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MOVEMENTFORGOODGOVERNANCE1

BENCHMARKINGTHEPERFORMANCEOFTHEAQUINO ADMINISTRATION,YEAR3
Whatsinanumber? Anumbermeasuresperformance,quantifiestheamountandqualityofwork, confirmssuccessesandidentifiesweaknesses.Itisatooltokeeptrackofprogressand checksifpromisesmadebyanindividualhavebeendelivered.Anumberiscompassthat pointsareasforimprovement.Anumberisatoolforaccountabilityandinformsthepublic whetherresponsibilitieshavebeencarriedoutwell. NumbershadbeenthefavoritetoolsofthelateSecretaryRobredo.Hehadmetrics forvariousaspectsofgovernance.Hemeasuredthedeclineinmaternaldeaths,the increaseinachievementscoresofchildren,theincreaseintheamountofrevenuesthatthe cityraised.Hemeasuredthecitygovernmentssuccessagainstthedeclineinpoverty,the numberofjobscreated,thedeclineincrimerate.Hehadameasureforeverything. WhenhebecameDILGSecretary,heinstitutedaperformanceincentivesystemfor localgovernmentsbasedonmetricsontransparencyandfiscalmanagement. TheMovementforGoodGovernance(MGG)carriesonthelegacyofSecretaryJesse Robredobyhelpinginstitutetransparencyandaccountability.Since2010,ithasmeasured theperformanceoftheAquinoadministrationusingnumbers.MGGassessesthe performanceofgovernmentbasedontheextenttowhichthepromisesandtheplatformof thePresidentwhenhewascampaigningin2009havebeencarriedout.ThePresidents campaignplatformwasreiteratedinhisinauguraladdress,wherehepromisedtokeephis promises:Nomoreturningbackonpledgesmadeduringthecampaign,whethertodayor inthecomingchallengesthatwillconfrontusoverthenextsixyears.Itmetamorphosed intotheprogramofgovernmentformallyknownashisSocialContractwiththeFilipino People2whichinturn,servesasthebasisoftherecentlyreleased20112016Philippine DevelopmentPlan(PDP),withInclusiveGrowthasthemantra. MGGusesascorecardsystemtoassesstheextenttowhichtheadministrationhas implementedtheplatformofthePresident.Scoringisdonebasedonresultsrelativeto targets. Score Assessment 0 ThePresidenthasbrokenhispromise. 2.5 Therehasbeenverysloworlittleprogressonhispromise. 5 Somethinghasbeenaccomplishedbutislowerthanexpected. 7.5 Theadministrationisontrackandisexpectedtoachievethe targetasscheduled. 10 Thetargethasbeenachievedasscheduled.

1TheMovementforGoodGovernance(MGG)isacoalitionofcitizensandorganizationsthatwas

organizedtobuildaconstituencyforbettergovernance.ItsChairisProf.SolitaC.Monsod. 2A16pointprogramthatcanbeaccessedfromTheOfficialGazette

Theassessmentstudyismeantnottobeacritiquebutatoolforidentifying successesandalertinggovernmentonareasthatneedstrengtheningandimprovement. Thestudyisaimednottodisheartentheactorsbuttohelpthemandthecitizenstakeaction toimproveprocessesandsystemsthatcanstrengthenperformance. Sevenareasareassessed:theeconomy;managementofpublicfinance,deliveryof health,education,environment,governance,andagriculture. A.TheEconomy ItistothecreditofthePNoyAdministrationthatalongwithits20112016 PhilippineDevelopmentPlan(PDP),itpublishestheResultsMatrices(RM)whichisan excellenttooltomonitorandevaluatetheprogressofthePDPinitspursuitofinclusive growth. TheNationalStatisticalCoordinationBoard(NSCB)hasjustreleaseditsStatistical IndicatorsonPhilippineDevelopmentorStatDev2012,whichcontains227indicatorslisted intheRM,togetherwiththeirtargetsandtheprobabilitiesofattainingthese,giventhe performanceinthepastthreeyears.Accordingtoitscalculations,93oftheposted indicatorswerelikelytobeattained,78wereunlikelyand26couldgoeitherway.Theother indicatorsarewithouttargets,butwereclassifiedasincreasing,decreasing,orunchanged. TheMGGeconomicscorecardmakesuseoftheStatDevwhereverpossible,but obviouslywillwanttofocusontheforestratherthanthetrees.Italsomustbenotedthat whatisbeingassessedisnotthecountrysdevelopmentperformanceforthecalendaryear 2012,butspecificallyforthethirdyearofthePNoyadministrationthatistosay,the periodcoveringJuly1,2012tothepresent.Moreover,theaimoftheMGGistoprovidea hopefullyobjective,nonpartisanperspectiveontheStateoftheNationasidefromwhatthe PresidentwillprovideduringhisSONA. TheMGGEconomicScorecard2011wasbaseddirectlyonthe2010campaign platformofPresidentAquino,whichlatermetamorphosedintohisSocialContractwiththe FilipinoPeopleandbecamethebasisofthe20112016PDP.The2012EconomicScorecard shiftedtothePDPformat,althoughitcalledattentiontowhatseemedtohavebeenomitted fromtheoriginal16pointcampaignplatform.ThisyearsScorecardwillbesimilartolast years,althoughthereadermaywanttoassigndifferentweightstosomeoftheindicators, aswasdoneforthefirstscorecard.Inparticular,theweightsforthegrowth,employment andpovertyindicatorsmaybeincreased,sincethePDPdefinesinclusivegrowthashigh growththatissustained,thatmassivelycreatesjobs,andreducespoverty. 1.GDPGrowth:ThefirstthreequartersofPNoysthirdyearinofficesawreal GDPgrowingat7.2%,7.1%and7.8%respectively,foranaveragegrowthrateof7.4%forthe entireperiod.Thisisadistinctimprovementovertheperformanceoftheeconomyforthe correspondingperiodsinhisfirstandsecondyearsinoffice,6.4percent,and4.46percent, respectively,andmimickingaJshapedlearningcurve.Forthefirsttimeinhisthreeyearsof office,thePDPgrowthtargetof78%ontheaveragehasbeenachieved,andthePhilippines outperformedneighboringcountries. GDPbyIndustrialOrigin:TheRMofthePDPlistsmorespecifictargetsunderthe highandsustainedeconomicgrowth.TheServicessectorhititstargetatthelowendwith

anaveragegrowthratefortheperiodat7.1(target:7.18%);theIndustrysectorhitits targetatthehighendwithanaveragegrowthrateof9.0percent;whiletheAgriculture sectorperformancewasbelowtarget,withanaveragegrowthrateof4.2percent(target: 4.65.7%). Score:10.0 2.InvestmentRatio:Therealinvestment(RealCapitalFormation/GDP)ratiofor thefirstthreequartersofYear3ofPNoysadministrationaveraged20.8percentslightly lessthanwhatitwasinYear2(20.9%)andlessthantheYearIperformance(22.9%).The targetfor2016is22%. Twoopposingfactorsareinplayasfarasdeterminingthescoreforthisindicators performance.Ontheonehand,theinvestmentratioshowsadecreasingratherthanthe desiredincreasingtrend.Ontheotherhand,asfarasabsolutevaluesareconcerned,the probabilityseemshighthattheneeded1.2percentagepointincreaseintheinvestment ratioby2016canbeachieved.Lastyear,thescoregivenfortheInvestmentRatiowas10. Takingtheaboveintoconsideration,thescoregiventhisyearis7.5. Score:7.5 3.Export/GDPRatio:TherealexporttoGDPratioistargetedtoreach64.3percent bytheendof2016.Inabsolutenominalterms,thisimpliesincreasingexportsby$9.8billion peryearor$3.3billionaquarter(asmentionedintheYear2MGGscorecard).Theactual valueforthefirstthreequartersofPNoyYear2wasanaverageof46.7percent.ForPNoy Year3,ithasactuallygonedownto44.5percent,withexportsdecreasingratherthan increasinginvalue.Thescoregivenlastyearwas2.0.Ithastobelessthisyear. Score:1.5 4.EmploymentGeneration:Thetargetnetnewemploymentisanaverageof1.0 millionforeveryyearoftheplanperiod.WhilePNoysYear2employmentperformance earneditthestopscoreof10.0,withemploymentconsistentlyexceedingonemillionfor eachofthethreequartersmeasured(Oct.2011,Jan.2012,April2012LaborForceSurvey), PNoysYear3showsadeteriorationinperformance:Oct.2012employmentdecreasedby 882thousandcomparedtoOctober2011,andwhiletheJanuary2013showsanincreaseof 999,000,theApril2013figuresshowagainadecreaseinemploymentby31,000. ThelargedecreaseinOctober2012employmenthasbeentracedtoanunintended changeinthedefinitionofemploymentforOctober2011andthereforemadethe employmentfiguresforthetwoperiodsnoncomparable.Atthispoint,itisnotsure whetherwecangetthecorrectedfigures.ButtheAprilfigureshavenotbeenquestioned. Onthebrightside,thepercentageofwageandsalariedemploymenttototal employmenthitthe60percentmarkforthefirsttimeinJanuaryofthisyear,andthe averageforthethreequartersofPNoysYear3was58.2percent,comparedtotheYear2, anaverageof55percent. Score:5.0

5.IncomePovertyReduction:Initialresultsfromthetriennial2012FamilyIncome andExpendituresSurvey(FIES)showadisappointinglysmallreductioninpopulationpoverty incidenceforthefirstsemesterof2012(27.9%)ascomparedtothefirstsemesterof2009 (28.6%).Thisinspiteofthefactthatthegrowthrateoftheeconomyforthefirsthalfof 2012averagedarespectable6.4percent.Atthesametime,Ginicoefficientscomputed fromthedatashowabarelyperceptibledecreaseininequalitybetweenthetwoperiods. Bothoftheseindicatorsgiverisetodoubtsthatthegrowthoftheeconomyhasbeen inclusive. ThisisnottodenigratetheadministrationsConditionalCashTransfer(CCT) Program.Ithasbecomeobviousthattheamountsinvolvedinthetransfersamaximum amountofP15,000perfamily,isnotsufficienttoallowaverypoorfamilytocrossthe povertyline.Toaccomplishthat,theaveragecashtransferwouldhavetobeoverP27,000 perfamily. Thereismorebadnews:ThePNoyadministrationseemstohaveperformedeven morepoorlyinYear3thaninYear2insofarastheacquisition/distributionofland(LAD) undertheagrarianreformprogramisconcerned.AsmentionedinlastyearsScorecard, only54.6percentofthetargetedhectaragefor2011hadbeenacquired/distributed.In 2012,theoriginaltargetof240,000seemstohavebeenreducedto180,000buteventhen, only59,837hectares(includingmore11,991hectaresinthepipeline)ofEmancipation Patents(EPs)andCertificateofLandOwnershipAwards(CLOAs)areregisteredwiththe LandRegistrationAuthority)fortheyearanaccomplishmentofabout33percent.For 2013,theannualtargetswereagainreduced,thistimeto160,000hectares,butasofthe firstquarter,onlyalittleover10percent(16,327has)ofthathadbeenaccomplished. Insofarfarastheselfratedsurveysareconcerned,therehasbeennostatistically significantchangeinselfratedhungerandpoverty. Score:4.0 6.Infrastructure:InsofarasthebudgetisconcernedthePNoyadministrationis finallyputtingitsmoneywhereitsmouthis.Budgetedinfrastructureoutlaysdecreasedby 14percentin2011fromits2010levels;buttheoutlayswentupby25percentbetween 2011and2012,andanother17percentforthisyear.Moreover,atleastasfarasthe DPWHisconcerned,theprojectsarebeingimplementedontimeandsometimeseven undercost. Onthenegativeside,thePublicPrivatePartnerships(PPP)projectsseemto continueontheirveryslowpace.Asofthiswriting,only3outofthe22originallistofPPP projectsarebeingimplemented,2morethisyearthanwhatwasreportedlastyear.Recent newsreportedthatPresidentAquinoapproved6PPPprojectsworthP76.5billion(they werepurelygovernmentprojectsandthetwoprojectsworthP33.0billionwereputon hold). Score:5 7.MacroeconomicStability: ThefiscaldeficittoGDPratio,whichistargetedtofallfrom3.5%in2010to2.0%in 2016,wasactuallyachievedin2011,andwasat2.3percentlastyear.Thereducedinterest ratesthatthegovernmentispayingbecauseofitshighercreditstanding,plusthepassageof

thesintaxbillintolaw(ahugefeatherinPNoyscap)increasetheprobabilityofachieving andsurpassingthattargetby2016. Militatingagainstthat,however,istheveryslowimprovementintaxeffort,whichis targetedinthePDPtoreach15.6percentofGDPby2016,from12.1percentin2010,which meansanaverageincreaseintaxeffortofabout0.6percentagepointsayear.Thatdidnot happeneitherin2011orin2012,wheretaxeffortwas12.4percentand12.9percent respectively.Thefirstquarterof2013seemstoshowareductionratherthananincreasein axeffort:11.9percentcomparedtoQ12012at12.5percent. BIRstaxeffort,whichwastargetedtoincreaseby0.3percentagepointsayear,was verymuchontrackin2011and2012,risingby0.3andthen0.5percentagepoints,toreach 12.9percentbytheendof2012.Butforthefirstquarterof2013,ithasdecreasedto11.9 percent,lowerthanthefirstquarterperformanceofthepreviousyear(12.5percent). ThetaxeffortoftheBureauofCustomsnevergotontrack.Insteadofincreasingby 0.1percentagepoint,itdecreasedby0.2percentagepoints(from2.9percentto2.7percent ofGDP),stayedatthatratioin2012,andforthefirstquarterof2013,sliddownto2.6 percentofGDP. Lastyearscommentisrepeatedhere:thegovernmentsinabilitytoimplement effectivelyitsRATS(Runafterthesmugglers)andRATES(runaftertaxevaders)programs. OnefactorthatinhibitstheDOJfromprosecutingthecaseseffectivelyandontimeisthe DOJsinabilitytofillupitsexistingplantillaofprosecutors,muchlessitsnewandlarger plantilla;whichinturnisbecauseMalacanangseemstohavesatontherecommendations oftheDOJandthatencouragesevenmoresmugglingandevasion. Score:6 8.Inflation(PriceStability).Withatargetofkeepingtheinflationratesinthe35 percentrange,thegovernmentseffortsatkeepingpricesstablehasbeenanunmitigated success,andtheBangkoSentralngPilipinas(BSP)istobecongratulated. Score:10 OverallScoreforMacrostability:8 9.GovernancethePhilippinesComparedwithOtherCountries.Asnotedlast year,thePDPemphasizesthatifweakinfrastructureisamajorconstrainttogrowth,soare weakinstitutionsandgovernancefailures.AndPNoysdevelopmentplanincludestargets ofeitherimprovingthestandingofthePhilippinescomparedtoothercountries,or improvingitsscores,asevaluatedbyinternationalagencies. 9.1.DoingBusiness:Therehasbeennonewinformationsincelastyear.Butthe Philippinesgoalofbeinginthetopthirdofthe185countries(Singaporeis1,Malaysiais12, Thailandis18)surveyeddoesnotseemtobeattainableatthispoint(thePhilippineswent upfrom146to134,butthenwentdownto136).Score:4 9.2.GlobalCompetitivenessIndex(GCI).ThePDPobjectiveistoputthePhilippines inthetopthirdofthecountriesbeingranked.TheoverallGCIfor20122013is65outof 144countries,amarkedimprovementover20112012(75outof142),whichinturn

