to raise their level of achievement.

• Improving qualityAnother urgent and pressing challenge is

improving the quality of basic education. Since thepositive impact of the recently introduced reformshas yet to be realized, it is clear that the efforts toimprove the quality of education must be equallyintensified alongside that of improving access. Thegreater challenge is how to pursue programs thataddress the exceedingly low performance ofstudents, and the incidence of low-quality educa-

Challenges and priorities for actiontion in some regions and in indigenous peoples (IP)communities. The utilization of the pedagogicalinnovations developed under the existing programsand projects that have been crucial in improvingeducation outcomes must be expanded.

• Improving governance and resourceallocation and utilization

The implementation of RA 9155– especiallywith regard to the shift in the functions of theDepEd’s subnational level offices (i.e., regional,division and school), defining their roles andresponsibilities in terms of resource allocation, andprogram and project implementation – has yet tobe followed up with specific department orders andguidelines to be fully implemented. Similarly, arationalized allocation of resources for educationinputs like facilities, teachers and instructionalmaterials must be set in response to the growingschool population. This must be accompanied byrealistic deployment of teachers as well as efficientdistribution of textbooks and other basic educationresources.


Goal 3: Promotegender equality

Results from the 2003 Functional Literacy,Education and Mass Media Survey (FLEMMS)indicate females having higher rates than males inboth simple (94.6 percent vs. 93.2 percent) andfunctional (86.3 percent vs. 81.9 percent) literacy.

On a regional basis, females dominated malesin simple literacy except in the Cordillera Adminis-trative Region (CAR) (91.4 percent vs. 92.4percent), Ilocos Region (97.5 percent vs. 97.7percent), Central Luzon (97.1 percent vs. 97.2percent), Mindoro-Marinduque-Romblon-Palawan(MIMAROPA) (91.6 percent vs. 92.5 percent),and the ARMM (69.7 percent vs. 71.7 percent).

Female advantage is more pronounced in func-tional literacy, as female rates are higher in all regions(with the exception of ARMM with rates of 62.1percent and 63.6 percent for females and males,respectively). Likewise, the range of genderdisparity in functional literacy is much wider.Eastern Visayas showed the widest gap withfemales having a 10.4 percentage point advantageover males (82.1 percent vs. 71.7 percent).

Schooling data for SY 2003-2004 showed thatgirls have higher participation rates than boys at el-ementary (82.59 percent vs. 80.88 percent) and highschool (51.19 percent vs. 42.97 percent) levels.1 Dis-parity is generally minimal across regions at the el-ementary level except in the ARMM which posted agender parity index (GPI)2 of 1.10 (93.31 percent:84.85 percent).3 Larger ratio discrepancies wereposted in the secondary level with GPIs ranging from1.08 (58.02 percent: 53.8 percent) in the NCR to 1.34(48.99 percent: 36.66 percent) in Eastern Visayas.

Enrolment figures for Grade 1 (SY 2003-2004)likewise indicated that there were more girls (45.99percent) who started school than boys (41.88percent). Boys also lagged behind girls in terms ofcohort survival rate (CSR) in both the elementary(68.13 percent vs. 59.50 percent) and secondary(67.68 percent vs. 53.42 percent) levels. The samecan be said of completion rates where girls stillemerged to be at an advantage over boys inelementary (66.86 percent vs. 57.76 percent) andhigh school (63.7 percent vs. 48.77 percent)levels.4 The trend of girls having higher CSR andcompletion rates can be observed across regions.

The results of the 2002 Annual Poverty Indica-tors Survey (APIS) also offered useful insights.Schooling status data showed more femalesattending school than males (72 percent vs. 66percent)–a trend consistent in both urban and ruralareas. For males, the most frequently cited reasonsfor not attending school were employment con-cerns (30 percent), lack of personal interest (25percent), and the high cost of education (23percent). Among females, employment- related

1 All basic education data cited in this section cover only public schools.2 Gender Parity Index (GPI) is the ratio of female to male values of an indicator. A GPI of 1.0 indicates gender parity (equality). A GPI greater than 1.0 indicates a gender disparity in favor of

females (i.e., there is a higher proportion of females than males).3 The World Bank human development study in ARMM (Human Development for Peace and Prosperity in the Autonomous Region in Muslim Mindanao, November 2003) noted that there is a higher

dropout rate among boys in their early teens. It was also observed that the increase in boys’ drop out rate occurs about two years earlier compared to boys in other regions of the country, and three yearsearlier than girls in ARMM. This trend is primarily attributed to the recurrent armed conflict in the Region and its adverse impact, which appear to affect more young teenage boys than girls.

4 While it can be generally said that females are at par, or even better off, in terms of educational indicators, particular attention must be given to vulnerable persons (such as street children,indigenous peoples and those in conflict-affected areas). The Report on the State of Filipino Women (RSFW) 2001-2003 cited that female access to basic education is lower in these groups/areas.

Status and trends

Eliminate gender disparity in primaryand secondary education, preferablyby 2005, and in all levels of educationno later than 2015

Target4


concerns (22 percent) also turned out to be theprimary deterrent to school attendance, followedby the high cost of education (21 percent) andhousekeeping responsibilities (16 percent).

With more females successfully completing highschool and generally more predisposed to schooling,higher education is still female-dominated. In SY2001-2002, females comprised 55 percent of total

enrollees.5 The gradua-tion figures for SY 2000-2001 showed greaterdisparity as 60 percentof those who graduatedwere females.

The entry of femalesinto several of the“traditionally” male-dominated disciplineshas steadily continued.Female enrolees (SY2001-2002) in the fieldsof agriculture, forestry,fishery and veterinarymedicine, and mathemat-ics and computer sciencecomprised 50 percentand 54 percent, respec-tively. The most dramaticincrease in femaleenrolment (79 percent)was in trade, craft andindustrial courses. Theparticipation of womenin the military and policeacademy has alsoincreased. In 1997, therewere seven women whograduated from thePhilippine MilitaryAcademy (PMA); oneof them obtained thehighest honors.

In technical-vocationaleducation and training(TVET), the total numberof graduates for SY 2002-2003 indicated an almostequal distribution betweenfemales (49 percent) andmales (51 percent).6 Thesame can be said of totalenrolment based on SY2003-2004 data whichalso showed a 49:51percent female-maleshare. However, regional

enrolment data suggested uneven degrees ofdisparity. In the NCR, for example, femalesoutnumber males 14:10 while in Region II, theopposite was noted with a female-male ratio of 6:10.

On employment, the number of employedpersons in 2003 was 30.7 million, of which 61.6percent were males and 38.4 percent werefemales. Employment rates (2003) for males and

5 Higher education figures are from both public and private institutions. It excludes post-graduate level data.6 TVET data cover public and private school-based regular and extension/short-term programs.


FIGURE 19: Secondary Education Participation Rate Gender Parity Index, SY 2003-2004

1.08 - 1.21

1.22 - 1.24

Cagayan Valley1.21

Bicol1.25

Eastern Visayas1.34

Central Visayas1.23

Caraga1.28

SOCSARGEN1.26


ARMM1.20



Western Visayas1.23

MIMAROPA1.24

CALABARZON1.14

NCR1.08

Central Luzon1.13

Ilocos1.12

CAR1.27

Source: Department of Education – Research and Statistics Division (Basic Education Information System)

1.25 - 1.33


4,794 6.7 6,887 15.3 5,775 7.6 7,815 16.6

Officials of Governmentand Special Interest-Organizations, CorporateExecutives, Managers,Managing Proprietors andSupervisors

Professionals

Technicians andAssociate Professionals

Clerks

Service Workers, Shopand Market SalesWorkers

Farmers, ForestryWorkers, and Fishermen

Traders and RelatedWorkers

Plant Machine Operatorsand Assemblers

Laborers and UnskilledWorkers

Special Occupations

Total

1,688 2.4 3,604 8.0 1,710 2.3 3,685 7.8

1,523 2.1 1,469 3.3 1,736 2.3 1,795 3.8

1,732 2.4 3,535 7.9 1,834 2.4 3,590 7.6

4,820 6.7 5,507 12.3 5,297 7.0 5,565 11.8

21,096 29.4 4,316 9.6 20,899 27.7 3,979 8.5

8,819 12.3 3,480 7.7 8,580 11.4 3,148 6.7

8,387 11.7 745 1.7 8,647 11.5 745 1.6

18,377 25.6 15,304 34.1 20,536 27.2 16,677 35.4

459 0.6 79 0.2 480 0.6 51 0.1

71,695 100.0 44,926 100.0 75,494 100.0 47,050 100.0

MajorOccupationGroup Number Percent Number Percent Number Percent Number Percent

Male Female Male Female

2001 2003

Source: National Statistics Office

TABLE 9: Employed Persons by Major Occupation Group and Sex, 2001 and 2003(In thousands except percent)

female LFPR of 64 percent while the ARMM hadthe lowest at 31 percent.

The country’s gender-related development index(GDI) based on the UNDP Human DevelopmentReport showed improvement from 0.739 in 1998 to0.751 in 2002. This showed that gender inequality inachievement in the three basic dimensions capturedin the human development index (i.e., a long andhealthy life, knowledge, and a decent standard ofliving) is slowly being reduced. Likewise, womenare increasingly being empowered as indicated byprogress in the gender empowerment measure(GEM), which captures gender inequality in eco-nomic and political participation as well as decisionmaking and power over economic resources. In2004, the Philippines posted a GEM of 0.542, animprovement from its 1999 level of 0.48.

Women’s participation in governance improvedwith a greater number of women being elected inLGUs and appointed to the Cabinet, CareerExecutive Service (CES) positions, embassies andconsulates, and the judiciary. In the legislature,there are presently 36 (15 percent) and four (19percent) women in the House of Representativesand the Senate, respectively.

females were 89 percent and 88.1 percent, respec-tively.7 Data on the occupation of employed persons(2003) show that majority of employed femaleswork as laborers and unskilled workers (35.4percent) and as officials of government and specialinterest organizations, corporate executives, manag-ers and supervisors (16.6 percent). For males,majority were employed as farmers, forestryworkers, and fishermen (27.7 percent), and aslaborers and unskilled workers (27.2 percent).

In terms of labor force participation from 1990to 2003, the male and female labor force participa-tion rates or LFPRs appear to be generally flatacross time, i.e., participation levels by sex havenot substantially changed. However, this does notmean that female participation has not improved.There have been increases although minimal,notable of which is the trend beginning 1999 duringwhich female participation reached 50 percent andseemed to be stable. The female LFPRs for 2001and 2003 were 51.8 percent and 51 percent,respectively. Nevertheless, regional figures showeddisparities, which may be far from the average.Regional data for 2002, for example, showed thatRegion X (Northern Mindanao) posted the highest

7 From 2000 to 2003, there is no significant change in trend for this indicator. Employment rates for 2000 were 89.1 and 88.4 percent for males and females, respectively.



In line with overall developmental thrusts, thepromotion of gender-sensitivity in learning contentand teaching approaches has been steadily progress-ing. The DepEd prepared teaching guides for theinclusion of gender in the elementary and high schoolcurricula. The 2002 Restructured BEC now takesinto consideration gender issues in all of the fivelearning areas of Filipino, Science, Math, English andMakabayan (Social Studies, History, Arts, Technol-ogy and Home Economics). The DepEd likewiseinitiated teacher-training activities along these areas.

The skills training program of the DSWD,through its nationwide network of Productivity andSkills Capability Building for Disadvantaged Women(PSCB) centers, contributed in improving women’saccess to training and expanding their employmentopportunities. In 2001, the program reached 31,827disadvantaged women trainees, majority of whom(87 percent) eventually got employed.

The Technical Education and Skills DevelopmentAuthority (TESDA) put up the Kasanayan-Kabuhayan One-Stop Shop to address the needsof displaced women workers and workers in theinformal sector. The Shop serves as a referral facilitythat provides relevant information and services forexpanding employment opportunities through skillsassessment, career counseling, information on supportservices in overseas and local employment, skillstraining and retraining, scholarship grants oninformation and communications technology andentrepreneurship development training, capitaland credit availment, and networking.

Other government agencies such as the Depart-ment of Environment and Natural Resources(DENR) have also started to give particular attentionto the gender dimension of their programs. One ofthe initiatives of the DENR in gender mainstreamingwas to include gender analysis in the implementationof its community-based forestry program. This ledto the increase in stewardship contracts awarded towomen, thus improving gender equity in the controlof forest resources. Likewise, participating people’sorganizations were trained to ensure women’sparticipation and decision making in communitylivelihood projects. As a flagship program, thepositive experiences and best practices identifiedhave provided impetus in reorienting other DENRprograms to be more gender-sensitive.

The national government continued to carry outmeasures to improve the implementation of the 1995Gender and Development (GAD) Policy which directs

all government departments, bureaus, offices andagencies to set aside an amount of their annual appro-priations for projects designed to address gender anddevelopment issues. To provide clearer and moreoperational concepts on mainstreaming GAD inplanning and budgeting, the National Commission onthe Role of Filipino Women (NCRFW), the Depart-ment of Budget and Management (DBM), and theNational Economic and Development Authority(NEDA), in time for the 2005 budget preparation,issued Joint Circular 2004-1 - Guidelines for thePreparation of GAD Plan and Budget and Accomplish-ment Report to Implement the Section on Programs/Projects Related to GAD of the General Appropria-tions Act (GAA). Among others, two importantfeatures introduced by the guidelines were: the respon-sibility of oversight agencies in preparing GAD plansand budgets in pursuit of their supervisory roles (whichexacts greater accountability in ensuring that agenciesadequately address GAD concerns), and themainstreaming of GAD activities into the existingmonitoring and evaluation system of agencies.

To improve the incorporation and coordinationof GAD concerns in development initiatives, theNEDA, NCRFW, and the Official DevelopmentAssistance (ODA)-GAD Network came up withthe Harmonized GAD Guidelines (2005) for ProjectDevelopment, Implementation, Monitoring andEvaluation. The Guidelines primarily provides thegovernment, donor agencies and developmentpractitioners with a common set of analyticalconcepts and tools for integrating gender concernsinto development programs and projects.

At the local level, gender mainstreaming hasbeen likewise gaining ground. Several LGUs crafted


their own GAD Codes, which laid out their vision ofpromoting, protecting and fulfilling women’s rightsand gender equality, and identified comprehensiveinterventions to address the practical and strategicgender concerns of both women and men. Amongthe exemplary GAD Codes are those of Davao City,Cotabato Province, Misamis Occidental Province,Quezon City and Angeles City. In the Province ofAklan, for example, activities aimed at strengtheningthe provincial GAD coordinating mechanism andadvocacy with top level officials helped to sort outits priority gender issues and prepare plans onconcerns such as reproductive health and violenceagainst women.

The private sector has also initiated effectiveGAD programs. The efforts of the MindanaoCommission on Women, a newly formed nongovern-ment organization (NGO) of Muslim, Christian andLumad women leaders committed to the pursuit ofpeace and equitable development, for example,helped push the GAD agenda in Mindanao. Itcrafted a three-year comprehensive program (2003-2005) on women empowerment anchored on threemajor areas: peace and multiculturalism, povertyreduction (covering education, health and income),and politics and governance. Their activities includedcampaigns and public advocacy (such as the 2003“Mothers for Peace” national campaign for peace inMindanao), the organization of women’s fora,trainings/seminars, networking activities, and theestablishment of a Mindanao Fund for Women. TheCommission has also come up with a timely PositionPaper for the Government of the Republic of thePhilippines-Moro Islamic Liberation Front (GRP-MILF) Final Peace Agreement.

Challengesand prioritiesfor action• Understanding the sociocultural nuances ofPhilippine gender issues

Current education indicators show that femalesgenerally hold an advantage over males when itcomes to education. As this appears to be a continu-ing phenomenon, the comparatively low completionand retention among males in the school system areissues that should be considered in the planning andimplementation of interventions. More appropriately,the DepEd and other stakeholders should movetoward a deeper understanding of the socioculturalnuances of gender disparity so as to make educa-tional programs more responsive to particularsituations. The deterrents, motivations, and incen-tives for attending school, which information suchas the APIS results have partially shed light on,provided gender dimensions with variations acrossareas as shown by regional disparities.

• Strengthening the Alternative LearningSystem (ALS)

The alternative learning system has to bestrengthened to provide a viable option for thosewho are deterred from entering or staying withinthe existing formal education system. Gender issuesshould be adequately integrated with the concerns inimproving the DepEd’s service-delivery capacity inpartnership with the private sector.

The DepEd should take full advantage of theissuance of Executive Order No. 356, which renamedthe Department’s Bureau of Non-Formal Education(BNFE) to the Bureau of Alternative LearningSystem (BALS) and strengthened the functions ofthe BALS to meet the learning needs of marginalizedlearners and ensure that all types of learners outsidethe school system are reached through a moreflexible approach.

• Improving the gender content of educationEfforts to review and improve BEC content to

eliminate gender role stereotypes and promotepositive roles for both women and men (such asjoint parenting and non-traditional skills and liveli-hoods, among others) should be expanded up to thetertiary level in both private and public schools.Likewise, support for further training and orienta-tion on gender-sensitive approaches to educationshould be continued to reach a wider audience ofteachers and school administrators.


• Making media more gender sensitiveInterventions in steering the media to be more

sensitive on gender issues should be intensifiedsince they wield much influence in shaping publicopinion and serve as a powerful channel of educa-tion. This will entail developing an effective andstrong partnership between the government andthe private media entities.

• Providing better opportunities for womenWhile women appear to be better off in terms of

educational participation and performance, these donot automatically spell out improved economic andsocial opportunities for them. More than providingequitable quality education, the freedom and choicesof Filipino women have to be guaranteed andexpanded. Toward this end, the government has tocontinuously improve its poverty alleviation strate-gies for women, especially those in the informalsector who lack access to support systems such associal security and health insurance. Measures toeliminate gender bias and stereotypes in social andprivate institutions also have to be sustained.

• Mainstreaming the GAD PolicyThe government has to carry on the challenging

task of mainstreaming and fully operationalizing theGAD policy at the local levels along with theimprovement of data gathering and utilization ofgender-related information. Likewise, a system formonitoring the utilization of the GAD budget andthe conduct of a gender audit in governmentagencies should eventually be installed.

• Strengthening government and civil societycollaboration

As one of the most important lessons so far, theinvolvement of advocacy groups should be morevigorously encouraged with the government creatingthe mechanisms and environment conducive to activepeople’s participation. The growing awareness andinitiatives among legislators and public officials onGAD issues need to be coupled with effectivemonitoring strategies on the part of civil society.

Sultan Kudarat is one of the 27 municipalities of theProvince of Maguindanao in the Autonomous Region inMuslim Mindanao (ARMM). Like all other municipalitiesin ARMM, it has a high poverty incidence. In 1999, afterreviewing the situation, the Mayor saw that there was apotentially rich human resource that could be tapped toimprove living conditions at the household level.Specifically, there was a large number of unskilled anduneducated women in the generally Maguindanaonpopulation of the municipality. If these women wereeducated, skilled and empowered, the Mayor believedthat families would have greater opportunities to increasetheir income and improve their living conditions.

Encouraged by Republic Act 7192 (Women inNation Building Act) that empowered LGUs to imple-ment programs with special focus on the participationof women in development, the Mayor and the newlyorganized Gender and Development (GAD) Councilformulated and implemented the Sultan Kudarat (SK)GAD Program.

The Sultan Kudarat GAD Program. The SK GADProgram was an innovative approach that integratedIslamic Gender Sensitivity in education and skillsbuilding and used the concept of partnership forresource mobilization. Partnerships were forgedbetween the municipal and barangay councils, as wellas national line agencies (TESDA, DA, DepEd, DILG,DSWD, DOH), the religious leaders, the Local Govern-ment Support Program (LGSP), and other institutionsoffering skills training programs.

To set the plan in action, resource pooling betweenthe municipal government and barangay councils wasinstitutionalized through a fund-sharing scheme to forma Joint GAD Fund. Beginning year 2000, for the munici-pal contribution of 20 percent of the municipal GADfund, each barangay contributed 40 percent of its GAD

Empowering Maguindanao

Source: Adapted from the


fund allocation. From the period 2000 to 2003, the localgovernment was able to raise a total of PhP4.8 M.

Each barangay identified GAD advocates who werelater trained by the GAD Council, local religious groupsand NGOs to help in the advocacy campaign. Like-wise, the GAD Council met with religious men andwomen leaders to revise the generic module onWomen’s Rights. Islamic principles and values wereintegrated, making the module responsive to thegenerally Muslim population. The training design forbarangay advocates was critically studied and revisedwith the help of women’s religious groups and thedifferent line agencies to suit the cultural and religiousaffiliations of the Maguindanaons. The courses wereconceptualized based on the result of a training needsassessment conducted by the GAD Council. Themajor focus areas identified were: Gender Equity in theContext of Islam, Functional Literacy and Adult Educa-tion, Entrepreneurship and Skills Training on BasicSewing, Food Processing, and Welding and SteelFabrication.

Given the need for skills development, the GADCouncil prioritized the putting up of a Municipal GADTraining Center with line agencies providing technicalassistance and training equipment. The Basic SkillsDevelopment Training started in 2001 with FunctionalLiteracy and Adult Learning Modules integrated in thetraining design. Three training courses are offeredannually: Basic Sewing and Dress Making, Welding,and Cooking and Food Preservation. The PunongBarangays selected trainees using the set of criteriadeveloped by the GAD Council.

Aside from conducting trainee assessment, theGAD Council also evaluates the program impact.Information is gathered on graduates and how thetraining has helped improve their lives. At the end of the

year, the municipal GAD Council evaluates its generalperformance, as well as those of the trainors, traineesand the barangay GAD advocates.

Benefits and Impact. The inception of theprogram has certainly contributed to the empowermentof Maguindanaon women. It has produced 260 trainedGAD men and women advocates, and capacitated 485women with livelihood skills, consequently increasingthe rate of participation of women in the workforce.

Seeing the success of the program, the municipalgovernment further supported other initiatives such asthe improvement of the Municipal Library and con-struction of a conference hall for the use of traineesand students. The GAD Program was institutionalizedby incorporating it in the Municipal Development Plan.This was further supported by the Sangguniang Bayanthrough the approval of the GAD Work Plan andBudget.

At present, most of the trainees are already engagedin the fields where they were trained. Some have alreadyestablished their welding shops and metal craft shops,battery charging shops, and small carinderias whileothers are either employed in the textile factory in anearby municipality, or working abroad.

According to the DSWD and local police in themunicipality, some women now go to their office toreport abuses committed against them or against theirchildren. Also noticed was the increasing number ofwomen in politics. The program opened not onlyopportunities for women to know their rights anddevelop their skills but also helped men to see theimportance of education for women.

Through a well-coordinated and culture-respon-sive GAD program, Maguindanao women were givena chance to become agents of development, not justbeneficiaries.

Women through Education and Skills Development

Department of Interior and Local Government (DILG), 2004, “Millennium Development Goals (MDG)-Related Documentation of Good Practices in Mindanao.”


• Strengthening LGU provision and manage-ment of MCH services

The 1991 Local Government Code decentral-ized many central government functions, makingthe LGU the primary provider of basic health careservices, including management and control ofmaternal and child health programs. However,without pre-existing capacity to fulfill their newrole, LGU-managed health care systems havebroken down, compromising many of the basicservices needed by the population.

To address this challenge, local governmentunits must be strengthened by improving(1) management systems for service delivery,(2) financing options for key community-basedhealth programs, and (3) enhancing perfor-mance indicators among service providers.Currently, there are some informed and activecommunity interest groups that motivate andassist local officials in finding solutions to thesystemic problems that have evolved (USAIDReport).

To ensure that LGUs maintain a greater focuson the need to strengthen health care managementin their localities, advocacy groups will have to beformed and trained on policy dialogue. Relatedly,there is also a need to enhance LGU capability andaccountability, both of which are prerequisites forlong-term sustainability of maternal and child healthprograms and other services.

The government is making headway in reduc-ing infant and child mortality rates. Infant mortal-ity rates in the past 10 years have shown adecreasing trend, from 34 deaths per 1,000 livebirths in 1993 to 29 deaths per 1,000 live births2003. The decline in infant and child mortalityrates is the result of programs and services forchildren such as the expanded program onimmunization (EPI), Vitamin A supplementationand improvement in case management. There hasalso been a steady decline in under-five mortality,from 54 deaths per 1,000 live births in 1993 to 40deaths per 1,000 live births 10 years later (NDHS,2003).

The 2002 Maternal and Child Health Survey,however, reported a decrease in the number ofchildren fully immunized before they turn a yearold. In 2002, 62 percent of all children aged 12-23months were fully immunized, a decrease ofalmost three percentage points from 65 percent in2000. The percentage of fully immunized childrenin the urban areas was higher (66 percent) thanthose in the rural areas (59 percent), a slightdecrease from the 2000 figures of 68 percent and63 percent, respectively. The seemingly decreas-ing trend in the number of immunized childrenwas attributed to: (a) inadequate outreachparticularly in hard-to-reach areas; and (b)shortages in vaccines in 2000-2001 due to un-timely deliveries brought about by changes in theprocurement system.

Aside from increasing population, poor envi-ronment, poor nutrition and poor education, oneof the largest factors responsible for the poorperformance of the Philippine health sector is thelow and ineffective public spending for health.Even though there have been increases in theDepartment of Health (DOH) and LGU budgets,these have been insufficient to offset inflationarypressure during the period. In addition, 60 percentof the DOH budget is used for subsidies to 50retained hospitals. Currently, about 48 percent oftotal health spending comes from out-of-pocket.The contribution of social insurance is a merefive percent.

Reduce children under-fivemortality rate by two-thirdsby 2015

Goal 4: Reducechild mortality

Status and trends

Challengesand prioritiesfor action

Target5


• Increasing the advocacy for the financingand delivery of under-five health services atthe local level

Both the government and the NGOs mustinvolve the public when giving feedback to LGUsregarding the need to improve health services.Active monitoring by civil society organizations canbe effective in raising important issues with LGUssuch as the equitable and sustained financing ofunder-five health programs. Domestic financingpolicies must be instituted to support serviceprovision. Illustrative activities include assistance inthe establishment of community-based healthcommittees and mechanisms to inform local chiefexecutives and LGU legislative bodies, and theSanggunian, on under-five health issues.

• Increasing the supply of affordable andfortified foods

The Food Fortification Law was passed in2000 with its Implementing Rules and Regulations.This provides an opportunity to greatly expand thenumber and quality of fortified foods in the market.National Government technical assistance to theLGUs should be directed toward enhancing thecontinuing efforts to enforce and promote thefortification of more products in the market, e.g.,salt, sugar, oil and flour, and making these fortifiedproducts widely available.

• Improving policy environment for financingand provision of services

Poor dissemination and weak enforcement ofimplementing rules and regulations both at thenational and local levels affected the delivery ofchild health interventions. An amendment of theexisting Milk Code is necessary to address prob-lems on breastfeeding. A technical working groupcomposed of representatives from the Department

of Health (DOH), Bureau of Food and Drugs(BFAD), and other concerned agencies are ontheir eighth revision of the Implementing Rules andRegulations (IRR) of the Milk Code. Strengthenedimplementation of the ASIN Law and the Room-ing-in and Breastfeeding Act including impositionof sanctions against major violators should also bedone. In addition to this, policy gaps within theseprograms need to be looked into. Some policyinitiatives that could be adopted may focus onpolicy measures that will (1) ensure long-termvaccine security, (2) improve service provision, and(3) ensure sustainable financing for information,services and products that will facilitate thedelivery of MCH services. The program emphasismay later shift to support development of mecha-nisms and tools to effectively implement thepolicies once these are established.

• Improving policy disseminationThe timely dissemination of policy is essential to

facilitate its implementation and maximize itsimpact. In this regard, efforts have been gearedtowards improving policy dissemination by consid-ering approaches that can be best used to reach allstakeholders, (e.g., policy forum and developmentof innovative modes of advocacy and information,education and communication campaigns).

• Developing perinatal and neonatalprograms

Infant deaths during the first week of life aremostly due to conditions originating in pregnancy orduring childbirth. These are results of inadequateand inappropriate care during pregnancy, childbirth,or the first critical hours after birth. After the firstweek, deaths are mostly due to infections acquiredafter birth, either at the health facility or at home.There is a need, therefore, to develop perinatal andneonatal programs to ensure the survival of infantsafter birth. Various departments dealing withmaternal, newborn and child health responsibilitiesshould be strengthened, and mechanisms forimproving coordination among their efforts shouldbe established.

• Advocating infant and young child feedingAdvocacy efforts for infant and young child

feeding including exclusive breastfeeding need tobe strengthened. Thus, reasons provided bymothers for non-breastfeeding and stopping frombreastfeeding as well as their knowledge, attitudesand practices regarding complementary feedingshould be considered as important inputs in plan-ning/formulating activities. Breastfeeding supportgroups present in the community should be able toprovide assistance and breastfeeding counseling topregnant and lactating mothers.


The government promotes maternal healththrough a two-pronged strategy that involvesproviding health services to pregnant women(safe motherhood) and providing family planningservices.

• Safe motherhoodThe basic premise of the Safe Motherhood

Initiative is that childbirth must not carry with it therisk of death or disability for the woman and herinfant. Deaths due to pregnancy and childbirth areboth high in developing countries; in the Philippines,most of the maternal and infant deaths could havebeen prevented.1

Given the premise, the following safe mother-hood strategies were instituted: (a) training;(b) information dissemination; (c) social mobiliza-tion; (d) community participation; (e) promotion ofgender sensitivity at all levels; (f) quality assuranceschemes; (g) MMR audit; (h) upgrading ofequipment for obstetric emergencies; and (i)making quality care accessible.

The DOH issued Administrative Order No. 79series of 2000 to promote Safe Motherhood and

Status and trends

Reduce maternal mortality rateby three-quarters by 2015(half by 2000, half by 2015)

Data from the 1993 and 1998 National Demo-graphic and Health Survey (NDHS) tend to show adeclining trend in the maternal mortality rate (MMR).The MMR dropped from 209 per 100,000 live birthsfor the period 1987- 1993 to 172 per 100,000 livebirths for 1991-1997. However, due to large samplingerrors associated with these estimates, it is difficult toconclude that the MMR has really declined. Further-more, the absence of no new official data makesthe assessment of maternal health doubly difficult.

In the absence of new data, related or proxyindicators were analyzed, namely, (a) maternalanemia; (b) births attended to by health professionals;(c) births delivered in a heath facility; (d) prenatal carecoverage; (e) postnatal care coverage (f) tetanustoxoid injections; and (g) iron tablet supplementation.

Maternal anemia in pregnant women decreasedfrom 50.7 percent in 1998 to 43.9 percent in 2003.The proportion of births attended to by healthprofessionals increased from 56 percent in 1998 to60 percent in 2003. Likewise, the percentage ofbirths delivered in a health facility increased from34 percent in 1998 to 38 percent in 2003. Prenatalcare coverage remained consistently high at 94.1percent in 2002 while postnatal care coveragewas 89 percent compared to 59 percent in 1998.The 89 percent postnatal care coverage exceededthe DOH target of 80 percent. The percentage ofthose injected with tetanus toxoid increased from68.5 in 1998 to 70.7 in 2003. Provision of iron tabletsupplements also continued to increase from 81.4percent in 2001 to 82.2 percent in 2002. All thesedevelopments support the assumption that theMMR is likely to have gone down. However, this isnot conclusive and therefore caution in its interpre-tation is still suggested.


