The Philippine Foreign Relations

and Philippine Foreign Policy

Prepared by:

Jester P. Aguirre, MMPA, MBA, MHMT

Assistant Professor I
University of Caloocan City

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Definition

International Law

International law, also called public international law or law of nations, the body of legal rules, norms, and
standards that apply between sovereign states and other entities that are legally recognized as international
actors. The term was coined by the English philosopher Jeremy Bentham (1748–1832).

Definition of Foreign Policy

Scholars have described foreign policy as a pattern of behaviour that one state adopts in relation with other
states, an idea that other scholars consider as the strategy and tactics employed by the state in its relation with
other states in the international system. Foreign policy is thus a plan or programme of actions of a state, which
determines the sum-total of the state’s objectives in the international system. Put differently, they are the actions
of a state toward the external environment and the conditions – usually domestic – under which such actions are
formulated.

Definition of Foreign Relation

Foreign relations: the relations between sovereign states or the manifest result of foreign policy. It is the field of
international interaction and reaction.

When we talked about foreign relation it also involve in being engage on multispectral level such as Trades,
Economics, Military, good or bad relationship, active coordination, recognition or not recognizing of a state.
Whether there is an interaction or no interaction at all forms part of Foreign Relations.

Bilateral Agreement

An effective collaboration mechanism between countries of origin and destination takes the form of bilateral
agreements — formal agreements or memoranda of association to ensure that migration takes place in
accordance with agreed principles and procedures.

Multilateral Agreement

A multilateral agreement is a trade agreement established between three or more countries with the intention of
reducing barriers to trade, such as tariffs, subsidies, and embargoes, that limit a nation’s ability to import or
export goods. They are considered the best method of encouraging a truly global economy that opens markets to
small and large countries on an equitable basis.

Differences between Bilateral and Multilateral Agreement

Trade agreements between nations are either bilateral, involving only two nations, or multilateral. By their very
nature, requiring concessions by several countries that have traditionally used trade barriers to protect certain
industries or domestic goods, multilateral agreements are much more difficult to negotiate than bilateral
agreements.

Treaties VS. Executive Agreement

A treaty needs the concurrence of the Senate in order to be valid while an executive agreement needs only the
signature of the President or his representative without need of Senate concurrence.

Doctrine of Incorporation

The doctrine has been incorporated in the 1987 Constitution pursuant to Section 2 of its Article II, which
declares:

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 Sec. 2. The Philippines renounces war as an instrument of national policy, adopts the generally
accepted principles of international law as part of the law of the land and adheres to the policy of
peace, equality, justice, freedom, cooperation, and amity with all nations.

The principle of pacta sunt servanda (Observance of treaty in good faith)

The Philippine government is duty bound to abide by its international engagements in good faith, regardless of
whether the engagement is characterized as incorporated or transformed international law or whether it takes the
form of an international executive agreement.

Article II Section 7:

Section 7. The State shall pursue an independent foreign policy. In its relations with other states, the paramount
consideration shall be national sovereignty, territorial integrity, national interest, and the right to self-
determination.

Philippine Foreign Policy

Republic Act No. 7157, otherwise known as "Philippine Foreign Service Act of 1991", gives mandate to the
Department of Foreign Affairs to implement the three (3) pillars of the Philippine Foreign Policy, as follows:

1. Preservation and enhancement of national security

2. Promotion and attainment of economic security
3. Protection of the rights and promotion of the welfare and interest of Filipinos overseas.

These pillars overlap and cannot be considered apart from each other. Together with the eight (8) foreign policy
realities outlined by the President, they reinforce each other and must be addressed as one whole.

1. China, Japan and the United States and their relationship will be a determining influence in the security
situation and economic evolution of East Asia;
2. Philippine foreign policy decisions have to be made in the context of ASEAN;
3. The international Islamic community will continue to be important for the Philippines;
4. The coming years will see the growing importance of multilateral and inter-regional organizations to
promote common interests;
5. As an archipelagic state, the defense of the nation’s sovereignty and the protection of its environment
and natural resources can be carried out only to the extent that it asserts its rights over the maritime
territory and gets others to respect those rights;
6. The country’s economic policy will continue to be friendly to both domestic and foreign direct
investments;
7. The Philippines can benefit most quickly from international tourism
8. Overseas Filipinos will continue to be recognized for their critical role in the country’s economic and
social stability.

Preservation and enhancement of national security

The National Security Policy (NSP) provides that for the Philippines and the Filipino people, national security is
defined as "a state or condition wherein the people's welfare, well-being, ways of life; government and its
institutions; territorial integrity; sovereignty; and core values are enhanced and protected."

National security is anchored on three major pillars.

1. The first pillar is safeguarding the Philippines' national unity, its democracy and its social institutions.
The most important foundation of national unity is that all citizens share one national identity that is,
being Filipinos regardless of their ethnic, religious, cultural and ideological orientations.

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 2. The second pillar of national security is ensuring the security of the State and preserving and protecting
its sovereignty, territorial integrity, and institutions. This is clearly provided in the Constitution, to wit:
 Definition of national territory consistent with new international covenants. (Art. I)
 Renunciation of war as an instrument of national policy. (A.it. II Sec. 2)
 Civilian supremacy over military. (Art. II Sec.3)
 Role of the armed forces as protector of the people and the State. (Art. II Sec 3)
 Maintenance of peace and order, the protection of life, liberty and property, and the promotion of
the general welfare. (Art II Sec. 5)
 Pursuit of an independent foreign policy based on national sovereignty and national interest. (Art.
II Sec. 7)
 Right to self-determination. (Art. II Sec. 7)
 Freedom from nuclear weapons. (Art. II Sec. 8)
 Suspension of the writ of habeas corpus. (Art. III Sec 15)
 Concept of a citizen army. (Art. XVI Sec. 4)
3. The third pillar is the protection of properties, infrastructures and keeping the people safe from all
forms of threats, both here and abroad, and to the extent possible, creating jobs in order to bring back
home overseas Filipino workers where their physical safety can be fully guaranteed by our
Government.

This National Security Policy (NSP) establishes the Philippines' national security goals and strategic objectives
with primary focus on the political, economic, socio-cultural, technological, environmental, informational,
diplomatic and military aspects, which are vital to nation-building. The values and vision of the Filipino people,
as promulgator of the Constitution, find their best expression in the Preamble of the 1987 Philippine
Constitution.

"We, the sovereign Filipino people, imploring the aid of almighty God, in order to build a
just and humane society and establish a government that shall embody our ideals and
aspirations, promote the common good, conserve and develop our patrimony, and secure to
ourselves and our posterity the blessings of independence and democracy, under the rule of
law and a regime of truth, justice, freedom, love, equality and peace"

The Government has identified eight National Security Interests that amplify its concept of national security ---
public safety, law and order, and social justice; socio-political stability; territorial integrity; economic solidarity;
ecological balance; cultural cohesiveness; moral-spiritual consensus; and international peace and cooperation.
These interests serve as the Government's strategic focus and shall be accorded appropriate Government's
planning and resource allocation.

Public Safety, Law and Order and Justice

The most fundamental duties of the State are to ensure public safety, maintain law and order, and dispense
social justice within the purview of the constitutionally enshrined principles of democracy, rule of law and
respect for human rights. The Government seeks to enhance its ability to execute the above mandate by
strengthening the five pillars of the criminal justice system - law enforcement, the courts, prosecution, penology,
and the community. Central to this goal is the concept of participatory governance, in which all sectors are fully
engaged in a meaningful partnership with the Government for the task of building a safer and more tranquil
society. It speaks of collaborative relationship between the Government and the people particularly with respect
to public safety issues involving the protection of human lives, private property, public assets and critical
infrastructure.

Socio-Political Stability

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This is a condition where peace prevails even in diversity and where cooperation and support exists between the
Government and the people under an atmosphere of mutual respect and empathy, bound by a strong notion of
nationhood and a sense of duty to respect the rule of law and serve the common good.

Economic Solidarity and Sustainable Development

Building an economy that is strong and capable of supporting and sustaining human livelihood and national
endeavors is the overarching thrust of the Philippines' developmental plans and goals. Reducing poverty and
income gaps, creating equal economic opportunities for all, and distributing the fruits of development to the
broadest segments of society are key objectives of the desired economic growth and national security outcomes.
This component likewise emphasizes the development of a stakeholder mind-set among the Filipinos, which can
form the basis for collective economic initiatives at the community level. It encourages community groups and
grassroots organizations to organize themselves around a framework of solidarity and self-reliance to confront
their problems and satisfy their needs.

Territorial Integrity

This condition ensures that the territory of the country is intact and inviolable, and under the effective control
and jurisdiction of the Philippine Government. Within the bounds of pertinent international laws, this involves
the exercise of sovereign rights over land, aerial domain and maritime territories within the Philippines'
exclusive economic zone (BEZ) and continental shelf. This includes the right of the Philippine government to
protect and defend all land, marine and sub-marine features and resources within its territory from invasion and
illegal incursions and resource exploitation.

Ecological Balance

Rapid economic growth and industrialization are transforming society and improving the lives of many
Filipinos, but it comes at a great cost to the environment. The impact of global warming and climate change,
blamed largely on harmful patterns of industrial and human practices, could be more severe for the Philippines
-- one of the most disaster-prone countries in the world. This real and present danger makes it imperative for the
country to pursue a developmental path that is sustainable, and beneficial to both present and future generations.
The Philippines must be able to maximize the rewards of its rich natural resources while at the same time
conserving and protecting these finite resources for the sake of the future generation.

Cultural Cohesiveness

National unity is an essential cornerstone of nationhood and national survival. Without it, there is no future for
the country. Filipinos must continue to embrace the values and belief systems, the moral and ethical standards,
the traditions and cultural heritage which have made them truly distinct and earned a respected place in the
community of nations. Amid diversity, such qualities have served as the invisible but potent force that teaches
the Filipino to care and work for the common good and to help their fellow Filipinos especially during times of
tragedies and disasters. The Government must continue to fully harness these attributes and value systems in
order to strengthen the Filipino family, promote national harmony and keep the spirit of patriotism and national
pride - the most fundamental pillars of national unity - alive in the hearts and minds of every Filipino.

Moral and Spiritual Consensus

This component speaks of a moral and spiritual consensus among Filipinos on the wisdom and righteousness of
the national vision, as enunciated by the country's national leadership. It presupposes the people's trust and
confidence in the Government's commitment and capability to lead the nation toward this desired national
vision. Such trust and confidence inspires and motivates the citizens to get involved and to participate
vigorously in the implementation of governmental programs that promote peace and development.