showedamarkedimprovementover20102011(85outof139).Atthisrate,thePDPwill achieveitsgoalby2015insteadof2016.Itshouldbenotedthough,thatitsoverallscore,on arangefrom1(lowest)to7(highest),hasonlybeeninchingupwards:from4.0to4.1to4.2. Thailand,withanoverallscoreof4.5currentlyisinthe38thplace,whileMalaysia,withan overallscoreof5.1,ranks25th.Score:10 9.3.TheMillenniumChallengeScorecard.ThePDPtargetfor2016istoscoreabove themedianscoreofthecountriesbeingevaluatedthereasonbeingthatforacountrytobe eligibleforacompact(aidgrant)withtheMillenniumDevelopmentCorporation,itmust performabovethemedianorabsolutethresholdonatleasthalfofthe20indicatorsitlists. TheotherrequirementsincludescoringabovethemedianontheControlofCorruption indicatorandabovethethresholdoneithertheCivilLibertiesorPoliticalRightsindicators). InPNoysYear2,thePhilippineswasbelowthemedianscorein11outof20 indicators;italsowasbelowthemedianintheControlofCorruptionindicator,althoughit wasabovetheminimumabsolutethresholdinthedemocraticrightsindicator.Thusit failedtwooutofthethreerequirements.The2013CountryScorebookshowsthatthe PhilippinespassedthePassHalfOverallRequirement,havingscoresabovethemedianin11 outofthe20indicators.Forthis,theMGGgivesitascoreof10.Itmustbenoted,however, thatweagainfailedintheControlofCorruptionIndicator.Score:10 9.4.WorldJusticeProjectRuleofLawIndex.ThePDPtargetfor2016istomove fromthebottomtothetophalfoftheregional(EastAsiaandthePacific)countryrankings. In2010,thisinvolved7countries,andin2011,itinvolved13countries.For20122013it involves14countries.Betweenthetwolatteryears,thepaceofimprovementhasbeen glacial.Thecountrysaveragerankingin2011was10.5/13,andin2012itwas10.75/14. Moreover,thecountrysactualscores(0lowest,1highest)in7outofthe8factors evaluateddeclined(theonlyfactorwherethescoreincreasedwasopengovernment).The averagescoreforallfactorswas0.549in2011,decliningto0.495in2012.Score:4 OverallGovernance(comparedwithothercountries)Score:7 10.Others.TheDBMReviewandPlantoReduceOverheadCosts,the DepartmentofAgricultureReviewofAllPrograms,ModernizetheAgricultureSectorwere partoftheEconomicScorecardforYearIbecausetheywereamongthecampaignpromises ofPNoy.Theseprogramsarestillawaitingimplementation.Score:3.0.Thegoodnews,of course,isthattheSinTax,whichwehadurgedthePNoyadministrationtoenactsinceit wasnotanewtaxmeasurebutwouldincreaserevenues(nottomentionthepositivehealth impact)waspassedinPNoysYear3.Score:10.0 Score:6.5

ScorecardontheEconomy,20102012,andthefirstquarterof2013 1.InclusiveEconomicgrowth 20103 2011 2012 RealGDPgrowthrate 6.2 4.5 10 Investmentratio 8 2.0 7.5 Export/GDP 2.0 1.5 EmploymentGeneration 7.0 10 5.0 IncomePovertyreduction 5.0 4.0 Infrastructure 2.5 2.5 5.0 Macrostability 4.0 8.0 Governancecomparedtoothercountries 5.0 7.0 Others 0 3.0 6.5 Averagescore 4.4 5.6 6.0 B.MANAGEMENTOFPUBLICFINANCE,2013 ThesocialcontractofthePresidentmadelittlementionofstrategiesonhow governmentwillraiserevenues.ThePresidentpromisedtorefrainfromimposingnew taxesorincreasingtaxratesHebelievedthatadditionalrevenueswillbeforthcomingif webecomemoreseriousincurbingandpunishingtaxevasionandsmuggling.4 Truetohispromise,nonewtaxeshavebeenproposedbygovernmentinthe lastthreeyears.Thankstothepersistentandconsistentadvocacyofhealthgroupsandcivil society,thehardworkoftheDepartmentofFinance,andthesupportoftheBIR Commissioner,theexcisetaxoncigarettes,beeranddistilledspiritswasrestructured. Certainly,theleadershipofthePresidentwascriticalinhavingthemeasurepassedby Congress.Thisisonesituationwhenheshouldbelaudedinsteadofcriticizedforbreaking hisword.Theexcisetaxreformwaslongoverdue.Althoughtheamendmentswerefar fromwhatisideal,governmentshouldbecommendedforliftingthepricefreezeon cigarettesandalcoholproducts.Aunitarytaxrateismadepossibleby2017.Someformof indexation5hasbeenintroducedstarting2016fordistilledspiritsand2018forcigarettesand beer. SincetheAquinogovernmenthasalimitedplatformonpublicfinance,MGG useditsscorecardongovernanceinassessingpublicfinance:Isiteffective;isitfair;isit ethical;and,isitempowering? 1. IstheprogramEfficient?Thestrategyofgovernmentingeneratingrevenuesisa strongdriveagainstevasionandsmuggling.Inaddition,theBIRissuesrevenueregulations tocollectmoretaxesevenitmeansreinterpretingthelaworadoptingarestrictive interpretationoftaxlaws. AsofJune13,2013,theBIRhasfiled160casesagainsttaxpayerswhoaresuspected tobenoncompliantwithtaxlawswiththeDepartmentofJustice.Thisactionreceiveshigh

3TheMGGscorecardin2010includednonewtaxesaspartoftheplatformofthePresident.A

scoreof7.5wasgivenwithaweightof1.0.The2010scorecardincludedtheplatformof pluggingrevenueleakageswhichwasgivenascoreof4.95withaweightof1.0.Thispromise ofthePresidentwasincludedinthemacrostabilityindicatorin2012. 4SpeechofthePresidentbeforetheMakatiBusinessClubandreportedbyABSCBNNews.com, January21,2010. 5Theincreaseispeggedat4.0percent.

publicityandprovidestheimpressionthattheBIRseriouslymeansbusiness.6Ofthese cases,138remainwiththeDOJinvariousstagesofprosecutionandtherestofcasesare pendingbeforevariouscourts.7NoonehasbeenputtojailandBIRnailedoneconviction wherethepersoninvolvedisnowafugitive.8Normally,ittakes4to6yearstoconcludea taxevasioncase. Despitetheslowgrindofjusticeandshortcomingsinfilingcasesagainstsuspected taxviolators,theCommissionersaidthecampaignisworking.9 DoesthefervorofBIRyieldresultsintermsofincreasedcollection?BIRscollection in2012grewby14.47percent.BIRcertainlydeservespartofthecreditforthegrowthin collectionbuttherevenueincreaseneedstobeviewedwithinthecontextofagrowing economyandonhowrevenuesarecollected.Grossdomesticproduct(GDP)hadanominal growthof10percent.EstimatesthroughtimeshowthatBIRrevenuesgrowbymorethan theincreaseinincomeandprices.10Thisisknownaselasticity.IncometaxandVAT collection,amongothersources,increaseautomaticallyastaxpayersearnmoreincomeand consumemoregoodsandservices.InflationresultstohighercollectionsincetheVATbase becomesbiggerbecauseofhigherprices.Theforecastfor2012wasthatBIRrevenues wouldgrow1.5timesmorethanthegrowthinincomeandprices.TheBIRstargetwas missedbyonlyahairline,P9.6billion Thegrowthincollectionislikewisebuoyedbythewithholdingtaxschemeand thevoluntarypaymentoftaxpayers.Almost98percentoftaxesarecollectedthrough voluntarypaymentsandthewithholdingtaxsystem.Only2.45percentoftaxeswere collectedthroughpreliminaryandfinalassessmentsbytheBIR.11 TheBureauofCustomsontheotherhandmisseditstargetbyasignificant amount.ItcollectedP289.9billioncomparedtoatargetofP347.1billionin2012.TheBOC iscontinuouslyhoundedbysmugglingproblems.Thirtysixpercent(36%)ofthesupplyofoil productsisestimatedtohaveescapedtaxes.Agriculturalproductsarealsosmuggledinto thecountry.In2012,thetotalvolumeofsmuggledagriculturalproductswasestimatedat P32.0billion.12 PuttingtheBOCandtheBIRtaxcollection,thecountrystaxeffortortheratioof taxrevenuestoGDP,wasat12.9percentin2012,0.5percentagepointshigherthan2011. Thehighestperformanceeverof17.0percentwasin1996duringtheRamosadministration. Therevenuesofgovernmentfinanced86.0percentoftheexpendituresof governmentofP1.778trillionin2012withadeficitofP242billion.Governmentcontinues

6www.MB.com.ph,June13,2013 7ThenumberofcasesthathasbeenfiledbeforeDOJcouldhaveincreasedto148with10more casesthatwerefiledinJune2013. 8DaximL.Lucas,160casesfiled,notonetaxevaderinjailbutBIRdriveisworking.Philippine DailyInquirer,April4,2013 9Ibid 10PublicFinanceInstituteofthePhilippines,TaxBuoyancyofMajornationalTaxes19822002. Elasticityestimatesdonotconsidertheeffectoflegislativeandadministrativechangesonthe growthofrevenues. 11BureauofInternalRevenue,2011AnnualReport 12ChristineF.Herrera,PHtaggedAsiasSmugglingCapital,http://manila standardtoday.com/2013/04/08/phtaggedasiassmugglingcapital

tousedebtfinancingbuthasbeensuccessfulinbringingdownthedeficittoGDPratioto2.3 percentin2011comparedto3.7percentin2009.Debtservicehasalsobeensuccessfully reducedfrom7.8percentin2009to6.9percentin2012. Thegovernmentundertookeffortstorebalancedebttowardsdomestic obligations.Theshareforeigndebthasbeentrimmedfrom43.8percentin2009to36.2 percentin2012.Thematurityofdebtinstrumentshasbeenlengthened,forexample,the introductionofthe25yearGlobalPesoNotes.Theshareoflongtermdebtinstrumentsis now86.2percent(86.2%)thatreducesrefinancingriskandsupportsthedevelopmentofa capitalmarket.Thecostofdebtservicehasbeenreducedbypartiallyredenominating foreigncurrencydebttopesodebt.13 Score: BIR,7.5,withaweightof80percent:6 BOC,3withaweightof20percent:0.6 Deficitmanagementanddebtreduction: 8 Total:7.3 2.IstheProgramFair?Thefairnessofhowrevenuesareraisedandspentis perhapsmoreimportanttothetaxpayers.Inexchangeforapartofhis/herincomethatis surrenderedtogovernment,ataxpayerexpectsanequivalentamountofpublicgoodsand servicesinreturn.He/Shealsoexpectsthatalltaxpayersinsimilarcircumstancessharea similartaxburdenandthosewhohavehigherincomesandconsumptionpaymore. InequityhasbeenaseriousflawofthePhilippinetaxsystemforyears,butthe administrationhasyettoshowthatitisaddressingtheproblem.Wageearnerscontinueto beartheburdenofgovernmentfinancing.Almost82percentoftaxespaidbyindividuals comefromwageearnersandtheselfemployedtaxpayerscontributedonly5.2percentin 2012.Theinequityhasbecomeworsecomparedtopreviousyears.(Forexample,theshare ofwageearnersin2004waslessheavyat70.84percent). TheDOFandBIRannouncedthattheywouldfocusonincreasingefficiencyin taxingtheselfemployed.Theyshouldbracethemselvesforthechallengeconsideringthat only15.05percentoftheselfemployedarepartoftheBIRstaxbase.TheNSOreported 12.1millionselfemployedindividualsin2012andtheBIRreportedonly1.82million taxpayerswhoregisteredamongtheselfemployed.Unlessthosewhoareoutsidethetax netaremadetosharethecostsoffinancingpublicservices,wageearnersandthe professionalswhoarereligiouslycomplyingwiththeirtaxobligationscannotexpectany significanttaxrelief. Sincethereisnoescapefortaxpayerswhoarealreadypartofthetaxbase,the BIRtakeseveryopportunitytowringthetoweldry.Rulesandregulationsarerevisedinan unprecedentedwaywithlittleregardtotheantagonismandtheuncertaintythatthis practicecreates.Thebeliefthatrulesareeverchangingandthatthatpoliciesareunstable donotfosterconfidenceontheruleoflawingovernment.Itpavesthewayforarbitrariness andapersonalitydrivenformofgovernance.Thisishowinstitutionsareweakened. ThefollowingaresomeoftheexamplesofhowBIRassumedthatpoliciesinthe pasthavebeenbadandwrongandshouldbecorrected.Insomeinstances,theeffectsof therulingshavebeenmaderetroactive:

13DepartmentofFinance,GovernanceandFiscalResponsibility2011AnnualReport.

