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Office of the President of the Philippines

Na tional Anti-Poverty Commission at

NATIONAL ANTI-POVERTY PROGRAM


(2010-2016) Part 2
The poverty program of the Aquino administration is a response to two major challenges: the abject failure of anti anti-poverty poverty work under the Arroyo administration and the organizational challenges of maximizing anti-poverty anti efforts with limited public resourc resources. es. In response to the first challenge, Pantawid Pamilya has been designed to provide substantial assistance to the largest possible number of poor people in the shortest possible time. A carefully designed framework maximizing the convergence of economic programs and local initiatives answers the second challenge. Given the enormity of the tasks ahead, this program will remain, for some time, a work in progress, but one that already diverges substantively from past practice. The Aquino administrations first first budget, the 2011 Reform Budget, established its firm commitment to anti-poverty anti poverty work. The social services sector has the largest allocation with at least 34.1 percent of the budget, substantially larger than the next largest allocation, economic services, services, which received only 22 percent. Infrastructure has been cut from Php 165.1 billion in 2010 to Php 148.2 billion. The relatively smaller budget for economic services (notably for the Department of Agriculture and the Department of Public Works and Highways) Highw will be offset by more strategic support for public-private public private partnerships, which will be directly incorporated into the budget. The largest departmental budget increase is for the Department of Social Welfare and Development (DSWD) at 122.9 percent. T The he DSWD allocation for Pantawid Pamilya is Php 21.2 billion, more than double the Php 10 billion allocated in 2010. Another Php 8 billion has been budgeted for various hunger and nutrition programs, for the Supplemental Feeding Program, Food for Work for Internally I

Displaced Persons, while Php 4.234 billion has been budgeted for the Rice Subsidy program alone. Other major DSWD programs include SEA-K and KALAHI-CIDSS. The supply side allocations for Pantawid Pamilya include: Php 12.4 billion for classrooms, 57 percent higher than that allotted in 2010 and more than triple the 6,000 classrooms normally constructed yearly. Php 1.8 billion for the purchase of an estimated 32.3 million textbooks in 2011. Php 1.6 billion for the creation of 10,000 teaching positions to meet the ideal ratio of 5:3 teachers to classes. More than double the allocation for the upgrading of health facilities from Php 3.2 billion in 2010 to Php 7.1 billion in 2011. Some Php 3.5 billion for the Health Insurance Premium of 4.6 million indigent families.

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I. ANTI-POVERTY THRUSTS
The poverty reduction strategy of the Aquino administration will be anchored on efforts to reduce poverty incidence to 14.2 percent, which is the MDG target. Given the expectation that growth in 2011 and subsequent years may be more moderate than was experienced in 2010, it is likely that economic growth will not adequately reduce the headcount index to this target. If the social services allocation of 34.1 percent of the budget cannot be significantly increased in subsequent years, poverty gains will have to be achieved through greater efficiencies in programming. The extent and depth of poverty is such that the initial thrust of anti-poverty programs will be to reduce the burden of poverty -- to provide income, food, education and health services, as well as jobs, so the poor can provide for themselves. But government anti-poverty programs will be designed to build capacity and create opportunities for the poor in the course of reducing the burden of poverty. The first priority is to provide the basic income, food and nutrition, health and education needs of the poor. The program thrusts of this administration will be the following: Focus on the poorest of the poor. Our anti-poverty interventions are focused towards expanding access of the poor to basic social services, especially education, health and family planning services; providing risk mitigation; and expanding social protection programs so poor households can cope better with economic, social and natural disasters. These will also entail the expansion of economic and social opportunities for the poor so they can increase their incomes and build their assets. Asset reform programs will also be undertaken to ensure redistribution of resources to the poorest of the poor. Focus on poorest areas. We will focus on the poorest regions and provinces so that those who are especially in need of public support can be provided with the mechanisms to improve their lives. Focus municipalities will be from the poorest regions and those with the largest concentrations of the poor in densely populated provinces. We will incorporate projects that address the vulnerabilities of the poor and marginalized, especially those affected by social conflict and environmental disasters, into our anti-poverty programs.
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Peoples participation and empowerment. Peoples participation in governance can make poverty reduction work more effective. People empowerment is the antidote to old-style patronage. But people empowerment can do more than help improve the material conditions of poor peoples lives. Poverty deprives people of their dignity and the incentive to make efforts to improve their lives. Civil society organizations and social movement groups will be mobilized to organize the poor. We will continue to expand programs that emphasize community-driven development strategies, such as the Kapit Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHICIDSS). Rationalization of anti-poverty reduction programs. At the same time, we recognize the importance of streamlining and coordinating government antipoverty programs, not only to reduce inefficiency and duplication, but also to improve the effectiveness of each program. In 2009, there were an estimated 66 programs that responded to the needs of the poor. This multiplicity of programs tends to result in poor coordination, as well overlapping and double counting of program beneficiaries, which reduces the effectiveness and efficiency of antipoverty programs over-all. We will systematize existing anti-poverty programs and build new programs, given existing gaps in anti-poverty interventions, especially in the areas of hunger and disaster relief and mitigation. The National Anti-Poverty Commission (NAPC) will be the primary agency overseeing the convergence of these anti-poverty programs. We will ensure that there is coordination of different anti-poverty efforts among national government agencies, non-government organizations and private organizations in targeted communities and sectors. Strengthening targeting and monitoring mechanisms for poverty reduction. We will encourage the use of data-based mechanisms, such as DSWDs National Household Targeting System for Poverty Reduction (NHTS-PR). We will use the NHTS-PR, which is already being utilized for the Pantawid program, as the single national targeting system for key social protection programs such as the
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PhilHealth Indigent Program. We will ensure the coordination of existing antipoverty databases being undertaken by different national government agencies so that the planning and implementation of anti-poverty programs can be better harmonized. We will further ensure that monitoring and evaluation mechanisms will be integrated into these programs. And we will encourage local government units through training and funding support to use Community Based Monitoring Systems (CBMS) so that they can better monitor the effectiveness of their respective programs. We will continue to track our progress in terms of reducing income and capability poverty by regularly tracking poverty incidence and severity at the national, regional and provincial level, using Millennium Development Goals (MDG) and Human Development Index (HDI) indicators. Reforms in existing statistical systems will also be encouraged so more data on marginalized groups, such as the workers in the informal sector, will be available. Institutional aspects of poverty reduction. We recognize the importance of buttressing anti-poverty programs with governance reforms, which will need to be undertaken across the bureaucracy and in the other areas of governance. Participation of the poor in policy making. We will ensure that the different government bodies representing marginalized sectors are strengthened by providing them with the necessary resources for their operations. We will also encourage a more transparent selection process for their representatives so the voices of these sectors can be heard across the bureaucracy through effective and democratic leadership. Support for local government initiatives. Local government capacities to reduce poverty will be strengthened. We will improve the system for providing incentives to better performing local government units (LGUs) to fund their poverty reduction programs, strengthen inter-LGU systems to coordinate their projects, and advocate the use of poverty indicators in planning and measuring their progress toward poverty reduction.