International Peace and Cooperation

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The Philippines as a democratic country is committed to the promotion of global peace, development and
humanitarianism. Within this framework, the security of the state is best enhanced through the pursuit of amity
and cooperation with all nations and partnership with like-minded countries and strategic partners. The country
must pursue constructive and cordial relations with all peoples, but remain free from any control, interference or
threat of aggression from any of them.

The national security sector needs to give focused attention to several major internal and external issues and
challenges confronting the Philippine society.

INTERNAL ENVIRONMENT

LAW AND ORDER AND ADMINISTRATION OF JUSTICE

The Philippines has grappled for years with a serious peace and order problem. The national crime rate,
considered as one of the highest in Southeast and East Asia, has posed a significant deterrent to investments as
well as constrained the country's overall development potential. While the number of reported crimes has been
rising, the ability of the police to solve crime has decreased. The twin scourge of corruption and patronage
politics plaguing law enforcement institutions and Government sector as a whole has made it extremely hard, if
not impossible, to bring the crime rate down.

Clearly, ensuring public security and enforcing the rule of law is one of the key governance challenges
confronting the Philippine Government. This has amplified the need to undertake crucial reforms aimed at
cleansing and strengthening the five pillars of the criminal justice system, namely: law enforcement, the courts,
prosecution, correctional institutions, and the community.

The Philippines' growing illegal drugs problem in particular needs a determined and proactive solution.
Successive researches and pertinent crime statistics in the Philippines show a strong and direct correlation
between crimes, especially serious or violent ones, and drug abuse. Any serious campaign to fight crime should
therefore also involve a resolute crusade to stamp out drug abuse. This is a tough challenge. In 2015, the
Philippine Drug Enforcement Agency (PDEA) reported that a fifth-or 8,629 out of the country's 42,065
barangays-were "drug affected," determined by the presence of at least one user, pusher, manufacturer, or other
drug personality in the area. Based on PDEA's 2014 arrest data, methamphetamine hydrochloride or shabu tops
the list of most abused illegal drugs, followed by marijuana and expensive party drugs like cocaine and ecstasy.
The proliferation of illegal drugs and the extent of drng trade in the Philippines is also reflected in the rising
volume of seizures of illegal drugs over the past few years amounting to: Php. 5.44 billion (2013), Php. 6.18
billion (2014), Php. 5.42 billion (2015), Php. 12.4 billion (2016).

INTERNAL ARMED CONFLICTS

The communist rebellion being waged by the Communist Party of the Philippines and its armed wing, the New
People's Army (NPA), continues to pose serious peace and order problems in the country. The insurgency is one
of Asia's longest rnnning conflicts and has claimed an estimated 30,000 lives since the 1960s. While the NPA is
believed to have fewer than 4,000 soldiers now, down from a peak of 26,000 in the 1980s, it retains support
among the extremely poor in the rnral Philippines. There are persistent challenges to the three-decade old peace
negotiations with the communists, but the Government will keep forging on until both parties agree to end the
fighting.

The Muslim separatist struggle being waged by non-state armed groups and extremist movements remains a
major source of instability in resource-rich but impoverished parts of southern Philippines (or Mindanao). The
on-and-off peace process with the Moro Islamic Liberation Front (MILF) - the largest and most organized of the
myriad radical groups operating in Mindanao - made a promising breakthrough when finally a peace deal was
signed in March 2014. A draft Bangsamoro Basic Law (BBL), which forms the backbone of the 2014 peace
accord, is pending approval by Philippine Congress.

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In line with the above, the Government, since the 1990s, has taken steps to decentralize power aimed at
addressing the root causes of internal conflicts, namely: poverty and social injustice, widespread economic
inequity, poor governance, abuse and control of political power, and marginalization of cultural communities
which includes land security, natural resources, identity and human rights. The Local Government Code of 1991
sought to empower regions and local government units in a bid to more evenly distribute wealth and to extend
the reach of essential government services to the broadest segments of the population. It is time to take these
initial gains to the next higher level by exploring the full benefits of political devolution through a federal form
of government. The proposal could spur long and vigorous discussions among Filipinos, who have never known
any other government than the present unitary one -- but let the public debates start now.

TERRORISM AND TRANSNATIONAL CRIMES

International terrorism and transnational crime pose a direct threat to the security of individual countries and to
international peace and prosperity. These twin problems are a persistent global threat that know no borders,
nationality or religion, and operate outside the rule of law. Transnational terrorists and crime syndicates are
usually well-organized internationally and domestically. They are well-resourced, have access to the latest
technologies and skills, and will use unlimited or any form of violence to achieve their goals and objectives.

The Philippines faces continuing threats from terrorism, both of foreign and domestic origin. The Abu Sayyaf
Group (ASG) remains as the foremost terror group actively inflicting severe socio-political and economic
disruptions. The ASG is an extremist organization known for its bandit-like tactics and notorious for beheadings
and kidnap-for-ransom activities in Mindanao. Radically inspired by the Al Qaeda (Osama bin Laden) in its
formative years, the ASG along with its affiliates, such as the Jemaah Islamiyah (JI) and Rajah Solaiman
Movement (RSM), has a long-term intention of waging jihadist war against non-Muslims. Its members are
known to have linkages to members of the MILF and the Moro National Liberation Front (MNLF). The ASG
has recently pledged its allegiance (bai'yah) to the Islamic State (1S/ISIS/ISIL) but has faced stiff resistance due
to continuing police and military operations. In addition to the ASG, other local terrorist groups such as the
Ansar al-Khilafah Philippines (AKP), Maute Group, Bangsamoro Freedom Fighters (BIFF), and Daesh-inspired
entities have the potential to inflict various forms of violent attacks not only in Mindanao but also in any part of
the Philippines.

Meanwhile, the problem of transnational crimes has become more pressing. Given its archipelagic attributes, the
Philippines' borders are porous and vulnerable to the activities of international crime syndicates. These illegal
transborder activities include: drug trafficking; human trafficking of children, women, illegal migrants and
labor; illegal fishing/poaching; arms smuggling; and money laundering. The Philippines' southern maritime
borders which are shared with its ASEAN neighbors are also areas of concern due to the prevalence of high sea
piracy and other related criminal activities. The asymmetric nature of terrorism and transnational crime requires
the national government to continuously review and update current strategies, and to develop an integrated
approach involving concerned law enforcement agencies of the Government. The Philippines must strengthen
and enhance already existing cooperation with international partners while seeking to develop new ones in this
regard.

ECONOMIC AND SOCIAL THREATS

Poverty remains pervasive and is not expected to change significantly in the near future. As the population
continues to grow, more Filipinos are expected to join the ranks of the poor so long as the poverty rate remains
largely unchanged. Data from the Philippine Statistics Authority showed that poverty incidence among Filipinos
in 2015 remains unacceptably high at 21.6%. On the other hand, subsistence incidence among Filipinos, or the
proportion of Filipinos whose incomes fall below the food threshold, was estimated at 8.1% during the same
period.

Income inequality between the rich and the poor and between urban and rural areas has remained high and will
likely persist into the future. The poorest 20% of Filipinos own less than 5% of the country's total income and
the richest 10% of the population accumulate income 2.7 times more than that of the poorest 40%. Moreover,

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average yearly unemployment and underemployment rates for the past five years remained steady at around 6%
and 18%, respectively. In absolute terms, about 2.8 million Filipinos were unemployed. While unemployment
rate increased recently, the underemployment rate dropped to 16.3% in January 2017 from 19.6% recorded in
the same year ago. In absolute terms, about 6.4 million Filipinos were underemployed, according to the Labor
Force Survey released by Philippine Statistics Authority in January 2017.

Different levels of economic and social development, along with demographic pressures, cause hunger and
malnutrition, homelessness, and larger migrations of people from rural to urban areas. Demographic migrations,
in addition to social problems and the growth of c1ime, can lead to increased instability and insecurity.
Infectious diseases are also on the rise particularly human immunodeficiency virus (HIV) and acquired immune
deficiency syndrome (AIDS). Many of the HIV/AIDS cases were reported among overseas Filipino workers
(OFWs) and among workers engaged in business process outsourcing.

EXTERNAL ENVIRONMENT

OVERLAPPING TERRITORIAL CLAIMS AND MARITIME DOMAIN ISSUES

The country needs to address the disputes concerning maritime boundaries as they affect a complex range of
national security concerns as well as threaten regional peace and stability. The Philippines must ensure good
order within its sea boundaries and develop appropriate maritime domain awareness and response force
capability to address the presence of hostile forces at sea, pirates, terrorists, traffickers, illegal fishers, and other
environmental transgressors. The Philippines must also protect the nation's maritime interests in the Benham
Rise and Batanes islands in the North, and the ZambaSulTa and Bongao islands in the Southern Philippines.

The dispute over the West Philippine Sea (WPS) remains to be the foremost security challenge to the
Philippines' sovereignty and territorial integrity. In July 2016, the Philippines won a key victory when the
Arbitral Tribunal ruled that the Philippines has exclusive sovereign rights over the WPS (in the South China
Sea) and that China's "nine-dash- line" claim is invalid. The Philippines will tread with prudence on this
complex and delicate issue and will carefully calibrate its diplomatic moves to avert the costly consequences of
any potential outbreak of armed confrontations in the disputed sea region.

The Government is looking to begin the process of diplomatic negot1at10ns with neighboring countries to
delimit and define maritime borders and jurisdictions. In this connection, the enactment of laws pertaining to
national defense, maritime zones, archipelagic sea lanes and all other matters necessary for compliance with the
country's commitments and obligations under international law is urgent and imperative.

GLOBAL AND REGIONAL GEOPOLITICAL ISSUES

In addition to the WPS issue, there are other inter and intra-states flashpoints of immediate concern to the
Philippines. These include the intensifying conflicts in the Middle East and Africa (MENA region), persisting
tension in the Korean Peninsula, unresolved territorial disputes in Northeast and Southeast-Asia, unsettled
Sabah issue, China-Taiwan conflict, and other power rivalries where the hegemony of the United States is
contested and threatened.

United States

The United States remains as the only superpower in the world today and maintains its strategic presence around
the globe. In the Asia Pacific region, the US strengthens the sphere of influence through the "pivot/rebalance
policy" and has sought to improve its military standing through the introduction of more sophisticated weapons
systems, in the improvement of basing facilities and in the alliance and multilateral network it has set up among
its regional partners. A continuing US security presence in the Asia Pacific is a stabilizing force, particularly
with the growing complexity of security challenges that confront the region. The US remains as the sole defense
treaty ally of the Philippines. The Mutual Defense Treaty between the Philippines and the United States has
been strengthened under the Enhanced Defense Cooperation Agreement (EDCA) of 2015 granting the U.S.
increased military presence in the country for humanitarian and maritime security operations. It remains to be

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seen how the current Trump Administration will act towards Asia. It is expected that the US will remain to be
engaged; the Philippines will still seek to work closely with the US on a number of significant security and
economic issues.