a.RetroactiveApplicationofTaxRules.Section246oftheTaxCodeprovides that,withafewexceptions,changesinBIRrulingsshouldnotapplyretroactivelyifsuchwill beprejudicialtothetaxpayers. OnOctober26,2010,anewsetofcriteriawasissuedforavailmentof the15percentincometaxrateofFilipinosemployedinRHQsand ROHQs(RR112010).Theimpositionoftheposition/functionand compensationthresholdtestswouldshiftcertainFilipinoemployees fromthe15%taxratetothe32%rate.Thisrulewasmadetoretroact toJanuary1,2011althoughtheruleswereissuedinOctober. Anotherinstancewasthereversaloftherulingonthetaxexemptionof PEACEbonds.Thetaxwascollected(andtheentireburdenshifted)on themostrecentholdersofthebond.Ideally,thisshouldhavebeen collectedatthestartandthecostofthetaxshouldhavebeenimputed inthesubsequenttransferprices. b.ProhibitiononthetransferofTaxCreditCertificatesUndertheVATsystem, taxpayerswhohavepaidinputVATonzeroratedtransactionsorwhoseinputVATisgreater thantheoutputVATcanclaimataxrefund.However,thePhilippinegovernmentisyetto conformtothisprotocolandissuesTaxCreditCertificatesinstead.Withoutbroad consultations,theBIRprohibitedthetransfersofTCCsonAugust20,2011,.Theabsenceof therefundsystemmakestheVATsysteminefficientsincetaxpayersarenotallowedto recouptheVATthatformedpartoftheirinputs.TheprohibitionofthetransferofTCCsputs theminaworsecondition.Insteadofcash,theyareleftholdingTCCSthatcannotbesoldor transferred. c.SubmissionofAccountInformationReturn(AIR)byindividualtaxpayers disclosinginformationonincomesubjectedtofinaltaxesandtaxexemptincome.The impositionoffinaltaxesonpassiveincomewasadoptedintheeighties.Studiesshowed thattaxpayersdidnotreportpassiveincome,i.e.interest,dividends,capitalgainstotheBIR. Governmentthenimposedafinaltaxonpassiveincomewhichiswithheldatsource,i.e.by thebankorthecorporationdeclaringadividend.Afinaltaxrelievesthetaxpayerthe difficultiesofreportinghispassiveincometotheBIRandfilingareturn.TheBIRreverses thisfacilityofcomplianceandrequiresthetaxpayerstoorganizedataontheirpassive incomeandreportthemtotheBureau. d.Changingtherulesontaxexemption.PEZAcompaniesunderthe5%gross incometaxregimeenjoyexemptionfromalltaxes.Inrecentrulings,however,theBIRhas beenreversingexemptionsgrantedinpreviousrulingswhichhavebeenupheldincourt decisions.Forexample,aPEZAcompanywasmadeliabletodocumentarystamptaxonthe leaseofthebuildingusedasaproductionfacility.Thejustification:theDSTexemptionis limitedtotheregisteredactivityandleasingisnotaregisteredactivityofthePEZA registeredmanufacturingcompany. ThemostclassicexampleisRevenueRegulation52012whichdeclaredthatall rulingspriortoJanuary1,1998shallnolongerhaveanybindingeffect.Consequently,all suchrulingscannotbeinvokedasbasisforanycurrentbusinesstransactionsandneithercan theserulingsbeusedasbasisforsecuringlegalopinions.Doestherevocationofprevious rulingsimplythatallpriorcommissionersbeforethepresentonewerewrong?

Someofthehemanymajorrulingswhichreversedandorchangedtherulesin taxationarelistedintheannex. Score:2.5 2.IstheProgramempowering?Empowermentmeansthattheadministration engagesstakeholdersindecisionmakingandinspiresunity,trust,andoptimism.Thelatter impliesthattheadministrationsharestheconcernsandvaluesoftheordinaryFilipinoand hasacompellingvisionwhichinspireshope,andmakesusproudtobeFilipinos. ThemanyinitiativesoftheDepartmentofBudgetandManagement(DBM), particularlyitsBottomupBudgeting(BUB)approachareespeciallyrecognizedfortheir empoweringcharacteristic.Localgovernmentsinpartnershipwithcivilsocietyprepare LocalPovertyReductionPlanswhichareconsideredinthepreparationofthebudget. AlthoughtherearebirthingpainsintheimplementationoftheBUB,e.g.theBUBproposals arerejectedbyregionalofficials,thewillingnessandopennessofDBMtoconsultandlisten tolocalcommunitiesiscommended. TheopennessoftheDBMinmakingbasicinformationpubliclyavailableis noteworthy.TheDBMwebsiteprovidesveryusefulstatisticsthatinformsordinarycitizens offundreleases,thePriorityDevelopmentAssistanceFund,theschoolbuildingprogram, amongthemanyothers.TheDBMhasformulatedaCitizensCharterwhichissimilartothe CitizensCharterofNagaCitythatthenMayorRobredoinitiated.TheCharterliststhe servicesavailabletocitizens,thepersonresponsiblefordeliveringtheservice,andthe timelinebywhichtheserviceisdelivered.LikeRobredoswork,thecharterprovidesfora feedbackmechanismfromcitizens. AsimilarobservationcannotbemadefortheDepartmentofFinanceandits implementingagencies.Acommonobservationisthatrulesandregulationsareformulated withverylimitedpublicconsultation.ThewebpagesoftheDOFandtheBIRarenotas transparentandinformationalasthewebsiteofDBM.Thestatisticsandinformationarenot currentandwantinginadequacy.Detailsontherevenueprogramareabsentwhichwould enableordinarycitizenstobeinformedoftheperformanceoftheagenciesofDOF.There arenodetailsontheprogressoftheprivatizationprogram.TheDOFusedtoorganizefiscal statisticsthatwereveryusefulforanalysis.Thebulletinisnolongercurrentandonly providesdatafor2010. DBM:10withaweightof50percent,5 DOF:5withaweightof50percent,2.5 Total:7.5 3.Isitethical?WhilethePresidentisheldinhighregardwithrespecttohis honestyandintegrity,hispersonalvirtueshaveyettobeadoptedasawayoflifebypublic servants.Corruptionisperceivedasaseriousprobleminthecountrywithascoreof34ona scaleof1to100with100beingveryclean.14ThePhilippinesisconsideredthemostcorrupt amongASEAN5countriesusingtheWorldBanksgovernanceindicatorswitha22.7

14CorruptionPerceptionIndex,TransparencyInternational,September2012.

percentilerankinthecontrolofcorruptionindicator.15Thismeansthat77.3percentof thecountriesintheworldarebetterthanthePhilippinesincontrollingcorruption.16 Onanagencylevel,theperceptiononoftheBIRandtheBOCremainsnegative. BothagenciesreceivednegativeratinginitssinceritytostopcorruptionwithBOCreceiving anegativeratingof46percentandBIRwithanegativeratingof13percent.Thegoodnews isthatthedegreeofnegativeperceptionhaslessenedfrom46to19fortheBIRandfrom 69to46attheBOC.17TheperceptiononthecorruptionatDBMimprovedsignificantly fromanegativeratingof17percentin2009toapositive23percent. Score:BIR:5 BOC:4 DBM:7.5 Total:5.5 Insummary,MGGdescribestheperformanceofgovernmentinpublicfinanceas 5.75.Thelackoffairness,uncertaintyinenforcementoftaxlaws,inabilityofBOCtohandle thesmugglingproblem,andthelackofempowermentstickoutlikeasorethumb.Thetax effortbarelyinchedupdespitealltheaggravationsduetoconstantchangesintaxrulesand increasingcompliancecosts.MGGcommendstheDBMforitsempoweringinitiatives,its transparency,anditsbiasforthepoorinexpendituremanagement.MGGlaudsthesuccess ofgovernmentinbringingdownthedeficittoGDPratioaswellasthedebttoGDPratio. ScorecardonPublicFinance,20102012 2010 2011 2012 Efficiency 6.25 5.83 7.3 Empowermentofstakeholders 5 5 7.5 Fairness 2.5 Ethicalgovernance 5 5.5 Total 5.818 6.8819 5.7 C.HEALTHPROGRAM In2010,PresidentNoynoyAquinolaunchedtheAquinoHealthAgenda(AHA)asthe governmentssolutiontothedepressingstateofhealthinthePhilippinesatthattime.AHA becametheoperationalbasisunderwhichtheUniversalHealthCare(UHC)orKalusugan Pangkalahatan(KP)programiscurrentlyimplemented.Stemmingfromthereform interventionsidentifiedintheHealthSectorReformAgenda(HSRA)andexecutedunderthe FOURmulaONEforHealth(F1)framework,theUHCprogramisdesignedtoadvance,expand andstreamlinethegovernmentshealthstrategiesinordertoimprovethequality, efficiency,effectivenessandequityofthePhilippinehealthsystem.ThegoalsoftheUHC

15WorldBankGovernanceIndicator 16BenjaminE.Diokno,TheReturnofCigaretteSmuggling. 17SunStarCebu,PublicPerceptiononCorruptionDown:SWS,October20,2012.SunStarand

TheDailyGuardian,IlonggosseeBIR,DPWHasmostCorruptAgencies,,www.the dailyguardian.net/index.php/localnews/20524 18Weightswereassignedandtheaverageisnotcomputedjustbyaveragingthescores. 19Ibid

programarepredicatedonachievingthreethings:betterhealthoutcomes,amore responsivehealthsystem,andmoreequitablehealthcarefinancing. Forthepastthreeyears,theAquinoadministrationhascontinuedtoemploy effectivemeasurestocontrolrisingcostsinuniversalcoverageimplementationwhile ensuringthataccesstoallavailablequalityhealthserviceisaffordedtoeveryFilipino, especiallythoseinthebottomincomequintiles,withoutexperiencingfinancialhardship.In termsofgovernance,2012hasseenthePresidentmakebigstridesandsubstantialprogress towardsfulfillinghispromiseofhealthforall. Thisisthethirdinstallmentinaseriesofyearlyevaluationsonthehealthsectorby membersoftheMovementforGoodGovernance(MGG)duringtheincumbencyof PresidentAquino.Asinpreviousyears,weprovideacareful,honestandobjective assessmentoftheachievementsoftheAquinoadministrationbasedonhispromisetohis bosses,theFilipinopeople,andassetforthinthemainthrustsoftheAHA. 1. RapidexpansioninNationalHealthInsuranceProgram(NHIP)enrollmentand benefitdeliveryusingnationalsubsidiesforthepoorestfamilies Thechallengeofhavingtwonationalhealthcarefinancingmechanismsofdirect governmentsubsidythroughtheDepartmentofHealth(DOH)andlocalgovernmentunit (LGU)budgets,andtheNHIP,hasbeenmetheadonbytheAquinoadministration.Financial riskprotectionthroughexpansionofthePhilippineHealthInsuranceSystem(PhilHealth) enrollmentprogram,togetherwithimprovementsinPhilHealthbenefitsdelivery,has continuedtobeapriorityforthePresident. TheDOHsincreasedbudgetfor2013ofP54.6billionhelpsassurethatFilipinos wouldbegettingsubstantialhealthbenefits,betterservices,andbecomehealthierthrough thegovernmentspriorityhealthprograms.The2013budgetis25percenthigherthanthe departmentsbudgetin2012anditisalmosttwicethebudgetduringthetimeofPresident GloriaArroyo(P24billion).Moreover,PhilHealth'sbudgethasincreasedtoP60billionthis yearcomparedtoP30billionforhealthexpendituresinthepreviousyear.PhilHealthnow alsohasabiggerreserveofP130billion.About69percentoftheDOHbudgetisallocatedfor priorityprograms,activities,andprojectssuchassubsidyforhealthinsurancepremium paymentsofindigentfamiliesandhealthfacilitiesenhancementprogram.Thesepointtothe commitmentthatthePresidenthastrulymadehealthforallFilipinosatoppriority. Governmenttriestobuildonthehealthgainsofthepastthreeyearswhilecontinuingto providedirect,immediate,andsubstantialhealthbenefitsforallFilipinos,especiallythe poor. AnothermilestonefortheAquinoadministrationisthesigningintolawofRepublic Act10606orTheNationalHealthInsuranceActof2013lastJune19,2013.Thenewlaw, alsoknownas"AnActAmendingRepublicAct7875otherwiseknownastheNationalHealth InsuranceActof1995,asAmendedandforOtherPurposes,amendsthe1995National HealthInsuranceActtoensurethatallFilipinoswillgetcomprehensivehealthcareservices throughasocializedhealthinsuranceprogramthatwillprioritizethehealthcareneedsof theunderprivileged,sick,elderly,personswithdisabilities(PWDs),womenandchildrenand providefreehealthcareservicestoindigents.Italsomandatesthatallcitizensofthe PhilippinesshouldbecoveredbytheNationalHealthInsuranceProgram(NHIP).

