MMMMSSS

Philippine Development
Plan 2011-2016
MIDTERM UPDATE
With Revalidated Results

Matrices
2014 by National Economic and Development Authority

All rights reserved. Any part of this book may be used and
reproduced, provided proper acknowledgement is made.
Philippine Development Plan 2011-2016 Midterm Update

Published by:
National Economic and Development Authority
12 Escriva Drive, Ortigas Center, Pasig
City Tel: (+632) 631 0945 to 56
Email: info@neda.gov.ph
www.neda.gov.ph
ISSN: 2243-7576
Printed in the
Philippines
Message of the President

Three years ago, we launched the Philippine Development Plan 2011-2016.
This was crafted as a comprehensive blueprint for our efforts to reduce
poverty and to promote inclusive development. Since then, we have
witnessed the gradual transformation of our country from an economic
laggard to one of the fastest- growing economies in the world; from one in
severe debt and financial deficit to one with enough funds to implement
beneficial programs and projects; and from an investment pariah to one that
enjoys the confidence of the local and international business community.
D uring the first half of my administration, significant gains were made
in removing and prosecuting corrupt officials, opening up government and
making
it more participatory, and eliminating leakages in the system. These gains allowed us to spend more on things
that redound to the benefit of our people: education, health, social services, and infrastructure. These also led to
increasing investments in manufacturing, tourism, logistics, agribusiness, and other productive sectors, suggesting
that quality employment will continue to increase in the future. Most importantly, these have allowed us to
reestablish the trust that has now forged peace in Mindanao.
We recognize that we still have so much more to do to ensure that growth benefits all Filipinos. We know that
economic growth is essential, but we need to invest directly in health, education, and employment to enhance
the power of growth to reduce poverty. This is why we are making every effort to ensure that the process of
reducing inequality happens at a much faster rate; and that our programs and projects will have an immediate
and palpable impact on our peoples lives.
The Philippine Development Plan 2011-2016 Midterm Update is a comprehensive guide on how we will fulfill
that commitment: by fine-tuning our strategies to unleash the potential of all sectors in the areas and communities
where the poorest and most vulnerable are found. O ur interventions are designed to address the specific
constraints and challenges faced by each sector and locality, to enable people and communities in all parts of the
country to reap the benefits of growth.
The solutions to our countrys needs are not short-term remedies that deliver quick but temporary results. We
are looking toward long-term changes in the very structure of our institutions, economy, and society, so that
whatever gains from reforms and initiatives we achieve now will forge an enduring mainstream of opportunities,
and continue to produce benefits for future generations of Filipinos.
It will take a great deal of work and our collective willpower to get these done, and it will mean valuing prudence
and long-term goal-setting over the myopia borne of political expediency. However, as long as we remain united,
working together and complementing each other along the straight path, we will overcome any obstacles that may
come our way towards an equitably progressive future.
BENIGNO S. AQUINO III

President
Republic of the Philippines
Message of the Secretary

The first half of the Philippine Development Plan (PDP) 2011-2016 implementation saw
major strides taken by the government to ensure that the goal of inclusive development
is achieved. So far, our economic gains have been well within our Plan targets as we
remain to be one of Asias top performers.
Despite many challenges, including the natural disasters that recently visited the
country, we managed to progress as a result of our strong macroeconomic fundamentals.
Now, the government has considerable fiscal space for making investments to catalyze
private ventures, provide public goods and services, as well as fund social programs all
aimed at reducing poverty and creating opportunities for everyone.
What we have achieved thus far warranted this governments emphasis on good governance and macroeconomic
and political stability as the platform for economic growth. Yet, we recognize the necessity to do more and
accomplish more to ensure that our countrys economic progress is felt by all Filipinos. We acknowledge that
economic growth is but an instrument, and that the real measure of progress is improvement in the lives of our
people. Access to development opportunities is critical in this respect, and geography can either facilitate or
obstruct such access. Thus, to ensure inclusivity, we need new approaches that are more responsive to the needs of
sectors and areas where many of the poor are found so that they can contribute to, and benefit from, growth.
The Philippine Development Plan 2011-2016 Midterm Update specifies indicators of efficiency and effectiveness
to measure success. Primarily, it will measure accomplishments in terms of economic growth of an average of 7-8
percent until 2016, and reductions in unemployment to 6.5-6.7 percent and the incidence of income poverty to 18 to
20 percent in 2016.
Also, the Updated Plan is committed to quality-of-life targets such as creating the conditions for productive
and remunerative work and improving overall well-being. Specifically, the Plan aims to reduce underemployment
to about 17 percent and to bring the incidence of multidimensional poverty down to 16-18 percent in 2016.
Beyond income poverty, the Plan views poverty as deprivation in multiple dimensions, and thus approaches
poverty reduction as also ensuring peoples access to health, education, water, sanitation, and secure shelter, among
others. The multidimensional poverty index serves as a gauge for monitoring the outcomes of several human
development strategies that can affect future income.
The experiences of other countries have shown that it takes several years of continued economic growth10 or 20
years, in most casesto significantly reduce poverty. But it does not mean that we can do nothing but wait until the
benefits of economic expansion trickle down to the poor. Instead, we are engaging in concerted efforts to remove
the constraints experienced by the poor to enable them to take advantage of growth opportunities.
Through the PDP 2011-2016 Midterm Update, we have realigned our strategies to craft and implement concrete
solutions to the countrys problems. The government is determined to make the necessary institutional changes
and innovations to deliver lasting results that are felt by the people, especially the poor.
Inclusive growth requires concerted actions not only within government but also among citizens, private
businesses, and international development partners. We hope that this Updated Plan will be instrumental in
coordinating and complementing development efforts across the country, and will effectively serve its purpose as
the nations roadmap to inclusive growth.
ARSENIO M. BALISACAN
Secretary of Socioeconomic Planning
and NEDA Director-General
VI
Table of Contents
Message
of
the
President Message of
the Secretary Table of
Contents
List of Results Matrices (RM) and Annual Target Indicator
Matrices List of Non-RM Tables, Figures and Boxes
List of Acronyms
Chapter 1. A roadmap to
inclusive growth
Unfinished Business
Strategic
Framework
PDP: 2011-2016 Midterm Update
Targets Economic growth
Employment
Poverty incidence
Sectoral Strategies
Industry and services
Agriculture
Spatial Considerations
Category 1 provinces
Crosscutting Strategies
Social development Social
protection Infrastructure
development Financial
inclusion
Environment and natural resources Good
governance
Stable national security
Macroeconomic stability
Chapter
2. Macroeconomic policy
Plan
Implementation
I. Introduction
II. Accomplishment and Challenges
Sustainable fiscal sector
Resilient monetary and external sectors
III. Updated PDP Targets
Fiscal sector
Monetary and external sectors
IV. Strategic Framework
Subsector outcome A:
achieved
Subsector outcomes B and C: Resilient external sector maintained;
monetary and financial sector made resilient and inclusive
V. Plan Implementation
V
VI
VII
XI
XIII
XVI
1
3
6
7
7
8
9
10
10
11
12
13
14
14
18
18
19
20
22
23
24
25
26
27
2
9
30
30
31
35
39
39
40
40
41
44
46
VII
Chapter 3. Competitive and innovative industry and

services sectors
4
9
I.
II.
50
51
51
51
52
53
55
55
56
57
59
59
62
65
67
69
70
Introduction
Assessment and Challenges
Contribution to rapid growth
Contribution to inclusive growth
Investments
Business climate
Productivity and innovative
capacity Consumer welfare
Market access
Key sectors and locations
Subsector outcome A: Business
climate improved
Subsector outcome B: Productivity and innovative capacity
increased Subsector outcome C: Consumer welfare enhanced
Subsector outcome D: Market access expanded
Chapter
4. Competitive and sustainable agriculture and
fisheries sector
I.
II.
Introduction
Assessment and
Challenges
Assessment
Challenges
III. Updated Targets
Sector outcome A:
Productivity in A&F
sector increased
Sector outcome B: Forward linkage with the I&S sectors increased
Chapter
5.outcome
Resilient
andresilience
inclusive
financial
Sector
C: Sector
to climate
change risks
Crosscutting strategies
system
I.
Introduction
II.
Accomplishments and
Challenges Managing external
capital flows Facilitating
financial inclusion
III. Updated PDP Targets in the
Philippine Financial System
Strategy 1: Manage the capital inflows towards
investments in the productive sector
Strategy 2: Build the needed financial market infrastructure
Strategy 3: Pursue the financial inclusion agenda
Policy and regulatory instruments
Legislative agenda
VIII
7
3
74
75
75
82
88
90
91
93
95
96
99
10
3
104
104
105
107
112
113
113
114
115
116
117
117
Chapter 6. Social development

I. Introduction
II. Challenges, Opportunities and Strategies
Sector outcome: Human capabilities improved
Subsector outcome A: Health and nutrition status improved
Subsector outcome B: Knowledge and skills enhanced
Sector outcome: Vulnerabilities reduced
Subsector outcome C: Social protection expanded
Subsector outcome D: Access to secure shelter expanded
III. Plan Implementation
11
9
120
121
122
122
127
135
136
141
146
Chapter 7. Good governance and the rule of

law
14
9
I. Introduction
II. Assessment
Subsector outcome A: Transparency, citizens
participation and accountability increased
Subsector outcome B: Rule of law strengthened
150
150
152
153
154
167
172
Chapter 8. Peace and security
17
7
I. Introduction
II. Assessment Challenges and Opportunities
W inning the peace
Ensuring national security
III. Strategic Framework
Strategies on subsector outcome A: W inning the peace
Strategies on subsector outcome B: Ensuring national security
Legislative agenda
IV. Plan Implementation
Chapter 9. Sustainable and climate-resilient environment and

natural resources
I. Introduction
II. Assessment Challenges and Opportunities
Vulnerability to climate change and natural
disasters Sustainable management of natural
resources Environmental quality
Challenges in the ENR sector
III. Strategic Framework and Updated Plan Targets
Subsector outcome A: Adaptive capacities of human communities improved
Subsector outcome B: Sustainably managed natural resources achieved
Subsector outcome C: Environmental quality improved for cleaner
and healthier environment
Priority ENR legislations
178
178
179
183
187
187
193
196
198
20
5
206
206
206
208
212
214
216
216
221
226
230
231
234
IX
Chapter 10. Accelerating infrastructure

development
23
9
I. Introduction
II. Assessment, Challenges and Opportunities
Increasing competitiveness and productivity of the
industry, services and agriculture sectors
Equalizing development opportunities
Making governance effective and
efficient Stabilizing national security
Improving sustainability and climateresiliency of the environment
III. Strategic Framework
O verall strategy
Intermediate outcome A: Competitiveness enhanced
and productivity increased in the industry, services
and agriculture sectors
Intermediate outcome B: Adequacy and accessibility of
basic infrastructure services enhanced, and infrastructure
gaps
in far-flung areas reduced
Intermediate outcome C: Governance improved
Intermediate outcome D: Safer and more secured
environment created and sustained
Bibliograph
Intermediate outcome E. Environmental quality
y Glossary
improved
Planning
Committees
NEDA Board Members
NEDA Secretariat
NEDA Regional
Offices Index
240
240
241
245
246
247
248
248
249
250
259
261
263
264
267
273
279
325
337
338
340
341
List of Results Matrices (RM) and

Annual Target Indicator Matrices
Table
1.2
GDP and sectoral growth rate targets, 2014-2016 (in %)
inclusive
growth
Table 1.3
Table 1.4
Table 1.5
Gross regional domestic product (GRDP) growth targets, 2014-2016 (in %)

Employment targets, 2014-2016
Poverty incidence targets, 2014-2016 (in % of population)
Chapter 2. Macroeconomic
Table
2.5
Revalidated RM on macroeconomic policy (in %)
policy
Table 2.7
Annual target indicator matrix on macroeconomic policy, 2013-2016

Table
3.2 sectors
Revalidated RM on competitive and innovative I&S sectors
services
Table 3.3
Annual target indicator matrix on competitive and innovative

I&S sectors, 2013-2016
Chapter 4. Competitive and sustainable agriculture and

Table
4.8 sector
Revalidated RM on competitive and sustainable A&F sector
fisheries
Table 4.9
Annual target indicator matrix on competitive and sustainable

A&F sector, 2013-2016
Chapter 5. Resilient and inclusive

Table
5.2 system
Revalidated RM on resilient and inclusive financial system
financial
Table 5.4
Annual target indicator matrix on resilient and inclusive financial

system, 2013-2016
Chapter 6. Social
Table
6.1
Revalidated RM on subsector outcome A: Health and nutrition status improved
development
Table 6.2
Table 6.5
Revalidated RM on subsector outcome B: Knowledge and skills enhanced

Revalidated RM on sector outcome on vulnerabilities reduced:
Subsector outcomes C (social protection expanded) and D
7
8
9
9
39
47
58
71
88
100
112
118
123
128
136
(access to secure shelter expanded)
Chapter
governance
andonthe
Table 6.12 7. Good
Annual target
indicator matrix
social development, 2013-2016
Table
7.3 law Revalidated RM on good governance and the rule of law
rule of
146
152
155
Table 7.4
Revalidated RM under subsector outcome A on enhancing

access to information
Table 7.5
Revalidated RM under subsector outcome A on fully engaging

and empowering the citizenry
157
Table 7.6
Revalidated RM under subsector outcome A on strengthening performance

management and accountability measures
161
XI
Table 7.7
Revalidated RM under subsector outcome B on improving

administration of justice
168
Table 7.8
Revalidated RM under subsector outcome B on enhancing

economic justice
171
Table 7.9
Annual target indicator matrix on good governance and the rule
173
Chapter 8. Peace
and
of law, 2013-2016
Table
8.2
Revalidated
RM on subsector outcome A and intermediate outcome 1
security
188
Table 8.3
Table 8.4
190
193
of peace and security
Revalidated RM on intermediate outcome 2 of peace and security

Revalidated RM on subsector outcome B and intermediate
outcomes 3, 4 and 5 of peace and security
Chapter
and matrix
climate-resilient
environment
Table 8.5 9. Sustainable
Annual target indicator
on peace and security,
2013-2016 and
Table
9.1
Revalidated
RM
on
subsector
outcome
A:
Adaptive
capacities
natural resources
198
218
Table 9.2
Revalidated RM on subsector outcome B: Sustainably managed

natural resources achieved
221
Table 9.3
Revalidated results matrix (RM) on subsector outcome C: Environmental

quality improved for cleaner and healthier environment
227
of human communities improved

Table
9.4
Annual
targetRM
indicator
matrix on
sustainableand
andefficiency
climate-resilient
Table
10.2
Revalidated
on improving
connectivity
among
development
234
252
Table 10.3
Table 10.5
Table 10.6
Revalidated RM on supporting agricultural production

Revalidated RM on pursuing energy and water security
Revalidated RM on improving access to and adequacy
of basic infrastructure services
254
256
260
Table 10.7
Table 10.8
Table 10.9
Table 10.10
Table 10.11
Revalidated RM on addressing infrastructure gaps in far-flung areas

Revalidated RM on providing safety and security measures
Revalidated RM on improving wastewater and solid waste management
Revalidated RM on supporting measures to improve air quality
Annual target indicator matrix on accelerating infrastructure
development, 2013-2016
261
263
266
267
267
environment
naturalgrowth
resources,
urban centers,and
regional
hubs2013-2016
XII
List of Non-RM Tables, Figures and

Boxes
Table 1.1
Philippine Development Plan 2011-2016 targets and 2012-2013
inclusive
growth
Table 1.6
Table 1.7
Table 1.8
Table 1.9
Figure 1.1
Figure 1.2
Box 1.1
Box 1.2
actual accomplishment
Category 1: Ten provinces with high magnitude of poor
households, 2010
Category 2: Ten provinces with highest poverty incidence
based on population, 2012 (in %)
Category 3: Thirty provinces exposed to multiple hazards, by
region
Coordination mechanism of Planning Committees
Updated Plan Strategic Framework
Map of Category 1-3 Provinces
Measuring multidimensional poverty
Major infrastructure projects to improve connectivity
between urban centers and regional growth hubs
13
14
15
28
6
16
5
21
Chapter 2. Macroeconomic
Table 2.1
PDP targets versus actual revenue indicators:
policy
33
Table 2.2
33
Table 2.3
Table 2.4
Table 2.6
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 2.6
Figure 2.7
Ratio to GDP, 2010-H1 2013 (in %)

Tax and revenue effort of selected ASEAN
countries:
Ratio to GDP, 2010-2012 (in %)
Sources and share of LGUs total current operating income, 2010-2012
Performance of the monetary and external sectors, 2010-2013
Summary of revenue enhancement measures
Results framework on macroeconomic policy
Share of sectoral spending to total budget, 2010-2013 (in %)
Year-on-year inflation for all and bottom 30%
households, 2010-Q2 2013 (in %)
Year-on-year inflation for NCR and AONCR, 2010-Q2
2013 (in %)
Balance of Payments, 2010 to 2013 (in billion US$)
Gross International Reserves (GIR) and reserve adequacy measures
Strategic framework on macroeconomic policy
34
35
41
31
32
36
36
37
38
40

Table 3.1 sectors
Total approved investments, 2010-H1 2013 (in million PhP)
services
53
Figure 3.1
Figure 3.2
Box 3.1
51
59
68
Results framework on competitive and innovative I&S sectors

Strategic framework on competitive and innovative I&S sectors
Improving government support to micro, small and medium
enterprises (MSMEs)
Chapter 4. Competitive and sustainable agriculture and

Table 4.1 sector
A&F sectors contribution to the economy, 2010-H1 2013
fisheries
Table 4.2
Table 4.3
Value and growth of top agricultural exports, 2011-2013

A&F sectors contribution to employment, 2011-H1 2013
76
79
80
XIII
Table 4.4
Table 4.5
Table 4.6
Table 4.7
Figure 4.1
Figure 4.2
Figure 4.3
Box 4.1
Box 4.2
Average daily basic pay of wage and salary workers by

major industry group, 2011-Q1 2013 (in PhP)
Average value and share of international trade of
agricultural products,
2010-2012
Yield comparison of major food commodities in selected ASEAN
countries, 2010-2012 (in mt/ha)
CARPER targets and accomplishments, 2011-2012
Results framework on competitive and sustainable A&F sector
Average regional share to agricultural gross value added (GVA),
2011-2012, and agricultural land share to total agricultural land area
Strategic framework on competitive and sustainable A&F sector
The National Industry Cluster Capacity Enhancement Project:
Bolstering pilot industry clusters
Integrated Coconut Industry Poverty Reduction Roadmap:
80
81
81
84
75
78
90
94
97
Towards growth that reduces poverty
Chapter 5. Resilient and inclusive

Table
5.1 system
Financial inclusion strategies
financial
Table 5.3
Figure 5.1
Figure 5.2
Figure 5.3
Figure 5.4
Figure 5.5
Figure 5.6
Figure 5.7
Box 5.1
Key components of financial market infrastructure

Results framework on resilient and inclusive financial system
Philippine Stock Exchange prices, 2013
Comparative trend in Asia credit default swap (Senior-5 year term),
2011-2013
Four-quarter moving average of net private capital flows as
percentage
of gross domestic product, 1991-2011 (in %)
Net private capital flows (as percentage of GDP; four-quarter moving average)
Geo-spatial distribution of unbanked and unserved municipalities
Strategic framework on resilient and inclusive financial system
The prospects of the ASEAN integration
Chapter 6. Social
Table
6.3
Accomplishment (SY 2010-2011 to 2012-2013) and targets
development
111
115
105
105
106
106
107
108
113
115
130
(SY 2013-2014 and 2016) on key performance indicators for basic

education, public and private
XIV
Table 6.4
Table 6.6
Backlogs (2010) and accomplishment on basic education critical resources

Accomplishment (2011-2012) and targets (2011, 2012 and 2016)
on social protection indicators
131
138
Table 6.7
Table 6.8
Targets and accomplishment on National Shelter Program, 2011-2012

Targets and accomplishment on indirect housing assistance through
private funds, 2011-2012
141
142
Table 6.9
Table 6.10
Table 6.11
Figure 6.1
Housing needs estimates by region, 2011-2016 (in number of households)

Updated housing assistance targets, 2014-2016
Updated indirect housing assistance targets, 2014-2016
Results and strategic framework on social development
143
143
144
121
Chapter 7. Good governance and the

Table
7.1 law Worldwide Governance Indicators, 2010-2012
rule of
Table 7.2
Figure 7.1
Figure 7.2
151
151
151
153
Global ranking of the Philippines in governance indices, 2010-2012

Results framework on good governance and the rule of law
Strategic framework on good governance and the rule of law
Chapter 8. Peace and

Table 8.1
PAMANA geographical zones
security
181
Figure 8.1
179
Results framework on peace and security
Chapter 9. Sustainable and climate-resilient environment and

Figure
9.1 resources
Results framework on sustainable and climate-resilient
natural
207
Figure 9.2
Figure 9.3
207
208
Figure 9.4
Figure 9.5
Figure 9.6
Box 9.1
Box Table 9.1.1
Box 9.2
Box
Figure9.2.1
environment and natural resources

Climate change projects, 2020 and 2050
Estimated direct cost of damage to properties of natural disasters

by sector, 2000-2012 (in million PhP)
Total suspended particles (TSP) level in Metro Manila
212
217
Strategic framework on sustainable and climate-resilient environment

and natural resources
Protected areas with potential ecotourism benefits
226
209
209
220
220
Damage and losses incurred from Typhoon Yolanda

Damage and loss caused by typhoon Yolanda
Ongoing CCA/M and DRRM programs and projects in the Philippines
Spatial distribution of CCA/M and DRRM programs and projects

Table
10.1
Ranking and status of the Philippines, 2010-2012, and selected
development
242
Table 10.4
254
Figure 10.1
Figure 10.2
Figure 10.3
Box 10.1
Box 10.2
Box 10.3
Box 10.4
Box 10.5
Box 10.6
ASEAN countries, 2012, in key infrastructure indicators

Target capacity of committed and indicative private sectorinitiated
power plant projects, 2013-2016
Results framework on accelerating infrastructure development

Strategic framework on accelerating infrastructure development
Infrastructure spending as component of capital outlay, 2012-2016
Major infrastructure achievements in support of the productive sectors
Innovation and growth corridors in Mindanao
Major infrastructure projects to pursue energy and water security
Priority infrastructure sector policies and laws
Major infrastructure programs and projects to improve
access to and adequacy of basic infrastructure services
Major infrastructure interventions to improve environmental
quality
241
249
250
244
251
256
258
260
264
Table of Contents
XV
List of Acronyms
A&D
Alienable and Disposable
A&F
Agriculture and Fisheries
AARNR
ACPC
AONCR
Areas O utside National Capital

Region
Agriculture, Agrarian Reform and

Natural Resources
APIS
Annual Poverty Indicators Survey
ARB
Agrarian Reform Beneficiary
Agricultural Credit and Policy

Council
ARC
Agrarian Reform Communities
ARMM
Autonomous Region in Muslim

Mindanao
ADB
Asian Development Bank
ADBP
Average Daily Basic Pay
ARTA
Anti-Red Tape Act
ADDSP
Angat Dam and Dyke

Strengthening Project
ARTP
Anti-Red Tape Program
ASEAN
Association of Southeast Asian

Nations
ADR
Alternative Dispute
ADSDPP
Resolution Ancestral Domain
ASTHRDP
Accelerated Science and

Technology Human Resource
Development Program
AEC
Sustainable
Development and
Protection Plans
ASTI
Advanced Science and

Technology Institute
AFAB
ASEAN Economic
Community Authority of the
AFI
AFMA
Freeport Area of
Bataan
Alliance for Financial
BAI
Bangk
oop
AFP
Inclusion Agriculture and
BAP
AFP IPSP
Fisheries
Modernization Act
BAS
AGT
Armed Forces of the
AHEPP
Philippines AFP Internal Peace
AHFF
and Security
Plan
AI
Automated Guideway Transit
BEIS
BESF
BFAR
Automated Teller Machines

Bureau of Animal Industry
Cooperative Bank Federation of
the Philippines
Bankers Association of the
Philippines
Bureau of Agricultural Statistics
Basic Education Information
System
Budget of Expenditures and
Sources of Financing
Bureau of Fisheries and Aquatic
Resources
AIDS
Angat Hydro Electric Power Plant
BFP
BHS
Bureau of Fire Protection
ALDA
Agriculture, Hunting, Forestry

and Fishing
BI
Barangay Health Station
BIR
Bureau of Immigration
BLGF
Bureau of Internal Revenue
ALI
XVI
ATMs
Avian Influenza
AMCFP
Acquired Immune Deficiency

Syndrome
AO
ARC Level of
Development
Assessment
Agrarian Legal Implementation
Agro-Industry Modernization
Credit and Financing
Program
BOC
Bureau of Local Government

and Finance
Bureau of Customs
BOD
Biochemical O xygen Demand
BOI
Board of Investments
BOP
CCAMC
Climate Change Adaptation and

Mitigation Cluster
Balance of Payments
CCB
Contact Center ng Bayan
BOT
BuildOperate
CCC
Climate Change Commission
BPAs
Transfer
CCs
BPI
Budget Partnership Agreements
Citizens Charters or Cabinet

Clusters
BPLS
Bureau of Plant and Industry
CCT
Conditional Cash Transfer

Clark Development Corporation
BPM
Business Permits and Licensing

System
CDC
CeC
Community e-Center
BPM5
Balance of Payments Manual
BPO
Balance of Payments Manual 5
BSP
Business Process O utsourcing
BTr
Bangko Sentral ng Pilipinas
CADT
Bureau of the Treasury
CFL
Certificate of Ancestral Domain

Title
CGAC
CALAX
Region IV-A (Cavite, Laguna,

Batangas, Rizal and Q uezon)
CIA
CALT
Cavite-Laguna Expressway
CALABARZON
CAMANAV
A
CAP CAR
CARAGA
Certificate of Ancestral Land

Title
CESDP
CESO
CEZA
CHED
CISL
CLLEX
CLOA
CBA/CPLA
CBEP
CCA/M
Cagayan Economic Zone

Authority
Compact Fluorescent Lamps
Coast Guard Action Center
Commission on Higher Education
Clark International Airport
Collective Investment Schemes
Law
Central Luzon Link Expressway
Certificate of Land O wnership
Award
Comprehensive Land Use Plan
Country Action Plan
Community Mortgage Program
CLUP
CMTS
Customs Modernization and

Tariff Act
Cordillera Administrative Region
CNFIDP
CMP
CNIS
CMTA
Agusan del Sur, Dinagat
Island,
Surigao
del
Norte, Surigao del Sur)
Comprehensive Agrarian Reform
Program
Comprehensive Agrarian Reform
Program-Extension with
Reforms
Cabinet Assistance System
Cordillera Bodong
Administration/
Cordillera Peoples Liberation
Cellular mobile telephone service

Comprehensive National
Fisheries Industry
Development Plan
COA
Comprehensive National
Industrial Strategy
COD
Commission on Audit
COE
Centers of Development
CO
MEL
EC
Centers of Excellence
CompR
Convergence on National
Value- Chain
Enhancement
for Rural Growth &
Empowerment
Region XIII (Agusan del N orte,
CAS
Career Executive Service Officer
Caloocan City, Malabon City,

Navotas City, Valenzuela
City
CARP
CARPER
Career Executive Service

Development Program
CONVERGE
Commission on Elections
Completion Rate
List of
Acronyms
XVII
CPA
Citizens Participatory Audit
D OH
Department of Health
CPEIR
Climate Public Expenditure and

Institutional Review
D OJ
Department of Justice
D OLE
CPP/NPA/NDF
Communist Party of the

Philippines/New Peoples
Army/National Democratic
Front
Department of Labor and

Employment
D OLE BLES

Employment-Bureau of
Labor and Employment
Statistics
D OST
Department of Science
and Technology
D OST PAGASA
Department of Science and

Technology-Philippine
Atmospheric, Geophysical
& Astronomical Services
Administration
CPSD
Consolidated Public Sector Deficit
CSC
Civil Service Commission
CSCSE
Citizens Satisfaction Center
CSFs
Seal
of Excellence
CSIS
Credit Surety Funds
CSOs
Citizens Satisfaction Index
CSR
System Civil Society
D OT
Department of Tourism
CTAs
Organizations Cohort Survival
D OTC
CTB
Rate
Department of Transportation
and Communications
DPWH
Department of Public Works and

Highways
DRRM
Disaster Risk Reduction and

Management
DSR
Debt Service Ratio
DSS
Decision Support System
DSWD
Department of Social Welfare

and Development
CTI
Court of Tax
CY
Appeals Chamber of
DA
Thrift banks Coral
DAP
Triangle Initiative Crop

year
DAR
Department of
DBCC
Agriculture Development
DBM
Academy of the
Philippines
Department of Agrarian
DBP
DBR
Reform Development Budget

Coordination Committee
Department of Trade and

Industry
DU
Distribution Utility
E2M
electronic-to-mobile
EBNRS
Enhanced Business Name

Registration System
DENR
Department of Budget and

Management
DepEd
Development Bank of the

Philippines
D FA
Doing Business Report
e-Courts
DHUD
Department of Environment and

Natural Resources
EDC
DILG
D OE
D OF
EBT
Econ Cluster
EFCOS
Department of Education
Department of Foreign Affairs
Department of Housing and
Urban Development
Department of the Interior and
Local Government
XVIII
DTI
Department of Energy
Department of Finance
e-GMP
Enterprise-Based Training
Economic Development Cluster
Electronic Court System Project
Export Development Council
Equipment of the Effective
Flood Control
Operation System
Electronic Government Master
Plan
EITI
EMB
EMEAP
FRS
Fiscal Risk Statement
FSAA
Environmental Management
Bureau
Flag State Administration

Advisory
FSCC
Executives Meeting of East AsiaPacific Central Banks
Financial Sector Coordinating

Council
FSF
Financial Sector Forum
Extractive Industries
Transparency Initiative
ENR
Environment and Natural

Resources
FSSP
Food Staples Self-Sufficiency

Plan
EO
Executive Order
FTA
Free Trade Agreement
EODB
Ease of Doing Business
EOP
FTAA
End-of-Plan (Target)
Financial or Technical Assistance

Agreement
EPI
Environmental Performance
Index
FTP
Financial Transactions Plan
GAA
General Appropriations Act
ERC
Energy Regulatory Commission
GCG
ERDT
Engineering R&D and
Governance Commission on
GOCCs
ESWM
Technology Ecological Solid
GCI
Global Competitiveness Index
GCR
Global Competitiveness Report
e-TAILS
Waste
Management
GDP
Gross Domestic Product
GFIs
Government Financial
Institutions
FAB
Electronic Transparency and

Accountability Initiative for
Lump Sum Funds
FAOSTA
T
Framework Agreement
on Bangsamoro
GGACC
Good Governance and AntiCorruption Cluster
GGI
Good Governance Index
GHRIS
Government Human Resource

Information System
FDA
Food and Agricultur

Organization Statistical
Databases
FDI
Food and Drug Administration
FDP
Foreign Direct Investments
FHS
Full Disclosure Policy
GIR
Gross International Reserves
FHSIS
Family Health Survey
GMP
Good Manufacturing Practice
FiT
Field Health Service Information

System
GOCCs
Government-Owned and
Controlled Corporations
FLEMMS
Feed-in-Tarrif
Grassroots Participatory
Budgeting Process
FMD
FMR
Functional, Literacy,
Education and Mass Media
Survey
GPBP
GQMC
Government Quality
Management Committee
FNRI
Foot and Mouth Disease
GQMP
Government Quality
Management Program
Farm to Market Roads

FOB
FRIMP
Food and Nutrition Research

Institute
FRM
Freight on Board
GIFMIS
GROWTH
Government Integrated Financial

Management Information
System
Gearing Rural Organizations

for Wealth Creation
Towards Household Income
Improvement Project
Flood Risk Management Project

Flood Risk Management
List of
Acronyms
XIX
GSIS
Government Service
Insurance System
GVA
Gross Value Added
H2
Second half of the
HA
CCP
year
IFC
International Finance Corporation
IFMA
Integrated Forest Management

Agreement
IFRS
International Financial Reporting

Standards
iGovPhil
Integrated Government Philippines
ILO
International Labour Organization
HDMF
Hazard Analysis Critical Control

Point
ILP
Interruptible Load Program
HD PRC
Home Development Mutual

Fund
ILT
Idle Land Tax
IMF
International Monetary Fund
HEDP
Human Development and

Poverty Reduction Cabinet
Cluster
NEDA Board Committee on

Infrastructure
HEI
Household Electrification
Development Plan
HGC
Higher Education Institution
INF
RA
CO
IP
M
IPA
HIV
Home Guaranty Corporation
IPCR
Agency Individual
HLURB
Human immunodeficiency virus

Housing and Land Use
HOJs
Regulatory
Board
HRDP
Halls of Justice
HUC
HUD CC
Human Resources
Development Program
Highly Urbanized City
HVCDP
I&S
Housing and Urban Development

Coordinating Council
IPP
IPs
IPSAS
IRA
IRBM
Interagency Task Force
ISO
ICC
International Budget Partnership
ICCA
Insurance Commission
ISP
Indigenous Cultural Communities
IT-BPM
IEC
Informal Settler Families
Indigenous Community
Information and Communications

Technology
Information and Communications
Technology Office
International Organization for

Standardization
Investment Support Program
ITP-PGS
Information Technology-Business
Process Management
ITR
Integrated Transformation
Program-Performance
Governance System
ITU
Income Tax Return

IWRM
Internally-Displaced Persons
XX
Internal Revenue
Integrated Results and RiskBased Auditing Approach

System
IC
IDPs
International Public Sector

Accounting Standards
Implementing Rules and

Regulations
ISF
Integrated Coastal Management
Program Indigenous Peoples
IRRBAAS
Industry and Services
ICTO
Individually Paying
Basin
Management
IBP
Conserved
Areas
Performance
Commitment and Review
IRR
IATF
ICT
Investment Promotion
Allotment Integrated River
High Value Crops

Development Program
ICM
Indigenous People
Information, Education and

Philippine Development Plan 2 011-2016 MIDTERM UPDATE
Communication
International Telecommunication
Union
Integrated Water Resources
Management
JIC
A
Japan International Cooperation

Agency
MDG(s)
Millennium Development
Goal(s)
JPSCC
Joint Peace and Security

Coordinating Committee
MDGF
Millennium Development Goal

Fund
JRC
Justice Research Center
MDGFAF
JSC
Justice Sector Coordinating

Council
Millennium Development Goal

Achievement Fund
MFIs
Microfinance Institutions
MICC
Mining Industry Coordinating

Council
MICE
Meetings, Incentive Travel,

Conventions, Exhibitions/
Events
C
KG
KM
Kilogram
Knowledge
KP
Management Kalusugan
KRA
Pangkalahatan
KTOE
Result Area
MILF
LAD
Moro Islamic Liberation Front
kilo tons oil

equivalent
MIMAROPA
Mindoro Occidental, Mindoro

Oriental, Marinduque,
Romblon, Palawan
MITHI
Medium-Term ICT
Harmonization Initiative
MMDA
Metropolitan Manila
Development Authority
LBP
Key
LCA
Land Acquisition and
LCC
Distribution Landbank of the
LDC
Philippines Local Conservation
LFS
Area
LGC
Low Cost Carrier
MMR
LGU(s)
Livestock Development
Maternal Mortality Ratio
MNLF
Moro National Liberation Front
MPA
Marine Protected Area
LLDA
Council Labor Force Survey

Local Government
LMS
MPS
Code Local Government
Mean Percentage Score
LPRAPs
MRF(s)
Unit(s) Laguna Lake
Materials Recovery Facility(ies)
MRP
Manufacturing Revival Program
LRA
Development
Authority
MRRS
Monitoring, Reporting and

Response System
MRT
Metro Rail Transit
LRT
Land Management Sector
LSBs
Local Poverty Reduction
LSDF
Action
Plans
MA
MAPALLA
MARINA
MARP
MBOs
Mbps
MC
MCAP
Land Registration
MSME
Micro, Small and

Medium Enterprise
MT
Metric tons
MW
Authority Light Rail Transit
Megawatts
NAB
Local Special Bodies
New Arrangements to Borrow
NA
MRI
A
NAP
National Mapping and Resource

Information Authority
NAPC
National Anti-Poverty
Commission
NAT
National Achievement
Test
Land Sector Development

Framework
Masters Degree
Manila Bay-Pasig/Marikina
River-Laguna Lake
Maritime Industry Authority
Most-at-risk population
National Action Plan on

Women, Peace and Security
Micro Banking Offices

Million bits per second
Memorandum Circular
List of
Acronyms
XXI
NBI
National Bureau of Investigation
NLA
National Leaderships Agenda
NCC
National Competitiveness
Council
NLUC
National Land Use Committee
NNS
National Nutrition Survey
NCIP
National Commission on
Indigenous Peoples
NOAH
Nationwide Operational
Assessment of Hazards
NCR
National Capital Region
NPC
NDRRMC
National Disaster Risk Reduction

and Management Council
NPS
National Payroll System
NQI
National Q uality Infrastructure
NDRRMF
National Disaster Risk Reduction

and Management Fund
NSCB
NEA
National Electrification
Administration
National Statistical Coordination

Board
NEDA
National Economic and

Development
Authority
NEECP
NER
National Energy Efficiency and

Conservation Program
NEST
Net Enrolment Rate
NETRC
NFA
NG
NGAs
NGO(s)
NGP
National Statistics Office
NSP
National Shelter Program
NSSMP
National Sewerage and Septage

Management Program
NSWMC
National Solid Waste

Management Commission
NTC
National Telecommunications
Commission
NTDP
National Tourism
Development Plan
NTESDP
National Technical Education

and Skills Development Plan
National Government
NWRB
National Water Resources Board
National Government Agencies
OADR
Non-Governmental
Organization(s)
Office for Alternative Dispute

Resolution
OBI
National Environmentally
Sustainable Transport
National Education Testing and
Research Center
National Food Authority
Open Budget
OC
Index Office for
Program National Housing
ODA
Competition
Authority National Health
ODP
NHMFC
Insurance
Program
OECD
Assistance Open Data Portal
NHTS-PR
National Home Mortgage

Finance Corporation
OFs
Organization for Economic

Cooperation and
Development
OFWs
O verseas Filipinos
OGP
O verseas Filipino Workers
OMB
Open Government Partnership
OMB
Optical Media Board
OPCR
Office of the Ombudsman
NHA
NHIP
NIA
NICCEP
National
Greening
National Household Targeting

System for Poverty
Reduction
National Income Accounts
NIPAS
NJIS
XXII
NSO
National Power Corporation
National Industry Cluster

Capacity Enhancement
Project
National Integrated Protected
Areas System
National Justice Information
System
OPIF
Official Development
Office Performance Commitment

and Review
Organizational Performance
Indicator Framework
OPSD
O utstanding Public Sector Debt
OTS
Office of Transport Security
PAGASA
Pag-IBIG
PAMANA
PAP
PAs
PAW
B
PBB
PBIS
PBR
PCA
PCF
PCFC
PCG
PCIC
PCM
PCOS
PD
PDEA
PDF
PDIC
PDP
PEDP
PEZA
Philippine Economic Zone

Authority
Philippine Atmospheric,
Geophysical and
Astronomical Services
Administration
PFM
Public Financial Management
PH or PHL
Republic of the Philippines (DFA

Protocol)
PhD
Pagtutulungan sa
Kinabukasan:
Ikaw, Bangko, Industriya at
Gobyerno (Home
Development Mutual
Fund)
Doctor of Philosophy
PhilGEPS
Philippine Government Electronic

Procurement System
PhilHealth
Philippine Health Insurance

Corporation
Philmech
Philippine Center for Postharvest

Development and
Mechanization
PhP
Philippine Peso
PIDS
Philippine Institute for

Development
Studies
Payapa at Masaganang
Pamayanan Programs, Activities
and Projects Protected Areas
Protected Areas and W ildlife
Bureau
Performance-Based Bonus
Performance-Based Incentives
System
PESOs
PMC
PMDP
Philippine Business Registry

Philippine Coconut Authority
PNP
Performance Challenge Fund
PNP-FED
Peoples Credit and Finance

Corporation
PPP
Philippine Coast
PPSAS
Particulate Matter
Philippine Mediation Center
Public Management Development
Program
Philippine National Police
Philippine National PoliceFirearms Explosive
Division
Public-Private
Guard Philippine Crop
Partnership Philippine
Insurance
Corporation
Public Sector
Accounting Standards
Provinces, cities and municipalities

PRC
PQA Precint Count Optical Scan
PQF Presidential Decree
Philippine Drug Enforcement
Agency
Philippine Development Forum
Philippine Export Development

Plan
Productivity Enhancement
Incentive
Public Employment Service
Offices
Philippine Q uality
Awards Philippine
PRMF
Q ualifications
Framework
Project SHINE
Professional Regulation
Commission
Philippine Deposit Insurance

Corporation
Philippine Development Plan
PEI
PM
Provincial Road Management

Facility
PSA
PSE
PSF
PSHS
Strengthening High-level
commitment for Integrity
initiatives and Nurturing
collective action of
Enterprise Project
Philippine Statistics Authority
Philippine Stock Exchange
Peoples Survival Fund
Philippine Science High School
XXIII
PSIP
PPP for School Infrastructure

Project
RSBSA
Registry System for Basic

Sectors in Agriculture
PWD
Persons with disability
SALINTUBIG
Q1
First quarter of the year
Sagana at Ligtas na Tubig sa

Lahat
Q2
Second quarter of the
SBMA
Subic Bay Metropolitan
SC
Authority Supreme Court
SCMB
Subic-Clark-Manila-Batangas
SDC
Social Development Committee
SDEP
Service Delivery Excellence

Program
SDP
Stimulus Development Plan
SEA-K
Self-Employment Assistance for

Kaunlaran
SEC
Securities and Exchange

Commission
SEnA
Single Entry Approach Program
SETUP
Small Enterprise Technology

Upgrading Program
Q3
Q4
QC
year Third quarter of the

year Fourth quarter of the
year Q uezon City
QMS
Q uality Management Systems
QMS
C
Q uality Management Systems

Certifications
R&D
Research and Development
RA
Republic Act
RAS
CAL
D
Rapid Assessment and Seminar

on Case Analysis and Legal
Draftsmanship
RATE
Run After Tax Evaders
RATS
Run After The Smugglers
RBAP
SGH
Rural Bankers Association of the

Philippines
SGISM
RBPMS
Results-Based Performance
Management System
Shared Government Information

System on Migration
SGLG
RCS
Report Card Survey
RD&E
Seal of Good Local

Governance (formerly
SGH)
Research Development
RDCs
and
Extension
SJPC
RE
Regional Development Councils
SLF
Security, Justice and

Peace Cluster
REDD
Renewable Energy
SLM
Sanitary Landfills
SME
Sustainable Land Management
REIT
Reducing Emissions from

Deforestation and Forest
Degradation
RHU
Amendments to the Real Estate

Investment Trust Law
RIPS
Rural Health Unit
RM
Revenue Integrity Protection

Service
RORO
Results Matrix
Roll-On/Roll-Off Partidong
RPM-P/RPA/ABB Rebolusyonaryong
Manggagawang Pilipinas/
Revolutionary Proletarian
Army/Alex Boncayao
Brigade
XXIV
SHFC
Seal of Good Housekeeping
Social Housing Finance

Corporation
Small and Medium Enterprises

SOCCSKSARGEN South Cotabato, Cotabato,
Sultan Kudarat, Sarangani,
General Santos City
SP
Social Protection
SPMS
SPUG
Strategic Performance
Management
System
SRA
Small Power Utilities Group
SRS
Sugar Regulatory Administration
SSF
Skills Registry System
SSS
Shared Service
Facility Social Security
System
STCW
Standards of Training,
Certification &
Watchkeeping
STI
Science Technology
and Innovation
SUC(s)
State Universities and College(s)
SWM
Solid Waste Management
SWS
Social Weather Station
WB-IFC
World Bank-International
Finance Corporation
WC-FSL
Working Committee on
Financial ServicesLiberalization
WCMC
World Commission Monitoring

Center
WEF
World Economic Forum
WGI
Worldwide Governance
Indicators
TA
Technical Assistance
TB
Tuberculosis
TESDA
WSS
Technical Education and Skills

Water Supply and Sanitation
WTO
World Trade Organization
ZamB
aSulT
a
Zamboanga del Norte,

Zamboanga del Sur,
Zamboanga Sibugay,
Basilan, Sulu and TawiTawi
TPA
Terrestrial Protected Areas
TSA
Treasury Single Account
TSP
Total Suspended Particulates
TVET
Technical Vocational
Education and Training
TVI
TVWS
Institutions Television White
UACS
Space
UHC
Unified Account Code Structures
ULAP
Universal Health Care
UN
Union of Local Authorities in

the Philippines
UNCAC
United Nations
UNCLOS
United Nations Convention

Against Corruption
UNCTAD
UN Convention on the Law

of the Sea
UNEP
United Nations Conference on

Trade and Development
VA
United Nations Environment

Programme
VE/V
Vulnerability Assessment
A
WatSan
Value Engineering/Value
Analysis
WAVE
Water and Sanitation
Wealth Accounting and

Valuation of Ecosystem
Services
WB
ZBB
Zero Based Budgeting
World Bank
XXV
A
roadmap
to
inclusive
growth
A roadmap to inclusive
growth
Undeniable
is the fact that some hopeful conditions
growth
have emerged, and that economic and political
opportunities now exist for a real change...
Philippine Development Plan 20112016 (p. 32)
Since the unveiling of the Philippine
Development Plan 2011-2016 (PDP) three years ago, the conditions
favoring a departure from the countrys perennial situation of poverty,
inequity, and lagging development have continued to hold, if not gotten better.
First, evidence of robust economic performance is
strong halfway into the current Plan period. The country has achieved
remarkable progress in sustaining its growth momentum, even exceeding Plan
growth targets. Unperturbed by the slump in the major economies in the
western hemisphere, the economy grew robustly in 2012 to 2013 supported by
low and stable inflation, a sound financial system, and a sustainable fiscal and
external position. W ith at least 7 percent gross domestic product (GDP)
growth for five consecutive quarters, the Philippines has emerged as one of the
best performers among Asian economies in the current period.
Second, the government has considerable fiscal
space to finance new initiatives and expand existing ones on account of
recent reforms in tax collection, revenue administration, and expenditure
management. W hile economic managers will have to continue exercising
prudence in public spending, government has ample elbow room for making
investments to catalyze private ventures, provide public goods and fund social
programs.
Third, the country enjoys an unprecedented level
of confidence among the international business community. The investment
grade status accorded by the three major credit rating agencies (Fitch,
Standard and Poors, and Moodys) in 2013 and the improved rankings recently
obtained by the country in several global competitiveness reports1 reflect the
renewed business confidence and only reinforce the increasing attractiveness of
the Philippines as an investment destination.
Finally, with its legitimacy never in doubt, the present
government is in a position to institute wide-ranging economic and social
reforms in pursuit of inclusive development. The passage of two important
pieces of long-pending legislation one restructuring taxes on tobacco and
alcohol, and the other providing mechanisms for households to manage family
sizeattest to the political capital of the current
1
These include the International Finance Corporations (IFC) Ease of
Doing Business Report, Institute of Management Developments (IMD) World Competitiveness Report,
Transparency Internationals Corruption Perceptions Index, The Heritage Foundations Economic Freedom
administration, which can be harnessed to advance fundamental, even if

politically controversial, reforms. Despite persistent challenges, the
administrations commitment to good governance has restored credibility in
government institutions with the President as Chief Executive continuing to
enjoy a high satisfaction rating among the general public.
UNFINISHED BUSINESS
Notwithstanding gains achieved in the areas of economy and governance,
there is a growing sense among the public that progress has been too slow
even in relation to the governments own pronouncements. W itness only
the critical commentaries aired in various fora pertaining to delays in the
implementation of vital infrastructure projects, or the incessant complaints
regarding the stubbornly high cost of doing business in the country. Still, a
more serious criticism is that the benefits of growth have not been broadly
shared among the population. Of the countrys 17 regions, three account for
close to two-thirds of GDP. Poverty incidence has declined only marginally
between 2009 and 2012, with about a quarter of the population considered
income poor. Employment has not grown fast enough and nearly a fifth of the
employed want additional work. And agrarian reform, still the countrys boldest
attempt at asset reform, remains to be completed. Thus, when viewed against the
promise of inclusive growth, the achievements do not seem to amount to much.
Simply stated, the gains have yet to materialize into actual, tangible
improvements in the lives of the majority of the people.
Table 1.1. Philippine Development Plan 2011-2016 targets and 2012Indicators
Target
2012-2013
2013
actual accomplishment
Accomplishmen
t
Real gross domestic product (GDP) annual
growth rate
Investment-to-GDP ratio
Unemployment rate
Poverty incidence based on population
7-8%
22%
6.8-7.2%
16.6%
7.2% (2013)
6.8% (2012)
21.1% (2013)
20.3% (2012)
7.1% (2013)*
7.0% (2012)
25.2% (2012)
* Average from January, July, April and October 2013 Labor Force Survey (LFS) rounds. The
October 2013 round excludes Leyte because of loss of data due to typhoon Yolanda. The rates shown
however are still comparable.
To be sure, poverty reduction is a long-term program that requires

uninterrupted growth over a reasonable length of time. The experiences of other
countries clearly demonstrate that rapid and sustained growth over a period of
eight to 10 years is necessary in order to make a significant dent on poverty.
This has not been the case for the Philippines whose past growth has been
characterized by alternating episodes of boom and bust. But it is not just the
short period of relatively high growth experienced thus far that explains why
not all boats have been lifted by the rising tide. It is also the consumptiondriven nature of the growth that has
tended to limit its beneficial impact, primarily on employment and incomes.

Thus, a re-balancing of the economy towards greater investments is in order even
as the growth momentum must be sustained.
Good governance is an
effective plat fo rm fo r
implementing development
strategies.
Concomitant with sustained economic growth is the need to continually

nurture credible and effective institutions to enforce the rule of law and
guarantee a stable and predictable investment climate.Transparency and
accountability in government transactions cement public trust in the state
bureaucracy and in the seriousness of governments efforts to address longstanding problems of poverty and inequity. In contrast, bad governance inhibits
investment and constrains growth; corruption exacerbates poverty and
inequality, undermines the social fabric, and leads to political instability
which makes poor economic performance and poverty mutually reinforcing.
Indeed, an important lesson derived from the first three years of Plan
implementation is that good governance is an effective platform for
implementing development strategies.
The problem is that both economic growth and good governance cannot
by themselves reduce poverty, let alone provide immediate relief from it. That is,
while strategically necessary for poverty reduction, they are not sufficient. As the
example of India shows, even two decades of rapid growth will not guarantee a
significant decline in poverty incidence. Other factors must be present that will
increase the likelihood of more people partaking of the benefits of growth sooner
rather than later through improved access to the available opportunities.
Access, however, has a spatial dimension, and the degree to which people can
benefit from the opportunities allowed by economic progress depends upon how
the limits imposed by geography can be overcome. This does not imply the
tried-tested- and-failed policy of uniformly dispersing production across space in
the mistaken belief that growth will be more evenly distributed and thus more
equitable. On the contrary, spatially uneven and unbalanced growth need not be
an impediment to the equalization of opportunities across space (Philippine
Human Development Report [PH DR], 2013). Lagging areas can be linked with
leading ones through connective infrastructure and human capital investments.
Small agricultural producers in rural communities can be encouraged to
engage in higher value-adding activities by linking them to the supply chain
of major economic players in urban or national markets who have access to
capital, technology, and market information.
By lowering mobility costs for goods and people, infrastructure investments
reduce the distance between people and economic opportunities. Likewise
investments in education and health that build human capabilities regardless of
location allow people to easily move to wherever the opportunities might be.
National and local governments, as well as civil society and peoples
organizations, can play a facilitative role in linking small producers with major
market players that are connected to the larger end-user market, whether
domestic or overseas.
An important implication of considering space is the necessity to change

mind- sets from a one-size-fits-all approach to planning and programming to
one that is more sensitive to diverse local conditions and needs. This
requires discarding business as usual where interdependent interventions are
carried out as disparate,
parallel activities by several national line agencies, or programs within a line

agency (PH DR, 2013).
Spatial consideration in planning, moreover, requires geographical convergence
of plans, programs and activities among national government agencies and
between national government agencies and local government units (LGUs)
to maximize effectiveness. This is already happening to some extent but
considerable scope remains for replication in various contexts. For example,
with the Department of Agrarian Reforms (DAR) program for agrarian reform
communities (ARCs), the Departments of Agriculture (DA), Environment and
Natural Resources (DENR) and LGUs respectively contribute for the roads and
irrigation, watershed protection services, and extension services to make the
land productive, while DAR and, subsequently, government financial
institutions support the farmers organizations in financing the requirements
for their enterprises. In addition, the DAR and Department of Trade and
Industry (DTI) bring together ARCs, often from contiguous towns, to
negotiate supply contracts with businesses downstream, in the process reducing
transaction costs and facilitating commerce.
The challenge for the remainder of the Plan period, therefore, is to ensure
that economic growth will be sustained, and that, moreover, it is inclusive; that
is, it will result in greater job creation of the productive and remunerative kind
and lead to the reduction of poverty in its multiple dimensions (Box 1.1). As in
the original Plan, the PDP: 2011-2016 Midterm Update (also referred to as the
Plan) will continue to give priority to addressing the infrastructure backlog and
investing in human capital. But for the Plan to have an immediate and palpable
impact on the population, key growth strategies will need to be informed by
geographical and sectoral specificities, as different sectors or groups of the
population are differently situated and respond differently to interventions based
on their geography, which in the Philippines is unusually diverse, fragmented,
and hazard-prone (PH DR, 2013).
Box 1.1. Measuring multidimensional poverty

Poverty is a state of being deprived of goods and services necessary for basic functioning. This is
manifested in several dimensions: lack of education, insufficient nutrition and poor health, inadequate living standard
(e.g. no access to clean water and sanitation facilities, electricity, poor quality of housing, etc.), lack of
income, social exclusion, disempowerment, unstable and poor quality of work/employment, and threat of violence.
In the Philippines, the state of being poor is proxied by current income. But given the inherent shortcomings of
income measurement and the imperfections in the financial market, current income is not a sufficient indicator of
the state of poverty. The Oxford Poverty and Human Development Initiative (2013) also observed that while this
method is very simple and easier to analyze, it does not provide an incentive to reduce the deprivations of the poorest
of the poor, nor can it be broken down by dimensions to show how people are poor.
A multidimensional measure involving several information/indicators to capture the complexity of poverty can
better inform policies to effectively formulate a poverty reduction strategy. In 2007, a new method called Alkire
Foster (AF) was devised to measure multidimensional poverty. It still uses a counting approach to distinguish the
poor households but now considers several factors that show poor peoples experience of deprivation. The new
approach shows societal poverty in a way that can be broken down by dimension and is able to identify how people are
poor.
Balisacan (2011) applies the AF methodology in the Philippines and estimates the incidence of multidimensional
poverty in 2008 using the Annual Poverty Indicator Survey at 28.2 percent. Disaggregating this number into specific
deprivation, the study finds that deprivation in amenities characterizes this deprivation, followed by deprivation in
health.
STRATEGIC FRAMEWORK
Figure 1.1 shows the overarching strategic framework of the Updated Plan,
with inclusive growthdefined as poverty reduction in multiple dimensions and
massive creation of quality employmentas the desired outcome.
For job creation, capital accumulation is necessary. Investment must
continually rise for the economy to grow and absorb labor into productive jobs.
Being a bet on the future, investment requires a stable and predictable market
environment. Macroeconomic stability, supported by sound monetary and fiscal
policy, a strong financial system, and healthy external sector, is thus essential to
maintaining positive consumer and business expectations about the future.
Financial markets also tend to look more favorably at countries whose
macroeconomic house is in order.
The performance of the production sectors (i.e. agriculture, industry, and
services) is, of course, a critical determinant of the economys growth potential
and its ability to create jobs. In part this is influenced by macroeconomic policy,
but sector-specific policies (e.g. fiscal incentives, credit subsidies) and other
crosscutting measures (e.g. labor market regulations and policies towards foreign
direct investments) also affect competitiveness. Of special importance in raising
productivity and expanding the range of products and services produced in the
economy is private investment in research and development (R&D), which
government can influence through its science and technology policy.The state
of the countrys infrastructure (roads, ports, airports, telecommunications,
transportation, etc.) and the availability of a healthy, highly trainable and skilled
labor force are similarly important factors bearing on the cost of doing business.
Circumscribing the above are the quality of governance, the natural
environment, and national security, all of which exert a profound influence on
the economys productive potential.
Figure 1.1. Updated Plan strategic framework
However, getting all the prerequisites for rapid and sustained growth right
is not sufficient for growth to be inclusive. Some individuals may be able to
benefit neither immediately nor at all from economic growth because of sickness,
physical disability, age, lack of education, location, or some natural or social
barriers. In these instances, inclusivity calls for more deliberate state action so
that any disadvantage owing to circumstance does not hinder a person from
gaining access to available opportunities to improve his or her lot. It is in this
sense that inclusive growth is about equalizing opportunities, rather than
outcomes.
PDP: 2011-2016 MIDTERM UPDATE TARGETS

The economy is targeted to track a higher growth path during the period 2014
to 2016. Employment rate is expected to increase to 93.3-93.5 percent and
incidence of income poverty to be reduced to 18.0-20 percent.The updated Plan
also includes as desired outcome the reduction of multidimensional poverty
incidence, from 28.2 percent in 2008 to 16-18 percent by 2016.
Economic growth
GDP is targeted to grow by 6.5 to 7.5 percent in 2014, 7 to 8 percent in 2015, and
7.5 to
8.5 percent in 2016.
Industry is projected to grow the fastest, led by construction and
manufacturing. Public construction is expected to pick up in 2014, as
government spearheads reconstruction efforts in the areas affected by typhoon
Yolanda and further addresses infrastructure bottlenecks elsewhere. Private
construction and manufacturing (in support of construction and new
dwellings) are expected to gain momentum beginning late 2014 up until the end
of the Plan period.
Indicators
Baseli
Annual Plan targets
ne
2014
2015
2016
Table 1.2. Gross domestic product
(GDP) and sectoral
(2012
growth rate targets, 2014-2016
) (in %)
GDP
Gross value added (GVA) in
agriculture, hunting, fishery
and forestry
GVA in industry
GVA in services
6.8
2.8
6.5-7.5
(0.9)-0.1
7.0-8.0
2.0-3.0
7.5-8.5
2.5-3.5
6.8
7.6
9.8-11.0
6.0-6.9
8.6-9.7
6.8-7.8
9.3-10.3
7.2-8.1
The service sector is expected to remain robust during the Plan period.
Real estate, renting and business activities, which include the information
technology- business process management (IT-BPM) sector, are targeted to grow
by an average of 9 percent beginning 2015, together with the expected
economic recovery in
developed countries. Similarly, tourism is also expected to recover around the

same time, growing by an average of 7.5 percent from 2015 to 2016.
The higher growth path is expected to manifest in all regions, as targeted by
the corresponding Regional Development Councils. The bullish regions are
Central Visayas, Caraga and the National Capital Region. It should also be
noted that Eastern Visayas is targeting a turnaround beginning 2014 even
coming from the heels of typhoon Yolanda.
Table 1.3. Gross regional domestic product (GRDP) growth
targets, 2014-2016 (in %)
Regions
Baseli
Annual Plan
ne
targets
(2012
2014
2015
)
National Capital Region*

Region I: Ilocos
Region II: Cagayan Valley
Region III: Central Luzon
Region IV-A: CALABARZON
Region IV-B: MIMAROPA
Region V: Bicol*
Region VI: Western Visayas
Region VII: Central Visayas
Region VIII: Eastern Visayas
Region IX: Western Mindanao
Region X: Northern Mindanao
Region XI: Davao Region
Region XII: SOCCSKSARGEN
Region XIII: Caraga
ARMM*
7.3
1.0
5.2
8.2
6.3
7.0
4.2
7.1
7.5
9.3
(6.2)
12.4
7.4
7.4
8.1
10.6
1.2
6.8-7.5
4.5-5.5
6.8-7.8
4.1-5.1
6.1-7.1
5.7-6.7
3.2-4.2
7.1-7.6
6.1-7.5
8.9-11.2
4.5-5.5
5.5-7.5
8.0-9.0
6.0-7.0
8.2-9.2
8.2-9.0
1.6-2.6
7.3-8.0
5.5-6.5
7.3-8.3
4.4-5.4
7.1-8.1
6.2-7.2
4.2-5.2
7.0-7.8
6.6-8.1
9.7-11.9
4.5-5.5
5.5-7.5
8.5-9.5
6.5-7.5
8.3-9.3
9.3-10.1
1.9-2.9
2016
7.8-8.4
5.5-6.5
8.2-9.2
4.7-5.7
8.0-9.0
6.6-7.6
5.2-6.2
7.0-8.0
7.3-8.8
10.1-12.5
4.6-5.6
5.5-7.5
8.5-9.5
7.7-8.7
9.1-10.1
9.9-10.8
2.4-3.4
* Estimated by NEDA-National Policy and Planning Staf
Employment
The unemployment rate is expected to decrease from 7 percent in 2012 to
6.5 to 6.7 percent by 2016. Assuming a labor force growth rate of between
1.7 to
1.9 percent,2
these targets translate to an additional 740,000 employed
persons per year.
The quality of employment is another indicator that will be monitored during
the remaining Plan period. The target is to reduce the underemployment rate
from the current 20 percent to 17 percent by 2016.
The lower labor force growth rate is due to the implementation of the K to 12 program.
Table 1.4. Employment targets, 20142016

Indicators
Baseli
ne
(2012
)
Unemployment rate (in %)

Employment generated (in 000)
Underemployment rate
(% of employed)
7.0
414
20.0
Annual Plan
targets
2014
2015
6.7-6.9
689-776
19.0
6.6-6.8
753-814
18.0
2016
6.5-6.7
664-753
17.0
Poverty incidence
The target is to decrease the incidence of poor individuals to 18.0 to 20.0

percent by 2016, which, admittedly, will fall short of the Millennium
Development Goals (MDGs) target of 16.6 percent by 2015. This new
target takes into consideration the slow response of poverty to economic
growth beginning 2006 and the setback in 2013 due to the wide-scale
destruction resulting from natural and man-made disasters.
In the Philippines, an individual is considered poor if the income of his
family falls below the poverty threshold. However, this measure is just a
convenient simplification. In reality, poverty is a state of deprivation in
multiple dimensions
health and nutrition, education, living standards (water and sanitation
facilities, electricity, quality of housing, etc.). Consideration of the multiple
dimensions of poverty then brings to the fore the issue of quality of life.
A study by Balisacan (2011) provides the baseline for the incidence of
multidimensional poverty. The target is to bring down this incidence from 28.2
percent in 2008 to between 16.0 and 18.0 percent in 2016.
The strategies in the PDP Midterm Update are directed at improving the
responsiveness of poverty to growth (which implies higher incomes),
enhancing the provision of basic services (so that quality of life is improved)
and increasing resilience to disasters (so that improved quality of life is
maintained). These strategies are discussed in the succeeding sections.
Indicators
Baselin
Annual Plan
Table 1.5. Poverty incidence targets, 2014-2016 (in % of population)
e
targets
2014
2015
2016
Poverty incidence
Multidimensional poverty
25.2 (2012)
28.2 (2008)
23.0-25.0
20.0-22.0
20.0-23.0
18.0-20.0
18.0-20.0
16.0-18.0
SECTORAL STRATEGIES
How the production sectors (i.e. industry, services, and agriculture) perform
will largely determine the economys growth trajectory in the next three years as
well as the potential for greater employment creation and poverty reduction.
Industry and services

O ver the next three years, growth will be mainly driven by the industry and
services sectors (Chapter 3). These sectors are targeted to grow by 7.0 to 8.0
percent in 2014, 7.5.to 8.5 percent in 2015 and 8.0 to 9.0 percent in 2016,
resulting in additional employment in said sectors, averaging 887,000 to
921,000 per year from 2014 to 2016. For this to happen, investments in the
sectors need to increase, which will raise the demand for labor. Investments3
are targeted to increase by 36 percent between 2012 and 2016.
To achieve the above goals, specific interventions need to be undertaken
to improve business climate, increase productivity and improve innovative
capacity. At the same time, government will continue to promote the country as
a desirable investment destination.
Improving the business climate means reducing the cost of doing business, or
costs associated with the administrative procedures from starting a business to
closing one, labor market rigidities, and overhead and logistics.
Going forward, government will continue to promote transparent and
predictable policies and further streamline bureaucratic procedures to encourage
investments. By 2016, the government aims to have all LGUs adopt and
streamline the business permit licensing system. The government will likewise
continue to undertake measures to link the Philippine Business Registry
with LGUs to ensure that businesses in local communities enjoy the
benefits of easier registration. The linkage of the National Single W indow to
the Electronic to Mobile (E2M) system will be pursued to facilitate trade and
reduce cost of transactions for businesses.
Equally important are adequate and good quality infrastructure, such as
intermodal transport (air, sea, and land), power supply facilities, and logistics,
among others. Government will continue to invest in infrastructure
development,with government capital outlay increasing to 5 percent of GDP by
2016.
The government will continue to push for Voluntary Codes of Good Practices
in industries to maintain industrial peace. Mutually agreed-upon work
arrangements, which increase efficiency, simplify operations, and are consistent
with the promotion of employment and protection of basic rights of workers, will
be supported.
10
The following subsectors will be encouraged in view of their potential to

contribute to employment generation as well as rapid and sustained growth: (a)
agro-industry (related to coconut coffee, cacao, fisheries and forestry); (b)
manufacturing, especially food manufacturing, garments, wood furniture and
fixtures, and halal food industry; (c) tourism; (d) IT-BPM; (e) construction; and
(f ) logistics.
Concerning the key sectors identified above, the government will

provide comprehensive business intelligence to enable businesses to make
informed decisions. It will also invest in the needed product quality monitoring
infrastructure to ensure that the countrys products meet international
standards to penetrate export markets.
The industry clustering program will be expanded. Under this program,
industries prepare sectoral roadmaps that show linkage with primary sectors
as suppliers and/or markets; and continuously upgrade their technologies and
facilities with governments proactive support through the establishment of
technology business incubation centers, shared service facilities that provide
testing laboratories for safety and quality standards, agro-industrial hubs and
central storage.
Innovation and product development will be supported. The country will make
full use of existing technologies to make local industries competitive and
innovative while building local R&D capacity to address local problems,
including green technologies. The government will also ensure that even micro,
small
and medium
enterprises (MSMEs)
have access
to these
technologies.
Moreover,
the government
will intensify
advocacy
programs
that will
encourage businesses to take advantage of benefits offered by Philippine
participation in free trade agreements and the ASEAN Economic Community
2015. Investment promotion activities will be undertaken not only in the
traditional investor countries (i.e., US, Japan, European Union), but also in
member-countries of economic groups to which the Philippines belongs.
Related to this, the government will aggressively promote unified country
branding that will bring home the message that the Philippines is a producer
and supplier of high quality, ethical, sustainable and world-class products and
services which are valued worldwide.
The agricult ure and

fisheries sector is cent ral
to addressing th e countr ys
employment and povert y
problems.
Agriculture
The agriculture and fisheries sector is central to addressing the countrys

employment and poverty problems. Nearly a third of the countrys labor force
is employed in agriculture and 60 percent of them are considered vulnerable.
Moreover, the sector has been observed to be shedding jobs too quickly, more
than can be explained by productivity increases, and certainly more than can be
absorbed by the growing industry and services sectors.
For the remaining Plan period, the PDP strategies for agriculture and
fisheries sector (Chapter 4) will aim to (a) increase productivity in the sector;
(b) increase forward linkage with the industry and services sectors; and (c)
improve sector resilience to risks, including climate change.
Interventions will be directed towards increasing the productivity of
key commodities, such as palay, corn, sugarcane, pineapple, coconut, coffee,
banana, mango, livestock and poultry and fisheries, among others.
Productivity in these commodities is targeted to increase by 19 percent from
2012 to 2016. Investments in R&D and extension will be increased to
generate appropriate technologies
11
and to strengthen the capacities of farmers and fisherfolk. Agrarian reform

will be fast-tracked; in particular, the distribution of individual land titles
will be accelerated to provide greater security of tenure and access to finance for
agrarian reform beneficiaries.
In order to facilitate the linkage of agriculture to the industry and services
sectors, farmers and fisherfolk will be trained in value-adding, agri-business
development and value chain management activities.
Farmers and
fisherfolk groups and cooperatives will be strengthened and, where possible,
transformed into MSMEs that can transact with other MSMEs in industry and
services.
Geography is an important
determinant of the qualit y
of human life because it
facilitates or obstructs
access to opportunities
for improving ones
conditions, whether these
are economic, social, or
political.
12
Rural infrastructure will be enhanced by focusing on connectivity

between production areas and markets, as well as facilities that provide
production and technology choices to farmers and fisherfolk. Public-private
sector partnerships will be explored to finance certain postharvest facilities and
Meanwhile, to increase resilience, households engaged in agriculture and
other rural infrastructure.
fisheries will be encouraged to diversify production and livelihood sources. The
insurance system for the sector will also be strengthened. Moreover, the
Community- based Employment Program (CBEP) will be re-designed to
function as a social protection mechanism.
SPATIAL CONSIDERATIONS
Geography is an important determinant of the quality of human life because it
facilitates or obstructs access to opportunities for improving ones
conditions, whether these are economic, social, or political (PH DR, 2013). The
easiest way to think of the effect of geography on access to opportunity is in
terms of distance, where the two are inversely related. However, access may also
be determined by other initial conditions apart from distance; say, the quality of
ones natural environment (that causes one to be healthy or sickly, less or more
vulnerable to disasters), or the quality of institutions (that may encourage or stifle
private initiative). But these, too, take place in space. Hence, provinces along the
Philippines eastern coastline that are perennially visited by typhoons tend to be
poorer on average than the rest of the country. So, too, are those provinces in
the conflict-affected areas of Mindanao, where the risk to life and property is
relatively high. To talk about inclusive growth without regard for location is to
entirely miss the point.
Economic growth by its nature generates unevenness as economic activity
tends to concentrate in space to take advantage of agglomeration economies.
These refer to the increasing returns from being closer to markets for inputs and
products, as a result of which economic activity becomes more concentrated and
magnifies the spatial disparities. Hence, some regions lead while others lag.
Sixty-two percent of the Philippines GDP, for example, is accounted for by the
National Capital Region, and its two adjacent regions, CALABARZON to the
south and Central Luzon to the north. Not surprisingly, these regions host the
provinces with the lowest incidence of poverty (National Statistics Office
Family Income and Expenditure Survey [FIES], 2012). Clearly, more deliberate
state action is needed to ensure that growth is truly inclusive.
In order for growth to result in more opportunities, and thereby accelerate

poverty reduction, the Updated Plan will deliberately address the constraints
faced by the poor as summarized by their province of residence.The provinces are
categorized on the basis of some criteria. These are (a) number or magnitude of
poor households in the province; (b) the provincial poverty incidence, or the
proportion of poor individuals to the provincial population; and (c) the
provinces vulnerability to natural disasters (floods and landslides, in
particular).
Table 1.6 (Category 1) shows the 10 provinces in 2010 according to the number
of poor families, while Table 1.7 (Category 2) presents the 10 provinces with
the highest percentage of families considered poor. Except for Pangasinan,
Q uezon, Masbate, and Apayao, all provinces in the two categories are located in
the Visayas and Mindanao.
These areas, which have high number of poor families, are not necessarily
the poorest provinces. In fact, for a number of the provinces in this category,
namely Cebu, Pangasinan, and Iloilo, development opportunities clearly exist.
However, pockets of poverty also exist in these provinces. In-migration may also
be a factor to the extent that the provinces tend to attract the poor from other
places.
W hile there may be economic growth in these provinces, opportunities are
limited and certain segments of the population, perhaps with limited skill sets,
are unable to readily participate in the growth process. Addressing the
constraints faced by the poor in these provinces requires being able to track
them down. For this reason, data from the National Household Targeting
System for Poverty Reduction (NHTS-PR) that identifies the poor by name
are used.
Province
Region
Table 1.6. Category 1: Ten provinces with high

magnitude of poor households, 2010
Number of
poor
household
s
Zamboanga del Sur

Cebu
Pangasinan
Negros Occidental
Camarines Sur
Leyte
Iloilo
Sulu

Region I: Ilocos Region
Region V: Bicol
ARMM
170,181
151,425
148,601
138,664
136,208
132,377
122,770
122,218
Quezon
Davao del Sur

Region XI: Davao Region
122,139
111,655
Source: National Household Targeting System for Poverty Reduction (DSWD,

2010)
growth
13
Provinces in this category are mostly in Eastern Visayas, Autonomous
Region in Muslim Mindanao (ARMM) and SOCCSKSARGEN (Central
Mindanao). They have small population, are less dense, or are located in remote
areas. Weather- related events and armed conflict have been additional factors
to contend with. These provinces are generally characterized as having
limited opportunities for development. Consequently, between 50 to 75
percent of the residents in these provinces are considered poor based on the
2012 FIES.
Table 1.7. Category 2: Ten provinces with highest poverty
incidence
based on population, 2012 (in
%)
Province
Region
Poverty
Incidence
(%)
Lanao del Sur

Maguindanao4
Eastern Samar
Apayao
Zamboanga del Norte
Autonomous Region in Muslim Mindanao

Autonomous Region in Muslim Mindanao
73.8
63.7
63.7
61.4
54.4
Camiguin
Saranggani
North Cotabato
Masbate
Region X: Northern Mindanao

Region V: Bicol
53.6
53.2
52.4
51.3
Northern Samar
50.2
Source: Philippine Statistics Authority - National Statistical Coordination Board

(2013) Note: National average of poverty incidence is at 25.2 percent.
Meanwhile, certain geographic characteristics also make provinces exposed
and prone to multiple hazards, such as landslides and flooding. W hen these
disasters occur, the marginally non-poor in these provinces can slide into poverty
relatively quickly. These provinces are presented in Table 1.8. Most of them are
included in the Hazards Mapping and Assessment for Effective CommunityBased Disaster Risk Management (READY ) Project, and they generally
traverse the countrys eastern seaboard facing the Pacific Ocean (see Figure
1.3).
Notable in the list are the provinces hit by major weather-related disasters
in 2013the earthquake in Bohol and super typhoon Yolanda. The latter caused
12.2 million Filipinos to lose family members, their homes and/or properties,
as well as their sources of livelihood and employment. It is estimated to have
increased national poverty incidence by about 2 percentage points (ppts)
and slashed economic growth rate by 0.3 ppts in 2013.
Maguindanao is also among the Top 10 provinces in terms of the magnitude of the poor. However, it shares
more similarities with Category 2 provinces (namely, conflict affected and limited development opportunities)
than with Category 1 provinces.
4
14
Table 1.8. Category 3: Thirty provinces exposed to

multiple hazards, by region
Region
Province
Region I: Ilocos
Ilocos Norte
Ilocos Sur
Abra
Benguet
Region II: Cagayan Valley
Cagayan
Quirino
Isabela
Nueva
Vizcaya
Zambales
Pampanga
Aurora
Region III: Central Luzon
Cavite
Laguna
Rizal
Quezon
Region V: Bicol
Albay
Catanduanes
Antique
Iloilo
Bohol
Eastern Samar
Leyte
Northern Samar
Southern Leyte
Zamboanga del Sur

Zamboanga Sibugay
Region XIII: Caraga
Dinagat Islands
Agusan del Sur
Surigao del Norte
Surigao del Sur
Sources: Department of Science and Technology and

Department of Environment and Natural Resources (2012)
15
Figure 1.2. Map of Category 1-3

provinces
LEGEND
Category 1
Category 2
Category 3
Category 1 and 3
Category 2 and 3
For provinces in Category

1 where development
opport unities exist,
interventions should
be aimed at increasing
investments to create
more employment
opport unities.
Differences in the characteristics owing to location and initial endowments

across the provinces in the above three categories imply different constraints to
growth and opportunities to participate in growthfor the population,
especially the poorer segments, in these provinces. Hence, different responses
are required.
For provinces in Category 1 where development opportunities exist,
interventions should be aimed at increasing investments to create more
employment opportunities. Improving physical infrastructure to enhance
trade and labor mobility are critical interventions.
16
Depending on their comparative advantage, the potential for agro-industry,

food manufacturing, tourism and logistics in some of the provinces should be
exploited. Some of these provinces may also host an IT-BPM subsector.
Enabling the poor to provide goods and services for these subsectors can unleash
the growth potentials of these industries while also increasing remunerative
employment opportunities for the poor. In line with this, the government will
facilitate enhancement of the human capital of the present and potential
workforce to ensure that they have the knowledge and skills that are relevant
to the needs of industry and services, particularly the key sectors. Firms will be
encouraged to provide inputs to the design of technical-vocational education
and training (TVET ) and higher education institution (HEI) programs to
increase the employability of the workforce, especially from the poor
households.
Providing training on entrepreneurship alongside introducing flexibilities
in work arrangements may also be warranted. In the relatively more developed
and urbanized areas (e.g. Cebu), social services need to be continually
upgraded to prevent congestion as a result of in-migration from other areas that
may not be as well-endowed.
In the provinces falling under Category 2, the imperative is to ensure that
basic social services in the form of health services, basic education, water and
sanitation are available. These spatially blind investments promote economic
and physical mobility, making it possible for people in these areas to outmigrate, if necessary, to gain access to opportunities wherever these may be
while economic opportunities in the area are still being created. Small
agriculture-based enterprises linked to the supply chain of product or service
providers in the more developed areas of the region should be encouraged as a
way of increasing employment and ensuring incomes. In areas where human
security is particularly at risk because of violence or armed conflict, peacebuilding efforts should be earnestly pursued by addressing the fundamental bases
of the conflicts.
One project that has the potential for greater value-adding and linking
with downstream end-users and consumers is the Integrated Coconut
Industry Development and Poverty Reduction Project. The implementation of
this project, initially in Category 2 provinces, will be continuously
monitored for possible replication to cover other areas producing coconuts
and/or other commodities.
The strategies to be implemented in the vulnerable areas belonging to
Category
3 should focus on disaster-risk reduction and mitigation, social
insurance and social protection, and income diversification. Albay (Bicol)
and Q uezon (CALABARZON) are way ahead of the pack, with
geohazard maps and institutional mechanisms for disaster-risk management
already in place. These should be further studied for possible replication.
In the provinces falling

under Category 2 , the
imperative is to ensure
that basic social services
in the form of health
services, basic education,
water and sanitation are
available.
The strategies to be
implemented in the
vulnerable areas belonging
to Category 3 should
focus on disaster-risk
reduction and mitigation,
social insurance and social
protection, and income
diversification.
17
CROSSCUTTING STRATEGIES
The above strategies will be supported by a menu of interventions to improve
the quality of human and physical capital and access to financing. At the same
time, efforts to promote lasting peace and sustainable development will be
implemented. And based on the experience of the past three years,
macroeconomic stability and good governance will remain the platform for all
these.
Social development
There is medium to high

probabilit y that the country
will achieve most of its
MDG targets by 20 15.
Some individuals have not been able to take advantage of growth opportunities
for reasons of ill-health or inadequate educationtwo of several
dimensions of poverty.
The Updated PDP envisions equalizing opportunities for people to get
themselves employed, acquire assets, and improve their quality of life (Chapter
6). Under the Plan, social development interventions will directly reduce
poverty in its multiple dimensions by increasing the poors access to social
services and basic facilities.
The M DGs present a framework for defining quality of life, to which
the Philippines has committed at the turn of the millennium together with the
rest of the world.
There is medium to high probability that the country will achieve most of
its M DG targets by 2015. Of the health-related M DGs, the target indicators
that will require more aggressive programs are on (a) reducing maternal mortality
ratio,
(b) achieving universal access to reproductive health, and (c) halting and
reversing the spread of H IV.
The Updated Plan commits to achieving these unmet targets by improving
the delivery of health services. The major challenge is to ensure a defined
minimum set of clinical competencies in family planning and maternal and
childcare services among existing staff, especially at the level of rural health units
and barangay health stations. At the same time, government will intensify
programs to hire and train additional skilled health and nutrition workers
especially in disadvantaged areas to deliver the required public health care
services for poor families.
Investment in education will be increased and the quality of public
investments will be improved. Providing access to education and training for life
skills and the capacity to pursue economic opportunities helps achieve
inclusive development. Moreover, this is part of governments commitment to
the M DGs, of which five are education-related.
18
The K to 12 program represents the governments commitment to

investing in education. More than adding two years to basic education, in line
with the rest of the world, the K to 12 program is about enhancing the
curriculum, making it learner-centered and ensuring that teachers are retooled
and adequate instructional
materials and educational facilities are provided. These will be accompanied

by the proper targeting of areas, prioritizing those with severe shortages to
ensure equitable distribution of resources. The program will also address low
performance in terms of education indicators among regions, divisions and
schools.
There is also a need to develop competencies and life skills for the current and
would- be members of the labor force to enable them to pursue economic
opportunities. Strategies consist of expanding access to quality TVET and
developing workforce competencies required in key growth areas, as well as in
leadership, management and innovation. The same goes for H EIs. As a proxy
for quality, the Updated Plan will focus on improving the performance of higher
education students in licensure examinations across disciplines.
Social
protection
Importantly,
social protection from catastrophic situations will be designed
to prevent the poor from falling deeper into poverty and the near-poor from
joining the ranks of the poor. Chapter 6 provides, among others, a menu of social
protection programs that will be developed to address different types of
hazards faced by different localities.
Increasing Philippine Health Insurance (PhilHealth) coverage and benefits
is a major social protection program. The challenge is to seek out and cover the
poor who have not been surveyed by the National Household Targeting
System for Poverty Reduction (NHTS-PR) nor by LGUs (e.g. indigenous
people, street children, children from orphanages, persons with disability,
internal migrants, etc.). The coverage of the Individually Paying Program will
also be increased. One strategy is to cover them at the point of care. Close
collaboration with LGUs and other government agencies as service points is also
necessary.
The CBEP will also be re-designed to function as a social protection
mechanism that replaces lost income in times of crises or disasters. The
program represents all projects of government that employ unskilled
workers like maintenance of farm-to-market roads and other community
infrastructure, re-greening and reforestation programs, coastal resource
management program and the like (Chapter 9). The implementation of these
projects can be timed to coincide with the lean months in agriculture or after the
onset of disasters or other shocks, thus smoothing income streams.
Social protection from

catastrophic sit uations w ill
be designed to prevent the
poor from falling deeper
into povert y and the nearpoor from joining the ranks
of the poor.
Informal tenure of shelter is also associated with vulnerability and also needs to
be addressed. O wing to poverty, informal settlers live in shelters to which they
have no legal right to occupy or in areas prone to disasters just to survive until
they find decent and more regular employment. Having no secure shelter or
properties, they face risks of being evicted or of falling victims to natural and
man-made disasters.
For the remaining Plan period, the target is to deliver 510,683 units of housing
assistance focusing on vulnerable households.
A menu of housing
options/
growth
19
assistance based on the needs and affordability of intended housing

beneficiaries will also be developed. The beneficiaries include informal settler
families, victims of calamities such as typhoons, earthquakes, fire, and armed
conflict, and low- salaried employees.
For 2014 to 2016, the Housing and Land Use Regulatory Board will
continue to extend technical assistance to LGUs in the formulation and/or
updating of comprehensive land use plans. The objective is to provide a
holistic approach to sustainable development, even sustainable urban
development.
Public infrastructure
spending w ill be increased
to at least five percent of
the GDP by 20 16.
Infrastructure
development
Infrastructure development
will be accelerated to support rapid and
sustained growth and promote inclusivity (Chapter 10).
As earlier
mentioned, public infrastructure spending will be increased to at least five
percent of the GDP by 2016. In addition, private sector investments are
expected to supplement this amount through public-private partnerships.
Infrastructure development is necessary to catalyze development in the key
sectors listed above.
In agriculture, the objectives are to increase agricultural productivity and
linkage with industry and services. Adequate irrigation facilities will be provided,
including small irrigation facilities, to increase crop productivity and enable
farmers to have greater control over their production patterns. In addition,
farm-to-market roads will be constructed or rehabilitated to strategically
connect rural and agricultural areas to market towns and destinations.
In industry and services, infrastructure development will focus on improving
the connectivity between urban centers and regional growth hubs, between
airport and ports and economic/industrial zones; and between airport and
ports and tourism destinations. Box 1.2 lists the major infrastructure projects
designed to improve connectivity.
To promote the IT-BPM sector, government will provide the overall
development framework on the deployment of new technologies and
improvement of the countrys digital connectivity.
Energy security will also be pursued by increasing energy generating
capacity, encouraging efficient use of energy and implementing various
transmission projects.
Provision of adequate infrastructure also addresses inequalities in opportunities.
For the remaining Plan period, the government will massively construct,
rehabilitate and upgrade basic health care hospitals and facilities, close the
student-classroom gap, provide water supply and sanitation facilities in rural and
hard-to-reach areas, and provide housing units to over 500,000 households.
20
The government will continue providing infrastructure support to conflictaffected and impoverished areas through the Investment Support Program
(ISP) for the ARMM and the Payapa at Masaganang Pamayanan or PAMANA
Program.
Infrastructure sector strategies will be implemented to ensure a livable and
safe environment. The Master Plan for Flood Management in Metro
Manila and Surrounding Areas will be implemented to protect lives, property
and livelihood
Box 1.2. Major infrastructure projects to improve connectivity
between urban centers and regional growth hubs
Airports
Bicol International Airport Development
Puerto Princesa Airport
New Bohol (Panglao) Airport Development Project
Clark International Airport Construction of a Budget/Low Cost

Carrier (LCC) Terminal
Mactan Cebu International Airport

Construction of the New Passenger International Terminal
Tacloban Airport Redevelopment Project
NAIA Terminal 3 Completion Works
NAIA Terminal 1 Retrofitting/Renovation

Road-RORO Terminal System
Central Spine RORO Development

Expressways
Central Luzon Link Expressway (CLLEX), Phase I
Cavite-Laguna Expressway (CALAX)
Tarlac-Pangasinan-La Union Expressway
Skyway- FTI-C5 Connector
NAIA Expressway Phase 2
Skyway Stage 3 & NLEX-SLEX Connector

Roads
Samar Pacific Coastal Road Project
Albay West Coast Road
Panay East-West Road
Cebu City-San Remigio Road
Mindanao East-West Lateral Road
Bayugan-San Luis-Talacogon-La Paz-Loreto-Veruela-Sta. Josefa

Road
Basilan Circumferential Road

Urban Transport System
LRT Line 1 and Line 2 System Rehabilitation
Common Station for LRT 1, MRT 3 and MRT 7
MRT 3 Capacity Expansion
MRT 7
21
from floods and related environmental risks. Flood management structures

in highly vulnerable areas based on river basin master plans will be constructed.
The asset base of the

financial system needs
to increase to service
the needs of a growing
economy. At the
same time, service
coverage should also
expand.
The government will strengthen the coordination among the National

Disaster Risk Reduction and Management Council (NDRRMC), Advanced
Science and Technology Institute (ASTI), Philippine Atmospheric,
Geophysical
and Astronomical Services Administration (PAGASA),
Department of Public Works and Highways (DPWH), Metro Manila
Development Authority and LGUs to improve existing flood forecasting and
warning systems, particularly in provinces vulnerable to flooding.
Good governance will also be promoted with the use of proper infrastructure.
The e-Government Master Plan 2013-2016 will serve as a blueprint for
introducing innovations within government work processes, enhancing
administrative productivity and allowing more citizen participation.
Financial
inclusion
The efficient mobilization and management of resources to finance the

countrys economic development requires a responsive, development-oriented,
and inclusive financial system. For the next three years, the objective is to
maintain a resilient and inclusive financial system underpinned by the
discipline of credit standards. This means that the asset base of the financial
system needs to increase to service the needs of a growing economy. At the
same time, service coverage should also expand (Chapter 5). Achieving this
objective calls for: (a) managing capital inflows towards real sector investment;
(b) building the needed financial market infrastructure; and (c) pursuing the
financial inclusion agenda.
By the end of the Plan period, the above strategies are expected to (a)
raise the total assets of the financial system by more than 10 percent from the
2012 level; (b) improve the national saving rate (gross national saving to GDP
ratio) from 23 percent in 2012 to higher than 30 percent; (c) increase the
number of deposit accounts per 1,000 Filipino adults from 454 in 2012 to 750;
(d) improve microfinance services delivery from PhP8.4 billion in 2012 to
more than PhP10 billion; and (e) increase the number of bank access points per
10,000 population to 6 from 5 in 2012.
Channeling the capital inflows from portfolio capital and overseas
Filipino remittances towards investments in the real sector remains a challenge.
But if the appropriate match between financial instruments and risk-return
profiles of the relevant group can be struck, then the potential for
expanding investment and creating employment can be realized.
22
In connection with financial inclusion, the following strategies already identified

in the original PDP will be continued: (a) establishment of a regulatory
environment that balances financial inclusion objectives with financial
stability goals; (b) promotion of use of alternative products and delivery of
financial services in underserved and unserved areas of the country; (c)
promotion of financial literacy
and consumer education; and (d) encouraging the continuing development of

new loan products and other banking services aimed to address the special needs
of the poor, women and persons with disability.
Among the programs and activities in support of inclusive finance are: (a)
the Economic and Financial Learning Program of the Bangko Sentral ng
Pilipinas (BSP) to promote greater public awareness of economic and financial
issues and provide information to enable households and businesses to make
well-informed economic and financial decisions; and (b) the BSPs Credit
Surety Program, which creates a trust fund from the contributions of a
provincial government and a cooperative in the same province to encourage
financial institutions to lend to MSMEs in the province using the surety cover
as a collateral substitute.
A system that will encourage financial institutions to accept other than
real property assets as security for lending to MSMEs is also being established,
with its framework being finalized in June 2013. This is expected to enhance and
simplify the processes of taking movable and intangible assets as collateral.
Finally, measures to strengthen the regulatory and supervisory framework
and enhance the risk management capability of banks will be sustained to
ensure the stability of the system. Macroeconomic and financial sector policies
will be closely coordinated through the governments Financial Sector Forum.
The countrys environment

and natural resources are
a means and an end in
achieving inclusive grow th .
Environment and natural resources

