PHILIPPINE NATIONAL PHILIPPINE NATIONAL DEVELOPMENT DEVELOPMENT

FRAMEWORK AND FRAMEWORK AND STRATEGY (2010)STRATEGY (2010)

bybyDr. Ronald M. HensonDr. Ronald M. Henson

Management ConsultantManagement Consultant

RP ECONOMIC STATUSRP ECONOMIC STATUS overall GDP (US$379.7) and estimated GDP per overall GDP (US$379.7) and estimated GDP per

capita (US$4,600 as of 2002), with a pervasive capita (US$4,600 as of 2002), with a pervasive poverty problem, (40% of the population below poverty problem, (40% of the population below the poverty line)the poverty line)

UNDP Human Poverty Index is 14.8, placing the UNDP Human Poverty Index is 14.8, placing the country as the 28country as the 28THTH poorest among 94 poorest among 94 developing countries; also placing the developing countries; also placing the Philippines among the top 34 countries in the Philippines among the top 34 countries in the world for unequal income distributionworld for unequal income distribution

annual per capita poverty threshold was annual per capita poverty threshold was estimated at PhP11,906 (US$211.362) in 2002; a estimated at PhP11,906 (US$211.362) in 2002; a family of five members should have a monthly family of five members should have a monthly income of PhP4,961 (US$88) to meet its food income of PhP4,961 (US$88) to meet its food and non-food basic needs (NCSB 2004)and non-food basic needs (NCSB 2004)

manufacturing accounts for around 25% of GDP manufacturing accounts for around 25% of GDP (textiles, pharmaceuticals, chemicals, wood (textiles, pharmaceuticals, chemicals, wood products, food processing and petroleum products, food processing and petroleum refining)refining)

RP ECONOMIC STATUSRP ECONOMIC STATUS 40th largest in the world, according to 2012 , according to 2012 

International Monetary Fund statistics and it is also  statistics and it is also one of the emerging markets in the world.one of the emerging markets in the world.

considered as a newly industrialized country, it considered as a newly industrialized country, it has been transitioning from one based on has been transitioning from one based on agriculture to one based more on services and agriculture to one based more on services and manufacturingmanufacturing

2012 GDP (purchasing power parity) was 424.355 2012 GDP (purchasing power parity) was 424.355 billion, by the year 2050, the Philippines will be billion, by the year 2050, the Philippines will be the 14the 14thth largest economy in the world,  largest economy in the world, 

Philippines  included in the list of the Next Philippines  included in the list of the Next Eleven economies.Eleven economies.

Philippine economy will become the 16th largest Philippine economy will become the 16th largest economy in the world, 5th largest economy economy in the world, 5th largest economy in Asia and the largest economy in the Southeast in Asia and the largest economy in the Southeast Asian region by 2050Asian region by 2050

PHILIPPINE DEVELOPMENT PHILIPPINE DEVELOPMENT PLAN (2011-2016)PLAN (2011-2016)

anchored on President Benigno S. Aquino III’s 16-point anchored on President Benigno S. Aquino III’s 16-point “Social Contract with the Filipino People,” envisions “Social Contract with the Filipino People,” envisions inclusive growth for the country. Inclusive growth means inclusive growth for the country. Inclusive growth means growth that is shared by all and opposed to the trickle growth that is shared by all and opposed to the trickle down, jobless growth that we have seen over the recent down, jobless growth that we have seen over the recent years.years.

good governance and anti-corruption as overarching theme, good governance and anti-corruption as overarching theme, the Plan has three broad strategiesthe Plan has three broad strategies

- high and sustained economic growth, which provides - high and sustained economic growth, which provides productive and decent employment opportunitiesproductive and decent employment opportunities

- provision of - provision of equal accessequal access to development opportunities  to development opportunities across geographic areas and across different income and across geographic areas and across different income and social spectrum to ensure economic growth and social spectrum to ensure economic growth and opportunities that translate to poverty reductionopportunities that translate to poverty reduction

- push for the implementation of effective and responsive - push for the implementation of effective and responsive social social safety netssafety nets  to assist those who will not be able to   to assist those who will not be able to catch up by the character of a rapid economic growth.catch up by the character of a rapid economic growth.