Inareport,PhilHealthinformedthatenrollmentratioshaveincreasedfrom62.04 percentin2010to82.38percentin2011to85percentasofMay2012.Ininterviews conductedbyPhilHealthwithsponsoredmemberswhowereidentifiedviatheNational HouseholdTargetingSystemforPovertyReduction(NHTSPR),thememberssharedthat theyfeelthesupportofthecurrentadministrationcomparedtothepast.Significantefforts havealsobeenmadeonincreasingPhilHealthmembership.TheP12.6billionsubsidyfor healthinsurancepremiumwillbeusedtohelpenrollanadditional5.2millionindigent families. Howeverdespitetheseachievements,anumberofchallengescontinuetobe present,foremostofwhichisfulfillingthepromiseofthePresidenttohaveallFilipinos, especiallytheindigenouspeople,underprivilegedandPWDs,tobemembersofPhilHealth bytheendofDecember2013.Anotherproblemisthequickturnoveroftoplevel managementinPhilHealthwithpreviousPresident&CEODr.EduardoBanzonabruptly resigningfromhispostonJanuary2013.ThisleftPhilHealthwithnodedicatedleaderforsix monthsuntiltherecentappointmentofAtty.AlexPadillaasBanzonsreplacement.This negativelyaffectedthecontinuityofthepriorityprogramsandtheprogressthatPhilHealth hasmadesofar. Inaddition,outofpocketexpensesarestillsignificantduringmedicalconsultations andhospitaladmissions.ThePhilippinesstillhasanoutofpocketexpenserateof54.7% (althoughWorldBankfigureshaveitpeggedatamuchhigherrateof83.9%).Movingfroma feeforserviceschemetocasepayments,zerocopaymentswithnobalancebillingfor sponsoredmembers,andprovidingprimarycarebenefitsincludingmedicinesforoutpatient caseswouldseemtobetheideal.Thiscouldaddressthehesitancyofsomeofourfellow Filipinoswhostillhavethemindsetthattheyarebetteroffnotseekingcareservicesfor mostoftheirhealthrelatedproblemsforfearofincurringlargemedicaldebts. 2. Improvedaccesstoqualityhospitalsandhealthcarefacilitiesthroughaccelerated upgradingofpublichealthfacilities Atpresent,theaccessofpoorhouseholdstoqualityoutpatientandinpatientcare fromhealthcarefacilitiesisstillinadequate.RuralHealthUnits(RHUs)andCityHealthUnits (CHUs),districtandprovincialhospitals,andevenDOHretainedregionalhospitalsand medicalcentersdonothavethenecessaryprovisionstomeettheneedsofpoorfamilies. Healthfacilitiesarestillfewifnotnonexistent,andfarbetweengeographicallyisolatedand disadvantagedareas(GIDA)withmostfacilitieslackingbasicsuppliesandequipment. ReportshavebeenmadethatasofAugust2012,governmenthadalreadyspentP15billion fortheconstructionandimprovementofhealthfacilitiesnationwideincludingbirthing centersandhealthcenterswithoperatingroomstopreventmaternaldeaths. The2013DOHbudgetallocatesP13.5billionfortheHealthFacilitiesEnhancement Program(underthePrioritySocialandEconomicProjectsFund)andwillbeusedtoupgrade andmodernizeselectedbarangayhealthstations,ruralhealthunits,district,provincialand DOHretainedhospitals.InarecentreportlastFebruary2013,HealthSecretaryEnriqueOna saidthattheDOHwasinvestingmoreoninfrastructureinordertogivethepooraccessto goodandmodernhealthfacilities.TheDOHhasearmarkedatleastP5.5billiontorepairand upgradehealthfacilitiesintheBicolregionthisyear. Intermsofhealthhumanresources,theDOHisallocatingaroundP2.8billionfor 221physiciansundertheDoctorstotheBarrios(DTTB)programandfortheRuralHealth

Practiceprogramthatwilldeploy22,500nursesfortheRegisteredNursesforHealth EnhancementandLocalService(RNHEALS)andmidwivestoconditionalcashtransfer(CCT) areas.TheNationalPharmaceuticalPolicyDevelopment(includingprovisionofdrugs)hasa P1billionbudgettoprovidecompletetreatmentpackagesto1,395ruralhealthunitsand 160districthospitalsinpoormunicipalities.TheExpandedProgramonImmunization(EPI) hasabudgetofP1.9billionforthefullvaccinationcoverageofeligiblechildrenwith011 monthsofage. Thelistofachievementsforthepastyearwouldnotbecompleteifwedonot mentionthepassingintolawoftheSinTaxReformBill(RepublicAct10352)lastDecember 2012.Forthefirsttime,wehaveaPresidentcommittedtoUniversalHealthCare.TheSin TaxReformLawisexpectedtogenerateP32billionsolelyforhealthin2013with incrementalincreaseseveryyearuntil2023orthereafter.TheSinTaxReformLawmandates thatpartoftherevenuesfromtobaccoandalcoholproductswillbeusedtoenrollthe poorest20%ofthecountryspopulationinPhilHealthandtoupgradeandmodernize hospitalsandotherhealthcarefacilities,amongothers.Basedonprojectionsfromthe DepartmentofFinance(DOF),thelawisestimatedtogenerateincrementalrevenuesof P184.31billionfrom2013to2016,ofwhicharoundP146.7billionistobeallocatedfor health.Butdespitethesesuccesses,therearestillmanygapstofill. Intermsofaccesstohealthcarefacilities,thereareonly18,000barangayhealth stations(BHS)outof42,000barangays.Thisproblemiscompoundedbythefactthatmost RHUs,districthospitalsandBHSlackthenecessarymedicines,medicalsuppliesand emergencyequipment.ThelackofaBHSin24,000barangaysspellstroubletothepoor. ThehealthinfrastructurebudgetmainlybenefitsDOHhospitalsaspriorityfacilities comparedtoRHUsandBHSwhencarefullyanalyzingtheproportionofallocatedfunds.One exampleisintheprovinceofBatangas,wheretheDOHisonlyprovidingfundingtobuildor improveoneBHSpermunicipalityperyear.Evenwithprioritiesbeinggiventoconverting 2,000RHUsintobirthingcenters,improvementsinaccesstoqualityfacilitiesremainslow. Thereisstillalackofasenseofurgencytocurtailtheproblem. Healthhumanresourcesmanagementisanotherkeyareatoimproveon.Inpoor areassuchasIfugao,Palawan,Iloilo,Surigao,SarangganiandSouthCotabato,thenurses deployedundertheRNHEALSprogramtendtobeclusteredinRHUsratherthanbeassigned inaparticularbarangay.Withavailabilityandaccessibilityofhealthservicestothepooras oneofthemaintenetsofUHC,thereshouldbeatleastonenurseormidwifedeployedat thebarangaylevel.AnotherrecommendationisforRNHEALSnursestobeappointedforat leastthreeyearstoengagethecommunityinaddressinglocalhealthproblemsaswellas providecontinuityofcareandservicesespeciallyformaternalandneonatalhealth. 3. AttainmentofthehealthrelatedMilleniumDevelopmentGoals(MDGs)by applyingadditionaleffortandresourcesinlocalitieswithhighconcentrationof familieswhoareunabletoreceivecriticalpublichealthservices ItseemshighlyunlikelythatthePhilippineswillmeetallofitsMDGcommitmentsby 2015particularlywithregardstoreducingmaternalmortalityandcombatingHIV/AIDS.To reachtheMDGonreducingthematernalmortalityrate(MMR),thegoalistohavenomore than52mothersdyingforevery100,000livebirths.However,thePhilippinesstillhasoneof theworstmaternalandreproductivehealthindicatorsinAsiaandisat75thplaceamong189 countriesintermsofcasesofmaternaldeaths.Aradicalanddisturbingtrendhasbeenseen inthecountrysMMRinthepastfiveyears.Duringthe2011FamilyHealthSurvey,an

alarmingincreaseinthematernalmortalityrate(MMR)wasfoundwith94deathsin2008, 162deathsin2009,and221deathsper100,000livebirthsin2011.Thelatestdatafromthe UnitedNationsFundforPopulationAgency(UNFPA)hasrevealedthat11mothersdieevery dayduetomaternityrelatedcauses. Therefore,thepassingoftheReproductiveHealth(RH)billintolaw(nowknownas RepublicActNo.10354ortheResponsibleParenthoodandReproductiveHealthActof 2012)lastDecemberwaswidelyregardedasapositivestepandanothermilestoneofthe Aquinoadministrationinhelpingalleviatethisseriousproblemwithmaternaldeaths. However,asalandmarklawandnotwithoutmajorcontroversies,sinceitwaspassedina predominantlyCatholicnation,theRHbillispresentlyinstatusquoanteasgrantedbythe SupremeCourtandthishasdelayeditsimplementation.TheSupremeCourtrecentlybegan hearingtheargumentsandcounterarguments. ThePhilippinescouldalsolearnfromthebestpracticesandstrategiesemployedby otherneighboringcountriesinordertodecreasethenumberofmaternalmortalities. Malaysia,ThailandandSriLankawereabletodrasticallyreducetheirMMRwithinaspanof twotothreeyearsbyassigningonenurseormidwifeineveryvillage.Studieshaveshown thatbirthsattendedbyahealthprofessionalorskilledbirthattendant(SBA)arecriticalin reducingtheMMR. Intermsofreducingthechildmortality,therehasbeensteadyimprovementwith under5mortalityrategoingdownto30deathsper1,000livebirthsfrom32in2009.Infant mortalityrate(IMR)wasat40deathsper1,000livebirthsandneonatalmortalityrate (NMR)wasat22deathsper1,000livebirths.Inthe2012reportontheLevelsandTrendsin ChildMortalitybytheUnitedNationsInteragencyGroupforChildMortalityEstimation, theyestimatethattheunder5mortalityinthePhilippineswillbeat19deathsper1,000live birthsby2015withanannualreductionrateof3.8%.ThetargetforMDG4(reducingchild mortality)isnomorethan27deathsper1,000livebirths. InthefightagainstHIV/AIDS,itseemsthatanepidemicisinourmidst.Froman averageofninenewcasesofHIV/AIDSadayin2012,12newcaseswereregisteredeachday inJanuary2013.Itisthemostnumberofcasesinasinglemonthsince1984whentheDOH startedthePhilippineHIVandAIDSRegistry.Itwasfoundthat61percentofthenewcases werefrom20to29yearsold. ItishopedthatpassingtheSinTaxReformLawwhichincreasesthepricesof cigarettesandalcohol,willsignificantlyreducethenumberofyoungandpoorpeoplewho aresmokinganddrinkingexcessively.Asaconsequence,thiscouldhelpinloweringthe incidenceofsmokingrelatednoncommunicablediseasessuchaslungcancer,heartattack, strokes,andchroniclungdisease,aswellasalcoholrelatedproblemssuchasliverdiseases andtraumacausedbydrunkdrivingincidents. Consideringtheseachievementsaswellasthegapsthatstillhavetobeaddressed, thescoresareasfollows:

PLATFORM 2010 2011 2012 1.UniversalHealthCareRoadmapthrougharefocused 4 6 6 PhilHealthprogram 2.Improvedaccesstoqualityhospitalsandhealthcare 2.5 2 6 facilities 3.AttainmentofhealthrelatedMDGs4,5,6 2.5 1.5 4.5 TotalScore 7.5 9.5 16.5 AverageScore 3.0 3.17 5.5 Withallthebudgetandresourcesallocatedbeingflushedintothehealthsector now,oneofthetopchallengesisaddressingtheabsorptivecapacityofthehealthsector. Mosthealthleadersandmanagersarestillinthe"povertythinking"paradigmandtheyhave notshiftedtheirmindtoarelativelyresourcerichenvironmentforhealth.Thisthinkingis stillprevalentingovernment,privatesector,andcivilsocietyorganizations. ThecurrentratingindicatesthatUHCtargetssetbyPresidentAquinoatthe midpointofhissixyearadministrationhavenotbeenfullyachieved,althoughsignificant stepshavebeentakentoaddressthese.ThestrategicthrustsofAHAarenotmutually exclusive;thereisaneedtostreamlineandallocateresourceswiselyinordertoattain universalhealthcareforallFilipinos. D.EDUCATION

ThePresidentsBasicEducationReformAgendaisbuiltonaTenPointAgendamade during the 2010 campaign period to be carried out by the Department of Education. The Agenda introduces structural reform. At the halfway mark of the PNOY Administration, the evaluators divided policy from implementation; the former should have already been enacted with the latter now moving on to center stage. Hence, the weights for the ten pointshavelargersubweightsthatplacethefocusonimplementation. Total Policy Implementation CampaignPromise Weight (30%) (70%). 1. TwelveyearBasiceducationcycle 2.0 0.6 1.4 2. Universalpreschooling 2.0 0.6 1.4 3. MadariseducationforMuslimFilipinos asasubsystemwithintheeducationsystem, 1.0 0.3 0.7 4. Technicalvocationaleducationasan 0.5 0.15 0.35 alternativestreamforhighschool 5. Everychildareaderbygrade3 0.5 0.15 0.35 6. Scienceandmathproficiency 1.0 0.3 0.7 7. Assistancetoprivateschools 0.5 0.15 0.35 8. Mediumofinstruction 1.0 0.3 0.7 9. Qualitytextbooks 1.0 0.3 0.7 10. CovenantwithLGUstobuildmoreschools 0.5 0.15 0.35 1. Twelveyear Basic Education Cycle. I will expand the basic education cycle, from a 10year cycle to a globallycomparable 12 years, for our public school children. At present,

those who can afford basic education get into the best universities and the best jobs after graduation. WiththepassageofRepubicAct10533,thepolicyforexpandingthebasiceducation cycle has been enacted into law. This puts to rest the uncertainty of the policy direction. MGG notes, however, the incrementalist approach to implementing the additional two years. DepED is keeping many in suspense by not making available the entire new basic educationcurriculum.Instead,theyinsistonrollingoutcurriculayearbyyear. InSY201112,DepEDreleasedthenewGrade1andGrade7curriculum;inSY2012 13, the Grade 2 and Grade 8 curriculum were released. With such a program, schools will not be given the Grades 11 and 12 curricula until the year of implementation. This is ironic given that the additional two years are already a disruptive reform and schools, particularly private schools, want to prepare well in advance rather than wait until the last minute to developtheirseniorhighschools. In addition, DepED does not appear to be moving with any urgency to build the senior high school infrastructure. By relying on higher education institutions, DepED thinks that it will be able to meet the needs of senior high school students in the short term. HEIs for the most part, however, are urban based. The real threat to Philippine education thus will be rural high school students not having access to senior high schools unless DepED buildsthisinfrastructurealready. Rating:10.2 Policy:weight0.6x10rating Implementation:weight1.4x3rating 2. Universal preschooling (kindergarten) for all. All public school children will have preschool as their introduction to formal schooling by 2016, and we will make this available toallchildrenregardlessofincome. The policy reform is complete with the enactment of the Universal Kindergarten Law. Teaching materials have been developed and are available for digital downloads reported by DepED. In its desire to roll out a universal kindergarten quickly, DepED has chosen to move higher grade teachers to teach K level or are relying on volunteer teachers. The number of ECCDtrained teachers in the system is well below the number of classes organizednationwideandwillremainsoforsomeyears. Rating:15.8 Policy:weight0.6x10rating Implementation:weight1.4x7rating 3. Madaris education for Muslim Filipino children as a subsystem in the education system. I want a full basic education for all Muslim Filipino children. This is to give proper respect to their culture while providing a sound curriculum in English, Filipino, science, and math.Madariseducation,withsubjectsinArabiclanguageandIslamicvalueseducation,can beintegratedinourpublicschoolcurriculumasadditionalsubjects.

