Chapter 13

Reaching for the

Demographic Dividend
In support of the pillar of increasing growth potential, the Philippine Development Plan (PDP)
2017-2022 has stipulated strategies that aim to: (a) accelerate the demographic transition;
and (b) maximize the gains from the demographic dividend. The priority measures are on
addressing the unmet need for modern family planning, reducing mortality due to preventable
causes 1, improving the quality of the human capital of the youth, and encouraging savings
build-up.

However, supply and demand concerns on family planning and health services continue to
impede the attainment of the desired objectives despite the gains from instituting appropriate
policies, plans, and programs. Human capital development through improved health and
education outcomes were likewise accorded utmost priority by the government, but mixed
results were reported.

Furthermore, while there were less youth with unutilized potential, more needs to be done to
reduce their unemployment, considering that graduating senior high school (SHS) students
may put further pressure on the youth labor market.

Lastly, innovations were also introduced to encourage savings build-up among Filipino
families. These efforts need to be sustained and expanded (See Figure 13.1).

1
Shift from the first phase of the demographic transition characterized by a large proportion of the population in the under-15 years age
bracket and with households having a large dependency burden to the second phase; a bigger proportion of the working age population vis-
à-vis dependents (Chapter 13 of the PDP 2017-2022)

1 | Socioeconomic Report 2017

Figure 13.1 Strategic Framework to Reach for the Demographic Dividend

Accomplishments
Reducing fertility rates by addressing unmet need for modern
family planning
Total fertility decreased but teenage pregnancy remains high. The recent National Demographic
and Health Survey (NDHS) shows that total fertility rate decreased from 3.0 births per woman in 2013
to 2.7 in 2017. Moreover, the proportion of women of reproductive age who are using modern
contraceptives remains low at 40.4 percent, though higher than the 37.6 percent registered in 2013. In
terms of teenage pregnancies, the 2017 NDHS also revealed that 9 percent of women aged 15 to 19
have already begun childbearing. However, data from the Civil Registration and Vital Statistics showed
that there are girls who are giving birth as early as 10 years old. Trends in pregnancies among these
younger group of girls (under 15 years old) have decreased from 1,986 cases in 2015 to 1,903 in 2016
but continues to be disturbing and a persistent issue that needs to be addressed.

Chapter 13 Reaching for the Demographic Dividend | 2

Several issuances were enacted to address unmet need for modern family planning. To intensify
and accelerate the implementation of the critical steps needed to attain and sustain “zero unmet need
for modern family planning (FP)”, the President issued Executive Order No. 12 on January 9, 2017, in
line with the Responsible Parenthood and Reproductive Health (RPRH) Law. The EO 12, s. 2017
specified the mechanisms and roles of concerned agencies and local government units (LGUs) in the
implementation of key strategies such as: (a) mapping of couples and individuals with unmet need for
modern FP; (b) capacitating and mobilizing local structures; (c) conduct of community-based FP
demand generation activities; and (d) collaborating with civil society organizations (CSOs) and the
private sector.

Subsequently, the Department of Health (DOH) on March 30, 2017 issued Administrative Order No.
2017-0005 providing the “Guidelines in Achieving the Desired Family Size through Accelerated and
Sustained Reduction in Unmet Need for Modern Family Planning Methods,” which provided guidance
in the operationalization of the EO 12, s. 2017.

The temporary restraining orders which hampered the full implementation of the RPRH Law
were lifted. Another major development is the lifting of the Supreme Court Temporary Restraining
Order (TRO) on the procurement and distribution of Implanon and Implanon NXT and registration and
recertification of contraceptive commodities and devices. This is after the Food and Drug Authority
issued resolution 2017-302 in November 2017, which certified all 51 contraceptives as non-
abortifacient and their fulfillment of required amendments in the RPRH Law’s Implementing Rules
and Regulations. The TROs have significantly affected the FP program implementation in the country,
since their issuance4 resulted in: confusion and hesitation among LGUs in the delivery of FP services; 5
and unavailability of a number of FP commodities 6, particularly Implanon and those with expired
certificates of product registration.

Efforts on family planning logistics, monitoring, and advocacy were established to improve
RPRH Law implementation. The DOH made efforts to improve commodity logistics, while the
Commission on Population (POPCOM) pursued FP demand generation initiatives by establishing a
monitoring system to track individuals and couples with unmet FP needs. However, the link between
FP supply and demand remains a problem, as stockouts and overstocking of commodities in rural health
units/health centers persist. In addition, inequality in the provision of services remains a challenge.