1O PARTS OF THE PDP1O PARTS OF THE PDP 1. Introduction: In Pursuit of Inclusive Growth 2. Macroeconomic Policy 3. Competitive Industry and Services Systems 4. Competitive and Sustainable Agriculture and

Fisheries Sector 5. Accelerating Infrastructure Development 6. Towards a Dynamic and Resilient Financial Sector 7. Good Governance and the Rule of Law 8. Social Development 9. Peace and Security 10. Conservation, Protection and Rehabilitation of 10. Conservation, Protection and Rehabilitation of

the Environment and Natural Resources Towards the Environment and Natural Resources Towards Sustainable DevelopmentSustainable Development

5 PARTS OF THE PLAN5 PARTS OF THE PLAN a commitment to the Millennium a commitment to the Millennium

Development Goals of the United Development Goals of the United Nations:Nations:Part One –Economic Growth and Job Part One –Economic Growth and Job

Creation CreationPart Two – EnergyPart Two – EnergyPart Three – Social Justice and Basic Part Three – Social Justice and Basic

NeedsNeedsPart Four – Education and Youth Part Four – Education and Youth

Opportunity OpportunityPart Five – Anti-Corruption and Good Part Five – Anti-Corruption and Good

Governance Governance

ECONOMIC GROWTH AND ECONOMIC GROWTH AND JOB CREATIONJOB CREATION

1.1. Trade and investment Trade and investment 2. Agri-business2. Agri-business3. Environment and natural resources3. Environment and natural resources4. Housing/construction4. Housing/construction5. Tourism5. Tourism6. Infrastructure6. Infrastructure7. Fiscal strength 7. Fiscal strength 8. The financial sector8. The financial sector9. Labor9. Labor

ENERGYENERGY1. Energy independence and power 1. Energy independence and power sector reformssector reforms2. Increased oil and gas exploration2. Increased oil and gas exploration3. Development of renewable energy3. Development of renewable energy4. Expanded use of natural gas4. Expanded use of natural gas5. Strategic alliances, and through 5. Strategic alliances, and through energy efficiency and conservationenergy efficiency and conservation6. Power sector reforms to reduce 6. Power sector reforms to reduce electricity rateselectricity rates7. Encouraging private sector 7. Encouraging private sector participation in power generationparticipation in power generation8. Total electrification of barangays 8. Total electrification of barangays by 2008 by 2008

SOCIAL JUSTICE AND BASIC SOCIAL JUSTICE AND BASIC NEEDSNEEDS

1. Anti-poverty program of government1. Anti-poverty program of government2. Achieving national harmony through automated 2. Achieving national harmony through automated electionselections3. The peace process and healing the wounds of 3. The peace process and healing the wounds of EDSA 1,2 and 3EDSA 1,2 and 34. The implementation of rule of law4. The implementation of rule of law5. Enhanced livelihood activities through credit 5. Enhanced livelihood activities through credit support and capacity buildingsupport and capacity building6. Asset reforms such as agrarian reform, urban 6. Asset reforms such as agrarian reform, urban asset reform, and ancestral domain issues. asset reform, and ancestral domain issues. 7. Improved accessibility and affordability of 7. Improved accessibility and affordability of essential services and reducing by half the cost of essential services and reducing by half the cost of medicines.medicines.8. Protection of the vulnerable which include 8. Protection of the vulnerable which include children, youth, women in difficult circumstances, children, youth, women in difficult circumstances, persons with disabilities, and older persons. persons with disabilities, and older persons. 9. The empowerment of the poor through the 9. The empowerment of the poor through the KALAHI-CIDSS program and support for private KALAHI-CIDSS program and support for private sector. sector.