Madaris education has been slowmoving in DepED since the office was downgraded.Fundingsupporthasremainedstablesincetheadministrationtookoverbutis low relative to the size of the need. As a result, Madaris education remains predominantly private and mosquebased. This does not provide a full education for Muslim Filipino children, however, in those schools whose focus is on Arabic Language and Islamic Values Educationprimarily.Thiswillremainthecaseuntilpublicmadarisisexpanded. Rating:3.6 Policy:weight0.3x5rating Implementation:weight0.7x3rating 4. Technicalvocational education as an alternative stream in senior high school. I will reintroduce technicalvocational education in our public high schools to better link schooling to local industry needs and employment. We need to provide an educational alternativetobetterpreparethestudentsfortheworldofwork. DEPED has made efforts to recognize the ladderized education curriculum and to integratetheSTVEPintotheformulationofthenewcurriculum.Butthepacehasbeenslow following an initial quick start. A number of high schools nationwide have been selected to pilottest a Grade 1112 curriculum which is primarily techvoc in content. Despite this, the feeling is that techvoc is not given as much priority even in the discussions of the Steering Committee. Rating:2.5 Policy:Weight0.15x5 Implementation:Weight0.35x5 5. Every child a reader by Grade 3 (Grade 1 once universal preschooling is realized).By the end of the next administration, every child must be a reader by Grade 1.At the core of our childrens nonlearning problems is the inability to read properly. By the end of the next administration (SY 201516), every child passing preschool must be a reader by Grade1. Funds for reading have been rolled out in at least 8 regions as of 2011 though the budget is too small compared to the need. The procurement of reading books which was being promoted by a project called the Library Hub has been stymied by the Instructional Materials Council Secretariat (IMCS) which has a textbook (not reading book) orientation. TheLibraryHubwhichhasbeentheDepEDslargest,ifnottheonly,departmentwideeffort to supply reading books to schools has been slowed down. No other project to supply readingbooksisbeingpursued. Rating:2.5 Policy:Weight0.15x5 Implementation:Weight0.35x5 6. Science and math proficiency. I will rebuild the science and math infrastructure in schools so that we can produce more scientists, engineers, technicians, technologists and teachers in our universities so that this country can be more globally competitive in industry

andmanufacturing.To buildacultureforscienceandmath, Iwill promote science andmath clubsandfairs. Very little has been done to expand science and math in the regular public school system. While there continues to be higher support for the 130 or so DepED science high schools, the level of support for regular public high schools remains low. Computerization of schools is an ongoing concern but computerization by itself is not an enhancement of science and math skills necessarily. Furthermore, the computerization program of today is now largely replacement of obsolete hardware. The level of interconnectivity under a programsuchasGILAShasalsobeenslowerinexpansion. Rating:5.0 Policy:Weight0.3x5 Implementation:Weight0.7x5 7. Assistancetoprivateschoolsasessentialpartnersinbasiceducation.Iwillexpand government assistance to private education. A strong private school system will strengthen ourpublicschoolsbyprovidingparentsanalternativeandnotaddingtotheovercrowding. Governments assistance to students and teachers in private education (GASTPE) program has been substantially increased since 2010 as planned and is being studied for further expansion for the senior high school years. The total number of student slots that are currently available for subsidy is over 750,000. Private schools, however, state that the amounts paid out per student remain too low to be an alternative except for the lowest tuitionlevelschools. Rating:3.95 Policy:Weight0.15x10 Implementation:Weight0.35x7 8. Medium of instruction. Weshouldbecometrilingualnation:LearnEnglishwelland connect to the world. Learn Filipino well and connect to our country. Retain your dialect and connectwithyourheritage. The Mother TongueBased Multilingual Education (MTBMLE) is one of DepEDs successstories.Thepolicyhasbeenpassedintolawandbudgetsupporthasbeenexpanded to reflect this. Twelve major languages in the country are now included in the program and teacher training has been conducted. The most serious shortage reported by DepED has been the lack of teaching materials in the native tongue. MGG feels that this might be misguided. The program should not be about producing an entirely new set of materials in the mother tongue. The program should be about producing teachers guides on how to explainlessonsinthemothertongue. Rating:9.3 Policy:Weight0.3x10 Implementation:Weight0.7x9

9. Quality textbooks. I will not tolerate poor textbook quality in our schools. Textbooks will be judged by three criteria: quality, better quality, and more quality. Poor qualitytextbookshavenoplaceinourschools. DepED has focused a lot of attention on delivering quality textbooks and is to be commendedonthis.Thepracticeisbeingrevertedbacktoapracticethatwascarriedoutin the preEDSA 1980s period which was rife with corruption. Textbook procurement at that timewasdividedintothreestages:editorialproduction,printinganddistribution. In late 2011, textbook procurement by DepED was undertaken by direct contracting despitethefactthiswasinviolationoftheGovernmentProcurementActof2002.Whilethe Government Procurement Policy Board raised questions with this, it did not stop DepED from pursuing this procurement method. In 2013, it appears that DepED will expand this practice placing it effectively outside the Procurement Act in practice. This will set up corrupt practices in future because of the high degree of discretion placed in the hands of theprocurementauthoritiesinthedepartment. Rating:3.6 Policy:Weight0.3x5 Implementation:Weight0.7x3 10. Covenant with local governments to build more schools. I will build more schools in areas where there are no public or private schools in partnership with local governments, as well address our persistent classroom and teacher shortages. We need more schools with smaller populations so that teachers, students and parents can form a real learning community. The focus on shortages should be an opportunity to build new schools and not just classrooms (in already overcrowded schools). Instead the largescale publicprivate partnership in classroom construction builds new classrooms in many alreadyovercrowded schools. This adds new classroom stock but does not address overcrowding which the promisewaseffectivelyabout. Rating:1.75 Policy:Weight0.15x1 Implementation:Weight0.35x5 ScorecardinEducation,2012 CampaignPromise Weight Score(Ratingx weight) 1. TwelveyearBasiceducationcycle 2.0 10.20 2. Universalpreschooling 2.0 15.80 3. MadariseducationforMuslimFilipinos 1.0 3.60 Asasubsystemwithintheeducationsystem, 4. Technicalvocational education as an alternative stream 0.5 2.50 forhighschool 5. Everychildareaderbygrade3 0.5 2.50 6. Scienceandmathproficiency 1.0 5.00

7. 8. 9. 10. Total

Assistancetoprivateschools Mediumofinstruction Qualitytextbooks CovenantwithLGUstobuildmoreschools 2013Scorecard:5.79 E.EnvironmentalManagement

0.5 1.0 1.0 0.5

3.65 9.30 3.60 1.75 57.90

PresidentAquinohasmadeatleastfive(5)campaignpromisesrelatedtothe environment,towit: 1. CaringfortheEnvironment Fromallowingenvironmentalblighttospoilourcities,whereboththerichandthe poorbearwithcongestionandurbandecaytoplanningalternative,inclusiveofurban developmentwherepeopleofvaryingincomelevelsareintegratedinproductive,healthy, andsafecommunities. 2. SustainableResources Fromagovernmentobsessedwithexploitingthecountryforimmediategainstoa governmentthatwillencouragesustainableuseofresourcestobenefitthepresentand futuregenerations. Duringthecampaign,PresidentAquinomade24additionalandmorespecific promisesincluding20: 3. Strictlyenforceenvironmentallaws In celebration of Earth Day on April 22, 2010, the President vowed to make disaster preparedness and the strict enforcement of environmental laws as key objectives of his administration. 4. Safersourcesofrenewableenergy President Aquino stated that he would rather exhaust other means than resort to nuclear power. We have other perceivably safer sources of renewable energy. Nuclear energy has reemerged as an option to satiate the worlds present and future electricity needs. However, it continues to face social acceptabilityproblems because of fears about the safety of its use. There are other sources of energy that have less chances of endangeringthelivesofpeople.InthecaseoftheBataanNuclearPowerPlant,ithasalarge amount of documented safety hazards and may pose a threat to the safety and/or well beingoftheresidentsaroundit. 5. Populationmanagementviaresponsibleparenthood

20ThePromisesofBenignoC.AquinoIII.www.blogwatch.tvlastaccessed15July2013

The President promised that his administration will fully support the crafting of a firm policy that will address the serious problem on population. It will be based on the idea of responsible parenthood: imposing on parents that they should play a key role in ensuring that each and every child they bring into this world has the opportunity to lead a good life, and educating them about the means with which to plan their families so they can create families based on their ability to sustain their needs .In the process of providing a range of optionsandinformationtocouples,bothnaturalfamilyplanningandmodern methodsshall bepresented. 1. CaringfortheEnvironment President Aquino issued EO 26 on February 24, 2011 establishing the National GreeningProgram(NGP),a6yearreforestationprogramtogreensome1.5millionhectares of degraded forest lands. It was personally launched by the President with an interagency team to develop a sustainable forest resource base and rejuvenate rural economies. Its ultimate goal is to provide livelihood opportunities for some six million families in the upland areas across the country within six years. The President issued Proclamation 125, declaring 2011 as the National Year of Forests in the Philippines, in support of the UN declaration. The President Aquino has approved the framework developed by the Climate Change Commission including the National Framework Strategy on Climate Change (NFSCC), National Climate Change Action Plan (NCCAP) and guidelines for Local Climate Change Action Plan (LCCAP). These plans cover programs from 2011 up to 2028 as the impact of climate change would require an economic and societal transformation. Some of the green goalsidentifiedinclude:foodsecurity;watersufficiency;humansecurity;andenvironmental and ecological stability. President Aquino likewise signed the Peoples Survival Fund (PSF) intolaw,whichprovidesaPhp1.0billionfundannuallyforprojectstomitigatetheeffectsof climate change in the country. The law complements The Climate Change Act of 2009 that waspassedundertheArroyoadministration. Funding has been given to support framework implementation. The Climate Change Commission disclosed that the Aquino administration will allocate P13 billion in 2014 for Climate Change mitigation and adaptation. The Commission signed an MOA with University of the Philippines in June this year toward capacity building programs for the implementationofthisframework. While these frameworks are in place, implementation efforts need to be coordinated and monitored to secure and sustain their mitigation and adaptation effects. The environmental targets have yet to be reflected in the Medium Term Philippine DevelopmentPlan(MTPDP)for20112016.Thistaskwillneedbroadercitizensparticipation in the development and approval of the MTPDP. Government has not moved toward physical and sustainable resettlement programs to relocate informal settlers along waterways.Continuedinactionwillexacerbatetheadaptationofvulnerablecommunitiesto climatechange. 2. SustainableResources Under President Aquino's term, mining investments are expected to be made by 2016. The administration has repeatedly issued statements in support of mining liberalization. The appointment of the former Executive Director of Philippine Mining Development Council (PMDC) as DENR Secretary and Presidential Adviser on Mining further

indicates the administrations adherence to the previous administrations path towards mining liberalization. Much remains to be seen if law enforcement will mitigate the ecologicalfootprintfromincreasedminingactivities. Two large scale mining accidents have taken place, with Philexs Mine in Tubo and Itogon, Benguet (highlighted as the largest mine disaster in the countrys history) and CitiNickels mining spills in Narra, Palawan. This illustrates the lack of regulatory and environmentalenforcement,whileremediationoversightandpenaltyenforcementhaveyet to be seen to rehabilitate the damaged communities and waterways. Both companies have beenallowedtoresumedespitetherehabilitationstatus. OnJuly9,2012,MalacanangissuedEO79whichdetailsthegovernmentsnew policyonmining.TheEOseekstoincreasethegovernmentssharefromminingactivities, imposeamoratoriumonthegrantoflicensestonewminingactivities(pending Congressionalactiononroyalties),andattemptstoalignnationalpolicywithlocal regulations.Theadministrationhasbeenrecognizedbyacademics,activistsandthemining industryforhavingconsultedandreflectedstakeholderinputsintheformulationofEO79.It remainstobeseenhowsuchapolicywillbeenforcedinthemidstofanincreaseinmining activities,andhowtheAdministrationwillsupportthepassageofMiningActamendments inthecomingCongressgivenitsstrongercontrolonbothHouses. ThePresidentsissuanceofExecutiveOrder23wasawelcomerelieffrommassive deforestationandalackofadecisivepolicyinthisregard.EO23imposedanindefiniteand comprehensiverestrictiononloggingalloverthecountrydespiteoppositionfromwood producers.AnationwideloggingmoratoriumonPhilippinenationalandresidualforestsisto beobservedtoprotectandstopthedestructionofwatershedsandriversystems.TheEO createdataskforcetoleadgovernmentscampaignagainstillegallogging.UnderEO23, DENRisinstructedtostoploggingfirmsfromcuttingtreeswhilegovernmentisinthe processofreviewingallexistingloggingagreements.DENR,throughMO52,isnow mandatedtoimmediatelycanceltheconcessionsofloggingcompaniesthathaveviolated forestlaws,whileceasingfromissuingandrenewingloggingcontractsandtreecutting permitsinallnaturalandresidualforests.EO23hasbeencriticizedforloopholesinthe sensethatithasnotrevokedorcategoricallybannedcommercialloggingbutonlystops DENRfromgrantingnewcontractswhilereviewingexistingcontracts.Loopholesinvolvethe abilityofspecialintereststolobbyforlabelingnaturalandresidualforestsasplantation foreststosecureanexemption.Continuousflashfloodsandmassiveevidenceofillegallogs inthesesitesbetraythelackofenforcementofthispolicy,andtheAdministrationneedsto followthroughonenforcementissues. 3. Strictlyenforceenvironmentallaws Despite pronouncements of finding a balance for resource use and environmental protection, the Administration has a mixed record in enforcing the Philippine Clean Air Act or Republic Act No. 8749. Certain provinces such as Cebu have experienced coal ash residues, listed as an air pollutants, prompting Cebu local government officials to take action themselves to suspend the companys (KEPCOs) business permits. President Aquino has praised KEPCOs record as being very friendly to the environment despite the experienceofthehostcommunity. DENR has yet to implement the Ecological Solid Waste Management Act (Republic Act 9003) prohibiting the operation of any dumpsite by local government units in the

country.Underthelaw,thesedumpsitesmustbereplacedbyasanitarylandfill(SLF).Italso mandates the LGUs to come up with a 10year Solid Waste Management Plan that must be completelyinplaceby2011. Related to this, the enforcement of environmental protection remains woefully inadequate with the unabated rise in environmentrelated murders. Twentysix (26) environmental activists have been killed under the Aquino administration. The other 33 cases of killings among environmentalist activists since 2001 remain hitherto unresolved. In response, the President has given 7 posthumous awards for these environmental heroes for their efforts, but prosecution support and outcomes are wanting. Aquino also ordered the Executive Secretary to provide the Environment Heroes Foundationwith P5.0 million from the Presidential Social Fund to assist families who were left behind by employees of the DENR who died in their line of duty. President Aquino also ordered the National Bureau of Investigation and Philippine National Police to form a joint task force for the arrest of the perpetratorsandthemastermindsofthecrimes. Poor oversight and lack of enforcement on rehabilitation and reparation of Tubbataha reef from U.S. and Chinese vessels has highlighted the lack of regulatory and politicalcompetenceoftheadministration.ThecontinuedstandoffatthePanatagshoaland WestPhilippineseadisputeshaveremainedunresolved,whileChinesepoacherscontinueto desecratemarinesourceswithimpunityamidstthegeopoliticalstandoff. PostEO 23, a bright spot has been the reduction of logging hot spots in the country from 197 to 31 as claimed by the Dept. of Environment and Natural resources. The President ordered three government agencies the Department ofInterior and Local Government (DILG), Department of Justice (DOJ), and DENR to intensify the campaign against illegal logging. The successful prosecution of violators remains to be seen. It should be noted that some P16.0 million worth of illegally cut logs in Butuan City were undetected bylocalpersonnel. 4.Safersourcesofrenewableenergy