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Corruption and poverty. Anti-corruption work in both the revenue generation and expenditure sides of government will generate additional revenue for propoor programs. Collecting taxes is also a form of asset reform to the extent that tax reforms succeed in collecting more from those with higher incomes and from the assets of the rich. This asset reform is clinched when the national budget is realigned towards social services. Anti-corruption reform should then be extended to promote innovation and entrepreneurship, discourage rent seeking, and minimize political intervention in business. Political Reforms. The government must be able to reform its institutions so they can initiate and implement key economic reforms without undue influence from vested interest groups. It should guarantee independence and objectivity (i.e., stop regulatory capture) of its regulatory institutions. It should further enforce a comprehensive competition policy. We will ensure maximum transparency in the planning, implementation and monitoring of programs. This will facilitate civil society participation in monitoring programs through a selected number of social accountability instruments. As a corollary to this, we will re-file and work towards the passage of the Freedom of Information law. We will extend the spirit of voluntarism during the campaign by engaging business and the private sector in government programs. We will encourage the People Power Volunteers for Reform (PPVR) and organized sectors at NAPC to participate in the localization of anti-poverty programs. Resource Generation. The financing of anti-poverty programs will be carefully studied. The rationalization of existing programs, with an eye to cutting leakage, should provide additional resources. Closing the funding for programs with very little impact and realigning NFA expenditures alone would produce tens of billions of pesos. We will tap overseas development assistance, both grants and lowinterest loans, to fund our major anti-poverty programs. We will also support reforms that increase public resources, especially the reforms that reduce inequality in incomes across economic sectors. Reforms to increase the excise taxes on alcohol and tobacco products and that rationalize fiscal incentives enjoyed by private corporations will be advocated.
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Communications Program. The program should have a carefully worked out communications plan. It is not enough that beneficiaries know what the government is doing for them. The general public should also be informed in order for us to achieve maximum political benefit and so that they can participate in the implementation of these programs. Gender aspects of the anti-poverty strategy. The poverty reduction framework recognizes important gender concerns and issues, and highlights the important role of women as actors in anti-poverty work as recommended in past antipoverty plans (Ofreneo and Acosta, 2002). The following gender objectives will be incorporated into poverty work: a) adopting macroeconomic policies that address the needs and efforts of women; b) ensuring womens equal rights and access to economic resources; c) strengthening the efforts of women to access savings and credit mechanisms; and d) developing gender-based methodologies and conducting research on women in poverty. Environmental aspects of the anti-poverty strategy. Specific programs should be designed to reduce the impacts of environmental changes on the poor, who suffer disproportionately from climate change.

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II. STRATEGIES
Strengthening the pro-poor response of economic growth. Rapid economic growth is a necessary, but insufficient, condition for poverty reduction. GNP grew on the average by 5% during the period 2000-2009 but poverty incidence actually increased. From 2003 to 2009, GNP per capita grew by 23.8 percent, from Php 14,307 to Php 17,725, but average family income declined by 0.8 percent, from Php 130,000 to Php 129,000 (see Table 19 below).
Table 19. Changes in Average Family Income and Expenditures and GNP and PCE per capita, 2003- 2009 Component 2003 2006 2009 2003- 2009 change Average family income 130,000 125,000 129,000 -0.8% Average family expenditure 109,000 107,000 110,000 +0.9% GNP per capita 14,307 15,997 17,725 +23.8% PCE per capita 10,425 11,495 12,467 +19.6%
Note: GDP is gross national product. PCE is personal consumption expenditure. Source: National Statistics Coordination Board; National Statistics Office.

Poverty reduction can be accelerated in two ways, through more rapid economic growth and/or by improving the impact of economic growth on the poor. The latter can be done by undertaking the following: a) Creating productive employment opportunities. The growth strategies of the government will ensure that broad-based economic opportunities are available to all Filipinos. In particular, there will be an emphasis on the development of enterprises that provide the highest value-added to agricultural outputs. Infrastructure development, including the provision of farm-to-market roads and public markets, would be a key component in this regard. b) Increasing agricultural productivity. Since 70 percent of the poor live in rural areas, raising the output of farms and farm-based enterprises is critical. The provision of irrigation, credit and the dispersal of modern technology through training and education are important factors to raise incomes in rural areas. c) Facilitating economic diversification, especially in rural areas. Households in many towns and municipalities are reliant on one or two
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types of economic enterprises. There should be a concerted effort to promote diversification so that households will not be affected by the vagaries of price changes of a single commodity. We will focus on modernizing agriculture because that is where the largest number of our poor work. We will shape the governments infrastructure program to serve these industries. All departments and agencies of the government will be instructed to examine policies and programs from a pro-poor perspective. Income distribution in rural areas has worsened. Redistribution is therefore a necessary priority for this administration. As many studies, particularly the World Bank (2006) have noted, the best policies for poverty reduction involve the redistribution of opportunities to the poor as this allows for the reform of policies and institutions that strengthen property rights, which in turn enhance the functioning of markets. At the same time, equity allows growth to be sustainable. More specific aspects of these strategy components are the following: Promotion of agricultural growth. As De Dios (1993) has noted, growth impacts on poverty reduction if the production factors and resources that are enhanced are those owned by the poor, or if the returns on these outputs increase with growth. However, in the past, growth strategies adversely affect the productive resources of the poor by constraining returns on labor and agricultural products. Poor Filipinos tend to be concentrated in rural areas and in agriculture, have less access to basic services, lower levels of education, and larger families. Regrettably, the sector pattern of growth since 2000 has been biased against agriculture and toward sectors that are least intensive in the use of labor. Although agricultures contribution to GDP is small, it has a significant contribution to job creation. Ensuring a bias for labor-intensive production technologies. We will promote public and private projects that are biased towards the usage of the main productive resource of the poor, which is labor. We will focus on