EDUCATION AND YOUTH EDUCATION AND YOUTH OPPORTUNITYOPPORTUNITY

1. Early childhood education such as expanding the 1. Early childhood education such as expanding the Early Childhood Care and Development (ECCD) to reach Early Childhood Care and Development (ECCD) to reach all 5-year olds and health and nutrition as part of day all 5-year olds and health and nutrition as part of day care, elementary, and high school.care, elementary, and high school.2. Basic education, such as closing the classroom gap 2. Basic education, such as closing the classroom gap by building 6,000 classrooms a year, installing distance by building 6,000 classrooms a year, installing distance learning in conflict areas, providing computers in every learning in conflict areas, providing computers in every high school, and upgrading math, science and English high school, and upgrading math, science and English learning.learning.3. Technical, vocational education and training such as 3. Technical, vocational education and training such as ladderized interface of TVET to College, job-skill ladderized interface of TVET to College, job-skill matching, and the establishment of community matching, and the establishment of community colleges. colleges. 4. Higher education such as provision of scholarships 4. Higher education such as provision of scholarships and financial assistance and the upgrading of higher and financial assistance and the upgrading of higher education curriculum. education curriculum. 5. The acceleration of knowledge creation and transfer 5. The acceleration of knowledge creation and transfer to promote technology-based entrepreneurship.to promote technology-based entrepreneurship.6. Mainstreaming culture and development and 6. Mainstreaming culture and development and institutionalization of culture in education and good institutionalization of culture in education and good governance. governance.

ANTI-CORRUPTION AND GOOD ANTI-CORRUPTION AND GOOD GOVERNANCEGOVERNANCE

bureaucrat’s lack of autonomy from big economic bureaucrat’s lack of autonomy from big economic interests, low pay of civil servants, low social awareness interests, low pay of civil servants, low social awareness of the deleterious effects of corruption, high tolerance of the deleterious effects of corruption, high tolerance for corrupt practices; and need for greater transparency, for corrupt practices; and need for greater transparency, integrity and accountability in government transactionsintegrity and accountability in government transactions1. Punitive such as lifestyle checks and strengthening 1. Punitive such as lifestyle checks and strengthening the investigative capacity of the Ombudsman.the investigative capacity of the Ombudsman.2. Preventive such as procurement reforms, 2. Preventive such as procurement reforms, simplification of procedures in frontline services, simplification of procedures in frontline services, opening up government projects. to public scrutiny, and opening up government projects. to public scrutiny, and the enactment of the whistle-blower law. the enactment of the whistle-blower law. 3. Promoting zero tolerance for corruption such as 3. Promoting zero tolerance for corruption such as values formation and mobilizing media and civic values formation and mobilizing media and civic organization to deliver the message of societal reforms. organization to deliver the message of societal reforms. 4. Bureaucratic reform strategies such as government 4. Bureaucratic reform strategies such as government reengineering under EO 366, rationalizing the pay of reengineering under EO 366, rationalizing the pay of government workers, promoting meritocracy through government workers, promoting meritocracy through the recruitment of the best and the brightest, and the recruitment of the best and the brightest, and capacity building for the government work force. capacity building for the government work force.

NATIONAL HARMONY AND NATIONAL HARMONY AND SECURITYSECURITY

1. The Philippine Defense Reform 1. The Philippine Defense Reform ProgramProgram2. Measures to upgrading the 2. Measures to upgrading the capability of the AFP over 6 capability of the AFP over 6 yearsyears3. Ensuring the observance of 3. Ensuring the observance of the ceasefirethe ceasefire4. Enhancing the ability to fight 4. Enhancing the ability to fight terrorismterrorism

CONSTITUTIONAL REFORMSCONSTITUTIONAL REFORMSProblems as follows:Problems as follows:

1. Obstruction and delay in legislation and 1. Obstruction and delay in legislation and policy-makingpolicy-making2. The highly centralized system of government2. The highly centralized system of government3. Personalistic politics 3. Personalistic politics 4. Lack of accountable and functional political 4. Lack of accountable and functional political partiesparties5. Lack of domestic capital resources 5. Lack of domestic capital resources

Constitutional reforms needed are as follows:Constitutional reforms needed are as follows:1. Shift to a federal form of government1. Shift to a federal form of government2. shift to unicameral parliamentary system2. shift to unicameral parliamentary system3. Reforms in the electoral and political party 3. Reforms in the electoral and political party system]system]4. Defining political dynasties and make its 4. Defining political dynasties and make its prohibition self-executoryprohibition self-executory5. Changes in the restrictive provisions on 5. Changes in the restrictive provisions on national economy and patrimonynational economy and patrimony

