2018 CALABARZON REPORTcalabarzon.neda.gov.ph/wp-content/uploads/2019/08/RDR2018.pdf · 13.2...

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Transcript of 2018 CALABARZON REPORTcalabarzon.neda.gov.ph/wp-content/uploads/2019/08/RDR2018.pdf · 13.2...

Page 1: 2018 CALABARZON REPORTcalabarzon.neda.gov.ph/wp-content/uploads/2019/08/RDR2018.pdf · 13.2 Maternal mortality ratio by province, 2017-2018 70 13.3 Under-five mortality rate by province,
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2 0 18 CA LABARZ ON R EGI ONAL D EVELOPMENT

R EPO RT

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2018 Regional Development Report i

Foreword

HON. HERMILANDO I. MANDANAS RDC Chairperson

The Calabarzon Regional Development Report (RDR) tracks the region’s socio-economic performance against the targets of the Calabarzon Regional Development Plan 2017-2022. This report highlights the role of government policies, programs and projects in meeting the development targets and outcomes in the Results Matrices of the RDP. Taking off from the assessment of the performance of the different sectors, the RDR also includes a spatial perspective on development across the region to improve targeting of interventions where it is most needed or suitable. We recognize not just the contributions made by national government agencies, regional line agencies, state universities and colleges, local government units but also civil society organizations in achieving our region’s vision to be a highly liveable and globally competitive industrial region. Our concerted effort is necessary to make our vision become a reality. The RDR, as an important input in carrying out the RDC’s functions on policy formulation and investment programming, is worth emphasizing. The 2018 RDR should guide all of us in the public and private sector in continuously delivering quality goods and services to the public and working together towards achieving AmBisyon Natin 2040 for a Matatag, Maginhawa, at Panatag na buhay para sa lahat ng Pilipino.

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2018 Regional Development Report ii

TA B L E O F C O N T E N T S

Page No.

Foreword i Table of Contents ii List of Tables iv List of Figures vii List of Acronyms ix Executive Summary xiii Chapter 1: Facilitating Transition, Implementing Change 1 Chapter 2: Global and Regional Trends and Prospects 3 Chapter 3: Overlay of Economic Growth, Demographic Trends and Physical Characteristics

7

Chapter 4: Regional Development Plan 2017-2022 Framework and Headline Targets

9

Chapter 5: Ensuring People-Centered, Clean and Efficient Governance 12 Chapter 6: Pursuing Swift and Fair Administration of Justice 18 Chapter 7: Promoting Philippine Culture and Values 24 Chapter 8: Expanding Economic Opportunities in Agriculture, Forestry and Fisheries

28

Chapter 9: Expanding Economic Opportunities in Industry and Services 35 Chapter 10: Accelerating Human Capital Development 47 Chapter 11: Reducing Vulnerability of Individual and Families 54 Chapter 12: Building Safe and Secure Communities 64 Chapter 13: Reaching for the Demographic Dividend 68 Chapter 14: Vigorously Advancing Science, Technology and Innovation 74 Chapter 15: Ensuring Sound Macroeconomic Policy 83

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2018 Regional Development Report iii

Chapter 16: Leveling the Playing Field 93 Chapter 17: Attaining Just and Lasting Peace 96 Chapter 18: Ensuring Regional Security, Public Order and Safety 101 Chapter 19: Accelerating Infrastructure Development 104 Chapter 20: Ensuring Ecological Integrity, Clean and Healthy Environment 116 Chapter 21: Plan Implementation and Monitoring 122 Credits 124

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2018 Regional Development Report iv

L I S T O F TA B L E S B Y C H A P T E R

No. Title Page

No.

5.1 2018 CMCI Calabarzon Awards 14

5.2 Calabarzon LGUs conferred with SGLG 15

6.1 Docketed Cases Involving Women and Children’s Rights 19

6.2 Constructed Jail Facilities, 2017-2018 20

6.3 Reoffending Rate Among Convicted Offenders, 2017-2018 21

8.1 Growth in Volume of Production of Fisheries in percent, 2017-2018 29

8.2 Yield of Palay and Corn (metric ton/hectare) 30

8.3 Volume of Production in Hog and Chicken ('000 metric ton) 30

9.1 Industry and Services Gross Value Added Targets and Actual Growth Rates, 2017-2018 (in percent)

36

9.2 Gross Value Added and Growth Rates of the Industry and Services Sectors, 2017 – 2018 (at constant 2000 prices)

37

9.3 Contribution to Growth by Industry in Calabarzon, 2017-2018 (at constant 2000 prices, in percentage points)

38

9.4 Contribution of the Industry and Services Sectors to the Gross Regional Domestic Product, 2017–2018 (at constant 2000 prices)

39

9.5 Calabarzon Results Matrix for 2017-2022, Total Investments, Employment and Export Sales Data

40

9.6 Number of Ecozones by Province as of November 2017 41

9.7 Establishing/Newly Proclaimed Ecozones by Province as of November 2017 41

9.8 Approved Investments in Million Pesos by Province, 2016 to 2017 41

9.9 Direct Employment by Province, 2017 to 2018 42

9.10 Export Sales by Province, 2017 to 2018 (US$ Million) 42

9.11 Target and Actual Tourism Data, Calabarzon, 2017-2018 43

9.12 Access to Economic Opportunities, Calabarzon: 2017-2018 44

11.1 Poor senior citizens covered by social pension, 2017-2018 55

11.2 PhilHealth enrolment and coverage and out-of-pocket expenditure, 2017-2018 56

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2018 Regional Development Report v

11.3 OFWs covered by social security, 2017-2018 57

11.4 Area distributed and already covered under CARP, 2-17-2018 58

11.5 Death, injured and missing persons due to natural and human-induced disasters, 2017-2018

59

11.6 Poor households that received cash-for-work for CCAM, 2017-2018 59

13.1 Modern contraceptives prevalence rate (in percent) by province, 2017-2018 69

13.2 Maternal mortality ratio by province, 2017-2018 70

13.3 Under-five mortality rate by province, 2017-2018 70

13.4 Prevalence rate of stunting, wasting, and obesity of children less than 5 years old and aged 10-15 in Calabarzon, 2013 & 2015

71

13.5 Number of Enrollees in Calabarzon, School Years 2017-2018 & 2018-2019 71

13.6 Elementary and Junior High School Completion Rates, SY 2016-2017 & SY 2017-2018

72

14.1 Inventory of R&D Work Uploaded in EXPLORE 78

14.2 Enrollees and graduates under STEM in HEIs, 2017 and 2018 79

14.3 Ongong STI Linkages in Calabarzon 79

15.1 GRDP Growth Rate and Targets, Calabarzon, 2011-2018 (in percent) 83

15.2 Gross Regional Domestic Product at constant 2000 prices, Calabarzon, 2013-2018 (in Php ‘000)

83

15.3 Per Capita GRDP at constant 2000 prices, Philippines, NCR, and Calabarzon, 2014-2018 (in Php)

85

15.4 Employment, Unemployment and Underemployment Rate, Calabarzon, 2015-2018 (in percent)

86

15.5 Inflation Rate in Calabarzon, 2017-2018 86

15.6 Number of Offices by Type of Bank: 2016-2018 87

15.7 Number of Banks in Calabarzon, by Type & by Province, 2017and 2018 88

15.8 Bank Density Ratio in Calabarzon, 2017-2018 88

15.9 Number of ATMs, 2013-2018 88

15.10 Number of Microfinance-Oriented Banking Offices, 2017-2018 89

15.11 Number of Registered Cooperatives in Calabarzon, 2015-2018 89

15.12 Revenue Type, Targets, Accomplishments (in million pesos), 2016-2018 91

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2018 Regional Development Report vi

17.1 Communist Terrorist Group’s Manpower, Firearms, and Affected and Threatened Barangays, 2018

97

19.1 Length of national roads and bridges in Calabarzon in 2017 and 2018 105

19.2 Throughput of Batangas and Lucena Ports in 2017 and 2018 107

19.3 Number of powered-up sites with free Wi-Fi internet access and Pop established in CALABARZON, 2018

110

19.4 List of ongoing and proposed major transport projects 112

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2018 Regional Development Report vii

L I S T O F F I G U R E S B Y C H A P T E R

No. Title Page No.

1.1 The RDP within the context of the Long-Term Development Plan 2

4.1 Calabarzon RDP 2017-2022 Overall Strategic Framework 9

5.1 Strategic Framework towards Ensuring People-centered, Clean, and Efficient Governance

12

6.1 Strategic Framework on Pursuing Swift and Fair Administration of Justice 18

6.2 Nature of gender-based violence Cases (as of October 2018) 19

6.3 Nature of Cases Involving Child Victims (as of October 2018) 20

6.4 Top Three Most Congested Detention Facilities Per Province (as of December 2018)

21

7.1 Strategic Framework to Promote Philippine Culture and Values 24

8.1 Strategic Framework to Expand Economic Opportunities in Agriculture, Forestry, and Fisheries

28

9.1 Strategic Framework to Expand Economic Opportunities in Industry and Service

35

9.2 Distribution of Industry Sector Contribution to the Gross Regional Domestic Product, 2017–2018 (percent distribution at constant 2000 prices)

38

9.3 Distribution of Services Sector Contribution to the Gross Regional Domestic Product, 2017–2018 (percent distribution at constant 2000 prices)

39

10.1 Strategic Framework to Accelerate Human Capital Development 47

10.2 Infant, neo-natal, and under-five mortality rates in Calabarzon, 2017-2018 48

10.3 Number of new HIV infections and tuberculosis incidence in Calabarzon, 2017-2018

49

10.4 Certification rate of TVET graduates in Calabarzon, 2017-2018 51

11.1 Strategic Framework to Reduce Vulnerability of Individuals and Families 54

11.2 Poor Households Provided with CCT, 2017-2018 55

11.3 Number of victims of child labor assisted, 2017-2018 56

11.4 Number of OFW membership to OWWA, 2017-2018 56

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2018 Regional Development Report viii

12.1 Strategic Framework for Building Safe and Secure Communities 64

12.2 Direct housing assistance 2017-2018 65

12.3 New guaranty enrollments, 2017-2018 66

13.1 Strategic Framework to Reach for the Demographic Dividend 68

14.1 Strategic Framework to Advance Science, Technology and Innovation 74

15.1 Framework to Ensure Sound Macroeconomic Policy 84

16.1 Strategic Framework for Leveling the Playing Field 93

17.1 Strategic Framework for Attaining Just and Lasting Peace 96

17.2 Number of Firearms of CTG in CALABARZON, 2014-2018 98

17.3 CTG’s Manpower in CALABARZON, 2014-2018 98

17.4 Number of CTG Affected Barangays in CALABARZON, 2014-2018 99

17.5 Communist Terrorist Group Atrocities in CALABARZON 99

18.1 Strategic Framework for Ensuring Regional Security, Public Order and Safety

101

19.1 Strategic Framework for Accelerating infrastructure Development 104

19.2 Use of retarding basins during dry and wet season 109

20.1 Strategic Framework to Ensure Ecological Integrity, Clean and Healthy Environment

116

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2018 Regional Development Report ix

L I S T O F A C R O N Y M S

4Ps Pantawid Pamilyang Pilipino Program

ACPP Accelerated Coconut Planting/Replanting Program

AFF Agriculture, Fishery and Forestry

AFP Armed Forces of the Philippines

AFF Agriculture, Fishery and Forestry

APIS Annual Poverty Indicators Survey

ASEAN Association of South East Asian Nations

ATM Automated Teller Machine

BADAC Barangay Anti-Drug Abuse Council

BLT Build-Lease-Transfer

BOD Biochemical Oxygen Demand

BPLS Business Permit and Licensing System

BPO Business Process Outsourcing

BSP Bangko Sentral ng Pilipinas

BUB Bottom-Up-Budgeting

CARP Comprehensive Agrarian Reform Program

CCA Climate Change Adaptation

CDF Controlled Disposal Facilities

CFP Coconut Fertilization Project

CLUP Comprehensive Land Use Plan

CMCI Cities and Municipalities Competitiveness Index

COD Center of Development

COE Center of Excellence

CPI Consumer Price Index

CPP Communist Party of the Philippines

CSFI Congressional Spouses Foundation Inc.

CSO Civil Service Organization

DAO Department Administrative Order

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2018 Regional Development Report x

DRR Disaster Risk Reduction

DRRM Disaster Risk Reduction and Management

DRRMO Disaster Risk Reduction and Management Office

EO Executive Order

FOROC Field Office Resource Operation Center

GAD Gender and Development

GDP Gross Domestic Product

GIDA Geographically Isolated and Disadvantaged Area

GRDP Gross Regional Domestic Product

GVA Gross Value Added

HEI Higher Education Institutions

HFEP Health Facilities Enhancement Program

HIV Human Immunodeficiency Virus

HVCC High Value Commercial Crops

ICT Information Communication Technology

IEC Information and Education Campaign

IPs Indigenous Peoples

IPG Investment Promotion Group

IPR Intellectual Property Right

IR Inflation Rate

IT-BPM Information Technology and Business Process Management

LCE Local Chief Executive

LGU Local Government Unit

MASA MASID Mamamayang Ayaw Sa Anomalya, Mamamayang Ayaw sa Ilegal na Droga

MPN Most Probable Number

MRF Materials Recovery Facility

MSEZ Manufacturing Special Economic Zone

MSME Micro, Small and Medium Enterprise

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2018 Regional Development Report xi

MSR Manila South Road

NC National Certificate

NCI Non-Crop Insurance

NCR National Capital Region

NDF National Democratic Front

NDRRMC National Disaster Risk Reduction and Management Council

NER National Enrolment Ratio

NGA National Government Agency

NGO National Government Organization

NGP National Greening Program

NIPAS National Integrated Protected Areas System

NPA New People’s Army

OD Open Dumpsite

OF Overseas Filipino

OFW Overseas Filipino Worker

PA Protected Area

PAMANA Payapa at Masaganang Pamayanan

PAMB Protected Area Management Board

PDPFP Provincial Development and Physical Framework Plan

PGENRO Provincial Government Environment and Natural Resources Office

PEZA Philippine Economic Zone Authority

PNP Philippine National Police

PPAN Philippine Plan of Action for Nutrition

PPP Public-Private Partnership

PSIP Public-Private Partnership School Infrastructure Project

PWD Persons with Disabilities

RDC Regional Development Council

RDR Regional Development Report

RLA Regional Line Agency

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2018 Regional Development Report xii

ROLL-IT Roads Leveraging Linkages for Industry and Trade

SDG Sustainable Development Goal

SETUP Small Enterprise Technology Upgrading Program

SGLG Seal of Good Local Governance

SHS Senior High School

SOLCOM Southern Luzon Command

SPES Special Program for the Employment of Students

SPMS Anti-Red Tape Act

SUC State University and College

SWM Solid Waste Management

TB Tuberculosis

TIP Term Insurance Packages

TUPAD Tulong Panghanap Buhay sa Ating Disadvantaged/Displaced Workers

TVET Technical Vocational Education and Training

TVPL Taal Volcano Protected Landscape

TWG Technical Working Group

WQMA Water Quality Management Area

WSP Water Service Providers

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2018 Regional Development Report xiii

EXECUTIVE SUMMARY The 7.3 percent growth of the Gross Regional Domestic Product (GRDP) exceeded the high end target of Calabarzon for 2018 and the previous year’s growth of 6.7 percent. The growth of the regional economy was propelled by the industry sector which grew by 7.9 percent and accounts for 62.3 percent of the regional economy. The strong performance of manufacturing and the Build, Build, Build Program contribute to the robust growth. The services sector which contributed 33.0 percent to the GRDP grew by 7.1 percent, higher than the 6.0 percent growth in 2017 due the growth of real estate, renting and business activities, increase in government spending on operations and maintenance, robust banking and lending activities, and strong household consumption. The agriculture, hunting, fishery and forestry which contracted last year grew by 0.7 percent. This positive performance can be attributed to improved livestock production and production of major crops. The strong economic performance led to a high per capita GRDP of PhP 104,708, which is 21 percent higher than the national average, and a relatively low poverty incidence in the region of 10.1 percent in 2018. The good economic performance was evident in the increase in employment rate to 93.4 percent from the previous year’s 93.0 percent and underemployment rate was reduced to 13.4 percent from 14.0 percent in 2017. However, Calabarzon experienced higher inflation rate in 2018 at 4.8 percent, higher by 1.9 percentage points compared to the 4th quarter inflation in 2017 due to high food prices. To address this, the government has implemented measures such as ensuring adequate supply of rice and unconditional cash transfers. On the social aspect indicators, maternal mortality significantly decreased from 53.9 per 100,000 live births in 2017 to 43.0 in 2018. This can be attributed to access to health services as the number of births attended by skilled personnel increased from 92.7 percent in 2017 to 95 percent in 2018. Likewise, better access to quality technical education was also achieved with the certification rate of Technical-Vocational Education Training at 92.0 percent exceeding the target rate of 85 percent. This is attributed to the continuous

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2018 Regional Development Report xiv

implementation of the mandatory assessment of students and accreditation of new assessment centers. Peace and order also improved as crimes against persons and property were significantly reduced from 11,899 in 2017 to 8,324 in 2018, a decrease of 30 percent. This was brought by intensified operations of government security agencies and involvement of communities. People-centered, clean and efficient governance was ensured by the institutionalization of citizen participatory audit in all local government units (LGU) and national agencies and evident with 93 percent of LGUs compliant with the Public Financial Management systems, higher than the 86 percent in 2017. Environmental quality was improved as seen with the increase in rehabilitated forestland by 27.0 percent from 5,511 hectares in 2017 to 7,001 hectares in 2018. The approval of Solid Waste Management Plans of 94 LGUs shall also set a path to improving the environmental quality in the region.

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Chapter 1: FACILITATING TRANSITION, IMPLEMENTING CHANGE 1

Chapter 1

Facilitating Transition, Implementing

Change

The 2018 Regional Development Report (RDR) presents the annual assessment of the socioeconomic performance of the region based from the targets in the Results Matrices of the Calabarzon Regional Development Plan (RDP) 2017-2022. The RDR highlights the annual accomplishments of the key sectors namely: the macroeconomy, industry and services, agriculture and fisheries, infrastructure, social, peace and security, governance and environment. Challenges as well as strategies to address the issues are identified while keeping an eye on the trends, prospects and opportunities of each sector. The RDR is a tool for policy-makers and development planners to guide in the identification of appropriate development interventions for the whole region and in their respective municipalities.

The Long View

The Calabarzon RDP 2017-2022 supports the plans and strategies set forth by the Philippine Development Plan (PDP) 2017-2022 which sets the direction and the overall development framework for the whole country. The RDP and the PDP are both anchored on the long-term vision for the country – AmBisyon Natin 2040 which states that “By 2040, the Philippines shall be a prosperous, predominantly middle-class society where no one is poor; our peoples shall live long and healthy lives, be smart and innovative, and shall live in a high-trust society.” Meanwhile, the Updated Regional Physical Framework Plan 2017-2046 espouses the spatial dimension of the RDP in the long-term through its vision: “Calabarzon is a region of vibrant economic diversity and vitality with progressive, well-planned town clusters inhabited by God-loving people enjoying globally competitive, balanced and resilient ecosystems”. These Plans intend to lay down a solid foundation for a more inclusive growth, a society that we can trust and an economy that is at par with the emerging economies in the world. To achieve the outcomes in the PDP and the RDP, a whole of government approach, along with the private sector, need to work together in an integrated and holistic manner. At the regional level, the collective action for the implementation of the Calabarzon RDP 2017-2022 was set by the Regional Development Council when it approved the plan in December 2016. Hence, there must be continuity of initiatives throughout the planning period while taking into account the region’s performance as contained in the annual RDR. Furthermore, all sectoral, thematic, and agency plans at the regional level and the local plans are to be consistent and aligned with the targets and strategies in the RDP. Taking stock of the gains and challenges gained in the first two years of the implementation of the current RDP, the following strategies are recommended to be strongly pursued in the medium-term until 2022:

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Chapter 1: FACILITATING TRANSITION, IMPLEMENTING CHANGE 2

Figure 1.1. The RDP within the context of the Long-Term Development Plan

The following strategic actions shall be pursued in the next 25 years:

Towards building a prosperous, pre-dominantly middle class society where no one is poor

Attract more global and high-value firms to invest in the region to create more jobs and provide competitive products and services

Support the growth of micro, small and medium enterprises (MSMEs) through technology and market assistance to expand access to more job opportunities and improve local products and services

Fully implement convergence and strategic efforts by public and private actors to assist the Geographically Isolated and Disadvantage Areas (GIDAs) and chronically poor areas to overcome poverty

Consistent with the RDC approved Calabarzon Investment Priority Areas 2019-2020, develop competitive advantage of the following sectors in the region with the most potential to achieve high and sustained economic growth:

o Manufacturing o Housing and urban development o Information and communication technology and business process outsourcing o Creative industries and knowledge-based services such as animation and software

development o Financial services o Tourism-related services o Agriculture and business development o Transport, including alternative energy vehicles o Renewable energy

Establish other social safety nets for the unemployed and those affected by calamities to

reduce vulnerabilities to natural and human-induced disasters Implement priority infrastructure projects to improve intra and inter-region connectivity

to boost productivity and economic growth

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Chapter 1: FACILITATING TRANSITION, IMPLEMENTING CHANGE 3

Towards Promoting a long and healthy life Provide quality and affordable health care for all Increase investments in health care facilities, health personnel and financing of the

PhilHealth Reduce maternal and infant mortality rate through the implementation and adoption of

local governments on Republic Act 11148 or the First 1000 Days Law Full implementation of the Responsible Parenthood and Reproductive Law to ensure

adequate access to family planning commodities and services Implement public and private sector programs to reduce the prevalence of malnutrition and

over-nutrition and promotion of a healthy lifestyle Improve the quality of the environment through effective waste management and

management of natural resources

Towards becoming smarter and more innovative people Enhance and update college and high school curricula to meet local and international

industry demands and produce world-class graduates Review the implementation of the K to 12 Program and introduce necessary improvements

to ensure that Senior High School are work-ready and are able to find employment Increase investments in education facilities, equipment and personnel to ensure

quality education Increase investments in research and development and produce researches in line with the

development needs of the region as stated in the Calabarzon Regional Development Research Agenda 2018-2022

Support and provide incentives to scientists and inventors and strengthen intellectual property (IP) culture

Support the establishment of innovation and business incubation hubs through public and private financing

Towards building a high-trust society Efficient delivery of goods and services at all levels of the bureaucracy through transparent,

competitive, automated and quality management systems Encourage competition and inclusiveness in the political system by implementing political

and electoral reforms Ensure public order and safety and continue the fair implementation anti-drug campaign Implement a long-term development agenda for armed-conflict areas Develop strong patriotism among Filipinos by upholding common Filipino values and

culture awareness advocacies

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Chapter 2: GLOBAL AND REGIONAL TRENDS AND PROSPECTS 3

Chapter 2

Global and Regional Trends

and Prospects

Calabarzon remains to be one of the top investment destinations in the country with its proximity to the National Capital Region (NCR), hub of manufacturing industries, abundance of agricultural produce and raw materials and large labor force. Next to NCR, the region has the second highest total approved foreign investments in 2018. However, there was a marked decline of almost half in investments compared to 2017. Meanwhile, other regions (e.g. Central Luzon and Northern Mindanao) recorded considerable increases in investments in 2018. 1 The slowdown in performance points out to the need to improve the overall business climate and the enabling mechanisms in the region in order to sustain a high and inclusive growth. Furthermore, government programs and projects need to be responsive to the current and expected economic, social, political and environmental developments both in the domestic and international arena.

Economic In 2018, headline inflation of the Philippines and the Calabarzon rose to as high as 6.7 percent and 6.1 percent due to rising global energy prices, higher excise taxes, weaker peso, and challenges in the supply of rice and other food supplies which drove prices of food and non-alcoholic beverages, alcoholic beverages and tobacco, transport, housing, water electricity, gas and other fuels. While inflation slowed down to 5.1 percent (Philippines) and 4.8 percent (Calabarzon) in December, increase in prices may continue in early 2019 due to additional excise tax on fuel with the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Package 2. Thus, ensuring sufficient supply of rice and other major agriculture products and the implementation of mitigating measures under the TRAIN Law, particularly the unconditional cash transfer and fuel vouchers, need to be fast-tracked. Due to higher inflation, the Philippine’s economy grew at a slower pace of 6.2 percent in 2018 as higher prices slowed consumer spending as well as business expansion. Despite the economic slowdown, Calabarzon’s economy performed well with a growth of 7.3 percent due to the expansion of its industry and services sector which are the region’s main economic drivers. (See 2018 RDR Chapter 15 Ensuring Sound Macroeconomic Policy) Economic growth will be sustained by generating more investments from global and high-value firms that will provide more employment and create competitive products and services for the international and domestic markets. As such, the conduct of various investment promotion activities are being spearheaded by Investment Promotion Group of the RDC which include the formulation and adoption of the RDC-approved Calabarzon Investment Priority Areas 2019-2020, conduct of investment missions, and fora and dissemination of promotion materials, among others.

1 Philippine Statistics Authority (2018). Total Approved Foreign Investments by Region: January to September, 2017 and 2018. Retrieved from https://psa.gov.ph/foreign-investments-press-releases/tables.

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Chapter 2: GLOBAL AND REGIONAL TRENDS AND PROSPECTS 4

The establishment of new economic zones in Quezon and other parts of the region as well as expansion of MSMEs will also generate employment and stimulate local and regional economic growth. The Package 2 of the TRAIN Law also proposes for the reduction of the corporate income tax and the rationalization of tax incentives starting 2019. The Build, Build, Build Program will boost the region’s construction subsector since some of its big ticket projects, e.g. Cavite Laguna Expressway, are situated in Calabarzon. Opening of new roads, bypass roads, and construction of roads for interregional connectivity especially along the Pacific Coast will bring more investments and create jobs while ensuring connectivity and improved public service accessibility and delivery. Improvement of international and inter-regional connectivity which includes internet connectivity and transportation will reduce logistics costs, lead to higher productivity and support a stronger regional economy. To unify transport-related plans in the country, NEDA initiated the conduct of the formulation of the Philippine Transportation System Master Plan (PTSMP). The PTSMP will synchronize decisions and investments of all transport-related agencies at the national and local levels and will include a list of transport projects that will be implemented throughout the country in support of the nation’s long-term vision – AmBisyon Natin 2040.

Political The proposed shift to a federal government system has gained ground in the past year with the House of Representatives approval of the draft federal charter. The draft charter mandates that the form and structure of the government shall be that of a presidential-bicameral-federal system, to develop a two-party system where the state shall subsidize the political parties, automatic release of national taxes to local governments or federated regions, and extension in the term of elected officials. The shift to a federal government would necessitate immense financial costs from the government and to fully capacitate the regional and local level of bureaucracy take on central office functions. Thus, a phased approach to federalism would help ensure that the shift in government would not disrupt economic growth and major infrastructure projects. The Supreme Court on its July 3, 2018 decision ordered to automatically release the shares of LGUs in the national taxes pursuant to the schedule provided by the Local Government Code, including the collections of the Bureau of Customs. The SC decision favoring the automatic release of the Internal Revenue Allotment will help fund the devolved basic services such as health, agriculture, education, disaster management, peace and order, and safety. However, the said order is yet to be executed with a pending motion for reconsideration from the executive branch. In 2019, the mid-term elections would increase spending and usher in a new set of elected officials. A safe, fair, and reliable elections as well as a smooth transition of authority is critical for the continuity of government reforms, programs and projects. Insurgency in the country and the region continues to persist and impede development. Military operations have been intensified after failed peace negotiations and rebel encounters in some areas in Batangas and Quezon. While peace negotiations are still uncertain, the national and local governments will continue to implement a comprehensive peace and

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development program to neutralize security threats and encourage more surrenderers and make them peaceful and productive members of society. In Calabarzon, the RDC has conducted several community outreach activities in insurgency areas to make government services more accessible.

Social and Demographic Being the most populous region at 14.4 million and having a 14 percent share in the youth labor force population of the country, the region can benefit most out of the demographic dividend with the appropriate health and education strategies for children and youth to improve human capital. On health, the full implementation of the RPRH law, adolescent and youth health programs, first 1000 days and promotion of healthy lifestyle can address problems on increasing cases of teenage pregnancy, high fertility rate, malnutrition, and obesity. To ensure the provision of adequate health and nutrition services to all pregnant women and children during their early days of development (i.e. newly-born up to 24 months), Republic Act No. 11148, or the “Kalusugan at Nutrisyon ng Mag-Nanay Act” was signed into law on November 29, 2018. The law was spurred by the success of Quezon Province’s First 1000 Days of Life Program which aims to reduce malnutrition, maternal and neonatal mortality in the province. On education and employment, more youth will be able to access higher education through the Universal Access to Quality Tertiary Education program. To be able to provide the needed manpower required by the growing industries in the region, stronger partnership of the academe and industry, with government’s facilitation, will continue to be pursued in the region. Other areas for collaboration with non-government organizations to increase youth employability such as the development of life and soft skills of students will also be supported. Calabarzon will continue to be one of the top in-migration regions in the country due to more employment opportunities and proximity to NCR. To be able to absorb the continuous supply of labor force and keep unemployment levels within the single-digit target, more jobs need to be created in different industries and matching of skills of job seekers to industry requirements. On international migration, despite some bans on deployment of domestic workers to safeguard Filipino workers, the number of OFs is still expected to increase as the government is eyeing to send skilled workers (e.g. nurses, teachers) to developed countries such as Japan and Germany where there are better working conditions and benefits. The deployment of these skilled workers is a result of economic partnerships of the Philippines with other countries and economic regions such as ASEAN.