The countrys environment and natural resources (ENR) are a means and
an end in achieving inclusive growth. As a means, they provide the needed
inputs and ecosystem services to sustain resource dependent communities,
agriculture, industries, water supply and the energy sector, among others.
As an end, the ENR sector bears both the positive and negative impacts of
activities intended to accelerate economic growth.
For the remaining years of the PDP, focused interventions are geared
towards
(a) increasing adaptive capacities of communities, (b) effectively managing
ENR for sustainability and (c) improving environmental quality. These are key
towards achieving a sustainable and climate-resilient environment, which is
the sectors contribution to inclusive growth.
Increasing adaptive capacities of communities requires more climate
change adaptation and disaster risk reduction activities being mainstreamed
into local development plans. As outlined in Chapter 9, this Updated Plan aims
for an annual increase in the level of investments for climate change adaptation
and mitigation (CCA/M) and disaster risk reduction and management
(DRRM). It will entail promotion of climate/disaster resilient infrastructure for
which innovative financing will have to be designed. The government is also set
to invest in developing and adopting more effective vulnerability assessment
tools to identify highly susceptible communities and prevent and mitigate
potential disaster impacts.
23
To sustain the countrys ecosystem services, effective management of

natural resources will require strengthening the conservation, protection and
rehabilitation of forest and watershed, coastal and marine life, land and mineral
resources, and the entire biodiversity.
Capable and credible

institutions will ensure that
critical reforms introduced
and implemented are welldesigned, enforceable, and
durable.
The quality of air, land and water should meet minimum quality standards
to provide communities with a healthier environment. It is imperative for the
ENR sector in the next midterm to encourage research, development and
extension, sustain financing, improve law enforcement and strengthen
coordination and institutional mechanisms.
Good
governance
In the Updated PDP, as in the original PDP, the need for good
governance is made clear. Chapter 7 discusses the need for institutions to
transform themselves to meet the demands of a more complex economy and a
better informed, more sophisticated citizenry. Capable and credible institutions
will ensure that critical reforms introduced and implemented are well-designed,
enforceable, and durable.
The Plan aims for effective and efficient governance by empowering
citizens with access to information and venues for participation, as well as by
providing high-quality public services where service providers are held
accountable for the quality and efficiency of services delivered. Intensifying anticorruption efforts will continue to be a key strategy. Improving
administration of justice will form an important part of efforts to restore the
credibility of the justice system and to earn citizens trust. Moreover, as
economic opportunities are expanded, the Updated PDP emphasizes the need
for efficiency of regulation such that broader interests are served and economic
justice is achieved without going through tedious processes.
To improve transparency, citizens participation and accountability, strategies
will aim to deepen participatory planning and budgeting, monitoring and
evaluation (M&E), support community and civil society organization
participation, and enhance voters education. Anti-corruption efforts will be
further intensified by strengthening internal control systems in relation to the
generation and allocation of government funds, and the enforcement of penalties
against those found guilty of corrupt practices.
In terms of strengthening rule of law, the PDP targets to improve the
Philippines percentile rank in Worldwide Governance Indicators (WGI)-Rule
of Law from
33.65 in 2010 to at least 60 by 2016. Backlogs in investigations/cases will
be significantly reduced. By 2016, the percentage of investigations/cases beyond
the maximum prescribed periods will have been reduced from 27 percent in
2011 to 15 percent at the National Bureau of Investigation and from 60 percent
in 2010 to 30 percent at the DOJ Prosecutors Investigation. Phase I of the
National Justice Information System will have been 100 percent completed by
2016.
24
Strategies to improve administration of justice include reducing backlogs

and decongesting case dockets; instituting good governance in the justice
system,
including performance and integrity management systems and

computerization of processes and services; streamlining criminal
investigation; addressing fragmentation in the justice system; promoting
and maximizing Alternative Dispute Resolution; enhancing access to justice by
the poor and other vulnerable sectors through the implementation of the
Recognizance Act of 2012 (RA 10389); and ensuring consistency and stability of
jurisprudence.
Furthermore, enhancing economic justice entails enacting a unified
competition/ anti-trust law and intensifying enforcement efforts, in
partnership with sector regulators and other stakeholders; addressing efficiency
concerns on commercial dispute resolution and intensifying tax enforcement
through the Run After Tax Evaders (RATE) and Run After The Smugglers
As
before,
the accomplishments on good governance will be judged by how
(RATS)
programs.
well the country performs in international rankings. The PDP targets to
improve the countrys Open Budget Index score from 48 in 2012 to 60 by
2016; the countrys percentile rank in the WGI-Voice and Accountability from
48.34 in 2010 to at least 50; in WGI-Government Effectiveness from 55.5 in
2010 to at least 70; and in WGI-Control of Corruption from 22.38 in 2010 to
at least 60 by the end of the Plan period. Furthermore, the PDP targets to
improve the countrys percentile rank in WGI-Regulatory Q uality from 44.98
in 2010 to at least 70 by the end of the Plan period.
Stable national
security
A politically stable and secure nation is necessary to achieve development

and improve the collective welfare of the people. Chapter 8 presents the
governments twin goals of attaining peace and security. .
The government will

continue to pursue
negotiated political
set tlement of internal
armed conflict . The
Payapa at Masaganang
Pamayanan (PAMANA)
will remain as the
flagship development
program.
Building on the positive results in peace tables, particularly with the

Moro
Islamic
Liberation
Front
(MILF),
Cordillera
Bodong
Administration/Cordillera Peoples Liberation Army (CBA/CPLA), and the
Rebolusyonaryong Partidong Manggagawang
Pilipinas/Revolutionary
Proletarian
Army/Alex
Boncayao Brigade (RPM-P/RPA/ABB), the
government will continue to pursue negotiated political settlement of internal
armed conflict. The Payapa at Masaganang Pamayanan (PAMANA) will
remain as the flagship development program that aims to bring back the
governments presence in conflict-affected communities through improved
access to basic social services, strengthening of institutions, and protection of
childrens and womens rights, as well as ensuring their participation in peace
building and development efforts. The government targets to significantly
increase the number of communities in conflict-affected areas that are able
to return to conditions where they can achieve their desired quality of life
within a peaceful society.
The government also aims to significantly reduce criminality, uphold
sovereignty, and ensure protection of its people and create a safer and more
secure environment conducive to national development. The police and other law
enforcement agencies will intensify their operations against criminality, armed
violence and transnational
growth
25
security issues such as terrorism, trafficking in persons, illegal arms and

drugs smuggling, and the emerging concerns on cybercrime.
The government will also exert all efforts to ensure the countrys sovereignty
over its territories by pursuing a rules-based collective security framework in
international relations. Moreover, given the increasing occurrences of
extreme natural hazard events, the government will increase its capability in
preparedness against natural as well as human-induced disasters and emergencies
to protect lives and properties of its citizens.
Qualit y infrastructure
increases macro-level
competitiveness and
encourages investments,
w hile government
spending on social
services serves to
equalize opportunities
and leads to sustainable
povert y reduction.
Macroeconomic
stability
The strategies enumerated in the Plan will be implemented without

sacrificing macroeconomic stability (Chapter 2).
The government aims to increase the revenue effort to 17.1 percent of GDP
by 2016. The tax effort is targeted to increase to 16.1 percent in 2016
from 13.4 percent in 2013. This will be due to heightened tax collection efforts
of the BIR and the more aggressive campaign of the BOC to curb smuggling.
Moreover, the granting of fiscal incentives shall be rationalized to minimize
duplication while encouraging investments that have high backward and
forward linkages and generate quality employment.
At the subnational level, the Bureau of Local Govenment and Finance
projects local sources of income to grow by 6.3 percent in 2013, and by 5.7
percent in 2014 and 2015. This will grant greater autonomy to LGUs and
provide more financing for local development.
The efficiency of public spending also needs to be improved. The slow
absorption of funds of government agencies needs to be addressed and the
revenue leakages plugged. Moreover, spending on infrastructure and social
services needs to increase. Q uality infrastructure increases macro-level
competitiveness and encourages investments, while government spending on
social services serves to equalize opportunities and leads to sustainable
poverty reduction.
The inflation rate is expected to fall within the 3.0-5.0 percent band in 2014
while a lower inflation band of 2.0 to 4.0 percent is targeted for both 2015 and
2016.
On the external sector, the aim is to maintain a positive current account
balance- to-GDP ratio, reaching 1.2 percent by end-2016.
The big challenge to macroeconomic stability is the volatility of
international capital flows. This complicates liquidity management, creates
pressures for the currency to appreciate and leads to financial systemic
stresses. On the other hand, capital inflows could be beneficial because they
provide funding for muchneeded investment.
26
A high proportion of external flows is due to remittances which have proven

to be quite robust even during times of economic crises elsewhere in the
world. A big portion of these remittances finances the consumption needs of
families left behind. But there may be a substantial portion that is investable.
W hat is needed is a financial instrument that matches the risk-return profile of
overseas Filipinos and overseas Filipino workers so that this resource can be
channeled to investments that would lead to job creation in the country.
PLAN IMPLEMENTATION
It is acknowledged that the overall development of the country is
ultimately a product of the dynamism of the private sector. The role of
government is to set the necessary policy and regulatory framework and provide
public goods and services to catalyze private initiative and encourage efficiency
improvements.
The Plan emphasizes the governments facilitative role in promoting
competition and making it easy for firms and entrepreneurs, regardless of size, to
do business in the country. But at the same time, government will intervene
strategically where the private sector cannot be relied upon to deliver the goods,
services and facilities needed by the poor and marginalized. In this regard, the
plan recognizes the need for public investment and sound, credible, and effective
regulation.
PDP implementation calls for convergence of agency programs and
coordination among agencies at different levels as well as the private sector
and development partners to be able to make a significant impact. The
different programs and strategies to be undertaken by government are
described in the subsequent chapters. D uring the implementation period, the
efficiency and effectiveness of these strategies will be monitored alongside
implementation progress. In general, the measure of efficiency is the extent
to which private effort has been steered towards the direction laid out in the
Plan; effectiveness is the extent to which the well-being of Filipinos has been
improved.
The different Planning Committees (PC), constituted to update the Plan,
will be responsible for monitoring welfare outcomes and implementation
progress as indicated in their corresponding Results Matrices. The outcomes and
progress will then be reported by the PC Chair before an appropriate interagency
committee of the National Economic and Development Authority (NEDA)
Board or Cabinet Cluster, as shown in Table 1.9.
The NEDA Secretariat will also prepare an annual Socioeconomic Report
(SER), where each SER presents the accomplishment in terms of output
and desired outcomes, identifies key challenges and recommends solutions going
forward.
27
Table 1.9. Coordination mechanism of Planning

Committees
Planning
Coordination mechanism
Committee
Macroeconomic policy
Infrastructure development
Peace and security
Governance and the rule of
law
Social development
Environment
28
NEDA Board-Development Budget Coordination Committee

and Economic Development Cluster (EDC)
NEDA Board-Infrastructure Committee
Security, Justice and Peace Cluster
Good Governance and Anti-Corruption Cluster
NEDA Board-Social Development Committee
NEDA Board-National Land Use Committee
Macroecono
mic policy
29
I. INTRODUCTION
A stable macroeconomy fuels positive expectations that encourage
investments and increase opportunities for quality employment and higher
incomes. This is characterized by sound fiscal, monetary and financial
environments, and a robust external position.
For the remaining period of the Philippine Development Plan (PDP),
the challenge that faces macroeconomic stability is the volatility of
international capital flows. Capital inflows could be beneficial to recipient
countries because they provide funding for much-needed investment. However,
the sustained surge of foreign capital could complicate liquidity
management, create pressures for currencies to appreciate and lead to
financial systemic stresses. The risks become starker because of the possibility
of sudden stops and capital flow reversals, as global shifts in sentiment can
cause significant volatility even in countries that have strong fundamentals.
Successive recognitions of
the countrys elevation to
investment-grade territory
have undoubtedly cemented
the status of the Philippine
economy as one of the
brightest globally.
At the same time, the efficiency of public spending and revenue collection
needs to be improved. The slow absorption of funds by government agencies
needs to be addressed and the revenue leakages plugged. Given the uncertainty
in the global economy and the physical environment, it is important to have
ample fiscal space to be able to respond, as necessary, in a timely and effective
manner.
II. ACCOMPLISHMENT AND CHALLENGES

O wing to improving fiscal conditions, a resilient economy, moderate inflation,
and a potential for further growth, the Philippines has received successive
investment- grade ratings from major credit rating agencies beginning March
2013. The first was awarded by Fitch Ratings on 27 March 2013. This was
followed by Standard and Poors which also gave the Philippines an investment
grade on 2 May 2013, the Japan Credit Rating agency on 7 May 2013, and
Moodys on 3 October 2013.
These successive recognitions of the countrys elevation to investment-grade
territory have undoubtedly cemented the status of the Philippine economy as
one of the brightest globally. The Philippine government is the primary
beneficiary of these ratings. An investment grade indicates that the Philippines
is a preferred borrower and would allow the government to borrow at a lower
rate from international or domestic financial markets. Low borrowing rates for
the government would lead to lower borrowing costs for the business sector. The
savings that may be earned with lower borrowing costs could be channeled to
development programs and provision of basic services.
30
Figure 2.1. Results framework on macroeconomic

policy
Poverty in multiple
dimensions reduced and
Goals
massive quality employment

created
Intermediate goals
Rapid and
sustained
economic growth
achieved
Stable
macroeconomy
achieved
Sector outcome
Subsector
outcomes
Equal development
opportunities
achieved
Sustainable
fiscal sector
achieved
Resilient
external sector
maintained
Monetary and
financial sector
made resilient
and inclusive
Prudent and responsible monetary and external policies that support a low
and stable inflation ensure that wage goods remain affordable. This, in turn,
decreases uncertainty in operating businesses in the country and improves
household and business confidence. At the same time, a stable financial
sector helps ensure that markets are well-functioning and that credit
conditions are appropriate to support economic expansion, thereby creating
opportunities for additional demand for labor.

Government expenditure is needed to finance programs and projects
critical to inclusive growth. These empower the poor and marginalized sectors
by enabling them to participate in the mainstream economy. However, the
spending must be supported by an appropriate level of revenues and a
manageable public debt in order to promote macroeconomic stability. At the
same time, prudent fiscal management allows the economy to be more resilient
against shocks.
Expenditure
The higher fiscal space provided the government with enough flexibility to
sustain the momentum of increased spending in 2013. As of the first semester
of 2013, total disbursements of the national government (NG) reached
PhP890.8 billion. This is higher by P95.4 billion or 12.0 percent than the same
period level in 2012. In 2012, total government spending reached PhP1.7778
trillion, registering a 14.1-percent growth from 2011. This is the highest
growth seen in more than a decade, and a significant rebound from the 2.3percent growth recorded in 2011.
31
The biggest increase is noted in infrastructure and other capital outlays,

which grew by 57.7 percent.5 These infrastructure outlays were for projects
consisting of rehabilitation/construction of roads and bridges, enhancement of
tourism access, and irrigation to support the agriculture sector.
By sectoral allocation, worth noting is the increasing amount intended
for social services, which grew by 1.0 percent in 2010, 31.0 percent in 2011
and
8.7 percent in 2012. Furthermore, the share of social services to total budget
increased from 28.2 percent in 2010 to 34.5 percent in 2011 in line with the
governments commitment to enhance the capabilities of the poor to
participate in the growth process. For 2013, its share is programmed to reach
34.8 percent from 32.4 percent in 2012 (Figure 2.2).
Figure 2.2. Share of sectoral spending to total budget, 2010-2013 (in %)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Economic
4.5
17.1
1.5
18.2
4.1
16.6
1.3
17.3
4.5
28.2
34.5
32.4
34.8
25.9
23.2
26.8
26.5
2010
2011
2012
2013*
20.0
0.6
19.1
17.7
1.1
19.0
6.2
Social Services
Defense
General Public Services
Net Lending
Interest Payments
Source: 2012, 2013 and 2014 Budget of Expenditures and Sources of Financing (BESF)
*Based on the program budget
Revenues
From a single-digit growth of 7.5 percent in 2010, total revenues rose by
12.6 percent, 12.9 percent and 10.3 percent in 2011, 2012 and in the first
semester of 2013, respectively. Growth of revenue collections by the Bureau
of Internal Revenue (BIR) was particularly robust, owing mostly to better
implementation of administrative measures, including the Run After Tax
Evaders (RAT E) program. Collection effort of BIR rose from 9.1 percent in
2010 to 9.5 percent in 2011 and
10.0 percent in 2012, exceeding the PDP targets. In the first half of 2013,
total revenues were up by 10.3 percent to PhP839.5 billion, led by the
13.9-percent growth in the BIR collection relative to the same period in
2012 due to good economic conditions and administrative and legislative
reforms, particularly the implementation of Republic Act (RA) 10351 or the Sin
Tax Reform Law of 2012.
Non-tax revenue collection was also above the annual target of 1.2 percent of
gross domestic product (GDP) with 1.3 percent in 2010, 1.6 percent in 2011 and
2012. For the first semester of 2013, non-tax revenue effort registered at 1.7
percent.
32
Based on the Department of Budget and Managements (DBM) Assessment of National

Government Disbursements Performance Report for January to December 2012
5
However, in comparison with counterparts in the Association of Southeast

Asian Nations (ASEAN), the revenue performance of the Philippines
remains below average as no major improvements were observed in recent
periods. Its gap with the leaders, especially Vietnam, Thailand, and Malaysia, is
relatively large.
Table
2.1. PDP targets
versus actual revenue
indicators: Ratio
Indicator
201
20
20 to GDP,
2010-H1 2013 (in %) 0
11
12
Actual
Revenues
Tax revenues
BIR
13.4
12.1
9.1
Targ
et
Actual
13.9
12.7
9.4
Targ
et
14.0
12.4
9.5
14.5
13.3
9.7
2013
Actual FY
Target
14.5
12.9
10.0
15.1
13.9
10.0
Sources:
(DBM),
BOC Department of Budget and Management
2.9
3.0 Department
2.7 of Finance (DOF),
3.1 Philippine
2.7Statistics Authority3.2
National Statistical Coordination Board (PSA-NSCB), and National Economic and Development Authority (NEDA)
H1
actual
15.3
13.6
10.8
Other offices
0.1
0.3
0.1
0.5
0.1
0.6
2.6
0.1
Non-tax revenues
1.3
1.2
1.6
1.2
1.6
1.2
1.7
Table 2.2. Tax and revenue effort of selected ASEAN

countries: Ratio to GDP, 2010-2012 (in %)
Count
ry
Philippines
Revenue effort
effort
2010
2011
2012
Thailand
Vietnam*
201
2 12.9
11.8
11.3
15.3
16.2
16.2
15.3
21.1
20.5
13.4
14.0
12.1
15.4
11.2
16.2
15.6
21.0
24.4
22.2
22.6
Indonesia
Malaysia
Tax
2010
20
1112.3
14.5
20.1
26.7
13.8
22.4
Source: Asian Development Bank

for Asia
16.8(ADB) Key Indicators
18.1
17.7and the Pacific
2013
14.6
*Tax revenue includes local government taxes
Significant amount of revenues is also lost, roughly equivalent to about 6.0

percent of GDP annually, due to tax evasion, smuggling, and redundant fiscal
incentives.6 In addition to the current programs being implemented (e.g.,
Run After the Smugglers or RATS, and RATE), reducing the leakage from
individual income tax collection,particularly among the self-employed,will
provide additional boost to the governments collection effort. Other potential
areas where tax leakages can occur are corporate income tax, value-added tax,
and estate tax. The lack of manpower in the BIR to audit/investigate and litigate,
in addition to the agencys bridled powers to prosecute, remains the biggest
stumbling blocks to the continued success of the RATE program. Moreover, the
heightened globalization and continuing economic
DOF estimate
33
integration have already limited the Bureau of Customs (BOC) capacity to

collect taxes from international trade transactions. Organizational deficiencies
may also undermine the BOCs effectiveness to monitor and collect appropriate
taxes.
Revenue collection by local government units (LGU) presents an important
fund source to promote local economic development. However, data from the
Bureau of Local Government and Finance (BLGF) show that LGUs are
still heavily dependent on the internal revenue allotment (IRA), with its share
to total LGU income ranging from 62.8 percent in 2010 to 60.3 percent in
2012.7 Meanwhile, local sources of LGU income increased to 34.9 percent in
2012 from 32.4 percent in 2010.
Table 2.3. Sources and share of local government units
(LGUs)
total currentAmount
operating (in
income,
2010-2012 Share to total (in
Particulars
million
PhP)
%)
2010
2011 2012 2010
2011 2012
Local sources
101,631
110,972
112,136
32.4
33.2
34.9
Tax revenue
67,191
76,577
77,388
21.4
22.9
24.1
34,440
211,963
34,396
223,716
34,748
209,346
11.0
67.6
10.3
66.8
10.8
65.1
Non-tax revenue
External sources
of which: IRA
196,887
209,048
193,775
62.8
62.5
60.3
Total current
operating income
313,594
334,688
321,481
100.0
100.0
100.0
Source: Bureau of Local Government Finance
Deficit
Deficit of the NG stood at PhP242.8 billion or 2.3 percent of GDP in
2012. This was within the target deficit-to-GDP ratio of 2.6 percent. Given
improved revenue collections, the fiscal deficit ratio to GDP in the first semester
of 2013 was
0.9 percent, below the 2.0 percent full-year target. Meanwhile, consolidated
public sector deficit (CPSD)8 amounted to PhP162.7 billion or 1.5 percent
of GDP in 2012. This was lower by PhP12.4 billion compared to the deficit
incurred in 2011 (PhP175.1 billion or 1.8% of GDP) and significantly below
the PhP362.8- billion deficit (4.0% of GDP) in 2010. In the first semester of
2013, CPSD was even lower at PhP56.9 billion or 1.0 percent of GDP. The
lower CPSD is partly attributed to improved financial position of governmentowned and -controlled corporations (GOCCs) following the reforms in
GOCC governance including the enactment of the GOCC Governance Act in
2011.
The slowdown in LGU income in 2012 was due to the lower IRA received by LGUs given the decline in
the national tax revenues in 2009 following the enactment of several revenue eroding measures.
8
CPSD is the combined financial positions (in terms of balances, positive for surplus and negative
for deficit) of the NG, the monitored non-financial government corporations (MNFGCs), the
government financial institutions (GFIs), LGUs, social security institutions (SSIs) as well as the cost of
restructuring the defunct Central Bank and the financial position of the present Bangko Sentral ng
Pilipinas (BSP).
7
34
Debt
O verall debt profile of the public sector remains favorable owing to the lowinterest environment and improved macroeconomic fundamentals. The
outstanding public sector debt (OPSD) as of June 2013 amounted to PhP7.7348
trillion or 64.9 percent of GDP.9 This OPSD-to-GDP ratio was lower than the
71.2 percent in end-2012,
78.2 percent in end-2011, and 73.1 percent in end-2010. In the past three years,
domestic debt accounted to more than half of the total OPSD. Meanwhile, NG
debt-to-GDP ratio remains sustainable, registering 52.4 percent, 51.0
percent,
51.5 percent and 45.8 percent in 2010, 2011, 2012 and June 2013,
respectively. The share of actual interest payments to the total disbursements
declined to 17.9 percent in 2011 and 17.6 percent in 2012 from 19.3 percent in
2010 due to lower NG deficit, the deliberate policy to restructure the domestic
and foreign borrowing mix, and the appreciation of the peso against the US
dollar. For the first semester of 2013, this share declined to 17.6 percent.
Resilient monetary and external sectors

The Bangko Sentral ng Pilipinas (BSP) remains committed to a stable
monetary policy that is conducive to achieving sustainable economic growth.
Since 2010, the annual average headline inflation rate remained within
the 3.0- to 5.0-percent target range set in the PDP. Moreover, the country
enjoyed a healthy external payments position despite uncertainties in
the global environment and heightened risk aversion of investors following
weak growth in the advanced economies.
Indicators
2010
20
20
11external sectors, 2010-2013
12
Table 2.4. Performance of the monetary and
Baseline
Inflation rate (in %)
3.8
Targ
et
3.0-5.0
Actual
4.6
Targ
et
3.0-5.0
2013
Actual FY
Target
3.2
3.0-5.0
H1
actual
Note: Target figures are based on PDP 2011-2016. For 2013, goods exports figures use the Balance of Payments Manual
Goods6exports
(balance
50.7 targets
55.3-55.8
62.5
51.6 are based on
71.3
(BPM)
classification.
However, full-year
for 2011-2013, as47.5
indicated in the
PDP 2011-2016,
BPM5
of payments, in billion
standards.
2.9
22.2
US$)
Inflation rate
Year-on-year headline inflation rates for 2010, 2011, and 2012 were at 3.8 percent,
4.6 percent, and 3.2 percent, respectively. The lower average headline inflation
in 2012 was due largely to lower food prices on the back of ample domestic
supply. This situation was maintained in the first half of 2013, with
headline inflation settling at 2.9 percent.
Debt ratios are computed using the full-year GDP program based on the 2014
BESF
9
35
Inflation rate faced by the poorest households eased at 2.9 percent in 2012,
lower compared to the 3.2-percent average for all households in the same
period. Still, prices remained volatile and this was observed in the food,
beverages and tobacco, clothing and housing and repairs indices. In fact, in
the first half of 2013, the inflation rate among the poorest 30 percent
households was higher at 3.3 percent than those faced by all households at 2.9
percent.
Inflation rate in areas outside National Capital Region (AONCR) continued
to be relatively higher than in the NCR, highlighting the need for better
transport logistics in these areas. In 2012, inflation in AONCR averaged at 3.2
percent while that in the NCR was at 2.9 percent.
Figure 2.3. Year-on-year inflation for
all and bottom 30% households, 2010Q2 2013 (in %)
6.
0
5.
0
4.
0
3.
0
2.
0
1.
0
0.
0
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
1 2 3 4 1 2 3 4 1 2 3 4 1 2
2010
2011
2012
201
3
Infation (Bottom
30% HHs)
Source: National Statistics Office
Infation
(All HHs)
Figure 2.4. Year-on-year inflation for

NCR and AONCR, 2010-Q2 2013 (in
%)
6.
0
5.
0
4.
0
3.
0
2.
0
1.
0
0.
0
Q Q Q Q Q Q Q Q Q Q Q Q Q Q
1 2 3 4 1 2 3 4 1 2 3 4 1 2
2010
2011
2012
201
3
Inflation
for NCR
Inflation for
AONCR
Balance of payments (BOP)1 0

The BOP has been in surplus since 2005. For the past three years, it yielded
surpluses of US$14.3 billion in 2010, US$11.4 billion in 2011, and US$9.2
billion in 2012.
In 2012, preliminary data show that the BOP position yielded a surplus of
US$9.2 billion, although this was 19.0 percent lower than the surplus of
US$11.4 billion in 2011. For the first half of 2013, the countrys BOP position
remained in surplus and amounted to US$2.6 billion.
Rising global demand for professional and skilled Filipino workers and
the continuous growth of the information technology-business process
management (IT-BPM) services boosted the current account balance. The
countrys IT-BPM industry got a major boost due to President Aquinos
approval of a P500-million fund for the Technical Education and Skills
Development Authority (TESDA), which is expected to provide short-term
training for near-hire applicants who
36
2010-2012 are based on the BPM5 concept while the 2013 BOP figures are already
based on the BPM6 classification
10
require remedial training.11 Meanwhile, the capital and financial account

yielded a net inflow of US$5.7 billion in 2012, slightly lower than the
recorded US$6.0 billion in 2011.
Figure 2.5. Balance of Payments, 2010 to 2013 (in billion US$)
10.
0
8.
0
6.
0
4.
0
2.
0
0.
0
2.
-0
4.
0
6.
0
Q1 Q2
Q3
Q4
201
0
OverallBO
P Position
Q1 Q2
Q3
Q4
201
1
Current
Account
Q1 Q2
Q3
Q4
201
2
Capital and
Financial
Account
Source: Bangko Sentral ng Pilipinas; Note: Figures are based on
5.
0
4.
5
4.
0
3.
5
3.
0
2.
5
2.
0
1.
5
1.
0
0.
BPM5
5
0.
0
6.
0
5.
0
4.
0
2.
3.
0
0
1.
0.
0
0
Q
1
Q2
Q3
2012
Overall BOP
Capital
Position
Account
Q
4
Q
1
201
3
Current
Account
Financial
Q
2
1.
0
Account
standards
Exports of goods grew by 8.5 percent in 2012, outpacing that of imports of

goods which grew by 5.1 percent. However, export of goods declined by 3.7
percent in first semester of 2013, following the lackluster performance of
manufactured exports. W ith export revenues remaining below target, the bigger
challenge is to diversify the product and market mix of exports. Electronics
products (including other electronics) continued to constitute the bulk of
exports at 48.4 percent in 2012, although relatively lower from the proportion
observed in 2004 at 71.8 percent. Similarly, export shipments remained
concentrated to the countrys traditional markets such as US, Japan, and
China.
The BOP surpluses recorded in the last three years imply that the economy
has earned more than it spent externally.This led to the steady build-up of
international reserves. Gross international reserves (GIR) as of 2012 rose to
US$83.8 billion, higher by US$8.5 billion than the US$75.3 billion as of 2011.
The 2012 GIR level could adequately cover 11.9 months worth of imports of
goods and payments of services and income. It is also 9.9 times the
countrys short-term external debt based on original maturity and 6.5 times
based on residual maturity.
As of June 2013, GIR reached US$81.3 billion, enough to cover 11.6
months worth of imports of goods and payments of services and income. It is
also 8.5 times the countrys short-term external debt based on original maturity
and 5.7 times based on residual maturity.
O verall, the accumulation of foreign exchange reserves in recent years
provided the BSP ample flexibility to respond to risks associated with
capital flows and meet any foreseeable net demands for foreign currencies in
order to preserve the international stability and convertibility of the Philippine
peso.
Sourced from the Department of Trade and Industrys Upbeat (Issue No. 23, 12/01/11), retrieved
from
http://dti.gov.ph/uploads/DownloadableForms/Upbeat%20No.%2023%20-Canada%20keen%20on%20PHL.pd
11
37
Figure 2.6. Gross International Reserves (GIR) and

reserve adequacy measures
10
0
1
4
1
2
1
0
8
8
6
0
0
4
0
6
20
4
0 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
2
0
2010
2011
2012
2013
GIR (in US$ billion, lhs)
Import Cover
(rhs)
Short-term External Debt Cover Original Maturity
(rhs) Short-term External Debt Cover
Residuak Maturity (rhs)
Source: Bangko Sentral ng Pilipinas
The external debt ratio, or outstanding external debt as a percentage of

GDP, improved from 30.1 percent in 2010 to 27.0 percent in 2011 and to 24.1
percent in 2012. On the other hand, the external debt service ratio (DSR)
increased to 9.4 percent in 2011 from 8.7 percent in the previous year due to the
decline in exports receipts as the Eurozone and the US crises sapped global
demand. In 2012, the ratio improved to 7.1 percent from 9.4 percent the
previous year due to higher receipts and lower debt payments.
As of June 2013, preliminary data show that the external debt ratio
continued to decline to 21.8 percent from 22.8 percent as of March 2013,
indicating the countrys very strong liquidity position vis--vis payment
obligations. D uring the same period, the DSR also improved to 7.5 percent from
9.2 percent well below the 20- to 25-percent international benchmark.
38
III. UPDATED PDP TARGETS

At the end of the planning period, the economy is projected to grow by 7.5 to
8.5 percent from 6.5 to 7.0 percent in 2013, as shown in Table 2.5.
Table 2.5. Revalidated results matrix (RM) on macroeconomic policy (in %)

Indicators
Baseli End-ofAssumptions and
ne
Plan
risks
(2010
target
Sect or ou tcome: Stable macroeconomy achieved
)
(2016)
High real GDP growth achieved
7.6
7.5-8.5 Assumptions:
Macroeconomic
fundamentals (e.g.
inflation, GDP growth,
fiscal balance, external
position, interest rates)
remained sound
Political stability is
maintained
Governance improvement
efforts are leveled up
Note: For indicators and targets in the financial sector, refer to Chapter 5: Resilient and inclusive financial
system
Fiscal sector
The NG aims to increase the revenue effort to 17.1 percent of GDP by
2016. The tax effort is targeted to increase to 16.1 percent in 2016 from 13.4
percent in 2013. Correspondingly, non-tax revenue collection effort shall be
maintained at 1.3 percent in 2013 and with an average of 1.0 percent for 20142016.
Subsector outcome A: Sustainable fiscal sector achieved
39
The NG adopted a deficit target of 2.0 percent of GDP beginning 2013 until
2016. To achieve this, it will sustain its strategy on fiscal consolidation, with the
growth of revenues outpacing that of disbursements.
Moreover, the NG aims to further decrease the debt to a 43.4-percent
ratio to GDP in 2016 from 45.8 percent as of June 2013. At the beginning of
the planning period, it stood at 52.4 percent. The ratio of interest payment to
total disbursement is seen to decline to 16.7 percent for full year 2013 and will
further drop to 13.7 percent in 2016 from a high of 19.3 percent in 2010.
At the subnational level, the BLGF projects local sources of income to grow by
6.3 percent in 2013, and by 5.7 percent in 2014 and 2015.
Monetary and external sectors

For full year 2013, the baseline inflation forecast is pointing close to the low-end
of the 3.0- to 5.0-percent target range. For 2014, the inflation target range is
retained at 3.0 to 5.0 percent while a lower inflation band of 2.0 to 4.0 percent
is targeted for both 2015 and 2016.
On the external sector, the aim is to maintain a positive current account
balance- to-GDP ratio, reaching 1.2 percent by 2016.
IV. STRATEGIC FRAMEWORK

Figure 2.7 presents the strategic framework in achieving a stable
macroeconomy. Seven strategies are geared towards achieving the three
subsector outcomes of achieving a sustainable fiscal sector, maintaining the
resilience of the external sector, and making the monetary and financial sectors
resilient and inclusive.
Figure 2.7. Strategic framework on macroeconomic
policy
Stable
Sector outcome
macroeconomy
achieved
Subsector outcomes
Sustainable fiscal
sector achieved
Resilient external
sector maintained
1. Implement revenue
enhancement measures
Strategies
2. Implement expenditure
management reforms
3. Formulate medium-term debt
management strategy
40
Monetary and
financial sector
made resilient
and inclusive
4. Achieve low and stable inflation

5. Maintain current account
surplus to GDP
6. Reduce external debt to GDP
7. Strengthen financial
sector (see Chapter 5)

Strategy
measures
1:
Implement
revenue
enhancement
Revenue-enhancing measures will focus on heightened collection efforts of

the BIR in tandem with anti-smuggling strategies of the BOC in coordination
with relevant government agencies. In the case of the BIR, enhanced tax
collection will be supported by increased collection efficiency from the selfemployed business and professionals, better assessment of estate taxes, and
strengthened Fiscal Unit/ Revenue Intelligence Unit. On the other hand, the
BOCs comprehensive anti- smuggling strategies will include port accreditation,
import mapping, fuel marking alongside the conduct of audit on oil
companies, trade statistics reconciliation, and the requirement to submit a
rolling import plan from all importers of sensitive commodities.
Table 2.6. Summary of revenue enhancement measures
Agency initiative
Coordination
Self-employed
business and professionals
Bureau of Int ernal Revenue (BIR)
National Government Agencies (NGAs)

to use Income Tax Return (ITR)
as basis for transactions with the
government
Estate Taxes
Philippine Statistics Authority and Civil

Registry
Fiscal/Revenue Intelligence Unit
BIR, BOC
Bureau of Customs (BOC)

Port Accreditation
BOC, Department of Trade and Industry

(DTI)
Import Mapping
BIR, BOC, LGUs
Audit of Oil Companies
BOC, BIR, Department of Energy (DOE)
Trade Statistics Reconciliation
BOC,
DTI
DTI
Rolling Import Plan

Source: DOF
Other policy and legislative initiatives that will be pursued to support

the expansion of fiscal space and to get on a sustainable revenue-and-spending
path for the fiscal sector include (a) Customs Modernization and Tariff Act
(CMTA); (b) rationalization of the mining fiscal regime; and (c) transparency
and accountability in the administration and rationalization of fiscal incentives.
The fiscal performance of LGUs will likewise be improved. To this end, the
DOF, through the BLGF and in partnership with LGUs, will strive to increase
locally sourced revenues. This will be achieved through administration reforms
involving the updating of the Local Revenue Codes, reviewing and revision
of the LGU schedule of market values, and implementation of the idle land tax
(ILT ). Other supporting measures include the enhancement of local treasury
and assessment manuals, as well as monitoring of financial reports and
treasury operations of
41
LGUs including the strengthening of LGU debt monitoring systems. The DOF
will also pursue the passage of important legislative proposals, such as the
LGU Income Re-classification System Bill and the proposed Valuation Reform
Act.
Beginning 2 0 13, the

government has
intensified efforts to
weed out lumpsum
budgets.
Achieving fiscal sustainability also requires an effective management of

the governments assets and liabilities. W ith the passage of RA 10149 or the
GOCC Governance Act of 2011,12
the Governance Commission on
GOCCs (GCG) will help ensure the sustained dividend collection from
GOCCs. An effective disposition of government assets will also be
pursued, estimated to be between PhP1.5 billion to PhP3.5 billion for the
To
complement
the efforts to improve the administration of government
period
2013 to 2015.
resources, international finance management will be enhanced through strategic
mobilization and allocation of funds. In particular, official development
assistance (ODA)/ international grants and loans will be aligned to support
strategic key priorities of the PDP. To achieve this, the processing for NG grants
will be streamlined through the creation of database, process workflow analysis
and monitoring systems that will be fully operational by 2014.
Strategy
reforms
2:
Implement
expenditure
management
The government remains committed to the implementation of expenditure

management reforms that aim for a strong and healthy fiscal position over
the medium term (sustaining deficit at 2.0 percent of GDP until 2016), better
quality expenditures, and more transparent and accountable spending.
Expenditure policy will seek to substantially increase productive
expenditures especially for infrastructure and social services. Public expenditure
on infrastructure, as a share of GDP, will be raised from 2.5 percent in 2013 to
at least 5.1 percent by 2016. Similarly, public spending on social services is
programmed to increase. From an average of about 33.5 percent in the 20112012 period, the share of social services expenditures to total budget (net of
debt amortization) is programmed to be 34.9 percent in 2013 and 37.2 percent
in 2014, or equivalent to PhP699.4 billion and PhP842.8 billion, respectively.
Beginning 2013, the government has intensified efforts to weed out lumpsum budgets. It also piloted the one-year validity of appropriations (a shift
from the current two-year validity of appropriations on maintenance and
capital outlays). Line agencies were also directed to focus on their core mandates
and accelerate the delivery of services. The Department of Public Works and
Highways (DPWH) has been designated as the principal agency to ensure that
infrastructure outlays are focused on the right projects, with the right costs and
the right quality. This means that infrastructure budgets for education
facilities, hospitals and farm-to- market roads will be transferred to the DPWH
for implementation.
Signed into law by President Benigno Aquino III on June 2011, the law also created the Governance
Commission on GOCCs (GCG) as an oversight body.
12
42
Moreover, the DBM is rolling out technological innovations to speed

up budget release and procurement transaction, improve information flows
and strengthen transparency and accountability. The Government Integrated
Financial Management Information System (GIFMIS), which enables timely
and more comprehensive monitoring of budget execution and agency
utilization of funds, is currently being developed. Meanwhile, the National
Payroll System will be pilot- tested in 2014, as well as the Cashless Purchase
Cards System in the military.
In crafting the 2014 budget, the government started with Cabinet-level
discussions on the governments priorities that will be funded for 2014 to 2016,
with focus on 2014. The decisions and commitments were summarized in a
Budget Priorities Framework to guide all departments in strategically
planning their activities and crafting their budgets. The 2014 budget also
adopts the Performance- informed Budgeting, integrating performance
information from the strengthened Organizational Performance Indicator
Framework (OPIF) strategy to the National Expenditure Program/General
The
greater disaggregation
Appropriations
Act (GAA). of the budget and the one-year validity of
appropriations will pave the way for the implementation of the GAA, which
will serve as the Budget Release Document for 2014. This will eliminate the
duplicative processes of requesting, processing and releasing budgetary
allotments.
The roadmap for Public Financial Management (PFM) reforms will
continue to be implemented, part of which includes the adoption of the
Treasury Single Account by 2014. This will revolutionize cash
management operations and provide more predictability in budget releases and
ease in cash programming and financial reporting.
The budget preparation

will be more open and
participatory and will
engage multi-sectoral
stakeholders.
The national budget will continue to reflect the nations priorities in

accordance with the PDP. The budget preparation will be more open and
participatory and will engage multi-sectoral stakeholders. The evaluation of
existing major programs/ projects, through the Zero-based Budgeting (
) approach, will be widened in scope. The governments performance in
achieving the target outputs and sectoral outcomes will be continuously
monitored under the OPIF, where performing institutions will be rewarded
under a performance-based incentive system. Spending commitments of
government agencies will be constantly checked, so that prompt, efficient and
effective public goods and services will be delivered.
To secure the irreversibility of these reforms, the government will deeply
embed good governance measures in the policies, processes, and practices of
government institutions. A way of embedding these reforms is to leverage
technology to radically improve the pace and quality of public service delivery.
The government will also ensure that the reforms actually bring
immediate and substantial benefit to our people by way of adequate social and
economic services, as well as inclusive growth.
43
Strategy
3:
Formulate
management strategy
A market-determined
exchange rate and a
comfortable level of
international reserves
will be maintained to
bet ter insulate the
economy from external
shocks.
medium-term
debt
For debt management, a strategic framework will include the formulation

of a medium-term debt strategy with cost-risk analysis. Improvement of the
domestic debt market will likewise be supported through the design and
implementation of a domestic debt issuance program that produces liquid
benchmarks, taking into account factors such as refinancing risk and market
needs.13 The DOF, with the Bureau of the Treasury (BTr) will also work for the
unification of taxable and non- taxable investors to support the secondary
market and reduce distortions on the true interest cost of debt instruments.
A framework for managing contingent liabilities will likewise be
developed, consisting of regular analysis and quantification of contingent
liabilities from all sources including public-private partnership (PPP)
projects. This is to be accompanied by a process for the regular monitoring and
updating of all contingent liabilities for each project and aggregating them at
the macro level. To ensure transparency, there is also a need for a disclosure
process of contingent liabilities in the Fiscal Risk Statement (FRS) as well as in
the GAA.
Subsector outcomes B and C: Resilient external sector

maintained; monetary and financial sector made
resilient and inclusive
Strategy 4: Achieve a low and stable inflation
W hile the inflation environment remains benign, monetary authorities
will continue to monitor emerging price and output conditions to ensure that
monetary policy remains supportive of sustained non-inflationary economic
growth.
Strategy 5-6: Maintain current account surplus to

GDP ratio and reduce external debt to GDP
On the external front, policymakers will ensure that the economy is cushioned
from the adverse financial impact of external shocks. In addition, a marketdetermined exchange rate and a comfortable level of international reserves will
be maintained to better insulate the economy from external shocks that may
disrupt the pace of economic growth. External debt sustainability will be
promoted by keeping the countrys outstanding external debt manageable and
within the economys capacity to service in an orderly manner.
The BSP will continue to actively participate in regional and
international cooperation programs to improve its capability to undertake
economic surveillance and help generate quality outputs that would contribute
to informed formulation of policies supportive of the regional integration
and cooperation framework. Specifically, the BSP will continue its active
participation in the ASEAN meetings, Chiang Mai Initiative Multilateralization,
Executives Meeting of East Asia-Pacific Central Banks (EMEAP) Monetary
and Financial Stability Committee, ASEAN Working Committee on Financial
Services-Liberalization (WC-FSL), and other regional cooperation
undertakings.
Ideally, benchmarks provide guidance in managing government debt, usually expressed as numerical targets
for certain risk indicators such as the maturity structure of the debt, currency composition, and interest rate
duration.
13
44
Moreover, the BSPs US$1-billion commitment to the International

Monetary Funds (IMF) crisis-fighting fund pool and its US$500-million pledge
contribution to the IMFs expanded New Arrangements to Borrow (NAB)
program14 is a show of support to the global efforts in stabilizing the world
economy and maintaining its growth path. As a member of the global
community of nations, the Philippines also benefits from economic and financial
stability across the globe.
In light of the complexities and risks associated with global economic and
financial interdependencies, the monetary authorities will continue to pursue the
expansion of its monetary policy toolkit and to adopt best practices used by
other central banks. To this end, the BSPs policy agenda will continue to be
geared towards the amendment of the BSP Charter.15 Specifically, the following
proposed amendments will be pursued:
Explicit inclusion of the objective of financial stability and payments
and settlements system stability;
Removal of the thresholds in the growth of monetary aggregates and credit
as guiding principles in monetary management;
Monetary authorities will

continue to pursue the
expansion of its monetary
policy toolkit and to adopt
best practices used by
oth er central banks.
Restoration of authority to issue negotiable certificates of indebtedness

even during normal times;
Authority to create reserve buffers against future risks and contingencies;
Increase in its capitalization; and
Expansion of the authority of the BSP to obtain data from the non-bank
sector.
The explicit mandate of the BSP to ensure stability of the financial and
payments system merely formalizes the practice adopted by the BSP and
recognizes the fact that monetary stability is deeply intertwined with financial
stability and that the conduct of monetary policy and financial policy is
completely rooted in the stability and soundness of the payment and
settlements system. W ith respect to expanded authority to access data from the
non-bank sector, the proposed change
The pledge from the Philippines to the IMFs NAB program is on top of the countrys $251.5-million
contribution to the Financial Transactions Plan (FTP), another lending facility of the IMF. The FTP is the
mechanism by which the IMF finances its lending and repayment operations through a transfer of foreign
exchange from members with strong external position to borrowing members. The Philippines holds a creditor
(or reserve) position in the IMF through its participation in the Funds FTP. By virtue of their participation in
the FTP, emerging market economies like the Philippines have joined international cooperation efforts to
mitigate the spillover effects of Europes sovereign debt crisis by enhancing global financial safety nets. Most
importantly, the countrys continued participation in the FTP will pave the way for the BSPs admission in the
NAB facility, a credit (lending) arrangement between the IMF and member countries or institutions that aims to
forestall or cope with difficult situations that could impair the international monetary system. The participation
in the NAB is a significant step in strengthening international cooperation and demonstrates the BSPs strong
commitment to global efforts to help address threats to the international monetary system.
15
The proposal to amend the BSP charter was also included in the priority legislative measures supported by the
Economic Development Cluster (Econ Cluster).
14
45
is seen to expand and enrich the information upon which the BSP bases its
policy decisions, as well as to further improve the quality of research done by
its staff. Lastly, the proposed creation of reserve accounts, combined with an
increase in capitalization, will help insulate the credibility of monetary and
financial policy from the implications of losses to its financial position. The BSP
will also continue to mainstream financial inclusion in its domestic policy
agenda.16 Hence, it will continue to adopt a proactive role in microfinance
development in areas of policy and regulation, advocacy, training and capacity
building to support the development of a sustainable microfinance business
environment in the country.
Strategy 7: Strengthen financial sector (see

Chapter 5: Resilient and inclusive financial
system)
V. PLAN IMPLEMENTATION
Annual plan targets are set out in the PDP Midterm Update, which in turn, are
translated into key performance indicators geared towards achieving a
stable macroeconomy as reflected in the annual target indicator matrix in Table
2.7.
The growth path of real GDP will be monitored by the NEDA Secretariat
using the National Income Accounts (NIA) data to be reported by the PSA. The
DOF (including BIR, BOC, and BLGF), DBM, and BTr share the
responsibility of overseeing the implementation of strategies identified
under the subsector outcome on sustainable fiscal sector that focus on the
revenue, expenditure and debt operations of the national government and
LGUs.
As the countrys monetary authority, the BSP is responsible for ensuring
financial and monetary stability. It will also monitor the two indicators
representing the countrys foreign transactions.
To ensure that these outcomes are achieved as indicated in the RM,the
Development Budget Coordination Committee (DBCC) will serve as the
interagency committee that will review and monitor the implementation of
strategies identified in this chapter and the macroeconomic indicators.
For a more detailed discussion, see Chapter

5.
16
46
Table 2.7. Annual target indicator matrix on macroeconomic policy, 20132016

Indicators
Annual Plan targets
Means
(in %)
of
verificat
201
2014 2015 2016
ion
3
Sector outcome: Stable macroeconomy achieved
High real GDP growth
7.2*
6.5-7.5
7.0-8.0
achieved
Higher government
14.7
15.5
16.2
revenue-to-GDP ratio
achieved
Tax revenue-to-GDP
13.4
14.5
15.2
ratio improved
Non-tax revenue-to-GDP
1.3
1.1
1.0
ratio achieved
Primary expenditure-to13.9
14.9
15.4
GDP ratio improved
Percentage share of
16.7
15.4
14.6
interest payments in the
total disbursements
declined
Positive primary balance0.8
0.7
0.7
to-GDP ratio maintained
NG fiscal deficit-to-GDP
2.0
2.0
2.0
ratio maintained
Outstanding NG debt stock
48.7
46.8
45.8
as a share of GDP
reduced
Sustainable
consolidated
0.7
0.8
NA
public sector deficit as a
share of GDP maintained
Local income sources of
6.3
5.7
5.7
LGUs increased (year-onyear growth rate)
Subsector outcome B: Resilient external sector maintained
Positive sustainable current
2.3
1.6
1.5
account balance- to-GDP
ratio maintained
External debt-to-GDP ratio
24.9
23.5
NA
reduced
Subsector outcome C: Monetary policy made resilient
3.0-5.0
3.0-5.0
2.0-4.0
ow and stable inflation
L
7.5-8.5
NIA
Agency
responsi
ble
NEDA, PSA**
17.1
BESF Fiscal
Parameters table
DOF
16.1
BESF Fiscal
Parameters table
BESF Fiscal
Parameters table
BESF Fiscal
Parameters table
BESF Fiscal
Parameters Table
DOF
0.9
16.5
13.7
0.6
DOF
DOF/DBM
DBM, BTr
BESF NG
Cash Disbursements
table
BESF Fiscal
Parameters table
BTr NG Outstanding
Debt Report
and NIA
BESF CPSFP
Table
DOF/DBM
NA
LGU Fiscal
Data
DOF-BLGF
1.2
BESF
Macroeconomic
Parameters table
BSP Selected
External Debt
Ratios table
BSP***
BESF
Macroeconomic
parameters table
BSP
2.0
43.4
NA
NA
2.0-4.0
rate achieved
DOF/DBM
DOF-BTr
DOF
BSP***
* Actual data **PSA as data source, NEDA to monitor only ***BSP to monitor
only
47
Competiti
and
ve
industry
innovative
services
and
sectors
I. INTRODUCTION
A globally competitive
sector is one that is able
to tap the global market
and, therefore, grow faster.
An innovative sector, on
the other hand, implies the
creation of new products.
The Philippines long-term growth rate is estimated to be at 4.0 percent per

year. Assuming that this has not changed and given a high population
growth rate averaging 2.11 percent annually from 1990 to 2010, per capita
growth rate only stands at 1.89 percent. This low growth implies that it will
take at least 37 years before incomes double. It is no wonder, then, that
poverty reduction has been painfully slow. W hat the country needs, instead,
is rapid growth that is sustained over a longer period so that incomes are
increased significantly and quality of life is improved dramatically.
The industry and services (I&S) sectors continue to be the growth drivers of
the Philippine economy. However, this growth needs to be sustained and made
more inclusive. A globally competitive sector is one that is able to tap the global
market and, therefore, grow faster. An innovative sector, on the other hand,
implies the creation of new products, which can mean additional markets and
perhaps new production processes that will allow the sector to link better
with the primary sectors, namely agriculture and fisheries. Underlying all these
are the strategies to expand markets, part of which is the expansion of the
domestic market resulting from population and income growths. The bigger
part, however, will be the penetration into foreign markets, including tourism.
To promote global competitiveness and innovation in the I&S sectors,
the government will continue to improve the business climate, promote an
environment that increases productivity and innovative capacity, enforce
regulations that enhance consumer welfare and expand market access, as
indicated on Figure 3.1.
50
Figure 3.1. Results framework on competitive and innovative

industry and services (I&S) sectors
Poverty in multiple dimensions
reduced and massive quality
employment created
Goals
Intermediate
goals
Rapid and sustained

economic growth
achieved
Globally competitive and

innovative industry and
services (I&S) sectors
achieved
Sector outcome
Subsector
outcomes
Equal development
opportunities
achieved
Business
climate
improved
Productivity and
innovative
capacity
increased
Consumer
welfare
enhanced
Market
access
expanded
II. ASSESSMENT AND CHALLENGES

Contribution to rapid growth
The I&S sectors contributed 6.5 percentage points (ppts) of the 6.8-percent
gross domestic product (GDP) growth rate in 2012 and 7.5 ppts of the
7.7-percent expansion in the first half of 2013. The 2012 industry growth rate,
however, was below the original Philippine Development Plan (PDP) growth
target (8.1-9.1%) while the 2013 first half growth exceeded the revised growth
target for 2013 (6.4- 7.5%).17 On the other hand, the services sectors growth
was already within the target (7.1-8.1% for 2011 and 2012; 6.3-7.3% for
2013).18 The services sector continues to account for more than half of the
countrys GDP.
Contribution to inclusive growth

I&S sectors remained the major economic sectors in all regions, except
the Autonomous Region in Muslim Mindanao (ARMM). Based on 2012 data,
regions with the highest contribution to the gross value added (GVA) of
the industry sector are Region IV-A (33.3%) and National Capital Region or
NCR (19.4%) while those with the lowest contribution are ARMM (0.1%) and
Region II (0.6%). Regions with the highest contribution to the GVA of the
services sector are NCR (51.7%) and Region IV-A (9.9%) while those with
the lowest contribution are ARMM (0.4%) and CARAGA (1.0%).19
Revised growth estimates as of July 2013
Revised growth estimates as of July 2013
19
2012 Gross Regional Domestic Product. National Statistical Coordination Board (NSCB)
17
18
51
From 2010 to 2012, I&S sectors generated 1.4 million additional

employment, which falls short by 157,000 of the target of 1.56 million
additional employed persons in these sectors.
Apart from the low

absorption of labor, a
substantial proportion of
those working in industry
and services, especially
in services, is considered
vulnerable.
The capacity of the industry sector, especially manufacturing, to absorb

displaced and/or shifting labor force and new entrants has remained the same.
From 2010 to 2012, the industry sector accounts for only 15 percent of
total employment, with manufacturing only 8 percent. Employment elasticity is
lowest in the industry (0.37) compared to agriculture (0.43) and services
(0.67).20 On a subsector level, employment in the manufacturing sector
weakly responds to its growth, with employment-to-growth elasticity of
0.22 in contrast with wholesale and retail trade under the services sector with
0.78.21
Apart from the low absorption of labor, a substantial proportion of those
working in I&S, especially in services, is considered vulnerable.22 In 2012, 14.3
percent of those employed in industry are considered vulnerable, with 32.5
percent in services.
Investme
nts
Based on Table 3.1, total approved foreign and local investments reported
by investment promotion agencies (IPAs) reached PhP697.7 billion in 2012,
lower by
6.6 percent than in 2011. The contraction is observed among domestic
investments, which shrank by 16.4 percent. In contrast, approved foreign
investments increased by 12 percent. Manufacturing; electricity, gas, steam and
air conditioning supply; and real estate accounted for the bulk of these
investments.
In the first half of 2013, total approved investments amounted to PhP266.2
billion, which is 22.6 percent higher than in the same period last year. Domestic
investments slightly decreased while foreign investments more than doubled
compared with the same period last year.
Meanwhile, inflows of net foreign direct investments (FDI) 23
to the
Philippines in 2012 amounted to US$2.8 billion, which is 54 percent higher than
the US$1.3 billion recorded in 2010,24 although this is considerably less than
those in other Association of Southeast Asian Nations (ASEAN) member states.
Of the US$114 billion net FDI inflows to ASEAN in 2011, Singapore
received the most with US$64 billion (56%) followed by Indonesia (17%),
Malaysia (11%), Thailand (7%) and Vietnam (6.5%). The Philippines tailed the
list, together with Cambodia and Lao PDR, with only 1 percent of the total.25
Based on regression of income and employment data from 1998 to 2011
Source of basic data: NSCB and NSO
22
Number of self-employed and unpaid family workers
23
Approved foreign investments reported by NSCB represent the amount of proposed contributions or share of
foreigners to various projects in the country as approved and registered by the investment promotion agencies.
Net FDI reported by the BSP is defined as an international investment by a resident entity in one economy
(direct investor) in an enterprise resident in another economy (direct investment enterprise ) made with the
objective of obtaining a lasting interest.
24
The 2012 figure is based on Balance of Payments Manual (BPM) 6 classification (BPM6) while 2010 figure
is based on BPM5.
25
Foreign direct investment statistics database as of 30 September 2012, retrieved from http://www.asean.org/
news/item/foreign-direct-investment-statistics
20
21
52
Table 3.1. Total approved investments, 2010-H1 2013 (in million PhP)
Nationality
2012
2010
H1 2013
2011
Filipino
346,632
4 88,911
408,560
172,833
Foreign
196,064
258,231
289,118
93,419
542, 6 9 6
747,142
6 97,678
26 6,25 2
Total
Source: National Statistical Coordination Board

Note: 2010 covers data from four investment promotion agencies (IPAs): Board of Investments (BOI),
Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA) and Subic Bay
Metropolitan Authority (SBMA). Two IPAs were added in 2011: Authority of the Freeport Area of
Bataan (AFAB) and BOI-ARMM. The Cagayan Economic Zone Authority (CEZA) was added in
2012.
Business climate
Business climate in the Philippines has considerably improved, as reflected
in various competitiveness rankings. In the World Economic Forum (W EF)
Global Competitiveness Report, the country improved to 59th place out of 148
countries in 2013 from 85th place out of 139 countries in 2010.26 Of the
12 pillars of competitiveness,27 the Philippines advanced in 10, except in
primary education and health.The country also improved its ranking in the
World Bank-International Finance Corporation (WB-IFC) Doing Business
Report 28 from 144th place out of 183 economies in 2010 to 108th place out of
189 countries in 2014.29
Infrastructure
The PDP 2011-2016 identified inadequate infrastructure as a major
constraint to long-term economic growth and employment generation. To
address
this, government has been investing heavily in infrastructure
development. In 2011 and 2012, government spent 2.6 and 2.4 percent of GDP,
respectively, on infrastructure projects. As a result, the countrys ranking in the
infrastructure pillar of the W EF Global Competitiveness Reports improved
from 104th out of 139 countries in 2010 to 96th out of 148 countries in 2013.
2010 ranking is based from the 2010-2011 WEF report while 2013 ranking is based from the 2013-2014 report
Namely: (a) institutions, (b) infrastructure, (c) macroeconomic environment, (d) health and primary education,
(e) higher education and training, (f) goods market efficiency, (g) labor market efficiency, (h) financial market
development, (i) technological readiness, (j) market size, (k) business sophistication and (l) innovation.
28
The WB-IFC competitiveness ranking is based on the following factors: (a) trading across borders, (b) getting
electricity, (c) dealing with construction permit, (d) enforcing contract, (e) registering property, (f) protecting
investors, (g) getting credit, (h) paying taxes, (i) starting a business, and (j) resolving insolvency. The ranking
reflects only collected data from the economys largest business city, which in the case of the Philippines is
Quezon City, and may not be representative of the regulations in other parts of the economy.
29
2010 ranking is based from the 2009-2010 WB-IFC Doing Business Report while 2013 ranking is based from
the 2013-2014 report
26
27
53
Regulatory environment
In May 2013, President Benigno S. Aquino III issued Administrative Order
38 which constituted an interagency task force headed by the Department of
Trade and Industry (DTI) to implement reforms and action plans to improve
the ease of doing business in the country.30 The most significant of these
efforts were the Business Permit and Licensing System (BPLS), Enhanced
Business Name Registration (EBNR) and the Philippine Business Registry
(PBR).
Business Permit and Licensing System (BPLS)
The time to register a

business was reduced from
four to eight hours to only
15 minutes.
W ith the streamlining of the BPLS, the number of days to process business
permits and licenses was reduced to five days or less for renewals and not more
than 10 days for new applications in 823 out of 1,634 local government units
(LGU).
Enhanced Business Name Registration System (EBNRS)

The time to register a business was reduced from four to eight hours to only
15 minutes under the EBNRS, as information fields in the application document
were reduced from 36 to 18 and the number of pages were lessened from nine to
one.
Philippine Business Registry (PBR)

The average processing time to register sole proprietorships was reduced to
30 minutes with the use of the PBR. Corporations registered with the
Securities and Exchange Commission (SEC) are also able to use the PBR in
kiosks located in the SEC Head Office. The number of days to process
applications of micro and small enterprises for registration with the BOI
was reduced from 20 days to one day with the implementation of measures to
simplify procedural flow and required documents. At present, sole
proprietorships can already register/validate their existing business name (DTI),
obtain their tax identification number (Bureau of Internal Revenue or BIR) and
employer registration numbers (Social Security System or SSS, Philippine
Health Insurance Corp. or PhilHealth, and Home Development Mutual
Fund or Pag-IBIG) through this web-based facility in DTI tellers. For
corporations, PBR allows SEC-registered companies to get SSS, PhilHealth and
Pag-IBIG employer registration numbers at the SEC Head Office.
To better improve service delivery, the EBNRS and PBR have been
successfully migrated to the cloud-computing environment on 17 January
and 4 February 2013, respectively.
Other members include the National Competitiveness Council, Department of Finance, Department of Interior
and Local Government, Department of Justice, Bureau of Internal revenue, Bureau of Customs, Land
Registration Authority, Credit Information Corporation, Securities and Exchange Commission, Social Security
System, Home Development Mutual Fund and Philippine Health and Insurance Corporation.
30
54
Productivity and innovative capacity

Improved technological readiness and innovation
In the latest 2013-2014 W EF Global Competitiveness Report, the
country improved in terms of technological readiness and innovation
indices. The Philippines moved from 95th out of 139 countries in 2010 to
77th out of 148 countries in 2013 in technological readiness index and climbed
from 111th out of 139 countries in 2010 to 69th out of 148 countries in 2013 in
innovation index.31
Product and market diversification

Innovation equals dynamic I&S sectors characterized by the proliferation of
many products and their designs.
The manufacturing sector in general lacks product diversification. The
Hirschman Index32 has not improved since the 1960s and has even become more
concentrated (i.e. from 0.41 in 1967 to 0.43 in 2012). The sector is
concentrated on relatively few products, particularly low-value added
manufactures. It is also characterized by a narrow product space consisting
mainly of natural/raw materials (periphery products)
and
less
of
33
machinery, chemicals and capital intensive products (core products).
A huge number of
enterprises in the country
are unable to reach the
scale needed to achieve
production efficiency.
Low productivity in the MSME sector

Of the 820,254 business enterprises in 2011, 99.6 percent are micro-, small and
medium enterprises (MSMEs).The MSME sector contributed 61.0 percent of
total employment but only accounted for 35.7 percent of total value added.34 The
sector is also characterized by a hollow and missing middle.35 Of the total
MSMEs, 91.0 percent are micro, 8.6 percent are small, and 0.4 percent are
medium enterprises. This implies that a huge number of enterprises in the
country are unable to reach the scale needed to achieve production efficiency.
Consumer welfare
Consumer complaints received by Consumer Welfare Desks both in
government field offices and in business establishments reached 74,913 in
2010, 64,759 in 2011 and 69,192 in 2012. Majority were about consumer
products and service warranties, product quality and safety, and change of
consumer preference. Resolution remained high at 98 to 99 percent but the
challenge is on reducing the
Technological readiness measures how quick an economy adopts existing technologies to enhance the
productivity of its industries, with emphasis on its capacity to fully leverage information and communication
technologies (ICT) in daily activities and production processes for increased efficiency and enabling
innovation for competitiveness. Innovation focuses more on technological innovation.
32
The Hirschman Index measures the degree of concentration. A value closer to 1 indicates that the
manufacturing industry is concentrated in few subsectors/products.
33
Based on the 2012 ADB study entitled Taking the right road to inclusive growth: Industrial upgrading and
diversification in the Philippines conducted by Norio Usui
34
DTI website accessed on 27 August 2013. Source of basic data is the MSME Development Plan 2011-2016
35
Aldaba, R.M. (2013). Reviving the manufacturing industry presented during NAST roundtable discussion
on development Progeria on 17 January 2013
31
55
resolution period. There is also a need to step up enforcement activities to

prevent proliferation of substandard products in the local market.
Market access
Philippine goods exports grew by 7.9 percent from US$48.3 billion in
2011 to US$52.1 billion in 2012. In the first half of 2013, goods exports reached
US$25.6 billion, which is 4.4 percent lower than in the previous year. On the
other hand, the value of exports of services in 2012 was recorded at US$18.6
billion, or an increase of 4.2 percent from that in 2011. Transactions related to
information technology- business processes management (IT-BPM) were the
main contributors to the exports of services.
Total tourist arrivals in the

Philippines only accounts
for 4 .8 percent of the total
tourist arrivals in ASEAN.
The Philippines goods export concentration based on the HerfindahlHirschman Index has improved from 0.25 in 2011 to 0.22 in 2012, although
it is still heavily dominated by electronics, which accounts for 43.3 percent of
total Philippine exports in 2012. Moreover, Philippine goods exports are still
more concentrated than that of Indonesia (0.17), Malaysia (0.16),
Vietnam (0.12) and Thailand (0.08).36
In addition, Philippine goods exports are still dependent on traditional
markets such as the US, Japan and China. Part of the reason is the countrys
inability to meet standards of and comply with measures imposed by other
countries and due to comparatively higher production cost, which affects
the competitiveness of Philippine exports, among others. A study on the
countrys national quality infrastructure
(NQI)
and
government
regulatory practices conducted in September-December 2011 showed that
elements of the NQI (i.e., standards, metrology, accreditation, certification
and testing) are fragmented and, for the most part, inadequate.
The Philippine tourism brand Its more fun in the Philippines was launched
in 2012, primarily to attract foreign tourists and create a positive image of the
country especially to investors. In 2012, total inbound visitors reached 4.3
million, which is
9.1 percent higher than that in 2011. Koreans were the biggest group of
inbound visitors accounting for 24 percent of total, followed by US (16 percent)
and Japan (10 percent). Despite the increase in tourist arrivals, the Philippines
ranked only 6th among 10 ASEAN member states in attracting foreign tourists
in 2011, the same ranking since 2004. Total tourist arrivals in the Philippines
only accounts for
4.8 percent of the total tourist arrivals in ASEAN.
UNCTAD Stat, unctad.org; The Herfindahl-Hirschman Index or export concentration index is a measure of
the degree of concentration of exports of a country. A value that is much closer to 1 indicates that exports are
concentrated in few products.
36
56

For the remaining Plan period, the country aims to strengthen the industry
sector while continuing support for a robust services sector to facilitate the
attainment of a more rapid and sustained growth, generate more quality
employment, reduce poverty and eventually achieve an inclusive growth.
One of the main priorities of the government is to revitalize the manufacturing
subsector, given its potential for innovation, value adding, and
backward linkage with the agriculture sector, which is the main source of
livelihood of the poor. Industry roadmaps will be implemented and will serve
as bases of the Comprehensive National Industrial Strategy (CNIS). The
CNIS will include strategies to strengthen the link with basic sectors as
suppliers (i.e., link to agriculture sector for raw materials) or markets (i.e.,
potential for downstream link) and to make local industries more
competitive in preparation for greater regional and global integration.
The industry sector will also be fuelled by the construction subsector, as
the government ramps up its effort to address infrastructure backlogs and
targets infrastructure spending at 5 percent of GDP by 2016.The bulk of the
rehabilitation and reconstruction efforts in areas affected by disasters, especially
Typhoon Yolanda, is expected to be undertaken in 2014 and this could increase
the demand for labor in the construction and agriculture subsectors. W hile these
efforts are expected to linger in 2015, the private sector is expected to gain
momentum during this period as the country demonstrates its resilience and
the level of investor confidence heightens due to the implementation of needed
strategies and reforms.
The I&S sectors will continue to be the major sources of growth. The
industry sector is targeted to grow by 9.2 to 9.7 percent in 2013, 9.8 to 11.0
percent in 2014,
8.6 to 9.7 percent in 2015, and 9.3 to 10.3 percent in 2016. The services sector
is projected to expand by 6.6 to 7.0 percent in 2013, 6.0 to 6.9 percent in 2014,
6.8 to 7.8 percent in 2015 and 7.2 to 8.1 percent in 2016. W ith the
implementation of measures to make the workforce more responsive to the needs
of industries and ready to participate in the growth process, the I&S sectors are
targeted to create an average net employment of 887,000 to 921,000 from 2014
to 2016. These targets consider the implications of the K to 12 educational
system in the labor force growth rate, which is expected to slowdown from an
average of 2.2 percent in 2010 to 2012 to an average of 1.7 to 1.9 percent in
2014 to 2016.
One of the main priorities

of the government
is to revitalize the
manufacturing subsec tor,
given its potential for
innovation, value adding,
and backward linkage with
the agriculture sector.
Table 3.2 shows the summary of the updated targets for the I&S sectors.
57
Table 3.2 Revalidated results matrix (RM) on competitive and innovative industry and services
(I&S)sectors
Indicator
Baseli
ne
(2012
)
End-of-Plan
target
(2016)
Assumptions and risks
Sector outcome: Globally competitive and innovative industry services sectors achieved
Employment generated from
597,000
887,000-921,000
Macroeconomic
the I&S sectors increased
(average 2014fundamentals (e.g. infation,
annually
2016)
GDP growth, interest rates)
stable
I: 6.8 %
I: 9.3-10.3%
Political stability
GVA in the I&S sectors improved
S: 7.6%
S:7.2-8.1%
Governance improvement efforts
Philippine innovation index

3.0
3.5
in the WEF Global
Competitiveness report
improved37
Sector outcome A: Business climate improved
Philipine overall ranking in the
136/183
Top third of total
WB-IFC Doing Business
countries surveyed
(e.g. 62/189)
report improved
Sector outcome B: Productivity and innovative capacity increased
Intellectual property products
18%
5-6%
Labor productivity
in I&S sectors
expenditures
increased
4.9%
4.7-5.5%
maintained
Natural disasters and calamities
managed
Projects/programs implemented on
time
Macroeconomic
fundamentals/indicators stable
Infrastructure development pursued
time
increased
38
Sector outcome C: Consumer welfare enhanced

Level of consumer awareness on
57%
80%
rights to safety, information and
prices improved
Sector outcome D: Market access expanded
Merchandise
US$ 52.1 billion
US$ 91.0 billion
Services exportsexports
increased by
US$ 18.6 billion
US$ 29.0 billion
increased
55. 9%
by 74.7%
Total approved investments

increased by 35.8%
PhP697.7 billion
Global economic situation (recession)

managed
Macroeconomic
fundamentals/indicators
stable
Peace and security managed

Infrastructure development pursued
37
38
58
PhP947.2billion
time
Innovation index rated from 1 to 7, 7=best

Labor productivity =GVA/number of employed.

The strategies to make I&S sectors globally competitive and innovative
are aimed at four subsector outcomes: business climate improved; productivity
and innovative capacity increased; consumer welfare enhanced; and market
access expanded (Figure 3.2).
Figure 3.2. Strategic framework on competitive and innovative

industry and services (I&S) sectors
Globally
competitive and
innovative I&S
sectors achieved
Sector outcome
Subsector
outcomes
Business
climate
improved
1.Improve
governance
Strategies
2.Provide
adequate
infrastructure
support
Productivity and
innovative
capacity
increased
3.Harness
science,
technology and
innovation
4.Enhance
competencies of
labor
5.Expand
industry cluster
development
Consumer
welfare
enhanced
6.Ensure
consumer
satisfaction
7.Improve
supply chains of
basic and prime
commodities
Market
access
expanded
8.Maximize
opportunities
in regional and
global
integration
9.Harmonize the
National Quality
Infrastructure
NQI) with
internationally
accepted QI
10.Strengthen
national brand
awareness
Key sectors and locations

The following sectors will be developed in view of their potential to contribute
to employment generation, as well as rapid and sustained growth.
Agro-industry
The government will pursue programs/interventions that strengthen
agriculture- industry linkage. Large enterprises will be encouraged to partner
with MSMEs.
Agriculture-based sectors, such as, but not limited to, coconut, coffee,
furniture, garments, fisheries and forest-based sectors, will be developed given
their potential
59
to generate employment and reduce poverty in rural areas, particularly in

the Category 1 provinces (see Chapter 1: A roadmap to inclusive growth).
For the coconut sector, the Integrated Coconut Industry and Poverty Reduction
Roadmap will be implemented.
Entrepreneurship will be promoted among small-holder farmers.W hile
agricultural productivity is being addressed, the government will also provide
support to small- holder farmers and agri-cooperatives in terms of product
development, value- adding, and integration to big enterprises for marketing
and financing purposes. Strategies to increase value-adding and agri-business
development among small- holder farmers are also discussed in Chapter 4
(Competitive and sustainable agriculture and fisheries sector).
Manufacturing
The halal industry w ill be
developed, especially in
Mindanao.
The manufacturing sector will be revitalized through the implementation of

the Manufacturing Revival Program by various national agencies.39
The private sector will be encouraged to venture to nearby products with
highest spillover effects including, among others, manufacture of digital data
processing machines, watches, cameras, television, and clocks.These products
can be developed with ease since existing capabilities to manufacture
currently exported products could be used.40 To boost employment, laborintensive manufacturing subsectors (e.g. garments, footwear, processed foods,
furniture, etc.) will also be promoted.
The halal industry will be developed, especially in Mindanao. The government
will continue to provide information to producers on good manufacturing
practices, international standards, and clean production technologies, among
others, as well as provide metrology, calibration and accreditation services. These
will facilitate the entry of local products in more export markets and assure
consumers of the safety of locally made products.
The country will also continue to promote and expand investments in
the shipbuilding industry especially in the Visayas area.
A framework for mineral processing/value-adding will be formulated. A
fair revenue-sharing mechanism for both the government and the mining
firms will be put in place and the country will participate in the Extractive
Industries Transparency Initiative (EITI).
DTI (lead), Departments of Labor and Employment (DOLE), Science and Technology (DOST),
DOLE- Technical Education and Skills Development Authority (TESDA), Commission on Higher Education
(CHED), Department of Agriculture (DA), Philippine Coconut Authority (PCA), Department of Energy (DOE),
National Power Corporation (NPC), and National Electrification Administration (NEA).
40
Based on the 2012 ADB study entitled Taking the right road to inclusive growth: Industrial upgrading and
diversification in the Philippines conducted by Norio Usui
39
60
Tourism
Tourism development will be a priority program of the government. By 2016,
the government aims to achieve the following: (a) 10 million international visitor
arrivals;
(b) PhP455-billion international visitor receipts; (c) 56.1 million domestic
travelers; and (d) PhP1.86-trillion domestic receipts.41 To achieve these,
the following strategies will be pursued: (a) develop and market competitive
destinations and products; (b) improve market access, connectivity and
destination infrastructure; and (c) improve tourism governance and human
42
resource capabilities.
Strategic
tourism products
will be developed and supported in the following
top nine tourism cluster destinations to expand visitors expenditure and length
of stay: Central Visayas; Metro Manila and CALABARZON; Central Luzon;
Palawan; Western Visayas; Davao Gulf and Coast; Cagayan de Oro, Island and
Hinterland; Bicol; and Laoag-Vigan.43 These products include medical and
retirement tourism; leisure and entertainment; meetings, incentives, conventions
and exhibitions; cruise and nautical tourism; education tourism; and agritourism. Business travelers will be encouraged to tour the country while looking
for investment opportunities.
IT-BPM
The country will exert efforts to remain as the leader in voice BPM services.
The government will also nurture the Filipino talent pool by promoting and
accelerating the development of high-value IT-BPM services and the NextWave Cities.44 By 2016, the sector is expected to directly employ 1.3 million
people, 520,000 of whom will be in the countryside.
Both the public and

the private sectors will
promote the Philippines
as a preferred information
technology and business
process management
(IT-BPM) destination.
Both the public and the private sectors will promote the Philippines as a
preferred IT-BPM destination. The marketing strategy will highlight the
countrys large trainable and educated English-speaking talent pool, proven
track record, good infrastructure, cost competitiveness, and other competitive
advantages.
National Tourism Development Plan

Department of Tourism (DOT) presentation to the Economic Development Cluster (EDC) on 17 June 2013
43
Top 9 cluster destinations in order of importance based on the National Tourism Development Plan.
44
Baguio, Davao, Dumaguete, Iloilo, Lipa, Metro Bulacan (Baliuag, Calumpit, Malolos, Marilao,
and Meycauayan), Metro Cavite (Bacoor, Dasmarias and Imus), Metro Laguna (Calamba, Los Baos and Sta.
Rosa), Metro Naga (Naga and Pili), and Metro Rizal (Antipolo City, Cainta and Taytay)
41
42
61
Logistics
To support the expansion of Philippine industries, the government will
encourage investments in the development of logistics infrastructure to cater to
both domestic and international supply chains. Furthermore, the
government will review and develop/reform related policies and rules, such
as customs practices; trans- shipment of cargoes through various modes (i.e.
air-air, sea-air, and air-sea); and foreign shipping services along the entire
multimodal transportation chain. The government, in coordination with the
private sector, will formulate and implement the National Logistics Plan and
will target to reduce the share of logistics costs (including shipping) in the cost
of goods and services from 23 percent to 15 percent by 2016.45
Construction
The government will

continue to promote
transparent and
predictable policies to
create an environment
conducive to business
to encourage
investm ents.
The country will also promote investments in construction (e.g.

infrastructure projects, mass housing and housing related materials, etc.). A
strong public-private partnership will be pursued to effectively govern and
monitor the sector. The government in partnership with the private sector will
pursue the liberalization of contractors licensing and registration,
promotion and development of domestic and overseas construction, and
efficient implementation of the dispute resolution mechanism.
Subsector outcome A: Business climate

improved
To improve the business climate, the first strategy is to improve

governance by streamlining procedures, implementing policy reforms and the
e-commerce law, combating smuggling, rationalizing economic zone
development, promoting mutually agreed upon work arrangements and
maintaining industrial peace.
The second strategy is to provide adequate
infrastructure.
Strategy 1: Improve governance

a. Further streamline bureaucratic procedures
The government will continue to promote transparent and predictable policies
to create an environment conducive to business to encourage investments. By
2016, the government aims that all LGUs have adopted streamlined BPLS.
Moreover, efforts to automate the BPLS for faster and more efficient
transactions with government will be continued.
The government will likewise continue to undertake measures to link the
PBR with LGUs to ensure that businesses in local communities will enjoy the
benefits of easier registration. These programs will be complemented by the
efforts of the National Competitiveness Council (NCC), with the help of the
DT I, Department of the Interior and Local Government (DILG), SEC, BIR,
SSS, PhilHealth, Pag- IBIG and the Q uezon City government, under the Doing
Business Dashboard, to bring down the number of steps (from 16 to 3) and days
(from 36 to 6) to start a business by 2016.
45
62
DOTC presentation to the EDC on 17 June 2013
The linkage of the National Single W indow with the Electronic to Mobile
(E2M) system will be pursued to facilitate trade and reduce transaction costs for
businesses.
b. Promote a consistent, predictable and responsive policy environment

The government will, among others, continue to support policy reforms that will:
Liberalize certain investment areas, except those provided in the
Constitution, to increase investments and generate more and decent
employment;
Reduce domestic shipping costs through the review of the cabotage rule
and leveling of playing field among domestic and foreign shipping lines;
Harmonize various incentive-giving laws such as those given by the
BOI, PEZA, special economic zones, and other statutes through the
Rationalized Fiscal Incentives Act;
Institutionalize land use planning as a means for the rational and just
allocation, utilization, management, and development of our countrys land
resources, as well as lay down specific policies on industrial
development areas/sites and tourism development areas, among others,
through the enactment of the Land Use Act;
Level the business playing field by strengthening the legal and
institutional framework to prevent unfair and anti-competitive practices
through the enactment of the Anti-trust/Competition Policy Act;
Pursue customs modernization by amending the Tariff and Customs Code
of the Philippines, consistent with the prescribed standards and
recommended practices of the revised Kyoto Convention;
Rationalize revenue-sharing
mining operations;
arrangement
for
large-scale
metallic
Broaden protection of consumers46 and incorporate the Lemon Law through

the amendment of the Consumer Act;
Increase labor mobilization and gradually shift industries to technologydriven processes, among others, through the amendment of the Labor Code;
Provide uniform rules and regulations governing global maritime
professionals in accordance with the Standards for Training, Certification
and Watchkeeping (STCW ) Convention and establish the Maritime
Industry Authority (MARINA) as the single and central
maritime administration of government; and
Improve the negotiation process and build the capacity of trade negotiators.
Through provisions on price tag requirements, physical safety, labelling to include translations and
official sources on information, among others.
46
63
c. Fully-implement the e-commerce Law

The government will fully implement the e-Commerce law to ensure speedy
and better delivery of government services and information, including
health and education, especially in the countryside.
d. Strengthen measures against smuggling
The development of
economic zones is
private sector-led but
with appropriate and
strategic support from
the government .
The government will curb and prevent smuggling by putting in place

specific measures identified under Chapters 2 (Macroeconomic policy) and
7 (Good governance and the rule of law).
e. Rationalize economic z one development

The government will continue to adhere to its policy that the
development of economic zones is private sector-led but with appropriate and
strategic support from the government. Development/expansion of
economic zones through existing economic zone and/or free port authorities
will consider regional dispersal of industries, pre-identified priority growth areas
for targeted sectors, use of local/ indigenous resources, and adherence to
environmental laws, land use policies, and net benefits, among others.
f. Promote mutually agreed-upon w ork arrangements

Mutually agreed-upon work arrangements, which are consistent with
the promotion of employment and protection of basic rights of workers, as
well as increased efficiency and streamlined operations, will be supported. The
two-tiered wage system, which seeks to balance interests of workers and
employers, will be implemented. This system, which was already piloted in
Region IV-A, has two components: (a) a mandatory single regional floor
wage as the first tier; and (b) voluntary performance or productivity-based pay
adjustments for wages above the floor wage, as the second tier.
g.Maintain industrial peace

The government will continue to push for the development of Voluntary Codes
of Good Practices in industries to transform a traditionally litigious labor
relations system to one that incorporates the tenets of social dialogue. The
mechanism will foster the culture of self-regulation, where labor and
management can freely set industry rules and standards in accordance with
existing laws and regulations. The Single Entry Approach Program (SEnA),
which is 30-day mandatory conciliation- mediation approach, will be
promoted as a means to de-judicialize dispute settlement procedures.
Strategy 2: Provide adequate infrastructure support

Adequate and good quality infrastructure such as intermodal transport (air,
sea, land), power supply facilities, logistics, among others, are needed to facilitate
doing business in the country. Strategies, programs and action plans for
infrastructure development are listed in Chapter 10 (Accelerating infrastructure
development).
64
Subsector outcome
capacity increased
B:
Productivity
and
innovative
Increasing productivity will require harnessing science, technology

and innovation, enhancing the competencies of the labor force, and
expanding industry cluster development.
Strategy 3: Harness science, technology and innovation

The country will make full use of existing technologies to make local
industries competitive and innovative while building local research and
development (R&D) capacity to address local problems. The government will
build local R&D capabilities for transformative, cutting-edge and sustainable
technologies with broad applications (e.g. information and communications
technology or ICT, biotechnology, advanced manufacturing technology and
new materials technology, among others). Climate-smart/clean technologies
will also be developed and promoted. To ensure the efficient use of
resources, a national R&D agenda will be adopted that will guide relevant
government agencies on the prioritization of programs.
a. Broaden access of small entrepreneurs to innovative, cost-effective

and appropriate technologies
Local industries will be encouraged to benchmark processing technologies

with countries considered leaders in specific industries (e.g. food processing in
Thailand and Taiwan) and to design and implement technology catch-up
programs to make them at par with benchmarked countries.
A national research and

development agenda w ill
be adopted that will guide
relevant government
agencies on the
prioritization of programs.
Innovation centers will be established nationwide to support MSMEs

to undertake innovative product development. Existing testing, calibration
and quality assurance facilities and services will be enhanced and upgraded. The
Small Enterprise Technology Upgrading Program (SETUP) will be expanded
to focus on identified priority geographical locations where the poor reside.
Mining and minerals processing industries will be provided with sustainable
practices and green technologies, not only to add value to extracted minerals,
but also to promote better and responsible mining practices.
b. Enable local industries to innovate

The government will provide state-of-the-art facilities to assist local companies
to undertake design, prototyping, and product development (e.g. Advanced
Materials Testing Laboratory, Electronic Product Development Center, and
Philippine IC Design Center, among others).
The government will also build local technological capability of the mass
transport industry by supporting the design and development of alternative
mass transport systems that are low-cost, environment-safe and efficient but
suited to the needs of commuters in the metropolis, such as the Automated
Guideway Transit (AGT ) and road trains.
65
c. Leverage ICT to expand economic opportunities

The government will adopt strategies aimed at making the country a global
leader in IT-BPM services. This will be complemented by the
implementation of the e-Gov Master Plan (EO 47), which aims to broaden
the access of citizens to government services (i.e., health and education) with
the use of ICT. This includes the provision of the needed ICT infrastructure and
shared services, standards and interoperability for publicly funded systems,
particularly the rolling out of the TV W hite Space Public Service Infrastructure.
The latter will serve as a platform for 1,500 community e-Centers covering
42,000 barangays. Strategies, programs and action plans on ICT are also
discussed in Chapter 10 (Accelerating infrastructure development).
d. Mobilize scientists, engineers and researchers

The government w ill
strengthen the net working,
cooperation and exchange
mechanisms to mobilize
Filipino scientists and
engineers to support social
and technological
innovations at the
communit y level.
The government will strengthen the networking, cooperation and

exchange mechanisms to mobilize Filipino scientists and engineers to
support social and technological innovations at the community level.
Science and technology (S&T) graduate scholarship programs, such as
the Engineering R&D and Technology (ERDT ) Program and the Accelerated
S&T Human Resource Development Program (ASTH RDP) will be
expanded to promote S&T-related professions. The undergraduate S&T
scholarship program for poor but deserving students will be democratized
with at least one DOST scholar in each town by 2016.47 A Philippine
Science High School (PSHS) campus will also be established in each region.48
Strategy 4: Enhance competencies of labor

Market-driven education and training will be pursued to address the needs of
the I&S sectors. The government, through the Department of Education, will
develop curricula that put more emphasis on S&T, entrepreneurship,
agribusiness, software and vocational skills in the senior years (years 11-12 of the
K to 12 system).
Colleges/universities will be encouraged to participate in technology parks
and business incubator facilities and introduce entrepreneurship training in
their curricula to inspire students to take research from the academe to firms.
Other policies and strategies on education and training can be found in
Chapter 6 (Social development).
The competency of Filipino workers and professionals will be strengthened
to prepare them for regional and global integration (e.g. AEC 2015)
through
the following: (a) Philippine Q ualifications Framework; (b)
competitiveness roadmaps of different professions; (c) outcome-based
education and the use of learning outcomes; and (d) continuing professional
development.
47
48
66
As provided under RA 7687

As provided under RA 9036
The
government, through TESDA, will
continuously
provide
enhancement trainings/programs to produce highly skilled Filipino workforce
needed by the I&S sectors.
Strategy 5: Expand industry cluster development