PHILIPPINE SUSTAINABLE PHILIPPINE SUSTAINABLE DEVELOPMENT (SD)DEVELOPMENT (SD)

began in 1987 with the drafting of the began in 1987 with the drafting of the Philippine Strategy for SD (PSSD) aimed ‘to Philippine Strategy for SD (PSSD) aimed ‘to achieve economic growth with adequate achieve economic growth with adequate protection of the country’s biological resources protection of the country’s biological resources and its diversity, vital ecosystem functions and and its diversity, vital ecosystem functions and overall environmental quality’overall environmental quality’

focus on two dimensions: economic and focus on two dimensions: economic and environmentalenvironmental

presented at the United Nations Conference on presented at the United Nations Conference on Environment and Development, UNCED, in Rio Environment and Development, UNCED, in Rio de Janeiro, Brazilde Janeiro, Brazil

adoption of the national plan of action in The adoption of the national plan of action in The Philippine Agenda 21: A National Agenda for Philippine Agenda 21: A National Agenda for Sustainable Sustainable Development for the 21Development for the 21stst Century (PA 21) by Century (PA 21) by Memorandum Order No. 399 (Philippine Council Memorandum Order No. 399 (Philippine Council for Sustainable Development ) for Sustainable Development )

SD AXISSD AXIS

Principles of Unity Principles of Unity Action AgendaAction Agenda Implementation Strategies Implementation Strategies

PRINCIPLES OF UNITYPRINCIPLES OF UNITY Primacy of Developing Full Human Potential Primacy of Developing Full Human Potential Holistic Science and Appropriate Technology Holistic Science and Appropriate Technology Cultural, Moral and Spiritual SensitivityCultural, Moral and Spiritual Sensitivity Self-DeterminationSelf-Determination National SovereigntyNational Sovereignty Gender Sensitivity Gender Sensitivity Peace, Order and National UnityPeace, Order and National Unity Social JusticeSocial Justice Inter-, Intra-Generational and Spatial EquityInter-, Intra-Generational and Spatial Equity Participatory DemocracyParticipatory Democracy Institutional ViabilityInstitutional Viability Viable and Broad-based Economic DevelopmentViable and Broad-based Economic Development Sustainable PopulationSustainable Population Ecological Soundness Ecological Soundness Biogeographical Equity and Community-Based Biogeographical Equity and Community-Based

Resource Management and Global Cooperation Resource Management and Global Cooperation

ACTION AGENDAACTION AGENDA based on the key concepts of based on the key concepts of

integration, multi-stakeholdership integration, multi-stakeholdership and consensus building, and and consensus building, and operationalization to be applied to operationalization to be applied to the 5 ecosystems: the 5 ecosystems: - forest/upland- forest/upland- agricultural/lowland- agricultural/lowland- urban- urban- coastal/marine - coastal/marine - freshwater ecosystem- freshwater ecosystemTwo extra sections call for an Two extra sections call for an improved management of biodiversity improved management of biodiversity and mineral resources and mineral resources

IMPLEMENTATION IMPLEMENTATION STRATEGIESSTRATEGIES

map out the action agenda thru two-pronged map out the action agenda thru two-pronged strategies:strategies:(a) assist the various stakeholders to build their (a) assist the various stakeholders to build their capacities towards SD capacities towards SD (b) direct efforts at conserving, managing, (b) direct efforts at conserving, managing, protecting and rehabilitating ecosystemsprotecting and rehabilitating ecosystems

managing the transition to SD calls also for managing the transition to SD calls also for interventions across ecosystems: interventions across ecosystems: a) integrating SD in governancea) integrating SD in governanceb) providing enabling economic policiesb) providing enabling economic policiesc) investing in human and social capitalc) investing in human and social capitald) mapping out a legislative agendad) mapping out a legislative agendae) addressing critical and strategic concerns e) addressing critical and strategic concerns (population management, human health, food (population management, human health, food security, human security, human settlements and land use) settlements and land use)

THE NEDATHE NEDA highest social and economic development planning and policy highest social and economic development planning and policy

coordinating body in the Philippines, responsible for providing coordinating body in the Philippines, responsible for providing overall direction and final approval of the national development overall direction and final approval of the national development plansplans

board comprises the President of the Philippines as chairman, the board comprises the President of the Philippines as chairman, the Director-General of the NEDA Secretariat as vice-chairman, and Director-General of the NEDA Secretariat as vice-chairman, and the following members - Executive Secretary and the Secretaries: the following members - Executive Secretary and the Secretaries: - Finance (DOF)- Finance (DOF)- Trade and Industry (DTI)- Trade and Industry (DTI)- Agrarian Reform (DAR)- Agrarian Reform (DAR)- Agriculture (DA)- Agriculture (DA)- Environmental and Natural Resources (DENR)- Environmental and Natural Resources (DENR)- Public Works and Highways (DPWH)- Public Works and Highways (DPWH)- Budget and Management (DBM)- Budget and Management (DBM)