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the development of enterprises that are labor generating and undertake the necessary research to accomplish this. Tourism as a component of the anti-poverty strategy. The growth potential of sustainable and gender-sensitive tourism is large as it will also help sustain and conserve natural resources, in addition to providing employment for the poor. It is also in tourism where the potential for job generation and small-scale entrepreneurship tends to be greatest. Consideration of local characteristics for poverty reduction strategies. Area-specific strategies for poverty reduction will be studied. We recognize that there is no one size fits all strategy for poverty reduction. In some areas, there will be an emphasis on the development of land-based resources, but in other areas where the level of urbanization has been dominant, we will emphasize human resource development. Maximizing the opportunities in the domestic and international economy. We need to revisit the export-oriented policy regime from the vantage point of agricultural growth and international trends in the aftermath of the 2008 international financial crisis. At the same time, while liberalization has advanced competition and strengthened efficiency in some industries, we will closely calibrate our tariff and competition policy to maximize benefits for the majority of our citizens. Small and medium scale enterprises. SMEs, especially social enterprises, are the main generators of jobs in the country, especially for the poorer sectors. But they lack access to credit and finance, to markets and to technology so that they can connect to the global economy. We will not only encourage microfinance, we will also harness the remittances of our overseas workers by creating financial instruments that can attract remittances and be channeled to the rural sector. For market and technology access, we will encourage the private sector to link up with local firms, using information exchange, by giving the private sector appropriate incentives.

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III. PROGRAMS
A. DIRECT SUBSIDIES. Providing the poor with direct interventions across sectoral and geographical lines is, in terms of budget allocations, the most important component of the anti-poverty program. The programs under this strategy include Pantawid Pamilya, a conditional cash transfer program; subsidized PhilHealth coverage for indigents; a cash transfer program for poor senior citizens; and various hunger mitigation programs. 1. Expansion of the existing Pantawid Pamilyang Pilipino Program (4Ps). The 4Ps provides cash transfers (CCT) to the poor conditioned upon: (a) their children attending school and (b) their use of preventive health care, including reproductive health care and nutrition services. There is already a programmed increase from 700,000 families at the time of the transfer to the Aquino administration in July 2010 to 1 million by the end of 2010, and 2.3 million by the end of 2011. This is expected to meet the needs of all 1.8 million families below the subsistence threshold. We will target full coverage to families below the income threshold by the end of 2016 to 4.7 million beneficiary households. The budgetary requirement for this program, the full cost of which would reach around Php 50 billion per year, is likely to be available from ODA and IFI sources. The program aims to reduce inter-generational poverty by providing health and education services to children of poor families. According to studies undertaken by foreign donors, the CCT is expected to reduce poverty incidence in targeted areas by 6.1 percentage points (World Bank, 2009). The minimum amount that a qualified household will receive in exchange for fulfilling certain education and health conditions is Php 9,000 a year (with one child who is at least 3 years old) and the maximum is Php 15,000 (with three children up to age 14). The latter amount represents, based on 2006 family income data, an additional income of almost 50 percent for families in the bottom decile, almost 30 percent for those in the second lowest decile; and almost 25 percent for those in the third lowest decile.

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In 2009, a family of five needed Php 4,869 monthly income to meet food needs and Php 7,017 to meet their food and non-food needs. The Pantawid Pamilyang Pilipino provides a subsidy of Php 1,400 for a family with three children in school.
Table 20. Pantawid Pamilyang Pilipino Program Regional Allocation. 2010 # of HH % of HH to Budget Allocation % Share in Poverty Beneficiar the Total # of the Total Incidence ies Beneficiaries Budget (2008 NSCB) ARMM 193,080 14.82% 16.39% 55.3 1,468,681,650.00 CARAGA 61,652 4.73% 5.43% 45.5 486,291,360.00 Region VIII 89,850 6.90% 5.20% 40.7 466,106,460.00 Region V 177,374 13.61% 14.84% 41.8 1,329,996,660.00 Region IV-B 74,843 5.74% 6.60% 43.7 591,253,140.00 CAR 9,691 0.74% 0.61% 28.8 54,862,050.00 Region I 10,238 0.79% 0.60% 26.2 53,538,210.00 Region II 9,589 0.74% 0.48% 20.5 43,365,300.00 Region III 2,218 0.17% 0.20% 16.8 17,899,260.00 Region IV-A 65,048 4.99% 4.58% 16.7 410,044,680.00 Region VI 135,582 10.40% 8.67% 31.1 776,770,410.00 Region VII 93,778 7.20% 6.55% 30.8 586,876,080.00 Region IX 68,021 5.22% 6.34% 40.2 567,939,300.00 Region X 124,886 9.58% 10.22% 36.1 915,417,810.00 Region XI 61,923 4.75% 4.29% 30.6 384,287,640.00 Region XII 125,326 9.62% 9.01% 33.8 807,797,820.00 GRAND 1,303,099 TOTAL 8,961,127,830.00 Region
Source: Department of Social Welfare and Development

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In Table 20 above, the five regions where the program is concentrated (in terms of the number of beneficiaries and budgetary allocation) have the highest poverty incidence; this includes the Autonomous Region for Muslim Mindanao, CARAGA, Eastern Visayas, Bicol Region and MIMAROPA. Table 15 below shows the number of beneficiaries of the program from 2008 to 2011.
Table 21. Pantawid Pamilyang Pilipino Program Beneficiaries, 2008- 2011 Number of Female Children 0- Children 3-5 Children 6-14 Pregnant HHs Grantees 2 years old years old years old Women 2008 333,915 294,179 44,604 188,111 585,963 16,280 2009 288,263 267,354 76,908 160,872 484,924 8,752 2010 350,000 238,378 90,210 155,161 466,831 11,060 Subtotal 972,178 799,911 211,722 504,144 1,537,718 36,092 2011 (est.) 1,303,099 1,072,194* 283,053* 675,750* 2,061,144* 48,377* Total 2,275,277 1,872,105 494,775 1,179,894 3,598,862 84,469 HH Set
Source: Department of Social Welfare and Development