The government will also promote inclusive businesses and include lowincome communities in product value chains. To the extent possible, the
industry-cluster approach will be used to develop the identified key sectors.
The approach will promote linkage between agriculture and industry
(processing) to increase value- added of products. It will also allow the industries
to realize economies of scale and link micro- and small enterprises to medium
and large ones.
The industry clustering program will be expanded.Industries need to prepare
sectoral roadmaps that will show linkage with basic sectors as suppliers and/or
markets. These industries will also continuously upgrade their technology and
facilities with governments proactive support through the establishment of
technology business incubation centers, shared service facilities that provide
testing laboratories for safety and quality standards, agro-industrial hubs and
central storage.
Subsector outcome C: Consumer welfare

enhanced
Industries need to prepare

sectoral roadmaps that will
show linkage w ith basic
sectors as suppliers and/ or
markets.
Even as industries are supported, it is important to protect and promote

consumer welfare by taking into account consumer satisfaction and
intensifying consumer protection and trade regulation.
Strategy 6: Ensure consumer satisfaction

a. Intensify consumer education/advocacy
The strategy will focus on empowering consumers by informing them of their
rights, responsibilities and avenues for redress. Consumers then become
discriminating customers and demand better quality goods and services as well as
value for money. W hen consumers are empowered, they improve economic
performance by driving competition and business innovation.49
b. Intensify consumer protection and trade regulation

To safeguard the interests of consumers, the government will increase
market visibility through aggressive monitoring and enforcement activities. It
will intensify price monitoring activities to guarantee reasonable prices and
prevent any acts of illegal price manipulations by suppliers/producers.
Complementing these efforts need increased partnership with business and
consumer groups, LGUs, and non- government organizations (NGOs).
49
Organisation for Economic Cooperation and Development (OECD), 2010
67
To guarantee product safety, product standards laws, rules and regulations will
be strengthened and penalties imposed on violators. Market surveillance
activities (e.g. marking of products, declaration of conformity, among
others) will be strengthened to push the need for accurate measurements,
standards, and accredited conformity assessments.
Consumer complaints will be resolved promptly. The resolution period of
seven working days for mediation and 20 working days for arbitration will be
strictly implemented. The government will also continue to recognize
establishments that uphold the rights of consumers and sell quality
products. This effort aims to encourage the retail industry to strengthen
and accelerate its self-policing mechanism, so consumers can expect value for
money.
Box 3.1. Improving government support to micro, small
and medium enterprises (MSMEs)
Government will continue to support MSMEs to increase their contribution to
the countrys GDP and total employment.
SME Roving Academy. The government will scale up implementation of the SME
Roving Academy Program. This is a continuous learning program for MSMEs to
help them become more competitive in the domestic and international markets.
Under the SME Roving Academy, start-up enterprises will be provided assistance on
business registration procedures, training on managerial skills, customer
relations management, financial management, green values, marketing
management, costing and pricing, and market information. Existing enterprises will
be assisted on technology application, productivity improvement, Hazard
Analysis Critical Control Point (HACCP), Good Manufacturing Practice (GMP)
awareness, waste minimization in the manufacturing process, Total Quality
Management, basics on exporting, and trade fairs participation, among others.
Improved access to financing. Programs under this strategy will help
ensure reasonable and affordable cost of obtaining MSME loans;
reasonable and manageable requirements for compliance by MSMEs to obtain
loans; and simplified and streamlined process to obtain loans. The government will
also promote institutions that could develop insurance parameters against risks.
More rural banks and financial institutions will be trained on risk-based lending.
Improved access to technology. Small entrepreneurs will be provided access
to innovative, cost-effective and appropriate technologies, such as the
Shared Service Facilities.
Sustainable micro-enterprises. The government recognizes the importance
of achieving economic growth that is environmentally sustainable. Initiatives
will be undertaken to increase awareness among MSMEs on the effects of climate
change and how green economy can foster long-term competitiveness. In
fostering green growth, the government will promote, develop and sustain I&S that
are climate-smart and -resilient, eco-efficient and environment friendly.
68
Strategy 7: Improve supply chains of basic and prime commodities

The government through the DTI will continue to implement various
programs to ensure affordability and supply of basic necessities and prime
commodities, especially during crisis.The government and the private sector will
work together in undertaking an in-depth review of the supply chain to
determine major bottlenecks and identify effective points of interventions to
make enhancements and eliminate inefficiencies. The government will also
strengthen infrastructure support and logistics mechanisms to improve
efficiency in transport and distribution system, hence, reducing cost in bringing
goods and services to the market.
The government will focus its investment promotion activities in the

identified priority
sectors
and
provide
comprehensive
business
intelligence to enable businesses to make informed decisions. Investment
promotion programs of the national IPAs and LGUs will be harmonized.
The IPAs will intensify promotion efforts in countries such as Japan,
Netherlands, US and Korea, while at the same time strategically reach out to
developmental markets with strong potential for outward investments such
as Russia, Brazil, Middle East, among others.
O verseas Filipinos (OFs) will also be
investments.The Commission on Filipinos
Sentral ng Pilipinas will continue to conduct
OFs and their families to educate them on
and remittance options.
Greater collaboration w ith

ASEAN member states will
be undertaken to realize
the potential of the ASEAN
as a source market for
to urism.
tapped as possible sources of

O verseas, DTI, and the Bangko
financial literacy campaigns among
business opportunities, investment
Strategy 8: Maximize opportunities in regional and global integration

The government will intensify advocacy programs that will encourage
businesses, particularly MSMEs,to maximize benefits from opportunities offered
by Philippine participation in free trade agreements and the ASEAN
Economic Community 2015. Local industries will be encouraged to make use
of preferential agreements not only through education and information
campaigns but also through business matching activities.
The Philippine Export Development Plan (PEDP) 2014-2016 will
be formulated and implemented. The PEDP strategies will take into
consideration the thrusts to diversify export products as well as adapt to the
changing global demands and emerging issues. It will be linked with the
Comprehensive National Industrial Strategy.
Greater collaboration with ASEAN member states will be undertaken to
realize the potential of the ASEAN as a source market for tourism. This is in
line with the ASEAN Tourism Strategic Plan and the Multilateral
Agreement on Full Implementation of Passenger Air Services and ASEAN
Common Visa for non- ASEAN nationals. Tour programs will be developed
through twinning and dual
69
destination with other ASEAN countries, and attracting more international

tourists and foreign direct investments in tourism.
Strategy 9: Harmonize the National Quality Infrastructure (NQI)

with internationally accepted QI
The government will harmonize and strengthen the different elements of
NQI to be at par with those of ASEAN neighbors. The NQI will: (a) provide
access to traceable calibrations and measurement standards through the
National Metrology Laboratory; (b) link internationally recognized
accreditation bodies with the national accreditation body (i.e. Philippine
Accreditation Office under DTI); (c) enable compliance with international
requirements (e.g. ISO standards and CODEX); and (d) allow the countrys
active participation in international standards comparison and have mutual
recognition arrangements with ASEAN and other trading partners.
Strategy 10: Strengthen national brand awareness

The government will undertake a highly targeted media campaign in
priority investment source countries. The Philippines will aggressively
promote unified country branding that will bring home the message that it is a
producer and supplier of high quality, ethical, sustainable and world-class
products and services that are valued worldwide. Buying of Philippine-made
products and local technology works will also be promoted.
To determine progress towards having globally competitive and
innovative I&S sectors, three core indicators will be monitored: (a)
employment generated from I&S increased; (b) GVA in the I&S sectors
improved; and (c) Philippine innovation index in the W EF Global
Competitiveness Report improved. There are also indicators corresponding to
subsector outcome and these are listed in Table 3.3.
The agencies/bodies that will lead in the implementation and report on the
results of the strategies are the DTI, Departments of Science and Technology
(DOST), Labor and Employment (DOLE), Tourism (DOT ), NCC, Export
Development Council (EDC), Intellectual Property Office, BOI, PEZA, and
other IPAs. These agencies/bodies will report every quarter to the Economic
Development Cluster (Econ Cluster) of the Cabinet, which is chaired by the
Department of Finance, and co-chaired by the DTI and Department of Energy,
with the NEDA as secretariat.
70
Table 3.3. Annual target indicator matrix on competitive and innovative industry and services
(I&S) sectors, 2013-2016
Indicators
Annual Plan targets
Means
of
2013
2014
2015
2016
Verificat
ion
Sector outcome: Globally competitive and innovative I&S sectors achieved
Employment generated
824,000887,000887,000from the I&S sectors
890,000
921,000
921,000
increased annually
GVA in the I&S sectors
I: 9.2-9.7%
I: 9.8-11.0%
I: 8.6-9.7%
improved
S: 6.6-7.0%50
S: 6.0-6.9%
S: 6.8-7.8%
Philippine innovation index
3.2
3.3
3.4
in the WEF Global
Competitiveness report
improved51
Subsector outcome A: Business climate improved
Philippine overall ranking in
the
WB-IFC
Doing
Business report improved
Subsector outcome B: Productivity and innovative capacity increased
Intellectual property
5-6%
5-6%
5-6%
products expenditures
increased
Labor productivity in I&S
4.2-4.3%
3.9-4.7%
4.1-5.0%
sectors increased52
Subsector outcome C: Consumer welfare enhanced
Level of consumer
73%
74%
75%
awareness on rights to
safety, information and
prices improved
Merchandise exports
US$60.0
US$69.0
US$79.0
billion
billion
billion
increased by 74.7%
Services exports increased
US$21.0
US$23.0
US$26.0
by 55.9%
billion
billion
billion
Total approved investments
increased by 35.8%
Agency
responsi
ble
DTI
887,000921,000
Labor Force
Survey
I: 9.3-10.3%
S: 7.2-8.1%
3.5
National Income
Accounts
WEF Global
Competitiveness
Report
top third
WB-IFC
Doing
Business Report
NCC
5-6%
National
Income
Accounts
PSA Reports
IPO
4.7-5.5%
80%
US$91.0
billion
US$29.0
billion
PhP947.2
billion
DOST
DOLE
DTI Reports
DTI
PSA Reports
EDC
BSP Reports
PSA Reports
DTI/BOI
DBCC approved growth estimates as of December 2013

Innovation index rated from 1 to 7, 7=best
52
Labor productivity =GVA/number of employed.
50
51
71
Competiti
and
ve
agriculture
sustainable
fisheries
and
sector
I. INTRODUCTION
The agriculture and fisheries (A&F) sector plays an important role in the
countrys development and improvement of living conditions of Filipinos.
Given the countrys natural endowments, many Filipinos rely on A&F both to
provide food for their families and to earn income so they can improve their
quality of life. The sector also produces not only food but also raw materials vital
to fuel the growth of other economic sectors.
The Updated Philippine Development Plan (PDP) pays closer attention to
A&F sector and its links with industry and services (I&S) so as to fulfill its
potential to reduce poverty and generate quality employment for more Filipinos.
This Updated PDP provides a strategic policy framework for facilitating
the process of structural transformation that will make the A&F sector
sustainable and competitive and enable it to help rapidly bring the economy to a
higher growth trajectory where more Filipinos not just benefit from growth but
also contribute to it.
By the end of 2016, the sector will have achieved higher incomes and
improvement of food security, especially for the farm households, through (a)
further increases in agricultural and fisheries production with more prudent use
of resources; (b) greater linkage with the manufacturing and industrial sector with
increased production of raw material inputs; and (c) enhanced sector
resilience to climate change risks. These are reflected in Figure 4.1, which is
the results framework for the chapter.
74
Figure 4.1. Results framework on competitive and sustainable

agriculture and fisheries (A&F) sector
Goals
Intermediate
goals
Sector
outcome
Subsector
outcomes
Intermediate
outcome

employment created
Rapid and sustained

economic growth
achieved
Equal development
opportunities
achieved
Competitive and sustainable

agriculture and fisheries sector
achieved
Productivity in
agriculture and
fisheries sector
increased
Forward linkage
to the industry
and services
sectors increased
Sector
resilience to
climate change
risk increased
Land tenure
security
improved
II. ASSESSMENT AND CHALLENGES

The Updated PDP draws lessons from the A&F sectors performance
and identifies challenges, which inform the strategies for the sector in the next
half of the PDP implementation.
Assessment
Experiences of major developing countries show that substantial poverty
reduction that was achieved in the past two decades was due primarily to
economic growth and structural transformation, particularly in Asia.
Structural transformation involved significant shifts of labor from lowproductivity areas in agriculture to high-productivity areas in industry,
particularly manufacturing, and services. Agriculture had to grow rapidly to
make this happen. W ithout rapid agricultural growth, food prices and wages
would have had to rise. But with rapid agricultural growth, fewer people needed
to work in the farms to produce for everybody else. This released workers from
agriculture and enabled them to find remunerative and high-quality employment
opportunities in industry.
75
In the Philippines, agriculture has yet to achieve and sustain a level of growth
that will make such transformation happen. Nonetheless, there are encouraging
signs of economic restructuring. It is thus important to seize growth
opportunities for the A&F sector especially at a time when business confidence is
high.
Contribution to rapid and sustained growth

Growth in the sectors gross value added (GVA)
From 2011 to 2012, the A&F sector accounted for about 11.2 percent of the total
gross domestic product (GDP) on average. W hile posting positive annual growth
of
2.4 percent and 2.8 percent in 2011 and 2012, respectively, the sectors
performance remained below the PDP target of 4.3 to 5.3 percent annual growth
(Table 4.1).
Particulars
Annual
Accomplishments
growth
2012 2011H1
Table 4.1. Agriculture and fisheries 2011
(A&F) sectors
target
2012
2013
contribution to the economy, 2010-H1 2013
2011-2012,
Averag
in %
e
GVA in A&F* (in
million PhP and
growth (in%)
Crops
4.3-5.3
676,075
(2.4%)
695,100
(2.8%)
685,587
(2.6%)
336,591
(1.3%)
4.9-5.9
333,255
(5%)
92,225
(2%)
71,262
(4.4%)
130,529
(-4.3%)
11.4
347,456
(4.3%)
93,260
(1.1%)
74,536
(4.6%)
130,032
(-0.4%)
11
340,355
(4.6%)
92,758
(1.5%)
72,899
(4.5%)
130,280
(-2.3%)
11.2
170,810
(-0.5%)
45,722
(2.1%)
36,835
(4.2%)
60,148
(4.6%)
10.2
Livestock
1.6-2.6
Poultry
4.2-5.2
Fisheries
4.5-5.5
% Share to
GDP
Note: Computed using National Statistical Coordination Boards (NSCB) National Income
Accounts; includes only agriculture, hunting, and fishing and excludes forestry
76
Subsector contribution to GVA

Crops (palay, corn, coconut including copra, sugarcane, banana, mango,
pineapple, coffee, cassava, rubber, other crops), livestock and poultry remain
the growth drivers, accounting for about 74 percent of the sector GVA. In
particular, the crop subsector grew by 5 percent and 4.3 percent in 2011 and
2012, respectively. Growth was mainly propped up by strong performances of
palay and corn, which contribute about 20 percent to the GVA of the crop
subsector. In 2012, palay production expanded by 2.1 percentage points (ppts)
from 5.9 percent in 2011 to 8.0 percent in 2012. This enabled the country to
achieve a self-sufficiency ratio of 95 percent. This expansion was facilitated by
the development of new irrigation areas, and restoration and rehabilitation53
of existing irrigation systems.
Among the high-value crops, coconut and banana posted the highest
contribution of around 19 percent to crop subsector GVA. In 2012,
coconut production increased by 4.2 percent not only because of the favorable
weather conditions but also because of the thorough implementation of the salt
fertilization program of the Philippine Coconut Authority (PCA) in most of the
major coconut-producing provinces of the country. Similarly, the 0.7percent growth in production of banana in 2012 was also due to the good
weather that enabled larger areas to be harvested and the addition of more
bearing hills especially in Northern Mindanao, MIMAROPA, Western
Visayas, Central Visayas and Autonomous Region in Muslim Mindanao
(ARMM).
The livestock subsector grew by 2.0 percent in 2011, following the
increase in farm gate prices because of higher demand for beef and pork.
However, its growth slowed down to 1.1 percent in 2012, due to the shortage of
both imported and local inputs, primarily animal feeds, which affected
production. Meanwhile, the poultry subsector continued to post strong gains as
it recorded an average annual growth rate of 4.5 percent over the three-year
period. This is well above the lower-end target of 4.2 percent annual poultry
subsector growth.
The fisheries subsector finally recovered in the first semester of 2013, posting
a record-high growth of 4.6 percent from a dismal performance of -4.3 percent
and
-0.4 percent for the full year 2011 and 2012, respectively. This upturn
resulted from the positive performance of aquaculture, particularly tilapia
and milkfish, which continue to contribute about 44 percent of total
fisheries output. The capture fishing also exhibited strong performance because
of the increased catch of skipjack, round scad, and yellow fin tuna, after the
tuna ban in the Pacific Sea was lifted and marine resources were enhanced
following the close fishing season policy of the government in 2011 and 2012.
Regional contribution to GVA

Among the regions, the top contributors to the sector GVA in 2012 are
Central Luzon (14%), CALABARZON (10%), Western Visayas (9.4%),
Northern
53
Rehabilitation works improve the efficiency of existing irrigation systems. While rehabilitation projects do
77
Mindanao (8.5%) and SOCCSKSARGEN (7.4%). Figure 4.2 shows that

Central Luzon (Region III) far exceeds the other regions in terms of land
productivity. Bicol (Region V ) and Zamboanga (Region IX) have relatively
large agricultural areas but are shown to be among those with the lowest land
productivity. Enhancing productivity levels in these areas to reach the levels
achieved by Regions XI and XII could have huge impact on agricultural incomes
and GVA.
Figure 4.2. Average regional share to agricultural gross value added

(GVA), 2011-2012, and agricultural land share to total agricultural land
16.00
area
14.00
III
Share in Agricultural
GVA
12.00
10.00
IVA
8.00
I
6.00
II
VIIIV
ARMM
4.00
2.00
NCR
VI
X
XII
XI
VIII IX
XIII
B
CAR
0.00
0.00
2.00
4.00
6.00
8.00
10.00
Share in Agricultural Land

Source of data: Bureau of Agricultural Statistics (BAS), NSCB
Exports performance
For 2011 to 2012, the A&F sector generated US$5.195 billion in exports
revenue, representing an average annual growth rate of 12 percent. Top
agriculture exports include coco oil, banana, tuna, pineapple, desiccated coconut,
seaweeds, tobacco and centrifugal sugar. The same mix of commodities has
remained for the past several decades. However, none of them could be
considered niche export commodity of the country and they could lose
their market to more competitive suppliers. Hence, the boom-and-bust
performance of the export sector has paralleled the rise and fall of world
prices of the commodities. In 2011, for example, the sector posted a 31.4percent increase in export revenue due to the relatively high world prices,
particularly sugar that managed to increase exports earnings by almost ten times
the 2010 level. In 2012, however, export revenue contracted by 7.1 percent as a
result of the decline in world market prices of coco oil, copra, and sugar. The
countrys sugar exports, in particular, dropped given the stiff competition posed
by Thailands growing sugar industry. On the other hand, tuna exports bounced
back from a 12.5-percent contraction in 2011 to a 44.7-percent increase in 2012.
The continued trade facilitation activities of the government, through
the Department of Agriculture (DA), to increase market access alongside the
sustained Avian Influenza (AI)- and foot and mouth disease (FMD)-free
livestock and poultry sectors are seen to support exports growth.
78
Table 4.2. Value and growth of top agricultural exports, 20112013

Value (in
Commodities
2011
Average
2013
US$ M)
2012 H1
Coco oil
1,016.10
538.31
1,425.50
Banana, fresh
Tuna
4 71.00
Pineapple &
products
314.60
Desiccated coco
Seaweeds &
carrageenan
Tobacco
manufactured
3 4 1.30
286. 80
Centrifugal sugar
Top
agricultural
exports
Total
210.90
agricultural
exports
Source:
200.00
BAS
351.50
Value (11-12)
Share
455.10
339.35
10.76
184.20
123.60
157.50
155.00
108.80
148.35
12.6
1
47.51
(28.72)
(8.06)
37.30
42.41
(12.47)
44.66
16.10
4 0. 68
21.56
31.12
87.94
28.32
36.77
(31.31
)
(12.66)
24.07
(21.25)
1,087.50
(69.05)
1.4
1
509.23
34.15
(11.70)
11.23
31.38
(7.14)
12.12
23.50
558.85
197.00
95.63
1,220.80
646.70
453.98
4 14.90
196.35
Growth (in
%)
1011Avera
11
12
ge
384.85
7.41
378.10
7.28
2 4 1.90
4.66
12.06
197.55
3.80
Contribution to employment generation

3,601.60
3,180.30 2,242.27
178.75
The sector employs about 32.0 percent of the countrys total labor force
but accounts for 43 percent of the total underemployed.
3.44Based on the first
5,003.50
three rounds of the 5,388.20
Labor Force
Survey 3,229.91
in 2013, the number of people engaged
in the sector has declined by 2.7 percent compared to the
previous year, much
230.15
faster than originally targeted and certainly much faster than can be
absorbed in industry and services. The reduction in4.43
employment may be
explained by extreme weather conditions that leave farmers who rely on a
3,390.95by typhoons or
single crop unemployed when their farms are destroyed
65.27
drought. Inadequate irrigation, among others, constrains the sectors flexibility
to shift to other crops when a primary crop fails. The employment problem in
5,195.85
the fisheries sector, on the other hand, can be traced to the
fishing ban imposed,
100.00
as the resource had to be allowed time to regenerate.
79
Table 4.3. Agriculture and fisheries (A&F) sectors

contribution to employment, 2011-H12013
Particulars
2011
2012 H1
2013
Average
(2011-H1
2013)
Employment (in thousand)

and growth (in %)
12,267
(2.6)
12,093
(-1.4)
11,693
(-4.9)
12,018
(-1.2)
Share to total employment (in

%)
33.0
32.2
30.9
32.0
Underemployment
(in thousand)
and growth (in %)
3,111
(1.6)
3,285
(4.0)
3,142
(1.2)
3,163
(2.3)
Share to total
underemployment (in %)
43.4
43.1
41.4
42.6
* Total employed and underemployed in A&F includes hunting and forestry.

Source: National Statistics Office, Annual Labor and Employment Estimates for Various
Years and Labor Force Survey
Meanwhile, the number of underemployed agriculture workers increased

by about 2.3 percent, on average. This can be attributed to the seasonal
nature of agriculture work, low wage rates and limited opportunities for
livelihood diversification. For 2011 to 2013, the basic pay in the sector
amounted to an average of PhP165 per day, about PhP200 less compared to
the basic pay of non- agriculture workers (Table 4.4). This suggests the need
to generate agri-related industries to absorb the underemployed especially
during the off-cropping seasons and calls for more intensified private sector
participation to facilitate the effective and efficient establishment of such
linkages. The additional livelihood opportunities, especially those that draw
inputs from agricultural produce, could lead to increases in rural incomes from
higher wages earned and from increases in the production of raw inputs.
Table 4.4. Average daily basic pay of wage and salary workers by
major industry group, 2011-Q1 2013 (in PhP)
Major Industry Group
2011
2012 Q1
Averag
2013
e
All industries
Agricultural
Agriculture, hunting and forestry
Fishing
Non-agricultural
317.44
158.20
156.81
178.43
349.01
333.82
166.74
165.27
191.68
366.90
345.99
169.06
167.10
202.08
384.04
Source: Bureau of Labor and Employment Statistics (BLES), 2012 Yearbook of

Labor Statistics and 2013 Current Labor Statistics
80
322.42
164.67
163.06
189.40
366.65
Comparison with ASEAN countries

The country remains the laggard in agricultural productivity when compared to
its neighbors in the Association of Southeast Asian Nations (ASEAN).
Table 4.5. Average value and share of international trade of
agricultural products, 2010-2012
Count
ry
Indonesia
Malaysia
Philippines
Thailand
Export
AveraImport
Avera
Avera
ge
ge
ge
valu
share
valu
e
* (%)
e
(in 4 3,041
(in
0.25
19,654
millio
millio
33,906
0.19
19,544
n
n
4,874
0.03
7,030
US$)
US$)
Vietnam
0.12
4 1,589
0.24
21,370
Avera
ge
share
* (%)
0.11
Average
trade
balance
(in million
US$)
23,387
0.11
14,362
0.0 4
(2,156)
14,67 5
0.08
26,914
12,385
0.07
8, 984
Source: World Trade Organization (WTO)

*Share to total merchandise trade
Productivity of traditional crops such as rice (3.7 mt/ha), corn (2.7 mt/ha),
coffee (1.5 mt/ha) and coconut (4.35 mt/ha) is low compared to other
countries in the region (Table 4.6). Average yield levels of banana and
sugarcane are on the high side but could still be further improved to be at least
on par with Indonesia for banana and Thailand for sugarcane. Banana is one of
the Philippines export winners with markets in Japan, Korea, China and the
Middle East. Its competitive stance, however, should be strengthened to further
improve its market potential. This goes the same for other agricultural
commodities of the country.
Table 4.6. Yield comparison of major food commodities in selected

ASEAN countries, 2010-2012 (in mt/ha)
Average (2010Count
2012)
Ric Corn Sugarcane
Banan Coffe
ry
**
e5.04
a* 57.85 e * 0.51
Indonesia
4.63 Coconut
Malaysia
57.93
3.84
5.42
Philippines
3.71
2.72
Thailand
2.97
4.31
Vietnam
5.50
4.23
Philippine Rank
2
5.97
6 1.27
5.20 2
7 1.86
21.36
1.59
40.61
1.52
23.90
1.67
30.27
4.51
4
*2010-2011 only
4.35
**Average yield for both yellow and white corn
Source: Food and Agricultural Organization Corporate
Statistical Database
73.60
(FAOSTAT)
5.19
62.07
8.79
81
Contribution to food security and poverty reduction

The relatively high production growth rates in the crop subsector during the
period should have led to improvements in terms of the countrys food security
agenda. But this growth performance was not high enough to make a dent in
the goal of reducing poverty in the sector. Official data on poverty for 2009
indicated that poverty incidence in the A&F sector stands at 36.7 percent (1.7
million) among farmers and 41.4 percent (346,345) among fisherfolk. For 2012,
the NSCB reported that subsistence incidence among families remained at 7.5
percent.
Challenges
The average share of

agricult ural and agriproduction loans granted
against total loans granted
by banks remained low.
The A&F sector will need to overcome numerous challenges to be able to

realize its potentials. Among these are (a) low productivity and production;
(b) slow market growth and poor linkage to value-adding activities; (c) weak
institutions and policies; (d) weak governance and resource degradation; and (e)
vulnerability to climate risks and disasters.
Low productivity and production

O vercoming low productivity levels is the most challenging concern that
hinders the development of the A&F sector. Several factors impede the
achievement of higher yield levels.
Limited access to credit and insurance

Inadequacy of working capital limits the access of agricultural workers to
modern technologies, farm equipment, post-harvest facilities, and new plant
varieties, among others. Reports published by the Bangko Sentral ng Pilipinas
(BSP) show that the share of banks loans granted to the sector remains low,
representing only about 20 percent. W hile the Agro-industry Modernization
Credit and Financing Program (AMCFP) significantly increased the release
loans through cooperative rural banks from PhP446 million in 2011 to PhP1.12
billion in 2012, or by 151 percent, the average share of agricultural and agriproduction loans granted against total loans granted by banks remained low at
2.0 percent in 2011 and 0.7 percent in 2012, respectively.
The same factors have contributed to the limited access and availability of
credit to the A&F sector. Among the reasons why banks hesitate to offer loans
to small farmers and fisherfolk are: (a) lack of viable/profitable agriculture
projects; (b) poor repayment capacity or cash flow of borrowers; (c) high risk of
lending to agriculture relative to non-agriculture; (d) high cost of administering
small loans; and (e) lack of borrowing experience or poor credit track record.
On the other hand, small farmers cite the following reasons for their inability
to access credit from banks:
(a) lack of knowledge in accessing formal/bank loans; (b) stringent
documentary requirements and cumbersome procedure; (c) lack
of/inadequate collateral; and
(d) high cost of borrowing/interest rate (Agricultural Credit Policy Council
or ACPC, 2013).
82
The expansion of insurance for the sector, on the other hand, has been
constrained by the Philippine Crop Insurance Corporations (PCIC) weak
capitalization. PCIC was only able to cover about 0.45 percent and 0.55
percent of the total climate-related damages incurred by the sector in 2011 and
2012, respectively. The countrys vulnerability to inclement weather further
aggravates the case as it keeps profit from reaching a sufficient level that would
allow it to recover the outlays from insurance coverage.
Low adoption and application of technology

Despite the availability of science and technology packages and products
to Filipino farmers and fisherfolk, the rate of adoption is low due to: (a) weak
links among technology producers, extension workers, and farmers/fisherfolk;
(b) lack of media/public awareness on the benefits of the technologies; (c)
financial or capacity constraints of intended users; and (d) inadequate local
government unit (LGU) commitment in the provision of extension service.
Incomplete land ownership transfer under CARPER

Growth in productivity can be enhanced if land is owned by farmers who will
have the freedom to make their own production decisions, such as technology
adoption that leads to higher efficiency. This highlights the need to fast-track
asset reform program in the country to provide incentive to farmers and other
stakeholders to invest in rural areas (Habito and Briones, 2005).
Despite the availabilit y of

science and technology
packages and products
to Filipino farmers and
fisherfolk, the rate of
adoption is low.
For 2011-2012, the Departments of Agrarian Reform (DAR) and Environment

and Natural Resources (DENR) have acquired and distributed 422,743
hectares of land, or about 66 percent of their combined targets (Table
4.7). These accomplishments by the Comprehensive Agrarian Reform
Program-Extension with Reforms (CARPER) have benefitted 345,185 agrarian
reform beneficiaries (ARBs). To strengthen the tenurial security of ARBs,
minimize boundary disputes, and facilitate the payment of taxes and individual
amortization, DAR has likewise subdivided and re-documented collective
Certificates of Land O wnership Awards (CLOAs) into individual titles covering
77,353 hectares of agricultural lands, or
23.35 percent of the PDP target for the period.
83
Table 4.7. CARPER targets and accomplishments, 20112012

Indicator
PDP target
Actual
accomplishment
2011
2012
2011
2012
Land distributed under CARP (in hectares)
Land distributed
by DAR
Land distributed
by DENR
200,000
240,247
120,284
115,099
100,000
100,000
92,146
95,214
Total
300,000
340,247
212,430
210,313
CARP beneficiaries
Number of ARBs (DARassisted)
117,647
141,322
63,755
48,806
Number of ARBs (DENRassisted)

Total number of ARBs
129,747
129,747
115,631
116,993
247,394
217,069
179,386
165,799
Source: DAR and

DENR
In terms of agrarian justice delivery, DAR has resolved 94,128 cases or

96 percent of its target on Agrarian Legal Implementation (ALI) covering
relevant land acquisition and distribution (LAD) cases such as protest
against CARP coverage, identification of beneficiaries, and issuance and
subdivision of CLOAs, among others.
DAR interventions to strengthen capacities of ARBs and ARB organizations
for agriculture production translated into economic empowerment of the
ARBs. In particular, the average yields in irrigated rice (4.57 mt/ha) and corn
lands (3.89 mt/ha) in agrarian reform communities (ARCs) are higher by
0.43 mt/ha and
1.29 mt/ha than the national average, respectively.54 In terms of 2011
income, the average ARB annual household income stands at
PhP159,614.00,55 or PhP58,568.00 higher than the rural poverty threshold for a
family of six, which is about PhP101,046.00.56
Slow market growth and poor linkage to value-adding activities

Another hurdle that the sector has to overcome is the inability of the market
to develop at a faster and more dynamic pace.The following issues have been
identified to contribute to the challenge:
Department of Agrarian Reform (2012). ARC Level of Development Assessment (ALDA) Report for CY
2011. Quezon City: Department of Agrarian Reform, Planning Service.
55
ALDA Report Cy 2011
56
National Statistical Coordination Board-Philippine Poverty Statistics.
54
84
Limited diversification of production and products

The composition of the top performing agricultural commodities has been
constant for the past years. Rice, corn and coconut continue to have the
largest share in terms of land area. Similarly, the mix of commodities in the list
of top agricultural exports has not changed throughout the years. The
production portfolio needs to be diversified primarily: (a) to manage and reduce
the impact of shocks especially those brought about by weather disturbances
and volatility of prices both in the domestic as well as in the international
markets; and (b) to promote other commodities with high linkage potential to
other sectors, primarily the industrial sector. The latter requires strengthening
the value-chain between agriculture and industry sectors to create quality jobs
for the underemployed and to produce quality processed products for both the
domestic and international markets.
Limited connectivity (farm-to-market roads or FMRs, interisland shipping)

One of the most critical binding constraints that hamper agricultural
productivity growth and market expansion is the absence or inadequacy of an
efficient logistics system, particularly for transport. Its direct outcomes
include high transaction costs of doing business in rural areas that prevent
farmers and fisherfolk from maximizing potential business opportunities in
rapidly growing and urban areas, including foreign markets for export
commodities. Comparatively, domestic prices of products are higher than the
landed cost of their equivalent or, in some cases, better-quality imports.
Domestic retail price of rice (PhP34.7/kg versus PhP25.9/ kg) and refined
sugar (PhP59/kg vs. PhP50/kg) in 2011 was about 34 percent and 16
percent higher, respectively, compared with their imported counterparts. The
connectivity challenge is more formidable because of the archipelagic
characteristic of the Philippines, where interisland transportation support
facilities are a prerequisite in catalyzing the flow of goods from the
production area, up to the point of final sale. Effects of climate change add to
the threats of limited connectivity, given the countrys high vulnerability to
inclement weather.
Inefficient
and inadequate post-harvest and other marketing facilities
One of the most critical

binding constraints that
hamper agricultural
productivit y grow th and
market expansion is the
absence or inadequacy
of an efficient logistics
system, particularly for
transport .
Huge post-harvest losses result from inefficient or absence of post-harvest and

other marketing facilities, ineffective logistics services, and post-harvest
mishandling, all of which translate to reduction in farmer incomes. In 2011,
about 16.47 percent of total rice production was lost during post-harvest
operations. Similarly, there were about 5- to 48-percent production losses in
fruits, 15 to 45 percent in vegetables, and 27 percent in fisheries in the same
period.
Weak capacity of farmers and fisherfolk for entrepreneurship

One aspect lacking in the Filipino farmers and fisherfolk is their capacity to
maximize additional business opportunities and value-adding activities
beyond farming. Weak entrepreneurial skills further hinder agricultural
producers from utilizing market information that will help them in improving
their competitiveness, as well as in identifying the type of demand-driven
products that are more profitable.
85
Weak institutions and policies

The presence of an enabling environment is important in effecting the
desired economic growth and development from the programs, plans and
policies being implemented by the government, given that it is also key in
managing negative externalities. Critical to this is the capability and capacity of
concerned institutions in formulating and executing appropriate activities and
policy instruments that will encourage collective action from all stakeholders,
thereby promoting and effecting inclusive growth.
Smuggling
Though there are no current studies on the effects of smuggling in the
economy, it is clear that the entry of illegal and undocumented goods in the
country results in a wide price disparity that disadvantages local producers.
Further, smuggled agricultural commodities do not undergo the necessary
quality and safety procedures. This poses health and security issues and
even introduces foreign- borne pests and diseases.
Local government funding

allocation is minimal and
is still largely dependent
on the support from the
national government ,
through the Department
of Agriculture.
Weak agriculture extension service

The different geographic and environmental attributes of the agriculture
and fisheries production areas in the country stress the need for local-level
extension services. The devolution of the agriculture sector has lodged the
leadership of such responsibility to the LGUs. However, it has been noted that
LGU funding allocation is minimal and is still largely dependent on the
support from the national government, through DA. Added to this is the
inadequate manpower and technical capacities of technicians, which contribute
to the governments inability to effectively respond to and address the needs of
sectors stakeholders.
Inadequate support for R&D

The national budgetary support for R&D and extension, education and
training services for 2011 to 2013 account for an average of only 9 and 13
percent of the total agriculture budget, respectively. The continued
underinvestment in these public goods should be reversed, as these investments
are expected to generate and facilitate subsequent adoption of technologies that
would help improve productivity and raise incomes.
Overlapping functions and contradicting policies

There is a need to rationalize government functions and policies to
establish a strategic approach in addressing the needs of stakeholders and
in creating an enabling environment for their participation.At present,there is
an apparent overlap of functions of DA and DAR, particularly in the provision
of support services to farmers and fisherfolk, which requires a systematic and
more unified approach to enhance its efficiency. Such is also the case between
the DA and DENR in terms of fisheries management in marine-protected areas,
as well as among DAR, DENR, Land Registration Authority (LRA) and
National Commission on Indigenous Peoples (NCIP) in terms of land titling
and distribution.
86
On the other hand, the National Food Authority (NFA) interventions

currently cover both the protection of rice farmers and consumer welfare, two
dimensions that require different and potentially conflicting sets of policies.
As such, there is a need to rationalize the role of NFA, by way of
resolving and settling its appropriate mandate.
Resource degradation due to weak enforcement of regulations

Natural and man-made hazards to the environment, natural resources
and biodiversity have dampened economic services to support higher
productivity growth. Despite recognition of their negative consequences,
continued use of unsustainable production practices (e.g. extensive use of
chemical inputs, expansion of grazing lands, slash and burn practices, and
deforestation especially in watershed areas, overfishing, etc.) have continued.
Numerous laws and regulations have been formulated and put into force
supposedly to arrest and halt these destructive farming and fishing practices.
The governance of their implementation has been weak due to lack of capable
manpower, financial capacities to purchase the needed equipment for policing
and patrolling, and most critical of all is the lack of political will to provide teeth
to the laws and regulations.
Vulnerability to climate risks and disasters and inadequate

climate risk-resilient technologies
Changing rainfall patterns, rising temperatures, increasing frequency and

intensity of typhoons and dry spells, and sea level rise are manifestations of
climate change. These changes will spell a difference in terms of cropping
calendars, unpredictability of yields, pest pressures, crop losses, livestock and
fisheries production, and damage to existing infrastructure. Production losses
from climate-related disasters (i.e. typhoons, tropical storms and flooding)
increased to PhP33.5 billion in 2012, from PhP25.2 billion in 2011 and
PhP13.8 billion in 2010. Interventions to improve the sectors resiliency
against the negative impact of extreme weather events and climate change
continue to be prioritized. The scenarios from the Department of Science
and TechnologyPhilippine Atmospheric, Geophysical and Astronomical
Services Administration (DOST-PAGASA) for 2020 and 2050 project
widespread warming in most parts of the country. Longer hot days and
shorter cold days are expected. The number of days with maximum
temperature of more than 35oC is expected to increase in all parts of the
country. Projected seasonal mean temperatures in the Philippines are expected
to rise by about 0.9 to 1.1oC for 2020 and 1.8 to 2.2oC by 2050. Extreme
rainfall is also projected to increase in Luzon and the Visayas while a
decreasing trend is projected in Mindanao (MDGF-1656, 2011).
About 27.3 percent of the total land area in the country (8.34 million hectares)
is considered to be vulnerable to drought, alternating with floods and typhoons
on an annual basis. This is further magnified by the insufficient climate riskresilient technologies and subsequent adoption of related innovations that may
help palliate the effects of inclement weather and other climate-related disasters.
Production losses from

climate-related disasters
(i.e. t yphoons, tropical
storms and flooding)
increased to PhP33.5
billion in 2 0 12 , from
PhP25.2 billion in 20 11
and PhP13.8 billion in
20 10 .
Competitive and sustainable agriculture and fisheries sector
87
III. UPDATED TARGETS

A summary of the updated targets in the A&F sector is presented in Table
4.8, according to sector, subsector and intermediate outcomes.
Table 4.8. Revalidated results matrix (RM) on competitive and sustainable
agriculture and fisheries (A&F) sector.
Indicators
Baseli
ne
(2012
)
End-ofPlan
target
(2016)
Assumptions and
risks
Sector outcome: Competitive and sustainable A&F sector achieved

695,100
Budgetary allocations and

793,794-824,958reforms in the sector are
347,456
408,429-424,346
A&F GVA increased (in million PhP)

Crops
Livestock
Poultry
93,260
74,536
98,495-104,147
87,869-91,291
Fisheries
130,032
140,881-146,349
5,004
7,194-7,460
Value of agricultural exports

increased (in million US$)
Labor productivity in A&F sector

57,797
62,561-70,253
Yield of major commodities increased (in metric ton per hectare)
increased (in PhP)
Palay 3.84
Sector outcome A: Productivity in A&F sector increased
White corn
Yellow corn
Banana
Coconut (copra)
Pineapple
88
1.65
4.09
implemented
4.53
Farmers, fisherfolk
and their oganizations
adopt sustainable,
productivity-
2.08
enhancing technologies and
5.16
innovations
20.36
24.57
0.88
1.00
41.06
45.66
Mango
4.07
5.06
Sugarcane
61.34
71.20
Cassava
10.23
20.23
Coffee
0.74
0.88
Cacao
0.52
0.70
Rubber
2.52
3.62
Indicators
Baseli
ne
(2012
)
End-ofPlan
target
(2016)
Assumpti
ons and
risks
Farmers, fisherfolk
and their oganizations
adopt sustainable,
productivity-enhancing
Level of post-harvest losses reduced (in % )

Rice
16.5 (2010)
Corn
14.1
7.2 (2009)
6.9
Fisheries
25.0 (2008)
18.0
technologies and
Banana
16.0 (2009)
13.0
innovations
Mango
30.0 (2009)
24.0
Rice self-sufficiency ratio increased (in %)
95.0
100.0
Intermediate outcome of subsector outcome A: Land tenure security improved

Total land distribution under CARP (in hectares)
DAR
115,099
818,390
DENR
95,214 312,188 (2015)

Proportion of industrial crops to total crop production increased (in % )
Abaca
0.1
Subdivided
and re-documented
collective CLOAs into
individual titles (in hectares)
38,866
Proportion of farmer/fisherfolk borrowers

57.0 (2008)
obtaining
loans from formal sources increased (in %)
Sector outcome B: Forward linkage to the I&S sectors increased
740,668
0.4
85.0
Farmers, fisherfolk
and their organizations
adopt sustainable,
productivity-enhancing
Cacao
0.1
2.0
Coffee
0.1
2.0
technologies and
Oil palm
0.6
3.6
innovations
Rubber
0.5
2.5
Sugarcane
Tobacco
30.5
0.1
Volume of industrial crops production increased (in 000 metric tons)

Abaca
68.5
Number of farmers with risk insurance increased
Cacao
311,388
4.8
38.0
0.5
70.3
2,035,864
5.0
Coffee
88.9
92.6
Oil palm
531.3
654.3
89

Taking into account the challenges identified in the previous section, the
PDP strategies for the A&F sector will aim to (a) increase productivity in the
sector, (b) increase forward linkage with the I&S sectors, and (c) increase sector
resilience to risks, including climate change.
Figure 4.3. Strategic framework on competitive and sustainable
agriculture and fisheries (A&F) sector
Competitive and
sustainable A&F sector
achieved
Sector outcome
Subsector outcomes
Productivity
in A&F
sector
increased
1. Increase investments
in research, development
and extension (RD&E)
to generate appropriate
technologies and
innovations to improve
farm productivity.
Strategies
2. Strengthen and
build the capacities of
farmers and fisherfolk
through the provision
of extension and
conduct of trainings on
appropriate technologies
and innovations on
production, farming
systems and fishery
practices.
3. Improve rural
infrastructure to enhance
connectivity and
integration of production
areas to markets
4. Fast-track the
completion of asset
reform through the
distribution of land titles
5. Improve access to
credit and other financial
packages
Forward linkage
to the I&S
sectors increased
Sector
resilience to
climate change
risk increased
6.Promote the production of high

value commodities with comparative
advantage, including industrial crops;
7. Expand existing markets, explore
new markets, and link farmers and
fisherfolk to these value chains and
commodity/industry clusters;
8.Strengthen and build the capacities
of stakeholders through extension
and training (value-adding,
agribusiness development, value-chain
management)
9.Strengthen and build the capacities of
stakeholders by providing extension
services and conducting training on
value-adding agribusiness development
and value-chain management (see also
Chapter: 6 Social development);
14.Encourage
diversification of
production and livelihood
options for A&F
households.
15.Reduce the
degradation and improve
the quality of the sectors
environmental resources
16.Increase the resilience
of agriculture
communities and
strengthen their
capacities to respond
effectively to climate risks
and natural hazards
10.Increase investments in RD&E on

agri-processing, product development
of A&F products, agri-tourism, and
agro-forestry;
11.Provide timely market information to
farmers, fishfolk, farmers and fisherfolk
groups, and small and medium
enterprises (SMEs) through the use of
ICT and other appropriate technologies;
12.Support the transformation of
farmers and fisherfolk groups and
cooperatives into formal and viable
SMEs; and
13.Promote proper eco-labelling and
enhance product standards to ensure
the safety and quality of products.
17.Enhance convergence among govenment agencies
Crosscutting
strategies
18.Pursue public-private parnerships (PPPs) especially for infrastructure and value chain
development and management
19. Pursue the formulation of national and local A&F commodity roadmaps
20. Conduct and aggresive anti-smuggling campain
21. Review/update critical policy measures
22. Promote the passage and enhancement of key legislative actions
90
Sector outcome A: Productivity in A&F sector increased

For the remaining years of the Plan period, interventions will be directed
towards increasing the productivity of key commodities such as palay, corn,
sugarcane, pineapple, coconut, coffee, banana, mango, livestock and poultry
and fisheries, among others. The targeted level of increase in productivity is
19 percent from 2012 to 2016. In particular, the government is committed to
ensure enough supply of rice for the country. The DA has launched the Food
Staples Sufficiency Program (FSSP), which aims to provide sufficient, locallysourced food staples to every Filipino. Specifically, it intends to reach 100percent rice self-sufficiency by 2014 and beyond primarily through increasing
the areas suitable to palay production. It likewise calls for the reduction of the
countrys dependence on imported rice and requires the NFA to increase its
annual local procurement to about 10 percent of annual domestic production.
Strategy 1: Increase investments in research, development and

extension (RD&E) to generate appropriate technologies and
innovations to improve farm productivity:
Update databases and information systems for the formulation of a
reliable and responsive national RD&E agenda;
Encourage partnership between and among higher education
institutions, LGUs, private and business sector on RD&E and training
initiatives;
Rationalize and strengthen the provision of extension services
through improved complementation of national, local and private sector
entities; and
Encourage the participation of farmers, fisherfolk and their organizations
in research and promotion activities;
Strategy 2: Strengthen and build the capacities of farmers and

fisherfolk through the provision of extension and conduct of trainings
on appropriate technologies and innovations on production, farming
systems and fishery practices
Strategy 3: Improve rural infrastructure to enhance connectivity
and integration of production areas to markets
There are Category 1 provinces that have lagged behind because of
poor/slow development of infrastructure support. Faster improvement of
the following facilities will open their further growth and development:
Provide irrigation services and facilities; maintain existing systems and
establish small-scale irrigation systems; enhance cost-sharing/counterpart
mechanisms for financing with LGUs;
Establish roads, bridges and other logistics-related infrastructure to
link production areas to markets;
91
Increase the effectiveness and efficiency of the rural infrastructure system

such as FMRs, bridges, post-harvest, information and communications
technology (ICT) systems and all other infrastructure (see also Chapter 10:
Accelerating infrastructure development);
Enhance the technical design of irrigation, drainage systems and
facilities, FMRs, bridges and other infrastructure to take into account
climate risks and extreme climate events; and
Establish post-harvest facilities in strategic agricultural production areas.
Strategy 4: Fast-track the completion of asset reform through

the distribution of land titles
Alongside the intensified

efforts to complete land
acquisition and distribution,
the government will
ensure continued
delivery of support
services to agrarian
reform beneficiaries and
communities.
LAD activities have entered a more difficult phase. In particular, huge

portions of the remaining 792,639 hectares of LAD balances are private
agricultural lands that have to be acquired through compulsory acquisition. To
help overcome this more difficult situation which is exacerbated by the poor
land administration and management system now in place, DAR has
instituted several policy and operational measures to speed up completion
of land distribution by 2016 and ensure post-LAD tenurial stability. These
include: (a) streamlining of LAD processes; (b) accurate assessment of actual
magnitude and status of LAD balance and corresponding issues; and (c)
intensification of the monitoring of performance of provincial/municipal agrarian
reform offices.
Alongside the intensified efforts to complete LAD, the government will
ensure continued delivery of support services to ARBs and ARCs,
including: (a) strengthening the organizational capacity of ARBs and ARB
organizations
to develop and manage agri-enterprises; (b) scaling up
microenterprises into formal and viable micro-, small and medium enterprises
(MSMEs) through the clustering of ARCs and establishing networks of
enterprises; and (c) establishing physical infrastructure in strategic ARCs and
clusters.
Investments along these lines are deemed imperative towards
providing more development opportunities in CARP- awarded lands, especially
that about 21 percent and 11 percent of the total ARCs are located in Category
1 and 2 provinces, respectively.57
An example of such intervention is the newly approved Convergence on
Value- Chain Enhancement for Rural Growth & Empowerment
(CONVERGE) Project. It aims to reduce incidence of poverty through crop
diversification and increased farm incomes of 135,000 agricultural households
in 91 ARCs, 11 ARC clusters, 50 municipalities and 515 barangays in regions
IX, X and XIII in Mindanao. These three target regions are among the six
poorest regions of the country and have majority of the provinces included
under Categories 1 and 2.
Computed using DAR data on number of ARCs confirmed by region, as of June

2013
57
92
Another example is the proposed Gearing Rural Organizations for Wealth

Creation Towards Household Income Improvement (GROW TH) Project.
The five-year project aims to significantly raise household incomes,
productivity and the quality of life of ARBs and small-holder farmers in
the targeted 14 ARC clusters involving 102 ARCs located in 14 provinces,
including Pangasinan, Negros Occidental, Camarines Sur, Leyte, Iloilo, Eastern
Samar and Masbate, and spread in 10 regions. The provinces, which are selected
based on the criteria of high provincial poverty incidence and high percentage of
poorest municipalities within the province, are also part of Category 1 and 2.
Strategy 5: Improve access to credit and other financial packages

Strengthen the Agriculture and Fisheries Modernization Act (AFMA)mandated AMCFP;
Implement capacity building programs to improve the credit-worthiness
of farmers, fisherfolk and their organizations;
Develop and promote innovative financing schemes and riskreducing mechanisms (i.e., guarantee and insurance) to encourage more
banks and other lending conduits (i.e., cooperatives, government agencies,
LGUs) to lend to farmers and fisherfolk; and
Intensify information
insurance program.
dissemination
of
credit,
guarantee
and
Sector outcome B: Forward linkage with the I&S sectors

increased
In order to increase the forward linkage of agriculture to the I&S sectors,
the volume and productivity of industrial crops will be increased for abaca,
cacao, coffee, oil palm, rubber, sugarcane and tobacco. Notably, sugarcane
production will be increased by 31 ppts from 26.4 million metric tons to 34.7
million metric tons by the end of the Plan period. In addition, cacao and
coffee production will be increased by 4 percent and 23 percent from 2012 levels
to 2016, respectively.
The following strategies will be implemented to promote value-adding of
A&F products and agribusiness development among small-holder farmers,
including ARBs and indigenous peoples:
Strategy 6: Promote the production of high value commodities

with comparative advantage, including industrial crops
Strategy 7: Expand existing markets, explore new markets, and
link farmers and fisherfolk to these value chains and
commodity/industry clusters
93
Strategy 8: Strengthen and build the capacities of stakeholders by

providing extension services and conducting training on valueadding, agribusiness development and value-chain management
(See also Chapter 6: Social development for similar strategies.)
Strategy 9: Increase investments in RD&E on agri-processing,
product development of A&F products, agri-tourism, and agroforestry
Strategy 10: Provide timely market information to farmers, fisherfolk,
farmers and fisherfolk groups, and small and medium enterprises
(SMEs) through the use of ICT and other appropriate technologies
Strategy 11: Support the transformation of farmers and fisherfolk
groups and cooperatives into formal and viable SMEs
Strategy 12: Promote proper eco-labeling and enhance product
standards to ensure the safety and quality of products
Box 4.1. The National Industry Cluster Capacity Enhancement Project:

Bolstering pilot industry clusters
The National Industry Cluster Capacity Enhancement Project (NICCEP) is a threeyear technical cooperation project funded by the Japan International
Cooperation Agency (JICA). The project aims to enhance the capacity of selected
pilot industry clusters (i.e., ICT, tourism, agribusiness, manufacturing, health
and wellness, and mining) throughout the country to plan, implement, facilitate
service delivery, evaluate projects, and improve industry competitiveness and
business environment. Selection of pilot industry clusters to be promoted in a
certain region is drawn from consultations with local industry stakeholders,
considering respective geographical attributes and available natural resources,
among others. This approach allows agribusiness projects to be strategically
distributed within the country, given agricultures dependence on its production
areas natural endowments.
Through the NICCEP, the government is able to provide capacity-building trainings
and related activities that help boost sector stakeholders participation in the
value chain, thereby enabling them to maximize available entrepreneurial
opportunities beyond farming. In support of this, the Department of Trade and
Industry (DTI) has been establishing shared service facilities (SSFs) or production
centers to provide micro-, small and medium enterprises (MSMEs) better access
to technology and more sophisticated equipment. This accelerates the MSMEs
bid for competitiveness and helps them graduate to the next level where they
could tap a better and wider market and be integrated in the global supply chain.
For agribusiness, established SSFs include processing facilities for bamboo, coco
coir, coffee and dairy products.
As a result of these interventions, the agribusiness industry, as one of the targeted
industry clusters, is expected to increase its contribution to the national economy,
particularly in terms of investments generation, exports expansion, creation of
jobs and development of MSMEs. Ultimately, this will contribute to the goal of
inclusive growth and poverty reduction.
94
Sector outcome C: Sector resilience to climate change

risks
The A&F sector needs to adapt to climate change, as weather-related shocks
are expected to become normal occurrences. The Updated PDP intends to
increase insurance protection extended to farmers and fisherfolk against losses in
the A&F sector due to natural calamities as well as plant pests and diseases. The
target is to increase the number of beneficiaries covered by 60 percent per year,
from 311,388 in 2012 to 2,035,864 in 2016. (See also Chapter 9: Sustainable
and climate-resilient environment and natural resources.)
Strategies for this consist of the following:
Strategy 13: Encourage diversification of production and

livelihood options for A&F households
Conduct training in crop-weather relationships and crop diversification
to mitigate risks on off-seasons;
Promote the development of off-farm and non-farm activities;
Revise the design of the Community-Based Employment Program (CBEP)
to function as an income protection measure; and
Conduct information, education and communication (IEC) campaigns
and capacity-building activities for the purpose at the local level.
Strategy 14: Reduce the degradation and improve the quality of

the sectors environmental resources
Adopt effective approaches to develop, rehabilitate and restore the
natural resource base for A&F production;
Increase investments in sustainable and climate change-responsive
technologies and innovations in the production and processing of A&F
products; and
Promote the integration of agricultural development priorities/thrusts in
land use and development, especially at the sub-national level.
Strategy 15: Increase the resilience of agriculture communities

and strengthen their capacities to respond effectively to climate
risks and natural hazards
Promote the adoption of climate-responsive technologies and innovations
in the production, processing and distribution of A&F products;
Strengthen the A&F insurance system;
Strengthen agricultural extension and support services on the adoption
of climate-sensitive farming and fishing technologies; and
Continuously conduct vulnerability and adaptation assessments, especially
in critical A&F products.
95
Crosscutting
strategies
Strategy 16: Enhance convergence among government agencies
The agriculture
bureaucracy, including the
Department of Agicult ure,
Reform, and Department
of Environment and
Nat ural Resources,
will be rationalized
through the efficient and
effective convergence
and complementation
of the agricult ure,
agrarian reform and
nat ural resources service
agencies and related
offices.
The agriculture bureaucracy, including the DA, DAR, and DENR, will
be rationalized through the efficient and effective convergence and
complementation of the agriculture, agrarian reform and natural resources
(AARNR) service agencies and related offices. Rationalization will include
measures to sort out institutional overlaps such that the social, economic,
and environmental aspects of rural development will be integrated as a way to
operationalize sustainable development. The proposed legislation will rationalize
and strengthen the provision of extension services towards improving national,
local and private sector complementation.
Strategy 17: Pursue public-private partnerships (PPPs) especially

for infrastructure and value chain development and management
The private sector will be tapped to participate in the governments efforts
to immediately deliver the needed infrastructure and services for A&F.
Among the projects that may be eligible under PPP include irrigation
infrastructure, food supply chain and postharvest services (i.e., bulk
handling facilities, food/ grains terminals and processing, storage, handling
and port/transport facilities), production centers for various farm inputs, fishfarming infrastructure, and market and trading centers.
Strategy 18: Pursue the formulation of national and local

A&F
commodity roadmaps
Strengthening LGU involvement in agricultural development is an
important strategy for the overall development of the sector. Formulation
of provincial and municipal agricultural development plans will support and
strengthen the implementation of national agricultural commodity and
subsector roadmaps at the local level. This would provide the needed
agricultural support based from local contexts which could make development
of the sector more grounded.
The formulation of A&F roadmaps will guide the overall development of
the sector. This will include the objectives and the necessary government
interventions, including the areas needing private sector participation. An
example is the DA- PCAs Integrated Coconut Industry Poverty Reduction
Roadmap (see Box 4.2).
96
Box 4.2. Integrated Coconut Industry Poverty Reduction Roadmap:

Towards growth that reduces poverty
The Integrated Coconut Industry Poverty Reduction Roadmap is a
program designed to alleviate poverty and develop the coconut industry. This
roadmap, which harmonizes coconut-related programs of national agencies,
will encompass four poverty reduction components, namely market development
through agro-enterprise development, social protection, fast tracking of land reform,
and institutional reforms and innovations.
The applications of these components vary in degree and intensity in each of
the four scenarios. Poverty reduction through market participation measures
will be more applicable for coconut farmers who have secured land.
Moreover, coconut farmers in these localities are expected to be more socially
prepared in linking and engaging markets as entrepreneurs. Market-fuelled
growth for coconut farmers is expected to be highest for farmers with land
security and good access to roads because this would facilitate strong market
connectivity. Public investments such as access connectivity and electricity will be
needed for those without road access to boost market potential. For these
farmers, social protection strategy will be geared towards attenuating the risks
and costs that poor coconut farmers will bear during their transition from
subsistence production to market integration.
For farmers without land security, immediate market participation will be difficult.
Hence, fast-tracking agrarian reform and social protection programs will
be prioritized. The completion of CARPER will be facilitated along with social
protection interventions (i.e., cash-for-work program, Self-employment Assistance
for Kaunlaran or SEA-K, universal PhilHealth and scholarship program) to
augment subsistence farm incomes.
Institutional reforms and innovations, which aim to develop institutional
environment, are an encompassing strategy that applies to all four scenarios.
For the first year of implementation, the integrated roadmap will focus on 12
pilot provinces, including Camarines Sur, Masbate, Eastern Samar, Samar,
Northern Samar, Zamboanga del Norte, Davao Oriental, North Cotabato,
Sarangani, Agusan del Sur, Surigao del Norte and Surigao del Sur. These
provinces, which represent 6 out of the 10 provinces under Category 2, were
chosen based on the extent of their poverty incidence as indicated in the
Registry System for Basic Sectors in Agriculture (RSBSA, 2012). The program
will likewise help fast-track LAD to cover additional provinces with highest LAD
balance, including Agusan del Norte, Albay, Camarines Norte, Compostela
Valley, Davao del Sur, Lanao del Norte, Leyte, Misamis Occidental, Quezon,
Sibugay, Sorsogon and Zamboanga del Sur. Four of these provinces are under
Category 1.
Strategy 19: Conduct an aggressive anti-smuggling campaign

Smuggling is one of the major challenges faced by the sectors
stakeholders across commodities. In order to address this issue, an aggressive
campaign against smuggling, including an effective oversight mechanism, is
needed. In addition, the oversight mechanism will include representatives from
both the public and private sector to ensure transparency (see also Chapter
3: Competitive and innovative I&S sectors).
97
Strategy 20: Review/update critical policy measures

A review of laws and policies will be a continuing activity to ensure the
responsiveness of such issuances to current developments in the sector. The
following are some of the critical policy measures that need to be
reviewed/updated:
Philippine Fisheries Code of 1998, including the updating of the

Comprehensive National Fisheries Industry Development Plan (CNFIDP)
The Philippine Fisheries Code of 1998 mandates the review of its provisions
every five years to take into account the current trends, opportunities, issues and
challenges that face the sector, including the assessment and updating of the
CNFIDP 2006- 2025. The CNFIDP serves as the comprehensive framework for
the promotion of optimal development and long-term sustainability for the
fisheries industry. The plan has yet to be updated since 2006.
Food standards
There is a need to review
the provisions of relevant
law s that tackle inter-island
shipping activities of foreign
vessels that are perceived
to support the development
of shipping operations wit hin
th e countr y.
In light of the move towards trade liberalization and reduction of logistics

cost, the government will strengthen competitiveness of domestic agriculture
to take advantage of trade opportunities while ensuring the provision of safety
nets.
Logistics development
Stakeholders have consistently raised their concern on the inefficiency of
the countrys logistical system that has resulted in high transactions costs
and put further pressure on profitability. To address this, there is a need to
review the provisions of relevant laws that tackle inter-island shipping
activities of foreign vessels that are perceived to support the development of
shipping operations within the country. These laws include, but are not limited
to, the Tariff and Customs Code of the Philippines (PD 1464) and the
Domestic Shipping Development Act of 2004 (RA 9295).
Institute Post-CARPER Reforms

The sustainability of the gains achieved during the program implementation lies
in the establishment of appropriate reforms,which should be able to address
current and emerging issues of the agrarian reform program. It should include
the completion of the LAD component and continued delivery of support
services to ARBs. The proposed legislative action will likewise contain the
institutional restructuring between and among concerned national government
agencies to address problems in land administration and management, and
agriculture extension services. The envisioned reforms will also consider
mechanisms to strengthen LGUs in relation to the delivery of extension services.
98
Strategy 21: Promote the passage and enactment of key legislative

actions
National Land Use
The passage of the bill, pending for two decades now, is expected to provide
legal and other mechanisms not only for land reform areas, but also zoned
areas for water and water uses, especially for agriculture. This is especially
important in anticipation of the end of the agrarian reform program and the
subsequent opening of the land market. Further, it is envisioned that the
policy will serve as guide to the optimum allocation of land among
competing uses within the framework of sustainable development. It will also
provide a mechanism for resolving land use policy conflicts by taking into
consideration the principles of social equity and economic efficiency. (See
also Chapter 9: Sustainable and climate-resilient environment and natural
resources.)
NFA reforms
The NFA Reorganization Act will further rationalize grains-sector trading.
It restructures the agency by separating its regulatory and proprietary functions.
The NFA will grant import permits for rice to all applicants as a ministerial
function, subject to the payment of applicable taxes, duties, and service fees. The
quantitative restriction on rice must be reviewed in light of the W TO
exemption that expires in 2012. The proposed law enables NFA to engage in
activities consistent with its renewed mandate.
The National Food

Authorit y Reorganization
Ac t will further rationalize
grains-sector trading.
It restructures the
agency by separating its
regulatory and proprietary
functions.
Soil and Water Conservation Act

This policy aims for soil and water conservation technologies and
approaches through the development, promotion, and implementation of
soil and water conservation facilities including rainwater-harvesting systems
in the country. In furtherance of its implementation, a National Soil and
Water Conservation Program will be established as the framework for
addressing the problem of land degradation. In particular, the program will
establish the linkage between agricultural productivity improvement and
sustainable land management through the promotion and implementation of
soil and water conservation technologies and methodologies.
To achieve a competitive and sustainable A&F sector, the DA, DAR and
DENR will continue to spearhead the formulation and implementation of
relevant plans, programs and policies. O utcome and intermediate outcome
indicators that will be monitored are presented in Table 4.9.
Programs and projects for the A&F sector will be implemented through
the banner programs of DA and its attached agencies, namely Philippine
Center for Postharvest Development and Mechanization (PhilMech),
Agricultural Credit Policy Council (ACPC) and Philippine Crop Insurance
Corporation (PCIC), on
99
rice, corn, high value crops, livestock and fisheries. These involve the provision
of support services, such as credit and financing, insurance, rural infrastructure,
post- harvest facilities, training and extension, research and development.
DAR and DENR are mainly responsible for improving land tenure security.
For proper monitoring of Plan targets,all concerned agencies are expected to
regularly submit progress reports (e.g. quarterly and annual) to the NEDA
Secretariat for consolidation and subsequent transmittal to the Economic
Development Cluster (Econ Cluster). The Econ Cluster will exercise oversight
functions in tracking the progress and achievements of the implementing
agencies vis-a-vis the Plan targets. The indicators and targets will continue to
be enhanced and updated annually through an iterative process involving
collaboration of sector agencies, statistical agencies, research institutions, the
academe and civil society organizations.
Table 4.9. Annual target indicator matrix on competitive and sustainable agriculture and fisheries
Annual Plan
Means
Agenc
(A&F) sector, 2013-2016
Indicat
targets
of
y
2013
2014
2015
ors
Verificat
responsi
Sect or o utcome: Competitive and2016
sustainable A&F sect o r achieved
ion
ble
A&F GVA Increased to
PhP793,794-824,958
million (in %)
3.5-4.5
3.2-4.2
3.3-4.3
3.5-4.5
Crops to PhP408,429424,346 million (in %)
4.5-5.5
4.0-5.0
4.0-5.0
4.0-5.0
Livestock to PhP98,495104,147 million (in %)
1.2-2.2
1.2-2.5
1.5-3.0
1.6-3.5
Poultry to PhP87,86991,291 million (in %)
4.2-5.2
4.2-5.2
4.2-5.2
4.2-5.2
1.5-3.0
1.5-2.5
2.3-3.0
2.8-3.5
Fisheries to PhP140,881146,349 million (in %)

Value of agricultural exports
increased to US$7,194- 7,460
million (in %)
Labor productivity in A&F
sector increased to
PhP62,561-70,253 (in %)
PSA National
Accounts
DA
PSA Agricultural
9.5-10.5
9.5-10.5
9.5-10.5
9.5-10.5
Foreign Trade
Development
PSA Yearbook
2.0-5.0
Yellow corn
Banana
Coconut (copra)
100
4.4
22.5
0.9
2.0-5.0
4.6
23.2
0.9
2.0-5.0
5.0
23.9
0.9
2.0-5.0
5.16
24.57
1.00
of Labor
Selected
Statistics
Statistics on
Agriculture
PCA
Indicators
2013
Pineapple
41.9
Mango
4.6
Sugarcane
58.6
Cassava
13.8
Coffee
0.8
Cacao
0.6
Rubber
3.46
Volume of production increased (in 000 metric ton)
Hog
2,013
Chicken
1,562
Annual Plan
targets 2014
2015
2016
Means
of
Verificat
ion
43.1
4.8
62.8
16.4
0.8
0.6
3.59
44.4
4.9
66.9
18.3
0.9
0.6
3.62
45.66
5.06
71.20
20.23
0.88
0.70
3.62
2,057
1,651
2,109
1,747
2,172
1,852
PSA
Countrystat/
Selected
DA
PSA
Countrystat/ SRA Selected
Statistics on
Agriculture
DA
Commercial fisheries
1,070
1,102
1,135
1,169
Statistics on
Municipal fisheries
Aquaculture fisheries
1,306
2,599
1,332
2,657
1,361
2,717
1,392
2,784
Agriculture
15.1
7.0
14.6
6.9
14.1
6.9
18.0
Level of post-harvest losses reduced (in %)

Rice
15.6
Corn
7.1
Fisheries
Banana
14.5
Agency
responsi
ble
DA
BFAR
Philmech
Research
study
BFAR
13.0
Philmech
Mango
27.2
24.0
PSA Agricultural
Rice self-sufficiency ratio

increased (in %)
Indicator
100.0
100.0
100.0
100.0
System: Food
DA
Sufficiency
and
Security
Intermediate outcome of subsector outcome A: Land tenure security improved
Total land distribution under CARP (in hectar
es)
DAR: 818,390 by 2016
DENR: 312,188 by 2015
160,000
90,000
240,707
180,707
90,000
36,974
DAR
121,877 Accomplishment
Report
DENR CARP
Secretariat
DAR
DENR
Report
Subdivided and re-
DAR
10
1
Indicators
2013
Annual Plan targets

2014
2015
2016
Subsector outcome B: Forward linkage to the I&S sectors increased

Proportion of industrial crops to total crop production increased (in %)
Abaca
0.2
0.2
Cacao
0.5
1.0
Coffee
0.5
1.0
Oil palm
1.4
2.1
Rubber
1.0
1.5
Sugarcane
32.0
34.0
Means
of
Verificat
ion
Agency
responsi
ble
PSA
Countrystat/
Selected
Statistics on
Agriculture
DA
BOI Report
BOI
Decreasing
per year
PSA Countrystat
DA
2,035,864
DA PCIC Report
PCIC
0.3
1.5
1.5
2.9
2.0
36.0
0.4
2.0
2.0
3.6
2.5
38.0
Tobacco
0.2
0.3
0.4
Volume of industrial crops production increased (in 000 metric tons)
Abaca
69.0
69.4
69.9
Cacao
4.9
4.9
5.0
Coffee
89.8
90.7
91.6
Oil palm
559.7
589.6
621.1
Rubber
451.6
460.36
469.3
Sugarcane
28,260.3
30,256.4
32,393.5
Tobacco
51.54
55.25
59.23
Private Investments in agri6,207
7,448
8,938
related activities increased (in
million PhP)
Subsector outcome C: Sector resilience to climate change risks increased
Annual proportion of farm
Decreasing
Decreasing
Decreasing
households income to total
per year
per year
per year
income decreased
Number of farmers with
497,037
795,259
1,272,415
risk insurance increased
0.5
102
70.3
5.0
92.6
654.3
478.4
34,681.5
63.49
10,725
Resilie
and
nt
financi
inclusive
syste
al
m
I. INTRODUCTION
The Philippine financial market continues to support the national
economy. Despite volatilities in global markets in the past decade, it recorded
considerable gains as it expanded beyond traditional channels. Its development
contributed to further financial inclusion while sustaining financial resilience.
Towards this end, a responsive, development-oriented and inclusive financial
system will be pursued to serve as a platform for the efficient management and
mobilization of resources that will provide alternative sources of financing
for the countrys economic development. W ith economic improvement usually
comes higher inflow of foreign portfolio capital and growth in internal
resources. The government sees this situation as an opportunity, as it intends
to deploy the liquidity buildup to serve the needs of the previously underserved
and disadvantaged members of society.
The Updated Philippine Development Plan (PDP) for 2011-2016 emphasizes
the continuous expansion of the financial system in support of rapid
growth while facilitating inclusive growth. Even so, the system should
continue to observe accepted prudential norms in order to promote
macroeconomic stability.
II.ACCOMPLISHMENTS AND CHALLENGES

A number of targets listed in the PDP 2011-2016 for the financial sector
are either already met or on track. These are: (a) number of access points per
10,000 population, which currently tallies at five; and (b) microfinance services
delivery with end-of-plan target of more than PhP10 billion, which
currently sums to PhP8.4 billion.58 However, a more concerted effort is
needed to increase the number of people with bank deposit accounts, as the
target of 750 out of 1,000 adults is still far from the current 454 out of 1,000
population achieved in 2012.
The local capital market is now in
the rapid economic growth. Recent
strong macroeconomic fundamentals
industrial and services sectors have
of the local capital market.
a better position to take advantage of

investment rating upgrades fuelled by
through continuous expansion of the
contributed to increasing attractiveness
Includes loans from universal, commercial, government banks and excludes the microfinance loan portfolio
of non-bank financial institutions such as cooperatives and non-government organizations (NGOs) due to
data constraints. Nonetheless, the Peoples Credit and Finance Corporation (PCFC), as proxy for the
non-bank financial institution, has an outstanding loan balance to microfinance institutions (MFIs) of P3.0
billion from its wholesale lending program.
58
104
Figure 5.1. Results framework on resilient and inclusive financial

system
employment created
Goals
Rapid and sustained

economic growth
achieved
Intermediate
goals
Equal development
opportunities
achieved
Access to financing
expanded in support to
macroeconomic stability
Sector outcome
Subsector
outcomes
Mobilization of
financial resources
made more efficient
Regulatory
framework for the
financial system
strengthened and
improved
Financial
inclusion
improved
Managing external capital fows

Figures 5.2 and 5.3 summarize the performance of Philippine financial markets
and improved investor sentiment as evidenced by the general strengthening of
the domestic equities market and tightening of sovereign debt spreads.
Figure 5.2. Philippine Stock Exchange prices,

2013
800
0
700
0
600
0
1- Jan500
0 13
1-Feb-13
Mar-13
1-
1-Apr-13
13
1-May-
1- Jun13
1- Jul13
1-Aug13
400
0
105
Figure 5.3. Comparative trend in Asia credit default

swap (Senior-5 year term), 2011-2013
Senior - 5 year term , 2011-2013
300
250
200
150
100
5
0
0
lpppnnul
ul
y- - Ju
v- Jan
Ja
ar
ar
ar
Se
Se
Se
ov - Ja
ov
ay 3- J
o
a
ay 3- J
3
N 3 2 -M
3 1 -M
M
M
M
3 1
3 2 3-N 3 3 -M
3- 3 3-N
1
2
3
3
3
3
3
1
1
1
1 3
1 3 Malaysi
1Philippin 1 3 Thailan
1 Indones
1
12
13
11
13
11
12
11
12
13
ia
a
es
d
Source: Asian Bonds Online
The Philippine Stock Exchange (PSE) exceeded its end-of-year 2012 total
value turnover and average daily value turnover, notwithstanding the
comparatively low number of trading participants relative to other Asian stock
markets. As of June 2013, it is also one of the fastest-growing Asian Exchanges
as it ranked second in terms of growth from its 2011 value in domestic market
capitalization (MCAP).
Figure 5.4. Four-quarter moving average of net private capital flows as percentage of
ASEAN-5
Emerging
Asia
gross
domestic
product, 1991-2011 (in %)
Source: Surging capital flows to emerging Asia: Facts, impacts and responses. R. Balakrishnan et al. IMF Working
Paper 12-2012. May 2012.
Inflows comprise, perhaps, the most immediate challenge for the financial
system that may persist in the long term. The strong economic performance
and the traditionally higher market yields in the country provided the pull
effects which attracted further financial flows from abroad. On balance to-date,
majority of the inflows going to the Philippines are financial in nature rather
than foreign direct investments. This means that the flows are subject to higher
volatility, even sudden stops and reversals.
106
2011:
02
2010:
02
2009:
02
2008:
02
2007:
02
2006:
02
2005:
02
2004:
02
2002:02
2003:
02
2001:02
2000:02
1999:02
1998:02
1997:02
1996:02
1995:02
2011:
02
1991:02
2010:
02
2009:
02
2008:
02
2007:
02
2006:
02
2005:
02
2004:
02
2002:02
2003:
02
2001:02
2000:02
-12
1999:02
-12
1998:02
-8
1997:02
-8
1996:02
-4
1995:02
-4
1994:02
1993:02
1992:02
1991:02
1994:02
1993:02
12
Portfolio investment
Net private capital
flows
Direct investment
Bank and other private flows
1992:02
12
Figure 5.5. Net private capital flows (as percentage of GDP; four-quarter moving
average)
35,00
0
30,00
0
25,00
0
448
0
Portfolio Funds
20,00
15,00
0
0
10,00
0
0
5,00
0
132
8
FDI
1999 2000 2001 2002 2003 2004 2005
2009 2010 2011r 2012p
2006 2007 2008
0608
535
9
163
7
48
8
0709
0810
0911
1012
Source: Balance of Payments Data using the BPM5 (5th Edition of Balance of Payments) concept
Facilitating financial inclusion

The financial sector provides services to savers and borrowers alike. These
services range from safekeeping to providing insurance, consumer loans, and
investment loans. The efficiency by which the financial sector is able to provide
these services depends in large part on the amount that it is able to mobilize and
on the number of stakeholders it will be able to serve.
Financial inflows come from both domestic and external sources. These inflows
are attracted into the system based on the expectation of risk-adjusted return but
first premised on the confidence of a healthy and robust financial system. The
financial system is considered inclusive if it is able to provide services to a
broader spectrum of society, including small savers and borrowers.
Banks and banking access point

Access to banks and banking services is still inadequate in some
municipalities. Figure 5.6 shows that there is still much to be done in providing
financial services across the country. A significant portion of the population can
be made better off if provided with more access points. The Philippines actually
has the most number of banks per 1,000 square kilometers and is next to
Malaysia in terms of number of automated teller machines (ATMs) per 1,000
square kilometers. However, on the whole, there is roughly only one bank for
every 10,000 Filipinos aged 15 years and older. This puts the country
comparatively better than such countries such as Thailand and Kenya. However,
37 percent of cities and municipalities do not have banks and 13 percent do not
even have access points, like ATMs.
107
Figure 5.6. Geo-spatial distribution of unbanked and unserved

municipalities.
Philippines
1,634 municipalities
92 million
Filipinos
W ith 9,375 banking offices,

37% of cities and municipalities
(15% of population) are
unbanked
W ith the addition of

over 40,000 access points
(offsite ATMs, NBFIs, credit
cooperatives, pawnshops,
money changers, remittance
agents,
e-money agents), only 13% of
cities and municipalities (4% of
the population) remain unserved
Source: Report on the State of Financial Inclusion in the Philippines,

BSP
Insurance
Insurance is another service being provided by the financial sector that can
be utilized by the covered individual in case of an adverse event. Insurance
penetration, however, remains low, although it grew from 1.02 percent in 2009
to 1.45 percent in 2012. Similar to other financial instruments, increasing
insurance coverage requires building the confidence of consumers in the system,
informing the public about their options and rights, and introducing various
designs of the instrument to cater to different consumers.
108
To ensure resilience among the insurance industry players, the Department

of Finance (DOF) issued Department Order No. 15-2012 in 2012, prescribing
step up increases in the minimum capital requirements for insurance companies
from PhP250 million by 2012 to PhP1 billion by 2020. Moreover, in
September 2013, the New Insurance Code (RA 10607) took effect which will
further increase the minimum net worth of insurance companies to PhP1.3
billion by 2022.
In January 2010, the Insurance Commission formally launched the
Microinsurance Program to encourage the provision of affordable and
accessible insurance products, targeting the 27 million-marginalized sector. The
program involves the following strategies:
Monitor compliance with microinsurance regulations,especially on the
Circular on Performance Standards to ensure the financial strength and
stability of the Microinsurance providers;
Encourage
development
of
new, relevant
and
innovative
microinsurance products, especially those that will address multiple
risks, including nontraditional ones such as index-based and parametric
insurance products;
Continue advocacy campaign for microinsurance to reach out to the rest of
the 23 million Filipinos who are living below the poverty line;
Develop appropriate rules and guidelines on innovative distribution
channels that are effective but still affordable; and
Pursue implementation of an alternative dispute resolution (ADR)
mechanism to address complaints and resolve disputes in an accessible,
practical and efficient manner.
Furthermore, to extend insurance covers to the vulnerable overseas Filipino
workers (OFW ), the Compulsory Insurance for Agency-Hired Workers Act
(RA 10022) was passed into law. In 2012, the number of OFWs and/or
beneficiaries who benefited from this program reached 4,630, reflecting an
increase of 207.8 percent from 2011 with total benefits paid reaching PhP175
million.
In the case of the Social Security System (SSS), there is a need to meet
the international standard for fund perpetuity which has a lifespan of 70
years. This means that an increase of 14 percent in the contribution rate should
be set. This suggestion has to be implemented on a gradual basis given the
positions raised by both labor and employer groups during dialogues and
consultations.
109
Loans to small borrowers

The government, through the Land Bank of the Philippines (LBP)
and Development Bank of the Philippines (DBP), continues to promote
inclusive growth and alleviate poverty by creating opportunities in the
countryside through expanded assistance to small farmers, fisherfolk and
micro, small and medium enterprises (MSMEs).
As of 30 October 2013, total outstanding loan to these sectors reached
PhP72.3 billion.59
Also for the same period, government financial
institutions (GFIs) provided key services and support to the national
government and its line agencies with a total outstanding loan of PhP311.6
billion.
Financial inclusion strategies

W ith financial stability and inclusivity as the overall strategic objective, the
task of sustaining a robust and inclusive domestic financial market rests in taking
proactive action from a position of strength.
Financial sector authorities have adopted a pragmatic approach consisting
of three activities: (a) increasing the confidence of the public about the
health of the financial sector; (b) educating the public on financial
instruments and their rights; and (c) encouraging the offering of a variety of
products to cater to different consumers. Table 5.1 details the specific strategies
undertaken.
Based on LBP and DBPs data submitted on 10 December

2013
59
110
Table 5.1. Financial inclusion

strategies
Specific steps60
Policy regulation
and supervision
Issued Circulars 730, 754, and 755 to

enhance the implementation of the Truth
in Lending Act (RA 3765)
Issued Circular 746 which grants

exemptions from the submission of
documents like income tax returns and
financial statements to clients.
Issued Circular 694
Financial education and

consumer protection
Continued the implementation of a

multi-dimensional Economic and
Financial Learning Program
Actively engaged in global discussions

and initiatives in financial
inclusion
Calibrated product offerings for Implemented the Credit Surety Fund61

targeted needs
Adoption of rules and regulations
regarding derivative products and
trading
Specific target
Ensured that there is adequate
disclosure of the true cost of credit,
which protects consumers and
enables them to make informed
decisions in borrowing
Streamlined access to
finance by
MSMEs
Facilitated the establishment of
micro-banking offices
(MBO) to expand the physical
network of banking offices in
areas without banks or
alternative access points
Disseminated public information,
through campaigns and consumer
education programs on economic
and financial issues to
promote awareness and
understanding
of essential economic and
financial issues.
Enhanced promotion of
financial inclusion
initiatives. BSP also currently
chairs the Steering Committee of the
AFI, a global network of policy
makers and regulators
committed to financial
inclusion, and the recently
established Basel
Consultative Group
Workstream on financial
inclusion. BSP leadership
and involvement in these fora have
allowed the inclusion of Philippine
perspectives in global
discussions.
Increased advocacy for MSME
access to finance
http://www.bsp.gov.ph/downloads/Publications/2012/microfinance_2012.pdf accessed on 25 July 2013.

