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PHILIPPINE NATIONAL DEVELOPMENT FRAMEWORK AND STRATEGY (2010) by Dr. Ronald M. Henson Management Consultant RP ECONOMIC STATUS overall GDP (US$379.7) and estimated GDP per capita (US$4,600 as of 2002), with a pervasive poverty problem, (40% of the population below the poverty line) UNDP Human Poverty Index is 14.8, placing the country as the 28TH poorest among 94 developing countries; also placing the Philippines among the top 34 countries in the world for unequal income distribution annual per capita poverty threshold was estimated at PhP11,906 (US$211.362) in 2002; a family of five members should have a monthly income of PhP4,961 (US$88) to meet its food and non-food basic needs (NCSB 2004) manufacturing accounts for around 25% of GDP (textiles, pharmaceuticals, chemicals, wood products, food processing and petroleum refining) RP ECONOMIC STATUS 40th largest in the world, according to 2012 International Monetary Fund statistics and it is also one of the emerging markets in the world. considered as a newly industrialized country, it has been transitioning from one based on agriculture to one based more on services and manufacturing 2012 GDP (purchasing power parity) was 424.355 billion, by the year 2050, the Philippines will be the 14th largest economy in the world, Philippines included in the list of the Next Eleven economies. Philippine economy will become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the Southeast Asian region by 2050 PHILIPPINE DEVELOPMENT PLAN (2011-2016) anchored on President Benigno S. Aquino III’s 16-point “Social Contract with the Filipino People,” envisions inclusive growth for the country. Inclusive growth means growth that is shared by all and opposed to the trickle down, jobless growth that we have seen over the recent years. good governance and anti-corruption as overarching theme, the Plan has three broad strategies - high and sustained economic growth, which provides productive and decent employment opportunities - provision of equal access to development opportunities across geographic areas and across different income and social spectrum to ensure economic growth and opportunities that translate to poverty reduction - push for the implementation of effective and responsive social safety nets to assist those who will not be able to catch up by the character of a rapid economic growth. 1O PARTS OF THE PDP 1. Introduction: In Pursuit of Inclusive Growth 2. Macroeconomic Policy 3. Competitive Industry and Services Systems 4. Competitive and Sustainable Agriculture and Fisheries Sector 5. Accelerating Infrastructure Development 6. Towards a Dynamic and Resilient Financial Sector 7. Good Governance and the Rule of Law 8. Social Development 9. Peace and Security 10. Conservation, Protection and Rehabilitation of the Environment and Natural Resources Towards Sustainable Development 5 PARTS OF THE PLAN a commitment to the Millennium Development Goals of the United Nations: Part One –Economic Growth and Job Creation Part Two – Energy Part Three – Social Justice and Basic Needs Part Four – Education and Youth Opportunity Part Five – Anti-Corruption and Good Governance ECONOMIC GROWTH AND JOB CREATION 1. 2. 3. 4. 5. 6. 7. 8. 9. Trade and investment Agri-business Environment and natural resources Housing/construction Tourism Infrastructure Fiscal strength The financial sector Labor ENERGY 1. Energy independence and power sector reforms 2. Increased oil and gas exploration 3. Development of renewable energy 4. Expanded use of natural gas 5. Strategic alliances, and through energy efficiency and conservation 6. Power sector reforms to reduce electricity rates 7. Encouraging private sector participation in power generation 8. Total electrification of barangays by 2008 SOCIAL JUSTICE AND BASIC NEEDS 1. Anti-poverty program of government 2. Achieving national harmony through automated elections 3. The peace process and healing the wounds of EDSA 1,2 and 3 4. The implementation of rule of law 5. Enhanced livelihood activities through credit support and capacity building 6. Asset reforms such as agrarian reform, urban asset reform, and ancestral domain issues. 7. Improved accessibility and affordability of essential services and reducing by half the cost of medicines. 8. Protection of the vulnerable which include children, youth, women in difficult circumstances, persons with disabilities, and older persons. 9. The empowerment of the poor through the KALAHI-CIDSS program and support for private sector. EDUCATION AND YOUTH OPPORTUNITY 1. Early childhood education such as expanding the Early Childhood Care and Development (ECCD) to reach all 5-year olds and health and nutrition as part of day care, elementary, and high school. 2. Basic education, such as closing the classroom gap by building 6,000 classrooms a year, installing distance learning in conflict areas, providing computers in every high school, and upgrading math, science and English learning. 