China

With China's rise as the world's second largest economy, surpassing Japan, attention has focused towards its
direction due to its huge population, large territory and vast natural resources, rapid industrial and technological
breakthroughs, and unparalleled economic growth. The rise of China generates policy concerns not only among
developed countries such as the US, Japan and Korea, but also among the ASEAN nations due to socio-cultural
interactions, significant trade and investments, as well as territorial claims in the WPS. China's more active
presence in the WPS is motivated by growing need for food sources, increasing demand for energy resources,
and renewed stirrings of nationalism.

ASEAN

There are existing border disputes among the member-states of ASEAN, but the organization has consistently
upheld the principles of consultation and consensus as its norm in resolving inter-states misunderstanding and
conflicts. ASEAN is building a Political-Security Community, an Economic Community and a Socio-Cultural
Community to promote greater regional integration and to strengthen ASEAN centrality in the context of the
wider Asia Pacific region. The ASEAN as a regional bloc had pursued greater regional cooperation on common
problems such as combating piracy, smuggling, human trafficking, terrorism and other transnational crimes.
ASEAN centrality is important as it will allow the region to manage the impacts of geo-political rivalries among
the great powers.

Japan

Japan remains as an economic power house in Asia and the new security challenges confronting it induce Tokyo
to seek closer security relations with other regional states. Their pacifist constitution is a product of its
experience in World War II as well as the continuing security umbrella the US has been providing it. However,
new security challenges in the region including territorial disputes in the Senkaku Islands provide a strong
incentive for Japan to upgrade its defensive capabilities as well as seek closer security relations with other
regional states. Japan has entered into a strengthened strategic partnership with the Philippines aimed at
boosting political, security and defense ties and cooperation between the two countries.

Other Regional Players

Other extra-regional powers such as South Korea, Australia, Russia, and India as members of the East Asia
Summit (EAS) are also crucial in contributing to the peace, stability, and prosperity of the East Asian region.
Being bound to the Philippines and ASEAN, these countries through the EAS aim to promote community
building in the region consistent with and to reinforce the realization of the ASEAN Community, and will form
an integral part of the evolving regional security architecture. The Philippines will need to closely work with
these powers bilaterally and through the EAS on vital economic and security issues.

GLOBAL SECURITY ISSUES AND THE WELFARE OF OFWs

Conflicts abroad and other emerging global security threats pose a direct danger to overseas Filipino workers
(OFWs), who contribute significantly to the national economy, accounting for most of the country's net factor
income from abroad (NFIA) through their remittances. The Government must exert continuing effort to promote
and protect the rights and welfare of our OFWs, particularly victims of illegal recruitment, human trafficking,
ill treatment and unfair labor practices, among others.

Global disruptions resulting from armed conflicts, political or social instabilities, economic or financial crisis,
pandemics and other health emergencies or natural or man-made disasters can bring significant harm to our
fellow Filipinos abroad. The Government must extend all possible assistance to distressed OFWs, including

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their repatriation or evacuation where necessary. The Government must also maintain its engagement with
international organizations and other international partners on the issue of migration and development as well as
other issues affecting their rights.

PROLIFERATION OF WEAPONS OF MASS DESTRUCTION

Rapid technological advancements and greater access to scientific knowledge are changing the face of the world
in unimagined ways. Scientific and technological breakthroughs are creating wealth and progress everywhere,
but are also spawning new and increasingly dangerous triggers for global insecurity. Among the most serious of
these threats is the proliferation of weapons of mass destruction (WMDs), which has come to occupy center
stage in international politics. WMDs are classified into three major types: nuclear weapons, chemical warfare
agents, and biological warfare agents. Nine nations are currently in possession of such WMDs -- Britain, China,
France, India, Israel (assumed), North Korea (claimed), Pakistan, Russia, and the United States - and a number
of states are believed to possess chemical and/or biological warfare agents.

While the mass killing of people is not a new characteristic of warfare, WMDs pose an unprecedented risk in
terms of their potential for large-scale destruction and the indiscriminate nature of their effects. Aside from the
dangers posed by existing stockpiles of WMD, there are growing concerns that WMDs and related technologies
could spread to more states and non state terrorist networks. The Philippines will continue to strongly support
the global call for greater international collaboration to control the proliferation and use of WMDs.

OTHER STRATEGIC ISSUES AND CHALLENGES

RISING THREAT OF CYBERCRIME

The latest report by PricewaterhouseCoopers's (PWC) Global Economic Crime Survey revealed that cybercrime
is today's fastest rising economic crime. Expounding on the nature of cybercrime, Interpol said that more and
more criminals are exploiting the speed, convenience and anonymity of the Internet to commit a wide range of
criminal activities that know no borders, either physical or virtual, cause serious harm and pose very real threats
to victims worldwide. Credit card fraud, ATM theft, call center scams, and other computer or web-based forms
of deception schemes and identity theft have become increasingly rampant especially in Asia. New and
increasingly creative trends in cybercrime are emerging all the time, with estimated costs to the global economy
running to billions of dollars. Interpol added that in the past, cybercrime was committed mainly by individuals
or small groups, but today we are seeing highly complex cybercriminal networks bring together individuals
from across the globe in real time to commit crimes on an unprecedented scale.

To meet these rapidly evolving security challenges in cyberspace, the Philippines must first and foremost
develop the nation's cyber capabilities. Experts noted that one of the most serious weaknesses of the Philippines
is the low number of practicing cybersecurity professionals. The State must enhance and expand its pool of
information and communication technology (ICT) experts, especially in the law enforcement and security
sectors, in order to equip the government with the necessary skills/knowhow to preempt and combat cyber-
based crimes. Collaborative efforts with the academe and the business community should be part of this national
campaign.

CLIMATE CHANGE

Scientific studies show that the Philippines is highly vulnerable to the effects of climate change. In its most
recent assessment, the Inter-Governmental Panel for Climate Change stressed that the rising global temperature
has already impacted on the climate threshold of the earth. For the Philippines, the findings predicted that we
will experience extreme maximum and minimum temperatures, more frequent intense rains, and more disastrous
tropical cyclones (e.g. Typhoon Haiyan) with an average of 22 typhoons per year. The possibility of more El
Nifio weather episodes will also increase. According to a 2015 study funded by the US Agency for International
Development, every single major city in the Philippines is expected to face some form of water shortage by
2025.

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Scholars of climate change believe that change in climate variability increases the risk of armed conflict in
certain circumstances, even if the strength of the effects is unce1tain. Evidence suggests that climatic events
over a large range of time and spatial scales contribute to the likelihood of violence through multiple pathways.
The effects of climate change on conflict and insecurity have the potential to become key risks because factors
such as poverty and economic shocks that are associated with higher risk of violent conflict are themselves
sensitive to climate change. Given the enormous impact of climate change especially on the poor and vulnerable
population, the United Nations viewed climate change as a threat multiplier or as an indirect pathway that could
exacerbate existing sources of conflict and insecurity. There are five channels through which climate change
could affect security: (i) threat to the well-being of the most vulnerable communities; (ii) impact to economic
development --- halting or significantly slowing-down growth thereby worsening poverty and increasing
desperation; (iii) second-order effect of unsuccessful adaptation in the form of uncoordinated coping or survival
strategies of local population; (iv) threat posed by climate change to the viability and even survival of a number
of sovereign states; and (v) availability or access to natural resource and the resultant competition and possible
territorial disputes between countries.

INSTITUTIONAL CONCERNS

Other urgent concerns include much-needed reforms in the security and judicial sectors with emphasis on the
following: modernizing and professionalizing the armed services; strengthening the judicial system;
strengthening legislative oversight on security agencies; and improving the national security and intelligence
community. Renewed focus should be given to the following key governance issues: stamping out corruption
and professionalizing the bureaucracy; removing institutional obstacles to academic and scientific research and
development; improving the government's auditing rules and regulations; and enhancing the Government's
ability to deliver basic services.

The following goals and strategic objectives shall be pursued by every man and woman in the Government,
along with the people in the private sector, to secure the Filipino nation.

STRENGTHEN PUBLIC SAFETY, LAW AND ORDER, AND THE ADMINISTRATION OF JUSTICE

The general public must be secured and protected from any harm that could endanger their lives, properties, and
ways of life. The Government is primarily accountable to the people and must ensure that a just, stable and
peaceful society is achieved. When internal peace and stability exist, both public and private institutions can
extend the reach of governance and development to all Filipinos.

Strategic Objectives:

(1) Launch holistic programs to combat illegal drugs, criminality, corruption, terrorism and transnational
crimes.
(2) Strengthen and institute reforms to the five pillars of the criminal justice system (i.e. law enforcement,
the courts, prosecution, correctional institutions, and the community).
(3) Empower citizen's organizations to actively participate in governance, in the implementation of public
policies, in cultivating a culture of peace, and in safeguarding the safety of the people.
(4) Pursue the enactment of peace and security legislations that would strengthen security sector
governance and peace-building efforts of the Government.

SUSTAIN AND ENHANCE SOCIO-POLITICAL STABILITY

Internal socio-political stability rests upon healing the many rifts that divide the nation. This consists of
measures and policies that promote participatory governance, synergies of the three branches of Government ---
the executive, legislative and judiciary --- and devolution and decentralization of the political power and
responsibility of local government units.

Strategic Objectives:

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 (1) Promote the primacy of peace process to end internal armed conflicts.
(2) Pursue a new form of government that would create an environment conducive to economic, political
and social development.
(3) Strengthen the integrity of national institutions by promoting transparent, participatory and
accountable governance.
(4) Pursue policies that would win the hearts and minds of those who have grievances and retain the
allegiance of the rest of the citizenry.

BOLSTER SOLIDARITY-BASED AND SUSTAINABLE ECONOMIC DEVELOPMENT

Sustaining the path towards economic development is vital for national security and social progress. Ambisyon
Natin 2040, as spelled out in Executive Order No. 5, is the development vision aimed at tripling Filipinos' real
per capita incomes as well as eliminating hunger and poverty on or before 2040. Building a prosperous nation
requires our collective efforts in bringing peace by ending all internal strife. Poverty, which plagues a significant
portion of our population, cannot be resolved unless and until corruption and incompetent government officials
are weeded out from the bureaucracy. Our primary aim is to ensure that our people are free from hunger and
poverty through policies that promote full employment, a rising standard of living, and an improved quality of
life for all. Our economic success shall be measured not just by the magnitude of productivity, but more
importantly, by how such economic growth bring our people out of poverty.