1 Taken from the DOH Safe Motherhood Website

Goal 5: Improvematernal healthTarget

6


women’s health to ensure healthy newborns.In 2002, the government included a maternity

package among the outpatient service packages ofthe National Health Insurance program. Pregnantmothers could thus avail of outpatient consultationand diagnostic benefit package through accreditedrural health units (RHUs), health centers, privateclinics or authorized hospitals for prenatal andbaby care.

The Second Phase of the Women’s Health andSafe Motherhood Project is being implemented toprovide quality women’s health and safe mother-hood services as an important component of theLGUs’ health service package. Specifically, theproject ensures that structural, health-facility andhuman resource capacities necessary to deliverhealth services are installed and maintained atappropriate levels of the local health deliverysystem.

To enable the DOH’s Women’s Health andChild Protection Unit (WCPU) to respond to theneeds of women and children victims and survivorsof violence, a training of WCPU staff in DOHhospitals was conducted in 2002. In relation tothis, financial support amounting to PhP3 millionwas provided for the operations of three WCPUs.

To revitalize and renew public interest in SafeMotherhood, a nationwide campaign was launchedin 2002 with the participation of LGUs. The SafeMotherhood Technical Working Group was alsoreconstituted to set directions in program imple-mentation, starting with the finalization of a five-year strategic plan and development of protocolsfor birthing homes and lying-in clinics.

• Family planningThe DOH adopted four major principles

relating to Family Planning. These are: (a) respon-sible parenthood; (b) respect for life; (c) birthspacing; and (d) informed choice.

Responsible parenthood (RP). Responsibleparenthood is the will and ability to respond to theneeds and aspirations of the family. Couples arefree to decide on the timing and size of theirfamilies in pursuit of a better life. It is a sharedresponsibility between men and women to achievea desired number of children, their spacing and thetiming of their birth according to their own familyaspirations. Beyond RP is responsible parentingwhich is the proper upbringing and rearing of thechildren for a healthy and productive citizenry;

Respect for life. The 1987 Constitution protectsthe life of the unborn from the moment of concep-tion. Abortion is unacceptable as a method of FP.

Birth spacing. Three-year birth spacing withinthe context of RP is needed so that women couldrecover from pregnancy and improve their poten-tial to be more productive.

Informed choice. Couples and individuals willbe provided with all the information and serviceson the natural and artificial methods of FP to beable to make informed choice.

The Responsible Parenthood Movement waslaunched during the celebration of InternationalWomen’s Day/Women’s Health Day on March 8,2003. The President focused on the promotion ofNatural Family Planning emphasizing the BBBmethods: Birth Spacing through Billings or CervicalMucus methods; Basal body temperature; andBody signs or sympothermal method.

As a follow-up activity, the DOH launched theResponsible Parenthood Campaign in cooperationwith the Inner Wheel Club of the Philippines, Inc.District 381 and the City Government of Manila. Itwas attended by parents, government and LGUofficials, NGOs, partner agencies’ representatives,and about 10,000 couples. The ResponsibleParenthood Campaign seeks to enable families tomake informed choices on family planning.

Other noteworthy activities on the FamilyPlanning Program were: (a) mainstreaming ofNatural Family Planning Method which willenforce the policy of providing full information tocouples in their choice of FP methods. It will beimplemented with the development of a strategicplan for 2002-2006; (b) deployment of 640 volun-teer health workers in KALAHI areas of NCR forthe provision of FP services to the urban poor; (c)training of Barangay Health Workers (BHWs)from 250 municipalities on Community BasedManagement Information System (CBMIS) andFP provisions; (d) development, pretesting andproduction of framework and module for FertilityAwareness and Natural Family Planning; (e)participation of 16 CHDs and 23 DOH hospitals inthe national consultative and planning workshop onfamily planning; and (f) implementation of theDoor-to-Door Family Planning Campaign.

The main objective of the Door-to-Door FamilyPlanning Campaign is to identify the unmet needsfor family planning and to provide services when-ever and wherever needed. Department OrderNo. 2146 s. 2004, Creation of a DOH Task Forceand Inter-Agency Committees for Barangay toBarangay Door to Door FP Campaign was signedto ensure the successful implementation of thecampaign which will start nationwide in 2005.3

Other noteworthy local health endeavorsinclude the UNFPA-assisted Gattaran BirthingCenter Projects in Gattaran, Cagayan. In 1996, thisproject was honored by the Commission onPopulation (POPCOM) as one of the best prac-tices in Reproductive Health Care. Given thestrength of this model, focus should be placed onfacility-based birth policies.

3 Source: Population Commission


Zero Maternal Death in Gattaran, CagayanIn 1996, the “Babae, Ikaw Lamang, Wala Nang Iba” Project of Gattaran, Cagayan was recognized by the

Commission on Population as an emerging “best practice”. At that time, Gattaran, led by its dynamic and indefati-gable Municipal Health Officer (MHO), Dr. Nida Nolasco-Rosales, was already gaining a reputation for advancesin maternal health. From 1998 to 2004, UNFPA provided assistance to the municipality, mainly in terms of trainingfor service providers, medical equipment for the municipal hospital, and support for community-based initiatives.For the past five years, Gattaran has consistently maintained its zero maternal death rate. What is its secret?

Crucial to the project’s success were: (a) the establishment of birthing centers in the relatively far barangaysof the municipality which assured pregnant women of quality safe motherhood and family planning services; and(b) the installation of a highly functional and reliable referral system to the Municipal Hospital where the MHO,who is an experienced Ob-Gyne, was ready to provide the necessary medical response to complications. TheMHO trained the midwives, barangay health workers and traditional birth attendants in maternal health andfamily planning well and formed them into teams who regularly checked on the pregnant women ( PregnancyWatch) and provided 24 hour service in the birthing clinics. These teams hosted “Buntis Parties” to inform thepregnant women on how they should take care of themselves and their babies before, during and after deliveryand what to watch out for in terms of signs and symptoms of complications.

A major contributing factor was the local support from the barangay councils which had passed ordinancesrequiring pregnant women to give birth only in the birthing homes to ensure safe delivery. The barangay councilshad a system of providing ready transport support to the hospital for complicated cases. The barangay also paidfor the electricity and other utilities of the birthing center.

To make the delivery affordable, the MHO introduced an innovative system of prepaid perinatal services(PPS) where the woman saves for her delivery by paying a portion of the fees during the prenatal service. Half ofthe P1,000 fee pays for the medicines and medical supplies to be used by the client while the other half is sharedby the barangay (P250), the barangay health worker in attendance during delivery (P100), the birthing homecaretaker (P100) and the midwife (P50). This scheme made the birthing centers sustainable.

Community drugstores known as Botika sa Birthing made over-the-counter medicines and supplies readilyaccessible. Youth groups and male motivators have also been organized by Dr. Rosales to promote the dissemi-nation of correct reproductive health information and to advocate for responsible sexuality, gender equality andreproductive rights.

The dynamic leadership and innovativeness of the MHO, the full support of the municipal and barangayofficials, the dedication and commitment of the health workers, and the whole-hearted cooperation of all stake-holders all contributed to the zero maternal death rate of Gattaran.

Challenges and priorities for action• Improving data collection and data quality

The unavailability of timely and accurate informa-tion makes appropriate decision-making on thepromotion of maternal health difficult. There is asubstantial lag time between the gathering, publicationand dissemination of data on maternal health. More-over, some maternal deaths are not reflected as suchand are attributed to other causes. Thus, enhance-ment of data collection and quality has to be givenattention to enable decision-makers to developappropriate policies and programs to improve mater-nal health.

In relation to this, the National Statistics Office(NSO), being the primary data collection agency ofthe government, plans to enhance the civil registrationsystem to monitor the MDGs with focus on improvingthe system for generating MMR and under-fivemortality rate data. To do this, the NSO proposes toincrease the number of respondents for an MMRsurvey so as to collect more reliable results.

• Accelerating efforts to improve maternalhealth

While the maternal health situation is improving,the rate of progress is rather slow. This is due tothe limited resources for maternal health services.Fiscal constraints faced by the national governmentand the LGUs have affected the delivery of suchservices.

In order to sustain the benefits from theimplementation of maternal health services, it isnecessary to develop alternative and creativestrategies that would provide adequate funding. Itis also necessary that all stakeholders participate inthis effort since their contributions (which includesthe mobilization of communities and families,among others) ensure its success.

The improvement of Emergency ObstetricsCare (EMOC) services should also be stressedsince this is a very crucial program for saving thelives of our pregnant women.


• Brain drainThe exodus of our health workers, specifically

doctors and nurses, remains a perennial problem.According to POEA data, approximately 55,000nurses had already left the country from 1995 to2002. Also, every year 15,000 nurses leave forabroad. According to a UP study, 90 percent ofthe alumni of the UP College of Nursing while atleast 65 percent of doctors from the UP Collegeof Medicine are working abroad. The result is adepleted health care delivery system.

In general, there have been efforts to address

It is hard to assess whether or not the country ison target since there is no indicator system tomonitor accessibility to RH services notwithstandingthat there are 10 service components of RH. Inthe absence of RH indicators, the DOH recom-mended the use of proxy variables such as thenumber of antenatal check-ups (ANC), percentageof deliveries that are attended to by health profes-sionals, percentage of pregnant women receivingpost-partum check-ups (PPC), total fertility rate(TFR), contraceptive prevalence rate (CPR), andunmet need for FP, among others.

Based on the 2003 National Demographic andHealth Survey (NDHS), only seven out of 10 women,who had a live birth in the five years preceding thesurvey, received a minimum of four ANCs, of whichmore than half (53 percent) were performed duringthe first trimester. Almost 88 percent of all deliver-ies were attended to by health professionals andnearly 72 percent received PPCs in accordancewith the DOH recommendation that mothersreceive a PPC within two days after delivery.

The country has actually achieved a modestdecline in fertility. While the total wanted fertility ratein the country is 2.5 children per woman, the actualTFR for the period 2001-2003 was 3.5, a 0.2 declinefrom the TFR of 3.7 for the period 1996-1998(NDHS 2003). This is still one child more than thewanted fertility rate. In terms of regional fertilityrates, the gap between wanted and achieved fertilitywas larger in Bicol, Eastern Visayas and ZamboangaPeninsula, reaching almost two children.

The CPR slightly increased from 47 percent in1998 to 49 percent in 2003 (NDHS 2003). This isdue to the increase in the use of modern contracep-

tion from 28 percent in 1998 to 33 percent in 2003.On the other hand, the use of traditional methodsdecreased to 16 percent in 2003 from 18 percent in1998. Regional differences in the CPR were large,ranging from 19 percent of currently marriedwomen in ARMM to 59 percent in the DavaoRegion (Region XI). Prospects for improving CPRmight be uncertain in the next few years given therecent withdrawal of support for contraceptiveprocurement by traditional active donor agenciessuch as the United States Agency for InternationalDevelopment (USAID).

The unmet need for FP services of currentlymarried women in the country declined from 20percent in 1998 to 17 percent in 2003 (NDHS,2003). Most of this unmet need came from poorwomen than rich women (27 percent vis-à-vis 12percent). They are mostly located in Eastern Visayas(27.8 percent); ARMM (27.4 percent); Bicol (23.7percent); and Zamboanga Peninsula (21.7 percent)as shown in Figure 20.

Based on the 2000 Census, Filipino youth aged15-24 years old accounted for 15.1 million or 19percent of the total population of country. This is1.4 million more than the level in 1995. Thenumber is expected to double in 33 years.

Status and trends

Increase access to reproductivehealth (RH) services to 60 percentby 2005, 80 percent by 2010,and 100 percent by 2015

this concern but a lot more needs to be done.The retention of health professional graduatesremains a problem because the country is unableto match the economic opportunities offeredabroad. Thus, it is necessary to review thecompensation, incentives and benefits of healthworkers and work towards a more attractivecompensation package. Moreover, a nationalhealth human resource plan has to be formulatedand adopted to ensure that the country’s healthservices have an effective, well-motivated andappropriately-managed workforce.

Target7


FIGURE 20: Unmet Need for Family Planning

Low

Medium

Cagayan Valley13.7

Bicol23.7

Eastern Visayas27.8

Central Visayas16.6

Caraga17.5

SOCSARGEN17.4


ARMM27.4



Western Visayas19.5

MIMAROPA17.3

CALABARZON16.1

NCR14.6

Central Luzon15

Ilocos14.5

CAR18.5

Source: National Demographic and Health Survey 2003

High


educated women. Young women today generallywant smaller families.

Teenage pregnancies accounted for 17 percentof induced abortion cases. Teenagers who haveunprotected sex or unwanted pregnancies weremore likely to resort to abortion. The largestproportion (28 percent) of women who hadcomplications due to induced abortion belonged tothe 20-24 age group (Raymundo et al., 2001).Restricted access to contraceptive supplies andRH services as well as social pressure influencedthe relatively high rates of abortion among youngwomen (Cabigon, 2002).

As of May 2004, the HIV/AIDS registry of theNational Epidemiology Center (NEC) of DOHconfirmed 2,073 HIV/Ab seropositive cases, ofwhich four percent (40 cases) were aged below 19years old and almost 30 percent (620 cases)belonged to the 20 to 29-year-old age group.

Despite legal measures, violence againstwomen (VAW) still persists. In the first semesterof 2004, there were 3,516 VAW cases reported tothe police (NCRFW). Of these cases, 53 percentwere victims of physical injuries/wife battering and18 percent were victims of rape (incestuous andattempted rape). Region VII has the most numberof reported cases during the same period (22percent) while Region II has the least.

Data from DOH estimates that there are400,000 induced abortions occurring annually, mostlyamong married women between the ages 25 and 34who cannot afford to raise another child. Usually,abortion is resorted to after the fourth child. One infive abortions ends up in hospital because of compli-cations like excessive bleeding, vaginal infection andnervous breakdown. Abortion cases are one of thetop three causes of admission in public hospitals.

The profile of the Filipino youth published bythe National Statistics Office (NSO) in 2000revealed that the fertility rate of adolescents 15-24years old was 1.12 children per woman by the timeshe reached 25 years old. Adolescent fertility,particularly among those below 20 years old, is low.

Based on the 1994-2002 Young Adult Fertilityand Sexuality Survey (YAFSS), twice as manyfemales (about 70 percent) than males (about 35percent) reported having experienced any RHproblem and their levels have not changed muchover the period. RH problems among females wereless serious compared with males. However, asignificant increase in the levels of serious RHproblems was observed among females (19 percentin 1994 to 23 percent in 2002) which was attributedto the increasing proportion of females engaging insexual-risk behaviors and low level of contraceptiveuse. On the other hand, males had significantlyhigher levels of seriousRH problems thanfemales (23 percent vs.19 percent in 1994 and26 percent vs. 23 percentin 2002). However, itshould be noted that thelevels of serious RHproblems were increas-ing for both male andfemale.

Despite the presenceof significant numbers ofRH symptoms, healthutilization is low amongadolescents in thecountry. Only 19 percentand 21 percent of youngwomen and men,respectively, soughtmedical help for any RHproblem they encountered in 2002.

In 1994-2002, an increase in the percentage of15-24 years old who had experienced premaritalsex (18 percent in 1994 compared to 23 percent in2002) was observed. Indications also show thatabout 10 percent of girls with sex experience wereforced into sexual relations by their partners andthat many young people engaged in premarital sexwithout adequate knowledge on how to avoidpregnancy or STDs.

The number of teenagers who have begunchildbearing is increasing although still below 10percent of all women in the NDHS sample(Cabigon, 2002). Teenage childbearing is muchhigher among rural and low-educated females.Adolescent women today delay childbearing pasttheir teen years compared with the previousgeneration. The opposite is true among less


The Commission on Population (POPCOM)formulated the Philippine Population ManagementProgram (PPMP) 2001-2004, the PPMP StrategicOperational Plan (SOP) and PPMP PublicInvestment Program (PIP) 2002-2004 whichcalled on concerned national government agen-cies (NGAs) and other stakeholders to: (a) assistcouples in achieving their desired fertility goalsand prepare individuals to become responsibleparents with special focus on poor couples andadolescents with unmet needs for RH/FP infor-mation and services; (b) improve the RH ofindividuals and contribute to the reduction ofmaternal, infant and early child (under 5 years ofage) mortality; (c) reduce the incidence ofteenage pregnancy, incidence of early marriageand other RH problems; and (d) contribute topolicies that will help government achieve afavorable balance among population distribution,economic activities and the environment. It alsospearheaded the development of the InternationalConference on Population and Development(ICPD) country report. The report represents theachievements as well as the gaps and challenges,and the corresponding strategies of the countryvis-à-vis the commitments on the key actions ofthe ICPD Program of Action (PoA) in 1994.

The DOH formulated a 10-year RH Planwhich spelled out major RH strategies andactivities as well as the required budget from2001 to 2010. The plan estimated the commodityrequirements of the National FP Program basedon trends of contraceptive method use andpopulation program goals.

The DOH issued the following AdministrativeOrders (AOs) in support of the National FPProgram: (a) AO No. 79 series of 2000, specify-ing the Safe Motherhood Policy as mentionedunder Target 7; (b) AO No. 132 series of 2004,creating the DOH Natural FP Program and ItsProgram Management, which ensures the avail-ability of appropriate natural FP advocacy andservices to Filipinos of reproductive age whoprefer the method over the use of artificialmethods; and (c) AO No. 158 series of 2004,adopting the Guidelines on the Management ofDonated Commodities Under the ContraceptiveSelf-Reliance (CSR) Strategy. This focuses onthe formulation and implementation of criticalpolicies and plans, complementary actions andsupportive measures that are necessary to

prevent any possible disruption in the delivery ofFP services with the phase-out of donatedcontraceptives and to sustain continued increasein FP use for eventually eliminating the unmetneed for FP.

The DOH, in partnership with the UnitedNations Population Fund (UNFPA), embarked onan innovative strategy of organizing and mobilizingMuslim religious leaders (MRLs) in support ofRH activities in Autonomous Region in MuslimMindanao (ARMM), Regions IX, X and XI. ANational Fatwah among these organized MRLswas issued to formally declare Islam’s support forRH and FP. On January 2004, the Grand Mufti ofEgypt (highly recognized Islamic Leader by theFilipino Muslims) endorsed the Fatwah. Twomonths later on March 2004, an MRL Assemblywas held in Davao City to officially and publiclylaunch the Fatwah.

Likewise, the Philippine Legislators’Committee on Population and Development(PLCPD) organized the Interfaith Partnershipcomposed of various faith-based organizations,national and local legislators, civil society andgovernment representatives. This partnershippledged to prevent abortion, promote FP, work fora decent standard of living for all Filipinos,conduct adolescent sexuality education, andsupport the enactment of the RH Care andIntegrated POPDEV bills in Congress.

A major milestone in the promotion of RH inthe country over the past 10 years is in the areaof networking, partnership and alliance building.Twenty-three institutions representing RH servicedelivery organizations, women’s groups andadvocacy organizations have united to form theRH Advocacy Network (RHAN). The network isinstrumental in increasing the awareness of thepublic on RH and reproductive rights (RR).

In February 2000, the Philippine NGO Council(PNGOC) for Population, Health and Welfaresuccessfully hosted the 1st Asia-Pacific Confer-ence on RH in Manila. Some 1,300 delegatesfrom 37 countries attended the conference.Among the results of this conference was theformation of the Asia-Pacific Alliance for RH, anetwork of individuals and organizations in theAsia-Pacific region working in the field of RH.

In 2003, President Arroyo advocated theimplementation of the four pillars of the populationand FP policy, namely: (a) responsible parenthood(RP); (b) respect for life; (c) three-year birthspacing within the context of RP; and (d) in-formed choice as described under Target 6.

The natural FP methods were actively pro-moted at the national level. At the same time, theLGUs and the NGOs were encouraged to ensuredelivery of basic health services including the



promotion of all FP methods.The government has taken steps to create an

enabling environment to protect adolescents andthe youth’s sexual RH and rights. The DOHissued AO No. 34-A series of 2000 or the Adoles-cent and Youth Health Policy which institutional-ized a comprehensive program for the health ofadolescents and youth.

The Department of Education (DepEd) issuedMemorandum Order (MO) No. 132, series of1999 which ensures the continuous conduct ofschool teacher training on population education(POPED) and adolescent reproductive health(ARH). The National Youth Commission (NYC)formulated the 1999-2004 Philippine Medium-Term National Youth Development Plan(PMTNYDP) which provides a clear policy fordeveloping responsible RH behavior amongadolescents through an integrated and compre-hensive package of preventive and curative healthcare services at all levels of health care. POPCOM included an Adolescent Health andYouth Development Program (AHYDP) as oneof the major components of the PPMP-DP 2001-2004 which provides for scientific and policy-consistent information, knowledge, education andservices on population and RH for adolescentsand youth. The DSWD spearheads POPED forthe out-of-school youth (OSYs) through theirUnlad Kabataan Program, using new approachesto address the emerging needs of the OSYs andhelp them become more actively involved incommunity activities.

On the other hand, nongovernment organiza-tions (NGOs) also launched their respectiveprograms for adolescents and the youth. ThePhilippine NGO Support Program (PHANSuP)implemented the European Commission (EC)-supported Program on Accelerating Community-Based Responses to Reproductive and SexualHealth which aims to decrease the youth’svulnerability to STIs, HIV/AIDS and other RHproblems through peer education and counseling,participatory community-based education ap-proaches as well as provision of medical services.The Foundation for Adolescent Development(FAD) implemented the following: (a) SEXTERS,an out-of-classroom program to nurture socially,emotionally and sexually-responsible teenagers;(b) Teen Health Quarters Project which offersmedical services to the youth; and (c) TeenCenters which provide counseling to OSYs andin-school youths through innovative approachessuch as Dial-A-Friend, Friends On Line, and E-mail A Friend.

The country has also made significant gains toaddress the issue of violence against women(VAW) through the following legislations: (a) the

Anti-Sexual Harassment Act (RA 7877) whichdeclares sexual harassment unlawful in employ-ment, education and training institutions; (b) theSpecial Protection of Children Against ChildAbuse, Exploitation and Discrimination Act (RA7610 amended by RA 9231) which protectschildren against abuse, exploitation, discrimination,prostitution and trafficking; (c) the Anti-Rape Act(RA 8353) which classifies rape as a crimeagainst persons rather than a crime againstchastity; (d) Rape Victim Assistance and Protec-tion Act (RA 8505) which strengthens the govern-ment mechanism to respond to VAW through theestablishment of a women’s crisis center in everyprovince and municipality in the country; (e) Anti-Trafficking in Persons Act (RA 9208) whichinstitutes policies to eliminate trafficking inpersons especially women and children, estab-lishes the necessary institutional mechanisms forthe protection and support of trafficked personsand sets sanctions and penalties to traffickers, tothose who facilitate trafficking, and to those whobuy or engage the services of trafficked personsfor prostitution; and (f) Anti-Violence AgainstWomen and Children (VAWC) Act (RA 9262)which promotes the welfare of Filipino womenand children who have struggled against variousforms of violence and abuses.

The DOH issued AO No. 1-B series of 1998or the Establishment of Women and ChildrenProtection Unit in all DOH Hospitals. This unit inall DOH hospitals is intended for treatment andcare of victims/survivors of domestic violence,rape, incest, torture, sex trafficking, and otherabusive and exploitative acts. It also provided forthe development of a training manual on VAWC.

In 2001, the National Council on the Role ofFilipino Women (NCRFW) established a 15-member interagency VAW Coordinating Commit-tee (VAWCC) to formulate an integrated, system-atic and synergized approach to eliminate gender-based violence and review protocols and trainingdesigns for frontline workers. It drafted a nationalaction plan and developed performance standardsfor VAW interventions.

The DOH also issued AO No. 45-B series of2000 or the Prevention and Management ofAbortion and Its Complication (PMAC) Policywhich strengthens the capability of the country’shealth care system in PMAC and improves theaccessibility of quality post-abortion care servicesto all women of reproductive age in the country.The policy will provide comprehensive preventiveand medical health care services that include thefollowing three key elements: (a) prevention andtreatment of abortion and its complications; (b)counseling; and (c) linkages between PMAC andother RH services.


• Need for legislation on reproductive healthTo address the lack of a strong and consistent

population policy as well as to comply with thecountry’s commitment to international confer-ences such as the ICPD, the national governmentthrough the legislature should pass a law thatclearly states the policy with respect to fertilityand population growth reduction and possibleobjectives for the FP program.

Stakeholders should lobby for the formulationand legislation of specific policies on ARH suchas teaching of ARH education in all secondaryschools in both public and private schools; andestablishment of teen health quarters for counsel-ing and information services in all LGUs. ThePOPED Program needs to be broadened andstrengthened by molding values among youththrough the incorporation of the elements of ARHeducation, the life-planning approach, and thepeer counseling strategy.

• Establishment of a strong partnershipamong the various RH stakeholders

There is a need to establish a strong partner-ship among all stakeholders (NGAs, NGOs,LGUs, private and commercial sectors) in theformulation, implementation, and monitoring andevaluation of RH/FP strategies. Strategic alli-ances with stakeholders should be initiated andenhanced to overcome the continuing problem ofpolicy ambivalence.

The National Government and LGUs need toshow unequivocal support and political will topush for stronger population and RH programs.These programs must be among the priorityagenda of government at the national and locallevels.

It is strategic to link with community andreligious leaders as well as IPs to make RH/FPwidely acceptable and made part of the basichealth packages for the communities. Communi-ties empowered through information dissemina-tion and networking will enable individuals totake part actively in achieving RH goals andobjectives.

To expand the participation of the NGOs andthe private sector in the provision of RH/FPinformation and services, it is necessary to: (a)assess the operational drawbacks and limitationsof NGOs and private sector providers; (b) identifystrategic areas for NGO and private sectorinterventions; and (c) tap and mobilize commu-nity-based private associations (e.g., midwives

and other paramedical personnel).On ARH, there is a need to involve sectors

such as parents, teachers, and other youthorganizations. Moreover, NYC as oversightagency for all youth concerns should coordinatethe efforts of different agencies in the implemen-tation of youth programs as well as disseminatethese programs among the youth to create greaterimpact. The Sangguniang Kabataan (SK) andother youth organizations should be tapped in allstages of the program and project processes.

The VAWCC needs to be strengthened tofurther implement the comprehensive, coordinatedand multiagency approach to VAW to ensuretimely, responsive support for women victims.

• Anticipated shortage of FP commoditiesThe most serious challenge to the country’s

FP Program is the anticipated shortage in FPcommodities due to the withdrawal of the USAIDgrant to purchase contraceptives. Problemsrelated to accessibility and affordability of variouscontraceptives and other RH services by the poorwho are completely dependent on the freeservices and supplies provided by public healthfacilities are foreseen. In view of this, the CSRshould be implemented and monitored vigorously.Priority should be accorded to the study ofvarious alternatives for procuring contraceptives.The government should maximize available fundsfor the FP Program by improving resourcemanagement and mobilizing alternative sources ofsupport. Other donor agencies should be tappedfor funding assistance. A strong advocacy cam-paign using mass media should be conducted tohelp enhance the sustainability of the FP program.

• Expansion of the National Health InsuranceProgram

The government’s NHIP benefits packageshould be expanded to cover all RH servicesincluding other FP methods. Local governmentsat the municipal level should expand their healthservices to include comprehensive RH servicesparticularly FP. LGUs should be encouraged tocoordinate with NGOs and the private sector tocome up with area coverage schemes for payingand nonpaying clients to ensure that both publicand private resources are maximized and thatquality standards will not suffer. Likewise, theymust find alternatives for ensuring the availabil-ity and accessibility of a desired range ofcontraceptives.



• Data gaps on RHEfforts to address the data gaps on RH, e.g.

data on access to reproductive health services,should be fasttracked, as this significantly affectsthe responsiveness of policies to the real needs ofwomen and men. Health statistics must also beroutinely disaggregated by sex and other attributes.

There is a need for a reliable database on ARHthat will provide the basis for determining theservices available for program development,replication and referral. Researches should be

continuously undertaken to gain insights intoadolescent attitudes, values and behavior, espe-cially toward sexuality and RH.

Data gaps on VAW should be addressed. Thegovernment through the National StatisticalCoordination Board (NSCB), should coordinatewith NGOs and other research institutions towardsthe development of a more comprehensive and in-depth database on VAWC.

• Put in place culturally-sensitive, high quality,accessible and user-friendly services on RH

Capability building of workers in the primaryhealth facilities should be updated/upgraded,particularly on the new RH/FP approaches.

A more sustained gender sensitizing trainingshould be conducted for policemen, medicalprofessionals, social workers, health workers andbarangay officials involved in assisting survivors.Aside from the training, government agencies needto set up the necessary facilities and supportmechanisms/institutions such as family courts andgender-sensitive judges to attend to victims ofviolence and abuse.

The approach on VAW should likewise addressthe cyclical nature of violence and focus onreforming and rehabilitating the perpetrator.Preventive measures should also be part of thesolution. These could include a more aggressiveeducation campaign to inform women about theirrights, and how and where they can get supportincluding legal recourse and gender sensitivitytraining for women victims and the perpetratorsof VAW crimes.

Efforts to mainstream ARH must be pursuedby putting in place culturally- sensitive, high quality,accessible and user-friendly services. Moreover,these services must respect the right of adoles-cents and the youth to privacy, confidentiality andinformed consent. ARH care providers need to bespecially trained and oriented so that they arecompetent and sympathetic in relating with adoles-cents who seek RH-related preventive and cura-tive care services.

Youth programs dealing with ARH informationdissemination should tap interactive media such asthe Internet and the cell phone networks to reachmore adolescents and youth for their programs.

The media, being the new “surrogate parents”of young Filipinos by fast becoming their mainsource of information and guide to “what is right”and “what is wrong,” should be sensitized on youthissues and be involved in addressing ARH issues.

NGAs, NGOs and LGUs should continue toprovide adolescent and youth counseling services.Conscious effort should be made to ensure thatcounseling is included as one of the services foradolescents and youth.

Second Philippines Progress Report on84 Second Philippines Progress Report on84

Goal 6: Combat HIV/AIDS,malaria and other diseases

Status and trends

Halt and reverse the spreadof HIV/AIDS by 2015

Women 5.6 .8 .2 3.2 3.2 17.2 28.6

Men 4.4 1.1 .2 9.6 - - -

Female youth 7.7 .7 - - - - -

Male Youth 9.0 1.7 - - - - -

Chlamydia Neisseria Trichomonas Candida BacteriaTrachomatis Gonorrhea Syphillis Hepa B Vaginitis Albicansl Vaginosis

PopulationGroups

Source: Family Health International/Department of Health, 2002

Sexually Transmitted Infections

Table 10: Prevalence of STIs in General Population2002 RTI/STI Prevalence Survey In Selected Sites in the Philippines

pine National AIDS Council (PNAC) now de-scribes the epidemic to be “hidden and growing.”

In addition, the level of awareness variedacross the country. The 2003 National Demo-graphic and Health Survey (NDHS 2003) revealedthat men and women in some regions of thecountry were less likely to have heard about AIDS.Eighty-eight percent of women and 89 percent ofmen said there is a way to avoid the disease.However, in the Autonomous Region for MuslimMindanao (ARMM), only 67 percent of womenand 46 percent of men believe there is a way toavoid AIDS. Also, misconceptions about AIDS andHIV transmission remain. The NDHS 2003showed that only 36 percent of women and 30percent of men correctly rejected the two mostcommon misconceptions about AIDS (i.e., thatAIDS can be transmitted by mosquito bites andsharing food with a person who has AIDS).

