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Challenges facing the new government stem not only from the past political crisis, but from social  uncertainties born of successive economic crises. At the core of these uncertainties is deepening poverty. This crippling and unjust condition must be transformed.

    At the heart of the poverty reduction agenda is addressing inequities that make the majority powerless, marginalized and vulnerable. Poverty reduction must be pursued within the overarching frame of social justice, so that policies and programs do not become mere palliatives, but instruments in reducing inequality and promoting sustainable development.

    The Administration made poverty reduction integral to the Medium-Term Philippine Development Plan for 2001-2004. The Social Reform and Poverty Alleviation Act was revitalized and made more effective. Various bodies were set up under the Office of the President to better address the concerns of marginalized groups. These include the Inter-Agency Committee for the Relief, Rehabilitation and Development of Areas Affected by Armed Conflicts in Mindanao (INTERACT-Mindanao), the Office of the Presidential Adviser for Indigenous People's Affairs, and the Cabinet Clusters on Socially Equitable Agricultural Modernization, and on Social Protection. Furthermore, we deferred the Value-Added Tax on certain services.

THE MEDIUM-TERM PHILIPPINE DEVELOPMENT PLAN
   The MTPDP was reformulated to reflect policies to be pursued in the next three years for sustained growth with equity. The goal is to lift some 2 million Filipinos out of destitution and reduce poverty incidence to 28% by 2004. Three strategies will be pursued: to achieve sustained and pro-poor economic growth; to accelerate the equitable distribution of income and assets and strengthen safety nets; and to institutionalize good governance.

    Sustained growth with equity boosts livelihood opportunities. But for the poor to benefit, they must be empowered in mind, body and resources. Hence, the need for asset reform, especially in land and credit, and human development services, particularly health and education. Social protection and security must guard against violence and economic dislocation. To augment the voice of the poor and make the government more responsive to their needs and aspirations, good governance demands greater participation by less privileged groups in decision-making, institution-building and social life.

The government developed a framework for targeted measures in the form of social protection and safety nets. This framework guided the national agencies' discussion of medium-term plans in the preparation of MTPDP, and will inform anti-poverty policies and programs.

SOCIAL PROTECTION AND ASSISTANCE FOR VULNERABLE AND DISPLACED COMMUNITIES
Recognizing that poverty has differentiated impact on various segments of the poor, we focussed our resources on the poor and those in special circumstances - women, children, youth, elderly, people with disabilities, refugees from armed conflicts, and others. The achievements of key departments:

National Anti-Poverty Commission

    A more representative NAPC. The NAPC was reorganized and reconstituted, and an autonomous process of sector representation in the commission was pushed. Anti-poverty programs were reviewed, along with attendant policies of agencies. Given its misplaced targeting and extremely limited impact, we discontinued the Lingap para sa Mahihirap program. We also assessed poverty monitoring tools and identified better ways to get data at national and local levels.

    Credit for all. To make credit more accessible, we reoriented the People's Credit and Finance Corporation toward groups that cater to the poorest of the poor. We also pooled private sector assistance and other financial resources under the Microfinance Fund for Poverty Alleviation.

    Reaching out. The government conducted multisectoral dialogues in at least 15 presidential visits to ascertain and address the concerns of the basic sectors and civil society groups. One result: the President disapproved the MWSS petition to raise billings automatically to compensate for a weaker peso.

Department of Labor and Employment

    Work after war. The Rural Works Program in Mindanao was geared up to quickly help communities affected by armed conflict. We trained, tested and certified for house construction 1,851 rural workers, who eventually built 617 core shelters in Region 12. DOLE also released P1 million for the enterprise and entrepreneurship development program for displaced workers of the National Steel Corporation.

    Protecting vulnerable sectors. DOLE trained 2,433 rural workers, employed women and youth through 74 training cum production activities. It helped 177 sugar workers through livelihood/self-employment, health care, scholarships and capability training. Sagip Batang Manggagawa was sped up to eliminate child labor through rescue, recovery and referral of child workers.