Technological The Fourth Industrial Revolution (FIRe) or so called Industry 4.0 refers to the currently emerging revolution in technology based on the fusion of radical advances in knowledge across a wide range of scientific domains. Iconic examples are advances in artificial intelligence, neuroscience, robotics, internet of things, nanotechnology, quantum computers, genetics bio-engineering, among others.

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Chapter 2: GLOBAL AND REGIONAL TRENDS AND PROSPECTS 6

FIRe will create new products, production methods, business process and other cost-reducing, quality-improving and lifestyle-changing methods. It will also bring about massive job changes that will be favourable to workers that have strong scientific and quantitative skills and those who are highly trainable and adaptable. However, it will disadvantageous to workers whose jobs can be automated such as unskilled assembly line jobs and routine jobs. For the country and the region to be responsive to Industry 4.0, reforms in the education sector, research and development, and technology need to be prioritized and provided the necessary investments. Among these strategies include achieving universal completion of quality K to 12 education, ensuring that young and future workers are highly trainable and flexible, and enabling current workers’ to acquire new competencies for regular updating and upgrading of skills (i.e. lifelong learning). With FIRe, it is also imperative for the Philippines’ Information and Technology and Business Process Management (IT-BPM) industry to evolve and remain competitive. This involves strengthening human resource capability and maximizing use of technology in new, emerging and more complex sectors in the industry such as animation and game development, health information management, and IT and software development.

Environmental There were no major weather disturbances or disasters that affected the region in 2018. The region is enhancing its disaster preparedness activities through the preparation and finalization of region-wide and area specific contingency plans for earthquakes, flooding and other hazards. In 2019, the RDRRMC plans to roll-out the formulation of public sector continuity plans to ensure the immediate recovery of government and other essential services in times of disasters. On disaster mitigation, an infrastructure audit of critical government buildings and other facilities will also be carried out to assess and reduce vulnerability to hazards, in particular, earthquakes. For 2019, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) forecasted an El Niño phenomenon in 2019. The El Niño will affect the rainfall pattern in northern Philippines or Luzon area, bring drier weather conditions, and can negatively affect agriculture and fishery production. To avoid major losses, climate resilient crops can be planted, climate resilient practices adopted, and water management systems or irrigation systems improved. The adoption and implementation of the Philippine Water Supply and Sanitation Masterplan (PWSSMP) will help ensure adequate water supply in the future but also improve water quality in the region including sources of water such as rivers, lakes and coastal areas. At the regional level, the preparation of the Calabarzon Flood Control Master plan was endorsed by the RDC to the DPWH Central Office to address issues caused by flooding. For 2019, the DPWH Flood Control Management Office, NEDA Region IV-A and the Calabarzon League of Planners will conduct river basin/watershed workshops to advocate the formulation of the local flood control plans. For 2019, the planned rehabilitation of Manila Bay will involve areas in Cavite which are Bacoor City, Cavite City, Kawit, Noveleta, Rosario, Tanza and Naic. On solid waste

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management, the PWSSMP also identified putting up of sanitary landfills for highly urbanized and cluster of municipalities as well as some technologies on sanitation. As a devolved function, local governments need to come up with their approved solid waste management plan and to allocate funds for waste management or pollution reduction programs and projects.

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Chapter 3

Overlay of Economic Growth,

Demographic Trends and

Physical Characteristics

The distribution of population over a geographical location reflects the economic structure of the region. Regions with established and large cities coupled with increasing population tend to develop at a faster rate. To maximize the opportunities of increasing population and economic activities, the Calabarzon RDP 2017-2022 adopts the National Spatial Strategy (NSS) which provides the basis for policies to complement population and economic growth involving the core strategies of: regional agglomeration, connectivity, and vulnerability reduction. Regional agglomeration promotes concentration and maximizing the benefits of scale and agglomeration of economies, while connectivity aims to connect production areas to settlement and market areas. Vulnerability reduction is about ensuring the safety of the population to various hazards and control settlements in hazard prone areas.

Population and Economic Growth Calabarzon had the largest population among the regions with more than 14 million people and accounts for 14.3 percent of the country’s total population in 2015. With an annual growth rate of 2.58 percent, the region’s population is expected to double by 2042. It was noted that female population in 2015 accounts for 50 percent of the population while 65.74 percent accounts for working age population of 15-64 years old. The region was able to provide better employment and income earning opportunities to the population provided by the high employment rate at 93.4 percent and low underemployment at 13.4 percent. A significant reduction in poverty incidence among families (7.6%) and among population (10.1%) was also noted in 2018. These indicators were only among the contributing factors that enabled the region to attain a 7.3 percent economic growth in 2018. This growth has exceeded the high end of the plan growth target at 7.1 percent for the same year. In-migration is among the contributing factors for population increase in the region. It brought labor force from all over the country to work in the urban and industrial centers of Calabarzon. Cavite, Laguna and Rizal attracted most of the in-migrants due to its proximity to Metro Manila and availability of employment opportunities in the industry and service sectors in the region as well as accessibility and convenience of housing facilities. Batangas and Lucena serves as gateway from the Southern parts of the Philippines which also provides employment and housing for people coming from the south.

Strategy In achieving the development goals of the region, the National Spatial Strategy and the Centers, Corridors and Wedges (CCW) Approach was adopted in the RDP. The CCW

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Approach aims to spur development from east to west and strengthen the north to south access corridors. It links the urban and rural population through the interplay of economic opportunities thereby providing more income and employment opportunities for the people.

Moving Forward

Agglomeration and urban efficiency

The Region’s major growth centers are faced with the following urban challenges: traffic congestion in major roads, lack of mass transit system, encroachment into hazard prone areas due to in-migration, exposure to natural hazards, increasing demand for water and energy, and pollution and waste management issues.

Hierarchy of settlements shall be pursued to promote agglomeration and redistribution of urban growth. To improve urban efficiency there is a need to improve competitiveness, pursue paradigm shift in transportation system making it more people centered and responsive, and push for fast and reliable internet connectivity.

Regional connectivity

The Calabarzon region will continue to substantially contribute to the country’s economy. While majority of the projects in the region focus on easing traffic congestion and promoting inter-regional connectivity, the development of other regions should also be promoted to ensure growth complementation. In 2018, the region was able to improve connectivity and mobility through improvement and rehabilitation of various road infrastructures and implement traffic management measures. However, there is still a need to improve inter and intra-regional connectivity, push for the implementation of reliable intermodal public transportation system, address traffic congestion in major highways and city centers, and continue to pursue the CCW approach.

Vulnerability reduction

Since Calabarzon has a big population, vulnerability reduction measures are necessary to protect the people, establishments and settlements, especially in highly urbanized areas. The region’s thrust to promote health and nutrition by advocating the strict implementation of No Balance Billing policy, First 1000 Days Law, and addressing stunting, wasting, and teenage and adolescent pregnancy will help reduce the vulnerability of the population. Implementation of disaster resilient projects and vulnerability reduction measures will also minimize the effects of man-made and natural hazards. Continuing the implementation of risk management projects in Cavite, improvement in land access, and enhancement in the provision of social services not only for the local constituents but also for migrant workers will also contribute to vulnerability reduction. Lastly, mainstreaming disaster risk reduction and climate change adaption in local plans and projects will hopefully contribute to lessen the effects of disasters.

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Chapter 4: REGIONAL DEVELOPMENT PLAN 2017-2022 FRAMEWORK AND HEADLINE TARGETS

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Chapter 4

Regional Development Plan 2017-2022

Framework and Headline Targets

Consistent with the PDP overall strategic framework, the Calabarzon RDP intends to lay down a solid foundation for a more inclusive growth, a high-trust and resilient society, and a globally-competitive knowledge economy through the strategy of “Malasakit at Pagbabago Tungo sa Patuloy na Pag-unlad”.

Figure 4.1 Calabarzon RDP 2017-2022 Overall Strategic Framework

Enhancing the social fabric

To strengthen people’s trust in public institutions, the Region has continued implementing “Malasakit” Strategies. As a symbol of integrity and high standards of public service delivery, the DILG has awarded the Seal of Good Local Governance (SGLG) to 24 local government units in the region in 2018 and increased the minimum criteria in SGLG’s governance areas from five to seven. In recognition of the value of Philippine culture to development, various LGUs have conducted or are currently conducting cultural mapping in their respective municipalities with the assistance of the National Commission for Culture and the Arts (NCCA), the academe and non-government organizations. The development, conservation, and promotion of culture and the arts is also being strengthened with the establishment of more local culture and arts council. Furthermore, the DILG’s Seal of Good Local Governance included

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indicators on Essential Areas, Tourism, Culture and the Arts, Cultural Heritage Promotion and Conservation to ensure integration of culture in the local plans and programs. Around 90 percent of the local government units in Calabarzon were reported to have LCACs.

Reducing inequality

The Strategy of “Pagbabago” aims to reduce inequality by expanding economic opportunities and increasing access to these opportunities especially to the marginalized. The government has continued to provide agriculture and fishery inputs and machineries to farmers and fisherfolks to increase productivity. To complement this, various technical, credit and insurance assistance were also provided to improve their livelihood. To support the creation and expansion of MSMEs, more Negosyo Centers have been established by DTI in collaboration with LGUs. DOST also provided technological support through their Small-Enterprise Technology Upgrading Program. To bring government programs and services closer to lagging and conflict-affected areas, the “Yakap Bayan: Community Mobilization and Support Program” initiated a number of activities such as community outreach, medical and dental mission, community based drug rehabilitation and food for work programs, among others.

Increasing potential growth

To sustain the region’s economic growth in the long-term, strategies on increasing the growth potential through innovation and advancing technology are being pursued. This includes science and technology interventions such as grants-in-aid community based projects, trainings, technology forums, and testing and calibration services, among others. To stimulate innovation, more innovations centers will be established in collaboration with state universities in the region where the facility will be housed. The DOST is also focused on increasing the number of adopters of new technology to increase commercialized local products and improve the productivity and business processes in the region.

Enabling and supportive economic environment As a result of continuous efforts by the government and the private sector in generating more investments and quality employment, the region’s economy continued to grow at 7.3 percent in 2018. The region’s employment (93.4%) and underemployment also remained positive and within target pointing out to the availability of jobs in the region. Meanwhile, mitigating measures need to be effected in full with the implementation of the TRAIN package 2. To make the country’s business environment more engaging and conducive to local and foreign investors, ease of doing business will continue to be enhanced by the whole bureaucracy through the implementation of Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act.

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Foundations for sustainable development In support to the Calabarzon Spatial Strategy, the RDP identifies strategies to balance economic growth and ecological integrity. DPWH has implemented various transportation projects in 2018 such as the construction of bypass and diversion roads and flood control projects to mitigate or minimize the effects of natural calamities i.e., flooding incidences in the low-lying areas in the region. Several masterplans have been completed or will be formulated to provide a blueprint for the development of water resources, drainage and transport systems in the country and in Calabarzon. These are the Philippine Water Supply and Sanitation Masterplan, Calabarzon Flood Control Masterplan and the Philippine Transportation System Master Plan. The adoption and implementation of these masterplans are crucial for the sustained growth and development of the region. On public order and safety, index crime volume was reduced by 30 percent form 2017. On peace and security, 29 conflict-affected barangays were cleared from insurgency providing a peaceful and sustainable environment for development to take place. (See 2018 RDR Chapter 17 Attaining Just and Lasting Peace and Chapter 18 Ensuring National Security, Public Order, and Safety).

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Chapter 5: ENSURING PEOPLE-CENTERED, CLEAN AND EFFICIENT GOVERNANCE 12

Chapter 5

Ensuring People-Centered, Clean and

Efficient Governance

Good governance is necessary for socio-economic development. To have a people-centered, clean and efficient governance, requires anti-corruption measures, seamless delivery of service, engagement of empowered citizenry, and civil service accountability. This chapter highlights the accomplishments in gaining the people’s trust in the government. It examines government efficiency in delivering public services and measures participative governance. Figure 5.1. Strategic Framework towards Ensuring People-centered, Clean, and Efficient Governance

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Chapter 5: ENSURING PEOPLE-CENTERED, CLEAN AND EFFICIENT GOVERNANCE 13

Accomplishments

Empowering and engaging with citizenry Full representation of Civil Society Organizations to the LDCs. The Region maintained the representation of civil society organizations (CSOs) in all Local Development Councils (LDCs). Capability development trainings were provided to strengthen the participation of CSOs in the LDCs. These trainings resulted to the strong and active involvement of CSOs in local councils. Complete LGU compliance to Full Disclosure Policy. Since 2016, all LGUs in the Region were compliant to the Full Disclosure Policy through portal posting, and posting in conspicuous places. This ensures that the public is well informed on government policies and performance in delivery of public goods and services. LGU compliance to the Full Disclosure Policy was facilitated with the implementation of DILG Management System, and the Seal of Good Local Governance (SGLG), wherein Full Disclosure Policy compliance is one of the indicators. Unmet target on gathering citizens’ feedback. Gathering citizen’s feedback is a mandatory activity for all government agencies to validate the satisfaction level of the public on government service. All cities were assessed on the effectiveness of their feedback mechanisms, while only three municipalities were assessed (Pagbilao in Quezon, Pagsanjan in Laguna, and Magallanes in Cavite) due to limited budget. The result of the Citizen’s Satisfaction Index System in the Region is the same with the previous years. Institutionalization of Citizen Participatory Audit in all LGUs and National Agencies. The Commission on Audit introduced the Citizen Participatory Audit in 2012 to provide a mechanism for collectively answering questions regarding government’s efficient and effective use of public funds. The program was piloted in Caloocan, Malabon, Navotas, Valenzuela (CAMANAVA) on Flood Control Project, Marikina City on barangay health center, Cavite province on farm to market roads, and in Rizal province barangay health centers. In 2018, COA Resolution No. 2018-006 directed the institutionalization of the program.

Achieving seamless service delivery Consistent top awardee in the Cities and Municipalities Competitiveness Index. In the 2018 Cities and Municipalities Competitiveness Index (CMCI) survey, LGUs in Calabarzon once again proved their efficiency in delivering government services by besting more than 1,500 LGUs. Five Calabarzon LGUs bagged the top spots in Overall Competitiveness – Provinces and 1st & 2nd Class Municipalities category, Resiliency Pillar – 1st & 2nd Class Municipalities and Component Cities category, Economic Dynamism – 1st & 2nd Class Municipalities, and Government Efficiency Pillar – 1st & 2nd Class Municipalities category. Although the number of awards received by the Region decreased from 23 to 12 out of 75 categories in 2018, the Region is still the second most awarded region next to Region VI.

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Chapter 5: ENSURING PEOPLE-CENTERED, CLEAN AND EFFICIENT GOVERNANCE 14

Table 5.1. 2018 CMCI Calabarzon Awards

LGU Rank Overall Competitiveness (Provinces) Rizal 1st Laguna 2nd Overall Competitiveness (1st & 2nd Class Municipalities) Taytay, Rizal 1st Cainta, Rizal 2nd Resiliency Pillar (1st & 2nd Class Municipalities) Taytay, Rizal 1st Resiliency Pillar (Component Cities) Tanauan City, Batangas 1st Economic Dynamism (1st & 2nd Class Municipalities) Cainta, Rizal 1st Taytay, Rizal 2nd Sto. Tomas, Batangas 3rd Economic Dynamism (Component Cities) Imus City, Cavite 3rd Government Efficiency Pillar (1st & 2nd Class Municipalities) Carmona, Cavite 1st Infrastructure Pillar (1st & 2nd Class Municipalities) Cainta, Rizal 3rd

Source: DTI Region IV-A The LGUs’ participation in the CMCI and improvements in local competitiveness were facilitated through the following initiatives: a) creation of a technical working group to provide assistance and guidance to the LGUs in filling out the data capture sheets; b) institutionalization of the Provincial Competitiveness Councils to replicate the functions of the Regional Competitiveness Council and administered the filling out of the CMCI survey; and, c) engagement of the State Universities and Colleges in the conduct of CMCI Rapid Appraisal in their respective provinces. Decreased and Unmet Target on Validated Business Permit and Licensing System. However, the number of LGUs validated on the performance of Business Permit and Licensing System (BPLS) decreased from 26 LGUs in 2016 to 12 LGUs in 2018 which resulted to an unmet target. The limited budget for field validation was cited as one factor for the lower performance. Decreased in recipients of the Seal of Good Local Governance. The Seal of Good Local Governance measures the integrity and performance of LGUs by improving governance reforms and sustained local development. In 2018, only 24 LGUs in Calabarzon were conferred with the SGLG recognition, which is lower than the 35 LGUs in 2017 due to the more rigid criteria of requiring LGUs to pass all seven areas to be conferred with the award.

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Chapter 5: ENSURING PEOPLE-CENTERED, CLEAN AND EFFICIENT GOVERNANCE 15

Table 5.2. Calabarzon LGUs conferred with SGLG Provinces Laguna Quezon Municipalities Batangas (Bauan & Taal) Cavite (Carmona, Kawit, Magallanes, Maragondon & Rosario) Laguna (Kalayaan, Pakil & Pagsanjan) Quezon (Gumaca, Mauban, Panukulan & San Antonio) Rizal (Binangonan & Pililla) Cities Tanauan City, Batangas Bacoor City, Cavite Laguna (Biñan, Calamba, San Pedro & Santa Rosa)

Source: DILG Region IV-A

Enhancing administrative governance LGUs Compliant with Public Financial Management Standards. In 2018, 93 percent of LGUs in Calabarzon were compliant with the assessed Public Financial Management systems, higher than the 86 percent in 2017. Of the 147 LGUs in the Region, 137 were certified including 5 provinces, 10 cities, and 122 municipalities. These LGUs implemented corresponding Public Financial Management improvement measures that served as basis in the release of funds under the GAA Local Government Support Fund, and assistance from the National Government.

Improving anti-corruption initiatives Filed Administrative Cases with COA Findings Doubled. In 2018, four administrative cases were filed to those with COA findings compared to two in 2016. This shows strict monitoring on government operation management to curb corruption.

Strengthening civil service accountability & performance management Established Government Accountability. Malacañang Administrative Order No. 25 S. 2011 created the Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems, known as AO25 IATF. The Task Force monitors and evaluates the performance of government agencies based on Results-Based Performance Management System (RPBMS) to determine the quality of good governance in each agency, particularly through financial stewardship, or the judicious utilization of public resources and assets of the Government; efficiency and seamlessness internal process to deliver services to the public; leadership, learning, and growth which focuses on the ethical behavior of senior officials and leaders that promote public trust, as

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Chapter 5: ENSURING PEOPLE-CENTERED, CLEAN AND EFFICIENT GOVERNANCE 16

well as the innovation arising from learning and growth conditions within the Department/Agency. In Calabarzon, 44 agencies, 2 constitutional offices, 2 other executive offices and 10 LGUs met the requirements of the Results-Based Performance Management System and were qualified for the grant of 2017 Performance-Based Bonus (PBB).

Moving Forward Certifications and accreditations to improve civil service and administration management shall be pursued such as strict implementation of Memorandum Circular No. 2016-11 issued by the Administrative Order No. 25 Inter-Agency Task Force (IATF) which encourages all government offices to deliver result-based performance and requires RLAs, SUCs and LGUs to be ISO 9001:2015 certified. Likewise, the Civil Service Commission has the Program to Institutionalize Meritocracy and Excellence in Human Resource Management (PRIME-HRM) accreditation to inculcate quality public service through human resource management. Moreover, the implementation of RA 11032, known as, “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” will ensure prompt delivery of public goods and services. The DILG’s Bantay Korapsyon Program encourages the involvement and participation of various stakeholders to fight corruption down to the grassroots level. Airing of complaints through Hotline 8888, the Presidential Complaint Center, and walk-in complaints will reduce corrupt practices, and raise the probability of catching corrupt officials.

Recommendations

Challenges Recommended Strategies Implementing Agency Improve the competitiveness and CMCI ranking of more LGUs

Improve data collection and submission LGUs, PCC, RCC

Persistence of corruption in bureaucracy

Closely monitor compliance on the implementation of RA 11032 to reduce opportunities for corruption

Mainstream standard procedure and forms of common services

Continue conduct of capability trainings on system improvements

Strongly advocate government anti-corruption and transparency programs of the government such as the Bantay Korapsyon Program and Citizen Participatory Audit

Utilize established citizen’s feedback mechanisms

Review and improve efficiency of

CSC, COA, DILG, DTI DILG, DTI, LGU DILG DILG, COA, CSC Ombudsman

LGU, RLAs RDC/NEDA

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Chapter 5: ENSURING PEOPLE-CENTERED, CLEAN AND EFFICIENT GOVERNANCE 17

Challenges Recommended Strategies Implementing Agency government structure, mandates, and inter-agency procedures

Administrative burden in payment of government services

Improve e-payment platform systems Continue investment on ICT infra and

other technologies to develop automated, electronic systems, and implement zero-contact policy

Concerned NGAs/RLAs, LGUs

Need to improve on government efficiency, transparency, and accountability

Strict implementation of Memorandum Circular No. 2016-11 (RBPMS)

Secure ISO 9001:2015 Certification and PRIME-HRM Accreditation

Develop means to monitor implementation of Freedom of Information Bill

Harmonize monitoring tools on government efficiency

All government institutions/bodies

Lack of whole-of-government approach to programs

Utilize development plans at the national, regional and provincial level and use existing development mechanisms/bodies, i.e. RDC, to push broad-based and coordinated development

Establish one-stop-shop service centers/areas

Implementation of E.O. 70 for a whole-of-nation approach on peace and development

All government institutions/bodies

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Chapter 6: PURSUING SWIFT AND FAIR ADMINISTRATION OF JUSTICE 18

Chapter 6

Pursuing Swift and Fair Administration

of Justice The judicial system is important in development as it is crucial in gaining the trust of the people towards the government. In Calabarzon, the justice system improved in terms of delivering favourable dispositions, provision of human rights assistance, and faster mediation and action on cases filed in courts. However, more improvements are still needed to ensure attainment of swift and fair administration of justice in the region. Figure 6.1 Strategic Framework on Pursuing Swift and Fair Administration of Justice

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Chapter 6: PURSUING SWIFT AND FAIR ADMINISTRATION OF JUSTICE 19

Accomplishments Enhancing civil, criminal, commercial and administrative justice systems Increased grant of favorable dispositions. In 2018, favorable dispositions increased to 78.35 percent (63,596 cases) from 71.45 percent (47,668 cases) in 2017. These favourable dispositions include termination of cases in favour of the accused, failure to prove, inconsistency of testimonies of witnesses, lack of object evidence, and desistence of complainants. The adoption of the plea bargaining frameworks in drug cases as provided by contributed to the attainment of the target of 0.05 percent increase annually. Other contributing factors were the implementation of the amendment of RA 10951, known as, “The Revised Penal Code”, of which, the amount or value of property and damage of which a penalty is based and the fines imposed is adjusted, additional Public Attorney’s Office (PAO) lawyers assigned in the regions, and increase in the number of trial courts. Strengthened women and children’s rights protection. The assisted and investigated cases related to women and children’s rights increased in 2018. This was due to the implementation of the Philippine’s Gender Ombud which mandated the Commission on Human Rights to ensure the promotion and protection of women’s rights and to investigate on all violations of human rights against women. Activities and services provided to both women and children include advocacy campaigns, trainings, financial support, and legal assistance and referrals. Table 6.1 Docketed Cases Involving Women and Children’s Rights (as of October 2018)

Category 2017 2018 Percent Increase (%) Women 371 434 16 Children 55 71 29

Source: CHR Region IV-A

Out of the 434 docketed women related cases, 75 were gender-related or gender-based violence. The top three nature of cases shown in Figure 6.2 were rape, anti-child abuse, and anti-violence against women and their children. Meanwhile, Figure 6.3 shows the top three nature of cases involving child victims which were child abuse, hospital detention, and child trafficking. Figure 6.2 Nature of gender-based violence Cases (as of October 2018)

Source: CHR Region IV-A *1 case involved rape with homicide **1 case is in relation to RA 10175 (cybercrime)

34

2011

5 1 1 1 1 1

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Chapter 6: PURSUING SWIFT AND FAIR ADMINISTRATION OF JUSTICE 20

Figure 6.3 Nature of Cases Involving Child Victims (as of October 2018)

Source: CHR Region IV-A Decreased Public Attorneys Office assisted cases. Assisted and handled criminal, civil, and administrative cases of PAO decreased from 193,658 cases in 2017 to 180,677 cases in 2018. The decrease indicates an improvement of the justice system due to the application of plea bargaining for illegal drugs cases, and implementation of relevant laws such as RA 10951, known as “The Revised Penal Code”. Improving sector efficiency and accountability Increased qualified inmates released on time. The implementation of the Plea Bargaining Rules facilitated the release of qualified inmates on time specifically those under Persons Deprived of Liberty (PDL) category. PDL is the new term used for those who are still awaiting judgment or undergoing trial instead of inmates. In 2018, qualified PDL released increased by 1.66 percent (461 PDL) from 697 PDL in 2017 which also surpassed the annual target by 1.06 percent. The Supreme Court had ordered all trial courts to adopt a new plea bargaining framework on illegal drug cases that would allow an accused to plead guilty to a lesser offense for a lighter penalty. Decreased jail congestion rate. The congestion rate in the jail facilities in Calabarzon decreased from 963 percent in 2017 to 622 percent in 2018 which is also better than the region’s target of 800 percent. The construction of new jail facilities helped improve jail conditions (Table 6.4). Moreover, improvement in the case review processes and proceedings, and better implementation of relevant laws also contributed in decongesting the facilities. Table 6.2 Constructed Jail Facilities, 2017-2018

Indicator Baseline (2016)

2017 2018

Number of jail facilities constructed 0 2 12

Number of constructed jail facilities being used 0 1 5

Total number of existing jail facilities 42 44 52

Source: BJMP Region IV-A The top three most congested detention facilities in the region are Biñan, Laguna, Santa Rosa, Laguna Male Dormitory, and Cainta, Rizal Male Dormitory. As a result, deaths inside the facilities are present due to poor living condition inside the facilities. The crude mortality rate in the Region’s jail facilities increased from 0.10 percent in 2016 to 0.17 percent in 2018. Crude mortality rate is the ratio of the number of deaths occurring within one year to the mid-

52

6 5 3 2 2 1

RA 7610 HospitalDetention

ChildTrafficking

RA 9262 Homicide UnlawfulArrest

Bullying

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Chapter 6: PURSUING SWIFT AND FAIR ADMINISTRATION OF JUSTICE 21

2,035

2,758

486

2,163 2,139

1,992

2,565

322

2,022

793

1,536

1,797

307

1,431

485

0

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1000

1500

2000

2500

3000

Cavite Laguna Batangas Rizal Quezon

year population expressed per 1,000 population of which all ages are represented in the rate and does not take into account the variations in risks of dying at particular ages. Though the crude mortality rate in the Region increased, it is still below the critical level of more than 0.40 percent. Figure 6.4 Top Three Most Congested Detention Facilities Per Province (as of December 2018)

Source: BJMP Region IV-A All requested legal assistance were acted immediately. Provision of public legal assistance and/or representations improved in 2018 as all requested legal assistance and/or representations were acted within three working days from the date of request due to additional staff in PAOs. Decrease in reoffending rate among convicted offenders. The reoffending rate among probationers and the Juvenile In Conflict with the Law (JICL), and the parolees and pardonees decreased from 1.68 percent in 2017 to only 0.75 percent in 2018. This improvement can be attributed to the conduct of the rehabilitation program called Therapeutic Community Modality to ensure that clients’ needs are being addressed while still under the realm of the agency and helping the client to change from “wrong living to right living “, making them productive again. Table 6.3 Reoffending Rate Among Convicted Offenders, 2017-2018

Clients Category Total Active Cases

No. of Revocation

No. of Re-arrest / Recommitment

% of reoffending

2017 2018 2017 2018 2017 2018 2017 2018 Probationer 2,799 4,643 63 31 - - Parolees/Pardonees 951 937 0 - - 11 Total 3,750 5,580 63 31 - 11 1.68 0.75 Source: DOJ-PPA Region IV-A Increased Rate of parolees/offenders compliant to the terms and conditions of probation/parole. Compliance of the parolees/offenders on all the terms and conditions specified in their probation orders and/or discharge on parole increased from 98.32 percent in 2017 to 99.24 percent in 2018. While on probation or parole, the conduct of Therapeutic

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Chapter 6: PURSUING SWIFT AND FAIR ADMINISTRATION OF JUSTICE 22

Community Modality, coupled with close monitoring scheme of probation and parole officers contributed in lessening the occurrence of re-offending and full compliance to probation orders.