Although there is almost universal awareness ofAIDS among the youth, a sizeable proportion ofthem have misconceptions. Around 27 percentbelieve AIDS is curable and 73 percent think thatthere is no chance of them getting AIDS in thefuture. Furthermore, the prevalence of premaritalsexual activity among the youth increased from 18percent in 1994 to 23 percent in 2002 (Young AdultFertility and Sexuality Survey, 2002). These findingsindicate the need for greater preventive efforts.

Based on the HIV/AIDS Registry of theNational Epidemiology Center, the cumulativenumber of HIV/Ab seropositive cases since 1984increased from 1,451 in 2000 to 2,200 in December2004. Philippine epidemiologists and expertsestimate that the actual number of HIV cases isaround 10,000. Despite the increasing number ofcases, the prevalence rate remains consistentlybelow one percent.

Of the total HIV/Ab seropositive cases, 676 hadAIDS and 263 of these had already died due toAIDS- related complications. Majority of the cases(1,472) belonged to the 20-39 years age group and63 percent (or 1,388) were males. Sexual inter-course is still the leading mode of transmission.Notably, 725 (or 33 percent) of the cases wereoverseas Filipino workers (OFWs). These OFWsinclude seafarers (36 percent), domestic helpers (17percent), employees (9 percent), health workers (7percent), and entertainers (6 percent).

It should be noted that despite the low preva-lence and the slow rate of increase in the numberof cases, the preconditions for a full-blown epi-demic are present. These preconditions include:low condom use, prevalence of sexually-transmit-ted infections (STIs), increasing rural-urbanmigration, relatively young sexually active popula-tion, and a thriving sex industry in selected areas.Based on the 2002 National HIV/AIDS SentinelSurveillance (NHSS) System Technical Report,consistent condom use among the high risk groups(sex workers) was low (30 percent). The Philip-

Target8


Generally, the policies and programs imple-mented in the country were in line with the RA8504 or the Philippine AIDS Prevention andControl Act of 1998, and the Third Medium-TermPlan (MTP III) on AIDS for the period 2000-2004.

Various prevention and control efforts wereundertaken by both government agencies and NGOs.Efforts to educate workers on HIV/AIDS werecontinuously done through the trade unions, employ-ers, the Occupational Safety and Health Center ofthe Department of Labor and Employment (OHSC-DOLE), and some NGOs. Trainings, lectures andeven counseling were conducted in several privateenterprises. Results of the survey conducted in 2003by the Employee Confederation of the Philippines(ECOP) on HIV/AIDS awareness and responseamong 64 member firms revealed that HIV programsin the workplace predominate among firms in themanufacturing sector (41.7 percent). However,much remains to be done in this regard given thelarge magnitude of workforce in the country.

To mainstream knowledge on HIV/AIDS,information was incorporated in the curricula of theeducation system through the School-based AIDSEducation Program (SAEP). The full adoption ofthe revised school-based AIDS education modulefor the new basic curriculum started in 2004. Interms of care and support, treatment and counselingservices for persons living with HIV/AIDS(PLWHAs) were provided by NGOs throughtraining sessions and workshops on home-basedhealth care programs. In 2003, hospital AIDS coreteams (HACT) were retrained and established invarious government hospitals. Clinical guidelines onthe management of HIV/AIDS in hospitals werelikewise developed. As a result of advocacy effortsof NGOs, the procurement of anti-retroviral (ARV)drugs became less expensive with the inclusion ofgeneric ARV drugs in the National Drugs Formulary.

Community-based strategies were also under-taken through capability-building for social workersand volunteers and publication of guidebooks (Careand Support Manual for Social Workers, “Gabay saHIV/AIDS Para Sa Mga Lider at Boluntaryo NgPamayanan”) in 2001-2003. Some NGOs createdcommunity-based support centers that provideprevention, care and support among PLWHAs andother modalities of treatment. As of 2002, therewere around 16 NGOs throughout the country thathave undertaken care and support activities. Inaddition, the Department of Social Welfare andDevelopment (DSWD) also mainstreamed HIV/AIDS topics in its programs namely: ERPAT(Empowerment and Re-Affirmation of Parental

Abilities Training) and the PES (Parent Effective-ness Service).

Surveillance activities were continued throughthe National HIV Sentinel Surveillance Systemconsisting of both the HIV Serological Surveillanceand Behavioral Sentinel Surveillance under thesupervision of the National Epidemiology Center ofthe DOH. NGOs and some LGUs continued toplay a major role in some of the surveillanceactivities. Parallel efforts were undertaken todevelop the capacity of the STD/AIDS CentralCooperative Laboratory (SACCL) and the Re-search Institute for Tropical Medicine (RITM) inconducting HIV testing.

In terms of accelerating local responses, localAIDS councils have been established in sitespreviously given foreign assistance. USAIDprovided assistance in the early 90s through theAIDS Surveillance Education Project (ASEP) in10 sites. In 2002, The Futures Group (TFG)assisted eight more LGUs to initiate their localresponses. Local HIV/AIDS policies were formu-lated in these sites, and some LGUs have evenallocated budgets for HIV/AIDS related programsand activities. In addition, the Philippine NationalAIDS Council (PNAC) was able to mobilize theGlobal Funds on HIV/AIDS to support 11addi-tional LGUs. It is envisioned that these sites willlikewise implement local HIV/AIDS policies andprograms. Activities at the local level were under-taken both by the local government and NGOs. Inaddition, LGUs, NGOs and civil society organiza-tions (CSO) in areas supported by the UNFPA 5thCountry Program moved to institutionalize localAIDS councils (LAC).

Currently being developed is the national HIV/AIDS monitoring system. The development andoperationalization of this monitoring system in-volved multi-sectoral participation. Furthermore,preparatory activities are being undertaken withregard to the formulation of the Fourth Medium-Term Plan for AIDS covering the period 2005-2010.

With the institutionalization of the PNAC byvirtue of RA 8504, interaction among variousinstitutions and individuals became regular. ThePNAC is composed of government agencies andselected NGOs. The PNAC meetings served asthe primary venue for sharing information anddiscussion of crucial issues. Subnational confer-ences among the NGOs and other stakeholderswere likewise held from 2000-2003. Moreover,annual national conferences are being held where“good practices” on HIV/AIDS prevention andtreatment are shared.

Priority policies and programs


Challenges and priorities for actionFor 2000-2003, an acceleration of local re-

sponse against HIV/AIDS has been observed.However, sustaining prevention activities andstrengthening multisectoral involvement remaincritical challenges. Although HIV/AIDS preva-lence remains below one percent, the threat of animpending epidemic remains given the increasingpatterns in high risk behaviors. In addition, thereexists a number of gaps in terms of assistancecoverage, scope and level of assistance beingprovided including the quality of the assistance oractivities being implemented. Current efforts inprevention and control should be sustained andfurther accelerated. In particular, the followingshould be given focus:

Scaling up and improving the quality of pre-ventive interventions targeted to identifiedhighly vulnerable groups• Intensify IEC efforts towards behavioralchange

Some groups (such as the youth, civil servants,informal sector) remain uninformed about HIV/AIDS prevention because of limited resources.Awareness levels may be high in some areas, butrecent surveys show correct information needs tobe further disseminated. Harmonization of the coremessages of these IECs should be improvedtowards influencing behavior change. An inventoryof existing IEC materials must be conducted toensure that effective ones are replicated in otherareas. These strategies can be effectively done if aclearinghouse for the IEC on STI/HIV/AIDS isestablished.• Addressing the growing needs of OverseasFilipino Workers (OFWs) for AIDS services

Information on HIV/AIDS are integrated intothe predeparture orientation seminar (PDOS, fordeparting OFWs) being conducted by the Over-seas Workers Welfare Administration (OWWA).There is a need to strengthen this effort andsupplement it with education materials that theycould bring onsite. Prevention services onsite,where vulnerabilities are great, should also beexplored. For OFWs infected with HIV, there is aneed to develop a functional system for reintegra-tion into the community.

Strengthening institutional and general publicpreventive interventions• Development of a unified advocacy plan

One of the major constraints in the nationalresponse to HIV/AIDS is the lack of a unifiedadvocacy plan that provides focus, effective

approaches, appropriate messages and monitoringindicators. The plan may incorporate capability-building assistance for those who are willing toimplement advocacy work.• Expanding voluntary counseling and testingservices

Voluntary counseling and testing services needstrengthening and more centers should provide suchservices especially in far-flung areas. The qualityof counseling in the conduct of HIV antibodytesting and improvement in HIV/AIDS casereporting should also be monitored and ensured.

Scaling up and improving the quality of treat-ment, care and support services for peopleinfected with and affected by HIV/AIDS• Scaling up treatment, care and support

Care and support mechanisms, such as afunctional referral chain, community and home-based care system, and HIV positive communitysupport group should be established and strength-ened to increase PLWHAs’ access to essentialHIV/AIDS care services. In addition, coverage oftreatment services such as ARV therapy should bemade accessible in other areas. Presently, onlyDOH retained hospitals and medical centers have


been trained to provide a minimum level of careand support services. To keep the prices of ARVdrugs affordable, plans to include ARV drugs in theparallel drug importation program of the DOH andthe Philippine International Trading Corporation(PITC) should be looked into. Establishing andstrengthening more operational, sensitive and non-discriminating HIV/AIDS core team (HACT)providing quality services to PLWHAs and af-fected families all over the country should be oneof the major actions in the coming years.

Integrate stigma-reduction measures in thepreventive, treatment, care and support servicesand in the design of management systems• Improving supportive nondiscriminatorypolicies, guidelines and systems

With the implementation of RA 8504 over theyears, it has become apparent that there is a needto review and amend policies, standards, protocolsand guidelines on STI/HIV/AIDS. More impor-tantly, there is a need to strengthen existing policiesto ensure compliance of nondiscrimination andavoid stigmatization.

Strengthening and institutionalization of man-agement systems in support of the delivery ofHIV/AIDS information and preventive services,treatment, care and support

• Guideline manualization and standardizationAlthough improvements can be observed with

regard to defining high-risk areas, scoping ofintervention options, and focusing interventions onvulnerable groups, these approaches should beharmonized and translated into a manual ofoperations to guide any stakeholder in undertakingHIV/AIDS prevention and control activities.Effective interventions must be properly docu-mented and disseminated for possible adoption inother areas.• Expanding collaboration with the privatesector including faith-based organizations

The private sector is being tapped only interms of initiating workplace programs on HIV/AIDS. Yet, only few private enterprises haveformulated workplace programs on HIV/AIDS.Given the meager resources of the government, itmay be high time to mobilize financial supportfrom the private sector in order to expand thecoverage of care and support services as well aspreventive activities. Expanding collaboration withprivate sector in particular as advocates andimplementers of the ILO Code of Practice onHIV/AIDS in the World of Work and integratingthis code into their workplace programs must bepursued.

Faith-based organizations have also providedcounseling, spiritual upliftment and care andsupport services to PLWHAs. However, theseneed to be more positively involved in otheraspects of HIV/AIDS prevention efforts.• Fasttrack the establishment of the moni-toring and evaluation system

The monitoring and evaluation system needsto be established to fasttrack efforts undertakenin relation to national response. The monitoringsystem should take into account the initiatives inthe field and the efforts of NGOs and otherstakeholders.• Expanding local response

High-risk zones have already been identified inthe country. These zones include: southern side ofLuzon (along the national highway from Batangasto Sorsogon); western side of Luzon (along thenational highway from Bulacan to Ilocos, centraland eastern Visayas covering Cebu, Bohol, Leyteand Samar islands), and southeastern side ofMindanao (covering SOCSARGEN and Davao).Notably, only a third of the identified high-riskzones have come up with local responses. Theselocal responses include: social preparation, IECactivities, formation of local AIDS councils, andother local HIV/AIDS policies. In addition,mechanisms to coordinate local responses have notbeen fully established. There is also a need toclarify coordinative linkages among stakeholders atthe local level with that of the local AIDS councils.


Status and trendsMalaria

Malaria is the 8th leading cause of morbidity inthe country. The malaria morbidity rate wasposted at 48 cases per 100,000 population in 2002representing a decline from the 1998 rate of 72cases per 100,000 population. The 2002 figure,however, was slightly higher than the 2001 data of45 cases per 100,000 population. Similarly, themortality rate due to malaria declined from 0.9deaths per 100,000 population in 1995 to 0.7 deathsper 100,000 population in 1997 and further declinedto 0.11 deaths per 100,000 population in 2002.

Malaria is endemic in 65 provinces in the countrybut data indicated that more than 90 percent of caseswere found only in 25 provinces. It is also in theseprovinces where 65 percent of the total deathsoccured. The deaths were traced to delayed consul-tations, irregular delivery or unavailability of neces-sary drugs for treatment of severe cases in theperipheral health services, and hospital-based physi-cians untrained on the proper management of severemalaria. It has also been observed that the threat ofdrug resistance poses a potential increase in thenumber of malaria cases in the underserved areas.

The geographical distribution of malaria casesbased on a ten-year average (1991-2001) is asfollows: Luzon - 46 percent; Visayas - 1 percentand Mindanao - 53 percent. In 2001, the top tenprovinces in terms of the number of cases were

Palawan, Tawi-tawi, Agusan del Sur, Sulu, Davaodel Sur, Isabela, Davao del Norte, CompostelaValley, Apayao and Cagayan.

TuberculosisTuberculosis (TB) remains a major public

health problem in the country. It was the sixthleading cause of death and morbidity in 2001.Data on notifiable diseases from the Field HealthService Information System (FHSIS) show that themortality rate due to TB has slightly declined from39 deaths per 100,000 population in 1995 to 38deaths per 100,000 population in 2001. The TBmorbidity rate likewise declined from 173 casesper 100,000 population in 1995 to 166 cases per100,000 population in 2000 and further declined to142 cases per 100,000 population in 2001.

With the adoption of the Directly ObservedTreatment Short Course (DOTS) Therapy for TBcontrol, a 100 percent coverage of the targetpopulation was reached. The case detection ratewas posted at 61 percent in 2003, representing anincrease from the 2000 figure of 27 percent. Thecure rate for TB improved from 74 percent in 2001to 78 percent in 2002. Latest figures (1997) indicatethat the prevalence of multidrug resistance caseswas less than 10 percent.

In 2002 and 2003, the regions with the mostnumber of TB cases were NCR, Central Luzon,Western Visayas, Bicol, Southern Tagalog andCentral Visayas. The regions with the least numberof cases were CAR and ARMM.

Halt and begin to reverse the incidence of malaria and other major diseasesby 2015

Target9


MalariaThe DOH continued to implement the Malaria

Control Program (MCP) in partnership with LGUs,NGOs and the communities at risk. The programaims to broaden and sustain the existing DOH-LGU- community partnership to empower thepopulation at risk, further enhance the delivery ofhealth services in malaria endemic areas in thecontext of ongoing health sector reform and ensuresustainable malaria control. Program implementa-tion was guided by the following principles: focuson the disadvantaged groups to help addressinequity; position MCP to improve its performance;ensure sustainability through community andmultisectoral involvement; and use of evidenced-based approaches. Specific strategies adoptedincluded the following: early diagnosis and effec-tive treatment; utilization of insecticide-treatedmosquito nets; immediate and effective responsesto malaria epidemics; distribution of IEC materials;and selective vector control in areas where it canbe afforded and sustained.

The upsurge of cases during the first semesterof 2002, particularly in the northern part of thecountry, compelled the use of combination treat-ment regimen. This gave rise to the approval of anew national policy on diagnosis and chemotherapyfor malaria using microscopy or rapid diagnostictests and combination treatment regimen in Augustof 2002. This policy calls for laboratory-confirmeddiagnosis and supervised treatment as well asensuring proper drug dispensing. It applies to allgovernment and private facilities nationwide. Thepolicy, however, remains to be implementednationwide pending the training of peripheral healthworkers and the procurement of new drugs anddiagnostics.

In terms of budgetary support, the MCP hasbeen successful in obtaining and coordinating donorfunding for malaria control activities in selectedproject sites from external sources such as theWorld Health Organization/ Rollback MalariaProgram (WHO/RBM); Australian Agency forInternational Development (AusAID); UnitedStates Agency for International Development(USAID); United States-Navy Medical ResearchUnit 2 (US-NAMRU2) and Global Fund for AIDS,TB and Malaria (GFATM). The Japan Interna-tional Cooperation Agency (JICA) also supportedmalaria activities in three endemic areas in 2001. Acorporate-LGU-DOH partnership has beenestablished in Palawan province but the corporatesupport ended in 2002. Except for the WHO/RBMand GFATM grant, funds are mainly for training

and capacity building. Budget support for drugs/diagnostics and insecticide purchase is lacking.

TuberculosisThe National Tuberculosis Control Program

(NTP) continued to promote the DOTS therapy asits main strategy for TB control. Many of theactivities were continuations of previous undertak-ings although some innovations allowed for a moredynamic program that is able to meet new de-mands. Major events/activities in the NTP duringthe period 2002-2004 include: installation of thePublic-Private Mix DOTS (PPMD) centers; TBsummit and the signing of the Comprehensive andUnified Policy for TB Control (CUP); initiation ofthe drug resistance survey which will be completedin 2005; introduction of the TB communicationpackage (TB network); and orientation/training ofregional trainors on the use of the fixed dosecombination anti-TB drugs. Several other activitiesto improve case finding and case holding were alsoinitiated, namely, hospital DOTS, quality assuranceand operational research on TB among childrenand TB in prisons. A GFATM-assisted NationalPrevalence Survey is being planned for 2007. ThePhilippine Coalition Against Tuberculosis(PHILCAT) remains a key partner in DOTSadvocacy and in the implementation of the PPMD.

The CUP for TB control, which covers theguidelines for the implementation of the NTP ingovernment agencies other than the DOH, wasformulated. It also includes policies that wouldformalize the involvement of the private sector,particularly private physicians, in TB control.Specifically, the CUP covers the following: Na-tional TB Program (core policy); guidelines for theimplementation of the NTP in government agen-cies; guidelines for the implementation of the NTPby private physicians and NGOs; revised TBpolicies of the Social Security System, GovernmentService Insurance System and the Employees’Compensation Commission and the new TB benefitpackage of the National Health Insurance Program.It is envisioned that the CUP will be fully imple-mented by the end of 2004. Meanwhile, thePresident issued Executive Order No. 187 enjoininggovernment agencies and private sector organiza-tions to work in partnership with regard to thedissemination and training on the CUP. TB preven-tion and control activities are funded from theregular budget of the government as well as fromexternal sources such as the Canadian InternationalDevelopment Agency (CIDA), GFATM, WHO,JICA, USAID, Medicos del Mundo, etc.



Significant strides have been achieved in thearea of malaria and tuberculosis prevention andcontrol, particularly in terms of giving priorityattention to underserved areas, training of frontlineworkers, and forging stronger coordination andpartnership with stakeholders. However, certainissues remain and lessons learned from programimplementation provide a strong basis for furtherimprovements in the design of more effectivepolicies and activities to address these diseases.

• Improving service provisionIn the provision of services, four challenges

remain: meeting the unmet requirements; address-ing the new requirements; improving the quality ofservices; and ensuring funds availability.

On unmet requirements, drugs and other logisticswhich are prerequisites for the strategies of both theMCP and the NTP are presently inadequate. Forinstance, the MCP is seriously constrained by theirregularity and/or inaccessibility of drug supply andother essential commodities such as bed nets andinsecticides. Diagnostic services are also not alwaysavailable, most especially in far-flung areas. It istherefore necessary to ensure the availability of theserequirements for the programs to meet their targets.

With regard to addressing the new requirements,the adoption of the PPMD in the NTP entailsadditional program activities, e.g., an installationpackage, clarifying the implementation and moni-toring set-up. Moreover, capacity-building shouldbe continued on the use of fixed drug combinationin TB treatment as well as the adoption of newtreatment policy for malaria. Diagnostic services aswell as improved systems for implementation ofnew policies should also be expanded. In addition,technical capacities to address drug resistancehave to be strengthened. Giving attention to drugresistance now will spare the NTP and the MCPfrom a potentially serious situation in the future.

Meanwhile, improving the quality of servicesentails upgrading the managerial and technicalcapacities of the health workers in both the publicand private sectors. It also involves upgradinglaboratory services and equipping other govern-ment health facilities to enable them to performneeded services and establish better networks.Improved and sustained quality service mostespecially in the public sector can be a motivatingfactor for patients to seek treatment and care, thuspreventing further disease transmission.

Addressing the unmet needs, the new require-ments and improving the quality of services call foradequate financial resources. At present, the

implementation of program activities is hamperedby budgetary constraints. For instance, in the MCP,funds for field operations are not sufficient to carryout vector control measures. As mentioned earlier,donor support is mainly for some operations andcapability-building activities but not for other programneeds. Similarly, in the NTP, expansion of activitiesunder the PPM would need additional funds. It istherefore necessary to review program budgetsand ensure that these are spent on priority areas.Focused-targeting has to be continued in the light oflow level of available resources. In addition, alterna-tive sources of financing as well as cost-efficientinterventions need to be identified and adopted.

• Strengthening program support servicesGiven the need for quality services, strengthen-

ing program support services such as monitoring/supervision and evaluation is imperative. The periodicreview of program activities and performance willenable program managers to redirect activities asnecessary. Lessons learned/good practices gainedcan be applied/replicated in areas where these areappropriate. In the NTP, stronger monitoring/supervision and evaluation is needed especially inthe low performing sites to help them achieve theirbenchmarks. A TB database for PPMD needs tobe developed and integrated into the currentrecording and reporting system. For the MCP,surveillance for monitoring treatment response/drugresistance needs to be set up. Prevalence surveysfor TB and malaria should be conducted regularly todetermine the real status of these diseases.

Meanwhile, advocacy to improve the healthseeking behavior of the population has to be under-taken to disseminate and heighten awareness on thekey initiatives of the NTP and the MCP. Moreover,it is also important to empower the communities tomanage and sustain program initiatives, e.g., theycan be mobilized to undertake community-basedsurveillance or the peer support groups can act asmotivators, advocates as well as treatment partners.

Finally, it is important that efforts be gearedtowards further strengthening public-private, NGO,and community partnerships to sustain initiativesand to generate and effectively manage theresources for the programs. Specifically, it isnecessary to increase private sector participation inthe implementation of the NTP. Moreover, PHICaccreditation of health facilities has to be improved,as this is critical to the access of its OPD packagein tuberculosis. In addition, strict enforcement ofthe CUP is imperative to sustain the gains andfurther improve NTP performance.



Status and trends

Implement national strategies for sustainable development by 2005,to reverse loss of environmental resources by 2015

Source: Forest Management Bureau (FMB)

Area Proportion toCategory Hectares Total (%)

Total Forest 7,168,400 100 Closed Forest 2,560,872 36 Broadleaved 2,448,864 Mixed 24,618 Coniferous 87,390 Open Forest 4,030,588 56 Broadleaved 3,847,284 Mixed 69,861 Coniferous 113,443 Mangrove 247,362 3 Plantation 329,578 5

TABLE 11: Forest Cover by Forest Type, 2003

One of the reasons for the widespread pov-erty in the country is the mismanagement of itsnatural resources. Latest environment indicatorsrate the various aspects of the country’s environ-mental sustainability as either poor or low. Over-all, the ability of the major ecosystems to provideand maintain a regular stream of economic goodsand ecological services has been significantlyconstrained by declining stocks and reducedcoverage and quality. Thus, there is an urgentneed to properly manage the country’s naturalresources and protect the environment to improvethe quality of life of the present as well as that ofthe future generations.

Forest resources and watershedsThe Philippine land area of about 30 million

hectares is classified into forest land and alienableand disposable (A&D) land. About 15,854,922hectares or 52.9 percent are classified as forestland while 14,145,078 hectares or 47.1 percentare A&D land.

The latest land/forest cover statistics weregenerated in early 2004 using satellite imagestaken in 2002 and 2003 through a joint undertak-ing of the Forest Management Bureau (FMB)and the National Mapping and Resource Informa-tion Authority (NAMRIA). The analysis wasdone using harmonized land/forest cover termsand definitions in accordance with internationalstandards.

Results of this undertaking show that the totalforest cover is about 7.2 million or 24 percent ofthe total area of the country. The new data is 11percent higher than the 1988 forest area of 6.5million hectares. Closed forests cover about 2.6million hectares while open forests cover about 4million hectares. Both closed and open forestsconsist of broadleaved, mixed and coniferousstands. Mangrove areas cover about 247,362hectares and plantations cover about 329,578hectares (Table 11).

The increase in forest cover, in both forest andA&D lands, can be generally attributed to theslowdown in commercial timber harvesting due tothe imposition of logging moratorium in several

provinces, log and lumber export bans and theimplementation of the National ForestationProgram (Forestry Sector Loan 1) in the late1980s. In addition, there was a shift in loggingfrom old-growth forests to residual forests in theearly 1990s. It was also during this period that thePhilippine Forestry Master Plan was formulatedand many timber license agreements (TLAs)started to expire and nonperformers were can-celled. Expired TLAs were not renewed inconsonance with the provision of the Constitution.Instead, the implementation of Integrated andSocialized Forest Management Agreements wasexpanded. This covered much of the areas ofexpired TLAs. In 1995, the Community-BasedForest Management strategy was adopted as thenational strategy for the management of forestlands, where many forest-based communitiesare now active stewards. It was also during thistime that the Forestry Sector Loan II Projectcommenced. These forest policy shifts andinitiatives and subsequent awareness by thepublic on Sustainable Forest Managementcontributed significantly to the increase in thecountry’s forest cover.

Annual average reforestation rate for 1996-2003 declined to about 37,000 hectares (Table 12).About 88 percent of reforestation in 2003 wasundertaken by government and about 12 percentby the nongovernment sector.

Target10

Goal 7: Ensure environmental sustainability


Source: DENR Annual Report

2003 15,087 13,195 87.5 1,892 12.5

2002 25,620 20,682 80.7 4,938 19.3

2001 31,440 26,524 84.4 4,916 15.6

2000 27,632 21,740 78.7 5,892 21.3

1999 42,165 31,183 74.0 10,982 26.0

1998 42,368 33,219 78.4 9,149 21.6

1997 66,236 49,301 74.4 16,935 25.6

1996 46,096 18,869 40.9 27,227 59.1

1995 65,233 21,841 33.5 43,392 66.5

1994 49,551 18,032 36.4 31,519 63.6

1993 19,211 6,347 33.0 12,864 67.0

1992 40,593 24,304 59.9 16,289 40.1

1991 93,039 73,602 79.1 19,437 20.9

1990 191,663 153,949 80.3 37,714 19.7

Annual 53,995Average

Year Total Government Percent Non-Government PercentSector

TABLE 12: Area Reforested, 1990-2003 (in hectares)

nowhere else in the world. About 78 percent ofamphibians, 68 percent of reptiles, 64 percent ofmammals, 44 percent of birds and flowering plantsare considered unique to the Philippines.

The species in the Philippines, however, arealso considered to be the most threatened in theworld. The International Union for the Conserva-tion of Nature (IUCN) has identified our country,together with Madagascar, as being the “hottest ofthe hotspots” or the most severely threatened ofthe megadiverse countries.

Biodiversity resources offer many economicopportunities such as ecotourism, sources of rawingredients for pharmaceutical and industrial products,and genetic materials for the development of cropsand animals for food and commerce. Biodiversityalso nourishes the forests and is largely responsiblefor forest regeneration. However, continued degra-dation of forests, wetlands and marine areas havecaused substantial biodiversity loss in the country.

Loss of biodiversity has primarily been causedby logging, clearing of forest cover for agricultureand settlements, hunting for food and wildlife trade,pollution of coastal waters and overextraction ofbiodiversity resources. About 50 national parks havediminished biological importance because of habitatand ecosystem degradation. About 50 percent ofthe 63 national parks lost their biological importancein 1992 due to various levels of degradation.

The country has 421 river basins/watersheds.Of these, most 18 are considered major riverbasins, among the important of which are the Agnoand Cagayan River Basins in Northern Luzon,Pampanga River Basin in Central Luzon, Ilog-Hilabangan and Panay River Basins in the Visayas,and the Agusan and Mindanao River Basins inMindanao.

At present, there are 125 proclaimed watershedforest reserves covering an aggregate area of1.50 million hectares. The National IrrigationAdministration has identified 140 critical water-sheds that provide water for agricultural, com-mercial and domestic use mainly in the lowlandareas. Thus, a massive reforestation programneeds to be implemented.

Biodiversity resourcesThe Philippines is recognized as one of the

17 megadiverse countries in the world, whichhold about 70 percent of the world’s totalbiodiversity in flora and fauna. There are over52,000 species in the country. Of these, 13,500are plants comprising five percent of the world’stotal flora.

While the country’s overall biodiversity hasbeen acknowledged globally, there is an evenhigher regard for the endemism of local species orspecies unique to the Philippines and can be found


Coastal and marine resourcesThe Philippines, coastal zone extends to an area

of about 11,000 sq. km. of land and 267,000 sq.km. of water. The coastal and marine ecosystemsare considered important sources of livelihood forabout 70 percent of the municipalities and make up80 percent of the country’s territory. These serveas rich sources of fish and aquatic products usedfor food, habitat for countless underwater wildlife,and natural areas for recreation, tourism andrelated activities. However, the productivity of thecoastal and marine ecosystems has been continu-ously threatened by overfishing, destructive fishingmethods, siltation and pollution, among others. It isestimated that only 5.0 percent of the country’scoral reefs are in excellent condition while man-groves have declined by as much as 57.0 percentin the last 23 years and seagrass losses have beenestimated at 30-50 percent over the last 50 years.The widespread loss of mangroves, living coralsand sea grass beds has severely eroded thecapacity of this particular ecosystem to supportlife. In addition, an increasing number of coastalcommunities and land have become more vulner-able to tidal surges and waves that are highlyassociated with the country’s seasonal typhoons.

Air qualityPollution remains a problem in Metro Manila and

major urban centers for the last two decades. In2004, data gathered from the eight new air qualitymonitoring stations in the Metro Manila airshed,which includes LGUs in NCR and parts of RegionsIII and IV, showed that ambient air quality is withinstandards in terms of nitrogen dioxide (NO2),carbon monoxide (CO), sulfur dioxide (SO2) andozone. On the level of total suspended particulates(TSP) in 2003, data gathered from the old monitor-ing stations nationwide showed that air quality wasnot within the standards, with the exception of thecities of Cavite and Davao. It is projected that thevolume of air pollutants (e.g., TSP, particulate matter(PM10), sulfur oxide (SO2), nitrogen oxide (NO2)will continue to increase due to greater industrialactivity, heavy traffic and the large number ofvehicles plying the streets, many of which aresmoke-belching public utility vehicles. In 1995,WHO reported that the increasing air pollutioncontributed to the high incidence of upper respira-tory tract diseases in major urban centers likeMetro Manila. Public utility drivers and pedestriansare especially vulnerable to said diseases.

Water resourcesDespite the high average rainfall, the Philip-

pines is estimated to have second to the lowest percapita freshwater in Asia as of 2000. The supply offreshwater is diminishing due to overextraction of

groundwater, water pollution, denuded forests andwatersheds and the lack of catchment basins and,occasionally, the El Nino phenomenon.