    More teeth for workplace standards. Out of 3,789 establishments inspected, 44.8% were violating general labor or technical safety standards. Correcting such violations at plant site gave 4,403 workers field restitution amounting to P3.5 million. The DOLE also facilitated the award of approximately P61 million to 6,181 affected workers through the disposition of 83 cases.

Department of Social Welfare and Development

    A stronger anti-poverty program. A Presidential flagship and DSWD's major pro-poor program, the Comprehensive and Integrated Delivery of Social Services (CIDSS) addresses basic needs of disadvantaged families and communities in fifth and sixth class municipalities nationwide, urban poor communities and other special groups - indigenous peoples, former MNLF combatants, and communities directly affected by mining and mega-projects. The CIDSS served 270,907 families in 100 urban poor communities and 3,792 depressed barangays in 1,084 municipalities.

    Self-Employment Assistance Kaunlaran (SEA-K). As a community-based micro-finance project under CIDSS, SEA-K aims to enable people's organizations to administer the provision of socialized credit. The government funded 215 SEA-K groups/associations with total seed fund assistance of more than P23 million for productive/livelihood activities of 5,224 families.

Expanded and new programs. The Sagip-Kalinga Program, originally based in Metro Manila, shall soon be implemented in Davao and Cebu City. It removes vagrants, mendicants and children from the streets and provides them with psychosocial services and care. DSWD also expanded the Early Childhood Development projects from 10 to 39 municipalities and cities. For the campaign against domestic and family violence, it organized five additional Barangay Family Councils Against Violence in pilot areas nationwide. The department also launched the Free Legal Clinic for Youth Offenders; its 85 volunteer lawyers have helped 150 young people.

Department of Agriculture

    Assistance for coconut farmers. DA's Coconut Farmers Food Access Program (CFFAP) helped peasants hit by depressed copra prices. The CFFAP's Basic Commodities Access Component exceeded the projected target of 246,555 heads of family or 1.247 million individual program recipients. Through the NFA, 300 rice outlets served at least 7,272 families or about 35,000 individuals. DA also made available 2,275 bags of rice for target program beneficiaries.

    To increase their income, coconut farmers in 300 model sites are being helped to raise other short gestation crops and livestock and put up coconut food (e.g., buko pie, buko pansit, macaroons) and non-food value-adding enterprises in their farms. Some 40 cooperatives with 9,000 members are also assisted in selling copra directly to millers to reduce the 30%-35% gap between farmgate and millgate prices of copra.

    El Niņo programs. With a budget of P51 million, DA emergency programs covered 1.21 million hectares of rice and 420,000 hectares of corn. The department also updated the master list of areas for small-scale irrigation systems for drought-prone areas.

 

FOOD FOR FARMERS

Coconut Farmers Food Access Program beneficiaries, as of April 23, 2001

 

Heads of Family

Individuals

Region

Target

Actual

%

Target

Actual

%

I-IV-B

8,200

13,286

162%

41,000

53,429

130%

IV-A

15,000

25,388

169%

75,000

126,940

169%

V

20,000

13,599

68%

100,000

67,995

68%

VI

13,800

9,090

66%

69,000

45,450

66%

VII

23,800

30,179

127%

119,000

150,895

127%

VIII

32,000

53,646

167%

160,000

268,230

168%

IX

18,700

22,553

121%

93,500

122,381

131%

X

15,800

18,900

120%

79,000

96,076

122%

XI

23,400

23,079

99%

117,000

131,458

112%

XII

10,100

14,369

142%

50,500

89,149

176%

CARAGA

10,800

14,686

136%

54,000

51,650

96%

ARMM

8,400

7,780

93%

42,000

43,458

103%

TOTAL

200,000

246,555

122%

1,000,000

1,247,111

125%

 

Department of the Interior and Local Government

    Water for rural areas. Under the Rural Water Supply and Sanitation Sector Project, 840 Level 1 systems were completed, while 436 Barangay Water and Sanitation Associations (BWSAs) were organized to manage facilities.

    Street Children Nutrition and Education Project. DILG provided 3,384 bags of rice worth P2.8 million to 7,204 street children, 3,956 parents and 88 street educators in the cities of Davao, Mandaue, Lapu-Lapu, General Santos and Legaspi. It released P13.4 million to the cities of Mandaue, Lapu-Lapu and Legaspi for the construction of Social Development Centers, which are venues for educational and other day-care activities of street children and their parents.

