June 2016

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THINKING BEYOND POLITICS:

REALIZING

THE NEW

STRATEGIC
AGENDA

stratbase.com.ph

THINKING BEYOND POLITICS:

REALIZING

THE NEW

STRATEGIC

AGENDA

Generations of Filipinos have aspired for a

prosperous, stable and, as phrased in the
1987 Constitutions Preamble, a just and
humane society. Our aspirations, while
unwavering, have been challenged by endemic poverty and by persistent insecurity.
These conditions have been illuminated by
many writers over time, who have pointed to
the prevalence of bossism where strongmen control local areas1, to corrupt or undertrained bureaucrats, or to problematic
legal structures governing the economy,
among other factors, as part of the cause.
Without a doubt, the Philippines has much

to achieve in building up stable democratic

institutions, depoliticized bureaucracies,
and a productive and competitive economy.
The Philippines internal state notwithstanding, shifts in the regions and the
worlds interconnected economies and in
the regional security landscape will also
complicate the tasks of the new leadership.
Questions over geopolitics, multilateralism,
and international norm-making have seen
resurgence in the country, where foreign
policy is not traditionally a top-of-mind concern. Chinas emergence as an economic
Image credit: getrealphilippines.com

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and military power, the United States

rebalance to the Pacific, and
the politics of other Southeast
Asian nations have all seen ripple effects
on Philippine shores.

Image credit: pinoy-ofw.com

In ways that cannot be underestimated,

technological innovations hold the
promise of drastically improving, if not
outright altering, the ways in which
Filipinos communicate, travel, and
create value for others. New applications
for technology in many industries could
help the country leapfrog in growth,
but they can also open new problem
areas for the government to head off.
In turn, the movement of many Filipinos
from the countryside to cities and from
abroad back into the country has fuelled
the expansion of consumer markets.
Together, human and technological
movements create new demands on
energy and natural resources,
placing pressure on the countrys
rich but fragile ecosystems.
These strategic movements must
be managed by incoming president
Rodrigo Duterte, whose phenomenal
rise to the top executive post has
raised expectations among Filipinos
who seek to overturn elite or cacique
capture of our democracy. His election
demonstrates broad approval for
new styles of governance and new
systems of government that are
intended to produce better results
for the everyday man. In particular,
Duterte pledged to be tough on crime
and corruption and replace the unitary
form with a federal system. As they
prepare to enter office, the Duterte team
will be hard at work putting
flesh to the bones of their agenda.

Image credit: newsinfo.inquirer.net

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JUNE 2016

volume 9 issue 2

features

05

TRADE & INVESTMENT

For many in the Philippines and elsewhere, the
importance of having a credible and capable armed
forces, by any definition, is not automatically
appreciated. Outside the defense establishment,
national security is not always a national priority.

08

15

FOREIGN POLICY
External developments have brought a different
set of challenges calling for the reorientation
of the Philippine foreign and defense policy. In
this chapter, the expansion of the Philippine foreign
policy agenda to include safeguarding Philippine
sovereignty and maritime territorial
defense will be discussed.

NATIONAL GOVERNANCE REFORM

Positively, the Philippines improved its standing
in WGI in 2015 by scoring higher marks on five
out of six indicators than the previous year: voice
and accountability, political stability, government
effectiveness, regulatory quality, and the rule
of law.19 However, it incurred lower marks on
one critical indicatorcontrol of corruption.

on the cover
Cover page from ADRis Publication,
Thinking Beyond Politics: A Strategic
Agenda for the Next President,
courtesy of Carol Manhit

about the author

Prof. Victor Andres Dindo C. Manhit
is the Founder and Managing Director of
the Stratbase Group and President of the
policy think-tank, Albert del Rosario
Institute for Strategic and
International Studies or the ADRi.

10

DECENTRALIZATION AND
LOCAL GOVERNANCE REFORM
While the national government under the
Aquino administration embarked on anti-corruption
drive at the national level with some success,
the local government units continued the
parallel task of decentralization.

17

CREDIBLE DEFENSE
POSTURE
Of the external developments, one may argue that
Chinas latest assertive behavior particularly in the
South China Sea posed the greatest concern to the
sovereignty and territorial integrity of the Philippines.

He has been a member of the Faculty

of the political science department at
the De La Salle University. He has
authored numerous papers on
governance, political and electoral
reforms and educational reforms.
He obtained his Masters Degree in Public
Administration and a Bachelors Degree
in Philippine Studies major in Political
Science and History from the University of
the Philippines. He specializes in Strategic
Public Management, Legislative Research,
Political and Governance Reforms.
He is likewise the Managing Director for
BowerGroupAsia in the Philippines.

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CONTENTS

philippine
economy

In advance of the 2016 election cycle, the Stratbase-Albert

Del Rosario Institute (ADRi) launched a project aimed at
examining major areas of strategic interest for the purpose
of crafting a vision and an agenda in support of the new
Philippine administration. These research areas are trade
and investment, inclusive growth, energy, the environment,
national governance, local governance, foreign policy, and
national security. The findings and recommendations for
each research area are contained in the individual chapters
of our book, launched in January: Thinking Beyond Politics:
A Strategic Agenda for the Next President.

Thinking Beyond Politics provides a unified vision for a future

that meets all our aspirations. The remainder of this article
revisits the lessons and recommendations from the book and
gives fresh updates on developments coming from
both the outgoing Aquino administration in the months since
January and from the incoming Duterte administration.
Most importantly, and as is our intention, the strategic
agenda is divorced from partisanship. The reforms we seek
are viable under the incoming Duterte, and will be
our advocacy for the foreseeable future.

TRADE AND INVESTMENT

The Philippine economy has shown marked improvement
in recent years, registering a growth rate as high as 7.6%
in 2010 and undergoing reforms targeting increased
competitiveness and efficiency.2 However, the countrys
export performance has been uneven and activity has been
concentrated in a few large firms.3 The dismal track record
of the Philippine manufacturing sector in attracting
investments and increasing employment can be attributed
to inefficient industrial structure. This structure is usually
marked by a limited employment absorption of the industrial
sector, decline in productivity, absence of structural change,
high concentration of manufacturing, and a biased incentive
structure that favors large and capital-intensive firms.4 To
chapter author Dr. Epictetus Patalinghug, the adoption of an
import-substitution development strategy instead of an
export-promotion strategy has led to such inefficiency.5

Thinking Beyond Politics

Recommendations

The Philippines should rethink its

long-term manufacturing strategy
and institutionalize an exportpromoting orientation. More
specifically, and as a first step,
the Philippines should lift the
economic restrictions of the 1987
Philippine Constitution, which
constrain the development of an
open and competitive economy. To
complement this move, the incoming
administration should finalize the
existing New Industrial Policy and
complete trade-related infrastructure
projects. With regard to the latter,
port and airport relocation projects
with road and railway connectivity
will address existing congestion,
lower production costs, and enable
a more efficient management
of the supply chain.
Since Public-Private Partnership
(PPP) projects are heavily
concentrated in Manila and
its adjacent regions, the new
Department of Transportations and
the Department of Public Works and
Highways infrastructure-spending
programs ought to offset this regional
imbalance and support road, rail,
maritime, and air connectivity,
especially between current production
centers in the greater capital region
and the residences of workers in
farther regions. For instance, the
Transportation Department can
provide national, yet regionally
balanced, policy attention to local
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government units (LGUs) initiatives in

designing, constructing, and implementing
Bus Rapid Transit (BRT) and other systems
in the already traffic-choked metropolises
of Cebu, Davao, Iloilo, and Baguio.
The government must encourage the
participation of small-and medium-scale
enterprises in the design, construction,
implementation, and monitoring of these
public infrastructure projects.
Institutionalizing an export-promotion
strategy would also include refining the
existing incentive arrangement by passing
the Fiscal Incentives Rationalization
Act, approving the Amendments to
Foreign Investment (Negative List) Act;
coordinating marketing and technology
acquisition efforts with key players from
the private sector; and establishing a
unified investment promotion structure
which renders the National Economic and
Development Authority (NEDA) a coherent