This provides a maximum of 80 percent surety cover for loans granted by banks to borrowers that would
have difficulty assessing such credit facilities. As of end- December 2012, there are 26 CSFs nationwide
aggregated contribution pledges of PhP396.621 million, of which PhP303,284 million has been paid
60
61
111
III. UPDATED PDP TARGETS IN THE

PHILIPPINE FINANCIAL SYSTEM
For the next three years, the objective is to maintain a resilient and
inclusive financial system underpinned by the discipline of credit standards.
This means that the asset base of the financial system needs to increase to
serve the needs of a growing economy. At the same time, the coverage of the
service should also expand. Table 5.2 indicates the major targets for the
financial sector.
Table 5.2. Revalidated results matrix (RM) on resilient and

inclusive financial system
Baseli End-ofIndicat
Assumptions
ne
Plan
ors
and risks
(201to financing
target expanded
Sector outcome: Access
2)
(2016)
in support
t o ma croeconomic stability
Financial systems
total assets increased
(in % )
National saving rate
(Gross National
Saving-to-GDP ratio)
improved (in % )
9.
7
Passage of majority
of the bills under the
>10
Financial Sector legislative
agenda within the medium
term
Proper and immediate
23
>30
implementation of the
enacted Financial Sector
legislative measures
Attainment of the
macro- assumptions,
454
financial
750
inclusion strategies and
stable external and domestic
economic
environment
Subsector outcome A: Mobilization of financial
resources
made
more efficient
Attainment of the
Number of deposit
accounts per 1,000
population increased
Microfinance
services
delivery improved
(in PhP billion)
macro- assumptions,
financial
>10
inclusion strategies and
stable external and domestic
Subsector outcome B: Regulatory frameworkeconomic
for theenvironment
financial system
strengthened and improved
8.
4
(Outcome indicator to be developed)

Subsecto r o u tcome C: Financial inclusion improved
Number of access
points per 10,000
5
6
112
Attainment/realization
of
macroeconomic assumptions
(e.g. GDP, infation rate,
foreign interest rates
[LIBOR]) and labor sector
targets

To achieve the sectoral objectives, the strategic framework for the
financial sector must involve: (a) managing the capital inflows towards
investments in the productive sector; (b) building the needed financial market
infrastructure; and (c) pursuing the financial inclusion agenda.
Figure 5.7. Strategic framework on resilient and inclusive financial system

Access to financing
expanded in support to
Sector outcome
Subsector outcome
Strategies
Mobilization of financial
resources made more
efficient
1. Manage the
capital inflows
towards investments
in the productive
sector
Regulatory framework
for the financial
system strengthened
and improved
2. Build the
needed financial
market
infrastructure
Financial inclusion
improved
3. Pursue the
financial inclusion
agenda
Strategy 1: Manage the capital inflows towards investments in

the productive sector
Capital inflows could be beneficial because these provide funding for muchneeded investment. The gains in the financial sector should translate into the real
economy and be relevant to a greater proportion of the population in the form of
enhanced capital formation, more infrastructure development, and employment
growth.
Foreign investments make up only a small part of the foreign exchange
inflows.62 However, if capital inflow intensifies, it could have an advantageous
impact on the real sector. The sustained surge of foreign capital could help
liquidity management, create positive sentiments and lead to financial growth.
This is very significant for a market where current decisions have long-term
implications.
The ability to attract and absorb direct investments is largely dependent on
the structure of the macroeconomy, mix between labor and capital across
various
BSP, retrieved from http://www.bsp.gov.ph/downloads/Publications/FAQs/fximpact.pdf

accessed on 26 June 2013.
62
113
industries, as well as specific programs designed to channel funding to

specific priority undertakings. Moreover, it may be useful to come up with
estimates of the following:
Funding requirements by the real economy over the next three years,
broken down by economic activity and by province;
Ideal mix of labor and capital that must be deployed to generate
production; and
Capital projections under special programs such as the publicprivate partnership (PPP).
Unlike foreign direct

investment and foreign
port folio investments,
remit tance flow s have
been proven to be resilient
even during times of
economic crises elsew here
in the world.
A big portion of external flows consists of remittances. Unlike foreign

direct investment (FDI) and foreign portfolio investments, remittance flows
have been proven to be resilient even during times of economic crises elsewhere
in the world. This is because of the huge stock of Filipinos overseas, estimated to
be about 10.5 million 63 as of 2012 and the wide diversity of countries they are in.
Most of these remittances finance the consumption of families left behind.
D uring the early years, some of these are spent to accumulate assets
(house, car, other durables) but after a while, the family may be ready to
channel some amount to productive investments. The financial sector then needs
to design the proper instrument that matches the risk-return profile of this
group. In turn, this resource can be channeled to investments that would create
jobs in the country.
Regardless of the source, financial inflow is ultimately transmitted as
household consumption, a firms working capital and investment as
financing resources become cheaper. Hence, these may contribute to the
expansion of the three main sectors, namely agriculture, industry and services.
These also open opportunities for the banking industry to widen its reach by
crafting a delivery mechanism for more productive lending to the real sectors,
particularly to the MSME. This would lead to a more stable and diversified loan
system that supports job growth.
Strategy 2: Build the needed financial market infrastructure

Equally important is the necessary infrastructure to enable participants in
the financial market to make rational decisions. Investors, for example, may
have targeted investment yields (i.e., retirement funds, defined-benefit schemes)
or have set behavior that is based on an expectation of returns (i.e., less adverse
high-net worth investors).
The infrastructure needed to provide this information involves various
components and may take some time to complete. In the short term, what is
needed is the
CFO stock estimate as of December
2012
63
114
development of an overarching roadmap that will connect the key

components of the market architecture. This will at least include critical
work in the areas identified in Table 5.3.
Table 5.3. Key components of financial market infrastructures
Payment systems
Trading platforms
Post-trade processing
Retail payment systems

Large-value payment systems
Exchange-based system
Over-the-counter-like
system
Trade repositories
Central counterparties
Central securities depository
Securities settlement system
In the immediate term, it is important to define the mandatory financial

market infrastructures and the strategies to strengthen their governance
structure. The enforcement of these initiatives is expected to better capture
data and break the boundaries of traditionally bilateral transactions, such as
over-the-counter derivatives and repurchase agreements/securities borrowing.
Box 5.1. The prospects of the ASEAN integration

The integration of Association of Southeast Asian Nations (ASEAN)
member- states is a decided policy issue. For the capital market, the clear
intent is to mobilize ASEAN savings for ASEAN investment needs. However,
there are many challenges that need to be hurdled before the envisioned
benefits can be reaped. At the very least, becoming a regional player requires
that the Philippine capital market is efficient and not prone to arbitrage across
jurisdictions. This covers a gamut of issues that needs to be considered, such
as appropriate regulations, suitable products, competitive institutions, and
functioning infrastructure.
Strategy 3: Pursue the financial inclusion agenda

The Updated PDP recognizes the role of government in putting in place
appropriate safety nets and risk protection for the poor. Financial inclusion will
continue to be a major concern given the archipelagic structure of the economy
and the significant differences across socioeconomic groups.
In order to attain financial inclusion, the government will continue to
pursue reforms in policy regulation, supervision and accessibility. Financial
education and consumer protection will also be provided.
115
Through its Economic and Financial Learning Program, the BSP will
continue to promote greater public awareness of economic and financial issues
and provide information to enable households and businesses to make wellinformed economic and financial decisions. As it is, Filipinos overseas and
their families left behind are offered seminars and/or literature on financial
literacy. This strategy will be maintained and even enhanced.
The BSPs Credit Surety Program, a PPP initiative, will continue to support
the governments poverty alleviation program and efforts to increase access to
credit in the countryside. Moreover, in line with its commitment to protect
the rights and welfare of consumers of financial services, the BSP will continue
to provide an accessible avenue for consumer assistance and redress.
The government will also

establish a system that
will encourage financial
institutions to accept
non-real propert y assets
as securit y for lending to
micro, small and medium
enterprises.
The government will also establish a system that will encourage financial
institutions to accept non-real property assets as security for lending to
MSMEs in order to further boost economic development, financial inclusion
and job generation. The framework was finalized in June 2013. It will enhance
and simplify the processes on taking movable assets, such as inventory,
equipment, sales contracts, and other intangible assets, as collateral.
Recently, the PSE has formally ventured into Islamic finance and released a list
of Shariah-compliant stocks. This will provide Filipino Muslims with
investment options in the country. The PSE will continuously evaluate
Shariah compliance of these stocks.
Policy and regulatory instruments

The strategic framework cited above is not new to regulatory authorities.
However, within the larger community of stakeholders, the market trade-offs
and operational ramifications may not be as well-known. At the very least,
a national approach has yet to be articulated. Furthermore, there is a need
for a more proactive communication with the larger constituency, although a
common stance on the issue has yet to be decided upon.
Key reforms that will strengthen the regulatory and supervisory framework
and enhance responsible risk management by banks will be sustained to
maintain the stability of the financial system. Policy initiatives will continue to
focus on aligning prudential standards with international norms, and enhancing
the implementation of existing banking rules and regulations. In this regard,
closer coordination of macroeconomic and financial sector policies shall be
enhanced through the governments Financial Sector Forum (FSF).64
Initiatives of different financial institutions are voluntary in nature. However,
these can be influenced by policy directions and regulatory instruments
consistent with the financial stability agenda.
The FSF is an interagency body composed of the BSP, Securities and Exchange Commission (SEC),
Insurance Commission (IC), and the Philippine Deposit Insurance Corporation (PDIC). The FSF
principally provides an institutionalized framework for coordinating the supervision and regulation of the
financial system, for strengthening the exchange of information among the different regulators, and for the
promotion of better consumer protection.
64
116
Going forward, it is important to designate an institution whose mandate

is to maintain financial stability, and recognize the role the Financial
Stability Coordinating Council (FSCC) plays in the overall financial
stability agenda. Both the institution and the FSCC will be given authority
and, subsequently, the legal statute for defining appropriate macro-prudential
policies while avoiding distracting issues related to legitimacy or the coverage
of institutional oversight.
It is also important to establish a framework for financial inclusion that will
serve as input to the design of financial inclusion strategies, as well as the
necessary policies and regulations. The effectiveness and impact of these
initiatives will also be thoroughly monitored and evaluated and the proper
feedback mechanism be put in place.
Legislative agenda
To prevent and minimize systemic risks, efforts will be made to
strengthen regulations in the face of current challenges. Emphasis will be placed
on the timely passage of legislative agenda to achieve financial sector
targets by prioritizing the following:
Draft Corporate Governance provisions of the Corporation Code of
the Philippines;
BSP Charter with respect to financial stability;
Payments System Act;
It is important to
designate an institution
w hose mandate is to
maintain financial stabilit y,
and recognize the role
the Financial Stabilit y
Coordinating Council plays
in the overall financial
stabilit y agenda.
Amendments to the Securities Regulation Code;

Financial Sector Tax Neutrality Bill;
Amendments to the Investment Company Act and the Insurance Code;
Amendments to the Real Estate Investment Trust Law (REIT );
Bill on Pension Fund Regulation;
Collective Investment Schemes Law (CISL); and
Chattel Mortgage Law Amendment.
Each of these strategies is formidable in its own right. W hile they are
inherently linked, they collectively form the foundation for financial inclusion
and financial stability.
The indicators comprising the revalidated RM are spread across sector and
subsector outcomes. The three sector outcome indicators (i.e., financial
systems total assets increased, national saving rate improved, and number of
deposit accounts
117
increased) indicate expansion of access to financing in support to

macroeconomic stability, with the BSP, Government Service Insurance System
(GSIS), SSS and Pag-Ibig Fund as lead agencies.
The subsector indicator microfinance services delivery improved is
focused on mobilizing financial resources by improving and increasing
microfinance services. Concerned agencies include BSP, Insurance Commission
(IC) and other microfinance institutions.
The subsector indicator number of access points per 10,000 population is
focused on improving financial inclusion and is currently monitored by the
BSP, with Bankers Association of the Philippines (BAP), Chamber of Thrift
Banks (CTB), Rural Bankers Association of the Philippines (RBAP) and
Cooperative Bank Federation of the Philippines (Bangkoop) as support entities.
NEDA, in partnership with Financial Sector Forum (FSF) and Financial Sector
Coordinating Council (FSCC), will regularly consolidate and monitor reports
on the sectors accomplishments based on the identified performance indicators.
The designated GFIs will be submitting to NEDA the updated data.
Table 5.4. Annual target indicator matrix on resilient and inclusive financial system, 2013-2016
Annual Plan targets
Means
Agenc
Indicat
(in %) 2013
2014
of
y
ors
verificat
responsi
2016 expanded in support to
Sector outcome: Access2015
to financing
ion
ble
Financial system's total
assets increased (in % )
N/A
N/A
N/A
>10%
National saving rate

(Gross National Savingto-GDP ratio) improved
(in % )
N/A
N/A
N/A
>30%
Number of deposit
accounts per 1,000
N/A
N/A
N/A
750
BSP, GSIS,
SSS,
Pag-Ibig
Agency reports
NEDA, BSP,
PSA*
BSP,
BAP
Subsector outcome A: Mobilization of financial resources made

more
efficient
Microfinance
> Php10
N/A
N/A
Agency reports
services
billion
N/A
delivery
improved
Subsector
outcome B: Regulatory framework for the financial system
strengthened and improved
BSP,
Microfinance
institutions

Subsecto
utcome
C: Financial inclusion improved
Number ofr oaccess
points
per 10,000 population
N/A
N/A
increased
N/A
*NEDA and BSP to monitor only, with PSA as data
source
118
Agency reports
BSP, BAP,
CTB,
RBAP,
Bangkoop
Social
developm
ent
Social development
119
I. INTRODUCTION
The Philippine Development Plan (PDP) envisions having equal opportunities
for people to get themselves employed, acquire assets, and raise their living
standards. This means having healthy and educated people who have the means
to withstand crises such as emergencies, disasters, calamities, and sudden drops
in income or joblessnessa risk accompanying the process of economic
restructuring and adapting to new demands. As growth tends to be
concentrated in a few cities or urban areas, equalizing opportunities also means
that those who choose to seek employment in these growth areas will have
access to secure and affordable shelter.
Rapid economic growth is necessary to make this vision a reality, to adequately
care for peoples well-being. Yet economic growth also depends on the quality
of the countrys workforce and on the ability of growth areas to accommodate
members of the labor force who seek productive employment. But if few
people are given opportunities to keep themselves healthy enough to work,
to acquire the skills and capabilities necessary for entrepreneurs and workers to
succeed, to find secure and affordable shelter in growth areas, then economic
growth will be constrained and its benefits will not be enough to reach the
needy. And if there is not enough protection from catastrophic situations, then
even the productive ones can lose whatever they have, including the
opportunities to earn income and to raise their families quality of life. This can
worsen poverty and slow down growth or even reverse its gains.
However, human development and social protection services, as well as
secure shelter, are replete with market failures. The private sector, left to its
devices, will not be able to achieve the level of education, health, and shelter that
is desirable for equitable social development and necessary to sustain growth and
make it inclusive. The role of government is thus critical in financing, providing,
or regulating these services that will substantially improve health and education
outcomes and reduce vulnerability and social inequality.
Guided by the Presidents Social Contract with the Filipino People, as well as
the countrys pursuit of the Millennium Development Goals (MDG) and
reduction of poverty in its multiple dimensions, the PDP seeks to (a)
improve human capabilities through better health and nutrition and through
enhancement of knowledge and skills; and (b) reduce peoples vulnerability
by expanding social protection services and providing more secure shelter.
Interventions will directly address deprivations experienced by the poor and
vulnerable so that they become better able to participate in the countrys
development process.
120
Figure 6.1. Results and strategic framework on social

development
employment created
Goals
Rapid and sustained

economic growth
achieved
Intermediate
goals
Sector
outcomes
Subsector
outcomes
Strategies
Human capabilities
improved
Equal development
opportunities
achieved
Vunerabilities reduced
Health and
nutrition
status
improved
Knowledge
and skills
enhanced
Social
protection
expanded
1. Provide
health care to
all: Kalusugan
Pangkalahatan
(Universal
Health Care)
2.Provide
complete and
quality basic
education
5.Enhance the
targeting
system by
identifying the
near poor/
vulnerable and
knowing their
needs
3.Develop
workforce
competencies
and life skills
through TVET
4.Make higher
education
competitive
and responsive
to national
development
goals
6.Enhance
social
protection and
insurance for
vulnerable
groups
Access to
secure
shelter
expanded
8.Provide a
menu of
housing
options/
assistance
9.Building
strong
parnerships
with
stakeholders
10.Pursue the
policy agenda
for socialized
housing
7.Set up
convergence
mechanism at
all levels
II. CHALLENGES, OPPORTUNITIES AND STRATEGIES

W hile the country is on track in terms of economic targets, it continues to face
the challenge of achieving social outcome targets.
In the past several years, the government has been significantly
increasing spending and investment in social services and housing. From 2009
to 2013, the share of the social services sector in the total budget has been
expanding from
28.7 percent to 34.9 percent. As a share of gross domestic product (GDP),
total national government spending for social services for the same period
averaged 5.4 percent, from 5.1 percent in 2009 to 5.9 percent in 2013. There
was also a major improvement in the allocation of housing and community
development from 0.59 percent in 2009 to 1.16 percent in 2013.
121
W hile these investments have yielded positive results in terms of providing

access to health, education, and housing services, the country is at risk of not
meeting some of the targets specified in the M DG and PDP, particularly on
reducing poverty, maternal deaths, prevalence of underweight children below
five years of age, and undernourishment of families, as well as on improving
educational achievement rates. In particular, provinces in Categories 1, 2 and 3
will be given priority in the delivery of social services.
To make a significant impact on poverty reduction and social development,
there is a need to accelerate efforts to invest in improving human
capabilities and in reducing vulnerabilities of families.
Sector outcome: Human capabilities improved

Freedom from illness and freedom from illiteracy are two of the most
important ways poor people can escape poverty. Strategies and policies in the
PDP are geared towards providing health care to all Filipinos, especially the
poor, and towards improving access and quality of basic education,
technical-vocational education and training (TVET ), and higher education.
Access to affordable and quality health care and education and training
services increases peoples chances of getting quality employment, increasing
incomes, and enjoying better quality of life.
Subsector
improved
outcome
A:
Health
and
nutrition
status
The PDP has identified targets for 15 health indicators. Table 6.1 presents
the revalidated results matrix (RM) on subsector outcome A: Health and
nutrition status improved. Based on latest data under the baseline column, the
country is either close to meeting or already met targets in 9 of 15 indicators (in
boldface).
122
Table 6.1. Revalidated results matrix (RM) on subsector outcome A: Health and
nutrition status improved
Indicators
Baseline
Maternal mortality ratio per

100,000 live births decreased
Infant mo rt ality rat e per 1,000
live births decreased (in % )
End-ofAssumptions
Plan
and risks
target
Assumptions
221 (2011) (2016) 5 0
Cooperation of families /
2 2 ( 2 011)
17
Under-five m o rtality rat e per

1,000 live births decreased (in % )
30 (2008)
Prevalence of underw eight

children under five decreased
(in % )
20.2 (2011)
12.7
Contraceptive prevalence rate (all

methods) increased (in % )
48.9 (2011)
65
Proportion of births att ended

by health professional increased
(in % )
72.2 ( 2 011)
90
Proportion of births delivered in

facility increased (in % )
52.2 (2011)
85
Malaria m o rt ality rat e per

1 00 , 00 0 population decreased
(in % )
0.01 ( 2 011)
<0.03
Malaria morbidity rat e per

1 00 , 00 0 population decreased
(in % )
9.5 ( 2 011)
TB case det ection rat e (all forms)

increased (in % )
8 2 ( 2 012)
HIV prevalence decreased

Proportion of population with
access t o safe wat er increased
(HH in % )
Proportion of population
with access to sanita ry t oilet
increased (HH in % )
Less than 1%
of population
( 2 012)
8 3 ( 2 0 11)
9 1.6 ( 2 0 11)
25.5
households in the
implementation of health
programs is ensured.
Commitments and capacities
of LGUs to deliver basic
services and provide
supply requirements are
strengthened.
The Responsible Parenthood
and Reproductive Health Act
of 2 012 (RA 10354) is fully
implemented.
Incremental revenues from
the Sin Tax Reform Law (RA
10351) is fully realized to
increase funding for Universal
Health Care (UHC).
The countrys economic
performance continuously
improves.
6.6 Risks
Changes in political
leadership, particularly at
85
the LGUs
Competing priorities of
Less than 1%
LGUs
of population Occurrence of natural
disasters and armed conflicts
Emergence of new diseases /
88
new strain facilitated by
globalization
Rapid urbanization putting
strain to public health
>9 2
services in the urban areas
National Health Insurance Program

(NHIP) coverage rate increased
(in % )
72 (2012)
95
Proportion of households with per

capita intake below 100% dietary
energy requirement decreased
(in % )
66.9 ( 2 0 0 8 )
32.8
123
Investing in health
care for all as a
means of providing
financial
risk
protection
is critical for
reducing poverty
and promoting
inclusive
development.
However, other indicators do not show encouraging results. Among the

most alarming is the increasing number of pregnancy-related deaths. Based on
the 2011 Family Health Survey (FHS), the maternal mortality ratio (MMR)
increased to 221 per 100,000 live births in 2011 from 162 in 2006. The target is
to bring down this ratio to 52 per 100,000 live births by 2015 and to 50 per
100,000 live births by 2016. This gap presents the big challenge faced by the
Kalusugan Pangkalahatan (KP), or Universal Health Care program. The
increase in maternal deaths is a manifestation of the deficiencies in the health
system to address the various causes of maternal mortality, and more so, the
inequitable access to quality health care.
On combating human immunodeficiency virus (HIV ), acquired immune
deficiency syndrome (AIDS), malaria and other diseases, the achievement of
targets remains on track but this should not cause complacency. The
malaria mortality rate decreased from 0.03 in 2009 to 0.01 percent in 2011.
Thus, the 2016 target has been achieved and should be sustained. On the other
hand, the morbidity rate per 100,000 decreased from 22 in 2009 to 9.5 in 2011.
The end-of-Plan target for this indicator is 6.6 per 100,000 population. But while
the H IV and AIDS prevalence remains within the target of below one percent of
the total population, the number of H IV cases continues to increase annually,
particularly among the most-at-risk populations (MARP). The M DG and endof-plan target for H IV prevalence is to keep it less than one percent of total
population and halt the spread of the disease.
Prevalence of underweight children under five of age decreased from 20.6 in
2008 to 20.2 percent in 2011 based on the 2011 National Nutrition
Survey (NNS) updates. However, the 2011 target was not achieved. This
indicates the urgent need for improving the delivery of nutrition and
nutrition-related services. The M DG target (2015) for prevalence of
underweight children under five is 13.7 percent while the end of plan target
(2016) is 12.7 percent. To ensure financial risk protection, efforts will be
geared towards increasing insurance coverage to 90 percent by 2015 and 95
percent by 2016.
Strategy 1: Provide health care to all: Kalusugan Pangkalahatan

(Universal Health Care)
KP is the PDPs main strategy for improving the countrys health status.
Access to care not only promotes good health and longevity. As an investment
in human capital, it also contributes to labor force productivity, employment
and, eventually, economic growth in the long run. In addition, since ill
health is a major cause of impoverishment among the near-poor, and a
deepening of poverty among the already-poor, investing in health care for all as
a means of providing financial risk protection is critical for reducing poverty and
promoting inclusive development.
124
The key aspects of the KP are found in its three strategic thrusts:
a. Achieve health-related M DGs by scaling-up promising preventive
and promotive health programs and improving health-seeking behavior
among the most vulnerable population;
b. Improve financial risk protection
insurance coverage and benefits; and
by expanding national health
c. Ensure quality of service by not only investing in facility infrastructure

and equipment, but also improving clinical and management processes,
and regulating the quality of care provided.
Achieve health-related MDGs by scaling-up promising preventive

and promotive health programs
Insufficient and unequal use of preventive and promotive care is a
symptom of health system problems, which contribute to the poor health
status of Filipinos. Large regional and socioeconomic inequalities in access to
care remain: maternal and child health outcomes are four times worse
among the poorest 20 percent than among the wealthiest 20 percent; and
geographic access to service delivery has hardly improved in the last five
years. For instance, health facility delivery was most common in the National
Capital Region or NCR (77.4%), Cordillera Administrative Region or CAR
(67.5%) and Central Luzon (65.2%), and least common in the Autonomous
Region in Muslim Mindanao (ARMM) at 19.2 percent. On assistance at
birth delivery, 2011 FHS data indicate that 90 percent of deliveries in NCR
and Central Luzon were assisted by a health professional as compared to
Region IX in the Zamboanga peninsula (48.4%) and ARMM (31.9%).
Maternal and child

health outcomes are
four times worse
among the poorest 20
percent than among
the wealthiest 20
percent.
The government continues to undertake efforts as well as investments to

address the twin challenge of health access and quality. The Sin Tax
Reform Law (RA 10351) and Responsible Parenthood and Reproductive
Health Act of 2012 (RA 10354) are two major opportunities now available to
intensify KP interventions that will eventually contribute to improved health
status.
The Sin Tax Reform Law is expected to generate enough revenue to
finance much needed investments in health. A total of 14.7 million poor
identified in the National Household Targeting System for Poverty
Reduction (NHTS-PR) from Category 1 provinces, as well as near-poor
families, can be enrolled under the National Health Insurance Program (NHIP)
with the expected windfall from sin tax revenues. These revenues will be
directed to improve health care facilities, and to finance expanded coverage of
preventive and promotive health care programs.
Social development
125
A strategy to reach more

of the poor self-employed
and those in the informal
sectors is to cover them
at the point of care. Close
collaboration with local
govenment units and other
government agencies
as service points is also
necessary.
However, any increases in current investments and efforts in the M DG

programs may not achieve their desired effects if the current capacities and
capabilities of frontline health workers are not improved. The major
challenge is to ensure a defined minimum set of clinical competencies in
family planning and maternal and childcare services among existing staff,
especially at the level of rural health units (RH U) and barangay health stations
(BHS). The governments policy to focus on poor families would also require
hiring and training of additional skilled health and nutrition workers especially
in disadvantaged areas to deliver the required public health care services for
poor families.
The Responsible Parenthood and Reproductive Health Act of 2012
mandates the provision and delivery of essential services that are expected to
significantly reduce maternal deaths. The law now clearly defines the
responsibilities and accountabilities of national government, local government
units (LGU), and other agencies in providing information, services, supplies, and
commodities needed to fill the unmet needs for family planning and maternal
care, especially among the poor and adolescents.
Improve financial risk protection by expanding national health

insurance coverage and benefits
This strategy entails increasing Philippine Health Insurance (PhilHealth)
coverage and benefits. A major challenge is how to seek out and cover the poor
who have not been surveyed by the NH TS-PR nor by LGUs, such as indigenous
people (IP), street children, children from orphanages, persons with disability
(PWD), internal migrants, etc. The coverage of the Individually Paying
Program (IPP) is also a challenge because, unlike the mandatory membership
of those formally employed in the government and private sector, and the
government subsidy of identified indigents, there is currently no means to
enforce the enrolment of those in the informal and self-employed sectors,
leading to a huge gap in coverage.
A strategy to reach more of the poor self-employed and those in the
informal sectors is to cover them at the point of care. Close collaboration with
LGUs and other government agencies as service points is also necessary.
Likewise, a parallel strategy to cushion Filipinos from the ill effects of high
health care costs is improving benefit coverage. The necessary improvement
includes a full shift in provider payment system from fee-for-service to
case-based rates, providing no-balance billing arrangements for indigent
members, strengthening gatekeeping mechanisms through the implementation
and gradual expansion of the primary care benefits, and financing more
catastrophic conditions.
126
Ensure quality of service by investing in facility infrastructure and

equipment, improving clinical and management processes, and regulating
the quality of care provided
Gaps in the quality of basic facility infrastructure and equipment will be
addressed through the upgrading and construction of 10,596 government
health facilities from 2014 through 2016, including the rehabilitation of health
facilities in areas affected by Super Typhoon Yolanda.65
Regular
technology assessments will ensure that infrastructure and procedures are
both adequate and cost-effective. Clinical quality will be improved through
the development and implementation of better clinical practice guidelines. The
Department of Health (DOH), through PhilHealth, will implement an
accreditation system in both public and private facilities to ensure that
PhilHealth beneficiaries are served in facilities that meet minimum healthcare
standards.

It is often said that education is key to moving people out of poverty and
breaking the cycle of intergenerational poverty among families. Furthermore, as
the economy grows and transforms its structure, acquisition and
enhancement of skills allow the workforce to seize employment opportunities
created by growth. Diversified knowledge and skills will also enable
entrepreneurs and workers to adapt to changes brought about by shifting
demands and new technologies.
Providing access to education and training for life skills and the capacity to
pursue economic opportunities is thus an investment in human capital that helps
achieve inclusive development. Table 6.2 presents the updated PDP targets
related to enhancing the knowledge and skills of the workforce.
65
This is based on DOHs Philippine Health Sector Roadmap (as of 06 February 2014).
Social development
127
Table 6.2. Revalidated results matrix (RM) on subsector outcome

B: Knowledge and skills enhanced
Indicators
Net enrolment rate increased (in % )
Kindergarten
Baseli
ne
(2010
)
57.2
Elementary
95.9
Secondary
64.7
Adjusted net enrolment rate increased (in %)

Elementary
Secondary
End-ofPlan
target
(2016)
Assumptions and
risks
100.0 Assumptions
Appropriate budget allocation
provided to the concerned
agencies.
Improved participation of
stakeholders such as
LGUs, private sector and the
community in meeting the
targets
99.0
71.0
98.5
99.0
92.5
99.0
Completion rate increased (in %)

Elementary
Secondary
83.0 Inability of households to

80.0
send pupils/students to
74.2
79.4
83.0
85.0
Achievement rate increased (in %)

Elementary
68.2
77.0
Certification rate in TVET

increased (in %)
128
Risks
72.1
75.1
Cohort survival rate increased (in %)

Elementary
Secondary
Secondary
and order concerns, natural
47.9
82.9
65.0
87.5
TVET graduates increased
1,344,371
1,383,026
Higher education graduates

increased
498,418
601,505
Higher education faculty with MA

increased (in %)
38.87
65
Higher education faculty with PhD

increased (in %)
11.09
30
HEIs withDevelopment
accredited programs
Philippine
Plan 2 011-2016 MIDTERM19.89
UPDATE
increased (in %)
National passing percentage (across
school due to poverty, peace
33.91
35
52.53
calamity and other factors
Strategic interventions will have the following objectives:

a. Provide every Filipino with access to a complete and quality basic
education and that every graduate of complete basic education is prepared
for further education and the world of work;
b. Ensure that the labor force has the competencies and life skills to
pursue economic opportunities; and
c. Ensure that graduates of higher education have competencies and highlevel skills for national development and global competitiveness.
Strategy 2: Provide complete and quality basic education to prepare

the youth for further education and the world of work
There were positive developments in terms of enrolment, but the real challenge
rests on keeping children in the school system until they finish the final year. In
terms of internal efficiency indicators, there were slight improvements in
elementary cohort survival rate or CSR (from 74.2 percent to 75.3 percent) and
completion rate or CompR (from 72.1 percent to 73.7 percent) from 2010 to
2012. The reverse is true for secondary education with a decline in CSR from
79.4 percent to 78.2 percent, and the CompR from 75.1 percent to 74.8 percent
in the same period.
As the government tries to get children to the next level and eventually
graduate, the quality of formal basic education remains a challenge as
evidenced by the results of the National Achievement Test (NAT ). The NAT
results expressed in mean percentage score (MPS) increased from 2010 to
2012 in both elementary and secondary education but are still below the PDP
targets. Elementary NAT score slightly increased from 68.2 percent in 2010 to
68.9 percent in 2012 while the secondary rate increased from 47.9 percent to
51.4 percent.
129
Table 6.3. Accomplishment (SY 2010-2011 to 2012-2013) and

targets (SY 2013-2014 and 2016) on key performance indicators for
basic education, public and private
Key
Accomplishment (in
Target
Performance
%)
indicators
SY
SY
SY
SY
End-of2010- 2011- 2012- 2013Plan
2011 2012 2013 2014
target
(2016)
Kindergarten
Net enrolment rate
(5 yrs.old)*
Elementary
57.2
74.2
77.4
79.3
100.0
Adjusted net enrolment

rate**
Net enrolment rate*
98.5
99.6
97.4
99.0
99.0
95.9
97.3
95.2
96.0
99.0
Cohort survival rate
74.2
73.5
75.3
77.0
83.0
Completion rate
72.1
71.0
73.7
75.0
83.0
68.2
66.8
68.9
71.0
77.0
99.0
Achievement rate
(NAT MPS66 )
Secondary
Adjusted net enrolment
rate***
Net enrolment rate*
92.5
89.8
90.0
93.0
64.7
64.8
64.6
65.0
71.0
Cohort survival rate
79.4
78.8
78.2
79.0
85.0
Completion rate
75.1
74.2
74.8
75.0
80.0
Achievement rate
(NAT MPS67 )
47.9
48.9
51.4
54.0
65.0
Source: Department of Education (DepEd)

*The ratio of the enrolment for the age or age group corresponding to the official school age in the
kindergarten/elementary/secondary level to the population of the same age or age group in a given
year
** Total number of 6-11 years old enrolled in any basic education level, expressed as a percentage of
6-11 population (official elementary school age)
*** Total number of 12-15 years old enrolled in any basic education level, expressed as a percentage of
12-15 population (official secondary school age)
Gains in the delivery of basic education services in terms of improving access

and addressing input gaps have been encouraging. Table 6.3 shows
accomplishments in reducing backlogs in critical resources for basic education.
Besides inputs, government also put in place massive reforms in the curricula
and structure of schooling.These include the enactment of the Kindergarten Act
of 2012 (RA 10157), providing for mandatory implementation of universal
kindergarten,
Source: National Education Testing and Research Center (NETRC). For elementary, the NAT was
administered to Grade VI in all school years
67
NAT for secondary was administered in the 2nd year from SY 2007-2011, and 4th year on SY 2011-2012
66
130
resulting in the increase of kindergarten net enrolment rate from 57.2 percent in
2010 to 77.4 percent in 2012. This was followed by another landmark
legislation, the Enhanced Basic Education Act of 2013 (RA 10533), which
institutionalizes the implementation of the K to 12 program. These highlight
the achievement of the government, particularly the Department of Education
(DepEd), in instituting critical reforms that align the countrys basic education
system with international standards and ensure better learning opportunities for
children.
Table 6.4. Backlogs (2010) and accomplishment on basic

education
critical
resources
Resource
2010
Accomplishments
s
backlog
Classrooms
66,800
Teachers
145,827
Textbooks
Seats
61.7 million
2.5 million
Toilets
135,847
66,813 classrooms constructed (as of 05

February 2014)
102,623 new teaching positions created; 43,204 kinder
volunteers and LGU-hired teachers
1:1 student to textbook ratio (as of 2012)
1:1 student to school seat ratio (as of 2012)
52,590 completed; 5,747 ongoing construction;
70,532 ongoing procurement (as of September
2013)
Source: Department of Education
To sustain the gains and accelerate efforts in basic education reforms, the
remaining years of the PDP implementation will have the following strategies:
Ensure that every Filipino has access to complete basic education

This involves: (a) creating conducive learning institutions; (b) providing
affirmative action to learners with special needs and those in special
circumstances; (c) engaging the private sector in broadening more opportunities
for basic education; and (d) using technology in expanding reach.
Ensure that every Filipino graduate of complete basic education is

prepared for higher education, employment and entrepreneurship
In line with the implementation of the K to 12 program, the government
will pursue the: (a) development of enhanced learner-centered curriculum; (b)
provision of adequate instructional materials and equipment; and (c)
improvement of quality of instruction and professional development of teachers.
Ensure effective, efficient and collaborative delivery of basic education

services
As the government gears towards full implementation of the K to 12
program, aligning and synchronizing efforts are crucial to achieve optimum use
of resources. In promoting good governance within the subsector, the
government, through the DepEd, will: (a) improve internal systems and
processes; (b) strengthen education
Social development
13
1
leadership and management and build people capacities; and (c) expand the
network of stakeholders and enhance participation in the delivery of basic
education. These will be accompanied by the proper targeting of areas,
prioritizing those with severe shortages to ensure equitable distribution of
resources and address low performance in terms of education indicators among
regions, divisions and schools.
Strategy 3: Develop workforce competencies and life skills

through TVET 68
The importance of TVET has been increasing as the economy sustains
growth and undergoes transition. Growth has opened up new employment
opportunities, creating greater expectations and prompting more people to join
the labor force and for the underemployed to seek better employment
opportunities.
In the existing labor force, many had not benefitted from good quality
education and training, falling short of the level of skills required by
employers. Thus, even as more jobs are created, unemployment and
underemployment have barely gone down because of job mismatch.
To address this situation, there is a need to develop competencies and life
skills for the current and would-be members of the labor force to enable them to
pursue economic opportunities. Strategies consist of expanding access to
quality TVET and developing workforce competencies required in key growth
areas.
There is also a need to strengthen TVET institutions in terms of
leadership, management and innovation. Strategies include implementing a good
governance system that encourages TVET institutions to meet quality
standards and to use information technology to ease access to TVET. Other
strategies are:
Strengthen the Technical Education and Skills Development Authority

(TESDA) and focus on development planning, resource allocation,
standard- setting and quality assurance
To implement this strategy, the following interventions will be pursued: (a)
push for the approval and implementation of the Rationalization Plan, which
takes into consideration the changing environment and demands of operations,
particularly at the frontlines; (b) build up the organizational capacity and
capability of TESDA continuously in line with its mandate; and (c) implement
the resource allocation mandate of TESDA under the framework of interagency
coordination.
Encourage LGUs and industries to directly participate in the

National Technical
Education
and development
Skills Development programs
Plan (NTESDP) 2011-2016
delivery
of TVET
skills
68
132
This will be done through: (a) designing and developing capabilitybuilding

LGUs UPDATE
in establishing, managing and implementing TVET
Plan programs
2 011-2016 for
MIDTERM
programs;
(b) providing technical assistance to LGUs in the area of trainers

development, curriculum and learning materials development, center
administration, and assessment and certification; (c) developing viable
models and partnership arrangements for LGU-led TVET implementation
in the localities; and (d) mobilizing multi-stakeholder support and
participation in community-based skills development programs. Priority will be
given to provinces with high magnitude of poor families.
Expand enterprise-based training (EBT)

This will involve the following measures: (a) strengthening and promoting
EBT schemes (e.g., dual training system, apprenticeship and learnership
and on- the-job training as pre-employment modalities); (b) encouraging
training in the workplace for skills upgrading, retooling and multi-skilling,
and other skills development interventions to improve productivity and promote
lifelong learning;
(c) pushing for the expansion of incentives for the private sector investing in
TVET and making availment easier; (d) making available incentives such as
scholarships and other assistance for EBT participating industries and
technical-vocational institutions (TVIs); and (e) tapping the corporate social
responsibility programs of industry/private sector for TVET.
Train agricultural w orkers to develop new skills

To reduce under-employment in agriculture, workers in the sector need to
be trained on value-adding, agribusiness development and value-chain
management. This will provide them opportunities to diversify their sources of
income and link with industry and services.
Strategy 4: Make higher education competitive and responsive to

national development goals
As in TVET, higher education has increasingly gained significance with
growth and economic restructuring, which fuel demand for a high quality,
competitive labor force.
Employers have
difficulty filling-up
their job
vacancies
because of
shortage of
applicants with
the right
competencies and
qualifications for
the job.
The countrys labor market, however, is still faced with issues on the
quality of graduates, as shown by the increasing skills gap and the decreasing
number of passers in the Professional Regulation Commission (PRC)
licensure examinations. W hile the national passing rate in licensure
examinations for all takers showed an increasing trend from 35.9 percent in
2011 to 42.6 percent in 2012, the rate still fell below the 2012 target of 47.0
percent. Despite large- scale unemployment, employers have difficulty
filling-up their job vacancies because of shortage of applicants with the right
competencies and qualifications for the job.69 Thus, in order to enhance
the quality, productivity and global competitiveness of the Filipino
workforce, it is imperative to enhance the
69
Survey conducted by the Bureau of Labor and Employment Statistics, January 2007-January 2008
133
relevance of education and training to the needs of the labor market. Improving
the performance of higher education students in licensure examinations across
disciplines will also be prioritized.
Strategies to improve higher education outcomes include the following:
Support the cross-mobility of students betw een higher education and

middle- level skills development
This will be done through the Philippines Q ualification Framework (PQF),
which was institutionalized through Executive Order 83 in 2012. The PQF
aims to (a) adopt national standards and levels for outcomes of education;
(b) support the development and maintenance of pathways and equivalencies,
which provide access to qualifications and assist people to move easily and
readily between the different education and training sectors and between these
sectors and the labor market; and (c) align the PQF with international
qualifications framework to support the national and international mobility of
workers through increased recognition of the value and comparability of
Philippine qualifications.
Expand EBT
This will be pursued by strengthening the academe-industry linkages to
address the problem of mismatch between competencies and jobs on the one
hand, and to encourage research and development (R&D) collaboration
between the two sectors, on the other.
Align higher education institution (HEI) programs with

national development goals and industry needs
This will be pursued by (a) upgrading and aligning the curricula with
international standards; and (b) identification of Centers of Excellence (COE)
and Centers of Development (COD) capable of producing globally
competitive graduates and cutting-edge research outputs relevant to the
needs of the disciplines and the countrys development objectives.
Fast-track the restructuring of public HEIs

This is to improve efficiency in the delivery of quality programs,minimize
duplication, and promote harmonization and complementation of program
standards between and among public and private H EIs. This could be done
through amalgamation of state universities and colleges into Regional University
Systems and development of specialized institutions.
Upgrade higher education quality standards to internationally

comparable levels and strengthen quality assurance systems
This will be implemented through the continuing revision of programs,
policies, standards along learning competency-based standards or learning
outcomesa
134
requirement for the comparability of undergraduate and graduate programs

in Asia Pacific and for referencing to the Association of Southeast Asian
Nations (ASEAN) Reference Q ualifications Framework when the ASEAN
becomes an economic community in December 2015.
Sector outcome: Vulnerabilities reduced

Beyond developing human capabilities, equalizing
requires reducing vulnerabilities to various types of risks.
opportunities
also
Shocks worsen human deprivation. Shocks that can adversely affect anyone
are those produced by natural disasters, conflict, illness, changing demographic
profile and economic instability. W hile some can weather the shocks, there are a
lot more who cannot, and they constitute the vulnerable population.
The ability to protect people against crises and to enable them to rise from
their impact is essential for preventing poor people from plunging deeper into
poverty and the vulnerable ones from falling into poverty. After all, even
better-off households can join the ranks of the poor when a member, for
example, falls ill or becomes physically unfit to work.
The need to reduce vulnerabilities has become even more important as
weather- related calamities are expected to become more frequent. Moreover, as
the economy undergoes a restructuring process, employment and income
become volatile as employers and entrepreneurs adjust to changing markets.
Poorer households will need to have fallback options when they lose income or
when they move from one job to another.
Vulnerability is also related to fast urbanization. As people seek opportunities,
they often move to cities where there are more employment
opportunities.Unfortunately, many end up as informal settlers and some set up
homes in dangerous areas. To gain access to development opportunities,
employable household members need assistance in getting more secure shelters
located in areas that do not entail huge transport cost to get to work places.
As the economy
undergoes a
restructuring
process,
employment
and income become
volatile as
employers and
entrepreneurs
adjust to changing
markets.
Thus, a strategy to reduce vulnerabilities entails expanding social protection

and providing more secure shelter, particularly in Category 3 provinces that are
highly vulnerable and prone to multiple hazards.
135
Table 6.5. Revalidated results matrix (RM) on sector outcome

on vulnerabilities reduced: Subsector outcomes C (social
protection expanded) and D (access to secure shelter expanded)
Indicators
Baseli
ne
(2010
)
End-ofPlan
target
(2016)

Percentage of poor
88.7
100
families covered
by PhilHealth as
identified under the
NHTS-PR and LGU
Sponsored Program
(in %)
Assumptions and
risks
Assumption:
Coordination between local
governments, DSWD, and
PhilHealth in providing
coverage
Risks:
Lack of local funding and
competing LGU priorities
Low utilization of coverage

Percentage of housing
22.5
25.84
Assumption:
targets met (in %)
Passage of the Department of
Housing and Urban
Development (DHUD) Bill
Share of socialized
housing to housing
target improved
56.78
77.77
(in %)
Subsector outcome C: Social
Risks:
Budgetary constraints
Natural and man-made
disasters affecting housing
construction
Unavailability of suitable
andexpanded
affordable land for
protection
socialized housing
Social protection enables people to manage and cope with risks, including
risks associated with investment that entail forgoing income in the short term but
could yield benefits in the long term. As such, it significantly contributes to
inclusive development and poverty reduction.
For the past three years of the Aquino administration, the government has
been keen on continuing and putting in place different social protection
mechanisms. These mechanisms cover risks faced by poor households
identified under the NH TS-PR, poor senior citizens, groups vulnerable to
natural and man-made socioeconomic shocks, labor force members at risk of
losing employment, as well as overseas Filipino workers (OFW ).
136
Table 6.6 shows the mechanisms that respond to various risks and the extent
to which targets were reached. To mitigate individual and life-cycle risks, two
major programs were implemented, namely, the Sponsored Program under the
NH IP and the social pension for poor senior citizens. An increase in the
coverage of the Sponsored Program was seen from 2011 to 2012. However,
the government pension for indigent senior citizens, which only covers
those 77 years old and above, has slightly fallen short of its target 14.85 versus
15.3 percent.
Based on the assessment, the country has made significant strides in
protecting the poor, the vulnerable, and the marginalized70 from various risks and
shocks. But much is still to be done not only in fully protecting them but also in
enabling them to adjust to shocks. The major challenges faced by the sector
include the following:
Lack of a targeting mechanism that identifies the vulnerable, as well as
the risks and shocks that they confront;
Need to strengthen capability of LGUs to implement disaster risk
reduction strategies and deliver social protection services;
Limited number of poor and vulnerable beneficiaries
nationwide implementation of programs and projects;
despite
Increasing vulnerability of OFWs and migrant workers; and

Limited social protection interventions for the following sectors:
displaced and repatriated workers; informal sector; PWD; orphans; and
IPs/indigenous cultural communities.
Marginalized people are those groups in society who, for reasons of poverty, geographical
inaccessibility, culture, language, religion, age, gender, migrant status or other disadvantage, have not
benefited from health, education, employment and other opportunities, and who are relegated to the sidelines
of political persuasion, social negotiation, and economic bargaining (IPPF). The marginalized includes
farmers and landless rural workers; artisanal fisher folk; urban poor; indigenous people; workers in the
informal sector; migrant workers; women; children; youth; senior citizens; and persons with disabilities.
70
137
Table 6.6. Accomplishment (2011-2012) and targets (2011, 2012 and 2016) on social protection
indicators
Indicator
Baselin
2011
2012
End-ofe
Target
Actual
Target
Actual Plan
target
(2016)
1. Social insurances that seek to mitigate individual and life cycle risks to vulnerable households (HH) expanded
Percentage of poor
14%
75%
81.5%
80%
88.7%
100%
families covered by
(3.76 M)
(4.24 M)
(4.61 M)
PhilHealth as identified
as of June
as of Dec
as of Dec
under the NHTS-PR and
2011
2011
2012
LGU Sponsored Program
Proportion of poor senior
(New
13.8%
13.3%
15.3%
14.85%
citizens covered by
Indicator)
social pension
2. Safety nets provided to vulnerable groups during socioeconomic shocks (man-made and natural) improved and strengthened
Coverage of emergency
2,150 jobs
Depends on
10,201 jobs
Depends on
17,054 jobs
Depends on
employment programs
(Emergency
the number
(Emergency
the number
(Emergency
the number
during crisis (economic,
employment
of affected
employment of affected
employment of affected
financial, disaster-related)
Department
individuals
DOLE)
individuals
DOLE)
individuals
of Labor and
Employment or
DOLE) (2010)
Proportion of individuals
(New
100%
63.3 %
100%
62.4%
100%
affected by natural and
Indicator)
man-made calamities
provided relief assistance
Coverage of Community1,490,173
1,238,225
2,949,939
2,324,311
1 million CBEP
Based Employment
jobs annually
Program (CBEP)
3. Social welfare programs to protect the poor and vulnerable groups from risks enhanced
Coverage of Conditional
1.0 million
2.3
2.345 million
3.0 million
3.01 million
2.9 million71
Cash Transfer (CCT)
(2010)
million
(101.9%)
(100.33%)
OFW membership to
1,355,311
1,251,394
1,302,071
1,376,534
1,304,197
100%
OWWAs, disability, and
(2010)
(104%)
(95%)
death benefits
By 2016, the number of beneficiaries of the PantawidPamilya will decrease as some of the previous sets of
beneficiaries have already graduated from the program.
71
138
Strategy 5: Enhance the targeting system by identifying the near

poor/ vulnerable and knowing their needs
W hile the current targeting system of the government captures the poor, it
does not capture those that are just above the poverty line and those who
are most vulnerable to risks. Anti-poverty and social protection programs and
projects are able to reach only a limited number of poor and vulnerable
beneficiaries despite nationwide implementation.
To address this challenge, there is a need to revisit and expand the NH TSPR database to cover those who are vulnerable to different types of risks or
shocks. Such expansion will enable the government to identify and locate the
vulnerable groups and to determine the risks and shocks they confront so that
appropriate and more responsive social protection programs may be
developed. Closer attention will be paid to OFWs, displaced and expatriated
workers, those in the informal sector, PWD, and orphans.
Strategy 6: Enhance social protection and insurance for vulnerable

groups
Coverage of social protection programs and social insurance systems will
be expanded and made more responsive to different types or sources of
vulnerabilities such as the growing number of children in hazardous labor.
Increase coverage of social insurance

Despite increased enrolment in PhilHealth, particularly the Sponsored
Program, members actual use of the health insurance package remains low, as
indicated by the benefit delivery ratio of just 8 percent. Pantawid Pamilya
Program beneficiaries enrolled in PhilHealth are unable to fully utilize health
care services, especially the indigent members who have low awareness of their
PhilHealth benefits. To address low utilization rate, there is a need to improve
management and information system in PhilHealth that affects the pace of
processing of claims. There is also a need to find out the reasons for the
inability of vulnerable groups to pay their premiums. Moreover, the coverage
of social pension for indigent senior citizens, which at present covers only
the 77 years old and up and indigent senior citizens, needs to be fast-tracked to
cover those aged 60 years and above.
Expand social safety nets

Capacities of LGUs shall be enhanced to provide immediate response in
emergency situations to include a menu of tested safety net programs
especially during calamities and disasters. Options for funding support will also
be explored.
Sustain and enhance social welfare programs

These will involve enhancing programs such as the Pantawid Pamilya
Program to enable its beneficiaries to be more self-sufficient when they
graduate from the program. LGUs will be enjoined and provided with capacity- Social development
building support to
139
effectively design and implement social welfare programs particularly to

address violence against women, to provide social pension for indigent senior
citizens, and to serve persons with disabilities.
Strategy 7: Set up convergence mechanisms at all levels

The mechanism will depict the multi-level and multi-program
convergence, where various types of convergence will be implemented
depending on the social protection needs of target areas or sectors.
Implement the social protection framework and strategy

Implementation of social protection programs will thus be guided by the
Social Protection Operational Framework adopted in 2012. The Framework
will serve as blueprint for policymakers, planners and program implementers on
the specific approaches and strategic interventions best suited to be carried out
by responsible agencies on social protection to cover specific target groups
and vulnerabilities. To empower and capacitate LGUs, civil society
organizations, and
government agencies implementing social protection
programs and projects, a Social Protection Handbook will also be developed
to serve as primary reference in planning, implementing, monitoring and
evaluating social protection interventions.
The Vulnerability and Adaptation Manual for Social Protection, which is part
of the Handbook focusing on risk and vulnerability assessment, will be
formulated as a guide for local development workers from the LGUs,
government agencies and NGOs in assessing risks and vulnerabilities and
identifying adaptive strategies for social protection in the communities.
Social protection programs and projects will be institutionalized to become
part of the regular program and budget of the government at different levels.
LGUs implementing social protection convergent programs will already start
including them in their own plans and budgets as this will initially synchronize
and harmonize program implementation/operations across sectors and
institutions. The menu on bottom-up budgeting will be the take-off for this
convergence.
Regularly monitor and assess convergent programs at various levels

Institutionalizing the Social Protection Framework will require a systemic
review of how the various objectives and indicators are being achieved. A
unified and user-friendly monitoring and evaluation system based on agreed
common data sets shall be designed and used by agencies implementing social
protection programs.72
72
140
From the Report of the PDF Working Group on MDGs and Social Progress (February 2013)
Subsector
expanded
outcome
D:
Access
to
secure
shelter
Shelter is associated with vulnerability and is an important dimension of social

development. Urban slums and informal settlements have grown rapidly
as many Filipinos from rural areas go to urban areas to be close to
employment opportunities or to have access to services. O wing to poverty, they
live in shelters to which they have no legal rights to occupy or in areas prone to
disasters just to survive until they find decent and more regular employment.
Having no secure shelters or properties, they face risks of being evicted or of
falling victims to natural and man-made disasters.
Providing secure shelter will thus form part of the strategy for
inclusive development and poverty reduction aimed at reducing vulnerabilities
and enhancing opportunities. In particular, the housing sector will aim to
increase the number of Filipino households with access to adequate housing.
In 2011 to 2012, the National Shelter Program (NSP) delivered direct housing
assistance to 222,167 households, which is only 51 percent of the Plan target
of 435,000 households. Socialized housing units accounted for 69 percent while
the share of low-cost housing units was 31 percent of total housing delivery. The
actual value of housing assistance in 2011 to 2012 amounted to PhP92.1
billion, way below the proposed budget of PhP134.052 billion (Table 6.7).
Key
Targ
Actual
Table 6.7. Targets and accomplishment on National Shelter Program, 2011performance
et
accomplishment
2012
indicators
Househol PhP
Househol PhP
ds
billion
ds
billion
Socialized housing
(<PhP450,000)
253,247
NHA housing production
140,000
SHFC Community-Driven
Shelter Assistance Program
HDMF end-user
financing
Low-cost housing
(>PhP450,000-PhP3
million)
HDMF end-user
financing
55.052
153,696
35.668
41.387
103,093
25.877
45,000
2.565
25,162
68,247*
11.100
25,441
8.260
181,753
79.000
68,471
56.439
181,753*
79.000
67,753
55.094
LBP end-user financing
606
Source: Housing and Urban Development Coordinating Council

(HUDCC)
SSS end-user financing
Total Housing Assistance
1.531
435,000
134.052
112
222,167
1.207
0.138
92.107
14
1
To encourage greater private sector participation in housing construction

and finance, housing loans are protected from credit default risk through the
Home Guaranty Corporation (HGC) guaranty. From 2011 to 2012, the HGC
guaranteed PhP70.328 billion worth of invested funds from private developers
and financing institutions covering 45,643 households (Table 6.8). D ue diligence
and post-audit of approved guaranty lines were conducted to ensure that
guaranteed housing loans are used for home purchase or construction. The
National Home Mortgage Finance Corporation (NHMFC) also continued to
purchase mortgages using proceeds from the issuance of Bahay Bonds. For the
2011-2012 period, NHMFC purchased loans covering 8,336 households worth
PhP1.619 billion.
Table 6.8. Targets and accomplishment on indirect housing assistance
Key performance
Actual
through
private funds, 2011-2012 Target
indicators
accomplishment
Househol Househol PhP
ds
ds
billion
HGC New Guaranty Enrollment
Socialized Housing
Low-Cost Housing
Medium Housing
(>PhP3 million-PhP4 million)
Open Housing
(>PhP4 million-PhP6 million)
NHMFC purchase of mortgages
80,779
27,477
42,832
7,237
45,643
6,350
34,511
2,285
70.33
1.035
45.469
5.758
3,233
2,497
18.066
4,132
8,336
1.619
Source: HGC, NHMFC
D ue to rapid urbanization and rural-urban migration, the housing need continues

to be enormous. The updated housing needs are now estimated at 5,556,463
for 2011 to 2016, including backlogs from previous years. Among the
regions, the growth areas in CALABARZON, Central Luzon and NCR
account for almost a third of the projected housing need for 2011 to 2016 (Table
6.9).
For 2014-2016, the National Shelter Program seeks to deliver 510,683 units of
housing assistance focusing on vulnerable households with an investment cost
of PhP203.31 billion (breakdown in Table 6.10) based on the resource
projections of key shelter agencies.
142
Table 6.9. Housing needs estimates by region, 2011-2016 (in number of

Incremental
households)
Initial
Regio
ns
Philippines
NCR
needs
(as of
Jan
1,
1,225,343
2011)
292,234
housing need 2013
20
11
688,318
201
2
701,396
56,087
57,153
58,239
59,346
201
6
756,241
Tot
al
5,556,463
60,473
61,622
645,154
714,723 2014
728,3022015742,140
CAR
10,861
9,060
9,233
9,408
9,587
9,769
9,954
67,872
Region I
55,312
36,135
36,822
37,521
38,234
38,961
39,701
282,686
Region II
30,323
Region III
101,441
CALABARZON
25,964
63,151
26,457
26,960
27,472
27,994
28,526
64,351
65,574
66,820
68,089
69,383
193,696
498,809
135,068
82,250
83,813
85,406
87,028
88,682
90,367
652,614
MIMAROPA
28,931
27,491
28,013
28,546
29,088
29,641
30,204
201,914
Region V
61,738
46,599
47,484
48,386
49,305
50,242
56,479
57,552
58,646
59,760
60,896
434,185
Region VI
85,425
55,426
Region VII
79,815
50,248
Region VIII
41,081
37,380
51,203
31,411
51,197
354,950
52,176
53,167
54,177
55,207
395,993
38,090
38,814
39,551
40,303
41,069
276,288
32,007
32,615
33,235
33,867
34,510
235,967
36,019
36,703
37,401
38,836
274,512
46,298
331,255
Region IX
38,322
Region X
52,094
35,347
Region XI
66,099
42,139
42,940
43,756
44,587
45,435
Region XII
54,442
36,344
37,035
37,739
38,456
39,186
39,931
283,133
Caraga
29,572
23,448
23,894
24,347
24,810
25,281
174,362
ARMM
62,584
24,340
48,370
25,274
25,754
26,243
236,451
23,011
23,886
38,111
Source: HUDCC
Note: This excludes the totally damaged houses resulting from natural and man-made
disasters and calamities (e.g., Bohol earthquake, Zamboanga siege and Typhoon
Yolanda).
Table 6.10. Updated housing assistance targets, 20142016

Progr
am
Socialized housing
NHA production
2014 Ph
Househo
P
lds
2015billi
9 7,368
20.214
on
Househo
lds
133,625
63,331
10.988
9 4, 30 0
SHFC Community
Driven Shelter
Assistance
Program
2 2, 6 00
4.67
HDMF socialized
end-user financing
11,437
Low-cost housing:
HDMF end-user
financing
Total
201
6
Ph
Ph
Househo
P
P
lds
billi
30.193
151,988 billi
26.779
on
on
20. 242
107,367
16.210
27 ,6 00
5.28
32 ,600
5.78
4.556
11,72 5
4.671
12,021
4.78 9
4 1,691
4 1.155
42, 559
42.033
43 ,45 2
42. 936
139,059
6 1.369
176,184
72.226
195,440
69.715
Source:
HUDCC
143
H G C also targets to guaranty 68,191 more households for 2014-2016, while

NHMFC seeks to purchase loans covering 2,750 households worth
PhP5.5 billion (Table 6.11).
Table 6.11. Updated indirect housing assistance targets, 20142016 Funds
201
201
Mobilizat
ion
Tot
al
Ph
Ph
P
P
PhP Househol billio Househol billio Househol billio
billio
n
ds
n
ds
n
ds
n
PhP
(Accounts)
Households
HGC New Guaranty
Enrollment
NHMFC Housing
Loan Receivable
Source: HUDCC
Purchase Program
201
6
21,631 34.609
1,000
2.000
22,712
750
36.34
1.50
23,848
38.157
68,191
109.106
1,000
2.000
2,750
5.500
The housing sector will focus on the following strategic thrusts:
Strategy 8: Provide a menu of housing options/assistance based on

the needs of intended housing beneficiaries
In particular, programs will focus on:
Addressing the needs of informal settler families (ISFs), through upgrading
of structures in slums and development of relocation sites for those in danger
areas. These include ISFs in waterways and other danger areas in Metro
Manila, ISFs affected by infrastructure projects, and ISFs primarily in
privately owned lots;
Providing either temporary or permanent alternative shelters or assistance in
rebuilding the homes of victims of calamities such as typhoons,
earthquakes, fire, and armed conflict. Priority will be given to those in
the 28 poorest provinces that are vulnerable to multiple hazards; and
Meeting growing demand for housing from low-salaried employees by
directly constructing and financing low-cost and socialized housing
projects and by encouraging greater private sector participation in housing.
Strategy 9: Build strong partnerships with stakeholders, particularly

LGUs, to ensure development of sustainable communities
In partnership with various agencies and LGUs, housing agencies will scale
up implementation of pro-poor, community-led housing/shelter security
programs. In October 2012, the Housing and Land Use Regulatory Board
(HLURB) approved the implementing rules and regulations (IRR) for
Section 18 of the Urban Development and Housing Act of 1992 (RA
7279) through Board Resolution
144
890. The resolution requires developers of proposed residential subdivision

projects to develop an area for socialized housing through balanced housing
development, slum upgrading, joint venture with LGUs, participation in
the Community Mortgage Program, and development of new settlements.
To implement the resolution, which took effect on 1 January 2013,
memorandum
circulars
were issued to provide uniform application,
interpretation, usage and implementation of the different manners of compliance.
For 2014 to 2016, the H LURB will continue to extend technical assistance in
the formulation/updating of comprehensive land use plans (CLUPs) to 652
LGUs composed of 101 cities and 551 municipalities. By 2016, all 1,649 LGUs
will have updated CLUPs.
Strategy 10: Pursue the policy agenda for socialized housing

The H LURB will continue its orientation of homeowner associations under
the Magna Carta for Homeowners Associations (RA 9904) and review of its
IRR. The agency will also review existing IRRs on the Subdivision and
Condominium Buyers Protective Decree (PD 957) and the act authorizing
H LURB to establish standards and technical requirements for economic and
socialized housing projects (BP 220), to include green technology and other
revisions on national standards for housing projects. Another important project is
the International Organization for Standardization (ISO) certification of the
core processes, which include planning assistance, registration and adjudication
nationwide to improve delivery of service.
The amendment of Section 18 of the Urban Development and Housing Act
will be pursued to qualify vertical development as eligible in compliance
with the balanced housing development requirement. The policy change works
in tandem with the ongoing technical assistance to the Social Housing Finance
Corporation on the scaling up of the Community Mortgage Program through
Medium-Rise Buildings and the citywide approach to urban planning and
development. The amendment will maximize the utilization of prime land
accessible to social and economic opportunities.
The passage of the Department of Housing and Urban Development (DHUD)
bill is expected to provide a holistic approach to sustainable urban
development. The pursuit of sustainable urban development will entail the
adherence to a systematic approach to planning from the preparation of the
CLUPs and local shelter plans as well as the creation and operation of local
housing boards in the LGUs that will be guided at the national level by the
DH UD.
145
III. PLAN IMPLEMENTATION

The progress of Plan implementation, using the RMs (Tables 6.1, 6.2 and
6.5) and the annual target indicator matrix in Table 6.12 below, will be
monitored through the Social Development Committee (SDC), an interagency
committee under the National Economic and Development Authority
(NEDA) Board, as well as through the Human Development and Poverty
Reduction Cabinet Cluster (HDPRC). The following are the lead agencies
according to the four subsector outcomes: DOH, DepEd, Department of
Social Welfare and Development (DSWD) and H UDCC.
Table 6.12. Annual target indicator matrix on social development, 2013-2016
Indicators
Annual Plan targets
Means
of
2013
2014
2015
2016
verificat
alth and nutrition status improved
ion
Subsector outcome A: He
Maternal mortality ratio
per 100,000 live births
decreased
Infant mortality rate
per 1,000 live births
decreased (in %)
Under-five mortality rate per
1,000 live births decreased
(in %)
Prevalence of underweight
children under five
decreased (in %)
Contraceptive prevalence
rate (all methods) increased
(in %)
Proportion of births
attended by health
professional increased
(in %)
70
61
52
50
21
20
19
17
26.7
25.5
13.7
12.7
63
65
29.2
Agency
responsi
ble
DOH
NCC
DOH
90
90
Malaria mortality rate per

100,000 population
decreased (in %)
80
85
Malaria morbidity rate per

100,000 population
decreased (in %)
<0.03
<0.03
Proportion of births
delivered in facility
increased (in %)
TB case detection rate (all

forms) increased (in %)
DOH
6.6
6.6
HIV prevalence decreased
146
85
85
Less n 1% of
tha ation
Indicators
Annual Plan
targets (in %)
2013
2014
Proportion of population
Proportion of population with
access to safe water
increased (HH in %)
20
15
>92
National Health Insurance

Program (NHIP) coverage
rate increased (in %)
Proportion of households
45.6
41.4
with per capita intake below
Net enrolment
rate increased (in % )
100%
dietary energy
requirement
decreased
(in
Kindergarten
79.3
89.7
%)
37.1
32.8
100
100
99
97
98
Secondary
65
68
70
Secondary
93
95
>92
95
96
99
88
90
Elementary
Adjusted net enrolment rate increased (in %)

Elementary
99
Agency
responsi
ble
Annual Poverty
Indicators Survey
DOH
2016
87
with access to sanitary toilet

increased (HH in %)
Means
of
verificat
ion
(APIS)
Program data
National Nutrition
Survey of FNRI
PhilHealth
National Nutrition
Council
71
99
99
97
99
Basic Education
Completion rate increased (in %)
Information System
Elementary
75
78
81
83
Secondary
75
76
78
80
Cohort survival rate increased (in %)

Elementary
77
79
81
83
81
83
85
73
75
77
57
62
65
87
87.5
Secondary
Achievement rate increased (in %)
Elementary
Secondary
Certification rate in TVET
increased (in %)
79
71
54
86
86.5
Deped
(BEIS)
Social development
Agency Report
TESDA
147
Indicators
2013
Annual Plan targets

2014
2015
2016
Higher education
535,574
567,531
584,474
graduates increased
Higher education faculty
50
55
60
with MA increased (in %)
Higher education faculty with
16
20
25
PhD increased (in %)
HEIs with accredited
26
29
32
programs increased (in %)
National passing
48.39
49.72
50.94
percentage (across
disciplines) in licensure
exams increased (in %)
Percentage of poor families
85%
90%
95%
covered by PhilHealth as
identified under the NHTSPR and LGU Sponsored
Program (in %)
Percentage of housing
21.45
19.09
23.74
targets met (in %)
Share of socialized housing
74.01
70.02
75.84
to housing target improved
(in %)
148
Means
of
verificat
ion
Agency
responsi
ble
Agency Report
CHED
100%
Program Data
PhilHealth
25.84
Key shelter
agency reports
HUDCC
601,505
65
30
35
52.53
77.77
NHA, SHFC,
HDMF
Goo
g
d overnan
and
ce the
of
rule
law
I. INTRODUCTION
Transforming the economy requires transforming institutions at the same
time. Institutions need to transform themselves to meet the demands of a more
complex economy and a better informed, more sophisticated citizenry. Even
well-crafted plans cannot achieve goals without having capable institutions to
execute them; even good policies will not work if these cannot be enforced by
credible institutions.
The Philippine Development Plan (PDP) for 2011-2016 outlined strategies
aimed at increasing the responsiveness of government, strengthening
democratic institutions, and, importantly, rebuilding peoples trust in
government.
Government initiatives have revolved around the Presidents
determined commitment to fight corruption and rebuild public institutions so
that these are capable of serving the majority.
II.ASSESSMENT
The past three years saw improvements in governance. From 2010 to 2012,
the percentile ranking of the Philippines in five out of the six dimensions
of the Worldwide Governance Indicators (WGI) 73 showed marked
improvements in the control of corruption, political stability and regulatory
quality, as well as slight improvements in rule of law and government
effectiveness.
There have also been substantial improvements in the Philippine ranking in
the Ease of Doing Business Survey Index74 and Global Competitiveness
Index,75 particularly in terms of perceptions on enforcing contracts, efficiency of
the judicial system/legal framework in settling commercial disputes, and the
effectiveness of existing anti-monopoly policy.
The WGI is a research dataset summarizing the views on the quality of governance provided by a large number
of enterprise, citizen and expert survey respondents in industrial and developing countries. These data are
gathered from a number of survey institutes, think tanks, non-governmental organizations, international
organizations, and private sector firms. The WGI is a research project of the World Bank since 1996 and covers
211 countries.
74
The World Bank and International Finance Corporation, Doing Business 2011, 2012, 2013 (Washington DC:
The International Bank for Reconstruction and Development / The World Bank, 2011, 2012, 2013).
75
Klaus Schwab, Global Competitiveness Report, 2010-2011, 2011-2012, and 2012-2013 (Geneva:
World
Economic Forum, 2010, 2011, 2013).
73
150
Figure 7.1. Results framework on good governance and the rule of

law
employment created
Goals
Intermediate
goals
Rapid and sustained

economic growth
achieved
Sector outcome
Subsector outcomes
Equal development
opportunities
achieved
Effective and efficient

governance achieved
Transparency
citizens participation
and accountability
increased
Rule of law
strengthened
Table 7.1. Worldwide Governance Indicators, 20102012

Voice &
Political Governm
Count
Accountab Stability ent
ry
ility
Effective
2010
ness
2010
2012
Indonesia
2012
2010
20.75
Malaysia
2012
27.49
47.87
Philippines
Singapore
Thailand
Vietnam
51.18
33.65
37.91
48.34
47.87
40.76
54.03
51.89
44 .55
5.19
14.69
89.62
96.68
Regulat
ory
Quality
2010
2012
37.80
43.06
47.85
4 4. 0 2
70 .81
69.86
82.78
80.38
4 4. 98
51.67
55.50
57.89
2012
Control
of
Corrupti
on
2010
2012
31.75
34.12
25.24
28.71
65.88
65.88
62.86
65.55
Law
2010
33.65
36.49
98. 09
100.00
100.00 99.52
Rule of
9 2.89
9.43
Table 7.2 Global ranking of the Philippines
in governance indices, 2010- 95.73
12.80
32.23
56.4 6
62.20
2012
Survey/Indicator76
2010
2011
201249.29
37.44
50 .94
Ease of Doing Business Survey Index
55.92
8.53
Enforcing contracts (judicial
9.48 systems efficiency
in resolving commercial disputes)
57.89
60.77
45.93
4 4.118/139
50
50.24
28.23
118/14227.27 112/14434.60
37.91
22.38
33.49
98.57
9 7.13
48.10
46. 89
31.43
35.41
Global Competitiveness Index

Efficiency of the legal framework in settling
disputes of private businesses
Effectiveness of anti-monopoly policy
122/139
115/142
107/144
92/139
98/142
84/144
Source: Doing Business, 2010, 2011, 2012; Global Competitiveness Report, 20102011,
2011-2012, 2012-2013.
76
The second number indicates the number of countries included in the survey.
15
1
Importantly, the administrations commitment to daang matuwid has

renewed the peoples trust in government as it relentlessly pursued high-profile
graft and corruption cases involving high government officials. Increased
peoples trust was evidenced by the consistently high satisfaction ratings of the
President based on the regular surveys of the Social Weather Station (SWS)
and Pulse Asia. Perception about the prevalence of corruption has improved
considerably. In the 2012 enterprise survey of SWS done in seven cities, only
42 percent of the respondents compared with 64 percent in 2009--perceived
that there is a lot of corruption in the public sector. Further, both the
enterprises (73%) and general public (64%) perceived that the degree of graft
and corruption is now less compared with the previous administration.
Despite significant progress in governance, sustaining the gains remains a
challenge for these to have a lasting impact on the peoples welfare. This
chapter builds on these gains and sharpens strategies to address challenges in
governance and rule of law.

To gauge the performance on the strategies formulated, a results matrix (RM)
has been prepared separately. The revalidated RM contains worldwide
indicators and indices for good governance and rule of law, like the WGI and
Open Budget Index (OBI), as well as targets/indicators from national
government agencies (NGAs). Table 7.3 shows the revalidated RM at the level
of subsector outcomes.
Table 7.3. Revalidated results matrix (RM) on good
Indicators
Baseline
governance and the rule of law
(2010)
Subsector outcome A: Transparency, citizens participation and
accountability increased
Percentile rank in the WGI-Voice and
48.34
Accountability indicator improved
Percentile rank in WGI-Government
55.50
Effectiveness indicator improved
Percentile rank in WGI-Control of
22.38
Corruption indicator improved
Percentile rank in the WGI-Rule of
33.65
Law indicator improved
Percentile rank in WGI-Regulatory
44.98
Quality indicator improved
152
End-ofPlan
target
(2016)
_>50.00
>_70.00
>_60.00
>_60.00
>_70.00

Rapid and sustained growth that will redound to reduction in poverty
and generation of quality employment requires effective and efficient
governance. To this end, increasing transparency, citizens participation, and
accountability, and strengthening the rule of law are of strategic importance
(Figure 7.2).
Figure 7.2 Strategic framework on good governance and the rule of law
Effective and efficient
governance achieved
Sector outcome
Subsector outcomes
Transparency,
citizens participation
and accountability
increased
1.Enhancing public
access to information
2.Fully engaging
and
empowering
the citizenry
Strategies
Rule of law
strengthened
5.Improving
administration of
justice
6. Enhancing
economic justice
3.Strengthening
performance
management
and
accountability
measures
4.Intensifying anticorruption efforts
Opening access to information and establishing venues for participation on

various dimensions of governance empowers the citizenry. On the other hand,
government needs to ensure high-quality, efficient, accountable, and accessible
delivery of public services. Citizens, especially those already in dire situations,
need to be spared from burdensome requirements and processes in accessing
public services. Intensifying anti-corruption efforts is likewise important in
earning citizens trust.
Effective and efficient governance requires demonstration of the rule of
law. Rule of law is particularly critical in promoting equality and fairness
in the administration of justice to protect the poor and vulnerable on the one
hand, and create an environment conducive to economic development on
the other hand. This involves, among others, (a) enhancing access by the poor
to law enforcement and legal assistance; (b) ensuring equal opportunity for
businesses through effective regulation against monopolistic practices; (c) just
and efficient resolution of commercial disputes, including contractual obligations
and property rights; and
(d) collection of taxes in accordance with the law and economic benefits.
Gains and lessons from the past three years, together with an assessment
of challenges ahead, have informed the strategies to sustain and fine-tune
governance reforms to ensure their irreversibility.
153
Subsector outcome A: Transparency, citizens

participation and accountability increased
Good governance requires empowering citizens to participate while also
making government accountable for decisions and actions.
Strategy 1: Enhancing public access to information

Transparency, by virtue, is a precursor for accountability and for
citizens engagement. Despite efforts to make public information more
transparent, particularly national and local plans and budgets, the challenge of
accessibility and usability of these disclosed information remains. An even
greater challenge is the absence of a law that will institutionalize public
access to information. There is a need to provide uniform, clear, and speedy
procedures for accessing information on all government transactions.
To enhance access to information, strategies consist of the following:
Improving fiscal transparency;
Progressively adopting open data standards;
Improving access to information on local government operations; and
Ensuring compliance with the government procurement.
Table 7.4 presents the updated targets on enhancing access to information.
Improving fiscal transparency

Reform programs that promote transparency will be continued and a new
face of the budget that links performance and budget will be adopted. Starting
2013, the Executive will submit a performance-based budget, which will present
budget allocations in terms of expected outputs and outcomes to be delivered by
agencies. This will allow for better performance tracking and evaluation.
Full compliance by national government agencies (NGAs), governmentowned and controlled corporations (GOCCs), and state universities and colleges
(SUCs) with the Transparency Seal will be strictly monitored and reinforced
through the performance-based bonus (PBB) that includes the Transparency
Seal among the eligibility criteria.
W ith the Philippines efforts to implement the standards of the
Extractive Industries Transparency Initiative, data/information coming
from extractive industries on payments they make to the government and
where these were used by the government will now be transparent.
154
Table 7.4. Revalidated results matrix (RM) under subsector outcome

A on enhancing access to information
Indicators
(2012)
End-ofPlan
target
(2016)
Baseline
Proportion
Fiscal
transparency
of NGAs and
improved
GOCCs fully complying
with the Transparency Seal achieved (in % )
Open Budget Index (OBI) score increased
100
100
48
60
N/A
70
Open data standards progressively adopted

Datasets contributed by NGAs to the Open
Data Portal (ODP) increased
Access to information on local government operations improved
Proportion of provinces, cities and municipalities (PCM) compliant with Full Disclosure
Policy (FDP) increased (in % )
Fully complying
(2015)
Complying
98
( 2 0 1 5)
Proportion of NGAs, GOCCs, and LGUs
97.21
Compliance
government
transparency
registered in with
the PhilGEPS
increased
(in % ) requirements ensured
75
99
100
For 2015, the Philippines will target to attain a score of 60 in OBI of

the International Budget Partnership, from a score of 48 in 2012. This will be
done by improving the executive budget proposal and publishing the following
documents: Pre-budget Statement, Citizens Budget for at least two budget
phases, Mid-year Review, and Year-end Report.
Progressively adopting open data standards

As one of the eight founding member countries of the Open Government
Partnership (OGP) launched in 2011, the Philippines will develop
and implement a Country Action Plan that contains initiatives in line with the
OGPs principles of engagement. The OGP is an international organization
promoting multilateral initiative and seeking strong commitments from
participating government institutions to promote transparency, increase civic
participation, fight corruption, and harness new technologies to make
government more open, effective, and accountable.
155
The Peoples Budget will be published on an annual basis and will

contain a summary of the years results-focused budget, expenditure priorities,
and the basics on budgeting. The Budget ng Bayan website will continue to
be an interactive platform where citizens can learn more about the
government budget and file reports on budget utilization.
Information on releases for lump-sum funds will continue to be accessible in
the website of the Department of Budget and Management (DBM)
through the Electronic Transparency and Accountability Initiative for Lump
Sum Funds or e-TAILS project. Fund releases for the School Building Program
and the Calamity and Q uick Response Fund are also made available on the
website.
The Official Gazette (www.gov.ph), the official journal of the Republic of
the Philippines, will serve as the National Government Portala unified
interface in the form of a one-stop source for information and service
delivery. The online feedback mechanism featured in the site will continually be
enhanced.
In addition, the Open Data Portal (data.gov.ph) will be created to provide
citizens and government researchers with the means to access, scrutinize,
and analyze raw aggregate datasets from the government. The data, which
would have been previously difficult to acquire, will be archived in a single
platform under an open government license. The website in turn will offer
the end user the means to visualize customized datasets for their own use, free
of charge.
Improving access to information on local government operations

Regular disclosure of pertinent information to the public and providing
citizens with access to this information will be enhanced by ensuring
that Memorandum Circular (MC) 2012-141 of the Department of the
Interior and Local Government (DILG) entitled Full Disclosure of Local
Budget and Finances, and Bids and Public Offerings is consistently
complied with by all local government units (LGUs) and also unfailingly
monitored by the agency. The barangays are also directed to disclose budgetrelated documents per MC 2010-149 (Posting of Barangay Budget,
Statement of Income and Expenditures [SIE] and other Barangay Financial
Transactions, and Annual Procurement Plan [APP]). The financial
documents will be posted in conspicuous places and in the full disclosure
policy (FDP) portal. Show cause orders will await LGUs found not
complying with the policy. By 2016, the DILG targets that all provinces, cities,
and municipalities (PCMs) are fully compliant with the FDP and that
majority of them are able to upload required budget documents in the FDP
portal. Compliance with the FDP is one of the criteria for conferring the Seal
of Good Local Governance (SGLG) to LGUs.
Ensuring compliance with the government

procurement transparency requirements
156
The Philippine Government Electronic Procurement System (PhilGEPS),

designed in 2004, will be redesigned to include additional functionalities
relating to system integration, configuration and maintenance services. It will

be expanded to include e-payment and e-bidding functions, such as inclusion
of a facility to enable online submission of bid documents, development of
modules for civil society organizations (CSOs) to monitor tenders online, an
electronic fee payment system, an expanded supplier registry, and
development of a module for agency posting of their annual procurement
plans. The PhilGEPS will also be linked with the Government Integrated
Financial Management Information System (GIFMIS) for tracking budget
and expenditure. PhilGEPS is envisioned to be a world-class eprocurement system and an end-to-end government e-procurement solution
by 2016.
Strategy 2: Fully engaging and empowering the citizenry

To effectively participate and constructively engage in national and local
planning and budgeting process, existing mechanisms where citizens and CSOs
can actively engage and participate will be enhanced and strengthened by
making them more inclusive and free from political influence.
Strategies will aim to:
Deepen
participatory planning
and evaluation (M&E);
and budgeting, monitoring
Support community and CSO participation; and

Enhance voters education.
Table 7.5 shows the
empowering the citizenry.
updated
targets
on
fully
engaging
and
Table
7.5. Revalidated results matrixBaseline
(RM) under subsector outcome
Indicators
End-of-A
on fully engaging and empowering the
citizenry
(2012)
Plan
target
(2016)
NGAs entering into Budget
Partnership Agreements (BPAs)
with CSOs increased
GOCCs entering into BPAs with
CSOs increased
Cities and municipalities with
Local Poverty Reduction Action
Plans increased
Cities with Citizen Satisfaction
Survey increased
24
(2015)
12
(2015)
90% of 1,634
(2015)
595
7 (field-test in LGUs)
122
157
Deepening participatory planning, budgeting, M&E
The Grassroots
Participatory Budgeting
Process w ill see to it that
the planning and budgeting
processes, both at the local
and national government ,
are more participatory and
responsive to local needs.
The government will push for stronger collaboration among NGAs, LGUs
and community organizations in localizing poverty reduction through the
formulation of Local Poverty Reduction Action Plans (LPRAPs). For 2014 to
2015, 90 percent of the total number of cities and municipalities are
targeted to undertake the bottom-up participatory planning and budgeting
process and continuously come up with LPRAPs. By 2016, it is envisioned
that the bottom-up planning and budgeting will cover all cities and
municipalities.
The Grassroots Participatory Budgeting Process (GPBP) will see to it that
the planning and budgeting processes, both at the local and national
government, are more participatory and responsive to local needs. It will also
ensure that the funding requirements for the development needs of the poorest
cities and municipalities are included in the budget proposals of participating
national agencies. In addition, the number of NGAs and GOCCs mandated to
undertake participatory budgeting through the establishment of Budget
Partnership Agreements (BPAs) with CSOs will be expanded annually.
Participation will also be mandatory not only during budget preparation but in
other phases of the budget cycle as well.
At the regional level, the Regional Development Councils (RDCs),
whose memberships comprise regional line agencies, LGUs and CSOs, will also
be used as a mechanism for participatory planning and budgeting.
At the local level, the DILG, with the help of local resource institutes, will
continue carrying out the Citizens Satisfaction Index System (CSIS) survey
to cover all cities from 2014 to 2016. The CSIS is an external evaluation
strategy that allows the general public to assess and say how their local
governments perform. Results of this survey will serve as inputs to the LGUs
areas for improvement on specific local services.
Supporting community and CSO participation

To promote transparency and accountability among LGUs, the DILG will
also ensure that CSOs are represented in local special bodies (LSBs) as stipulated
in the Local Government Code of 1991 (RA 7160).
To develop and strengthen the capacity of CSOs to effectively participate
in national and local governance processes, the DILG will conduct capacitybuilding activities for CSOs on identified competencies, including community
organizing, mobilization and support for advocacy work, networking and
participation in local governance.
To help strengthen the LSBs, the Union of Local Authorities in the Philippines
(ULAP) and its member leagues will support LGUs in policy development and
in replicating good and inclusive local governance practices in the areas of
education, health, and migration development. This will be a collaborative effort
with NGAs, civil society and the private sector.
158
Enhancing voters education

The Commission on Elections (COM ELEC) will continue to harness
various media (e.g. print, voice and electronic, etc.) in educating the public
about the electoral reforms and activities of the Commission, as well as its
stand on various political issues. Voters education includes warning against
campaign violations and information on legal, proper, and novel techniques that
local candidates can adapt in their campaigns. The COM ELEC will also aim to
increase understanding and appreciation of the benefits of the automated election
system and provide alternative sources of information which may be accessed
with greater ease. It will conduct public demonstrations on the Precinct Count
Optical Scan (PCOS) machines for special interest groups, walk-ins, and the
general public. Furthermore, to increase voter registration and turnout for the
next national elections, COM ELEC will partner with CSOs in countries
with high concentration of overseas Filipinos (OFs) in conducting sustained
information dissemination campaigns, especially on the O verseas Voting Act
of 2013 (RA 10590), to encourage OFs to register and cast their votes in the
2016 and future national elections.
Strategy 3: Strengthening performance management

and accountability measures
In the past three years, the government has been able to implement several
measures to make public institutions deliver services more efficiently and
effectively and to make NGAs accountable for their level of performance.
Streamlining government processes.
W ith the Anti-Red Tape Act or
ARTA (RA 9485), NGAs, GOCCs, SUCs and LGUs are required to set
up Citizens Charter where service standards are made known to the
public.77 Efforts were also devoted to improve business-related systems and
procedures. For instance, the Business Permits and Licensing Systems (BPLS)
were set up to streamline services by imposing a single unified form for
applying or renewing business permits and licenses, reducing the number of
signatories, and reducing processing time. Through the Enhanced Business
Name Registration System (EBNRS), the Department of Trade and Industry
(DTI) simplified the business name application process by reducing the required
information fields from 36 to 18, thus reducing the application form from nine
pages to a single page. From an average of four to eight hours, business name
registration is now reduced to 15 minutes anywhere in the Philippines. The
BPLS and the EBNRS provide 10.46 million OFs with the initial enabling
environment to attract their investments. The BPLS and EBNRS can be
integrated into transactional services offered by BaLinkBayan, the one-stop
online government portal dedicated for OFs engagements in investment,
philanthropy, technology and skills transfer, and online government services.
The establishment of a Citizens Charter, as one of the good governance conditions in the implementation of
the Performance-Based Incentives System (PBIS), got the highest overall compliance rating (94 percent) from
participating agencies in 2012.
77
159
Improving LGU performance.

As an incentive for improving LGU
performance, the DILG confers an SGLG to LGUs that practice accountable,
transparent, and participatory governance and improve frontline service
performance. In 2012, 1,365 LGUs were awarded with SGLGs, making them
eligible for a grant under the Performance Challenge Fund (PCF). From 2010 to
2012, 990 SGLG-qualified LGUs received a total of PhP1.51 billion from the
PCF to help fund 1,316 projects for local economic development, poverty
reduction, and climate change adaptation and mitigation.
The Department of
Budget and Management
harmonized all government
performance management
systems into a single
system called the Resultsbased Performance
Management System.
Upgrading service standards.

The Development Academy of the
Philippines (DAP) implemented the Government Q uality Management
Program (GQMP) to align the agencies planning, service, and support
operations with ISO 9001 International Standards and to make citizen
satisfaction as the focus of quality improvement efforts. In 2012, over 160
ISO 9001:2008 Q uality Management Systems (QMS) certifications were
granted to various government agencies, thus assuring the transacting public
of a more efficient, consistent, and responsive delivery of services.
Harmonizing performance management systems. The DBM harmonized
all government performance management systems into a single system
called the Results-based Performance Management System (RBPMS). The
system consists of an across-the-board bonus in the form of the existing
Productivity Enhancement Incentive (PEI) and a top-up bonus known as
Performance-based Bonus (PBB). The latter is characterized by a system of
ranking delivery units of departments and personnel within those units
according to their performance and contribution to the accomplishment of
their departments overall targets and commitments. The 2012 pilot run of the
system has achieved 96 percent participation rate from a total of 183 agencies,
and 79 percent of these agencies were eligible for the PBB.
Further improvements will be needed towards more responsive
governance. The strategies will aim to:
Improve public financial management;
Harmonize government information and communications
technology (ICT) systems;
Improve performance M&E, reporting and incentive systems;
Improve efficiency and competence of public service provided;
Streamline business processes and frontline services; and
Strengthen interagency coordination.
Table 7.6 shows the updated targets on strengthening performance management
and accountability measures.
160
Table 7.6. Revalidated results matrix (RM) under subsector outcome A

on strengthening performance management and accountability
measures
Indicators
Baseline
End-of(2012)
Plan
target
(2016)
Public Financial Management (PFM) improved
Proportion of LGUs assessed that
are compliant with set PFM
standards (in %)
50%
65% (2015)
Performance monitoring, evaluation, reporting and incentive systems improved

Proportion of government agencies
participating in the performance based
incentive system (PBIS) increased (in
%)
Agencies with approved Strategic
Performance Management System
(SPMS) increased
96
100
16
2,366, or 95% (2015)
Agencies with functional SPMS

increased (in %)
90% of approved SPMS in

2014 (2015)
PCMs conferred with the Seal of

Good Local Governance (SGLG)
increased
1,365
Percentage of qualified Provinces,

Cities and Municipalities (PCMs)
provided with the Performance
Challenge Fund (PCF)* subsidy
42% of qualified PCMs or

563 PCMs out of 1,327
SGH 2011 Passers
All qualified PCMs
40% of qualified PCMs or an

estimate of 403 PCMs (2013)
Efficiency and competence of public service improved

Offices with ISO 9001 Certified
QMS increased
165
315
Senior executives and middle

104
managers capacitated in the Public
Management Development Program
increased
Business processes and frontline services streamlined
495
High-density service offices passing

the Anti-Red Tape Act (ARTA)
Report Card Survey (RCS) increased
(in %)
98
75
*Annual target provided but cannot be aggregated since same LGUs may qualify for PCF each year
Improving public financial management (PFM)

The banner program for PFM is the GIFMIS, a tool to assist the government
in maintaining fiscal discipline,fund allocation and operations for the effective
delivery of government services, as well as in making financial decisions. As a
pre-requisite for the GIFMIS, a Unified Account Code Structures, which
provides a harmonized
16
1
budgetary and accounting classification system, is now used for the 2014
budget preparation. In addition, the Treasury Single Account is being developed
to unify the structure of government bank accounts, enabling consolidation and
optimum utilization of cash resources.
To better manage government human resource requirements and
improve accountability in the disbursement of funds for personal services, the
government will complete its Government Human Resource Information
System (GHRIS) and develop a National Payroll System (NPS). The NPS
will allow for direct and timely payment to all employees through their bank
accounts, eliminate the existence of retired or resigned employees in the system,
and address the perennial problem of non-remittance of contributions to the
Government Service Insurance System (GSIS). The system will interface with
government-accredited banks for deposit instructions and with oversight
agencies to facilitate work and data flow.
Support to LGUs for more effective and accountable PFM will also continue.
To build the PFM policy environment of the LGUs, government will
formulate an LGU PFM Road Map and strengthen LGU PFM Policy Units in
the oversight agencies, so they can provide technical assistance to LGUs on
PFM. In addition, LGU PFM systems and tools will be streamlined and
synchronized through the development of electronic tools for budgeting and
financial transactions.
Harmonizing government ICT systems

The government will continue to implement the Medium-Term Information
and Communication Technology Harmonization Initiative (MIT H I).
Through this process, the e-Government Master Plan or eGMP will be
developed as a singular authoritative strategic blueprint for Philippine eGovernance. MITH I provides a bottom-up perspective of the governments
ICT needs and ensures a systematic process for the planning, budgeting,
implementation, M&E of government-wide ICT projects.
Likewise, administrative and field data of various government agencies
on international migration will be harmonized for evidence-based policymaking
and planning. The Shared Government Information System on Migration
(SGISM) will be operationalized in response to the challenges and opportunities
of migration.
Improving performance M&E, reporting and incentive systems

The government will further improve systems for performance M&E,
reporting and incentive systems.
162
RBPMS. The Interagency Task Force created under Administrative O rder

(AO) 25 will continue to improve the RBPMS framework. The RBPMS will
be the basis for determining entitlement to performance-based allowances,
incentives, or compensation of government personnel, taking into
consideration the National Leaderships Agenda, PDP 2011-2016,
agency mandates, commitments and targets.
Strategic Performance Management System. The performance monitoring

and appraisal system embodied in the Strategic Performance Management
System (SPMS), designed by the Civil Service Commission (CSC), will be
enhanced. The SPMS focuses on the agencys major final outputs (MFOs),
together with their corresponding performance indicators, as these relate to the
achievement of the agencys strategic objectives. The translation of success
indicators, a combination of the targets and measures, from an organizational
level to the office level, can be seen in the Office Performance Commitment
and Review (OPCR) and further down the Individual Performance
Commitment and Review (IPCR).
In 2012, 390 SPMS were already approved for initial implementation. By
2013, the approved SPMS are expected to increase to 30 percent or 747 of the
identified 2,490 agencies. By 2015, 95 percent or 2,366 of 2,490 agencies will
each have an approved SPMS. It is expected that the approved SPMS will
become functional by 2014 (85 percent of the approved SPMS in 2012 and
2013) and 2015 (90 percent of approved SPMS in 2014). The SPMS will be
an effective tool in assessing individual accomplishments that are aligned with
organizational goals. It can be used to operationalize Executive Order (EO) 80
signed in 2012 (Directing the Adoption of a Performance-based Incentive
System for Government Employees), which ties incentive with performance.
Incentives for good local governance. In terms of LGU performance, the DILG
will scale up the SGLG to include gauging LGU performance not only in the
areas of good financial housekeeping and peoples participation, but also on
important areas such as business competitiveness, disaster preparedness,
environmental protection, social protection, peace and order and public
safety. Moreover, conferment of the Gawad Pamana ng Lahi award will be
continued for LGUs that have shown exemplary
performance
in
administrative, social, economic and environmental governance. The DILG
will also continue to incentivize good performing LGUs through the PCF. To
make this initiative felt by the public, the DILG will improve the M&E of PCFsupported projects and strengthen policies on local governance performance
management and incentive systems.
Participatory Audit. The Citizens Participatory Audit (CPA) Project,
launched in 2012, will be expanded and eventually institutionalized. This
initiative aims to enhance transparency, accountability and citizen participation
in the public audit process. The CAMANAVA (Caloocan, Malabon, Navotas,
and Valenzuela) flood control project of the Department of Public Works and
Highways was chosen as the first pilot audit.
Improving efficiency and competence of public service

Government will continue and strengthen programs that enhance the
competence of public officials to efficiently deliver quality public services.
Under the GQMP, established through EO 605, the government has adopted
the ISO 9001 QMS. The government will also enhance the Career Executive
Service Development Program (CESDP) by addressing the development
and team
163
effectiveness needs of executives who are not yet career executive service
officers (CESOs). Further, the Public Management Development Program
(PMDP) will foster careerism in government and promote stability in the
bureaucracy by producing a corps of development-oriented, competent,
dedicated and honest government senior executives and middle managers.
Streamlining business processes and frontline services

Various initiatives put in place to make the country more conducive for
investment will be continued and improved.
The Civil Service

Commission w ill enhance
the implementation of the
to ensure the delivery of
qualit y frontline services
to
the people.
The interagency Task Force on Ease of Doing Business (EODB), created under
AO 38 in 2013 to improve the ease of doing business in the country, will
implement the action plan prepared by the National Competitiveness Council
(NCC) to enhance the business competitiveness of the Philippines.78 The task
force will implement the Game Plan for Competitiveness to raise Philippine
competitiveness rankings to the top third in the world by 2016. The Game Plan
has set reform targets per government agency or office accountable for any of
the ten indicators measured in the Doing Business Report.
Furthermore, through the national streamlining of the BPLS, a joint effort of
the DILG and the DTI, all cities and municipalities will have standard BPLS
by the end of 2014. This includes the adoption of the BPLS Unified Form,
reduction in the number of signatories (maximum of 5), limit in the
number of steps in applying/processing business permits and licenses
(maximum of 5), and reduction in processing time (new applications:
maximum of 10 days; renewal: maximum of 5 days). Furthermore, the DILG
will also begin providing technical assistance to LGUs in the streamlining of
other local regulatory services, such as building/ construction and occupancy
permitting in an effort to make them more competitive and business friendly.
The CSC will enhance the implementation of the Anti-Red Tape Program
to ensure the delivery of quality frontline services to the people. Its Service
Delivery Excellence Program (SDEP) will be strengthened to increase the
likelihood of government offices passing the ARTA-Report Card Survey
(RCS). A system for reviewing and enhancing Citizens Charters will also be
developed to ensure that Charters are products of (a) streamlining through
time and motion studies and other business process improvements; and (b)
genuine consultation and agreement between government bodies and citizens.
Moreover, to encourage delay- and corruption-free frontline services, the
CSC will continue conferring the Citizens Satisfaction Center Seal of
Excellence to government offices epitomizing exemplary public service. Through
these measures, the proportion of surveyed offices passing the ARTA-RCS is
expected to increase from 75 percent in 2012 and 85 percent in 2013 to 95
percent in 2014 and 98 percent in the succeeding years.
The establishment of a Citizens Charter, as one of the good governance conditions in the implementation of
the Performance-Based Incentives System (PBIS), got the highest overall compliance rating (94 percent) from
participating agencies in 2012.
78
164
The conferment of the Philippine Q uality Awards (PQAs) for the public
sector will be continued to recognize government agencies that excel in
quality and productivity and with established quality management system.
Strengthening interagency coordination

Many of our public institutions have been designed to meet specific needs and
to perform specific functions. But for synergy and maximum effectiveness,
government agencies will move toward greater openness and collaboration.
Interagency coordination will be strengthened through the Cabinet Clusters (EO
43) and the Cabinet Assistance System (CAS) (EO 99). Agencies will use
these systems as a forum to discuss, streamline and resolve issues affecting their
day-to- day operations, as well as their respective projects.
Under EO 43, the Cabinet was organized thematically into the
following clusters: Good Governance and Anti-Corruption Cluster
(GGACC); Human Development and Poverty Reduction Cluster (HDPRC);
Economic Development Cluster (Econ Cluster); Security, Justice and Peace
Cluster (SJPC); and the Climate Change Adaptation and Mitigation Cluster
(CCAMC). The clusters are composed of members of the Cabinet as well as
heads of agencies and bureaus. Each cluster discusses, assesses and evaluates the
Executives programs or projects leading to 2016 to ensure that these are
consistent with the intended outcomes set in the Presidents Social Contract.
For synergy and

maximum effectiveness,
government agencies
w ill move toward
greater openness and
collaboration.
On the other hand, under EO 99, the CAS was created to provide support to
the Cabinet Secretary, who is in charge of monitoring and ensuring timely
execution of priority projects or programs under the Presidents Social
Contract and PDP. By designating a focal person (with a rank not lower
than bureau director or assistant secretary), the CAS aims to bring about
closer coordination among the departments and agencies.
Strategy 4: Intensifying anti-corruption efforts

Considering how corruption has been embedded in institutions and remains
prevalent in many aspects of governance, intensifying anti-corruption efforts
is necessary to be able to make a significant dent in this area over time.
Reducing opportunities for corruption

Reducing opportunities for corruption entails a two-pronged approach. The
first requires strengthening of internal control systems in relation to the
generation and allocation of government funds; and the second involves strict
enforcement of penalties against those found guilty of corrupt practices.
Good governance and the rule of law
165
W ith respect to strengthening internal control systems, the following reforms

in government budgeting, accounting and auditing systems will be pursued:
Enforcement of a rules-based approach and limiting the scope for discretion
in the allocation of public funds;
Strengthening the CPA Project of the Commission on Audit (COA) to
enhance transparency, accountability and citizen participation in the
public audit process; and
Harmonizing the Philippine Public Sector Accounting Standards
(PPSAS) with the International Financial Reporting Standards (IFRS) and
International Public Sector Accounting Standards (IPSAS).79
Revenue Integrity Protection Service. The Revenue Integrity Protection
Service (RIPS), the Department of Finances anti-corruption arm created under
EO 259, will continue to prosecute public officers of its revenue-generating
agencies who have committed acts of corruption and to improve the publics
perception on the current state of corruption. The RIPS has identified two key
initiatives towards integrity development, namely: (a) increasing RIPS capacity
to develop lifestyle cases; and (b) enhancing the integrity or building up the
image of the bureaucracy. The acquisition and customization of case
management software will aim to increase the sources of leads for RIPS
through its case profiling function. To improve the quality of cases filed,
training programs will be conducted and will focus on improving the
investigative skills and technical knowledge of the Bureau of Internal Revenue
(BIR) and Bureau of Customs (BOC). The RIPS aims to increase the
number of cases filed against corrupt personnel from 29 in 2012 to 61 in 2015
and the number of investigations conducted on individuals from 65 in 2013 to
72 in 2015.
The Policy Thrust and 8-point Agenda of the Office of the Ombudsman (OMB).
The Policy Thrust and 8-point Agenda from 2011 to 2018 to curtail corruption
will focus on: (a) disposition of high-profile cases; (b) zero backlog; (c)
improved survival rate of fact-finding; (d) enforced monitoring of
referred cases; (e) improved responsiveness of public assistance; (f ) improved
anti-corruption policy and program coordination among sectors; (g)
rationalization of the functional structure; and (h) enhanced transparency and
credibility.
The Ombudsman is doing an assessment of the Policy Thrust and 8-point
Agenda to determine its progress in attaining its development objectives. The
assessment, which is part of the Rapid Assessment and Seminar on Case
Analysis and Legal Draftsmanship Initiative or RASCALD, will be used in
the formulation of the Ombudsman Roadmap for Action for 2013 to 2018.
Twenty-three standards, which are intended for implementation in 2013, are being exposed to various national
and international standard setting organizations. COA is also developing new PPSASs as well as an
Integrated Results and Risk-Based Auditing Approach System (IRRBAAS).
79
166
The United Nations Convention against Corruption (UNCAC) framework in

multi- sectoral anti-corruption efforts. The Philippines is one of the pioneer
signatories of the UNCAC, the most comprehensive global framework in
combating corruption. The UNCAC has five thematic pillars, namely:
prevention, criminalization and law enforcement, international cooperation,
asset recovery, and technical assistance and information exchange. It requires
member-states to undertake key measures, both preventive and punitive and
covering the public and private sectors, on criminalization of certain offenses
and law enforcement, international cooperation on cross-border criminal matters,
and adoption of civil and criminal law framework for asset recovery.
Pursuant to the countrys commitments under the UNCAC, the
Ombudsman facilitated the multi-stakeholder compliance assessment and
adoption of a 21-point Action Plan, foremost of which are: (a) passage of laws
on witness and whistleblower protection and freedom of information, and
allowing the Ombudsman to look into bank deposits; (b) promulgation of rules
of procedure governing extradition cases and conduct of discussions to enhance
existing extradition treaties and mutual legal assistance on criminal matters; and
(c) promulgation of rules clarifying solicitation and acceptance of gifts. The
CSO coalition framework on UNCAC monitoring will be established and
implemented. The integrity pledge and the unified code of conduct for
business will be promoted and expanded. Project SHINE (Strengthening
High level commitment for Integrity initiatives and Nurturing collective
action of Enterprise) advocating for fair market conditions will likewise be
pursued.