The issues besetting the water sector includedisparities in water supply coverage across regions,depletion of groundwater especially in MetroManila and Metro Cebu, lack of cost recovery oninvestments, institutional weaknesses and lowwillingness of consumers to pay. In addition,pollution of water sources such as rivers and lakesis evident in many parts of the country. About 462water bodies have already been classified by theDENR as of 2003. Of these, about 35 percentmeet the water classification of “Class C” orquality of water which can support life systems.About 16 rivers nationwide are considered biologi-

cally dead during the dry months. About half (48percent) of water pollutants are domestic wastewhile about a third (37 percent) are agriculturalwastes, and the remainder are industrial waste (15percent). Pollution of rivers, streams and lakescontaminate ground and surface waters, exposingthe population to environmentally-related diseases.Water pollution is decreasing the primary produc-tivity of many water bodies. Heavy loads ofinorganic pollutants in the water have made itincreasingly a threat to life. WHO cited a rise inmorbidity rate caused by gastrointestinal diseasesfrom 502 per 1000,000 population in 1982 to 5,151in 1996. Other types of water-borne diseases arealso expected to increase as water quality furtherdeteriorates.


Waste and toxic chemicalsSolid waste generation in Metro Manila is

estimated at 5,345 tons per day. This is expected todouble by 2010. Only about 65-75 percent of totalwaste generated in Metro Manila are collected andabout 13 percent are recycled. The 25-35 percentuncollected waste gets thrown anywhere, espe-cially in esteros and creeks, resulting to healthproblems and flooding.

Urbanization has inevitably increased the use ofchemicals which, in turn, resulted in increasedincidents particularly the release of ammonia andchlorine over the years. At present, about 45 percentof the total industries using chemicals such ascyanide, mercury, asbestos and ozones depletingsubstances (ODS) have been registered. For poly-chlorinated biphenils or PCBs (e.g., coolant or oil fortransformer), only 25 percent have been inventoried.

Based on a Japan International CooperationAgency (JICA) Study (2001), about 700 industrialestablishments in the Philippines generate about273,000 tons of hazardous waste annually. It wasfurther estimated that 5,000 potential hazardouswaste generators will produce about 2.41 milliontons of hazardous waste. Moreover, an AsianDevelopment Bank (ADB) study on hospitalwaste revealed that there are about 30,000 tons of

The adoption of Sustainable Forest Manage-ment pursuant to EO 318 provides a comprehen-sive framework for the sustainable managementand utilization of forest resources, strengtheningwatershed protection, protecting the country’sbiodiversity and preventing/mitigating landslidesand other ecological disasters.

Forest resources and watershedsIn compliance with the Revised Forestry Code

of the Philippines, the Watersheds Code and otherrelated forestry laws and regulations, the DENRcontinues to implement its forest managementprograms to improve forest cover; provide accessto impoverished groups for forestry-based liveli-hood activities; and improve governance withbetter information and plans. These efforts under-taken by DENR include: (a) preparation of anUpdated Master Plan for Forestry Development(MPFD); (b) provision of technical support to the

private sector and NGOs in theestablishment of industrial forestplantations through the IndustrialForest Management Agreement(IFMA) program and other forestplantations within private lands;(c) reforestation of denudedwatersheds and protection offorest resources from any form ofdestruction such as forest firesand illegal logging; (d) adoption ofCommunity-Based Forest Man-agement (CBFM) approach in therehabilitation of degraded forestlands through forest plantationestablishment and agroforestrydevelopment to benefit upland

dwellers and indigenous cultural communities; (e)delineation of permanent forest lines to addressforest conversion into other land uses and faketitling of forest lands; and (f) research and devel-opment on new technologies, packaging andtransfer of tested technologies.

Recent initiatives of DENR in forest andwatershed management include: (a) adoption ofthe Watershed Ecosystem Management approachin forestry planning, resource use allocation andprogram implementation; (b) implementation ofCommunity Livelihood Assistance Special Program(CLASP) which will serve as a center for facilitat-ing access of poor communities to technologies,


hospital waste generated yearly.At present, there is no integrated treatment facility

for hazardous waste in the country. However,there are about 95 small-to-medium-scale treatmentfacilities that treat hazardous waste (i.e., used oil,sludge). There are approximately 50,000 tons ofhazardous waste stored on or offsite due to lack ofproper treatment and landfill facilities. Otherhazardous waste are exported to other countries forrecovery and disposal (e.g. metal bearing sludge andused solvents) and treatment (e.g. PCB). However,this exportation entails additional costs to industrieswhich consequently affects their international com-petitiveness, especially locators in economic zones.


technical assistance and funding sources; (c)launching of timber corridors in Mindanao byestablishment of industrial tree plantation in120,000 hectares of denuded lands; (d) morevigorous campaigns against illegal logging anderring DENR officials; (e) survey of prioritywatersheds for rehabilitation and protection; (f)promotion of tissue culture and cloning of seedlingsfor massive reforestation and establishment of 16clonal nurseries nationwide for production oftimber species, ornamental and fruit-bearing trees;(g) conduct of characterization/profiling of water-sheds necessary in the preparation of watershedmanagement plans; (h) implementation of urbanforestry through planting of trees and ornamentalplants such as palms, bamboos, shrubs, vines andferns in urban areas; and (i) implementation of theproject Tanim Ko, Aalagaan Ko whereby inter-ested stakeholders, e.g. religious groups, academe,civic organizations, and NGOs, will adopt andundertake reforestation of denuded forest areas.

Biodiversity resourcesThe NIPAS Act (RA 7586) outlines the primary

policies for biodiversity resources management. Itprovides for the identification of protected areas,standardization of the planning process, recognitionof ancestral rights and institutionalization ofenvironmental impact assessment. Recently, theWildlife Act (RA 9147) was passed to regulate thecollection and trade of wildlife species. It laysdown the rules for the exportation/importation ofwildlife, bioprospecting and biosafety, commercialbreeding and propagation of wildlife among otherprovisions. DENR is also upscaling its efforts toimplement the NIPAS Act and continues toundertake a biodiversity conservation program thatfocuses on the protection and conservation ofbiological diversity and genetic resources throughthe National Biodiversity and Action Plan(NBSAP).

The National Caves and Cave ResourcesManagement and Protection Act (RA 9072) waspassed in 2001 to conserve, protect and managecaves and cave resources as part of the country’snatural wealth.

Coastal and marine resourcesThe Fisheries Code (RA 8550) and the Agricul-

ture and Fisheries Modernization Act (RA 8435)provide the major policies that guide the utilizationand conservation of coastal and marine resourcesin the country.

DENR adopts the integrated coastal areamanagement approach as a main response to thegrowing problems of coastal resources degrada-tion. This approach employs the participation ofcoastal communities and other stakeholders in

decision-making and involves resource inventoryand assessment, community organizing, mangroverehabilitation, coastal database development, andsustainable alternative livelihood projects. DENRprovides technical assistance in the conduct ofParticipatory Coastal Resource Assessment(PCRA) and in the preparation of MunicipalCoastal Environment Profile (MCEP). Recentinitiatives in Coastal Resources Management(CRM) also include the DENR working with DAfor the issuance of an order on the delineation ofmunicipal coastal boundaries consistent witharchipelagic principle espoused by the DAO 17.

The DA through the Bureau of Fisheries andAquatic Resources (BFAR) also implements theFisheries Resource Management Program(FRMP). FRMP counts the support of variousstakeholders in the fisheries sector to revitalize thethreatened resource base of the seas and imple-ment measures to address poverty in the coastalareas. At the moment, FRMP is one of the biggestand most comprehensive coastal resource manage-ment (CRM) projects in the country. FRMP’sconcerns and activities cover resource manage-ment, income diversification and capability buildingin 100 municipalities in 18 bays and gulfs all overthe country. It is primarily funded by the ADB andthe JBIC, with the counterpart funding comingfrom the Philippine government and executed byDA-BFAR and the participating LGUs.

Air qualityTo curb the increasing level of pollutants in the

atmosphere, the DENR acted to phase out lead ingasoline in 2000. The Clean Air Act was alsopassed in 1999. The Act, which provides for acomprehensive framework for the management ofair quality, mandates the reduction of sulfur contentin diesel fuel from 0.50 percent in mid-1999 to 0.20percent by December 2000 and 0.05 percent by2004. It also provides for the reduction of aromat-ics and benzene contents of gasoline from 45percent to 35 percent and from 4 percent to 2percent, respectively, by 2003.

Other programs being implemented by DENRare: (a) the antismoke belching program with thesupport of the Land Transportation Office (LTO)and Metro Manila Development Authority(MMDA); (b) Investment Program for the Phase-out of ODS; (c) Metro Manila Air Quality Im-provement Sector Development Program, whichaims to reduce air pollution from mobile andstationary sources and to strengthen ambient airquality monitoring in Metro Manila; (d) provision offinancial assistance to jeepney drivers for thepurchase of remanufactured engines with emissioncontrol devices in cooperation with the Federationof Jeepney Operators, Drivers Association of the


Philippines, Filipinas Engine Remanufacturing andReconditioning Corporation, and Petron; (e) estab-lishment of airsheds (areas with common weatheror meteorological conditions and sources of airpollution which affect the interchange and diffusionof pollution in the surrounding atmosphere) andformation of Governing Boards for each airshed; (f)the Smoke-Free EDSA Campaign involving road-side apprehension of smoke-belching vehicles; (g)Linis Hangin Program, which includes series ofawareness-raising activities as follows: BantayTsimneya, for industrial firms; Bantay Sunog-Basura, for households that burn their wastes;Smoke-Free Malls; Bantay Tambutso and BantayUsok for smoke-belching vehicles; and the givingout of the “First Metro Manila Public TransportAward”; (h) the continued promotion of cleaner fuelby reducing the aromatics and benzene content ofgasoline last January 1, 2003 and reducing the sulfurcontent in automotive diesel from 0.2 percent to 0.05percent (a 75 percent reduction) by volume ahead ofschedule in the Clean Air Act. Low sulfur dieselwas sold in stations in Metro Manila as early asSeptember 2003 (or four months ahead of themandated January 2004 schedule); (i) continuouscoordination with the DOE in promoting the use ofalternative cleaner fuels (bio-diesel, liquefiedpetroleum gas, compressed natural gas); and (j) fullenforcement of the ban on the use of incineratorsfor disposing hospital wastes ensures the ability ofhospitals to handle their hazardous waste by coordi-nating with the DOH and the Philippine HospitalAssociation (PHA).

Water resourcesEO 123 is the latest policy on water resources

management. It subsumes NWRB under thesupervision of DENR and provides for the formu-lation and implementation of an integrated waterresources development and management systemamong its other functions. Presidential Decree(PD) 1067, also known as the Water Code of thePhilippines, remains the most comprehensive guidein regulating water resources utilization andmanagement. The Code is a consolidation of lawsand regulations relating to the development,utilization, exploitation and conservation of water.A law declaring a national policy favoring localoperation and control of water systems, theProvincial Water Utilities Act and Local WaterDistrict Law (PD 198), authorizes the formationof Local Water Districts to provide for and managethe water needs of local districts.

Government initiatives to improve the planningand development of water resources include thefollowing:

a. Creation of a Presidential Task Force onWater Resources Development and Management

(PTFWRDM) under the DENR in October 1996to serve as an oversight body for ensuring theefficient sourcing and use of water resources. Itsresponsibilities include: water supply planning,coordination and efficient allocation of waterresources to its different users; prioritization ofprograms and projects; coordination of waterpolicies and programs; and pricing on waterresources; and

b. Preparation of the National Strategy andAction Plan for the Water Supply and SanitationSector. The plan envisions putting in place asustainable water sector management that providesaffordable water supply for various uses at theoptimum quality and affordable waste watertreatment and disposal for the present and futuregenerations.

To improve water quality, DENR also con-ducted the following undertakings:

a. Facilitated the issuance of the Clean WaterAct (RA 9275) which provides a comprehensivewater management program to protect thecountry’s water bodies from land-based sources ofpollution such as industries, mining, agriculturaloperations, as well as community or householdactivities.

b. Implementation of the following activities:Beach Ecowatch in which 57 major beaches arebeing monitored for water quality; Tapwatch, a


project that is aimed at ensuring use of potablewater in depressed areas; the continued classifica-tion of water bodies to cover the remaining 202unclassified principal rivers.

Waste and toxic chemicalsThe basic policy for solid waste management is

contained in the Ecological Solid Waste Manage-ment Act (RA 9003 of 2001) which provides forwaste reduction, recycling and proper disposal andtreatment. The management of toxic chemicalsand hazardous waste is governed by RA 6969,otherwise known as the Toxic Substances andHazardous and Nuclear Waste Act of 1990, whichprovides for the proper handling, transport, treat-ment and disposal of toxic chemicals and hazard-ous waste.

For management of solid waste, a number ofprograms are being implemented by DENR incollaboration with MMDA, LGUs, and NGOsto remedy the worsening garbage situation inmany cities throughout the country. Theseinclude:

a. Closure of dumpsites in Meycauayan,Bulacan and in Dasmarinas, Cavite. Opendumpsites which expose communities to the healthhazards of wastes were ordered closed by DENRin accordance with the provisions of existingenvironmental laws. Closure of eight open andillegal dumpsites in Makati City, Caloocan city,Valenzuela city and in the provinces of Bulacan,Cavite and Rizal was also undertaken;

b. Solid Waste Management Program launchedby NGOs. Several groups of NGOs are helping thegovernment by undertaking their own initiativesand projects in educating the public and advocatingto them the segregation, reuse and recycling ofhousehold wastes;

c. Implementation of the Ecological SolidWaste Management (ESWM) System in 48 pilotLGUs. These LGUs have different compostingactivities such as household, market, centralizedmunicipal composting, some of which are usuallylocated within the Materials Recovery Facilities(MRF);

d. Designation of 213 ESWM Coordinatorsnationwide to put ecowaste management in placein all DENR offices nationwide and to assist otherstakeholders;

e. Provision of technical assistance in theconversion of open dumpsites to controlled ones(e.g., rehabilitation and conversion of Payatasdumpsite into controlled dump, with resourcerecovery facilities such as gas recovery andorganic waste composting); and

f. Nationwide Search for Model Barangays forESWM System. This search is one way ofencouraging the 42,000 barangays all over the

country to implement RA 9003 or the EcologicalSolid Waste Management Act of 2000.

With regards to management of hazardouswaste and toxic chemicals, the following are beingundertaken by DENR:

a. Completion of a Master Plan on HazardousWaste Management in the Philippines. Withfunding support from JICA, the DENR-EMB iscompleting a Master Plan to properly register,monitor and regulate the use of toxic and hazard-ous substances in the country. The plan also laysout the various acceptable methods/technology forthe treatment and disposal of toxic and hazardouswastes;

b. ODS import regulation, consistent with theMontreal protocol. For 2003, CFC importationdropped to 1,422 metric tons from 1,632 in 2002.Based on importation clearance issued, totalimportation for 2004 is only 67.5 percent of theallowable quota; and

c. Issuance of guidelines for proper utilization,disposal and storage of polychlorinated biphenyls(PCB), including clean-up activities of PCB-contaminated sites.

Other DENR initiatives to safeguard the qualityof environment in the country include:

a. Establishment of partnerships with industriesin environmental management and cleaner produc-tion. In line with this, DENR issued AdministrativeOrder No. 2003-14 or the Philippine EnvironmentalPartnership Program (PEPP) to support industryself-regulation and achieve superior environmentalperformance and global competitiveness throughadoption of environmental management systems(EMS) and cleaner production practices. To date,14 industry sub-sectors have signed the Environ-mental Consent Agreement (ECONA) throughwhich the industry members commit to adoptsound environmental management through self-monitoring and self-regulation;

b. Streamlining of the Environmental ImpactStatement (EIS) System by further reducing thethe processing time of the Certificate of Non-Coverage or CNC (from 15 to seven days) and theEnvironmental Compliance Certificates or ECC forProjects Requiring IEE Checklist (from 30 to 15days); and

c. Use of market-based instruments (MBI),proper pricing of natural resources and otherincentive/disincentive mechanisms to address airand water pollution. In line with this, DENR issuedAdministrative Order No. 2002-16 or the NationalEnvironmental Users’ Fee and its IRR, wherethose discharging wastewater into any receivingwater body will have to pay for the cost of thedamage and rehabilitation. DENR also started thePhilippine Eco-labelling Program and the IndustrialEcowatch System.


Barangay Upo is located at the western part of the munici-pality of Maitum. It has a land area of 2,430 hectares repre-senting 7.49 percent of Maitum’s area. A total of 650 hectaresare within the alienable and disposable land area and 1,780hectares are part of the forestland of the municipality. Approxi-mately 30 percent of the 1,780 hectares forestland is denudeddue to the illegal cutting of trees; as a result, flash floods and soilerosion are among the major concerns of the local govern-ment.

Barangay Upo in the 1970s to 1998 was known to be anMILF-infiltrated area, classified as one of the poorest barangaysunder the SRA-MBN survey results in 1998. Constituents re-lied on forest and agriculture produce as source of livelihood withan average income of PhP2,000.00/month per household which

is far below the poverty threshold level of PhP6,500.00. Noeconomic activity could be observed in the barangay becauseof the unstable peace and order situation.

To prevent further deterioration of the area and to securethe lives and properties of the village people, the LamlunayResearch and Learning Center (LRLC) was put up in 1999.The 108 hectare-LRLC is an integrated LGU-led developmentproject owned by Barangay Upo, the Municipality of Maitum,and the Province of Saranggani. The 97-hectare forestlandserves as the resource center for endemic forest trees andwildlife sanctuary, while 11 hectares serve as demonstrationcenter for farming systems and technologies for crops, live-stock and inland fishery. Designed to be self-liquidating, thedemonstration farm is a site for studies, tourism and for rev-

The Lamlunay Research and Learning Center: BringingHope to Barangay Upo, Maitum, Saranggani Province

On the medium term (2004-2010), the Environ-ment and Natural Resources Sector will pursue thefollowing five major thrusts, consistent with the 10-Point Agenda of the present administration:

• Sustainable and more productive utilizationof natural resources

The government has undertaken initiatives toimprove the status of the environment throughstrict compliance with and implementation ofpolicies and programs that would ensure propermanagement and protection of the country’snatural resources. However, despite these efforts,the Philippines still rated poor in terms of sustainingand managing its natural wealth. Thus, to ensureenvironmental sustainability and maximization ofthe use of natural resources, the areas for actionare as follows: (a) maximize physical planning as adevelopment tool for greater and sustained jobcreation; (b) create a climate conducive to invest-ments and production; (c) opening up of moreforestlands that are denuded or no longer suitablefor protection forest for development; (d) promoteinvestments in permanent production forest areas;(e) initiate the development and sustainable utiliza-tion of biodiversity resources (e.g., promote theestablishment of 15 wildlife farms and zoos); and(f) clearly delineate areas for protection, explorationand utilization through the survey and mapping ofmaritime zones starting in 2005 with particular

emphasis on expediting the delineation of municipalwaters in coastal areas with offshore islands.

• Focus and strengthen the protection ofvulnerable and ecologically fragile areas

Considering that the country is home to manydistinct species of flora and fauna, the governmentemphasizes the need to protect them and theirenvironment to prevent extinction. The following arethe areas for action: (a) rehabilitate and strengthenprotection of critical watersheds; (b) expand cover-age and strengthen protection of coastal and marineecosystem; (c) delineate 6.336 million hectaresnationwide for protection; and (d) develop protectedareas into viable management areas.



enue generation while it facilitates delivery of agricultural andenvironmental services to the residents and neighboringbarangays and municipalities.

Major benefits and impact of the project include the fol-lowing: (a) the denuded area of the forestland is now coveredwith second growth forest; (b) the project gave hope andbrought back the residents of Barangay Upo to the area dueto the stable peace and order situation; (c) illegal cutting oftrees has been reduced; (d) the practice of Sloping Agricul-tural Land Technology (SALT) improved their farming sys-tem and poultry and livestock raising; and (e) there is aconsistent pouring in of visitors from other LGUs, media,NGOs, and institutions for study tour to LRLC.

The project contributes to the attainment of MillenniumDevelopment Goal (MDG) 7 - Ensure EnvironmentalSustainability. Long-term benefits would address MDG Goal1 which is to eradicate extreme poverty and hunger.

• Create healthierenvironment for thepopulation

The environmentplays a vital role in theimprovement of thewellbeing of the peopleparticularly the poor.Living in a healthyenvironment will mini-mize the occurrence ofdiseases brought aboutby pollution, wastes andtoxic chemicals. Thus,the government stressesthe following areas foraction: (a) improve airquality in major urbancenters and reduce airpollution (total suspendedparticulates or TSP) inMetro Manila by 90percent to bring airquality within acceptable

standards and sustain standard TSP level (90 ug/Ncm) in other urban centers; (b) adopt the Inte-grated Water Resources Management Approachwhich involves the coordinated development andmanagement of water, land and related resourceswithin the hydrological boundaries, to optimizeeconomic and social welfare without compromisingthe sustainability of vital ecosystems; (c) providepotable water for the entire country by 2010;(d) ensure clean water resources for the entirecountry by fully implementing the Ecological SolidWaste Management Act and the Clean Water Act;(e) improve management of solid waste especiallyin Metro Manila by fully implementing the RA9003; (f) on a sustained basis, clean and rehabili-

tate esteros, especially in eight major esteros inMetro Manila and 32 prioritized esteros in otherurban centers that contribute significantly toflooding; (g) establish management system andfacilities for toxic and hazardous wastes; and(h) totally phase out ODS consumption nationwide.

• Mitigate the occurrence of natural disastersto prevent the loss of lives and properties

The country has recently been hit by naturalcalamities (e.g. landslide, flood, typhoon) whichresulted in the loss of many lives and destruction ofproperties. Major environmental disasters in thePhilippines include the Ormoc and Antipolo land-slides and the recent flooding in Aurora and Quezonprovinces. Some of the disasters have been attrib-uted to the degradation of forests and poor mainte-nance of floodways, esteros, and drainage systems.In order to help reduce the impact of naturaldisasters and to equip the people with knowledge ondisaster preparedness and management, the follow-ing are the priority areas for action: (a) complete thegeohazard mapping of the remaining 13 regions; (b)conduct soil stability measures (e.g., reforestationand planting in river banks) for landslide-vulnerableareas; (c) implement disaster risk management plan,establish warning systems and conduct capacitybuilding activities; (d) ensure integration of disasterpreparedness and management strategy into thedevelopment planning process at all levels ofgovernance through periodic risk assessments,updating of respective land use policy based on theassessment, conduct of disaster managementorientation/training among LGU officials andconcerned local bodies, institutionalization of com-munity-based mechanisms for disaster management(e.g. inclusion of legitimate disaster managementorganizations in various Disaster CoordinatingCouncils), and advocating for the bill on Strengthen-ing the Philippine Disaster Management Capability;(e) keep at the optimum the conveyance capacitiesof existing river channel floodways, drainage canals,esteros through riverbank protection, dredging/desilting, observance of river easements, relocationof informal settlers, proper disposal of garbage, andefficient maintenance in coordination with LGUs;and (f) provide adequate flood control and drainagefacilities in all flood/sediment disaster prone areas tomitigate flooding as well as rehabilitate and improveexisting facilities.

• Ensure environmental accountability for allindustries

There is also a need to ensure that all resource-based industries (e.g. mining, logging, paper) in thecountry will strictly observe environmental account-ability and will adhere to the principle of sustainabledevelopment in all their business operations.


Household access to safe water supply has asmall percentage increase from 78.69 percent in2000 (Census, NSO) to 80 percent in 2002 [AnnualPoverty Indicators Survey (APIS) of the NationalStatistics Office (NSO)]. On basic sanitation,households with sanitary toilet facility8 also in-creased from 81.97 percent in 2000 (Census,NSO) to 86 percent in 2002 (APIS, NSO). Giventhe rate of increase from 2000-2002, it is likely thatthe 87 percent access goal can be met by 2015.The Medium-Term Philippine Development Plan(MTPDP) 2004-2010 has actually set a target of92-96 percent for safe drinking water and 86-91percent for access to sanitary toilet facility, goalswhich are higher than the 2015 MDG target.

According to the 2002 APIS of the NSO, eightout of 10 families (80 percent) have access toclean and safe water.9 The Autonomous Region inMuslim Mindanao (ARMM) is the most disadvan-taged region in terms of having access to clean andsafe water. Only one-third of the families in ARMMuse water coming from community water systemsor tubed/piped wells. In contrast, 96 percent offamilies in Central Luzon obtain water from thesesources. With regard to basic sanitation, thepercentage of households with sanitary toilets was86.1 percent. Among the regions, NCR had the

highest proportion of families with sanitary toilets(98 percent), while ARMM remained to have theleast, at 44.7 percent. This shows that there is stilla wide disparity across regions. Decline in watersupply and sanitation coverage (between urban andrural areas) is largely due to the rapid increase indemand. The Philippine population grows at anannual rate of 2.34 percent, or 1.8 million more tobe served each year. Thus, efforts shall be focusedon “waterless”10 areas.

Safe drinking water is essential for health andsanitation. The Final Results of the 2003 NationalDemographic Health Survey (NDHS) also con-ducted by NSO indicated that two out of fivehouseholds (40 percent) have piped water intodwelling/yard/plot as their main source of drinkingwater. The main source of drinking water in ruralareas is protected wells (35 percent), while inurban areas is piped water (56 percent). Themajority of the households live within 15 minutesfrom the source of water (87 percent). On the useof private flush toilet, two in three households usethis type of sanitation facility. It is common inurban areas than in rural areas (77 and 54 percent,respectively). Furthermore, 15 percent of house-holds in rural areas have no toilet facility, comparedwith only 4 percent in urban areas.

Water is distributed by the Metropolitan Water-works and Sewerage System (MWSS) through thetwo water concessionaires in Metro Manila, thewater districts, the water associations, the localgovernment units (LGUs), the cooperatives, andthe private sector and bulk water suppliers. Thereach of these systems, however, are limited andover two million households still do not have accessto water that is clean and affordable.

Status and trends

8 Sanitary toilet facility refers to water sealed and closed pit type of toilet facility.9 Considered clean and safe sources of water supply in the APIS report are own-use faucet, shared faucet, own-use tubed/piped well and shared tubed/piped well.10 “Waterless” is defined as “areas/municipalities with less than 50% water supply coverage.

Halve the proportion of people withno access to safe drinking waterand basic sanitation, or those whocannot afford it, by 2015

Target11


Over the years, the government has imple-mented projects and programs that address priorityissues related to: (a) water supply, sewerage andsanitation; (b) irrigation; (c) flood and drainagemanagement; and (d) hydropower. However, thelaws on regulation and protection of water re-sources have been poorly enforced resulting insevere deterioration of water quality and exploita-tion of groundwater resources. Thus, the Inte-grated Water Resources Management (IWRM)approach was adopted. This approach involves thecoordinated development and management ofwater, land and related resources within hydrologi-cal boundaries to optimize economic and socialwelfare without compromising the sustainability ofvital ecosystems.

The general strategy in the MTPDP 2004-2010is to identify Water Resources Regional Councils(WRRCs)/River Basin Organizations (RBOs)while strengthening existing RBOs to promotedevolution of decision-making processes to thelowest appropriate levels capable of handling suchtasks, normally to local governments and commu-nity-based institutions. Water assessment shall alsobe conducted in terms of availability and demandfor prioritized water constraint areas as identifiedin the 1998 Master Plan Study on Water Re-sources Management in the Philippines (NationalWater Resources Board).

Related developments were the signing into lawof the Philippine Clean Water Act of 2004 (RA9275) by the President during the National WaterForum in celebration of the World Water Day lastMarch 22, 2004. The Philippine Clean Water Actof 2004 mandates the DENR to implement acomprehensive quality management program toguarantee effective water utilization and conserva-tion. It aims to protect the country’s water bodiesfrom pollution from all sources (industries andcommercial establishments, agriculture and com-munity and household activities). Moreover, itprovides for a comprehensive and integratedstrategy to prevent and minimize pollution througha multisectoral and participatory approach involvingall stakeholders.

Further, EO 123, [Reconstituting the NationalWater Resources Board (NWRB)] shall beimplemented. The NWRB will continue to formu-late an organizational structure to effectively andefficiently carry out its mandate including eco-nomic and resource regulation. Through EO 123,NWRB shall act as the independent economicregulator for the water sector. Hence, increase inprivate-sector participation and investment for

water resources is expected.EO 279 instituted reforms in the financing

policies in the Water Supply and Sewerage Sectorand for the water service providers (WSPs). Thereforms include a graduation policy for WaterDistricts (WDs) and other WSPs to the privatecapital market over time and include providingincentives for self-sufficiency in utility operations,amalgamation, greater accountability of serviceproviders to consumers and pooling of resourcesbetween and among LGUs and WSPs to facilitateaccess to financial institutions. These reforms areexpected to accelerate access to potable watersupply.

The National Anti-Poverty Commission(NAPC) has been tasked by the President tospearhead the government’s plan to providepotable water to waterless communities. TheOffice of the Water and Power Czar (OWAPC)under the Water and Sanitation CoordinatingOffice (WASCO) of NAPC shall be empoweredto muster all resources to attain the goal, overseeimplementation of targets, and spearhead resourcemobilization.



• Focusing on waterless areasIt is expected that potable water will be provided

to the entire country by 2010, with priority given toat least 212 “waterless” areas in Metro Manila and633 “waterless” municipalities outside MetroManila through private-sector or public investment.The 633 municipalities include those which areclassified under peace areas. To achieve thepriority target, it is estimated that PhP2.87 billionand PhP4 billion are needed for the waterlessareas and municipalities, respectively.

Considering that the provision of potable wateris a priority, government financing should beincreased for water supply and sanitation (WSS).The provision of budget support, however, shouldbe based on the agency’s capacity to instituteefficiency reforms, more effective poverty-focusedstrategies and better program outcomes. Moreover,given the fiscal constraints, it is imperative todevelop innovative financing schemes involvingLGUs, communities, private sectors and NGOs.While the implementation of WSS projects is nowdevolved to the LGUs, some LGUs still lack thecapacity and political will to fully finance WSSprojects. It is also necessary to continue reviewing/refining the NG-LGU cost-sharing policy. Inaddition, support for the ongoing activities for thereview of WSS indicators has to be sustained.

The Molave ExperienceMolave Foundation, a Philippine NGO, has joined efforts with Water Supply and Sanitation Collaborative

Council (WSSCC in Geneva) in its global campaign called WASH (Water, Sanitation and Hygiene for All) to drawattention to the plight of millions of people, mostly the poor, without adequate sanitation and without access to safewater supply. The campaign aims to mobilize political awareness, support and action towards achieving theMDGs, specifically Target 10 of Goal 7.

In collaboration with the Non-Formal Education Services (NFES) of the Division of City Schools of Manila andApprotech Asia, the WSSCC Southeast Asia Coordinator implemented the WASH Manila Project. The project devel-oped and trained a cadre of WASH Change Agents or Advocates who are instrumental in spreading the message ofWASH. They are composed of Teacher Community Coordinators (TCCs) of NFES who have been tasked to pro-mote, propagate and champion the objectives of the WASH campaign. The project also organized CommunityWASH Days in selected communities in Tondo. The Day highlighted the various components of the WASH cam-paign such as: (a) health promotion and disease prevention; (b) hygiene and sanitation; and (c) livelihood skills.

Another activity is the WASH Caravan initiative which was launched in Baseco, Tondo, Manila in November2004. For the launch, a caravan of Philippine jeepneys were used to bring the products and services of WASH tocommunities. Among the services of the WASH Caravan are: (a) medical mission; (b) primary health care promo-tion focusing on hygiene and sanitation; (c) technology transfer, demonstration and exhibits of water and sanita-tion (WATSAN) technologies; (d) development and promotion of multimedia and IEC materials; (e) livelihood andentrepreneurial skills training; and (f) preparation of nutritional supplements.