Moving Forward Construction, rehabilitation and renovation of jail facilities, and facilitation of cases in a timely manner will help decongest the detention facilities in the Region which is far higher than the ideal jail capacity of 1:30 inmates. Thus, LGUs are encouraged to donate LGU-owned lot for the establishment and expansion of jail facilities. The proper allocation and utilization of budget for the operation of jail facilities will have a bigger impact on the improvement of jail facilities including provision of food, bunk beds, and proper ventilation to inmates. Though the Plea Bargaining contributed to the decongestion of jail facilities, and resulted to faster process of drug-related cases, it is proposed to review the Administrative Matter (AM) No. 18-03-16-SC which states the Plea Bargaining Framework in drug cases as its implementation is subject to the discretion of the judge. Plea Bargaining allows an accused to plead guilty to a lesser offense for a lighter penalty. The AM can have a negative effect with the unplanned and sudden increase in the number of offenders transferred to probation which cannot be accommodated due to limited rehabilitation facilities, staff, and budget.

Recommendations Challenges Recommended Strategies Implementing Agency

Fragmented institutional and legal framework of the justice system that hinders the effective coordination among justice sector institutions

Institutionalize the Regional Justice Sector Coordinating Council

Streamline investigation and prosecutorial process to expedite administration of justice

Review and harmonize the institutional and legal framework on penology and corrections

DOJ, Regional Development Council (RDC)

DOJ, BJMP, LGU

Heavy caseload and congestion in jails and prisons

Further review and amendments of existing penal laws, its corresponding penalties and criminal procedures specifically on other cases

Mandatory implementation of plea bargaining

Increase in budget for construction of more jail facilities

Enhance implementation of Alternative Dispute Resolution

Conduct study on personnel

SC, DOJ, DILG, BJMP, PAO

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Chapter 6: PURSUING SWIFT AND FAIR ADMINISTRATION OF JUSTICE 23

Challenges Recommended Strategies Implementing Agency

complementation in justice sector

Poor maintenance of jail facilities resulting to heat, hunger, boredom and threats of violence

Increase budget allocation for operations and maintenance

Hire additional personnel

Invest in ICT system to ease burden on monitoring and managing the facilities and inmates

DOJ, LGUs, BJMP

Insufficient support to Plea Bargaining recipients

Review AM No. 18-03-16-SC

Allocate budget for the establishment of rehabilitation facilities, and hiring of staff

Mainstream appropriate rehabilitation program

Conduct technical training on rehabilitation program

DOJ

Non-integration of convergence plans

Regular conduct of joint RPOC-RDC Meetings

Converge and harmonize RPOC Public Safety, Peace and Order Plan with the RDC Yakap Bayan: Community Mobilization and Support Program Action Plan

Harmonize LGUs and RLAs rehabilitation programs

RDC, RPOC

Lack of After-care Program for former offenders (cases other than drug-related)

Explore adoption of Balik-Loob sa Gobyerno Flowchart

RDC, concerned agencies, LGUs

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Chapter 7: PROMOTING PHILIPPINE CULTURE AND VALUES 24

Chapter 7

Promoting Philippine Culture and Values

This chapter presents the critical role of culture in enhancing the social fabric and highlights the 2018 accomplishments on culture development and promotion as well as the facilitating and hindering factors in meeting the targets. Figure 7.1. Strategic Framework to Promote Philippine Culture and Values

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Chapter 7: PROMOTING PHILIPPINE CULTURE AND VALUES 25

Accomplishments

Philippine culture and values promoted

Culture components included in the development plans. The inclusion of the chapter on culture development and promotion in the Philippine and Regional Development Plans (P/RDP) contributed to the development and mainstreaming of culture by recognizing the critical role of culture in development, inclusive and sustainable growth. The P/RDP will be subjected to a mid-term updating to monitor the accomplishments and provide policy recommendations to further enhance the promotion and development of culture. Moreover, culture components were also included in the Provincial Development Plans, particularly in the provinces of Batangas, Cavite and Laguna. In addition to the inclusion of culture in the development plan, the provinces of Laguna and Batangas have also mainstreamed culture in their provincial tourism development plans. At the local level, there were 21 comprehensive development plans (CDPs) with integrated culture components in 2018 from only nine in 2017. The increase was attributed to the strong collaboration of DILG with the LGUs. Moreover, with the implementation and inclusion of culture development in the new SGLG guidelines, LGUs were able to mainstream culture development in their development plans. In Batangas Province, there were 12 CDPs and 12 comprehensive land use plans (CLUPs) with culture components while in Laguna, there were 19 local government units with approved CDPs and revised CLUPs. The Provincial Land Use Committee and Technical Assessment Committee (TAC) conducted CDP assessment to ensure the inclusion of culture in the development plans. In addition, the establishment of local tourism, history, culture and arts council and involvement of civil society organizations in the preparation and review of the plans facilitated the integration of culture components.

Our diverse cultures valued Number of cultural centers/hubs and other facilities for cultural exchange increased. The number of cultural centers/hubs and other facilities for cultural exchange increased from only 54 in 2017 to 66 in 2018. The centers/hubs are found in the provinces of Batangas and Laguna. The increase was strongly attributed to the assistance provided by the National Historical Commission of the Philippines and the existence of local tourism, culture and arts council. The development of these centers became possible through the initiatives of the provinces and the private sector through Private Public Partnerships. However, it is observed that some of these facilities are only considered as such because these are used as venues for cultural events and do not function as venue for knowledge sharing and cultural exchange. Thus, there is a need to clearly establish the definition of cultural centers/hubs to properly document and monitor which of the identified facilities in the provinces can be considered as cultural centers/hubs. IKSPs documented. On the number of documentation conducted on Indigenous Knowledge System and Practices (IKSP), the National Commission on Indigenous Peoples reported that as of 2018, there were three documented IKSP through the formulation of the Ancestral Domains Sustainable Development and Protection Plan (ADSDPP). Moreover, there was also an increase in the number of identified culture bearers from two in 2017 to six in 2018 which was possible through the further recognition of the members of the IP communities.

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Chapter 7: PROMOTING PHILIPPINE CULTURE AND VALUES 26

Cities and municipalities with cultural mapping increased. Cultural mapping is the process of identifying and documenting the cultural resources or assets of an area. The output of cultural mapping is a cultural database which can be used for policy recommendations, monitoring and further development of the cultural assets of the community. The number of cities and municipalities with cultural mapping increased from nine in 2017 to 29 in 2018. The identified LGUs that conducted cultural mapping were Calatagan, Taal, San Juan, and Tanauan City in Batangas Province and Bacoor City, Imus City, Carmona, Maragondon, Magallanes, Silang, Mendez, Rosario in Cavite Province. There were also LGUs in Quezon and Laguna Province with on-going cultural mapping activities. Number of local festivities increased. There was also an increase in the number of local festivities in the region, from 56 in 2017 to 70 in 2018 which indicates that the values, culture, and traditions are now being more recognized and valued in the region.

Pagkamalikhain values of creative excellence advanced Established arts organizations and councils increased. The number of established arts organizations and councils in the region significantly increased from only 43 in 2017 to 92 in 2018. The increase was evident in Batangas Province with zero in 2017 to 27 in 2018. Other provinces with established arts organization and councils are Cavite, Laguna and Quezon. The increase was mainly attributed to the issuance of the DILG Memorandum Circular 2001-81 or the Creation of Local Culture and Arts Council (LCAC). Number of cultural sites increased. In addition to the establishment of arts organizations and councils, sites that are considered with cultural importance increased from 290 in 2017 to 342 in 2018. This was attributed to more LGUs acknowledging the importance of preserving the cultural sites which were registered with the National Commission for Culture and the Arts’s Philippine Registry of Cultural Property.

Culture-sensitive public governance

Formal agreements for cultural initiatives created. There were five formal agreements created for cultural initiatives in the region in 2018 which were mostly for development of cultural heritage sites through the collaborative efforts of the provincial governments with the private sector, such as the partnership of the Batangas Provincial Tourism, Culture and Arts Office (PTCAO) with Enrique Zobel Foundation and the Southern Luzon Association of Museums, and Municipality of Mauban and the National Commission for Culture and the Arts (NCCA). Awarding and incentives system for cultural initiatives established. There were four LGUs with institutionalized awarding and incentives system for cultural initiatives, as an initiative of the provincial government, particularly in Batangas Province with the implementation of their Mabini Batangas Awards, Huwarang Pamilyang Pilipino Awards, and Balisong Award.

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Chapter 7: PROMOTING PHILIPPINE CULTURE AND VALUES 27

Moving Forward The proposal on the creation of the Department of Culture will ensure an existing government arm that will lead the integration of culture in development planning and strengthen implementation of culture programs and projects. Regional offices of the NCCA and culture offices at the LGUs will be created under the department. Thus, the approval of the creation of the department will have great impact to the development of culture. In the region, the Calabarzon Regional Development Council created the Sub-Committee on Culture to address the pressing issues in culture such as lack of data and statistics, gaps in the integration of culture in education and other relevant sectors, and creation of policies and mechanisms for culture development. The Committee which was established in 2018 has already set forth activities that are in line with the objectives identified in the P/RDP. The protection and preservation of the IP communities and their ancestral domains are also important to the development of culture as the IPs are considered the standard bearers of our culture and history. Thus, the inclusion of issues and concerns of the IP community in the priority strategies of the chapter will provide a more holistic view of culture preservation and development.

Recommendations The accomplishments of culture development in the region are a good start but several key areas for improvement are still needed. The following challenges were identified to further advance the integration and development of culture in the region.

Challenges Recommended Strategies Implementing Agencies Inclusion of culture components in the provincial development plans, comprehensive development plans, and comprehensive land use plans

Capacitate local planners for the integration of culture in the plans and programs;

Increase awareness of local chief executives on the link between culture and development and its importance in sustainable and inclusive growth

NCCA, LGUs

Increasing number of cities and municipalities with cultural mapping or culture inventory

Fast track provision of assistance to LGUs

Link interested LGUs with private sectors for technical assistance

Conduct training of trainers to create a resource pool on cultural mapping

NCCA, LGUs, PSOs/CSOs

Increasing number of schools of living traditions and culture bearers

Integration of ADSDPP into local development plans

Conduct of cultural mapping

LGUs, NCCA, NCIP

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Chapter 8

Expanding Economic Opportunities

In Agriculture, Forestry and Fisheries This Chapter presents the performance of the agriculture, fisheries and forestry (AFF) in the Region which remains an important growth driver as it provides employment and raw materials in the industry sector. The performance of the sector is assessed in terms of achieving the targets towards achieving the overall sector outcome of expanding economic opportunities in the AFF. Overall, the AFF sector remains to be competitive, driven by the livestock and poultry subsector which constitutes more than half of the total output of the AFF. The Region remains a major contributor to the country’s total production of livestock and poultry, as the top producer of chicken eggs and second biggest producer of hogs and chicken. On the other hand, crops and fisheries declined due to numerous typhoons and depleted fisheries resources, respectively. Figure 8.1. Strategic Framework to Expand Economic Opportunities in Agriculture, Forestry, and Fisheries

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Accomplishments

Gross Value Added Increased. The gross value added (GVA) in AFF grew by 0.68 percent from PHP74.15 billion in 2017 to PHP74.65 billion in 2018. Despite the positive performance, the sector failed to achieve the target of increasing the GVA to at least 2.2 percent in 2018. The sector contributed 4.78 percent to the gross domestic product of the region. Fisheries Production Posted a Negative Growth. Pursuant to Republic Act (RA) No. 10654 or An Act to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing, fishery law enforcement was intensified. Stronger linkages with the LGUs and other law enforcement agencies were undertaken to address issue on IUUF resulting to the decline in the commercial and municipal fisheries. For 2018, commercial fisheries posted a decline at 17.89 percent. Similarly, the municipal and aquaculture fisheries production contracted at 9.56 and 11.32 39 percent, respectively. Table 8.1. Growth in Volume of Production of Fisheries in percent, 2017-2018

Commodities 2017 2018 Target Actual Target Actual

a. Commercial 0.01 (5.87) 0.01 (17.89) b. Municipal 0.02 5.79 0.02 (9.56) c. Aquaculture 0.03 (1.21) 0.03 (11.32) Aquaculture was also affected by the pronouncement of President Rodrigo Duterte to rehabilitate the Laguna Lake, thereby directing the Laguna Lake Development Authority to implement policies regulating the number of fish pen and cages to 10 percent of the total area of the lake in compliance with RA 8550 or Philippine Fisheries Code of 1998. Decline in aquaculture production may also be attributed to losses due to stunted growth caused by intense heat and cold weather. It was also observed that some operators shifted to farming operation from culturing in fishpond hatchery. Municipal fisheries production decreased with the implementation of Bantay Dagat. Decrease in unloading in most landing centers was noted especially in Quezon Province due to less fishing days brought by frequent rough seas in the municipal waters because of the Southwest Monsoon from July to August. Positive Growth for the Grains Sub-sector. The grains subsector, which includes palay, white corn and yellow corn, posted a positive performance compared to the previous year. Palay yield at 3.87 metric tons per hectare is 9.63 percent more than the previous year’s performance and is 1.31 percent more than the target for 2018. The increase in palay yield was due to intensive rice hybridization and mechanization through the Rice Program.

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Table 8.2. Yield of Palay and Corn (metric ton/hectare)

Commodities 2017 2018 Growth Rate (%)

Target Actual Target Actual `'17-'18 `'18T-'18A

a. Palay 3.64 3.53 3.82 3.87 9.63 1.31

b. White Corn 1.96 1.70 2.39 1.86 9.41 (22.18)

C. Yellow Corn 4.00 3.66 4.64 3.82 4.37 (17.67) Likewise, white corn and yellow corn yield at 1.86 and 3.82 metric ton per hectare are 9.41 and 4.37 percent more than the previous year’s performance, respectively. However, the targeted increase in yield was not attained due to frequent typhoons which rendered the planting of corn unconducive and disrupted the planting calendar of corn farmers in the second quarter of 2018. The performance of corn production was also hampered by the reduction in the agency annual budget for the Corn Program from PHP176.78 million in 2017 to PHP166.78 million in 2018. The actual yield of major crops was anticipated to decline due to numerous typhoons that may hit in 2018. However, inspite of numerous typhoons that hit CALABARZON in 2018, government support measures were in place to increase crop production such as the coffee rejuvenation project, rehabilitation of existing old trees such as cacao, banana and mango. Livestock and Poultry subsector sustained its positive growth. Hog production increased by 2.66 percent from 371.70 metric tons in 2017 to 381.59 metric tons in 2018 due to efficient control of diseases brought about by the strong collaboration of the government with the private sector.

Table 8.3. Volume of Production in Hog and Chicken ('000 metric ton) Commodities 2017 2018 Growth Rate (%)

Target Actual Target Actual `'17-'18

a. Hog increasing 371.7 Increasing 381.59 2.66

b. Chicken increasing 328.6 Increasing 330.94 0.71

c. Chicken Egg increasing 145.02 Increasing 156.32 7.79 Chicken and chicken egg production increased to 330.94 metric tons and 156.32 metric tons, respectively. The positive growth may be attributed to the increase in farm capacity of some traditional poultry farms which were converted to tunnel vent type farms and the expansion of some broiler farms. Technical Support Services Increased. The number of beneficiaries provided with technical support services for livestock and poultry increased to a total of 555 group beneficiaries with the continuous support from the Livestock Program which includes the provision of laboratory services, biologics, vaccines and drugs. Similarly, the number of fisherfolks provided with production support increased from 1,182 in 2017 to 1,728 in 2018 or about 46.19 percent more than the previous year and 108.95 percent more than the target for 2018. In terms of the number of group beneficiaries provided with agricultural and fishery machineries and equipment, while the actual performance was 195.36 percent more than the

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target, it was 43.38 percent lower than last year's actual accomplishment. The decrease may be attributed to the 47 percent decrease in the agency budget for the provision of agricultural and fishery machineries and equipment from PHP303.02 million in 2017 to PHP159.38 million in 2018. AFF Research, Development, and Extension Activities Increased. The investments in AFF research and development (R&D) increased by 6.99 percent from PHP84.10 million in 2017 to PHP89.98 million in 2018 increased the number of research studies from 65 research studies to 66 research studies in 2018. On the other hand, the number of beneficiaries provided with extension services increased by 88.33 percent from 6,827 in 2017 to 12,857 in 2018 with the additional requests from the stakeholders and the effective implementation of the cost sharing agreement under the grants system of the Agricultural Training Institute.

Moving Forward

The performance of the AFF sector indicates the need for the sustained implementation of some major programs and strategies in order to achieve the targets on expanding economic opportunities in the AFF in the region. More importantly, there is a need to strengthen sustainable use of resources through the prioritization of commodities which the Region has comparative advantage. Also, production areas in the region must be clearly identified through the updated Comprehensive Land Use Plans of the LGUs to effectively manage and avoid competition on land utilization for food production and commercial development. Identification of land uses will serve as a tool for effective planning, especially of LGUs, to avoid incidence of unproductive and idle lands that are prone to land banking. The following strategies were also identified to contribute to the attainment of the regional development goals. Sustainable fisheries management. The country has been flagged by international organizations to strengthen its fisheries conservation and management interventions. The following strategies should be further pursued: (a) complete the delineation, delimitation, and zoning of municipal waters to ensure that municipal fisherfolks are given preferential use and exclusive access to resources; (b) strengthen collaborative law enforcement and management of coastal and marine areas particularly against illegal, unreported, and unregulated fishing activities; (c) implementation of closed fishing season that is based on a comprehensive scientific study to allow for increase in fish stocks; and (d) strengthen linkages with various stakeholders and LGUs in the implementation of fishery laws. The continued production support such as provision of fishing gears/paraphernalia, fingerling production and distribution, provision of aquaculture trainings, establishment of techno demo farms from the government will facilitate growth of the fisheries sector. Other programs that should be continuously pursued include the disease surveillance and monitoring, water quality monitoring, Balik Sigla sa mga Ilog at Lawa and the seaweed development. Increase crop production. The enactment of RA 11203, “An Act Liberalizing the Importation, Exportation and Trading of Rice, Lifting for the Purpose the Quantitative Import

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Restriction on Rice, and for Other Purposes”, is expected to provide support to rice farmers through the Rice Competitiveness Enhancement Fund (RCEF). The RCEF derived from the tariffs imposed on importation will be set aside to provide key support interventions that will enhance their competitiveness and profitability. Support includes farm machinery and equipment to improve farm operations, rice seed development, propagation and promotion, expanded rice credit, and extension services. Strong livestock and poultry production. Sustained production and disease prevention support of the government to the livestock and poultry sub-sectors must be strengthened as the sub-sector remain to be the growth driver of the AFF in the region. The country has been at its comparative advantage over other ASEAN counterparts because our geographic location allows us to be less prone to animal and avian diseases. Border protection through checkpoints must be strengthened and Biosecurity or practices that can control the spread of disease-causing organisms in livestock and poultry must be in place. Production support services will still be pursued to ensure productivity in the sub-sector such as the Artificial Insemination Program and the establishment of multiplier farms or scaled-up version of the dispersal program where animal stocks are distributed to the farmers. Resilience to climatic conditions, plant diseases and pest infestation. Resilience of the AFF sector to losses due to climatic conditions, plant diseases and pest infestation need to be strengthened through the implementation of programs and projects that include the following strategies: (a) establishment of small water-impounding dams in strategic areas for irrigation purposes, especially during El Niño episodes; (b) adoption of improved farm management practices, particularly for effective and efficient management of inputs including water; (c) promotion of new technologies including water-saving and management technologies (e.g., broadcasting, drip irrigation, alternate wetting, and drying), stress-tolerant seed varieties, animal breeds, and fish stocks; and (d) construction of more climate resilient farm structures. Agricultural insurance of subsistence farmers and fisherfolks to cover crop, livestock, fisheries and non-crop agricultural asset will be made more accessible to provide protection from losses arising from natural calamities, plant diseases and pest infestations of crops. Agricultural credit and financing programs, such as the Production Loan Easy Access, Agriculture and Fisheries Machinery and Equipment, and Working Capital Loan Easy Access, will also be extended to finance production, farm machinery, and working capital requirements of small farmers and fisherfolk. Loan and emergency assistance package will also be provided to agricultural households in calamity-affected areas to help regain their capacity to earn a living through the Survival and Recovery Loan Assistance Program. Competitiveness. The production support and the repeal of laws and regulation on export quota restrictions through the RA 11203 will encourage farmers to produce special varieties of rice, such as heirloom, organic and aromatic long-grain rice, for export. These varieties command a higher price which will result to higher farmer’s income. Competition in imported food is expected to intensify and should be viewed positively to put greater pressure to accelerate productivity and boost competitiveness of the AFF. Relatedly, the Halal industry will be continuously promoted to maximize the benefits of the Association

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of Southeast Asian Nations (ASEAN) integration as most ASEAN-member countries are halal market. For more value-adding and to ensure availability of raw materials for processing, production clustering through contract farming will be encouraged. Relatedly, market connectivity must be strengthened to ensure efficient delivery of agri-fishery commodities and reduce postharvest losses and transportation cost by eliminating additional fees and unnecessary check points. To stir-up economic activity and increase farmer’s income, the implementation of the RA 10816 or the Farm Tourism Development Act of 2016 must be strengthened to continuously provide an enabling environment for the encouragement, development and promotion of farm tourism in the country. Farm tourism promotion in the country contributes to job generation and creates multiple revenue streams for farmers which allow them to be uplifted from poverty and become globally competitive. As an important backbone of innovation and agricultural development, there should be increased investment in research and development (R&D) towards mechanization, improved productivity, climate-change resilience and value-adding of AFF commodities. To ensure that R&D findings and available technologies will be successfully adopted in the ground, capacity building of both extension workers and farmers must further be continuously strengthened. Trainings can also serve as venue to showcase success stories, best practices and introduce non-conventional farming methods to encourage more investors in the AFF especially the youth and the retirees.

Recommendations

In addition to the existing programs and projects, the following strategies are recommended to achieve the goal of expanding economic opportunities in the AFF:

Challenges Strategies Implementing Agencies Sustainable Production

There must be a conscious effort to consider the negative effects such as chemical inputs in crop production.

DA, BFAR and LGUs

Duplication of effort among agencies

Harmonization of initiatives that will result to government savings and increased efficiency, particularly on research and extension.

DA, BFAR and ATI

Data Availability for Planning and Monitoring

Strengthen research and extension programs of especially on fisheries. The Research Division of BFAR Regional Offices was abolished in 2015, resulting to non-implementation of research projects and the absence of plantilla positions in the organizational structure.

PSA, DA, BFAR and LGUs

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Challenges Strategies Implementing Agencies Strengthened monitoring and database system to address the limited data available for planning and policy making. Data harmonization with the PSA, as the official source of information for planning use. Periodic review with concerned agencies and stakeholders to validate data collection system.

Promotion of AFF Integration of vegetable garden in schools and government offices (urban gardening). Conduct student orientation on the wide variety of agriculture jobs available. Conduct capacity building trainings especially for non-agricultural workers and retirees that would like to go venture into agriculture.

DA, BFAR, ATI, DepEd, CHED, TESDA and LGUs

Increase manpower Employ additional field personnel to provide technical assistance to more stakeholders and conduct monitoring.

DA, BFAR and LGUs

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 35

Chapter 9

Economic Opportunities in Industry

and Services

Sustaining the competitiveness of the industry sector in the local and global market and reducing inequality in economic opportunities would require expanding the access of MSMEs, cooperatives and overseas Filipinos to economic opportunities. This means increasing local and foreign investment promotion, strengthening linkages and partnerships between private and government sectors, implementating the Progressive Accreditation System, and involving the academe in consumer advocacy initiatives and campaign.

Figure 9.1 Strategic Framework to Expand Economic Opportunities in Industry and Service

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 36

Accomplishments

Economic Opportunities in Industry and Services Expanded

Industry and services exceed growth targets. Industry sector increased from 7.8 percent in 2017 to 7.9 in 2018 attaining its 7 percent target by almost 113 percent. Growth rate of the services sector, likewise, increased from 6 percent in 2017 to 7.1 percent in 2018 attaining about 101 percent of its 7 percent target (Table 9.1). Table 9.1 Industry and Services Gross Value Added Targets and Actual Growth Rates, 2017-2018 (in percent)

Indicators Baseline

(2017)

2018 % of Target

Attained

Value Target Actual

GVA in industry increased 7.8 5.2-7.0 7.9 112.86

GVA in services increased 6 7 7.1 101.43

Manufacturing GVA as a

proportion of GRDP increased

53.5 increasing 53.9 target met

Source: PSA Region IV-A The industry sector continued to grow at a faster pace due to the manufacturing sub-sector growing at 8 percent from 7.4 in 2017 and by electricity, gas and water supply sub-sector at 3.9 percent. While construction sub-sector had the highest growth rate at 9.5 percent, it slowed down by 6.1 percentage points from 15.6 percent in 2017 (Table 9.2). The services sector, on the other hand, grew by 1.1 percent from 6 percent in 2017 to 7.1 percent in 2018 with a PhP514.64 billion GVA attaining its 7 percent target by 101 percent. The growth is primarily due to the attained growth of almost all of its sub-sectors, notable of which are public administration and defense; compulsory social security sub-sector with a growth rate increase of 6.5 percent from 8.9 percent in 2017 to 15.5 percent in 2018 and other services subsector with 2.5 percent increase from 8.5 percent in 2017 to 11 percent in 2018. On the other hand, renting and business activities grew but at a slower pace at 6.0 percent as compared with the 6.9 percent growth in the previous year, which can be attributed to its already high base.

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 37

Table 9.2 Gross Value Added and Growth Rates of the Industry and Services Sectors, 2017 – 2018 (at constant 2000 prices)

Sector Gross Value Added (000,000)

Growth Rate (%)

2017 2018

2016 – 2017

2017 - 2018

Industry 901,666 973,202 7.8 7.9 Mining and Quarrying 2,676 2,769 1.0 3.5 Manufacturing 779,712 842,437 7.4 8.0 Construction 72,252 79,148 15.6 9.5 Electricity, Gas and Water Supply 47,025 48,847 3.4 3.9

Services 480,529 514,644 6.0 7.1 Transportation, Storage & Communication 94,912 99,215 3.7 4.5 Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods

107,904 114,114 4.0 5.8

Financial Intermediation 56,480 61,439 7.4 8.8 Real Estate, Renting & Business Activities 130,126 137,960 6.9 6.0 Public Administration & Defense; Compulsory Social Security

17,919 20,689 8.9 15.5

Other Services 73,188 81,229 8.5 11.0 Source: PSA Region IV-A Manufacturing propels economic growth. Manufacturing is the main driver of Calabarzon’s economy with a GVA of PhP842.44 billion, a PhP 62.72 billion increase from PhP779.71 billion GVA in 2017. Of the 7.3 percent growth in the economy of Calabarzon, 4.3 percentage points comes from the manufacturing, which comprises 88 percent of the whole industry sector (Table 9.3). The manufacturing sub-sector is mainly driven by the electronics industry making the Region the “Silicon Valley of the Philippines” with big-name locators such as Panasonic, Matsushita, Samsung, TDK-Fujitsu, Toshiba, Mitsui, Philips, Hitachi, Sanyo-Epson, NEC, Music, Temic, Uniden, I-Max, Lite-On, and Clarion. Also present in the Region are food, beverage, and tobacco, machinery (including electrical machinery), metal and non-metallic, chemical and pharmaceuticals, textile, and automotive sub-industries. The Region is also the home of automotive assemblers in the country such as Ford, Honda, Isuzu, Mitsubishi, Nissan, and Toyota, which are mostly located in the province of Laguna. Thus, Laguna is dubbed as the automotive capital or “the Detroit of the Philippines.”