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and effective organization. One other recommendation, the passage

of the Customs Modernization and Tariff Act, has been
recently met (see Status Quo below).
For priority sectors, such as the automotive, electronics, machinery,
garments, and food industries, domestic capacities can be developed under
the New Industrial Policy. This policy could target interventions to improve
workers skills, upgrade the technology used, disseminate information
to businesses, boost local supplier industries, and improve logistics
infrastructure to lower production costs. In line with the New Industrial Policy
and in redirecting the manufacturing industry, the Philippine government
should seek to move industry away from the assembly and testing segment
of the production chain and shift to specialization in high-value production.

Status Quo
Presumptive President Rodrigo Duterte has expressed his openness to lifting
the economic restrictions of the Constitution through a three-step push for
Charter Change that includes the formation of a Consultative Commission,
the convening of Constitutional Convention, and ratification via plebiscite.6
Under Article XII of the Constitution, foreign ownership of property is
restricted to a 40% baseline share.7 Duterte has said that he is willing

Image credit: philstar.com

to allow as high as 70% foreign ownership

as well as lease lands to foreigners for
40 years, renewable for a further 40
years, especially for manufacturing and
agricultural ventures.8 Furthermore,
he has expressed his intent to revive the
steel industry in order for the country to
directly engage in shipbuilding and
other steel-related industries.9
Currently, the Philippine government,
particularly the Department of Trade
and Industry (DTI), has a Comprehensive
National Industrial Strategy which cites
top five (5) priorities: manufacturing,
infrastructure and logistics, tourism,
agribusiness, and information technology
(IT)/knowledge process outsourcing
(KPO).10 It remains to be seen whether Dr.
Ernesto Pernia, who is poised to be the
next NEDA chief, will implement the New
Industrial Policy, whether in its current
form or with further modifications.
President Aquino signed the Customs
Modernization and Tariff Act (CMTA)
into law as Republic Act (RA) 10863 on
30 May 2016.11 The Fiscal Incentives
Rationalization Act has been declared
a priority bill by Aquino but has not been
passed. The latter seeks to lift certain tax
exemption privileges by seeking to repeal
Articles 60 and 61 of Republic Act 9520 or
the Cooperative Code of the Philippines.12

POVERTY,
INEQUALITY,
AND INCLUSIVE GROWTH
While economic growth has been shown
to reduce poverty generally speaking,
the effect on the income of the poor has
not grown as at the same rate as the
remainder of society. This is important,
as high levels of inequality are found to
have a negative impact on further poverty

reduction. Other factors affect the well being of the poor:

for example, economic growth in rural areas also has a higher
impact than in urban areas. These factors should be
understood and targeted by the incoming administration.

Thinking Beyond Politics Recommendations

First, the government should address the administrative inefficiencies
of the conditional cash transfer program (CCT). The CCT is a long-term
human capital anti-poverty program, but not a livelihood or skills-training
program for the families or the 15 to 18 year old out-of-school youths.
While Dr. Patalinghug stresses that the program should be continued, its
relatively high administrative cost under the Department of Social
Welfare and Development (DSWD) framework should be reduced,
and the implementation of the program should be separated
from its evaluation, to ensure independence.
Beyond the conditional cash transfer program, the government should
adopt an explicit target for preventing and reducing unemployment and to
reinforce this policy direction by offering guaranteed public employment
at the minimum wage to those who seek it. For the rural sector, a cash-forwork program can address the livelihood and earnings goals that are not
addressed by the CCT. This can be implemented as an employment scheme
focused on rural public works, like building farm-to-market roads, irrigation
systems, or post-harvest facilities. A cash-for-work program in the rural sector
is best implemented by the Department of Agriculture in coordination with
the Department of Labor and Employment. CCT is best implemented by the
National Anti-Poverty Commission in coordination with the DSWD. The latter
is in a better position to concentrate on pre-disaster evacuation, relocation
and on post-disaster relief and rehabilitation in coordination with the LGUs.
Finally, the government should improve the implementation efficiency
of the K to 12 programs by stretching the time frame for teacher training, and
class material and textbook development. For instance, the preparation
of L1 and L2 mother language instruction materials lagged behind the
K to 12 implementation schedule. Continuing its focus on education,
the government should seriously implement the Unified Financial
Assistance of Students in Tertiary Education Act that is aimed to
provide financial assistance to poor but deserving college students.

Status Quo
Duterte has said that under his leadership, the CCT program will be more or
less patterned after that of Thailand. A Philippine counterpart to the Small
and Medium Enterprise Development Bank of Thailand will be created to
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provide loans, counseling and other

services to SMEs that will help
promote their growth.13 Moreover,
the CCT program will be expanded
to include a livelihood component
wherein beneficiaries are provided
access to capital to start their own
small business.14 Aside from that,
the CCT program will also include
provision of at least a sack of rice to
the poorest of the poor.15 The funds
for Dutertes expanded CCT program
are expected to come from the Sin
Tax and the Philippine Amusement
and Gaming Corporation.16
After initial skepticism, Duterte
decided to support the K to 12
program implemented by the
Aquino administration.17 The
Supreme Court had earlier denied
the petition of select groups such
as Kabataan partylist to temporarily
stop the K to 12 program.18

NATIONAL
GOVERNANCE REFORM
With the aid of the World Banks
World Governance Indicators
(WGI) survey, Dr. Francisco
Magno in this chapter examined
the key challenges and notable
areas of progress for the national
administration. Positively, the
Philippines improved its standing
in WGI in 2015 by scoring higher
marks on five out of six indicators
than the previous year: voice and
accountability, political stability,
government effectiveness,
regulatory quality, and the rule of
law.19 However, it incurred lower
marks on one critical indicator
control of corruption.
The Control of Corruption index
captures perceptions of the extent
to which public power is exercised
for private gain, from petty to grand
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forms of corruption, as well as

how the ruling elites and private
interests capture the state.20
Citing Quahs (2010) findings, Dr.
Magno states that there are five
factors that cause corruption in
the Philippine government: low
salaries for government employees;
extensive red tape; low risk of
detection and prosecution; excessive
importance on family and debt of
gratitude (utang na loob); and lack
of political will.21 The two significant
government proposals to curb
corruptionfreedom of information
and whistleblower protection
billshave yet to pass.