Strategic Objectives:

(1) Ensure peaceful and conducive environment to achieve our national vision and socio-economic
development agenda.
(2) Contribute in the pursuit of sustainable growth through inclusion, education, and infrastructure
development and protection.
(3) Promote global competitiveness and innovation and harness the knowledge and experiences gained by
Filipinos overseas.
(4) Strengthen cyber security and develop policies and strategies against the adverse effects of
globalization.

SAFEGUARD THE TERRITORIAL INTEGRITY AND SOVEREIGNTY

Safeguarding national sovereignty, territorial integrity, national interest and the right to self-determination are
primordial duties of the State. The Philippines must demonstrate to the world that we are capable of protecting
and defending what is ours, and that we shall fully assert and exercise our sovereign rights as a truly
independent nation -- free from external control and influence. In this way, we can be respected, become world's
reliable friend, and be able to negotiate favorable economic terms and concessions.

Strategic Objectives:

(1) Develop defense capability to protect the Philippines' territory, sovereignty and mant1me interests;
enhance cooperative mant1me security and defense arrangements with other countries; and pursue the
enactment of laws on defense modernization.
(2) Pursue international support for a rules-based regime in the SCS/WPS and respect for the Award of the
Permanent Court of Arbitration while engaging claimant-states on the way forward for the
management and settlement of disputes.
(3) Pursue implementation of the Declaration of Conduct (DOC) and conclusion of a legally-effective
Code of Conduct (COC) while engaging in confidence-building measures in the region.
(4) Pursue maritime boundary delimitation with adjoining countries and the enactment of laws on
Maritime Zones and Archipelagic Sea Lanes as well as on matters pertaining to commitments and
obligations under international law, particularly UNCLOS.

PROTECT AND PRESERVE ECOLOGICAL BALANCE

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Protecting and preserving ecological balance is a complex challenge that interacts with many other determinants
of national security and people's well-being. The drivers for protecting and preserving the environment are inter-
related with issues of poverty, governance, the pressures of rapid economic and population growth, and the
phenomenon of climate change. The environmental impacts of climate change have brought a new normal in
Philippine weather and its impacts have been felt on food security, water security, ecological balance, and
delivery of social services. These redound to the country's socio-political stability.

Strategic Objectives:

(1) Enhance the security sector's capability for humanitarian assistance and disaster response and harness
the relationships of Filipino indigenous inhabitants of the ecosystems to preserve and conserve forests
and marine resources.
(2) Protect and preserve the country's ecosystems, biodiversity and genetic resources.
(3) Institutionalize climate change adaptation and risk reduction measures.
(4) Promote sustainable use of environmental resources and harness alternative sources of energy that have
limited negative effects to the natural environment.

ADVANCE CULTURAL COHESIVENESS

Cognizant of the pluralist character of our populace, the Government must endeavor to create an environment
conducive to cultural understanding, promote social integration and foster inclusive societies that respect
diversity. Towards this end, the Government shall strengthen the National Commission for Culture and the Arts
to promote the immense wealth of Philippine art and culture and to effectively and efficiently implement the
Government's cultural programs.

Strategic Objectives:

(1) Promote cultural programs and projects of the National Commission for Culture and the Arts.
(2) Strengthen social safety measures and protection programs for all including disadvantaged and
vulnerable groups and persons.
(3) Enhance Filipino ways of life such as Bayanihan, Farnily-Centeredness and Malasakit, among others,
through greater participation in cultural programs and community development.
(4) Promote the culture of meritocracy, ethical and moral standards, and equality of opportunity in the
public and private services.

PROMOTE MORAL-SPIRITUAL CONSENSUS

Moral consensus is achieved if there is a shared vision of Filipino nationhood, inspired and manifested in words
and deeds by the national leadership, and supported by the citizens. When there is consensus among the people
on the wisdom and righteousness of the common national vision, the citizens are motivated to participate
vigorously in the pursuit of national goals and objectives.

Strategic Objectives:

(1) Pursue interfaith and intercultural dialogue to promote mutual understanding and peaceful co-existence
among people.
(2) Raise public awareness about national security and promote Filipino unity, nationalism and teamwork,
in the time-honored Filipino culture of Bayanihan (helping each other).
(3) Pursue programs that would instill national pride, patriotism and love of country such as the Reserve
Officers' Training Corps (ROTC).
(4) Pursue and strictly enforce policies and programs that would level the political and economic playing
fields.

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CONTRIBUTE TO INTERNATIONAL PEACE

The Government shall pursue constructive and cordial relations with all nations and peoples and ensure that the
country is free from any foreign control and intervention. The programs of the Government will be geared
towards maintaining an independent foreign policy and bolstering cooperative and harmonious relations with all
countries, promoting development through economic diplomacy, protecting the rights and welfare of Filipinos
overseas, and promoting Philippine global status and commitment to international obligations.

Strategic Objectives:

(1) Promote amity and cooperation with all nations by enhancing multilateral and bilateral relations,
strengthening alliances and strategic partnerships, and developing new security or cooperation
arrangements.
(2) Expand and enhance engagements and cooperation with regional and international organizations,
particularly in areas of interest to the country.
(3) Expand the global presence of the Philippine Foreign Service and key attached agencies and establish
Foreign Service posts in strategic areas.
(4) Expand security, defense, social and economic diplomacy in support of the national vision and the
country's security and development agenda.

THE 12-POINT NATIONAL SECURITY AGENDA

The Government shall endeavor to unify all efforts that will open the door for greater progress and enhance the
well-being of Filipinos. Collective actions shall be promoted to pursue and advance the 12-point National
Security Agenda summarized as follows: human and political security, health security, economic and financial
security, food security, military and border security, socio-cultural security, environment and disaster security,
energy security, maritime security, international security, informational and cyber security, and transportation
and port security.

1. Human and Political Security. Effectively respond to the complexity of both old and new security
threats to the safety, welfare and well-being of Filipinos. It is an important element to protect the core
of human lives and institutions in ways that enhance peace, unity, freedom, democracy and people's
dignity.
2. Health Security. Enhance the quality of life of Filipinos by preventing and mitigating the effects of
infectious diseases as well as interdicting illegal and hazardous agents (e.g. chemical, biological and
radiological contrabands) including illegal drugs that destroy the future generations of Filipinos.
3. Economic and Financial Security. Harness science and technology for global competitiveness, level
the economic playing field, promote multi-resource economy that guarantees the interests of the next
generation, develop infrastructure and tourism attractiveness, and enable our people to innovate and
upgrade their capabilities to protect their livelihood and resources. Pursue the development of financial
institutions which are essential mechanisms for productive enterprises.
4. Food and Water Security. Promote food security in the country by addressing the causes of food
shortage and low agricultural productivity due to natural calamities, obsolete agricultural technology,
and conversion of agricultural lands to subdivisions and other commercial land uses. Safeguard access
to quality water to preserve ecosystems, sustain livelihoods, health, food and nutrition, and achieve
socio-economic development.
5. Military and Border Security. Achieve self-reliance in defense, to assume full responsibility for
security, protect the country from internal and external threats, and strengthen national sovereignty by
modernizing the capabilities of our core security sectors.
6. Socio-Cultural Security. Heighten consciousness and pride on the Filipino heritage and values,
strengthen and preserve them from unintended destructions and violence that threaten the integrity of
our nation and the character of our democracy.
7. Environment and Disaster Security. Guarantee the right to live in green and environment-friendly
conditions, preserve and develop these conditions, and protect the eco-systems from damages brought

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 about by the people's destructive practices on land, air and marine life. In addition, enhance our disaster
preparedness through preventive and mitigating mechanisms from natural and/or human-induced
emergencies that may impact on our environment and the safety of our citizenry.
8. Energy Security. Secure and protect energy supply throughout the country and pursue the sustainment
of existing sources and the development of alternative sources of energy to support the demands of
economic enterprises and households and contribute to the global efforts to address climate change.
9. Maritime and Airspace Security. Ensure safety of life and protection of trade and marine resources
against piracy, poaching, illegal intrusion, terrorism, and human and drug trafficking at sea. In addition,
ensure safe and secure airspace by improving airspace security measures and capabilities in space-
based radar systems and satellites.
10. International Security. Maintain an independent foreign policy in the community of nations, and
ensure a stable and secure international environment for the country and people to thrive as a nation,
politically, economically, socially and ecologically.
11. Informational and Cyber Security. Safeguard our classified action plans and programs, sensitive
government intentions, and state secrets from espionage and other hostile actions to protect and
preserve national security interests. In addition, shield the country from computer-generated / cyber-
attacks that could cause massive crises in our economy, banking and financial institutions,
communications and other critical infrastructures.
12. Transportation and Port Security. Strengthen the integration and modernization of multi-modal
transport systems (i.e. land, sea and air) to connect all the islands of the archipelago and thereby
securing the mobility of people, goods, services and commerce. Further, safeguard both public and
private transportation terminals and ports of the country.

Promotion and attainment of Economic Security

What is Economic Security?

The International Committee of the Red Cross defines economic security as the ability of individuals,
households or communities to cover their essential needs sustainably and with dignity. This can vary according
to an individual's physical needs, the environment and prevailing cultural standards. Food, basic shelter, clothing
and hygiene qualify as essential needs, as does the related expenditure; the essential assets needed to earn a
living, and the costs associated with health care and education also qualify.

In Article 25, the United Nations’ Universal Declaration of Human Rights delineates the right to a reasonable
standard of living and to “security in the event of unemployment, sickness, disability, widowhood, old age or
other lack of livelihood in circumstances beyond their control.”

The International Labor Organization define it as “Economic security is composed of basic social security,
defined by access to basic needs infrastructure pertaining to health, education, dwelling, information, and
social protection, as well as work-related security”

Types of Economic Security

a. Water Security

According to UN-Water, Working definition of Water Security "The capacity of a population to safeguard
sustainable access to adequate quantities of acceptable quality water for sustaining livelihoods, human well-
being, and socio-economic development, for ensuring protection against water-borne pollution and water-
related disasters, and for preserving ecosystems in a climate of peace and political stability."

The ability of a community to access quality water for life sustaining and economic uses. The term is associated
with sustainability and efforts to reduce water pollution while keeping water usage to sustainable levels. It is
also associated with fairness and using water resources in ways that maximize benefits to a community. Water
tends to be a source of political conflict. As such, a core goal of water security is to resolve water issues in a

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peaceful fashion that contributes to the stability of regions. Water is essential to cities, agriculture, mining,
industry and ecosystems. About 70 percent of the Earth's surface is covered in water. However, only 1.2% of the
planet's water is fresh water from surface sources. If the government will not address such problem I will cause
the following consequences: Conflict, Hunger and Malnutrition, Ecological Destruction, Drought, Poverty,
Desertification.