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 38

Table 9.3 Contribution to Growth by Industry in Calabarzon, 2017-2018 (at constant 2000 prices, in percentage points) INDUSTRY YEAR 2017 2018 INDUSTRY 4.7 4.9

Mining and Quarrying 0.0 0.0 Manufacturing 3.9 4.3 Construction 0.7 0.5 Electricity, Gas and Water Supply 0.1 0.1

SERVICES 2.0 2.4 Transport, Storage & Communication 0.3 0.3 Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods

0.3 0.4

Financial Intermediation 0.3 0.3 Real Estate, Renting & Business Activities 0.6 0.6 Public Administration & Defense; Compulsory Social Security

0.1 0.2

Other Services 0.4 0.6 Source: PSA Region IV-A Figure 9.2 Distribution of Industry Sector Contribution to the Gross Regional Domestic Product, 2017–2018 (percent distribution at constant 2000 prices)

Mining and Quarrying

0.3%

Manufacturing86.6%

Construction8.1%

Electricity, Gas and Water

Supply5.0%

GVA of Industry Sector for 2018 (percent distribution at constant 2000 prices)

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 39

Table 9.4 Contribution of the Industry and Services Sectors to the Gross Regional Domestic Product, 2017–2018 (at constant 2000 prices)

SECTOR 2017 2018

INDUSTRY SECTOR 61.9 62.3

Mining and Quarrying

0.2 0.2

Manufacturing

53.5 53.9

Construction 5.0 5.1

Electricity, Gas and Water Supply 3.2 3.1

SERVICE SECTOR 33.0 32.9

Transportation, Storage & Communication 6.5 6.3

Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods 7.4 7.3

Financial Intermediation 3.9 3.9

Real Estate, Renting & Business Activities 8.9 8.8

Public Administration & Defense; Compulsory Social Security 1.2 1.3

Other Services 5.0 5.2

Services sector accounts for 32.9 percent of the GRDP in 2018 slightly decreasing its share from 33 percent in 2017. The slight decrease may be attributed to the increase in share of the Industry Sector. Figure 9.3 Distribution of Services Sector Contribution to the Gross Regional Domestic Product, 2017–2018 (percent distribution at constant 2000 prices)

Source: PSA Region IV-A

Transportation, Storage &

Communication19%

Trade and Repair of Motor

Vehicles, Motorcycles, Personal and

Household Goods22%

Financial Intermediation

12%

Real Estate, Renting & Business Activities

27%

Public Administration

& Defense; Compulsory

Social Security4%

Other Services16%

GVA of Service Sector for 2018 (percent distribution at constant 2000 prices)

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 40

Decreased local and foreign investment. The Region’s total approved investments continue to decline in 2018 achieving only 58.97 percent or PhP43.25 billion of the PhP73.34 billion target. This is a further decrease from the previous year’s 83.72 percent achievement. The PhP37.76 percent decline in approved investment may be attributed to the investors’ attitude towards the policy direction of the current administration, particularly the impending passage of the Tax Reform for Acceleration and Inclusion (TRAIN)- Package 2 or Trabaho Bill. Package 2 of the TRAIN Law includes the repeal of exemption from national and local taxes of establishments operating within the Ecozone. Consequently, existing investors withhold their expansion plans while incoming investors hold their investments in abeyance. Furthermore, according to the Philippine Economic Zone Authority (PEZA), the decrease in local and foreign investment is also associated and may even be aggravated by the more competitive investment packages in other countries like Cambodia, Vietnam, and China, which are more attractive to foreign investors. Given this circumstance, the government’s outlook towards TRAIN LAW Package 2, and the investors’ attitude towards the government’s policy direction, it is expected for local and foreign investments in the Region to further decline in the coming years if the business climate remains at status quo. Table 9.5 Calabarzon Results Matrix for 2017-2022, Total Investments, Employment and Export Sales Data

Indicators Baseline (2017)

2018 Variance Percent Change

Value Target Actual

Total approved investments increased (PhP M)

69,484.875

5% increase (73,341.32)

43,248.91

26,235.97

-37.76

Number of employment increased from industrial park/economic zone and IT parks/BPO industrial parks developed- Public

491,234

5% increase (515,796)

516,634

25,400

5.17

Exports increased (US$ M) 26,217.32

5% increase (27,528.19)

28,627.24

2,409.92

9.19

Source: PEZA Despite the decrease in approved local and foreign investment, PEZA data showed that increase in approved investment was observed in two provinces. The Province of Cavite almost tripled the approved investment from PhP4.17 billion in 2017 to PhP16.55 billion in 2018 while the province of Rizal has 37.18 percent increase in approved investment from PhP0.95 billion in 2017 to PhP1.3 billion in 2018. The increase may be attributed to the opening of new zones and expansion by existing investors. Meanwhile, significant decreases in approved investment are observed in the provinces of Quezon, Laguna, and Batangas with 100, 57.34, and 49.06 percent decrease, respectively. The decrease, according to PEZA, may be attributed to the fact that investments may have almost, if not, already peaked in the existing ecozones especially in Batangas and Laguna. If no new ecozone will be established and if pending expansion proposals in the pipeline remain dormant, a declining trend will be expected. As of November 2017, there are a total of 54 ecozones in the Region, which are concentrated in the provinces of Laguna with 19 and Batangas and Cavite with 15 ecozones each (Table 9.6). Meanwhile, according to data from PEZA, there are 19 establishing or newly

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 41

proclaimed ecozones in the Region, majority of which will be established in Cavite and Laguna (Table 9.7). Table 9.6 Number of Ecozones by Province as of November 2017

Type / Province Cavite Laguna Batangas Rizal Quezon Total

Operating Ecozones

Manufacturing

11 14 10 - - 35

IT Parks / Centers 3 5 3 3 - 14

Agro-Industrial

1 - - - 1 2

Tourism

- - 1 1 - 2

Medical Tourism Parks/Centers

- - 1 - - 1

TOTAL 15 19 15 4 1 54

Source: PEZA Table 9.7 Establishing/Newly Proclaimed Ecozones by Province as of November 2017 Establishing / Proclaimed Ecozones

Manufacturing 2 - 3 - - 5

IT Parks / Centers 3 5 - 1 - 9

Agro-Industrial - 1 1 - - 2

Tourism 2 1 - - - 3

TOTAL 7 7 4 1 0 19

Source: PEZA Table 9.8 Approved Investments in Million Pesos by Province, 2016 to 2017

PROVINCE 2017 2018 Growth Rate (%)

Batangas 33,684.086 17,158.494 -49.06

Cavite 4,186.971 16,548.700 295.24

Laguna 19,306.942 8,237.219 -57.34

Quezon 11,355.931 0.00 -100

Rizal 950.945 1,304.500 37.18

TOTAL 69,484.875 43,248.91 -37.76

Source: PEZA Increased direct employment. Industrial park/economic zones increased their direct employment by 5.17 percent employing additional 25,400 persons, surpassing the target for 2018. According to PEZA, the increase may be attributed to a number of factors including (1) good business climate in the Region, (2) status of peace and order in the Region, and (3) provision of technical assistance by government agencies like PEZA, the Department of Labor and Employment, and the Department of Trade and Industry. The Province of Laguna leads the Region in direct employment employing 220,788 individuals while the province of Quezon recorded the lowest at 1,891 direct employment in 2018. In terms of percent increase in direct employment, the province of Rizal recorded the highest at 14.16 percent while Quezon is the lowest at (-)7.44 percent.

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 42

Table 9.9 Direct Employment by Province, 2017 to 2018 PROVINCE 2017 2018 Growth Rate

Batangas 109,004 119,346 9.49 Cavite 159,216 168,860 6.06 Laguna 215,935 220,788 2.25 Quezon 2,043 1,891 -7.44 Rizal 5,036 5,749 14.16 TOTAL 491,234 516,634 5.17 Source: PEZA Increased export sales. The amount of exports also increased by US$2.41 billion or 9.19 percent achieving 104 percent of the target at US$28.63 billion. The increase in export sales was driven by the increase in production of the ecozone establishments. Further, the increased production is due to the establishments meeting their respective targets. The province of Laguna remains to be the top exporter at US$16.6 billion followed by Cavite and Batangas at US$6.25 and US$5.61 billion, respectively. Table 9.10 Export Sales by Province, 2017 to 2018 (US$ Million)

PROVINCE 2017 2018 Growth Rate Batangas 4,612.379 5,611.701 21.67 Cavite 5,782.223 6,253.966 8.15 Laguna 15,702.863 16,625.533 5.86 Quezon 76.258 76.204 -0.07 Rizal 43.598 59.832 37.26

TOTAL 26,217.321 28,627.24 9.19 Source: PEZA

The robust performance in employment and exports reflects stable operation of locators in the economic zones. This accomplishment may be attributed to the good business climate in the region. Visitors and accredited tourism establishments increased. The number of same day visitors reached 51,237,951 in 2018, an increase of 91.1 percent from 2017. Faith tourism in the Region alone accounted for 9 million same-day arrivals during the Holy Week. Moreover, the arrival of the holy relic of St. Padre Pio on the last quarter of the year boosted the number of same day tourists in Batangas. Overnight tourist visits, on the other hand, increased by 45.90 percent. Targets for overall same day visitors and overnight tourists were exceeded by 130.10 percent and 69.82 percent, respectively. Rizal has the highest number of same day visitors while Batangas recorded the highest number of overnight visitors in 2018. The increase in number of tourists may be attributed to (1) the completion and construction of tourism roads that enhanced access to more tourist destinations in the Region, (2) increased compliance of tourism arrival data submission by LGU counterparts, (3) market and product development program of the Region, (4) private and public stakeholder linkages development, (5) intensified promotions of tourism establishments, and (6) long weekends and holidays.

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 43

Table 9.11 Target and Actual Tourism Data, Calabarzon, 2017-2018

Indicator 2017 2018 2018

Baseline Target Actual Growth Rate

Same day visitors ('000) 26,043 22,268 51,237 91.08

Number of overnight visitors increased (‘000)

5,095 4,410 7,489 45.96

Number of accredited tourism establishments

227 221 309 7.29

Number of rooms from DOT accredited accommodation establishments 3,847 3,350 3,432 82.07

Number of employees employed by DOT accredited establishments 5,934 5,100 7,151 1.68

Source: DOT Region IV-A

The number of accredited tourism establishments also grew by 39.82 percent as a result of Memorandum Circular No 2015-06 and 2016-03 making accreditation validity of travel and tour agencies and star-rated accommodation enterprises (Hotel and resorts) to 2 years from 1 year and the continuous campaign for DOT accreditation in coordination with the LGUs. The number of DOT accredited establishments exceeded the target. The number of rooms from DOT accredited establishments increased by 82 percent. The increase in accredited tourism establishments as well as increased in number of rooms from DOT-accredited establishments were due to massive implementation of RA 9593 Section 122 requiring all primary tourism establishments to secure DOT accreditation before securing a mayor’s permit. Primary tourism establishments are: accommodations (hotel, resorts and mabuhay accommodations), travel and tour agencies, tourist transport for land, water and air, tourism frontliners like tour guides and trainer. The targeted number of employees employed by DOT accredited establishments was met with an increase of 1.68 percent due to increase of part-time employees. Consumer access to safe and quality goods & services ensured. The number of consumer awareness and advocacy initiatives undertaken increased by 6.52 percent from 230 in 2017 to 245 in 2018. The increase may be attributed to collaboration with radio and local television stations as well as with the DepEd. Meanwhile, the percentage of consumer complaints resolved slightly declined from 92 percent in 2017 to 91 percent in 2018, but the accomplishment still exceeded the 85 percent target. This is attributed to the establishment of consumer welfare desks in major supermarkets and groceries. In addition, the number of firms/customers provided with testing and calibration services also increased by 39.13 percent from 3,560 in 2017 to 4,943 in 2018, more than the targeted five percent increase. The increase was due to the maintenance of high customer satisfaction rating through delivery of services within the agreed timeframe, maintenance of laboratory personnel proficiency certification for accuracy of test samples, and the maintenance of the ISO 17025 accreditation of the testing and calibration laboratories. Productivity, efficiency and resiliency improved. The number of barangay micro business enterprises (BMBE) registered in the region increased from 2,126 in 2017 to 2,656 in 2018. This is primarily attributed to the strict implementation of the BMBE law. Availing the benefits of the BMBE Law like, tax exemption arising from the their business operations,

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 44

exemption from the coverage of the minimum wage law, and priority to a special credit window set up specifically for the financial requirements of BMBEs also facilitated the increase of BMBE registration. Meanwhile, the number of small-enterprise technology upgrading program (SETUP) beneficiaries decreased by 11.48 percent from 61 in 2017 to 54 in 2018 achieving roughly 84 percent of the year’s target. This year’s target was not met due to budget insufficiency of the SETUP program, which limited the fund release of approved projects. In addition, project costs increased due to rising market price of technological equipment needed for S&T intervention. Table 9.12 Access to Economic Opportunities, Calabarzon: 2017-2018

Indicator 2017 2018 2018

Baseline Target Actual Growth Rate

Consumer access to safe & quality goods & services Number of consumer awareness and advocacy initiatives undertaken

230 200 245 6.52

Percentage of consumer complaints resolved within prescribed time - mediation (10 days), arbitration (20 days)

92% 85% 91% -1.09

Number of clients (firms) / customers provided with testing and calibration services increased

3,560 5%

increase 4,943 39.13

Access to production networks

Number of negosyo centers established 37 36 36 -2.70

Number of negosyo centers maintained 35 72 72 105.71

Source: DTI and DOST Region IV-A

Access to Economic Opportunities in I&S for MSMEs, Cooperatives and OFs increased

Access to finance improved. The number of credit cooperatives in the Region increased from 32 in 2017 to 35 in 2018 as members of proponent cooperatives need easy access on micro-finance for their productive and providential needs. Moreover, the increase in the number of credit cooperatives may be attributed to the following: a) mass media exposure including the social media; b) NGA and LGU assistance to cooperatives; c) CDA partnership with other NGAs like DAR, DTI, DA, and NCIP, among others; d) conduct of series fora on cooperatives in each province in CALABARZON; and d) the effect of Transport Modernization Program. Negosyo Centers established and maintained increased. The establishment of Negosyo Centers in all provinces, cities, and municipalities aims to promote ease of doing business and facilitate access to services such as business registration assistance, business advisory services, business information and advocacy, and monitoring, evaluation and recommendation of business-process improvement for MSMEs. Negosyo Centers also provide Shared Service Facilities and support for MSMEs through management guidance, improvement of the working conditions of MSMEs, market access, and linkaging services for

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 45

entrepreneurs. There were 36 additional Negosyo Centers in 2018, bringing the total to 108 Negosyo Centers in Calabarzon.

Moving Forward

While the economy of Calabarzon in 2018 is on its fastest pace at 7.3 percent, the highest recorded growth since 2013, the industry sector may face challenges in the future due to the decreasing trend of local and foreign investments. The declining trend may slow down manufacturing, which is the biggest contributor in the Region’s economy. This circumstance may be further aggravated by the impending passage of the Package 2 of the TRAIN Law, or the Trabaho Bill which repeals the exemption from national and local taxes of establishments operating within ecozones. Existing investors/locators may withhold their expansion plans and incoming investors may hold their investments in abeyance. The service sector, however, will be a bright spot if it continues to grow in the coming years. The fast growing service sector can compensate the potential decrease in manufacturing as a result of the continuous decline in foreign and local investments.

Recommendations The following are the recommendations for CY 2018 to 2022 to ensure continuous growth and achievement of the sectors targets based on the Regional Development Plan.

Challenges Recommended Strategies Implementing

Agencies Decline in foreign investment strengthen promotional activities

locally and abroad encourage reinforcement of linkages

and partnerships between private and government sector

PEZA, DTI, IPG

Improve competitiveness, innovativeness, and resilience of tourism industry

utilize and implement Progressive Accreditation campaign issued by the DOT and DILG through a Joint Memorandum Circular No. 2019-17 dated February 6, 2019 reiterating the mandatory accreditation of primary tourism establishments

enhance collaboration with LGUs to accredit primary tourism establishment

DOT

Increase tourist arrivals in the the Region

identify potential tourist destination develop emerging tourist destination promote “visitor-ready destination in

the region” tourism development must be in

accordance with the existing CLUP of the LGUs and as much possible must be sustainable and conform with

DOT, LGUs

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Chapter 9: ECONOMIC OPPORTUNITIES IN INDUSTRY AND SERVICES 46

Challenges Recommended Strategies Implementing

Agencies existing non-destructive tourism development

Improve consumer access to safe & quality goods & services

strengthen partnership program with private sectors and academe in consumer advocacy initiatives and campaign

sustain promotion of DOST testing and calibration services and OneLab referral system to ensure conformity on global standards and competitiveness

DOST, CHED, SUCs, HEIs, NGOs

Improve Industry & Services productivity, efficiency, and resiliency

increase DOST Small Enterprise Technology Upgrading Program funds to avoid backlog / pending implementation of project proposals

DOST, RDC, DBM

Improve access to economic opportunities in Industry & Services for MSMEs, cooperatives and overseas filipinos

establish Negosyo Centers in all cities and municipalities in Calabarzon to helps the MSMEs to access the production networks

provide technical assistance to credit cooperatives and Overseas Filipinos in developing into a business

continue government support in mainstreaming cooperative development

strengthen value chain approach to link the suppliers and producers to the market

DTI, CDA, DOLE, DOST

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 47

Chapter 10

Accelerating Human Capital Development This chapter highlights the 2018 performance of the social sector in terms of nutrition, health, education, and employment. The facilitating and hindering factors in meeting the targets are discussed and specific strategies are recommended to address the identified challenges. Figure 10.1 Strategic Framework to Accelerate Human Capital Development

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 48

Accomplishments

Nutrition and health for all improved Maternal mortality ratio improved. Maternal mortality ratio significantly decreased from 53.9 per 100,000 live births in 2017 to 43.0 in 2018. The increasing number of health facilities accredited by PhilHealth to provide maternity care packages contributed to the attainment of decreasing maternal mortality ratio which was within the 70 target. The increase in number of accredited health facilities was able to accommodate and cater to more families. Maternal mortality ratios of the provinces were also below the targeted ratio in the region except in Cavite which recorded a ratio of 73.8. Among the provinces, Quezon had the lowest recorded ratio with 9.12. The improvement in maternal mortality was attributed to the improved referral network and engagement of more private facilities in the service delivery network of the Department of Health (DOH). Higher infant mortality rate but maintained within target. Infant mortality rate in 2018 increased from 7.7 percent in 2017 to 8.7 percent in 2018 which was still within the 15 percent target of DOH. The low mortality rate was brought by the continuous conduct and advocacy of child health programs. The provinces of Batangas, Rizal, and Laguna recorded the lowest infant mortality rates with 5.1, 6.5, and 8.6, respectively. Meanwhile, Cavite Province, although obtaining a rate below the target in the region with 9.9 percent, still had higher mortality rate than the regional rate and Quezon Province was not able to meet the regional target rate with 15.3 percent. Figure 10.2 Infant, neo-natal, and under-five mortality rates in Calabarzon, 2017-2018

Neonatal and under-five mortality rates increased but target sustained. Further, neonatal mortality rate in 2018 slightly increased from 5.6 percent to 6.0 percent but maintained its value within the targeted rate of the region. The low mortality rate was attributed to the continuous and intensified implementation of child health programs. Under-five mortality rate also increased by 1.29 percentage points while maintaining its value within target rate of 25 percent. Among the provinces, the highest mortality rate among children below five years old was observed in Quezon Province while the lowest was recorded in Batangas Province.

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 49

Percentage of immunized 1 year old children decreased. Immunization rate of one year old children declined from 61.3 percent in 2017 to 58.0 percent which was below the 95 percent target of DOH. The decline in immunization rate was due to the fears on vaccination brought by the Dengvaxia issue. The highest percentage of immunized children was in Laguna Province with 63.5 percent while the lowest was in Quezon Province with only 55.9 percent. Increased incidence of tuberculosis and more new HIV cases diagnosed. The incidence of tuberculosis was targeted to decrease in 2018 at 322 cases. However, there was a 5 percent increase from 330 cases in 2017 to 345 cases in 2018. The increase in tuberculosis incidence was attributed to the increase in multi-drug resistant cases of tuberculosis brought by bacteria that is resistant to the potent drugs used to cure the disease. The recorded number of new HIV cases also increased by 3.5 percent from 1,807 cases in 2017 to 1,871 cases in 2018. Thus, the target of decreasing the HIV cases in the region was not met. Factors that contributed to the increase of HIV cases was the increasing cases of risky behaviors among men having sex with men coupled with the social stigma that was associated with the disease. Batangas Province had the highest number of new HIV infection diagnosed with 695 new cases in 2018 while Quezon Province had the lowest with only 124 new cases. Figure 10.3 Number of new HIV infections and tuberculosis incidence in Calabarzon, 2017-2018

Health manpower to population ratio remained low. In terms of manpower, the ratio of medical doctors to patients attended in 2018 was at 1:51,203 which was below the standard ratio of 1:20,000. The same is true with the ratio of nurses to patients which was recorded at 1:21,846, a little bit higher than the standard ratio of 1:20,000. The high ratio was brought by the decreasing number of nurses in the country who preferred to work abroad. Likewise, the ratio of midwife to number of birth deliveries in 2018 was at 1:9,541, also higher than the standard 1:5,000. This was attributed to the low number of enrollees to the midwifery course. Thus, the lack in manpower for provision of health services is still one of the pressing challenges in the region.

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 50

Increased number of drug cases that completed treatment. The percentage of drug cases that completed treatment in the region significantly increased from 82.6 percent in 2017 to 95 percent in 2018. The recorded performance was 15 percentage points higher than the 80 percent target in 2018. The improved performance was attributed to the strong support of the administration to the program and increasing engagement of different stakeholders which provided various support to the patients. Increased number of births attended by skills personnel and delivered in health facilities. Despite the substandard ratio of midwives to patients, the proportion of births attended by skilled health personnel increased from 92.7 percent in 2017 to 95 percent in 2018. The same was also observed in the proportion of births delivered in health facilities which increased from 77.1 percent in 2017 to 90.0 percent in 2018. The recorded accomplishment on both indicators exceeded the target value and the positive performance was attributed to several factors such as increased health facilities that were accredited to provide MCP, upgraded health facilities and birthing homes, and creation of local ordinances that are supportive to maternal care in LGUs. Another significant factor which facilitated the improved performance was the implementation of DOH’s Human Resource for Health (HRH) Program to support the attainment of the Universal Health Care Act. Through the HRH, doctors, nurses, midwives, dentists and other health professionals are being deployed to rural and impoverished areas to complement rural health based workers in the area.

Prevalence rate for modern contraceptives improved. More families using modern contraceptives for family planning was observed in 2018 which increased by 10.4 percentage points. The recorded prevalence rate of 47.5 percent exceeded the target 35 percent. The improved performance was brought by the increased advocacy on the use of modern family planning since the implementation of the Executive Order No. 12, s. 2017 or the Zero Unmet Need for Family Planning.

Lifelong opportunities for all

Certification rate of TVET graduates increased. Certification rate of Technical-Vocational Education Training (TVET) graduates slightly increased in 2018 from 91.3 percent to 92.0 percent, exceeding the target rate of 85 percent. Batangas Province had the highest of TVET graduates with 95.0 percent while the lowest was Laguna Province with 89.4 percent. The continuous implementation of mandatory assessment of students and accreditation of new assessment centers and assessors facilitated the improvement in the indicators. The implementation of competency assessment and certification for workers program of TESDA further contributed to the increase in certification rate of TVET graduates.

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 51

Figure 10.4 Certification rate of TVET graduates in Calabarzon, 2017-2018

Income-earning ability increased

Number of SPES beneficiaries increased. Beneficiaries of Special Program for Employment of Students (SPES) increased by seven percent from 13,670 students in 2017 to 14,613 students in 2018. The same is also true for all the provinces in the region. Further to the improved performance, the targets in the provinces and in the region were also met. This was attributed to the strong partnership between the LGUs and private employers, and state universities and colleges through expanded linkages and collaborative efforts of the local chief executives, provincial employment services offices (PESOs), and advocacy efforts through local media. Beneficiaries of government internship program increased. For the government internship program, the region was able to provide the program to 869 beneficiaries in 2018 which was seven percent higher than the number of beneficiaries in 2017. Among the provinces, Cavite, Laguna, and Rizal recorded decreasing accomplishment while the highest increase was observed in Batangas and Quezon with 46 percent and 20 percent, respectively. Around 200 beneficiaries were able to avail of DOLE’s Jobstart Program in 2018 which was made possible through the strong partnership between LGUs and private employers. While these government-initiated programs provide salaries or stipends to the beneficiaries, the main purpose of these programs are to provide: a) additional financial resource for educational expenses; b) first-hand working experience for students; and c) skills that would enhance the students’ employability. Employment facilitation beneficiaries decreased. On the employment facilitation track, the region was able to provide assistance to 2,566 beneficiaries, a 90 percent decrease from DSWD’s accomplishment from previous year. The issuance of Memorandum Circular No. 12 s. 2018 or the Implementation of the Sustainable Livelihood Program was delayed which brought the decrease in beneficiaries of employment facilitation.

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 52

Employability Improved

Referral of PESOs improved. The number of jobseekers referred by the Public Employment Service Offices (PESOs) for placement increased from 326,096 in 2017 to 390,848 in 2018, also exceeding the 276,459 target for the year. The following factors facilitated the increased performance were: a) intensified employment and career coaching being implemented among the higher education institutions; b) strengthened tie-up with companies; and c) active partnership and cooperation among PESOs, companies, and agencies. Likewise, the positive accomplishments in terms of jobseekers referral were observed from the provinces, exceeding their targets for the year and posted improved performance. More beneficiaries reached by labor market information. Further, there were more individuals reached through the labor market information in 2018 compared to 2017, posting an increase of 27 percent. Similarly, the target of 425,000 individuals for this year was exceeded by the region posting an actual accomplishment of 1,490,991 individuals. The accomplishment became possible through active information dissemination of the PESOs and its strong partnership with DOLE and private establishments. Among the provinces, Laguna Province posted the most number of individuals reached through labor market information, while Cavite Province had the least.

Moving Forward

Several laws and policies were created and passed that are supportive to the development of the health and nutrition sector such as the Universal Health Act, First 1000 Days, and Zero Unmet Needs for Family Planning. In addition, the development of different plans on health and nutrition such as the Philippine/Regional Plan of Action for Nutrition, Philippine Strategic TB Elimination Plan, and AIDS Medium Term Plan will steer the region in the right direction in terms of health and nutrition. The implementation of the Republic Act 10931 or the Universal Access to Quality Tertiary Education which institutionalizes free tuition and exemption from other fees in state universities and colleges and other accredited local universities and colleges will allow for more students to avail of higher quality education, thus, improving the quality of human capital in the region. However, proper mechanisms should still be in place to maintain the quality of education being provided in the SUCs and LUCs, and to reduce the impact of lower enrolment rates within private higher education institutions in the region. Through the continuous efforts of the Special Committee on Strengthening Academe-Industry Linkages of the Calabarzon Regional Development Council, close coordination among DOLE, Provincial PESOs, academe, and private sectors/employers is being facilitated. Moreover, the Committee was created to propose policies and activities that will address the issue on job-skills mismatch in the region. To date, the Committee has conducted two regional Summits that led to the creation of the Academe-Industry Manifesto, Action Plan, and recommendations on increasing employability of jobseekers in the region. Upcoming activities of the committee include the academe-industry dialogue which seeks to harmonize the specific skills and human resource requirements of the industry with the academic curriculum.

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Chapter 10: ACCELERATING HUMAN CAPITAL DEVELOPMENT 53

The establishment of Barangay Employment Service Offices (BESOs) is a good practice among local government units and barangays as easier coordination with DOLE and provincial PESOs can be facilitated. Moreover, through BESOs, national programs and projects can easily reach the targeted beneficiaries at the grassroots level.

Recommendations

Despite the positive over-all performance of the sectors, several challenges are still needed to be addressed to accelerate human capital development in the region. The 2018 targets for the following indicators were not achieved: a) decreased tuberculosis incidence; b) increased percentage of 1 year old fully immunized children; c) decreased number of new HIV infections; d) doctor to population ratio; e) nurse to population ratio; and f) midwife to population ratio. To ensure the achievement of these targets, the following strategies are recommended.

Challenges Recommended Strategies Implementing Agencies Decreasing number of fully immunized 1 year old children

Active IEC on the importance and benefits of immunization

Deployment of more HRH to the LGUs Improvement of health

equipment/facilities particularly in the rural health units

DOH, Provincial Health Offices

Increasing TB incidence per 100,000 population

Intensify case finding activities in the community

Provide adequate supply of medical resources

DOH, Provincial Health Offices

Increasing newly diagnosed HIV infections

Intensive campaign on HIV awareness and prevention through utilization of social media and partnership with NGOs

Conduct orientation and seminars on HIV/AIDS in public and private schools

Establishment of Local AIDS Councils Increase number of testing sites, hubs

and clinics for HIV Harmonize and roll-out U4U and Usap

Tayo modules in basic education

DOH, POPCOM, NYC, DepEd, CHED, TESDA

Low health manpower to population ratio

Provide incentives to medical health professionals to work in the country

Intensive hiring and training of health personnel

Promote midwifery course to students

DOH, DepEd, CHED, TESDA

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 54

Chapter 11

Reducing Vulnerability of Individual

and Families

This chapter discusses the performance of the region in the implementation of universal and transformative social protection programs with the aim of reducing vulnerability of individual and families and building socio-economic resilient Filipinos in 2022.