2. Other cash transfer programs. We will enhance the cash transfer program for senior citizens under the Senior Citizen Act of 2010 by developing mechanisms to pinpoint the neediest. However, this may entail revisiting the value-added tax discounts granted to the elderly. We will also examine the possibility of support programs for other socially marginalized sectors. 3. Consolidation and expansion of the various hunger mitigation programs. In December 2009, the proportion of families experiencing involuntary hunger rose to a record high of 24 percent (about 4.4 million families). There are several government hunger mitigation programs that are vulnerable to corruption and, given the scale of the problem, ineffective. Operationally, all program efforts should be concentrated in municipalities and barangays, and we will explore the possibility of using the NHTS-PR to target households for food assistance. We will continue the feeding programs in schools and day care centers in areas that have a high level of malnutrition, and will explore increasing financial subsidy to these programs beyond the Php 7.9 billion budgeted in 2011. The intervention will be sustained for six years to reverse the tide of hunger among poor families.

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B. DIRECT SERVICE DELIVERY. Another strategy of the anti-poverty program is the provision of the full requirements of basic education, health and nutrition, shelter, water and sanitation for the poor that can help build their assets. Specific components of this strategy are the following: Addressing critical educational needs. We will ensure that resources are devoted towards basic education so that we will achieve universal enrollment (100 percent participation rate) in basic education by 2016. Some of the critical infrastructure bottlenecks include: school facilities, teacher positions, textbooks, and the provision of training and scholarship programs for poor but deserving underprivileged students. At the same time, several measures will be undertaken to ensure that there is a strong focus on the education sector in the countryimplementing a 12 year-basic education cycle; review and restructure the content and delivery of curriculum; addressing issues concerning teacher training, textbook procurement and classroom construction; strengthening management at the national and local levels; and ensuring participation of the community in the implementation of the program. As stated above, the 4P program and breakfast distribution program will complement these educational reforms. In addition, there will be continued emphasis on vocational and technical education; its entrepreneurial component will be enhanced since the employment rate for voc-tech education has been below target.
Table 22. Education Indicators and Targets, 2009/10 to 2015/16 INDICATOR ACTUAL TARGET (2009-2010) (2015-2016) Participation Rate 85.01% 98.10% Cohort Survival Rate 74.38% 84.67% Completion Rate 72.18% 81.04%
Source: Department of Education; National Economic and Development Authority

Universal Philippine Health Insurance Program (PhilHealth) coverage for all Filipinos. We will expand the Philippine Health Insurance Program towards universal coverage in order to provide the poor with financial protection against illness and make the public health system more sustainable. We will enroll more than 5 million indigents in the PhilHealth indigent program and
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prioritize the expansion of the sponsored program to poor households in ARMM, Zamboanga Peninsula (Region 9), Eastern Visayas (Region 0), Bicol (Region 5), MIMAROPA (Region 4-B), SOCSARGEN (Region 12) and CARAGA. Part of the PhilHealth reserves will be utilized to upgrade government hospitals and other health facilities in these 7 regions so these can be accredited by PhilHealth. To complement this program, we will: i. Build additional health centers required for increased demand; ii. Upgrade health facilities including hospitals and health centers.
Table 23. Health and nutrition indicators and targets, 2010 to 2016 Indicator Baseline Target (2016) Proportion of underweight children 0-5 26.2% (NNS 2008) 17.25% years old Under-five mortality rate (per 1,000 live 34 (NDHS 2008) 26.7 births) Infant mortality rate (per 1,000 live births) 25 (NDHS 2008) 19 Maternal mortality ratio (per 100,000 live 162 (FPS 2006) 52 births) Proportion of births attended by skilled 62 (NDHS 2008) 70% health professional Contraceptive prevalence rate (modern 34% (NDHS 2008) 60% method) PhilHealth Coverage rate 53% (Joint DOH85% PhilHealth Review) PhilHealth Availment rate 42% (Joint DOH92% PhilHealth Review) PhilHealth Support Value 34% (Joint DOH70%; 100% for PhilHealth Review) identified indigents PhilHealth Benefit Delivery rate 8% (Joint DOH54% PhilHealth Review) Percentage Out-of-pocket expenditures 54% (2007 PNHA) < 30% Percentage accredited facilities (hospitals) 91% (Reyes, et. al, 95% among licensed 2010)
Source: Department of Education; Philippine Health Insurance Corporation; National Economic and Development Authority