Thinking Beyond Politics

Recommendations
There should be continued
support for extant policies on good
governance, especially those that
improve both government efficacy
and public trust and confidence.
These policies include the Bottomup Budgeting (BUB) Process, which
should be expanded to include
inter-local government and national
government projects. In turn, the
Citizens Participatory Audit (CPA)
should be steadily institutionalized
as a standard procedure in all future
government projects. Last, but on
the least, the enforcement of the
Government Procurement Reform
Act (GPRA) must be aggressively
pursued through enhanced oversight
of agential and local procurement,
the establishment of an independent
and autonomous complaint appeals
body, and the institutionalization of
prequalification procedures.
When it comes to accountability,
the ultimate goal is to break the

monopoly of power by dominant

socioeconomic classes and political
dynasties that have long hijacked
the Philippine state. In light of
this, the Philippine government
should institute a mechanism that
could finance electoral campaigns
through direct public financing or
collection of all campaign donations
into a common pool for equitable
distribution among all candidates,
from local to national. Just as
importantly, an Anti-Dynasty Law
can prevent blatant perpetuation of
power by political clans.
The next administration should
reinvigorate its negotiations with
both the Muslim secessionists and
Communist rebels. These means
reviewing and including other groups,
such as the Moro National Liberation
Front (MNLF) and Bangsamoro
Islamic Freedom Fighters (BIFF)
at the negotiating table. The
situation in Mindanao demands a
sincere review and passage of
the Bangsamoro Basic Law.
To energize the bureaucracy,
the basic salary schedule for public
servants, as defined by the Salary
Standardization Law (SSL), should
be increased across all salary
grades. There should be a review
of the proposal to approximate
the needs of the employees and
the competitive standards of the
private sector. Great performance
should be rewarded, and so
the mechanisms for performance
evaluation and incentives
should be institutionalized
and with higher rewards.
The Medium-term Information
and Communications Technology
Harmonization Initiative (MITHI)
should be further empowered not
only to cover the computerization
of government agencies, but also

The next administration should reinvigorate its negotiations

with both the Muslim secessionists and Communist rebels. These
means reviewing and including other groups, such as the Moro
National Liberation Front and Bangsamoro Islamic Freedom Fighters
at the negotiating table. The situation in Mindanao demands a
sincere review and passage of the Bangsamoro Basic Law.
to electronically connect them
efficiently and effectively with better
systems and infrastructure. In
producing communications-related
policy, the government should
take into account the convergence
of communications technologies
and incorporate principles of
technological neutrality and openaccess. Policy and legal frameworks
that facilitate trusted computing,
such as regulations on privacy, data
protection and cyber security, need
to be in place for the benefit of
all users, public or private.
The Office of the Solicitor General
must be independent from the
Department of Justice (DOJ) to avoid
conflict of interest in cases where
police, military, or even civilian
government officials are implicated.
A reorganization of the Armed Forces
of the Philippines and the Philippine
National Police may also be in order,
to maximize the limited personnel
and equipment these uniformed
services currently have.
To bolster anti-corruption efforts,
the government must pass the
Freedom of Information Law and
Whistleblowers Protection Act
that would provide better power to
combat corruption. A bill similar to
the Whistleblowers Protection Act
may also be considered to cover
other crimes and abuses.
Finally, the government can reduce
the regulatory burden and improve
regulatory quality by establishing
a formal and requisite Regulatory
Management System. Regulatory
Impact Assessments should be

required for each and every level

and agency of the government and
not for sector regulators alone.

Status Quo
The centerpiece of Dutertes
platform was suppressing crime,
illegal drugs and corruption22,
and all indications point to these
being his near-term priorities. He
has indicated the importance of
discipline and strict adherence to
the law23 and of strengthening
the justice system.24 He desires
to elevate landmark ordinances in
Davao City to the national level in
his bid to curb contributory factors
to lawlessness and disorder, such
as curfew on unescorted minors
past 10 p.m., ban on liquor sale and
drinking in public spaces, etc.25
To improve law and order, he plans
to launch a focused, time-bound
campaign against criminals, drug
lords and corrupt government
officials through the joint efforts
of the Philippine National Police
(PNP) and the Armed Forces
of the Philippines (AFP).26
Duterte desires to bring an end to
decades-long Communist and Moro
insurgencies.27 An early group of
his peace negotiators met with
representatives of the National
Democratic Front from June 13-14,
2016.28 News reports indicate
that a ceasefire agreement could be
put in place even prior to the
first State of the Nation address on
July 25.29 Duterte also offered to
elevate members of leftist groups
to four line departments.30
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The Moro groups have seen similar attention: Duterte had a joint meeting
with the leadership of both the Moro National Liberation Front and the Moro
Islamic Liberation Front on June 18.31 Both groups reportedly support the
move toward federalism. At present, there is some uncertainty over the
implementation of the Bangsamoro Basic Law as a stand-alone measure
or as part of a push toward a federal system in the countryanother
campaign priority for Duterte. Either case could be expected to
provide a greater share of autonomy to the proposed region.
Duterte has been clearest about wanting to overhaul the unitary presidential
system to a federal system through a Constitutional Convention.32 By
all indications, part of his term will be spent preparing for a plebiscite
and for the future federal states to effect power-sharing and resourcessharing mechanisms to effect better governance.33 Furthermore,
constitutional amendment shall empower the Congress to amend
restrictive economic provisions in the Constitution, and grant more
foreign ownership of property and certain industries.34
Duterte has said that he will prioritize the passage of the Freedom of
Information (FOI) bill, and will implement it for the executive branch through
an Executive Order upon assumption of office.35 It appears unlikely,
however, that he would approve the Anti-Dynasty Bill, if it were to be passed.

DECENTRALIZATION AND
LOCAL GOVERNANCE
REFORM
While the national government under
the Aquino administration embarked
on anti-corruption drive at the national
level with some success, the local
government units (LGUs) continued the
parallel task of decentralization. In this
chapter, Dr. Magno discusses the impact
of decentralization in the Philippines on
local finance and revenue administration,
expenditure management, regulatory
quality, development planning, social
services delivery, human resource
development, performance management,
and coordination and collaboration.35
He assesses the progress of Philippine
decentralization, determine the perennial
problems, and come up with solutions to
those problems. Although there

Image credit: dabawenya.net

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have been mixed reviews, decentralization

has accomplished much in bringing
government and resources closer to local
communities, thereby redefining the roles
of both national and local governments.

Thinking Beyond Politics

Recommendations
The Philippine government should set
the appropriate policy framework and
guidelines for inter-local cooperation to
guide LGUs who wish to enter into inter-LGU
arrangements as well as make inter-LGU
arrangements binding and less susceptible
to sudden changes in people or priorities of
sitting officials. This would allow for a more
rationalized organizational set-up with
minimal overlap and duplication of roles.
Some local roles, such as those held by the
Department of the Environment
and Natural Resources staff, could
be transferred to the supervision of
the local government and slated for
eventual absorption by the LGU.
For health, the government would do well
to establish and strengthen inter-local
health systems and their subsystems
(integrated health planning, referral
system, health information system,
drug management, human resource
development, and financial management).
Health efforts should simplify the
task of supervision and monitoring of
clusters among LGUs and allow them to
immediately respond to the concerns of
the barangays within their jurisdiction. A
system of collaboration and referral among
the different levels of government healthservices providers to attend to the needs
of their constituents should be developed.
This system would redefine the functional
relationship between regional offices
and LGUs in the provision of technical
assistance and the setting of standards.