Figure 11.1. Strategic Framework to Reduce Vulnerability of Individuals and Families

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 55

Accomplishments Mitigating risks faced by vulnerable groups Poor households provided with conditional cash grants decreased. The number of conditional cash transfer (CCT) beneficiaries covered decreased from 315,413 to 307,692 families from 2017 to 2018. Significant decrease was experienced by Quezon and Batangas Provinces at 2,906 and 1,994 families, respectively due to the decline in eligible households as a result of the massive validation of the non-moving accounts and correction of data inconsistencies. Despite the decline in number of beneficiaries, the coverage of the CCT program became more inclusive to cover only the eligible households based on the validation. The gains in the implementation of the CCT was also made possible through the various partnership development efforts with other government agencies, civil society organizations and the private sector. Number of poor senior citizens covered by social pension increased. The social pension coverage of poor senior citizens surpassed its targets and went up from 159,999 in 2017 to 176,265 in 2018. Cavite and Laguna Provinces significantly contributed to the increase in coverage of senior citizen social pension by covering additional 7,260 and 6,518 individuals with social pension, respectively. The positive performance can be attributed to regular conduct of consultation dialogues and program implementation review with LGUs and concerned stakeholders. Further, the sustained compliance of all LGUs in the region to the one percent budget allocation for PWDs/Senior Citizens also contributed to the increase in coverage from 2017 to 2018. Table 11.1 Poor senior citizens covered by social pension, 2017-2018

Region/Province 2017 2018 Target Actual Target Actual

Calabarzon 152,673 159,999 175,562 176,265 Cavite 25,744 33,004 Batangas 50,176 50,223

Laguna 24,196 30,714 Quezon 41,477 43,942 Rizal 18,406 18,382

Universal health coverage improved. PhilHealth enrolment slightly went up from 100 percent in 2017 to 101 percent in 2018. Moreover, coverage of PhilHealth increased from 90 percent in 2017 to 96 percent in 2018, surpassing its 2017 and 2018 target of 85 and 88 percent, respectively. Despite the general decrease in universal health coverage, the percentage of out-of-pocket expenditure over total health expenditure showed slight improvement from 50.55 percent in 2017 to 46 percent in 2018 as such a 4.55 percentage

Figure 11.2 Poor households provided with CCT, 2017-2018.

Figure 11.2 Poor Households Provided with CCT, 2017-2018

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 56

point decrease in out-of-pocket expenditure was reported. The out-of-pocket expenditure beats its targets for 2017 and 2018 due to strict monitoring of compliance to No Balance Billing (NBB) of accredited institutions and issuance of warning and denial of accreditation to some accredited government hospitals that are non-compliant to NBB policy. Table 11.2 PhilHealth enrolment and coverage and out-of-pocket expenditure, 2017-2018

Health Indicators 2017 2018

Target Actual Target Actual

Enrolment in PhilHealth 100% 100% 100% 101% Coverage of PhilHealth 85% 90% 88% 96% Percentage of out-of-pocket expenditure over total health expenditure decreased

70% 50.55% 68% 46%*

*Accomplishment was generated from the Provinces of Batangas, Quezon and Rizal Number of victims of child laborers assisted decreased. The number of child laborers assisted slightly decreased from 205 to 185 individuals from 2017 to 2018. However, the improvement is still 6 times higher than its target. While the decline can be attributed to the implementation of Strategic Helpdesk for Information, Education, Livelihood and other Developmental Interventions (SHIELD) Project, there is still a need to address issues and concerns in relation to the Project in order to harmonize interventions as well as data collection on child laborers assisted.

Managing economic risk Number of Overseas Filipino Workers (OFW) membership to OWWA increased. The number of OWWA membership slightly increased from 1.30 million members in 2017 to 1.34 million in 2018. The actual number of members significantly increased from the targets since the accomplishment is a consolidated data of OFWs in Calabarzon from Local, Regional, and National Database as well as data from OWWA overseas offices. The increase may also be attributed to implementation of OWWA E-Card, Balik Mangagawa Program and automatic renewal of membership which was implemented during the last quarter of 2018. The partnership with LandBank for payment of OWWA membership also facilitated the increase in membership. OFWs covered by social security increased. The percentage of OFWs covered by social security increased from 364, 898 in 2017 to 369,907 in 2018. Provision of social services increased in the Provinces of Cavite from 101,069 in 2017 to 110,404 in 2018 and in Rizal

Figure 11.3 Number of victims of child labor assisted, 2017-2018

Figure 11.4 Number of OFW membership to OWWA, 2017-2018

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 57

where it slightly increased from 59,754 to 60,038. The increase can be attributed to increase in number of active OWWA members which translates into the increase in provision of social services such as death benefits, livelihood, and education and scholarship assistance, among others. The increase is also due to mandatory social security coverage for OWWA members as well as conduct of outreach programs and provision of on-site services. Table 11. 3 OFWs covered by social security, 2017-2018.

Region/Province 2017 2018

Target Actual Target Actual

Calabarzon 316,746 364,898 332,583 369,907

Cavite 101,069 110,404

Batangas 85,656 85,258

Laguna 80,325 77,194

Quezon 38,094 37,013

Rizal 59,754 60,038 Number of distressed and undocumented Overseas Filipino Workers (OFWs) provided with social welfare services increased. Distressed and undocumented OFWs provided with assistance slightly increased from 502 to 566 from 2017 to 2018. While the goal is to reduce the number of distressed and undocumented OFWs, the accomplishment is still higher than the target by 66 OFWs. The number of beneficiaries went up due to the occurrence of Middle East financial distress in which affected OFWs were from Cavite, Laguna and Rizal and the undocumented OFWs which are affected by the amnesty for violators of residency law in Kuwait. The effort to assist distressed and undocumented OFWs was a result of various government interventions on international migration including Balik Pinas, Balik Hanap Buhay Program of DOLE, financial assistance, soft loans, shelter assistance and counseling services provided by concerned agencies and provincial one-stop migration resource centers. Number of families with child laborers provided with livelihood assistance decreased. The families with child laborers provided with livelihood assistance declined from 112 families in 2017 to 100 families in 2018. The gains in reducing the number of families with child laborers can be attributed to continued convergence of DOLE and DSWD and coordination and awareness campaign on child labor profilers at the Barangay level. The new guidelines of DOLE for livelihood grants to avoid duplication of beneficiaries with those already included in the 4Ps also resulted to targeted provision of livelihood assistance only to those eligible beneficiaries. Informal sector workers provided with emergency employment increased. The workers in the informal sector provided emergency employment and/or income augmentation through livelihood assistance slightly increased from 10,609 to 10,965 from 2017 to 2018. The increase can be attributed to partnership with LGUs who acted as accredited Co-Partners (ACPs) and through monitoring of assisted projects.

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 58

Managing Environmental and Natural Risks 100 percent of disaster affected households were assisted to early recovery stage. The sustained assistance to disaster affected households can be attributed to the conduct of regular monitoring of food and non-food items to maintain the appropriate quantity of stockpile and ensure the quality of the items. Further, organized community volunteers ensured their availability and commitment that have contributed to the sustained assistance. These volunteers regularly extend their time and effort in repacking and dispatching of goods with the strong coordination with LGUs. Moreover, the regular provision of technical assistance to LGUs on warehouse management, their compliance to the requirement in the construction of warehouses and the collaborative efforts between the LGU and the concerned agencies for effective implementation of food-for-work led to the sustained initiative and accomplishment of the targets. Access to land increased. Area distributed under the Comprehensive Agrarian Reform Program increased and surpassed its target. It increased from 1,083 has in 2017 to 2,494 has in 2018 (Table 11.4). The provinces except for Laguna contributed to the attainment of the target since distribution of land in Laguna province was hampered by problematic landholdings. Further, agrarian reform communities (ARCs) served was sustained at 122 from 2017 to 2018 while the number of new agrarian reform beneficiaries’(ARBs) membership in ARCs increased from 1,422 in 2017 to 1,802 in 2018 surpassing its target in 2018 by 726 new ARBs. Table 11.4 Area distributed and already covered under CARP, 2-17-2018

Region/Province 2017 2018

Target Actual Target Actual Calabarzon 3,788 1,083 1,516 2,494

Cavite 121 43 58 214 Batangas 362 98 50 128 Laguna 122 135 134 26 Quezon 3,113 716 1,189 1,895 Rizal 70 92 85 231

However, in terms of the number of ARB organizations served, the region fell short by 5 ARB organizations on its target for 2018. It also posted a slight decline of organizations served from 267 in 2017 to 266 in 2018. The increased performance of the region in majority of its land access indicators can be attributed to regular conduct of consultation dialogue and program implementation review with LGUs and stakeholders, as well as synchronization of targets at the start of the year. Meanwhile, ARCs are sustained through various program interventions at all levels through the ARC development plan.

Dealing with hazards and human-induced shocks Zero death, missing and injured persons due to natural and human-induced disasters not yet achieved. Deaths and injured persons due to natural disasters slightly decreased from 2017 to 2018 while a significant increase in deaths and injured persons due to human induced disasters were noted from 2017 to 2018. The opposite can be noted for missing persons such that missing persons due to natural disasters increased from six in 2017 to 20 in 2018 while missing persons due to human-induced disasters were reduced to three in 2018 from eight in

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 59

2017. The relative improvement in the number of affected population due to natural disasters can be attributed to awareness and vigilance of the population on the managing risks brought about by natural disasters, the availability of accurate warning systems and the expansion of sectoral disaster risk reduction, and management (DRRM) trainings. On the other hand, the number of affected population due to human-induced disasters increased from 2017 to 2018 mostly because of vehicular accidents and boat capsizing. Table 11.5 Death, injured and missing persons due to natural and human-induced disasters, 2017-2018.

Disaster Casualties 2017 2018

Actual Actual Natural

Death 20 15 Injured 6 20 Missing 26 10

Human-Induced Death 19 95 Injured 8 3 Missing 412 864

The number of poor households that received cash-for-work for Climate Change Adaptation and Mitigation (CCAM) increased. Households that received cash-for-work increased from 32,262 in 2017 to 32,867 in 2018. Laguna Province has the highest increase in number of beneficiaries from 3,690 in 2017 to 10,104 in 2018 while Rizal Province has the biggest decline in number of beneficiaries from 17,428 households in 2017 to 5,584 households in 2018. The overall increase in household beneficiaries can be attributed to DSWD’s guidance to LGUs in coordinating with beneficiaries and assistance on how the LGUs can sustain the project even without augmentation fund from the agency. The DSWD also capitalized on the private sector’s expertise in project implementation and monitoring and public-private partnerships in pursuing sustainability of DRRM projects. Table 11.6 Poor households that received cash-for-work for CCAM, 2017-2018

Region/Province 2017 2018

Target Actual Target Actual Calabarzon 42,000 32,262 30,000 32,867

Cavite 2,460 3,828 Batangas 5,074 7,337 Laguna 3,690 10,104 Quezon 3,610 6,014 Rizal 17,428 5,584

Moving Forward Looking at the performance of the region in the implementation of universal and transformative social protection programs, it can be noted that out of 26 indicators, 16 showed improved or sustained performance while the rest failed to meet the targets for 2018.

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 60

Despite the significant achievements of the Region in reducing vulnerability of individuals and families towards building resiliency, several challenges still need to be addressed including reducing the number of child laborers, expanding the coverage for universal health care and risk of graduating 4Ps beneficiaries to fall back again to poverty. There is also a need to strengthen efforts in documenting and assisting undocumented and distressed international migrants while more opportunities are needed to provide emergency employment for workers in the informal sector. Moreover, the gains of social pension coverage and early recovery to disaster affected households need to be sustained while PWD concerns should also be prioritized along with interventions for senior citizens. Additionally, the challenge of mitigate and manage the risks caused by natural and human-induced disaster needs to be addressed.

Recommendations

The planned strategies identified in the previous development report as well as the recommendations that focus on achieving the planned targets to reduce vulnerability of individual and families are the following:

Challenges Planned Strategies and Programs,

Projects and Activities Implementing Agency(ies)

To mitigate risks faced by vulnerable groups Pockets of high poverty incidence in the region

Continuous implementation of the program 2018 and beyond Expand coverage of 4Ps to include newly identified poor households

DSWD, DOLE

High prevalence of child labor Institutionalization and sustainability of SHIELD project and promote its replication in other LGUs Reactivation of the Calabarzon Child Labor Committee Harmonization of existing child labor profile/database for efficient targeting of prospective child laborers Enjoin all LGUs to activate their Barangay Child Protection Council as mandated by law to strictly monitor the movement/activities the children under their municipality Strict monitoring, reporting, and fast response on child labor cases. Study the impact of “KASAMA Program” (Kabuhayan Para sa Magulang ng Batang Mangagawa)

DSWD, DOLE

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 61

Challenges Planned Strategies and Programs,

Projects and Activities Implementing Agency(ies)

Graduating CCT household beneficiaries still at risk of falling to poverty

Formulate and implement a transition program for graduating 4Ps beneficiaries in partnership with other concerned agencies to ensure that beneficiaries have the permanent means to stay out of poverty. Determine social welfare and development index for implementation in 2019 and encourage voluntary exit of families that achieved sufficiency. Conduct of impact evaluation of Program Implementation and assessment of status of household beneficiaries.

DSWD

Access and coverage of social pension and services for senior citizens and PWDs needs to be expanded

Validation and creation of database or registry of indigent beneficiaries. Provide social pension access to aging OFWs. Check conflict of Bill for Universal Social Pension with SSS. Also prioritize PWD concerns in the programs and services under the 1 percent allocation for PWDs and Senior Citizens.

NSWIP SSS

Declining universal health coverage

Strictly implement and monitor the No Balance Billing (NBB) Policy. Pursue the recommendations of the policy review on NBB. Expand coverage of health insurance and membership in PhilHealth. LGUs to ensure sufficient medical supplies, buffer stocks, and standby funds in government hospitals.

PhilHealth

To manage economic, environmental and natural risks Increasing number of distressed OFW

Intensify reintegration program for OFWs. Develop more sustainable programs applicable for forced repatriation aside from financial assistance. Provision of psychosocial support prior to administration of intervention.

DOLE, OWWA, POEA, DSWD

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 62

Challenges Planned Strategies and Programs,

Projects and Activities Implementing Agency(ies)

Strengthen on-site assistance for distressed OFs. Assist the establishment of formal OF support groups to help vulnerable OFWs Intensify data collection efforts overseas and at the regional offices. Strengthen networks with LGUs and tie ups with DSWD and other concerned agencies as well as harmonization of OWWA and DSWD programs. Delineation of work for distressed and undocumented migrants without shelter.

Lack of data on the workers from informal economy and insufficient support/ assistance for informal workers

Formulate and implement an integrated approach for the transitioning of workers from the informal to the formal economy based on the ILO Recommendation No. 204. Regular funding for TUPAD program and/or emergency employment for ease of fund access during emergencies.

DOLE

Need to sustain gains in land access

Prioritize landholdings especially on land survey for procurement to avoid delay in the next land process. Institutionalization of target synchronization and dialogue with CARP implementing agencies. Sustain ARC interventions especially those ARBOs with lowest maturity level as well as maintaining ARBOs with level 5 and encourage them to be a microfinance provider. Continued program interventions to all ARBs. Involvement of ARBs in program implementation and attract those ARBs with awarded EP/CLOAs.

DAR

To deal with natural hazards Increasing intensity of natural disasters

Intensify trainings on DRRM and increase coverage of DRRMC trainings.

RDRRMC, OCD

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Chapter 11: REDUCING VULNERABILITY OF INDIVIDUAL AND FAMILIES 63

Challenges Planned Strategies and Programs,

Projects and Activities Implementing Agency(ies)

Strengthen coordination and partnership with LDRRMCs. Develop more innovative warning and warning systems. Prioritize LDRRM funds for DRRM programs, projects and activities and appointment of DRRM officers.

Increasing incidence of human-induced disasters

Strict implementation of traffic rules. Validate and strengthen reporting and monitoring of deaths, missing and injured persons to avoid double counting. Strict implementation of proper gear for riders.

RDRRMC, OCD

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Chapter 12: BUILDING SAFE & SECURE COMMUNITIES 64

Chapter 12

Building Safe and Secure Communities

This Chapter discusses the performance of the housing sector in terms of creating a safer and secure community through the provision of direct and indirect housing assistance. Figure 12.1 Strategic Framework for Building Safe and Secure Communities

Accomplishments

Direct Housing Assistance Direct housing assistance refers to direct provision of housing units or loans such as housing for informal settler families, community mortgage and end-user home financing. Approved Community Mortgage Program loan applications tripled. Approved loan applications almost tripled from 1,023 informal settler families in 2017 to 2,994 informald settler families in 2018. This increase may be attributed to new developed modalities, like the vertical Community Mortgage Program for vertical housing and to the newly established partnership of local government units with non-government organization mobilizers who assist families in organizing themselves into Community Associations to be qualified beneficiaries of the program. Housing loan availment increased. Housing loan availment likewise increased by 8.94 percent from 43,590 in 2017 to 47,487 in 2018. The competitive interest rate of 3 percent for Affordable Housing Loan Program and 5.375 percent for End-user Financing Program as well as regular conduct of orientations for developers and pre-evaluation of housing loan

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Chapter 12: BUILDING SAFE & SECURE COMMUNITIES 65

documents while units are being constructed may have contributed to the increase in housing loans. Majority (64.7 percent) of the approved housing loans were for low cost housing and socialized housing (34.75 percent). Figure 12.2. Direct housing assistance 2017-2018

Indirect Housing Assistance

Indirect housing assistance includes provision of guaranty cover for investment and credits to housing, issuance of license to sell, provision of technical assistance for the preparation of Comprehensive Land Use Plans (CLUPs) and securitization of housing loan receivables. Approved new guaranty enrolments more than doubled. Approved new guaranty enrolments increased from 7,902 in 2017 to 16,036 in 2018 with the improvements in marketing strategies, such as, provision of discount premiums and rebates, which increased bank clients. The approved guaranty enrolments in 2018 reached 13,984 or 87 percent for low cost housing with the policy requirement that at least 70 percent of enrolments should be socialized and low cost housing.

05000

100001500020000250003000035000

CMP SocializedHousing

Low-CostHousing

MediumCost

Housing

OpenMarketHousing

Ava

ilme

nt

Housing Program

Direct Housing Assistance

2017

2018

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Chapter 12: BUILDING SAFE & SECURE COMMUNITIES 66

Figure 12.3 New guaranty enrollments, 2017-2018

License to sell issued declined. The number of license to sell issued declined from 232 in 2017 to 227 in 2018 as developers could not comply with the establishment of socialized housing projects which is a requirement prior to issuance of license to sell. LGUs provided CLUP assistance increased. LGUs provided with technical assistance in the preparation of their CLUPs increased from 35 in 2017 to 50 in 2018. The inclusion of CLUP as one of the requirements for the Seal of Good Local Governance increased the demand for assistance in CLUP preparation. Housing loan receivables purchased declined. Housing loan receivables purchased decreased from 2,044 in 2017 to 257 in 2018 as borrowers would prefer housing loans offered by Home Development Mutual Fund and banks.

Moving Forward

The need for accurate and updated data on housing is a fundamental issue that needs to be resolved immediately to better estimate housing backlog and improve targeting and profiling of beneficiaries as well as monitoring accomplishments of housing projects. The newly created Department of Human Settlements and Urban Development is expected to help in building safe and secure communities. The new deprtment is mandated to craft a national strategy to address provision of adequate and affordable housing to all Filipinos and to address housing sector challenges such as mismatch in housing demand and supply and the threats of natural and human-induced disasters. The implementation of Building Adequate, Livable, Affordable and Inclusive or “BALAI” Filipino Communities program aims to strengthen partnership among key shelter agencies and housing developers to narrow down the housing backlog.

0

2000

4000

6000

8000

10000

12000

14000

Indicators SocializedHousing

Low-CostHousing

MediumCost

Housing

OpenMarket

Enro

llme

nts

Type of Housing Loan

New Guaranty Enrollments

2017

2018

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Chapter 12: BUILDING SAFE & SECURE COMMUNITIES 67

Recommendations

Challenges Recommended Strategies Implementing Agency

Delay in the issuance of barangay clearance and site development and building permits for High Density Housing Program (HSHP)

Strengthen partnership between Social Housing Finance Corporation and LGUs for efficient implementation of HSHP and to ensure that HSHP is consistent with LGUs priorities

HUDCC/DHSUD, SHFC, LGUs

Lack of accurate and updated data on the housing sector (i.e. total households, number of informal settler families, and number of households living in danger zones)

Establishment of centralized database system for key shelter agencies which shall include the profiling of informal settler families

Adopt the National and Urban Development and Housing Framework 2917-2022 and the National Resettlement Framework by including supportive policies, programs and projects in local development plans and investment programs

HUDCC/DHSUD

Low compliance of LGUs in the preparation of Local Shelter Plan (LSP) which provides the details on current and projected housing needs and strategies to address housing and urban development concerns.

Intensify provision of technical assistance on the formulation of LSPs

Include approved LSP and its accomplishment report in the criteria for the Seal of Good Local Governance

HUDCC/DHSUD, LGUs

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Chapter 13: REACHING FOR DEMOGRAPHIC DIVIDEND 68

Chapter 13

Reaching for the Demographic Dividend

The demographic dividend is the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older). During this period, the economy can enjoy a boost economic growth with more of its people are productive than those who are dependents or the non-working population. The region can reap the effects of the demographic dividend with more talented and skilled people in the labor force. Major factors that affect demographic dividend are fertility and mortality rates. Meanwhile, factors to maximize the benefits of demographic dividend are improved human capital, employment opportunities and savings build-up. This chapter highlights the 2018 performance of the region in terms of demographic transition and maximizing the gains from demographic dividend. The priority measures are improving human capital of the youth. Figure 13.1 Strategic Frameworks to Reach for the Demographic Dividend

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Chapter 13: REACHING FOR DEMOGRAPHIC DIVIDEND 69

Accomplishments

Fertility rates reduced An average of 2.6 babies were born alive to women aged 15-49. Based on the 2017 National Demographic and Health Survey, the total fertility rate of women aged 15-49 years old was recorded at 2.6 percent which is within the 2.8 target. This can be attributed to the preventive measures being conducted by different agencies and LGUs, such as responsible parenthood/family session, teenage pregnancy symposium, film showing, among others. More families observed family planning through the use of modern contraceptives. More families used modern contraceptives as a means of modern family planning as observed in the increase of prevalence rate from 37.12 percent in 2017 to 47.51 percent in 2018, meeting the 35 percent target. The 10.4 percentage points increase in the prevalence rate can be attributed to the implementation of the Executive Order 12, s. 2017 or Zero Unmet Need for Modern Family Planning, increase in the advocacy to local government units (LGUs), and multi-stakeholder engagement on the modern family planning. Quezon Province has the highest prevalence rate on use of contraceptives while Rizal has the least at 33.16 percent. Table 13.1. Modern contraceptives prevalence rate (in percent) by province, 2017-2018.

Province

Modern Contraceptive Prevalence Rate (%)

2017 2018

Target Actual Target Actual

Calabarzon 30 37.12 35 47.51

Cavite 37.12 47.62

Laguna 32.37 49.66

Batangas 41.23 43.71

Rizal 45.58 33.16

Quezon 37.28 68.87

Source: Department of Health Region IV-A

Mortality rates declined Crude birth and death rate decreased in 2018 as compared to 2017. Crude birth rate decreased from 12.2 percent in 2017 to 11.16 percent in 2018 meeting the 19.0 percent target. Meanwhile, crude death rate decreased from 3.84 percent to 3.64 percent compared from the previous year, meeting the 6.0 percent target. This implies that the population, in general, is living in a relatively healthy environment with the assistance of government programs. Fewer mothers die during pregnancy and child birth. Maternal mortality ratio (MMR) reduced from 49.13 deaths per 100,000 livebirths in 2017 to 39.23 deaths in 2018 which is within the 70 deaths target for 2018. The decrease in the MMR can be attributed to PhilHealth’s Maternity Care Package, accreditation of health facilities, and ongoing improvement and engagement of private facilities in service delivery networks. Among the provinces, Cavite posted the highest MMR at 73.80 deaths per 100,000 livebirths exceeding the target while Quezon posted the least at 9.12 deaths. Quezon is also the most improved

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Chapter 13: REACHING FOR DEMOGRAPHIC DIVIDEND 70

among the provinces in terms of the MMR, from 86.35 in 2017 to 9.12 in 2018. The 77.23 difference can be attributed to the conducted maternal death review (MDR), among others. The MDR provided information on the medical, social, and health system factors to address the gaps in health and birthing service provisions. Further, data cleaning and validation contributed in coming up with Quezon’s accurate data. Table 13.2. Maternal mortality ratio by province, 2017-2018.

Province

Maternal Mortality Ratio

2017 2018

Target Actual Target Actual

Calabarzon 70 49.13 70 39.23

Cavite 46.49 73.80

Laguna 39.22 31.83

Batangas 43.01 22.87

Rizal 46.51 43.97

Quezon 86.35 9.12

Source: Department of Health Region IV-A Note: computation of MMR is per 100,000 livebirths Fewer children under-five years old died in 2018. The under-five mortality rate decreased from 13.40 deaths per 1,000 livebirths in 2017 to 13.37 deaths per 1,000 livebirths in 2018, which is within the 25.0 target for 2018. Quezon has the highest contribution with 22.02 deaths per 1,000 livebirths while Batangas has the least at 7.78 deaths per 1,000 livebirths. Quezon Province’s decrease in the under-five mortality rate can be attributed to its First 1,000 Days of Life Program which gives health interventions and services to pregnant mothers from conception to two years old as the first 1,000 days is important in child’s health and brain development. Also, the continuous and strengthened advocacy campaign and promotion of maternal and child health programs in communities and schools lessened maternal and child death. Table 13.3. Under-five mortality rate by province, 2017-2018.

Province

Under-five Mortality Rate

2017 2018

Target Actual Target Actual

Calabarzon 25 13.4 25 13.37

Cavite 13.65 14.1

Laguna 10.87 12.75

Batangas 9.25 7.78

Rizal 10.29 12.87

Quezon 18.75 22.02

Source: Department of Health Region IV-A Note: computation of U5MR is per 1,000 livebirths

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Chapter 13: REACHING FOR DEMOGRAPHIC DIVIDEND 71

Quality of human capital improved Improving the quality of human capital is key to increase productivity and household income. This is critical in harnessing the demographic dividend. Improving human capital starts from the womb as healthy babies grow into healthy children. Healthy children have more chances of finishing school and developing their skills into becoming productive and smart adults. A quality education system is already in place to produce educated and skilled labor force with the implementation of K-12 program. Increased infrastructures on education and health facilities are covered in the Build, Build, Build Program to accommodate classroom and health service demands which will be discussed in Chapter 19. Stunting is prevalent in the region. In 2015, there were 27.7 percent of stunted children under five years old which is higher than the 25.2 percent in 2013 while wasting recorded 7.6 percent in 2015 and 8.8 percent in 2013. For ages 10-19 years old, 26.2 percent are stunted, 13.9 are wasted, 10.10 percent with chronic energy deficiency, and 11.8 percent were obese. Meanwhile, for 2013, there are 27.1, 15.4, and 9.6 percent, stunted, wasted, and obese aged 10-19 years old, respectively. Stunting is usually attributed to low birth weight which usually happens when a mother is undernourished or too young to bear children. Young adolescents have immature reproductive system. Further, teenage mothers, especially those from low-income household, have less access to prenatal check-up and health services.

Table 13.4. Prevalence rate of stunting, wasting, and obesity of children less than 5 years old and aged 10-15 in Calabarzon, 2013 & 2015.

Less than 5 Years Old

2013 2015

Stunting 25.2 27.7

Wasting 8.8 7.6

Aged 10-15 Years Old

Stunting 27.1 26.2

Wasting 15.4 13.9

Obese 9.6 11.8

Source: 2015 National Nutrition Survey, DOST-FNRI Kinder to Grade 12 enrollment rate increased. For school year (SY) 2018-2019, the enrollment rate increased by 3.50 percent. Enrollees for SY 2017-2018 and 2018-2019 were recorded at 3,678,110 and 3,806,792, respectively. Table 13.5. Number of Enrollees in Calabarzon, School Years 2017-2018 & 2018-2019.

Source: Department of Education Region IV-A

School Year Kinder Elementary Junior High School

Senior High School

Total

2017-2018 320,518 1,844,333 1,112,886 400,373 3,678,110

2018-2019 343,349 1,851,586 1,177,847 434,394 3,807,176

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Chapter 13: REACHING FOR DEMOGRAPHIC DIVIDEND 72

Targets on Elementary and Junior High School completion rates were met. Highly skilled and educated labor force is one of the most critical aspects to reap the benefits of demographic dividend. Thus, it is important for the labor force to have completed quality education to maximize their productivity. In Calabarzon, completion rates were 98.4 percent and 90.7 percent for elementary and junior high school, respectively. Elementary completion rate decreased by 0.71 percent while the junior high school completion rate increased by 5.70 percent. Table 13.6. Elementary and Junior High School Completion Rates, SY 2016-2017 & SY 2017-2018.