OnJune16,2011,theDepartmentofEnergy(DOE)launchedtheNational RenewableEnergyprogramthataimstopromoteincreasedshareofrenewablesinthe countrysenergymix.PresidentAquinohaslikewisepronouncedaneedformoratorium againsttherevivalofnuclearpowerinthecountry,inresponsetothecontroversy generatedbytheJapannuclearincident. The Department of Energy (DOE) has, after long delays, promulgated feedintariff (FIT)ratesforrenewableenergy.However,permitscontinuetobegiventoinvestorsincoal fired power plants. In the meantime, the DOE is processing bids for coal extraction for 38 sites with its successfully concluded contracting round in March 2012. This forebodes an increased dependence on coal as a primary fuel source. Between 2009 and 2010 alone, the percentage share for coal in power generation increased from 27 percent to 34 percent.Further,10(ten)morecoalpowerplantsareprojectedtobeconstructedwithinthis decade. 5.Populationmanagementviaresponsibleparenthood President Aquinos lastminute support for the passage of the Reproductive Health LawhasbroughtthePhilippinestothemainstreamofcountrieswherethestateismandated

to provide modern and natural family planning methods, and the underlying recognition of the role of large family sizes and increasing population to the countrys sustainable development. Aquinos appointed Supreme Court justices have also voted (albeit unsuccessfully) to implement the Law despite the petitions from rabidly conservative Catholicgroups. While the law languishes in the Supreme Court, and because of such inaction, the Philippines climbed higher on the Annual Ranking of Failed States21. The Philippines is in the same league as Equatorial Guinea, Egypt, Laos, Pakistan, and Bangladesh in terms of population pressures, (7.7/10); and ranked worse than West Bank, Papua New Guinea, and Angola. Further, the countrys resulting ecological state continues to worsen with such inaction:
o o o

ThePhilippineshaslessthan10percentofitsforestcoverandcoralreefsremaining22, whileonly39percentof525waterbodiesarepotentialsourcesofdrinkingwater.23 44 percent of the population earn less than $2/day, and 2/3 of the population are engagedinunsustainableenvironmentalandnaturalresourceusage.24 ThePhilippinessharestheviciouscycleofhighpopulationgrowth,socialconflict;large migration; depleted ecosystems, food, water and energy insecurity/insufficiency/dependence; failing governance; failing health care and education systems as political and environmental hotspots as Afghanistan, Bangladesh, Burundi, Haiti, Indonesia, Nepal, Madagascar, Mongolia, Pakistan, and the SolomonIslands.25 Growing population, combined with inconsistent governance, has increased the Philippines resource demand from less than its own biocapacity in 1961 to over twice itsdomesticallyavailablebiocapacityin2002.26 ScorecardonEnvironmentalManagement,20102012

21ForeignPolicyMagazinesAnnualRankingofFailedStates.www.foreignpolicy.com.ThePhilippinesclimbedupthe rankingandisnowat53(2009)from58in2007,drivenbyakeycomponent:populationpressures 22ConservationInternational.PhilippineBiodiversityConservationProfiles.2002.Pp.34. 23EMB.2006.NationalWaterQualityStatusReport2001to2005.http://www.emb.gov.ph/wqms/2001 2005%20NWQSR/NWQSR%20%20Body.pdfand,WorldBank.2003.PhilippineEnvironmentMonitor 24StateofthePhilippineEnvironment:AProgressReport,February2006 25Diamond,Jared.Collapse:HowSocietiesChoosetoFailorSurvive.Penguin.2005.pp.496499;515516 26WorldandCountryTrends.GlobalFootprint Network.http://www.footprintnetwork.org/en/index.php/GFN/page/footprint_for_nations/

F.GOVERNANCE Theassessmentongovernanceisbasedontheprogressofimplementingthe governanceplatformofthePresident:ensuringacleanandpeacefulelectioninARMM, institutingaperformanceincentivesystem,actingontheirregularitiesasreportedbyCOA, andgovernancewithintegrity. 1.EnsurethattheARMMelectionisclean,orderly,andpeaceful. ThePresidentdeclaredinhis2011SONAhisvisionforacleanandpeacefulelection inARMMwheretheopportunitiestobeelectedwillbefair.Gustonatingmaranasanng Performance 2010 2011 2012 1.CaringfortheEnvironment 5 6 6 2.SustainableResources 6 6 5 3.Strictlyenforceenvironmentallaws 2.5 5 5 4.Safersourcesofrenewableenergy 7.5 5 5.5 5.Populationmanagementviaresponsibleparenthood 2.5 4 5 Total 23.5 26 26.5 Average 4.7 5.2 5.3 ARMMangbenepisyongtamangpamamahala.Kayaangatinpongminungkahingsolusyon: synchronization.Dahildito,kailangannilangtumutoksakanikanilangmgakampanya; magigingmaspatasanglabanan,atlalabnawangcommandvotes.SalamatposaKongreso atnaipasanaangbatasnamagsasabaysahalalanngARMMsahalalangpambansa.(SONA 2011) GovernmentsuccessfullypushedforthepostponementoftheARMMelection towardasynchronizedelection.ThePresidentappointedanOfficeinCharge(OIC)ofthe regionwhoeventuallyranandwontheelectionasARMMGovernor.Itshouldberecalled thatwhenthebillpostponingtheARMMelectionwasbeingdiscussedinCongress,the OfficeofthePresidentissuedastatementthattheOICthatthePresidentwillappointto ARMMwillbeineligibletorunintheregionalelectionssetfor2013...toavoidgrantingany undueadvantagetotheOIC.IntheeventthatsuchaprovisionisnotenactedbyCongressin thefinalversionofthebill...'alternativemeasures'willbetakenbythePresidenttoenforce theprohibition.Allnomineeswillberequiredtoexecuteawrittenundertakingnottorunin the2013electionsintheeventtheyareappointed.27Itwasreportedthatitwasthe presidenthimselfwhoconvincedGovernorHatamantorundespitethePresidentsearlier assurancesthattheOICGovernorwillnotseekthegubernatorialpostin2013.28Whilethe PresidentkepthispromiseofsynchronizingARMMelectionwiththenationalelectionin 2013,hefailedtodeliverhispromiseofalevelplayingfield. TheARMMelectionmadehistoryasmanypollingprecincts,i.e.sixtynineprecincts and70clusteredprecincts,registereda100percentvoterturnout.Thisdevelopmentwas statisticallyimprobableandamanipulationofthevoteswasalikelihood.29 Score:3

27NamfrelElectionMonitor,vol.2no13.>www.namfrel.com.ph/v2/news/bulletinv2n13

postponing_armm.php, 28AngelaCasauay,OICnoMore,HatamanwinsasARMMGovernor http://www.rappler.com/nation/politics/elections2013/29468hatamn 29AriesRufo,70Precinctspost100%Turnout,mostlyARMM, http://www.rappler.com/nation/politics/elections2013

2.PerformanceIncentiveSystem ThePresidentplatformalsoincludestheinstitutionofaperformanceincentive systemmatcheverypesoinvestedin4thand5thclasslocalgovernmentunitsinbasic education,maternalandchildcare,andpotablewaterandlatrine.Inhis2012Sona,the Presidentpromisedthedevelopmentofaperformanceincentivesystemwherethebonusof anagencywilldependontheaccomplishmentofitstargets. Theperformanceincentivesystemforgovernmentwassuccessfullylaunched throughtheDILGsSealofGoodHousekeepingandPerformanceIncentiveFund(PCF) undertheleadershipofthelateSecretaryRobredo.ThePCFisusedbygovernmentasatool toinfluencelocalgovernmentunitstodealwiththeirconstituentsinatransparent, collaborativeandefficientway.Toobtainonemillionpesos(Php1.0million)fromthePCF, theLGUmustobtainaSealofGoodHousekeeping(SGH).ThesealisonlygiveniftheLGU complieswiththerequirementsforfulldisclosureoftheirbudgets,policiesandoperations. TheCommissiononAudit(COA)mustnothaveanyadversefindingsontheLGUsfinancial management.SecretaryRobredoemphasizedthattheSGHopenstheroadtowardsanew systemofgovernance. ThePCFmadeLGUsmorecompliantwithMemorandumOrdersofDILGandother governmentagencies.TheCOAreportisnotjustconsideredalistofdisallowances.Itis nowaninputonhowfinancialoperationscanbecomemoreinlinewithgovernment standards.ThePCF,thoughrelativelysmallhassignificantlychangednorms,values,and processes: LGUsrealizehowtoaligntheirprioritieswiththepoliciesofthenational government.ThePCFhelpedtranslatetheagendaintoprogramsthatLGUs shouldimplement. TheprocessesinvolvedinPCFsuchasproposalmakingandbudgetinghave providedguidancetoLGUsonthestrategic,transparent,andefficient utilizationofpublicfunds. TheSGHandthePCFleveltheplayingfield.Fromasystemwheresubsidies aregivenbasedonpoliticalpatronageandthepalakasansystem, everybodywhoperformswellisgivenanequalopportunitytoobtain fundingassistancefromthecentralgovernment. LocalChiefExecutivesnowappreciatetheimportanceofbeingthemodel andinspirationsothatvaluesandpracticesthatcanpromotegood governancecanflourish. TheSGHisusedtoleverageadditionalresourcesintermsoftaxpayment fromtaxpayers,sweatequityfromresidents,andsharingofresourcesfrom barangays.

APerformanceIncentiveSystemfortheentiregovernmentmachineryhasbeen launchedbythePresident.(ExecutiveOrderno80s2012).Thesystemisintendedto focusonresultsandthequalityofpublicservice,instituteaperformancescorecardfor agencies,andlinkbonuseswiththeagencyandindividualperformance.Bypromoting

transparency,accountabilityandmeritocracy,theperformanceincentivesystemwill promotebettergovernanceanddeliveryofpublicservice.AsofNovember2012,the PerformanceBasedBonusapplicationsof48agencieshavebeenapprovedbyDBM.30 Score:8 3.TakeallactionsonirregularitiesintheCOAreports. The Commission on Audit has religiously assumed its task of auditing the disbursementofpublicfunds.TheCOAhasnotbeenremissinreportingdisbursementsthat have been unliquidated and unaccounted for. Government agencies have taken steps to explain and correct noted inefficiencies. However, the corrective actions have been reactive,sporadic,and disparate. Theypartakeofthe creationof committeestoinvestigate mismanagement, partnerships with civil society organization to provide oversight, strengtheningofcomplianceverificationsystem,directives toresponsibleofficerstocomply with COA requirements, and filing of charges before the Ombudsman. The COA findings are indicators of weaknesses in systems and call for systemic solutions. Government agencies have to analyze policies and procedures to determine the factors that give rise to opportunitiesforabuseanduseofdiscretion. AbusesarealsocorrectedthroughthefilingofcasesbeforetheOmbudsman.Some 2,669 cases were filed before the Ombudsman in 2012, mostly against erring LGU and PNP officials. But the filing of cases is just the beginning. Justice must be served through a swift resolution of cases and the meting of punishment on those who abused their power. A record on the resolution of the 2,669 cases as well as the cases that were filed in previous years (3,852) must be made by the Ombudsman.31Otherwise, the beginning of justice becomesitsend. Score:6 4. OtherInitiativesonGovernance The Aquino Administration continues to enjoy the trust of the Filipino people. After three years, the performance of the President has received a high level of approval, i.e. 65 percent approval rating32 from the Filipino people. This is attributed to his personal integrity and commitment to make reforms, albeit possibly slow and faced with challenges. More importantly, many Filipinos and critical observers share the opinion that as an individual and leader, the President has not shown cases or instances that will link him to corruption and abuse of government resources. This explains the high trust bestowed on thePresidentandindeedaugurswellforhisadministration. The public also reacted favorably on the Presidents fervor in seeing the impeachmenttrialofChiefJusticeRenatoCoronacomeintofruition.