The United Nations (UN) Secretary-General in 2004 described rule of law
as a principle of governance in which all persons, institutions and entities,
public and private, including the State itself, are accountable to laws that
are publicly promulgated, equally enforced and independently adjudicated,
and which are consistent with international human rights norms and
standards. It requires, as well, measures to ensure adherence to the principles of
supremacy of law, equality before the law, accountability to the law, fairness
in the application of the law, separation of powers, participation in decisionmaking, legal certainty, avoidance of arbitrariness and procedural and legal
transparency.80
Strategies to strengthen rule of law aim to improve administration of justice and
to enhance economic justice.
Strategy 5: Improving administration of justice

Improving administration of justice is crucial for restoring the credibility of
the justice system and earning citizens confidence. Table 7.7 shows the updated
targets for this strategy.
Report of the UN Secretary-General: The rule of law and transnational justice in conflict and post-conflict
societies (2004).
Good governance
80
and the rule of law
167
Table 7.7. Revalidated results matrix (RM) under subsector outcome B

on improving administration of justice
Indicators
Baseli
ne
(2012
)
End-ofPlan
target
(2016)
Proportion of backlogs (investigations/ cases beyond the maximum prescribed periods)

reduced (in %)
NBI investigation
17
15
DOJ prosecutor investigation
51
30
Percent reduction in case backlog (backlog clearing rate)
0
15
Courts with rolled out continuous trial increased
0
90
(partial coverage)
Courts with rolled-out e-courts system increased
0
308
Courts with rolled-out e-subpoena system increased
0
95
(partial coverage)
Detainees under the jail decongestion program increased
1,272
5,000
(under E-JOW, Judgment Day,
and newlyissued SC Guidelines on Jail decongestion)
Philippine Mediation Center (PMC) offices for
116
128
promotion of Alternative Dispute Resolution increased
Reducing backlogs and decongesting case dockets

Case decongestion and delay reduction activities will be conducted,
especially for courts that have high caseloads. For this purpose, filling of
vacancies will be a priority. Additional assisting judges will be designated and
equipment will be upgraded. The Supreme Court (SC) aims to reduce case
backlogs in the judiciary by 15 percent. The Department of Justice (DOJ),
for its part, will pursue good governance reforms to reduce investigation
backlogs.
Instituting good governance in the justice system

The D OJ will institute good governance reforms, including performance and
integrity management systems, and expedite the recruitment of investigators
and prosecutors. Computerization of processes and services will also be
pursued and sustained. To minimize reliance on LGU resources/support,
the Department will work on expanding the staff complement and increasing
funding from the national government. It will also seek to and improve its
resource management capability/systems
towards
optimal
allocation/utilization at the regional and local levels. The national
government will explore other means of support to field justice agencies to
lessen or eliminate dependence on LGUs in improving judicial systems and
infrastructure.
168
Electronic Court System. The Electronic Court System or e-Courts

Project, which was first launched in the courts of Q uezon City in June
2013, will be the first step towards the eventual automation of the operations
of all courts. The e-Courts is a computer-based system designed to enable
trial judges and court personnel to organize, plan and control the flow of
cases from filing to resolution and enforcement.
Judiciary HR plan. The Court will pursue an 18-year Human Resources
Development Program (H RDP) for the judiciary. It will have three main
career tracks: adjudication (for justices and judges); the technical track
(for clerks of courts, legal researchers, interpreters, among others); and
general administrative support. Furthermore, organization development
reviews will be implemented in judiciary offices and the courts to strengthen
institutional capacity and operational efficiency.
Access to justice-Justice on Wheels. The Justice on W heels buses will continue to
visit various courts and jails. Prompt adjudication and disposal of cases have
not only decongested court dockets but also contributed to jail decongestion.
Access to legal information through free legal services has also been provided to
indigent litigants and detainees.
Streamlining criminal investigation

Streamlining of the criminal investigation process will be pursued
through legislation. The aim is to harmonize and integrate the functions of
investigating law enforcers and prosecutors, and to repeal RA 5180, which
prescribes the conduct of preliminary investigation by prosecutoran
adversarial and quasi-judicial proceeding to determine the merit of filing a
case in court. The integrated case build-up and streamlined process will
speed up the criminal justice system and increase the likelihood of securing
convictions.
Addressing fragmentation in the justice system

To help address fragmentation in the justice system, sustained
implementation of the National Justice Information System (NJIS) will be
pursued in close coordination and collaboration among justice sector agencies.
Existing mechanisms will be maximized, particularly the Justice Sector
Coordinating Council ( JSCC) and Philippine Development Forum (PDF), in
setting the strategic justice sector agenda and partnership roadmap, as well as
implementing the NJIS and other critical justice reforms. Establishment of a
Justice Research Center ( JRC) will also be explored and pursued based on
international best practices in order to formulate, integrate, harmonize or
rationalize policies, programs, systems procedures and capacity development
in the justice system in a sector-wide approach.
169
Promoting and maximizing Alternative Dispute Resolution (ADR)

For the judiciary, new Philippine Mediation Center (PMC) units will be opened
in Bohol, Legazpi City, Sorsogon, Dipolog City, Ilocos Norte, Ilocos Sur and
Negros Oriental in 2013 and 2014. Increased ADR presence enables courts to
refer cases for ADR and in the process contribute to the disposition of cases.
The DOJ, through the Office for Alternative Dispute Resolution (OADR), will
continue efforts to (a) promote and maximize the use of ADR by
accrediting more practitioners in mediation and arbitration nationwide; (b)
putting up ADR facilities in strategic cities/regions; and (c) strengthening
research, policy/program development, information campaign and capacity
building. W ithin the next few years, strengthening of the Barangay Justice
System, prosecution-level mediation and contractual dispute resolution will be
pursued.
In recognition of the Lupong Tagapamayapas contribution to the promotion of
the Barangay Justice System, the DILG will continue to institutionalize the
granting of economic benefits and other incentives through the Lupong
Tagapamayapa Incentives and Awards. The Lupons will be provided with the
needed capacity- development interventions to strengthen the efficacy of the
Lupong Tagapamayapa as an ADR mechanism or indigenous mediation
structure in resolving disputes within a community, and beyond the court
system.
Enhancing access to justice by the poor and other vulnerable sectors

Besides the above-discussed strategies, which will redound to enhanced
justice sector efficiency, reduced cost and increased access to justice, the
Recognizance Act of 2012 (RA 10389) will be implemented together with
reforms in the bail bond system to benefit the poor and vulnerable sectors.
More public attorney positions nationwide will be created to ensure adequate
free legal assistance and representation, especially for indigents. Relevant
procedures and necessary facilities will be reviewed/improved to better serve
these vulnerable sectors, particularly women, children, persons with disabilities,
senior citizens and indigenous peoples. Jails will be decongested and reforms in
corrections will be sustained/pursued for persons deprived of liberty
(detainees/prisoners) and their families.
Ensuring consistency and stability of jurisprudence

In light of its constitutional mandate on adjudication, the judiciary will
ensure consistency and rationality in jurisprudence through the decisions it
renders before the courts. Doing so will contribute to stability, most especially
in cases that have social, economic and political impact.
Strategy 6: Enhancing economic justice
170
Inclusive growth cannot happen without economic justice. To achieve

economic justice, the government will work to strengthen competition, improve
efficiency in commercial dispute resolution, and intensify tax enforcement. Table
7.8 shows the updated targets on enhancing economic justice.
Table 7.8. Revalidated results matrix (RM) under subsector outcome

B on enhancing economic justice
Indicators
Baseli
ne
(2012
)
Cases filed under the Run After Tax Evaders

(RATE) Program increased
Cases filed under the Run After The Smugglers
(RATS) Program increased
End-ofPlan target
(2013-2015)
57
108
60
72
Strengthening competition/anti-trust enforcement

Strengthening the countrys legal framework on promoting competition
among businesses across various industry sectors will not only improve the
countrys competitiveness but also rationalize commodity prices.The DOJ,
through its Office for Competition, will pursue the enactment of a unified
competition/anti-trust law and intensify enforcement efforts. It will expand
partnerships with and among sector regulators and other stakeholders in policy
development, regulatory impact assessment, information sharing, capacity
building, investigation/case build-up, and eventual filing cases and prosecution
in court against monopolistic practices.
Improving efficiency in commercial dispute resolution

EO 78, which mandates the inclusion of ADR in contracts involving
public- private partnerships (PPPs), build-operate and transfer (BOT ) projects,
and joint venture agreements between the government and private entities,
will be fully implemented. The DOJ-Office of ADR will proceed with
information campaigns on the said policy and promote ADR in resolving
commercial/contractual disputes outside the court system. The DOJ will also
work on ensuring the consistency of legal opinions and advice on government
contracts, and engage the SC in policy dialogues to resolve concerns on
statutory interpretation and contract enforcement. The judiciary, for its part, will
address efficiency concerns on commercial dispute resolution through its efforts
on case decongestion and consistency of jurisprudence.
Intensifying tax enforcement

The government will further intensify the implementation of the Run After Tax
Evaders (RATE) and Run After The Smugglers (RATS) programs.
Common standards for evidence gathering will be formulated and working
arrangements will be institutionalized. Capacity building for specialized lawyers
and prosecutors will continue to be pursued. For the succeeding years, the BIR
will continue its bi-monthly filing with the DOJ of new cases against tax evaders
under the RATE, and seek the successful prosecution and conviction of cases as
well as the collection of civil liabilities. Under the RATS, the BOC will file two
smuggling cases every year until 2015. It will also pursue capacity building
for BOC operatives and lawyers, improve handling and custody/security of
evidence, enhance information and document management through database
development, and strengthen the monitoring of cases with the DOJ, quasijudicial bodies, Court of Tax Appeals (CTAs), and other courts.
17
1
The strategies will be implemented by the different NGAs, GOCCs, SUCs
and LGUs, which will all be directed towards effective and efficient
governance in order to achieve rapid and sustained economic growth as well as
poverty reduction and quality employment creation.
The DBM, D OF (including BIR and BOC), COA, CSC, and D ILG will be
at the forefront of activities aimed at increasing transparency and intensifying
participatory governance, while the CSC, DAP, OMB and COA will
spearhead strengthened performance management and anti-corruption
initiatives. The GGACC, created under EO 43 of 2011, will coordinate
and oversee the implementation of these strategies.
On the other hand, activities relating to strengthened rule of law will be led
by the DOJ, NBI, and the judiciary.
The JSCC will be utilized as a
collaborative mechanism to implement the justice sector agenda and
partnership roadmap towards strengthened rule of law.
To gauge performance on the above strategies, RMs have been prepared
separately that contain worldwide indicators and indices for good governance
and rule of law, like the WGI and OBI as well as NGA targets/indicators.
Table 7.9 presents the annual target indicators of the outcomes and strategies
from 2013 to 2016.
172
Table 7.9. Annual target indicator matrix on good governance and the rule of law, 20132016
Indicators
Means
of
Annual Plan targets (in %)
verificat
ion
2013
2014
2015
2016
Percentile rank in WGIGovernment Effectiveness

>_ 70 .0increased
Subsector outcome A: Transparency, citizens participation and accountability
0
Percentile rank in the WGIWGI Reports
>_50.00
Voice and Accountability
indicator improved
indicator improved
All agencies; NEDA

(for formulation of
local governance
Percentile rank in WGIControl of Corruption

indicator improved
Fiscal transparency improved
Proportion of NGAs and
100
100
100
GOCCs fully complying
with the Transparency
Seal achieved (in %)
Open Budget Index (OBI)
NA
NA
60
score increased
Open
data standards progressively adopted
Fully Complying
55
65
75
Datasets contributed by
70
N/A
N/A
NGAs to the Open Data
Portal (ODP) increased
Access to information on local government operations improved
Proportion of provinces, cities and municipalities (PCM) compliant
with Full Disclosure Policy (FDP) increased (in %)
Complying
Agency
responsi
ble
95
97
indicator system)
>_60.00
100
Agency website
DBM
60
OBI Reports
DBM, DOF, COA
70
compliance to FDP
ODP statistics
Open Data Task

Force (DBM,
PCDSPO, OPS)
DILG report on LGU
DILG
PhilGEPS Statistics
DBM, DILG
99
Compliance with government transparency requirements ensured

Proportion of NGAs, GOCCs,
100
100
100
and LGUs registered in the
PhilGEPS increased (in %)
100
173
Indicators
Annual Plan targets (in

%)
2013
2014
2015
2016
Citizenry fully engaged and empowered

NGAs entering into Budget
12
Partnership Agreements
(BPAs) with CSOs
increased
GOCCs entering into BPAs
6
with CSOs increased
18
24
12
Cities and municipalities

1,266
90% of
90% of
with Local Poverty
1,634
1,634
Reduction Action
Plans increased
Cities with Citizen
35
52
35
122
Satisfaction Survey
increased
Public Financial Management (PFM) improved
Proportion of LGUs
50
60
65
assessed that are
compliant with set PFM
standards (in %)
Performance monitoring, evaluation, reporting and incentive systems improved
Proportion of government
100%
100%
100%
100%
agencies participating
in the performance based
incentive system (PBIS)
increased
Agencies with approved
747
2,366
(30%)
(95%)
Management System
(SPMS) increased
Agencies with functional
85% of
90% of
SPMS increased (in %)
approved
approved
SPMS in
SPMS in
2012 and
2014
2013
PCMs conferred
all
all
all
with the Seal of Good
qualified
qualified
qualified
Local Governance
PCMs
PCMs
PCMs
(SGLG) increased
Percentage of qualified
40% of
20% of
20% of
Provinces, Cities and
qualified
qualified
qualified
Municipalities (PCMs)
PCMs
PCMs
PCMs
provided with the
Performance Challenge
Fund (PCF) subsidy
Note: Provision of PCF subsidy to qualified PCMs is dependent on the budget provided by
DBM
174
Means
of
verificat
ion
Agency
responsi
ble
BPA Copies
DBM, selected
agencies
DBM, selected
GOCCs
Agency Reports
DILG, DSWD,
NAPC, NEDA
Citizen Satisfaction
Index Report
DILG
PFMAT Results
DBM
PBIS Report
Inter-Agency TF for
AO 25/ DAP
CSC Audit Reports
CSC
Report on LGUs
conferred with
SGLG (for 2014
onwards)
Agency Report on
PCF
DILG
Indicators
Offices with ISO 9 0 0 1

Certified QMS increased
Senior executives and
middle managers
Means
of
verificat
ion
Annual Plan
targets (in %)
195
2013
230
20
14
2 70
20
15
315
Agency
responsi
ble
GQMC/DAP
2016
Efficiency and competence of public service improved
capacitated in the Public

202
300
Management
Development Program
increased
Business processes and frontline services streamlined
High-density service offices
85
95
passing the Anti- Red Tape
Act (ARTA) Report Card
Survey (RCS) increased (in
%)
Percentile rank in WGISubsector outcome B: Rule of law strengthened
Percentile rank in the
WGI-Rule of Law
indicator improved
395
495
98
98
>_60.00
Regulatory Quality
indicator improved
Administration of justice improved
Proportion of backlogs
DOJ prosecutor
(investigations/
cases
beyond the maximum
prescribed periods)
reduced (in %)
NBI investigation
Official agency
reports
NGCESDP
Committee/ DAP
Annual ARTA-RCS
Report
CSC
WGI Reports
All agencies; NEDA

(for formulation of
local governance
indicator system)
>_70.00
15
15
15
15
Official agency
NBI
Courts
with rolled-out
investigation
Percent reduction
in case backlog (Backlog
clearing rate)
Courts with rolled out
continuous trial increased
(partial coverage)
45
0
40
5%
35
5%
30
5%
reports
Court reports
DOJ Proper
Judiciary
30
30
30
e-courts system increased

Courts with rolled-out e-
58
0
80
31
90
31

80 Installation reports
Judiciary
33
175
Indicators
Annual Plan targets

(in %)
2013
No. of detainees released
under the jail decongestion
program increased (under
E-JOW,
Judgment Day, and newlyissued SC Guidelines on Jail
Decongestion)
Philippine
Mediation
Center (PMC) offices
for promotion of
Alternative
Dispute
Resolution increased
Economic justice enhanced
Cases filed under the Run
After Tax Evaders (RATE)
Program increased
Cases filed under the

Run After The Smugglers
(RATS) Program increased
176
201
4
201
5
1,272
Means
of
verificat
ion
Agency
responsi
ble
BJMP Report
Judiciary, BJMPDILG, DOJ
Installation reports
Judiciary, Philippine
Mediation Center
2016
5,000
116
36
36
36
108 from
2013 to
2015
24
24
24
72 from
2013 to
2015
Internal reports
BIR, DOJ
BOC, DOJ
Peac
a
end
security
Peace and
security
177
I. INTRODUCTION
Human security is the ultimate aim of national security. A politically stable
and secure nation is necessary to achieve development and improve the
collective welfare. This chapter presents the governments strategies to
achieve the twin goals of peace and security. Figure 8.1 illustrates these
twin strategies, namely:
(a) the peace process, which seeks to enable communities in areas affected
by and vulnerable to armed conflict to return to peaceful conditions where they
can achieve their desired quality of life; and (b) the preservation of a safe and
secure environment free from criminality and threats to the countrys
sovereignty and territorial integrity.
Despite challenges confronting the peace process, the Philippines has
made significant strides in resolving armed conflict, due largely to the
commitment of the Aquino administration to pursue peaceful political
settlements with armed groups. The government intends to sustain these gains
by continuing the strategy of negotiated political settlement alongside a
determined and deliberate complementary track that mitigates the impact of
armed hostilities to affected communities. This chapter elaborates on this
agenda.
This chapter likewise tackles security concerns that threaten the integrity of
the stateboth internally and territoriallyand issues of criminality and
armed violence perpetrated by private armed groups, as well as transnational
security issues such as terrorism, trafficking in persons, illegal arms and drugs
smuggling, and cybercrime. It also elucidates on the governments agenda
of a rules-based collective security framework in international relations to
ensure the countrys sovereignty over its territories and build capabilities
and preparedness against disasters and emergencies to protect lives and
properties.
II. ASSESSMENT, CHALLENGES AND OPPORTUNITIES

The government has been determined to overcome hurdles and take
advantage of opportunities for winning the peace and ensuring national
security. Such determination has yielded positive results in various fronts,
even as government continues to face challenges especially in rebuilding and
strengthening legitimate and capable institutions that stakeholders can trust so
that development initiatives can move faster.
178
Figure 8.1. Results and strategic framework on peace and

security
employment created
Goals
Intermediate
goals
Rapid and sustained

economic growth
achieved
Stable national
security achieved
Sector outcome
Communities in areas affected by

and vulnerable to armed conflict
return to peaceful conditions where
they can achieve their desired quality
of life
Subsector
outcomes
Intermediate
outcomes
Equal development
opportunities
achieved
Negotiated
political
settlements
of all internal
armed conflicts
completed
Strategies
Causes and
impacts of all
internal armed
conflicts and
other issues that
affect the peace
process effectively
addresed
Winning the peace
Internal
stability
sustained
Safer and more secure

environment conducive
to national development
created and sustained
Capability
to uphold
severeignty
and territorial
integrity
improved
Highest
standard of
capability and
preparedness
against
disasters and
emergencies
attained
Security
sectors
reforms
implemented
Winning the peace

Peace negotiations
The following presents the progress of peace negotiations with armed groups.
Moro Islamic Liberation Front (MILF)

A breakthrough in the peace process was achieved with the signing of
the Framework Agreement on the Bangsamoro (FAB) between the
government of the Philippines (GPH) and the MILF. Comprising the
Comprehensive Peace Agreements are the FAB and four Annexes, namely the
Annexes on Transitional Modalities, on Wealth and Revenue Sharing, and
on Power Sharing, and on Normalization. The Annex on Normalization is
expected to be signed by early 2014. The Transition Commission has been
convened to translate the FAB and the Annexes into a proposed Bangsamoro
Basic Law (BBL), which will be submitted to Congress in time for the target
2014 legislation of said BBL.
Peace and
security
179
Complementary to this was the 2012 launching of Sajahatra

Bangsamoro, a program conceived by both GPH and MILF to bring health,
education and other socioeconomic projects to MILF communities.
Enacting the BBL will require strong political will from leaders, utmost
vigilance from people and demonstration of the principle of inclusiveness,
to eliminate new conflict and grievances. Legitimate institutions need to be
built, reformed and strengthened to increase citizens participation, guard
against interests that are inimical to socioeconomic and political empowerment,
and guarantee inclusive development.
Moro National Liberation Front (MNLF)

The conduct of the Tripartite Implementation Review addressed the issues on
the full implementation of the 1996 Final Peace Agreement between the GPH
and the MNLF. An inclusive framework has been pushed to ensure governance
reforms and implementation of the Peace Agreement.
Communist Party of the Philippines/New Peoples

Army/National Democratic Front (CPP/NPA/NDF)
The resumption of talks in 2011 broke the seven-year impasse on negotiations
with the CPP/NPA/NDF. The longest ceasefire in the history of this peace
process was observed with minimum level of hostilities from both sides for
almost four weeks. However, talks encountered a major roadblock due to
conditions and issues raised by the NDF. The major challenge, therefore, is to
pursue a time-bound, agenda- based framework that will end the 27-year
peace negotiations and finally bring peace to the affected communities.
Cordillera Bodong Administration/Cordillera Peoples Liberation

Army (CBA/CPLA)
The signing of the Closure Memorandum of Agreement between the GPH
and the CBA/CPLA in July 2011 was another milestone. The Agreement
facilitated the immediate implementation of socioeconomic programs in the
Cordilleras and started the disposition of arms and forces of said group. The
CBA/CPLA has transformed itself into a civilian socioeconomic group, which
registered itself with the Securities and Exchange Commission under the name
Cordillera Forum for Peace and Development, Inc.
Rebolusyonaryong Partidong Manggagawang

Pilipinas/Revolutionary Proletarian Army/Alex Boncayao Brigade
(RPM-P/RPA/ABB)
180
A Closure Agreement with the Tabara Paduano Group of the RPM-P/

RPA/ABB is expected to be signed and implemented soon. This includes the
disposition of arms and forces and provision of socioeconomic support
and development projects to identified communities in Negros and Panay.
The peace process with the Nilo dela Cruz faction, however, did not progress
mainly due to internal dynamics within the group on their authorized
representative.
Plan 2 011-2016 MIDTERM UPDATE
Complementary track
The complementary track facilitates positive sociopolitical conditions
that support peace negotiations and operates under three general themes: (a)
building community resilience against armed violence; (b) strengthening
institutions; and
(c) mainstreaming conflict-sensitive, peace-building and gender-sensitive lens
in governance. The themes are meant to remove structural roadblocks hampering
the approximation of human security goals in conflict-affected areas.
Building community resilience against armed violence

The Payapa at Masaganang Pamayananor PAMANA is the national
governments focused development program for isolated, hard-to-reach, and
conflict-affected communities (Table 8.1). From 2010 to 2013, PAMANA has a
total allotment of PhP9.85 billion and served 414 municipalities in 44 provinces
and five chartered cities. Another development initiative is the PhP8.5-billion
Autonomous Region in Muslim Mindanao Transition Investment Support
Program (ARMM-TISP) that addresses infrastructure and support-services gaps
in the region.
Peace
Are
proccess
line geographical
asNorte, North Cotabato, Sultan
Table
8.1. PAMANA
zonesLanao del
Central Mindanao:
Bangsamoro
(MNLF/MILF)
Kudarat, Sarangani, South Cotabato, Maguindanao and

Lanao del Sur
ZamBaSulTa: Zamboanga del Norte, Zamboanga del Sur,
Zamboanga Sibugay, Basilan, Sulu and Tawi-Tawi
Bicol-Quezon-Mindoro: Sorsogon, Camarines Norte,
Masbate, Quezon and Oriental Mindoro
Samar Island: Northern Samar, Eastern Samar and
Samar
CPP/NPA/NDF
Davao-Compostela Valley-CARAGA Corridor: Davao
Oriental, Davao del Sur, Davao del Norte, Compostela
Valley, Agusan del Sur, Agusan del Norte, Surigao del Norte
and Surigao del Sur
Cordillera Administrative Region: areas identified by the
CBA-CPLA
Closure agreements
Negros-Panay: Areas in Negros Occidental, Negros
Oriental,
Aklan, Iloilo, Antique identified by RPMP/RPA/ABB-TPG
Peace and
security
18
1
As of June 2013, the government identified 5,873 PAMANA projects81 on

shelter assistance for internally displaced persons (IDPs), social protection,
community- driven development, agriculture, road infrastructure, and
natural resource management. Of these, 998 (17%) have been completed, 987
(17%) are currently being implemented, and 3,876 (66%) are in the
preparatory stage involving consultations and capacity building among
national
government
agencies, local government units (LGUs) and
communities.
Strengthening institutions
As support to ARMM for development and reconstruction increased,
the government instituted reforms in the region to promote
accountability of regional and LGU officials. The postponement of the 2011
ARMM elections and designation of an interim Governor ensured that reforms
in the infancy stage are not reversed. Said move provided more time to
facilitate an improved electoral process in the 2013 mid-term elections.
In promoting and protecting human rights, the government enacted Republic
Act (RA) 10353 in 2012 that criminalizes enforced disappearances. Other steps
to deter extra-legal killings include: (a) the issuance of Administrative Order
5 creating a high-level interagency committee that assists in the speedy
resolution of cases on extra-legal killings, enforced disappearances and torture;
(b) adoption of Joint Operational Guidelines by the Department of Justice
(DOJ) and the Philippine National Police (PNP) on investigating cases on
extra-legal killings; and (c) institution of mechanisms involving human rights
groups and major stakeholders in promoting and protecting human rights.
Major strides have also been made in ensuring womens participation in the
peace process, with the National Steering Committee on Women, Peace and
Security taking the lead. In fact, women hold key positions as presidential
peace adviser and members of peace negotiating panels, technical working
groups and the Bangsamoro Transition Commission. Greater efforts are
exerted to empower women at the grassroots level to participate in local
conflict resolution, peace- building and post-conflict rehabilitation. There is
also a need to strengthen the capabilities and skills of security forces and
service delivery agents to respond to sexual and gender-based violence in
affected areas, and be able to provide victims with appropriate support.
To protect children from grave violations in situations of armed conflict,
the government established the Monitoring, Reporting and Response System
(MRRS) through Executive Order (EO) 138 in 2013. It also developed the
MRRS protocol, conducted trainings in conflict-affected provinces in
response to related United Nations (UN) Security Council resolutions, and
issued guidelines to the Armed Forces of the Philippines (AFP) on the conduct
of activities in schools or hospitals.
81
182
RPM-P/RPA/ABB Closure projects are not included since these are still subject to the Closure Agreement.
Mainstreaming conflict-sensitive, peace-building, gender-sensitive lens

The government conducted capacity-development programs to enhance the
agencies and LGUs sensitivity and responsiveness to peace and gender issues in
conflict and post-conflict situations, as well as to integrate gender and conflict
perspectives in policies, programs and processes in areas affected by and
vulnerable to conflict. In 2012, the Localization of the National Action Plan
(NAP) on Women, Peace and Security was piloted in the ARMM, which led to
the integration of programs addressing gender and conflict issues in ARMM
provincial plans.

Internal stability
The following are the accomplishments on ensuring the countrys internal
stability.
Reducing strength of insurgency

The AFP Internal Peace and Security Plan (IPSP)-Bayanihan launched in
January 2011 proved to be effective in stabilizing security in communities
affected by armed conflict. For the last three years, insurgency-initiated
violence in communities affected by armed conflict was significantly
reduced, thus facilitating a more accelerated development in these areas.
The IPSP-Bayanihans community and people-centered approach facilitated
stronger convergence of development and security interventions in these
communities. Meanwhile, former rebels who signed peace agreements have
also disposed of their firearms and transformed their organizations into
socioeconomic groups.
Intensifying law enforcement

Crime volume significantly decreased by 32 percent from 2010 to 2012.82
Likewise, crime solution efficiency rate, or the proportion of solved cases
against reported incidents, increased from 19 percent in 2010 to 37 percent in
2012. This is due to intensified police operations, increased police presence
in crime-prone areas, protection of vital installations, enhanced peacekeeping
programs with community cooperation, organized police volunteer auxiliary
force, and increased immediate reporting of crimes.
Though the police-to-population ratio improved from 1:716 in 2010 to 1:651 in
2012, it is still way below the standard requirement of 1:500 needed to
effectively respond to crimes.
Data on crime volume and crime efficiency from 2010 to 2012 considered only crimes reported to the PNP.
Starting 2013, the PNP rectified these statistics to include those reported to the barangays and other
law enforcement agencies.
82
Peace and
security
183
Expediting investigations, resolution of criminal cases

As of 2012, 83 percent of National Bureau of Investigation (NBI)
investigations were completed within the maximum prescribed period.
Prosecutor investigation backlogs decreased from about 60 percent in 2010
to 49 percent in 2012, and disposition rate increased from 75 to 77
percent for the same period. The NBI established a new crime/forensic
laboratory in Cebu City and planned to establish similar laboratories in
Mindanao and Northern Luzon to augment the lone facility in Manila.
Correctional facilities also posted a decrease in the re-offender rate in the last
three years.
Several critical laws against criminal acts were enacted for the past three
years, including (a) the Terrorism Financing Prevention and Suppression Act
of 2012 (RA 10168); (b) Amendments to the Anti-money Laundering Act (RA
10365); (c) the Bureau of Corrections Act (RA 10575); and (d) the
Comprehensive Firearms and Ammunition Regulation Act (RA 10591).
Addressing cyber security as an emerging critical area

Given the prevalent use of information and communications technology
(ICT) in governance, business and social interaction, ICT infrastructures have
become vulnerable to cyber attacks. The Cybercrime Prevention Act (RA
10175) defines and penalizes cybercrimes, such as illegal access, fraud,
identity theft, and child pornography, and establishes enforcement mechanisms.
Sovereignty and territorial integrity

The Philippines continued to protect its sovereignty and territorial
integrity through various approaches, as discussed below.
Upholding sovereignty, territorial integrity

Amidst increasing tension in the West Philippine Sea, the government
advocated a rules-based management to resolve disputes in accordance with
international law, specifically the UN Convention on the Law of the Sea
(UNCLOS). After exhausting all possible diplomatic measures, the
Philippines formally initiated arbitral proceedings in 2013 to challenge
Chinas nine-dash line claim to almost the entire South China and West
Philippine Seas and to desist from their activities that violate the Philippines
sovereign rights and jurisdiction. The President of the International Tribunal
of the Laws of the Sea already established a five- member arbitral tribunal
despite Chinas refusal to participate in the process. The international
community also recognized and supported the Philippines move in peacefully
settling the disputes.
184
In April 2012, the UN Commission on the Limits of the Continental

Shelf confirmed the Philippines claim for an extended continental shelf in the
Benham Rise region. The country obtained an additional seabed area of
135,506 square kilometers, an area larger than Luzon, for exploration and
exploitation.
Also, the
Plan 2 011-2016
MIDTERM UPDATE
government created an interagency task force to coordinate relevant

agencies and LGUs in the protection of the countrys oil reserves, especially
in the West Philippine Sea.
Strengthening international relations

The country engaged its international partners towards a stronger
collective security posture in the region. It signed 26 bilateral agreements and
acceded to 13 multilateral agreements on political, security and defense matters.
Protecting Filipino nationals abroad

Since 2010, the government has assisted over 30,000 overseas Filipinos
(OFs) through its various embassies and consulates and provided legal assistance
to more than 1,900 OF workers, including those with pending cases as well as
victims of human trafficking. Also, the country arranged for the repatriation of
over 44,000 OFs in identified hotspots worldwide from 2011 to 2012 and
deployed Rapid Response Teams to facilitate repatriation and consular
assistance.
Enhancing border security

To enhance the countrys border security,a Border Crossing Coordination Office
was established in immigration field offices and an initial fund was appropriated
in 2013 for setting up an automated border control system for the Bureau of
Immigration (BI). The challenge, however, remains in the enforcement of
immigration laws, particularly in detecting and monitoring immigration
violations, and the difficulty of locating overstaying and illegal aliens due to
inadequate coordination and data sharing system.
After being in the T ier 2 Watch List83 from 2009 to 2010, the Philippines
status was upgraded to T ier 2 in the US State Departments 2011 Trafficking of
Persons Report. Though it retained its T ier 2 status in 2012, the country still
falls short in convicting illegal recruiters. RA 10364 expands the AntiTrafficking in Persons Act and gives special attention to women and children
through additional protection and support.
Upgrading security capability

The Revised AFP Modernization Act (RA 10349) extends the
military modernization program to another 15 years to boost the AFPs defense
capability program and move closer to achieving a minimum credible defense
posture against external threats. Furthermore, the creation of the National
Coast Watch System through EO 57 in 2011 expanded the scope of the
Coast Watch South from Southern Philippines to the entire Philippine
archipelago. This, along
with
the acquisition of modern equipment,
strengthened patrol coverage and naval presence in the West Philippine Sea,
thus improving monitoring and apprehension of foreign vessels poaching
within the countrys exclusive economic zone.
Countries that need special supervision due to high number of victims and that did not increase efforts against
human trafficking
83
Peace and
security
185
Capability and preparedness against natural disasters and emergencies

Given the countrys vulnerability to natural disasters, the government
strengthened its disaster preparedness and response operations by upgrading
capability and response skills and conducting reorientation of its forces down
to the local level. The President issued EO 82 in 2013, which operationalized
the Core Manual on National Crisis Management and established the
Incident Command System throughout the country. This harmonizes and
integrates all government efforts in crisis management.
Security sector reforms

Through the IPSP-Bayanihan, the AFP created a human rights office that
coordinates and monitors human rights cases up to the level of military
squad units. This resulted in the significant decrease in human rights cases
against the military and prompt action against human rights violators within
its ranks. On the other hand, the PNP established a Human Rights-based
Policing Committee, a high-level policy and advisory body addressing human
rights issues, as well as the Human Rights Desks in all its stations. Moreover,
the PNP has also created Women and Childrens Protection desk in all its
stations.
The AFP and the PNP also instituted the Joint Peace and Security Coordinating
Committee ( JPSCC) in the operational-tactical levels to address the issue
of security convergence on the ground.
The IPSP-Bayanihan set up stronger transparency and accountability
mechanisms in the military, such as stronger check on the bids and
awards committee and an oversight system on its operations through the civil
society network Bantay Bayanihan. In the 2013 elections, the military
maintained a strong non-partisan stance.
The Department of National Defenses (DND) Philippine Defense Reform
and the Philippine Defense Transformation Programs and the PNPs
Integrated Transformation Program Performance Governance System (ITPPGS) are other initiatives meant to achieve the highest standards of
personnel integrity and professional competence in the security sector. The
ITP-PGS was already cascaded to all PNP units, with each member of the police
force now expected to produce a scorecard that serves as the social contract
between the PNP institutions and the members of its police force.
The Department of the Interior and Local Government (DILG)
recently purchased 74,879 short firearms to meet the standard 1:1 police-firearm
ratio. The PNP, likewise, instituted measures to increase the number of police on
the ground by unloading police officers of administrative work.
186
III. STRATEGIC FRAMEWORK

Consistent with the overall goal of human security and inclusive
development, peace and security efforts will be anchored on a whole-ofsociety approach by creating a national consensus and understanding of
security and deepening of commitment and involvement towards peace
building. The approachs human security framework places peoples welfare at
the center of operations and promotes local security and safety based on the
needs and realities of communities.
This chapters strategic framework has six intermediate outcomes, as shown in
the previous Figure 8.1. These outcomes include: (a) the achievement of
negotiated political settlements of all internal armed conflicts; (b) effective
interventions to address the causes and impacts of all internal armed
conflicts and other issues affecting the peace process; (c) sustained internal
stability; (d) assured capability to uphold state sovereignty and territorial
integrity; (e) attainment of the highest standard of capability and preparedness
against disasters and emergencies; and (f ) implemented security sector reforms.
The strategic framework will be guided by the principles of primacy of
the peoples welfare; respect, promotion and protection of human rights;
acceptance of social diversity and cultural inclusivity; and promotion of a
culture of peace and gender sensitivity.
Strategies on subsector outcome A: Winning the peace

The government aims to significantly increase the number of communities
in conflict-affected areas that are able to return to peaceful conditions where they
can achieve their desired quality of life.
Strategies and programs to win the peace will follow two tracks: pursuing
negotiated political settlement of internal armed conflict; and effectively
addressing the causes and impacts of internal armed conflicts and other issues
affecting the peace process.
Intermediate outcome 1: Negotiated political settlements of all

internal armed conflicts achieved
Table 8.2 presents the revalidated RM on subsector outcome A, as well
as intermediate outcome 1, which is the achievement of negotiated
political settlements of all internal armed conflicts.
Peace and
security
187
Table 8.2. Revalidated results matrix (RM) on subsector outcome

A and intermediate outcome 1 of peace and security
End-ofPlan
target
Subsect o r o u tco m e A: Co m m u n i t i e s in a re a s a f f e ct e d by
a n d vu l n e ra ble
t o a r m e d co nf lict ret u r n t o p e a cef u l co n d it i o n s w h e re (2016)
t h e y ca n a c h i eve
Indicators
Baseline
t h e i r d e sire d q u a l i ty of life
Level of armed hostilities and other forms of violent incidents involving the following
armed rebel groups significantly decreased
Armed encounters
between GPH and MILF
decreased
14 (2010)
Armed encounters
between GPH and CPP/
NPA/NDF 8 4 significantly
decreased
2 97 (2010)
Significantly decreased
Intermediate outcome 1: Negotiated political settlements of all internal

armed conflicts achieved
Comprehensive Peace
Agreement between
GPH and MILF signed
and implemented
GPH-MNLF Final
Peace Agreement
implementation
satisfactorily
completed 8 6
Political settlement with
CPP/NPA/NDF forged
Closure Memorandum
of Agreement (MOA)
between GPH
and CBA-CPLA
fully implemented
Declaration of Continuity
for Peace Negotiation
signed (2010)
Agreements reached
during the Tripartite
Implementation Review
of the GPH-MNLF 1996
Final Peace Accord
(2011)
Peace talks
at impasse
since 2 0 0 4 (2010)
GPH-CBA-CPLA
Joint Declaration of
Commitment for Peace
signed (2011)
GPH-MILF Comprehensive
Peace Agreement signed and
implemented 8 5
GPH-MNLF Final Peace
Agreement implementation
satisfactorily completed
Political settlement with CPP/
NPA/NDF forged 8 9
Closure MOA fully
implemented 9 0
Based on AFP data estimates on NPA-initiated violent incidents involving guerilla operations
Bangsamoro Government established
86
Based on resolution issued by MNLF or OIC affirming the satisfactory implementation of the 1996 Final
Peace Agreement
87
This includes the following: (a) Amendatory bill to RA 9054 drafted based on the common proposals
and common grounds of the GPH and MNLF signed by both parties; (b) Terms of Reference on
Bangsamoro Development Assistance Fund and Tripartite Implementation Monitoring Committee agreed
upon during the meetings of the Expert Working Groups composed of representatives
88
This includes the following: (a) MNLF Legislative Agenda included in the draft Bangsamoro
Basic Law; (b) MNLF represented in the Bangsamoro Transition Authority; and (c) MNLF
participating in the Bangsamoro Government
89
Level of armed violence lowered, if not ended, leading to the closure of the armed conflict
90
Closure MOA fully implemented (CBA-CPLA and RPM-P/RPA/ABB)
84
85
188
Indicators
Closure MOA with Tabara

Paduano Group (TPG) of
RPM-P/RPA/ABB
signed
and fully implemented
Members of Nilo Dela Cruz
Group (NDCG) of RPM-P/
RPA/ABB mainstreamed as
productive and peaceful
members of their receiving
communities
Percentage of former
rebels and their families
who are enrolled in
reintegration programs are
mainstreamed as
communities91
Baseline
Formulation of closure MOA

with TPG of RPM-P/
RPA/ABB ongoing (2011)
Formulation of closure MOA
with TPG of RPM-P/
RPA/ABB ongoing (2011)
Formulation of reintegration
programs for the different
peace tables ongoing (2011)
End-ofPlan
target
(2016)
Closure MOA between GPH
and TPG of RPM-P/
RPA/ABB signed and fully
implemented
Members of NDCG of
RPM-P/RPA/ABB
mainstreamed as productive
and peaceful members of
their receiving communities
100% of former rebels
and their families who
are enrolled in
reintegration programs are
mainstreamed as
communities
Completion and implementation of the Comprehensive Peace Agreement with

the MILF will lead to the enactment of the Bangsamoro Basic Law that will
establish an all-inclusive Bangsamoro Government in 2016. The Transition
Commission will complete the draft Law by 2014. Other milestones include
the setting up of the Bangsamoro Transition Authority and the establishment
of the Bangsamoro Government in time for the 2016 elections.
W ithin the Plan period, the government also targets the following: (a)
final completion of the Tripartite Implementation Review Process and inclusion
of the MNLF legislative agenda into the Bangsamoro Basic Law; (b) the
resumption of time-bound and agenda-based talks with the CPP/NPA/NDF; (c)
completion of signed final closure agreements with the CBA-CPLA and
RPM-P/RPA/ABB; and (d) the final disposition of arms of said groups and
mainstreaming of former rebels as productive members of society, in accordance
with peace agreements.
Intermediate outcome 2: Causes and impacts of all internal armed

conflicts and other issues that affect the peace process effectively
addressed
Table 8.3 shows the revalidated RM on effectively addressing the causes
and impacts of all internal armed conflicts and other issues affecting the peace
process.
A Former Rebel Information System (FRIS) is currently being developed as a means to monitor
this specific indicator.
91
Peace and
security
189
Table 8.3. Revalidated results matrix (RM) on intermediate outcome 2 of

peace and security
Indicators
Baseline
End-ofPlan
target
(2016)
Intermediate outcome 2: Causes and impacts of all internal armed conflicts and
other issues that affect the peace process effectively addressed
Access to the following basic social services improved in provinces92 with communities
affected by and vulnerable to armed conflict:
88.16% (SY 2 010-2011)
99%
93
94
Net enrolment rate in primary
education increased
Net enrolment rate
53.90% (SY 2010-2011)
71%95
in secondary education
increased
Percentage of households with
77.17% (2011)96
88%97
access to improved safe water
supply increased
Institutions in communities affected by and vulnerable to armed conflict strengthened
Number of Transparency
and Accountability
Mechanisms fully operational
in PAMANA implementation
increased
Mechanisms to address
grave human rights
violations established and
implemented
Response System (MRRS) to
address grave child rights
violations in situations of armed
conflict established and
operational
Number of fully recognized
Certificates of Ancestral Domain
Title (CADT) issued to
indigenous peoples through
PAMANA support increased
Mechanism framework for

conflict-affected areas
drafted (2011)
5 Transparency and
Accountability Mechanisms98 fully
operational in PAMANA areas
Task force against political

violence created (AO 211, s.
2007); RA 9745, Anti-Torture
Act, signed (2010)
No MRRS established (2010)
Legal framework and

enforcement procedures
on grave human rights
violations strengthened
MRRS fully operational with
enhanced CIAC Program
Framework
Zero (2010)99
13 CADTs (Regions IV, IX, XI

and XIII)
Including independent cities

Enrolment Rate for SYs 2010-2011 and 2011-2012 were computed based on the 2007 National Census
on Population and Housing Net Enrolment Rate - Total number of pupils/students of the official school age
group who are at primary or secondary education levels, expressed as a percentage of the primary population
94
End of Plan target is 2016 national target for adjusted net enrolment rate based on two-year
threshold for overage children
95
End of Plan target is 2016 national target for net enrolment rate
96
From the DOH-Field Health Information System (FHSIS)
97
National target
98
(a) Third party monitoring; (b) Web posting; (c) Project and community billboards; (d) Performance-based
fund releases; and (d) Grievance Redress System
99
PAMANA launched as national convergence program and framework for peace and development in 2011
92
93
190
Indicators
Mechanism100 for monitoring

and addressing IP rights
operational
Gender-responsive and
conflict-sensitive policies
/ programs / support services
for women and children in
conflict situations identified and
mainstreamed in national
government agencies and
LGUs in PAMANA provinces
Baseline
Mechanism for alternative

dispute resolution in place:
participatory monitoring and
actual handling of reported
incidences/ cases (2010)
National Action Plan (NAP) on
Women, Peace and Security
drafted (2010)
End-ofPlan
target
(2016)
Mechanism for monitoring
and addressing IP rights
operational
conflict-sensitive policies
/ programs / support
services for women and
children in conflict
situations identified and
mainstreamed in 17 national
government agencies and local
government units in 43
PAMANA provinces
Conflict-sensitive, peace-building and gender-sensitive lens in governance mainstreamed:

Percentage of agency
Zero (2010)101
100% (4 out of 4 national
programs related to the
government agencies: DILG,
peace process capacitated on
Departments of Social Welfare
conflict sensitive planning,
and Development or DSWD,
implementation and
Agriculture or DA,
monitoring and evaluation
and Environment and Natural
increased
Resources or DENR)
Percentage of provinces with
Zero (2010)
100% (43 out of 43
communities affected by and
provinces)
vulnerable to armed conflict
equipped with tools and
processes for conflictsensitive, peace-promoting
and gender-responsive
planning and programming
increased
Promoting greater convergence in the implementation of the PAMANA

PAMANA will remain as the flagship development program in areas affected
by conflict, but with greater convergence with other existing government
programs and LGU plans. All PAMANA interventions will ensure synergy
and avoid duplication with the DILGs Bottom-up Budgeting Approach,
Seal of Good Housekeeping and SALINTUBIG programs, and the
Department
of
Energys (DOE) Barangay Electrification and Sitio
Electrification Project. Water, road and electrification projects will be
implemented according to criteria and standards
Quick Response Team for Indigenous Peoples Human Rights Violations capacitated and institutionalized in
all Indigenous Peoples ethnographic regions
101
PAMANA launched as national convergence program and framework for peace and development in 2011
100
Peace and
security
19
1
set by lead government agencies and with strong conflict-sensitive and

peace- promoting processes. All PAMANA implementing partners will be
continuously capacitated in order to ensure that PAMANA implementation
helps mitigate existing causes of conflict and prevent the occurrence of new
ones.
Strengthening institutions
The government will continue to strengthen reforms initiated when the
interim ARMM Governor took office in 2012, as well as accelerate the
delivery of basic services to catch up with the attainment of the Millennium
Development Goals (see Chapter 6: Social development). The current
ARMM government will accomplish these to provide a better baseline of
governance and development once the Bangsamoro Basic Law becomes a reality.
Gender-related provisions in the FAB will be translated into concrete
programs for Bangsamoro women. There will also be stronger support in
implementing the NAP on related UN Security Council resolutions to increase
women participation and incorporate gender perspectives in all peace-building
and development efforts. The government will also continue implementing
the MRRS and enhance the comprehensive program framework for the
protection of children in situations of armed conflict.
The government will also support indigenous peoples (IPs) agenda by:
(a) professionalizing the service bureaucracy; (b) strengthening processes
towards full recognition of certificates of ancestral domain titles; (c)
establishing mechanisms to protect IP rights; (d) complying with the
International Convention on the Elimination of All Forms of Racial
Discrimination and the Convention of the Rights of the Child; and (e)
ratifying International Labour Organization (ILO) Convention No. 169, or the
Convention on Indigenous and Tribal Peoples.
Conscious efforts to forge multi-sectoral and multi-stakeholder partnerships
will be pursued to further strengthen mechanisms to end impunity,
enforced disappearances, torture and other grave human rights violations.
Strong support will be provided to ARMM and the National Commission
on Muslim Filipinos towards the development of the Halal industry (see
Chapter 3: Competitive and innovative industry and services sectors),
institutionalization of the Hajj Management system, establishment of a
framework for Islamic finance and strengthening the Shariah Courts System.
The government will pursue efforts to rationalize land use policies (see
Chapters 4: Competitive and sustainable agriculture and fisheries sector; 9:
Sustainable and climate-resilient environment and natural resources; and 10:
Accelerating infrastructure development), since armed conflicts are largely
rooted in long-standing disputes over land and resources.
192
Strategies on subsector outcome B: Ensuring national

security
The government aims to significantly reduce criminality, uphold sovereignty,
and ensure protection of its people, thus, creating a safer and more secure
environment conducive to national development. Table 8.4 shows the
revalidated RM of intermediate outcomes under peace and securitys subsector
outcome B.
End-ofTable 8.4. Revalidated results matrix (RM) on subsector outcome

Indicators
B and intermediate outcomes 3, 4 and 5 of peace and security Plan
Baseline
target
(2016)
80
Int ermediat e o u tco m e 3: Int ernal s tability sustained 52
Number of provinces free from armed
conflict increased
Crime volume reduced 1 0 2
Crime Solution Efficiency rate 1 0 3 improved
annually
1,020,324 (2013)
743,817
27.76% (2013)
38.26%
24% (2011)
15%
Backlogs in DOJ prosecution investigation cases

reduced
53.6% (2011)
30%
Re-offender rate in national prisons reduced
25% (2011)
20%
Backlogs in NBI criminal investigation cases

reduced
Int ermediat e o u tcome 4: Capability t o uphold sovereignty and territorial

int egrity assured
Status in the US State Departments
Trafficking in Persons Report improved
Tier 2 watch list

Tier
1
Int ermediat e o u tcome 5: Highest standard of capability and preparedness against
disasters and emergencies att ained
Number of provinces with all of its cities
and majority of its municipalities having
functional and empowered Local Disaster
Risk Reduction and Management Office
20 (2013)
80
increased
For indicators on crime volume and crime solution efficiency, the rectified crime statistics in 2013 will be
used as the new baseline data, which reflect not only those reported to the PNP but also those reported to the
barangays and other law enforcement agencies.
103
Crime Solution Efficiency percentage of solved cases out of the total number of crime incidents handled by
law enforcement agencies for a given time; Solved Cases A case shall be considered solved when the
following elements concur: (a) the offender has been identified; (b) there is sufficient evident to charge the
offender; (c) the offender has been taken into custody; and (d) the offender has been charged before the
prosecutors office or court of appropriate jurisdiction.
102
Peace and
security
193
Strategies and programs to ensure national security are expected to contribute

to four intermediate outcomes: (a) internal stability sustained; (b) capability to
uphold sovereignty and territorial integrity of the stated assured; (c) highest
standard of capability and preparedness against disasters and emergencies
achieved; and (d) security sector reforms implemented.
Intermediate outcome 3: Internal stability sustained

To reduce the incidence of armed conflict, the government will pursue
interagency cooperation through the IPSP-Bayanihan and support civilian
agencies in law enforcement and development in conflict areas.
The government will also intensify police and other law enforcement
agencies operations by:
Increasing police presence in crime-prone areas and strategic locations
through recruitment of additional uniformed personnel, provision of
complete mission- essential equipment and construction of additional police
stations;
Strengthening police and community partnerships;
Intensifying law enforcement interventions against organized crime groups;
Improving crime investigation, prosecution, and resolution by
upgrading crime investigation facilities and equipment, providing
additional forensic laboratories in Baguio and Davao, and augmenting
personnel augmentation;
Formulating a modern Criminal Code responsive to new laws, current
social conditions and emerging crime trends;
Implementing reforms in the justice system to address case congestion
and backlogs;
Upgrading detention and corrections facilities and equipment to
improve security, living conditions and rehabilitation of inmates;
Formulating a National Cyber Security Plan; strengthening enforcement
mechanisms for cybercrime detection, investigation and prosecution;
and forging multilateral and bilateral agreements on cyber security; and
Establishing a crime victimization survey.
Intermediate outcome 4: Capability to uphold sovereignty and

territorial integrity assured
The Philippines will continue to secure international support and
cultivate international relations in pursuing legitimate rights over the West
Philippine Sea. The government will also work towards formally establishing
the Philippines archipelagic sea lanes and maritime zones.
194
Strengthened cooperation with external bilateral and multilateral partners

will help the country address security and defense issues through capacity
building and operations support in matters related to transnational crime,
human assistance, disaster relief, and the protection and preservation of natural
resources.
Modernizing defense and security establishments will enable concerned
agencies to perform the full spectrum of their roles in accordance with
the comprehensive and updated definition of national security. This entails
the following:
Enhancing their capability to perform all types and levels of internal
and external operations, including nontraditional support to development;
Acquiring modern equipment to support territorial defense activities;
Establishing the presence of effective and competent forces in disputed
areas through greater surveillance and monitoring capability;
Ensuring that maritime assets, territorial integrity, and coastal areas
are protected in accordance with the Archipelagic Baselines Law (RA
9522) by upgrading air and maritime capability and expanding coverage of
coast watch stations; and
Providing expedient and efficient response to maritime incidents.
The government will also improve its capability on border management,
surveillance and detection against lawless elements. This entails enhancement of
border security through upgrading of surveillance, detection capacity and
information systems to thwart the entry of foreign terrorists, human traffickers
and smugglers of antisocial goods and weapons of mass destruction. The country
will build up and update its database of aliens through an Alien Registration
Program, as well as strengthen coordination with the International Criminal
Police Organization and other intelligence/law enforcement agencies. The
enactment of the new Philippine Immigration Law and Customs
Modernization Act will further improve border control and management in
the face of transnational crimes, migration trends, continued increase of
overseas workers, and tourism development.
Intermediate outcome 5: Highest standard of capability and

preparedness against disasters and emergencies attained
As the government builds the LGUs disaster management capabilities, it
is also imperative to strengthen the security sector in emergency relief and
rescue operations by developing its organic capability to respond to calamities
and disasters. The government will transform the sector to become more
dynamic, proactive, and responsive by promoting synergy among stakeholders
and the communities in disaster prevention and preparation (see Chapter 9:
Sustainable and climate- resilient environment and natural resources). Along
this line, it will secure and protect critical infrastructures, facilities and other
high value assets of the public and private sector (see Chapter 10: Accelerating
infrastructure development).
Peace and
security
195
Intermediate outcome 6: Security sector reforms implemented

Agencies under the security sector will undergo reorganization, retooling,
and reorientation to keep up with the constantly changing policy and security
strategy environment. All officers, both commissioned and non-commissioned,
as well as civilian employees will undergo continuing training on human rights,
international law, and cultural sensitivity.
The government will continue its reforms as laid out in the DNDs
Philippine Defense Transformation Program and the PNPs ITP-PGS, to
rationalize and integrate security forces (government and civilian/public and
private) to address threats and challenges against peace. Capacity-building
efforts of LGUs in managing peace and order concerns will be supported,
alongside the broadening of the peace constituency by partnering with local and
national civil society groups and the private sector.
Legislative agenda
Sustaining a stable national security environment is crucial to deliver basic
services even in the most remote areas of the country, ensure human security and
ultimately attain inclusive development. W ith this, the government will
work towards the passage of the following legislation within the Updated Plan
period:
Peace
Bangsamoro Basic Law, establishing the Bangsamoro political entity that
will replace the existing ARMM;
Rights of IDPs Act, providing protection for IDPs during and after
armed conflicts, natural calamities, aggressive implementation of
development projects, and other related matters; and
Protection of children in situations of armed conflict, providing protection
to children in situations of armed conflict as guaranteed under the
Convention of the Rights of the Child, its Optional Protocol on the
Involvement of Children in Armed Conflict and all other core human rights
treaties.
Security
New Criminal Code, amending/updating the old Revised Penal Code,
to be more responsive to new laws, current social conditions and
emerging crime trends;
Criminal Investigation Law, rationalizing the investigation of crimes
and criminal complaints by integrating the functions of investigating law
enforcers and prosecutors, and repealing RA 5180 that prescribes the
conduct of preliminary investigation by prosecutor;
196
Amended Cybercrime Law,

Cybercrime Prevention Act;
addressing
legal
issues
on
the
Amended Witness Protection Law, strengthening the W itness

Protection, Security and Benefit Program by expanding its coverage and
security capability;
National Defense and Security Act, rationalizing previous enabling laws
on national defense and security, from the National Defense Act of 1935 to
the 1987 constitution;
Philippine Maritime Zones, providing the necessary flexibility in the
enactment of subsequent laws pertinent to the rights and obligations of the
Philippines over its own maritime zones in accordance with the UNCLOS;
Philippine Archipelagic Sea Lanes, establishing the Philippines archipelagic
sea lanes as espoused in Article 53 of the UNCLOS;
New Philippine Immigration Law, amending the old immigration law
to improve border control and management in the face of transnational
crimes, human trafficking, migration trends, continued increase of overseas
workers, and tourism development;
PNP Reorganization Plan, strengthening the PNPs organizational
and functional structures by streamlining administrative functions
from the uniformed to non-uniformed personnel and maximizing various
police field services in maintaining peace and rule of law;
PNP Modernization Program, outlining a five-year program on
the development of its human resources, doctrine, infrastructure and
facilities, and equipment acquisition and support system, over and above
the annual Capability Enhancement Program; and
NBI Modernization Law, strengthening the NBIs organization and
functional structure to enhance and modernize its investigative capacity.
Peace and
security
197
IV. PLAN IMPLEMENTATION

The Office of the Presidential Adviser on the Peace Process (OPAPP) is
the lead agency in the peace negotiations. It also coordinates the
PAMANA program, with DILG, DSWD, Departments of Health
(DOH), Education (DepEd), Commission on Higher Education
(CH ED), D OE, DENR, National
Electrification
Administration
(NEA),
Technical
Education and Skills Development Authority
(T ESDA), National
Commission
on Indigenous Peoples (NCIP),
Philippine Commission on Women (PCW ), Council for the Welfare of
Children (CWC) and the concerned LGUs and other agencies
implementing specific components. Security agencies on the other hand,
such as DND, DILG, Department of Foreign Affairs and D OJ, including
their support units and bureaus such as the AFP, PNP, BFP, BI, NBI, National
Security Council (NSC), Philippine Coast G uard (PCG) and Bureau of
Customs (BoC), are responsible for protecting the country and its people.
The annual outcome targets for peace and security are shown in Table
8.5. The accomplishments for these sectors shall be reported to the NEDA
Board- Regional Development Committee or the Cabinet Cluster on Security,
Justice and Peace.
Indicators
Annual
Plan
targets2013-2016
(in %)
Table
8.5. Annual target indicator matrix
on peace
and security,
2013
2014
2015
2016
Means
of
verificat
ion
Subsector outcome A: Communities in areas affected by and vulnerable to conflict return to peaceful conditions
where they can achieve their desired quality of life
Level of armed hostilities and other forms of violent incidents involving the following armed rebel groups
significantly decreased
Armed encounters
0
Agency
reports
decreased
Armed encounters between
GPH and CPP/ NPA/NDF
significantly decreased
Intermediate outcome 1: Negotiated political settlements of all internal armed conflicts achieved
Comprehensive Peace
GPH-MILF
Bangsamoro
Bangsamoro
GPH-MILF
Agency
Agreement between GPH
CompreBasic Law
Transition
Comprehenreports
and MILF signed and
hensive
passed
Authority
sive Peace
implemented
Peace
established
Agreement
Agreement
signed and
completed
implewith signing
mented104
of four
Annexes to
the FAB
104
198
Bangsamoro Government established
Agency
responsi
ble
DND-AFP,
OPAPP
OPAPP
Indicators
2013

2014
2015
2016
GPH-MNLF Final
Peace Agreement
implementation
satisfactorily
completed105
Tripartite
Implementation Review
Process
completed
Political settlement with

CPP/NPA/NDF forged
Broad-based
consultations
and liaison
work with
stakeholders
conducted
MNLF
Legislative
Agenda
included in
the Bangsamoro Basic
Law
Broad-based
consensus
against use of
armed
violence
achieved
Closure Memorandum of
Agreement (MOA) between
GPH and CBA- CPLA fully
implemented
Closure MOA
implementted
Closure
MOA fully
implement-
Closure MOA with Tabara

Paduano Group (TPG) of
RPM-P/RPA/ABB
signed
and fully implemented
MNLF represented in the

Bangsamoro
Transition
Authority
Broad-based
consensus
against use of
armed
violence
achieved and
peaceful
political
settlement
with CPP/
NPA/ NDF
forged
GPH-MNLF
Final Peace
Agreement
implementation
satisfactorily
completed106
Political
settlement107
with CPP/
NPA/ NDF
forged
Means
of
verificat
ion
Agency
responsi
ble
Agency
reports
OPAPP
Mechanisms for
transformation sustained
ted108
Closure MOA
with TPG of
RPM-P/RPA/
ABB fully
implemented
Closure MOA
with TPG of
RPM-P/RPA/
ABB fully
implemented
Mechanisms
for
transformation sustained
Based on resolution issued by MNLF or OIC affirming the satisfactory implementation of the 1996 Final
Peace Agreement
106
MNLF included in the Bangsamoro Government
107
Level of armed violence lowered, if not ended, leading to the closure of the armed conflict
108
Closure MOA fully implemented (CBA-CPLA and TPG of RPM-P/RPA/ABB)
105
Peace and
security
199
Indicators

2013
2014
2015
2016
Members
Reinte-
Means
of
verificat
ion
Agency
responsi
ble
Agency
reports
OPAPP
of NDCG of
gration
RPM-P/RPA/
Mecha- program ABB main- nisms for
for NDCG
streamed as
continuing
of RPM-P/
productive dialogueRPA/ ABB
and
peaceful established
developed
members
and impleof their
mented
receiving
communities
100%
Causes and impacts of all internal armed conflict and other i
Members of Nilo Dela Cruz

Group (NDCG) of RPM-P/
RPA/ABB mainstreamed as
communities
Percentage of former rebels

and their families who are
enrolled in reintegration
programs are mainstreamed
as productive and peaceful
communities109
Intermediate outcome 2:
process effectively address
ed
ces improved in provinces111 w ith communitie
sic social servi

97%
98%
99%
68%
70%
71%
96%
65%
88%112
A Former Rebel Information System (FRIS) is currently being developed as a
this specific indicator.
110
Act as Oversight
111
Including independent cities
112
National target
109
Access to the following ba

2 to0 0armed conflict:Philippine Development Plan 2 011-2016 MIDTERM UPDATE
Net enrolment rate in
primary education
DILG, AFP,
DENR,
DSWD, PHIC,
CHED, LGUs,
110
means
to monitor
OPAPP
t the peace
nd vulnerable
Indicators
2013

2014
2015
2016
Institutions in communities affected by and vulnerable to conflict strengthened

Number of Transparency
4
4
5
and Accountability
mechanisms
mechanisms
mechanisms
Mechanisms fully operational
in PAMANA implementation
increased
Mechanisms to address
grave human rights
implemented

Response System (MRRS)
to address grave child
rights violations
in situations of armed
conflict established and
operational
Number of fully recognized
Certificates of Ancestral
Domain Title (CADT) issued
to indigenous peoples
through PAMANA support
increased
Mechanism114 for
monitoring and
addressing IP rights
violations established
and operational
5 CADTs
6 CADTs
5
mechanisms113
Means
of
verificat
ion
Agency
responsi
ble
Agency
reports
OPAPP,
PAMANA
Implementing
Agencies
Legal
framework
and
enforcement
procedures
on grave
human rights
violations
strengthened
DOJ, CHR,
DND, AFP,
DILG, PNP,
OPAPP
MRRS fully
operational with
enhanced CIAC
Program
Framework
CWC, DSWD
2 CADTs in
2016, total
of 13 CADTs
(Regions IV,
IX, XI, XIII)
for the Plan
Period
Mechanism
for
monitoring
and
addressing
IP rights
violations
established
and
operational
NCIP, DENR
NCIP
(a) Third party monitoring; (b) Web posting; (c) Project and community billboards; (d)
Performance- based fund releases; and (d) Grievance Redress System
114
Quick Response Team for Indigenous Peoples Human Rights Violations capacitated and institutionalized in
all Indigenous Peoples ethnographic regions
113
Peace and
security
2 01
Indicators
2013
conflict-sensitive policies/
programs/ support services
for women
and children in conflict
situations identified and
mainstreamed in national
government agencies and
LGUs in PAMANA provinces
11 NGAs and
LGUs in 27
PAMANA
provinces
capacitated
on the NAP

2014
2015
2016
17 NGAs and
LGUs in 43
PAMANA
provinces
integrated
and
implemented NAP
policies/
programs/
services
in their
respective
plans
17 NGAs and
LGUs in 43
PAMANA
provinces
mainstreamed
NAP
policies/
programs/
services in
their respecttive plans
17 NGAs and
LGUs in 43
PAMANA
provinces
mainstreamed NAP
policies/
programs/
services
in their
respective
plans
Conflict-sensitive, peace-building and gender-sensitive lens in governance mainstreamed:

Percentage of agency
100% of
100% of
100% of
100% of
programs related to the
agency
agency
agency
agency
peace process capacitated on
programs
programs
programs
programs
conflict sensitive planning,
related to
related to
related to
related to the
implementation and
the peace
the peace
the peace
peace process
monitoring and evaluation
process in
process in
process in
in 4 out of
increased
2 out of 2
4 out of
4 out of
4 national
national
4 national
4 national
government
government
government
government agencies: DILG,
agencies:
agencies:
agencies:
DSWD, DA and
DILG and
DILG,
DILG,
DENR
DSWD
DSWD,
DSWD,
DA and
DA and
DENR
DENR
Percentage of provinces
with communities affected
by and vulnerable to armed
conflict equipped with tools
and processes for conflictsensitive, peace- promoting
and gender- responsive
planning and programming
increased
70%
(30 out
of 43
provinces)
115
202
79%
(34 out
of 43
provinces)
100%
(43 out
of 43
provinces)
Acts as Oversight
100%
(43 out
of 43
provinces)
Means
of
verificat
ion
Agency
responsi
ble
Agency
reports
PCW, National
Steering
Committee on
Women, Peace
and Security115
Agency
reports
OPAPP, DILG,
DSWD, DA and
DENR
OPAPP,
PAMANA
Implementing
Agencies and
LGUs
Indicators
2013

2014
2015
2016
Means
of
verificat
ion
Agency
responsi
ble
Subsector outcome B: Safer and more secure environment conducive to national development created and sustained
Intermediate outcome 3: Internal stability sustained

Number of provinces
59
66
73
80
free from armed
conflict increased
Crime volume reduced
1,020,324
918,292
826,463
743,817
Crime Solution Efficiency
27.76%
31.26%
34.76%
38.26%
rate improved annually
Backlogs in NBI
16%
15%
15%
15%
criminal investigation
cases reduced
Backlogs in DOJ
45%
40%
35%
30%
prosecution investigation
cases reduced
Re-offender rate in national
23%
21%
20%
20%
prisons reduced
Intermediate outcome 4: Capability to uphold sovereignty and territorial integrity assured
Status in the US State
Tier 2 Status
Tier 1 Status
Tier 1 Status
Tier 1 Status
Departments Trafficking in
Persons Report improved
Agency
reports
DND-AFP
DILG-PNP
DOJ-NBI
DOJ
DOJ-BuCor
Intermediate outcome 5: Highest standard of capability and preparedness against disasters and
emergencies attained
Number of provinces
20
40
60
80
with all of its cities and
majority of
its municipalities having
functional and empowered
Local Disaster Risk
Reduction and
Management Office
increased
US State
Departments
published
report
DOJ
Agency
reports
LGUs, DNDOCD, NDRRMC
Intermediate outcome 6: Security sector reforms implemented

Peace and
security
203
Sustainable
climateand
environment
resilient
natural
and
resources
I. INTRODUCTION
Vital to the achievement of the countrys inclusive growth is the improvement
of the state of the environment and natural resources (ENR). Sustaining the
services that will improve the state of the countrys ecosystem will support
critical growth sectors and resource-dependent communities amidst risks posed
by climate change and natural disasters.
The vision for a sustainable and climate-resilient environmentone that
provides for present and future generations of Filipinoswill continue to be
pursued for the remaining years of the Aquino administration. As shown in
Figure 9.1, this result consists of three subsector outcomes: (a) improved
adaptive capacities of human communities; (b) sustainably managed natural
resources; and (c) improved environmental quality for a healthier and cleaner
environment.
These outcomes will be pursued through an ecosystems approach that is
integrated and based on prevention, science, rights, and community; sound
environmental impact assessment; and cost-benefit analysis. Such interventions
will be anchored on the principles of shared responsibility, effective institutions
and good governance, participation, social and environmental justice,
intergenerational space, and gender equity.
II.ASSESSMENT, CHALLENGES AND OPPORTUNITIES

The state of ENR has modestly improved during the first two years of the
Aquino administration. According to the Environmental Performance Index
(EPI) in 2012,116 the Philippines is categorized as a strong performer and
ranked 42nd out of 132 countries (higher than Australias 48th, USAs 49th,
Singapores 52nd, and Israels 61st). Despite this, the full benefits from the
ecosystems services still have to be optimally utilized in achieving inclusive
development. W hile the economy grew by 6.8 percent in the same year,
aggregate contribution of the agriculture, forestry and fisheries sector accounts
for a meager 2.8 percent compared to industry117 and services118 with 6.8 and 7.6
percent, respectively.
Vulnerability to climate change and natural disasters

As the third most vulnerable country to natural hazards119 and 14th most affected
by adverse impact of climate change120 (see Figure 9.2), the Philippines
experienced
The biennial assessment ranks countries performance indicators covering both environmental public health
and ecosystem vitality.
117
Development
Plan mining
2 011-2016
MIDTERM
UPDATEconstruction, electricity, gas and water supply
Includes
and quarrying,
manufacturing,
118
Includes transport, storage and communication
119
United Nations University-Institute for Environment and Human Security (2012)
120
German Watch (2013). Global Climate Risk Index
116
206
Philippine
Figure 9.1. Results framework on sustainable and climateresilient environment and natural resources
employment created
Goal
Intermediate
goals
Rapid and sustained

economic growth
achieved
Sustainable and climateresilient environment and

natural resources achieved
Sector outcome
Subsector
outcomes
Equal development
opportunities
achieved
Adaptive capacities of
human communities
improved
Sustainably managed
natural resources
achieved
Environmental
quality improved for a
healthier and cleaner
environment
tragedies due to the occurrence of extreme climate events. Damage to

properties from disasters in 2012 cost about PhP50.32 billion (Figure 9.3).
Direct cost from this damage had an estimated share of 1.44 percent of the
countrys gross domestic product (GDP) in the same year. In 2013, typhoon
Yolanda recorded the highest damage from typhoon events amounting to
PhP571.11 billion (Box 9.1).
Figure 9.2. Climate change projections, 2020 and 2050
(a) Seasonal temperature increase, in C
(b) Rainfall change (increase/decrease), in %
Source: Philippine Atmospheric, Geophysical and Astronomical Services Administration

(2011). Climate Change in the Philippines
Note: DJF=December, January, February; MAM=March, April, May; JJA=June,
July August; SON=September, October November
Sustainable and climate-resilient environment and natiural resources
207
Figure 9.3. Estimated direct cost of damage to properties of natural

disasters by sector, 2000-2012 (in million PhP)
Infrastructure
5000
0
4000
0
Agriculture
Private/Commer
cial
3000
20000
0
10000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2010 2011 2012
Year
The past two years focused on preparatory activities toward full operation of
long- term actions on climate change adaptation and mitigation (CCA/M) and
disaster risk reduction and management (DRRM). These include the
passage of the Peoples Survival Fund (PSF) in 2012 (RA 10174), completion
of climate change projection at the provincial level, implementation of the
Nationwide Operational Assessment of Hazards (NOAH), geohazard mapping
and assessment of all cities and municipalities at 1:50,000 scale, and
mainstreaming of CCA/M and DRRM in LGUs comprehensive land use plans,
among others.
Sustainable management of natural resources

Forest governance, protection and management
The Department of Environment and Natural Resources (DENR)
continues to intensify reforestation activities, particularly in 18 priority river
basins.121 To achieve the goal of 30-percent forest cover (9 million hectares) by
2016, Executive Order (EO) 23 was issued to curb deforestation of remaining
natural and residual forests122
and EO 26, to intensify reforestation
123
activities.
As of 2012, the National Greening Program (NGP) covered a
total of 350,321 hectares, generated approximately 380,696 jobs and recorded
an estimated carbon sequestration potential of up to 38.9 million tons worth
PhP14 billion.124
To sustain these positive gains, forest protection programs will be
intensively pursued with civil society organizations (CSOs) and the private
sector. As the lead agency, the DENR will develop a commodity road map for
timber and non- timber plantations within NGP sites, as well as in Integrated
Forest Management Agreement (IFMA) areas, to harness the forests
production potential. The
These are the following river basins covering 108,498 hectares: Cagayan, Mindanao, Agusan,
Pampanga, Agno, Abra, Pasig-Laguna de Bay, Bicol, Abulog, Tagum-Libuganon, Ilog-Hilabangan, Panay,
Tagoloan, Agus, Davao, Cagayan de Oro, Jalaur and Buayan-Malungan.
122
Executive Order No. 23 Declaring a Moratorium on the Cutting and Harvesting of Timber in the Natural and
Residual Forest and Creating the Anti-Illegal Logging Task Force issued February 2011
123
Executive Order No. 26 The National Greening Program issued February 2011
124
Carbon price at $9.2/tonne, 2011 prices (Source: forestcarbonpartnership.org)
121
208
Box 9.1. Damage and losses incurred from Typhoon Yolanda

Owing to its archipelagic nature and geologic structure, the Philippines is
prone to natural disasters including typhoons, earthquakes and volcanic
eruptions. The occurrence of these disasters is believed to have been
exacerbated by climate change. On 8 November 2013, the Philippines
experienced the ferocity of typhoon Yolanda, deemed the strongest ever
recorded, with wind speeds of more than 300 km/h and storm surges of over
four meters. It cut a swath of destruction across the central part of the
Philippines, resulting in grave loss of lives and massive damage to private
and public assets. There were 5,982 reported fatalities as of 12 December
2013 with 1,779 persons still missing. A total of 27,022 people were reported
injured, many of whom would not be able to get back to work or resume their
livelihood activities.
The total damage and loss from typhoon Yolanda has been initially estimated at
PhP571.1 billion (equivalent to US$12.9 billion). About PhP424.3 billion of
the total damage and loss represents the value of destroyed physical assets,
while the remaining PhP146.5 billion represents reduction in production,
sales, and income to date and in the near term. The impact of typhoon
Yolanda was most heavily felt by the economic and social sectors, which
together sustained nearly 93 percent of the total damage and loss (Box Table
9.1.1). The private sector has borne 90 percent of the brunt of the impact of the
disaster, with the remaining 10 percent by the public sector.
Box Table 9.1.1 Damage and loss caused by typhoon Yolanda
Sect
or
Infrastructure
Economic
Agriculture
Industry and
services
Social
Cross-sectoral
Total (in PhP)
Total (in M US$,
$=PhP 44.135)
Dama
Los
Damage and loss (in million PhP)
Tot
ge
Public
Private Publics Private
al
16,024.30
3,743.50
3,743.50
4,285.00
67,560.00
27,560.00
40,000.00
7,108.40
87.00
87.00
-
6,565.40
106,716.60
30,716.60
76,000.00
33,983.00
178,107.10
62,107.10
116,000.00
305,472.10
377,317.10
8,549.20
3,442.30
300.00
10,937.10
247.80
22.628.80
135,910.80
3,079.40
354,718.50
4,300.00
571,108.50
12,940.00
23,175.30
4,000.00
46,943.00
1,063.60
Notes: Data and information from all sectors submitted as of 12 December

2013.
209
DENR will also explore the NGPs potential on carbon sequestration

following established standards in the Philippine National REDD (Reduced
Emissions from Deforestation and Forest Degradation)-Plus Strategy.
Biodiversity conservation
As of 2012, a total of 240 protected areas (PAs) were established covering
5.4 million hectares. Of these, 113 PAs covering 3.57 million hectares
have been formally proclaimed by the President under the National
Integrated Protected Areas System (NIPAS) as terrestrial protected areas
(TPAs, 2.2 million hectares) and marine protected areas (MPAs, 1.37 million
hectares).
Efforts are also underway to expand and strengthen NIPAS by
establishing indigenous community conserved areas (ICCAs) and local
conservation areas (LCAs) managed by local government units (LGUs). By the
end of 2016, a total of 102,000 hectares of ICCAs in seven sites is
expected to be registered with the United Nations Environment
Programme/World Commission Monitoring Center (UNEP/WCMC), along
with six LCAs covering 56,000 hectares through LGU partnership.
The population of three critically endangered speciesPhilippine eagle,
tamaraw and Philippine cockatooimproved due to the implementation of
conservation programs, strict enforcement of regulations on wildlife trade
and hunting, and intensive management of their critical habitats. In 2012, a
total of 6,138 hectares was established as critical habitats while 38 caves have
been classified as safe and open to visitors, making them potential ecotourism
sites for employment generation and economic development in the localities.
Sustaining conservation efforts are greatly dependent on the availability of
adequate financial resources particularly in the establishment of additional key
biodiversity areas, effective management of proclaimed PAs and continuous
implementation of conservation programs for threatened species.
Coastal and marine resources rehabilitation and management

According to Reefs at Risk in the Coral Triangle, local activities such as
overfishing and destructive fishing threaten 98 percent of reefs in the
Philippines. Coastal development along crowded shorelines, as well as
watershed and marine-based pollution, aggravated this degraded state.
W ith the projected impacts of climate change, coastal and marine
ecosystems require intensified protection and rehabilitation.
Integrated coastal resources management is an effective strategy to ensure
better management of coastal and marine resources and prevent further
degradation of coastal areas. In relation to this, two priority seascapesthe
Sulu-Sulawesi
125
210
Procedure for the Execution of Cadastral Survey Projects under the Philippine Reference System of 1992
Marine eco-region and West Philippine Seashave been designated as areas

for sustainable management under the Coral Triangle Initiative (CTI) National
Plan of Action.
The National Mapping and Resource Information Authority (NAMRIA)
completed the preliminary delineation of municipal waters for 928 coastal
LGUs in 2011. However, only 285 coastal LGUs (30.71 percent) have
been certified by neighboring LGUs as of 2012. The delays were due to the
absence of guidelines for LGUs with offshore islands and failure of LGUs with
certified municipal waters to pass the required municipal ordinances.
Sustainable land management

In 2011, the DENR issued Memorandum Order 2011-03125
to accelerate
cadastral surveys to delineate boundaries and facilitate land disposition and
titling, and Administrative Order 2011-06 to prescribe guidelines for the
implementation of land titling in partnership with LGUs. Considering the 90percent accomplishment for distribution of alienable and disposable (A&D)
lands in 2012, the agency is set to issue only about 237,012 remaining patents to
achieve its 2015 target. However, there is a need to fast-track the distribution of
residential patent to achieve its 2016 target of 516,064 patents. In terms of
sustainable land management (SLM), a total of 44,137 hectares of degraded
lands were covered against the target of 50,000 hectares by 2012.
From 2011 to 2012, the National Commission on Indigenous Peoples
(NCIP) issued only two certificates of ancestral domain titles (CADTs) and
none for certificates of ancestral land titles (CALTs). Several reasons for the
delay include the temporary suspension of issuance of pending applications due
to legal issues, moratorium due to the review of the Omnibus Rules on the
Delineation
and Recognition of Ancestral Domains/Lands, continuing
boundary conflicts among claimants, and the alarming peace and order situation
in said areas. Despite these, a total of 107 Ancestral Domains Sustainable
Development and Protection Plans (ADSDPPs) were formulated in 2012 that
serve as bases of convergence efforts for indigenous cultural communities (ICCs)
and indigenous peoples (IPs).
Mineral resource development