Through the project, “WASH Caravan: Moving the MDGs in Water and Sanitation Forward in the Philippines”,it is hoped that the WASH and MDG on Water and Sanitation advocacy and communication campaign will befurther replicated in other parts of the country towards the achievement of the MDGs.

Challenges and priorities for action• Giving importance to sanitation services

The provision of safe water supply necessi-tates improvements in environmental sanitation toreduce incidence of water-borne diseases. Atpresent, many poor households remain withoutaccess to safe excreta disposal while waterdistricts lack the needed incentives and support toprovide or improve sanitation services. A range oflow-cost sanitation programs is required as wellas long-term investments in hygiene promotion.

The provision/implementation of water supplyfacilities and projects should have the correspondingsanitation facilities for proper disposal of waste-water/septage. Moreover, institutional strengthen-ing programs within the Local Water UtilitiesAdministration (LWUA) and DILG should becommenced to build up the capacity of WSPs andwater user associations. In this regard, there is aneed to develop sanitation toolkits on the differentoptions available and to improve capacity buildingprograms on WSS planning, management andimplementation by LGUs. Likewise, sustainabilityof sanitation facilities (including their propermaintenance) should also be assured. In doing allof these, there is a need to develop a NationalStrategy for Sanitation to improve access to basicsanitation, as well as to monitor the initiatives beingundertaken at the local level.


Status and trendsIn 2002, the government estimated that there

were 588,853 informal settler families or squat-ter households nationwide. More than half ofthe informal settlers or 51 percent were in theNational Capital Region (NCR), Region VI andRegion IV. On the other hand, the areas withthe least number of informal settlements wereCordillera Administrative Region (CAR), RegionI and the Autonomous Region for MuslimMindanao (ARMM). These informal settlerslive in dwelling units that are substandard or arenot durable for at least five years, mostly inurban areas characterized by slums with little orno basic or auxiliary services such as safewater, health center, elementary and highschools, and decent and gainful livelihoodopportunities. The national government aims toprovide security of tenure to 300,000 householdsannually. This is broken down into: (a) 150,000land tenure units for the urban poor; (b) 70,000socialized housing units; and (c) 80,000 low-costhousing units.

In pursuit of the global MDG target, thegovernment and the private sector providedsecurity of tenure or shelter security units (i.e.,house and lot, house only or lot only) to 382,285households from 2001 to 2004. The governmentprograms included the Asset Reform Program ofthe Housing and Urban Development Coordinat-ing Council (HUDCC); slum upgrading, sites andservices, land tenurial assistance, community

land acquisition support, grants-in-aid for hous-ing, cooperative housing, resettlement, emer-gency housing assistance, housing materialsassistance, medium-rise housing projects, andcompleted housing of the National HousingAuthority (NHA); and the Community MortgageProgram (CMP) of the National Home Mort-gage Finance Corporation (NHMFC). Theprivate sector through the Couples for ChristGawad Kalinga 777 (GK 777) Project and theHabitat for Humanity Project provided a total of8,979 units for slum dwellers.

Philippines 588,853 100.0

NCR 174,085 29.6

CAR 2,586 0.4

Region I (Ilocos) 2,735 0.5

Region II (Cagayan Valley) 9,674 1.6

Region III (Central Luzon) 24,064 4.1

Region IV (Southern Tagalog) 59,238 10.1

Region V (Bicol) 47,122 8.0

Region VI (Western Visayas) 69,170 11.7

Region VII (Central Visayas) 33,136 5.6

Region VIII (Eastern Visayas) 28,619 4.9

Region IX (Zamboanga Peninsula) 34,801 5.9

Region X (Northern Mindanao) 20,537 3.5

Region XI (Southern Mindanao) 36,334 6.2

Region XII (SOCSARGEN) 19,550 3.3

Caraga 24,445 4.2

ARMM 2,757 0.5

Informal Settler Families

Magnitude PercentageRegion

Table 13: Informal Settler Families, by Region, 2002

Source: 2002 Annual Poverty Indicators Survey (APIS), NSO

Number of Household Beneficiaries

2001 2002 2003 TotalProgram

Sources: HUDCC, Couples for Christ, Habitat for Humanity

TABLE 14: Program for Slum Dwellers

HUDCC Asset Reform Program 133,900 68,820 1,000 203,720

NHA Housing Programs 47,771 25,356 15,205 88,33

NHMFC Community Mortgage Program (CMP) 28,474 19,529 11,453 59,456

National Government Center (NGC) East-West Project 8,739 2,049 410 11,198

North and South Rail Relocation — 7,350 3,250 10,600

Gawad Kalinga (GK 777) 1,000 1,032 2,963 4,995

Habitat for Humanity 1,878 1,087 1,019 3,984

Total 221,762 125,223 35,300 382,285

Achieve a significant improve-ment in the lives of at least100 million slum dwellers by 2020

Target12


FIGURE 21: Informal Settler Families, by Region

Low

Medium

Cagayan Valley1.6

Bicol8.0

Eastern Visayas4.9

Central Visayas5.6

Caraga4.2

SOCSARGEN3.3


ARMM0.5



Western Visayas11.7

Southern Tagalog10.1

NCR29.6

Central Luzon4.1

Ilocos0.5

CAR0.4

Source: 2002 Annual Poverty Indicators Survey (APIS), NSO

High


Priority policies and programsTo facilitate security of tenure for the informal

settlers, the National Home Mortgage FinanceCorporation (NHMFC) revised the CommunityMortgage Program (CMP) Guidelines which, amongothers, increased the loan ceiling from PhP100,000to PhP120,000 in Metro Manila as well as otherhighly urbanized areas; and, from PhP85,000 toPhP100,000 in other areas. The required docu-ments for the CMP were also significantly reducedfrom 56 to 18, and technical assistance andfinancing were provided to the beneficiary commu-nities for expenses related to transfer of title tohasten the processing of CMP projects.

The housing agencies, under the guidance ofthe HUDCC, have also been working closely withthe NGOs and private sector groups such as theGK 777 Project of the Couples for Christ, GawadKapatiran and Habitat for Humanity for theimprovement of some blighted communities and

provision of dwelling units for the informal settlers.The HUDCC extended technical and financialassistance to Gawad Kalinga for the attainment ofits vision of providing 700,000 housing units in70,000 communities in seven years. Moreover, theHUDCC entered into a partnership with Couplesfor Christ Gawad Kalinga Community Develop-ment Foundation to provide a financing facility fordevelopment of housing units to benefit the GKbeneficiaries.

To further improve access to housing by thepoor, EO 272 (s. 2004) was issued, which autho-rized the creation of the Social Housing FinanceCorporation (SHFC) that will cater to the housingneeds of the bottom 30 percent poor population.EO 272 also transferred the implementation of theCommunity Mortgage Program and Abot-KayaPabahay Fund Program from the NHMFC to theSHFC as the former’s subsidiary.

Challenges and priorities for actionthese settlers must be given priority and undertakenin a just and humane manner. Identified priority sitesfor relocation include the North and South Rail,Pasig River and esteros in Metro Manila.

• Pursuing an urban asset reform programIn line with the MTPDP 2004-2010, an urban

asset reform program shall be pursued by providingproperty rights for informal settlers. This wouldinvolve unlocking “dead capital” or lands occupiedby informal settlers through the granting of legalrights to the occupied lands. The informal settlerscan use the rights to raise capital formicroenterprises. This approach should be pursuedas it provides both security of tenure and livelihoodopportunities for slum dwellers.

• Promoting sustainable source of housingfinance

To promote a sustainable source of housingfinance, the proposed legislation that willoperationalize the Social Housing Finance Corpora-tion (SHFC) as the primary institution responsiblefor addressing the housing needs of the bottom 30percent poor households should be pursued. TheSHFC should have adequate capitalization and beauthorized to enter into loans or issue bonds andother debentures to raise funds for socializedhousing construction.

To attain the MDG goal on improving the lives ofslum dwellers, the following challenges and prioritiesmust be addressed:

• Continuing to meet the housing require-ments of the informal settlers

Meeting the housing requirements of the infor-mal settlers would entail: (a) scaling up provenmultistakeholder and cost-effective housing pro-grams; (b) improving the security of tenure ofhouseholds, improving the land registration process,and adopting and developing innovative tenurearrangements to address the affordability factor;(c) relocating informal settlers occupying dangerareas in Metro Manila in a just and humane manner;(d) supporting LGU and private sector-led housingprograms; and (e) developing new centers forhousing in Luzon, Visayas, and Mindanao.

Proven multistakeholder and cost-effectivehousing programs that may be expanded include theCommunity Mortgage Program, the GK 777 Project,and the Habitat for Humanity projects. Innovativetenure security arrangements that need to be furtherdeveloped and pilot-tested include public rental, leasepurchase and shared ownership, rent-to-own, usu-fruct or long-term lease of up to 99 years particularlyfor properties in urban centers. To address the influxof informal settlers in danger zones (e.g., railways,riverside, esteros) in Metro Manila, the relocation of


• Expanding private sectorparticipation in socialized hous-ing finance and construction

There is an urgent need toexpand private sector participationin socialized housing (i.e., housingpackage below PhP225,000)finance and construction by:(a) establishing an active and liquidsecondary mortgage market;(b) fast-tracking disposition ofassets and nonperforming loansto generate additional funds forhousing; (c) rationalizing thesubsidy mechanism for socializedhousing to remove distortions andleakages; and (d) pursuing strate-gic linkages with client andsectoral groups, and private developers for jointventure arrangements.

The development of the secondary mortgagemarket is a scheme for fund generation inhousing that is long awaited. The market will bestimulated for the buying and selling of mort-gage-backed securities (e.g., housing loans,housing bonds) at a discount especially for thePhP42 billion NHMFC portfolio. At the sametime, the subsidy mechanism for socializedhousing should be rationalized from the currentinterest-based subsidy towards a more transpar-ent, up-front amortization-based subsidy on theprincipal payments for socialized housing loans.Thus, there is a need to institutionalize an “on-budget” amortization subsidy scheme for social-ized housing to maintain its affordability andwhich should be kept separate from the housingfinance market. Joint venture schemes with theprivate sector should also be developed forpublic housing for the informal sector (i.e.,nonmembers of HDMF, GSIS and SSS) ingovernment properties proclaimed for housingpurposes. These approaches will redefine therole of government in housing finance to ensurea better distribution of responsibilities and riskswith the other stakeholders.

• Rationalizing coordination for housing andurban development

To rationalize and strengthen the institutionalcapacity of the housing agencies, there is a needto elevate the Housing and Urban DevelopmentCoordinating Council (HUDCC) into the Depart-ment of Housing and Urban Development(DHUD). The DHUD is envisioned tostrengthen the housing sector’s institutionalframework by establishing a lead agency thatwill address the pressing issues posed by arunaway population growth, rapid urbanization,

urban poverty, growth disparities, and poor urbanenvironment. The creation of the DHUD shouldstrictly adhere to the scrap-and-build policy ofthe government so that neither additionalbudgetary allocation nor new personnel wouldbe required.

• Strengthening housing regulationThere is a need to establish Local Housing

Boards in every city and municipality. The pro-posed Local Housing Boards shall formulate,develop, implement and monitor policies on theprovision of housing and resettlement areas and onthe observance of the right of the underprivilegedand homeless to a just and humane eviction anddemolition. The Boards shall have the authority to:(a) prepare local shelter plans; (b) assist in thepreparation of Comprehensive Land Use Plans(CLUPs); (c) approve preliminary and finalsubdivision and development plans; (d) evaluateand resolve issues on the issuance of developmentpermits; (e) ensure compliance with the 20 percentbalanced housing requirement in the Urban Devel-opment and Housing Act (UDHA) (which providesthat in every housing development project, at least20 percent of the units or project cost should be forsocialized housing); and (f) identify lands forsocialized housing, among others.

There is also a need to institute the NationalLand Use Policy (NLUP) which shall integrateefforts, monitor development relating to land useand evolve policies, regulations and directions ofland use planning processes. The proposed NLUPmandates the formulation of national planning andzoning guidelines and standards, which will guideLGUs in the formulation of their CLUPs andenactment of zoning ordinances. The Policy alsocategorizes uses of land into protection, land use,settlements development, and infrastructuredevelopment.


Country 1996 a/ 1997 1998 2000 2001 2002 2003 2004

Philippines 5.8 5.2 -0.3 4.4 3 4.3 4.7 6.1

Malaysia 10 7.3 -7.4 8.9 0.3 4.1 5.3 7.8

Indonesia 7.6 4.7 -13.1 4.9 3.3 3.7 3.9 4.4

Thailand 5.9 -1.4 -10.5 4.8 2.1 5.4 6.7 6.4

Taiwan 6.1 6.7 4.6 5.9 -2.2 3.6 3.2 7.2

Hong Kong 4.3 5.1 -5 10.2 0.5 1.9 3.2 9.5

South Korea 7 4.7 -6.9 8.5 3.8 7 3.1 5.4

China 9.6 8.8 7.8 7.6 7.3 8 9.1 9.7

Singapore 8.1 8.6 -0.9 9.7 -2 2.2 1.1 10

Source: MTPDP, 2004-2010a/ pre-Asian Financial Crisis

Table 15: Comparative GDP Growth Rates of Asian Countries (in percent)

Status and trends

Goal 8: Develop a global partnership for development

Export Growth Rate (%) Import Growth Rate (%)

2001 15.6 4.2

2002 9.5 7.2

2003 2.9 5.8

2004 9.3 7.5

Table 16: Export and Import Growth Rates

Source: National Statistics Office (NSO)

The Philippine economy grew moderately overthe period 2001-2004 with GNP and GDP expandingat average rates of five percent and four percent,respectively. In comparison with other Asiancountries, the country exhibited a modest growthrelative to its pre-1997 Asian Financial Crisis(Table 15). Investment to GDP ratio grew slightlyfrom 19.3 percent in 2002 to 20.1 percent in 2004.The minimal increase in foreign direct investmentfrom US$1.43 billion in 2002 to US$ 1.49 in 2004did not significantly contribute to the decline inunemployment. Gross Domestic Savings- GDPratio was likewise low at 21 percent in 2004compared to Thailand (30.5 percent) and Malaysia(41.8 percent). The low propensity of Filipinos tosave is attributed to a number of factors such as highpopulation, low returns offered by banks to depositors,minimal investment opportunities, and nonexistenceof a savings culture among majority of Filipinos.

The Philippines’ rank in the Global Competitive-ness Ranking continued to slide down from 48 in2001 to 76 in 2004 based on the 2004 WorldCompetitiveness Report. The interest and confi-dence of foreign investors to infuse capital in thecountry were largely weakened by internal issueson fiscal instability, lingering peace and orderproblems, inadequate infrastructure, corruption, andslow dispensation of justice.

At the trade front, exports have not grownsteadily since 2001 relative to imports (Table 16).However, export growth from 2003 to 2004was due largely to the country’s major productssuch as electronic products, apparel andclothing accessories, machineries, and trans-port equipment, coconut products and mineralproducts. Japan, US, and Netherlands haveremained the top buyers of the country’s ex-ports. In terms of the economic sectors, theservices group played a critical role in pumpingin employment opportunities through theexpansion of telecommunications companies,new investments in call/contact centers,business process outsourcing and softwaredevelopment.

Develop further an open, rule-based, predictable, non-discriminatory tradingand financial system; include a commitment to good governance, developmentand poverty reduction–both nationally and internationally

Target13


Japan 15.73 16.28 4.67 16.17 9.23

USA 27.93 26.71 -3.30 19.79 -18.53

Singapore 7.18 7.60 7.11 6.86 -0.74

Republic of Korea 3.25 4.12 28.19 3.70 -1.20

China 2.47 4.17 71.02 6.06 59.77

Taiwan 6.62 7.64 16.81 6.15 -11.53

Hong Kong 4.91 7.26 49.29 8.63 30.81

Saudi Arabia 0.10 0.13 27.27 0.11 -2.38

Malaysia 3.46 5.08 48.66 6.51 40.93

Thailand 4.22 3.33 -20.25 3.44 13.48

Others 27.24 25.98 -3.59 22.58 -4.44

Share Share Growth Share Growth

100.00 100.00 1.11 100.00 9.97

TABLE 17: Exports Performance by Country of Destination, 2001-2003(Share of Total and Growth Rates in Percent)

2001 2002 2003

Total

Source: National Statistics Office (NSO)

Priority policies and programs• Investment liberalization

The Philippines continued to pursue investmentliberalization measures in order to maximize theopportunities and benefits offered by the globalmarket and at the same time minimize the eco-nomic and social costs of globalization.

Adhering to the principles of fair and transparenttrade, the Philippines further gained ground in itstrade agreements with ASEAN partners through thereduction of tariffs under the Common EffectivePreferential Tariff (CEPT) Scheme of the ASEANFree Trade Area. This trade policy has generallyincreased the range of available products in thedomestic market, reduced the cost of raw materialsfor local consumers, and encouraged local producersto compete with foreign counterparts.

Unilateral tariff reduction and elimination mea-sures were also undertaken to lower cost of produc-tion inputs, such as the reduction to one percent of therates on 917 tariff lines of raw materials, intermediateinputs and capital equipment in 2002, and furtherreduction of tariffs on additional 268 products in 2003.A supporting policy was also issued to allow productsmanufactured in special economic zones (SEZs) andsold domestically to enter the Philippine customsterritory under CEPT rates, subject to rules of origin.Besides fostering competition and lowering consumerprices in the domestic market, this policy seeks tomake Philippine SEZs attractive to potential investorsand encourage existing SEZ locators to establishforward linkages with the domestic market.

• Trade promotionIn terms of promoting domestic and foreign

investment, reforms were made on the harmoniza-tion of trade-related procedures with other coun-tries, allowing 100 percent foreign ownership inretail trade enterprises especially those specializingin high-end or luxury goods; providing tax incen-tives to investors in IT zones; and issuance ofImplementing Rules and Regulations (IRR) of theElectric Power Industry Reform Act. Marketpromotion activities and selling/investment missionswere held both in the country and abroad, resultingin the generation of millions of dollars in exportssales and billions of pesos in investments especiallyin electronics and IT-related services.

In addition, greater access of Philippine prod-ucts to foreign markets was negotiated. Thecountry entered into agreements with Taiwan,Vietnam and Thailand to boost various productsectors such as food processing, electronics,garments, and oil and natural gas through tradepromotion and industrial development cooperationmeasures. The Philippines also engaged in bilateraltalks with nontraditional markets, e.g., Austria,India, China, and certain countries in EasternEurope. The country also continued to encouragetrade with other ASEAN countries under theASEAN Industrial Cooperation Scheme and, as amember of the ASEAN, is presently engaged inthe forging of free trade agreements with China,Japan and India.


Besides promoting Philippine products inthe global market, the government took stepsto ensure that these products are of the bestquality. Quality tests have been conducted onthe products of over 800 firms. Domesticproduct standards have also been aligned withinternational standards to facilitate the accessof domestic products into foreign markets. In2002, the Philippines became a full signatoryto the Pacific Accreditation Cooperation/International Accreditation Forum MultilateralArrangement (PAC/IAF MLA). The arrange-ment lowers the cost of product certificationfor Philippine exporters by allowing the PAC/IAF MLA members in the APEC and ASEANregions to recognize the product certificatesissued by certifying bodies accredited by theBureau of Product Standards.

The Government has likewise created anInvestor Relations Office (IRO) which isintended to formalize and facilitate the activedialogue between the authorities and themarket participants, contributing to morestable flows of international capital andhelping prevent crises.

• Micro, small and medium enterprises(MSMEs) development

In support of the national agenda on eco-nomic development and poverty reduction, themicro, small and medium enterprises (MSMEs)were further developed and assisted in theareas of credit, technology, and marketing.Developing, promoting and empowering theseMSMEs is an effective and sustainable strategyin ensuring that Filpinos as workers can still begiven work after being displaced by the closureof companies adversely affected by globaliza-tion. The full implementation of the Multi-FiberArrangement in 2005, removing all textilequotas, will pose threats to the productivity,profitability and work security in the country’sgarment industry.

In 2001, MSMEs accounted for 99.6percent of the total business enterprises(811,589) and generated a 69.1 percent shareof total employment. Bank lending policies andprocedures are being reviewed and modifiedto enable these enterprises to access andafford capital for their productive use. Interms of credit assistance, the government hasdirected a large number of external assistanceto beef up the credit line of these enterprises.To sustain the quality of MSMEs in trade andcredit, the government initiated efforts inputting up a credit bureau to keep track of thefinancial and operational performance of theseenterprises.

As an empowerment and capacity buildingstrategy for MSMEs, the Bangko Sentral ngPilipinas (BSP) has ventured into severalpolicy reforms in promoting and integratingmicrofinance principles into the broad range offinancial services in the banking system.These reforms cover deposit, loans, paymentservices, money transfers and insurance topoor and low-income households and theirmicroenterprises. The BSP’s implementationstrategy includes the following:

• promoting the entry of existing banks intomicrofinance and establishing microfinance-oriented banks;

• encouraging the conversion of existingmicrofinance organizations into microfinance-oriented banks;

• providing rediscounting loans to existingmicrofinance-oriented banks;

• establishing standards of performanceand business practices to guide the operationsof microfinance-oriented banks;

• providing information and/or training toBSP bank examiners and/or microfinance-oriented banks on best practices inmicrofinance and microfinance technologypackages; and

• institutionalizing a microfinance programin the BSP.

• Financial reforms and price stabilityWith respect to the nonbank financial

system, a number of laws were passed toeffect a more stable financial position for thecountry. These include the Securities Regula-tion Code, the Securitization Act and theAnti-Money Laundering Act. The first twolaws aim to strengthen the financial systemby providing for the demutualization of thestock market, setting the rules governing thedebt market, and strengthening the regulatorypowers of the Securities and ExchangeCommission (SEC). The third law waspassed as a measure to remove the Philip-pines from the Financial Action Task Forcelist of Non-Cooperative Countries and Terri-tories.

In 2002, the BSP shifted to an inflationtargeting framework which is expected topromote greater transparency in the conductof monetary policy, thus facilitating the func-tioning of efficient financial markets. Tosupport this, the BSP has been publishing aquarterly Inflation Report explaining theinflation situation and the status of monetarypolicy and has publicly disseminated a reporton the highlights of the Monetary Boarddiscussion on monetary policy issues.


Investment and trade growths in the countryare challenged by the economy’s capacity togenerate trade surpluses through either strongervalue-adding export industries or foreign-ex-change-saving industries or both. The emergenceof China as a major player in the world market andthe movement toward closer economic integrationtaking place worldwide through multilateral,regional and bilateral arrangements have furtherincreased the opportunities and threats faced bylocal producers who have to constantly improveefficiency and productivity to survive and preservetheir niche in the domestic and/or export markets.These developments have brought to the fore theneed for a strong and dynamic industry andservices sectors that are capable of generating jobsand incomes for millions of Filipinos and of sup-porting, if not spearheading, the growth anddevelopment of the Philippine economy in thetwenty-first century and beyond.

To strengthen and sustain the country’s produc-tivity and competitiveness at both domestic andglobal markets, the government will focus itsinvestments on MSMEs development, strengthen-ing and expanding strategies for export andinvestment promotion, achieving energy indepen-dence and savings, and infrastructure development.

• Ensure enabling environment for micro andSME development

The government will provide an environmentconducive to micro and SME developmentparticularly in terms of credit, technology andmarketing support. Product development will becontinued as part of technology support. Over-seas Filipino Workers (OFWs) will be tapped toinvest in micro and small income-generatingprojects and activities.

To sustain and generate investments, aggressivepromotional campaigns shall be pursued especially inthe identified priority areas [e.g., infrastructure, IT,automotive, electronics, mining, health care (medicaltourism), food] that will support the country’s jobcreation thrusts. There are sectors where thecountry has comparative advantage because of itshuman resources and geographic location. Focusedinvestment promotion in priority markets (e.g., US,Europe, Japan, Taiwan and Singapore) for theretention, expansion and diversification of existinginvestments shall be undertaken in cooperation withmajor foreign companies operating in the Philippinesand other partners (e.g., foreign embassies, businesschambers and associations, international organiza-tions, etc.).

• Sustain efforts to lower the cost of doingbusiness

As input to trade competitiveness, efforts tolower the cost of doing business by simplifyingprocedures and requirements shall be continued.These include reducing the documentary require-ments, processing time, steps and fees as well asthe issuance of various certifications. Businessfacilitation shall be promoted through the imple-mentation of the Philippine Business RegistrySystem which shall serve as platform for one-stopcenters for business registration facilitation andharmonized government frontline services delivery.An online Investment Registration and MonitoringSystem and Business Action Centers - where acomprehensive package of assistance to business-men/entrepreneurs will be housed under one roof –shall be set up nationwide.

• Strengthen and expand strategies forinvestment and export promotion

To attain the US$50 billion export target by2006, the country shall move toward expanding theexport base by tapping new markets, developingmore competitive export products and services andmaximizing opportunities through bilateral andmultilateral agreements. Exports and investmentopportunities offered by trade agreements shall bemaximized. This shall include the conclusion ofcurrent trade agreements, namely: the Japan-Philippines Economic Partnership Agreement(JPEPA), ASEAN Priority Investment Projects(PIP), and the ASEAN-China Free Trade Areaunder the Framework Agreement on Comprehen-sive Economic Cooperation between ASEANand the People’s Republic of China. Discussionson economic cooperation initiatives through theAsia-Europe Meeting (ASEM) while pursuingaggressively the European market will be contin-ued. Possible trade agreements with other majortrading partners including the US, Taiwan, SouthKorea, India, Canada, and Australia-NewZealand will be initiated. Studies to identifyadvantages and disadvantages of these agree-ments shall be conducted in consultation withvarious stakeholders.

Export promotion will focus on the followingpriority markets: USA, China and Hong Kong,Japan, ASEAN, European Union, Taiwan, Austra-lia-New Zealand, South Korea, India, Canada,United Arab Emirates and Kingdom of SaudiArabia. Export/import procedures and facilitationwill be simplified to improve efficiency, transpar-ency and accountability.



Over the past years, fiscal flexibility was steadilyeroded, with shrinking revenues and rising require-ment for nondiscretionary portions of the budget suchas personnel expenditures, interest payments andblock grants to LGUs. After the deficit problemexploded in 2002, the National Government (NG)began its fiscal consolidation program. The modestfiscal gains in 2003 were sustained in 2004 as the NGturned in a lower-than-target deficit of PhP187.1billion (3.86 percent of GDP) and higher primarysurplus of PhP73.8 billion (1.5 percent of GDP),which helped contain fiscal vulnerability.

While revenue collections improved, revenuesdid not grow in line with economic growth, asreflected by the decline in tax-to-GDP. As of2004, tax effort stood at 12.4 percent, below theMTPDP target of 12.8 percent.

With the widening fiscal deficit, the NG debtballooned from PhP2.81 trillion in 2002 to PhP3.81trillion in 2004, equivalent to 78.7 percent of thecountry’s GDP and more than five times the govern-ment revenues for the year. Net domestic borrowingsamounted to PhP161.4 billion. This is 31.4 percent orPhP73.9 billion less than the programmed net domesticborrowings of PhP235.3 billion, a matter resultingfrom the shift to foreign financing. The combined largedeficits of the NG and government owned andcontrolled corporations (GOCCs) pushed theconsolidated public sector deficit (CPSD) to 5.5

percent of GDP in 2003 but tapered down a bit to 4.8percent in 2004. Nonfinancial public sector debt11

stood at 94.83 percent of GDP as of end-September2004, up from 93.9 percent of GDP in 2002.

As ealier mentioned, the increasing require-ments for nondiscretionary portions of the budgetlike personal services, interest payments and blockgrants to LGUs also put pressure on expenditures.The share of personal services in the budget pieincreased from 29 percent in 1992 to 32 percent in2004 while mandated internal revenue allotment(IRA) share accruing to LGUs has more thandoubled in terms of the percentage share of thebudget from eight percent in 1992 to 16 percent in2004. Although the share of interest paymentsslightly declined in 2004 to 29 percent from 31percent in 1992, it still accounts for the secondbiggest share in government spending. The in-creased share of personal services, IRA andinterest payments largely contributed to thecontraction in capital spending and other productiveexpenditures. The Philippines’ capital outlayperformance vis-à-vis other Asian countries waslowest for 1998-2004, averaging a mere threepercent of GDP. In view of this, fiscal flexibility issteadily being eroded as revenues shrink andmandated expenditures remain high.

With regard to expenditures by obligation, thecountry relied heavily on budget cuts to contain thedeficit, given weak revenue collections. With thesheer size of the national debt, debt servicing tookthe biggest share (almost 1/3) of the 2004 budgetpie. From 2000 to 2004, it remains only expenditurethat did not experience a decrease in percentageshare to the total NG budget. Note that this coversinterest payments alone as payments for theprincipal and loans are classified as “off budget.”Actual total debt service in 2004 (principal andinterest payments) was 68 percent of the total NGcash disbursements. Debt service averaged 7.7percent of GDP from 1986 to 2004 or a total ofPhP184.534 billion in interest and principal.

While it has been the policy of the governmentto traditionally exempt social services (e.g., expendi-tures pertaining to schools, hospitals and CHED/TESDA- supervised institutions) from the impositionof reserves or budgetary cuts, the delivery of basicservices still suffered from its limited fiscal flexibility.The proportion of the NG’s social expenditure toGDP declined from 6.35 percent in 2000 to 5.1percent in 2004 while that of the LGUs remainedfairly constant at 0.7 percent. Many governmentagencies had to work with reduced budgets.Hence, real per capita spending on health, educa-tion, social security, welfare and employment, andhousing went down and the financing gap for the

Status and trends

11 Based on a revised methodology which nets out BSP debt, GFI debt, Bond Sinking Fund and intra-sectoral debt holdings (except relent). DOF is currentlyworking on the consolidation of the debt of nonfinancial public sector and financial public corporations (Source: DOF Press Release, 11 January 2005).

Deal comprehensively with the debt problemsof developing countries through national andinternational measures in order to makedebts sustainable in the long term

Target14


attainment of the MDGs widened.International assistance helped cushion the

adverse impact of the country’s tight fiscal situa-tion on the provision of social services. One-third

Priority policies and programsInitiatives, however,have been undertaken to

bolster collection efficiency in the future. Increasingly,information technology is being used to help detectleakages promptly, recover revenue losses, andestablish audit trails.A strengthened tax administrationcomplements the additional tax policy measures.

Republic Act 9334 (adjusting excise taxes onalcohol and cigarette products) was signed onDecember 21, 2004, while RA 9335 (Lateral AttritionAct of 2005) was signed on January 25, 2005. Theformer aims to address weaknesses in the currentexcise tax system and is expected to generate PhP15billion in revenues for the government. The latterprovides a system of rewards and sanctionsthrough the creation of a Rewards and IncentivesFund and Revenue Performance Evaluation Boardto encourage officials and employees of BIR andBOC to exceed their revenue targets for 2005.

The Expanded Value-Added Tax Bill was alsosigned into law on May 24, 2005. It increasescorporate income tax to 35 percent from 32percent, and gives President Arroyo the authorityto increase VAT by two percentage points to 12percent next year under certain conditions. It alsoends VAT exemptions enjoyed by the power andelectricity and air and sea transport industries,a measure that has projected annual proceeds ofPhp56 to 60 billion. Meanwhile, the proposedreforms in the general tax amnesty and rationaliza-tion of fiscal incentives are currently being deliber-ated in both houses of Congress. Supplementingthese, Executive Order (EO) 399 or the No-AuditProgram (NAP) was issued in January 2005

exempting from official audit and investigationtaxpayers who pay 25 percent above their currentincome tax payments. This program is designed toreduce corruption and administrative costs whileenhancing voluntary compliance.