Source: Department of Education Region IV-A

Moving forward Calabarzon, with its 14.4 million people will be among the first regions to transition to the demographic sweet spot. The region must ensure the continuous implementation of programs and projects on reducing the total fertility rate (TFR), adolescent and unwanted pregnancy by promoting existing and modern contraceptives. Implementation of the First 1000 Days Act will help produce healthy children and reduce incidence of stunting. Secondary education completion rate must be improved for students’ transition to tertiary education to achieve an educated work force. This will come to a realization with the implementation of zero tuition for college education by government educational institutions. Enabling mechanisms for foreign investments are being pursued to create quality jobs for the educated work force. The high productivity of the labor force upon reaching the demographic dividend and promotion of financial literacy will result to increased savings, thus the banking sector should be ready to accommodate new accounts. Current challenges need to be addressed to avoid hindrances before and during demographic dividend. These challenges are: a) high fertility rate of poor households, and b) unemployment and underemployment rate of young workers ages 20-24. In order to reach and eventually reap the benefits of the demographic dividend, strategies must be focused on the following: 1) reducing fertility rate to achieve the 2.1 fertility rate that is consistent with stable population; 2) reducing the incidence of teenage pregnancy should also be pursued for young female learners to finish their education and participate in the labor force; 3) improving the quality of youth human capital (education and health) to improve skills and readiness to high paying jobs; 4) creating more jobs and economic opportunities to achieve higher youth employment rate and low dependency ratio; and 5) enabling financial environment to promote and increase savings during working years to serve as buffer during retirement years.

SY 2016-2017 SY 2017-2018

Elementary 99.1% 98.4%

Junior High School 85.81% 90.7%

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Chapter 13: REACHING FOR DEMOGRAPHIC DIVIDEND 73

Recommendations The following are the recommendations to reach and harness the demographic dividend.

Challenges Recommended Strategies Implementing Agencies

Increasing unmet need for family planning

Streamline, fast track, and decentralize procurement of FP commodities

Intensify communication campaign on modern FP and responsible parenting

Strengthen the population management and reproductive health policies and programs: -address unmet demand for family planning and unwanted pregnancies -increase the age at first birth -increase birth spacing

Increase logistics of FP commodities Increase multi-stakeolder participation Employ trained FP/RPRH focals in health facilities

DOH, PoPCom, LGUs

Increasing cases of teenage pregnancy

Expand the implementation of Youth Formation and Career Guidance Program

Enhance DepEd’s Reproductive Health Curriculum Intensify the implementation of Adolescent and Youth

Health Program Intensify the information and education campaign on

values formation and sexuality Improve access to reproductive health

DOH, PoPCom, DepEd, LGUs

High prevalence of stunting and wasting among children under five years of age

Expand the health care program focusing on infant, young women, and mothers

Continous conduct and advocacy on child health programs

Increase health practioners and human resource Strengthen IEC on health and nutrition Intensify advocacy on healthy lifestyle among mothers

and children Rigorous implementation of the First 1K Improve nutrition and acces to health services

NNC, LGUs

High youth unemployment Job-skill mismatch among SHS and college graduates

Improve access to quality education Strengthen government and private sector

partnerships Strengthen academe and industry linkages Facilitate employment of fresh graduates through Job

Fairs and facilitation services Expand the reach of JobStart program

DOLE, DepEd, CHED, SUCs

Low savings rate among household

Mainstream the implementation of economic and financial literacy programs

Improve access to different financial products

BSP and other financial institutions

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 74

Chapter 14

Vigorously Advancing Science,

Technology, and Innovation

This chapter assesses Calabarzon’s performance in promoting science, technology, and innovation (STI) in the region. Four subsector outcomes are monitored: 1) STI in the agriculture, industry, and services sectors improved; 2) investments in technology-based start-ups, enterprises, and spin-offs increased; 3) creative capacity for knowledge and technology generation, acquisition, and adoption enhanced; and 4) open collaboration among actors in the STI ecosystem strengthened (Figure 14.1). Figure 14.1 Strategic Framework to Advance Science, Technology and Innovation

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 75

Accomplishments

Technology adoption promoted and accelerated

STI utilization in the agriculture, industry, and services sectors increased

Technology To hasten the utilization of STI in Calabarzon, the promotion and dissemination of information on the new or available technologies that can improve the productivity of agriculture, industry, and services sectors should be rigorous to reach more adopters. Number of Promoted Technologies Increased. There was an increase of 210 percent in the number of technologies promoted, from 51 in 2017 to 158 in 2018. The increase is attributed through the conduct of various promotional activities such as seminars, technical trainings, fora clinics, and consistent media presence during fairs, exhibits, and caravans. The establishment of a regional media network also contributed to the trend, as well as the distribution of promotional collaterals, and news feeds on technologies including programs and services offered by the government. The implementation of a Communication Plan on STI for audiences in geographically isolated and disadvantaged areas (GIDA) communities likewise contributed to the adoption of new technologies. Number of Adopted Technologies Increased. In terms of the number of technologies adopted/utilized, there was a 27 percent increase was achieved, from 44 in 2017 to 56 in 2018. Most of these technologies were from the support mechanisms such as the Small Enterprise Technology Upgrading Program (SETUP), Community-Based Projects (CBPs) and Community Empowerment through Science and Technology (CEST). The MSMEs were assisted under the SETUP to adopt commercially available and/or publicly-funded technologies to increase competitiveness through operational efficiency and productivity. Local Grants-In-Aid Projects also contributed to improve their capacity and productivity in AFF (Agriculture, Fisheries, and Forestry), food processing, metals and engineering, and GDH (gifts, decors, and handicrafts). Some of the notable technologies adopted include Science & Technology Academic and Research-Based Openly Operated Kiosk Stations (STARBOOKS), Carrageenan Plant Growth Promoter, Tubig Talino and Complementary Feeding Program, Tsunami Early Warning System and Automatic Rain Gauge (ARG). Number of Technology Adopters Increased. Majority of the reported adopters of the STI came from the LGUs, particularly in Quezon Province. The increase of 183 percent, from 40 in 2017 to 113 in 2018 was obtained through the Community Empowerment through Science and Technology (CEST) Program.

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 76

Innovation Innovations grew as reflected by the increasing applications for intellectual property (IP). The number of Filipino utility models registered increased from 18 in 2017 to 45 in 2018. There were also 81 Filipino industrial designs registered in 2018. The increase not only means rising productivity of the scientific and creative communities but a growing recognition of the economic added-value of intellectual property in commercial activity and in R&D. The good performance of promoting innovation was brought about by IPOPHL’s2 strategies for closer engagement with the academe, businesses and industry. In 2018, IPOPHL deployed its full suite of online filing systems for trademarks, invention, utility models and industrial design, allowing easier filing for applicants. There were also numerous free, basic orientation seminars for the public, and more advanced patent drafting workshops in collaboration with universities that are part of the Innovation and Technology Support network.

Investments in STI-based start-ups, enterprises, and spin-offs increased

Provision of support mechanisms for start-ups and enterprises. Accessibility of support mechanisms for start-ups and MSMEs is essential to encourage firms to address their technical problems through adoption and investing in STI programs and interventions. The major support mechanisms are technology interventions in products, services, equipment, knowledge diffusion and technology. Fifty-six new projects, amounting to PHP 82.40 million worth of technology assistance, were approved in 2018 under the SETUP. The new projects provide MSMEs with technology-based solutions to improve quality of products and services, increase sales and advanced production capability and skills upgrading of human resource. Forty-two new projects worth PHP 12 million of the same assistance under the Community-Based Projects (CBPs) were provided in 2018 for start-ups, people’s and civic society organizations. Number of S&T interventions provided grew by 61 percent, exceeding the target of 554. The strategy of providing packaged S&T increased the number of customers (firms) assisted from 1,370 in 2017 to 2,877 in 2018 or 110 percent increase. Majority of these customers were beneficiaries of various capacity building interventions. Most of the intervention and assistance provided was capacity building through provision of technology trainings, fora clinics, seminars, consultancy services such as Manufacturing Productivity Extension Program, Food Safety Training, Cleaner Production/Energy Audit, Biogas, Testing and Calibration Services, and Packaging and Labelling Assistance.

2 IPOPHL is the government agency mandated to administer and implement State policies on IP to strengthen

the protection of IP rights in the country.

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 77

However, the number of jobs generated failed to reach the 2018 proposed target of 2,750. It decreased to 2,643 from 2,866 in the previous year. The decrease was attributed to the insufficient SETUP funds for the current year. In addition, there was difficulty in accounting for the “backward and forward” jobs created. Also, the automation of manual processing of MSME led the beneficiaries to reduce their need for manpower. Provide access to science and technology information and services. The S&T promotional activities conducted in 2018 increased to 5,301 from 1,039 in 2017 through the different media platforms and mobilization of provincial information officers to reach communities needing technological interventions. The major S&T promotional activities were Teknolohiya at Inobasyon, Kaagapay ng Micro Enterprises (TIKME), National and Regional S&T Week, S&T Caravans, and Regional Invention Contest and Exhibit.

Stimulate innovation

Creative capacity for knowledge and technology generation, acquisition, and adoption enhanced Promote critical thinking and innovative behavior. The culture and value of critical thinking and innovative behavior especially among the youth is important to encourage interest in research and technology design. The promotion of STI is incorporated in the teaching strategies for basic and secondary education. In 2018, the 21st Century Learning Environment (21st CLEM) was pilot-tested to support the DepED's K-12 Curriculum and the Science, Technology, Engineering, and Mathematics (STEM) Track.

The 21st CLEM provides facility for mobility and connectivity to teachers enabling them to effectively facilitate student learning and create productive learning environments where students can develop the skills they need at present and the future. Enhance the STI infrastructure. Providing an environment where researchers and innovators can translate their ideas into working prototypes would help foster STI culture. In 2018, two R&D Centers were established in addition to the four innovation centers being maintained and monitored by DOST Region IV-A. The two R&D Centers are the Regional Design and Creation Hub for Innovation in MSMEs and Education (RDCHIME) and the Center for Hazard and Environmental Resource Mapping (CHERM). The Regional Design and Creation Hub for Innovation in MSMEs and Education (RDCHIME) aims to strengthen partnership/ties between DOST and academic sector in enhancing design, animation and creative industry in the region. The Center for Hazard and Environmental Resource Mapping (CHERM) aims to empower and develop resilient communities through an S&T based hazard prevention and mitigation system harmonizing/integrating maps into layers or overlay which can be customized for LGUs, investors, developers, and others.

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 78

On the other hand, the four innovation centers include two Innovation, Design and Development laboratories in partnership with Laguna State Polytechnic University in San Pablo City, Laguna and Cavite State University in Rosario, Cavite; and two Food Innovation Centers in partnership with University of the Philippines Los Baños in Los Baños, Laguna and Batangas State University in Batangas City. Support the region’s research and development agenda. The Exchange of Probes, Learnings and Outputs of Researches (EXPLORE) System enables researchers of consortia member-agencies, SUCs and research institutions to align their proposals in relation to the conducted/on-going researches. This minimizes duplication and saves research funds. Incentives are also provided that encourage researchers/students to conduct good quality researches, thus elevating science culture in universities and schools. A total of 481 researches on copyright, patents, publications and utility models (Table14.1) have been uploaded in the EXPLORE System in 2018. Table14.1 Inventory of R&D Work Uploaded in EXPLORE

R&D Category Number

Copyright 104 Patents 8 Publications 148 Utility models 6

TOTAL 481 Moreover, a total of six R&D proposals amounting to PHP 173.40 million were endorsed by DOST to the Philippine Council for Industry, Energy, and Emerging Technology Research and Development for funding. The proposals below were submitted by member agencies and SUCs of Southern Tagalog Consortium for Industry and Energy Research and Development:

1. De La Salle Health Science Institute’s Establishment of the Innovation Center for TB

Elimination (Health) 2. Batangas State University’s Establishment of the National Center for Oceanograhic

Research and Aquatic Life Sciences in Verde Island Passage (Environmental Science) 3. RDCHIME (Industry & Energy) 4. 21st CLEM (Education) 5. CHERM (DRRM) 6. Optimization of the Operational Capabilities of Hydromet Sensors in Line with

International Standards for Effective Weather, Flood Warning and Application to Research Project (Optimization Project) (ICT)

A total of four DOST initiated need-driven R&D projects were implemented amounting to PHP 200.73 million. These projects were: Sensing Environmental Parameters through Telemetry (SENTRY), Deployment of Early Warning Systems (DEWS), 21st CLEM and RxBox in collaboration with partner agencies in the STI ecosystem.

In terms of youth involvement in S&T, the number of Science, Technology, Engineering, and Mathematics (STEM) graduates in HEIs increased from 10,050 in 2017 to 11,495 in 2018 (Table14.2).

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 79

In contrast, the number of enrolees under STEM of higher education institutions decreased from 66,926 in 2017 to 54,161 in 2018. The reason is that the students have enrolled to other K-12 programs and that some state universities and colleges (SUCs) do not submit K-12 data to CHED. Table 14.2 Enrollees and graduates under STEM in HEIs, 2017 and 2018

2017 2018 Graduates 10,050 11,495 Enrollees 66,926 54,161

On the other hand, the enrolees in high school under STEM for 2017 were 14,961.3 There are no STEM graduates yet in high school for 2018.

Open collaboration among actors in the STI ecosystem strengthened Establish strong linkage between STI actors. The strong linkage between research institutions and technology adaptors accelerate the development of technologies and innovation. Similarly, academe-industry linkage will also be strengthened to achieve effective transfer of appropriate technology and advance skills needed by industries through an improved research-extension continuum. A total of 13 ongoing STI collaborations in the region is spearheaded by DOST Region IV-A (Table 14.3). It includes the sectors of industry, health, education, ICT, and DRRM. Table14.3. Ongong STI Linkages in Calabarzon

Sector STI Collaborations in Calabarzon Industry 1. CEST Value-Chain Approach for Island Economy Development

strengthened the convergence among NGAs and LGUs through creation of an enabling environment for economic growth of GIDA communities.

2. Establishment of Makapuno Island Project fostered strong

partnership among government agencies, NGOs and private sectors, rallying for the common goal of establishing a Makapuno Island in Alabat, Quezon.

3. Technical assistance on laboratory testing/analyses for selected

MSMEs to assist MSMEs in the region in partnership with DTI Region IV-A.

4. Halal Verification Lab aims to strengthen and promote the Halal industry in the country through Republic Act No. 10817 or the “Philippine Halal Export Development and Promotion Act”. Collaboration with stakeholders of Halal are the certifying bodies, Muslim organizations, regulatory agencies/government agencies and

3 Data on enrolees in high school under STEM for 2018 are not yet available.

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 80

MSMEs. It was established through the financial support of the Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD).

5. S&T Support for the Development of Rubber Industry in Southern

Tagalog it aims to: a) establish a rubber nursery and budwood garden to supply certified clones to plantations around Calabarzon; and b) eventually become an accredited source of high quality budded seedlings and budsticks across Luzon. It is made possible through the initiatives of UPLB and the Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development of the DOST (PCAARRD).

Health RxBox is a telemedicine device capable of capturing medical signals

through built-in medical sensors, storing data in an electronic medical record (Community Health Information Tracking System–CHITS), and transmitting health information via internet to a clinical specialist in the Philippine General Hospital for expert advice. RxBox aims to provide better health services in GIDA in the Philippines. The project is co-funded by the DOST Region IV-A and partnered with other DOST agencies. It is developed by the UP Manila National Telehealth Center and UP Diliman Electronics and Electrical Engineering Institute.

Education 21st CLEM enhances technological knowledge and skills of educators

and students

ICT Data Analytics-Ready Info Unified System (DARIUS) for Agile Delivery of S&T Services Project aims for faster consolidation of reports and responses, thus creating a stronger linkage within DOST regional offices across the Philippines.

DRRM/Assistance Program for the Environmental Protection through Energy Efficiency and Environmental Management System and Use of Renewable/Alternative Energy:

1. Optimization Project aims for the optimization of the operational capabilities of the instruments, equipment and related facilities installed by the previous projects, in order to maximize utilization suitable for flood warning system and to enable more efficient maintenance and accurate data calibration to conform with the highest standard of hydro-meteorological observations. This is partnership with DOST-ASTI, Philippine Atmospheric, Geophysical and Astronomical Services Administration (DOST-PAGASA), PCIEERD, and DOST regional offices.

2. DEWS project involves the installation of hydrometeorological devices

(such as ARG and water level monitoring station) and early warning systems in different river systems and secondary tributaries to provide data that will be useful in protecting the lives, property and livelihood in various communities. This is in partnership PAGASA and DOST regional offices.

3. SENTRY aims to provide technology support to water quality

monitoring and regulatory functions of agencies and water utility

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 81

companies. This is in partnership with DENR, BFAR, LLDA, LGUs and NGOs.

4. Biogas Technology is a waste management system that promotes

the recovery and use of biogas as alternative energy source to acquire appropriate technology (in compliance with the LGU and DENR regulations), mitigate environmental hazard effects and energy savings.

5. Infrastructure Audit is a need-driven intervention to help LGUs to

conduct infrastructure audit through the use of the infra-audit manual and to institutionalize the practice of auditing structural integrity of buildings against any environmental risks to prevent the loss of life and resources due to structural damage. This is in partnership with Association of Structural Engineers, Office of Civil Defense, among others.

Moving Forward The performance of the STI sector indicates the need to continue the S&T interventions provided by DOST Region IV-A in collaboration with other DOST agencies, SUCs, and other government agencies.

Recommendations

The following are recommended strategies to achieve the subsector outcomes of the STI sector.

Challenges Strategies Implementing Agencies

Low number of IP applications in the region

Intensify IP awareness, education and information initiative campaign for MSMEs in the region through basic orientation seminars, one-on-one consultations/IP cliniquing, patent drafting seminars, and capability building seminar/workshops

Strengthen the implementation of the Trademark Incentive Project called "Juana Make A Mark" to engage the MSMEs in brand developing and IP protection

IPOPHL

Low number of enrolees in STEM in higher education institutions (HEIs)

Intensify CHED Central Office’s capability to require SUCs and HEIs to submit data on enrolment and graduates in their Higher Education Management Information System (HEMIS)

Better promotion of STEM courses in HEIs

CHED, SUCs, HEIs,

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Chapter 14: VIGOROUSLY ADVANCING SCIENCE, TECHNOLOGY, AND INNOVATION 82

Challenges Strategies Implementing Agencies

Provision of scholarship for STEM courses in HEIs

Low number of collaborations between local research institutions and industries; and collaborations with foreign institutions

Strengthen linkage and partnership between research institutions and technology adopters

Encourage increase submission of R&D proposals for local and external funding

Continuous capability building on research and extension

Implement more collaborative and in-house R&D projects.

SUCs, government agencies

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 83

Chapter 15

Ensuring Sound Macroeconomic Policy Calabarzon reached its highest economic growth since 2013 with a 7.3 percent growth in its Gross Regional Domestic Product (GRDP). Calabarzon’s economy is estimated at PhP 1.56 trillion. The Region’s economy has been growing at an annual average of 6.15 percent since 2015. This is the result of the continuous efforts of the government in putting in place a conducive environment for generating more investments and quality employment. In terms of share to the Gross Domestic Product, the Region remains the second biggest contributor to the national economy next to NCR, with a percentage share of 17 percent. While the GRDP growth target was achieved, the growth targets for Agriculture, Forestry, and Fishing (AFF) and Services were not attained. However, strong performance of the industry sector which expanded by 7.9 percent accounted for the attainment of the 2018 GRDP target. Table 15.1 GRDP Growth Rate and Targets, Calabarzon, 2011-2018 (in percent) 2011 2012 2013 2014 2015 2016 2017 2018 GRDP

Target - 7.0 5.5-6.5 5.7-6.7 6.2-7.2 6.6-7.6 5.2-6.8 5.3-7.1 Actual 1.7 7.3 6.7 5.1 5.8 4.8 6.7 7.3

AFF Target 1.2 2.5 2.7-3.7 2.9-3.9 3.0-4.0 3.2-4.2 2.0-3.5 2.2-3.7 Actual 1.2 2.5 3.7 -1.2 2.6 3.4 -0.6 0.7

Industry Target 0.1 6.9 4.5-5.5 4.7-5.7 5.1-6.1 5.5-6.5 5.0-7.0 5.2-7.0 Actual 0.1 7.3 6.3 6.5 5.7 3.6 7.8 7.9

Services Target 4.9 8.0 8.0-9.0 8.2-9.2 8.7-9.7 9.0-10.0 6.0-7.6 6.1-7.7 Actual 4.9 8.1 7.9 3.8 6.7 7.3 6.0 7.1

Source: Philippine Statistics Authority (PSA), Calabarzon Regional Development Plan (RDP) 2017-2022 Table 15.2. Gross Regional Domestic Product at constant 2000 prices, Calabarzon, 2013-2018 (in Php ‘000) Industry/Year 2014 2015 2016 2017 2018 GRDP 1,230,372,013 1,302,297,272 1,364,736,594 1,456,341,332 1,562,497,002

AFF 70,299,391 72,134,407 74,622,793 74,146,533 74,650,865 Industry 764,007,392 807,516,677 836,700,049 901,666,083 973,201,658 Services 396,065,230 422,646,188 453,413,752 480,528,716 514,644,480 Source: PSA Region IV-A

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 84

Figure 15.1. Framework to Ensure Sound Macroeconomic Policy.

Accomplishments The 7.3 percent growth of Calabarzon’s economy in 2018 is up by 0.6 percentage point from the 6.7 percent growth in 2017. This growth has exceeded the high end of the plan growth target at 7.1 percent for 2018. While all the three major economic sectors – industry, services, and AFF grew; the Region’s high growth was attributed to the strong performance of manufacturing which accounts for 54 percent of the Region’s economy. Manufacturing grew by 8 percent with the continuous demand for electronic products, machinery and transport equipment, metals, and chemicals. The construction subsector also grew by 9.5 percent due to more construction activities by the government through its Build, Build, Build Program. The Region remains to be the primary industrial powerhouse of the country having the largest share of more than a third of the country’s total industrial output. The services sector grew by 7.1 percent, driven by growth in most of its subsectors. In particular, higher growth was posted in public administration (15.5%), other services (11%), and financial intermediation (8.8%). Increase in government spending on operations and maintenance and personnel services to improve service delivery, robust banking and lending activities, and strong household consumption, contributed to the expansion of the services sector. Among regions, Calabarzon contributed 9.7 percent to the total output in services, next to NCR which has more than half in share.

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 85

The Agriculture, Forestry, and Fisheries (AFF) sector rebounded to a 0.7 percent growth from a negative performance of 0.6 percent in 2017 due to increases in livestock production and production of major crops such as palay and coconut. Government programs aimed at better post-harvest practices and facilities, livestock-raising improvements, and no major weather disturbances in the past year, have contributed to the positive performance of the agriculture sector. On the other hand, fishing further declined to a negative 6.4 percent in 2018 as aquaculture production weakened due to closure of fish ponds and limited supply and inferior quality of fingerlings. Despite the slow growth of the sector, Calabarzon is the second largest contributor to total output in AFF with a 8.4 share, next to Central Luzon with 15 percent.

Per Capita GRDP The Region’s per capita GRDP amounted to PhP 104,708 in 2018, which is 21 percent higher than the national average. Among the regions, Calabarzon has the second highest per capita GRDP, next to NCR. The per capita GRDP grew by PhP 5,362 from the average amount in 2017. Table 15.3 Per Capita GRDP at constant 2000 prices, Philippines, NCR, and Calabarzon, 2014-2018 (in Php)

Region/Year 2014 2015 2016 2017 2018

Philippines 71,741 74,833 78,676 82,593 86,370

NCR 202,904 218,987 232,739 244,589 253,893

Calabarzon 86,644 92,184 94,811 99,346 104,708

Source: PSA Region IV-A

Labor and Employment Calabarzon, having the biggest population in the country, also has the largest labor force at 10,096. The Region’s labor force participation rate decreased by 1 percentage point to 62.7 percent in 2018 as those in the younger working age population may have decided to put off work with the subsidised tertiary education. The employment rate increased to 93.4 percent in 2018 from 93.0 percent in 2017 as more jobs were created and job facilitation by government and the academe resulted to immediate employment. Underemployment rate also decreased to 13.4 percent in 2018 from 14.0 percent in 2017 percent indicating better quality jobs in the region. The region was successful in meeting its employment and underemployment targets.

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 86

Table 15.4 Employment, Unemployment and Underemployment Rate, Calabarzon, 2015-2018 (in percent)

Indicators 2015 2016 2017 2018 Target Actual Target Actual Target Actual Target Actual

Employment rate 93.9-94.1 92.0 93.9-94.1 92.8 91-93 93.0 91-93 93.4 Unemployment rate 8.6-9.4 8.0 8.6-9.4 7.2 7-9 7.0 7-9 6.6 Underemployment rate <17.5 18.2 <17.5 15.5 17.5 14.0 17.0 13.4

Source: PSA Region IV-A

Inflation

Calabarzon experienced higher inflation rate in 2018 at 4.8 percent, higher by 1.9 percentage points compared to the 4th quarter inflation in 2017. The region still met its target of keeping inflation below 5 percent. Inflation in the region is also lower than the national rate of 5.2 percent and NCR with 5.5 percent. Among the provinces, the highest inflation rate was recorded in Quezon province due to challenges in the supply of goods that was further constrained by its geographical location. Meanwhile, the lowest inflation rate was observed in Rizal because of stable supply of goods. Further, the highest increase in inflation rate was observed in Laguna with an increase of 2.8 percentage points from last year.

Table 15.5 Inflation Rate in Calabarzon, 2017-2018 Area/Year Inflation Rate

2017 2018

Cavite 3.0 4.7 Laguna 2.0 4.8

Batangas 3.5 4.9 Rizal 2.9 4.2

Quezon 4.0 5.9 Calabarzon 2.9 4.8

PSA Region IV-A

There were significant price increases on alcoholic beverages and tobacco with increase in taxes for these commodities. Towards the second half of the year, prices of transport and recreation, food and non-alcoholic beverages, housing, water electricity, gas and other fuels also went up due to rising global energy prices, higher excise taxes, and challenges in the supply of rice and other basic food items. Higher prices meant lower purchasing power of peso (PPP) as the increase in prices brought the average PPP down to PhP 0.85, lower than PhP 0.06 than the PPP of the same period in 2017. To address rising inflation, government has implemented measures such as ensuring adequate supply of rice and other major agricultural products, unconditional cash transfers and fuel vouchers.

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 87

Poverty

For the first semester of 20184, poverty incidence among families reduced to 7.6 percent (from 12.8 percent in 1st sem of 2015) while poverty incidence among population declined to 10.1 percent (from 16.4 percent in 1st sem of 2015). This is consistent with the region’s economic growth from 2015 to 2018. More employment opportunities and higher income levels improved the poverty situation with majority of employed persons in the industry and services sectors. The improved implementation of the Conditional and Unconditional Cash Transfers (CCT and UCT), increases in the number of poor senior citizens covered by social pension and health care coverage, have helped augment incomes of poor and vulnerable households and individuals.

Financial Resiliency and Inclusion

Financial inclusion is the delivery of financial services at affordable costs to all sectors of society especially the disadvantaged and marginalized groups. These financial services must meet the specific needs of users without discrimination and must be readily available. Calabarzon continues to show improvement in its banking system as shown by statistics on the number of banks, bank density ratio, and number of automated teller machines (ATMs).

Banking System

In 2018, Calabarzon had a total of 1,825 operating bank offices consisting of 727 universal and commercial banks, 563 thrift banks, and 535 rural and cooperative banks (Table 15.7).

Table 15.6 Number of Offices by Type of Bank: 2016-2018 Area/Type of Bank 2016 2017 2018

Calabarzon 1,665 1,737 1,825 Universal & Commercial Banks 682 709 727 Thrift Banks 467 508 563 Rural & Cooperative Banks 516 520 535

Source: BSP-Supervisory Data Center

Universal and commercial banks account for 39.84 percent of the banks in Calabarzon followed by thrift banks at 30.85 percent. The continuous increase in the number of banks can be attributed to the high population, rapid urbanization, and upbeat economic activities in the Region. The province of Laguna had the most number of operating banks in 2018 (Table 15.8).

4 Full-year poverty estimates for 2018 is yet to be released by PSA.

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 88

Table 15.7 Number of Banks in Calabarzon, by Type & by Province, 2017and 2018 Province Number of Universal

& Commercial Banks Number of Thrift

Banks Number of Rural & Cooperative Banks

Total

2017 2018 2017 2018 2017 2018 2017 2018 Batangas 147 152 150 164 100 99 397 415 Cavite 191 197 130 154 51 56 372 407 Laguna 193 195 112 124 165 167 470 486 Quezon 59 62 43 48 136 139 238 249 Rizal 119 121 73 73 68 74 260 268 Calabarzon 709 727 508 563 520 535 1,737 1,825 Source: BSP-Supervisory Data Center Bank density ratio refers to the number of banks per city/municipality. In 2018, Calabarzon’s bank density was 13 with Rizal Province having the highest bank density of 19 banks and Quezon with the lowest at 6 banks (Table 15.9).