Another critical aspect is the implementation of an age-appropriate comprehensive sexuality education

(CSE) in schools in view of the increasing incidence of teenage pregnancy in the country 7. While the
Department of Education (DepEd) has already initiated the development of the CSE curriculum, there
is a need to ensure that it captures the essence of the RPRH Law.

4
DOH. (2016). 3rd Annual Report of the RPRH Law
5
Includes provision of the following 1) appropriate information on full range of modern family planning methods, both natural and artificial;
skilled birth attendance; child nutrition, including breastfeeding; prenatal and postnatal care; adolescent health and reproductive/fertility
awareness; male responsibility and reproductive health; responsible parenthood and values formation; maternal and newborn care; and
health financing (e.g., PhilHealth maternal and newborn care packages); 2) interpersonal communication and counseling; and 3) dispensing
of health products by trained skilled health professional, among others.
6
Family planning commodities include: condoms, sub-dermal implant, intra-urine device, oral contraceptive pill, and cycle beads.
7
Reported to have risen to 13.6 percent in 2013 from only 6 percent in 2002 (aged 15-19) based on the Young Adult Fertility and Sexuality
Survey.

3 | Socioeconomic Report 2017

Reducing mortality rates and improving quality of human
capital
There was an increase in the country’s number of deaths, but under-five mortality decreased.
The number of reported deaths in 2016 reached 582,183, with an average of 1,591 persons who died
daily. This represents a 3.8 percent increase from the 560,605 deaths in 2015. However, this rate of
increase is lower compared to the 4.4 percent from 2014 to 2015. On the other hand, crude death rate
(CDR) 8 remained the same from 2014 to 2016 at six persons per 1,000 population. On a positive note,
under-five mortality rate declined from 31 deaths per 1,000 livebirths in 2013 to 27 in 2017 9 based on
the 2017 NDHS.

Interventions on health and education were intensified to improve the quality of human capital.
The government laid down several health sector plans and guidelines along with new programs to
accelerate the demographic transition through reducing mortality rates and harnessing the dividend
through improved health status. In addition, education processes were also improved, among which is
the expansion of inclusion programs, especially for indigenous peoples and for persons with disabilities
through the Special Education curriculum. There were also revisions to the Alternative Leaning System
to align it to the competencies set in the new K to 12 curriculum. (See also Chapter 10)

Reducing youth unemployment and encouraging savings build-

up
There were less youth with unutilized potential in 2017 10. The workforce in the Philippines will
remain relatively young for some time. Overall, population is expected to reach 108,274,300 in 2019,
with an estimated 69.4 percent comprised of aged 15 years and above. Notably, there were less youth
with unutilized potential in 2017, with the share of unemployed youth and those not in schools declining
to 22.4 percent from 22.7 in 2015 11. (See also Chapter 10)

Innovations were introduced to encourage savings build-up. The Bangko Sentral ng Pilipinas (BSP)
continued to provide an enabling policy and regulatory environment for financial inclusion through
regulation and supervision, advocacy, financial education, consumer protection, and data and
measurement. The BSP also launched the no-frills basic deposit account, which features simpler
requirements for opening an account and no maintaining balance. Other initiatives include the
Development Bank of the Philippines (DBP) program that improves financial inclusion through
the Pag-IBIG-DBP prepaid card. (See also Chapter 15)

8
It is the ratio of the number of deaths occurring within one year to the mid-year population expressed per 1,000 population. It is "crude" in
the sense that all ages are represented in the rate and does not take into account the variations in risks of dying at particular ages. (PSA
Board Resolution No 01, Series of 2017 – 122)
9
Note that these mortality rates cover a three-year period, for 2017 rates cover 2013 to 2016.
10
Economically unutilized youths (age 15 to 24) are categorically different from child laborers (below the age of 18). The former pertains to
out-of-school-youths and economically idle persons and are encouraged to engage in legitimate work while the latter is engaged in hazardous
occupation. Child labor refers to any work or economic activity performed by a child that subjects him/her to any form of exploitation or is
harmful to his/her health and safety or physical, mental or psychosocial development. (See Chapter 11)
11
This is in line with the modest target range set (20.5-22.5 percent) for youth not in employment nor in education (NEE) in 2017.

