Contemporary

Challenges in P.A.

“FOSTER SOCIAL EQUITY”

ERMIN R. DELIM
ANGELITO B. MANANSALA
JOHN ROLAND C. YADAO
GARETH S. CANULO
What is Social Equity?

• It is a concept concerned with the fair and equitable

provision, implementation, and impact of services,
programs, and policies.
• It is the principle that each member of society has a
right to be given fair, just, and equitable treatment by
the political system in terms of public policies and
services.
• It addresses the needs of the people on a need-for-
need basis.
Legal Basis:

Section 1, Article 12 of the Philippine Constitution:

“The goals of the national economy are a more

equitable distribution of opportunities, income and
wealth; a sustained and increase in the amount of goods
and services produced by the nation for the benefit of
the people; and an expanding productivity as the key to
raising the quality of life for all, especially the
underprivileged.”
The Social Reform Agenda (SRA)
• Formally launched in September 1994 by the Ramos
administration and signed into law via R.A. 8425 known as
the Social Reform and Poverty Alleviation Act effective
June 30, 1998.
• Shall address the fight against poverty through multi-
dimensional and cross-sectoral approach which recognizes
and respects core values, cultural integrity, and, spiritual
diversity of target sectors and communities,
• Shall promote ecological balance in the different
ecosystems
• Shall take into account the principle and interrelationship
of population and development in the planning and
implementation of social reform programs
The Pantawid Pamilyang Pilipino Program (4Ps)

• Flagship program of the Aquino administration in 2007

• Provide conditional cash grants to the poorest of the poor
• It is patterned after the conditional cash transfer schemes in Latin
American and African countries, which have lifted millions of
people around the world from poverty
• Has dual objectives as the flagship poverty alleviation program:
•
social assistance and social development
S
In uplifting the life of every Filipino, the development
of these sectors is vital to enhanced productivity and
social equity:

• Agriculture, Environment and Climate Change

• Human Capital Development
• Infrastructure Development
• Industry and Services
• Financial Sector Development
• Fiscal Policy and Public Financial Management
• Good Governance
Agricultural, Environment and Climate Change

• Depends largely on natural resources such as land, water,

pasture, fish, forests and biodiversity
• Productive capacity of ecosystems to sustain the current
and future levels of agricultural growth
• It is essential to both rural and national development,
especially in reducing poverty and easing food insecurity.
• The impact of climate change such as drought and flooding
also impair production
• Agricultural productivity growth can be a significant
instrument for reducing poverty in developing countries
(Dethier, 2011)
Agricultural, Environment and Climate Change
Issues and Challenges:

• Farmers high vulnerability to natural disasters

• Weak delivery of agricultural extension services
• Limited access to rural credit
• Multiple and complex land administration system and lack
of comprehensive land use policy
• Depleted forest and marine pollution
• Poor management of hazardous, radioactive and electronic
waste
• Adverse impact of climate change
• Degradation of marine and aquatic resources
Agricultural, Environment and Climate Change
Government Actions:

• RA 10000 – Agri-Agra Reform Credit Act

• RA 11057 – Personal Property Security Act
• RA 11321 – Sagip Saka Act
• RA 9700 – Comprehensive Agrarian Reform Program
(CARP)
Extension with Reforms
• RA 9729 – Climate Change Act of 2009
• RA 10692 – The PAGASA Modernization Act
Human Capital Development

• Major driver of productivity growth.

• Maximizing productivity in labor will help increase the
country’s potential growth which could translate to higher
actual growth and economic well-being
• Human capital includes the knowledge, skills,
competencies and attributes of individuals
• Health and education are core components of human
capital development and central to livelihood and the
economy
Human Capital Development
Issues and Challenges:

Education
• Persistent issues on student-teacher and classroom-teacher
ratios and quality of classrooms and facilities remain
• Measures that provide mentors with technology-based
teaching tools and learning materials for students remain
inadequate
• 5 out of 10 families in 2017 were deprived of basic
education (PSA, 2018)
• Low budget allocation for alternative learning system
• High incidence of out-of-school youth
Human Capital Development
Issues and Challenges:

Health
• In spite the significant investments and advances made in
health in recent years, not everyone benefited, especially the
most vulnerable groups
• There are still geographically isolated and disadvantaged
areas (GIDAs) with inadequate number of health workers
• Additional financial resources are required to provide the
sufficient number of Human Resources for Health (HRH)
and retain them in service to adequately respond to
community needs
• Inadequate health facilities that impede quality health care
Human Capital Development
Issues and Challenges:

Labor
• High employment in low productivity sectors
• Some employed in low paying jobs belonging to the
elementary occupation (unskilled workers) in the informal
sector (PSA, 2019)
• Low compliance of local government units to the Magna
Carta for disabled persons
Agricultural, Environment and Climate Change
Government Actions:

Education
• RA 10618 – Establishing Rural Farm High Schools
• RA 10650 – Open Distance Learning Act
• RA 10665 – Open High School System Act
• RA 10931 – Universal Access to Quality Tertiary Education
Act
• RA 10931 – Enhanced Basic Education Act of 2013
• RA 10647 – Ladderized Education
Agricultural, Environment and Climate Change
Government Actions:

Health
• RA 10606 – amending RA 7875, as amended – Expanding
the National Health Insurance
• RA 11223 – Universal Health Care
• RA 10152 – Providing for the Mandatory Basic
Immunization Services for Infants and Children
• RA 10354 – Establishing National Policy on Reproductive
Health, Responsible Parenthood and Population
Development
• RA 11036 – Establishing a National Mental Health Policy
Agricultural, Environment and Climate Change
Government Actions:

Labor and Employment

• RA 9509 – Establishing Livelihood and Skills Training
Centers in Fourth, Fifth, and Sixth Class Municipalities
• RA 10917 – amending RA 9509 – Strengthening and
Expanding the Coverage of the Special Program for
Employment of Students
• RA 11199 – Social Security Act of 2018
Infrastructure Development

• Transport, power, telecommunications, water supply and

sanitations and others
• Better-connected geographic areas have generally
prosperous, while those rural and remote communities with
limited access to market often end up in to spatial poverty
traps
• Well-developed infrastructure lowers transportation and
transaction costs
• Facilitate the movement of goods and people, and the
transfer of information within the country and across
borders
Infrastructure Development
Issues and Challenges:

• Weak performance in global infrastructure competitiveness

• Microcosm of the dismal state of infrastructure in the
country is the traffic situation in Metro Manila
• Congestions deemed to be at crisis proportions are also felt
in other major transportation facilities
• Huge regional disparity in infrastructure development
Infrastructure Development
Government Actions:

• RA 7718 – Build-Operate-Transfer Law of the Philippines

• RA 10752 – Right-of-Way (ROW) Act
• RA 9136 – Electric Power Industry Reform Act
• RA 9513 – Renewable Energy Act
• RA 10844 – Department of Information and
Communication Technology Act
Industry and Services

• A key enabler of socioeconomic progress

• Manufacturing unleashes the productive capacity of labor
and capital in the form of efficiency grains with the use of
technology and other advanced techniques and processes in
production
• Allows a country’s manufacturing sector to further deepen
its linkage to global supply chains, increase demand for its
products, and ultimately raise employment and income
levels
• Service sector development can also lift productivity
throughout the economy.
Industry and Services
Issues and Challenges:

• Lack of export-orientation
• Low level of foreign direct investments
• Absence of intense firm-level competition
• Lack of culture innovation
Industry and Services
Government Actions:

• RA 10667 – Philippine Competition Act

• RA 11032 – Ease of Doing Business and Efficient
Government Service Delivery Act
• RA 10644 – Go Negosyo Act
• RA 10641 – Allowing Full Entry of Foreign Banks
• RA 10372 – Intellectual Property Code of the Philippines
• RA 11293 – Philippine Innovation Act
• RA 10142 – Financial Rehabilitation and Insolvency Act
Financial Sector Development

• Promotes productivity and reduces inequality by pooling

and mobilizing savings to finance investments
• Facilitating entrepreneurship
• Boosts economic activities to stimulate demand for labor,
increase earnings and improve access to economic
opportunities
• The Philippine Development Plan (PDP) 2017-2022
specifically identified financial services as one of the nine
priority sectors that have the greatest potential in
contributing to achieving the goals of Ambisyon 2040
Financial Sector Development
Issues and Challenges:

• Low provision on private credit

• Concentration of bank branches in urban areas
• Slow capital market development
• Weak financial inclusion to include among others the lack
of formal financial account and low usage of digital
financial services
• Limited access to credit
Financial Sector Development
Government Actions:

• RA 10693 – Microfinance NGOs Act

• RA 11057 – Personal Property Security Act
• RA 10744 – Credit Surety Fund Act of 2014
• RA 10641 – Foreign Banks Liberation Act Amendments
• RA 10574 – Rural Bank Act Amendments
Fiscal Policy and Public Financial Management

• Fiscal policy is the use of government spending and

revenue to influence economy and to shape the
development outcomes.
• Key instrument for: maintaining a stable economy, properly
allocating resources, and ensuring a fair distribution of
income in society.
• Public Financial Management is the implementation
mechanism of fiscal policy whose broad scope include the
laws, systems, and other institutions used by the
government to efficiently, effectively and transparently
generate and spend resources
Fiscal Policy and Public Financial Management
Issues and Challenges:

• Budget constraints
• Complicated and/or fragmented tax systems and unequal tax
treatment
• Low public investments
• Inefficient budget utilization
• Inefficient public procurement
• Weaknesses in the PFM framework
• Weakness in local government finance
Fiscal Policy and Public Financial Management
Government Actions:

• To improve tax administration and mobilize public finances,

several tax laws have been passed, to include among others
the sin tax laws, reformed value added tax and even run
after tax evaders. For tax efficiency, the TRAIN and
CREATE law was also enacted.
• RA 9184 – Government Procurement Reform Act and its
Revised IRR to address inefficiency on procurement and
budget utilization
• The Seal of Good Local Government Act of 2019
encourages LGUs to improve local government practices
Good Governance

• Critical to the promotion of productivity and equity

because it facilitates the formulation of sound policies and
the efficient provision of public goods (education, health
and infrastructure)
• Pertains to the traditions and institutions by which authority
in a country is exercise.
• It refers to the process by which government is selected,
monitored and replaced; the capacity of the government to
effectively formulate and implement sound policies; and
the respect of citizen and the State for the institutions that
govern economic and social interactions among them.
Good Governance
Issues and Challenges:

• Difficulties in doing business.

• Institutional Weaknesses
• Strengthening the Rule of Law
• Highly fragmented government
• Political patronage and weak political parties
Good Governance
Government Actions:

• RA 10742 – Ease of doing Business Act of 2017

• RA 10149 – GOCC Governance Act of 2011
• RA 11292 – The Seal of Good Local Governance Act of
2019
Conclusion
The consequences of social equity can prove too great to
ignore, providing a case for government interference. Over the
course of history, several landmark policy and judicial
decisions have helped shape the role of government in
addressing social equities. Let us not forget that the
government’s goal of human development has two dimensions:
economic growth and social reform. One is meaningless
without the other. Economic growth without social reform is
unacceptable. Social reform without an enlargement and more
equitable sharing of the economic growth will inevitably fail to
uplift the lives of their intended beneficiaries.
Conclusion
We must not misconstrued equality with equity. While
oftentimes they are being used interchangeably, equality seeks
to make everyone equal by giving them equal opportunities.
Equity on the other hand, seeks to addresses the underlying
and systematic differences of opportunity and access to social
resources. In other words, equity means equal outcomes for all
and this is more important because we are not all the same,
some people need more help than the others while equality
addresses the needs of the people, regardless of social status,
equally.
Thank You
References:
Chanco, Boo. The Philippine Star: Losing To Vietnam, 10
February 2021.
 
https://cpbrd.congress.gov.ph/2012-06-30-13-06-51/2012-06-
30-13-36-52/1022-csp-09-uplifting-the-life-of-every-filipino-
through-enhanced-productivity-and-social-equity
 
https://www.igi-global.com/dictionary/support-for-and-behavi
oral-responses-to-tolls/27342
 
World Economic Forum (2018). The Global Competitiveness
Report.