Presented by RD Arturo G. ValeroDuring the General Assembly of the Philippine Federation of

Local Councils of Women (PFLCW), Inc.November 19, 2009, Top Plaza Hotel, Dipolog City

What is ERPthe country’s response to the global crisisaims to stimulate the economy also seeks to prepare the country for the

eventual upturna mix of government spending, tax cuts and

public-private sector projects

Objectives of ERPEnsure sustainable growth and attain the

higher end of the growth targets; Save and create as many jobs as possible; Protect the most vulnerable sectors – poorest

of the poor, returning overseas Filipino workers, and workers in export industries;

Ensure low and stable prices; and Improve competitiveness in preparation for

the global economic rebound.

Strategies for ERPImplement budget interventionsAccelerate spending for small infrastructure

projectsExpand social protection programSave and create jobsImplement off-budget interventionsOther measures

Budget interventionsIncreased budget for departments in:

InfrastructureSocial protectionAgricultureHealthEducation

Maximize d personal services (PS) budgetMaximized MOOE

Small infrastructure projectsFront-load resources for full and quick

spending Focus on projects that are:

quick-disbursinghigh impact labor intensive

Obligate at least 60 percent of spending program in the first semester

Social protection programsP5.0B conditional cash transfers to cover

additional 321,000 poor householdsP1.0B to PhilHealth as full contribution to the

national insurance programP2.0B to TESDA to equip more Filipinos with

skills for income generationP1.97 B to the DOH to improve primary and

secondary hospitals

Save and create jobs DOLE interventions for overseas Filipinos:

Monitor overseas labor market displacements Monitor contracts of job orders overseas Worker registration Redeployment services to other emerging labor

markets Identify and develop new market niches Repatriation assistance Expand livelihood/business formation programs Reintegration and business counseling Skills upgrading and retooling services

Save and create jobsEarly warning system to know which firms

are likely to shut down or shed workersAlternatives to laying off workers:

shortened work shiftsmaximized vacation leavesrotating forced leaves

Comprehensive livelihood and emergency employment programs (CLEEP)

Off-budget interventionsTapping resources of GOCCs and GFIs for large

infraEnhanced social security benefits to membersAccelerating spending for comprehensive and

integrated infrastructure program (CIIP), namely:Official development assistance National budget/general appropriations act National-local government cost sharing Public-private partnership/joint venture Corporate funds Proceeds from those mandated by law (i.e. EPIRA)

Other measuresGovernment will ramp up its housing

programsExpand trade with China and West AsiaEncourage exporting firms to diversify,

innovate and upgrade products.

Funding the ERP

P330B economic resiliency planP160B increase in the 2009 budgetP40B tax cuts for low and middle income

earnersP100B large infrastructure projects funded

GFIs, social security institutions and private commercial banks

P30B additional benefits to members by social security institutions

Challenge for MSMEsFocus on basic consumer commoditiesCling on laborOperate just to weather the stormDevelop forward processing activitiesImprove on technology/processes

Why basic commoditiesAntidote to recession: spendingNatural tendency in crisis: savingThere are basic necessities: people eatThings should be affordable

Why focus on labor

Household income needs to be sustainedPurchasing power necessary for spendingEnhance money circulationAvert unrest

Why operate for subsistence

To be able to offer affordable productsSustain demandSave jobs

Why develop forward industries

Enhance value added of productsAvailable raw materialsSkills/technology likely available

Why improve on technology

To enhance competitiveness To lower operating costsEnsure quality products

Economic Resiliency Plan worked

GDP Q2 year-on-year growth of 1.5%, quarter-on-quarter growth of 2.4%

Public construction up by 29.9%Government consumption up by 9.1%Unemployment feared to rise due to the

crisis. It actually fell due to CLEEP: from 8.0% in April 2008 to 7.5% in April 2009

OF remittances still defy gravity

Lay-offs down due to rehiring Workers Displaced by the Crisis

October 2008 4,224November 2008 9,448December 2008 11,433January 2009 12,392February 2009 9,126March 2009 15,895April 2009 2,554May 2009 1,776June 2009 1,590

2009-2010 Growth Outlook

Indicator 2009 2010

GNP 2.1-3.1 4.7-5.6GDP 0.8-1.8 2.6-3.6

Quote from Standard and Poor

“Yes, the Philippines is 'lucky' because they have made the necessary adjustments and reforms when times were still good. So they are facing the global market problems and economic slowdown from a considerably improved position, compared to what they were in 3-4 years ago…

“The Philippines is an 'island of calm' currently, while there is turmoil in the higher rated and previously stable countries… ”

Thank you!