Department of National Defense

    Disaster relief. Under the National Disaster Coordinating Council, the AFP assisted in emergency relief operations during calamities, such as flooding and landslides in Surigao del Sur and Agusan del Sur; evacuation of 850 families from danger zones around Mayon Volcano; and rehabilitation of San Andres Bukid barangays after a major fire in Manila. NDCC facilitated the release of P302 million in calamity funds.

    Veterans assistance. The Philippine Veterans Affairs Office (PVAO) processed 7,252 claims for pensions and other benefits, of which 6,905 were approved during the 100-day period. PVAO also settled the monthly pensions of 260,690 pensioners for old age, death and disability, with total disbursement of P2.5 billion, plus 2,854 claims for burial assistance, educational benefits and hospitalization totaling P39 million.

Department of Science and Technology

    Promoting technology innovation. DOST's Science and Technology Intervention Program for the Poor, Vulnerable and Disabled forged partnerships with NGOs, LGUs and other agencies for innovation and instruction in selected pilot poor communities. Under the Urban Community Model of a Food-based Livelihood for the Malnourished in CARAGA Project, the disabled received training, technical assistance and equipment for food processing, leather crafts and the making of orthopedic bikes. It also provided rebel returnees in Mayatba, Famy, Laguna with livelihood assistance.


ADDRESSING INEQUITIES THROUGH ASSET REFORM
The government will increase its capacity to undertake various programs to distribute asset ownership and control more fairly.

Housing and Urban Development
Coordinating Council


    Shelter security and land tenure. HUDCC provided shelter security in various forms to 99,799 families and distributed land titles and lot assignment certificates to 4,243 families. It disposed of five public lands in Quezon City, Pasig City, Las Piņas, Baguio City and Cebu City, benefiting 78,000 families. HUDCC also approved 73 Community Mortgage Program (CMP) projects nationwide for 7,372 families. Major slum upgrading and sites and services programs benefited 7,046 families.

        Housing loans and socialized housing. HUDCC extended housing loans amounting to P439 million, for 3,138 units. It also signed various memoranda on housing projects for 22,300 OFWs, low-salaried employees, military, police and government personnel. A sum of P1 million was released to build an access road to the New Visayas Resettlement Project to benefit 236 rebel returnees. HUDCC also negotiated with Philippine National Railways to lower the price of land proposed to be purchased under CMP in Bajada, Davao City, to benefit 344 families.

 

HOMES FOR THE HOMELESS

Public lands for distribution to qualified beneficiaries

Escopa Property, Cubao, Quezon City – 9,000 families

Quezon Hills, Baguio City – 7,500 families

Barangay Pineda, Pasig City – 7,500 families

Sambag Property of DOH, Cebu City – 24,000 families

CAA Housing Project, Las Piņas – 30,000 families

-------------------------

Total 78,000 families

Major slum upgrading and sites and services programs

Hipodromo slum upgrading project – 882 families

Foreshore slum upgrading project (Ph 1, 2 & 3) – 1,337 families

Bo. Obrero upgrading project – 1,346 families

San Andres/Pasig Line – 3,135 families

Mandurriau Sites and Services, Iloilo City – 346 families

---------------------------

Total 7,046 families

 

Department of Agrarian Reform

    Land to the tiller. DAR distributed titles for 13,006 hectares of land to 10,038 farmers, including contentious private lands like 101 hectares of Hacienda de los Reyes in Barangay Imok, Calauan, Laguna. The department also fast-tracked the resolution of 4,766 cases on implementing agrarian law and 2,503 cases for agrarian adjudication. In areas retained by landowners or not yet distributed, 3,508 hectares involving 1,911 beneficiaries were placed under leasehold operations.

    Support for reform beneficiaries. DAR promoted the development of agrarian reform communities (ARCs) by providing support services such as infrastructure, credit, training, extension services and community organizing. It launched 42 new ARCs in 23 provinces, organized 11,013 beneficiaries into 171 organizations, and conducted training for 25,522 beneficiaries. Infrastructure costing P100 million and basic social services projects totaling P10.35 million were completed, including 31 farm-to-market roads, five irrigation facilities, 17 water systems, and four health service facilities.