With these reforms in place, the governmentrevised downward its deficit target for 2005 toPhP180 billion or 3.4 percent of GDP, from theMTPDP target of PhP184.5 billion or 3.6 percent ofGDP. The government also focused on improving itscapacity to manage and minimize risks associatedwith public debt. Deficit targets are expected to becut further when the fiscal responsibility bill ispassed, since this will forge an accord between theexecutive and legislative on the fiscal targets andaccompanying strategies that will be pursued toensure public-sector debt sustainability.

Initiatives to improve ODA utilization were alsotaken. The Development Budget CoordinationCommittee (DBCC) and the Investment Coordina-tion Committee (ICC) jointly conducted an ODAportfolio review in early 2003 to review the progressof major ODA-funded projects, recommend deficit-neutral measures to improve ODA performance,and ensure sufficient budget support for 2003onwards for high-priority projects. Resulting actionsinclude cancellation of excess financing for sixprojects amounting to US$31 million, rephasing ofimplementation schedules for 15 projects, reductionin scope for 10 projects, and tapping of othersources of financing (LGUs or GOCCs) for fourprojects. To date, US$7.2 million of excess financinghas been cancelled, implementation periods of six

12 The AFP Modernization Program was established in 2000. In the same year, some PhP13.318 million was obligated for the program. From 2001to 2003, actual obligation from releases made were incorporated in the budgets of the attached agencies under the Department of National Defense.

Source: Budget of Expenditures and Sources of Financing FY 2005

Expenditure % Share to Total National Government Budget

TABLE 18: National Government Expenditure Program by Sector, FYs 2000-2005(net of debt amortization)

2000 2001 2002 2003 2004 2005

Economic services 24.5 22.1 20.4 20.6 18.1 17.5

Social services 31.2 30.4 31.1 28.8 28.8 28

Defense12 5.3 5.1 5.2 5.4 5.1 4.9

General Public Services 18 17.1 17.9 17.1 15.9 15.5

Net Lending 0.4 0.6 0.4 0.7 0.6 0.8

Debt Service 20.7 24.7 25.1 27.4 31.5 33.2

TOTAL 100 100 100 100 100 100

of the total ODA loans disbursements went tosocial services for 2001-2003. This amounts toalmost US$358 million of the total US$1.07 billiontotal ODA disbursements for the three-year period.


borrowing, the NG policy has been directed atraising financial resources for development, minimiz-ing costs and risks, and developing the domesticsecurities market.

The operational efficiency of governmentagencies was likewise enhanced. RA 9184 or theProcurement Act was passed to rationalize expendi-tures and enhance transparency and public account-ability in government procurement. The NewGovernment Accounting System (NGAS) was alsointroduced to replace the 50-year old accounting andauditing system, thus making financial reportingmore responsive to the information needs of govern-ment managers and supervisors.

• Poor management of off-budget risksImproving the management of off-budget risks is

crucial. The implicit guarantees provided by thenational government for GOCCs, LGUs and evenprivate companies expose the country to consider-able risk as the government automatically assumestheir liabilities once they default, thereby increasingthe debt stock. This is very alarming considering thatno clear limits are imposed on the accrual ofcontingent liabilities.

There is a need to inventory, monitor andquantify contingent liabilities to measure the risksassociated with these.The Executive and Congressmust also agree on the setting of limits on theaccrual of contingent liabilities.Moreover, provisionsmust be made for their expected costs in thebudgetary process. There must also be an optimalsharing of risks between the government and theprivate sector in projects with private sector partici-pation. The guarantee fee must be based on theduration of cooperation between the governmentand investors. In addition, the government’s risktolerance must be used as basis for setting limits onissuance/pricing of guarantees, and structuringreserves against unexpected losses. Special-purposeaudits of critical GOCCs will help improve theirgovernance structure and fiscal discipline.

• Need for shared responsibility andaccountability

The capacity of revenue generating agencieswill have to be continuously strengthened in orderto rally collective support for the controversial taxpolicy reforms. Shared responsibility and account-ability hinge on transparent and effective communi-cation of reforms being undertaken. Broad institu-tional reforms in tax administration and expendituremanagement are equally crucial in building con-stituencies of support for the fiscal reform agenda.

Challenges and priorities for action• Rapid rise in public debt levels constrainsability to finance development objectives

Much of the country’s vulnerability stems fromrising public debt levels which are intrinsically linkedto the deteriorating tax effort. Hence, upfront andsustained deficit reduction–that would reduce thecountry’s vulnerability to shifts in investor confi-dence–anchored on sustained revenue mobilizationand prudent expenditure management. Higherrevenues will create the fiscal space needed tosupport development expenditures.

The regulatory structure governing debt man-agement also needs strengthening . Toward thisend, the creation and strengthening of a semi-autonomous Debt and Risk Management Office(DRMO) is paramount. The DRMO will develop acentralized risk management system to aid imple-mentation of sound practices in public debt and riskmanagement. The DRMO is envisioned to amongothers: consolidate and coordinate the country’sdebt recording and management activities; forecastdebt service requirements; program debt servicepayments and new borrowings; assess lendingterms and negotiate best possible terms for futureborrowings and provide advice on the country’sdebt management strategy that is consistent withfiscal and monetary policies. As such, the DRMOmust have the expertise and infrastructure tostrengthen fiscal surveillance and operations.

As part of the effort to create enough fiscalspace for development expenditures, debt-swaparrangements for accelerated spending on basicservices to meet the Millennium DevelopmentGoals could be explored. The debt-for-MDG swapwill be governed by the clear and measurableoutcomes and targets. This proposed approachwould also likely advance the principle of debtforgiveness that is tied to specific developmentrequirement of the country.

projects were rescheduled; scope of six projectswas reduced, and other sources of financing for twoprojects were identified and approved.

To improve public expenditure management andfiscal programming, a new ICC policy was adoptedin November 2003 requiring resolution of budgetaryissues prior to ICC deliberation of new projectproposals or requests related to ongoing projects.Even before this, the ICC had been requiringsubmissions by agencies of medium-term investmentprograms and DBM-certified budget strategies.

The revised NG-LGU cost sharing policy wasalso issued to rationalize the terms of financialassistance to credit-worthy LGUs. On domestic


Status and trendsDrug prices in the country have been docu-

mented to be among the highest in the ASEAN.Based on the data from current World HealthOrganization’s publication, it is estimated that only66 percent of the country’s population has accessto essential medicines (1999 est.). Thus, thegovernment had to find ways to bring down thecost of drugs as one of the means to provideaccess to affordable medicines. In 2000, theDepartment of Health (DOH) and the Depart-ment of Trade and Industry (DTI) adopted theParallel Drug Importation Program (PDIP) toreduce the cost of essential medicines. It wasexpanded to DOH’s project, GMA 50 (Gamot naMabisa at Abot Kaya). Through this project,parallel drug imports achieved an estimatedaverage of 60.9 percent price reduction, a figureabove the 50 percent target. In widening thedistribution of commonly used drugs, 800 Botikang Barangays (BnBs) were given license to

Priority policies and programsdrugs and medicines. As a result of this initiative inthe pharmaceutical sector, two drug companieshave put in the market a line of products 30-50percent less than their regular prices in 2002 andanother company announced that it was reducingby at least 30 percent the prices of its saleableessential medicines; generics companies havebecome more competitive and are now providingmedicines to hospitals at prices even lower thancompeting parallel imports; and four (4) local drugcompanies have been allowed to consign productsin DOH pharmacies. For instance, Cotrimoxazole,which is sold at P24.03 is being sold at P5.07 inDOH pharmacies. To ensure that only high qualitymedicines will be made available to the public, allprospective suppliers were pre-screened and wererequired to have a Certificate of Good Manufac-turing Practice from the Bureau of Food andDrugs (BFAD).

Considering that generic products in the countryhave very low acceptability to medical practitionersand the general public, as reflected in terms ofsales and use, the DOH made an effort to promotegeneric drugs through television commercials and

Provide access to affordable essential drugs,in cooperation with pharmaceutical companies

Target15

operate on January 2005, in addition to the 3,002already established and functioning nationwide.Low priced medicines were also made availablein 72 DOH hospitals and three LGU-run hospi-tals. Relatedly, the Philippine International TradingCorporation (PITC), through its program,“Presyong Tama, Gamot Pampamilya” whichsigned up with 18 local pharmaceutical compa-nies, supplied low cost medicines to 1,496 munici-palities, 2,400 BnBs, 112 outlets of the DrugstoresAssociation of the Philippines (DSAP), and 10outlets of the Coops for Christ. It also signed aMemorandum of Understanding (MOU) withChina’s Hebei Medical University and India’sPharmexcil to expand the supply base of low costmedicines from other countries.

As a result of all of these initiatives, headwaywas slowly being made. In the Social WeatherStation (SWS) survey of the last quarter of 2004,49 percent of respondents who bought medicinestwo weeks before the SWS interview claimed theywere able to buy low-priced medicines. Forty twopercent said that they thought prices of medicineswere now cheaper.

To make medicines more accessible andaffordable, the government continued to employseveral strategies to cut the prices of essentialmedicines frequently used by the population.Through the GMA 50 program (Gamot na Mabisaat Abot Kaya–50 percent cheaper than commer-cial retail prices), the DOH expanded the paralleldrug importation program from India. Initiallyoperating in a few hospitals with a limited varietyof medicines worth five million pesos in 2000, theseimports were increased in 2001 to 42 essential drugvarieties worth 100 million pesos. These were thenmade available nationwide through the 72 DOHretained hospitals and a few LGU devolvedhospitals.

The price comparison between the parallelimported drugs, which are sold in the DOHBotikas, and their locally sourced counterpartsshowed an average price reduction of a little over50 percent in 2001 and 60.9 percent in 2004compared to prices in 2000.

The DOH also enlisted the support of thepharmaceutical industry, both local and multination-als companies, to help bring down the prices of


Despite efforts to increase access of thepopulation, particularly the poor, to affordabledrugs and medicines through drug price reduc-tion, much remains to be done. This is becausedrug price management goes beyond actualpricing interventions. Further efforts are neces-sary in terms of ensuring quality, productionefficiency, and cost effectiveness. Issues onmarketing, drug utilization as well as regulationand monitoring also need to be addressed.Specifically, the BFAD has to be strengthened.

A more efficient and effective BFAD willboost its credibility as a regulatoryagency as well as its function ofensuring the quality of drugs. Moreover,it is necessary to promote rational druguse e.g. tracking violative prescrip-tions, supporting procurement re-forms, etc. It is also imperative tocontinue promoting the use of genericdrugs and medicines. Information

about the quality and efficacy ofgeneric drugs will give the consumer

alternative choices and the opportunity tocompete with branded and expensive medicinesto challenge them to lower their prices.

In addition, to effectively lower the price ofbranded drugs and medicines, parallel drugimports must be in significant amounts to affectthe market shares for similar products. Localgovernment units may also be encouraged toparticipate in the centralized or pooled bidding inorder to reduce the costs drugs and medicines.

Meanwhile, the promotion of authenticherbal/traditional/natural or alternative medica-tion or treatments that are cost effective andappropriate for the treatment of certain illnessesor ailments of the poor should be considered anda clear and effective regulatory framework forthe marketing, promotion, distribution, andpractice of traditional medication and treatmenthas to be in place.

Lastly, improving access to drugs does notonly entail lowering drug prices. It also poses thechallenge of addressing problems of access tohospitals and other health professionals, problemsof availability of certain medicines in the marketas well as health insurance issues.

print advertisements. The Philippine HealthInsurance Corporation (PhilHealth), in support ofthe implementation of the Generics Law, suggestedto accredited health care providers that all drugprescriptions should be in generic terminology.

Another initiative was the widening of thedistribution system for common everyday drugsand medicines. The rolling stores of the NationalFood Authority (NFA) were given a special licenseto sell household remedies and herbal medicineswhile Botika ng Barangays (BnBs) were allowedto sell two prescription antibiotics (amoxicillin andcotrimoxazole), and herbal medicines in far-flungand hard to reach barangays. DOH supervises thesetting up and regulation of these BnBs. As ofJanuary 2005, 3,802 BnBs have been established.

Access to low cost drugs was initially limitedto public health facilities i.e., DOH and LGUretained hospitals, BnBs, and NFA rolling stores.Efforts are now being made to increase thenumber of outlets, with exploratory meetingsbeing conducted with private retail outlets todraw up the guidelines for their involvement inselling low cost drugs.



ADVOCATING ANDLOCALIZING THE MDGs

Meeting the challenges of the MDGs entails a strong advocacy for national ownership and sustained actionto operationalize the goals and targets especially at the local level. This necessitates vigorous and continuousefforts to raise the level of awareness of leaders and other major stakeholders, and promoting policy andprogrammatic interventions to realize the goals and targets. In the Philippines, national and local level cam-paigns have been the backbone of MDG advocacy. In pushing the MDG agenda forward, the country buildson the gains and opportunities offered by existing collaboration and evolving partnerships among key players.

As frontline institutions, the LGUs as well as civil society and the business sector have significant rolesto play to realize the MDGs. For the most part, the achievement of the MDG targets largely depends onthe delivery of devolved basic social services and active participation of the basic sectors. The LGUs, inparticular, make a significant portion of public expenditure decisions at the local levels. The national levelagencies provide direction and an environment that will enable local institutions to commit and respondappropriately to the basic needs of the community.

ENABLING ENVIRONMENT FOR MDGADVOCACY AND LOCALIZATION

At the national level, a policy environmentconducive to attainment of the MDGs was pro-vided. First, Social Development Committee(SDC) Resolution No. 1 Series of 2003 entitled“Expanding the Functions and Composition of theMultisectoral Committee on International HumanDevelopment Commitments (MC-IHDC), Amend-ing SDC Resolution No. 1, Series of 1996” man-dates the MC-IHDC, a subcommittee of theNEDA Board SDC, to monitor, report, review andevaluate Philippine compliance with global commit-ments on human development including the MDGs.As chair and secretariat of the MC-IHDC, NEDAprovides overall direction in monitoring complianceto MDGs. Through the same resolution, theDepartment of the Interior and Local Government(DILG) was tasked as the lead agency for local-ization of the MDGs.

Second, RA 7160 or the Local GovernmentCode (LCG) tasks the LGUs to be primarilyresponsible for providing basic social services totheir constituents. MDGs, to a large extent, arebasic services that are devolved functions to theLGUs. As cited in the LGC, these includepromotion of public health and safety, enhance-ment of people’s right to a balanced ecology,enhancement of economic prosperity and socialjustice, promotion of full employment among theresidents, and maintenance of peace and order,among others. In relation to this, various memo-randa have been issued by DILG towards thelocalization of MDGs. One significant milestone isthe issuance of DILG Memorandum Circular No.2004-152 “Guide to Local Government Units inthe Localization of the MDGs” which providesthe menu of PPAs per MDG goal and target toguide LGUs in responding to MDGs.

Third, the Medium-Term Philippine Develop-ment Plan (MTPDP) 2004-2010 hews closely tothe MDGs. The Plan cites the MDGs not just astop priority goals and targets, but a commitment toensure a brighter prospect for all Filipinos, espe-cially the poor. The Plan also carries nationaltargets for 2010 vis-à-vis MDG targets for 2015.

Fourth, to account how much goes to MDG-related programs, activities, and projects (PAPs),a new dimension was introduced in the formulationof the Medium-Term Public Investment Program(MTPIP), 2005-2010 through identification ofinvestments per goal and target. Theoperationalization of the MTPIP serves as the criticallink between planning, programming, and budgeting.

Fifth, the business sector and civil societyorganizations (CSOs) are strongly committed tohelping the government achieve the MDGs.

Lastly, the donor community is strongly support-ing the MDGs. The MDGs have been the overrid-ing framework of the donors in country program-ming, such as the UN Development AssistanceFramework, and the Country Programs of theWorld Bank, Asian Development Bank, AustralianAgency for International Development and theEuropean Commission, among others.

One significant UN-led activity was thelaunching on February 16, 2005 of the MillenniumProject Report entitled “Investing in Development:A Practical Plan to Achieve the MDGs.” The headof the project, Professor Jeffrey Sachs, discussedthrough live video feed how the report can be usedin the Philippines. The report proposes straightfor-ward solutions such as poverty mapping, investmentstrategy and financing strategy to meet the MDGsby 2015. The three critical areas for investment arehuman capital, physical environment and infrastruc-ture. Professor Sachs described the MTPDP as“among the best, if not the best around”.


agencies in mainstreaming the MDGs.In August 2003, a national workshop on

enhancing the capacity to monitor global humandevelopment commitments was organized by theNEDA through the Strengthening InstitutionalMechanisms for Convergence of Poverty Allevia-tion Efforts, Phase II (SIMCPAE-2) project imple-mented by the National Anti-Poverty Commission(NAPC) and funded by UNDP. The workshopparticipants, most of whom were planningofficers from government and NGOs, were ableto: (a) validate, update and refine the indicators/data included in the Social Development Manage-ment Information System (SOMIS) ensuring theirconsistency and relevance to international MDGsand national priorities; (b) review institutional set-up and necessary linkages among agencies interms of data collection, analysis, and feed backing,including the technology to enhance the currentSOMIS; and (c) identify further areas of coopera-tion among government agencies, the NGOs andInternational Organizations.

To advocate critical governance reforms withinthe Administration’s 10-point legacy agenda andMDG commitments, the GOP-UNDP GovernancePortfolio Management Office embarked on amultisectoral campaign-festival called the “10 to 10”from October to December 2004. Overall theme ofthe campaign is “Engaging People and Communities:Advancing Governance Reforms towards theRealization of the MDGs.” Five thematic areas inthe campaign respond directly to the MDGs,namely: (a) Human Rights, Gender, and MDGs:People’s Rights First in the Realization of theMDGs; (b) Public Administration Reforms (PAR):Enhancing the Administration of Service Delivery;(c) Environmental Governance: StrengtheningGovernance towards Environmental Sustainability;(d) Anti-Poverty: Empowering and Engaging theBasic Sectors in Governance; and (e) Local Gover-nance: Scaling up the Gains in Local Governance.

There were also efforts toward reframing the“20-20” campaign of the Task Force on the 20-20Initiative towards the MDGs. In accordancewith EO 145, “Pursuing the Rationalization ofthe Organization and Supervision of AgenciesUnder/Attached to the Office of the President”and its Implementing Rules and Regulations(IRR), the mandated functions of the Task Forceon the 20-20 Initiative has been subsumed underthe MC-IHDC. The MC-IHDC undertakesadvocacy campaigns that ensure integration ofthe country’s MDG commitments vis-à-vis the20-20 Initiative Framework.

Through funding assistance from the Office ofthe UN Resident Coordinator and UNDP, postersand brochures on the MDGs were also producedand disseminated to various sectors of society.

ADVOCACY INITIATIVESGovernment Initiatives

The first sparks of the government-led MDGadvocacy were lit when the MC-IHDC under theNEDA-SDC took the lead in drafting the firstprogress report on the MDGs. The report itself hasproven to be an important tool for awarenessraising, advocacy, alliance building, and renewal ofpolitical commitments at the country level, as wellas for building national capacity for monitoring.

Launched in January 2003, the First PhilippinesProgress Report on the MDGs has undergone aseries of broad-based consultations with develop-ment partners namely, government agencies, non-government organizations, private sector, academe,United Nations Country Team (UNCT) and otherdonor agencies. The report essentially containsstatus and trends, policies and programs, andchallenges/priorities for action. The report gave thenational status of the country vis-à-vis the MDGsfor the period 1990 (MDG baseline year) to 2000.

Taking off from the challenges and recommen-dations of the first progress report, the NEDA incooperation with the UNCT conducted a strategyworkshop on mainstreaming the MDGs among keypartners in the socioeconomic field on April 21,2003. The workshop aimed to start activities thatwill promote strategic interventions to mainstreamthe MDGs in the national and local developmentagenda. The workshop resulted in the following:(a) understanding the MDGs in the context ofMTPDP; (b) validation and prioritization of keyissues (e.g. on targeting, data/statistics, effective-ness of interventions, capacity building, budget andresources, localization, legislation, and institutionalarrangement) that should be addressed in order toattain the MDG targets; (c) identification of keyaction points; and (d) agreement on the institutionalarrangement for the MDGs including roles of lead


Legislative BriefingsBriefings among the legislators, both from the

Upper and Lower Houses of Congress wereundertaken in 2004. To further engage leaders andmembers of the Senate and the HOR in thediscussion of urgent and responsive legislation inachieving the MDG targets, the PLCPD, inpartnership with the United Nations ResidentCoordinator (UNRC), UNFPA, NEDA, SenateEconomic and Planning Office (SEPO), Congres-sional Planning and Budget Department (CPBD),Philippine Business for Social Progress (PBSP),People’s Legislative Advocacy Network (PLAN),and Social Watch Philippines held a series ofroundtable discussions (RTDs) entitled “Craftinga Legislative Agenda in Pursuit of the MDGs”from August 18 to September 22, 2004.

The roundtable discussions and the subsequentHOR Legislative Agenda Planning Conferencegave opportunities to increase the ranks of legisla-tive champions and policy advocates of MDGs.As a result, 12 key policy areas for reforms wereidentified as priorities for legislation and integratedin the Legislative Agenda for the 13th Congressnamely, fiscal and debt management, trade re-forms, agro-industrial development, populationmanagement, reproductive health and healthaccess, nutrition, quality education, gender equality,environment protection and natural resourcemanagement, and good governance and humansecurity.

More significantly, the HOR formally createdthe Special Committee on the MDGs with Con-gresswoman Nerissa Corazon Soon-Ruiz servingas Chair. The Special Committee will function asan oversight body of HOR in attaining the MDGs.It will: (a) ensure the passage of MDG-supportivebills; (b) study and assess the effectiveness ofMDG-supportive laws; (c) institute a progressreview of the MDG policy agenda every 18months; and (d) ensure budget allocation in theannual General Appropriations Act (GAA) forMDG-supportive programs.

Civil Society Organization InitiativesSocial Watch Philippines (SWP) led the CSOs

in ensuring the realization and localization ofMDGs. SWP stems from the Social Watch interna-tional network which aims to monitor nationalobligations to economic and social rights within thecontext of an international enabling environmentfor social development.

SWP’s advocacy on the MDGs started duringits participation in the United Nations InternationalConference on Financing for Development in 2000.Since 2002, SWP has been organizing a series ofisland-level as well as national level activities onvarious issues around social development, poverty and

more specifically, the MDGs. In March 2004, duringthe National Consultation of CSOs on the MDGs,two important roles of the CSOs were highlighted-as campaigners and as accountants. As campaigners,they must be steadfast in advocating for the MDGswhile as accountants, they must monitor and measureresults efficiently. An important outcome of thisconference was the Conference Declaration thatembodied the CSOs’ commitments to actively monitorthe implementation of the MDGs. Among the CSOinitiatives to be undertaken to ensure the realization ofthe MDGs are: (a) develop creative alternatives andshare best practices in achieving human developmentwithin the framework of democracy and humanrights; (b) pressure the national and local govern-ments to make MDGs the centerpiece of governmentpolicy on social and economic development; (c) usethe MDGs as benchmark for monitoring governmentperformance; and (d) encourage stakeholders togo beyond the prescribed MDGs and identify localgoals and targets that are relevant and responsiveto conditions and needs at the community down tothe household levels.

In line with their monitoring task, the SWPdeveloped the Social Watch Monitoring System.Designed for small area monitoring, i.e., provincesand municipalities, the system aims to localizesocial watching and ensure that national goals andstrategies are translated into concrete programsand projects at the local level. The system wasimplemented in pilot areas and resulted in apublication, “Tracking Progress: Accomplishmentsand Shortfalls in Local Social Development.”Cases documentation was completed along thefollowing concerns: quality of employment, repro-ductive health, health information system, peaceinitiatives and partnership between government andcivil society groups.

With assistance from the EC, the Action for


Economic Reforms (AER), an SWP partner, haslaunched a project to establish a local monitoring systemon the MDG, to improve local capacity to monitorprogress in the MDGs by developing a functionalinformation system appropriate to local needs andresources. Results of the study may be used to comple-ment and improve the DILG-endorsed CLPIMS.

The SWP is also pushing policy advocacy at thenational and local levels. At the national level, SWPprovided the civil society perspective duringgovernment-civil society consultations on theMDGs. SWP will soon publish its mid-term reviewof the status of the MDGs in the Philippines from acivil society perspective in time for the forthcomingMillennium Summit.

At the global level, SWP has joined the civilsociety campaign on the Global Call to Action againstPoverty (GCAP) which advocates the eradicationof poverty and achievement of the MDGs.

Business Sector InitiativesIn 2002, at the forum of business leaders and

social development practitioners hosted by theInternational Business Leaders’ Forum (IBLF) andthe UNDP, the Philippines was one of three coun-tries (the others being Brazil and South Africa)identified as models to demonstrate how the busi-ness sector engages government and civil societyfor social development and MDG attainment.

The Philippine Business for Social Progress(PBSP) led the business sector in crafting thePhilippines MDG Framework for Business Action,

through a series of consultations with businessexecutives and leaders of corporate foundations,corporate officers, CEOs and partners fromgovernment, NGOs and the donor community.

The framework for action shows how businesscan help attain the MDGs through three keyareas, namely, core business, social investment,and policy advocacy, along four major concerns–poverty, education, health and environment (Table19). These action points were presented in a CEOForum during the Corporate Social ResponsibilityExpo in July 2004 attended by representatives frombusiness, NGOs, the UN and multilateral/fundingorganizations and business agencies.

The business sector has completed and pub-lished an MDG-Business report entitled “Respond-ing to the Millennium Development Challenge: ARoadmap for Philippine Business.” This containsbest practices on corporate social responsibility asbusiness’ response to the MDGs, the action plansor strategic action points drafted by the squaretables of each MDG cluster, and the process ofdrafting the Business and MDG action plans.

The strategic action points above weretranslated into concrete programs and projects,which business can adopt to help achieve thePhilippine MDG targets. These flagship pro-grams/projects were presented in a series ofCEO Forums on Poverty, Education, Health andEnvironment to 55 CEOs, corporate officers andbusiness groups to create buy-in.

All 198 PBSP member-companies committed

Table 19: Specific Business Response to the MDGs

• Use advertising to advocate populationmanagement messages

• Promote health policies in theworkplace

• Advocate tax incentives for start-upbusinesses

• Popularize and put into action the UNreport on unleashing entrepreneurship

• Advocate nutrition education throughmass media

• Advance gender issues via mediacampaign

• Intensify environmental education

• Invest in strengthening local healthservice delivery system

• Develop and support social enterprises• Institutionalize and maximize

employee engagement• Adopt a health and nutrition program at

the community level

• Support direct school improvement• Invest in systems improvement• Support capacity building

• Adopt and invest in biodiversity actionprograms

• Promote and support sustainable waterutilization

• Invest in slum area development• Invest in creation of model communi-

ties in new areas of operation

• Invest in effective and sustainablereproductive health program

• Mainstream HIV/AIDS, TB andmalaria programs in the workplace

• Generate employment• Support small, medium and micro

enterprises• Popularize food fortification and

nutrition program in the workplace

• Utilize corporate brands to educate• Invest in systems improvement• Support capacity building

• Adopt sustainable production andconsumption

AREAS OFCONCERN

Business& Health

Business& Poverty

Business& Education

Business& Environment

COREBUSINESS

POLICYADVOCACY

SOCIALINVESTMENT


to support the Business and MDG Programs.Outside of this membership are seven companieswhich initially signified interest to adopt andsupport the programs. PBSP as the secretariatforged partnerships with some institutions to carryout the programs and committed to monitor andreport the progress of the business sector com-mitment to the MDGs.

Academe InitiativesThe National College of Public Administration

and Governance (NCPAG) of the University of thePhilippines is a major advocate in mainstreamingthe MDGs among schools of public administrationand the LGUs. Through the Association of Schoolsof Public Administration in the Philippines(ASPAP) network, it has helped build the capaci-ties of schools of public administration in thePhilippines to participate in and influence localdevelopment. Building on its proven institutionalcapacity, it has influenced better policy decisionson governance reforms.

As a contribution to the 10 to 10 Campaign ongovernance, particularly under Public AdministrationReforms: Enhancing the Administration of ServiceDelivery, the UP-NCPAG and ASPAP organizedthe national conference and general assembly for

schools and teachers of public administration lastOctober 2004. With the theme, “Public Administra-tion and the MDGs: Challenges and Reforms forEffective Teaching and Capacity Building forService Delivery,” the conference allowed partici-pants to: (a) discuss the need for collective actionfor reforms in view of the MDGs; (b) recognize therole of public administration in poverty alleviation;(c) set and enforce standards in public administra-tion; and (d) determine the core competencies forthe public administration curriculum. The confer-ence validated the need for academe and schools ofpublic administration to expand their roles and bemore relevant to good governance and MDGs.Their role as key providers of knowledge andinformation needs improvement for them to beresponsive to the needs of the LGUs where theyare operating.

An immediate offshoot of the national conferencewas the conduct of a regional conference on main-streaming the MDGs in local governance spear-headed by an ASPAP member-school, the Univer-sity of Northern Philippines (UNP) from November30 to December 1, 2004. The conference providedan opportunity to articulate the MDGs in thedevelopment plans of local government and NGOs,particularly in Vigan City, Ilocos Sur.


Local Level InitiativesWorkshops and consultations were held to

advocate MDGs at subnational levels. Targets ofadvocacy were regional officials who were in turnexpected to initiate advocacy activities in theirrespective regions. In April 2003, the NEDA andDILG jointly mounted the UNDP-funded RegionalWorkshop on Mainstreaming the MDGs and SocialDevelopment Management Information System(SOMIS). This was intended to increase level ofawareness and appreciation of NEDA and DILGRegional Directors on the MDGs and the SOMISindicators.

In 2004, through the collaboration of NEDA,POPCOM, DILG, UNFPA and MEDCO, a seriesof workshops on the MDGs and ICPD for nationaland regional partners were held in Cebu, Davaoand Manila. This aimed to deepen the knowledgeand understanding of national and regional partnersabout MDGs and ICPD and their linkage as well asformulate action plans to advocate and mainstreamMDGs and ICPD in planning, programming, moni-toring and evaluation processes. Multisectoral forawere subsequently conducted in various provinces ineach region. In Region V, their MDG RegionalTask Force took the lead in organizing theMultisectoral Fora on the MDG and ICPD+10 in

several provinces in the region. In attendance wereprovincial governors, vice-governors, mayors, vice-mayors, Sangguniang Bayan officials, local planningand action officers, and representatives of provincialoffices. Aside from UNFPA assistance, financialresources were mobilized from the regional officesof POPCOM, DOH and DENR to fund theseadvocacy activities.

Within Metro Manila and Region IV, NEDA,DILG and the UNRC provided briefing sessions onthe MDG in response to requests from variousgroups, i.e., regional, provincial, city and municipalplanners and program implementers, Leagues ofMunicipalities, Cities and Provinces.

Regional (Inter-Country) Level InitiativesThe Philippines attended the First Regional

Workshop on the MDGs in Asia and the Pacificorganized by the United Nations DevelopmentGroup Office (UNDGO) in cooperation with theUNDP in October 2002 at Vientiane, Lao PDR.Participating countries learned from the experi-ences and approaches of others in the region thathave completed their first MDG Report andinitiated advocacy campaigns. The workshop waseffective in clarifying conceptual and technicalissues relating to the MDGs as well as in identify-


ing key challenges that need to be addressed inorder to create a sense of national ownership forthe achievement of MDGs. Among other outputs,the workshop resulted in the development ofCountry Action Plans.