In July 2012, the President issued EO 79 which provided policies and
guidelines to ensure environmental protection and responsible mining, and
constituted the Mining Industry Coordinating Council (MICC) as a policy
governing body for mining-related concerns. The MICC provided inputs on the
EOs implementing rules and regulations (IRR), developed an integrated map of
areas closed to mining application, conducted a study on mining fiscal
regime and revenue sharing arrangement, and drafted the revised
G uidelines on Small-scale Mining, among others.
211
Of the 22 abandoned mines, the government targets the full rehabilitation

of Bagacay and completion of risk assessment of five abandoned mine sites by
2016.126 As of 2012, rehabilitation of Bagacay was only 87 percent of its 2012
target, while the five other abandoned mines are on track with the 55-percent
completion of their risk assessment. Rehabilitation of these six priority mines
will be fast-tracked, along with inclusion of additional five abandoned mines
targeted for 70-percent risk assessment from 2013 to 2016.127
Environmental quality
Air
Measuring air quality using the total suspended particulate (TSP) level is
difficult to establish as it depends highly on available monitoring stations. As
shown in Figure 9.4, 10 stations in Metro Manila still registered below the
normal TSP level of 90 micrograms per normal cubic meter (ug/Ncm) in 2012.
On the other hand, only three of 12 monitoring stations outside the capital
registered within standard levels, namely, Saluysoy in Bulacan, Mandaue City in
Cebu and Zamboanga City Medical Center.128
Figure 9.4. Total suspended particles (TSP) level in Metro Manila
TSP level (in

ug/Ncm)
350
300
250
200
150
100
5
0
0
2004 2005
2011 2012
2006
2007
2008 2009
Year
2010
VALENZUE
LA EDSA
NPO
EDSA
EAST AVE.
QC.
ATENEO KAY.,
QC.
MANDALUYON
G PASIG
MAKATI
TARG
EDSA,
ET
MRT
MARIKIN
A
MANILA, Rizal
Ave. AVERAGE
Abandoned mines for 100-percent risk assessment include Antamok Mine, Black Mountain Inc., Consolidated
Mines Inc., Dizon Cu-Aq Mines, Inc and Construction and Devt. Corp.
127
Abandoned mines for 70-percent risk assessment include north Davao Tailings Dam, Bano Mine, Palawan
Quicksilver, Philippine Iron Mines, and Batong Buhay Mine.
128
12 TSP Monitoring Stations outside Metro Manila include those in Alaminos; San Fernando City; Saluysoy;
Cabanatuan; San Fernando, Pampanga; Iriga City; Panganiban Drive; Mandaue City; Zamboang City
(i.e., Medical Center, Brgy. Sto. Nino, San Jose Road, and Phil. Int. Devt. Inc.); and Davao City.
126
212
The modest improvement in air quality is attributed to policies and

programs providing additional monitoring stations, imposing higher emission
standards for vehicles, intensifying the anti-smoke belching program
(Bantay Tambutso) and monitoring major industry and stationary sources
of
pollution
(Bantay Tsimneya). These were complemented by the
Department of Transportation and Communications (DOTC) implementation
of intelligent transport systems and reduction of road vehicle volume through
mass transportation systems, alternative modes/green transport and integration
of provincial terminals. However, there is still a need to increase air quality
monitoring facilities pursuant to the Clean Air Act (RA 8749) that requires
airsheds and monitoring stations in every 500 meters. The
DENREnvironmental Management Bureau (EMB) already installed 27 monitoring
stations nationwide that assess air quality using particulate matter of up to
10 micrometers in diameter (PM 10). The EMB also started installing
monitoring stations in Metro Manila for PM 2.5, with data to be available by 2014.
Water
Water quality management of 19 rivers has been prioritized for cleanup, rehabilitation and maintenance under the Sagip-Ilog Program.129
H owever, 11 priority rivers are still not within the standard biochemical
oxygen demand (BOD) of 7 milligrams per liter (mg/L). Notably, however,
Pasig River showed significant improvement in BOD level from 31.71 mg/L in
2011 to 23.09 mg/L in 2012. W hile Laguna Lake remains to be within
the standard BOD level, Manila Bay has a low progress towards achieving
the SB classification, or the standard for areas regularly used for public
bathing.130 Still, the quality of priority rivers has partially improved due to a
number of notable interventions, such as close monitoring of industrial
establishments and the implementation of the Adopt-an-Estero Program.
Solid waste
Despite implementation of the Ecological Solid Waste Management (SWM) Act
(RA 9003), garbage management remains a problem due to increased volume
of generated solid waste. To illustrate, 353 LGUs generate solid waste of more
than 15 tons per day, the threshold that already requires LGUs to establish
a waste management facility.
Solid waste diversion rate, which measures how much solid waste is
redirected from disposal to recycling, slightly improved in Metro Manila
from 34 percent in 2011 to 39.1 percent in 2012. This was due to the
LGUs establishment
of materials recovery and composting facilities,
formulation and implementation of policies regulating the use of plastic bags,
and adoption of appropriate and locally
These rivers include those in Meycauayan, Marilao, Bocaue, Ylang-ylang, Imus, Calapan, Iloilo, Balili,
Paranaque, Marikina and San Juan, Anayan, Malaguit, Paniqui, Pampanga, Luyang, Sapangdaku, CDO and
Angat. 130 DENR-DAO No. 34, s. 1990
129
213
available technology for waste treatment/processing, among others. On the

other hand, diversion rate outside Metro Manila is only 30 percent, or below
the 2012 target of 38 percent.
As of 2012, only 44 landfills were operational across the country and only
21 percent of 42,000 barangays have materials recovery facilities (MRFs).
Of the 1,610 municipalities and cities, only 27.39 percent submitted SWM
Plans, with the National SWM Commission (NSWMC) approving only 37
plans.
Challenges in the ENR sector

The ENR sector has been confronted with long-standing issues and
ineffective implementation of strategies that jeopardize the ecosystems
capacity to provide services and protect the vulnerable.
Challenges in
policies, institutions and operations cut across the three outcome areas of this
Chapter.
Policy
Lack of harmonized national land use policy, poor land
management and administration
The first National Land Use bill was filed in 1995, but issues were raised on
specific provisions such as the definition of terms, categories of land uses, and
structural mechanisms. This bill is identified as a priority legislative agenda in
five out of 10 chapters of the original Philippine Development Plan (PDP) for
2011-2016.
Absence of a comprehensive forestry law

The Revised Forestry Code (Presidential Decree 705) issued in 1975
remains the basis of the forest policy in the Philippines. Its inclination to
commercial exploitation and production requires a shift to people-oriented,
small-scale, community-based forest management.131 There is also a need to
update forest charges based on appropriate resource valuation methods.
Inadequate provisions that ensure sustainable

management of mineral resources
The countrys mining policy is articulated in the Peoples Small-Scale
Mining Program of 1991 (RA 7076) and the Philippine Mining Act of 1995
(RA 7942). The laws implementation is plagued with controversies due to
inconsistencies of mining provisions; land use conflicts on mining tenements,
certificate of land ownership awards (CLOAs) and ancestral domains;
revenue sharing; hazards posed to human and environmental health; and illegal
operations.
131
214
Carandang (2005)
Inadequate provisions of laws on solid and hazardous wastes

The implementation of the Ecological SWM Act remains weak, with
deliverables not completed on time (e.g., closure of open dumpsites by 2010
and submission of SWM plan) due to absence of a concrete operational
mechanism (e.g., funding and sanctions for non-compliance). There is also a
need to reconcile the laws provisions with those of existing laws, such as
Local Government Code (RA 7160), Philippine Environmental Impact
Statement System (PD 1586), Clean Air Act (RA 8749), Environmental
Education Act (RA 9512), Organic Agriculture Act (RA 10068), Climate
Change Act (RA 9729), and the Omnibus Investments Code (EO 226).
Moreover, the Toxic Substances and Nuclear Wastes Control Act (RA 6969)
needs provisions for electronic waste management (see Chapter 10:
Accelerating infrastructure development).
Absence of ENR valuation/accounting

W hile there have been initial efforts to institutionalize natural resource
accounting, the sector still lacks a reliable measure to value ENR, thus hindering
the accurate calculation of ENR share to the countrys economy.
Moreover, the countrys vulnerability to climate and disaster risks requires
proper inventory and accounting of resource requirements, estimation of losses
from the negative impacts and of gains from development interventions. The
World Bank (2006) estimated that about one-third of the countrys total
wealth is from natural capital.
Institutions
Conflicting, overlapping mandates of government agencies
Multiple players and stakeholders make it difficult for the management
and coordination of ENR initiatives, resulting in counterproductive measures.
At the local level, conflicts arise between national and local governments over
devolved ENR functions and the definition of the LGUs role in the
issuance of local ordinances, approval of local permits and collection of local
taxes. Also, there is a need to delineate responsibilities on land distribution
among DENR and the Departments of Agriculture (DA) and Agrarian
Reform (DAR); CCA/M and DRRM among the Climate Change
Commission (CCC) and the National Disaster Risk Reduction and
Management Council (NDRRMC); ENR management among DENR
bureaus; resource permit issuance among DA, DAR, DENR and NCIP; and
resolution of convergence issues on foreshore and easement area management.
Multiple players and

stakeholders make
it difficult for the
management and
coordination of
environment and
nat ural resources
initiatives, resulting
in counterproductive
measures.
Lack of manpow er and expertise at the local level

ENR agencies suffer from lack of personnel, inadequate capacities/expertise
and inefficient institutional processes. Similarly, local ENR management is
constrained by poor governance and inadequate financing.
215
Weak water governance

A comprehensive review and subsequent restructuring of water sector
governance will help address fragmented and weak water resources
management. The sector also needs to adopt the principles of the Integrated
Water Resources Management (IWRM); regulate the management of
waterworks, water supply, and sewerage service providers; and identify
agencies that enforce water-related policies (see Chapter 10: Accelerating
infrastructure development).
Operations
Inadequate tools and facilities supporting ENR management
The following issues on ENR management support need to be addressed: (a)
lack of facilities and equipment for forest inventory, surveillance and
patrolling; (b) inadequate air and water facilities and equipment for monitoring;
(c) upgrading of weather forecasting facilities, systems and tools; (d) lack of
geohazard maps with a scale of 1:10,000; and (e) the need to downscale climate
projections.
Unavailability of timely and updated ENR data and integrated database

Integral to an effective ENR response is accurate and timely information.
In addition, there is a lack of climate change studies that identify impacts on
different ecosystems and communities.
Inadequate and non-sustained financing for ENR, CCA/M and DRRM

T imely and effective implementation of natural resource management programs
has always been constrained by inadequate financial resources. Programs and
projects either rely on ODA financing or national government budget, as
internal revenue allotment for LGUs are not sufficient to sustain ENR programs
and projects. The LGUs authority to generate additional funding has not been
fully exercised.
III. STRATEGIC FRAMEWORK AND UPDATED PLAN

TARGETS
This updated chapter maintains the overall goal of sustaining ecological
integrity to support economic development and improve human welfare. It
highlights strategies that increase resiliency from climate risks and natural
disasters through institutionalization of CCA/M and DRRM measures, as shown
in Figure 9.5.
Subsector outcome A: Adaptive capacities

of human communities improved
216
Recognizing the countrys high vulnerability to climate-related disasters,

there is a need to enhance capacities of local communities on CCA/M and
DRRM,
and disaster preparedness measures, and provide
Plan 2 establish
011-2016 adaptation
MIDTERM UPDATE
investments for such interventions.
Figure 9.5. Strategic framework on sustainable and climateresilient environment and natural resources
Sector oucome
Subsector
outcomes
Sustainable and climate-resilient

ENR achieved
Adaptive capacities of
human communities
improved
Sustainably managed
natural resources
achieved
Environmental
quality improved for a
healthier and cleaner
environment
1.Mainstreaming
CCA/DRRM in
development plans
and guidelines
6. Strengthen the
management of
forest, coastal and
marine, land and
biodiversity
7.Strengthen the
enforcement of solid
waste management,
hazardous waste
management, clean
air and water act
2.Promote climate/
disaster resilient
infrastructure
facilities
Strategies
3.Improve access to
innovative national
and international
financing schemes
for CCA/M and
DRRM
4.Development
and adoption of
more effective
Vulnerability
Assessment tools
5.Support research
and development
and extension
8.Update air and

water quality
standards and
intensity monitoring
9.Promote ecofriendly production
technologies, and
energy-efficient
infrastructure and
transport facilities
10.Promote appropriate technology for
waste management
and establishment of
sustainable markets
for recyclables and
recycled products
11.Pursue research,
development and
extension to improve the quality of
the environment
12.Improve Knowledge Management (KM) systems and tools
Crosscutting
strategies
13.Strengthen multi-stakeholder participation and partnership in ENR

management and governance
14.Continuous capacity building, institutional strengthening
and IEC campaign
In the absence of a clear indicator for adaptive capacity, decreased damage

and losses due to natural disasters, environmental hazards, human induced and
hydrometeorological events will be used as proxy indicator to monitor the
progress of this subsector outcome (see Table 9.1).
217
Table 9.1. Revalidated results matrix (RM) on subsector outcome A:

Adaptive capacities of human communities improved
Indicators
Annual damage
and losses (crops
and properties) due
to natural disasters,
environmental
hazards,
human induced
and hydrometeorological
events decreased
Baseline
PhP19,272.70
million with 193
incidents (20042010
annual average)
End-ofPlan
target
(2016)
Annual damages
and losses
decreased
Assumptions and
risks
The projections of climate
change impacts based on
current climate change
scenarios can be more
adverse than projected.
CCA/M activities are
not enough to build
capacities of
ecosystems and
communities to
withstand projected
climate
change impacts.
Five key strategies will be pursued to achieve this outcome:
Strategy 1: Mainstream CCA/DRRM in

development plans and guidelines
This strategy involves: (a) supporting initiatives for mainstreaming CCA/M
and DRRM in the development process; (b) integrating CCA/M and DRRM
in all education levels and in specialized technical training and research
programs; (c) formulating criteria for identifying CCA/M and DRRM
responsive projects; and (d) adopting a responsive national and local legal and
policy framework on CCA/M and DRRM through multi-stakeholder dialogues.
Strategy 2: Promote climate/disaster-resilient infrastructure facilities

W ith the aim of institutionalizing CCA/M and DRRM in infrastructure
development, existing engineering standards and designs will be reviewed
and updated to integrate emerging technologies and retrofitting
techniques. This ensures resilience to disasters and impacts of climate
change. Disaster and climate infrastructure programs and projects will be
continuously pursued, even beyond the Updated Plan period. (See also
Chapter 10: Accelerating infrastructure development.)
218
Strategy 3: Improve access to innovative national and

international financing schemes for CCA/M and DRRM
To effectively respond to CCA/M and DRRM needs, available financing
both nationally (e.g., PSF and National Disaster Risk Reduction and
Management Fund or NDRRMF) and internationally (e.g., Green Climate
Fund and Adaptation Fund) will be tapped. At the local level, there is a need
to operationalize the PSF to provide additional financing source to support
adaptation activities of LGUs and communities. Priority activities to support
the operationalization of PSF are formulation of climate change-tagging
criteria, finalization and approval of the IRR of RA 10174, and preparation of
the operational guidelines for the PSF. On the other hand, there is a need to
revisit the mechanism to access the NDRRMF to ensure that it will not only
be used for relief assistance, rehabilitation and reconstruction activities but
also for disaster preparedness and prevention measures.
Among the priority activities for funding include adaptation measures,
forecasting and early warning system, institutional strengthening, knowledge
management and risk financing.
Strategy 4: Develop and adopt more effective

vulnerability assessment (VA) tools
Developing and adopting science-based VA tools will allow for the
proper identification of highly susceptible communities,which will be useful for
formulating DRRM plans. The tools will support decisions in identifying,
preventing and mitigating potential disaster impacts. Pilot testing of such
initiatives, such as the Decision Support System (DSS) tool by the DABureau of Soils and Water Management and the VA and Impact Assessment
tools for coastal, health and water sectors developed under Millennium
Development Goal Achievement Fund (MDGF-1656), will be pursued. (See
also Chapter 4: Competitive and innovative industry and services sectors.)
There is a need to
operationalize the peoples
survival fund to provide
additional financing source
to support adaptation
activities of LGUs and
communities.
Strategy 5: Support research, development and extension (RD&E)

Priority research in the next three years will include, but not be limited to,
the impacts of climate change on natural ecosystems, CCA/M technologies
(e.g., resistant planting stocks), and cost-benefit analysis of eco-friendly
and low- carbon technologies.
219
Box 9.2. Ongoing CCA/M and DRRM programs and projects in the Philippines
Since 2011, a total of 49 programs and projects (PAPs) funded through official
development assistance (ODA) amounting to PhP50 billion were tagged as climate
change responsive. Of these, 26 PAPs (PhP22.4 B) were categorized for adaptation;
11 PAPs (PhP22.17
B) for mitigation; and 12 PAPs (PhP5.7 B) with adaptation/mitigation cobenefits. There are eight types of climate change PAPs: (a) formulation/enhancement of
local land use plans; (b) provision of early warning system; (c) forecasting/modeling
device; (d) hydrometeorological equipment; (e) construction of flood control facilities; (f)
rural development or agriculture and agrarian reform; (g) energy and power sector; and
(h) capacity building including. These CCA/M and DRRM PAPs are implemented in
Category 3 provinces, as shown in the Box Figure 9.2.1 below.
Box Figure 9.2.1. Spatial distribution of CCA/M and DRRM programs and projects
Region
CAR
No of
Projects
4
RI
RII
RII
RIVA
RIVB
RV
RVI
RVII
RVIII
RIX
RX
RXI
RXII
RXIII
ARMM
NCR
National
Level
Coverage
26
(Source: 2012 ODA

Report)
220
Subsector outcome B: Sustainably managed natural resources

achieved
Strategies on managing natural resources will sustain ecosystem services in
support of productive sectors. Table 9.2 presents the outcome targets from these
strategies.
Indicators
Baselin
Assumptions
Table
9.2. Revalidated results matrix
(RM) End-ofon subsector outcome
B: Sustainablyand
e
Plan
risks
managed natural resources achieved
target
(2016)
Forests and watersheds sustainably managed (in ha)
Open and denuded forest
8.6 million
Reduced by
land area reduced
(2003)
1.5 million
(including
2012)
Protected forest
land/area increased
6.431 million
(2003)
Adequate financial and human

resources support are timely
provided.
Survival rate of planted seedlings
is about 80%.
Increased by 1.1
million
Biodiversity protection and conservation improved

Extinction
221
100%
Forest quality, which will serve as
Extinctionofofthreatened
threatened
100%
526
species
of
wild
(2004)
prevented
from
habitat to the threatened species,
species of wild
prevented from
(2 00 7)
fauna prevented
extinction
is improved through reforestation
and protection efforts.
Adequate financial resources are
flora prevented
extinction
Terrestrialof protected
Population
Philippine areas
Eagle increased
Population of Tamaraw
increased
2.10%
340
(2010)
(2010)
274
(2011)
Population of Philippine
Cockatoo increased
239
(2010)
8.400
85%
timely provided and relevant laws are

strictly implemented.
360
400
Coastal and marine resources management improved

Percentage of terrestrial, inland water and coastal and marine
areas effectively and equitably managed
Establish partnerships among

stakeholders in coastal
management activities (DENR,
DA, NCIP, LGUs)
LGUs recognize their role in ENR
management (e.g., formulation of
local policies and provision
221
Indicators
Baselin
e
Land administration and management improved

Land degradation hotspots
5,367,047
with developed sustainable
(2010)
land management (SLM)
practices (in ha)
Number of beneficiaries with
secured land tenure in public

agricultural A&D lands
1,900,333
Number of beneficiaries with

secured land tenure in
residential lands zoned as
residential areas
Number of Certificates of
Ancestral Land Titles
(CALTs) issued
0
(2011)
182,000
100% of
remaining
DENR-
Assumptions and
risks
The current rate of land

degradation is decreasing
throughout the plan period.
Adequate financial and institutional
support is provided, particularly in
the development of SLM projects
within land degradation hotspots.
CARP target
(473,490
patents)
completed by
2015
516,064
Land administration, distribution and

management-related policies are
harmonized.
32
Support initiatives that guide and

facilitate the issuance of CADTs and
CALTs and formulation of ADSDPPs
are provided.
258
(2010)
156
Ancestral Domain Titles
(2010)
(CADTs) issued
Number of Ancestral Domains
95
Sustainable Development
(2010)
Bagacay
Mine
rehabilitated
and
Protection
Plans
(ADSDPPs) formulated
Rehabilitation of abandoned mines improved
Number of abandoned mines
22
rehabilitated
(2004)
22 2
End-ofPlan
target
(2016)
74
(2012-2016)
104
(2012-2016)
100%
The 22 abandoned mines remain a

priority for rehabilitation and
protection.
Adequate financial, institutional
and human resources supports are
timely provided.
For the Plan period, the following
will be undertaken: 100%
The general strategy to attain the above outcomes is to strengthen the

management of natural resources through conservation, protection and
rehabilitation.
Strategy 6: Strengthen the management of forest, coastal and

marine, land and biodiversity
The following priority activities will be undertaken:
a.Complete delineation of forestland boundaries

The sector target is to complete the demarcation of forest boundaries within
the Updated Plan period to effectively manage forestlands and identify
appropriate land use.
b.Strengthen the Integrated River Basin Management (IRBM),

reforestation and forest protection programs, and sustainable forest-based
industries
The IRBM will serve as the systematic framework for ridge-to-reef
management (i.e., forest management through comprehensive river
administration system for flood control, water use and environmental
conservation). Along with this is the completion of river basin master plans for
18 priority rivers.
Forest protection activities will be strengthened through: (a) the Philippine
National REDD-Plus Strategy; (b) capacity improvement of forest managers in
addressing forest fires, pest and diseases; (c) provision of support facilities in
patrolling forests; and (d) strengthening of the anti-illegal logging campaign.
W ith the forestry sectors potential to alleviate poverty and generate
employment, sustainable forest-based industries will be pursued by: (a)
developing forest plantation with high-value timber and non-timber forest
species; (b) encouraging communities to develop multipurpose forests in
open, denuded and degraded areas; (c) developing a portfolio approach for
forest investment with LGUs and the NCIP in identifying protected and
production areas; and (d) adopting third- party certification guidelines for forest
products.
c.Strengthen the enforcement of forest, land, biodiversity,

coastal and marine policies
Stakeholders, including CSOs, local communities and IPs, will be involved
in the vigorous enforcement of environmental laws and policies, promotion
of environmental justice, and in advocating the resolution of ENR cases
through Supreme Court-designated green courts. Strict implementation of
natural resources policies will be strengthened, particularly on the compliance of
mining companies with environmental and social development commitments;
apprehension of illegal logging and fishing, poaching and trading of endangered
species; and reversion of abandoned, underutilized and unproductive coastal
fishponds to mangroves.
223
d. Strengthen management of PAs under NIPAS and other

biodiversity conservation initiatives
Amendment of the mining

law will be needed to
provide policies
and guidelines for the
institutionalization and
implementation of reforms
in the mining sector.
To improve the number of threatened and endangered species, management

of PAs will be strengthened by: (a) assessing the effectiveness of PA
management;
(b) establishing additional critical habitats and key biodiversity areas; (c)
issuing security of tenure and providing alternative livelihood for local
communities; (d) completing maps for all PAs under NIPAS; and (e)
preparing PA management plans incorporating CCA/M and DRRM
considerations.
The
following
biodiversity
conservation
initiatives
will
be
continuously implemented: (a) National Biosafety Framework; (b)
Nagoya Protocol; (c) Updated National Wetland Action Plan; (d) Coral
Triangle Initiative National Plan of Action; (e) Sulu-Sulawesi Marine Ecoregion Conservation Plan; (f ) Integrated Coastal Management (ICM)
program; (g) 2012-2020 Sustainable Coral Reef Ecosystem Management
Program; (h) cave management, protection and conservation programs; and (i)
the Adopt-a-W ildlife Species program.
e.Complete delineation of municipal waters

This is necessary to empower LGUs to manage coastal and marine resources
and provide preferential rights to small fisherfolk.
f.Complete land distribution and improve land

administration and management
Activities will include: (a) completing cadastral surveys in cities
and municipalities;
(b) accelerating titling of agricultural, residential and ancestral lands in
partnership with DAR,NCIP,Land Registration Authority,and LGUs; (c)
institutionalizing the Foreshore Master Plan that incorporates environmental
safeguards, climate change considerations and sustainable practices in issuing
foreshore leases; (d) intensifying campaign against the proliferation of fake land
titles; (e) computerization of land resources and cadastral information
management; and (f ) integrating the guiding principles of the Land Sector
Development Framework in the implementation of land administration and
management reforms.
g. Improve management of mineral resources
224
To set the direction for responsible mining, amendment of the mining law
will be needed to provide policies and guidelines for the institutionalization
and implementation of reforms in the mining sector, particularly on: (a)
environmental and social safeguards; (b) no-go zones for mining; (c) proper
valuation of minerals;
(d)value-adding and development of downstream industries for the mineral
sector;
(e)new fiscal regime and revenue-sharing arrangement; (f ) operationalization of
the Extractive Industries Transparency Initiative in the mining sector; (g)
creation of a one-stop shop for mining-related application and procedures; and
(h) creation of centralized database for the mining industry.
To facilitate the full rehabilitation of the mined-out areas, the government

will strictly require mining companies of the following: (a) submission of
Environmental Work Program, Environmental Protection and Enhancement
Program, and Final Mine Rehabilitation and Decommissioning Program; (b)
conduct of environmental monitoring and audit, including final mine
rehabilitation, de-commissioning and multi-partite monitoring; and (c)
contribution to the Contingent Liability and Rehabilitation Fund and
payment of mine wastes and tailings fee.
h. Improve RD&E
The government will collaborate with research and academic institutions
on ENR in conducting studies focused on, but not limited to, the following
areas:
(a) approaches to effective ENR management; (b) extent of forest cover
needed to sustain ecosystem services; (c) carrying capacity of ecosystems; (d)
geological assessment and exploration of undiscovered mineral resources;
and (e) studies linking gender concerns and resource use, to profile womens
roles and opportunities in ENR initiatives. Mechanisms to improve the
i.
Implementofinnovative
financing
mechanisms/options
for
accessibility
ENR-related
researches
will also be established.
effective and efficient ENR management

To provide adequate and sustainable financing for ENR management, there is a
need to institutionalize carbon credits and payments for ecosystems services
and resource valuation techniques, such as user fees and economic rent for use of
natural resources. Harnessing the potential of PAs in ecotourism will help
improve not only the areas environmental quality through improved ENR
management but also the rural communities state of living through additional
livelihood and income, and the empowerment of the marginalized, including
women and indigenous peoples. To date, there are 83 PAs identified by the
DENR-Protected Areas and W ildlife Bureau as priority for ecotourism
development (Figure 9.6).
There is a need to
institutionalize carbon
credits and payments
for ecosystems services
and resource valuation
techniques.
225
Figure 9.6. Protected areas with potential ecotourism

benefits
Region
CAR
No. of PAs
for
Ecotourism
2
RI
RII
RIII
RIV A
RIV B
RV
RVI
RVII
RVIII
RIX
RX
RXI
RXII
RXIII
ARMM
Total
5
7
5
7
8
5
7
9
3
10
6
3
3
2
1
83
Subsector outcome C: Environmental quality

improved for cleaner and healthier environment
To provide communities with a healthier environment, the quality of air, land
and water will be improved to meet the minimum safety standards. Table 9.3
presents the Updated Plan targets on this outcome.
226
Table 9.3. Revalidated results matrix (RM) on subsector outcome C: Environmental

quality improved for cleaner and healthier environment
End-ofAssumptions
Plan
and risks
target
Air pollution in Metro Manila and other major urban
cent ers reduced
(2016)
Indicators
Baseline
Total Suspended Pa rticulate (TSP) level in Metro Manila

and major urban centers with levels above 90ug/Ncm
(baseline: 2009)
NCR
130.00
91.62
Alaminos City
131.00
96.30
San Fernando City
135.14
99.34
Saluysoy
122.26
89.87
Cabanatuan
117.00
86.01
San Fernando, Pampanga

Iriga City
Panganiban Drive
206.00
LGUs prioritize strategies that will

help reduce air pollution through
provision of local ordinances
and budget support to programs
contributing to the achievement
of this outcome.
151.43
188.24
138.38
177.17
130.24
Mandaue City (Baricuatro Res)
120.56
88.62
Zamboanga City: Stn. II
166.53
122.41
Zamboanga City: Stn.IV
136.26
100.17
Zamboanga City: Stn. VII
185.82
136.60
Davao City Stn. 8
102.96
75.68
Gas emission reduced due to increased travel speed and

reduced travel time in Metro Manila (baseline: 2010)
Travel speed increased (km/hr)
27.79
Travel time reduced (min/km)
2.17
31.84
1.98
Wat er pollution reduced (Baseline: 2 0 10)

Water quality of priority river
systems improved (by BOD
water criteria: Class C <=
7mg/L; Class D >7mg/ L & >=
10mg/L)
BOD level of priority rivers not
within the water quality criteria
improved (in mg /L)
Meycauayan River (C)
Marilao River (C)
Bocaue River (C)
Ylang-ylang River (C)
3 5 % reduction
in 2 010 level
3 5 % reduction
in 2 010 level
59.00
38.06
24.00
15.48
11.00
119.00
LGUs prioritize strategies that

will help reduce water pollution
through provision of local
ordinances and budget support
to programs contributing to the
achievement of this outcome.
7.10
76.76
Imus River (C)
12.00
7.74
Calapan River (C)
14.00
9.03
Iloilo River (C)
12.00
7.74
Balili River
37.00
23.87
227
Indicators
Paraaque River (C)
Pasig River (C)
Malaguit River (C)
Baselin End-ofe
Plan
38.00 target 24.51
(2016)
29.01
18.71
Assumptions
and
risks
LGUs prioritize strategies
that will help reduce
water pollution through
provision of local
ordinances and
4. 00
To achieve the above targets, the following strategies will be implemented:
Strategy 7: Strengthen enforcement of laws on clean air and water,

solid and hazardous waste management
Marikina River (C)
10.29
6.64
The government will strictly enforce the following: (a) industry compliance
with
standards; 35.38
(b) compliance22.82
with emission-testing and
San environmental
Juan River (C)
mandatory vehicle inspection and maintenance; (c) full establishment of
monitoring
stations in Metro Manila and other
majorbudget
urban
centers; (d)
BOD level of other priority
<7.00
support to
publication
of the
packaging
rivers already within
the list of non-environmentally acceptable
programs
contributing and
to
products;
(e)criteria
compliance on the establishment of disposal
andofMRFs;
water quality
thefacilities
achievement
this
(fsustained
) establishment
healthcare wastes; (g)
(in mg/L) of a separate cell for disposal of treatedoutcome.
LGU
compliance
of SWM Plans; and (h) conversion of wastes
Anayan
River (D) in the submission
4.28
into useful resources.
228
Strategy 8: Update and intensify monitoring of air and

water quality standards
Activities on updating and monitoring of air and water quality standards include
the following: (a) formulation of science-based policies, abatement
measures and strategies; (b) strengthening implementation of Bantay
Tsimineya, Bantay Tambutso, Adopt-an-Estero Program and rehabilitation
programs of Pasig River, Laguna Lake, and Manila Bay, among others; (c)
establishment of additional environmental management areas; (d) installation
of additional PM 10 and PM 2.5 monitoring stations for a more comprehensive
analysis; and (e) promotion of residual waste management, among others.
Strategy 9: Promote eco-friendly production

technologies and energy-efficient infrastructure and
transport facilities
This includes promoting the use of clean fuel and indigenous resources as
sources of clean energy, advocating green architecture, and devising related tax
or market incentives mechanisms.
Strategy 10: Promote appropriate technology for waste management

and establishment of sustainable markets for recyclables and recycled
products
The continuous
implementation of
ecological solid waste
management (ESWM) will
focus on the establishment
of LGU-wide ESWM
syste ms.
The continuous implementation of ecological solid waste management (ESWM)

will focus on the establishment of LGU-wide ESWM systems. The
promotion of recycling will be supported by markets capable of converting
recycled and recyclable materials to productive use. Various options to
stimulate market and consumer demand for recyclable and recycled products
will be exhausted.
Strategy
11: Pursue RD&E to improve the quality of the environment
RD&E will be pursued to: (a) identify air and water pollution impacts to human
health and economy; (b) develop and replicate low-cost technologies to
optimize solid waste recycling, reuse, and recovery, including the
conversion of residual organic materials into clean renewable energy; (c)
develop clean and energy- efficient technologies; (d) develop and
propagate
low-cost
non-combustion technologies for infectious and
hazardous wastes; (e) identify environmentally sound management and
disposal of toxic and hazardous waste, including e-waste; (f ) conduct life cycle
assessment of proposed non-environmentally acceptable packaging and
products; and (g) develop and manufacture non-mercury-based technologies
used in healthcare facilities.
229
The following crosscutting strategies are crucial to the achievement of the
objectives of the ENR sector by the end of the term.
Strategy 12: Improve knowledge management (KM) systems and tools

Timely, accurate and updated science-based information on ENR is necessary
for development planning and informed decision-making on ENR. The
following are priority activities in improving KM systems and tools in the ENR
sector:
Building on initial efforts

that localized global
climate change projections
and models, it is necessary
to further dow nscale
th e outputs to the
provincial level to aid local
development planning.
a. Fast-track the production of updated higher-scale topographic and other

thematic base maps and completion of geo-hazard maps with 1:10,000 scale
The acquisition of nationwide high-resolution elevation data from

Interferometric Synthetic Aperture Radar and satellite imageries will support
geo-hazard mapping and serve as the primary inputs to the production of multiscale topographic base maps. The development of the Philippine Geoportal
will provide common and standard base maps and pave the way for the
integration of geospatial information produced by public and private institutions.
This will also provide high-resolution geo-hazard maps with detailed and
accurate information, as well as an online facility for access, development,
and sharing of spatial data;
b.Update and further dow nscale of climate projections

Building on initial efforts that localized global climate change projections
and models, it is necessary to further downscale the outputs to the provincial
level to aid local development planning;
c.Fast-track VA, mapping of highly vulnerable areas, communities and

priority sectors and integration of CCA/M and DRRM in development
plans and programs
All these will identify climate-sensitive and disaster-risk communities
and mainstream CCA/M and DRRM in sectoral, development and land use
plans. VA for all sectors will be in place by 2016 to implement more concrete
CCA/M and DRRM actions;
d.Integrate ecological values into national accounts through the

Wealth Accounting and the Valuation of Ecosystem Services
(WAVES)
This effort will address demand for ENR indicators, tools and methodologies
that will help determine sustainable use of ENR, correlate sustainable use of
ENR with economic growth, and make informed development planning and
policy analysis; and
230
e. Implement/pilot-test best practices in the ENR management

Success stories on ENR management need to be disseminated, as they
provide evidence-based options for policy makers, development planners and
implementers of ENR strategies.
Strategy 13: Strengthen multi-stakeholder participation and

partnership in ENR management and governance
Enabling mechanisms will be created to encourage greater participation
of stakeholders, including women and Filipino migrants, in CCA/M,
DRRM and ENR governance.
This will be achieved through: (a)
community-based ENR management efforts; (b) promotion of public-private
partnership in ENR management; (c) mandatory creation of ENR offices
for LGUs; (d) provision of security of tenure in upland and coastal areas; (e)
recognition of IPs rights to their ancestral domain; and (f ) stewardship
agreements and contracts between government and community.
Strategy 14: Sustained capacity building, institutional

strengthening and IEC campaign
A key in sustaining ENR management gains is to continuously build
capacities and educate managers, policy and planning officers, technical
personnel, law enforcers, and the general public. Strengthening of ENR
institutions will require institutionalization of various stakeholder coordination
mechanisms, as mandated by different ENR laws, for greater transparency and
accountability in environmental governance. Trainings, seminars and other
communication tools will be provided to instill awareness and build
consciousness on ENR management. Womens enhanced roles in ENR
management will be highlighted through policies, capacity building and gender
mainstreaming mechanisms.
Womens enhanced roles

in environment and natural
resource management
will be highlighted through
policies, capacit y building
and gender mainstreaming
mechanisms.
Priority ENR legislations

For the remaining years of the Updated Plan, the following proposed
legislations need to be enacted:
a. National land use

This aims to achieve optimal use of land based on economic, environmental
and social development considerations. In particular, it is expected to harmonize
sector- spatial land use policies to address competing uses of limited land
resources and cross-cutting land use issues (e.g., food security, settlement
development, industry development and environmental protection), and
integrate ongoing CCA/M and DRRM efforts in national and local
development planning;
2 31
b. Land administration reform

This will reform the present land administration and management system
by consolidating agencies into a single body responsible for survey, mapping,
titling, registration, title transfer and public land management. This will prevent
delays in the disposition and titling of A&D lands, duplication and fake titles,
inaccurate and incomplete land records, overlapping of activities among
government agencies, and unnecessary cost to the government and clients of
land administration services. The creation of the Interagency Committee on
Institutional Arrangements for Land Management and Rural Development
(Administrative Order 34, s. 2012) is a step forward in recognizing the need to
improve institutional arrangements among agencies, particularly DAR whose
redistribution function will be completed by 2014;
c.Forest limit
A National Integrated
Coastal Management
(ICM) Program will guide
LGUs in formulating
and implementing
ICM programs in their
respective areas.
This will provide permanent boundaries of forestlands in the country, set

guidelines in determining the specific limits of forestlands, and create a national
review and evaluation committee as implementation oversight in the actual
marking of forest lines. This law is contingent with the national land use
legislation;
d. Sustainable forest management
This will adopt the Sustainable Forest Ecosystems Management Strategy as

the overarching policy framework for all plans and programs in the
forestry sector, identify the river basins and component watersheds as basic
planning units in forest resources management, and recognize the administrative
jurisdiction of LGUs and owners of ancestral domains as the basic management
unit in forestry. O verall, this legislation will identify the acceptable forest cover
for the country to supply the demands for timber and non-timber forest
products;
e.Establishment of MPAs in all coastal communities and cities

This will mandate coastal LGUs to establish at least one MPA within their
area, sanction LGUs that fail to establish MPAs, allow the DENR to
continue to manage MPAs established under the NIPAS, and develop incentive
mechanisms to promote effective management of MPAs;
f. Integrated coastal management

This will institutionalize ICM as a national strategy of sustainable
development of coastal and marine environment and resources. A National
ICM Program will guide LGUs in formulating and implementing ICM
programs in their respective areas, with the Department of Education
integrating ICM into the basic education curricula and the National Economic
and Development Authority incorporating coastal and marine resource
accounting in the national and regional income accounts;
232
g. Defining the maritime zones of the Republic of the Philippines

This will define the limits of the countrys various maritime zones,
including internal and archipelagic waters, territorial sea, contiguous and
exclusive economic zones, consistent with the United Nations Convention on
the Law of the Sea;
h.Rationalizing mining fiscal regime and revenue sharing arrangement

This will rationalize existing mining revenue sharing scheme and arrangement.
In this law, a sharing scheme will apply to new mineral agreements, as well as
financial or technical assistance agreements (FTAA) covering large-scale
metallic mineral mining operations. Such scheme will govern the renewal
and renegotiations of existing mineral agreements or F TAA. In addition, all
mining areas will be declared as Mining Industry Zones;
i. PAGASA modernization
This will enhance the agencys capability in providing timely and reliable
weather forecasting and warning services by setting up an interagency body
that will formulate the modernization program and establish a
modernization fund to finance said program;
All mining areas will be

declared as Mining Industry
Zones.
j.Amending Ecological SWM and toxic substances and hazardous and

nuclear wastes control acts
Amending the Ecological SWM Act will reconcile provisions of other laws
on fines, penalties and local taxation (RA 7160), environmental impact
assessment (PD 1586), air emissions (RA 8749), environmental education
(RA 9512), compost quality requirements (RA 10068), climate-proofing of
SWM facilities (RA 9729), and incentives (EO 226). On the other hand, the
Toxic Substances and Hazardous and Nuclear Waste Control Act needs to be
updated to provide a framework on management and disposal of toxic,
hazardous and nuclear wastes, including e-wastes; and
k. Review IRR of the Water Code

This will strengthen resource regulation and promote more efficient use of
water resources. (See also Chapter 10: Accelerating infrastructure development.)
233

To achieve the Chapters sector and subsector outcomes, strong
commitment of mandated government agencies, such as DENR, NDRRMC,
DBM, CCC, M M DA, DA, LGUs, NCIP, DOTC, DILG, and Laguna Lake
Development Authority (LLDA), in collaboration with civil society
organizations and business sector, is essential to implement strategies towards
achievement of a sustainable and climate resilient ENR. In particular, the
NDRRMC, CCC, DILG and DBM play significant roles in subsector outcome
A (adaptive capacities of human communities improved). On the other hand,
majority of the targets under subsector outcomes B and C will be delivered by
the DENR, in close partnership with the LGUs.
To ensure the successful implementation of the plan strategies, the two
interagency committees under the NEDA Boardthe National Land
Use Committee (NLUC) and the Regional Development Committee
(RDCOM)will oversee the coordination of the sector deliverables. The
NLUC will provide guidance in the implementation of targets with a
national scope, while the RDCOM will spearhead implementation and
monitoring of the plans PAPs given their presence at the local level.
Table 9.4. Annual target indicator matrix on sustainable and climate-resilient

environment and natural resources, 2013-2016
Indicators
Annual Plan targets

(in %)
2013
2014
2015
234
200,000
300,000
300,000
Agency
responsi
ble
NDRRMC
Accomplishment Report
CCC, NDRRMC
National
Greening
Project (NGP)
Accomplish-
DENR-FMB
2016
Subsector outcome A: Adaptive capacities of human communities improved

Annual damage and losses
Decreasing per year
Decreasing per year
(crops and properties) due
to natural disasters,
environmental hazards,
human induced and hydrometeorological events
decreased
Subsector
B: Sustainably managed natural resources achieved
Protected outcome
forest land/area
Forests and watersheds sustainably managed (ha)
Open and denuded forest
300,000
300,000
300,000
300,000
land area reduced by 1.5
million ha (including 2012)
increased by 1.1 million ha
Means
of
verificat
ion
300,000
ment Report
Indicators
2013

2014
2015
2016
Biodiversity protection and conservation improved

Extinction of threatened
207
207
207
species of wild fauna
prevented
Extinction of threatened
526
526
526
species of wild flora
prevented
353
366
379
Eagle increased
Population of Tamaraw
345
345
350
increased
360
370
380
Cockatoo increased
Coastal and marine resources management enhanced
Percentage of terrestrial, inland water and coastal and marine areas effectively and
equitably managed
Terrestrial protected
5.13%
7.96%
8.45%
areas
Marine protected areas
0.58%
0.61%
0.62%
Percentage of critical
20.05%
43.02%
58.12%
habitats effectively and
equitably managed
Area of degraded coral reefs
33,157
163,592
170,724
within NIPAS MPAs
or 5%
or 24%
or 25%
rehabilitated (in ha; target:
510,012 or 75%)
Land administration and management improved
Land degradation hotspots
33,000
33,000
33,000
with developed sustainable
land management (SLM)
practices (in ha)
Number of beneficiaries
with secured land tenure in
public agricultural A&D
lands
Number of beneficiaries
with secured land tenure in
residential lands zoned as
residential areas
2,227,605
2,327,605
2,373,823
281,064
356,064
436,064
207
Means
of
verificat
ion
Agency
responsi
ble
DENR-PAWB
DENR-PAWB
DA-BFAR
526
400
DENR-PAWB
360
400
8.85%
0.62%
100%
DENR-PAWB
DENR, DABFAR & LGUs
Agency
Reports
DENR, DABFAR & LGUs
142,539
or 21%
33,000
DENR, DABFAR
DA-BSWM
DA-BSWM in
collaboration
with DENR
and DAR
DENR-LMB
DENR-LMB
516,064
235
Indicators
74 Certificates of
Ancestral Domain Titles
Ancestral Land Titles
(CALTs) issued
Means
of
verificat
ion
Annual Plan
targets (in %)
2013
12
201
12
4
201
12
5
201
12
6
1 (TBI)
1 (TBI)
1 in CAR
(CADTs) issued from

2012-2016
NCR
NCIP
Accomplish-
104 Ancestral Domains

0
Antamok
Mine
risk
and
Protection
Plans
assessment
(ADSDPPs) formulated from
2012-2016
Black Mountain risk
assessment of abandoned mines improved
Rehabilitation
Number of abandoned mines rehabilitated
Bagacay Mine
85%
rehabilitated
110.30
Agency
responsi
ble
NCIP
36
24
24
ment Report
95%
100%
100%
DENR-MGB
DENR
(MGB,
103.68
9 7.46
9 1.62
ERDB,
PAWB)
&
LGUs
236

Consolidated Mine Inc.
70%
80%
90%
risk assessment
100%
Indicators
Annual Plan
targets (in %)
Zamboanga City: Stn.IV
116.83
110.99
105.44
100.17
Zamboanga City: Stn. VII
159.32
151.35
143.78
136.60
Means
of
verificat
ion
Agency
responsi
ble
Reports
LGUs
Travel time annually
BOD level of priority rivers

not within the water
quality criteria improved
(in mg/ L)
Anayan River (D)
5 % reduction from previous years level
Malaguit River (C)
237
Indicators
Annual Plan targets

(in %)
Means
of
verificat
ion
Agency
responsi
ble
Reports
LGUs
<7.00
Agency
DENR-EMB,
<7.00
LLDA
LLDA,
LGUs,
MWSS,
Water
Districts,
LWUA
DENR-NSWMC
DENR-EMB,
NSWMC
Pampanga River (C)
2013
201
4
Cagayan de Oro (C)
Angat River (C)

BOD level of Laguna
Lake maintained within
standard (in mg/L)
Waste generated reduced and waste disposal improved

Solid waste diversion rate
40
43
increased (%)
238
2015
48
2016
50
Accelerati
ng
infrastruct
ure
developme
nt
Accelerating infrastructure
development
239
I. INTRODUCTION
Infrastructure development supports the sector outcomes of the previous
chapters, as shown in this chapters results framework (Figure 10.1). Chapters 3
and 4 present the roadmaps for globally competitive and innovative industry and
services sectors, as well as a competitive and sustainable agriculture and
fisheries sector. Chapter 6 details the strategies that improve human capabilities
and reduce vulnerabilities to equalize development opportunities, while
Chapter 7 discusses the countrys blueprint towards having effective and
efficient governance.
Finally, achieving stable national security and an
environment that is both sustainable and climate- resilient are the expected
results of Chapters 8 and 9, respectively.
The overall strategy outlined in this chapter is to invest massively in
infrastructure development by increasing public infrastructure spending to at
least five percent of the countrys gross domestic product (GDP) by 2016.
II.ASSESSMENT, CHALLENGES AND OPPORTUNITIES

In the first half of the Plan period, critical reforms were initiated to
address constraints and bottlenecks in infrastructure by embarking on
programs and projects to support rapid and sustained economic growth.
Still, the countrys infrastructure facilities and systems continue to lag behind
those of the countrys counterparts in the Southeast Asian region.
According to the latest Global Competitiveness Report (2013-2014),
the Philippines ranked 98th out of 148 countries in terms of the overall
quality of infrastructure. This is still way behind the rankings of Malaysia
(25th), Thailand (61st), Indonesia (82nd), and Cambodia (86th). Table 10.1
further compares the Philippines status in terms of e-government service, ICT
cost and affordability, and infrastructure for basic services, such as water,
sanitation, education and health.
Moving forward, the countrys infrastructure development agenda will focus
on providing the necessary infrastructure support for attaining and
sustaining the development outcomes of the five key result areas of the Aquino
administration, while further reaffirming the governments commitments to
address issues earlier identified in 2010.
240
The following subsections present a summarized assessment of the

countrys infrastructure development in the first half of the Plan
implementation, as well as the challenges and opportunities in moving to the
next half.
Figure 10.1. Results framework on accelerating infrastructure

development
employment created
Goals
Rapid and sustained

economic growth
achieved
Intermediate
goals
Infrastructuresupported sector
outcomes
Intermediate
outcomes
Globally
competitive
and
innovative
industry and
services
sectors
achieved
Competitive
and
sustainable
agriculture
and fisheries
sector
achieved
Competitiveness
enhanced and
productivity increased
in the industry, services
and agriculture sectors
Effective
and efficient
governance
achieved
Governance
improved
Equal development
opportunities
achieved
Stable
national
security
achieved
Safer and
more secured
environment
created and
sustained
Sustainable
and climate
resilient
environment
achieved
Environmental
quality
improved
Human
capabilities
improved
Vulnerabilities
reduced
Adequacy and
accessibility of basic
infrastructure services
enhanced, and
infrastructure gaps in farflung areas reduced
Increasing competitiveness and productivity of

the industry, services and agriculture sectors
According to the Global Competitiveness Report 2013-2014, the
inadequate supply of the countrys infrastructure facilities remains as one of the
impediments to the countrys global competitiveness. These inadequacies
result in inefficient logistics and infrastructure support in key growth areas,
inadequate supply of power particularly in Mindanao, high cost of electricity
and lack of available and quality broadband and ICT services.
The same gaps had been recognized during the first half of the Plan, as
the government consciously poured its resources in infrastructure investments.
This consequently made the infrastructure sector as one of the key drivers of the
countrys higher economic growth trajectory. From a contraction of 8.4 percent
from 2010 to 2011, investments in construction dramatically grew by 15.1
percent from 2011 to 2012. In the first nine months of 2013, it further grew by
15.9 percent, with public and private spending jumping by 31.8 and 11.5 percent,
respectively.
Box 10.1 highlights some of the governments major infrastructure
interventions that support the lowering of the costs of transporting goods and
people, improving agricultural productivity, and generating economic
investments and employment.
development
2 41
Table 10.1. Ranking and status of the Philippines, 2010-2012, and

selected ASEAN countries, 2012, in key infrastructure indicators
Indicator
Philippine
Ranking/stat
ranking/status
us of
selected
2010
2011
2012
ASEAN
countries in
2012
242
Quality of overall
infrastructure[1]
113 of 139
113 of 142
98 of 144
Quality of roads[1]
114 of 139
100 of 142
87 of 144
Quality of railroad
infrastructure[1]
97 of 139
101 of 142
94 of 144
Quality of port
infrastructure[1]
131 of 139
123 of 142
120 of 144
Quality of air transport

infrastructure[1]
112 of 139
115 of 142
112 of 144
Quality of electricity
supply[1]
101 of 139
104 of 142
98 of 144
Information and
communications
technology (ICT)
development index[2]
92 of 152
94 of 155
98 of 157
Malaysia: 29
Thailand: 49
Indonesia: 92
Cambodia: 72
Vietnam: 119
Malaysia: 27
Thailand: 39
Indonesia: 90
Cambodia: 66
Vietnam: 120
Malaysia: 17
Indonesia: 51
Vietnam: 68
Thailand: 65
Cambodia: 81
Malaysia: 21
Thailand: 56
Cambodia: 69
Indonesia: 104
Vietnam: 113
Malaysia: 24
Thailand: 33
Indonesia: 89
Cambodia: 75
Vietnam: 94
Malaysia: 35
Thailand: 44
Indonesia: 93
Vietnam: 113
Cambodia: 105
Malaysia: 59
Vietnam: 88
Thailand: 95
Indonesia: 97
Cambodia: 120
Indicator
ICT price basket

(cost and affordability of
ICT services)[2]
Philippine
ranking/status
2010
2011
114 of 165
113 of 161
2012
Ranking/stat
us of
selected
ASEAN
countries in
2012
119 of 161
Malaysia: 53
Thailand: 90
Indonesia: 110
Vietnam: 112
Cambodia: 130
e-government ranking[3]
78 of 183
(no data; 88 of 190
Malaysia: 40
survey
Vietnam: 83
conducted
Thailand: 92
twice a
Indonesia: 97
year)
Cambodia: 155
Water supply
84.8%
84.4%
(no data)
Malaysia: 100%
coverage[4]
Vietnam: 96%
Thailand: 96%
Sanitation coverage[4]
92.5%
91.9%
(no data)
Malaysia: 100%
Thailand: 100%
Hospital beds per 1,000
0.5
1.0
(no data)
Vietnam: 2.2
people[5]
(c. 2009)
(c. 2010)
Thailand: 2.10
(c. 2010)
Sources:
[1] Global Competitiveness Reports for 2010-2011, 2011-2012 and 2012-2013 byMalaysia:
World 1.8
Economic Forum
(2009-2011)
[2] Measuring the Information Society (MIS) Reports for 2011, 2012 and 2013 by
International Telecommunication Union (ITU)
[3] United Nations Global e-Government Survey 2010 and 2012
[4] Annual Poverty Indicators Survey Reports for 2010 and 2011 by National Statistics
Office (for Philippines); Progress on Sanitation and Drinking-Water: 2013 Update by
WHO and UNICEF (for ASEAN Countries)
[5] World BankHealth Nutrition and Population Statistics
development
243
Box 10.1. Major infrastructure achievements in support

of the productive sectors
Roads (as of 2012)
25,992 km of national roads already paved
67% of 31,456-km provincial roads and 56% of 14,749-km city roads
maintained in good to fair condition
Seaports and Airports (as of 2013)
18 of 32 Road Roll-On/Roll-Off Terminal System routes made operational as
of June 2013
Pocket Open Skies Policy (EO 29) issued in 2011, allowing foreign carriers to
operate unilateral and unlimited traffic rights to airports other than the Ninoy
Aquino International Airport
Common Carriers Tax Act (RA 10378) signed in 2013, rationalizing
taxes paid by foreign carriers, thereby encouraging them to include the
Philippines in their primary routes
Irrigation (as of 2011)
58.97% of 3.02 million hectares of irrigable area nationwide provided
with irrigation services
ICT (as of 2013)
Cellular mobile signal coverage increased to 99.4% in 2012
Broadband coverage increased to 60.9% in 2012
Average broadband download speed in major cities increased to 4.4 million
bits per second (Mbps) in 2013
Energy (as of 2012)
On-grid installed capacity increased to 17,025 megawatts (MW),
adequate for Luzon and Visayas until Q1 2015 and mid-2014, respectively,
but not for Mindanao in 2013
Share of indigenous sources in the total energy mix at 56.3%
79.56% of 4,236.18 MW generating assets from National Power Corporation
privatized, which is one of the prerequisites for retail competition and open
access that contributes to lower, more competitive electricity rates
244
Equalizing development opportunities

The government aims to improve every Filipinos participation in governance
and the economy, as well as to reduce the social vulnerability of the populace.
These entail the provision of critical infrastructure support related to health,
nutrition, education, shelter and other means of social protection.
Improving human capabilities

To date, around 3.5 million households still have no access to formal sector
health facilities. This, despite the upgrading, rehabilitation or reconstruction
of 3,846 health facilities from 2010 to 2013, of which 1,567 were barangay
health stations, 2,027 rural health units and city health centers, and 252 local
government unit (LGU) hospitals. In addition, the PhP13.6-billion fund from
the Health Facilities Enhancement Program provided capital-upgrading support
to LGU and DO H hospitals with infrastructure and equipment grants in 2013.
As of 2012, classroom-to-pupil ratio is still at 1:40 and 1:51 in the
elementary and secondary levels, respectively, below the respective standard of
1:30 and 1:45. To attain the standards, the government significantly
increased the budget for classroom construction from only PhP6.14 billion in
2010 to PhP17.9 billion in 2013. As of June 2013, 65 percent of 66,800
classrooms targeted for construction within the year were already completed.
Through the Public-Private Partnership (PPP) for School Infrastructure Project
(PSIP), around 19,980 classrooms will be completed by 2013 or early 2014 in
regions with acute classroom shortage.
As of 2011, only 84.4 percent of families, or 17.21 million, have access to clean
and safe drinking water.132 To help attain 100-percent coverage, the Sagana at
Ligtas na Tubig sa Lahat (SALINTUBIG) Program of the Department of the
Interior and Local Government (DILG), DOH and National Anti-Poverty
Commission (NAPC) provided water supply systems and capacity building
measures to 37 waterless municipalities, 16 basic emergency obstetric and
newborn care units, 11 resettlement areas, and 21 poorest barangays as of August
2013.133
Statistics on sanitation remain uncoordinated and at times conflicting.134 W hile
the proportion of households with access to basic sanitation 135 increased from 76
percent in 2008 to 92.5 percent in 2010, coverage in 2011 slightly decreased to
91.9 percent due to population increase. Despite this, the Millennium
Development Goal (MDG) target of 83.8-percent access to basic sanitation
has already been realized, but achieving 100-percent coverage remains a
Based on the 2010 and 2011 Annual Poverty Indicators Survey (APIS) reports, which considered
challenge.
132
only community water systems and protected wells as potable water supply sources.
133
Based on preliminary consolidated report as presented by NAPC on 27 to 29 August 2013 during
the SALINTUBIG Midterm Operational Planning Workshop
134
The 2010 DOH Field Health Service Information System (FHSIS) report shows a mere 77-percent access to
sanitary toilets, which is contrary to the APIS figure of 92.5 percent.
135
Basic sanitation refers only to access to sanitary toilet [flush (owned or shared) and closed pit type
toilet facility], without accounting for septic tank connections.
development
245
Reducing vulnerabilities
From 2011 to July 2013, the government shelter program has channeled
PhP115.22 billion to service the housing requirements of 299,022 households.
Of this total amount for housing assistance, it allocated 63 percent to low-cost
housing covering 87,785 households, with the remaining 37 percent to socialized
housing covering 211,237 households.
A total of 4 .9 5 million
households and 24 ,325
sitios still do not have
access to electricit y as
of 2 0 12.
Despite having provided electricity to 76.7 percent of households and 76.1

percentof sitios since 2010, a total of 4.9 million households and 24,758 sitios
still do not have access to electricity as of 2012. The 2013-2017 Household
Electrification Development Plan (HEDP) issued by the Department of Energy
(DOE) sets the plans and strategies to attain 86.2-percent household
electrification by 2016 and 90-percent by 2017. For the sitios, the Philippine
Energy Plan 2012-2030 targets a100-percent electrification by 2015.
Furthermore,the National Power Corporation (NPC), through its Small Power
Utilities Group (SPUG), operates 302 power plants in off-grid areas
nationwide with total rated capacity of 283.06 megawatts (mW ) as of 2012.
Its 2012-2016 Missionary Electrification Development Plan includes strategies
for private sector participation in SPUG and distribution utility (DU)-covered
unviable areas, improved technical efficiency of SPUG and DUs in small-island
and isolated grids, and rationalized Universal Charge for missionary
electrification subsidy, among others.
The government expanded the Community e-Center (CeC) Program that
provided ICT service centers and shared Internet access facilities in remote
areas. As of 2013, it already established 1,573 CeCs nationwide. The ICT
Office (ICTO) of the Department of Science and Technology (DOST) also
explored the use of television white space (TVWS) as an alternative technology
for providing education and public services beyond commercial wired or wireless
broadband coverage.
Making governance effective and efficient

The government undertook several critical reforms in the past three years
to improve governance within the sector and subsequently enhance the
countrys investment climate. However, a number of crucial regulations,
policies, as well as data gathering and monitoring systems, are still necessary
to foster an enabling atmosphere for accelerating infrastructure development
and to ensure effective planning, implementation, and sustainability.
The PPP approach is a major strategy to mobilize the private sector as a
partner in infrastructure development. Two major legal frameworksthe
implementing rules and regulations of the Build-Operate-Transfer Law (RA
6957 as amended by RA 7718) and the guidelines and procedures for joint
venture agreementswere amended to further streamline and fast-track the
implementation of PPP projects and increase transparency through a check-andbalance mechanism. The former became effective on 22 October 2012, and the
latter on 26 May 2013.
246
Reforms in the energy sector have also led to increased private sector
participation. On the implementation of the Renewable Energy (RE) Act of
2008 (RA 9513), the Energy Regulatory Commission (ERC) approved in July
2012 the feed-in-tariff (FiT) rates to encourage RE developers to invest at the
initial stage and hasten RE deployment. The Net Metering Program, a
consumer-based RE incentive scheme that offsets DU-provided electric energy
with electric power generated by end- users from eligible RE facilities and
delivered to local DUs, has also been initiated. Meanwhile, the Renewable
Portfolio Standards, which requires suppliers to source part of their supply from
RE resources, is being reviewed.
On managing local roads, the DILG instituted local roads management
systems in 10 provinces in the Visayas and Mindanao through the
Performance-based Incentive Scheme under the Provincial Road Management
Facility (PRMF). The goal is to improve delivery of basic road services and
increase economic activity in the South.
In line with improvements in the countrys e-government system, the
DOST- ICTO launched in June 2012 the Integrated Government Philippines
(iGovPhil) Project that provides needed infrastructure, software and support
systems. Also in 2012, the ICTO launched two initiatives: the Contact Center
ng Bayan (CCB) as the governments main helpdesk and the Philippine ICT
Statistics Portal as a web- based system providing ICT-related statistics.
As chair of the National Economic and Development Authority
(NEDA) Boards Infrastructure Committee, the NEDA Secretariat has been
at the helm of optimizing infrastructure investments nationwide. The NEDA
introduced the conduct of Value Engineering/Value Analysis (VE/VA) in
appraising priority projects to ensure that these are not overdesigned or overspecified and to minimize cost overruns, project implementation delays and
changes in scopes of works. In addition, the President signed EO 146 in 2013,
delegating to the NEDA Board his power to approve reclamation projects to
ensure that such initiatives are consistent with national priorities and
synchronized with the planning, programming and budgeting process.
In line with improvements

in the countrys
e-government system, the
Technology-Information
and Communications
Technology Office
launched in June 20 12
the Integrated
Government Philippines
(iGovPhil) Project that
provides needed
infrastructure, soft ware
and support systems.
Stabilizing national security

Upholding territorial integrity is a primary challenge given the countrys
archipelagic nature. The thrust is to strengthen maritime security capabilities and
infrastructure facilities and reinforce security measures from external threats
through ICT-based technologies.
In 2012, the Philippine Coast Guard (PCG) became the first coast guard
or maritime safety agency in the world to be certified as compliant with
International Organization for Standardization (ISO) 9001:2008 standards.
This expanded an earlier certification given to the Coast Guard Action Center
(CGAC) in 2010. The PCG operates 561 light stations nationwide, 166 of which
were rehabilitated, and
development
247
ensures a 95-percent operational level by deploying field maintenance

inspection teams. Similarly, commercial ports in Batangas, Cagayan de Oro and
Davao also received ISO Q uality Management System certifications and
recommendations from 2011 to 2012.
The Maritime Industry Authority (MARINA) issued major policies on
water transport safety and security. Advisory No. 2012-07 in 2012 prohibits the
use of unregistered vessels or motorized bancas for tourism, island hopping or
sightseeing, while Flag State Administration Advisory (FSAA) No. 2012-21
safeguards the working and living conditions of seafarers against counterterrorist actions, in relation to the ratification of the Maritime Labour
Convention 2006. MARINA also completed the Philippine Map on
Navigational Areas that include danger zones and hazardous areas.
Improving sustainability and climate-resiliency of the

environment
In 2011, the Department of Public Works and Highways (DPWH) constructed
flood management infrastructure that protected 3,822 hectares of land
against 25-year floods, thus decreasing by 11.72 percent the identified
32,618 hectares deemed vulnerable to flooding. In September 2012, the
NEDA Board approved the implementation of a master plan for effective flood
risk management (FRM) in Metro Manila and surrounding areas, with an initial
allocation of PhP5 billion for immediate, high-impact flood management
interventions. It also approved the FRM Project along selected principal rivers.
To help avert further degradation/pollution of major waterways in Metro
Manila and alleviate flooding during heavy rains, the government allocated
PhP50 billion for the relocation of 104,219 informal settler families residing
along Metro Manila waterways, with the National Housing Authority
(NHA) implementing the program for off- and in-city relocation, the latter
involving the construction of medium-rise buildings.
To manage properly the countrys solid wastes, around 1,500 LGUs and
32,000 barangays still need to be covered by additional sanitary landfills
and materials recovery facilities,respectively,until 2016. In Metro Manila,4.07
million households are not yet covered by sewerage systems. Furthermore,
rapid technological developments have led to increased quantities of electrical
and electronic wastes (e-wastes). Specific legislation, policy framework and
infrastructure facilities are needed for managing the countrys e-wastes.
III. STRATEGIC FRAMEWORK
248
Guided by the Presidents Social Contract with the Filipino People, which
envisions socioeconomic progress anchored on high and sustained
economic growth that generates massive quality employment and reduces
poverty, infrastructure development will focus on the attainment of the
following intermediate outcomes:
(a) competitiveness enhanced and productivity increased in the industry,
services and agriculture sectors; (b) adequacy and accessibility of basic
infrastructure services
enhanced, and infrastructure gaps in far-flung areas reduced; (c)

governance improved; (d) safer and more secured environment created and
sustained; and (e) environmental quality improved (see Figure 10.2).
Figure 10.2.
development
Intermediate
outcomes
Strategic
framework
Competitiveness
enhanced and
productivity
increased in the
industry, services
and agriculture
sectors
on
Adequacy and
accessibility
of basic
infrastructure
services
enhanced, and
infrastructure
gaps in far-flung
areas reduced
accelerating
Governance
improved
infrastructure
Safer and
more secured
environment
created and
sustained
Environmental
quality improved
OVERALL STRATEGY:
Increase public infrastructure spending to enhance the quality,
adequacy, and accessibility of infrastructure facilities and services
Strategies
1.Improve
connectivity and
efficiency
2.Support
agricultural
production
3.Pursue energy
and water
security
4.Improve
business climate
5.Improve
access to and
adequacy
of basic
infrastructure
services
6.Address
infrastructure
gaps in far-flung
areas
7.Promote good
governance
through ICTs
8.Improve
coordination
and planning,
streamline
government
processes.
10.Provide
safety and
security
measures
12.Strengthen
resilience to
climate change
and disasters
11.Enable
development in
conflict-affected
areas
13.Improve
wastewater
and solid waste
management
9.Optimize
infrastructure
investment
14.Support
measures to
improve air
quality
Overall strategy
The overall strategy is to increase public infrastructure spending to enhance
the quality, adequacy and accessibility of infrastructure facilities and services.
W ith adequate fiscal space for the medium term (see Chapter 2:
Macroeconomic policy; and Chapter 5: Resilient and inclusive financial
system), the government will increase public infrastructure spending from 2.2
percent of GDP in 2012 to at least 5.0 percent by 2016 (Figure 10.3). The
spending will still be supplemented by private sector investments through PPP
and will be anchored on a conscious effort to increase efficiency based on the
synchronized planning and budgeting processes.
development
249
Figure 10.3. Infrastructure spending as component of capital outlay, 20122016

6.0%
5.1
%
5.0%
4.0%
4.0
%
3.0%
2.0%
1.0%
0.0%
3.5
%
201
2
Source: DBM and NEDA

Note: Actual figure for
2012.
201
3
201
4
201
5
201
6
2.5
%
2.2
% infrastructure
following
The
development strategies and action plans,
clustered according to the five infrastructure intermediate outcomes, will be
pursued for the remaining term of the administration.
Intermediate outcome A: Competitiveness enhanced and

productivity increased in the industry, services and
agriculture sectors
Infrastructure serves as among the key measures in promoting growth in
the agriculture, industry and services sectors.
Strategy 1: Improve connectivity and efficiency among urban

centers, regional growth hubs
Under the master plan on High Standard Highway Network
Development, additional 234.13 kilometers (km) of toll expressways
will provide interconnectivity in Central Luzon, Metro Manila and the
CALABARZON. In addition, the government will develop a seamless
multimodal logistics system along the Subic-Clark-Manila-Batangas (SCMB)
corridor to ensure efficient flow of commodities, supplies, and inputs to
tourism, agricultural production and economic/industrial zones. W ith several
projects also lined up to enhance the services of Clark International Airport
(CIA), the extension of SCMB corridor farther north and south will be
pursued through increased utilization of the Subic and Batangas Ports.
In addition, the government will explore establishing a long-distance, highspeed mass rail transit system and an integrated/full-length railway system for
freight-rail services across Luzon that are duly coordinated with transport
systems in Metro Manila and other urban centers. Along with this is the
rationalization of agency roles on mass transport development.
250
The completion of the Central RORO (Roll-On/Roll-Off ) Spine Project

will enhance interisland logistics, to facilitate seamless movement of
passengers, vehicles and goods along the Luzon-Panay-Negros-Cebu-BoholMindanao route. In Mindanao, Box 10.2 shows the five innovation and growth
corridors that will be developed.
Box 10.2. Innovation and growth corridors in Mindanao

Mindanao Food, Agribusiness and Logistics Corridor (Tagum-Davao-General
Santos);
Mindanao Industrial Trade Corridor (Western and Northern Mindanao);
Mindanao Food Basket Corridor (Central Mindanao-Bukidnon);
Mindanao Biodiversity and Ecotourism Corridor (Surigao-AgusanDavao Oriental including former Paper Industries Corporation of the
Philippines [PICOP] concessionaire areas); and
Mindanao Mariculture and Trade Corridor (Zambasulta: Zamboanga-BasilanSulu-Tawi-Tawi)
The ASEAN, in its 17th summit in 2010, adopted the Philippine initiative
of establishing an ASEAN RORO Network as a flagship program of the
ASEAN Connectivity Master Plan. Related initiatives, including developing
the General Santos, Philippines-Bitung, Indonesia route, will be linked to
the ASEAN Community Roadmap 2009-2015.
The convergence program of DPWH and the Department of Tourism will
provide road access to designated priority tourism destinations under the
National Tourism Development Plan (NTDP). To support this plan in meeting
the expected increase in tourist arrivals, the Department of Transportation
and Communications (DOTC) will develop the capacities of international and
principal Class 1 and 2 airports with commercial flights. Along with the
continuous implementation of the Open Skies Policy, Common Carriers Tax
Act, as well as consultation talks participated by the Philippine Air
Negotiating Panel, construction/rehabilitation of terminals and navigational
facilities is planned for the following tourism airports: Marinduque, San Jose,
Siargao, Vigan, Basco, Bukidnon, General Santos, and Roxas airports. In
addition, construction/upgrading and improvement of several tourism ports,
like Ivana Port in Batanes, Panganngan Port in Bohol, Lawigan Port in
Camiguin, and Cagban Jetty Port in Aklan, will be undertaken to expand their
capacities.
The government will continue to promote the spread of ICT to develop
the information technology-business process management (IT-BPM)
industry, as guided by the 2012-2016 IT-BPM Road Map that targets US$25
billion in revenues and 1.3 million employees in said industry by 2016 (see
Chapter 3:
development
2 51
Competitive and innovative industry and services sectors). The government

will provide the overall development framework on the deployment of new
technologies and improvement of the countrys digital connectivity through the
following plans:
National Broadband Deployment Plan, to address current gaps and
recommend appropriate initiatives on optimizing broadband service; and
Digital Terrestrial Television Broadcasting Migration Plan, to prepare
the Philippines switchover from analogue to digital signaling broadcast
system.
The revalidated results matrix (RM) under this strategy is presented in Table
10.2.
Indicators
Baseli
End-ofAssumptions and
ne
Plan
risks
Table 10.2. Revalidated results matrix (RM) on improving connectivity
(2010
target
and efficiency among urban centers, regional growth hubs
)
(2016)
Travel time via road in key
corridors and key urban
corridors decreased (in min)
252
20.59 (2012)
20.03
Satisfactory traffic management

system in place by LGUs.
Implementation of other infra
projects (e.g. communications,
water system) systemically
coordinated for smooth traffic.
5 Contactless Automatic Fare
Collection System to be
implemented in 2015
Transfer time in MRT/LRT

decreased (in min)136
Platform to platform
Concourse to platform
10
Optimal capacity (trains

standing capacity with
allowance to consider
passengers' comfort/space) in
train systems achieved (per
sq.m.)137
4-8
PNR-Metro Commuter
6
(Optimal capacity = 6
Philippine
Development
passengers
per sq. m.)
LRT 1 (Optimal capacity = 6
6
passengers per sq. m.)
4-7 Rolling stocks/materials are

available and sufficient
6
5-7
Indicators
Baseli
ne
(2010
)
Load transported via the Central

RORO Spine increased (in tons
per ship-hour)138
189 (2012)
Davao
126 (2012)
Cagayan de Oro
Batangas
42 (2012)
21 (2012)
Passengers transported via air

increased per annum139
Coverage of cellular mobile
telephone service (CMTS) in
cities and municipalities
increased (in
% of total number of cities/
municipalities)
End-ofPlan
target
(2016)
37,960,765
Assumptions and
risks
251 Efficiency indicator affected by:

o Economic factors (e.g., demand
and supply affecting cargo
throughput);
o Physical and operational
179
condition of ports
Does not consider
government
policy on diversion from
Manila
47
25
port to Batangas port
56,084,528
95
Projects to be completed
as scheduled
100 Enabling policies/ regulations on
increasing coverage to be issued
by government (DOST- ICTO,
NTC, etc.)
Return of investment is good/
attractive for private sector
Strategy
2: Support agricultural production
Cities and municipalities with
47
100
broadband
coverage
increased
(in
Increasing the competitiveness of agriculture requires increasing yield as
% of total number of
well
as farmed land.
To intensify rice production, among others,
cities/municipalities)
development and rehabilitation of irrigation systems will be pursued. Small

water impounding projects, among others, will be established, where and when
feasible, to augment the demand for water. In parallel, irrigation management
transfer will be undertaken so that irrigators associations will be more efficient
in operating and managing secondary canals and on-farm structures in larger
systems, as well as entire systems covering more than 3,000 hectares. In
addition, rural infrastructure and facilities will be improved through the
construction/rehabilitation of farm-to-market roads that strategically connect
rural and agricultural areas with market towns and destinations, and enable
efficient transport of agriculture produce to market towns and distribution
centers.
The revalidated RM under this strategy is presented in Table 10.3.
development
253
Table 10.3. Revalidated results matrix (RM) on

supporting agricultural production
Indicators
Irrigation service
coverage increased
(in % of total
potential irrigable
area)140
NIA
DA-BSWM and
Baseli End-ofne
Plan
(2010 target
)
(2016)
56.01
49.34
6.67
Assumptions and
risks
73.80
Total irrigable area of 3.126

million hectares assumed in
2010 was reduced to
3.021 million in 2011 due to
conversion and areas made
permanently non-restorable.141
65.27
Potential areas to be irrigated are
restorable and not converted.
8.53 Irrigators associations manage
DA-RFUs 3: Pursue energy and water security the irrigation systems effectively .
Strategy
Table 10.4 shows the capacities of committed and indicative power

projects in Luzon, Visayas and Mindanao from 2013 to 2016, and the
targeted ratio of dependable capacity to peak demand and required reserve by
2016. The committed projects targeted to be implemented from 2013 to
2016 include 515.27 MW power projects utilizing RE resources, with 130.31
MW from geothermal, 169.64 MW from hydropower, 68.00 M W from wind,
47.33 MW from biomass and 100 MW from solar. To help ensure the reliability
of power supply, the National Grid Corporation of the Philippines will
implement various transmission projects under its Transmission Development
Plan 2012.
Table 10.4. Target capacity of committed and indicative

Particulars
private
sector-initiated power plant projects, 2013-2016 Grid
Luzon
Capacity of committed power plant
projects (2013-2016), in MW
Capacity of indicative power plant
projects (2013-2016), in MW
Ratio of dependable capacity to peak
demand and required reserve (2016)
767.4
9,702.5
107.86%
Visayas Mindan
ao
429.6
718.0
105.32%
515.0
1,928.0
100.0%
Total value of NIA and DA (BSWM and RFUs). Based on an estimation from the submitted Public
Investment Program (PIP) of NIA, only about 64.71% can be achieved by 2016. However, NIA is
currently reviewing its PIP.
141
Based on the NIA 2012 Year End Report
140
254
Pending new capacity addition, rehabilitation and uprating of existing

power plants in Mindanao, the DOE supports the DUs implementation of
Interruptible Load Program (ILP) as a short-term solution to the regions
power situation. The program will compensate large energy consumers for
operating their own generating facility and voluntarily taking themselves off the
grid during situations of peak demand or supply shortfall. The DOE will also
continue to implement two programs as additional options for DUs in the shortterm:
Modular Genset Program, wherein electric cooperatives may purchase or
rent modular generator sets to fill the gap between demand and contracted
supply, particularly during peak hours; and
Interim Mindanao Electricity Market, which encourages the use of available
uncontracted and unutilized capacities in the Mindanao grid for realtime correction of electricity supply-demand imbalance.
The Bright Now Campaign under the National Energy Efficiency and
Conservation Program (NEECP) will promote smart energy use through the
dissemination of basic information on energy standards, energy efficient
products and innovative technologies. As part of the NEECP, the DOE will
also expand its existing energy labeling program to include television sets,
washing machines and new models of passenger cars and light duty vehicles,
apart from the current coverage of air conditioners, refrigerators and compact
fluorescent lamps or CFL.
As an overarching strategy in the pursuit of water security, eco-efficient
approaches/ interventions for developing water infrastructure will be
considered. To guide water security objectives, river basin master plans will
be developed, including water resource assessments or water availability
studies particularly for water- critical areas, to identify new water sources for
domestic, commercial, industrial, irrigation and other needs. Surface water
will be prioritized over groundwater resources, where appropriate. Studies
will be undertaken in water-critical areas, such as Metro Manila, Metro
Cebu, Metro Davao, Angeles City, Metro Iloilo, Cagayan de Oro City and
Bulacan, among others. For Metro Manila, new water sources will be identified
and developed to eliminate the risks arising from being dependent on a single
water source for various consumption needs.
For Metro Manila, new

water sources will be
identified and developed to
eliminate the risks arising
from being dependent on
a single water source for
various consumption
needs.
Raw water pricing will also be explored and complemented with

capacity development for stakeholders, particularly for the agriculture sector
(which is the largest consumer of water), to promote efficient water
utilization/extraction. Domestic and municipal water supply provision targets
the increase of Level III and 24-hour service coverage and the reduction of nonrevenue water. In addition, the government will ensure adequate water supply in
priority tourism destinations under the NTDP.
development
255
Box 10.3. Major government infrastructure projects to pursue

energy and water security
Angat Dam and Dyke Strengthening Project
Angat Water Transmission Improvement Project
New Centennial Water Source-Kaliwa Dam
Bulacan Bulk Water Supply Project
Rehabilitation, Operation and Maintenance of the Angat Hydro

Electric Power Plant (AHEPP) Auxiliary Turbines 4 & 5 through PPP
Uprating of Agus 6 Units 1&2
50-MW Isabela Coal Mine-Mouth Power Plant
50-MW Coal-fired Power Plant in Malangas
278.4 MW Renewable Energy Project
The revalidated RM under this strategy is shown in Table 10.5.
Table 10.5. Revalidated results matrix (RM) on pursuing

energy and water security
Indicators
Baseli End-ofAssumptions and
ne
Plan
risks
(2010 target
)
(2016)
Power demand
met (i.e., ratio of
dependable capacity to
total peak demand with
required reserve is
maintained above
Luzon(in %)
100%)
Visayas
Mindanao
Target energy selfsufficiency (at 60%)
met (in % of total
energy)
108.14
113.42
104.39
Projections based on 7.0%

GDP growth.
Actual commercial operation
dependent on private
sector decision.
Private sector
107.86
investment in
the subsector increased.
Management of the service
103.29
107.70
105.32
100.00
58.31
60.00
is efficient and effective.
Energy savings targets under

the National Energy Efficiency
and Conservation met
RE committed projects
Mandated blending for biodiesel and bioethanol is 5% and 10%, respectively,
of total volume
implemented
as scheduled
sales
Mandated biofuels blending
implemented as scheduled142
142
256
Indicators
Water demand in
water critical areas
met (in % ratio of
water supplied in
million liters per day
[MLD] to water
demanded in MLD)
MWSS Concession
Areas
Metro Cebu
Bulacan
Cagayan de Oro City

Davao City
Coverage of 24/7
water supply (WS)
services in cities
increased (in %)
Baseli End-ofne
Plan
(2010 target
)
(2016)
116.06
(2011)
Assumptions and
risks
92 Scheduled projects are
implemented without delay
Sector investment increased and
management for the water
system by LGU/private sector
are satisfactory.
122
(2011)
38 (2011)
113 Deficit in MWSS Concession

Area by 2017
52
88 (2011)
89 Projections only for the

Balagtas, Bocaue, Bulacan,
Calumpit, Plaridel and
Malolos WDs
121
109
(2011)
86 (2011)
77.59
86
90.12
Average of 559 WDs and 2

MWSS concessionaires.
Sector investment increased and
management for the water
are satisfactory.
Level III WS service

coverage increased
(in %)
Non-revenue water
decreased (in % of
total water volume
produced)
82
100
36
Tourist Destination
Areas (TDAs) with
improved water system
increased (in
% of TDAs identified
as waterless)
NA
23 Average of 559 WDs and 2

MWSS concessionaires.
Management for the water
are satisfactory.
100 Covers only 26 TDAs that are
identified as waterless areas
Private sector investments in
tourist areas increased and
management are efficient
and effective.
Strategy 4: Improve business climate through institutional and

policy reforms, and legislation
It is necessary to strengthen institutional and regulatory regimes, particularly
in the transport, water, and ICT subsectors, by creating independent
regulators to enhance competitiveness and protect consumers.
development
257
The expected approval of the National Transport Policy will raise the level
of accountability in decision making and enhance interaction among
institutions regulating international and domestic freight transport, transport
operators and intermediaries providing brokerage services. Through this,
bottlenecks will be eliminated to enhance transport infrastructure, improve
logistics, reduce transport time, and lower transport logistics costs.
To address institutional fragmentation and coordination issues in the
water subsector, the following interventions will be pursued: (a) establishment of
a lead/ apex agency in the water resources sector for the coordination of policies,
plans and programs related to water resources; (b) prioritizing water resources
assessments and developing river basin master plans in priority river basins; and
(c) creation of a lead coordinating agency for water supply and sanitation (WSS)
provision.
Box 10.4 lists the priority policies and legislation aimed at fostering an
enabling atmosphere for infrastructure development.
Box 10.4. Priority infrastructure sector policies and laws
258
Enactment of Anti-Trust Law, to combat unfair competition in industries
Amendment of the Tariff and Customs Code and Domestic Shipping

Development Act, to foster greater competition and lower transportation cost
Amendment of the BOT Law, to further enhance transparency,

competitiveness, impartiality and mobilization of private sector for infrastructure
development
Strengthening of National Telecommunications

independent regulator of the ICT sector
Enactment of law enabling an atmosphere for converging technologies

brought about by enhancements in the ICT sector
Enactment of law strengthening security and capability

cyberattacks, cybercrimes, cyberterrorism, and cyberwarfare
Amendment of Solid Waste Management Act, to harmonize

conflicting/ overlapping provisions with existing laws on fines, penalties, and
local taxation (RA 7160), environmental impact assessment (PD 1586, s.
1978), air emissions (RA 8749), environmental education (RA 9512), compost
quality requirements (RA 10068), climate-proofing of facilities (RA 9729), and
incentives (EO 226, s. 1987); and, to incorporate appropriate management of
electronic wastes
Amendment of the IRR of the Water Code, to strengthen resource regulation

and promote more efficient use of water resources
Harmonization of Renewable Energy Act, National Integrated Protected

Areas System Act and Indigenous Peoples Rights Act, to address social
concerns in project approval
Enactment of law on national land use and management (see Chapter

9: Sustainable and climate-resilient environment and natural resources)
Amendment of law on right-of-way, site or location

government projects, to balance State and private rights
Enactment of National Transport Safety and Security Act, to create

a board that investigates transport accidents and provides
transport safety recommendations
Amendment of the Charters of Philippine Ports Authority and Civil
Commission
as
the
against
acquisition
for
Philippine Development PlanAviation

2 011-2016
MIDTERM
Authority
of the UPDATE
Philippines, to address conflicts in their regulatory and
operation/ operator functions
Intermediate outcome B: Adequacy and

accessibility of basic infrastructure services
enhanced, and infrastructure gaps
in far-fung areas reduced
Both soft and hard infrastructure strategies will address gaps in the supply-side
of basic and social services to help improve human capability, reduce
vulnerabilities, and ultimately equalize development opportunities for all.
Strategy 5: Improve access to and adequacy of basic infrastructure

services
For 2014-2016, the government will construct, rehabilitate and upgrade
10,596 basic health care hospitals and facilities within the Updated Plan period,
including the installation of basic and comprehensive emergency obstetric
facilities with modern and new equipment.
Adequate water supply infrastructure and capacity development support will
be provided to the target waterless poor areas. Provision of WSS for rural and
hard- to-reach areas will be augmented through the bottom-up planning and
budgeting approach,143 among others. The government will scale up
coverage of regional water and sanitation (WatSan) hubs using standardized
local capacity development materials, such as WatSan toolboxes and localized
customer service codes, among others. Zero open defecation at the barangay
level through community-based methodologies, as well as mainstreaming of
sanitation in emergency/disaster response areas, will also be improved.
The Department of Education targets the construction of 43,183 classrooms
in 2014, 39,366 in 2015, and 16,773 in 2016. The government will fast-track
the completion of classrooms under the first and second phases of the PSIP. It
will also construct additional batches of classrooms for PSIP and for the Basic
Education Facilities Program, Regular School Building Program and
School Building Program for Basic Education through increased private sector
and public spending.
The 2011-2016 target of the National Housing Authority (NHA) and
Social Housing Finance Corporation (SHFC) is to provide 578,756
socialized housing units. Along with this is the expansion of energy access
to remaining sitios and households without electricity in the country to
achieve 100-percent sitio electrification by 2015, 86.2-percent household
electrification by 2016 and 90-percent household electrification by 2017.
This will entail installation of 65.225-mW additional power capacity in offgrid areas, as well as accelerating the implementation of retail competition and
open access up to the household level and providing support to DUs.
This approach is consistent with the policy direction under the Cabinet Cluster on Human Development and
Poverty Reduction.
143
development
259
Table 10.6. Revalidated results matrix (RM) on improving

access to and adequacy of basic infrastructure services
Indicators
Baseli
End-ofAssumpti
ne
Plan
ons and
(2010 target
risks
)
(2016)
Classroom-to-pupil ratio improved
Primary
Secondary
1:39
1:54
WatSan facilities-to-pupil ratio improved

Primary
1:58
Secondary
1:103
Households (HH) with electricity
72.07
increased (in % of total number
of HH)144
Sitios with electricity
68.65
increased (in % of total
number of sitios)145
HH access to water supply
84.80
number of HH)
Barangays with zero open11.91 (2011)
defecation increased (in % of
total number of barangays)146
1:30
1:45
Projects to be
completed/
implemented as
scheduled
1:50
1:50
86.20 Private sector
investments
increased and
management
100.00
efficient and
effective
88.21
71.47 Dependent on DOH
assessment of LGUs
coordinated through
DILG
Box 10.5. Major infrastructure programs and projects to improve access

to and adequacy of basic infrastructure services
Public-Private Partnership (PPP) for School Infrastructure Project

(PSIP) Phases I & II
Health Facility Enhancement Program (HFEP)
Modernization of the Philippine Orthopedic Center
SALINTUBIG Program
Sitio Electrification Program
Expanded Rural Electrification Program
Total number of households in 2010 is 20.2 million.