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The provision of water infrastructure to waterless municipalities is an important aspect of this program. Infrastructure will be provided to the 483 municipalities that have less than 50 percent service coverage in terms of sustainable water sources; a list of 115 municipalities to be initially included in the program is currently being prepared. NAPC will serve as the lead coordinating agency in the implementation of the program, and shall ensure that priority be given to barangays in municipalities with the highest density of poor households. The Department of Health will provide the funding requirements for monitoring the implementation of the water and sanitation facilities in waterless municipalities, while the Department of Interior and Local Governments shall develop and implement capacity development interventions under the program, while establishing collaborative partnerships with relevant agencies, non-governmental organizations, academe and other institutions. The provision of sanitation facilities is also an important concern and will be addressed. C. COMMUNITY-DRIVEN DEVELOPMENT PROGRAMS. We will promote programs that will expand the ability of poor communities to organize themselves and support their own development. 1. Expansion of Self-Employment Assistance Kabuhayan (SEA-K). SEA-K is a capability-building program established by DSWD in coordination with LGUs designed to enhance the socio-economic skills of poor families to establish and manage sustainable community-based micro-credit organizations for entrepreneurial development. The program enables the poor to have access to credit, promote entrepreneurship, enhance their understanding of the value of honest work, pay debts, have social responsibility and increase their income. In 2009, there were 1,389 SEA-K projects established, benefiting 28,939 families nationwide. Funds amounting to Php 143,089,000 million have been released as seed capital for livelihood projects. 2. Employment generation programs. The labor force, which numbered 23.9 million in 1997, had increased by more than 50 percent to 39.2 million by January 2011. There are approximately 3 million unemployed Filipinos in the country, corresponding to an unemployment rate of 7.4 percent, while the underemployed number is at 12 million. The Department of Labor and Employment (DOLE) projects annual employment increases at only slightly
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more than 1 million new jobs a year, barely enough to provide jobs to new entrants in the labor force. Higher rates of economic growth will generate additional employment. But there will be a time lag before the employment impact of growth kicks in. In the meantime, the government needs to maximize job-generation in its infrastructure and non-infrastructure projects. We will work towards the following: a. Raise the labor intensity of infrastructure projects in order to increase the number of employed workers in these programs. Since one third of public works programs can be implemented using labor-intensive techniques, the government can employ 300 to 400 thousand additional workers. DPWH will take the lead in this effort. b. Design a program for guaranteed employment for victims of disasters. The national government will also develop greater fiscal flexibility in order to deploy infrastructure and non-infrastructure budgets in the event of major disasters. This will have to come either in the form of rapid-disbursing Social Protection Credit Lines or national budget authorizations that allow the executive department to temporarily defer projects in the pipeline, as well as deploying these in favor of pre-qualified forms of assistance to victims of calamities. c. Explore the feasibility of an Employment Guarantee Scheme for the poor. We will explore the implementation of an employment guarantee scheme (EGS)1 for the poor to ensure that the poor can have work if these are needed. The new EGS can take the place of the different programs listed above and can be designed together with other agencies2. Initially,
The program is similar to the Mahatma Gandhi Rural Employment Guarantee Scheme being implemented in India starting in 2005. Towards the latter part of the term, we should explore the possibility of adapting something similar to this job guarantee program. 2 This program can focus on: (1) Classroom construction, which ties in with our program for education, such that before the end of our term, the 40-thousand classroom deficit will be eliminated. One indicative estimate is that constructing 8,000 classrooms will produce 40,000 jobs for 100 days at Php 250/day, and
1

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this program can use existing budgetary resources by pushing DPWH towards jobs-biased technologies in road and school construction, the DA in farm-to-market roads, the and NIA in its irrigation projects. Additional resources can be sourced from the Motor Vehicles Users Charge (MVUC) or Road Tax. In the design of the EGS, we will take into consideration several important components, including ensuring that the wage structure meets the self-targeting objectives of the program, including a provision that allows for assistance during the monsoon season when it is difficult to undertake construction; selecting programs that enhance labor productivity; and reducing leakages in the non-labor costs of the program (Ahmed, Quisumbing, Villafuerte and De La Cruz-Dona, 2004a; Manasan, 2009). The Cash For Training/Work (CFT/W) program of DSWD, which will provide jobs for small farmers and fisherfolk during lean months, will begin in July 2011. It replaces the NFA rice subsidy. It has been allocated a large Php 4.2 billion budget for 2011. It can become a prototype for programs for jobs for disaster victims and for the poor in general. NAPC and DOLE will be working together to examine the resource and institutional requirements for implementing EGS for those who have been displaced and affected by calamities, as well as those who have been underemployed and are awaiting the emergence of new pathways out of chronic poverty. 3. Widening the implementation of the Kapit-Bisig Laban sa KahirapanComprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS). We will continue to expand KALAHI-CIDSS, a program for organized participatory development planning at the barangay level, and the
cost Php 4 billion. (2) Clearing and repair of esteros, canals and other waterways to lessen, if not altogether eliminate, flooding, especially those in the Ondoy path; (3) Rehabilitating and repairing the irrigation of canals and ditches; and (4) Other agricultural infrastructure projects, such as farm-to-market roads and water impoundment projects. We should explore getting new resources from ODA donors especially for school construction.

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provision of funds for projects resulting from it. We will also explore the possibility of developing a facility that can support projects chosen through participatory barangay development planning similar to KALAHI-CIDSS. Over the six years of KALAHI-CIDSS implementation, the program has covered a total of 4,229 barangays in 184 of the poorest municipalities in the poorest 42 provinces. With additional support from the government, the Millennium Challenge Corporation and the World Bank, the program will expand to 407 municipalities in 48 provinces by 2016. We will undertake a pilot program for urban barangays; this may be similar to the Strategic Private Sector Partnership for Urban Poverty Reduction (STEP-UP), a project being undertaken by the Philippine Business for Social Progress, to ensure the delivery of housing and urban development services to the poor with the participation of the business sector, local governments and key shelter agencies. 4. Develop and integrate new programs that reduce socio-political and environmental vulnerabilities. The Payapa at Masaganang Pamayanan (PAMANA) Program, implemented by the Office of the Presidential Adviser for the Peace Process, is a critical part of the social protection program of the government. We will fund the resources necessary to undertake community-driven development, sustainable livelihood, tenure improvement, and livelihood- and employment-generation in areas affected by armed conflict. The PAMANA program will provide assistance to the 13 percent of all barangays that are conflict-affected -- areas where clashes between government forces and insurgent groups are taking place, have taken place or where there are evacuees and displaced people as a result of such armed conflict. These are spread in 497 out of 1,628 municipalities/cities nationwide. PAMANA will be implemented by phases to allow for capacity building and resource mobilization.

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PHASE PILOT PHASE I PHASE II

PHASE III

Table 24. PAMANA Implementation, 2010- 2013 COVERAGE TIMETABLE 7 municipalities Oct.-Dec. 2010 50 sites Jan.-Dec. 2011 50 sites (including ConflictJan.-Dec. 2012 Affected Areas in Luzon and Visayas) Scaling up Jan.2013-Dec. 2013

Source: Office of the Presidential Adviser on the Peace Process

We will undertake a new program to reduce vulnerabilities following natural disasters in coordination with projects undertaken by the government on environmental sustainability and disaster coping mechanisms. 5. Support for households dependent on coconut. Coconut farmers are among the poorest of the poor in rural areas. Some 25 percent of agricultural lands are devoted to coconuts; 700,000 of the 1.2 M hectares of CARP balance are coconut lands. Coconut products remain the biggest single export earning crop. The potential impact of promoting productivity growth in coconut areas is great. Coconuts have vast potential in downstream industry development (food/non-dairy, bio-lubricants, biofuels, virgin coconut oil, non-dairy products, coconut fiber nets); the technology required to increase the productivity of coconut farms is as simple as using salt as fertilizer for coconut trees and intercropping with other high-value crops (e.g. coffee, peppercorn, etc.) to raise farm incomes. A roadmap will be created for the sector that will include replanting, fertilization and intercropping strategies with supportive budgetary allocations: this roadmap will engage civil society organizations, especially in terms of its development, implementation and monitoring. A comprehensive program for developing coconut lands can be financed by coco levy funds. Some 27 percent of San Miguel Corporation stock (or 753 million shares), valued at roughly Php 56.5 billion, has been declared owned by government in trust for all the coconut farmers. 3
3

P56 B is when you value the 753 million shares at 75 pesos/preferred share; at 110 per share, the latest price, total is P82.83 Billion.