National Commission on Indigenous Peoples
Office of the Presidential Adviser on Indigenous People's Affairs


    The creation of OPAIPA. The new Office of the Presidential Adviser on Indigenous People's Affairs oversees the reorganization of NCIP and lays the groundwork for effectively implementing the IPRA law. Further consultations in seven ethnographic areas seek consensus on the process of validating and recognizing ancestral domain and land claims.

    Rights to ancestral domain. NCIP issued two Certificates of Ancestral Domain Claims/Land Titles in two regions, reviewed 10 pending AD claims, and delineated and surveyed 17 ancestral land/domain claims. The issuance of "free and prior informed consent" of IPs was also enabled for projects in their lands.

    Conflict resolution mechanisms. NCIP supported indigenous conflict resolution mechanisms and peace initiatives for intra-tribal cases of arson, adultery, murder and land disputes. It also extended legal assistance and counseling to 375 people in cases of illegal logging and tenurial rights.

    Social and economic support programs. Educational assistance was provided to 699 IP students, literacy activators training to 59 IPs, primary health care to more than a thousand patients, and relief to an equal number.

Department of Agriculture

    Agricultural risks. Recognizing the volatility of the agricultural market, the department extended crop insurance amounting to P232.83 million, which benefiited 10,528 small farmers and fisherfolk.

    Livestock and fisheries assistance. To improve stocks, DA released 57 bucks, 48 rams, 45 ewes and 40 does to small farmers, and intensified vaccination drives to protect cattle and swine against foot and mouth disease. The department facilitated the dispersal of 15.2 million fingerlings for 4,457 fisherfolk, conducted 304 training seminars for 5,542 participants, and provided technical assistance and advisory services.

    Coconut Levy. As a first step to resolving the long- standing coconut levy dispute, the government declared the funds as public in nature. The President suspended Executive Order Nos. 312 and 313, s. 2000 issued by the previous administration, which were seen as inimical to the interests of coconut farmers. Instead, EO 227, s. 1995 and EO 481, s. 1998, issued by then president Fidel Ramos to declare the coco-levy as public funds, are now the operative issuances on the funds.

Department of Environment and Natural Resources

    Handog-Titulo Program. DENR processed 2,542 free patent applications for equitable access to land resources, and prepared 102 Deeds of Sale to bona fide occupants in four barangays in Taguig, Metro Manila.

    Community-Based Forest Management Program. The socially oriented program to make upland communities self-reliant, was reinstituted in 4,828 sites nationwide, covering 5.33 million hectares and benefiting 425,352 households. A total of 49 livelihood projects for upland farmers were implemented.

    Coastal Environment Program. DENR continued managing 78 CEP sites nationwide, covering 555,695 hectares. To protect the environment in these sites, 49 alternative livelihood projects benefiting 1,118 families were implemented.

Land Bank of the Philippines

    Loans for farmers and fisherfolk. New credit for small farmers, fisherfolk and agrarian beneficiaries totaled P1.53 billion in January-February. It benefited 96,717 people through 591 cooperatives and 260 countryside financial institutions.

    Land Transfers. The total CARP transfers approved for payment in the first two months of the Macapagal-Arroyo administration amounted to P376.6 million covering 5,881 hectares of private lands nationwide.


STRENGTHENING HUMAN DEVELOPMENT SERVICES
The government is boosting capabilities for human capital A two-pronged approach is followed: channeling resources to areas and people most in need, and maintaining efficiency and fiscal prudence for cost-effective programs especially for health and education.

Department of Health

    Expanded basic services. The "Garantisadong Pambata" program provides Vitamin A to 7 million children, de-worming treatment to 5 million kids, immunization against measles to 45,000 children, and an intensified salt iodization campaign. Health Passport insurance cards went to 4,311 indigent families in Pasay City and 8,695 in Capiz. DOH also sent 39 physicians to doctorless municipalities and 59 specialists to 39 DOH hospitals, and gave anti-TB drugs to 231,105 patients.