Water supplies in parts of the Philippines are frequently scarce and, as a consequence; supplies are frequently
shut down to preserve capacity. Six to eight months of the year are largely dry: during these months, acute water
shortages occur and people rely on drinking water sources that may not be safe. They may also lack sufficient
water for washing to maintain basic hygiene to prevent infection from disease. Such inadequate and intermittent
water supply in parts of the country present serious consequences to health.

Groundwater currently supplies more than 50 per cent of the potable water supply and 85 per cent of the piped
water supply in the Philippines. Groundwater is strategically and economically important to current and future
water supply and is the principle source of dry season river flows, which in turn are often used for drinking
water.

The situation could worsen as the country is beset by the El Niño phenomenon and climate change that
contribute to increase in temperature, drying up our water sources. The recent water shortage in Metro Manila
also highlights the uncertainty of water access even in the nation’s capital.

Inadequate and intermittent water supply in Metro Manila and in other parts of the country can have serious
health consequences. When water is scarce, people are often forced to rely on drinking water sources that may
not be safe. They may also lack sufficient water for basic hygiene - to wash themselves and their clothes, and to
prevent infection including from foodborne and waterborne diseases. Low or negative water pressure in pipes
due to short supply can attract contaminants that will put water quality at risk when the supply is restored.

In addition, limited supply obliges people to store more water. If not handled properly, this will provide more
opportunity for mosquitoes to breed and consequently increase the cases of mosquito-borne diseases, such as
dengue fever.

b. Food Security

Based on the 1996 World Food Summit, food security is defined when all people, at all times, have physical and
economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an
active and healthy life.

The four main dimensions of food security:

1. Physical availability of food: Food availability addresses the “supply side” of food security and is
determined by the level of food production, stock levels and net trade.
2. Economic and physical access to food: An adequate supply of food at the national or international
level does not in itself guarantee household level food security. Concerns about insufficient food access
have resulted in a greater policy focus on incomes, expenditure, markets and prices in achieving food
security objectives.
3. Food utilization: Utilization is commonly understood as the way the body makes the most of various
nutrients in the food. Sufficient energy and nutrient intake by individuals are the result of good care
and feeding practices, food preparation, diversity of the diet and intra-household distribution of food.
Combined with good biological utilization of food consumed, this determines the nutritional status of
individuals.
4. Stability of the other three dimensions over time: Even if your food intake is adequate today, you
are still considered to be food insecure if you have inadequate access to food on a periodic basis,
risking a deterioration of your nutritional status. Adverse weather conditions, political instability, or
economic factors (unemployment, rising food prices) may have an impact on your food security status.

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For food security objectives to be realized, all four dimensions must be fulfilled simultaneously.

On October 2022 the World Food Programme states that Seven out of ten households are using livelihood
coping strategies to address food insecurity issues. Households, on average, said that they used two coping
strategies in the past month. The most common strategies households adopt are borrowing money for food,
purchasing food on credit, and spending savings.

Households are most concerned

about increasing food prices (1st),
the higher costs of energy and
transportation (2nd), and lack of
livelihood / income (3rd). In the
context of the global crisis and rising
inflation, it is unsurprising that
households are most worried about
being able to cope with increased
food and energy prices. Around
seven out of ten households also said
that their incomes decreased or
stayed the same in the past year,
which means that they are likely
more hard-pressed to afford the
lifestyle that they were used to
before. In line with this, other top
concerns relate to households’ ability
to address daily and essential
expenses.

The poorest regions are generally the most food insecure. Only three regions – BARMM, VIII, and XII – have
food insecurity levels above 20 percent, and these are among the seven poorest in the Philippines. Regions V
and IX are the only regions with high poverty incidence that have a relatively low level of food insecurity.

The proportion of food insecure in BARMM is significantly higher compared to all other regions. BARMM, the
poorest region in the Philippines, is the only region with more than a third of households categorized as food
insecure. Food insecurity in BARMM is 17 times that of the Region III, which is the least food insecure. The
high level of food insecurity in BARMM is especially concerning considering that interviews were conducted
before Tropical Storm Nalgae hit the region. Considering this, we expect food insecurity in the second round to
increase significantly.

Households with heads who only had a

primary/elementary education are more likely to
be food insecure. Food insecurity differs
significantly by level of education attainment.
Since less educated households tend to have
more unstable employment, they also tend to be
more food insecure.

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Households with reduced incomes experience
worse food security outcomes. Two out of ten
households whose incomes decreased are facing
food insecurity. This is about three times the
average of households whose incomes stayed
the same or increased. Households with
decreased incomes are likely struggling more to
cope with the steep increase of inflation, which
reached a fourteen-year high of 7.7 percent in
October.

c. Air Quality

Air quality is the suitability of air for breathing. It is often measured for a city in terms of the levels of ozone,
sulfur oxides, nitrogen oxides, carbon monoxide and particulates in the air. Other air pollutants include volatile
organic compounds, toxic metals such as lead and mercury, radioactive pollutants and persistent organic
pollutants. Poor air quality has both an immediate and long term impact on health. It is also a common quality of
life concern.

A category of weather patterns known as air stagnation can cause air quality to suddenly decline as local or
regional sources of pollution accumulate. This can lead to health emergencies such as the Great London Smog
of 1952 that claimed the lives of an estimated 4,000 to 12,000 people. Air pollution episodes can also occur over
vast regions such as the 1997 Indonesian forest fires episode, 2005 Malaysian haze episode and 2006 Southeast
Asian haze episode.

According to Asia Development Bank, Air pollution is a factor in causing and making worse a range of
diseases. Air pollution has been linked to asthma, cancer, pulmonary disease and heart disease. The International
Agency for Research on Cancer classifies both air pollution, and the particulate matter in outdoor air, as
carcinogenic to humans.

The World Health Organization continues to

confirm that air pollution is an increasingly
important risk factor for non-communicable
diseases. Air pollution is recognized as the
main environmental contributor to the
burden of disease. Air pollution was found
to be the second-largest factor affecting the
risk of noncommunicable diseases at a
global level, after tobacco smoking. Air
pollution is now the largest cause of non-
communicable diseases in many countries
and regions such as in Southeast Asia.
Evidence for the range and severity of these
effects continues to emerge.

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Links between Air Quality and Climate Change

The causes of climate change and air pollution are closely linked. As a result, it is often possible to take steps
which address both environmental challenges. The main sources of both air pollutants and greenhouse gases
(GHGs) include combustion processes (for example, domestic, commercial and industrial heating, electricity
generation; transport; and agriculture). Additionally, some air pollutants also influence global and regional
climates.

d. Energy Security

The International Energy Agency defines energy security as the uninterrupted availability of energy sources at
an affordable price. Energy security has many aspects: long-term energy security mainly deals with timely
investments to supply energy in line with economic developments and environmental needs. On the other hand,
short-term energy security focuses on the ability of the energy system to react promptly to sudden changes in the
supply-demand balance.

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In 2020, 47% of the Philippines’ total primary energy supply came from imported oil and coal. The Philippines’
vulnerability got exposed earlier this year when Indonesia, the single largest coal exporter for the country,
decided to ban its coal export due to domestic shortages. With Indonesia expected to increase its domestic coal
consumption until 2030, it would be risky for the Philippines to maintain the status quo.

Long before this problem occur the Philippine government set out the Renewable Energy Act of 2008, the first
comprehensive legislation on renewable energy in Southeast Asia. The objective of the act is to achieve energy
self-reliance, mitigate climate change, and promote socio-economic development in rural areas. The act
encompasses the development and utilization of renewable energy and the establishment of necessary
infrastructure and mechanisms involving a feed-in tariff system.

Present Energy Grid in the Philippines:

On November 15, 2022, the Philippines’ Department of Energy (DOE) issued Circular No. 2022-11-0034. The
circular amended 2008’s Renewable Energy Act to remove stipulations that required Filipino ownership of
certain renewable energy resources.

With the change, foreign investors can now hold 100 percent equity in the exploration, development, and
utilization of solar, wind, hydro, and ocean or tidal energy resources. The policy change comes as the
Philippines seeks to attract foreign investment to boost its renewable energy sector and meet its long-term
climate targets.

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The circular amends the implementing rules and regulations of the Renewable Energy Act of 2008, formally
called the Republic Act No. 9512, to allow full foreign ownership of renewable energy projects. The Renewable
Energy Act is a piece of legislation that provides a framework for the development, transmission, and utilization
of renewable energy in the Philippines.

The circular amends Section 19 of the implementing rules and regulations by removing the requirement that the
exploration, development, and utilization of solar, wind, hydro, and ocean or tidal energy sources can only be
undertaken by Filipino citizens or entities that are at least 60 percent Filipino-owned. That requirement meant
that foreign investors could only own up to 40 percent equity in such projects. With foreign investors now able
to own 100 percent equity in these projects, those currently operating in a joint venture with a Filipino partner
may also now take a controlling stake in such ventures.

Incentivizing foreign investments in renewables

The Philippine government hopes that allowing foreign ownership of renewable energy projects will increase
the speed of the Philippines’ transition to renewable energy sources.

According to the Philippines’ National Renewable Energy Program (NREP) 2020-2040, the country aims for
renewables to comprise 35 percent of power generation by 2030 and 50 percent by 2040. The government also
seeks to lower the costs of renewable energy projects and make renewables more accessible to the public.

Despite these goals, the Philippines’ transition to renewable energy sources is seeing a downward trend. In
2008, renewable energy made up 34 percent of power generation, but in 2021 it made up just 21 percent.

To encourage the development and use of renewable energy, the Philippine government has released an array of
incentives and supportive policies. For example, the Renewable Energy Act of 2008 contains numerous
incentives for investing in renewable energy, including:

 A seven-year corporate income tax holiday;

 A reduced 10 percent corporate income tax rate upon expiration of the tax holiday;
 Tax exemptions for carbon credits generated from renewable energy sources;
 A 1.5 percent realty tax cap on the original cost of equipment and facilities used to produce renewable
energy; and
 Value-added tax exemptions for the purchase, grid connection, and transmission of electricity
generated from renewable sources.

The Philippines has an estimated 246,000 megawatts (MW) of untapped renewable energy. It has the world’s
third-largest geothermal capacity at 1,900 MW with Indonesia in second and the US on top.

The country’s current mix of renewable energy consists of 4.3 gigawatts (GW) of hydropower, 896 MW from
solar energy, and wind 427 MW. The Philippines adopted an ambitious plan to increase the share of renewable
energy in the power generation mix to 35 percent by 2030 and 50 percent by 2040.