To implement smarter policy, the government should institutionalize

information public information units down to the barangay level to improve
the gathering of health intelligence and information. This includes
incorporating and supporting a computer network for health information
and surveillance, referrals and logistics. In the same vein, the Philippines
should consolidate all emergency medical services in the country,
which can also help with regard to disaster preparedness.
The mandate and functions of local boards should be reviewed and
communicated to localities through more creative information, education
and communication. Finally, the government should review the National
Health Insurance Act to make it more responsive to the needs of
the urban and rural poor. The impact and effects of devolution on
health services should be evaluated once every three years
in a Health Summit attended by all stakeholders.
The Department of Agriculture needs to formulate a National Agriculture
and Fisheries Policy and Strategic Plan in consultation with LGUs. This
policy would specify the guidelines, technical assistance, funding and
monitoring and evaluation system that shall guide LGUs in implementing
and coming up with agriculture programs and projects. The DA, as a national
agency, should shift its focus from commodities (production) to goals
within the framework of Republic Act No. 8435, or the Agriculture
and Fisheries Modernization Act (AFMA) of 1997.
In turn, provinces need to come up with their Provincial Agricultural
Development Strategic Plan incorporating the necessary guidelines,
technical assistance, funding and monitoring and evaluation systems for
their component cities and municipalities. Municipalities and cities on the
other hand may come up with their own agricultural development strategic
plan. An Annual Performance Plan may be developed parallel to these
programs. Plans and programs need to be integrated at all levels from the
barangay, to the municipal, city, provincial levels, all the way up to the DA.
The DA needs to identify viable areas of operation (e.g. province,
municipal clusters, etc.) and coordinate accordingly.
Overall, LGUs need to allocate and utilize resources from their IRA shares
and grants for national and local programs. Funds for implementation must
accompany national programs implemented through LGUs. A National Fund
Transfer System (NFTS), a funding facility, must be established. NEDA should
reactivate the NGA-LGU cost sharing arrangement it adopted in 2003.
The DOH and the national government should provide greater fiscal
autonomy to hospitals for them to reduce their dependence on direct
subsidies from government. Amending auditing procedures for hospitals run
by LGUs would allow greater flexibility and innovation in terms of financial
management. Provincial hospitals should be allowed to retain their income
2ND QUARTER 2016

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as a trust fund to enable them to sustain their

operations without unduly burdening the
national and provincial governments.
The DA needs to strengthen its capacity to deliver
extension services, provide capability-building/
technical support to LGUs, and perform effective
regulatory functions and state-of-the-art research and
development. It should focus on building the capability of
regional level officers that oversee and provide support
to large functional clusters. Continuous process of
communication between LGUs and national government
regarding the programs and thrusts for economic
development must be facilitated. DA should strengthen
partnership between LGUs and the national government.
The national agency should grant financial incentives
to the DA-LGU Centers. The Department should develop
comprehensive trainings and retooling programs.
Redefine the roles of Provincial Agricultural Extension
Services. Continuous coordination should
be seen between the DA and LGUs.
A certification system for LGUs should be prepared by
the DENR, DILG, and the local government through the
Leagues to assess and certify LGUs in terms of capacity
to assume specific devolved functions on schedule.
Utilize funds from Official Development Assistance
(ODA) and Government Financial Institutions (GFI)
to catalyze public-private partnerships and
effectively assist lower-income class LGUs.
In general, the national government should help
develop the capability of LGUs to generate revenues
and manage finance and entrust local programs to
professionals. It should implement carefully designed
user charges in order to raise funds to sustain health
programs and subsidize the health needs of the poor.
For example, LGUs should ensure that taxes collected
from a declared Protected Area go directly to the
Protected Area Management Board. At the same
time, more opportunities for capacity building (e.g.
scholarship, training and continuing education)
could be opened to local health professionals,
who should manage local health services.

ACHIEVING A BALANCED ENERGY MIX

The Philippine government faces a dilemma in ensuring
energy security while pursuing sustainable development.
It must ensure that the energy demands of a growing
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economy are met reliably and

at a reasonable price to both
industry and regular consumers.
Environmentalists have called
for the country to dump cheap-butdirty coal for more expensive but
cleaner renewable energy.
In this chapter, Dr. Carlos David
suggests that it will be difficult for
the Philippines to achieve energy
security in the current context.
Energy security is not just about
adequate power supply, but also
includes energy reliability, quality,
acceptability of fuel source, and
competitive cost to both industry
and consumers. Three main
difficulties plague the energy sector:
a lack of competitiveness in energy
generation which results in higher
prices for consumers; a tight
supply of energy which cannot keep
up with the continuously growing
demand of a growing economy;
and the imbalanced energy mix
which is still predominated by
non-renewable sources at the
expense of renewable sources.

Thinking Beyond Politics

Recommendations
To increase competition in the
energy sector, the government
should develop a one-stop-shop
for investments to speed up the
permitting process for prospective
power developers. In the current
setup, potential investors are
required to secure practically over
a hundred permits from several
government agencies, both national
and local. Dr. David observes that
the bureaucracy discourages many
possible investors and, consequently,

derails the energy projects that can address the current base load shortages. Moreover, Dr. David
believes that the Wholesale Electricity Spot Market (WESM) must play a larger role because it is said to
contribute only 10%, at most, of the total power requirement. For Dr. David, operational rules of the
WESM can be further improved, like the determination of power cost through the system marginal
price rule. The full implementation of the Retail Competition and Open Access (RCOA)
under the EPIRA Law will help to develop a true open market.
Because taxes contribute to 10% of a consumers electric bill, Dr. David argues that the government
should particularly review the Value Added Tax (VAT), the Energy Tax, and Royalties, all of
which are passed on to the consumer. In line with costs, the government should improve the
implementation of the Competitive Selection Process (CSP), which, instead of
bringing down electricity prices, currently might have the opposite effect.
Empowering electric cooperatives is the key to energy security in the countryside and the growing
urban centers outside Metro Manila because many cooperatives are able to reduce the price of electricity
within their jurisdiction through technical training, adopting a transparent competitive process in power
supply bidding, and designing the power supply contract advantageous to their respective requirements.
The role of strong electric cooperatives becomes even more crucial in island power development
because it presents an opportunity to plan carefully the right electricity source balance,
exploiting indigenous sources such as mini hydropower, wind and even solar that
fit perfectly to these off-grid islands given their smaller electricity demands.
Citing the Energy Regulatory Commission (ERC) policy allowing electricity end users to feed excess
electricity from renewable energy sources back to the national grid, Dr. David supports the initiative
to incentivize the publics investment in renewable energy for home and light industry consumption. In
establishing a Renewable Portfolio Standards (RPS), the government should adopt the Least Cost Mix
principle, which refers to the delivery of energy through a blend of sources and efficiency measures
that take into account not only the reliability and the price of these sources but also the publics
willingness to include cleaner, if more expensive, renewable energy sources. Further, he further
supports the implementation of the Biofuels Act of 2006 that mandates the blending of locally
sourced bioethanol and biodiesel to reduce fuel importation, provide value-added income to
farmers, develop local industry suppliers and indirectly reduce national carbon emission.
There should be a comprehensive program to address the biofuel supply shortage.