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IV. ASSET REFORM


It is vital that social protection programs are supported so the poors assets can become more sustainable in the medium- to long-term. This will entail the implementation of asset redistribution and housing programs. It has been shown through several studies that an increase in agrarian reform implementation can result in a reduction in poverty (e.g., Balisacan and Fuwa, 2003, 2004; World Bank, 2009). 1. Agrarian Reform. The Aquino Administration will fast-track the implementation of asset reform programs under existing laws, particularly agrarian reform, ancestral domain, fishery reform and socialized housing. The annual accomplishment targets for land distribution under CARP will be doubled from the existing 100,000 hectares in order to complete land distribution under CARP in five years. Of the remaining 1.102 million hectares that CARP still has to cover until 2014, coconut farms represent the largest balance at 350,000 hectares, one-third of which are large, private agricultural lands.
Table 25. Land acquisition and distribution targets, 2010- 2014 Land Acquisition and Number of Beneficiaries ARCS Distribution (hectares) Number of ARBS in ARCS Baseline* Target** Baseline Target Baseline Baseline 692 871,440 86,000 608,763 152,569 421,012 714 1,316,957 237,510 747,218 420,749 444,001 609 1,995,125 646,824 1,048,777 1,145,849 448,795 4,183,522 970,334 2,404,758 1,719,167 2,015 1,313,808

Target

Low LAD balance Medium LAD balance High LAD balance Total

Note: *Baseline numbers are as of June 2010; ** Targets are set by the Comprehensive Agrarian Reform Law with Extension (RA 9700); Low LAD (land acquisition and development) balance provinces with a LAD balance below 5,000 hectares. Medium LAD balance provinces with LAD balance between 5,000 to 13,500 hectares. High LAD balance provinces with LAD balance of more than 13,500 hectares. Source: Department of Agrarian Reform

2. Urban poor programs. Unlike in rural areas, the main problem for urban poor is housing. We will end illegal forced evictions. We will explore
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projects for on-site and in-city relocation, where medium-rise buildings in places where studies demonstrate feasibility, such as in the North Triangle area of Quezon City. The government must provide decent relocation, providing for quality housing, adequate basic services and sustainable livelihood support. From 1960-2000, the urban population grew at an average annual rate of more than five percent and, by 2010, approximately 60 percent of the total population lived in urban areas. Today, over 35 percent of the Metro Manila population (over 3.4 million Filipinos) live in informal settlements, where they suffer insecure tenure, lack of adequate health and educational facilities, and inability to access capital, credit or social safety nets. They are further exposed to public health risks due to makeshift housing, unsafe water and poor sanitation, as well as crime, fire and sudden flooding (ADB, 2010). Based on the Housing and Urban Development Coordinating Committee (HUDCC) Housing Need Study, the number of informal settlers nationwide total 550,771 households (based on its 2007 survey). About 36 percent or 199,398 households are found in NCR. It should be noted, however, that HUDCC estimates on the number of informal settlers may be low and that the true number of informal settler households could be as much as 1.2-1.5 million, given the fact civil society groups note that they compose a third of the urban population. We will require all major infrastructure projects to include a Resettlement Action Plan. We will shift the emphasis to slum upgrading and in-city resettlement through the Community Mortgage Program and Presidential Proclamations. We will proclaim public land for 50,000 poor families a year or 300,000 families over our six-year term. We will accelerate the Community Mortgage Program by wiping out the program backlog. We will further ensure the full release and utilization of the Comprehensive and Integrated Shelter Finance Act (CISFA) balance of Php 12 billion within 3 years. For 2011, we will increase the number of resettlement units and the number of households with housing assistance (see Table 26 below).

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Table 26. Resettlement and Other Housing Targets, 2011 Particular Baseline Target (2011) Resettlement 57,179 80,119 Units Other Housing 7,432 7,386 Assistance
Source: Housing and Urban Development Coordinating Committee

We will make infrastructure construction in urban poor areas a focus of our job generation program. Labor-based, equipment-supported (LBES) public works -- infrastructure projects that make an optimal use of labor as the predominant resource -- will be used in infrastructure projects both for post-disaster mitigation and disaster preparedness. A public works program that aims to improve the safety and habitability of existing informal sites and resettlement areas, as well as secure new living spaces for the urban poor, will benefit a large number of people. 3. Distribution of ancestral domain titles. We will work towards the distribution of ancestral domain titles as provided by the Indigenous Peoples Rights Act. Table 27 below shows the 4.2 million of the targeted 10 million hectares still have to be distributed, 3.4 million of which are already in the pipeline. The national government will invigorate the National Commission on Indigenous Peoples (NCIP) to fulfill this program. Recent appointments to NCIP should strengthen its reform credentials and lessen its image as a corrupt body.
Table 27. Status for Approval of Ancestral Domain/ Ancestral Land Delineation and Titles, as of November 30, 2010 PARTICULAR I. SURVEY COMPLETED II. FOR SURVEY III. UNDERGOING SOCIAL PREPARATION GRAND TOTAL No of ADs 56 41 107 204 Area (Hectares) 1,073,092.5221 834,767.8800 2,048,013.1300 3,955,873.5321 No. of ALs 46 17 434 497 Area (Hectares) 8,567.8531 3,873.3200 2,806.5000 15,247.6731

Source: National Commission for Indigenous Peoples

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Table 28 Status of Registration of Ancestral Domain/ Ancestral Land Delineation and Titles, as of November 30, 2010 PARTICULAR No. of Area of CADTs CADTs (Hectares) No. of No. of Area of Rightholders CALTs CALTs (Hectares) 18 1,063.5788 No. of Rightholders 540