30LauraPascua,performanceIncentivesBasedonresults:,November,2012 31AngelaCasauay:MostOmbudsmanCasesfiledvs.LHUsandPNPJune26,2012,

www.rappler.com/nation/32247lgupnpombudsmancases
32PulseAsiaSurvey,March20,2013

The other highlight of the governments accomplishments is the peace negotiation with the Moro Islamic Liberation Front. The principles and a common framework were defined, and the specific strokes of the way forward were begun, although with interruptions characterized by disturbances by the Sabah claims and issues affecting Filipino Muslims in Sabah. The administration tried to deal with these controversies, although a more systematic approach could possibly been had. Consultations and some inputs from some academics and history and culture experts could have been sought in this regard before taking on difficult decisions regarding the tense relations with Malaysia with regard toSabahandtheoverseasFilipinos. The good performance of certain government agencies has also supported the trust ofthepubliconthePresident.Seniorbusinessexecutiveshavegivenhighapprovalratingto Bangko Sentral ng Pilipinas, Department of Finance, Department of Tourism and Department of Budget and Management.33 The agencies that had significant improvements in approval rating include the Department of Interior and Local Governments, Department ofPublicWorksandHighways,andtheNationalCompetitivenessCouncil. TheDPWHisviewedashardworkinghavingobservedworkethicsincluding meetingtargetscheduleandvalueformoneyinprojectsthatitundertakes. Peopleintheagencyclaimthattheyhaveneverworkedashardasever,andthis islargelyattributedtotheexamplesetbytheagencyhead. TheDBMandDILGcontinuetoleadtheeffortsontransparencyand collaborativemanagement.TheDBMiscommittedtoOpenGovernmentthat makestheallocationofthePriorityDevelopmentAssistanceFund(PDAF)public knowledge.TheDBMsharesthecredit,togetherwithcongress,inthe timeliness,infacttheearlyadoptionofaGeneralAppropriationsAct(GAA)for thecountry. TheDepartmentofFinanceisacknowledgedforitseffortsinthecreditrating upgradeduetoitsdeftdeficitanddebtmanagement. TheNationalCompetitivenessCouncilhasproactivelypromotedprogramsto lowerthecostsofdoingbusinessinthePhilippines.

There are bottlenecks however that remain to be addressed in improving the efficiencyofpublicservice: AgoodandcompetentpersonisatthehelmoftheDoTC;however,the departmentseemstoshowslowprogress`giventhechallengestoits longstandingplansandpromisesinupgradingtheairportfacilities,thewater andtherailtransportsystems.Thegestationoftheproposedplanshasbeen longincoming.ManyFilipinos,homebasedandoverseas,aswellas internationalguestsandobserversareopenlycriticalaboutthestateofour airportfacilitiesandequipment.

33MakatiBusinessClubResearchReport,BusinessScorecardofGovernmentPerformance.

TheDepartmentofForeignAffairs(DFA)isnotonlyinadequatelyresponsiveto overseasFilipinoworkersbutsomeemployeesarealsoallegedtohavebeen responsibleforinflictingabuseonOFWsasifthelattersconditionsisnot absolutelyoppressiveenough.ThehandlingoftheScarboroughShoaland negotiationsbetweenthePhilippinegovernmentandChineseauthoritiesdoes notspeakwellofatrulyeffectivePhilippineforeignaffairsfunctionaryand diplomacy.

A major disappointment is the failure to legislate the Freedom of Information Bill (FOI) despite the enormous efforts by the civil society groups to have this bill adopted by congress. Based on the civil society assessment on the FOI, the 15th congress dillydallied on the bills adoption, because the legislature did not also see that this was something urgentasfarastheExecutivehadit. Score:7.0 Overall, there are incomplete works in governance under the current Administration.However,itisfairtostatethatgovernanceisalwaysacontinuingtaskofany administration and in this sense, the Aquino administration is not doing badly in its overall attempts to make the institutions work, albeit partly successful, partly weak thus far. The leadership showed an inspiration to pursue the efforts at reform. The public is quite optimistic that the Administration is doing its work, and this explains why there is high trust and positive public perception about the current administration. However, everyone knows that there are imperfections and some failings which continue to pose as problemsolving challengestotheadministration. ScorecardonGovernance,20102012 2010 2011 2012 1.ElectionsinARMM 0 5.0 4.0 2PerformanceIncentiveSystem 2.5 6.0 8.0 3.ActionsonirregularitiesintheCOAreports 2.5 7.5 7.5 4.OtherInitiativesinGovernance 2.5 7.5 7.0 Total 1.87 6.5 6.62 G.AGRICULTURE Agriculture and fishery accounted for 12 percent of gross domestic product in 2012 (nominalterms).Farmlandsoccupyabout12millionhectares(ha),34ofwhichpalay,coconut and corn accounted for about 80 percent. Agriculture labor force stood at 11.84 million on April 1, 2013, or 31.3 percent of total labor force. Exports comprised about 10 percent of totalmerchandiseexports. The Philippine poverty rate was about 28 percent in the first half of 2012. The rate is highest among peers in Southeast Asia. Various studies indicate that nearly 70 percent of the poor reside in rural areas, and most of them are directly and indirectly dependent on

34WorldBankAtlas

agriculture and fishery. Among the poorest are coconut farmers, fisherfolks, upland dwellersandlandlessworkers. The sector was saddled by general weaknesses in productivity, crop diversification and agriprocessing. These are decadesold problems, and the Aquino government has realized the impact of sound projects on inclusive growth. Rural infrastructure and delivery of credit continue to be barriers. There are initiatives that address these concerns but the impact has a long gestation period, for example, tree crop development and agriculture research. 1.SectorGrowth Agriculturegrewby4.1percentfromJuly2012toMarch2013.Thisisagoodrecord andhigherthanaverageinthelast ten years.The growthleaders werepalayat9.2percent, corn at 9.0 percent, sugarcane at 9.6 percent, and pineapple at 8.1 percent. Banana posted a decline due to typhoon Pablo and the ChinaPanatag Shoal problem. Fishery recovered fromanearlierslump. Table1.GrowthinAgricultureValueAdded(inrealterms),peryear Country Philippines Indonesia Malaysia Thailand Vietnam Myanmar Cambodia 20012010 2.9 3.5 3.0 2.2 3.6 8.3 5.1

Source:ADB Score: 7.0. The growth of 4.1 percent was far higher than past record and above Asianaverages. 2.SectorEmployment In the process of economic growth, agriculture employment is expected to decline assurplusworkersmigratetotheurbancenterstotakeonindustrialandservicesjobs. The data for the two surveys of 2013 showed that agriculture employment fell by 4.8percentfromanaverageof11.688million(JanuaryandApril2013)versus12.273million during a comparable period in 2012. Other sectors (industry and services) rose by 3.4 percentto26.191millionfrom25.320million. Score: No score. In development experience, agriculture employment should decline in absolute terms due to ruralurban migration. If the Government addresses investments in manufacturing and services (e.g. tourism), the employment problem can be adequately addressed. Farm employment can only absorb part of the expansion in rural laborforce.Ruralbasedmanufacturingwhichislinkedtoagricultureisonefocusarea.

3.BenchmarkingtheSectorsCompetitiveness,Agricultureslongtermproblem

The Philippines dismally lags behind ASEAN peers in the production of agrifood exports.Thisisaresultofmanydecadesoflimitedsupportforcropdiversificationbyvarious administrations. This was exacerbated by the lack of vision of past presidents which had lip service appreciation of the role of crop diversification and exports in poverty reduction. Today, three crops rice, corn and coconut account for over 80 percent of farmlands. The Philippine is a notable laggard in absolute and relative measures. Below is the comparative statisticswithpeercountries. Table2.AgriFoodExportandPerCapitaMeasures,2011 Exportper Agriculture Exportper hectare Land(000 Population 2011 2007 capita,US$ (US$) hectares) 2011 US$B US$B Philippines 3.1 6.8 95.0 11,986 72 570 Indonesia 22.0 45.3 243.8 54,528 186 830 Malaysia 18.5 36.6 27.8 7,885 1,320 3,520 Thailand 23.6 45.1 66.6 21,508 677 2,100 Vietnam 10.9 16.8 87.7 10,759 192 1,560 Note:Excludesnonfoodagriexportlikenaturalrubber Source:UNTrademap Since crop diversification is a long term process, the Aquino administration can only laythegroundworktowardstheachievementofsignificantstridesinthefuture. The Department of Agriculture (DA) is trying to do its share. First, the shift to food staples sufficiency plan from rice selfsufficiency will help diversify production and exports. Food staples include rice, white corn, banana, cassava, camote and gabi. They are less waterintensive and have better nutritive value than rice. They also have high multiplier effects. Banana can be processed into chips for exports. Cassava can be used as food and feedorstarch. Second, there is greater appreciation now on tree crops (coconut, cacao, coffee and rubber). Tree crops are anchors in agriculture development and rural poverty reduction in Southeast Asia. The DA has funded benchmarking studies in coffee and rubber. It is considering studies on other commodities so that value chain improvements and competitiveness will be the basis for budget support and resultsbased monitoring. The key istotranslatevisionintoaction. A far greater challenge is the weak municipal LGU institutions that are supposed to deliver extension services to farmers and fishers. Reliance on town mayors to address agri development is severely flawed. In Vietnam, the center for extension services is the province where scale economies are possible in terms of expertise, professional career, and programmanagement. Another area is agriculture research. There are only two good public institutions in the country:the Philippine RiceResearchInstituteandPhilippineCarabaoCenter. IntheASEAN, major export crops have worldclass research institutes: rubber research (Malaysia, India, Indonesia and Thailand), coffee research (Vietnam and Indonesia), and cacao (Indonesia). ThePhilippineshasnoneyetforcoconut,coffeeandrubber.

Score: 5.0. These are decadesold problems that require longterm solutions. The Aquinogovernmentwouldnotbeabletoaddressthesefullyby2016. 4.Organization The DA has been saddled with changes in leadership every six years. This has affected strategic directions and program continuity. It must transform itself into a meritocraticorganization. Perhaps, a most urgent task is the implementation of the rationalization plan (RatPlan) which has been shelved by President Gloria MacapagalArroyo since 2004. Today, over 50 percent of DA staffs are job orders, that is, they are hired like contractuals but can be terminated anytime. In one program, only the Director is permanent; the rest are joborders.Thesystemdoesnotattracttalents;therearenobenefitsandnocareerpaths. Score: No score. The RatPlan is beyond DA. With the advent of President Noynoy Aquinos administration, the Plan was passed on to the DBM, and later the Governance Commissionforgovernmentownedandcontrolledcorporations. 5.BioSecurity Theglobalstandardisthatfoodimportsintothecountryaresubjectedtopre inspectionbytheQuarantineinspectorbeforethegoodsareinspectedbytheBureauof Customs.Thisistosecurethecountryfrompest,diseasesandtoxicsubstances. Score.2.5.DespiteincessantrequestsbytheDAforyears,theBureauofCustoms hasrefusedtoinstitutethismeasure. 6.ASSESSMENTOFTHEACTIONPLANOFTHEPRESIDENT (FromtheInauguralAddressinmid2010) 6.1. Address infrastructure gaps in farm to market roads (FMRs), irrigation and postharvestfacilities Farmtomarket roads. The DA budget has increased from PhP 5,000 million to PhP 8,285 million, up by 66 percent. Meanwhile, the Department of Budget and Management (DBM) has included in the General Appropriations Act (GAA) the provisions in Box 1. Farm roads must interconnect with roads to the markets or ports. This is a good provision in order to minimize congressional persuasions on road alignments that do not make sound economic sense. Network plans for FMRs are reportedly underway in coordination with LGUs. Irrigation. The budget for irrigation increased to PhP27, 329 million in 2013 from PhP24, 605 million in 2012, up by 11.0 percent. About 80 percent of the budget went to locallyfundedprojects.In2012,totalirrigatedareaincreasedbyabout55,600hectares.The increasewashighestintheVisayas.Mindanaohadlowerirrigationdevelopment. The DBM guidelines (Box 2) could not be fully implemented due to uncompleted Small Farmers Registry. There must be good geographic tagging and implementation monitoring of locally funded irrigation to minimize undue influences from the powers thatbe.

Table3.IrrigationDevelopment,2011and2012 (Inhectares) %Irrigation Area 2011 2012 Increase %Increase Devt. Luzon 1,025,779 1,044,854 19,075 1.9 57.0 Visayas 185,493 211,885 26,392 14.2 64.4 Mindanao 359,653 369,770 10,117 2.8 38.6 Total 1,570,926 1,626,507 55,581 3.5 52.0 Source:NationalIrrigationAdministration.PleaserefertoAnnexfordetails Box2 ImplementationofIrrigationProjects. The amount of Twenty Four Billion Seven Hundred Sixty Five Million Fifty Two Thousand Pesos (P24,765,052,000) appropriated (under budget headings B.I.a and B.II.i) shall be released directly to the NIA implementing units upon submission of the list of priority production areas where the irrigation projects are to be implemented and shall be used directly and exclusively for the restoration, rehabilitation and construction of irrigation projects: PROVIDED, That, in no case shall said amount be used for engineering or administrative overhead expenses nor be realigned to augment any PS or MOOE requirements. In the identification of priority production areas, the NIA shall include the following: (i) areas where the majority of small farmers registered under the Small Farmers Registry System are located; and (ii) provinces or regions where the absolute number of poor farmers and the incidence of poverty are high as identified in the latest officialpovertystatisticsoftheNSCB:PROVIDED,Thatirrigationprojectsshall,asmuchas possible, be implemented by qualified irrigators associations which have the capacity to undertake irrigation projects: PROVIDED, FURTHER, That in the hiring of workers for the implementation of irrigation projects, priority shall be given to the foregoing indigent small farmers. Moreover, the NIA shall formulate a strategy to ensure the timely implementation of irrigation projects during the planting and harvest season such as, but not limited to, the clustering of irrigation projects for cost efficiency in the procurement thereofandeffectivemanagementandimplementationofsaidprojects. TheAdministratorof NIA shallberesponsiblefor ensuringthat thelistofirrigation projects to be constructed with the corresponding budgetary allocation, community of farmer beneficiaries, status of implementation, and project evaluation and/or assessmentreportsarepostedontheofficialwebsiteoftheNIA. Source:DBM.2012GAA ScoreonFMRandIrrigation,6.0 Postharvest facilities (PHF). The master plan is being formulated but prioritization cannotbemadeastheFarmersRegistryisnotyetready(Box3.).DataonPHFcouldnotbe readilycompiledasvariousagenciesareengagedwiththeirspecificprograms.