Status Quo
On the Wholesale Electricity Spot Market (WESM), the Philippine government already has a
network of Investment Promotion Agencies (IPAs), such as Board of Investments (BOI) and
Philippine Economic Zone Authority (PEZA) to diversify locational offerings and obtain the best
return on capital for prospective investors.37 The one-stop-shop is only operational in select
economic zones throughout the country. The Department of Energy (DOE) is said to have
an existing plan to implement this initiative on a national scale.38
The Philippine government continues to impose multiple taxes, royalties and fees on power, making
Manila as the country with the third-most expensive electricity prices in East Asia.39 Electric cooperatives
in the country are operating with significant levels of technical inefficiency. Productivity of the
energy sector as a whole remains relatively stagnant during the post-EPIRA period.40
On the Least Cost Mix principle, there already exists Republic Act No. 9513 or the Law on Development,
Utilization and Commercialization of Renewable Energy Resources in the Philippines.41 However, as per
2014 Philippine Power Sector Situationer, the PH energy mix both for total dependable and total installed
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capacity remains coal-heavy.42 On the Biofuels Act

of 2006, local biofuel suppliers are still unable to meet
required demand, nearly a decade since the law started
creating a market for plant-based fuel additives.43
Retail Competition and Open Access (RCOA) changes
how energy is traded but the physical flow of electricity
remains the same.44 DOE is requiring bulk electricity
consumers to participate in RCOA system by the end of
2015.45 Contestable customers (CC) can opt out
of their local distribution utility and choose another power
supplier from among registered members of Wholesale
Electricity Spot Market (WESM) while suppliers, in turn,
provide packages to customer needs and preference.46
The Energy Regulation Commission (ERC) is scheduled
to fully implement RCOA by 26 June 2016.47

SOUND RESOURCE MANAGEMENT

As with energy, there is a balance to be struck between
economic development and environmental protection.

Dr. David looks at environmental

issues from the points of view
of the different industries or
sectors. He argues that in mining,
forestry, fisheries, and solid waste
management, the overarching
problem is poor implementation of
and failure to update environmental
laws and policies.48 In this regard, he
offers solutions that seek to protect
the environment without stagnating
economic development. Such a
framework comes from the context
that people should be able to benefit
from the fruits of the earth through
responsible ecological stewardship.

Thinking Beyond Politics

Recommendations
A tri-sectoral approach involving
government, the private sector, and
civil society will provide a better
platform for collaboration among
relevant stakeholders. The next
administration should adopt some
form of environmental governance to
facilitate consensus building among
stakeholders toward the effective
management of the countrys
natural resources. It would be good
to review existing environmental
policies to ensure that the desired
management outcomes are attained.
In particular, Dr. David identifies
the following policies or laws for
reassessment:
a. Executive Order No. 79
- Revisit EO 79 particularly its provisions that are unclear in terms of
definition and coverage.

Image credit: rappler.com

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2ND QUARTER 2016

b. Local Ordinances vs. National Laws on

Mining and Gaps in Implementation
- Conflict between the national agencies
mandate and the local government units
should be immediately resolved to provide a stable policy environment.
-Illegal mining operations and the wanton
damage resulting from non-compliance
with environmental and safety regulations
must be stopped by strengthening the capacity of regulatory agencies to strictly
implement the law.
c. Executive Order No. 23 and the 1975
Forestry Code
- This policy must be replaced with a sustainable forest management policy.
- Amend the 1975 Forestry Code to arrest further decline of the countrys forest
cover.
- Enact Sustainable Management Law
that espouses a selective log ban and
that is more attuned to the economic and
environmental contexts of today.
d. Integrated Coastal Resources
Management (ICRM) Policy
- Come up with a strong institutional strategy in the management of the countrys
coastal and marine resources.
- Legislate an ICRM policy with a clear and
implementable budget allocation.
- Establish a marine protected areas network that is national in scope.
e. Republic Act No. 9003 and the Ban on
Incineration
- RA 9003 or the Ecological Solid Waste
Management Act needs to be reviewed.
- The country should be able to utilize best
technology available, including waste-toenergy, but needs to ensure compliance
with existing air quality standards.

Status Quo
On tri-sectoral approach, environmental governance framework has been
stipulated in the 2011-2016 Philippine Development Plan Chapter 10:
Conservation, Protection and Rehabilitation of Environment and Natural
Resources.49 On environmental governance, the management of the
countrys over 200 protected areas (PAs) has enjoyed significant gains
with strong support from Aquino administration.50 However, several
challenges remain in the management of conservation areas.51

FOREIGN POLICY
External developments have brought a different set of challenges calling for
the reorientation of the Philippine foreign and defense policy. In this chapter,
Dr. Renato De Castro discusses the expansion of the Philippine foreign
policy agenda to include safeguarding Philippine sovereignty and maritime
territorial defense. Such expansion of agenda comes as a response to
Chinas shift its foreign policy stance on the South China Sea dispute since
2009 wherein it abandoned its tactic of delaying dispute resolution and
adopted a more assertive posture in consolidating its jurisdictional claims
over the entire sea.52 He cites the Scarborough Shoal stand-off from
09 April to 18 June 2012 as the defining moment that necessitated outgoing
President Benigno Aquino III to adopt strategic balancing against China
through these steps: extend and expedite the AFP modernization
program,53 sign the Enhanced Defense Cooperation Agreement (EDCA) with
the US,54 foster strategic partnership with Japan,55 and file a legal case
in the Arbitral Tribunal of the United Nations Convention on the
Law of the Sea (UNCLOS) to debunk Chinas nine-dash line.56
In addition, Dr. De Castro examines the traditional foci of Philippine foreign
policy, namely the protection of overseas Filipinos and promotion of trade
and investments. He cites that, as of the moment, the Philippines is the
worlds largest exporter of overseas workers; hence, the Department of
Foreign Affairs (DFA) together with the Department of Labor and Employment
(DOLE) and other labor-related agencies is mandated to improve its
capabilitiesfrom recruitment to repatriation and to reintegrationin looking
after the overall welfare of OFWs.57 Acknowledging, however, the high
vulnerability of an OFW-dependent economy to external shocks, Aquino
enacted measures with the long-term goal of fostering healthy domestic
business environment which will attract more foreign investments, generate
a greater number of quality manufacturing- and export-oriented jobs, and
encourage present and potential OFWs to remain in the country.58

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Thinking Beyond Politics Recommendations59

Status Quo

The government has a great deal to gain from providing continuity in the
foreign policy arena, and invest in the Department of Foreign Affairs (DFA)
to enable it to pursue its threefold goals of protecting the countrys territorial
integrity; extending assistance to OFWs; and enhancing the countrys economic
security. The strong backbone of Philippine foreign policy is in protecting
and assisting foreign nationals and promoting trade and investment.