Table 15.8 Bank Density Ratio in Calabarzon, 2017-2018

Provinces Number of Cities & Municipalities

Number of Banks Bank Density Ratio

2017 2018 2017 2018 Cavite 23 372 407 16 18 Laguna 30 470 486 16 16 Batangas 34 397 415 12 12 Rizal 14 260 268 19 19 Quezon 41 238 249 6 6 Calabarzon 142 1,737 1,825 12 13

Source: BSP-Supervisory Data Center The number of automated teller machines (ATMs) increased by 4.76 percent from 3,023 in 2017 to 3,167 in 2018 (Table 15.9). This shows the continuous efforts of the banks to make their services accessible and convenient to clients at any time of the day.

Table 15.9 Number of ATMs, 2013-2018 Type of Bank 2013 2014 2015 2016 2017 2018

Calabarzon 2,107 2,254 2,566 2,848 3,023 3,167 Onsite 1,113 1,192 1,301 1,421 1,483 1,518 Universal and Commercial Banks

860 913 978 1076 1,135 1,168

Thrift Banks 194 207 248 269 272 278 Rural and Cooperative Banks

59 72 75 76 76 72

Offsite 994 1,062 1,265 1,427 1,540 1,649 Universal and Commercial Banks

878 936 1,099 1,250 1,358 1,474

Thrift Banks 115 125 161 167 169 171 Rural and Cooperative Banks

1 1 5 1 13 4

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 89

Source: BSP-Supervisory Data Center

Microfinance Services and Cooperatives

Microfinance and cooperatives were made available for those who do not have access to formal financial institutions. These are affordable alternative financial services to low -income groups. Microfinance-oriented banks increased from 113 in 2017 to 121 in 2018 (Table 15.10). This shows that financial institutions are taking appropriate actions to address the concern on accessibility to financial options. The Province of Quezon had the most number of microfinance banks while the Province of Cavite has no operating microfinance bank. Table 15.10 Number of Microfinance-Oriented Banking Offices, 2017-2018

Province Number of Microfinance-Oriented Banking Offices

2017 2018 Calabarzon 113 121 Cavite 0 0 Laguna 31 34 Batangas 7 8 Rizal 21 22 Quezon 54 57 Source: BSP-Supervisory Data Center There were a total of 139 registered cooperatives in 2018 consisting of 138 primary cooperatives and 1 secondary cooperative (Table 15.11). Majority of the cooperatives are transport type followed by credit type of cooperative. The number of cooperatives increased from 2017 to 2018 by 11.2 percent. This can be attributed to the following factors: a) CDA’s promotion and advocacy activities such as series of fora on establishing cooperatives in each province and airing of Cooperative Hour every Wednesday at DWBC 87.9; b) assistance of NGAs and LGUs to cooperatives; c) CDA partnership with other NGAs (e.g. CDA-DAR, CDA-DTI, CDA-DA, CDA-NCIP); and d) implementation of the public utility vehicle (PUV) transport modernization program which requires PUV drivers to organize into a cooperative or organization to apply for new routes or franchises. Table 15.11 Number of Registered Cooperatives in Calabarzon, 2015-2018

Type of Cooperative 2015 2016 2017 2018

Primary Cooperative Advocacy 0 0 0 0 Agrarian 1 2 0 0 Agriculture 7 9 35 13 Consumer 20 18 19 20 Credit 18 19 32 35 Dairy 1 0 0 0 Fishermen 0 0 0 0 Housing 0 0 0 0 Health Service 0 0 0 0

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 90

Type of Cooperative 2015 2016 2017 2018

Labor Service 3 0 0 0 Marketing 12 9 5 7 Multi-Purpose 13 0 0 0 Producer 10 9 10 7 Service 0 0 1 2 Transport 6 7 22 50 Water Service 1 1 1 3 Workers 1 2 0 1 Sub Total 93 76 125 138

Secondary Cooperative Bank 0 0 0 0 Federation 0 2 0 1 Union 1 0 0 0 Sub Total 1 2 0 1 Grand Total 94 78 125 139

Source: CDA-Calamba Extension Office

Local Government Resource Mobilization

LGUs continuously increase their efforts to generate more revenue. To improve revenue collection, capability building and financial education were provided to the LGUs. Table 15.12 Revenue Type, Targets, Accomplishments (in million pesos), 2016-2018

Revenue Type 2016 2017 2018

Target Actual Target Actual Target Actual

Real Property Tax 15,276.37 12,813.3 15,107.45 15,061.96 16,528.03 16,330.05

Business Tax 10,453.67 10,402.2 18,881.38 12,336.76 11,603.12 14,594.41

Fees and Charges 3,243.89 3,655.1 3,937.68 4,238.02 4,213.86 4,887.00

Economic Enterprises 2,115.1 2,062.2 1,934.88 2,070.83 2,062.25 2,593.01

Source: BLGF Region IV-A

Majority of the income of the LGUs come from real property tax (Table 15.12). Although target for real property tax was not achieved, revenues have increased in 2018. Revenue increase can be attributed to the continuous improvement of business processes and tax collection.

Moving Forward

In 2018, Calabarzon exhibited high economic growth and is well-positioned to achieve its growth targets until the end of the plan period in 2022. Growth will be driven by further expansion in the industry and services sectors by generating more investments and efficient

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 91

production of quality products for the domestic and international markets. Meanwhile, modest growth is expected in AFF with intensified and more targeted programs and projects for the sector and mitigation and adaptation to climate risks. Information technology will continue to be an important tool to make bank services more accessible and convenient. Setting up of government banks and ATMs in rural areas will also support local economic activities and reduce the cost of doing business.

Recommendations

The following should be considered to sustain economic growth and attain inclusive growth in Calabarzon:

Challenges Recommended Strategies Implementing Agencies

Slow and unmet growth target of the services sector

Encourage more private sector investment through: a) implementation of Ease of Doing Business; b) adequate and timely support to establishment and expansion of MSMEs; c) improved efficiency in transportation, logistics, communication/ICT within the region and with neighbouring regions; and d) updating of local comprehensive land use plans and zoning ordinances

DTI, LGUs, DPWH, DOTr, DICT

Low growth in the AFF sector

Increase competitiveness of AFF products through value-adding and better quality of products

Develop and promote the production of agricultural commodities in the region with comparative advantage

DA, BFAR, DOST, DTI

Continued contraction of fishing subsector

Determine the sustainable growth target of the sector within ecological limits

BFAR

Pockets of poverty Continued implementation of poverty alleviation programs like Pantawid Pamilyang Pilipino Program, livelihood and employment generation programs

Increase labor productivity in agriculture and fisheries

Timely provision of the CCT, UCT, and fuel subsidy to lessen the inflationary impact of the tax reform to poor households

Provide assistance to lagging LGUs to prepare and implement development plans and/or poverty action plans, and increase local resource mobilization/income

DSWD, DOLE, DTI, LGUs

DA, BFAR

DSWD

DILG, BLGF, HLURB

Limited funds to promote cooperative development

Additional budget for CDA extension offices DBM

Non-integration of cooperative development

Closely monitor the Joint Memorandum Circular of CDA and DILG

CDA, DILG, LGUs

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Chapter 15: ENSURING SOUND MACROECONOMIC POLICY 92

Challenges Recommended Strategies Implementing Agencies

programs in the LGU’s Development and Investment Plans

Actively promote cooperative development to LGUs

Implementation of tax exemption for cooperatives

Continuous information campaign on regulations applicable to cooperatives

Designate a special lane for cooperatives in BIR offices

CDA BIR

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Chapter 16: LEVELING THE PLAYING FIELD 93

Chapter 16

Leveling the Playing Field Improving the investment climate in the region by developing the competitiveness of firms and local governments is a major strategy to boost the development of the region’s economy. This chapter highlights the performance of the region in terms of local government unit (LGU) and market competitiveness using the available indicators and data at the regional level. Figure 16.1 Strategic Framework for Leveling the Playing Field

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Chapter 16: LEVELING THE PLAYING FIELD 94

Assessment

LGU Competitiveness Calabarzon is second most awarded region in the CMCI. The region received 12 out of the 75 awards in the 2018 Cities and Municipalities Competitiveness Index (CMCI), which is second highest number of awards garnered by a region next to the Central Visayas Region. Although the number of awards decreased from the 23 in 2017, six Calabarzon LGUs ranked as the highest in different categories. There is still a need to enhance data collection and submission to improve the ranking of more LGUs since other regions have also improved their data collection system. (See 2018 RDR Chapter 5 Ensuring People-centered, Clean, and Efficient Governance). Fewer SGLG awardees. For 2018, the number of LGUs who were awarded with the Seal of Good Local Governance decreased to 24 from 35 recipients in 2017. This is the same trend for all regions due to the stricter SGLG criteria wherein LGUs were required to pass all seven areas to be awarded. This is in line with DILG’s objective to continually improve LGUs’ delivery of public services and elevate the quality of local governance (See 2018 RDR Chapter 5).

Market Competitiveness Investments continue to decline but exports increased. Total approved investments of the region decreased by 37.8 percent to PhP 43.25 million in 2018 due to investor hesitation on new tax reforms of the government. Since 2016, total approved investments showed a downward trend and fell short of its target of five percent annual increase. Despite this, export sales increase by 9. 2 percent to US$ 28.63 million in 2018 due to continuous demand and manufacturing of top export products in the region such as automotive parts and electronics. (See 2018 RDR Chapter 9 Expanding Economic Opportunities in Industry and Services)

Moving Forward The completion and dissemination of investment promotion materials, coupled with intensified investment promotion activities by the Regional Development Council Investment Promotions Group, are expected to contribute in increasing investor confidence and investments in Calabarzon. Competitiveness of LGUs may be affected by the elections in May 2018 as change in leadership may also result to change in local priorities and policies.

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Chapter 16: LEVELING THE PLAYING FIELD 95

Recommendations

Challenges Recommended Strategies Implementing Agencies

Improve ranking of more LGUs in the CMCI

Close mentoring of LGUs in accomplishing CMCI forms

Enhance processes on data collection and monitoring/checking of submissions through technology and institutional means

Technical assistance and fund support from regional line agencies and provinces for lagging LGUs or those with lesser technical and financial capacity

Orientation of newly-elected LCEs on the process and importance of development planning and local competitiveness or self-reliance

Regional and Provincial Competitiveness Committees/ Councils (RCC/PCC) DILG

Continuous decline in investments

Conduct dialogues with the existing and potential investors to increase investor confidence in government

Monitor the translation of approved investments to actual businesses and employment

RDC-IPG, PEZA, DTI,

Low public awareness on the competition law/policy and capacity of government to enforce

Intensify and expand information campaigns in different communication platforms

Develop communications plans for different stakeholders on market competition

Philippine Competition Commission

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Chapter 17: ATTAINING JUST AND LASTING PEACE 96

Chapter 17

Attaining Just and Lasting Peace The Region has been active in its efforts in attaining just and lasting peace through convergence efforts among stakeholders. As a result, the communist terrorist groups (CTGs) strength showed a downward trend for the past 5 years. Nevertheless, the Communist Party of the Philippines (CPP) - New People's Army (NPA) - National Democratic Front (NDF) or CNN’s infiltration activities remain a challenge in pursuing peace and development in the Region. Development of people and communities is hampered in areas affected by insurgency. CALABARZON’s industries and government infrastructure projects which are vulnerable to CNN extortions and infiltrations are also affected. A more efficient approach to the Region’s convergence efforts in addressing root causes of insurgency will be pursued. The Region will implement the “whole-of-nation” approach to peace and development involving government, private sector and civil society organizations.

Strategic Framework Figure 17.1 Strategic Framework for Attaining Just and Lasting Peace

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Chapter 17: ATTAINING JUST AND LASTING PEACE 97

Accomplishment The Communist Terrorists operating in CALABARZON belong to the Southern Tagalog Regional Party Committee or STRPC which threatens a total of 141 barangays in the Region. Since January 2018, the STRPC initiated a total of 19 atrocities directed against government security forces, civilians and construction companies which resulted to an estimated damage of PhP 76.1 Million. Moreover, the group uses CALABARZON as consolidation area for CNN mass mobilizations in Metro Manila. Table 17.1 Communist Terrorist Group’s Manpower, Firearms, and Affected and Threatened Barangays, 2018 Province Manpower Firearms Affected

Barangays Threatened Barangays

Quezon 76 29 10 92 Laguna 54 45 0 13

Rizal 73 117 1 16

Batangas 23 61 2 20 Cavite 0 0 1 0 TOTAL 226 252 14 141 Source: Southern Luzon Command (SOLCOM), Armed Forces of the Philippines (AFP) The CTG-affected barangays are primarily located in Geographically Isolated and Disadvantage Areas (GIDAs), and industry and labor sector areas in the Region. Quezon Province has the most affected and threatened barangays, particularly in Bondoc Peninsula, incidentally, this part of Quezon Province has the most number of municipalities below the national poverty threshold and is also considered as GIDAs. Rebel groups also target the industrial areas and labor sector in Laguna, Rizal and Batangas. In support to the peace and development efforts in the Region, the CALABARZON Regional Development Council identified 34 municipalities with poverty incidence higher than the national rate of 19.7 and one municipality under tourism development as convergence areas for poverty alleviation programs and projects. The RDC initiated the adopt-a-municipality program to provide technical assistance and outreach programs, livelihood trainings, and capacity development to priority convergence areas. In 2018, the RDC conducted four convergence activities in less developed municipalities in CALABARZON including outreach activities in the municipalities of San Juan, Lian, and Calatagan in Batangas and Sariaya in Quezon. Various programs and projects to provide quality and accessible education to all school-aged learners also contributed to the improvement in net enrollment rate in both primary and secondary level. In the SY 2017-2018, the Region was able to achieve its target of 91.12 percent in the primary education with 96.31 percent as well as its target of 76.67 percent in the secondary education with 82.51 percent. Since 2014, the CTG’s strength, firearms and affected barangays showed a downward trend. The lowest number of NPA atrocity was recorded in 2016 due to the government’s

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Chapter 17: ATTAINING JUST AND LASTING PEACE 98

declaration of ceasefire and peacetalks. However, there was an increase in the CTG’s strength during the same period which indicates that they used such periods as an opportunity to strengthen its ranks. Figure 17.2 Number of Firearms of CTG in CALABARZON, 2014-2018

Source: SOLCOM, AFP Figure 17.3 CTG’s Manpower in CALABARZON, 2014-2018

Source: SOLCOM, AFP

407

390394

412

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Chapter 17: ATTAINING JUST AND LASTING PEACE 99

Figure 17.4 Number of CTG Affected Barangays in CALABARZON, 2014-2018

Source: SOLCOM, AFP Figure 17.5 Communist Terrorist Group Atrocities in CALABARZON

Source: SOLCOM, AFP The NPA-initiated violent activities showed a downward trend due to innovations introduced by the government’s security forces in its military campaign. In 2018, The Southern Luzon Command (SOLCOM) of the AFP was able to clear 29 out of the 43 enemy affected barangays and neutralize a total of 73 CPP-NPA members in the Region. Most significant of which was the apprehension of a high ranking NPA leader in CALABARZON, the STRPC Secretary, Edicel Legaspi alias Joventud del Fierro who was apprehended last October 15, 2018 in Sta. Cruz, Laguna. During the same period, a total of 33 high-powered firearms, 40 low-powered firearms and 58 landmines or Improvised Explosive Devices were seized from the NPAs in the Region. Another significant accomplishment of the Region was the recent declaration of Cavite as a province with Stable Internal Peace and Security on December 4, 2018, the first such

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Chapter 17: ATTAINING JUST AND LASTING PEACE 100

distinction in the whole country. It was complemented with the dismantling of Guerilla Front Honda, the NPA organization operating in Batangas and Cavite Provinces. On August 14, 2018, the maiden implementation of the national government’s Enhanced Comprehensive Local Integration Program or E-CLIP in Luzon and Visayas was held at the Office of the Presidential Adviser for Southern Tagalog in Tanauan City, Batangas. During the event, 13 former NPAs returned to the fold of law and turned-over their firearms to the Secretaries of the Interior and Local Government and National Defense, who, in turn, handed them cheques amounting to PhP 65,000.00 each as immediate and livelihood assistance from the government. A total of 46 former rebels already gave up 33 firearms and are now enrolled in E-CLIP being facilitated by the five provinces in CALABARZON.

Moving Forward The Region will continue to strengthen its efforts in ensuring peace and security by addressing roots causes of insurgency and promoting development and connectivity. Convergence efforts among stakeholders will be pursued for a more streamlined and efficient approach in the delivery of services and resolving local issues in the community. The Region shall implement the “whole-of-nation” approach of the national government unifying all efforts of the government within for peace and development.

Recommendations The following need to be pursued in support of the abovementioned strategies:

Challenges Recommended Strategies Implementing Agencies

Sector Outcome: Peace agreements successfully negotiated & implemented • Termination of the peace

negotiation between the government and the CPP-NPA-NDF

• Pursue other paths to peace through peace education

AFP, LGUs

• Rebels used ceasefires and peacetalks to strengthen their ranks

• Pursue local peace talks AFP, LGUs

• Low reach and awareness of government programs

• Strengthen intra-government, multi-sectoral coordination and collaboration mechanisms to promote peace

• Continue convergence and partnerships with private sector

• Foster wider cross-LGU learning via Leagues, LGA, Galing Pook Foundation, and academe

• Continue RDC Outreach Activities • Implement “Adopt-a-Municipality”

NEDA, DILG, LGUs

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Chapter 18: ENSURING NATIONAL SECURITY, PUBLIC ORDER AND SAFETY 101

Chapter 18

Ensuring National Security, Public Order,

and Safety There was a notable decrease of crimes in the Region in 2018 brought by intensified operations of government security agencies and involvement of communities through the Community Mobilization Program. This chapter focuses on the accomplishments in pursuing public order and safety.

Strategic Framework

Figure 18.1 Strategic Framework for Ensuring Regional Security, Public Order and Safety

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Chapter 18: ENSURING NATIONAL SECURITY, PUBLIC ORDER AND SAFETY 102

Accomplishment

Index Crimes or crimes against persons and property was significantly reduced from 11,899 in 2017 to 8,324 in 2018, a decrease of 30 percent. The index crimes consist of murder, homicide, physical injury, rape, robbery, theft and carnapping. Consequently, index crime rate or crime volume relative to the population of a locality decreased to 4.91 percent lower than the target of 6.38 percent. Number of homicide cases decreased from 219 in 2017 to 184 in 2018 while murder cases were reduced from 1,382 in 2017 to 997 in 2018. The reduction of crimes can be attributed to the rigorous anti-illegal drugs campaign, and other police-community interventions like the OPLAN “Katok” to check on loose and expired firearms, Community Mobilization Project involving the clustering of households to serve as first responders on crimes and other public safety concerns, intensified police presence in populated areas, conduct of check points and aggressive campaign against Wanted Persons, Guns-for-Hire and Private Armed Groups. Among the provinces, Cavite recorded the highest in index crime volume with 1,964 index crimes. The presence of criminal gangs and its big population of 3.68 million based on 2015 census may have contributed to the high incidence of crimes in the Province. This is closely followed by Rizal with 1,962 index crimes and Laguna with 1,777. Batangas and Quezon had the lowest with 1,322 and 1,299 index crimes respectively. The reduction of crimes was achieved despite the decrease in strength of the police force in 2018 with police-to-population ratio of 1:1,435 from 1:1,171 police-to-population in 2017. The number of crime cases solved relative to the crime volume also increased resulting to a crime solution efficiency rate of 78.38 in 2018 from 59.5 percent in 2017. Solved crimes refer to cases that have been filed in court and that have at least one suspect arrested. On campaign against illegal drugs, the Region has conducted around 11,327 operations in 2018 which resulted to the arrest of 18,086 persons and the seizure of about 18,528.95 grams of marijuana and 18,623.51 grams of “shabu” based on PNP records.

Moving Forward

The Region will continue to strengthen its convergence efforts in ensuring security, public order and safety by actively involving all sectors of society in the fight against all forms of criminality and lawlessness. Communities at the barangay level will be encouraged to participate through various community interventions. Moreover, the PNP will intensify its campaign against eight focus crimes such as murder, homicide, theft, robbery, carnapping of two-wheeled and four-wheeled vehicles, physical injuries and rape side by side with the war on illegal drugs. The PNP will continue to pursue its internal cleansing programs, ridding its ranks of corrupt, misfits and ‘scalawags’ in uniform.

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Chapter 18: ENSURING NATIONAL SECURITY, PUBLIC ORDER AND SAFETY 103

Recommendations

Challenges Recommended Strategies Implementing Agencies

Sector Outcome: Public safety ensured

• low police to population ratio

• Increase quota of number of law enforcers recruited and trained

• Implement the Philippine Identification System

• Passage of SIM Card Registration Bill. • Encourage LGUs to implement anti-illegal

drugs programs, projects and activities.

PNP LGUs

• Threat from terrorism

• Adopt whole-of-nation approach in fighting terrorism

Security Agencies

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Chapter 19: ACCELERATING INFRASTRUCTURE DEVELOPMENT 104

Chapter 19

Accelerating Infrastructure Development

This Chapter presents the role of infrastructure in the development of Calabarzon. In support to the national government’s Build-Build-Build Program, the Region has expanded its efforts on infrastructure development through convergence efforts with the different implementing agencies, private sector and with other regions in Luzon. High impact projects to address inter/intra-regional connectivity and infrastructure backlogs are being developed and prioritized for future funding and implementation. Project development and monitoring activities were jointly coordinated to harmonize the prioritization and implementation of major programs and projects (P/Ps). Figure 19.1 Strategic Framework for Accelerating infrastructure Development

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Chapter 19: ACCELERATING INFRASTRUCTURE DEVELOPMENT 105

Accomplishments

Implement strategic infrastructure and ensure asset preservation Transport Construction, improvement and rehabilitation of road infrastructures increased. The length of national roads in the region remained at 2,542.32 kilometers in 2018 as targeted (as seen in the table below) as the focus is on the maintenance and widening of existing roads and completion of constructions of various bypasses or diversion roads. There are 22 ongoing bypass or diversion roads under construction that are expected to help decongest traffic in the urban areas of cities and municipalities in CALABARZON. Table 19.1 Length of national roads and bridges in Calabarzon in 2017 and 2018

Indicator Baseline (2016)

2017 Actual

2018 Actual

2018 Target

% of Target Attained

Length of national roads increased (km)

2,517.3 2,542.3 2,542.3 2,542.1 100%

Length of permanent bridges along national roads increased (lm)

18,547 18,575 18,575.17 19,294 96%

The percentage of national roads in good condition increased from 48.82 percent in 2017 to 50.48 percent in 2018. However, the target of 60 percent was not attained because some projects were not funded. On the status of the bridges, 332 were in good condition, 278 in fair condition, 37 in poor condition and 4 in bad condition. The length of permanent bridges along national roads remained at 18,575 lineal meters due to non-issuance of bridge IDs of completed bridges in 2018. Hence new bridges were not accounted in the bridge inventory. A total of 27 lineal meters of bridges were widened in 2018, while 53 bridges were retrofitted or rehabilitated in 2018 as against the target of 140 bridges for retrofitting or rehabilitation. The target was not met as some of the target projects were not fully funded. Convergence programs of agencies promoted. Under the convergence programs of national agencies 32 tourism roads under the DOT-DPWH Convergence Program were completed and under the DA-DPWH partnership 94 farm-to-market roads were completed. Under the DTI-DPWH Roads Leveraging Linkages of Industry and Trade or ROLL-IT 6 projects were completed. Under the KALSADA Program of the DILG in partnership with the LGUs, a total of 104.59 kilometers of road were constructed. Traffic management measures implemented. Traffic management initiatives such as removal of obstructions along road-right-of-way (RROW) and the conduct of Road Safety Advocacy Training were undertaken to address the growing traffic problem. To address safety issues along the bypass and diversion roads, RDC endorsed resolutions on the installation of solar-powered lighting system, construction of lay-bays and improvement of

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Chapter 19: ACCELERATING INFRASTRUCTURE DEVELOPMENT 106

the telecommunication signals along diversion and by-pass roads. Also, RDC issued resolutions regarding the removal of obstruction/barriers along roads as well as the banning of tricycles and strict enforcement of no parking in national highways. DILG reiterated their Memorandum Circular (MC) No. 2007-01 entitled “Basic Considerations in the Preparation of City or Municipal Tricycles and Pedicabs Franchise and Regulatory Ordinance or Code” and reported that 74 out of 142 cities and municipalities in the region complied with the MC as of December 2018. The province of Laguna and Quezon have the most number of compliant LGUs based on DILG’s monitoring. Other traffic management initiatives implemented include conduct of deputation seminars for traffic enforcers, advocacy on public transport services guidelines, road widening, construction of bypass roads, diversion roads and flyover, and ban of tricycles along national roads, among others. However, only a small percentage of utility and tree obstructions along RROW have been removed or relocated due to budgetary constraints and delayed application for tree-cutting permits. Getting the support of the electric and telecommunication providers remains a challenge. To address these issues, DPWH Region IV-A with the assistance of RDC has continuously coordinated with utility providers and DENR to hasten the removal or relocation process. The CALABARZON offices of DENR and DPWH have prepared an action plan on the removal of trees along RROW especially in priority road corridors in the Region. Port facilities improved to ensure seamless RoRo network. Rehabilitation and repair projects in Batangas Port were completed in 2018 to enhance port operations and services. These include construction of multi-level parking and crane rail extension in Batangas Port Phase I. Repair projects in ports in Quezon such as repair of RoRo Terminal Fee Facility in Gate 2 and reblocking of damaged concrete pavement in of Port of Lucena City were completed in 2018. Utilization of existing ports optimized. The existing ports in Batangas and Quezon Provinces are important transport facilities that connect CALABARZON to island regions of MIMAROPA and Western Visayas. These port facilities are vital mode of transport for tourism, manufacturing and agriculture-based industries. The Batangas Port located in Batangas Province and the Lucena Port located in Quezon Province are the largest ports in the Region. Batangas Port is the only international port for container shipments in the Region. In terms of cargo, the combined performance of the two major ports improved and targets were exceeded. The non-containerized cargo increased by 7 percent while the containerized cargo throughput increased by 63.58 percent in 2018. The actual non-containerized cargo throughput in 2018 was 5.9 percent higher than the target while the containerized cargo was 70.6 percent higher than the target.

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Chapter 19: ACCELERATING INFRASTRUCTURE DEVELOPMENT 107

Table 19.2 Throughput of Batangas and Lucena Ports in 2017 and 2018

Indicator 2017 2018 Growth Rate (%)

Target Variance

Non-containerized cargo throughput (MT)

28,272,003 30,300,309.41 7.00 28,597,374 1,702,935

Containerized cargoes (TEU) 197,534 323,135 63.58 189,313 133,822

Number of passengers 8,693,410 8,631,540 -0.71 8,437,382 194,158

Number of vehicles 54,574 55,453 1.61 48,989 4,675

Source of data: Philippine Ports Authority – Port Management Office of Batangas and Marquez The number of passengers using Batangas Port decreased by 3.4 percent which dragged down the total number of passengers using the ports in Batangas and Quezon by 0.71 percent in 2018. Despite this, the total target number of passengers for the two ports was still met. The decline in the passenger traffic in the Batangas Port can be attributed to the six-month closure of Boracay Island for rehabilitation. Boracay Island is among the top tourists’ destinations of travellers from Batangas Port. On the number of vehicles which passed through the ports, it increased by 1.61 percent which is 9 percent higher than the 2018 target. The increase can be attributed to improvement in the port facilities. Alternate airport rehabilitated. The Sangley Airport in Cavite City is being rehabilitated. The rehabilitation is 38.22 percent complete as of February 21, 2019. The rehabilitation of the Sangley Airport is expected to be completed within the year.