    Ensuring affordability. The department distributed to 30 DOH-retained hospitals low-cost medicines worth P20 million. DOST's 20-Year Herbal Medicine R&D Program produced affordable drugs for tuberculosis, malaria and other respiratory disorders. DOH registered 75,000 new Philhealth members and increased benefits in outpatient services, low-risk maternity care and cataract operation.

    Better care. Infrastructure was improved in several department hospitals and six Maternal & Child Health Centers. DOH set up 18 Rural Health Units and 60 Barangay Health Stations in Pampanga, Bulacan, Zambales, Nueva Ecija and Bataan. It assessed 342 midwives for Philhealth accreditation in five pilot areas. It is assembling a Swedish vaccine plant at the Research Institute of Tropical Medicine in Alabang.

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Department of Education, Culture and Sports

    Better instruction. The restructured Third Elementary Education Project is helping improve student participation and learning achievement, decrease dropout rates in the 22 poorest provinces, and strengthen DECS's ability to deliver education by building classrooms, providing textbooks and school furniture, and improving textbook content and teaching capacity.

    Access to learning. To widen access to education, DECS undertook classroom construction in remote areas, dropout intervention and out-of-school youth programs, school feeding, community learning centers and the Mobile literacy programs. Besides building schools and classrooms, DECS provided secondary tuition fee subsidies and enrolled in private high schools those students not absorbed in public schools.

    Teacher welfare. The Checkless Payroll System now delivers salaries on time to 400,000 teachers. Net take-home pay is up P2,000 a month by restructuring loans, lowering interest rates, giving clothing allowance in cash, acting against illegal contributions, and not deducting withholding taxes during a cash-tight 90-day period. Health services were provided to 52,000 teachers.


GENERATING PRODUCTIVE AND GAINFUL EMPLOYMENT
For sustained economic growth, the government promotes a stable policy climate and a level playing field for business. The aim is attracting investments to generate jobs and other income-enhancing opportunities. At the same time, the welfare of workers is advanced, and ways to address their basic needs are explored.

Department of Trade and Industry

    Job creation. The Board of Investments approved 57 projects valued at P27 billion, with potential for more than 7,000 jobs. The Philippine Economic Zone Authority (PEZA) approved locator investments valued at P11.7 billion, expected to employ 10,079 workers.

    Helping small business. In the first 100 days, 51,000 business name certificates were issued to firms with total capitalization of P111.78 billion. Loans totaling P127.3 million were facilitated to support enterprise productivity and competitiveness, which helps create jobs and raises incomes especially in the countryside.

    Export push. Regional trade promotion activities generated exports of over $393 million, while five DTI-organized trade fairs generated over $11.2 million in orders for 18 Filipino exhibitors.

    Cutting red tape. DTI shortened processing time for applications for registration, tax and duty exemption on spare parts, and issuance of SIRV certifications.

    Credit for the poorest. DTI released a total of P1.5 million to five NGOs, through which it assisted 60 micro-enterprises and generated 240 jobs.

Department of Labor and Employment

    More jobs. Public Employment Service Offices (PESOs) helped 110,505 displaced workers, students, disabled people and other jobseekers find work. DOLE also deployed 231,458 Filipinos to 183 destinations abroad, 10% above target. Job fairs and computerized job-matching served more than 17,000 applicants.

    Innovative financing. DOLE designed schemes for banks to lend to farmers and other rural entrepreneurs. Some P123.9 million was secured for the Innovative Financing Scheme (IFS), in addition to P278 million in DA funds lodged with the Land Bank. About P23.4 million was lent to farmers, fisherfolk, retailers and other countryside entrepreneurs.


PURSUING PEACE AND DEVELOPMENT IN MINDANAO
A just and enduring peace is indispensable to stability and progress. The government will end internal armed conflicts through a comprehensive peace process, and shall promote the rehabilitation and development of strife-torn areas. Thus, the following initiatives were carried out:

Talks with the MILF

    In contrast to the all-out war policy of the previous administration, the MILF and the CPP/NPA/NDF were invited to conduct negotiations toward a comprehensive and lasting solution to the causes of armed conflict.