Chapter 13 Reaching for the Demographic Dividend | 4

Population and development integration

To strengthen integration of population in all development initiatives, the POPCOM spearheaded the
formulation of the Philippine Population Management Program Directional Plan for 2017-2022 which
spelled out the key strategies of Responsible Parenthood and Family Planning, Adolescent Health and
Development, and Population and Development. POPCOM also introduced the Local Internal
Migration System at the barangay level, which aims to gather data and information on population
movement at the barangay level that may be used to project service requirements and to serve as inputs
for policy and program formulation – e.g., housing, disaster risk reduction and mitigation,
environmental planning, and security and order.

The Philippine Statistics Authority (PSA) will be conducting the first National Migration Survey in
2018. The survey’s broad objective is to generate baseline data on internal and international migration.
Its specific objective includes: (a) estimate migration stock and flows at the regional level; (b) examine
different types of migration (e.g., return migration, seasonal, displaced population due to environmental
disasters, and peace and order); (c) collect and analyze factors that determine levels and patterns of
migration; and (d) study the migration process (e.g., decision-making, facilitating factors).

Moving Forward
There are three challenges that should be focused on to reach and eventually harvest the demographic
dividend namely, high fertility especially among women in low-income households, the increasing
incidence of teenage pregnancy, and the low quality of human capital among the youth 12. Specific
challenges that contribute to these are the following:

• Translation of policies into action at the local level. The issuance of EO 12, s. 2017 reflects the
government’s commitment to address unmet need for modern family planning. However, the
challenge is to ensure that these are adopted and implemented, not only by concerned national
government agencies, but also by the LGUs who are at the forefront in providing the needed FP
services in their localities. Issues on conflicting political/moral stance on FP, priority accorded to
it, and capacity to provide quality services, among others, result to varying levels of outcome
across localities in the country.

• Lack of dedicated trained FP/RPRH focals in health facilities. According to a World Health
Organization study 13 in 2017, a number of women who desired to delay or limit childbearing had
“missed opportunities” or did not receive appropriate counseling on their visit to a health facility.
This shows the lack of skilled FP focal points that could provide proper counselling to mitigate
fears and provide information on the various FP methods.

12
Dr. Dennis Mapa presentation during the 2017 National Consultative Workshop on Increasing Growth Potential through the Demographic
Dividend
13 WHO Philippines and Western Pacific Region (2017). Preliminary Findings: Underlying causes of unmet need in the Philippines. Agenda

item presented at a Responsible Parenthood and Reproductive Health National Implementation Team Meeting.

5 | Socioeconomic Report 2017

• Need for improvement in the FP supply and logistics. While the lifting of the TRO may help
improve the supply of FP commodities, perennial concern on the availability of adequate number
and appropriate type of FP commodities at service delivery points persist.

• Need for an intensified communications campaign on modern FP. There is a need to address
fears on the side-effects and misconceptions on modern FP methods through proper
communication and education on FPs to increase their usage and the demand for FPs.

• Increasing incidence of teenage pregnancy. The RPRH Law mandates the implementation of
age-appropriate CSE education to adolescents to address the impact of early pregnancy. Early
pregnancy increases the risk of maternal death and affects school completion of teenage women
which contributes to poverty. However, CSE has yet to be fully integrated to the country’s basic
education curriculum.

• Inequities in health and education outcomes. Both the health and education sectors, while
accorded high priority by the government, continue to experience critical issues and challenges in
terms of access and quality (See also Chapter 10). Shortages in human resources (teachers and
health personnel) and facilities (classrooms and health centers) persist, affecting the country’s
objective to reach the second phase of the demographic transition and reap the dividend.

• High youth NEET. To allow for the country to reap the dividend, efforts should be strengthened
to increase the opportunities for the youth to gain quality education and training and to be
productively employed.

• Low saving rate among households. BSP reports that in 2015, less than 45 percent of Filipino
adults were saving; of these, less than a third saved in a formal financial institution. As the country
enters the next phase of the demographic transition, there will be cost savings from having lower
dependency burden. It is important, however, for the savings to be channeled to investments, and
before that, to be funneled into formal financial institutions. Efforts to educate Filipinos on
economic and financial literacy and to increase their access to formal financial institutions should
be aggressively pursued.