On separate occasions during the

election campaign, Rodrigo Duterte
expressed his foreign policy thrust in
advancing national interest in light of
growing Chinese maritime power. Duterte
downplayed the UN arbitration and
expressed greater willingness to revive
the earlier approach of former President
Gloria Macapagal-Arroyo that is bilateral
talks and joint development with China.60
Right after winning the election, Dutertes
spokesman Peter Lavina said that
the presumptive president is willing
to thaw the frosty ties between
the Philippines and China.61

The DFA needs support to enable it to increase, retool, retrain, and

recalibrate the Philippines Foreign Service and Foreign Service staff. As
a matter of priority, these skills should include political and economic
reporting; trade promotion; public diplomacy; and negotiation. These
skills will permit the department to adapt well with changing times.
Outside the DFA, the incoming government should actively support
the current governments efforts to modernize and develop the AFP and
the countys various intelligence agencies. Diplomats alone will not be
enough for the Philippines to pursue all its foreign policy goals. A 21st century
Philippine diplomacy must be supported by an externally oriented and
modern intelligence community and backed by an armed forces with
a credible defense posture geared for maritime and territorial defense.

Duterte wanted to strengthen economic

partnership with China by jointly
extracting gas and oil deposits believed to
be abundant below the disputed sea as

Image credit: untvweb.com

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2ND QUARTER 2016

well as exploring joint fishing management

systems.62 Duterte even went as far as
promising to remain silent on the sea
dispute for six (6) years in exchange of
China heavily investing in the Philippines
vital infrastructure, such as building
some, if not all of his envisioned three
(3) major railway systems, namely the
Mindanao railway, Manila-Bicol railway,
and Manila-Batangas railway.63
After being proclaimed by the joint
Congressional session as the Presidentelect, Duterte through incoming Foreign
Affairs Secretary Perfecto Yasay apparently
diversified his position by emphasizing
that the decision of the UN Arbitral
Tribunal must prevail.64 Duterte also
began expressing willingness to explore
multilateral negotiations with other
claimants as a means to resolve
the South China Sea dispute.65
With regard to the budget, the DFA is
said to receive a Php 20.6-billion budget
for 2016 that is 58% higher than the
current years Php 13-billion allocation.66
According to former Foreign Affairs
Secretary Albert F. Del Rosario, the DFA
sought a higher budget from Congress
primarily to support the future opening of
a new consular office in Calgary, Alberta,
Canada and three (3) new regional offices
in Dumaguete City (Negros Oriental),
Tarlac City (Tarlac Province), and Calasiao
(Pangasinan). Furthermore, the budget for
maintenance and other operating expenses
(MOOE) was increased in order to finance
the upgrading of the DFA passport system
with a total price tag of Php 2.8 billion.67
To better address the plight of millions
of Filipinos working overseas, Duterte
vowed to create a separate department
for OFWs which will serve as a one-stop
shop for processing of permits and other
administrative requirements.68 He said
that the department might be housed in
the Post Office building in Manila.69

CREDIBLE DEFENSE POSTURE

Of the external developments, one may argue that Chinas latest assertive
behavior particularly in the South China Sea posed the greatest concern
to the sovereignty and territorial integrity of the Philippines. Hence, Dr.
De Castro examines how the AFP has reoriented itself away from internal
security operations toward a focus on developing maritime capabilities
for territorial defense goals. However, the AFP modernization laws
tedious and complex bidding procedure as well as the limited annual
government funding for the military made it difficult for the Aquino
administration to acquire big ticket items, particularly for the
Philippine Navy (PN) and Philippine Air Force (PAF).70
Aside from budgetary and procedural constraints in the government,
the AFP is also challenged by the resilience of domestic security challenges,
such as the Muslim Filipinos incursion in Sabah in February 2013, the
MNLFs Zamboanga City siege in September of the same year, the bloody
clash between SAF and elements of the MILF and other armed groups in
Mamasapano, Maguindanao in January 2015, and the subsequent delay in
the passage of the Bangsamoro Basic Law (BBL).71 The confluence of
these factors entangles the AFP into indefinite internal security operations,
makes it more difficult for it to relegate counter-insurgency tasks to the
PNP and LGUs, and obstructs the AFPs complete shift in strategic
attention and posturing to maritime territorial defense.72

Thinking Beyond Politics Recommendations

The government should pass the proposed National Security Act of the
Philippines. The Act aims to create a legislated and more influential National
Security Council (NSC) that will formulate the countrys national security
strategy and policy. The shift of the AFP from internal to maritime territorial
defense requires a whole-of-government approach that can only be managed
by a National Security Council created by legislation. The NSC would be
tasked to assess the Philippines security interests, examine the internal and
external environments in relations to the same, and recommend a course
of action to the president in line with a national security strategy. The NSC
would be tasked to formulate a national security policy or strategy document
that will provide the policy basis for this major strategic undertaking,
including the national military strategy and complementing the Philippine
Development Plan. The NSC would convene and lead the inter-agency
process for national security and consolidate the presidents positions with
the departments and agencies inputs on national security matters.
When possible, the Philippines should increase the defense budget from its
current ratio of 1% of the Gross National Product (GNP) to 2% of the GNP. The
programmed acquisition of new equipment for the PAF and PN along with this
equipments periodic maintenance, the constructions of ports, hangars, and
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17

air bases, and the training of military personnel who will use this new
military materiel require a dramatic increase in defense spending. The
Philippine government should increase the ratio of the defense
budget to the GNP to finance this undertaking.
Importantly, the government should provide a fixed term for the chairman
and service commanders of the AFP Joint Chiefs of Staff. Such a proposal aims
to institutionalize the necessary reforms in the military. Currently, members
of the Joint Chiefs of Staff who have reached the age of 56 retire despite
having been in their respective positions for only months at a time. A fixed
term for the chairman will ensure the continuity of programs within the military
and will better insulate him and the service commanders from politics. The
Philippine Congress can pass a law providing a fixed term of three years for the
chairman, the staff members, and the service commanders even after 56.
The incoming administration should seek to develop a credible defense
posture that would make a potential adversary think twice before using
force against the Philippines and, in case of an armed confrontation, enable
the AFP to inflict costly damages to the enemy. The efforts to redirect the
AFP from internal security to territorial defense are and should still be
geared for a modest defensive goal of developing a comprehensive
border patrol system and not naval war-fighting capabilities.
Complementing this goal would be the fostering of a trilateral armed force
prepared for maritime territorial security. This will involve enabling the
Philippine Army (PA), PAF and PN to develop maritime awareness capabilities
and limited maritime/air interdiction competencies for joint force warfare.
This will necessitate the redistribution of the defense budget away
from the PA to the PAF and the PN. This will also require the presidents
periodic appointment of the chairman of the Joint Chiefs of Staff
from the Air Force or Navy rather than from the PA.
A separate and composite unit in the AFP should be established to support
the PNPs counter-terrorism/counter-insurgency efforts and for humanitarian
assistance and disaster response operations. This unit can be formed by
combining the Armys Special Forces, Airborne, and Ranger formations with
the Marines Reconnaissance Units and the PNs Special Action Force
under one command. This composite unit will be supported by Air Force and
Navy air and sealift units. The Mamasapano incident showed that the
SAF and the PNP as a whole are not yet prepared to take over the
task of internal security from the PA and the Philippine Marines.
The AFP should train in combined operations with allied forces, especially
the United States and its other bilateral allies such as Japan, Australia, and
South Korea. No amount of resources and arms acquisition can enable the
Philippines to face an assertive and militarily powerful China in the South
China Sea in the worst-case scenario. The Philippine efforts to develop a
credible defense posture must be seen as a complement (rather than a
substitute) to the strategic deterrence provided by US forward
naval deployment and bilateral alliances in East Asia.
18