3. Technical, vocational education and training such as ladderized interface of TVET to College, job-skill matching, and the establishment of community colleges. 4. Higher education such as provision of scholarships and financial assistance and the upgrading of higher education curriculum. 5. The acceleration of knowledge creation and transfer to promote technology-based entrepreneurship. 6. Mainstreaming culture and development and institutionalization of culture in education and good governance. ANTI-CORRUPTION AND GOOD GOVERNANCE bureaucrat’s lack of autonomy from big economic interests, low pay of civil servants, low social awareness of the deleterious effects of corruption, high tolerance for corrupt practices; and need for greater transparency, integrity and accountability in government transactions 1. Punitive such as lifestyle checks and strengthening the investigative capacity of the Ombudsman. 2. Preventive such as procurement reforms, simplification of procedures in frontline services, opening up government projects. to public scrutiny, and the enactment of the whistle-blower law. 3. Promoting zero tolerance for corruption such as values formation and mobilizing media and civic organization to deliver the message of societal reforms. 4. Bureaucratic reform strategies such as government reengineering under EO 366, rationalizing the pay of government workers, promoting meritocracy through the recruitment of the best and the brightest, and capacity building for the government work force. NATIONAL HARMONY AND SECURITY 1. The Philippine Defense Reform Program 2. Measures to upgrading the capability of the AFP over 6 years 3. Ensuring the observance of the ceasefire 4. Enhancing the ability to fight terrorism CONSTITUTIONAL REFORMS Problems as follows: 1. Obstruction and delay in legislation and policy-making 2. The highly centralized system of government 3. Personalistic politics 4. Lack of accountable and functional political parties 5. Lack of domestic capital resources Constitutional reforms needed are as follows: 1. Shift to a federal form of government 2. shift to unicameral parliamentary system 3. Reforms in the electoral and political party system] 4. Defining political dynasties and make its prohibition self-executory 5. Changes in the restrictive provisions on national economy and patrimony PHILIPPINE SUSTAINABLE DEVELOPMENT (SD) began in 1987 with the drafting of the Philippine Strategy for SD (PSSD) aimed ‘to achieve economic growth with adequate protection of the country’s biological resources and its diversity, vital ecosystem functions and overall environmental quality’ focus on two dimensions: economic and environmental presented at the United Nations Conference on Environment and Development, UNCED, in Rio de Janeiro, Brazil adoption of the national plan of action in The Philippine Agenda 21: A National Agenda for Sustainable Development for the 21st Century (PA 21) by Memorandum Order No. 399 (Philippine Council for Sustainable Development ) SD AXIS Principles of Unity Action Agenda Implementation Strategies PRINCIPLES OF UNITY Primacy of Developing Full Human Potential Holistic Science and Appropriate Technology Cultural, Moral and Spiritual Sensitivity Self-Determination National Sovereignty Gender Sensitivity Peace, Order and National Unity Social Justice Inter-, Intra-Generational and Spatial Equity Participatory Democracy Institutional Viability Viable and Broad-based Economic Development Sustainable Population Ecological Soundness Biogeographical Equity and Community-Based Resource Management and Global Cooperation ACTION AGENDA based on the key concepts of integration, multi-stakeholdership and consensus building, and operationalization to be applied to the 5 ecosystems: - forest/upland - agricultural/lowland - urban - coastal/marine - freshwater ecosystem Two extra sections call for an improved management of biodiversity and mineral resources IMPLEMENTATION STRATEGIES map out the action agenda thru two-pronged strategies: (a) assist the various stakeholders to build their capacities towards SD (b) direct efforts at conserving, managing, protecting and rehabilitating ecosystems managing the transition to SD calls also for interventions across ecosystems: a) integrating SD in governance b) providing enabling economic policies c) investing in human and social capital d) mapping out a legislative agenda e) addressing critical and strategic concerns (population management, human health, food security, human settlements and land use) THE NEDA highest social and economic development planning and policy coordinating body in the Philippines, responsible for providing overall direction and final approval of the national development plans board comprises the President of the Philippines as chairman, the Director-General of the NEDA Secretariat as vice-chairman, and the following members - Executive Secretary and the Secretaries: - Finance (DOF) - Trade and Industry (DTI) - Agrarian Reform (DAR) - Agriculture (DA) - Environmental and Natural Resources (DENR) - Public Works and Highways (DPWH) - Budget and Management (DBM) - Labor and Employment (DOLE) - Interior and Local Government (DILG) - Health (DOH) - Foreign Affairs (DFA) - Science and Technology (DOST) - Transportation and Communications (DTC) - Education (DEPEd) - Governor of the Central Bank - Chairperson of the Philippines Assistance Program NEDA BOARD/COUNCIL NEDA Board is assisted by five Cabinet interagency committees and a cabinet cluster system composed by 8 clusters namely: Agro-industrial Development, Macroeconomy and Finance, Human Resources and Development, Physical Infrastructure Support, Security and Political Development, Development Administration, Water Resources Management and International Relations (UNESCAP 2001, Lotilla 2002) Legislative-Executive Advisory Council established to ensure consistency in coordinating executive development planning and congressional budgeting; integrates environmental concepts, principles and practices into the national development plans and chaired by the President with members of the executive (9), the legislative (8), representative of local government unit (1), private sector (1) and youth (1) - UNESCAP 2001 MORE THAN WEALTH… period of macroeconomic stability and a GNP growing 5% or more for the last 5 years more than increasing wealth as measured by GNP, GNP per capita - social development alongside economic growth, and even development of political systems economic health and growth are generally required to commit sufficient resources toward social development commitment of resources is a matter of national political will, so political systems are germane to national development political stability has an impact on foreign and domestic investment, and prerequisite for a healthy, growing economy economic growth, social development, and political stability are inextricably interrelated UNITED NATIONS MILLENNIUM DEVELOPMENT GOALS (2015) Achieve universal primary education Reduce child mortality by two thirds from 40…to 32 for every 1,000 live births, to 27 for every 1,000 live births by 2015 Improve maternal health and reduce by three quarters the maternal mortality ratio Combat HIV/AIDS, malaria, and other diseases SOCIAL DEVELOPMENT – THE BULWARK UN development goals emphasized economic and social goals, without any mention of political goals politics defined as “who gets what, when, and how” points to the role politics in resource allocation necessary for national development an opportunity to tackle domestic issues such as widespread poverty and inadequate social services which, if not addressed, could threaten political stability, thus disrupting the economy, resulting in further retarded development recent Philippine progress is cause for optimism, various geographic, economic, political, and socio-cultural conditions still present serious challenges to national development KEYS OF SUCCESSFUL SOCIETIES economic inclusion based on full employment social inclusion, reflecting full participation in those activities considered the norm in society successful and continuing adaptation to change as the dynamic expression of competitiveness commitment to the utilization and development of the potential of the Information Society and the promotion of Research and Development commitment to lifelong learning sustainable and balanced development between regions and between urban and rural areas commitment to the further development of the country and international solidarity entrepreneurial culture CRITERIA FOR DETERMINING INDICATORS OF DEVELOPMENT Easily understandable – simple, clear and relatively easy to interpret. This criterion is particularly important if the audience for the indicators includes nonspecialists, such as the general public or media Policy-relevant – relate not only to the three dimensions of sustainable development (economic, environmental and social) but should also be linked to the desired goals within each of these dimensions Focused on priority issues – concentrate on identifying and monitoring priority issues so that the project remains manageable and relevant; more issue-driven rather than data-driven Analytically sound – logically or scientifically defensible and representative of the information they are trying to summarize CRITERIA FOR DETERMINING INDICATORS OF DEVELOPMENT Measurable – feasible in terms of current or planned data availability, bearing in mind cost and resource requirements of data collection and processing Subject to ongoing assessment – open to challenge, discussion and modification, to reflect changing objectives, emergence of new issues and improvements in measurement techniques and data availability CRITERIA FOR DETERMINING INDICATORS OF DEVELOPMENT Manageability - keeping the number of indicators in the 15-20 range; more focused on the importance of sustainable economic, social and environmental development for more generalized understanding Coherence – within (vertical) and across (horizontal) indicators in various categories like economic, social and environmental indicators which strengthen the legitimacy of each of the three categories rather than each set in isolation