Chapter 13 Reaching for the Demographic Dividend | 6

Recommendations
The following supplemental strategies are recommended to be considered to address the challenges
mentioned above:

Table 13.1 Supplemental Strategies to Reach for the Demographic Dividend

IMPLEMENTING AGENCY CHALLENGES RECOMMENDED STRATEGIES
DOH, LGUs • Translation of policies into action at the • Intensify provision of FP commodities and services
local level, especially of new issuances; - Enhance DOH capacity to improve commodity
lack of dedicated trained FP/RPRH logistics, through providing guidance and assistance
focal points (i.e. nurses and midwives) to LGUs and harnessing support among FP players.
in health facilities; and perennial - Ensure the presence of dedicated and trained
concern on the availability of adequate FP/RPRH focal points (i.e. nurses and midwives) to
number and appropriate type of FP improve supply and quality of FP services in health
commodities to service delivery points center and rural health units.
- Establish and operationalize Service Delivery
Networks (SDNs) for FP at the local level to ensure
that individuals and couples seeking care and/or
counselling are provided with the needed services.
- Apply incentive mechanisms and provide technical
assistance to LGUs, particularly in areas with high
unmet need for modern FP.
• Strengthen private sector and CSO engagement
- Engage private service providers and CSOs under
the SDNs systems.
- Sustain engagement with CSOs in policy and
program implementation, especially under the RPRH
Law National Implementation Team.
• Revitalize the RPRH Regional Implementation Teams to
ensure better coordination and improve monitoring of the
implementation of the law.
DOH, POPCOM, LGUs • Weak FP demand as there are • Enhance demand generation interventions
continuous fears of side-effects and - Establish a coordinated FP communication strategy
misconceptions on FP commodities among implementers, both at the national and local
levels.
- Use appropriate media and approaches and engage
communication experts, including sociologists, to
ensure that key FP information are properly delivered
to target population.
- Institutionalize a monitoring system to track
individuals and couples with unmet need at the LGU
level.
DOH, DepEd, NYC, LGUs • Increasing incidence of teenage • Improve efforts to address teenage pregnancy
pregnancy - Fast-track integration of the Comprehensive
Sexuality Education in the K to 12 curriculum.
- Develop appropriate instructional materials and
conduct training for teachers.
- Strengthen provision of adolescent sexual and
reproductive health services, especially at the local
level.
- Implement comprehensive programs on Adolescent
Sexual and Reproductive Health at the local level
DOH, DepEd, CHED, TESDA, LGUs • Inequities in health and education • Accelerate human capital development
outcomes (See Chapter 10) - Improve health advocacy campaigns.
- Intensify provision of quality nutrition and health care
interventions.
- Improve coordination within the health system.

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 - Increase investment and alignment in eHealth and
data collection mechanisms.
- Strengthen monitoring of Senior High School (SHS).
- Continue improving financial management systems.
- Review and update current policies on inclusive
education.
- Implementation of Republic Act No. 10931 or the
Universal Access to Quality Tertiary Education Act.
- Strengthen monitoring and regulation of tuition and
other school fees of SUCs.
- Establish a learner information system to improve
monitoring of higher education and Technical
Vocational Education and Training students and
graduates.
- Implement a New General Education Curriculum.
- Improve implementation of the K to 12 Transition
Program.
- Implement/Operationalize the Philippine
Qualifications Framework.
- Create a Government-Industry-Education Council.
- Integrate life skills training component in the SHS
program to teach the values of professionalism and
work appreciation among students.
- Refine Work Immersion Program design to build
confidence and cultivate sound work ethics of
students.
POPCOM, LGUs Improve population and development • Integrate population factors in development initiatives
integration, especially at the local level - Recognize population and development needs and
apply it at the national and local level planning and
programming.
- Use different mediums in localizing or teaching
population and development concepts and utilize
them in development planning and programming at
the national and local level.
DepEd, DOLE, CHED, TESDA Continued high unemployment rate among • Introduce reforms in the basic education curriculum and
the youth (See Chapter 10) program to improve the employability of the youth
• Scale up target beneficiaries and expand reach of the
JobStart program.
• Refine work immersion programs designed to build
confidence and cultivate sound work ethics of students.
BSP and other government financial Low saving rate among households (See • Scale up the implementation of economic and financial
institutions Chapter 15) literacy programs
• Improve access to different financial products or schemes

Chapter 13 Reaching for the Demographic Dividend | 8