    To pave the way for peace talks and immediate rehabilitation and development projects in conflict areas, the government ordered the Suspension of Military Operations (SOMO) vis-a-vis the MILF. The MILF has reciprocated with its own SOMO. Both parties have agreed to undertake relief and rehabilitation measures for evacuees, and joint development projects in the conflict-affected areas. They have also committed to negotiate with sincerity and mutual trust, justice and freedom, and respect for the identity, culture and aspirations of all peoples of Mindanao.

Talks with the NDF

    As part of confidence-building measures, the government declared a SOMO with communist rebels. This helped obtain the release of Army Major Noel Buan. The government also reinstated safe passage for the NDF negotiating team, released 73 political detainees, and conducted a Solidarity Conference for a Just and Lasting Peace to strengthen the commitment of both parties to the peace process. The peace talks between the GRP and the NDF resumed in Oslo, Norway, on 27 April leading to a consensus on implementing the human rights accord.

    INTERACT Mindanao. Executive Order No. 2 created the Interagency Committee for Relief, Rehabilitation and Development of Areas Affected by Armed Conflicts in Mindanao, or INTERACT Mindanao. Chaired by the Presidential Adviser on the Peace Process, INTERACT Mindanao will coordinate, integrate and implement relief, rehabilitation and community-based development efforts in areas affected by armed conflicts.

    INTERACT Mindanao has formulated the Peace and Reconstruction Imperatives for Mindanao or PRIMED, which identifies the programs and projects the government will undertake as confidence-building measures in Mindanao. PRIMED also addresses the marginalization or social exclusion of Muslims and Lumads.

    Infrastructure repair and rehabili- tation. The AFP Corps of Engineers undertook repair and rehabilitation of various infrastructure in Mindanao areas affected by armed conflict under the "Tulong Kapatid" program of the NDCC. Meanwhile, the DSWD brought 2,000 families back to their home areas and started the process of reintegration into the mainstream of society. It also released some P50 million for relief augmentation of families in evacuation centers in Mindanao.

    Projects for peace. The President approved an initial P40 million to jumpstart projects to promote peace in Mindanao: land titling for Muslims, livelihood and horticultural assistance, and construction of Muslim cemeteries.

    The Mindanao Sustained Peace and Development Plan. As head of the Mindanao Coordinating Council-Technical Committee, NEDA oversaw the formulation of the Mindanao Sustained Peace and Development Plan. It has two components: the Framework for Sustained Peace and Development, and the Mindanao Investment Program. Major planning activities so far include work on the Strategic Action Plan for Immediate Relief and Short-Term Rehabilitation of Conflict-Affected Areas of Mindanao, and focus group discussions with Mindanao stakeholders.

    Provided relief and rehabilitation to families. Medical and dental support was provided, along with psychosocial services, and referral for minor surgery to about 48,000 families within and outside evacuation camps.

 

Project

Location

10 Mosques, P3.38 million

Lanao del Sur/Maguindanao/ Cotabato

46 School Buildings, P9.24 million

Lanao del Sur/Maguindanao/ Cotabato
Two Municipal Halls, P0.74 million Buldon/Matanog/Maguindanao
37 Community-Based Convertible Structures, P5.56 million Lanao del Norte and Sur/ Maguindanao/Cotabato
Two Roads (1.64 km),

P27.29 million

Maguindanao and Cotabato City
One Runway (9.2 m2), P11 million Jolo, Sulu
One Perimeter Fence

(835 bays), P2.75 million

Jolo, Sulu
One Circumferential Road (6.5 km)

P6.49 million

Basilan Province
One Housing Site Development,

P13.67 million

Basilan Province

Total: P80.12 million

 

Source: Department of National Defense, Armed Forces of the Philippines  


WINNING AGAINST POVERTY
The war against poverty is not won in a single battle. Neither is victory accomplished through palliative measures. Structural problems that have perpetuated decades-old social inequality need to be addressed squarely. Within the limits of economic, political and institutional constraints, we have - in the first 100 days - taken major steps toward winning the war against poverty. This has laid the foundation for bigger successes against poverty in the next three years.

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