The total number of households in 2010 is 20.2 million.
146
Total number of barangays is 41,975.
144
145
260
Strategy 6: Address infrastructure gaps in far-flung areas

To further expand communications services in remote and rural areas,
the government will aggressively implement the CeC Program and establish
2,586 CeCs by 2016 to provide alternative means of access to information and
government services. Another strategy is to pursue the TVWS initiative to
provide broadband access in rural, remote, unserved and underserved areas.
Table 10.7. Revalidated results matrix (RM) on addressing infrastructure
gaps in far-flung areas
Indicators Baseli
End-ofAssumptions and
ne
Plan
risks
(201
target
1)
(2016)
Access to ICT in public schools increased (in % of
total number of public schools)
Primary
61
Secondary
88
Intermediate outcome C:
Government will allocate

budget for connectivity of
primary/secondary schools
91 Return of investment to the private
sector for broadband infrastructure
is good/attractive
By 2014, all energized schools shall
be provided with computer
packages and connectivity
91 Investment by private sector for

broadband
infrastructure
increased
and
Governance improvedmanagement
efficient and effective.
The following strategies aim to enhance efficiency and transparency in

governance and provide better means of communication between government
and the public.
Strategy 7: Promote good governance through ICTs

The e-Government Master Plan 2013-2016 will serve as the blueprint
for introducing innovations within government work processes,
enhancing administrative productivity and allowing more citizen participation.
The iGovPhil Project will set up a government-shared network among
agencies and other infrastructure for e-governance.
The Philippine Radio Frequency Management System will provide
greater efficiency in facilitating increasing demand for radio frequencies and
other wireless communications services.
development
2 61
To harmonize data gathering, monitoring, and analyses of various ICT statistics

for policy and decision making, the government will further enhance the
Philippine ICT Statistics Portal, as well as other government websites in the
energy subsector (e.g., kuryente.org.ph, langis.org.ph and wattmatters.org.ph).
Strategy 8: Improve coordination and planning, and

streamline government processes
Particularly for transport

infrastructure, the userpays principle w ill be
applied at the very least
for the purpose of asset
preservation and full-cost
recovery.
Apart from the National Transport Policy, the government developed a

number of roadmaps and master plans to improve coordination and
planning among government agencies in implementing key infrastructure
projects. These include the Roadmap for Transport Infrastructure
Development for Metro Manila and Its Surrounding Areas and the
Transport Infrastructure Development Framework Plan, both of which
aim to interconnect Metro Manila, Central Luzon, CALABARZON region
and other highly urbanized cities and economic regions to improve investments
in key growth areas.
Furthermore, to address institutional fragmentation and coordination issues
in the water resources subsector, the following interventions will be
pursued: (a) establishment of a lead/apex agency in the water resources sector
for the coordination of policies, plans, and programs related to water resources;
(b) prioritization of water resources assessments and development of river basin
master plans in priority river basins; and (c) creation of a lead coordinating
agency and adoption of a unified financing framework/policy for WSS
provision.
Strategy 9: Optimize resources and investments in infrastructure

Since most infrastructure projects are capital-intensive, NEDA will continue
to study the full institutionalization of VE/VA and address concerns including
the optimal timing of conducting VE/VA and consideration of social
component in VE/VA activities, among others.
The government will ensure a systematic process for planning,
budgeting, implementation, monitoring and evaluation of government-wide
ICT programs and projects with the implementation of the Medium-term ICT
Harmonization Initiative (MITH I) for FY 2014-2016 (see Chapter 6).
The fragmented nature of WSS service provision, especially for rural and
unserved areas, requires that the use of all available funds be rationalized
towards more efficient resource allocation. In this regard, a unified financing
framework/policy will be developed.
To preserve and extend the service life of governments infrastructure
assets, government agencies will ensure asset preservation and management
activities through proper maintenance, rehabilitation, upgrading, and funding.
Particularly for transport infrastructure, the user-pays principle will be applied
at the very least for the purpose of asset preservation and full-cost recovery.
This principle may be
262
invoked when service pricing is possible and potential users unwilling to pay for
the service can be excluded. Optimizing resources will focus on upgrading the
quality and capacity of existing transportation infrastructure instead of
expanding network coverage. In the case of existing mass transport
systems, priority interventions include installation of automatic fare collection
systems and system rehabilitation to modernize facilities and improve
service. For long-term sustainability, the government will ensure availability
and adequacy of maintenance funds. For local transport networks management
and maintenance, innovative financing schemes will be set up for LGUs.
Intermediate outcome D: Safer and more secured

environment created and sustained
The following strategies will be put in place to secure peoples property,
livelihood, and well-being from human security threats, and consequently
attain just and lasting peace and national security.
Strategy 10: Provide safety and security measures

Pending the passage of the National Transport Safety and Security Act,
the DOTC-Office of Transport Security (OTS) will continue thorough
inspections and evaluation of security plans of public transport terminals.
In upholding the countrys territorial integrity, the government will
continue rehabilitating sea navigation aids, including capability building of PCG
personnel on counter terrorism and against other external threats. Along
with this is the procurement of patrol boats and multi-role response
vessels, as well as the utilization of geographical information system
technologies in identifying safe areas for marine navigation.
As the nation faces new

risks from cybercrimes, the
government will formulate
a National Cybersecurit y
Program, w hich will
include, among others, the
development of a National
Cybersecurit y Plan.
As the nation faces new risks from cybercrimes, the government will formulate
a National Cybersecurity Program,which will include,among others,the
development of a National Cybersecurity Plan and implementation of a
government-wide systems and networks security management program. It will
also implement the Government Web Hosting Service, as issued through
Administrative Order No. 39 (s. 2013), to enhance security and robustness of
government websites.
Table 10.8. Revalidated results matrix (RM) on providing
Indicators
Baseli
safety
and security measures
ne
(2010
)
PCG responsiveness increased
(in % of calls for assistance responded to)
46.40
End-ofPlan
target
(2016)
82.11
development
263
Strategy 11: Enable development in conflict-affected areas

The government will continue providing infrastructure support to
conflict- affected and impoverished areas through the Investment
Support
Program (ISP) for Autonomous Region for Muslim Mindanao
(ARMM) and the Payapa at Masaganang Pamayanan or PAMANA
Program (see Chapter 8: Peace and security).
Relatedly, the Stimulus Development Plan (SDP) for ARMM was prepared as
a reform roadmap towards economic recovery and development through
strategic projects promoting basic services, livelihood and basic
infrastructure such as national roads. The government will continue until
2016 to implement ongoing and programmed foreign-assisted projects for
road and bridge construction, with the DOTC improving, constructing and
rehabilitating municipal ports in San Esteban in Ilocos Sur, Tarahib in
Catanduanes, Kawayan in Biliran, Galas in Dipolog, Lugus in Sulu, as well as
other ports in ARMM.
Intermediate outcome E. Environmental quality improved

The environment needs effective infrastructure support to adapt to climatechange threats and mitigate risks from disasters and natural calamities. The
government will undertake the following strategies in the infrastructure
sector to ensure a livable and safe environment conducive to sustainable
economic growth.
Box 10.6. Major infrastructure interventions
to improve environmental quality
Strengthen resilience to climate change and disasters
Implementation of immediate high-impact projects identified under the

Master Plan for Flood Management in Metro Manila and Surrounding Areas
Flood Risk Management Project (FRIMP) along principal rivers

(Cagayan River, Tagoloan River, Imus River and Cagayan de Oro River)
Improvement/Restoration of Telemetry Equipment of the Effective

Flood Control Operation System (EFCOS)
Improve wastewater and solid waste management
Development and Operation of Waste-to-Energy Facilities
264
National Sewerage and Septage Management Program
Strategy 12: Strengthen resilience to climate change and disasters

The government will implement the Master Plan for Flood Management in
Metro Manila and Surrounding Areas. Approved by the NEDA Board in 2012,
the plan identifies measures to increase safety of population and protection of
property and livelihood from floods and related environmental risks (e.g.,
landslides). Related to this is the prioritization of construction of flood
management structures in highly vulnerable areas based on river basin master
plans, and expediting immediate financing for the rehabilitation of flood
management structures.
The government will improve the existing flood forecasting and warning
systems through strengthened coordination among the National Disaster Risk
Reduction and Management Council (NDRRMC), Advanced Science and
Technology Institute (ASTI), Philippine Atmospheric, Geophysical and
Astronomical Services Administration (PAGASA), DPWH, Metro Manila
Development Authority and LGUs.
In the aftermath of the devastation brought about by natural calamities or
extreme weather conditions, the government will fast-track the mobilization of
funds and provision of infrastructure program for rebuilding and
reconstructing priority infrastructure. In addition, it will undertake capacity
building for LGUs to improve basic service delivery and exercise of
regulatory powers, specifically in ensuring integrity and sustainability of local
structures from disasters.
To ensure the immediate recovery of areas hit by disasters, a coordinated
response strategy for the immediate rehabilitation/provision of necessary
infrastructure for disaster relief and recovery (e.g., water supply and sanitation,
electricity, roads, etc.) will be established. For the water resources subsector,
mainstreaming of WSS in emergency/disaster response areas will be promoted.
The government w ill strictly

implement the Philippine
National Solid Waste
Management Strategy, w hich
is anchored on the National
Solid Waste Management
Framework adopted in
2004.
Strategy 13: Improve wastewater and solid waste management

The government will prioritize treatment and proper discharge of wastewater
by investing in adequate wastewater management to minimize the impact
on the environment, fisheries, livelihood and the food chain. The full
implementation of the operational plan of the National Sewerage and Septage
Management Program (NSSMP), which started in December 2012, will be
undertaken to improve water quality and public health in highly urbanized cities
(HUCs), as also required by the Clean Water Act of 2004.
To attain the 50-percent diversion rate by 2016 of solid waste from waste
disposal facilities through reusing, recycling, compositing and other
resource recovery activities, the government will strictly implement the
Philippine National Solid Waste Management Strategy, which is anchored
on the National Solid Waste Management Framework adopted in 2004. In
addition, both the Solid Waste Management and Philippine Clean Air Acts
will be revisited in connection with the policy on incineration technology.
development
265
Table 10.9. Revalidated results matrix (RM) on improving

wastewater and solid waste management
Indicators
Baseli
ne
(2010
)
End-ofPlan
target
(2016)
Assumpti
ons and
risks
Treated municipal wastewater increased (in % of total volume of

municipal wastewater produced)
MWSS total concession area
62.81
Clark Economic Zone
100
Survey
computation to
be conducted
68.85
100
Household coverage of sewerage

1.28
18.49
systems increased (in
% of total number of HH)147
Highly urbanized centers (HUCs)
6.25
25.00 There is demand
outside Metro Manila with installed
from HUCs
sewerage systems increased (in %
of total number
HUCs outside
Strategy
14:ofSupport
measures to improve air quality
Metro Manila)148
HH coverage
of septagewill pursue the 1.27
56.15
The
government
National Environmentally
Sustainable
management
systems
increased
Transport (NEST) strategy, which aims to reduce energy consumption and
(in
% of total number
of
associated
greenhouse
gases and air pollutant emissions. The NEST also
households)
promotes the use of transport systems with low carbon intensity and shift
towards more environmentally sustainable modes. Further installation of safe,
non-motorized transport facilities, such as sidewalks, footbridges, underground
walkways and bicycle ways, will be provided to ensure pedestrian safety.
The use of clean and environment-friendly alternative fuels and

technologies, including increasing biofuel blend and use of natural gas, will be
promoted in the energy sector. Moreover, energy efficiency and conservation
will continue to be implemented through the NEECP (see strategy 3). These
measures will contribute to the governments 10-percent annual energy savings
target to reduce greenhouse gas emissions.
147
148
266

Covers 16 HUCs outside Metro Manila
Table 10.10. Revalidated results matrix (RM) on supporting

measures to improve air quality
Indicators
Baseli
End-ofAssumpti
ne
Plan
ons and
(2010 target
risks
)
(2016)
Annual amount of electricity
and fuel conserved (in Kilo
Tons Oil Equivalent [KTOE])
3,700.00
1,115.10 Private sector

investments
increased

To monitor and assess the implementation of the infrastructure strategies
and interventions, an annual target indicator matrix (Table 10.11) was
formulated and further revalidated, together with the RMs presented in the
previous section. An iterative process of consultation, analysis and validation
was conducted through the expanded NEDA BoardCommittee on
Infrastructure (INFRACOM), which served as the Plan Committee (PC)
chaired by the NEDA Secretariat. The PC has five Sub-plan Committees
(SPCs) on transport (chaired by DOTC), energy (chaired by DOE), water
(chaired by DPWH and co-chaired by NWRB), ICT (chaired by DOST), and
social infrastructure.
Indicators
Annual
targets
Table
10.11. Annual target indicator matrix
on Plan
accelerating
infrastructure
(in
%)
development, 2013-2016
2013
201
4
201
5
Means
of
verificat
ion
Agency
responsi
ble
2016
Intermediate outcome A: Competitiveness enhanced and productivity increased in the industry, services and
agriculture sectors
Strategy 1: Improve connectivity and efficiency among urban centers, regional growth hubs
Travel
time to
viaplatform
road in key
Platform
urban corridors in Metro
Manila decreased (in min)
Transfer time in MRT/LRT
decreased (in min)149
20.468
20.318
20.154
20.034
Average platform-to-platform and concourse-to-platform values.

Range
value of
LRT Lines 1 and 2, and MRT3,
passengers
Concourse
to PNR,
platform
10 with maximum/full
10 capacity of 8 standing
5
per sq.m
Actual survey
data
MMDA
Actual
Operation data
of MRT/
DOTC
LRT
149
150
Optimal capacity (trains

standing capacity with
allowance to consider
passengers comfort/
space) in train systems
4-8
4-8
4-8
4-7
Actual
Operation
data
development
DOTC, PNR,
LRTA
2 67
Indicators

2014
2015
2016
2013
PNR-Metro Commuter
LRT 1
LRT 2
(Optimal capacity = 4-5
MRT3
Load transported via the
Central RORO Spine
increased (in tons per
ship-hour)151
Davao
Cagayan de Oro
Batangas
Passengers transported
via air increased per
annum152
7-8
7-8
5-7
4-5
4-5
4-5
221
232
251
137
43
22
46,340,236
153
45
23
49,344,076
161
47
24
53,153,098
179
47
25
56,084,528
99
100
100
100
60
70
80
100
202
Coverage of cellular mobile

telephone service (CMTS)
in cities and municipalities
number of
cities/municipalities)
Cities and municipalities
with broadband coverage
increased (in % of
total number of cities/
municipalities
151
152
268
Means
of
verificat
ion
Total value of Batangas, Davao and CDO ports

Total projected value for 19 airports/areas
Actual
passenger/
sqm
5-7
Project
status report,
operations
4-5 related report,
accomplishment
report
6
Annual/ actual
survey/
monitoring/
verification
on port
operation and
performance
Monthly
statistical
reports
Actual
operation
data, DOTC
report
NTC annual
report, NTC
monitoring/
evaluation of
private sector
Agency
responsi
ble
DOTC, PNR
DOTC, LRTA
DOTC
DOTC, PPA,
MARINA,
DPWH and
TRB
PPA*
DOTC*
ICTO, NTC*
Indicators

2013
2014
2015
2016
icultural production
Means
of
verificat
ion
Agency
responsi
ble
NIA/DA
report, actual
NIA, DA, DAR
Strategy 2: Support agr

Irrigation service coverage
potential irrigable area)153
NIA
DA-BSWM and DA-RFUs
Strategy 3: Pursue energ

Power demand met (i.e.,
ratio of dependable
capacity to total peak
demand with required
reserve is maintained
above 100%) (in %)
Luzon
Visayas
Mindanao
Target energy selfsufficiency (at 60%) met (in
% of total energy)
Water demand in water
critical areas met (in %
ratio of water supplied in
million liters per
day [MLD] to water
demanded in MLD)
67.44
69.01
70.91
73.80
59.39
60.74
62.63
65.27
8.05
8.26
8.29
8.53
108.06
104.39
106.52
103.86
113.07
109.28
110.37
107.86
109.14
109.54
103.95
105.32
97.35
92.78
109.86
100.00
59.04
59.28
60.22
60.00
89
90
90
92
DOE*
Metro Cebu
Cagayan de Oro City
Davao City
Coverage of 24/7 water
supply (WS) services in
cities increased (in %)
DA-BSWM,
DA-RFUs
y and water security
MWSS Concession Areas

Bulacan
NIA
119
117
116
113
43
46
49
52
83
86
89
89
109
115
119
121
89
87
79
86
Total value of NIA and DA (BSWM and

RFUs). Based 88.62
on an estimation89.34
from the submitted
86.98
90.12
Public Investment Program (PIP) of NIA, only about 64.71% can be achieved by 2016. However, NIA is
currently reviewing its PIP.
153
development
MWSS,
concessionaires,
LWUA, WDs,
DENR-RBCO
and NWRB
MWSS,
concessionaires,
LWUA, WDs,
LGUs and
NWRB
269
Indicat
ors
Annual Plan
targets (in %)
2014 2015
201
3
201
6
Level III WS service

coverage increased (in % )
98
99
99
100
Non-revenue water
decreased (in % of total
water volume produced)
26
25
24
23
Tourist Destination Areas

(TDAs) with improved
water system increased
(in % of TDAs identified
as waterless)
100
100
100
Means
of
verificat
ion
Agenc
y
responsi
MWSS,
ble
concessionaires
, LWUA, WDs,
and NWRB
Actual
inventory
data / report
MWSS,
concessionaires
, LWUA, WDs
DPWH,
DOT, LWUA,
WDs
Int ermediat e o u tcome B: Adequacy and accessibility of basic infrastructure services enhanced, and infrastructure
gaps in far-flung a reas reduced
Strategy 5: Improve access to and adequacy of basic infrastructure services

Classroom-to-pupil ratio improved
Primary
1:34
1:32
1:31
1:30
Secondary
1:48
WatSan facilities-to-pupil ratio increased
1:47
1:46
1:45
1:52
1:50
1:65
1:5
1
1:55
77.38
79.43
82.67
86.20
82.91
9 1.18
100.00
100.00
Primary 1:53
Secondary
1:75
Households (HH) with
electricity increased
(in % of t ot al number
of HH)
Sitios with electricity
number of sitios) 15 5
Actual
inventory
data / report
DepEd
1:50
Phil. Energy
Plan
2 012-2030
Power
Outlook
DOE
NEA
HH access to water supply

number of HH)
8 6.0 6
86.48
86.9 0
88.21
Actual data
survey
DPWH, MWSS,
LWUA, WDs,
Concessionaires
, WSPs, DILG,
NAPC, DSWD
Barangays with zero

open-defecation increased
(in % of total number
of barangays)1 5 6
35.74
47.65
59.56
71.47
Annual report
DOH, DILG
155
156
2 70
Total number of sitios in 2010 is 103,489.

Total number of barangays is 41,975.
Indicators
Annual Plan
targets (in %)
Access to ICT in public schools increased (in % of total number of public schools)
Primary 51
90
90
Means
of
verificat
ion
Agency
responsi
ble
Actual
inventory
ICTO, DepEd
91
2013
20
14
Strategy 6: Address infrastructure gaps in far-flung areas
Secondary
MWSS
total
91
20
15
2016
91
91
91
data/report
Intermediate outcome D: Safer and more secured environment created and sustained
Strategy 10: Provide safety and security measures

PCG responsiveness
46.40
46.40
increased (in % of calls for
assistance responded to)
Intermediate outcome E. Environmental quality improved
67.83
82.11
Strategy
13: Improve
and solid waste management
Highly urbanized
centwastewater
ers
Volume
municipal wastewater increased (% of volume of municipal
(HUCs) ofo utreated
tside Metro
wastewater produced)
concession area
Clark Economic Zone
65.88
66.86
67.93
68.85
100
100
100
100
5.44
7.87
13.56
Manila with installed

6.25
sewerage systems
number
of HUCs outside
158
Metro
Manila)
Covers 16 HUCs outside Metro Manila
6.25
6.25
HH coverage of septage
management systems
3.24
Household coverage of
sewerage systems
number of HH)157
* Agency responsible to monitor only the

indicator
PCG actual
data/report
PCG
MWSS,
concessionaires
MWSS,
concessionaires
Annual Reports
Annual report
SEZs
18.49
Agency
Reports
MWSS,
concessionaires,
DPWH, LWUA,
25.00
Actual data/
report
WDs, LGUs,
SEZs
157
158
2.34
4.07
56.15
Accelerating
infrastructure
development
2 71
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ASEAN.
Retrieved from National Competitiveness Council Website: http://www.co
mpetitive.org.ph/wef.
National
Economic
and
Development
Authority
(2011).
Philippine
Development
P lan
2011-2016 Results Matrices. O rtigas Center, Pasig City:
N EDA. p.32.
Philippine
Statistics
Authority
N ational
Statistical
Coordination
Board.
(2013).
Annual Per Capita Poverty Threshold, Poverty Incidence and Magnitude of
Poor Families, by Region and Province: 1991, 2006, 2009 and 2012. Retrieved through http://ww
w.nscb.gov.ph/poverty/dasacharts.asp
Philippine
Statistics
Authority
N ational
Statistics
Office.
(2013).
Family Income and Expenditure Survey 2012. Retrieved from N ational Statistics Office
Website:
http://www.census.gov.ph/sites/default/
files/attachments/hsd/article/TABLE%201%20Number%20of%20Families%2C%20Total
%20and%20
Average%20Annual%20Family%20Income%20and%20Expenditure%20by%20Region
Bibliography
%202012_0.pdf.
Philippine Statistics Authority
N ational Statistics Office. (2013). Labor Force
2 73
Chapter 2: Macroeconomic policy

Asian
Development Bank. (2013). Key Indicators for Asia and the Pacific. Retrieved from
Asian Development Bank Wesbite: http://www.adb.org/publications/key-indic
ators-asia-and-pacific-2013
Canada Keen on PH L for BPO, UK firms eye PPP. (2011). Department of Trade and
Industry Upbeat 23,
1. Retrieved from D T I Website: http://dti.gov.ph/uploads/DownloadableFor
ms/Upbeat%20No.%20 23%20Canada%20keen%20on%20PH L.pdf
Department of Budget and Management. (2013). Assessment of National Government Disbursement
Performance Report for January to December, 2012. Retrieved from Department of Budget and
Management Website: http://www.dbm.gov.ph/wpcontent/uploads/DBCC/2012/ASSESSME
N T% 2 0 D ECEM BER%20 2012.pdf.
International M onetary Fund. (1993). Balance of Payments Manual 5 (BMP5). Retrieved from htt
ps://www.imf.org/ external/pubs/ft/bopman/bopman.pdf.
International Monetary Fund. (2009). Balance of Payments and International Investment Position
Manual 6 (BMP6).
Retrieved from http://www.imf.org/external/pubs/ft/bop/2007/pdf/bpm6.pdf.
Chapter 3: Competitive and innovative industry and services

sector
Aldaba, R.M. (2013). Reviving the manufacturing industry. Paper presented during N AST
Roundtable Discussion on Development Progeria on 17 January 2013
Association of Southeast Asian N ations. Foreign Direct Investment Statistics. Retrieved
from http://www.asean. org/news/item/foreign-direct-investment-statistics
Bangko
Sentral ng Pilipinas. Foreign Direct Investment Statistics. Retrieved

Sentral ng Pilipinas Website: http://www.bsp.gov.ph/
from
Bangko
Department of Trade and Industry (2011). MSME Development Plan 2011-2016. Retrieved
August 27, 2013 from http://www.dti.gov.ph/dti/index.php?p=51
Department of Tourism. (2011). National Tourism Development Plan 2011-2016
Departmen t of Tourism. (2013). Presentation to the Economic D evelopment Cluster
(ED C), June 17, 2013 Usui,
N.
(2012).
Taking the right road to inclusive growth: Industrial
upgrading and diversification in the

Philippines. Mandaluyong City, Philippines: Asian Development Bank
United Nations Conference on Trade and Development (2013). Concentration and diversification
indices of merchandise exports and imports by country, annual, 1995-2012. Retrieved from htt
p://unctadstat.unctad.org/ TableViewer/tableView.aspx
The World Bank and International F inance Corporation. Doing Business Reports. Retrieved 21
March 2013 from http://www.doingbusiness.org/reports
2 74
World
Economic
Forum.
The Global Competitiveness Reports.
Retrieved
22
May
2013
from
World Economic Forum Website: http://www.weforum.org/reports
Chapter 4: Competitive and sustainable agriculture and fisheries

sector
Agricultural Credit and Policy Council.(2013). Inputs to the PDP 2011-2016 Updating,
submitted to N EDA through a Memorandum on August 2013.
Department
of
Agrarian
Reform
(2012). ARC Level of Development Assessment (ALDA)
Report for CY 2011.Diliman, Q uezon City: Department of Agrarian Reform, P lanning
Service.
Food and Agriculture O rganization.(2013). International data on agricultural yield. Retrieved
from FAO Corporate Statistical Database (FAOSTAT ) website: http://faostat3.fao
.org/faostat-gateway/go/to/download/Q/*/E
Briones, R. (2005). Philippine agriculture over the years: Performance, policies and
pitfalls. Paper
presentedatthe conferenceon Policiesto Strengthen Productivityin the Philippines;MakatiCity
,Philippines.
Habito, C. and
Philippine
Atmospheric, Geophysical and
Astronomical
Services Administration.
(2011). Scenarios under the MDG-F 1656: Joint Programme on strengthening the Philippines
Institutional Capacity to Adapt to Climate Change. Diliman, Q uezon City: D OSTPAGASA, Climatology and Agrometeorology Division.
Philippine Statistics Authority Bureau of Agricultural Statistics. (Various Years).
Selected Statistics on Philippine Agriculture. Retrieved from BAS CountryStat website:
http://www.http://countrystat.bas.gov.ph/
Philippine Statistics Authority Bureau of Labor and Employment Statistics. (2012).
Yearbook of Labor Statistics. Retrieved from BLES website: http://www.bles.dole.gov.
ph/PUBLICATIONS/Yearbook of Labor Statistics/stat_tables.html
Philippine Statistics Authority Bureau of Labor and Employment Statistics.
(2013). Current Labor Statistics. Retrieved from BLES website: http://www.bles.dole.gov
.ph/PUBLICATIONS/Current Labor Statistics/ index.html
Philippine Statistics Authority N ational Statistics Coordination Board.(Various
Years). National Income Accounts.
Retrieved from NSCB website: http://www.nscb.gov.ph/sna/DataCharts.asp
Philippine Statistics Authority National Statistics Coordination Board.
(Various Years). Philippine Poverty Statistics.
Retrieved from NSCB website: http://www.nscb.gov.ph/poverty/dataCharts.asp
Philippine Statistics Authority N ational Statistics Office. (Various Years). Annual
Labor and Employment Estimates andLaborForceSurvey.Retrievedfrom NSO website:http://www
.census.gov.ph/statistics/survey/labor-force
World
Trade
O rganization.(2013).
Time series on international trade.
Retrieved
from
W TO
website: http://stat.wto.org/StatisticalProgram/WSDBStatProgramHome
.aspx?Language=E
Chapter 5: Resilient and inclusive financial system

Balakrishnan, R. et al. (2012). Surging capital flows to emerging Asia: Facts,
impacts and
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275
Bangko Sentral ng Pilipinas. (2013). Q&A on the exchange rate impact: how much, what we can
do,and whats next. Retrieved from Bangko Sentral ng Pilipinas Website:
htt
p://www.bsp.gov.ph/downloads/Publications/ FAQs/fximpact.pdf accessed on 26 June
2013.
Commission on Filipinos O verseas. Stock Estimate of Overseas Filipinos as of December
2012.Retrieved from Commission
on
Filipinos
O verseas
Website:
http://www.cfo.gov.ph/images/stories/pdf/ StockEstimate2012.pdf
International M onetary Fund. (1993). Balance of Payments Manual 5 (BMP5). Retrieved from
https://www.imf. org/external/pubs/ft/bopman/bopman.pdf.
Chapter 6: Social development

Department of Health. (2013) Philippine Health Sector Roadmap.
Food
and Nutrition Research Institute of the Department of Science and

Technology (FNRI-D OST ). 2011 National Nutrition Survey.
Philippine Statistical Authority - Bureau of Labor and Employment Statistics. (2008)
Survey of Occupational Skills and Shortages.
Philippine Statistics Authority. 2011 Family Health Survey.
Philippines Development Forum. (2013). Report of the Philippines Development Forum (PDF) Working
Group on MDGs and Social Progress.
Technical Education and Skills Development Authority. (2011). National Technical Education
and Skills Development Plan (NTESDP) 2011-2016.
Retrieved
from
http://www
.tesda.gov.ph/uploads/File/LMIR2011/ july2012/NTESDP%20Final%20asofSept12.pdf
Chapter 7: Good Governance and the rule of law

Schwab, Klaus (2013). The Global Competitiveness Report: 2010-2011, 2011-2012
and
2012-2013. Retrieved from
the
World
Economic
Forum
(W EF)
website:
http://www.weforum.org/reports/global- competitiveness-report-20122013
United Nations (UN) Secretary-General. (2004). The rule of law and transnational justice in conflict
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World Bank. (2010, 2011, 2012). World Governance Indicators (W GIs). Retrieved from the
World Bank (WB) website: http://info.worldbank.org/governance/wgi/index.aspx#ho
me
World Bank. (2010, 2011, 2012). Ease of Doing Business Index Data. Retrieved from the World
Bank (WB) website: http://data.worldbank.org/indicator/IC.BUS.EASE.XQ/countries
World
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and
International
Finance
Corporation.
(2010,
2011,
2012)
Doing Business: Measuring Business Regulations. Retrieved from Doing Business Website: ht
tp://www.doingbusiness.org/rankings
Chapter 8: Peace and security

Armed Forces of the Philippines. (n.d.). AFP Internal Peace and Security Plan (IPSP)Bayanihan. Retrieved from http://www.army.mil.ph/pdf_files/bayanihan.pdf
United N ations. (1982). UN Convention on the Law of the Sea (UNCLOS). Retrieved from htt
p://www.un.org/
depts/los/convention_agreements/texts/unclos/UNCLOST O C.htm
Chapter 9: Sustainable and climate-resilient environment and natural

resources
Carandang, A.P. (2012). Assessment of the Contribution of Forestry to Poverty
Alleviation in the Philippines. In Making Forestry Work for the Poor: Assessment of the
Contribution of Forestry to Poverty Alleviation in Asia and the Pacific. FAO- Regional Office for
Asia and the Pacific. (Chapter 9). Retrieved from FAO website: http://www.fao
.org/docrep/016/i2732e/i2732e.pdf
Center
for International Earth Science Information N etwork, Columbia

University & Yale Center for Environment Law and Policy, Yale University
(2012). 2012 EPI: Environmental Performance Index and Pilot Trend Environmental
Performance Index. Retrieved from Yale University website: http://epi.
yale.edu/files/2012_epi_report.pdf
Harmeling, S. & Eckstein, D . (2012, N ovember). Global Climate Risk Index 2013: W ho
suffers most from extreme weather events? Weather-related loss events
in 2011 and 1992 to 2011. Retrieved from German Watch website: http://
germanwatch.org/fr/download/7170.pdf
Mucke,
P. (2012). Disaster
risk, environmental degradation
and global
sustainability policy.
In World Risk Report 2012 (Chap. 1). Retrieved from
United N ations University Institute for Environment and Human Security
website: https://www.ehs.unu.edu/file/get/10487.pdf
N ational Disaster Risk Reduction and Management

Damages to Properties of Natural Disasters in the Philippines
Council
(2012). Estimated
Philippine Atmospheric, Geophysical and Astronomical Services Administration

(2011). Climate Change in the Philippines. Retrieved from PAGASA website: http://ww
w.pagasa.dost.gov.ph/climate-agromet/ climate-change-in-the-philippines
W orld Bank (2006). Where is the Wealth of Nations? Measuring Capital for the 21st Century. The
World
Bank,
Washington,D.C.RetrievedinTheWorldBankwebsite:http://webwo
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T O P ICS/ENVIRO N M EN T/ E XT EEI/0,,contentMDK:20872280~pagePK:210058~piPK21006
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for
Environment
and
Human
Security website: http://www
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Chapter 10: Accelerating infrastructure development

Association
of
Southeast
Asian
N ations
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from
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Department of Science and Technology (D OS T ). (2013). e-Government Master Plan.
Retrieved from D OST website: http://i.gov.ph/wp-content/uploads/2014/01/eGo
vMasterPlan_Final-Version.pdf
International Telecommunication Union (IT U). (2011). Measuring the Information Society
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IT U
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tatistics/Documents/publications/mis2012/ MIS2012_without_Annex_4.pdf
IT U
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tatistics/Documents/publications/mis2013/ MIS2013_without_Annex_4.pdf
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2 78
Glossary
Absorption
rate
Access to Finance
The percentage of the number of graduates who get a job

after completion of education and/or training to the number
of graduates who were not employed prior to completion of
education and/or training.
Sustained
availability
of
reasonably
priced,
socially
responsible and environment friendly financial products,
services and support programs that are designed for MSMEs,
and that MSMEs can conveniently and readily access.
Acquired Immune
Deficiency Syndrome
(AIDS)
Action Program for
Judicial Reform (APJR)
Adaptation
AFP Coast Watch

South System
Agrarian Reform
A fully inclusive financial system is characterized by (a) the

provision of a wide range of financial services (credit,
savings, payments, insurance, innovative products) to serve
the demands of different market segments, (b) the development
of financial products that are appropriately designed and
priced, tailor-fitted to market needs and capacities, (c) the
participation of a wide variety of strong, sound and duly
authorized financial institutions utilizing innovative
delivery channels to provide financial services to more
Filipinos, and
(d) the effective interface of bank and non-bank
products/delivery channels, technology and innovation to
reach the financially excluded.
A condition characterized by a combination of signs and
symptoms, caused by the Human Immunodeficiency Virus (H IV )
contracted from another which attacks and weakens the bodys
immune system, making the afflicted individual susceptible to
other life-threatening infections.
A comprehensive set of programs and projects aimed at
enhancing conditions and performance for an improved
delivery of judicial services. The APJR embodies the vision
and mission of then Chief Justice Hilario G. Davide, Jr. for
a judiciary that is independent, effective, efficient and
worthy of public trust and confidence.
Adjustment in natural or human systems in response to
actual or expected climatic stimuli or their effects, which
moderates harm or exploits beneficial opportunities.
A program designed to secure the countrys coasts
especially in Mindanao regions.
The redistribution of lands, regardless of crops or fruits
produced, to farmers and regular farm workers who are
landless, irrespective of tenurial arrangement, toGlossary
include
the totality of factors and support services designed to lift
the economic status of the beneficiaries and all other
279
Agrarian Reform
Community
Agribusiness
Agricultural
Lands
A community composed and managed by agrarian reform

beneficiaries (ARBs) who are willing to be organized and to
undertake the integrated development of an area and/or their
organizations or cooperatives (Source: RA 9700).
The sum of all operations involved in the manufacture and
distribution of farm supplies; production activities on the
farm; and the storage, processing and distribution of farm
commodities and items made from them (Source: Department
of Agrarian Reform Administrative O rder N o. 5, Series
2009).
Agroforestr
y
Lands devoted to or suitable for the cultivation of the soil,

planting of crops, growing of trees, raising of livestock,
poultry, fish or aquaculture production, including the
harvesting of such farm products, and other farm activities
and practices performed in conjunction with such farming
operations by persons whether natural or juridical and not
classified by the law as mineral land, forest land,
residential land, commercial land, or industrial land
(Source: RA 8435).
Alienable or Disposable Land
The sustainable management of land, which increases their

productivity by properly combining agricultural crops with
forest crops simultaneously or sequentially over time through
the application of management practices which are compatible
with the local climate, topography and slope.
Alkire Foster
(AF)
Allocation to
Local
Government Units
Areas with common weather or meteorological conditions

and sources of airpollution which affect the interchange
and
diffusion
of
pollution
in
the
surrounding
atmosphere.
Alternative Dispute
Resolution (ADR)
Land of the public domain, which has been classified and

declared as such and available for disposition.
A method that was devised to measure the multidimensional
poverty. It considers several factors that show poor
peoples experience of deprivation.
Alternative
fuels
Alternative Learning
System
Ancestral Domains
280
The
the
for
and
share of LG Us from the internal revenue collections of

national government based on a sharing scheme computed
each LGU provided for under the L ocal Government Code
other special laws.
A procedure used to resolve a dispute or controversy, other

than by adjudication of a presiding judge of a court or an
officer of a government agency in which a neutral third
party participates to assist in the resolution of issues,
which
includes arbitration, mediation, conciliation, early neutral
evaluation, mini-trial, or any combination thereof (as
defined under RA 9285).
N onconventional or advanced fuel; Any material or substance

that can be used as fuel, other than conventional fuels such
as fossil fuels and nuclear materials. Some well-known
2 011-2016 MIDTERM
UPDATE biodiesel, bioalcohol (methanol,
alternative
fuels include
ethanol, butanol), chemically stored electricity (batteries
and fuel cells), hydrogen, non-fossil methane, non-fossil
Ancestral Domains
Sustainable Development and
Protection Plans (ADSDPPs)
resources therein, held under a claim of ownership, occupied

or possessed by ICCs/IPs, themselves or through their
ancestors, communally or individually, continuously to the
present except when interrupted by war, force majeure
or displacement by force, deceit, stealth or as a
consequence of government projects or any other voluntary
dealings entered into by government and private
individuals, corporations, and which are necessary to
ensure their economic, social and cultural welfare.
Ancestral Lands
A plan that embodies the goals and objectives, policies and

strategies of ICCs/ IPs for the sustainable management and
development of their ancestral domain and all resources
therein including the human and cultural resources such as
their Indigenous Knowledge Systems and Practices (IKSPs).
Anti-Red Tape
Program
Land occupied, possessed and utilized by individuals,

families and clans who are members of the ICCs/IPs since time
immemorial, by themselves or through their predecessors-ininterest, under claims of individual or traditional group
ownership, continuously, to the present except when
interrupted by war,
force majeure or displacement by force, deceit, stealth, or
as a consequence of government projects and other voluntary
dealings entered into by government and private
individuals/corporations, including, but not limited to,
residential lots, rice terraces or paddies, private forests,
swidden farms and tree lots.
Autoclave/Autoclavin
g
Balance of Payments
(BOP)
Balance of Payments and

International Investment
Position, 6th Edition
(BPM6)
Bank Density
Ratio
Baranga
y
Basel II & III
An initiative of the government to monitor compliance of

government agencies with the Anti-Red Tape Act (ARTA). This
program includes Citizens Charter monitoring, Report Card
Survey (RCS), Service Delivery Excellence Program, ARTA
Watch, and conferment of the Citizens Satisfaction Center
Seal of Excellence.
A more efficient method of wet thermal disinfection. This
method is typically used in hospitals for the sterilization
of reusable medical equipment. It allows for the treatment of
only limited quantities of waste and is therefore commonly
used only for highly infectious waste, such as microbial
cultures or sharps.
Refers to statistical statement that summarizes transactions
between residents and non-residents during a period. It
consists of the current account, the capital account, and
the financial account. The overall BOP position can be
in surplus, deficit or in balance. A surplus arises when
inflows are greater than outflows while a deficit is
incurred when outflows exceed inflows. W hen inflows and
outflows are equally matched, the BOP position is in
balance.
Refers to the manual issued by the International M onetary
Fund (IMF) which provides guidance to member countries on
the compilation of statistics on the BOP and international
payments position (IIP). The BPM6 is the successor to the
Balance of Payments Manual, 5th Edition or BPM5.Glossary
The ratio of the total number of domestic banking offices to
2 81
Basic
Education
Basic Education Sector

Reform Agenda
(BESRA)
Basic
Literacy
Benefit Delivery Ratio
(BDR)
Bio-chemical Oxygen
Demand (BOD)
Biodiesel
Biodiversit
y
Bioethanol
Biofuel
standards on risk-sensitive capital requirements for banks.

As a revision to the 1988 Basel Accord, Basel II is designed
to establish minimum levels of capital for internationally
active banks. Basel III embodies the changes to existing
capital rules under Basel II in response to the global
financial crisis of 2008.
The education intended to meet basic learning needs, which
lays the foundation for subsequent learning. It encompasses
early childhood, elementary and high school education as well
as alternative learning systems for out-of-school youth and
adult learners and includes education for those with special
needs
(Source: RA 9155).
A package of policy reforms pursued by the Department of
Education to (DepEd) improve the quality of education in
the Philippines and attain the Education For All (EFA)
goals in 2015.
The ability to read and write with understanding a
simple message in any language or dialect. Also known as
simple literacy.
The cumulative likelihood that any Filipino is (a)
eligible to claim; (b) aware
of entitlements and is able to access and avail of health
services from accredited providers; and (c) is fully
reimbursed by the Philippine Health Insurance Corporation
(PH IC) as far as total health care expenditures are
concerned.
The measurement of the approximate quantity of dissolved
oxygen that will be required by bacteria to break down organic
matter in wastewater or surface water.
Renewable and biodegradable diesel fuel extracted from
plant oil such as Coconut Methyl Esther (CME).
Biomass energy
systems
Variability among organisms from all sources, including

terrestrial, marine and other aquatic ecosystems and the
ecological complexes of which they are a part; this includes
diversity within species, between species and of ecosystems.
(Source: RA 9125)
Biomass
resources
A high-octane, water-free alcohol produced from the

fermentation of sugar or converted starch.
Bioethanol and biodiesel and other fuels made from biomass
and primarily used for motive, thermal and power
generation, with quality specifications in accordance with
the Philippine N ational Standards.
282
Energy systems which use biomass resources to produce

heat, steam, mechanical power or electricity through
thermochemical, biochemical or physico-chemical processes,
or through such other technologies which shall comply with
prescribed environmental standards pursuant to Republic
Act N o. 9136.
2 011-2016 MIDTERM
UPDATE
N on-fossilized,
biodegradable
organic material originating
from naturally occurring or cultured plants, animals and
micro-organisms, including agricultural products, by-products
Broadban
d
Budget Partnership
Agreements
(BPAs)
Business Development
Services (BDS)
Business Permit and

Licensing System (BPLS)
Business Process
Management
Business Process
Outsourcing (BPO)
Cable Television
(CATV )
Cabotage
principle
A high data rate connection to the Internet and a

transmission capacity with sufficient bandwidth to permit
combined provision of voice, data and
video. Each country may have varying definitions of basic
broadband for data transmission speeds, ranging up from 256
kbps up to 4.0 Mbps.
A formal agreement entered into by a national government
agency (NGA) or a government-owned and controlled
corporation (GO CC) and a partner civil society
organization (CSO) defining the roles, duties,
responsibilities, schedules and expectations with regard to
implementing the CSOs participation in monitoring and
evaluating budget programs/ activities/ projects (PAPs) of
the counterpart N GA G O CC for preparation of the annual
budget.
The wide array of nonfinancial services critical to the entry,
survival, productivity, competitiveness and growth of
enterprises. BDS are provided to assist individuals and
entrepreneurs to enhance their business skills and market
access to improve their income generation and asset-building
capacity. These services include training, consultancy and
advisory services, marketing assistance, market information,
technology development and transfer, and business linkage
promotion.
Refers to the procedures followed by cities and
municipalities in processing permits and licenses which must
be secured by businessmen to operate legally in a locality.
Efforts to streamline the BPLS include adopting a unified
form, reducing the number of signatories, limiting the
number of steps in securing permits and licenses, and
reducing processing time through automation.
The discipline of managing processes (rather than tasks) as
the means for improving business performance outcomes and
operational agility. Processes span organizational
boundaries, linking together people, information
flows, systems and other assets to create and deliver
value to customers and constituents. Processes may be ITenabled but do not necessitate on-shore presence and may
be outsourced to off-shore providers. BPM involves
the deliberate, collaborative and increasingly technologyaided definition, improvement, innovation, and management
of end-to-end business processes that drive business
results, create value, and enable an organization to meet
its business objectives with more agility.
A form of outsourcing that involves the contracting of the
operations and responsibilities of a specific business
function (or process) to a third-party service provider. It
is typically categorized into back office outsourcing which
includes internal business functions such as human resources
or finance and accounting, and front office outsourcing
which includes customer-related services such as contact
Glossary
center services.
A transmission system which distributes broadcast television
signals and other services by means of coaxial cable. CAT V
283
Capital Account
Capital
accumulation
Capital Flows
The increase in the capital stock by undertaking investment

in excess of replacement investment. This accumulation is
usually viewed as the expansion of the productive potential
of the economy.
Capital Inflows
The movement of money for the purpose of

investment, trade or business production.
Capital Markets
The private and official inward flows of money to the

country in the form of investments, grants and loans.
Capital Outlay
Carbon
Sequestration
Career Executive
Service (CES)
An alternative market from bank-originated loan market

wherein individuals and institutions raise funds mostly via
trading or other over-the-counter (O T C) financial
instruments. It is also considered as a long-term
(maturities of longer than one year) funding source. The
most common subcomponents of capital markets are stock and
bond markets.
Appropriations for the purchase of goods and services, the
benefits of which extend beyond the fiscal year and which
add to the assets of the Government, including investments
in the capital stock of G O CCs and their subsidiaries.
Career Executive
Service Development
Program (CESDP)
The prevention of greenhouse gas build-up in the earths

atmosphere by methods such as planting trees to absorb
carbon dioxide or pumping carbon dioxide into underground
reservoirs.
Career Executive
Service Officers
(CESOs)
The corps of well-selected and development-oriented career

executives who provide competent and faithful service.
Case Management
Information System (CMIS)
Category 1
Provinces
Category 2
Provinces
Category 3
Provinces
Cellular Mobile
Telephone Service
(CMTS)
284
This covers capital transfers receivable and payable,

and acquisition and disposal of non-produced,
nonfinancial assets between residents and nonresidents.
A program of the Development Academy of the Philippines

(DAP) that aims to produce a cadre of government executives
that are knowledgeable, skilled, and committed to multisectoral development and high quality of public service.
A Career Executive Service (CES) eligible government
executive who is conferred a C ES rank appointed to a
position covered by the C ES.
An automated modernization program to improve overall
efficiency of the Judiciary in the administration of
justice in the Supreme Court and the Appellate courts
(e.g. Court of Appeals, Court of Tax Appeals and
Sandiganbayan.)
Areas which have the highest number of poor families;
provinces where development opportunities exist but
pockets of poverty also exist.
Areas which have the highest poverty incidence; typically

these are provinces with small population, or those that
less densely populated, or are in
remote
areas.
2 011-2016
MIDTERM UPDATE
Areas exposed and prone to multiple natural and man-made
hazards, such as landslides, extra ordinary strong winds,
Center of
Excellence
Central
Counterparties
Central Securities
Depository
Certificate of
Ancestral Domain
Title (CADT)
Certificate of Ancestral
Land Title (CALT)
Certificate of Land
Ownership Award (CLOA)
Certification
rate
Chattel
A higher education institution, whether public or private,

that demonstrates the highest degree or level of standards
in a given field of instruction, research and extension as
identified by C H ED .
Refers to organizations that facilitate trading done in
derivatives and equities markets. These clearinghouses are
often operated by the major banks. Their prime
responsibility is to provide efficiency and stability to the
financial markets that they operate in.
An entity that holds and administrates securities and
enables securities transactions to be processed by book
entry. Securities can be held in a physical (but
immobilised) or dematerialised form (i.e. so that they exist
only as electronic records). In addition to the
safekeeping and administration of securities, a CSD may
incorporate clearing and settlement functions.
A title formally recognizing the rights of possession and
Domain ownership of indigenous people and communities over
their ancestral domains identified and delineated in
accordance with this law; Land titles given to tribal
communities in asserting their right on the protection and
sustainable utilization of their ancestral domain areas.
A title formally recognizing the rights of indigenous people
and communities over their ancestral lands identified and
delineated in accordance with
RA 8371.
A document evidencing ownership of the land granted or
awarded to the beneficiary by Department of Agrarian Reform
(DAR), and contains the restriction and conditions provided
for in RA 6657 and other applicable laws. (Source:
Administrative O rder N o. 3 Series 1990)
The percentage of examinees who passed the national
competency assessment for or within a given period.
Chemical Disinfection
Chemical
mixture
Movable items of property which are neither land nor

permanently attached to land or building. A chattel
mortgage is a conditional sale of personal property as
security for the payment of debt or the performance of some
other obligation, the condition being that the sale shall be
void upon the sellers payment to the purchaser of a
specific sum of money or his accomplishment of some named
act. If the condition is performed according to its terms,
the mortgage and the sale immediately become void and the
mortgagee is hereby divested of his title.
A method to treat wastes by using chemicals such as
aldehydes, chlorine compounds, ammonium salts, and
phenolic compounds, to kill or inactivate pathogens.
Any combination of two or more chemical substances if the
combination does
not occur in nature and is not, in whole or in part, the
Glossary
result of a chemical reaction, if none of the chemical
substances comprising the combination is a new chemical
substance and if the combination could have been manufactured
285
Citizens Database and

Information System
(CDIS)
Citizens Participatory
Audit (CPA)
Citizens Satisfaction
Index System (CSIS)
Civil Society Organization
Classroom
Conduct of joint audits by the Commission on Audit (COA)

and
civil
society
organizations
(CSOs)
of
select
infrastructure projects, including the setting up of
systems,
tools,
and
processes
to
institutionalize
participatory audit.
A system designed to collect and generate citizens feedback
on local government units (LGUs) service delivery
performance.
Change
Refers to a wide array of organizations, such as community

groups, non- government organizations (NGOs), labor
unions, indigenous groups, charitable organizations, faithbased organizations, professional associations, and
foundations.
Closed fishing
season
A condition wherein the classroom-pupil ratio is higher

than 1:45.
Cohort survival
rate
Refers to a change in climate that can be identified by

changes in the mean and/or variability of its properties and
persists for an extended period typically decades or longer,
whether due to natural variability or as a result of human
activity (Source: RA 9729).
shortage Climate
Committed Power
Projects
Communal Irrigation
System
Community e-Center (CeC)
Competency Assessment
This refers to the policy imposed by the government banning

the fishing of sardines from December to March in the
waters of Z amboanga and ARMM, and November to March in the
Visayan Sea. This allows the fish species to spawn during
the months when mature sardines reproduce. Also known as
fishing ban.
The percentage of enrolees at the beginning grade or year in
a given school year who reached the final grade or year of
the elementary/secondary level.
Competitive
Advantage
Power projects that have reached financial closure and have

complied with all the necessary clearances (i.e., financial,
legal, technical and environmental).
Completion Rate
An irrigation system managed by a bona fide Irrigators

Association, as defined by RA 8435.
Comprehensive Land Use

Plan
286
An information system maintained by the N ational Bureau of

Investigation (NBI) whose main sources include the
Clearance Processing and Issuance, e-Clearance and the
Crime Information and Monitoring System. It provides
effective and efficient frontline service to NBI clients,
partners and counterparts, and is used for clearance,
authentication, investigation, and effective decisionmaking.
A self-sustaining shared facility owned and operated by the

government as a one-stop shop for ICT needs of the
citizens, providing affordable access to ICT-enabled
services and
relevant content.
The process of gathering and judging evidence to decide

whether a person has achieved a standard of competency or
competence objective.
Competitive edge in terms of product quality and/or price.
It likewise refers to the ability to produce a product with
Concession
Contract
Conflict-affected
Area
Consolidated Public Sector
Deficit
Consumer Price
Index
Contingent Liability
Continuous Quality
Improvement
(CQI)
Contraceptive
prevalence rate (CPR)
Control of Corruption
Controlled dumpsites
Convention on
Indigenous and Tribal
Peoples (ILO Convention
No. 169)
Convention on the
Rights of the Child
Convergenc
e
location, character and extent of the areas land

resources to be used for different purposes and includes
the process and the criteria employed in the determination
of the lands use (Source: Department of Agrarian Reform
Administrative O rder N o. 1, Series of 2002.)
The award by the government to a qualified private entity of
the responsibility for financing, operating, expanding,
maintaining and managing specific Government-owned assets.
An area where the local and peripheral population is
heavily impacted by the infighting of armed groups.
The combined financial positions (in terms of balances,
positive for surplus and negative for deficit) of the
national government (NG), the monitored
non-financialgovernment corporations (MNFGC s), the
government financial institutions (GFIs), LGU s, social
security institutions (SSIs) as well as the cost of
restructuring the defunct Central Bank and the financial
position of the present Bangko Sentral ng Pilipinas (BSP).
A measure of change in the average retail prices of
goods and services commonly purchased by a particular
group of people in a certain area.
Refers to a potential obligation that may be incurred by the
N G that is conditional tothe outcome of an uncertain future
event. G uaranteed contingent liabilities are loans incurred
by G O CCs and GFIs, with N G guarantee
under RA 4860 or under the charter of the G O CC/GFI. On
the other hand, assumed contingent liabilities are GFIguaranteed obligations that are transferred to the NG.
A strategic approach to providing the best health care
possible. It is a preventive strategy that uses consultant
innovation to improve work processes and systems by reducing
time-consuming, low-value activities.
The percentage of currently married women 15 to 49 years
of age reporting current use of any method of
contraception.
Reflects perceptions of the extent to which public power is
exercised for private gain, including both petty and grand
forms of corruption, as well as capture of the state by
private interests.
A site at which solid waste is disposed in accordance
with the minimum prescribed standards of dumpsite
operation.
A legally binding international instrument that is open
to ratification, and which deals specifically with the
rights of indigenous and tribal peoples. Countries that
have ratified the Convention are subject to supervision
with regards to its implementation.
The first instrument to incorporate the complete range of
international human rights including civil, cultural,
Glossary
economic, political and social rights as well as aspects of
humanitarian law.
2 87
Core Housing
Corporate
Malfeasance
Court Administration
Management
Information System
(CAMIS)
Coverage
Credit Default
Swap
Credit Surety Fund

Program
Creditworthines
s
Cropping
calendar
Current
Account
Current Operating
Expenses
(b) Fixed/mobile convergence, where increasingly similar

technologies are used and services provided by fixed
telephone and mobile telephone systems. This type of
convergence opens up prospects for operators to propose the
same services to all users, regardless of the technology or
networks they use.
Any formally built house that is incomplete at the time of
initial occupation. It is usually designed to be completed
by the inhabitant.
Deceptive and fraudulent activities carried out by
officers, investment banks or brokerage firms that
investors millions. This takes place when trusted
professionals abandon ethical principles to pursue
material gain.
corporate
may cost
financial
excessive
Software designed for logging, monitoring and monitoring

caseload and caseflow statistical data. The software was
developed with the assistance of the Canadian International
Development Agency (CIDA).
The geographical reach, or the area on earth capable of
effectively receiving transmission of a certain network
(e.g., coverage for cellular or satellite network).
An agreement designed to transfer the credit exposure of
fixed income products from seller to buyer. The buyer pays a
periodic fee to the seller in return for a potential payment
by the seller in the event of a default by the corporate or
government issuer. The buyer is then assured of a credit
protection whereas the seller guarantees the credit
worthiness of the product. In essence, it is a form of
insurance that promises payment to investors in mortgage
securities and other bonds if the borrower defaults.
A credit enhancement scheme developed by the Bangko Sentral
ng Pilipinas (Bangko Sentral) which aims to increase the
credit worthiness of micro, small and medium enterprises
(MSMEs) that are experiencing difficulty in obtaining loans
from banks due to lack of acceptable collaterals, credit
knowledge and credit track records. It is created by pooling
the contributions of cooperatives and NGOs, the local
governments units (LGUs) and partner institutions.
Under the program, a Fund shall be created at the
provincial or city level to provide more flexibility. It
will also serve as a security for loans of MSMEs from
banking institutions by providing a surety cover in lieu
of acceptable collaterals. Banks generally require
collaterals when extending loans, a requirement that some
MSMEs often find difficult to comply.
A creditors measure of the ability of an individual
or company to meet debt obligations.
288
Refers to the time period from land preparation, planting,

sowing and harvesting of agricultural crops. It varies
according to the commodity and the area in which it is
2 011-2016 MIDTERM UPDATE
grown.
This consists of transactions in goods, services, primary
Customs
Modernization and
Tariff Act
Dependable
capacity
Derivative
s
Dietary Energy
Requirement
Digital Divide
Digital Terrestrial
Television (DTT)
Broadcasting
Disaster Risk Reduction

(DRR)
Disbursements
Disposal
Disposal site
Refers to a legislative proposal that seeks to introduce

amendments to the Tariff and Customs Code of the Philippines
(T CCP) with a view of aligning its provisions with the
International Convention on the Simplification and
Harmonization of Customs Procedures (i.e., Revised Kyoto
Convention (RKC)), which the Philippines supports as one of
the member-countries of the World Customs O rganization.
The load-carrying ability of a power plant during a specific
time interval and period. The dependable capacity of a
generating facility or transmission system may fluctuate,
depending on the available energy, the demand for that
energy, the capability of the system to deliver that energy
at a given moment, and the facilities available to handle
increased capacity should the need arise.
Financial instruments that primarily derive their value
from the performance of an underlying variable such as
interest rates, FX rates, or prices of financial
instruments, commodities, securities, or indices. The term
is also used to
refer to the set of financial instruments that
includes futures, forwards, options and swaps. It can
be used as an insurance to limit the risk of a
particular investment.
The level of energy intake from food that will balance energy
expenditure when the individual has a body size and
composition, and level of physical activity consistent with
long-term good health, and that will allow for the
maintenance of economically necessary and socially desirable
physical activity . The adequate energy intake for Filipinos
is 100% per capita based on the Recommended Energy and
N utrient Intakes (RENI) for Filipinos.
The gap between individuals, households, businesses and
geographic areas at different socioeconomic levels with
regard to both their opportunities to access information and
communication technologies (ICTs) and to their use of the
Internet for a wide variety of activities. The digital
divide reflects various differences among and within
countries.
The sending and receiving of moving images and sound by means
of discrete (digital) signals providing a greater number of
channels and different interactive services and or better
quality of picture and sound in the same amount of frequency
spectrum (bandwidth) as that used by analogue transmissions
through a conventional (aerial) antenna instead of a
satellite dish or cable connection.
The concept and practice of reducing disaster risks through
systematic efforts to analyze and manage the causal factors
of disasters, including through reduced exposure to hazards,
lessened vulnerability of people and property, wise
management of land and the environment, and improved
preparedness for adverse events.
Glossary
The settlement of government obligations and/or accounts
payable by cash; movement of cash from the Bureau of
289
Dissolved Oxygen
(DO)
Distribution
Utility
Diversion Rate
Double-shift class
Ease of Doing
Business (EODB)
Gameplan for
Competitiveness
Ease of Doing
Business (EODB)
Survey Index
Eco-efficiency
Ecological Solid
Waste Management
e-Commerce
Economic
growth
Economic zones
Eco-tourism
eGovernance
Amount of gaseous oxygen (O2) actually present in water

expressed in terms either of its presence in the volume of
water (milligrams of O2 per liter) or of its share in
saturated water (percentage).
Any electric cooperative, private corporation, governmentowned utility or existing local government unit which has
an exclusive franchise to operate a distribution system in
accordance with RA 9136.
The rate or percentage of a potentially recyclable
material that has been diverted out of the waste
disposal stream and therefore not put into disposal
sites.
A schooling system wherein a school caters to two entirely
separate groups of pupils/students during the school day
using the same classroom.
A plan developed and approved by the N ational
Competitiveness Council in July 2012 that aims to simplify
government processes and make them more business-friendly.
An index created by the World Bank (WB) that ranks
economies from 1 to 189, with first place being the best. A
high ranking indicates that the regulatory environment is
conducive to business operation. Survey indicators cover
various areas of business regulation, particularly the
complexity and cost of regulatory processes and the
strength of legal institutions.
A management philosophy that encourages business to search
for environmental improvements that yield parallel
economic benefits. It means having more value with less
impact on the environment; and emphasizes monitoring of
material and energy flows of stocks and life cycle
assessment.
The systematic administration of activities which provide for
segregation at source, segregated transportation, storage,
transfer, processing, treatment, and disposal of solid waste
and all other waste management activities which do not harm
the environment.
Commercial transactions occurring over open networks, such as
the Internet. Both business-to-business and business-toconsumer transactions are included.
Growth in the total, or per capita, output of an economy,
often measured by an increase in real G D P and caused by an
increase in the supply of factors of production or their
productivity.
Selected areas with highly developed or which have the
potential to be developed into agroindustrial,
industrial tourist/recreational, commercial, banking,
investment and financial centers.
290
A form of tourism that can sustainably use natural and

cultural resources while providing employment opportunities
MIDTERM UPDATE
for2 011-2016
local communities.
A wider concept that defines and assesses the impacts that
eGovernment
El Nio/La Nia
Electric
Cooperatives
Electricity
Employment
The development of online services for the public, providing

services such
as e-tax; business registration; birth, wedding, and death
certificates; voting or public opinion polling; passport or
identification renewal; social benefits; licenses and
approvals, planning or business applications; or e-health.
Also included are networked IC T systems supporting
various levels of government in the administration and
delivery of mandated services.
El N io is a warming of the surface water of the Pacific
Ocean that causes extreme dry weather or drought while the
La N ia causes heavy rains in the country that may also
bring strong winds and storms. La N ia brings mostly the
opposite effect of El N io.
Cooperatives supplying or empowered to supply electric
service.
The fundamental form of energy created by the movement of
electrons or an electric current supplied as a public
utility for lighting, heating, etc.
Employed persons include all those who, during the
reference period are 15 years and over as of their last
birthday and are reported either:
Employment
generated
Employment
rate
End-user financing
a.At work. Those who do any work even for one hour during the
reference period for pay or profit, or work without pay on
the farm or business enterprise operated by a member of the
same household related by blood, marriage or adoption; or
b.W ith a job but not at work. Those who have a job or
business but are not at work because of temporary
illness/injury, vacation or other reasons. Likewise, persons
who expect to report for work or to start operation of a
farm or business enterprise
within two weeks from the date
of the enumerators visit, are considered employed.
Energy
Intensity
Derived from the Labor Force Survey conducted by the

Philippine Statistics Authority, and pertains to the
number of individuals that were granted with work.
Enhanced Case
Flow Management
System
The ratio of the total number of employed persons to the

total number of persons in the labor force.
Enhanced Justice on
Wheels (E-JOW )
Financing for stakeholders in a particular sector,

usually incorporated in a modality or program.
Refers to total energy consumption per unit of G D P. It is
calculated as units of energy per unit of GD P (i.e.,
million tons oil equivalent per GD P in billion pesos)
An offshoot project of the Case F low Management (CFM) System
that aims to establish a judiciary-wide ICT systems
development for increasing efficiency in the management of
dockets of all first and second level courts. It involves the
design, development, testing, pilot testing, and process and
system documentation of the eCFM system that is integrated
with the existing CAMIS of the O CA, e-Payment and other
application systems that may be developed later. Glossary
A program created by the High Court to reach out to poor
2 91
Enterprise-based
training
Entrepreneurship
Environmental
Compliance Certificate
(ECC)
Environmental
Impact Assessment
(EIA)
Ethanol
Excise
Tax
Exclusive Economic
Zone
judge, court personnel and a mediator. It is divided into

two main sections: the front section serves as the
courtroom, while the rear section serves as a mediation
room.
A program of learning which takes place in a business
enterprise or workplace.
The act of being an entrepreneur, which can be defined as
one who takes over the world innovations, finance and
business acumen in an effort to transform innovations into
economic goods.
A document issued by the D ENR Secretary or the Regional
Executive Director certifying that based on the
representations of the proponent and the preparers, as
reviewed and validated by the EIARC, the proposed project
or undertaking will not cause a significant negative
environmental impact; that the proponent has complied with
all the requirements of the EIS System and that the
proponent is committed to implement its approved
Environmental Management Plan in the Environmental
Impact
Statement or mitigation measures in the Initial
Environmental Examination.
The process of predicting the likely environmental consequences
of implementing projects or undertakings and designing
appropriate preventive, mitigating and enhancement measures.
A volatile, flammable, colorless liquid that is most often
used as a motor fuel, mainly as a biofuel additive for
gasoline. It is made by fermenting and then distilling
starch or sugar crops such as sugarcane, maize, sorghum,
wheat and other grains, or even cornstalks, fruit and
vegetable waste. Also called ethyl alcohol, pure alcohol,
grain alcohol, or drinking alcohol.
Tax, either specific and/or ad valorem, imposed on selected
articles manufactured or produced in the country for domestic
sale or consumption or for any other disposition, and or
selected imports.
2 92
A zone beyond and adjacent to the territorial sea in which a

coastal state has the following: sovereign rights for the
purpose of exploring and exploiting, conserving and managing
Executive Order No. 3 s.
the natural resources, whether living or nonliving, of the
2001 (Defining Policy and
waters superjacent to the seabed and of the seabed and its
Administrative Structure
subsoil, and with regard to other activities for the economic
Governments
exploitation and exploration of the zone. This includes the
Comprehensive Peace
production of energy from the water, currents, and
Efforts)
winds; jurisdiction with regard to the establishment and use
of artificial islands, installations, and structures; marine
scientific research; and the protection
and preservation of the marine environment. The outer
limit of the exclusive economic zone shall not exceed 200
nautical miles from the baselines from which the breadth of
the territorial sea is measured.
An 2E011-2016
O that MIDTERM
mandatesUPDATE
government to continue to pursue a
comprehensive, integrated and holistic approach to peace;
provides the framework for implementation, coordination,
Executive Order No.

514, 2006 (Establishing
the National Biosafety
Framework, prescribing
guidelines for its
implementation,
strengthening the National
Committee
On Biosafety Of The
Philippines, and for
other purposes)
Executive Order No. 533,
s. 2006 (Adopting
Integrated Coastal
Management as a national
strategy to ensure the
sustainable development of
the countrys coastal and
marine environment and
resources and establishing
supporting mechanisms for
for its implementation)
Executive Order No. 797

s. 1982 (Reorganizing the
Ministry of Labor and
Employment, creating
the Philippine Overseas
Administration, and for
other purposes)
Executive Order No. 888,
s. 2010 (Adopting the
Strategic National Action
Plan (SNAP) on Disaster
Risk Reduction, 2009-2019
and institutionalizing
DRR)
Expanded Tertiary
Education Equivalency and
Accreditation Program
(ETEEAP)
An order establishing the N ational Biosafety Framework,

which aims to s. strengthenthe existing science-based
determination of biosafety to ensure the safe and
responsible use of modern biotechnology, enhance decisionmaking, and guide implementation of international
obligations on biosafety. The NBF integrates existing
biosafety regulations, delineates the responsibilities of
biosafety agencies, strengthens the N ational Committee on
Biosafety of the Philippines and provides a venue for
discussion of overlapping policy issues.
An order adopting an Integrated Coastal Management as a
N ational Strategy to ensure the sustainable development of
the countrys coastal and marine environment and resources
in order to achieve food security, sustainable livelihood,
poverty alleviation and reduction of vulnerability to natural
hazards, while preserving ecological integrity. It mandates
the D ENR to develop a N ational ICM Programme, in
consultation with other concerned agencies, sectors, and
stakeholders, to provide direction, support and guidance to
the local government units (LGUs) and stakeholders in the
development and implementation of theirlocal ICM
programmes.
The E O seeks to address environmental and socioeconomic
issues in a and integrated manner in order to promote
optimum resource utilization and comprehensive sustainable
coastal and marine development; and establishes support
mechanisms for its implementation.
An order that reorganized the Ministry of Labor and
Employment and created the Philippine O verseas Employment
Administration. The E O aimed to develop employment
opportunities,
promote industrial
peace.
An E O adopting protect
the SNAPworkers,
and itsand
18 priority
programs and
projects in order reduce economic losses from the adverse
impacts of climate variability including extreme events as
the country undergoes economic growth,
population increase and rapid urbanization. The E O mandates
all government agencies and G O CCs to institutionalize DRR in
their policies, plans, programs, and budgets; participate in
the 18 priority programs and projects; and cooperate with
national and international NGOs and the private sector
towards safer and more resilient communities; and encourages
LGUs to integrate DRR in their day-to-day operations and
planning. As the secretariat and executive arm of the
N ational Disaster Coordinating Council, the Office of Civil
Defense was designated to oversee implementation of SNAP.
A certification mechanism for non-school based learning
that is integrated into the countrys educational system
through the E O 330. This program is a comprehensive
educational assessment scheme at the tertiary level which
recognizes, accredits and gives equivalency to the
knowledge, skills, attitudes and values gained by
individuals from relevant work experiences, high-level nonformal training and informal experiences parallelGlossary
to those
obtained from the formal system leading to an award of a
degree. In essence, it is an alternative learning system in
293
Exports
Covers all goods and services in which ownership has been

transferred from Philippine residents to non-residents
through sales, grants, gifts, and donations (BOPbased).
Exports of
Goods
Refers to all goods leaving the country, which are properly

cleared through the customs (Customs-based).
Extension Services
The provision of training, information, and support services

by the government and non-government organizations to the
agriculture and fisheries sectors to improve the technical,
business, and social capabilities of farmers and fisherfolk (RA
8435).
External Debt
External Debt Service

Ratios
Extractive Industries
Transparency
Initiative
Farm-to-Market
Roads
Feed-in
Tariff
Feedstock
Financial Account
Financial Inclusion
Financial Sector Forum (FSF)
Financial Stability
Coordinating
Council (FSCC)
Covers all short-term and medium-term obligations of the

BSP, domestic commercial banks, public and private sectors
payable to non-residents. Short- term external debt
obligations are those with maturities of one year or less,
while medium- and long-term external debt consists of
foreign borrowings with maturities of more than one year.
Refers to the ratio of debt service payments to export
earnings, GNI, G D P.
A tripartite initiative between government, civil society and
business to ensure greater transparency in revenues from
extractive industries, specifically through the publication
of a report that compares government and industry figures in
government revenues in mining, oil and gas. This publication
is verified by an independent and internationally accredited
auditor.
Roads linking the agriculture and fisheries production
sites, coastal landing points and post-harvest
facilities to the market and arterial roads and
highways.
A policy mechanism that involves the obligation on the part
of electric power industry participants to source electricity
from renewable energy generation at a guaranteed fixed rate
per kilowatt hour for renewable energy generation for a given
period of time.
O rganic sources such as molasses, sugarcane, cassava,
coconut, jatropha, sweet sorghum or other biomass used in
the production of biofuels.
An account that records transactions involving financial
assets and liabilities between residents and non-residents.
A state wherein there is effective access to a wide range of
financial services for all.
A voluntary interagency body between the heads of BSP,
SEC, IC and PDIC.
It principally provides for an institutionalized
framework for coordinating the supervision and regulation
of the financial system, for strengthening the exchange
of information among the different regulators
and for the promotion of better consumer protection.
294
A voluntary interagency council whose key objective is to

identify, manage and mitigate the build-up of systemic risks.
It was launched by the Insurance Commission, D epartment of
Fiscal Deficit
Refers to a shortfall or deficiency of revenues over

the expenditures of the government.
Fiscal
Policy
The part of government policy which is concerned with

the raising of resources through taxation and borrowing
and deciding on the level and pattern of expenditures.
Fiscal Responsibility
Bill (FRB)
A proposed bill which aims to strengthen fiscal discipline

in the public sector by prescribing principles of
responsible fiscal management, establishing control
mechanisms on spending, and adopting preventive measures
against the erosion of the tax base of the government.
Fiscal
space
Fixed Telephone
Line
Food
security
Foreign Direct
Investment
Refers to the difference of projected obligations ceilings

(after considering projected revenues and deficit
targets) and forward estimates of the cost of ongoing
programs of the government. This provides for available
funding which the government could use for its priority
programs.
Voice telephony via land line telephone service. It is a
physical line connecting the subscriber to the telephone
exchange. Typically, fixed-line network is used to refer to
the traditional phone system or the Public Switched
Telephone N etwork (PSTN), to distinguish it from mobile
networks.
A condition wherein all people, at all times, have physical
and economic access to sufficient, safe and nutritious food
that meets their dietary needs and food preferences for an
active and healthy life (FAO , 2002).
Forward Estimates
(FEs)
Defined as an international investment by a resident entity

in one economy (direct investor) in an enterprise resident
in another economy (direct investment enterprise ) made
with the objective of obtaining a lasting interest. The
lasting interest implies the existence of long-term
relationship between the direct investor and the enterprise
and a significant degree of influence on the management of
the enterprise. This lasting interest is generally indicated
by ownership of at least 10 percent of the ordinary shares or
voting power (for incorporated enterprise) or the equivalent
(for an unincorporated enterprise). FDI covers equity
capital, reinvested earnings and other capital (i.e. intercompany loans).
Fossil fuels
Defined as the price of one unit of foreign currency (usually

in US$) expressed in terms of the domestic currency.
Foreign Exchange
Rate
Forward and
backward linkages
Franchise
area
Refers to the channels through which products, materials,

information, and money flow from suppliers to the firms
(backward) and from suppliers to customers (forward).
Backward and forward linkages are also descriptive
measures of the economic interdependence of industries.
Projections or estimations of future costs of existing
policies. It also serves as the validation instruments for
the reasonableness of agency proposals on existing
programs, projects, and activities.
Glossary
Fuels formed by natural resources such as anaerobic
decomposition of buried dead organisms. The age of the
295
Full Disclosure Policy

(FDP)
Functional
Literacy (new
definition)
Functional
Literacy (old
definition)
Fund transfer
system
General Fertility Rate
Geothermal Energy
Systems Geothermal
Resources
Enables the public to view, download, and print local

government units (LGUs) financial documents to allow their
constituents to understand how their local governments
budget and spend for public services. The FDP mandates
LGUs to post plans, budgets, and full utilization reports
in a designated web portal, print media, and in conspicuous
places. It also obliges provinces, cities, and
municipalities (PCMs) share their financial documents with
their constituents.
A range of skills and competencies cognitive, affective
and behavioral which enables individuals to: (a) live
and work as human beings; (b) develop their potentials; (c)
make critical and informed decisions; (d) function
effectively in society within the context of their
environment and that of the wider community (local,
regional, national, global) in order to improve the quality
of their life and that of society.
A significantly higher level of literacy which includes not
only reading and writing skills but also numerical skills.
The skills must be sufficiently advanced to enable the
individual to participate fully and efficiently in activities
commonly occurring in her/his life situation that require a
reasonable capability of communicating by written language.
A formal arrangement based on a private contract or
legislation, with multiple membership, common rules and
standardised arrangements, for the transmission, clearing,
netting and/or settlement of monetary obligations arising
between its members.
The number of live births per 1,000 women aged 15-49 in a
given year. Machines or other equipment that convert
Gini ratio (Gini

coefficient)
Global Competitiveness
Global
Warming
Government
Effectiveness
296
geothermal energy into useful power.

Mineral resources, classified as renewable energy resource,
in the form of: (a) all products of geothermal processes,
including indigenous steam, hot water, and hot brines; (b)
steam and other gases, hot water, and hot brines resulting
from water, gas, or other fluids artificially introduced into
geothermal formations; (c) heat or associated energy found
in geothermal formations; and
(d) any by-product derived from them.
A concentration ratio which is used to measure inequality
in income distribution. It takes values from zero (0),
representing complete equality of income distribution, to
one (1), representing complete inequality. Thus, the
higher the value of the coefficient, the more unequal is
the distribution of income among families within a given
area under study. Also known as Gini concentration ratio.
An index that measures the set of institutions, policies

and Index (GCI) factors that make a nation remain
productive over the longer term while ensuring social
and environmental sustainability.
An increase in the average temperature of the earths nearsurface air and oceans that is associated with the increased
Government Human
Resource Information
System (GHRIS)
-National Payroll System
(NPS)
An integrated system encompassing the full cycle of human

from recruitment and hiring to retirement initially
focusing on an NPS that will remove ghost employees in the
government payroll, as well as ensure the timely payment of
government employees insurance premiums.
Government
Integrated Financial
Management
Information System
(GIFMIS)
Government of the
An integrated information technology (IT ) solution that

will improve efficiency in the use of public resources
through real-time online accounting, monitoring and
control of public funds, an improved cash management
system, and a more systematic recording of all real and
contingent liabilities of government.
Republic of the Philippines

Grassroots Participatory
Budgeting Process
(GPBP) formerly BottomUp Budgeting (BUB)
Green ICT
Greenhouse gases (GHG)
Grid
Gross Domestic
Product (GDP)
Gross Enrolment Rate

(GER)
Gross International
Reserves (GIR)
Gross National
Product (GNP)
The official title of the Philippine government.

The enhancement of budget and planning process to involve
grassroots organizations and local government units (LGUs)
in the identification of priority poverty reduction
projects that will be funded by national government agencies
(NGAs).
An approach to ensuring environmental sustainability of
ICTs in businesses and organizations. This involves
reducing carbon emissions and improving energy efficiency
of ICT systems, as well as promoting use of less harmful
materials and encouraging recycling and appropriate
disposal of ICT equipment and peripherals.
Atmospheric gases that contribute to the greenhouse effect
including, but not limited to, carbon dioxide, methane,
nitrous oxide, hydrofluorocarbons, perfluorocarbons and
sulfur hexafluoride.
The high voltage backbone system of interconnected
transmission lines, substations and related facilities.
Refers to the value of all goods and services produced
domestically. It is the sum of gross value added of all
resident institutional units engaged in production (plus any
taxes, and minus any subsidies, on products not included in
the values of their outputs).
The total enrolment in a given level of education,
regardless of age, as a percentage of population which,
according to national regulations, should be enrolled at
this level.
Refer to foreign assets that are readily available to and
controlled by the BSP for direct financing of payment
imbalances and for managing the magnitude of such imbalances,
G IR consists of holdings of gold, special drawing rights,
foreign investments, and foreign exchange, including Reserve
Position in the International Monetary Fund.
A measure of the countrys output of final goods and
services. It is equivalent to the Gross Domestic Product
adjusted with the net factor income from the rest of the
world. It refers to the aggregate earnings of the factors of
production (nationals) plus indirect taxes (net) Glossary
and capital
consumption allowance.
GN P is also defined as the total value of income earned
2 97
Gross Regional
Domestic Product
(GRDP)
Gross valueadded
Hazardous
Substances
Hazardous
Wastes
Headline Inflation
Health Care
Waste
Reflects the aggregate gross value added of all productive

sectors of a region during an accounting period. Addition
of the GRD P of all regions will yield the G ross Domestic
Product (GDP) at the national level.
Refers to the total payment to factors of production,
namely: wages, interest, profits and rents. It also
includes capital consumption allowance and indirect taxes.
It is estimated by deducting from gross value of output the
sum of non-factor cost such as raw materials and supplies,
containers and packing materials, fuel, advertising and
other non-industrial overhead cost.
Substances which present either: (a) short-term acute
hazards, such as acute toxicity by ingestion, inhalation or
skin absorption, corrosivity or other
skin or eye contact hazard or the risk of fire or explosion;
or (b) long-term environmental hazards, including chronic
toxicity upon repeated exposure, carcinogenicity (which may
in some cases result from acute exposure but with a long
latent period), resistance to detoxification process such as
biodegradation, the potential to pollute underground or
surface waters, or aesthetically objectionable properties such
as offensive odors.
Used or discarded substances or materials that are without any
safe commercial, industrial, agricultural or economic uses,
and which pose substantial or potential threats to public
health and/or the environment. In past incidents, hazardous
wastes have been shipped, transported or brought from their
country of origin for dumping or disposal into or in transit
through any part of the territory of the Philippines.
This measures the year-on-year change in the prices of a
specified basket of goods and services in the CPI, including
goods and services with volatile price movements such as food
and energy items.
Higher Education (HE)
High-value
crops
Household
The stage of formal education requiring secondary

education covering the programs on all courses of study
leading to bachelors degree and all degree courses of
study beyond bachelors degree level.
2 011-2016 MIDTERM
UPDATE
N on-traditional
agricultural
and horticultural commodities
that include coffee, cacao, fruits, root crops, vegetables,
spices and condiments, cutflowers, and ornamental plants.
Housing loan ceiling
298
Infectious wastes from hospitals such as equipment,

instruments, utensils, and fomites of a disposable nature
from patients who are suspected to have or have been
diagnosed as having communicable diseases and must
therefore be isolated as required by public health agencies,
laboratory wastes such as pathological specimens (i.e., all
tissues, specimens of blood elements, excreta, and
secretions obtained from patients or laboratory animals),
and disposable fomites that may harbor or transmit
pathogenic organisms, and surgical
operating room pathologic specimens and disposable fomites
attendant thereto, and similar disposable materials from
outpatient areas and emergency rooms.
Housing Unit
A building or structure that is a dwelling or place for

habitation by human beings.
Human Capital
Productive wealth embodied in labour, skills and

knowledge.
Human Development
Index (HDI)
Hydropower Resources
Measures quality of life or wellbeing in terms of health,

education
and income.
Water
resources
found technically feasible for
development of hydropower projects.
Hydropower
Systems
Import
Cover
Imports
Imports of
Goods
Inclusive Finance
Inclusive
growth
Income gap
Income Poor
Independent Power
Producer Indicative Power
Projects
Indigenous Community
Conserved Areas
(ICCAs)
Indigenous Energy
Indigenous People
(IP)/ Indigenous
Cultural Communities
(ICC)
Water-based energy systems which produce electricity by

utilizing the kinetic energy of falling or running water to
turn a turbine generator.
Refers to the number of months of imports of goods and
services that can be financed by reserves, measured as the
ratio of total imports to the G IR.
These cover all goods in which ownership has been transferred
from non- residents to Philippine residents through
purchase, grants, gifts, and donations (BOP-based).
These refer to all goods entering any of the seaports or
airports of entry of the Philippines properly cleared
through customs or remaining or under customs control
(Customsbased).
Greater access to financial services and further
deepening of the financial system towards sustainable
growth and stability.
Usually referred as growth for all. For economic growth
to be inclusive it has
to be rapid enough to matter, given the countrys large
population, geographical differences, and social complexity
and sustained. It should create massive quality of jobs, draws
the vast majority into the economic and social mainstream,
and continuously reduces mass poverty. The idea of equality
of opportunity is emphasized in terms of access to
markets, resources, and unbiased regulatory environment
for businesses and individuals.
The average income shortfall expressed as a proportion to
the poverty line of families with income below the poverty
threshold.
Families or individuals whose incomes fall below the
designated poverty threshold; captures the specific
poverty dimension of income deprivation.
An existing power generating entity which is not owned
by NPC.
Power projects with no definite funding and have not yet
complied with the necessary clearances.
Geographic locations that cover the significant biodiversity,
ecological services, and cultural values voluntarily conserved
by indigenous communities, primarily for their subsistence
and other cultural purposes.
Refers to all energy forms produced or sourced from
Glossary
within a countrys natural resources.
A group of people or homogenous societies identified by
299
Inelastic
supply
Inequality
A market characteristic or situation where any increase or

decrease in the price of a good or service does not result in
a corresponding increase or decrease in its supply.
Infant mortality rate

(IMR)
Income inequality; measure of the distribution of

income and material resources across society.
Inflation
The number of deaths among children below one year old per
1,000 live births at a specified period of time.
Inflation Rates
Informal
settlers
Informal waste
sector
Information and
Communications
Technology (ICT)
INFRACOM
Sub-Committee on Water
(SCWR)
300
culture, become historically differentiated from the majority

of Filipinos. IPs shall likewise include peoples who are
regarded as indigenous on account of their descent from the
populations which inhabited the country, at the time of
conquest or colonization, or at the time of inroads of nonindigenous religions and cultures, or the establishment of
present state boundaries, who retain some or all of their own
social, economic, cultural and political institutions, but
who may have been displaced from their traditional domains or
who may have resettled outside their ancestral domains.
Refers to the rate or the year-on-year percentage change

in overall prices as measured by the Consumer Price Index
(CPI).
The annual rate or percentage change or the year-onyear change in the Consumer Price Index (CPI). It
indicates how quickly or slowly the CPI increases or
decreases.
Occupants of public or private lands without any legal
entitlement or authority to said lands.
Individuals or groups involved in extraction of recyclable
and reusable materials from mixed waste, i.e., scavengers and
waste pickers.
An umbrella term that covers all technical means for
processing and communicating information. It defines a broad
range of technologies, including methods for communication
(communication protocols, transmission techniques,
communications equipment, media communication), as well as
techniques for storing and processing information (computing,
data storage, etc.)
An interagency committee for the Water Resources Sector

established through N EDA Board Committee on Infrastructure
(INFRACOM) Resolution No. 2, Series of 2008. It is composed
of representatives from key national government agencies,
Innovation
leagues of cities and municipalities, academe and civil
society. Its functions include, among others: (a) ensuring
that sector plans are carried out;
(b)coordinating the conduct of sector monitoring and periodic
assessments;
(c)coordinating the undertaking of studies, researches and
analyses in order to propose subsequent policy
recommendations for the sector; (d) formulating
areas of cooperation within the sector; (e) clearing sector
2 011-2016 MIDTERMand
UPDATE
data/information;
(f ) serving as a platform for
discussion and resolution of issues in the sector.
Installed/rated
capacity
Integrated Forest
Management
Agreement (IFMA)
Integrated River
Basin Management
(IRBM)
Integrated Water
Resources Management
(IWRM)
Interconnection
Interim Mindanao
Electricity
Power Market (IMEM)
International
Budget Partnership
(IBP)
International
Convention on the
Elimination of
All Forms of
Racial
Discrimination
Investment climate
Investment-to-GDP
ratio
The maximum capacity of an equipment or facility such as

a power plant for which it is designed by the
manufacturer. It is usually expressed in megawatts
(MW ).
A production-sharing contract entered into by and between
the D ENR and a qualified applicant wherein the D ENR grants
to the latter the exclusive right to develop, manage,
protect and utilize a specified area of forestland and
forest resource therein for a period of 25 years and may be
renewed for another 25 year period, consistent with the
principle of sustainable development and in accordance with
an approved Comprehensive Development and Management Plan,
and under which both parties share in its produce.
The process of coordinating conservation, management and
development of water, land and related resources across
sectors within a given river basin, in order to maximize
the economic and social benefits derived from water
resources in an equitable manner while preserving and, when
necessary, restoring freshwater ecosystems. (Adapted from
Integrated Water Resources Management, Global Water
Partnership Technical Advisory Committee Background
Papers, N o. 4, 2000)
A framework which promotes the coordinated development and
management of water, land and related resources in order to
maximize the resultant economic and social welfare in an
equitable manner without compromising the sustainability of
vital ecosystems.
The physical connection of telephone networks owned by two
different operators. N etwork operators typically charge per
minute fees for use of their network by other network
operators.
An interim wholesale market for the trading of electricity
in the Mindanao System intended to facilitate the
transparent and efficient utilization of all available
capacities in Mindanao in order to minimize the perennial
power shortages in the region.
An international non-government organization (NGO) that
collaborates with civil society organizations (CSOs) around
the world to analyze and influence public budgets in order
to reduce poverty. The organization ensures that government
budgets are more responsive to the needs of poor and lowincome people and accordingly, to make budget systems more
transparent and accountable to the public.
United N ations convention adopted and opened for signature
and ratification by the United N ations General Assembly on
December 21, 1965, and entered into force on January 4,
1969. It defines and condemns racial discrimination and
commits States to change national laws and policies which
create or perpetuate racial discrimination.
Refers to the overall policy, institutional, and Glossary
behavioral
environment affecting business and investment decisions. It
is determined by several factors such as macro-economic
301
Irrigation Service Fees

(ISF)
A means to generate revenues to cover the operations

and maintenance (O&M) costs of irrigation facilities.
Joint
Venture
An arrangement whereby a private sector entity or a group of

private sector entities on one hand, and a Government Entity
or a group of Government Entities on the other hand,
contribute money/capital, services, assets (including
equipment, land, intellectual property or anything of value),
or a combination of any or all of the foregoing to undertake
an investment activity. The investment activity shall be for
the purpose of accomplishing a specific goal with the end view
of facilitating private sector initiative in a particular
industry or sector, and eventually transfer the activity to
either the private sector
under competitive market conditions or to the government.
The JV involves a community or pooling of interests in the
performance of the investment
activity, and each party shall have the right to direct and
govern the policies in connection therewith with the
intention to share both profits and, risks and losses
subject to agreement by the parties. A JV may be a
Contractual JV or a Corporate JV ( JV Company).
Judiciary Case
Management System
( JCMS)
Justice Sector
( JSCC)
K to 12
Program
Kapit-bisig Laban sa
KahirapanComprehensive and
Integrated Delivery of
Social Services (KALAHI
-CIDSS)
Kilowatt-hour (kWh)
Labor
Force
Labor Market
Programs
Ladderized
Education
302
A management system of the Supreme Court and one of the

Judiciarys reform projects aimed at declogging congested
dockets and helping solve delays in case management and
resolution through the use of information technology.
An inter-agency body composed of senior representatives
from the Judiciary, the of Justice (D OJ), the Department of
the Interior and L ocal Government (DILG), and their
relevant attached agencies, which serves as a joint forum
for dialogue on issues of common interest and mechanism for
effective coordination and sharing of information for
planning and implementation of joint initiatives.
The K to 12 Program covers Kindergarten and 12 years of
basic education (six years of primary education, four years
of Junior High School, and two years of Senior High School
[SHS]) to provide sufficient time for mastery of
skills,
develop to
lifelong
learners,
Aconcepts
unit ofand
energy
equivalent
one kilowatt
(kW and
) ofprepare
power
graduatesfor
forone
tertiary
middle-level skills
expended
hour ofeducation,
time.
development, employment, and entrepreneurship.
Refers to the population 15 years old and over who are
Aeither
program
for implementing
small-scale projects by barangays
employed
or unemployed.
following their own plans, priorities, and processes, with
Measures aimed at enhancing employment opportunities and
funding support and in-kind support from the national and
protection of the rights and welfare of workers. Employment
local governments.
enhancing measures include
trade policies and skills development and training. Labor
protection includes compliance with labor standards such as
minimum wages or health and safety in the workplace.
A new system of education in the Philippines that allows
learners to progress between T VET and college, and viceversa.
Large-Value payment
systems
Lateral
Attrition
Level I Water Supply

System (point source)
Level II Water Supply

System (communal faucet
system
or standpost)
Level III Water Supply
System (waterworks system or
individual household
connections)
LGU Income Reclassification System Bill
Local Exchange Carrier

Low-Cost housing
A system for the clearing and settlement of very large

transactions, mainly between banks or participants in
financial markets.
Refers to the transfer in posts and/or separation from
government service of internal revenue and customs
officers, as well as collection officers of other revenuegenerating units, who do not meet their respective
revenue or collection goals for the year with all due
considerations being taken, in accordance with civil
service rules and regulations.
A protected well or developed spring system without a
distribution system, generally adaptable for rural areas
where the houses are thinly scattered. A L evel I facility
normally serves an average of 15 households. (NEDA Board
Resolution N o. 12 Series of 1995).
A system composed of a source, reservoir, distribution
system and communal faucets. Usually, one faucet serves 4
to 6 households. Generally suitable for rural and urban
fringe areas where houses are clustered densely to justify a
simple piped-system (NEDA Board Resolution N o. 12 Series of
A1995).
legislative proposal that seeks to establish updated,
rationalized and transparent processes for the income reAclassification
system composed
of a source,
reservoir,
piped distribution
of provinces,
cities
and municipalities
by
system
and
household
taps.
It
is
generally
fortodensely
amending E O 249, issued on July 25, 1987. suited
It seeks
populated
areas of
(NEDA
BoardtoResolution
12 Series
empower theurban
Secretary
Finance
review andN o.
revise
the
of
1995).
income ranges for the different income classes of provinces,
cities and municipalities
at least once every four (4)
years to conform to prevailing economic conditions and
over-all financial status of LGUs.
Magnitude of Poor
The regulatory term in telecommunications for the local
Families
telephone company. Housing units that are priced from PhP
Magnitude of Poor
Population
450,000 to PhP 3,000,000.
Maintenance and Other

