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From Day 1, the Macapagal-Arroyo Administration has been bold in its ambition for the Filipino, definite in its direction and swift in its action. Under the President's leadership, priorities have been identified, policies defined and implementing mechanisms set in place to achieve the government's vision. Clearly, the accomplishments in the first 100 days show concerted efforts by the entire bureaucracy to push the Administration's agenda, especially for the poor.

Commitment to the Four Core Tenets

    At the President's inaugural on January 20, she made a commitment to a governance program anchored on four core tenets. In her view, high moral standards in government and society are necessary as a solid foundation for good governance. Moreover, to implement true reforms, a new politics based on policies, programs and consultation with the people has to evolve. And only through leadership by example can the government cultivate a work ethic and a dignified lifestyle among all public servants. Ultimately, good governance, new politics and leadership by example shall help win the war against poverty within this decade.

    In the first 100 days, the groundwork has already been laid for a marked improvement in the quality of life of the Filipino in the next three years. The poor, in particular, deserve the chance to assume responsibility for their well-being and seize opportunities for growth and development. When measured, this goal should translate into a reduction in poverty incidence to 28%. That would amount to 2 million Filipinos lifted out of destitution by 2004.

Confidence in Government

    In this light, the first order of business of the Arroyo government was to restore confidence in government. Restoring stability, after the political crisis and economic breakdown caused by the misdeeds of the Estrada presidency, demanded concerted action from Day One. Specifically, it was urgent to unify the nation anew and address its burgeoning budget deficit and other economic woes. A solid foundation for poverty reduction and sustained growth also had to be laid.

    The selection of the Cabinet and other key officials of known probity and high moral standards signaled that the Administration meant business. A 100-day plan was at once put into action. Immediately, projects with wide impact were launched. Consultations were instituted to get the people's views on a broad range of issues. Summits on employment and the garbage problem were convened.
Further, other avenues for public interaction with the President were opened. The Text GMA project, Sundays at Malacanang, visits to far-flung areas, numerous meetings and dialogues, and the President's day at the Presidential Action Center (PACE) enabled the people to reach out to her and vice-versa. The government continued to touch base with all sectors in the hope that each will work toward the attainment of the country's goals.

    As a result, stability was achieved without mass purges and undue interference in the courts or Congress, without muzzling dissent and compromising human rights and democratic institutions. And without compromising justice. The arrest of the former president Joseph Estrada and his son Jinggoy on plunder charges shows that justice can still be served.
   
    Meanwhile, avenues for peace with the MILF and the NDF/CPP have been opened. Seeing the peace process to fruition is of utmost importance, for only with sustained peace can development move forward. Bringing peace and development to Mindanao continues to be a main preoccupation of government.
Economic Recovery
   
    The revival of the economy is on the way. Although this task will take longer than setting up a government, promising strides have been made. The revival of business confidence has largely stabilized the peso and is luring capital back. Foreign investors have taken an interest in the Philippines anew. Foreign equity investments soared to P600 million in the first month of the Administration, up 162% over a year ago. The Bangko Sentral estimates a net inflow of $23 million from January 1 to March 9, reversing a net outflow of $143 million a year ago. Likewise, the Securities and Exchange Commission registered 1,410 new corporations from February 1 to mid March with authorized capital of nearly P20 billion, 63% more than a year ago.

    A generally accommodative monetary policy has kept inflation low while providing sufficient liquidity to spur economic growth. Inflation stabilized at a steady rate of 6.7% from March to April, within the govern-ment's target of 6% to 7% for the whole year.

    As banks remain the major source of financial services to various sectors, including poor and low-income households, authorities continue to implement reforms through the General Banking Law of 2000, toward streamlining the system, enhancing competition, improving transparency, allowing greater foreign ownership, and promoting electronic banking.

    The economic team is taking steps to bring the budget deficit down to P145 billion for the year while maintaining a level of spending necessary for sustainable growth and poverty alleviation. Innovative measures are being implemented to raise money and cut expenses. Small-denomination Philippine bonds are being issued. Luxury cars and other extravagant government assets, such as the Ang Pangulo yacht, the Mansion House golf course in Baguio, will be sold.

    Aggressive tax collection mechanisms will be implemented. The Lateral Attrition Bill will be pushed in the next Congress to give incentives for collection agents at the BIR and Customs. But fiscal prudence shall not mean slashing essential services to the people.