- Labor and Employment (DOLE)- Labor and Employment (DOLE)- Interior and Local Government (DILG)- Interior and Local Government (DILG)- Health (DOH)- Health (DOH)- Foreign Affairs (DFA)- Foreign Affairs (DFA)- Science and Technology (DOST)- Science and Technology (DOST)- Transportation and Communications (DTC)- Transportation and Communications (DTC)- Education (DEPEd)- Education (DEPEd)- Governor of the Central Bank- Governor of the Central Bank- Chairperson of the Philippines Assistance Program- Chairperson of the Philippines Assistance Program

NEDA BOARD/COUNCILNEDA BOARD/COUNCIL NEDA Board is assisted by five Cabinet inter-NEDA Board is assisted by five Cabinet inter-

agency committees and a cabinet cluster system agency committees and a cabinet cluster system composed by 8 clusters namely: Agro-industrial composed by 8 clusters namely: Agro-industrial Development, Macroeconomy and Finance, Human Development, Macroeconomy and Finance, Human Resources and Development, Physical Resources and Development, Physical Infrastructure Support, Security and Political Infrastructure Support, Security and Political Development, Development Administration, Water Development, Development Administration, Water Resources Management and International Resources Management and International Relations (UNESCAP 2001, Lotilla 2002) Relations (UNESCAP 2001, Lotilla 2002)

Legislative-Executive Advisory Council established Legislative-Executive Advisory Council established to ensure consistency in coordinating executive to ensure consistency in coordinating executive development planning and congressional development planning and congressional budgeting; integrates environmental concepts, budgeting; integrates environmental concepts, principles and practices into the national principles and practices into the national development plans and chaired by the President development plans and chaired by the President with members of the executive (9), the legislative with members of the executive (9), the legislative (8), representative of local government unit (1), (8), representative of local government unit (1), private sector (1) and youth (1) - UNESCAP 2001 private sector (1) and youth (1) - UNESCAP 2001

MORE THAN WEALTH…MORE THAN WEALTH… period of macroeconomic stability and a GNP period of macroeconomic stability and a GNP

growing 5% or more for the last 5 yearsgrowing 5% or more for the last 5 years more than increasing wealth as measured by GNP, more than increasing wealth as measured by GNP,

GNP per capita - social development alongside GNP per capita - social development alongside economic growth, and even development of economic growth, and even development of political systemspolitical systems

economic health and growth are generally economic health and growth are generally required to commit sufficient resources toward required to commit sufficient resources toward social developmentsocial development

commitment of resources is a matter of national commitment of resources is a matter of national political will, so political systems are germane to political will, so political systems are germane to national developmentnational development

political stability has an impact on foreign and political stability has an impact on foreign and domestic investment, and prerequisite for a domestic investment, and prerequisite for a healthy, growing economyhealthy, growing economy

economic growth, social development, and economic growth, social development, and political stability are inextricably interrelatedpolitical stability are inextricably interrelated

UNITED NATIONS MILLENNIUM UNITED NATIONS MILLENNIUM DEVELOPMENT GOALS (2015)DEVELOPMENT GOALS (2015)

Achieve universal primary education Achieve universal primary education Reduce child mortality by two thirds Reduce child mortality by two thirds

from 40…to 32 for every 1,000 live from 40…to 32 for every 1,000 live births, to 27 for every 1,000 live births, to 27 for every 1,000 live births by 2015births by 2015

Improve maternal health and reduce Improve maternal health and reduce by three quarters the maternal by three quarters the maternal mortality ratiomortality ratio

Combat HIV/AIDS, malaria, and other Combat HIV/AIDS, malaria, and other diseasesdiseases