Operating Expenses
(MOOE)
Managing for Development
Results
Marine-Protected
Areas (MPAs)
The number of families whose income cannot provide for their

basic food and non-food requirements.
The number of individuals whose income cannot provide for
their basic food and non-food requirements.
Expenditures to support the operations of government
agencies such as expenses for supplies and materials;
transportation and travel; utilities (water, power, etc)
and repairs, etc.
A management strategy that focuses on development
performance and on sustainable improvements in country
outcomes. It provides a framework for development
effectiveness in which performance information is used to
improve decision making. It also includes practical tools for
strategic planning, risk management, progress monitoring, and
outcome evaluation (O ECD Policy Brief, March 2009).
Portions of coasts, seas, and oceans with unique
physical and biological significance, and which are
managed to enhance biological diversity and protect
Glossary
against destructive human exploitation. (BFAR, 2010)
3 03
Market Capitalization
Market
Turnover
Materials Recovery
Facility
A number of shares of stocks sold on the market during a

given period of time. Generally, it is the trading volume
numerated against the outstanding volume of stocks in the
bourse.
Maternal mortality
ratio (MMR)
A facility designed to receive, sort, process, and store

compostable and recyclable materials efficiently and in
an environmentally sound manner. It includes solid waste
transfer station or sorting station, drop-off center, a
composting facility, and a recycling facility.
Medical tourism
The number of women who die from any cause related to or

aggravated by pregnancy or its management (excluding
accidental or incidental causes) during pregnancy and
childbirth or within 42 days of termination of pregnancy,
irrespective of the duration and site of the pregnancy, per
100,000 livebirths.
Medium-Term
Expenditure Framework
(MTEF)
Medium-Term
Information and
Communication
Technology
Harmonization
Initiative (MITHI)
Metrology
The concept of travelling to a particular destination for

health care services. These services are offered by countries
with qualified and experienced health care professionals
working in some of the highly technologically advanced
facilities in the world. These medical travels may include
holiday amenities like hotel or resort accommodation,
chauffered city travel, and a bilingual personal assistant to
guide and make a client feel secure and to arrange any other
requirements he or she may need aside from medical needs.
A planning and budgeting framework of the government
which provides a medium term three-year perspective to
decision making processes during budget preparation.
An electronic-government and information and communication

technology (ICT ) support initiative that aims to harmonize
and ensure interoperability among ICT-related resources,
programs, and projects in all national government agencies
(NGAs),as well as address the gaps in computer network and
broadband connectivity within government.
Category
Asset Size*
No. of
The field of science concerned with weights andemployees**
measures which
includes
all
aspects
of
measurement
in
whatever
level of
Micro
not more than P3,000,000
1-9
accuracy
and
in
any
field
of
science
and
technology.
Small
P3,000,001 - P 15,000,000
10-99
Medium
P15,000,000
- P100,000,000
Any
business activity
or enterprise
engaged in 100-199
industry,
*Based on Republic Act No. 9501
agribusiness, or services; whether single proprietorship,
**Based on MSME Development Plan 2011cooperative,
partnership, or corporation; whose total assets,
22016
inclusive of those arising from loans but exclusive of the
land on which the particular business entitys office, plant
MIDTERM
UPDATE
and2 011-2016
equipment
are situated,
must have value falling under the
following categories:
Micro, Small and

Medium Enterprises
(MSMEs)
304
Refers to the total market value of all of a companys

outstanding shares.
It is calculated by multiplying a companys shares
outstanding by the current market price of one share. The
investment community uses this figure to determining a
companys size as opposed to sales or total asset figures.
It is created by pooling the contributions of cooperatives
and NGOs, the local governments units (LGUs) and partner
institutions.
Missionary
Electrification
Mitigation (Climate
change)
Monetary
Policy
Most-at-risk population
(MARP)
Multidimensional
Poverty Index (MPI)
Mutual Funds
National
Convergence
Initiative
National Framework
Strategy on Climate
Change
National Integrated
Protected Areas
Systems (NIPAS)
National Irrigation
System
National Justice
Information System (NJIS)
The provision of basic electricity service in unviable

areas with the aim of bringing the operations in these
areas to viability levels.
Refers to efforts and interventions to reduce or
prevent the emission of greenhouse gases and ozonedepleting substances.
The part of economic policy which regulates the level of
money or liquidity in the economy to achieved desired policy
objectives, such as inflation control, improvement of the
BOP or growth of the economy.
Refers to groups that are at higher risk of being infected
or affected by H IV. This includes female sex workers
(FSW ), clients of female sex workers, injecting users
(ID U), and males who have sex with males (MSM).
An indicator of poverty that recognizes that poverty is
the state of being deprived of goods and services
necessary for basic functioning. This is manifested in
several dimensions: lack of education, insufficient
nutrition and poor health, inadequate living standard
(e.g. no access to clean water and sanitation,
facilities, electricity, poor quality of housing, etc),
lack of
income, social exclusion, disempowerment, unstable and poor
quality of work/ employment, and threat of violence.
Funds (open or closed) of individual and institutional
investors that are pooled to form a massive asset base. The
assets are then entrusted to a full time professional fund
manager who develops and maintains a diversified
portfolio of security investments. Investors of a mutual
fund are the owners or shareholders. Their investments
provide the money for a mutual fund to buy securities such
as stocks and bonds. Mutual funds profit from security
investments either through dividends and interests to the
fund or increase in fund value.
A multisectoral and integrated planning approach adopted by
the DA, DAR, and the D ENR towards more efficient use of
resources.
A framework strategy of the Philippines that serves as basis
for a program for climate change planning, research and
development, extension, and monitoring of activities to
protect vulnerable communities from the adverse effects of
climate change. It seeks to build the adaptive capacity of
communities in
the country, increase the resilience of natural ecosystems to
climate change, and optimize the countrys mitigation
opportunities towards sustainable development. It highlights
the critical aspect of Climate Change adaptation, which will
be applied to all levels of governancefrom city to
municipal down to the barangay level.
The classification and administration of all designated
Glossary
protected areas to maintain essential ecological processes
and life-support systems, to preserve genetic diversity, to
ensure sustainable use of resources found therein, and to
305
National Transport
Policy (NTP)
Nationwide
Operational
Assessment of Hazards
(NOAH)
A long-term comprehensive policy which shall guide all

elements of the transportation system and all sub-sectors of
transportation, including passengers, shippers, service
providers, agencies and instrumentalities of government and
those involved in the movement of people and goods and in
the provision of transportation infrastructure, facilities
and services. The N T P shall cover the areas of: (a) Resource
Generation and Allocation; (b) Criteria for the Preparation
of Agency P lans, Programs and Projects; (c) Cost Recovery and
Subsidies; (d) Regulation of Passenger Transport Services;
(e) Urban Transport; (f ) Transport Logistics; and (g)
Governance, in all their decisionmaking, undertakings, and
transactions.
Natural
gas
A responsive program of the government for disaster

prevention and mitigation. It aims for the Philippines
warning agencies to provide a six (6) hour lead-time
warning to vulnerable communities against impending floods
and to use advanced technology to enhance current geohazard vulnerability maps.
Net Enrolment Rate

(NER) or Participation
Rate
Net Foreign
A gas consisting primarily of methane, typically with 0 to 20

percent higher hydrocarbons (primarily ethane). It is found
in coal beds associated with other hydrocarbon fuels, as
methane clathrates, and is an important fuel source and a
major feedstock for fertilizers.
Transaction Net Intake

Rate (NIR)
Net Lending
Network
NG Deficit
Non-Tax
Revenues
The ratio of the enrolment for the age group corresponding

to the official school age in the elementary/secondary level
to the population of the same age group in a given year.
The net change in the ownership of foreign assets.
The percentage of the population at the official
elementary school-entrance age (defined as 6 years old per
DepEd O rder N o. 65, s. 1994) who are new entrants in the
first grade of elementary education, and who are of the
same age (IAC ES).
Advances by the N G for the servicing of governmentguaranteed corporate debt during the year; net of
repayments on such advances. Includes loan outlays or
proceeds from program loans relent to government
corporations.
A combination of telecommunications resources, for
example, exchanges, wire links (copper cable, optical
fiber) and terrestrial or satellite radio transmission
links.
Nuclear
wastes
A shortfall/deficiency of revenues over expenditures of

the National Government.
Off-Grid
Areas
306
Revenues collected from sources other than compulsory tax

levies. Includes those collected in exchange for direct
services rendered by government agencies to the public, or
those arising from the governments regulatory and
investment activities.
Hazardous
made
radioactive by exposure to the
2 011-2016 wastes
MIDTERM
UPDATE
radiation incidental to the production or utilization of

nuclear fuels, but does not include
Open access
Electrical systems composed of interconnected transmission

lines, distribution lines, substations, and related
facilities for the purpose of conveyance of bulk power to the
grid.
Open Budget Index

(OBI)
The system of allowing any qualified person the use of

transmission, and/or distribution system, and associated
facilities subject to the payment of transmission and/or
distribution retail wheeling rates duly approved by the
Energy Regulatory Commission (ERC).
On-System
Organic
Agriculture
Organizational
Performance Indicator
System (OPIF)
Outstanding Public Sector
Debt
Over-the- Counter
Derivative
Exchange
Over-urbanization
Pantawid Pamilyang
Pilipino Program (4Ps
program)
Paper on Budget
Strategy
Payapa at
Masaganang
Pamayanan Program
PAYG
O
A countrys score according to the clarity, scope and

availability of documents on public spending. A countrys
tendency to encourage or avoid wasteful and corrupt use of
public funds.
Includes all agricultural systems that promote the
ecologically sound,
socially acceptable, economically viable and technically
feasible production of food and fibers. O rganic agriculture
dramatically reduces external inputs by refraining from the
use of chemical fertilizers, pesticides and pharmaceuticals.
It also covers areas such as, but not limited to, soil
fertility management, varietal breeding and selection under
chemical and pesticide-free conditions, the use of
biotechnology and other cultural practices that are
consistent with the principles and policies of RA 10068, and
enhance productivity without destroying the soil and harming
farmers, consumers and the environment as defined by the
International Federation of O rganic Agriculture M ovement
(IFOAM): Provided, that the biotechnology herein referred
to shall not include genetically modified organisms or GMO s
(RA10068).
An approach to expenditure management that directs resources
towards results or major final outputs and measures agency
performance by key quality and quantity indicators.
The combined debt of the NG, the government owned and
controlled corporations (GO CCs), the social security
institutions (GSIS, SSS, PH IC), the local government units
(LGUs) and the Bangko Sentral ng Pilipinas (BSP).
A security traded in some context other than on a formal
exchange such as Philippine Stock Exchange. The phrase
over-the-counter can be used to refer to stocks that
trade via a dealer network as opposed to on a centralized
exchange. It also refers to debt securities and other
financial instruments such as derivatives, which are traded
through a dealer network.
A term used in relation to cities in the developing world
which have been deemed to be too large in relation to
their countrys industrial base.
The Philippines conditional cash transfer (CC T ) program,
which provides direct cash transfers to the poor on condition
that (a) their children continue to attend school and (b)
Glossary
the family makes use of preventive health care and
nutrition
services.
This will link budget allocation with the national agenda of
30 7
Payment for
Environmental Services
(PES)
Payment
Systems
Penetratio
n
Peoples
Budget
Peoples Survival Fund
(PSF)
Per Capita
Per capita
income
Percentile
Rank
Performance
Challenge Fund (PCF)
Performance
Enhancement Incentive
(PEI)
Performance-Based
Bonus (PBB)
308
corresponding increase in tax and/or revenue or a cut in

spending in other items in the budget over a specified
time period.
A compensation involving cash that is linked directly to
the provision of environmental services. This is a mechanism
to improve the provision of indirect environmental services,
which the provider gets paid for doing so (provider-gets)
and the beneficiaries pay for getting the services (userpays). Payment for environmental goods and services may
include: watershed protection from upland forest,
biodiversity of forest and coastal resources, carbon
sequestration of forest and landscape/scenic beauty of the
countrys natural resources. O ther forms of PES include:
purchase of land critical to habitat preservation,
biodiversity conservation, important ecological function;
and tax relief to owners who will maintain the desired land
uses.
Refers to the set of instruments, banking procedures and
interbank funds transfer systems which facilitate the
circulation of money in a country or currency area.
Often used synonymously with fund transfer system.
A measurement of access to telecommunications. It is usually
calculated by dividing the number of subscribers by the
population, and multiplying by 100. Also referred to as
density.
A publication that makes the national budget more accessible
to the public, both published in print and electronic form.
It is a less technical version of the national budget.
A special fund in the N ational Treasury, established under
Republic Act 10174 of 2012, for the financing of adaptation
programs and project based on the N ational Strategic
Framework and Program on Climate Change.
Estimates expressed as the ratio of a particular
transaction like GD P over total population.
O btained by dividing the total family income by the
total number of family members.
A method of determining the relative standing of an
individual in a population. For example, if a countrys
corruption index is at the 75th percentile, this means that
it performed better than 75% of all countries that were
evaluated for that index.
A financial subsidy given to local government units (LGUs)

that were awarded with the Seal of Good L ocal Governance
(SGLG) for projects that are aligned with national
government priorities, such as achieving the
Millennium Development Goals (MD Gs), improved solid
waste management, disaster risk reduction and
management (DRRM), and tourism and local economic
development.
An incentive/ bonus that is provided to employees across the
board, regardless of their actual performance. The amount
available for PEI bonuses will depend on savings incurred by
Performance-Based
Incentive System
(PBIS)
Persons with
Disability
be based on their actual performance at the end of the

year, as measured by verifiable, observable, credible, and
sustainable indicators of performance.
A system of incentives for government employees introduced
in 2012, per Executive O rder (EO) N o. 80. Under this
system, employees may receive two incentives: the
Performance-Based Bonus (PBB) and the Productivity
Enhancement Incentive (PEI).
Forum (PDF)
Those suffering from restriction of different abilities, as a

result of a mental, physical or sensory impairment, to
perform an activity in the manner or within the range
considered normal for a human being.
Philippine Quality
Award (PQA)
The primary mechanism of the government for facilitating

substantive policy dialogue among stakeholders on the
countrys development agenda. The Forum also serves as a
process for developing consensus and generating commitments
among different stakeholders toward critical actionable items
of the governments reform agenda.
Political Stability
Post -Harvest
Facilities
Post-trade
processing
Poverty
gap
Poverty
incidence
Poverty
Threshold
Powe
r
Primary Adjusted
NER
Privatizatio
n
A national award program that recognizes achievements of

public and private sector organizations in their efforts to
attain performance excellence.
Reflects perceptions of the likelihood that the government
will be destabilized or overthrown by unconstitutional or
violent means, including politically- motivated violence and
terrorism.
Facilities and equipment that handle the processing,
packaging, storage, and transportation of agricultural
products in order to reduce losses and increase market value.
Includes, but is not limited to, threshers, moisture meters,
dryers, weighing scales, milling equipment, fish ports, fish
landings, ice plants and cold storage facilities, processing
plants, warehouses, buying stations, market infrastructure
and transportation (RA 8435).
A process where the buyer and the seller compare trade
details, approve the transaction, change records of
ownership and arrange for the transfer of securities and
cash. Post-trade processing is especially important in
markets that are not standardized such as the over-thecounter (OT C) market.
The total income shortfall of families with income below the
poverty threshold, divided by the number of families.
The proportion of families/individuals with per capita
income/expenditure less than the per capita poverty
threshold to the total number of families/individuals.
The minimum income/expenditure required for a
family/individual to meet the basic food and non-food
requirements.
The rate at which work is performed or energy is converted.
It can be expressed in kilojoules per second (kJ/sec) or
Glossary
kilowatts (kW ).
The total number of children aged 6-11 years old who are
309
Productivit
y
Protected
area
Public Financial Management
Public Management
Development
Program (PMDP)
Public-Private
Partnership (PPP)
Purchasing power of the
peso
Rationalization of
Fiscal Incentives
Measures how efficiently production inputs, such as labor and

capital, are being used in an economy to produce a given
level of output. Productivity is considered a key source of
economic growth and competitiveness and, as such, is basic
statistical information for many international comparisons
and country performance assessments.
Identified portions of land and water set aside by reason
of their unique physical and biological significance,
managed to enhance biological diversity and protected
against destructive human exploitation.
Deals with all aspects of resource mobilization and
expenditure management in government. It is about the way
government raises its income (in the form
of taxes, customs duties and other revenues) and manages its
expenditures to deliver essential services to its citizens,
i.e., education, health care and other social programs, roads
and infrastructure, the rule of law and security, and those
areas which generally make the lives of citizens better off.
An intensive program that provides comprehensive and multimodal learning opportunities for public managers. It aims to
foster careerism in government and promote stability in the
bureaucracy by producing a corps of public managers that
embody competence, integrity and commitment.
A contractual arrangement between the government and the
private sector to deliver public infrastructure and/or
public services.
A measure of the real value of the peso in a given period
relative to a chosen reference period. It is computed by
getting the reciprocal of the C PI and multiplying the
result by 100.
Rationalization of the
Mining Fiscal Regime
Rationalization
Program
310
A F iscal Incentives Reform (FIR) initiative that seeks to

institute a strategic approach in the grant of tax
incentives that promotes competitiveness and, at the same
time, ensures cost-efficiency and fiscal sustainability. It
aims for a fiscal incentives system that is time-bound and
well-targeted to the most
responsive sector, thus, maximizing investments and their
beneficial spillovers and minimizing redundancies or
unnecessary costs to the government. It further aims to
promote transparency and rationalized responsibilities in
tax incentives administration.
Refers to the adoption of a fiscal regime framework for the

mining industry covering areas such as revenue sharing
arrangement, incentives and royalties, as well as the
Real Effective
allocation and utilization of mining revenues. Moreover,
Exchange Rate
the government wants to develop a system that will support
(REER)
its entry into the Extractive Industries Transparency
Initiative (EIT I), the internationally- accepted practice
which makes the payment and collection of all miningrelated fees and taxes paid by mining companies to
national
andMIDTERM
local government
units more transparent
2 011-2016
UPDATE
through standardized disclosures.
A move to transform the Executive Branch into a more
Real gross domestic

product
Real Per Capita GDP
Reasonable Water
Supply Access
Recyclable material
Reducing Emissions
from Deforestation and
Forest Degradation Plus
(REDD-plus)
Regulatory
capture
Regulatory
Quality
Remittances
currency, with another country within the index.

Essentially it refers to the N EER adjusted for inflation
differentials.
The total value of output, adjusted to inflation,
produced within the geographical boundaries of the
country regardless of the nationality of the entities
producing the output.
An approximation of the value of goods produced per person
in the country, equal to the countrys constant GD P
divided by the total number of people in the country.
Availability of at least 20 liters per day from a source
within 1 kilometer of the dwelling.
Any waste material retrieved from the waste stream and free
from contamination that can still be converted into suitable
beneficial use or for other purposes, including, but not
limited to, newspaper, ferrous scrap metal, non-ferrous scrap
metal, used oil, corrugated cardboard, aluminum, glass,
office paper, tin cans, plastics and other materials as may
be determined by the NSWMC.
A proposed incentive system for reducing G H G emissions.
Industrialized countries would provide financial incentive
for forested, developing countries to manage and protect
forests to reduce their G H G emissions and enhance carbon
stocks. It is performance-based, such that payments would
only be delivered if emissions were reliably reduced.
An economic situation in which state regulators serve
the interest of the industry or firms rather than the
interest of the public or society.
Reflects perceptions of the ability of the government
to formulate and implement sound policies and
regulations that permit and promote private sector
development.
Remunerative
Employment
Renewable Energy
Resources
Renewable
Portfolio Standards
(RPS)
Rent-seeking
Goods or financial instruments transferred by migrants

living and working abroad to the residents of the home
economies of the migrant. Personal remittances measure the
total amount of remittance flows into the country, including
cash and non-cash items that flow through both formal (via
electronic wire) and informal channels (such as money or
goods carried across borders) while cash remittances
represent those which are coursed through commercial banks,
offshore banking units, and foreign exchange corporations of
sea-based and land-based OFWs.
Refers to employment opportunities for which fair
compensation is provided; engagement in work for which the
working individual is being paid
Energy resources that do not have an upper limit on the
total quantity to
be used. Such resources are renewable on a regular basis and
the renewable rate is rapid enough to consider availability
over an indefinite time. These include, among others,
Glossary
biomass, solar, wind, hydro and ocean energy.
A policy mechanism which places an obligation to electric
31
1
Report Card Survey

(RCS)
Republic Act 10121

(Philippine Disaster Risk
Reduction and
Management Act of 2010)
Republic Act 10149 (GOCC

Governance Act of 2011)
Republic Act 10351

(Sin Tax Reform
Law)
Republic Act 10354
(Responsible Parenthood
and Reproductive Health
Act of 2012)
Republic Act 6657
(Comprehensive
Agrarian Reform Law of
1988)
Republic Act 6810
(Magna Carta for
Countryside and
Barangay Business
Enterprises/Kalakalan
20)
Republic Act 6969
(Toxic Substances
and Hazardous
Waste
Act of 1990)
312
Used to obtain feedback on how provisions in the Citizens

Charter are being followed and how the agency is
performing. The RCS shall also be used to obtain
information and/ or estimates of hidden costs incurred by
clients to access frontline services which may include, but
is not limited to, bribes and payment to fixers.
An act that seeks to strengthen the Philippine disaster risk
reduction and management system through the adoption of the
N ational Disaster Risk Reduction and Management Framework
(NDRRMF), and the National Disaster Risk Reduction and
Management Plan (NDRRMP). It further aims to recognize and
strengthen the capacity of the national government and the
local government units (LG Us), together with partner
stakeholders, to build the disaster resilience of
communities, and to institutionalize arrangements and
measures for reducing disaster risks, including projected
climate risks, and enhancing disaster preparedness and
response capabilities at all levels.
The law promotes financial viability and fiscal
discipline in government owned or controlled
corporations and strengthens the role of the state in
its governance and management to make them more
responsive to the needs of public interest. The
Governance Commission for GovernmentO wned and Controlled Corporations or the G CG was created
for purposes of its implementation.
An act restructuring the excise tax on alcohol and tobacco
products. Revenues from these products will support the
Refers
to Health
the lawCare
that(UHC)
established
comprehensive
Universal
Program the
of the
administration.
agrarian reform program (CARP) and provided the mechanism
An
for a national policy on responsible
for act
its providing
implementation.
parenthood and reproductive health. It mandates the
Agovernment
law that aims
to promote
growth ofnatural
countryside
and barangay
to promote
all effective
or modern
business
enterprises
by
minimizing
bureaucratic
restrictions
methods of family planning, which are safe and legal.
and granting incentives and other benefits. It exempts
countryside business enterprises from all national and local
taxes, license and building permit fees and other business
taxes, except real property and capital gains taxes, import
duties and other taxes on imported articles; and from any and
all government rules and regulations with respect to assets,
income, and other activities indispensably and directly
utilized in, proceeding from or connected with the business
of the enterprise.
An act to control toxic substances and hazardous and nuclear

wastes, providing penalties for violations thereof. It
regulates, restricts, or prohibits the importation,
manufacture, processing, sale, distribution, use and disposal
of chemical substances and mixtures that present unreasonable
risk and/or injury to health or the environment. It also
prohibits the entry, even in transit,
of hazardous and nuclear wastes and their disposal into the
Philippine territorial limits for whatever purpose; and
facilitates
researchUPDATE
and studies on toxic chemicals.
2 011-2016 MIDTERM
Republic Act 7160

(Local
Government Code
of 1991)
Republic Act 7586

(National Integrated
Protected Areas
System Act of 1992)
Republic Act 7718

(Build-OperateTransfer (BOT) Law)
Republic Act 7898
(AFP Modernization/
Development
Program)
Republic Act 8371
(Indigenous Peoples
Rights Act of 1997)
Republic Act 8435
(Agriculture and Fisheries
Modernization Act
(AFMA) of 1997)
Republic Act 8749
(Philippine Clean
Air Act of 1999)
Republic Act 9003

(Ecological Solid Waste
Management Act of
2000)
Republic Act 9136
(Electric Power
Reform
Act of 2001)
An act providing for a local government code which seeks to

promote genuine and meaningful local autonomy for territorial
and political subdivisions of the State to enable them to
attain their fullest development as self-reliant communities
and make them more effective partners in the attainment of
national goals. It provides a responsive and accountable
local government structure instituted through a system of
decentralization whereby local government units shall be
given more powers, authority, responsibilities,
and resources.
An act providing for the establishment and management of
national integrated protected protected areas system,
defining its scope and coverage, and for
other purposes. It encompasses outstanding remarkable areas
and biologically important public lands that are habitats
of rare and endangered species
of plants and animals, biogeographic zones and related
ecosystems, whether terrestrial, wetland or marine, all of
which shall be designated as protected areas.
An act amending certain sections of RA N o. 6957 (An act
authorizing the financing, construction, operation and
An
act which of
recognizes,
protects
and promotes
the rights of
maintenance
infrastructure
projects
by the private
indigenous
communities/indigenous
people, creating a
sector, and cultural
for other
purposes).
national commission of indigenous people, establishing
Aimplementing
comprehensive
modernization
of the AFP
primarily
for and
mechanism,
appropriating
funds
therefore,
defense
capability
with
support
mechanisms
for
national
for other purposes. The law restores the rights of indigenous
development.
peoples over their ancestral lands and ancestral domains.
An act modernizing the agriculture and fishing industries of
the Philippines. It mandated the prescription of urgent
related measures to modernize the agriculture and fisheries
sectors to enhance their profitability, and prepare said
sectors for the challenges of globalization through an
adequate, focused and rational delivery of necessary support
services.
An act providing for a comprehensive air pollution control
policy. It aims to protect and advance the right of the
people to a balanced and healthful ecology in accord with the
rhythm and harmony of nature. It seeks to promote and
protect the global environment to attain sustainable
development while recognizing the primary responsibility of
local government units to deal with environmental problems.
An act providing for an ecological solid waste management
program, creating the necessary institutional mechanisms and
incentives, declaring certain acts prohibited and providing
penalties. It reinforces the countrys drive towards a
healthier environment by providing a comprehensive solution
to the countrys solid waste problem.
An act that provides a framework for the restructuring of
the electric power industry, including the privatization of
the assets of N ational Power Industry Corporation, the
transition to the desired competitive structure, and the
definition of the responsibilities of the various Glossary
government
agencies and private entities.
313
Republic Act 9275

(Philippine Clean
Water Act of
2004)
An act providing for a comprehensive water quality

management. It aims to protect, preserve and revive the
quality of the countrys fresh, brackish and marine
waters.
Republic Act 9513

(Renewable
Energy Act of
2008)
An act that establishes the framework for the accelerated

development and advancement of renewable energy resources,
and the development of a strategic program to increase its
utilization.
Republic Act 9700

(Comprehensive Agrarian
Reform Program
Extension with Reforms
(CARPER))
An act that extended the acquisition and distribution of

agricultural lands through the CARP. RA 9700 also
amended certain provisions of the Comprehensive Agrarian
Reform Law of 1988 (RA 6657), and instituted reforms in
the implementation of agrarian reform.
Republic Act 9710

(Magna Carta of
Women)
Republic Act 9729
A comprehensive womens human rights law that seeks to

eliminate discrimination against women by recognizing,
protecting, fulfilling and promoting the rights of Filipino
women, especially those in the marginalized sectors. It
promotes empowerment of women and pursues equal opportunities
for women and men and ensures equal access to resources and
to development results and outcome.
(Climate Change)
Act of 2009
Republic Act No. 9512

(National Environmental
Awareness and
Education Act of 2008)
Repurchase
Agreement
Resettlement
Residual
Waste
Results-Based
Performance Management
System (RBPMS)
Retail Electricity
Rate
314
An act mainstreaming climate change into government policy

formulations, establishing the framework strategy and
program for climate change. It adopts a principle
ofprotecting the climate system for the benefit of
humankind,
on the basis of climate justice or common but
differentiated responsibilities and the Precautionary
Principle to guide decision-making in climate
risk management.
An act to promote national awareness on the role of natural
resources in economic growth and the importance of
environmental conservation and ecological balance towards
sustained national development. This legislation concretized
the countrys support to the United Nations Decade of
Education for Sustainable Development (2005-2014), and the
ASEAN Environmental Education Action Plan for Sustainable
Development (2008-2012).
One of the two open market operations (OMO) instruments of
the BSP. Under a repurchase (repo) agreement, the BSP buys
government securities from a bank with a commitment to sell
it back at a specified future date at a predetermined rate.
A repo transaction expands the level of money supply as it
increases the banks level of reserves. At present, the BSP
enters into a repo agreement for a minimum of one day
(overnight) and for a maximum of
91 days.
The act or instance of settling or being settled in another

place; also, movement of informal settlers from land where
they have no legal right, to land provided by the government
and with just title.
2 011-2016
MIDTERM
UPDATE sources containing materials
Waste
left from
household
that have not been separated out or sent for reprocessing.
Retail payment
systems
An exchange for small- value payments mainly between

banks or between participants in financial markets, and
usually require urgent and timely settlement.
Retail
trade
Any act or occupation of selling direct to the general

public merchandise, commodities or good for consumption.
Revealed
Comparative
Advantage
Refers to the share of product to total Philippine exports

as a ratio of share of the product to total world exports.
Revenue Effort
Revenue Integrity
Protection Service (RIPS)
Risk-Based Capital
Adequacy
Framework
Rule of
Law
Run After the

Smugglers (RATS)
Run Against Tax
Evaders (RATE)
Salary Standardization
Law
Computed as the ratio of total government revenues (both

tax and non-tax) to gross domestic product (GDP) at
current prices. It aims to measure the capability of the
government sector to generate revenues to support the
development needs of the economy. Revenue data are sourced
from the
Department of F inance (DoF) while G D P data are sourced from
the N ational Statistical Coordination Board (NSCB).
The anti-corruption arm of the D O F created by E O 259
(December 17, 2003). The RIPS investigates allegations of
corruption in the Department of Finance and its attached
agencies such as the Bureau of Internal Revenue and the
Bureau of Customs, the Bureau of L ocal Government Finance,
Bureau of Treasury, Central Board of Assessment Appeals, the
Insurance Commission, the N ational Tax Research Center, the
Fiscal Incentives Review Board, and the Privatization and
Management Office.
The internationally accepted risk-sensitive capital adequacy
standards for financial institutions. It prescribes that
financial institutions must, at all times, have capital
commensurate with their risk taking activities.
A principle of governance in which all persons, institutions
and entities, public and private, including the State
itself, are accountable to laws that are publicly
promulgated, equally enforced and independently
adjudicated, and which are consistent with international
human rights norms and standards. It requires measures to
ensure adherence to the principles of supremacy of law,
equality before the law, accountability to the law, fairness
in the application of the law, separation of powers,
participation in decision-making, legal certainty, avoidance
of arbitrariness and procedural and legal transparency. In
international governance indices, rule of law reflects
perceptions of the extent to which agents have confidence in
and abide by the rules of society, and in particular the
quality of contract enforcement, property rights, the
police, and the courts, as well as the likelihood of crime
and violence.
A program of the Bureau of Customs (BOC) under the
Department of Finance (D OF) that focuses on monitoring
or profiling, case-building, and
prosecution of smugglers. A program initiated by the D O F and
BIR to investigate and prosecute individuals and/or entities
Glossary
engaged in tax evasion and other criminal violations
of the
N ational Internal Revenue Code (NIRC) of 1997. R MO No. 242008 issued on June 11, 2008 provides the policies and
315
Sanitary
Landfill
Sanitation
Seal of Good Local

units Governance
(SGLG)
formerly Seal of Good
-Housekeeping (SGH)
Secondary Adjusted Net

Enrolment Rate (NER)
Secondary Mortgage
Market
Securities
Borrowing and
Lending
Securities Settlement
System
Septage
Service Delivery
Excellence Program
(SDEP)
Severity of
poverty
316
A waste disposal site designed, constructed, operated

and maintained in a manner that exerts engineering
control over significant potential environmental
impacts arising from the development and operation of
the facility.
A wide range of services and arrangements pertaining to the
hygienic and proper management of human excreta (feces and
urine) and community liquid wastes to safeguard the health
of individuals and communities.
A mechanism that monitors and recognizes adherence of local
government (LGUs) to performance criteria on any of the
following areas: good financial housekeeping, disaster
preparedness, social protection for the basic sector, business
friendliness and competitiveness, environmental compliance,
and law and order and public safety. An LGU must comply with
all three core elements of the SGLG (good financial
housekeeping, disaster preparedness, and social protection)
and at least one from the other assessment areas in order to
receive the SGLG.
The total number of 12-15 years old enrolled in any basic
education level, expressed as a percentage of 12-15
population (official secondary school age)
A market for the purchase and sale of existing mortgages,
designed to provide greater liquidity for selling mortgages.
The temporary loan of securities between borrower and
lender. This allows the borrower, who expects the price of
the security (either a government security or a stock) to
fall, to hold a short position for a long duration.
Meanwhile, the lender receives a fee that could potentially
enhance portfolio yield with
relatively low risk. A repo is also one form of securities
borrowing and lending instrument wherein securities may be
borrowed in a repo market to cover short positions.
A system which permits the holding and transfer of
securities, either free of payment or against payment
(delivery versus payment) or against
another asset (delivery versus delivery). It comprises all
the institutional and technical arrangements required for
the settlement of securities trades and the safekeeping of
securities. The system can operate on a real-time gross
settlement, gross settlement or net settlement basis. A
settlement system allows for the calculation (clearing) of
the obligations of participants.
The sludge produced in individual/communal onsite
wastewater-disposal systems, principally septic tanks.
A program of the Civil Service Commission (CSC) which

aims to immediately assist and provide solutions for
agencies that have failed to comply with their Citizens
Charter. The SDEP is designed for agencies to review
systems and procedures and identify appropriate
2 011-2016 MIDTERM
UPDATE
interventions
to
address concerns, if any. lt is aligned with the
Sewage
Sewerag
e
Shariah
Courts
Short Messaging
Service (SMS)
Sitio
Slum
Small Power
Utilities Group
(SPUG)
Social Insurance
Wastewater; consists of liquid or water-carried wastes removed

from households, institutions, and commercial and industrial
establishments, together with such groundwater, surface
water, and stormwater as may be present.
Facilities that collect human waste and sullage from
residences and establishments usually piped and conveyed in
structures (sewers, pump stations) for eventual central
treatment and safe disposal. Piped sewerage includes a
collection system (street lateral), a conveyance system
(trunk sewers and pump stations), and a treatment
plant/disposal.
Shariah District Courts (SDCs) and Shariah Circuit
Courts (SCCs) that were created in 1977 through
Presidential Decree 1083, which is also known as the Code
of Muslim Personal Laws. These courts have been established
to resolve cases involving Muslims.
A service available on digital networks, typically enabling
messages with up to 160 characters to be sent or received via
the message center of a network operator to a subscribers
mobile phone.
A territorial enclave inside a barangay, especially in rural
areas.
A run-down area of a city characterized by substandard
housing and squalor and lacking in tenure security.
The functional unit of the N ational Power Corporation
created to pursue missionary electrification function.
Social
Protection
Social Safety
Nets
Social Services
Social
Welfare
Programs that seek to mitigate income risks by pooling

resources and spreading risks across time and classes.
These are designed in such a way that beneficiaries pay a
premium over a given period of time to cover or protect
them from loss of income and unemployment as a result of
illness, injury, disability, retrenchment, harvest
failure, maternity, old age, etc. This
component includes micro and area-based schemes to address
vulnerability at the community level such as microinsurance,
agricultural insurance and social support funds.
Refers to policies and programs that seek to reduce poverty
and vulnerability to risks and enhance the social status
and rights of the marginalized by promoting and protecting
livelihood and employment, protecting against hazards and
sudden loss of income, and improving peoples capacity to
manage risks.
Stop-gap mechanisms or urgent responses that address
effects of economic shocks, disasters and calamities on
specific vulnerable groups. These are measures that
specifically target affected groups with the specific
objective of providing relief and transition. Measures
include emergency assistance, price subsidies, food
Glossary
programs, employment programs, retraining programs
and
emergency loans.
317
Socialized Housing
Solid Waste
Management (SWM)
Standardization
Stock Market
Capitalization Strategic
Agriculture
and Fisheries
Development Zones
(SAFDZ)
Management System
(SPMS)
Strengthening the
Integrity of the Judiciary
(SIJ)
Subprime
Crisis
Subsidy
318
the poor, and reduce risks associated with unemployment,

resettlement, marginalization, illness, disability, old age
and loss of family care. Social welfare and assistance
programs usually comprise direct assistance in the form of
cash or in kind transfers to the poorest and marginalized
groups, as well as social services including family and
community support, alternative care and referral services.
Provision of affordable housing (usually by the government)
through efficient production of housing units for ownership
and sustainable housing financing. Currently, socialized
housing units refer to house and lot packages costing less
than PhP450,000.
The discipline associated with the control of generation,
storage, collection, transfer and transport, processing, and
disposal of solid wastes in a manner that is in accord with
the best principles of public health, economics, engineering,
conservation, aesthetics, and other environmental
considerations, and that is also responsive to public
attitudes.
The creation and use of guidelines for the
production of uniform, interchangeable components,
especially for use in mass production.
The sum of the current values of all securities
traded on a financial market.
The areas within the N etwork of Protected Areas for
Agricultural and Agroindustrial Development (NA PAAD)
identified for production, agro processing and marketing
activities to help develop and modernize, either the
support of government, the agriculture and fisheries
sectors in an environmentally and socioculturally sound
manner (RA 8435).
A mechanism that links individual employees performance to
their agencys organizational vision, mission and strategic
goals. It is designed by the Civil Service Commission to
ensure that the employee achieves the objectives set by the
organization; and that the organization achieves the
objectives that it has set itself in its strategic plan. The
SPMS focuses on the agencys major final outputs (MFOs),
together with their corresponding performance indicators, as
these relate to the achievement of the agencys strategic
objectives.
A program of the Judiciary that aims to: (a) provide the
Judiciary with effective tools and techniques to
systematically assess the level of integrity of its
administrative processes; (b) guide the Judiciary as it
conducts a comprehensive review of its administrative
processes that will provide the basis for the design of reform
measures; and (c) assist the Judiciary in effectively
implementing the selected reforms.
The global financial meltdown in the housing mortgage market,

2 011-2016
MIDTERM
which
occurred
afterUPDATE
a sharp increase in mortgage
delinquencies when adjustable rates were reset at higher

rates. Securities backed with subprime mortgages lost most of
Subsistence Incidence
Subsistence
Threshold
Supplier
The proportion of families or individuals/population with

per capita income/ expenditure less than the per capita
food threshold to the total number of families or
individuals.
Refers to the minimum income/expenditure required for a
family or individual to meet the basic food needs, which
satisfies the nutritional requirements for economically
necessary and socially desirable physical activities. Also
known as the food threshold.
Any person or entity authorized by the Energy Regulatory

Commission to sell, broker, market or aggregate electricity
to the end-users.
Sustainable Land
Management
A model of development that is compatible with the

preservation of the ecosystem in areas where agriculture
and fisheries activities are carried out (RA 8435).
Tariff
Tax
Effort
Tax
Revenues
Education and
Training (TVET)
Third Generation
(3G)
Third Party Clearing

Bank
Total Factor
Productivity
Total fertility rate
(TFR)
Total suspended
particulates (TSP)
Tourism enterprises
The use of the land to meet changing human needs

(agriculture, forestry, conservation),while ensuring long
term socioeconomic and ecological functions of the land. (The
Updated Philippine N ational Action Plan to Combat
Desertification, Land Degradation and D rought 2010-2020).
Tax levied on imports and exports.
The ratio between the governments tax revenue collection
vis--vis G D P at current prices.
Compulsory charges or levies imposed by government on goods,
services, transactions, individuals, entities, and others,
arising from the sovereign power of state.
The education process designed at secondary and lower
tertiary levels, officially recognized as nondegree programs
aimed at preparing technicians, para- professionals and
other categories of middle-level workers by providing them
with a broad range of education, theoretical, scientific,
artistic and technological studies, social services and
related jobs skills training.
A generation of standards for mobile phones and mobile
telecommunications services fulfilling specifications by the
International Telecommunication Union. Application services
include wide-area wireless voice telephone, mobile Internet
access, video calls and mobile T V, all in a mobile
environment.
A clearing house that act as a third parties to all futures
and options contracts - as a buyer to every clearing member
seller and a seller to every clearing member buyer. It is an
agency or separate corporation of a futures exchange
responsible for settling trading accounts, clearing trades, ,
and regulating delivery and reporting trading data.
A measure of marginal productivity that takes into account
the contribution of technological change and improvements in
production efficiency.
The total number of births a woman would have on Glossary
average during her reproductive years (15-49).
Small airborne particles such as dust, fume and smoke with
319
Tourism receipts
Trade
Repositories
Transmission (Electric)
Transmission
Development Plan
Transnational
education (TNE)
Transparency
Seal
UN Security
Council Resolution
1325
of significant tourism potential; convention organizers;

accommodation establishments, including, but not limited
to, hotels, resorts, apartelles, tourist inns, motels,
pension houses, and home stay operators; tourism estate
management services, restaurants, shops and department
stores, sports and recreational centers, spas, museums and
galleries, theme parks, convention centers and zoos.
The receipts of the country in the form of consumption
expenditures or payments of goods and services made by
foreign visitors out of foreign currency resources.
A legal entity that centrally collects and maintains the
records of derivatives. It is essential to bringing
transparency to the global derivatives markets by making
market positions and potential risk concentrations fully
visible to regulators and, in aggregate form, to
the
public.
The conveyance of electricity through the high voltage
backbone system.
The program for managing the transmission system through
efficient planning for the expansion, upgrading,
rehabilitation, repair and maintenance, to be formulated by
the Department of Energy (D OE) and implemented by the
N ational Transmission Corporation (TransCo)/National Grid
Corporation of the Philippines (NGCP) pursuant to Republic
Act N o. 9136.
All types of higher education study programs, sets of
courses of study, or educational services (including those
of distance education) in which the learners are located
in a country different from the one where the awarding
institution is based. Such programs may belong to the
education system
of a State different from the State in which it
operates, or may operate independently of any national
education system.
The mandatory disclosure of key budget and major plans
of national government agencies (statement of allotment,
obligation and balances or SAOB, disbursement and
income, procurement plans) in their respective websites
under the Seal.
320
A resolution that reaffirms the important role of women in

the prevention and resolution of conflicts, peace
Underemployed
negotiations, peace building, peacekeeping, humanitarian
(persons)
response and in post-conflict reconstruction and stresses
the importance of their equal participation and full
involvement in all efforts
Underemployment
for the maintenance and promotion of peace and security. It
Rate
urges all actors to increase the participation of women and
incorporate gender perspectives in all United N ations peace
and security efforts. It also calls on all parties to
conflict to take special measures to protect women and girls
from
gender-MIDTERM
based UPDATE
violence, particularly rape and other
2 011-2016
forms of sexual abuse, in situations of armed conflict. The
resolution provides a number of important operational
Unemployed
Unemployment
rate
Universal Access
Universal
Charge
Universal Health
Care
Universal Service
(Telecommunications
)
Utilization rate
Valuation Reform
Act
Value
Chain
Value
Engineering/Value
Analysis (VE/VA)
Includes all persons who are 15 years old and over as of

their last birthday and are reported as: without work, i.e.,
had no job or business during the basic survey reference
period; and currently available for work, i.e., were available
and willing to take up work in paid employment or self
employment during the basic survey reference period, and/or
would be available and willing to take up work in paid
employment or self employment within two weeks after the
interview date; and seeking work, i.e., had taken specific
steps to look for a job or establish a business during the
basic survey reference period; or not seeking work due to the
following reasons: (a) tired/believe no work available, i.e.,
the discouraged workers who looked for work within the last
six months prior to the interview date; (b) awaiting results
of previous job application; temporary illness/disability;
(d) bad weather; and (e) waiting for rehire/job recall.
Percentage of the total number of unemployed persons to the
total population 15 years old and over.
Ubiquitous access to ICT services, e.g., at a public place,
thus also called public, community or shared access.
A fixed amount approved by the ERC pursuant to Section 34 of
RA 9136 imposed on all electricity end-users for: a) the
payment of stranded debts in excess of the amount assumed by
the N ational Government and stranded contract costs of NPC;
b) missionary electrification; c) equalization of the taxes
and royalties applied to indigenous or renewable sources of
energy vis--vis imported energy fuels; and d) environmental
charge.
A focused approach to health reform implementation,
ensuring that all F ilipinos especially the poor receive
the benefits of health reform. This is a deliberate
focus on the poor to ensure that they are given
financial risk
protection through enrolment to PhilHealth and that they
are able to access affordable and quality health care and
services in times of needs.
A principle of providing all individuals or
households with access to telecommunications
services, whether at home or mobile.
Measures the attractiveness of a preferential regime
relative to the Most Favoured N ation (MFN) Treatment. It
shows the extent to which imports eligible for the
preference rate actually enter or utilize the preferential
tariffs rather than the MFN.
A proposed legislative measure that seeks to
institutionalize reforms in land and real property
valuation intended to improve the administration of real
property and related taxes.
In agriculture, the value chain identifies the set of actors
and activities that bring a basic agricultural product from
Glossary
production in the field to final consumption, where
value is
added to the product at each stage. A value chain can be a
vertical linking or a network between various independent
321
Value-Added Service
(VAS)
Voice and
Accountability
Vulnerabilit
y
Vulnerable
groups
Warrant of Arrest
Information System
(WAIS)
Wasting
Water
Quality
Water Resources
(SCWR)
Waterless
Barangay/
Municipality
Watershed
Wet Thermal
Disinfection
A telecommunications industry term for noncore services

including all services beyond standard voice calls and fax
transmissions.
Reflects perceptions of the extent to which a countrys
citizens are able to participate in selecting their
government, as well as freedom of expression, freedom of
association, and a free media.
The susceptibility to deterioration in wellbeing as a result
of risks including external shocks and seasonal fluctuations,
as well as of opportunities offered by resources owned or
transfers through various means.
Groups of people who are susceptible to poverty as a
result of risks and external shocks.
Refers to the database of Warrant of Arrests issued by the
different courts nationwide accessible by all Philippine
N ational Police (PNP) units and other law enforcement
agencies nationwide.
Current, recent, or active malnutrition characterized by
very low weight-for- height as a result of deficits in both
muscle tissue and fat mass.
The characteristics of water, which define its use in
characteristics by terms of physical, chemical, biological,
bacteriological or radiological characteristics by which the
acceptability of water is evaluated.
An inter-agency committee with core members as well as
subsector clusters comprised of representatives from key
national government agencies, leagues of cities and
municipalities, academe and civil society. Details of the
composition and membership of the SCWR are outlined in the
Updated Philippine Waters Supply Sector Roadmap (2009).
A barangay or municipality wherein 50 percent or less of
the population has safe water.
Whole-of-Government
approach
Land area drained by a stream or fixed body of water and its

tributaries having a common outlet for surface runoff.
Wholesale Electricity
Spot Market
A process of steam disinfection, which is based on exposure

of shredded infectious waste to high-temperature, highpressure steam. It inactivates most types of microorganisms
if temperature and contact time are sufficient; for
sporulated bacteria, a minimum temperature of 121C is
needed. This method is similar to the autoclave
sterilization process.
Wind Energy
Wind Energy
Systems
Wireless
An approach wherein a government actively uses formal and/or

informal networks across different agencies to coordinate the
design and implementation of interventions in order to
increase the effectiveness of those interventions in
achieving the desired objectives.
The market where competitive, efficient, transparent and
reliable market/ trading of electricity will be made.
322
Kinetic
energy
derived
from air movement (wind), which is
2 011-2016
MIDTERM
UPDATE
converted into useful electrical or mechanical energy.
Machines or other related equipment that convert wind
World Governance
Indicators (WGI)
Yield Curve
Zero Based
Budgeting
A research dataset summarizing the views on the quality of

governance. provided by a large number of enterprise, citizen
and expert survey respondents in industrial and developing
countries. These data are gathered from a number of survey
institutes, think tanks, non-governmental organizations
(NGOs), international organizations, and private sector
firms.
A line that plots the interest rates, at a set point in
time, of bonds and other financial instruments having equal
credit quality but differing maturity dates. It is used as a
benchmark for other debt in the market such as mortgage
rates or bank lending rates. The curve is also a graphical
representation of the range of interest rates available to
investors and fused to predict changes in economic output
and growth.
A budgeting approach through which major agency programs
and projects are evaluated to: (a) determine the continued
relevance of program objectives vis--vis current
developments/directions; (b) assess whether program
objectives/outcomes are being achieved; (c) ascertain
alternative or more viable ways of achieving the objectives,
and ultimately; (d) guide decision makers on whether the
program/project should continue to be funded at its present
level, or if funding should be increased, reduced or
discontinued.
Glossary
323
Planning
Committees
2011-2016
Plan Steering Committee
Chair:
Sec. Arsenio M. Balisacan
National Economic and Development
Authority
Sec. Florencio B. Abad, Jr.

Management
Sec. Jose Rene D. Almendras
Office of the President
Sec. Rosalinda Dimapilis-Baldoz
Employment
Sec. Ramon J. P. Paje
Natural Resources
Members:
Sec. Cesar V. Purisima
Department of Finance
Sec. Manuel A. Roxas II
Department of Interior and
L ocalGovernment
Sec. Rogelio L. Singson
Highways
Sec. Corazon Juliano-Soliman
Department of Social Welfare and
Development
Additional inputs provided

by:
Romulo Emmanuel M. Miral, Jr.
Jose Ramon G. Albert
Congressional Policy and Budget
N ational Statistical
Research Department
Coordination Board
Sec. Imelda M. Nicolas
Ronald R. Golding
Commission on Filipinos O verseas
Senate Economic Planning
Gilberto M. Llanto
Office
Carmelita N. Ericta
National Statistics
Development Studies
Office
Planning Committees
325
Planning Committee on Economic Development

Chair: D D G Emmanuel F. Esguerra, N ational Economic and Development
Authority
Co-chair: A DG Rosemarie G. Edillon, National Economic and Development
Authority
Subcommittee on Macroeconomy
Chair: Dir. Francisco G. Dakila, Jr.,Bangko Sentral ng Pilipinas
Members:
Management Philippine
Statistics Authority
Senate Economic Planning Office
House of Representatives-Congressional Policy and Budget
Research Department Department of Budget and Management
Department of Finance-Fiscal Policy and P lanning
Office Department of Labor and Employment-Institute
for Labor Studies Office of the PresidentPresidential Management Staff
National Statistical Coordination Board
Subcommittee on Industry and Services

Chair: Usec. Adrian S. Cristobal, Department of
Trade and Industry
Co-chair: Dir. Bernie S. Justimbaste, Department of
Science and Technology
Members:
Industry Department of Science
and Technology Department of
Labor and Employment
Department of Environment and Natural
Resources Department of Interior and
Local Government Department of
Agriculture
Philippine Statistics
Authority Senate of the
Philippines House of
Representatives
Federation of
Philippine Industries
Information Technology and Business Process Association of
the Philippines Caucus of Development N G O Networks
Fair Trade Alliance
326
Additional Inputs provided by:

Subcommittee on Agriculture
Chair: Sec. Proceso J. Alcala, Department of Agriculture
Co-chair: Sec. Virgilio R. Delos Reyes, Department of Agrarian Reform
Members:
Philippine Rice Research Institute
Department of Trade and Industry-National
Competitiveness Council Department of Trade and
Industry-Board of Investments
Philippine Council for Agriculture, Aquatic and N atural Resources
Research and Development Philippine Statistics Authority-Bureau of
Agricultural Statistics
Management Bureau of Fisheries
and Aquatic Resources Land Bank
of the Philippines
Philippine Atmospheric, Geophysical and Astronomical Services
Administration Philippine Statistics Authority-National
Statistics Office
Philippine Institute for Development Studies
Philippine Statistics Authority-National Statistical
Coordination Board Philippine Coconut Authority
Philippine Center for Postharvest Development and
Mechanization Sugar Regulatory Administration
Agricultural Training
Institute N ational
Irrigation Administration
National Food Authority
Department of Environment and Natural
Resources Department of Labor and
Employment Development Academy of the
Philippines Development Bank of the
Philippines
National Fisheries Research and Development
Institute Mindanao Development Authority
National Commission on Indigenous
Peoples House of Representatives
Senate of the Philippines
Management Association of the Philippines-Agribusiness and Countryside
Development Foundation N orthern Mindanao Vegetable Producers Association, Inc.
Federation of Philippine
Industries, Inc. Philippine
Exporters Confederation, Inc.
Rural Bankers Association of the
Philippines Philippine Business for
Social Progress Caucus of
Development N G O Networks
Asian N G O Coalition for Agrarian Reform and Rural
Development Alyansa Agrikultura
Philippine Rural Reconstruction
Movement National Academy of
Science and Technology
University of Asia and the Pacific-Center for Food and
Planning Committees
Agri-Business Ateneo Center for Economic Research &
Development
327
Partido kalikasan
Institute, Inc. UPLBInstitute of Statistics
Department of
Agriculture Agricultural Credit and
Policy Council
Additional Inputs provided
by:
Philippine Partnership for the Development of Human Resources
in Rural Areas Food and N utrition Research Institute
N G O for Fisheries Reform
Pambansang Kilusan ng mga Samahang Magsasaka
Subcommittee on Finance
Chair: Dir. Johnny Noe E. Ravalo, Bangko Sentral ng Pilipinas
328
Members:
Bangko Sentral ng
Pilipinas Department
of Finance Bureau of
Treasury
Industry
National
Competitiveness
Council
Board of Investments
Philippines LandBank of the
Philippines
Government Service and Insurance
System Social Security System
Development Studies Securities and
Exchange Commission Insurance
Commission
Philippine Stock Exchange
Management
Philippine Statistics AuthorityNational Statistics Office
Coordination Board House Committee on Banks and
Financial Intermediaries
House Committee on Cooperatives Development
Senate Committee on Banks, Financial Institutions
& Currencies Senate Committee on Finance
National Reintegration Center for O verseas
Filipino Workers Senate Economic Planning
Office
Congressional Policy and Budget Research
Department Philippine Dealing System
Export Development Council
Financial Executives Institute of the
Planning Committee on Infrastructure Development

Chair: D D G Rolando G .Tungpalan, N ational Economic and Development
Authority
Subcommittee on Transport
Chair: Asec. Sherielysse R. Bonifacio, Department of Transportation and
Communications
Members:
Metro Manila Development
Authority Manila International
Airport Authority Department of
Public Works and Highways
Philippine Ports Authority
Maritime Industry Authority
Bases Conversion and Development
Authority Light Rail Transit
Authority
Civil Aeronautics
Board Toll
Regulatory Board
Management Department of
Agriculture
Clean Air Initiative for Asian
Cities
Land Transportation Franchising and
Regulatory Board Land Transportation Office
Cagayan Economic Z one
Authority Philippine
National Railways
Authority Cebu Ports
Authority
Employment Civil Aviation
Authority of the Philippines
Department of the Interior and L ocal
Government Clark International Airport
Corporation
Mactan-Cebu International Airport
Authority N ational Center for
Transportation Studies
Subcommittee on Energy
Chair: Usec. Raul B. Aguilos,
Members:
Power Sector Assets and Liabilities
Management National Power Corporation
Planning Committees
329
Subcommittee on ICT
Chair: Dir. Philip A. Varilla, Information and Communications
Technology Office (representing Exec. Dir. Louis N apoleon
C. Casambre)
Members:
National Telecommunications Commission
Government
Department of Science and Technology-Telecommunications
Office Department of Science and Technology-National
Computer Center Department of Science and TechnologyPhilippine Atmospheric, Geophysical
and Astronomical Services Administration
House of Representatives-Congressional Policy and Budget
Research Department Senate Economic Planning Office
Authority Department of Labor
and Employment
Presidential Communications
Operations Office Philippine
Information Agency
Peoples Television N etwork Inc.
Philippine Broadcasting Service-Bureau of
Broadcast Services Philippine Postal Corporation
Information Technology Association of the
Philippines
Subcommittee on Water Resources

Chair: Asec. Maria Catalina E. Cabral,
Department of Public Works and Highways
33 0
Members:
National Water Resources
Board Department of
Agriculture
Department of Agriculture-Bureau of Soils and Water
Management Department of the Interior and L ocal
Government
National Irrigation
Administration L ocal Water
Utilities Administration Pasig
River Rehabilitation
Commission
Department of the Environment and N atural Resources-River Basin
Control Office Department of Trade and Industry-Board of
Investments
Reform Office of the
Executive Secretary
Cooperative
Development
Philippine
Metropolitan Waterworks and Sewerage
System Philippine Statistical
Department of
Health Department
of Tourism
Department of Transportation and
Communication Department of Social
Welfare and Development N ational
Housing Authority
Mindanao Development Authority
Metropolitan Manila Development
Authority Subic Bay Metropolitan
Authority
Department of Science and Technology-Philippine Council
for Agriculture, Aquatic and N atural Resources
Research and Development
Department of Science and Technology-Philippine Atmospheric,
Geophysical and Astronomical Services Administration
Department of Science and Technology-Philippine Council
for Aquatic and Marine Research and Development
League of Provinces
League of Cities of the Philippines
League of Municipalities of the
Philippines Laguna Lake
Development Authority N ational
Anti-Poverty Commission
Philippine Association of Water
Districts
Office of Civil Defense-National Disaster Risk Reduction and
Management Council National Confederation of Irrigators
Associations
Philippine Water Partnership
Philippines Manila Water
Company, Inc.
Maynilad Water Services, Inc.
University of the
Philippines-National
Hydraulic Research Center
Subcommittee on Social
Infrastructure
Chair: Asec. Jesus L.R . Mateo,
Co-chair: Dir. Ma. Rebecca M.
Peafiel, Department of
Health
Members:
Department of Environment and Natural Resources-National Solid Waste
Management Commission Department of Environment and Natural ResourcesEnvironment Management Bureau
Housing and Urban Development Coordinating
Council National Housing Authority
Planning Committees
Planning Committee on Peace and
331
Senate Committee on National Defense and

Security Senate Committee on Justice and
Human Rights
Senate Committee on Peace, Unification and
Reconciliation Philippine Statistics Authority
Gazton Peace
Institute Sulong
CARH RIL IN C IT E
Gov
Subcommittee
on Peace
Chair: Usec.
Luisito G.
Montalbo, Office
of the
Presidential
Adviser on the
Peace Process
Members:
Office of the Presidential Adviser on the
Peace Process Philippine Commission on
Women
Council for the Welfare of Children
Department of Labor and Employment
Development N ational Anti-Poverty
Commission
Peoples Commission on Human Rights
Reform Department of
Agriculture
Department of Environment and N atural
Resources Mindanao Development
Authority
Autonomous Region in Muslim MindanaoRegional P lanning and Development Office
Subcommittee on Security
Subcommittee Chair: Asec. Danilo Augusto
B. Francia, Department of National
Defense
332
Members:
Department of N ational
Defense Armed Forces of
the Philippines Office of
Civil Defense
Government Philippine National Police
Bureau of Jail Management and
Penology Bureau of F ire
Planning Committee on Good Governance and AntiCorruption

Chair: Asec. Margarite Theresa Lucila-Tesoro, Office of the Chief
Presidential L egal Counsel
Co-chair: Asec. Rolando M. Acosta, Department of the Interior and L ocal
Government
Members:
Office of the President-Chief Presidential
Legal Counsel Civil Service Commission
Department of Budget and Management
Department of the Interior and Local
Government Department of Finance
Employment Department of Trade
and Industry Philippine
Statistics Authority
Office of the President-Presidential L egislative
Liaison Office Union of L ocal Authorities of the
Philippines
Subcommittee on Good Governance and

the Rule of Law
Chair: OIC-Dir. Lida C. Ayon, Civil Service
Commission
Co-chair: Dir. Francisco R. Cruz, Department of
the Interior and Local Government
Members:
Commission on
Elections Office of
the Ombudsman
Office of the President-Presidential
Management Staff Development Academy of
the Philippines
Office of the President-Chief Presidential
Legal Counsel Civil Service Commission
Department of the Interior and Local
Government Department of Finance
Employment Department of Trade
and Industry
Office of the President-Presidential L egislative
Liaison Office Commission on Human Rights
Commission on Audit
House of Representative-Congressional P lanning and Budget
Research Department Supreme Court of the Philippines-Program
Management Staff
Integrated Bar of the Philippines
Union of Local Authorities of the Philippines
University of the Philippines-National College of Public
Planning Committees
333
Planning Committee on Human Development and

Poverty Reduction
Chair: Sec. Corazon Juliano-Soliman, Department of Social Welfare and
Development
Subcommittee on Health, Nutrition and Population

Chair: Usec. Madeleine R. Valera, Department of Health
Members:
National N utrition
Council Commission on
Population
Corporation N ational Economic and
Subcommittee on Education
Chair: Asec. Jesus R. Mateo,
Members:
Technical Education and Skills Development
Authority Commission on Higher Education
Authority
Subcommittee on Housing
Chair: Sec. Gen. Cecilia S. Alba, Housing
and Urban Development Coordinating Council
Members:
National Housing Authority
Housing and Land Use Regulatory
Board Home Development Mutual
Fund
Home G uaranty Corporation
Social Housing Finance
Corporation
National Home Mortgage F inance
Corporation N ational Economic and
Subcommittee on Social
Protection
Chair: Usec. F lorita R. Villar,
Development
33 4
Members:
National
Economic
and Development
Philippine
Development
Authority Commission on Higher
Education
National Anti-Poverty
Commission N ational
Nutrition Council
Corporation Social Security
System
Technical Education and Skills Development
Authority League of Provinces of the
Philippines
League of Cities of the Philippines
League of Municipalities of the Philippines
Other members:
Philippine Statistics Authority-National
Statistics Office
Coordination Board Philippine Commission on Women
Peoples Presidential Commission for
the Urban Poor Council for the
Welfare of Children Philippine
Institute for Development Studies
Philippine N ational Volunteer Service
Coordinating Agency Senate Economic P lanning
Office
Congressional Planning and Budget
Department House of RepresentativesCommittee on the M D Gs
House of Representatives-Committee on
Social Services Asian Institute of
Management
Social Watch Philippines
Philippine Business for Social
Progress Aidwatch Philippines
Philippine Judicial Academy
Caucus of Development N G O
Networks Asian Institute of
Management
Planning Committee on
Climate Change
Adaptation and Mitigation
Chair: Usec. Manuel D . Gerochi,
Natural Resources
Co-chair: Usec. Austere A.
Panadero, Department of the
Interior and Local Government
Members:
Authority Department of Science and
Technology Department of Agriculture
Department of N ational Defense-Office of the
Civil Defense Metropolitan Manila Development
Planning Committees
335
Department of Agrarian Reform

Management Department of Trade and
Industry Philippine Institute for
Development Studies N ational Water
Resources Board Department of
Public Works and Highways Center
for Environmental Concerns
People Management Association of
the Philippines Philippine Business
for the Environment Chamber of
Mines of the Philippines
Civil Society Counterpart-Council for Sustainable
Development World W ide Fund-Philippines
Conservation InternationalPhilippines Aksiyon Klima
Greenconvergence
AidWatch Philippines c/o IBON
Foundation Development Academy of
the Philippines G reen Research
Additional Inputs provided
by: Migration Policy
Institute Department of
Justice
N EDA Regional Offices
336
NEDA Board
Chairperson:
President Benigno S. Aquino
III
Vice-Chairperson:
Sec. Arsenio M.
Balisacan
Socioeconomic P lanning Secretary
N ational Economic and Development
Authority
Sec. Florencio B. Abad
Vice President Jejomar S. Binay
Chairman
Members:
Housing and Urban Development
Sec. Manuel A. Roxas II
Department of Interior and L ocal
Usec. Manuel L. Quezon III
Government
Sec. Cesar V.
Presidential Communications
Purisima
Development and Strategic P lanning
Department of
Office
Sec.
Proceso J. Alcala
Finance
Department of
Diwa C. Guinigundo
Agriculture
Deputy Governor
Sec. Rogelio L. Singson
Highways
Sec. Ramon J.P. Paje
Department of Environment and N atural
Resources
Sec. Joseph Emilio A. Abaya
Department of Transportation and
Communications
Sec. Carlos Jericho L.
Petilla
Sec. Mario G. Montejo
Technology
Sec. Ramon R. Jimenez, Jr.
Luwalhati R. Antonino
Chairperson
Mindanao Development Authority
Francis N. Tolentino
Chairman
Metro Manila Development
Authority
Gov. Mujiv S. Hataman
Autonomous Region for Muslim
Gov. Alfonso V. Umali, Jr.
Mindanao
Union of L ocal Authorities of the
Philippines
Sec. Gregory L. Domingo

Industry
Sec. Jose Rene D. Almendras
Office of the President
Sec. Julia Andrea R. Abad
Presidential Management
Staff
NEDA Board
337
NEDA Secretariat*
Office of the Director-General
Arsenio M. Balisacan
Socioeconomic P lanning Secretary
Kenneth V. Tanate
Assistant Director-General and
Chief-of-Staff
Development Information
Staff
N errisa T.
Esguerra
Director IV
Roweena M. Dalusong
Director III
Internal Audit Staff
Joan Marivic F.
Alhambra-O zo OICDirector
National Development OfficePolicy and

Planning
Emmanuel F. Esguerra
Deputy-Director General
Rosemarie G. Edillon
Assistant Director-General
Agriculture, Natural Resources and
Social Development
Environment Staff
Staff Erlinda M.
Mercedita A.
Capones Director IV
Sombilla Director
Myrna Clara B.
Gina V Aljecera
OIC-Assistant
Director
Governace Staff
Carlos Bernardo O . Abad
Santos Director IV
Thelma C. Manuel
OIC-Assistant
Director
National Policy and Planning
Staff
Rosemarie G.
Edillon
Concurrent
Director
338
Asuncion Director
III
Trade, Services and Industry
Staff Brenda Joyce R.
Mendoza Director IV
Amelia A. Menardo
OIC-Assistant
Director
Marites B. O liva
OIC-Assistant
Director
* As of April 2014
National Development OfficeInvestment

Programming
Rolando G. Tungpalan
Deputy Director-General
Infrastructure Staff
Ruben S. Reinoso Jr.

Assistant Director-General
Public Investment
Ruben S. Reinoso
Jr. Concurrent
Director
Staff
Kathleen P.
Mangune Director
III
Monitoring and Evaluation Staff
F lorante G.
Igtiben
Director III
Jonathan L. Uy
Director IV
Roderick M.
Planta
Director IV
Violeta S.
Corpus
Director III
C
e
n
Administrative Staff
t
Ma. Theresa R.
r
Escolano OICa
Di rector
Financial, Planning and Management l
Staff
Joseph Melvin B.
Basas Director IV
S
u
p
p
o
r
t
Information and Communications Technology

Staff
Kenneth V.
Tanate
Concurrent
Legal
Staff
Director
Jocelyn P.
Reyes
Director IV
O
f
f
i
c
e
N
e
s
t
NEDA
Secretariat
33 9
Regional Development
Office
Margarita R. Songco
Deputy Director-General
Regional Development Staff
Remedios S.
Endencia OICDirector
Cynthia A. Villena
OIC-Assistant
Director
NEDA
Regional
Cordillera Administrative
Region
Milagros A.
Rimando Director
Region I
Nestor G.
Rillon OICDirector
Region II
Mary Anne ER.
Darauay OICDirector
Region III
Severino C.
Santos OICDirector
Victor B.
Ubaldo
OIC-Assistant
Region
IV-A
Director
Agnes
M.
Espinas OICDirector
Fidel T.
Udarbe
OIC- IV-B
Region
Assistantl
Cecilia
R.
Director
Lopez
OICDirector
340
Offices
Region V
Luis G.
Banua OICDirector
Assistant Director
Region XI
Ma. L ourdes D .
Lim Director
Edna Cynthia S.
Berces OICAssistantl
Region
VI
DirectorA.
Ro-Ann
Bacal
Director
Mae Ester T.
G uiamadel OICAssistant Director
Region XII
Arturo G.
Valero
Director
Raul S.
Anlocotan
Assistant
Region
VII
Director
Efren
B.
Carreon OICDirector
Region VIII
Bonifacio G.
Uy OICDirector
Region IX
Teresita Socorro C.
Ramos Director
Region X
L eon M. Dacanay
Jr. Director
Fe D . Domingo
N oel E.
Q uiratman
Assistant
Caraga
Region
Director
Mylah
Faye Aurora B.
Cario OIC-Director
Index
A
access to finance
12, 111
Aquired Immune Deficiency Syndrome (AIDS)
124 adaptation 23, 89, 95, 140, 160,
165, 208, 216, 219, 220
AFP Coast Watch System
185
agrarian reform
3, 5, 12, 83, 84, 92,
96-99, 215, 220
Agrarian Reform Community (ARC)
5, 84,
92, 93
agribusiness
V, 12, 60, 66, 90, 93, 94,
133, 215
agricultural lands
78, 83, 92
agro-forestry
90, 94
airsheds
213
alienable or disposable land
211, 222,
232, 235
Alkire Foster (AF)
5, 111
Alternative Dispute Resolution (ADR)
25,
109, 168,
170, 171, 176, 191
alternative fuels
266
ancestral domains
214, 231, 232
Ancestral Domains Sustainable Development
and Protection Plans (ADSDPPs)
211, 222, 236
ancestral lands
224
164
B
Balance of Payments (BOP)
36, 37
barangay
18, 66, 92, 126, 156, 170, 191,
214, 245, 248,
259, 260, 270
Basel
111
basic education
17, 18, 121, 122, 129132 147, 232, 259
Bio-chemical O xygen Demand (BOD)
213,
227, 228,
237, 238
biodiesel
256
biodiversity
24, 87, 210, 217, 221,
223, 224, 235, 251
Business Permit and Licensing System

(BPLS)
54,62, 159, 164
Business Process Management
7, 10, 17,
20, 36, 56,
61, 66, 251
C
cabotage
63
capital account
37
capital accumulation
6
capital flows 26, 30, 37, 105-107
capital inflows 22, 26, 30, 113
capital markets
104, 115
capital outlay
10, 32, 42, 250
carbon sequestration
208,
210 Career Executive Service
(CES)
163
Career Executive Service Development
Program (CESDP)
163
Career
Executive
Service Officers
Category
1
(CESOs)
163
Provinces
Category 2 13, 60, 91, 125
14, 17
Provinces
14, 135, 220
Category 3
Cellular
ProvincesMobile Telephone Service (CMTS)
253, 268 Centers of Excellence
134
Central counterparties
115 Central Securities
Depository
115
Certificate of Ancestral Domain T itle
(CA DT )
190, 201, 211, 222, 236
Certificate of Ancestral Land T itle (CALT )
211, 222, 236
Certificate of Land O wnership Award
(CLO A)
83, 84, 89, 101, 214
certification rate
128, 147
chattel
117
chemical
55, 87
Citizens Participatory Audit (CPA)
163, 166 Citizens Satisfaction Index
System (CSIS)
158
Civil Society O rganization (CSO)
24, 100, 140, 157Index
159, 167, 174, 208, 223, 234
classroom shortage
245
341
climate change
11, 23, 68, 74, 75, 85,
87, 89, 90, 95,
102, 160, 165, 206-210, 215, 216,
coastal218-220,
and
24, 210, 217, 221, 223,
224, 230, 224,
249, 232,
264, 265
marine
235
128-130,
cohort
survival
Community
e-Center
147
246,
rate competency
(CeC)
66, 261
134
competitive rate
advantage
completion
128-130, 147
61
Comprehensive
Land Use Plan
20, 145,
(CLUP) concession
257, 266,
208
269, 270, 271
conflict-affected
area
12, 25, 181, 187,
190, 249, 264
Consolidated Public Sector Deficit
34,
39, 47
contingent liability
44, 225
contraceptive prevalence rate (CPR)
123,
146
control of corruption
25, 150-152, 173
Convention on Indigenous and Tribal
Peoples (ILO Convention N o. 169)
192
Convention of the Rights of the Child
192, 196 convergence
5, 27, 90, 96,
121, 140, 183, 186, 190,
211, 215, 251
coverage 19, 22, 83, 84, 108, 112,
117, 123-126, 136,
137, 139, 147, 168, 175, 185, 195, 197,
243-245,
246,
253-255, 257, 259, 263, 266, 268D
271
credit default swap
106 cropping
dependable
capacity
254, 256, 269
252
calendar
derivatives 87 111, 115
current
accountRequirement
26, 36, 37,123,
39, 147
Dietary Energy
40, 44, Terrestrial
47 Customs Modernization
Digital
Television (DTT)
Broadcasting
and Tariff Act
41
Disaster Risk Reduction (DRR)

22, 23,
137, 193,
203, 208, 265, 215-220, 224, 230,
231, 234
disbursements
31, 35, 39, 40, 47, 162
disposal
169, 213, 228, 229, 233, 238,
265, 283
distribution utility
246
diversion rate
213, 214, 228, 238, 265
dumpsites
342
215
Ecological Solid Waste Management

213,
229
e-Commerce
62, 64
economic growth
V, VI, 4, 5, 7, 9, 12-14,
23, 31, 35,
44, 51, 53, 68, 75, 86, 105, 120,
121, 124, 151,
172, 179, 207, 230, 240, 241, 248,
264
economic zones
62-64, 233
Eco-tourism
210, 225, 226, 251
education
V, VI, 4, 5, 7, 9, 17-19, 23,
24, 36, 42, 53,
57, 61, 64, 66, 67, 69, 86, 91, 95,
111, 115,
120-122, 127-134, 147, 148, 157159, 180,
190, 200, 215, 218, 232, 233, 240,
245, 246,
258, 259
e-Governance
162, 261
e-Government
22, 162, 240, 43, 247, 253,
261, 247
electric cooperatives 255
electricity
5, 9, 52, 97, 241, 242, 244,
246, 255, 259,
260, 265, 267, 270, 271
employment
V, 3-12, 14, 16, 17, 19, 22,
26, 30, 31, 5153, 55, 57-60, 63, 64, 68, 70, 71,
74, 75, 79, 80,
95, 97, 105, 113, 120-122, 124,
127,100
132, 133,
94,
135, 136, 138, 141, 151, 153, 172,
179,
207,
extension
services
5, 83, 86, 90, 91, 94,
210,
223, 241, 248
96, 98
employment
generated
9, 58, 70, 71
external
debt
37-40, 44,
employment
7
47
External rate
Debt Service
Ratios
end-user 38
financing
141, 143
Extractive
Industries
Enhanced Justice on W heels (E-JOW )
Transparency
Initiative
168, 176 enterprise-based
training
60, 154,
133, 134
entrepreneurship
17, 66, 85, 131
224
Environmental Impact Assessment (EIA)
206, 233,
258
F
Exclusive Economic Z one 185, 233
exports
11, 35, 37, 38, 56, 58, 60,
Farm-to-Market
69, 71, 78-81, Roads
85, 88,19, 20, 40, 85, 253
financial account
37
financial inclusion
22, 46, 104, 107,
108, 110, 112,
113, 115-118
fiscal policy
6
fiscal space VI, 2 30, 31,
41, 249
fishing
76, 77, 79, 80, 87,
Foreign
Direct
Investment
6, 52,
95, 210, 223
70,
106,
114
food security
74, 82, 231
forward
and backward
11, 26,
foreign exchange
37,linkages
113
57, 75, 89, 90,
Full Disclosure
155,
93, 102 Policy
156, 173
G
geothermal
254
global competitiveness
2, 50, 53, 55,
133,
150,
151,
240,
241
58, 70, 71, 129,
Government Human Resource
Information System (GH RIS)-National
Payroll System (NPS)
162
Government Integrated Financial
Management Information System
(GIFMIS)
43, 157, 161
-formerly
Bottom-Up
Budgeting
(BUB)
Grassroots Participatory Budgeting
Process
158
greenhouse
gases
266
(GPBP)
grid
246, 254, 255
Gross Domestic Product (GDP)
2, 3, 7,
10, 12,26,
20,32-35,
22, 38-40, 42, 44, 46, 47,
51, 53, 57, 58,
68, 76, 106, 107, 112, 118, 121,
207, 240, 249,
256
Gross International Reserves (GIR)
37, 38 Gross Regional Domestic
Product (GRDP)
8 gross value-added
H7, 51, 58, 70, 71, 76-78, 88 100
215, 217,
hazardous
228, 229
wastes
health
18,
35 20, 121-126, 139, 259
headlinecare
higher
education (HE)
17, 19, 91, 121,
inflation
122, 128, 129,
131, 133, 134, 148, 198
high-value crops
77, 100
household
2, 5, 12, 13, 17, 19, 20, 23,
31, 36, 74, 84, 89,
90 92, 93, 95, 102, 114, 116, 123,
125, 128, 135,
136, 138, 141-144, 147, 190, 200,
245, 246, 248,
259, 260, 266, 270, 271
housing
5, 9, 19, 20, 36, 62, 121, 122,
136, 141-145,
148, 246, 248, 259
housing unit
20, 141, 259
human capital
4, 5, 17, 124, 127
hydropower
254
I
import cover
38
imports
41,
85, 99 imports
of goods 37
inclusive
finance
23
inclusive growth
VI, 2, 3, 6,
7, 12, 23, 31,
43, 51, 57, 60,
86, 94,
104, 110,
170, 206
income poor
3
Indigenous Community Conserved Areas
(ICCAs)
210 Indigenous People
(IP)/Indigenous Cultural
Communities (ICC)
19, 93, 126,
137, 170, 190,
192, 201, 211, 225, 258, 280
inequality
V, 4, 120
Infant mortality rate (IMR)
123, 146
inflation
2, 26, 30, 31, 35, 36, 39, 40,
44, 47, 58, 112
inflation rates
26, 35, 36, 39, 47, 112
informal settlers
19, 20, 135, 144, 248
Information and Communications Technology
(ICT) 65, 66, 90, 92, 94, 160,
162, 184, 240-244, 246,
247, 249, 251, 257, 258, 261, 262, 267,
271
INFRACO M Sub-Committee on Water (SCWR)
267 innovation
VI, 11, 19, 22, 43, 50,
55, 57, 58, 59, 65-67,
70, 71, 87-91, 95, 97, 132, 251, 261
installed/rated capacity
244, 246
Integrated
Forest Management Agreement
J
(IFMA)
208 Integrated River Basin
Management
(IRBM)
Integrated
Water
joint
venture
145, 223
171,
246
Resources
Management
(IW RM ) Council
216 Interim
Justice
Sector
Coordinating
Market (IMEM)
255
(Mindanao
JSCC) Electricity
169, 172
International Budget Partnership (IBP)
155 International Convention on the
Elimination of All
K
Forms of Racial
KDiscrimination
to 12 Program 192 investment
climate
4, 246
18,
131
investment-to-GDP ratio
3
Irrigation Service Fees (ISF)
3, 144
irrigation system
77, 91,
Index
253, 254
343
344
labor force
3, 6, 8, 11, 19, 52, 57, 65,
79, 120, 124, 129,
132, 133, 136
labor market
6, 10, 133,
134 Large-value payment
systems
115
LGU Income Re-classification System
Bill
43 low-cost housing
141142, 246
M
off-grid areas
246, 259
on-grid areas 244
open access 244, 259
Open Budget Index (OPI)
25, 173, 152,
155
organic agriculture
215
O rganizational Performance Indicator
System (OPIF) 43
O utstanding Public Sector Debt
35
magnitude of poor
P
families
133 Marine86, 210, 221,
Protected Areas (MPAs)
232,
payment systems
115, 126, 157
235
penetration
50, 108
market capitalization
peoples budget
156
106
Peoples Survival Fund (PSF)
208, 219
18, 123, 124,
materials recovery
213,and146
per capita
50, 123, 147
Medium-Term
Information
214, 248
maternal
percentile rank
24, 25, 150, 152,
Communication
Technology
mortality
ratio (MMR)Initiative
173, 175 Performance Challenge Fund
Harmonization
(MIT H I)
162, 262
(PEF) 160 Performance Enhancement
metrology
56, 60, 70
Incentive (PEI)
160
Micro, 12,
Small
Enterprises
23,and
55,Medium
59, 65,
68, 69, 92, 94, 11, Performance-Based Bonus (PBB)
154, 160
(MSMEs)110, 111, 114,
Performance-Based Incentive
43,
116
247
missionary electrification
246
Persons with Disability
19, 23,
mitigation (climate change)
17, 23, 160,
126 Philippine Development Forum
165, 208, 220
(PDF)
169 Philippine Q uality
monetary policy
35, 39, 44,
Award (PQA)
165 political
45, 47 Most-at-risk population
stability
VI, 39, 58, 150
(MARP)
124
post-harvest facilities
82, 92,
Multidimensional Poverty Index
N
100
(MPI)
VI
post-trade processing
115
N ational Integrated Protected Areas
poverty
V, VI, 2-6, 9-14, 17-19,
Systems (NIPAS) 210, 221, 224, 232,
26, 31, 50, 51, 57, 60,
235, 258
74, 75, 82, 94, 96, 97, 105,
National Justice Information System
109, 110, 116, 120(NJIS)
24, 169 National Transport
122, 124, 125, 127, 128,
Policy (NTP)
258, 262 N ationwide
135, 136, 139, 141,
Operational Assessment of Hazards
146, 147, 151, 153, 157,
(NOAH)
208
158, 160, 165, 172,
natural gas
266
174, 179, 207, 223, 241,
N et Enrolment Rate (NER) or
245, 248
Participation Rate 128, 130,
poverty incidence
3, 4, 7, 9, 13,
131, 147, 160, 190, 200
14, 82, 93, 97
net lending
32
poverty threshold
9, 84
network
92, 111, 132, 186, 250, 251,
power
10, 64, 220, 241, 244, 246,
261, 263
247, 254-256, 259,
N G Deficit
35
269, 270
Non-Tax Revenues
32-34, 39, 47
productivity
93, 99, 100, 124,
nuclear wastes
215, 233
133, 160, 165, 241, 248Philippine Development Plan 2 011-2016 MIDTERM UPDATE 250, 261, 267
protected area
86, 210, 221, 232,
235
R
rationalization of fiscal
incentives
41
rationalization of the mining
fiscal regime
41
real gross domestic
product
3 recyclable
material
229
Degration
P lus (REDD-plus)
Reducing
Emissions
from
223 regulatory
quality
25,
Deforestation
150,
152, 175 and
Forest remittances
22, 27, 69,
108, 114
employment
Report remunerative
Card Survey (RCS)
161, 164, 175
17
Republic
Act 10149 (GO CC Governance Act
Renewable
of
2011) 42
Portfolio
Republic
StandardsAct
(RPS)
10351 247
(Sin Tax Reform Law)
32, 123,
125
Republic Act 10354 (Responsible
Parenthood and Reproductive Health
Act of 2012)
123, 125
Republic Act 6969 (Toxic Substances and
Hazardous Waste Act of 1990)
125
Republic Act 7160 (Local Government
Code)
158, 215, 233, 258
Republic Act 7718 (Build-OperateTransfer (BOT ) Law)
246
Republic Act 8749 (Philippine Clean Air
Act of 1999) 213, 215, 233, 258
Republic Act 9003 (Ecological Solid Waste
Management Act of 2000)
213, 228
Republic Act 9513
(Renewable Energy
Act of 2008) 247
Republic Act 9700 (Comprehensive Agrarian
Reform
Program
Extension
withAct 215
Republic
Act 9729
(Climate
Change)
Reforms
(CARPER))
of
2009 233,
258 83, 84, 97, 98 ,
Republic Act 9512 (National
Environmental Awareness and
215
Education Act of 2008) 233,
,
258 agreement
repurchase
115
resettlement
245
residual waste Performance
229
Results-Based
Management
System (RBPMS)
160, 162
retail payment systems
115 retail trade
52
revenue effort
26,
32, 33, 39
Revenue Integrity Protection Service

(RIPS)
166 rule of law
4, 24, 64,
150-153, 167, 172, 173, 175
Run After the Smugglers (RATS)
425,
33, 171, 176
Run Against Tax Evaders (RAT E)
25,
32, 33, 171, 176
S
sanitary landfill
248
sanitation VI, 5, 9, 17, 20, 240, 245,
258, 259, 265
Seal of Good Governance (SGLG) formerly
Seal of Good Housekeeping (SGH)
156, 160, 161,
163, 174
Securities Settlement
System
115 Septage
264266, 271
Service Delivery Excellence Program
(SDEP)
164 sewerage
216, 248, 264,
265, 266, 271
Shariah Courts
192
sitio
191, 246, 258-260, 270
slum
141, 144, 145
Small Power Utilities Group
(SPUG)
246 social insurance
17, 138, 139
social protection
12, 17, 19,
97, 120, 121, 135-140,
148, 163, 182, 245
social safety nets
139
social services V, 17, 18, 25,
26, 32, 42, 121, 122, 190,
200, 259
social welfare
138-140, 146, 191
socialized housing
121, 136,
141-145, 148, 246, 259
Solid Waste Management (SWM)
213-215 217, 228,
229, 233, 234, 249, 258, 264-266
271
standardization
145, 247
Strategic
Performance Management System
T
(SPMS) 161-163, 174
subsidy
126,62,
24698, 247, 258
tariff
41,
subsistence
tax
2, 25,incidence
32-34, 41, 82
54, 83, 99,
supplier
11, 57,
111, 123, 125,
153,67, 70, 78, 157, 247
sustainable
18,244,
20, 251
96, 99,
170, 171,development
176, 215, 229,
211,effort
222, 232,
tax
26, 33, 39
236
sustainable land management
99, 211,
222, 235
Index
345
tax revenues
33, 34, 39, 47, 125
Technical Vocational Education and
Training (T VET ) 17, 19, 121, 122,
128, 132, 133, 147
tourism
V, 8, 10, 17, 20, 32, 50, 56,
61, 63, 69, 70, 94,
195, 197, 248, 250, 251, 255
trade repositories 115
transmission (electric)
20,
254, 256 Transmission
Development Plan
254
Transparency Seal
154, 155,
173
U
UN Security Council
Resolution 1325
192
underemployment (persons)
VI, 8, 80, 132
underemployment rate
8, 9
unemployed
79
unemployment rate
3, 8, 9
universal access 18
universal charge
246
universal health care
121,
123, 124
utilization rate
139
V
Valuation Reform Act
42
value chain
12, 67, 90, 93,
94, 96
Value Engineering/Value
Analysis (VE/VA)
246, 262
vulnerability
13, 19, 23,
82, 83, 85, 95, 120, 137,
140,
141, 186, 215, 216, 219, 245
vulnerable groups
121, 138,
139
346
water quality
217, 227-229,
237, 265
water resources (SCWR)
Philippine
2216, 233,
255,Development
258, 262,Plan 2 011-2016 MIDTERM UPDATE
265
watershed
5, 24, 87, 210,

2011-2016 MIDTERM UPDATE
With Revalidated Results Matrices
Published by:
National Economic and Development Authority
12 Escriva Drive, Ortigas Center, Pasig City
Tel: +632 631 0945 to 56
info@neda.gov.ph
ISSN: 2243-7576

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Philippine Development

With Revalidated Results

2014 by National Economic and Development Authority

Philippine Development Plan 2011-2016 Midterm Update

Message of the President

BENIGNO S. AQUINO III

Message of the Secretary

Chapter 3. Competitive and innovative industry and

Chapter 6. Social development

Chapter 7. Good governance and the rule of

Chapter 8. Peace and security

Chapter 9. Sustainable and climate-resilient environment and

Chapter 10. Accelerating infrastructure

List of Results Matrices (RM) and

Gross regional domestic product (GRDP) growth targets, 2014-2016 (in %)

Annual target indicator matrix on macroeconomic policy, 2013-2016

Chapter 3. Competitive and innovative industry and

Annual target indicator matrix on competitive and innovative

Chapter 4. Competitive and sustainable agriculture and

Annual target indicator matrix on competitive and sustainable

Chapter 5. Resilient and inclusive

Annual target indicator matrix on resilient and inclusive financial

Revalidated RM on subsector outcome B: Knowledge and skills enhanced

(access to secure shelter expanded)

Revalidated RM under subsector outcome A on enhancing

Revalidated RM under subsector outcome A on fully engaging

Revalidated RM under subsector outcome A on strengthening performance

Revalidated RM under subsector outcome B on improving

Revalidated RM under subsector outcome B on enhancing

Annual target indicator matrix on good governance and the rule

of peace and security

Revalidated RM on intermediate outcome 2 of peace and security

Revalidated RM on subsector outcome B: Sustainably managed

Revalidated results matrix (RM) on subsector outcome C: Environmental

of human communities improved

Chapter 10. Accelerating infrastructure

Revalidated RM on supporting agricultural production

Revalidated RM on addressing infrastructure gaps in far-flung areas

List of Non-RM Tables, Figures and

Ratio to GDP, 2010-H1 2013 (in %)

Chapter 3. Competitive and innovative industry and

Results framework on competitive and innovative I&S sectors

Chapter 4. Competitive and sustainable agriculture and

Value and growth of top agricultural exports, 2011-2013

Average daily basic pay of wage and salary workers by

Towards growth that reduces poverty

Chapter 5. Resilient and inclusive

Key components of financial market infrastructure

(SY 2013-2014 and 2016) on key performance indicators for basic

Backlogs (2010) and accomplishment on basic education critical resources

Targets and accomplishment on National Shelter Program, 2011-2012

Housing needs estimates by region, 2011-2016 (in number of households)

Chapter 7. Good governance and the

Global ranking of the Philippines in governance indices, 2010-2012

Chapter 8. Peace and

Results framework on peace and security

Chapter 9. Sustainable and climate-resilient environment and

environment and natural resources

Estimated direct cost of damage to properties of natural disasters