The War on Poverty

    At the heart of the government's agenda is addressing social inequities born of disempowerment, marginalization and vulnerability of the majority of Filipinos. First, an anti-poverty strategy has been formulated based on the core thrusts of asset redistribution, human development services, participation in governance and institution-building, protection from violence and increasing livelihood opportunities.

    In addition, developing a holistic poverty reduction strategy has also been made the overarching thrust of the Medium-Term Philippine Development Plan. Third, steps have been taken to revitalize the Social Reform and Poverty Alleviation Act and make it more. Existing anti-poverty programs have been strengthened and new ones launched to boost the government's ability to fill health, education, housing, welfare and development needs. All these policies and more aim to lift some 2 million Filipinos out of destitution and bring down poverty incidence to about 28% by 2004.
   
    The war on poverty is a daily battle, as the government and citizens, including the poor, try to open avenues and enable the poor to take care of their well-being. Victory can never be won through palliative measures. Rather, each individual has to first put his house in order. That is the biggest challenge to everyone, including the government.

    For the next three years, the Administration would have to face five major challenges. First, in light of limited resources, fiscal prudence must be practiced, balanced with the need to deliver services and programs for the poor. Innovative financing and efficient targeting of services have to be studied. Revenue generation should be intensified to tame the deficit and still fund development projects.

    Second, better services for the poor do not completely resolve the poverty issue. There must also be equity in the distribution of services, as well as social reforms, particularly asset redistribution. Third, harnessing the collective energies of all stakeholders, including civil society and the public at large, is necessary to enable government leaders to become rooted in the sentiments and concerns of various constituent sectors. Consultations need to be institutionalized.
    Fourth, the government must not only welcome the fruits of globalization, but also recognize its adverse impact on marginalized sectors. Thus, the nation can adopt a healthy mix of policies and programs that safeguard every citizen's right to a decent living even as economic competitiveness is promoted. Fifth, the core values of good governance, new politics and leadership by example must reach the lowest rung of government and be the guidepost in the conduct of every public servant.

    Mechanisms to address these challenges are in place. The Cabinet and the five Cabinet Clusters on priority programs serve as the means to resolve bottlenecks and push forward the President's anti-poverty agenda. Weekly Cabinet meetings ensure that emergent issues and concerns are promptly addressed and efforts are orchestrated toward desired goals. The Cabinet Clusters on Socially Equitable Agricultural Modernization, Public Services, Safety Nets, Tourism and Information and Communications Technology push the President's agenda in their priority areas.

Legislative Agenda for Re-Energized Government

    The Cabinet Clusters will also work and lobby for bills necessary to attain the government's agenda for the people. Aside from allowing different agencies to discuss and resolve inter-agency concerns, the clusters are also a venue for civil society to participate meaningfully in governance. Among the priority measures on the Administration's legislative agenda are:
  • Supplemental Budget of P10.9 billion for 2001, to augment priority measures not sufficiently covered by the re-enacted budget. Among them are salary upgrades for PNP uniformed personnel, higher veterans' pensions, a 5% salary increase for national government employees, and funding for foreign-assisted projects.
  • Power Sector Reform Bill, to restructure the power industry, increase its efficiency, and privatize the National Power Corporation, thereby reducing power costs and generating much needed revenues for government
  • Amendment to the Central Bank Act, to strengthen the Bangko Sentral's supervisory and enforcement powers
  • Sustainable Management of Forest Resources, to provide for, among others, the adoption of a sustainable forest management strategy, a permanent ban on commercial logging in certain protected forest lands, and the creation of a Sustainable Forestry Development Fund
  • Plant Variety Act, to establish a National Plant Variety Protection Board and institutionalize mechanisms to protect and employ new and high-yielding plant varieties. The proposed measure also aims to comply with certain provisions of the WTO-TRIPS pact.
Moving Forward As One Nation

    During her inaugural, the President acknowledged that the task ahead is formidable and only if the nation is one in priorities, values and commitments can we achieve our goals. The eruption of anti-government protests, which culminated in the May 1 assault on Malacanang, underscores both the imperative to end the mass poverty enslaving the bodies and spirits of countless Filipinos, and the danger posed by divisive forces exploiting the desperation of marginalized sectors.

    Clearly, the government and the citizenry must come together in common cause for real, equitable development, not destructive class war. First, we must heal and build together as a nation. Then we can march forward together and live up to the ideals of true People Power.

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