Jointly organized by UN ESCAP and UNDPand hosted by the Institute for Strategic and Devel-opment Studies, the Sub-Regional Workshop onDisseminating the First Regional MDG Report washeld on February 4-5, 2004 in Manila. The work-shop, attended by policy makers, NGOs and UNagencies from 10 East and Southeast Asian coun-tries, aimed to disseminate the regional report“Promoting the MDGs in Asia and the Pacific:Meeting the Challenges of Poverty Reduction.”The discussion on common issues and sharing ofcountry experiences paved the way for awarenessraising on the MDGs, pilot testing of key MDGmessages, further development of coalitions, andstimulating participant countries in accelerating theimplementation of national actions for MDGs.

The UNDP-Asia Parliamentary Policy AnalysisNetwork (APPAN) conducted a back-to-backworkshop and the Third APPAN meeting amonglegislators, public policy makers and parliamentarypolicy analysts from Asia and the Pacific on March15-16, 2004 in Manila. The workshop-cum-meetingtackled the parliament’s role in advancing theMDGs to address poverty alleviation. Sessionsincluded: The Millennium Declaration and theParliamentarians, Trade and Human DevelopmentPost Cancun and the Goal of the MillenniumDeclaration, and Organizing to Make a Difference:The Women’s Political Caucus. Philippine SenatePresident Franklin Drilon and Speaker of the Houseof Representatives Jose de Venecia, Jr. gave thewelcome address.

In August 2004, a follow-up regional workshop onthe MDGS in Asia-Pacific was held in Manila, jointlyorganized by UNDP, UNDGO and Asian Develop-ment Bank. The workshop provided an intercountryforum for experience sharing and stocktaking ofMDG action plans that countries have prepared andhave been implementing. A significant output of themeeting was the 2005 work plan of each participat-ing country on the MDG agenda especially withreference to 2005 Millennium Summit + 5. ThePhilippine delegation, through the NEDA-SocialDevelopment Staff (SDS) presented the 2004-2005MDG Country Action Plan including accomplish-ments based on the 2003 Action Plan preparedduring the 2002 Vientiane Regional MDG Work-shop. In attendance were government, civil societyorganizations, donor communities and businesssector representatives from China, India, Indonesia,Iran, Malaysia, Pakistan, Sri Lanka, Thailand,Vietnam and the Philippines.

The 2004-2005 Philippines MDG Action Plan

includes the following activities aimed at increasingthe level of appreciation of the broader public on theMDGs: (a) nationwide essay writing contest; (b)MDG songs produced and disseminated to developpublic opinion supportive of the MDGs; (c) mediafor MDGs and advocacy to increase media report-age on the MDGs; (d) orientation and training ofnational government officials including governmentInformation Officers; (e) MDG localization inplanning, budgeting, and replication of best prac-tices; (f) popularization of WASH (Water, Sanita-tion and Hygiene for All) Caravan; (g) monitoringthe MDGs; and (h) MDG policy agenda forMindanao to look at critical issues and challenges inthe region related to attaining the MDGs.

The country also participated in the conferenceon “Translating the MDGs into Action throughWater Supply and Sanitation (WSS)” organized bythe Water and Sanitation Program-East Asia and thePacific (WSP-EAP) in February 2003 in Rayong,Thailand. The conference enabled participants tocollectively understand how improving WSS cancontribute to achieving various MDGs in East Asiaand identify implications of achieving the MDGs for


sector strategies and modes of operation includingsynergies with other sectors in the EAP.

Lastly, the country participated in the InceptionSeminar/Workshop in Upgrading Statistical Capa-bilities on MDG Indicators held at Kerala, India onDecember 13-15, 2004. The Seminar/Workshopwas organized by the United Nations StatisticalInstitute for Asia and the Pacific (SIAP). As a resultof the Seminar/Workshop, the participants, com-posed of 40-45 heads of national statistical officesand UNDP MDG focal points, were able to in-crease their knowledge and appreciation of themain statistical challenges related to the targetsand indicators and the MDG reporting process;and came up with an action plan for improving theavailability of MDG indicators including timeliness,required levels of disaggregation as well as theirreliability.

LOCALIZATION INITIATIVESThe national government provides an enabling

environment for the LGUs to be aware, committedand capacitated to address the MDG targets in thelocality. The MDG localization initiatives are guided

by the MDG localization framework (see Annex1) developed by the DILG, the primary governmentagency responsible for localizing MDGs. Theframework identified a set of desired outcomesfor an MDG-responsive LGUs which include thefollowing: (a) a local development plan that includesMDG targets with increasing budget for MDG-related programs, projects and activities (PPAs);(b) local policies that facilitate the achievement ofthe MDGs; (c) improved delivery of basic servicesand continuing replication of good practices;(d) local monitoring system which is able to trackdown accomplishments vis-à-vis targets; (e) LGUshaving ownership and accountability of the MDG-related PPAs; and (f) inclusion of accomplishmentof MDG targets as one of the performancecommitments of the LGUs.

To attain the desired outcomes, various initia-tives have been carried out both at national andlocal levels which can be categorized according tothe following major interventions: (a) policyformulation; (b) tools development; (c) capacitybuilding, and (d) documentation and replication ofgood practices.


Policy FormulationIssuances of policy guidelines, memoranda and

resolutions were made at national and subnationallevels. A significant milestone is the issuance ofDILG Memorandum Circular No. 2004-152 “Guideto Local Government Units in the Localization ofthe MDGs” dated November 10, 2004, whichprovides the following: (a) menu of PPAs perMDG goal and target to guide LGUs in respondingto MDGs; (b) diagnosis of local situation usingexisting local indicator and monitoring system;and (c) call for documentation and replication ofgood practices.

To monitor the implementation of MDGs atsubnational levels, LGUs were enjoined to use the“Policy Guidelines for the Adoption of the Core LocalPoverty Indicators in Planning” as contained in theDILG Memorandum Circular No 2003-92 dated April29, 2003. The guidelines were meant to aid the localgovernment units in assessing and understandingpoverty and its dimensions at the barangays, munici-palities, cities and provinces to be able to formulateand implement their local poverty reduction action plan.

Various resolutions were also issued by theRegional Development Councils (RDCs), to wit:(a) RDC IV Memo Circular 2001-02 “Instituting aPlanning and Budgeting Measure to Ensure thatNutrition Program Interventions are Funded”;(b) RDC XII Resolution No. 53, Series of 2003,“Approving the Mainstreaming of the MDGs in theDevelopment Planning Processes at the Regional andLocal Levels”; (c) RDC V SDC Resolution 05-01Series of 2004, “Adopting the 2015 MDGs to Includethe Monitoring, Review and Evaluation of the SetGoals and Integration of MDG Monitoring in EachLine Agency’s Monitoring System”; and (d) RDC VResolution No. 05-21 Series of 2004, “Approving andEndorsing the Localization and Mainstreaming of theMDGs and the ICPD in Development Processes atthe Regional and Local Levels.”

As a result of the UNFPA-funded regionalworkshops on the ICPD and MDGs held in Cebu,Davao and Manila, all RDCs issued in their respec-

tive regions a resolution “Enjoining Support to theLocalization of the MDGs and the Celebration of the10th Anniversary of the International Conference forPopulation and Development (ICPD).”

Tools DevelopmentThe DILG is working very hard to localize the

MDGs contained in DILG Memo Circular No.2004-152. In consultation with oversight and imple-menting government agencies and the Leagues ofProvinces, Municipalities and Cities, it developed anLGU guide to localize the MDG.. The LGU guideoptions recommend specific projects and activitieswhich the LGUs may implement to address MDGtargets under each goal. With these options, LGUsare expected to increase their budgetary allocationfor basic social services responsive to MDGs.

Led by DILG, there are also ongoing consultationmeetings to discuss the guidebook on simplifiedplanning and budgeting. This guidebook shall be anMDG-responsive local planning and budgetingdocument that will help local planners and planningadvocates simplify the integration of planningrequirements including the MDGs.

A number of local monitoring tools has beendeveloped and are already being used to monitorpoverty reduction at the local level, i.e., MinimumBasic Needs-Community-Based Information System(MBN-CBIS), Integrated Rural Accessibility Planning(IRAP), Local Government Performance Measure-ment System (LGPMS), and Core Local PovertyIndicator Monitoring System (CLPIMS). It should benoted that a consensus was made among variousgovernment agencies to review existing localpoverty monitoring systems and establish a set ofcomparable core indicators across monitoringsystems. CLPIMS was the end result of thisinitiative which was approved by the National Anti-Poverty Commission (NAPC) en banc in 2003.Through DILG Circular No. 2004, LGUs, espe-cially those which have no local monitoring tools,are encouraged to use the CLPIMs (13+1 indica-tors) to assess their local situation and gatherbaseline information to identify interventions thatwill help achieve the country’s MDGs by 2015.

Capacity BuildingTo carry out the task of localizing MDGs, LGUs

need to be equipped with skills in planning, design-ing, implementing and monitoring local projects.Over the past years, capacity building interventionsfor LGUs have been provided through the LocalGovernment Academy. Jumpstarting Course andLooking Forward Course for newly elected andreelected officials, respectively, were linked to theattainment of the MDGs, focusing on leadership andaccountability, advocacy capacities, resourcemanagement, and improvement of technical skills.


Documentation and Replication of Best PracticesAn inventory of MDG best practices in

Mindanao was developed through the partnershipof DILG with MEDCO and UNDP. The inventoryshowcases model practices, which LGUs mayreplicate in their respective localities. Examples ofthese practices are the following: partnershipbetween city government and an NGO to combatHIV/AIDS; improving local revenue generation forthe delivery of basic services; promotingvolunteerism and self-help in communities; capac-ity building of households to address minimumbasic needs; and introducing a reward system toimprove service delivery of barangays.

There are also NGOs which initiated campaignsto address specific MDG targets. In the case ofMolave Development Foundation, Inc., it is under-taking an information, education, communication and

advocacy campaign to raise public awareness onwater and sanitation. One activity that it hasdeveloped and successfully piloted is the WASHCaravan, which carries messages, products andservices on WASH to communities. The caravanwas successfully launched in 2003 in the slum areaof BASECO in the Port Area of Manila.

In 2004, 12 cities were selected as sites forpilot testing strategies for MDG localization,namely: Marikina, Muntinlupa, and Pasay in theNational Capital Region; Antipolo, Tagaytay, SanJose del Monte, Science City of Munoz, andSorsogon in Luzon; Calbayog and Mandaue in theVisayas; and Iligan and Samal in Mindanao.These areas were chosen because of theirpotential for success as well as their capacity toinfluence and trigger multiplier effects in sur-rounding municipalities.

Naga, a medium-sized city, is made up of 27 barangays, covering a total of 77 sq. kilometers. Notwithstanding its geographi-cal disadvantage, i.e. a landlocked location in the middle of Bicol flood plain and distant from Metro Manila, Naga went on to be oneof the more innovative Philippine cities earning the distinction of being one of the most awarded and recognized cities in the country.

The city’s core philosophy of “growth with equity” endeavors to simultaneously promote economic development and sustainimplementation of pro-poor equity enhancing projects. Underpinning this philosophy is Naga’s model of good governance, to wit:(a) progressive leadership building prosperity for the community at large with an enlightened bias for the poor; (b) functionalpartnership with the private sector and civil society guided by principles of role definition, resource complementation, andspecialization; and (c) people participation through the Naga Socialized Program for Empowerment and Economic Development(SPEED), Empowerment Ordinance, and i-Governance (Inclusive governance, Information openness, Interactive engage-ment, Innovative management). As important as MDGs is the empowering process that goes with them. Poverty, after all, is notmerely lack of income or low survival rates but also the disempowerment of the individual.

Localizing the MDGsNaga City’s efforts in localizing the MDGs include: (a) translating the targets and indicators through the Naga City People’s

Council; (b) setting the baseline through interpolation of regional or provincial figures in the absence of data; (c) reorienting thereporting system to match the MDG indicators since the MDGs are already adequately covered in its poverty alleviation program;and (d) monitoring and evaluating the MDGs on a sampling basis with full surveys reserved during election years to serve asbenchmark for the new administration.

Kaantabay sa Kauswagan (Partners in Development) ProgramNaga’s efforts to attain the MDGs can best be illustrated by the Naga Kaantabay sa Kauswagan (Partners in Development)

Program. The Kaantabay sa Kauswagan is a social amelioration program primarily designed to empower squatters and slumdwellers which comprise some 25 percent of the city population residing in 21 urban villages of the Naga City. Quarterbacked bythe Urban Poor Affairs Office, the Program has now evolved into what is nationally and internationally considered as the Philippine’sbest urban poor program, having been featured in two editions of the League of Cities-sponsored City Sharing Workshops and inan international gathering in Surabaya, Indonesia; and was site visited by Indian local government officials.

Since its inception, the program has disposed a total of 33 hectares of private and government-owned lands to a total of 2,017urban poor families, 617 of them in 1994 alone, which already represent around half of the total urban poor population in the city.In addition, it has upgraded 27 urban poor communities hosting around 2,700 families and secured, as part of its land bankingstrategy, a total of 25.4 hectares for future housing projects of the city government.

More importantly, it has institutionalized a functional tripartite mechanism for permanently settling land tenurial problemsbetween landowners and land occupants; elevated living conditions of the urban poor through on site area upgrading projects forblighted urban poor communities; established intra-city relocation sites for victims in extreme cases involving eviction anddemolition; and provided them with livelihood opportunity by introducing a livelihood component to the program to cushion theimpacts of urbanization.

Source: Localizing the MDGs: The Naga City Framework, a paper presented by Mayor Jesse M. Robredo at the Joint Session of the United Citiesand Local Government (UCLG) and the UN Habitat at the World Urban Forum held in Barcelona, Spain on 17 September 2004

Localizing the MDGs: The Naga City Framework


advocacy, especially at the local level, have to beenhanced. The MDG localization process mustensure the active participation of the people in thecommunity in the planning and decision-makingprocess. They should be treated not as merebeneficiaries but as partners in development.

Data emerging from reports like the PhilippinesProgress Report on the MDGs, the BusinessSector Report and others have to be disseminatedto build and/or improve level of awareness andgalvanize public opinion in support of MDG-relatedpolicies and programs.

• Improve efficiency and increase spendingfor MDGs

Given the enormous financial requirements ofthe MDGs, and with increasing share of the LGUsin the internal revenue allotment and their account-ability on basic services, it is critical to make LGUsincrease their spending for MDGs. To realize this,they must first be provided access to knowledgeand best practices in providing BSS and otherMDG-related services. LGUS are encouraged tomake full use of the inventory of best practicesalready documented by DILG. They may alsopartner with existing successful campaigns ofgovernment and NGOs, i.e., popularizing andimplementing the WASH Caravan.

LGUs have to be given training on local planningand budgeting incorporating MDGs. Nationalgovernment should also help mobilize resources tosupport poor LGUs in implementing MDGs.

MDGs should not be looked at as a new set ofgoals and targets that require separate and additionalactions. A broad range of initiatives by various develop-ment partners has been supportive of the goals andtargets. The task is to secure a sharper focus andspecific time-bound results based on the MDGs. Thestrategies for advocating and localizing MDGs aredynamic and will continue to evolve based on variousexperiences gained at the regional, national and locallevels. Following are the challenges that have to bedealt with and the priority actions to be implemented.

• Develop an Advocacy PlanMuch has already been accomplished to make

the UN development partners aware of the MDGsbut a lot still needs to be done to reach the broaderpublic and get them to be active partners workingand advocating for the MDGs. An Advocacy Planshould be in place to harness the synergy of advo-cacy initiatives of various stakeholders at theregional, national and local levels. Priority attentionshould be given to areas where MDG informationare most needed, i.e., ARMM, CAR, Region V.

• Sustain and scale up campaign for localizationInitiatives of the LGUs, CSOs and the business

sector need to be sustained and scaled up to coverall provinces. There is a need for wider partnershipand collaboration with a range of actors and stake-holders especially those whose contributions arecritical to mobilize commitments, resources andcapacities for advocacy. Capacities of partners in



Meeting the MDGs does not always meanadditional resources. Efficiency in spending hasto be improved to maximize results out of limitedresources. Studies have shown that LGUs andlocal partners are good at this. It has beendocumented that LGUs are able to constructpublic schools cheaper than the DPWH does.Construction of sanitary toilets has been re-ported to cost less through the CIDSS projectthan when implemented by the DPWH.

• Continue documentation of best practiceson MDGs

Innovative, indigenous and efficient practiceshave been demonstrated in the provision of basicsocial services. Hence, there should be continu-ing documentation of these practices so thatothers may learn from these lessons and repli-cate them in their locality and network.

• MonitoringThere is a need for a systematic and sus-

tained tracking of progress of the MDGs at thelocal level - disaggregated by sex, location, andpopulation groups. Stakeholders will have to beregularly updated of the status and shortfallsto keep the focus on the MDGs.

LGUs have to be assisted to enhance theirmonitoring capacities and in the process appreci-ate the necessity of generating and analyzing

data for planning and programming. Theircapacities in data gathering and poverty diagno-sis should be improved, i.e., through conduct oftrainings for the CLPIMs. MDGs need to bepart of performance targets of local officials inthe delivery of basic services allowing them totake corrective actions to improve performance.LGus, however, must be assisted on how totranslate MDG targets into local targets.

Aside from the LGUs, CSOs must continueto engage in monitoring status and trends ofMDG targets and tracking LGU performance.As partners, the constituents themselves musthelp in monitoring whether LGUs are performingtheir mandates, i.e., attending to thecommunity’s basic needs.

• Business sector and CSO participationCritical partners such as the CSOs and the

business sector should continue to collaboratewith government in achieving the MDGs.CSOs must continue to be MDG advocates andmonitors. In particular, Social Watch needs topursue and expand its monitoring beyond theinitial pilot areas and refine the system toensure its impact on policies and programs.The business sector should firm up businessaction points and implement identified MDG-related projects on poverty, education, healthand environment.


FINANCING THE MDGs

Sector/Year 2001 2002 2003 2004

Economic Services 15,982,070 45,484,830 52,853,500 58,700,890

Social Services 28,979,110 26,352,690 34,001,700 36,135,990

Defense - - -

General Public Services 63,375,820 69,580,140 73,954,470 78,545,740

Total Productive Expenditures 108,337,000 141,417,660 160,809,670 173,382,620

Table 21: Distribution of Public Expenditures, Local Government UnitsBy sector, 2001-2004 (in thousand pesos)

Source: DBM, Budget of Expenditures and Sources of Financing

Sector/Year 2001 2002 2003 2004

Economic Services 88,282,778 94,462,976 96,562,628 101,734,136

Social Services 157,826,071 178,695,223 181,036,460 192,407,806

Defense 33,946,222 38,114,414 44,423,149 43,846,724

General Public Services 88,990,702 91,454,991 101,688,379 97,753,380

Total Productive Expenditures 369,045,773 402,727,604 423,710,616 435,742,046

Table 20: Distribution of Public Expenditures, National GovernmentBy sector, 2001-2004 (in thousand pesos)

Source: DBM, Budget of Expenditures and Sources of Financing

Sector/Year 2001 2002 2003 2004

Agriculture, agrarian reform and natural resources 308.99 126.77 97.15 59.97

Governance and institutions development 164.18 41.71 141.54 18.96

Infrastructure development 902.72 662.28 90.24 468.12

Social reform and development 46.74 318.55 113.69 58.13

Industry and Services 247.29 2.98 2.02 -

Total Commitments 1,670.36 1,152.28 444.64 605.24

Table 22: ODA Commitments, By sector, 2001-2004(US$ million)

Source: NEDA-PIS

Total government expenditures on social services for 2001 reached PhP158 billion or 27.5 percent of thetotal national government expenditures. For 2002, social services made up 30 percent (PhP179 billion) of thetotal national government expenditures. Expenditures for these services comprised 27.6 percent (PhP181billion) of the total national government expenditures in 2003 and 44 percent (PhP192 billion) in 2004.

For the past years, Education, Culture and Manpower Development consumed majority of the expendi-tures, which on average made up about 70 percent of the total expenditures of the national government onsocial services. Social security, welfare and employment came in next with about 20 percent of the totalnational government expenditures on social services in 2001-2004.

Meanwhile, data on expenditures for social services of LGUs for the period 2001-2004 indicate mixedresults. In 2001, it reached a high of PhP29 billion, but decreased in 2002, then gained a tremendousincrease in 2003 at PhP34 billion followed by PhP36 billion in 2004.

For the past four years (2001-2004), ODA for the social reform development sector has been fluctuating.In 2001 for instance, the total ODA committed to the sector was US$ 46.74 million, a meager 2.8 percent oftotal ODA for that year. On the other hand, in 2002, total ODA that went to the social reform developmentsector reached a total of US$ 318.55 million, which comprised about 27.32 percent of total ODA for thatyear. In 2003 (US$113.69 million) and 2004 (US$58.13 million) ODA committed to the sector declined.


Several projects were completed within the period. For the sector with direct effects on theMDGs, the Special Zone of Peace and Development Social Fund (SZOPAD Social Fund) Project,completed facilities which include: 219 Madrasah classrooms, 131 school classrooms, 1,198 meters ofpedestrian bridges, 45 Barangay Health Stations, eight timber ports, and one training center. Alsocompleted were the renovation of five Madrasah classrooms, 41 school classrooms, one BarangayHealth Station, two small irrigation systems and three dug wells.

The WB-assisted Women’s Health and Safe Motherhood Project produced the following outputs:(a) upgraded obstetric units in 70 Rural Health Units (RHUs) and 74 Barangay Health Stations(BHSs) in 36 provinces, including the provision of furniture and equipment; (b) trained 2,450 PublicHealth Providers, 26 Project Coordinators, 16 Trainors on the Syndromic Approach to Diagnosis andManagement of Reproductive Tract Infection/ Sexually Transmitted Disease (RTI/STD) care in 10provinces in Visayas and Mindanao and public health workers in the 70 RHUs and 74 BHSs in 36provinces; and (c) constructed and provided 10 RTI/STD clinics with diagnostic equipment in the 36provinces.

There are several ongoing projects which are directly related to the attainment of the MDGs.Under the health sector, health facilities in five district hospitals were upgraded/renovated whilehealth facilities in one district, three rural health units and seven barangay health stations werereplaced/constructed under the Integrated Community Health Service Project. In addition, variousequipment for two provincial hospitals and 15 district hospitals were procured and delivered.

As the share of health expenditure to GNP had continually decreased over the last decade (from3.5 percent in 1997 to 2.7 percent in 2002, according to National Health Accounts), the share fromprivate sources of healthcare had grown over the years (a 7.9 percent increase was noted by NHA in2002). The assistance from these private sources, which included private insurance and healthmaintenance organizations (HMOs), helped realize the MDGs through contributions that cover healthcare goods and services, especially personal health care funding, which comprised 76.9 percent ofthe overall health care needs of Filipinos.

In the education sector, 1,523 classrooms were constructed/rehabilitated, 475,872 sets/units oftables and chairs were delivered to schools nationwide while 25,882 schools were provided withfunds for the repair and maintenance of school buildings under the Social Expenditures ManagementProject I. In the Secondary Education Development and Improvement Project, 3.2 million textbooksand 54,526 teacher’s manuals were delivered and supplied.

Under the Third Elementary Education Project, trainings were given to 108,066 teachers and 731district supervisors. A total of 12,837 school managers attended various division-based trainings while72,088 trainees attended various trainings on support component. Moreover, more than 15 millioninstructional materials and textbooks were delivered.

The private sector and private voluntary organizations were likewise mobilized to assist thegovernment in providing the necessary goods and services to augment the resources of the Depart-ment of Education. For instance, school buildings were constructed at a lower cost due to the subsidyextended by the members of the Filipino-Chinese Chamber of Commerce and Industry, Inc. Underthe Adopt-A-School program, private sector support netted over PhP 270 million from September2002 to January 2004. To improve and/or maintain the school facilities, community support throughthe parent-volunteers enabled the rehabilitation of classrooms and laboratories, among others. By end2004, there were about 16,086 elementary and secondary schools with participating communityparent-volunteers.

To augment the resources of the LGUs, several relending windows from GFIs offered loans for,among others, Water District Development, Mindanao Basic Urban Services, Urban Water andSanitation Project and Fund for Technical Education and Skills Development. Furthermore, thenational government supported programs and projects of LGUs through a matching grant componentfor investments in health, water supply and environmental protection, among others. From late 2002until August 2004, the national government (under the Municipal Development Fund Office PolicyGoverning Board Resolution No. 03-11-29-2002 dated 11 November 2002) made available grant fundsto match LGU loans for social development projects which included school buildings, health centers/hospitals, water and sanitation. Depending on the income class level of the LGUs, grant funds of upto 50 percent can be extended to the poorest LGUs. In a way, this subsidy has advocated to theLGUs the 20/20 initiative which was promoted by the national government.


Challenges and priorities for actionUnder the legislative agenda are the following

tax measures:a. indexation of the excise tax on “sin” taxes

like tobacco and alcohol;b. rationalization of fiscal incentives being

granted by different government incentive-givingagencies;

c. general amnesty for corporations andindividuals;

d. review of the VAT system to make it attunedto the present environment;

e. tax on telecommunication companies andservices;

f. excise tax on petroleum products;g. adoption of gross income taxation; andh. institution of a reward-incentive system

among revenue-generating agencies of the govern-ment.

The government intends not just to maintain orincrease the allocation for basic services but moreimportantly, to expand the economic pie which isthe base of resource allocation. In effect, it isexpected that by providing productive work andemployment to the poor, they will be able tocontribute to the provision of their own health,education and other basic services.

• LGU, private sector and civil society supportRecognizing the limitation of the national

government in solely financing the MDG needs andat the same time the potential of LGUs as frontlineservice providers, the private sector with theirexisting philanthropic activities, and the work ofcivil society groups with the grassroots, a morecoherent and coordinated cooperation among thesestakeholders is needed.

To finance the difference between the Plan’stargets and the fiscal resources of the government,greater private sector involvement, LGU support,and civil society support are vital in meeting thesaid targets. For instance, in housing finance, only15 percent of the demand will be shouldered by thenational government. The remaining need will becovered by government financial institutions (GFIs)and social security institutions (SSIs) which haveearmarked a total of PhP271 billion for the housingprojects to some 1.1 million households out of the3.7 million housing demand. NGOs, like Habitat forHumanity and Gawad Kalinga, can assist inhousing provision. Meanwhile, LGUs will beprimarily responsible for environment projects suchas reforestation and coastal resource management.The private sector will be the engine in the im-provement in the digital infrastructure with the

With the present levels of poverty and unem-ployment and the fiscal problem, the government’stargets and strategies in the MTPDP are setbeyond the current performance levels so thatpoverty would be reduced significantly and greaterprosperity is achieved at the end of the six-yearperiod in 2010. The government wants to bench-mark itself against the performance of its Asianneighbors who are already growing at rates ofaround six to eight percent such as Thailand (6.4percent, S1 2004), Malaysia (7.8 percent, S12004), and even Vietnam (7.1 percent, 2003).

Growth needs to accelerate to at least seven toeight percent by 2009 if the Philippines is tosignificantly reduce unemployment and povertyincidence. With a seven percent GDP growth by2010, unemployment rate will be reduced to 8.9percent by 2010, relatively at par with the pre-1997unemployment rate of 8.6 percent. Povertyincidence (by family) target will also decline to17.9 percent and subsistence incidence rate (byfamily) to 8.9 percent by 2010. These are consis-tent with the MDG commitment of halving extremepoverty by 2015 from 1991 levels. In 1991, povertyincidence rate stood at 39.9 percent while subsis-tence incidence stood at 20.4 percent. Unemploy-ment and poverty will not be addressed if theeconomy grows merely by its historical growth ofaround four percent.

• Revenue GenerationTo expand and sustain the programs and

projects that are related to the attainment of theMDGs, among others, there must be an efficientand effective means of generating revenues thatcan meet the expenditure requirements.

The government revenue program is anchoredon both increasing tax collection and savingsgeneration. The action plan for revenues includesboth administrative and legislative measures.Under the administrative measures, the followingare included:

a. periodic adjustment in fees and charges toensure cost-recovery;

b. tariff rate adjustments including the increaseof duty for petroleum products from three percentto five percent;

c. innovative sources of wealth like oil and gaswells exploration, privatization of the NationalPower Corporation, and creation of economicenclaves to capture long-term investors; and

d. improved enforcement of tax laws particu-larly in the Bureau of Internal Revenue and theBureau of Customs.


government providing only the policy environmentthrough the passage of both legislative and execu-tive measures. For projects that are also supportiveof the Plan but can no longer be funded by nationalgovernment resources, agencies will identify otherfinancing strategies which can include fundingfrom ODA or through the build-operate-transfer(BOT)-type schemes aside from LGU and GOCCfunding.

• Expansion of microfinance services to the poorThe high cost of expanding the coverage of

microfinance services has hampered the potentialoutreach of the microfinance institutions (MFIs).The government must, therefore, find ways andmeans to support the expansion efforts of existingMFIs and strengthen the capability of new MFIsespecially those in hard-to-reach areas.

To further increase the earning potential of thepoor, the government financial institutions, socialsecurity institutions, and microfinance institutionswill also provide resources to fund the government’stargets in micro, small and medium enterprisedevelopment and housing. The Development Bankof the Philippines (DBP), Land Bank of thePhilippines (LBP), National Livelihood SupportFund (NLSF), Small Business Corporation(SBCorp), Trade and Industry DevelopmentCorporation (TIDCORP), Quedan Corporation(Quedancor), and Social Security System (SSS)have committed PhP273.12 billion to the compre-hensive credit program for small and mediumenterprises (known as the SULONG program).

Specifically for microfinance, the People’sCredit and Finance Corporation (PCFC), SBCorp,the Technology and Livelihood Resource Center(TLRC), Quedancor and LBP can providePhP43.5 billion to support an additional three

million microfinance borrowers/clients. With thegovernment’s initiative and support, additionalresources are expected to pour in from privatemicrofinance institutions.

Technical assistance in the form of grants willcontinue to be provided to qualified MFIs in orderto lessen their high cost of expansion. The People’sDevelopment Trust Fund (PDTF) will be activatedas a source of funding for capacity buildingactivities related to microfinance. On the otherhand, foreign donors like the AusAID, UNDP,IFAD, among others, will continue to be tapped toprovide added resources.

• Pursuit of projects with high economicimpact

The government must continuously strive toenlarge the economic pie in order for the MDG-related activities to gain a bigger share in absolutequantity. Economy-expanding projects on a nationalscale must, therefore, be pursued.

Priority major projects with great impact on thewhole economy have already identified possiblefunding sources. For instance, the DiosdadoMacapagal International Airport (DMIA) will befunded by the Clark Development Corporation; theSubic International Port, North Luzon Expressway(NLEX) and Clark-Subic-Expressway by theJapan Bank for International Cooperation (JBIC);and the Northrail by a loan from China. Such majorprojects are expected to accelerate the economicexpansion of the country.

• Right-sizing the bureaucracyReducing the cost of governance without

sacrificing efficiency and effectiveness will bepursued in order to save resources that can bechanneled to MDG-related activities, amongothers.