Transmitted to ROD thru RO/PO for reg CALT taken by claimants for registration to ROD Transmitted to LRA, DENR & DAR for projection Transmitted to LRA, DENR & DAR for reprojection Completion of documents for projection/reprojection and issuance of certification to LRA, DENR & DAR Completion of documents required by ROD Total

12

3,550.912

2,014

55

1,247,996.4760 332,204

21

224.5804

543

15

366,799.2575

146,841

38

389.5514

289

40

1,361,180.9648 190,132

30

3,814.3615

1,376

12

449,318.2679

56,641

16

3,790.5814

1,116

122

3,425,294.9662 725,818

135

12,833.5655 5,878

Source: National Commission for Indigenous Peoples

4. Fisheries and aquatic resources reform and management. We will work with fisherfolk groups towards the implementation of the Fisheries Code. The delineation of municipal waters, provided for in the Code, will be hastened by issuing an Administrative Order within the next six months for the delineation of municipal waters for those LGUs with offshore islands, and will encourage municipalities to pass their comprehensive fisheries
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ordinance; promoting inter-LGU management of water resources will also be pushed. Guidelines for the development of fisherfolk settlement areas as mandated by the Fisheries Code will be undertaken, while funding for a comprehensive fisheries plan will be developed. Funding for the Comprehensive National Fisheries Industry Development Plan, a 25-year planning document that provides for capacity building, sustainable livelihoods for fisherfolk and rehabilitation of coastal and marine ecosystems, needs to be prioritized.

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V. AGRICULTURAL AND RURAL DEVELOPMENT POLICIES


At the same time, we will undertake the hard policies to correct economic distortions that reduce economic and social opportunities for the poor in rural areas. In 2006, almost 75% of the poor were found in rural areas, mostly working in agriculture, forestry and fishing. By 2010, 8 out of 10 of the chronic poor were in rural areas (Reyes, 2010). Agricultural growth. There are many steps that can be taken to promote growth in agriculture, including more research, better extension services and labor-intensive small infrastructure construction. The creation of non-farm employment activities or rural industrialization is another. We will undertake the following: 1. Strengthen an integrated and holistic approach by converging the efforts made by the Department of Agriculture, the Department of Agrarian Reform and the Department of Environment and Natural Resources; 2. Maximize the value of production by increasing the value-chain aspects of primary agricultural products; 3. Promote agricultural productivity growth, especially in coconut areas; 4. Provide marketing assistance; and 5. Establish infrastructure support to agriculture (food supply chain), e.g., grains terminal and cold chain facilities. We will further aim to achieve the following: Increase the average annual agricultural household income by 6 percent per year or 42 percent in six years. Establish rice self-sufficiency by 2013. Establish trading centers in proposed areas, including La Trinidad, Benguet, Dupax Sur, Nueva Vizcaya, Buguias, Benguet, Sta. Fe, Nueva Vizcaya, Tagum, Davao del Norte, Digos, Davao del Sur, Taguig and Metro Manila, which are the main trading centers of the country.
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VI. LOCALIZATION AND EMPOWERMENT STRATEGY FOR CONVERGENCE


NAPCs localization strategy is designed to maximize the anti-poverty impact of existing programs by generating greater LGU and civil society participation, and providing a frame for linking local and national anti-poverty planning. It has also been deliberately angled to assist the Aquino governments anti-corruption drive by contributing to DILG programs for good local governance, and undercutting channels of corruption by locating decision-making in inter-agency bodies. Our poverty program is anchored on substantial and direct benefits to the poor on Pantawid Pamilya and PhilHealth, and supply side intensification of health and education services. We need to develop what might be called Phase 2 programs geared towards helping the poor help themselves. It is in these programs where community organizing work is essential. Pantawid Pamilya and PhilHealth are topdown programs, deliberately so Phase 2 programs have to be organized from the bottom-up. The center of gravity of the localization program approved by the poverty cluster will be the municipality. It is here where organizational problems are most malleable and participation is easiest to organize. To maximize the impact of Phase 2 programs, municipalities in the poorest regions where Pantawid Pamilya and PhilHealth are in place will be given priority in the implementation of Phase 2 programs. The goal here is to have maximum impact in the shortest possible time on the poorest of the poor. We are currently compiling a list of roughly 600 municipalities based on a combination of criteria: poverty incidence statistics, Pantawid Pamilya, PAMANA and PhilHealth focus areas. This list will be pared down based on which municipalities fulfill the requirements of the program. Baseline data for the selection of focus municipalities will be poverty incidence and magnitude of poverty (density of the poor per area). Selected municipalities are thus from the poorest regions, and from high population density provinces such as Cebu, where the incidence of poverty may not be particularly high but where the absolute number of poor is high. Support for non-focus municipalities will be demand driven. Special attention will be given
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to congress persons and/or governors who want to undertake poverty programs by supporting component municipalities and projects cutting across more than one municipality. Participating municipalities will be required to undertake: (1) CBMS surveys, which will serve as the base for (2) Anti-Poverty Action Planning; and (3) a set of administrative and organizational reforms based on the DILG seal of good housekeeping. CBMS will complement NHTS-PR and provide a monitoring tool for anti-poverty work. Concrete targets in the poverty action plan will facilitate monitoring. Good governance reform will strengthen the capacity of municipal governments to plan and implement poverty programs. These reforms will feed into the DILGs performance based grants program. NAPC is now in the middle of a long, legislated process for selecting sectoral councils and representatives. To get away from undue focus on issues of representation, they have tasked the sectors with identifying/devising empowerment frames/programs for their own sectors. NAPC has instructed the sectors to get away from their preoccupation with consultations and conferences, and to devise programs where they actually work with the poor to produce goods and services. We need to be able to support the organizing component of these programs. We have developed a frame for community-driven development (CDD) that will enable civil society organizations and/or LGUs outside of the 400 municipalities planned for the expanded KALAHI-CIDSS to implement CDD projects. We propose a Salubungan fund for supporting small projects developed through: (1) a participatory planning process at the barangay level; (2) community participation through labor and materials donation; and (3) financial contributions by the barangay and municipal governments. The fund would finance community organizing, barangay development planning and top up local contributions, allowing for larger projects. District and provincial wide projects will also be encouraged. Fighting Patronage. We propose that anti-poverty programs be grouped into packages such as infrastructure for the poor, where water, rural electrification, farm-to-market roads, etc, would be put under an inter-agency secretariat. This would facilitate the salubungan of intensified national and local anti-poverty
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mapping. Town mayors with anti-poverty projects requiring national government financing and/or technical support would only have to go to a couple of interagency secretariats, rather than going to many different national agencies. This would have the effect of breaking circuits of patronage, which flow through departmental lines. The DPWH secretary would then be able to fend off congressmen and/or governors by simply saying decisions are now being made at the interagency level. At the local level, the bayanihan-salubungan program breaks local patronage circuits by locating decision-making on the initiation of publicly financed projects at the community level, instead of with the mayor in the municipal hall. Community involvement in the implementation of projects makes them more transparent. Poverty programs with intensified community participation provide a service/delivery-based connection between municipal officials and voters, moving political relations away from highly personalistic exchanges of money and other favors. Poverty and Economic Growth. To correlate poverty programs with programs for promoting economic growth, we propose dividing the country (in our case, focus municipalities) into three economic zones: 1. Rural and peri-urban areas close to logistical and industrial hubs in urbanizing growth areas. Here agriculture and other production by rural poor can be more easily connected to markets and other factors of production. 2. Areas further away from urban growth centers but with good resource endowments, most importantly land and water. 3. Areas with neither good resource endowments nor logistical connections to urban areas. Poverty programs can then be differentiated based on the needs of each zone: marketing and business development in Zone 1, production and roads in Zone 2, direct assistance and service delivery in Zone 3. This economic geography approach to poverty reduction will enable us to link the bottom-up planning at the municipal level and the top-down approach of programs like Pantawid Pamilya. It will also open up the possibility of linking poverty programs with other
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economic development programs and help shape budget allocations and multiyear investment plans.