This involves increasing geothermal capacity by 75 percent, expanding hydropower capacity by 160 percent,
increasing wind power capacity to 2,345 MW, and adding an additional 277 MW of biomass power. The
Department of Energy estimates the country needs US$120 billion by 2040, presenting ample opportunities for
foreign investors.

e. Shelter Security

United Nations Centre for Human Settlements the Habitat Agenda states that “adequate shelter means more than
a roof over one’s head. It also means adequate privacy; adequate space; physical accessibility; adequate
security; security of tenure; structural stability and durability; adequate lighting, heating and ventilation;
adequate basic infrastructure, such as water-supply, sanitation and waste-management facilities; suitable
environmental quality and health-related factors; and adequate and accessible location with regard to work and

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basic facilities: all of which should be available at an affordable cost. Adequacy should be determined together
with the people concerned, bearing in mind the prospect for gradual development.”

Urban population has reached 60% of the total population as of 2002. The Philippines has one of the highest
rates of urbanization in the world, with an average annual growth rate of 5.14% between 1990 and 1995. By
2000, population growth rate was 2.36%, with an average household size of 5.0. Median age is 24 years old.
Half the total Philippine population is below 24 years of age.

There were 59.1 million internally displaced people worldwide at the end of 2021. Out of them, 53.2 million
were displaced due to conflict and violence in 59 countries, while 5.9 million were displaced as a result of
disasters.

Humanitarian organisations help affected communities through immediate shelter response to a disaster or in
anticipation of one. They provide technical support and capacity building, financial assistance (including cash
assistance and rental support) as well as building supplies.

Protection of the rights and promotion of the welfare and interest of Filipinos overseas

An Overseas Filipino Worker is someone who works in a foreign country. They often do this to earn more
money so they can provide for their families back home. OFWs also pay taxes to the Philippine government,
and their remittances help to keep the Philippine economy going.

What are OFW Remittances?

Remittance is the process of transferring money by migrant workers to their families or dependents in their
home country. This money is often sent through formal or informal channels, such as wire transfers, money
orders, or traveler’s checks. OFWs often rely on remittances to support their families back home.

There are many reasons why Filipinos want to become OFWs. Some of them are:

1. To provide for their families financially.

2. To give their children a better education.
3. To escape poverty and unemployment.
4. To experience new cultures and lifestyles.
5. To gain skills and training that they can use back home.
6. To build a better life for themselves and their families.
7. To help their families get out of debt.
8. To provide financial support for their parents and grandparents.
9. To pay for medical expenses.
10. To save money for a rainy day.
11. To buy a home or start a business.
12. To give their children a better future.

OFWs are a vital part of the Philippine economy. They contribute to the government through the taxes they pay,
and their remittances help to sustain the country’s economy. In addition, their skills and training benefit the
Philippines by helping to improve its workforce. OFWs also play an important role in the Philippines’ social and
cultural life. They often send money home to help their families, and they share their experiences and
knowledge with others back in the Philippines. OFWs are a valuable asset to the Philippines, and they continue
to make a significant contribution to its economy and society.

The role of Overseas Filipino Workers (OFWs) is essential to the Philippine economy. Pursuing work
opportunities abroad has long been a way for Filipinos to secure a better future for themselves and their families.
In recent years, the number of OFWs has increased dramatically, and they now account for a significant portion
of the country’s GDP. The role of OFWs is therefore crucial, and they continue to make immense sacrifices in
order to support their loved ones.

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The Philippine government provides a number of services and programs to support its citizens who live and
work abroad. These include:

 Department of Labor and Employment (DOLE)

 Department of Migrant Workers (DMW)
 Department of Foreign Affairs (DFA)
 Commission on Filipinos Overseas (CFO)
 Overseas Workers Welfare Administration (OWWA)
 Philippine Overseas Labor Office (POLO)
 Philippine Health Insurance Corporation PhiliHealth)
 Home Development Mutual Fund (Pag-IBIG)
 Social Security System (SSS)
 Philippine Embassies / Philippine Consulates

1. Protecting OFs’ rights and improving their well-being

Enhance government support for repatriated and displaced OFWs: With the unprecedented volume of
repatriates and displaced migrant workers, the government must ensure that all affected OFs, especially OFWs,
are provided adequate assistance to overcome the crisis. The absorptive capacity of OF-serving agencies will be
improved by streamlining agencies’ operations and enhancing their workforce utilization to cater to OFs’ needs
better.

Moreover, the government will explore hiring repatriated OFs as healthcare workers, contact tracers, personnel
for the Build, Build, Build projects, the National ID System (PhilSys), and Community-Based Monitoring
System (CBMS), among others. Along with these initiatives, the government will intensify the skills retooling
and upgrading programs for displaced and repatriated OFWs (especially for telecommuting and e-commerce-
friendly jobs) to keep them competitive whether in the domestic or international labor markets.

Concurrently, the government will facilitate the movement of OFWs, especially essential workers needed by the
global economy, without compromising the needs of the local economy. The government will also explore
options to support the recovery of the recruitment industry.

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Enhance health insurance and social security for OFWs: Given the unprecedented volume of migrants
needing assistance due to the pandemic, the operating funds of migrant-serving agencies will be augmented to
facilitate welfare and health-related (including mental health) programs and emergency response at posts.

Information campaigns on the importance and benefits of health insurance and social security for OFWs and
their families will be intensified. Among others, such information shall be incorporated into orientation seminars
across all stages of migration. With the urgent need for convenient and contactless transactions, e-payment
services for PhilHealth and Social Security System (SSS) will be continuously enhanced and expanded.
Payment schemes for PhilHealth premiums for departing OFWs will be enhanced to enable more flexible
payment terms.

Strengthen bilateral and regional ties: Negotiation of bilateral labor agreements (BLAs) with
migrantreceiving countries will be intensified, especially with those practicing the Kafala system. BLAs with
stringent welfare and protection provisions, social security agreements, and emergency response protocols will
be pursued, while the inclusion of health insurance in BLAs and in the standard employment contract will be
explored. BLAs will give particular attention to vulnerable groups, such as household service workers.
Programmed bilateral labor agreements for review in 2020 include those with Morocco, Russia, Thailand,
Seychelles, Micronesia, Suriname, Romania, Saudi Arabia, Trinidad and Tobago, Portugal, Canada, Taiwan,
Solomon Islands, and Switzerland, as well as Memoranda of Agreement / Understanding on labor cooperation
with Seychelles, Micronesia, and Turkey. The joint conduct of postarrival orientation seminar (PAOS) will be
explored in bilateral labor negotiations. Further, the government will continue its negotiations to create
pathways to regularization for qualified but undocumented OFs.

The Social Security Act of 2018 (RA 11199) also mandates the negotiation of BLAs with host countries which
do not cover OFWs under their social security schemes, particularly for pension entitlement. In line with RA
11199, the requirement for foreign employers of land-based OFWs to pay SSS contributions, similar to foreign
principals of sea-based OFWs, and portability of social security entitlements and earned benefits will be
included in the bilateral labor agreements and their implementing administrative arrangements.

The Kafala system (sponsorship system)

Known in the international community today outlines the relationship between foreign workers and
their local sponsor, who is their employer—which in concept does not differ substantially from
worldwide immigration policies. A nation using the Kafala system provides local employers with a
sponsorship permit to attract non-citizen employees, provided that the employer will cover all travel,
housing, and transportation expenses. This system is implemented among all Gulf Cooperation
Countries—Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, United Arab Emirates—as well as Jordan
and Lebanon. Although this is a system related to labor law, its regulation authority often falls under
interior ministries for the reasons explained henceforth. The Kafala system gives the employer the
responsibility of upholding foreign workers’ legal status and visa, restricting many aspects of an
employee’s mobility. This creates a disparity in the power dynamic between an employee and the
employer, where the employer holds the power, and an employee is in a perpetual state of vulnerability.
Holding the power can take the form of confiscating and withholding an employee’s passport and/or
documentation; refusing to transfer their contracts to another employer; ending the contract, which
results in the immediate deportation of the employee if any issue arises between the parties; and having
an illegal status if an employer doesn’t grant an exit visa after the contract is terminated. The clear
imbalance in the employment relationship thus attracts human rights, refugee, and labor activists to
negotiate and reform the Kafala system, a lofty pursuit that must account for multifaceted areas of
economics and social structure.

The Kafala system started in Gulf Cooperation Countries at a time when they had rich natural resources
and not many working hands. The intention was to enable foreign nationals to help in building some
needed project infrastructure for the oil and pearl industries and to train nationals in the work, with the
assumption that once the project was completed, the foreign workers would return home. However,

24 | P a g e
 with the small populations and sudden wealth that these countries accumulated, the need for foreign
workers continued—hence the prolongation of the Kafala system, in addition to granting refugees legal
status by including them under the Kafala system in some countries, like Saudi Arabia. Many of the
Gulf countries that practice the Kafala system have undergone revolutionary reforms in the past year—
Saudi Arabia being one of the leaders in these reforms. But the reforms exclude domestic workers, who
are the most vulnerable in this situation; the only countries that protect them under the same regulations
are Jordan and, in some cases, Bahrain. Nevertheless, after the vast changes in Kafala regulations,
employees are entitled to mobility: they are permitted to change or quit their jobs without permission
after one contract year in Bahrain, Jordan, Kuwait, Qatar, and Saudi Arabia. The same courtesy is still
denied in Oman, Lebanon, and UAE, however. Additionally, leaving the country without permission is
allowed in all countries, yet the most important aspect—freedom to negotiate the contract—is restricted
in both Jordan and UAE, since there is a standard contract for all workers.

Kafala labor as practiced in the modern day is in direct conflict with not only Islamic ethics, but also
international responsiveness regarding labor rights. The world keeps moving toward an international
human unity in which an individual’s holistic welfare must be awarded priority. Although Kafala
reforms are still lacking in Middle Eastern countries, I am hopeful that a more rounded approach is
proceeding in the region.

Facilitate effective service delivery to OFs: Deploying mobile government representative offices overseas will
improve the provision of basic services to OFs. To help empower the OFs onsite, scholarships, training
assistance, and competency assessments shall be provided. The Technical Education and Skills Development
Authority’s (TESDA) Onsite Assessment program and the Professional Regulation Commission’s (PRC)
Special Professional Licensure Examinations will be expanded. Moreover, government transactions that cater to
OFs will be simplified. This includes the full roll out of online transactions at the Philippine Overseas
Employment Administration (POEA). Further, the government will provide online platforms for psychosocial
intervention and psychological first aid to bring together trained professionals to address the psychological
needs of OFs. As an organized and well-defined database on international migration would help facilitate
effective service delivery, expediting the operationalization of the international migration statistics framework is
necessary. To ensure comparability, the data collection, processing, and methodologies of migrant-serving
agencies will be aligned with the framework. This will also contribute to the operationalization of the Shared
Government Information System on Migration.