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2ND QUARTER 2016

Status Quo
During the First Regular Session of the
15th Philippine Congress, Senator Jinggoy
Ejercito Estrada filed Senate Bill No. 675
or the National Defense and Security Act
of 2010.73 The bill intends to repeal the
already obsolete Commonwealth
Act Number 1 or National Defense Act
that was enacted during the American
colonial regime in 1935. The bill
continues to languish in Congress. With
regard to the incoming administration,
Duterte has identified Retired
General Hermogenes Esperon as his
National Security Council (NSC)
adviser.74 It remains to be seen whether
or not Esperon will strongly lobby
for the passage of the National
Defense and Security Act as the legal
lynchpin of Dutertes internal and
external security strategy.
Notwithstanding the absence of the Act,
the AFP-DND continues to pursue its
modernization program and transition
from internal security to territorial
defense. Budget-wise, an estimated
Php 175.2 billion was allotted to the
Department of National Defense (DND)
for this year.75 Expense-wise, the AFP
registered an annual spending of
1.19% of GDP in 2010, 1.21% in 2011
and 1.19% in 2012.76 The Aquino
administration began accelerating longneeded and massive investments in
its military: Between 2010 and 2014,
Philippine defense spending went up
35 percent, near the regional average
of 37.6 percent increase.77 Yet, military
expenditure in 2014 represented
1.1 percent of GDPhalf of ASEAN
averageand six percent of government
spending, below the regional average
of 8.8 percent.78 In terms of per capita
spending, the Philippines was the third
lowest in ASEAN in 2014, at $32.90.79

In pursuit of a minimum credible defense

posture, Aquino approved at least Php 47
billion worth of military assets acquisition
last year in accordance with the AFP
Revised Modernization Program signed into
law last 11 December 2012.80 Twenty-five
of the military projects were signed by the
president which includes the purchase
of two (2) navy frigates worth P18-billion,
two (2) C-130 aircraft worth P1.6 billion,
two (2) naval helicopters worth P5.4
billion, and lead-in fighter trainer jets
ammunition worth P4.47 billion.81 Aquino
also approved the purchase of three (3) air
surveillance radars worth P2.68 billion, six
(6) close air support aircraft worth P4.97
billion, two (2) units of long range patrol
aircraft worth P5.98 billion, multi-purpose
attack craft project worth P864.32 million,
and night fighting system worth P1.116
billion.82 Added to the list were those
geared towards improving the existing
military facilities such as four (4) basing
support system and logistics projects
with a total budget of P2.15 billion; as
well as Army radios, thermal imaging
device, field ambulance units, armored
personnel carriers, flight simulators,
amphibious assault vehicles, combat
systems, light utility vehicles and
engineering equipment.83 Three (3)
projects pending further clarifications
and review are the acquisition of
designated marksman rifles, the standard
weapons system and the replacement
of the shore-based missile system.84
While the AFP-DND is strengthening its
defensive and offensive capabilities,
it is simultaneously improving its
interoperability with the allied forces. Last
April 4 to 16, it undertook the annually
held Exercise Balikatan 2016 that aims to
train and enhance the joint capabilities of
the AFP, US and Australian armed forces to
provide relief and assistance in the event
of natural disasters and other crises that
may pose a threat to public health and
safety.85 Approximately 5,000 US, 3,500

Philippine and 80 Australian Defense Force personnel took part in the 32nd
iteration of the exercises.86 Meanwhile, Japan participated as an observer,
sending its Oyashio-class Japanese diesel-electric submarine (SS-511)
escorted by two (2) destroyers, JS Setogiri (DD-156) and JS Ariake (DD-109).87

CONCLUSION
It will take time for Filipinos to meet all their aspirations for the country.
Although expectations have been raised, the incoming president will
not be able to eliminate poverty and other endemic problems in six years.
Nevertheless, the rise of Rodrigo Duterte to the presidency demonstrates
broad approval for new forms of government and styles of governance
that may produce better results for the everyday Filipino. In the near term,
the aspiration is for him to put in place systems that will propel the
countrys growth over the next generation. By then, perhaps the Philippines
will have been able to fully realize its potential to be Asias next
success story and a fully industrialized and liberal-democratic state.
For better or worse, Dutertes rise to the presidency has breathed in
new air in the policy space. It is too early to say whether his promise of
Tunay na Pagbabago or Radical Change will transcend incendiary
rhetoric and translate into much-awaited systemic transformation.
Given this, we highlight the importance of thinking beyond politics
and instead thinking strategically and long-term about the ways in
which the country can best improve the daily lives of Filipinos.
Rather than adopting a wait-and-see attitude, it is better for those of
us outside the government to proactively participate in the ongoing
national discourse. The outcome of Thinking Beyond Politics has been to
identify areas where the government could rationalize existing institutions
to ensure they operate better, such as amending the constitution to
open the economy, implementing the New Industrial Policy and
aligning incentives with it, improving coordination between national
agencies and local government units, and clarifying and improving
the mandates of overlapping or underutilized offices. While doing so,
the Philippines should appreciate the importance of monitoring
and adapting to shifts in the region and at home.

2ND QUARTER 2016

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19

endnotes
1

John T. Sidel, Bossism and Democracy in
the Philippines, Thailand and Indonesia: Towards an
Alternative Framework for the Study of Local Strongmen, accessed 02 June 2016, http://www.uio.no/
studier/emner/sv/iss/SGO2400/h05/undervisningsmateriale/Sidel.pdf.

19

Ibid.

20

Ibid, p. 114.

21

Ibid, p. 115.

Ina Andolong, How Duterte-Cayetano

will suppress crime in 3-6 months, CNN Philippines,
18 April 2016, accessed 17 May 2016, http://cnnphilippines.com/news/2016/04/15/Duterte-Cayetanoplan-crime-corruption-drugs.html.
22

Ibid.

Ibid.

Ibid, p. 51.

Ibid.

6
Christine F. Herrera, Duterte administration to push for Charter Change, The Standard, 23
May 2016, accessed 24 May 2016, http://thestandard.
com.ph/news/-main-stories/top-stories/206291/
duterte-administration-to-push-charter-change.html.
7
Mike Frialde, Duterte to amend Constitution for foreign ownership expansion, Philippine
Star, 04 February 2016, accessed 24 May 2016, http://
www.philstar.com/headlines/2016/02/04/1549659/
duterte-amend-constitution-foreign-ownership-expansion.
8

Ibid.

Ibid.

10
Department of Trade and Industry, Comprehensive National Industrial Strategy, Philippine
Government.
11
Melissa Luz T. Lopez, Palace signs
customs modernization act, Business World
Online, 31 May 2016, accessed 03 June 2016,
http://w w w.bwor ldonline.com/content.
php?section=Economy&title=palace-signs-customsmodernization-act-into-law&id=128351.
12

Ibid.