SOCIAL DEVELOPMENT – THE SOCIAL DEVELOPMENT – THE BULWARKBULWARK

UN development goals emphasized economic UN development goals emphasized economic and social goals, without any mention of and social goals, without any mention of political goalspolitical goals

politics defined as “who gets what, when, and politics defined as “who gets what, when, and how” points to the role politics in resource how” points to the role politics in resource allocation necessary for national developmentallocation necessary for national development

an opportunity to tackle domestic issues such an opportunity to tackle domestic issues such as widespread poverty and inadequate social as widespread poverty and inadequate social services which, if not addressed, could services which, if not addressed, could threaten political stability, thus disrupting threaten political stability, thus disrupting the economy, resulting in further retarded the economy, resulting in further retarded developmentdevelopment

recent Philippine progress is cause for recent Philippine progress is cause for optimism, various geographic, economic, optimism, various geographic, economic, political, and socio-cultural conditions still political, and socio-cultural conditions still present serious challenges to national present serious challenges to national development development

KEYS OF SUCCESSFUL KEYS OF SUCCESSFUL SOCIETIESSOCIETIES

economic inclusion based on full employmenteconomic inclusion based on full employment social inclusion, reflecting full participation in social inclusion, reflecting full participation in

those activities considered the norm in societythose activities considered the norm in society successful and continuing adaptation to change successful and continuing adaptation to change

as the dynamic expression of competitivenessas the dynamic expression of competitiveness commitment to the utilization and development commitment to the utilization and development

of the potential of the Information Society and of the potential of the Information Society and the promotion of Research and Developmentthe promotion of Research and Development

commitment to lifelong learningcommitment to lifelong learning sustainable and balanced development between sustainable and balanced development between

regions and between urban and rural areasregions and between urban and rural areas commitment to the further development of the commitment to the further development of the

country and international solidaritycountry and international solidarity entrepreneurial cultureentrepreneurial culture

CRITERIA FOR DETERMINING CRITERIA FOR DETERMINING INDICATORS OF DEVELOPMENTINDICATORS OF DEVELOPMENT Easily understandableEasily understandable – simple, clear and relatively easy – simple, clear and relatively easy

to interpret. This criterion is particularly important if the to interpret. This criterion is particularly important if the audience for the indicators includes non-specialists, such audience for the indicators includes non-specialists, such as the general public or mediaas the general public or media

Policy-relevantPolicy-relevant – relate not only to the three– relate not only to the threedimensions of sustainable development (economic, dimensions of sustainable development (economic, environ-environ-mental and social) but should also be linked to the mental and social) but should also be linked to the desired goalsdesired goalswithin each of these dimensionswithin each of these dimensions

Focused on priority issuesFocused on priority issues – concentrate on identifying – concentrate on identifying and monitoring priority issues so that the project and monitoring priority issues so that the project remains manageable and relevant; more issue-driven remains manageable and relevant; more issue-driven rather than data-drivenrather than data-driven

Analytically soundAnalytically sound – logically or scientifically defensible – logically or scientifically defensible and representative of the information they are tryingand representative of the information they are tryingto summarizeto summarize

CRITERIA FOR DETERMINING CRITERIA FOR DETERMINING INDICATORS OF DEVELOPMENTINDICATORS OF DEVELOPMENT Measurable Measurable – feasible in terms of – feasible in terms of

current or planned data availability, current or planned data availability, bearing in mind cost and resource bearing in mind cost and resource requirements of data collection and requirements of data collection and processingprocessing

Subject to ongoing assessmentSubject to ongoing assessment – open – open to challenge, discussion and to challenge, discussion and modification, to reflect changing modification, to reflect changing objectives, emergence of new issues objectives, emergence of new issues and improvements in measurement and improvements in measurement techniques and data availabilitytechniques and data availability

CRITERIA FOR DETERMINING CRITERIA FOR DETERMINING INDICATORS OF DEVELOPMENTINDICATORS OF DEVELOPMENT ManageabilityManageability - keeping the number of - keeping the number of

indicators in the 15-20 range; more indicators in the 15-20 range; more focused on the importance of focused on the importance of sustainable economic, social and sustainable economic, social and environmental development for more environmental development for more generalized understandinggeneralized understanding

CoherenceCoherence – within (vertical) and – within (vertical) and across (horizontal) indicators in across (horizontal) indicators in various categories like economic, various categories like economic, social and environmental indicators social and environmental indicators which strengthen the legitimacy of which strengthen the legitimacy of each of the three categories rather each of the three categories rather than each set in isolation than each set in isolation