Provide sufficient assistance-to-nationals (ATN) services: Additional plantilla positions and Foreign Service
Posts especially in high-risk countries and in countries with high levels of undocumented OFs will be
prioritized. In addition, agencies’ capacity to provide assistance to undocumented Filipino migrants who wish to
be repatriated will be strengthened. Proper documentation before the deployment of OFWs will strengthen
protection and lessen the risk of OFWs becoming undocumented.

Further, there is a need to enhance the capability of migrant-serving agencies and consular officers on crisis
preparedness and contingency planning. All Philippine Foreign Service Posts will be enjoined to regularly
update their respective contingency plans. The One Country Team Approach, where overseas representatives of
various government agencies act together under the leadership of the Head of Post, will be strictly observed. The
Overseas Preparedness Response Team (OPRT) will ensure that coordination with relevant agencies is sustained
and rapid response and relief measures are implemented efficiently.

Enhance education of OFs on IMD (International Migration and Development): The pre-employment, pre-
departure, and post-arrival orientation seminars will be improved in terms of conduct and content. Enriching the
orientation seminar modules to include cultural diversity, benefits and costs of migration, economic and
financial literacy, and overseas voting and reintegration would better prepare OFs throughout the migration
cycle. Pre-migration orientation seminars that include not only the prospective migrants but also the families left
behind will also be implemented. Content will be standardized across agencies conducting the orientation
seminars. Further, local governments will be integrated as service providers in the conduct of pre-migration
education training.

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Strengthen measures to protect OFs against human trafficking and exploitation: Trafficking and illegal
recruitment schemes will be abated with effective use of technology-enabled platforms for information
dissemination. There is also a need to capacitate more LGUs to invest in anti-trafficking interventions. This
includes seminars for duty bearers and stakeholders at the grassroots level on how, when, and where to report
violations and other related laws. The Inter-Agency Council Against Trafficking’s referral and feedback system
among duty bearers and stakeholders will be improved. Service directories will be regularly updated and
effective referral pathways for essential services (including healthcare, policing and justice services,
psychosocial support, reporting and complaints mechanisms, and other necessary support) will be made
available and accessible to all OFs. Moreover, coordination among local and international law enforcement
agencies will be strengthened.

Improve mechanisms to monitor the socioeconomic and political conditions of OFs: Existing mechanisms
to monitor the conditions of OFs, such as ATN Mappings and connections with Filipino communities will be
complemented by mechanisms to facilitate regular gatherings to enable embassies to check the status of OFs,
particularly OFWs, on a regular basis. The Overseas Preparedness Response Team (OPRT) will also conduct
threat and environmental scanning regularly.

Reduce pre-departure costs: Technology-enabled platforms such as online payment systems will be enhanced
to address the issue of requiring payments in bulk. The burden of paying for placement and training fees will be
removed from the OFW in observance of the “employer pays principle” in the recruitment process. To ensure
that OFWs are not charged more than the regulations allow, recruitment agencies will be strictly monitored.

2. Facilitating OFs’ participation in the country’s development and reintegration in Philippine

society

Strengthen financial inclusion initiatives for OFs and their families: Faster, safer, and cheaper transfer of
remittances will be promoted by advocating the use of technology-based banking such as internet banking and
mobile payment applications. To complement the reduction in costs, access to information on financial services
must be enhanced through a multi-agency effort to create a centralized portal related to various financial
transactions. In addition, economic and financial literacy programs catering specifically to OFs and their
families will continue to be expanded while highlighting financial planning and management. This will include
the Pinansyal na Talino at Kaalaman (PiTaKa) Program of the Bangko Sentral ng Pilipinas (BSP) and Overseas
Workers Welfare Administration (OWWA), information on existing government-managed schemes, such as the
SSS provident fund program, and the recently-launched digital services of the Overseas Filipino Bank among
others. Furthermore, access to financial products and services will be supported by the full operationalization of
the PhilSys which will address issues on lack of identity documents for opening bank accounts and verifying
financial transactions.

Ensure successful socioeconomic reintegration of OFs and their families. The government will facilitate the
smooth reintegration of Filipino migrants into Philippine society. The Comprehensive OFW Reintegration
Program will be implemented fully and continuously to realize its objectives:

a. Incorporation of a gender-responsive reintegration preparedness program in all phases of migration,

involving both OFWs and their families left behind;
b. Initiation of reintegration pathways for different OFW segments, particularly domestic workers, less-
skilled workers, sea-based workers, and professionals; and
c. Convergence of initiatives and harmonization of reintegration programs and services of all government
agencies and organizations to ensure a comprehensive approach to reintegration.

The budget for the loan guarantee fund of the Overseas Workers Welfare Administration (OWWA) for the
Enterprise Development and Loan Program (EDLP), which is administered by the agency in partnership with
the Land Bank of the Philippines and the Development Bank of the Philippines, will be increased. All financial
and livelihood assistance initiatives, including grants and loans, will be promoted to reach a greater number of
returning Filipinos. For those seeking local employment, the government will strengthen employment

26 | P a g e
facilitation services through proactive job matching, competency assessment, and certification. The convergence
of DOLE’s enhanced National Skills Registration Program and the National Reintegration Center for OFWs’
OFW Skills Registry will facilitate matching of employers and employees based on the former’s needs and the
latter’s background and skills.

Tap the knowledge and other resources of OFs: Mechanisms through which overseas-based experts are able
to share their knowledge and specializations with the academe, industry, and government will be strengthened.
Likewise, institutional linkages will be fostered through Filipino professionals and experts abroad to induce
more collaboration in research and development and capacity-building activities. The potential of OF
remittances will be effectively harnessed and channelled into productive investments, through localization of the
BaLinkBayan Portal and replication of the Overseas Filipino Remittances for Development (OFReD) project.

3. Strengthening engagement of OFs, families, and other stakeholders in governance

Mainstream migration into local development planning: The government will facilitate the inclusion of
programs/projects for repatriated OFWs in the Rehabilitation and Recovery Plans of local government units
(LGUs). Committees, subcommittees, or councils on IMD will be created in key regions to provide a proper
venue to discuss migration issues at the local level. It is necessary to include migrant representatives in these
committees to ensure that migrants’ concerns are addressed and to harness their full potential in contributing to
local development.

Increase overseas voter turnout: More strategic locations of overseas registration centers abroad will be
explored. Massive information campaigns, especially through social media, to encourage OFs to register and
vote will be also pursued.

4. Protecting the rights and improving the well-being of foreign nationals in the country

Establish clear policy direction as a migrant-receiving country: The swift passage of amendments to the
Philippine Immigration Act to enhance the control and regulation of the entry of foreign citizens into the
Philippines is a crucial step towards improving immigration policy and management. While work permit
issuance by different agencies was harmonized through Joint Memorandum Circular No. 001, s. 2019, the
government will look into the eventual transition to a single provider of all work permits for foreign nationals.
Moreover, in accordance with the Global Compact for Safe, Orderly, and Regular Migration (GCM), the
security and safety of foreign nationals in the Philippines will be ensured by providing them with basic services,
protecting them against discrimination, and upholding due process of law in cases of litigation. Foremost, the
government will uphold international treaties on the rights of migrants and guarantee that foreign nationals in
the Philippines are not denied basic services on the basis of their status as migrants. The legal framework for the
protection of asylum seekers, refugees, and stateless persons, including children, will be developed, including
institutionalization of their access to social services.

27 | P a g e
Philippine Foreign Policy and Relations with China

It was under President Marcos in 1967 that the Philippine government began exploring the idea of opening up to
the socialist countries, ostensibly for considerations of expanding trade partners to reduce dependence on
traditional markets, but also because of security concerns. In January 1969, Marcos declared in his State of the
Nation address: "We in Asia must strive toward a modus vivendi with Red China. I reiterate this need, which is
becoming more urgent each day. Before long, Communist China will have increased its striking power a
thousand fold with a sophisticated delivery system for its nuclear weapons. We must prepare for that day. We
must prepare to co-exist peaceably with Communist China. "

By 1971, Beijing had re-assumed its seat as a Permanent Member of the United Nations Security Council. The
Philippines took a two-China position on this matter of China's return to the United Nations-i.e. that admission
of the PRC should not jeopardize the position of the ROC. Soon, Beijing became one of only five avowed
nuclear powers. It was also the world's largest country in terms of population.

The opening of Manila-Beijing diplomatic relations began with a series of secret visits by Benjamin "Kokoy"
Romualdez, brother of the First Lady Imelda Marcos, from January 1972. Imelda Marcos herself went on a visit
in September 1974, one highlight of which was her kissing a startled Mao Zedong on the cheek, dealing a
culture shock to the Chinese. The 1973 oil crisis gave added impetus to Manila's desire to open ties, as China
was an oil producer.

The Ramos administration came into power in 1992 amidst drastic changes in . the strategic situation of the
Philippines and of the region. The end of the Cold War and the collapse of communism in Eastern Europe led to
the conclusion that superpower conflict was no longer the potential source of world war or nuclear holocaust
that it had earlier been made out to be. It was hoped that long-term peace and security would prevail. From the
Philippine perspective, this justifies its closure of American bases that had put an end to a century of so-called
"special relations" between Manila and Washington.

China's rise as an economic power coincided with changes in China's strategic doctrine, which began to
emphasize the development of a capability to promote territorial and maritime resource concerns. Nationalism in
China was on the rise. Not only was China richer, more stable and more confident than it had ever been, it also
became more assertive in its relations with other states, particularly on the issue of reclaiming territories
perceived to have been lost during weaker periods in its history. China had, among other actions, been
expanding naval activities in the South China Sea, including the occupation in 1995 of a small reef (Mischief
Reef) within the Kalayaan islands (Spratlys ), an area claimed by the Philippines.

For the Philippines, China's occupation of Mischief Reef was perceived as the most serious external challenge to
the country's sovereignty and security since the tiff with Malaysia over Sabah in the 1960s. Such perceptions
could be understood best in the context of Manila's heightened sense of insecurity and vulnerability. After all,
there was an epidemic of arms build-up going on in some ASEAN members and China, while the Philippine
military was in an even sorrier state than before, following termination of US military aid. Moreover, even
though the Mutual Defense Treaty continued to remain in effect, US security commitments to the Philippines
remained ambiguous.

Since Mischief Reef, tensions between Manila and Beijing in the Kalayaan or Spratly’s area have substantially
increased, particularly from Philippine official reactions to fishing operations by Chinese in the Philippines'
exclusive economic zone and the presence of PRC naval vessels in the Kalayaan area. In an attempt to prevent
an escalation of conflict, the two sides agreed in 1995 on a bilateral code of conduct that would bind them to a
peaceful resolution of the problem. The agreement said that the dispute shall not be allowed to affect the normal
development of relations, and should be settled in a peaceful and friendly manner, through consultations and on
the basis of equality and mutual respect. It also committed both sides to undertake confidence- building
measures, and to pursue specific forms of cooperation until the disputes are eventually resolved. It expressed a
desire to cooperate for the protection and conservation of maritime resources, and stated that the dispute should
be settled by countries directly concerned without prejudice to freedom of navigation in the South China Sea.