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VII. MONITORING AND ADMINISTRATION


The Philippine Development Plan indicators will be the basis for monitoring the targets in the anti-poverty plan; this will be supplemented by work that would express the targets in terms of regional, provincial and municipal level outcomes, whenever practicable. The specific community empowerment methodology outcome for each of the major anti-poverty programs will also be specified so that local community organizations can participate in the implementation process. The role of LGUs in pursuing these outcomes will also be strengthened so that anti-poverty programs can be pursued in the context of strengthening devolution through greater autonomy and accountability; benchmarks for performance will be developed. Local organizations will be encouraged to participate in the monitoring and evaluation of programs so that bottom-up solutions can be undertaken to improve the effectiveness of anti-poverty programs. Government communication backbones and mapping efforts can support the monitoring and assessment of programs; the NAPC Enhanced Integrated and Monitoring System for Anti-Poverty Programs can play a role in this regard. At the end of 2011, it is suggested that gaps be identified in the implementation of anti-poverty programs and can be made a priority in the designing/re-designing of the Bayanihan-Salubungan agenda. CBMS will be employed as the main assessment instrument for evaluating local poverty reduction action plans of LGUs and operationalizing performance-based grants for LGUs and community-led service providers. Monitoring and evaluation schemes will also be developed for public-private partnership agreements that will draw budgets and financial guarantees from government, and for projects that create social capital by fostering inter-local government cooperation, especially in the management of value chains and common facilities, and in the renewal of natural resources.

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Grosh, Margaret, Carlo del Ninno, Emil Tesliuc and Azedine Ouerghi (2008). For Protection and Promotion: The Design and Implementation of Effective Safety Nets. Washington, D.C.: World Bank Habib, Bilal, Ambar Narayan, Sergio Olivieri and Carolina Sanchez-Paramo (2010). Assessing Poverty and Distributional Impacts of the Global Crisis in the Philippines: A Microsimulation Approach, World Bank, Policy Research Working Paper, WPS 5286 Habito, Cielito (2009). Patterns of Inclusive Growth in Developing Asia: Insights from Enhanced Growth-Poverty Elasticity Analysis, Asian Development Bank, Institute Working Paper No. 145 Habito, Cielito, Ella Antonio, Dan Songco, Roehlano Briones and Marian Roces (2009). "Towards an Integrated Operational Framework for Rural Poverty Reduction in the Philippines," Report Submitted to the World Bank, unpublished Intal, Ponciano and Ma. Cynthia Bantilan (1994). Understanding Poverty and Inequity in the Philippines: A Compendium of Policy and Methodological Approaches. Makati: National Economic and Development Authority and the United Nations Development Program International Monetary Fund (2010). World Economic Outlook: October 2010 http://www.imf.org/external/pubs/ft/weo/2010/02/index.htm. Manasan, Rosario (2009a). Reforming Social Protection Policy: Responding to the Global Financial Crisis and Beyond, Philippine Institute for Development Studies, Discussion Paper Series No. 2009- 22 Manasan, Rosario (2009b). Social Insurance in the Philippines: Responding to the Global Financial Crisis and Beyond, Philippine Institute for Development Studies, Discussion Paper Series No. 2009- 23 Manasan, Rosario and Janet Cuenca (2007). Who Benefits from the Food for School Program and the Tindahan Natin Program: Lessons in Targeting, Philippine Institute for Development Studies, Discussion Paper Series No. 2007-10 National Statistical Coordination Board (2008). 2006 Official Poverty Statistics: Table 2. Annual Per Capita Poverty Threshold, Poverty Incidence and Magnitude of Poor Population, http://www.nscb.gov.ph/poverty/2006_05mar08/tables.asp (accessed April 2, 2011) National Statistics Office (2009). Summary of Project Population By Sex and by Five Calendar Year Interval: Philippines: 2000- 2040, http://www.census.gov.ph/data/sectordata/popproj_tab2r (accessed December 27, 2010) National Statistical Coordination Board (2008). 2006 Official Poverty Statistics National Statistical Coordination Board (various years). National Income Accounts with Consolidated Accounts National Statistical Coordination Board (2011). 2009 Philippine Poverty Statistics, http://www.nscb.gov.ph/poverty/2009/default.asp (accessed on June 09, 2011) National Statistics Office (2010). 2008 Annual Poverty Indicators Survey: Final Report. Manila: National Statistics Office National Statistics Office and ICF Macro (2009). 2008 National Demographic and Health Survey. Calverton, Maryland: National Statistics Office and ICF Macro

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