13
Duterte-Cayetano: we will implement a
better, bolder CCT program, Alan Cayetano official
website, 12 February 2016, accessed 25 May 2016,
http://alanpetercayetano.com/news/2016/02/dutertecayetano-we-will-implement-a-better-bolder-cctprogram.
14

Trisha Macas, To expand 4Ps, Duterte

promises to give a sack of rice to poor families, GMA
News Online, 07 March 2016, accessed 25 May 2016,
http://www.gmanetwork.com/news/story/558107/
news/to-expand-4ps-duterte-promises-to-give-asack-of-rice-to-poor-families.
Ibid.

17
Pia Ranada, Duterte supports K to 12, Rappler, 24 May 2016, accessed 25 May 2016, http://www.
rappler.com/nation/134106-duterte-supports-k-12.
18

20

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2ND QUARTER 2016

24
Ben Tesiorna, Rodrigo Duterte: Will he be
the next president? Sun Star Davao, 15 March 2016,
accessed 17 May 2016, http://www.sunstar.com.ph/
davao/feature/2016/03/16/rodrigo-duterte-will-hebe-next-president-462642.
25
Duterte may impose curfew on minors,
ban loud karaoke, ABS-CBN News, 11 May 2016,
accessed 17 May 2016, http://news.abs-cbn.com/
nation/05/10/16/duterte-may-impose-curfew-onminors-ban-loud-karaoke.
26
Duterte vows to double monthly salary of cops, soldiers, Manila Bulletin, 02 March 2016,
accessed 17 May 2016, http://www.mb.com.ph/
duterte-vows-to-double-monthly-salary-of-copssoldiers/.
27

Ibid.

28
http://cnnphilippines.com/
news/2016/06/15/Duterte-team-peace-talks-withNDF-Oslo-Norway.html
29
http://cnnphilippines.com/
news/2016/06/21/Duterte-gov%E2%80%99t-ceasefire-with-NPA.html

Carmencita A. Carillo, Communist party

offered posts as Duterte Cabinet takes shape, Business World, 16 May 2016, accessed 17 May 2016,
http://www.bworldonline.com/content.php?section
=TopStory&title=communist-party-offered-postsbras-duterte-cabinet-takes-shape&id=127583.
30

Ibid.

15

16

23
Robertzon Ramirez, Duterte to rivals:
Pray for your ratings to rise, The Philippine Star, 14
April 2016, accessed 17 May 2016, http://www.philstar.com/headlines/2016/04/14/1572733/duterterivals-pray-your-ratings-rise.

Ibid.

31
h t t p : / / w w w . p h i l s t a r. c o m / h e a d lines/2016/06/18/1594220/mnlf-milf-hold-brotherbrother-meet-duterte
32

Ibid.

33

Ibid.

Mike Frialde, Duterte to amend Constitution for foreign ownership expansion, Philippine
Star, 04 February 2016, accessed 17 May 2016, http://
www.philstar.com/headlines/2016/02/04/1549659/
duterte-amend-constitution-foreign-ownershipexpansion.
34

35
Duterte bent on pushing FOI, even if
it takes an EO, Rappler, 11 May 2016, accessed 09
June 2016, http://www.rappler.com/nation/132693duterte-push-freedom-of-information-eo.
36
Francisco A. Magno, PhD, Decentralization Policy Reform Agenda for Local Development,
Thinking Beyond Politics: A Strategic Agenda for the
Next President (Quezon City: Rex Publishing, 2015), p.
124.
37
Invest Philippines, Economic Zones and
Incentives, Philippine Government.
38
Neil Jerome C. Morales, DOE setting up
1-stop-shop for investments, Philippine Star, 27 November 2012, accessed 25 May 2016, http://www.
philstar.com/business/2012/11/27/874297/doe-setting-1-stop-shop-investments.

Bienvenido S. Oplas, Jr., The Philippine electricity market: Monopoly and competition, Business World Online, 13 August 2015, accessed 25 May 2016, http://www.bworldonline.
com/content.php?section=Weekender&title=thephilippine -electricity-market-monopoly-andcompetition&id=113411.

50
DENR cites gains in PA management under Aquino government, DENR official website, 27
April 2016, accessed 25 May 2016, http://www.denr.
gov.ph/news-and-features/latest-news/2548-denrcites-gains-in-pa-management-under-aquino-govt.
html.
51

Ibid.

52
Renato C. de Castro, PhD, The Aquino Administrations Foreign Policy Agenda: The Return of
Geopolitics in Philippine External Relations, Thinking
Beyond Politics: A Strategic Agenda for the Next President (Quezon City: Rex Publishing, 2015), p. 3.
53

Ibid, p. 5.

54

Ibid, p. 9.

55

Ibid, p. 10.

56

Ibid, p. 12.

57

Ibid, p. 14.

58

Ibid, p. 16.

59

Ibid, pp. 19-20.

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2016, http://news.abs-cbn.com/halalan2016/globalfilipino/05/16/16/duterte-to-create-department-forofws.
70
Renato C. de Castro, PhD, A 21st Century
Philippine National Security Agenda: The Aquino
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Publishing, 2015), p. 42.
71

Ibid, 42-43.

72

Ibid, 43.

73
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39

Helena Agnes S. Valderrama and Carlos C.

Bautista, Efficiency Analysis of Electric Cooperatives
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74
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75

Ibid.

40

41
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9513, Philippine Government.

60
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on the West Philippine Sea dispute, The Dailypedia,
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61

42
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43
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May 2016, http://business.inquirer.net/184005/biofuels-program-under-review.

62

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78

Ibid.

79

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Ibid.

44
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Electricity Market, Philippine Government.

Pia Ranada, Dutertes dream legacy: 3

major train lines across Philippines, Rappler, 09 April
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45
Big power users opened up for competitive supply by yearend, Business World
Online, 25 February 2015, accessed 25 May
2016,
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php?sec tion=Economy&title=big-power-use r s - o p e n e d - u p - fo r- c o m p e t i t i ve - s u p p l y - by yearend&id=103351.

64
Arra Perez, Duterte administration open
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63

65
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82

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83

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84

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Ibid.

Ritchie A. Horario, ERC to implement

RCOA by June 2016, The Manila Times, 05 January
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Carlos Primo C. David, PhD, Advancing
Sound Resource Management as a Requisite for Sustainable Development, Thinking Beyond Politics: A
Strategic Agenda for the Next President, xi.

National Economic Development Authority, Philippine Development Plan 2011-2016 Results

Matrices, Philippine Government.
49

Ibid.

80
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purchase of AFP defense assets worth at least P47B, Kicker Daily News, 14 September 2015, accessed
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66
Melissa Luz T. Lopez, DFA seeking bigger
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67

Ibid.

68
Duterte to make OFW concerns among
his top labor priorities, Rappler, 02 May 2016, accessed 08 June 2016, http://www.rappler.com/nation/politics/elections/2016/131531-duterte-laborday-rally-ofws-contractualization.
69

Duterte to create department for OFWs,

85
Sgt. Erik Estrada, Philippines, US start
Exercise Balikatan 2016, US Department of Defense,
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86

Ibid.

87
Allan Macatuno, US, Japan warships arrive for war games, Inquirer.net, 02 April 2016, accessed 08 June 2016, http://globalnation.inquirer.
net/138282/us-japan-warships-arrive-for-wargames.

2ND QUARTER 2016

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