28 | P a g e
Furthermore, Manila and Beijing agreed to settle the dispute in accordance with the United Nations Convention
on the Law of the Sea (UNCLOS) and recognized principles of international law.

In March 1996, China and the Philippines further agreed to establish a "bilateral consultative mechanism to
explore ways of cooperation in the South China Sea." Specifically, three working groups were set up, to look
into cooperation in fisheries, marine environment protection and confidence-building measures. Manila and
Beijing, during the recent state visit of President Estrada, reiterated the commitment to pursue dialogue on the
issue, but it remains to be seen whether the two sides can ultimately come up with substantive cooperation
arrangements towards the long-term settlement of the disputes.

In its diplomacy with China concerning the disputed islands, the Philippines has come to rely considerably on
the role of ASEAN. Apart from the Philippines, China and Taiwan, fellow-ASEAN members Vietnam,
Malaysia and Brunei also have claims to all or parts of the Spratly islands. Multilateral talks between the
ASEAN and China have been held since 1996, in which the disputes have also been discussed. At present, the
ASEAN and China are negotiating a regional code of conduct that would elaborate norms of behavior by the
claimant states in the disputed area, with the end in view of conflict prevention and confidence-building.

In contrast to China's reaction to the establishment of the A SEAN in 1967, it has now come to appreciate the
strategic value of the ASEAN as a potential ally in the emerging balance of power in Asia. Among China's
greatest concerns in the post-Cold War period is the new role being played by the United States as the world's
sole superpower. Not only is it the world's largest economy, it is also a state possessing state-of-the-art military
technology which, in China's calculus, may in the future be directed against it. The way to counter the
preponderance of US power, China appeared to argue, was to create and strengthen a multipolar world order.

China sees the ASEAN as potentially evolving into one "pole" in its vision of a multipolar world order. The
ASEAN's fundamental objective of keeping Southeast Asia a peaceful and neutral region, free from dominance
by any regional or outside power is something which China says it shares. The Philippines itself, particularly
since the Ramos government, has looked very much to the A SEAN as a pillar of its foreign policy. In this
context, ASEANChina relations are bound to become very important dimension of Philippine-China relations in
the future.

In the wake of China's actions in the Kalayaan Islands, perceptions of a China threat soon paved the way for the
Senate's ratification of a new "Visiting Forces Agreement" or VFA, that now allows American troops back into
the Philippines for training and other activities in the implementation of the 1951 RP-US Mutual Defense
Treaty. In his speech concurring with the VFA, Senate President Pro-Tempore Blas Ople, chairman of the
Senate Foreign Affairs Committee argued that:

" ... .In our own part of the world, East Asia, the Chinese colossus has awakened .... There is every indication ...
that this giant has not only awakened but is belching forth a stream of fire- in the direction of the Philippines ....

.. Today it is MischiefReef and the Scarborough Shoal offZambales. Tomorrow there might be more tempting
prizes, including Pal a wan and the Philippines itself.

... The one factor that restrains China's military hawks is the realization that the Philippines is bound to the
United States by a Mutual Defense Treaty”

For the Philippines, a major foreign policy question is how it can uphold national sovereignty and security, as
well as pursue its quest for an independent foreign policy, in the face of lack of resources and pressures from
competing national interests of neighboring countries, including China. Moreover, Philippine foreign policy,
like that of other small powers, tends to be pulled in different directions as a consequence of shifting relations
among bigger powers.

This growth of Chinese power, fueled by enhanced nationalism, is again bringing it into potential conflict with
the Philippines, in light of competing claims between the Philippines and China over certain islands and waters
in the South China Sea. However, despite the acrimony that has come to characterize exchanges between the

29 | P a g e
two sides regarding the disputed territories, both sides continue to persist in a peaceful settlement of the
disputes. They have pledged to improve comprehensive cooperation, especially in matters pertaining to
economic development, through various bilateral and multilateral mechanisms.

China has pursued a foreign policy characterized by its desire for regional and global influence. It has sought to
assert its territorial claims in the South China Sea, leading to tensions with neighboring countries, including the
Philippines. China's foreign policy also includes its Belt and Road Initiative (BRI), which aims to enhance
economic connectivity and infrastructure development across Asia and beyond. China has also expanded its
diplomatic and economic engagement with countries in Africa, Latin America, and Europe to increase its global
influence.

Tensions in Foreign Policy: 2019 Reed Bank Incident

The Reed Bank incident occurred from 9 to 22 June as a result of a collision between an anchored Filipino
fishing boat, the F/B Gem-Ver, and a suspected Chinese militia vessel, the Yuemaobinyu 42212. The accident
took place in Reed Bank within the Philippines’ EEZ and China’s contested nine-dash line in the South China
Sea. The Philippine vessel that sank left its 22 crew members abandoned and subsequently rescued by a
Vietnamese fishing vessel. In the handling of the crisis, tensions within the Duterte administration surfaced
across two main areas, where parties involved were unable to reach a consensus on, firstly, the nature of the
incident and, secondly, the Philippines’ position on the joint investigation proposed by China.

The nature of the incident was disputed by the Duterte, the DFA and the Philippine defense establishment.
While the latter two saw the incident as a deliberate act, Duterte sought to trivialise the allision. Shortly after the
incident occurred, Duterte immediately laid low to avoid a diplomatic spat with Beijing. Like China, who
assured that it was counterproductive to make political interpretations out of the ‘accidental collision’ which
would affect the China-Philippines friendship (Chinese Embassy Manila, 2019), he likened the ‘little maritime
accident’ to a road crash that should not be interpreted as ‘a confrontation of armed men and machine or ships’
He further denounced the incident’s impact on Philippine sovereignty and China-Philippine bilateral relations,
continued to allow the Chinese to fish in the Philippines’ EEZ and insisted that the Philippine Navy not start a
war with China over the incident.

China’s Foreign Investment Opportunities in The Philippines

The Philippines has been a consistent recipient of Chinese investment for some time, and its geostrategic
position – Hong Kong is just an hour’s flight away – has made it a hub for many red-chip Chinese investors.
This, coupled with extensive infrastructure connectivity plans, better uniting the country, and the development
of numerous free trade zones is seeing the Philippines take on a more dynamic role in the region than in the past.
Savvy Chinese investors have also been able to score big with initial investments reaping significant rewards at
subsequent IPO.

Both light manufacturing zones and a nationwide digitization program are seeing Chinese investments made in
conjunction with the China-ASEAN Free Trade Agreement and the recent Regional Comprehensive Economic
Partnership (RCEP) agreement – the Philippines is a member of both ASEAN and RCEP and this shows how
both China and the Philippines have been combining development with free trade and developing the countries
manufacturing to allow it to become a China alternative.

China is the largest trading partner of the Philippines and bilateral investment cooperation is booming with
major projects being implemented smoothly. The Philippines and China bilateral trade reached close to
US$82.05 billion in 2021 and has grown at an average of 17 percent over the past five years.

Between 2016 and 2022, Philippines’ Central Bank data showed that firms from China and Hong Kong invested
US$1.7 billion in the Philippines, trailing only Japan at US$2.8 billion but ahead of USA (US$1.3 billion),
South Korea (US$1.1 billion), and Taiwan (US$580 million).

30 | P a g e
Infrastructure

In 2016, President Xi and China promised then Philippine President Rodrigo Duterte and the Philippines US$24
billion in investment, credit and loan pledges. As shown below, many of these projects have been delayed for
numerous reasons but have recently picked up pace.

In April 2022, Duterte inaugurated the China-funded Binondo-Intramuros Bridge, the second of two bridges
funded through a Chinese grant. The Binondo-Intramuros Bridge is part of a US$96 million Chinese grant
agreed upon during Duterte’s visit to China in 2017. The other bridge is Estrella-Pantaleon, which was
completed in July 2021. Both bridges were initially planned to be constructed by 2020, but delayed due to the
pandemic.

Construction of the Bucana Bridge – which will complete the ongoing coastal road project in Davao City, and is
expected to finally start in 2022 after more than a year of delay. The 540-meter, four-lane bridge, which will
cost US$56 million, and was initially scheduled for construction from 2020 to 2023; the new target completion
will be by 2025. The Bucana Bridge will be funded through a China government grant signed in December
2020. The 3.98 km Davao River Bridge is located in the Bucana District at the mouth of the Davao River,
connecting the coastal roads. This toll free two-way four-lane bridge can serve around 25,000 vehicles/day
between Davao City and Samal crossing over Pakiputan Strait.

Davao Coastal Road – The Davao City Coastal Bypass Road Project stretches from the Davao-Cotabato
highway junction to R. Castillo in Davao City’s central area. In February 2022, the first 2.8 kms of the US$610
million 17-km road was opened; with the remainder set for completion in December 2023.

Mindanao Railway – With a cost of US$1.48 billion, the Mindanao Railway Phase 1 is among the major
infrastructure projects funded by official development assistance (ODA) loans from the Chinese government.
Once fully operational, travel time between Tagum City to Digos City will be reduced to about an hour from the
current 3.5 hours. The line will also have eight stations: Tagum, Carmen, Panabo, Mudiang, Davao, Toril, Santa
Cruz and Digos.

In September 2021, the Transportation Undersecretary for Railways announced that the construction of the first
phase, involves building a 100-kilometer train line connecting Tagum, Davao and Digos, will begin in late
2022.

Makati Subway – In 2020, Infradev Holdings Inc. (Philippines) awarded a US$1.21-billion EPC contract for the
first eight-km phase of the Makati subway project to China Construction Second Engineering Bureau Co. Ltd.
(CCSEB). The contract covers civil works alongside mechanical, electrical and plumbing (MEP) works. The
civil works alone were valued at US$978.6 million while the MEP portion was priced at US$234.16 million.
The proposed Makati subway system, the Philippines first ever PPP project (no cost to the city) is expected to be
completed by 2025.

PNR South-Long Haul Project – In January 2022, China Railway Group signed with the Government the
commercial contract for the US$2.8 billion PNR South Long-Haul Project DB railway for the design and
construction of a 380 km railway in the Bicol Region. It will shorten the travel time from 12 hours currently to
four hours, and will serve up to 14.6 million passengers per year (after it enters operations). The entire PNR
Bicol project consists of a 560km long-haul rail line connecting Metro Manila to provinces in Southern Luzon.

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