Box3.ImplementationofPostharvestDevelopmentServicesandFacilities The DA shall prepare a master plan for the postharvest development services and facilities in coordination with the LGUs and residentfarmers and fisherfolks and taking into account the types of crops harvested and fish species, the facilities needed to preserve the quality of crops and fish species and reduce postharvest loses, and such other factors affecting optimum level of crop production and fish preservation: PROVIDED, That the DA shall prioritize (i) the areas where the majority of small farmers registered under the Small Farmers Registry System are located; (ii) the locations where there are a large number of subsistence fisherfolks as determined by the DA; and (iii) the provinces or regions where the absolute number of poor farmers and/or fisherfolks andtheincidenceofpovertyarehighasidentifiedinthelatestofficialpovertystatistics of the NSCB. The amounts appropriated herein for the National Program for Rice, for Corn, for High Value Commercial Crops, and for Livestock shall be released only upon submissionbytheDAtotheDBMoftheforegoingmasterplan. Source:DBM.2012GAA Investmentsinthecountrysidearesaddledbyinfrastructureconstraints,lackofLGU goodgovernance,peaceandorderproblems,andlandaccess. Score:5.0 6.2.Providepostharvestfacilitiestococonutandricefarmersandmakeavailable processingfacilitiestocoastalfishersandaquaculturists. Thisishighlychallenging.Thistargetistoogeneralandpoorlydefined. Score:4.0 6.3.Every1,000hectaresofcornlandwillbeservicedbyatleastonecorndrier. To date, the DA through the National Agribusiness Corporation (NABCOR) has built several corn centrals good for about 20,000 ha. There are 16 operating corn centrals and three are under construction by NABCOR. There is a long way to go as there are 2.6 million hectares of harvested corn areas. To expand coverage, the government should encourage privateinvestmentsunderpublicprivatepartnerships(PPP). Score: 2.5. The President overcommitted on this target. This is not a walk in the park.Totalcornharvestedareasmayrequireover2,000largeshellingcumdryingplants. 6.4. Transform Mindanao into a modern agricultural center and the nations food basket. Every administration has included this in the shopping list. This is an extremely subjectivetarget.Therearenometricsyet. What is the meaning of modern? Mindanao has been a food basket, like Cagayan Valley, Central Luzon and Western Visayas. They are all surplus food producers. Metrics

must be defined for this strategic goal. Transformation requires sustained increases in infrastructure investments, more private investments in farms and processing, and better businessclimate.Mindanaoisnowherethereyet. Score:5.0 6.5.Expandirrigationfacilitiestoserviceatleastonehalfof700,000hectaresof farmsinMindanaothatneedtobeirrigated. Mindanao had a total irrigated area of 369,770 hectares as of end2012. This represented 38.6 percent of the total irrigable area of 959,020 hectares. The remaining potential is 567,972 hectares. Scientifically, this hectarage must be subjected to water availability. In the context of inclusive growth and poverty reduction among the Lumads, Muslims and Christians in Mindanao, the tradeoff of in building new systems versus planting more tree crops and fruit trees in Mindanao must be seriously reviewed. What optionhasabetterimpactonpovertyreduction? Score:5.0 6.6.Establishstate enterprises that willpartnerwithpotentialprivateinvestors or extendguaranteestothemtospreadtherisks. This goal is difficult to measure. First, why establish new state enterprises to extend guarantees? There is the Small Business Corporation under the Department of Trade and Industry that guarantees loans to small and medium enterprises. Then, there is the Agriculture Guarantee Loan Fund lodged with the Land Bank. And then, the bankrupt Quedan Guarantee and Finance Corporation. Second, the private sector is not receptive to morestateenterprises. Noscore. OVERALLSCORE:5.5 TheWayForward.Theproblemsoftheagriculturesectorshouldbeaddressednot onlybyDAbutbyruraldevelopmentagencies,extensionservicesofmunicipalities,research organizations,andthoseconcernedwithbiosecurity,landaccessandcreditdelivery. Governmenthastoinvestmoreinruralinfrastructureandtreecrops.Agriculture researchanddevelopmentmustbestrengthened.TheDArationalizationplanmustbe addressed.Theextensionservicemustbecenteredattheprovincialgovernmentrather thanatthemunicipallevels. Finally,governmentmustactwithdispatchagainstsmugglingandtheresistanceof theBureauofCustomsregardingimportpreinspectionbyQuarantineOfficerstosafeguard thecountrysbiosecurity.

H.SUMMARY ScorecardonthePerformanceoftheAquinoAdministration Economy PublicFinance Health Environment Governance Education Waragainstcorruption Agriculture Total 2010 4.4 4.93 3.0 4.7 4.5 5.68 4.8 4.69 2011 5.66 6.88 3.17 5.2 6.5 6.10 5.59 2012 6.0 5.7 5.5 5.3 6.62 5.79 5.5 5.77

Thegovernmentismakinggainsindeliveringwhatthepresidenthaspromised, albeitwithaslowpace.MGGgivesascoreof5.77onits2012performance,someofthe promisesofthepresidenthavebeendeliveredbuttheresultsarelowerthanexpected. Governmenthasaperfectscoreof10inmaintainingahighandsustainedlevelof economicgrowthandmanaginginflation. Itsaccomplishmentsarewellontrackin:1)maintainingmacrostability;2)deficit managementanddebtreduction;3)DBMsempoweringinitiativesparticularlyonthe bottomupbudgetingandtransparency;4)theperformanceincentivesystemofDILGfor LGUs,andtheperformanceincentivesystemfortheentiregovernmentmanagedbyDBM; and,6)takingactionsonirregularitiesthatarereportedbyCOA. Moreworkneedstobedoneon: Promotingexports Employmentgeneration Povertyreduction FasttrackingtheimplementationofPublicPrivatePartnerships Minimizingthecostsofdoingbusiness AttheBureauofCustomsinrevenuecollection,controllingsmugglingand corruption,byimprovingitscapacitytocollecttheefficiencyoftheBureauof Customs Restoringcertainty,fairnessandstabilityintheenforcementoftaxlawsbytheBIR Ensuringthateverybarangayhasaccesstoadecenthealthservices,andatthe minimumtheprovisionofaskilledbirthattendantoramidwife ControllingHIV Implementingenvironmentallawsandpreparingcommunitiesfortheeffectsof climatechange GovernanceinARMM SystemicapproachinhandlingirregularitiesasreportedbyCOA Provisionofruralinfrastructure,investmentontreecrops,andmakingthe provincialgovernmentresponsibleforextensionservicesforagriculture

Governanceisnotthesoleresponsibilityofgovernment.Citizenshavetodemand transparencyandefficientservicefromthelocalgovernmentsandnationalgovernment agencies.Mostimportantly,wehavetodowhatwedemandfromgovernmentofficials: individually,wehavetodowhatisrightandpursuethetuwidnadaan.

ANNEXES Table1.DABudgetforAgricultureDevelopmentProgram PhPmillion Item RiceProgram CornProgram HighValueCrops Livestock AgricultureResearch Farmtomarketroads Irrigation LocallyFunded ForeignAssisted BureauofFisheriesandAquaticResources Others TotalNewAppropriations Note:TotalofMOOEandCapitalOutlays Source:DBM 2012 6,181 951 1,337 1,144 455 5,000 24,605 19,819 4,786 2,486 48,667 2013 7,434 1,524 1,137 455 8,285 27,329 23,164 4,165 3,656 55,287 Change,% +20 +60 0.6 0 +66 +11 +17 13 +47 +13

Table2.IrrigatedAreabyTypeofIrrigationSystemandbyRegion,2011 OGA Estimated Private National Communa Assisted Total Irrigation lIrrigation Irrigation Irrigation Irrigable System System System System Area 3,126,340 1,834,950 99,650 277,180 472,640 498,860 246,960 239,660 332,370 197,250 50,740 84,380 959,020 76,080 120,700 149,610 293,610 162,300 156,720 712,790 450,836 13,615 42,476 145,254 186,569 39,992 22,930 76,666 46,752 9,855 20,059 185,286 13,912 26,925 35,007 59,870 26,338 23,234 496,442 293,706 39,758 47,389 44,223 57,198 45,225 59,913 74,042 22,614 20,697 30,731 128,695 18,438 22,918 21,232 29,923 20,354 15,830 193,814 156,403 28,948 21,662 51,175 7,967 21,287 25,364 19,587 12,763 433 6,391 17,825 2,188 6,292 1,765 3,920 3,570 90 167,880 124,835 1,705 52,015 25,983 24,204 7,912 13,016 15,197 11,069 620 3,508 27,847 3,617 3,822 3,030 10,901 6,182 295 Remainin g Potential Total Areatobe Develope d 1,570,926 1,450,601 1,025,779 84,025 163,543 266,635 275,938 114,415 121,223 185,493 93,199 31,605 60,689 359,653 38,155 59,957 61,034 104,614 56,444 39,449 734,788 13,300 97,725 190,201 203,766 111,582 118,214 134,859 96,687 14,772 23,400 580,954 36,803 56,093 86,279 182,145 102,878 116,756

PHILIPPINES LUZON CAR IlocosRegion CagayanValley CentralLuzon SouthernTagalog BicolRegion VISAYAS WesternVisayas CentralVisayas EasternVisayas MINDANAO ZamboangaPeninsula NorthernMindanao DavaoRegion SOCCSKSARGEN Caraga ARMM

Sources:BureauofAgriculturalStatistics(BAS)andNationalIrrigationAdministration(NIA)

Table3.IrrigatedAreabyTypeofIrrigationSystemandbyRegion,2012 Remainin g Estimated OGA Potential National Communa Private Total Assisted Areato Total Irrigation lIrrigation Irrigation Irrigable Irrigation be System System System Area System Develope d 3,126,340 722,583 534,402 200,018 169,507 1,626,510 1,392,695 1,834,950 99,650 277,180 472,640 498,860 246,960 239,660 332,370 197,250 50,740 84,380 959,020 76,080 120,700 149,610 293,610 162,300 459,447 13,615 45,833 146,102 190,843 40,004 23,050 78,257 46,753 10,855 20,649 184,879 14,024 25,653 35,086 60,564 26,318 23,234 311,889 43,278 52,172 47,412 58,951 47,545 62,531 83,758 27,905 22,653 33,200 138,756 19,801 24,156 22,669 31,991 23,356 16,783 154,059 27,821 21,532 49,773 7,882 20,769 26,282 29,051 18,395 3,940 6,716 16,907 1,765 6,246 1,636 3,700 3,470 90 119,461 1,044,854 1,717 49,285 24,693 24,081 7,421 12,264 20,819 15,856 1,466 3,497 29,227 3,509 3,779 2,837 11,031 7,776 295 86,431 168,822 267,980 281,757 115,737 124,127 211,885 108,909 38,914 64,062 369,770 39,099 59,835 62,228 107,286 60,920 40,402 716,482 10,894 92,580 188,800 199,079 109,819 115,310 108,239 80,908 7,312 20,019 567,972 35,853 53,797 85,085 179,152 98,282 115,803

PHILIPPINES LUZON CAR IlocosRegion CagayanValley CentralLuzon SouthernTagalog BicolRegion VISAYAS WesternVisayas CentralVisayas EasternVisayas MINDANAO ZamboangaPeninsula NorthernMindanao DavaoRegion SOCCSKSARGEN Caraga

ARMM 156,720 Sources:BASandNIA

Table4.ListofCornPostHarvestandProcessingCenters Nameofplant Kabacan Banga Malungon Sergio Osmena Sagay Jones Rosales Bantay Bayugan Ramon Magsaysay Talakag Kabankalan Maddela Alamada Liloy* Location NFACmpd.,Osias,Kabacan,North Cotabato ACMDrive,PurokHinigaran,Brgy. Reyes,Banga,SouthCotabato PurokMaliwanag,Brgy.Pob., Malungon,Sarangani Pob.Alto,SergioOsmena, ZamboangadelNorte Jointventurepartners Provinciallocalgovernmentunit(PLGU)of NorthCotabato MunicipalLGU(MLGU)ofBangaand PLGUofSouthCotabato MLGUofMalungonand PLGUofSarangani MLGUofSergioOsmena, PLGUofZamboangadelNorteand 1stConglDist.ofZamboangadelNorte CityLGUofSagay

Paracelis Sta.Marcela Tigaon Linamon

KauswaganRd.,Brgy.Rizal,Sagay City,NegrosOcc. Payac,Jones.Isabela MLGUofJones CarmenWest,Rosales,Pangasinan FertilizerDealers&FarmersMultiPurpose Cooperative Brgy.BulagEast,Bantay,IlocosSur SavewiseFeedsMillingCorp.and 1stConglDist.ofIlocosSur NationalRoad,PagkainngBayan, PLGUofAgusandelSur Bayugan,AgusandelSur Alangalang,Poblacion,Ramon MLGUofRamonMagsaysay, Magsaysay,ZamboangadelSur PLGUofZamboangadelSurand 1stConglDist.ofZamboangadelSur SanAntonio,Talakag,Bukidnon None SitioOverflow,Brgy.Hilamonan, CityLGUofKabankalan KabankalanCity,NegrosOcc. Dipintin,Maddela,Quirino PLGUofQuirino Camansi,Alamada,North AlamadaMultiPurposeCooperative Cotabato Baybay,Liloy,Zamboangadel MLGUofLiloy, Norte PLGUofZamboangadelNorteand 3rdConglDist.ofZamboangadelNorte Butigue,Paracelis,Mountain MoonbeamTillersMultiPurposeCooperative Province Borocboc,Sta.Marcela,Apayao PLGUofApayao Caraycayon,Tigaon,Camarines MLGUofTigaon Sur PLGUofLanaodelNorte MetroIliganRegionalAgro industrial(MIRAIC),Linamon, LanaodelNorte

Source:NABCOR

ReferencesontheHealthAssessment: 1. LevelsandTrendsinChildMortality:EstimatesDevelopedbytheUnitedNations InteragencyGroupforChildMortalityEstimation.2012report. http://www.who.int/maternal_child_adolescent/documents/levels_trends_child_m ortality_2012.pdf.Lastaccessed:5July2013 2. DOH:12newHIV/AIDScasesperday.PhilippineStar. http://www.philstar.com/headlines/2013/03/02/914843/doh12newhiv/aids casesday.Lastaccessed:5July2013 3. DOHallotsP5.5BforBicolhealthfacilities.PhilippineStar. http://www.philstar.com/nation/2013/02/17/909622/dohallotsp5.5bbicol healthfacilities.Lastaccessed:5July2013 4. DOH:BetterhealthservicesforPinoysifPhilippineStar. http://www.philstar.com/headlines/2012/09/05/845616/dohbetterhealth servicespinoys2013if.Lastaccessed:5July2013 5. Philippinesstrugglesinreducingmaternaldeaths.SunStar. http://www.sunstar.com.ph/cagayandeoro/localnews/2012/08/06/philippines strugglesreducingmaternaldeaths236001.Lastaccessed:5July2013