To decrease the cost of the bureaucracy, thegovernment has instituted austerity measures in itsoperations. It is also implementing a reengineeringprogram that will weed out redundant agencies andrationalize these agencies into an efficient andeffective entity. A loan to fund this reorganization/reengineering program is being worked out. Tocomplement these initiatives, there will also be amoratorium on creating government corporations.An exception is the establishment of the PhilippineInfrastructure Corporation which is intended tojump-start strategic infrastructure projects.

• PrivatizationThe government will relinquish some sectors to

private business in recognition of their inherentcomparative advantage in the field. However, itwill be ensured that such undertaking will not be tothe detriment of the general public welfare.


The most pressing task of government is tosettle its debt and obligations which is taking up ahuge portion of the annual national budget. Thefirst priority is to clean up the books of the NPCwhich will entail an initial increase in power ratesto reflect their true cost. Inter-grid, intra-grid, andinter-class cross-subsidy will be removed by 2005to eliminate market price distortions. This willlower the costs of electricity paid by industrial andcommercial consumers, but will increase the costof power paid by residential consumers who arecurrently benefiting from the cross-subsidy. Thegovernment will also introduce time-of-use pricingwhich will allow the NPC and eventually theGENCO investors to charge the true costs ofelectricity at different times of the day.

However, over time, power rates are seen to fallwith greater competition and lower capacity feepayments arising from the privatization of generatingcompanies and the establishment of the WholesaleElectricity Spot Market (WESM). This will allowend-users with a monthly average peak demand ofat least one MW to purchase electricity directlyfrom generators starting July 2006 for Luzon. Thegovernment will also seek to reduce stranded costsby concluding ongoing negotiations for the remainingnine independent power producer contracts.

• Tapping the remittances of the OverseasFilipino Workers (OFWs)

Remittances from OFWs have continuouslyhelped the national economy in maintaining itsforeign currency reserves while at the same timeimproving the standard of living of the familiesthese workers left behind. According to theBangko Sentral ng Pilipinas (BSP), remittancefrom both land- and sea-based OFWs amounted toUS$ 8.5 billion in 2004, 11.8 percent higher thanthe previous year and the highest since the ’70s.These remittances, which pass through the formalbanking sector, provide an opportunity for both thegovernment and the families of the OFWs toprovide both direct and indirect avenues in attainingthe MDGs. For instance, welfare assistance likehealth insurance to OFWs can be extended to theirimmediate families and relatives. OFWs can alsobe asked to contribute to LGU or NGO projectslike supplying potable water, constructing schoolbuildings, and others. On the other hand, remit-tances and/or savings through the formal bankingsystem can be used as additional funds for lendingof microfinance institutions to the entrepreneurialendeavors of the poor, particularly women.

To fully tap the potentials of these remittances,the government will advocate a mutually beneficialcollaboration and cooperation with the OFWs and/or their organizations, the local banking sector andthe local government units, among others.


Effective monitoring of the MDGs is contingenton the availability and level of disaggregation ofdata. An effective monitoring tool is also necessaryin order to provide policy makers, journalists, civilsociety activists, academicians and the generalpublic the necessary information on the status of theMDGs, as well as data from a variety of sectorsincluding health, nutrition, education, demography,economy, communications and environment.

The Social Development Management Infor-mation System (SOMIS)

Presently, the Social Development ManagementInformation System (SOMIS) is being utilized forthe monitoring of various international commitmentson human development including the MDGs. TheSOMIS is an IT-based system that enables thetracking of a set of indicators and supporting dataand information, describing the state of the country’ssocial development situation. It puts together datafrom various surveys, censuses and administrativereports of different agencies in charge of collectingdata and/or service delivery related to social devel-opment. Indicators consolidated based on inputsfrom various national government agencies are alsoincorporated in the SOMIS. Policies and programsrelevant to the international commitments are alsoposted in the SOMIS website. SOMIS data can beused by the various government agencies, research-ers, policy makers, and the public to assess theperformance of the country on a regular basis.

The DevInfo: Tool for monitoring the MDGsThe SOMIS, although an effective tool for

monitoring the indicators in various internationalconferences including the MDGs, does not allowusers to manipulate data, i.e., create tables, chartsand maps. To be able to do this, the DevInfosoftware will be utilized. The DevInfo is a user-friendly software derived from the ChildInfosoftware developed by the UN. Its features allowusers to create tables, charts and maps through theuse of easy-to-use toolbars and menus. Otherfeatures of the system are:

a. It compiles all national data on humandevelopment into one system;

b. The data is easily retrievable;c. It enables one to analyze trends over time;d. It has multiple sources of data;e. It has scope for countries to add their own

indicators to the 48 MDG-related global indicators;and

f. It makes monitoring of progress easier.

MONITORING


To provide and allow data to be readily avail-able for the monitoring of the country’s progresstowards the attainment of the MDGs, the NationalStatistical Coordination Board (NSCB), throughNSCB Resolution No. 10 Series of 2004, “Adop-tion of and Enjoining Data Support to the Millen-nium/MDG Indicators” was designated as therepository of the MDG indicators. As such, itserves as compiler and administrator of the MDGdatabase. It has assessed and compiled theindicators on the MDGs, and posted it at theNSCB website (www.nscb.gov.ph/stats/mdg).Aside from having the MDGs available online, theBoard will also make use of the DevInfo as therepository and tool for monitoring the MDGindicators. The National Statistics Office (NSO)generates statistics to be used through censusesand surveys while the NSCB assists NEDA incompiling the needed data from various sources.

NEDA, on the other hand, is already using theDevInfo software and maintains a database onthe MDG indicators linked to the NSCB website.Other international commitment indicators (Inter-national Conference on Population and Develop-ment, International Conference on Shelter andHuman Settlements, World Summit for SocialDevelopment, World Fit for Children, and WorldConference on Women) housed at the SOMISare already being transferred to the DevInfodatabase. The use of the DevInfo is alreadybeing advocated to the NEDA Regional Officesas well as to the LGUs.

Social Watch Monitoring SystemAmong the crucial roles of the CSOs is the

monitoring of national compliance to internationalhuman development commitments. Leading theCSOs in the realization of the country’s commit-ments to the Millennium Declaration, SocialWatch Philippines (SWP) developed the SocialWatch Monitoring System. The system aims tolocalize social watching and ensures that nationalgoals and strategies are translated into concreteprograms and projects at the local level. It isdesigned for small area monitoring, i.e., provincesand municipalities.

Institutional arrangementsIn terms of the institutional arrangements for

monitoring MDGs, the Multisectoral Committeeon International Human Development Commit-ments (MC-IHDC) of the NEDA-Board SocialDevelopment Committee (NEDA-SDC) is beingutilized for this purpose. Specifically, it istasked:

1. To prepare mechanisms for monitoringPhilippine compliance with international humandevelopment commitments which include, amongothers, commitments made during the followingconferences: Millennium Summit; InternationalConference on Population and Development(ICPD); World Summit for Social Development(WSSD); Fourth World Conference on Women(FWCW); and Second International Conferenceon Shelter and Human Settlements (Habitat II);

2. To review reports of the lead agenciestasked to coordinate and monitor compliance withinternational human development commitmentsbefore submission to concerned UN bodies;

3. To recommend policies, strategies, programsand projects to the SDC-Technical Board drawnout from the reports of the lead agencies; and

4. To serve as the venue for coordinating theactivities designed to monitor compliance with saidcommitments of government agencies, non-govern-ment organizations, and people’s organizations.

As chair of the Committee, the NEDA is thelead agency in monitoring the MDGs. It leads inthe integrative process of preparing the countryMDG report. SDC Resolution No. 1 (Series of2003), “Expanding the Functions and Compositionof the MC-IHDC,” which was issued and adoptedon July 3, 2003 identified the following lead agen-cies per area of concern of the MDGs:

THE MDGs


The identified lead agencies are expected tocome up with respective strategic action plans,which shall set the tone and provide direction foraccomplishing the MDGs and commitments.These action plans should contain specific, doableand strategic interventions that will address theattainment of the MDGs, as well as new legisla-tion. So far, five agencies, namely the DENR,DILG, DOH, NNC and NAPC have come upwith their respective action plans and havepresented them to the MC-IHDC for deliberation.

Meanwhile, to improve the MDG indicators,NSCB with assistance from the United NationsOffice of the Resident Coordinator and inpartnership with various data sources andoversight agencies, conducted a consultativemeeting on the Millennium Indicators last June2004. It served as a venue for: (a) introductionand advocacy of the MDGs; (b) discussion ofstatistical issues; and (c) forging of initialcooperation with data producers and sources inaddressing data gaps and other statistical issuesthrough the formulation of statistical develop-ment programs.

Data availabilityBased on the assessment made by the Philip-

pines, about 48 indicators will be monitored to

determine the country’s progress toward theattainment of the MDGs. On the availability andapplicability of the MDG indicators in the Philip-pines, 29 of the 48 indicators can be obtainedfrom the various government surveys and admin-istrative records. Eight indicators are not availablewhile 11 are found to be not applicable to thePhilippines. For some of the eight indicators notavailable, country estimates are available frominternational organizations such as the UNAIDS,WHO, World Bank and the International Tele-communications Unit (ITU).

The 11 indicators which are not applicable tothe Philippines fall under Goal 8: Develop aGlobal Partnership for Development. Some ofthese indicators are more relevant to least devel-oped countries (LDCs), Africa, landlockeddeveloping countries, small island developingstates, and HIPs.

Based on the 2003 report of the UnitedNations Economic and Social Commission forAsia and the Pacific (UN-ESCAP), in terms ofrelative data availability in support of MillenniumDevelopment Goals (MDG), the Philippinesranked first among the 11 countries in SoutheastAsia. The country obtained a rating of 27 percentfollowed by Thailand with 25 percent and Indone-sia with 24 percent.


Table 23: Lead Agencies per Area of Concern

AGENCY AREA OF CONCERN

National Anti-Poverty Commission (NAPC) Poverty Alleviation

Housing and Urban Development Coordinating Council (HUDCC) Shelter and Human Settlements

Department of Health (DOH) Health concerns including Water and Sanitation

National Nutrition Council (NNC) Hunger and Nutrition

Department of Education (DepEd) Primary Education

National Commission on the Role of Filipino Women (NCRFW) Gender Equality and Empowerment of Women

Department of Environment and Natural Resources (DENR) Environmental Sustainability

Department of Interior and Local Government (DILG) Localization of the MDGs

National Statistical Coordination Board/National Statistics Office (NSCB/ NSO) Indicators/ Statistics

Department of Budget and Management (DBM) Financing/ Budget

Department of Trade and Industry/ Department of Finance (DTI/ DOF) Global Partnership for Development


• Unavailability of dataFrom the original 48 MDG indicators, there are

seven indicators which are not currently monitored.These include: (1) HIV prevalence among 15 to24-year-old pregnant women; (2) number of childrenorphaned by HIV/AIDS; (3) proportion of populationin malaria risk areas using effective malaria preven-tion and treatment measures; (4) proportion oftuberculosis cases detected and cured under directlyobserved treatment short course (DOTS); (5) energyuse (kg oil equivalent) per $ (GDP); (6) proportion ofpopulation with access to affordable drugs on asustainable basis; and (7) personal computers in useper 100 population and internet users per 100 popula-tion. The unavailability of data would make it difficultto make appropriate decisions in terms of addressingthe issues and concerns related to specific MDGs ortargets. The Philippine statistical system shouldtherefore take it as a challenge to include theseindicators in their surveys and censuses and tostrongly advocate their regular funding. Strategiesand programs must be in place to generate currentlyunavailable indicators through alternative datasources and/or appropriate statistical techniques orgenerating other indicators that might be bettermeasures or tools to assess attainment of the MDGs.

• Lack of updated dataThe absence of new official data on various

MDG indicators such as maternal mortality rate(MMR) is critical in enabling decisionmakers incrafting well-informed decisions on policies andprograms. The unavailability of annual estimates ofunder-five mortality rate (U5MR), infant mortalityrate (IMR), and MMR, proportion of population usingsolid fuels, and proportion of household with accessto secure tenure are also essential in coming up withintegrated approaches to addressing the MDGs.

In terms of the quality of available data, im-provement in the data collection and quality shouldbe ensured. For instance, there was a large sam-pling error in the 1998 MMR, making it difficult toconclude whether the MMR has changed since the1993 NDHS. Furthermore, there is a substantial lag

time between the gathering, publication and dissemi-nation of data on maternal health.

• Lack of disaggregated data by sex andprovince

Disaggregation by sex and province should befurther pursued. Generation of disaggregated data iscrucial in monitoring the imbalances in the distribu-tion of resources which will serve as basis forprioritization of development activities across thecountry. Currently, data on the MDG indicators areavailable mostly at the national and regional levels,while sex-disaggregated data are not available inmost indicators.

• Institutional arrangements at the sub-national level

While there is clear institutional arrangement inmonitoring the MDG indicators at the national level,there is a need to operationalize this at the sub-national level. The operationalization can be built onexisting statistical infrastructures and mechanismssuch as the Regional Statistical Coordination Commit-tee and indicator systems including the POPDEVIndicator System, Local Governance PerformanceManagement System, and the Core Local PovertyIndicators (13 CLPI + 1), as well as data collectionsystems of national and local governments.

The DevInfo will be used to improve monitoringon the MDGs. Philippine participants in the 2004UNICEF-funded Regional Training on the DevInfowill conduct echo trainings for government and UNpartners, especially NEDA where the nationalmonitoring is housed. The Sixth Country Programfor Children (CPC 6) will complement this byorganizing a pool of trainors and updating thenational DevInfo database.

The monitoring issues specifically those relatedto the data and statistics of the MDGs are part ofexisting problems being addressed by the PhilippineStatistical System. The government will have toallocate resources to generate the needed indicatorsto be able to keep track of the country’s progress inattaining the MDGs.

Challenges and priorities for actionthe Millennium Development Goals 135

ACRONYMSSecond Philippines Progress Report on136

CPR contraceptive prevalence rateCPBD Congressional Planning and Budget DepartmentCPSD consolidated public sector deficit

CRM Coastal Resource ManagementCROWN Consistent Regional Outstanding Winner in NutritionCSR Contraceptive Self-Reliance

CSR cohort survival rateCUES Cooperative Union Empowerment and

Strengthening

CUP Comprehensive and Unified Policy for TB ControlCSOs Civil Society OrganizationsCWC Council for the Welfare of Children

DA Department of AgricultureDAR Department of Agrarian ReformDBCC Development Budget Coordination Committee

DBM Department of Budget and ManagementDBP Development Bank of the PhilippinesDENR Department of Environment and Natural Resources

DepEd Department of EducationDHUD Department of Housing and Urban DevelopmentDILG Department of Interior and Local Government

DLR Department of Land ReformDMIA Diosdado Macapagal International AirportDOF Department of Finance

DOH Department of HealthDOLE Department of Labor and EmploymentDOST Department of Science and Technology

DOTS Directly Observed Treatment Short CourseDPWH Department of Public Works and HighwaysDSWD Department of Social Welfare and Development

DTI Department of Trade and IndustryE C European CommissionECC Environmental Compliance Certificates

ECCD Early Childhood Care and DevelopmentECD Early Childhood DevelopmentECONA Environmental Consent Agreement

ECOP Employers Confederation of the PhilippinesEFA Education for AllE-IMSAPP Enhanced Integrated Monitoring System for

Anti-poverty Programs and ProjectsEIS Environmental Impact StatementEMOC Emergency Obstetric Care

EMS Environmental Management SystemEO Executive OrderEPI Expanded Program on Immunization

ERPAT Empowerment and Re-affirmation of ParentalAbilities Training

A&D alienable and disposableAER Action for Economic ReformsAHYDP Adolescent Health and Youth Development

ProgramALS Alternative Learning SystemANC antenatal check-ups

ANI Action for Nutrition ImprovementAO Administrative OrderAPIS Annual Poverty Indicators Survey

APPAN Asia Parliamentary Policy Analysis NetworkARH adolescent reproductive healthARMM Autonomous Region in Muslim Mindanao

ARV anti-retroviralASEM Asia-Europe MeetingASEP AIDS Surveillance Education Project

ASIN Act Promoting Salt Iodization NationwideASPAP Association of Schools of Public Administration in

the Philippines

AusAID Australian Agency for International DevelopmentBALS Bureau of Alternative Learning SystemBEC Basic Education Curriculum

BFAD Bureau of Food and DrugsBFAR Bureau of Fisheries and Aquatic ResourcesBHSs Barangay Health Stations

BHWs Barangay Health WorkersBIG Bio-Intensive GardeningBNFE Bureau of Non-Formal Education

BNS Barangay Nutrition ScholarBOT build-operate-transferBSP Bangko Sentral ng PIlipinas

CALABARZON Cavite-Laguna-Batangas-Rizal-QuezonCAR Cordillera Administrative RegionCEDAW Convention on the Elimination of all Forms of

Discrimination Against WomenCBFM Community-Based Forest ManagementCBMIS Community-Based Management Information

SystemCEPT Common Effective Preferential TariffCFSS Child Friendly School System

CHD Center for Health DevelopmentCHED Commission on Higher EducationCLASP Community Livelihood Assistance Special Program

CLPIMS Core Local Poverty Indicators Monitoring SystemCLUP Comprehensive Land Use PlanCMP Community Mortgage Program

CNC Certificate of Non-CoverageCPC Country Programme for Children


ESWM Ecological Solid Waste ManagementFAITH Food Always in the HomeFAO Food and Agriculture Organization

FEDAFC Federation of Davao Dairy Farmers CooperativesFFCCCII Federation of Filipino-Chinese Chamber of

Commerce and Industry, Inc.

FHSIS Field Health Service Information SystemFIVIMS Food Insecurity and Vulnerability Information

Mapping Systems

FLEMMS Functional Literacy Education and Mass MediaSurvey

FMB Forest Management Bureau

FNRI Food and Nutrition Research InstituteFP amily planningFRMP Fisheries Resource Management Program

FWCW Fourth World Conference on WomenGAA General Appropriations ActGAD gender and development

GCAP Global Call to Action Against PovertyGCR Global Competitiveness RankingGDI gender-related development index

GDP Gross Domestic ProductGEM gender empowerment measureGFIs Government Financial Institutions

GFATM Global Funds for AIDS, TB and MalariaGK 777 Gawad KalingaGNP Gross National ProductGOCC Government Owned and Controlled Corporation

GPI gender parity indexGRDP Gross Regional Domestic ProductGSIS Government Service Insurance System

HABITAT II Second International Conference on Shelter andHuman Settlements

HACT Hospital AIDS Core Teams

HDMF Home Development Mutual FundHFCS Household Food Consumption SurveyHIV/AIDS Human Immunodeficiency Virus/Acquired Immune

Deficiency SyndromeHMOs health maintenance organizationsHOR House of Representatives

HUDCC Housing and Urban Development CoordinatingCouncil

ICC Investment Coordination Board

ICPD International Conference on PopulationDevelopment

IDA Iron Deficiency Anemia

IEC information and education campaignIFMA Industrial Forest Management AgreementIMCI Integrated Management of Childhood Illnesses

IMR infant mortality rateIP Indigenous PeopleIRA Internal Revenue Allotment

IRAP Integrated Rural Accessibility Planning

IRO Investors Relations OfficeIRR Implementing Rules and RegulationsITU International Telecommunication Unit

IWRM Integrated Water Resources ManagementJBIC Japan Bank for International CooperationJICA Japan International Cooperation Agency

JPEPA Japan-Philippines Economic Partnership AgreementKALAHI-CIDSS Kapit-Bisig Laban sa Kahirapan-Comprehensive

and Integrated Delivery of Social Services

KOP Knock Out PolioLAC Local AIDS CouncilLBP Land Bank of the Philippines

LCE Local Chief ExecutiveLFPRs labor force participation ratesLGC Local Government Code

LGPMS Local Government Performance MeasurementSystem

LGU Local Government Unit

LRLC Lamlunay Research and Learning CenterLTO Land Transportation OfficeMABS Microenterprise Access to Banking Services

MBFHI Mother-and-Baby-Friendly Hospital InitiativeMBI market-based instrumentsMBN-CBIS Minimum Basic Needs-Community-Based

Information SystemMCH maternal and child healthMC-IHDC Multisectoral Committee on International Human

Development Commitments

MCEP Municipal Coastal Environment ProfileMCP Malaria Control ProgramMDP3 Mindanao Development Project 3

MEDCO Mindanao Economic Development CouncilMELLPI Monitoring and Evaluation of Local Level Plan

Implementation

MFI Microfinance InstitutionsMHO Municipal Health OfficerMILF Moro Islamic Liberation Front

MIMAROPA Mindoro-Marinduque-Romblon-PalawanMMDA Metro Manila Development AuthorityMMR maternal mortality rate

MO Memorandum OrderMPFD Master Plan for Forestry DevelopmentMRF Materials Recovery Facilities

MRLs Muslim religious leadersMSMEs Micro, Small and Medium EnterprisesMSSP Microfinance Sector Strengthening Project

MTP III Third Medium-Term PlanMTPDP Medium-Term Philippine Development PlanMTPIP Medium-Term Philippine Investment Plan

MTPPAN Medium-Term Philippine Plan of Action on NutritionNAMRIA National Mapping and Resource Information

Authority

NAP No-Audit Program


NAPC National Anti-Poverty CommissionNBSAP National Biodiversity Strategy and Action PlanNCIP National Commission on Indigenous People

NCR National Capital RegionNCPAG National College of Public Administration and

Governance

NCRFW National Commission on the Role of FilipinoWomen

NDHS National Demographic and Health Survey

NEC National Epidemiology CenterNEDA National Economic and Development AuthorityNFA National Food Authority

NFES Non-Formal Education ServicesNG National GovernmentNGA National Government Agencies

NGC National Government CenterNGOs Nongovernment OrganizationsNHA National Housing Authority

NHA National Health AccountsNHA Nutrition Honor AwardNHIP National Health Insurance Program

NHMFC National Home Mortgage Finance CorporationNHSS National HIV/AIDS Sentinel SurveillanceNID National Immunization Days

NIPAS National Integrated Protected Areas SystemNLEX North Luzon ExpresswayNLSF National Livelihood Support FundNLUP National Land Use Policy

NNC National Nutrition CouncilNNS National Nutrition SurveyNPC National Power Corporation

NSCB National Statistical Coordination BoardNSO National Statistics OfficeNTCP National Tuberculosis Control Program

NWRB National Water Resources BoardNYC National Youth CommissionODA Official Development Assistance

ODS Ozone Depleting SubstancesOFWs Overseas Filipino WorkersOHSC Occupational Health and Safety Center

OPT Operation TimbangOSY out-of-school youthOWAPC Office of the Water and Power Czar

OWWA Overseas Workers Welfare AdministrationPAC/IAF MLA Pacific Accreditation Cooperation/International

Accreditation Forum Multilateral Arrangement

PAR Public Administration ReformsPBSP Philippine Business for Social ProgressPCBs polychlorinated biphenyls

PCFC People’s Credit and Finance CorporationPCRA Participatory Coastal Resource AssessmentPCUP Presidential Commission for the Urban Poor

PDOS Predeparture Orientation Seminar

PDTF People’s Development Trust FundPEPP Philippine Environmental Partnership ProgramPES Parent Effectiveness Service

PHANSuP Philippine NGO Support ProgramPhilCAT Philippine Coalition Against TuberculosisPHIC Philippine Health Insurance Corporation

PITC Philippine International Trading CorporationPIP Public Investment ProgramPLAN People’s Legislative Advocacy Network

PLCPD Philippine Legislators’ Committee on Population andDevelopment

PLHWAs people living with HIV/AIDS

PMA Philippine Military AcademyPMAC Prevention and Management of Abortion and Its

Complication

PMTNYDP Philippine Medium-Term National Youth Develop-ment Plan

PNAC Philippine National AIDS Council

PNGOC Philippine NGO Council for Population, Health andWelfare

POEA Philippine Overseas Employment Administration

POPCOM Commission on PopulationPOPED population educationPPAN Philippine Plan of Action for Nutrition

PPAs program, projects and activitiesPPC post-partum check-upsPPMD Public-Private Mix DOTSPPMP Philippine Population Management Program

PSCB Productivity Skills Capacity BuildingPTFWRDM Presidential Task Force on Water Resources

Development and Management

QUEDANCOR Quedan CorporationRA Republic ActRBM Roll-back Malaria Program

RBO River Basins OrganizationsRDA Recommended Daily AllowanceRDCs Regional Development Councils

RENI Recommended Energy and Nutrient IntakesRH reproductive healthRHAN Reproductive Health Advocacy Network

RHUs Rural Health UnitsRITM Research Institute for Tropical MedicineRP responsible parenthood

RR reproductive rightsRTDs roundtable discussionsRTI Reproductive Tract Infection

SACCL STD/AIDS Central Cooperative LaboratorySAEP School-based AIDS Education ProgramSARS Severe Acute Respiratory Syndrome

SBGFC Small Business Guarantee and FinanceCorporation

SDC Social Development Committee

SDS Social Development Staff


SEA-K Self-Employment Assistance-KaunlaranSEC Securities and Exchange CommissionSEZs Special Economic Zones

SHFC Social Housing Finance CorporationSIAs supplemental immunization activitiesSIAP Statistical Institute for Asia and the Pacific

SIMCPAE-2 Strengthening Institutional Mechanisms forConvergence of Poverty Alleviation Efforts,Phase II

SK Sangguniang KabataanSMEs Small-and-Medium EnterprisesSOMIS Social Development Management Information

SystemSOP Strategic Operational PlanSPEED Naga Socialized Program for Empowerment and

Economic DevelopmentSRA-MBN Social Reform Agenda-Minimum Basic NeedsSRS Strong Republic School

SSS Social Security SystemSTIs sexually-transmitted infectionsSWP Social Watch Philippines

SY school yearSZOPAD Special Zone of Peace and DevelopmentTB tuberculosis

TCCs Teacher Community CoordinatorsTESDA Technical Education and Skills Development

AuthorityTFG The Futures Group

TIDCORP Trade and Industry Development CorporationTFR total fertility rateTLA timber license agreement

TLRC Technology Livelihood Resource CenterTRDP Targeted Rice Distribution ProgramTSP total suspended particulates

TVET Technical-Vocational Education and Training

U5MR under-five mortality rateUCLG United Cities and Local GovernmentUDHA Urban Development and Housing Act

UNICEF United Nations Children FundUNCT United Nations Country TeamUNDGO United Nations Development Group Office

UNDP United Nations Development ProgrammeUN ESCAP United Nations Economic and Social Commission

for Asia and the Pacific

UNFPA United Nations Population FundUNM University of Northern MindanaoUN RBAP United Nations Regional Bureau for Asia and the

PacificUNRC United Nations Resident CoordinatorUSAID United States Agency for International Development

VAT value-added taxVAW violence against womenVAWC violence against women and children

VAWCC VAW Coordinating CommitteeWADAC Wangan Dairy Farmers’ CooperativeWASCO Water and Sanitation Coordinating Office

WASH Water, Sanitation and Hygiene for AllWATSAN water and sanitationWCPU Women’s Health and Child Protection Unit

WD Water DistrictsWESM Wholesale Electricity Spot MarketWHO World Health OrganizationWRRC Water Resources Regional Councils

WSSD World Summit for Social DevelopmentWSPs water service providersWSP-EAP Water and Sanitation Program-East Asia

and the PacificWSS water supply and sanitationYAFSS Young Adult Fertility and Sexuality Survey

Asian Development Bank. January 2005. Poverty in the Philippines: Income Assets and Access. Manila, Philippines.

Castelo, Rodrigo P. August 2004. Policy Framework for the Philippine Debt Sustainability. Manila, Philippines.

Castro, Lina V., John Frederick De Guia, and Regina Reyes. October 2004. “Strengthening the Capacity of the Philippine Statistical System to Addressthe Statistical Requirements of the Millennium Development Goals.” Paper presented during the 9th National Convention on Statistics. EDSA Shangri-LaHotel, Ortigas Center, Mandaluyong City.

CISDL Working Paper. Advancing the Odious Debt Doctrine.

Commission on Population and the United Nations Population Fund. October 2004. International Conference on Population and Development CountryReport: Philippines: ICPD at 10:Putting People First. Manila, Philippines.

de Jesus, Edilberto. February 2004. “A Road Map for Education,” keynote speech delivered during the Third UP Public Lecture Series on the PhilippinePresidency and Administration. Diliman, Quezon City, Philippines.

Department of Budget and Management and National Economic and Development Authority, 2004. Joint Circular 2004-1 - Guidelines for the Preparationof GAD Plan and Budget and Accomplishment Report to Implement the Section on Programs/Projects Related to GAD of the General Appropriations Act.

Department of Education. Factsheet (as of September 2004).

______________________. Basic Education Information System SY 2002-2003.

Department of Health. Administrative Order No. 1-B s. 1997, “Establishment of a Women and Children Protection Unit in all DOH Hospitals.” Manila,Philippines.

______________________. Administrative Order No. 34-A s. 2000, “Adolescent and Youth Health Policy.” Manila, Philippines.

______________________. Administrative Order No. 45-B s. 2000, “ Prevention and Management of Abortion and Its Complications Policy.” Manila,Philippines.

______________________. Administrative Order No. 79 s. 2000, “Safe Motherhood Policy.” Manila, Philippines.

______________________. Administrative Order No. 132 s. 2004, “ Creating the DOH Natura Family Planning Program and Its Program Management.”Manila, Philippines.

______________________. Administrative Order No. 158 s. 2004, “ Guidelines on the Management of Donated Commodities under the ContraceptiveSelf-Reliance Strategy.” Manila, Philippines.

Department of Interior and Local Government. 2004. Millennium Development Goals (MDG)-Related Documentation of Good Practices in Mindanao.Manila, Philippines.

Department of Interior and Local Government, Mindanao Economic Development Council and United Nations Development Programme. June 2004. LGUGuide on the Millennium Development Goals Implementation. Manila, Philippines.

Department of Environment and Natural Resources. 2003. Draft Environment and Natural Resources Framework Plan. Manila, Philippines.

Department of Science and Technology and Food and Nutrition Research Institute. National Nutrition Survey 2003.

Executive Order 145, “Pursuing the Rationalization of the Organization and Supervision of Agencies Under/Attached to the Office of the President” and itsImplementing Rules and Regulations. Manila, Philippines.

Lopez, Ann Lourdes C. (ed) 2003. Child-Friendly Learning Happens Here (Stories on the Child-Friendly School System). Manila, Philippines.

Molave Development Foundation. Fastracking the Millennium Development Goals on Water and Sanitation: The Molave Experience.

National Anti-Poverty Commission. March 2003.En Banc Resolution No. 7. Manila, Philippines.

National Commission on the Role of Filipino Women. August 2004. Gender Focus, Special Edition. Manila, Philippines.

__________________________. March 2004. State of the Filipino Women Report 2001-2003. Manila, Philippines.

National Commission on the Role of Filipino Women and National Economic and Development Authority. October 2004. Harmonized Gender andDevelopment Guidelines for Project Development, Implementation, Monitoring and Evaluation. Manila, Philippines.

National Economic and Development Authority. November 2004. Medium-Term Philippine Development Plan 2004-2010, Manila, Philippines.

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National Statistical Coordination Board. 2004 Philippine Statistical Yearbook. Manila, Philippines.

National Statistics Office. 2000 Census, Manila, Philippines.

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National Statistics Office (NSO) and ORC Macro, 2004. National Demographic and Health Survey 2003, Manila, Philippines.

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DEVELOPMENTOF

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0 2ndmdgannual cover final...three critical areas: people, physical environment, and infrastructure....

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