Water Resources Actual irrigated area increased and efficiency improved. Construction, restoration and rehabilitation of irrigation systems projects increased the actual irrigated area out of the region’s potential irrigable area by 75.68 percent in 2018 from 63.11 percent in 2017. Among the provinces, Rizal has the largest proportion of actual irrigated area to the potential area at 90.42 percent while Cavite has the least proportion at 62.33 percent. Quezon Province with the largest potential irrigable area (25,873 hectares) has an actual irrigated area of 84.43 percent. CALABARZON has a total of 85,929 hectares of potential irrigable area. Out of the total additional actual irrigated area, 349 hectares were newly-irrigated areas and 200 hectares were restored which are below the target of 988 hectares and 364 hectares, respectively. This can be attributed to the temporary suspension of some on-going irrigation projects. Newly-irrigated area was largest in Quezon Province at 121 hectares while the smallest was in Cavite Province at 20 hectares. Except for Batangas Province, newly irrigated areas in other CALABARZON provinces in 2018 were lower than the 2017 accomplishment. In terms of restoration, projects were implemented in the provinces of Cavite, Rizal and Quezon resulting to additional restored areas for irrigation of 35 hectares, 67 hectares and 98 hectares, respectively. Canal linings are important to lessen maintenance and improve water capacity discharge of the canal. The total length of constructed canal linings totaled to 33.01 kilometers in 2018. On the other hand, a total of 117 structures in various irrigation systems were constructed in 2018 to help regulate the water flow and deliver the required volume of water. This is lower

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Chapter 19: ACCELERATING INFRASTRUCTURE DEVELOPMENT 108

than the 2017 accomplishment of 172. Accomplishments in both indicators significantly vary every year due to the different types and sizes of canal linings and structures constructed. These implemented projects that aim to enhance the efficiency and effectiveness of the current irrigation systems and the construction of new irrigation systems have contributed to higher cropping intensity for rice in 2018 at 154 percent compared to 151 percent in 2017. Among the provinces, Quezon has the highest cropping intensity at 171 percent while Cavite has the lowest at 120 percent. Except for Rizal, all the provinces have higher cropping intensity in 2018 compared to 2017. Lower cropping intensity in Rizal can be attributed to on-going repair and rehabilitation of some irrigation systems in the province. Availability of water resources assessed. The National Water Resources Board initiated the conduct of comprehensive water resources assessment for 18 major river basins in the country and the development of Groundwater Management Plan (GMP). The development of GMP focused on the highly urbanized cities with water constraints issues and involves the establishment of groundwater monitoring wells that will serve as a mechanism to monitor the effectiveness of groundwater policies in the area and as basis for protection and conservation efforts. In 2018, the GMP for Batangas City was completed while the monitoring well in Bacoor City was installed. Considered as one of the major river basins in the country, the Pasig-Laguna Lake River Basin which affects portions of Rizal, Cavite and Laguna was included in the assessment. The project started with the assessment of Agno, Panay, Davao and Jahar River Basins and is yet to be completed. The comprehensive assessment will provide a scientific basis for development and implementation of vital projects to ensure availability of water supply for the future and address the impacts of climate change on water supply.

Flood Control Flood risk management projects for Cavite lowland areas continued. Geographically, the province of Cavite is considered as a flood-prone area due to its low elevation. Combined with rapid urbanization, severe economic losses due to flooding are projected in the future if persistent flooding will continue to affect the province. To mitigate this, a number of flood risk management projects are being implemented or constructed by the DPWH Flood Control Management Office for the lowland areas of the province. These include the Imus Subproject of the Flood Risk Management Project (FRIMP) for Cagayan, Tagalong and Imus Rivers; the Cavite Industrial Area Flood Risk Mitigation Project (CIA-FMP); and the retarding basins for General Trias. With these projects, the inundated areas are expected to be reduced from 841 hectares to 88 hectares. The CIA-FMP involves the construction of diversion channels and improvement of San Juan, Maiming and Ylang-Ylang rivers including implementation of non-structural measures to prevent the damages caused by flooding in the areas of Rosario and Noveleta where the Cavite Economic Zone is located. Meanwhile, the Imus Subproject involves the construction of retarding basins in the cities of Bacoor and Imus which is the first in the country that used the technology on retarding basins to mitigate the damages caused by flooding. The retarding basins can be used for public use during dry seasons. The project started in 2016 and is expected to be completed in 2020.

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Chapter 19: ACCELERATING INFRASTRUCTURE DEVELOPMENT 109

Similarly, the FRIMP in General Trias City will construct two retarding basins with 24 and 48 hectares. The project started in 2018 and is expected to be completed in 2022. Flood control master planning activities initiated. As one of its banner initiatives, the Regional Development Council conducted a regional flood control summit in November 2018 to emphasize the need for the formulation of the CALABARZON Flood Control Masterplan. As a result of the Summit, strong support from local planners and concerned government agencies to address flooding issues in the region were elicited and flood control masterplan activities were identified for implementation in 2019 to 2020. The TWG proposed the conduct of Calabarzon Flood Risk Assessment Study (FRAS) instead of the Flood Control Master Planning based on the expected output of initiative. The FRAS will be an assessment of the river basins in the Region to determine priority river basins for master planning.

Figure 19.2. Use of retarding basins during dry and wet season

Power and Energy Rural electrification remains a challenge. In 2018, the proportion of sitios served with electric connections remained at 92.68 percent; thus, the target of energizing 95.58 percent of sitios was not met. The inclement weather and difficulty in reaching remote areas that hindered installation of electrical lines. On the other hand, the proportion of households with electricity increased to 112 percent; thus, the target for 2018 was exceeded. In comparison with the 2017 target of 3,718,758 households with electricity based on the 2010 Census of National Population, DOE targeted 3,345,122. The overachievement of the target was attributed to the intensified electrification and cooperation of the provincial and local officials. Power sources increased. The Luzon Grid serves as the main contributor in the country’s total power generation at 14,973 megawatts capacity, or approximately 70 percent of the total power generation of the country. An expansion in the coal-fired power plant Pagbilao Unit 3 will add an estimate of 420 megawatts to the Luzon Grid.

Dry season Rainy season

Source: DPWH-Flood Control Management Office as presented during the 1st quarter RPMC meeting on February 1, 2019.

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Green energy pursued. With the signing of Department of Energy (DOE) Department Circular entitled “Promulgating the Rules and Guidelines Governing the Establishment of the Green Energy Option Program Pursuant to the Renewable Energy Act of 2018”, consumers will be provided options to source their electricity needs from renewable energy. The said circular is in line with the Renewable Act of 2008 Section 9 Chapter III that mandates DOE to establish a Green Energy Option Program. Energy resiliency institutionalized. In recognition of the energy sector’s vulnerability to natural and human-induced hazards and disasters, the DOE issued DOE Department Circular 2018-01-0001 entitled Adoption of Energy Resiliency in the Planning and Programming of the Energy Sector to Mitigate Potential Impacts of Disasters. The policy aims to strengthen existing infrastructure facilities, integrate the Build Back Better principle in reconstruction and rehabilitation, and develop resiliency standards as basis in construction of energy facilities. One of the notable provisions in the policy is the preparation and implementation of the Resiliency Compliance Plan by private companies and government bodies.

Information and Communications Technology Slowdown in provision of public internet facilities. In 2018, only 59 additional powered-up sites with free Wi-Fi internet access in the Region were established. The delay in the bidding of service providers stalled the set-up of more sites with free Wi-Fi for the public. On the other hand, there was one Point of Presence (Pop) established in Batangas in 2018. Pops are essential network elements where equipment that route, store or transmit internet data are housed. Table 19.3 Number of powered-up sites with free Wi-Fi internet access and Pop established in CALABARZON, 2018.

Indicator 2017 2018 Growth Rate (%)

Number of powered-up sites with free Wi-Fi internet access

75 59 -21

Number of Point of Presence established 1 1 0

Source of data: Department of Information and Communications Technology – Luzon Cluster 2

Social Infrastructure Delay in implementation and slow construction of school buildings. The DepEd’s School Building Program is being implemented by DPWH Region IV-A to reduce classroom congestion in priority schools in the Region and provide school buildings for Senior High School. Based on data from DepEd, a total of 12,214 classrooms were already completed in 3,102 schools as of March 15, 2019. This represents only 59.12 percent accomplishment of the total regional targets from 2014 to 2018 wherein majority of the completed projects were programmed projects in 2014 to 2016. There was a very low accomplishment for projects funded in 2017 and 2018, including only four projects and 28 classrooms completed in 2018. The delay in implementation was caused by different issues such as poor performance of contractors, limited building materials, manpower and equipment in construction site, poor quality of some constructed buildings/classrooms, relocation of building site due to soil

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condition, and difficulty in securing building permits. To address these issues, project issues are being discussed by DepEd, DPWH, the contractors, and LGUs. It was also reported that DPWH took-over some delayed projects from the contractor to fast-track implementation. The effect of the delays in the School Building Program is difficult to determine due to unavailability of data on classroom-to-pupil ratio for SY 2017-2018. The latest data on classroom-to-pupil ratio in SY 2014-2015 showed that the region did not meet its target of public classroom to pupil ratio for primary and secondary levels. Majority of public schools in the region have water and sanitation facilities and electricity connection. At the primary level, 94.45 percent and 97.79 percent of schools have water and sanitation facilities, and electricity connection, respectively. For the secondary level, 100 percent and 97.6 percent of schools are connected to water and power utilities, respectively. Health stations and units increased but hospital beds are still limited. The DOH, DPWH and local government units continued to establish barangay health stations (BHS), rural health units (RHU) and urban health units in the Region. In 2018, an additional 75 BHS were established which exceeded the target of 63 BHS for the year. Most of the new BHS were in Quezon (25) and Batangas (20). From 2017 to 2018, 153 BHS were established. For RHUs, there were 11 that were established for the year as targeted, majority of which are in Batangas. From 2017 to 2018, 35 RHUs were established. More BHS and RHUs were established through the implementation and continuous monitoring of projects funded by the Health, Facilities and Enhancement Program (HFEP). Hospital bed to population ratio slightly improved from 1:1,153 in 2017 to 1:1,135 in 2018 but the target ratio of 1:1000 was not achieved. The provinces of Rizal, Quezon and Cavite did not also meet the regional target with Rizal having the highest bed to population ratio of 1:1,794. Hospitals in these provinces need to have higher bed capacity to accommodate more patients and more health personnel. On the other hand, Laguna and Batangas have better hospital bed capacity with a ratio of 1:924 and 1:803, respectively due to the presence of more hospitals and tertiary hospitals such as the Batangas Medical Center in Batangas City.

Moving Forward

Implementation of strategic infrastructures and preservation of assets

Transport Land Transport. Improvement and widening of roads and bridges to at least four lanes will be implemented. New roads will be constructed to inter-connect in the national and local roads. The construction of Quezon-Roma Point Bridge has started in 2018. The said bridge will connect the island municipalities of Alabat, Perez and Quezon to the mainland in Lopez, Quezon.

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Inter and intra-regional connections will be improved through the implementation of road projects along the pacific coast such as the General Nakar-Umiray-Dingalan Road and Mauban-Atimonan Road. The said road projects are included in the proposed Luzon Pacific Highway. Other notable projects currently under study are the Quezon-Bicol Expressway and the PNR South Long Haul Project. Also of note is the North-South Commuter Railway Project that will create a seamless rail network from Clark International Airport to Calamba City while also integrating the existing Light Rail Transit (LRT)-1, LRT-2 and Metro Rail Transit 3. Railway crossing security shall also be improved through installation of level crossings and automated traffic light controls. Table 19.4 List of ongoing and proposed major transport projects

Proposed Ongoing

South Commuter Railway Project South Long Haul Project Quezon Bicol Expressway Light Rail Transit 6 Cavite Line Pasig-Marikina River Improvement

Project Phase IV Eastbank-Westbank Bridge 2

Construction Project Sta. Rosa-Tagaytay-Nasugbu Road

Light Rail Transit 1 Cavite Extension Light Rail Transit 2 East Extension South Luzon Expressway Toll Road 4 Cavite-Laguna Expressway STAR Tollway-Pinamucan Bypass Road Lipa City-Padre Garcia Diversion Road Batangas City-San Pascual-Bauan

Bypass Road Tagaytay Bypass Road Alaminos-San Pablo City Bypass Road Sariaya Bypass Road Lopez-Quezon Bridge Mauban-Atimonan Road

Implementation of priority projects and activities in the CALABARZON Traffic Management Plan will be continued. Coordination with different regional agencies involved in traffic management and LGUs will be intensified to implement programs, projects, rules and regulations to address traffic problems. This includes the conduct of the Road Safety Advocacy Training in 2019 which will produce road safety advocates in the Region who will train drivers of public utility vehicles, motorcycle and truck, and the general public on road safety in order to reduce road crashes in the Region. Water Transport. A new passenger terminal building with modern facilities will be constructed in Batangas Port to cater the increasing number of passengers of the Port. The improved facility will accommodate an estimated capacity of 3,200 to 3,600 seats in its passenger lounge. Other expansions in Batangas Port include the checks and ticketing facilities. A possible installation of solar panels on the roof of the terminal building is being studied. The Calatagan Port is being considered as an alternate port to decongest the Port of Batangas. In preparation, the site development plan of the port shall be put in place and the port delineation shall be extended to connect to the proposed road going to the Port. MARINA, on the other hand, has recently opened and is proposing new routes for passenger vessels and RoRo from the Region. Examples are the inter-regional RoRo and Laguna Lake Trasnport routes.

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Air Transport. Sangley Airport is eyed as a future alternative to the air traffic congested Ninoy Aquino International Airport. Proposals to develop the Sangley International Airport are still for appraisal whether it meets the necessary technical and financial requirements.

Water Resources Irrigation. Projects on the construction of new and improvement of existing irrigation systems will be continued in 2019. The National Irrigation Administration Region IV-A will implement eight small irrigation projects, expansion of 21 existing national and communal irrigation systems, and establishment of 30 ground pump irrigations. These projects will help increase the production of agricultural crops in the Region. There are two high-impact irrigation projects in the Region that are being closely monitored by the Regional Project Monitoring Committee, these are the Quipot Irrigation Project and the Macalelon Irrigation Project. The Quipot Irrigation Project will irrigate about 2,800 hectares of agricultural lands in Tiaong, Candelaria, San Antonio and Sariaya in Quezon Province and San Juan in Batangas Province while the Macalelon Irrigation Project will irrigate about 830 hectares of agricultural land in Macalelon, Quezon. Both projects have been delayed by issues on right of way acquisition and processing of tree cutting permit. At the national level, the updating of the National Irrigation Masterplan 2010 to 2020 will assist in the development and prioritization of irrigation projects, formulation of institutional strategies and investment programming. The updated Masterplan will also be instrumental in setting the direction for irrigation development. Water Supply. The New Centennial Water Source – Kaliwa Dam Project will serve as a redundant water source that will reduce the total dependency on Angat Dam Reservoir and will address the growing demand for water in Metro Manila including the neighbouring areas of Cavite and Rizal. The project proponent, MWSS will continuously coordinate to address the concerns and water rights of the affected municipalities in Calabarzon. Actual project works are expected to start in 2019.

Energy Electrification. Rural electrification will be continued to cover the remaining sitios with no electric connections. DOE created the “Task Force E-Power Mo” to ensure access to electricity of communities that remain unserved and underserved by distribution utilities and electric cooperatives. Energy conservation. The enactment of Energy Efficiency and Conservation Law is being sought to standardize energy efficiency and conservation measures. The proposed law aims to regulate use of energy efficient technologies in buildings. With this law, the issuance of building permits will require the Energy Conserving Design and mandate the crafting of Local Energy Efficiency and Conservation Plan.

ICT Infrastructure

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Enhanced Internet Connectivity. With the proposal to establish the DICT’s GovNet in the region, linkages among government offices and faster delivery of services is expected. GovNet will also provide free Wi-Fi access to the public.

Social Infrastructure Education. Local government units can identify and donate properly titled idle and other available public lands that can be used for additional school buildings. Furthermore, the Special Education Fund (SEF) of LGUs can also be allocated for the construction and repair of school buildings especially in areas where classroom congestion is high. With the reduction of the 2019 Basic Education Facilities Fund, it calls for better collection, planning, budgeting and use of the SEF as a supplementary source of funds for the operation and maintenance of public schools within the province, city or municipality. Health. Access to health facilities will be improved with a total of four on-going BHS and nine other health facilities being implemented by DOH, DPWH, and LGUs under the HFEP that are expected to be completed in 2019. With the passage of the Universal Health Care (UHC) law or Republic Act No. 1123 that will set aside a special fund to improve health facilities in LGUs, LGUs will have more funds to support the operations and maintenance of completed HFEP projects.

Conduct infrastructure-related research and development Research areas on the transportation system, water resource and security, flood control, power generation, ICT and social infrastructures shall be encouraged by the RDC and SUCs to aid in policy and decision-making in the infrastructure sector.

Recommendations The following supplemental strategies are recommended to accelerate infrastructure development:

Challenges Recommendations Implementing

Agencies Slow progress in the removal of road obstructions

Intensify coordination and monitoring of the removal of obstructions by the concerned agencies, local governments and the private sector

Assistance from the national/high-level officials in government to expedite removal of obstructions

Expedite the application, processing and issuance of tree-cutting permits and clearances

LGUs to strictly enforce RROW and prevent encroachment and other forms of temporary obstructions

Provide/increase agency budget allocation for

DPWH, DENR LTO and DILG

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Challenges Recommendations Implementing

Agencies removal of road obstructions

Traffic congestion along major highways and city centers

Harmonize traffic management plans and traffic regulations among implementing agencies and LGUs

Stricter enforcement of LGUs on tricycle ban and no parking in major thoroughfares

LTO, LTFRB, DILG

Accessibility in port facilities

Enhance port facilities to serve the need of passengers especially the persons with disabilities and special needs

Study and propose routes for passengers to and from port terminals

PPA, MARINA

LTFRB

Slow internet connectivity

Provide and promote incentives to encourage more TelCo players to participate in the industry

DICT, DILG, LGUs

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Chapter 20

Ensuring Ecological Integrity, Clean and

Healthy Environment

This chapter discusses the 2018 performance of the Region in protecting the environment particularly on sustaining the biodiversity, improving environmental quality and increasing resilience of ecosystems. As shown in Figure 20.1, three subsector outcomes are monitored to ensure ecological integrity and improve socio-economic conditions of resource-based communities through sustainable integrated development. Figure 20.1 Strategic Framework to Ensure Ecological Integrity, Clean and Healthy Environment

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Accomplishments

Sustain biodiversity and functioning of ecosystem services Forestland rehabilitated and mangrove increased. A total of 7,001 hectares of denuded and degraded forestland were rehabilitated, which is an increase of 27 percent from the 5,511 hectares in 2017. The mangrove area also increased by 80 hectares exceeding the target area of 50 hectares. The enhanced National Greening Program greatly contributed to the attainment of the targets.

Terrestrial, inland water and coastal and marine areas effectively managed. One hundred percent of the terrestrial protected area was managed while the targeted area of 3,360 hectares of degraded coral reefs within the National Integrated Protect Area System marine protected area was rehabilitated. In addition, the quality of coastal and marine habitats was maintained while the targeted two hectares of terrestrial protected areas were managed. Likewise, eight hectares of priority inland/wetland were managed exceeding the targeted area of four hectares and the targeted eight caves were managed. Patrolling, EIC campaigns, Dalaw Turo, biodiversity monitoring system, caves and wetlands management, development of ecotourism, and assessment of coral and seagrass in Batangas and Quezon provinces all contributed to the attainment of the targets.

Land Administration and Management improved. A total of 1,944 residential free patents were issued exceeding the target of 1,700. Likewise, 1,114 beneficiaries had secured land tenure in public agricultural A&D lands and 1,944 beneficiaries in residential lands zoned as residential areas. The accomplishments may be attributed to the handog titulo program and joint disposition of patents with LGUs.

On the other hand, only one Certificate of Ancestral Domain Tenure (CADT) in Quezon was approved in 2018 while one CADT in Polilio Group of Island is for processing and survey in 2019. The insurgency problem in the target areas for survey was one of the challenges identified in the processing of CADTs in the region.

Improve environmental quality Air quality monitoring stations maintained. The targeted number of four urban areas with air quality monitoring stations was achieved. The stations are located in Cavite, Santa Rosa, Biñan and Antipolo City. Among the parameters being monitored and measured by the stations were carbon monoxide, phytochemical oxidants, sulfur dioxide, nitrogen dioxide, and particulate matter 10 and 2.5 micrometers. The air quality in these four areas was reported to be within the National Ambient Air Quality Guideline standards.

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Target water quality standards of Priority Rivers and Manila Bay were not achieved. Class C water standard means water quality suitable for the propagation and growth of fish and other aquatic resources. Iyam and Dumacaa rivers passed most of the parameters for Class C target water standard except for BOD, fecal, ammonia and chlorides. The active participation of stakeholders and the regular programs and projects of the DENR-EMB contributed to the improvement of the said rivers. On the other hand, the Imus, Ylang-Ylang, Rio Grande and Cañas rivers failed to meet most of the Class C water standard parameters on chlorides, color, pH, DO, temperature and total suspended solids. However, all the 13 water quality stations in Manila Bay showed failure to meet the target Class SB water standard. The Class SB water standard means it is suitable for swimming and bathing.

The non-attainment of the target water quality for the priority rivers and Manila Bay may be attributed to domestic waste coming from residential areas and informal settler families near the shorelines polluting these water bodies.

Water quality of Laguna de Bay sustained. The Laguna de Bay maintained its BOD level of two milligram per liter which is within the standard of seven mg/l. The enforcement of environmental laws, active participation of stakeholders, and the LLDA’s regular programs and projects which include environmental User’s Fee System, River Rehabilitation program, institutionalization of sub-Water Quality Management Area, and intensified saturation drive in hotspots sub-watershed areas contributed to keeping the water quality of the lake. A total of 1,592.64 hectares of fishpens and fishcages were demolished exceeding the targeted area of 800 hectares. LLDA’s 2018 Zoning, compliance of fishpen operators to limit the allowable area for a fishpen from 50 hectares to 25 hectares, and the cooperation and support of partner agencies and LGUs contributed to the outstanding achievement.

On the other hand, only 23.04 hectares of the targeted area of 72 hectares with planted seedlings in Laguna de Bay was achieved, a 75 percent decrease of the 92.72 hectares accomplishment in 2017. The target was not met because the identified planting sites within Laguna Lake were privately owned. Solid waste management improved. LGUs compliant to RA 9003, the Solid Waste Management Act, decreased from 84 percent in 2017 to 72 percent in 2018 with the closure of 17 open dumpsites. On the other hand, solid waste diversion rate still increased from 48 percent in 2017 to 73 percent in 2018, exceeding the 49 percent target. In addition, 29 sanitary landfills were established.

The path to improvement in solid waste management is all set as 94 LGUs now have approved Solid Waste Management Plans. These achievements may be attributed to the increased monitoring on RA 9003 compliance, provision of financial and technical assistance to LGUs on the safe closure and rehabilitation of open and controlled dumpsites, preparation of Solid Waste Management Plans and proper implementation of waste management including barangay ordinance, segregation at source and segregation at collection.

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Increase adaptive capacities and resilience of ecosystems LGUs with institutionalized and fully operational DRRM Office and established evacuation centers. In compliance to RA 10121 or the Philippine Disaster Risk Reduction and Management Act of 2010, 67 out of 147 LGUs in Calabarzon have fully operational DRRM Office and a total of 3,831 were identified as possible evacuation centers in 2018. There are 31 fully operational DRRM offices in Laguna and 36 in Quezon. The inclusion of operational DRRM Office and evacuation centers as indicator and major criteria of Seal of Good Local Governance and Gawad Kalasag provided the impetus for LGUs to prioritize DRRM offices and evacuation centers. The reported number of casualties due to natural disasters decreased from 45 in 2017 to 28 in 2018. The continuous IEC campaign on disaster preparedness and the capacity building programs including the training of 714 individuals on DRRM contributed to the achievement. On the other hand, the number of casualties due to human-induced events increased from 525 in 2017 to 1135 in 2018. The casualties were caused by self-inflicted incidents. As of 2018, 61 LGUs have prepared their Comprehensive Development Plans for review of DILG. The lack of funding and technical assistance to capacitate LGUs on the formulation of Comprehensive Development Plans and Local Climate Change Action Plan were among the challenges identified. The Climate Change Commission was identified to provide assistance to LGUs in the preparation and review of Local Climate Change Action Plan.

A total of 27 DRRM enhanced plans were reviewed, which is 29 percent increase of the 19 DRRM enhanced plans reviewed in 2017. The conduct of technical assistance to LGUs on the formulation of DRRM plan contributed to the achievement. However, the lack of technical expertise to formulate plans remains an issue among the LGUs.

Moving Forward The protection of the environment requires strict implementation of environmental laws, cooperation of the LGUs and private sector. Collaboration on solid waste management, and water quality monitoring of the Rivers, Manila Bay and Laguna Lake is necessary as fast urbanization is threatening our environment.

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Recommendations The following are the challenges and recommended strategies for the environment sector for the year 2021.

Challenges

Recommended Strategies

Implementing

Agencies Sector Outcome: Sustaining biodiversity and functioning of ecosystem services Potential impacts of climate change on environmental resources

Increase targets for forestland rehabilitation and areas planted with mangrove Coordinate with DENR-Protected Area Management Board on plantable areas within protected areas Engage LGUs in tree planting activities including identification of planting sites

DENR

Inadequate data on planning and monitoring of forestlands and mangrove areas

Use available technologies like GIS mapping and geo-tagging of planting sites

DENR, LLDA, LGUs

Overlapping applications for reclamation projects

Conduct IEC on reclamation policies and guidelines

PRA

Monitor compliance of proponents to reclamation projects requirements (e.g. environmental compliance certificate)

All agencies

Sector Outcome: Improving environmental quality Inadequate number of air quality monitoring stations

Increase target number of air quality monitoring stations Coordinate with LGUs regarding the cities classified as urban areas

DENR-EMB

Poor water quality of priority rivers and Manila Bay

Assist LGUs to prepare septage and sewage management plans Include in agencies’ priority program and projects the establishment of septage and sewage treatment facilities to treat wastewater from upland and coastal area

DENR, DENR-EMB, DOH, DPWH

Continue to implement Water Quality Management Areas’ Action Plan and Manila Bay revised Operational Plan for the Manila Bay Coastal

DENR-EMB, DOH

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Challenges

Recommended Strategies

Implementing

Agencies Strategy Capacitate Water Quality Management Area members Continue and engage LGUs on clean-up activities in priority rivers and Manila Bay

DENR

Inadequate area planted with seedlings in Laguna de Bay

Increase number of sub-Water Quality Management Areas Increase number of tree planting activities Engage LGUs in tree planting activities and protection of the Laguna lake

LLDA

Negative impact of solid waste on public health and environment

Continue to encourage LGUs to comply with RA 9003 or the Ecological Solid Waste Management Act of 2000 Continue to monitor and provide technical and financial assistance to LGUs Increase solid waste diversion rate Close and rehabilitate open dump sites and controlled dump facilities Establish waste-to-energy facilities Promote the use of existing recycling technologies

DENR-EMB

Sector Outcome: Increase Adaptive Capacities and Resilience of Ecosystems Potential impacts of natural disasters and meteorological events, environmental hazards, and human-induced events

Relocate families living in vulnerable and hazard prone areas Coordinate with LGUs to evacuate families affected by disasters Monitor compliance of Telcos to R.A. 10639:The Free Mobile Disaster Act

OCD, DILG, NTC, NDRRMC

Lack of technical expertise of LGUs to prepare Comprehensive Development Plans and Local Climate Change Action Plan

Provide technical and financial assistance to capacitate LGUs to prepare their CDPs Coordinate with the Climate Change Commission on the preparation and review of LCCAPs

DILG

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Chapter 21

Regional Development Plan 2017-2022

Implementation and Monitoring

Investment Programming and Budgeting Linkages

Following the budget preparation schedule, the RDC conducted an annual budget review and endorsed the FY 2018 budget of 18 RLAs and 5 SUCs during the 1st Quarter RDC Full Council Meeting on March 9, 2017. The Calabarzon RDC endorsed a total proposed budget of PhP126.935 billion for programs and projects supportive to the attainment of the region’s vision to be a highly livable and globally-competitive industrial region. The Calabarzon Regional Development Investment Program 2017-2022 served as the guide in the review of the budget proposals. To guide future budget exercises, RDC approved the Updated Calabarzon RDIP 2018-2022 to identify additional programs and projects that would contribute in achieving the development goals of the RDP 2017-2022. The total investment requirement in the Updated RDIP is PhP175.103 billion with around 46 percent for proposed and on-going projects of infrastructure agencies. The General Appropriations Act for FY 2018 included PhP99.723 billion approved budget for 18 RLAs and five SUCs in Calabarzon Region. This was 78.56 percent of the total proposed budget endorsed by the RDC.

Physical, Sectoral and Area-specific Planning The Updated Disaster Risk-Reduction and Management (DRRM) and Climate Change and Adaptation (CCA) Enhanced Calabarzon Regional Physical Framework Plan (RPFP) 2017-2046 was approved by the RDC on December 2018. The RPFP was updated to mainstream DRRM and CCA, taking into account the recent data in the 2015 Census of Population, and other recent land use and socio-economic developments in the region. The RPFP identifies 12 strategic development clusters, and strategies and major programs and projects on the four land use policy areas on the development of Settlements, Production, Protection, and Infrastructure. In support to the RDP, several sectoral plans were also prepared. The Calabarzon Regional Development Research Agenda 2018-2022 identifies researches that addresses the issues highlighted in the RDP while the Calabarzon Information, Communication and Technology Plan 2017-2022 shows how information technology can be propagated in all sectors in the region. The Regional Statistical Development Program 2018-2023 aims to ensure the continuous provision of relevant,, timely, and reliable data for regional development planning.

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Following a cluster approach to tourism development, the Real-Infanta-General Nakar (REINA) Tourism Development Plan was completed to guide sustainable tourism development activities and facilitate inflow of tourism-related investments in the said municipalities of Quezon Province.

Project and Plan Monitoring and Evaluation The Regional Project Monitoring Committee (RPMC) inspected 18 projects which include major land and water transport and social infrastructure projects such as the Umiray Bridge in General Nakar, bypass roads in Quezon and Laguna, Calamba-Tagaytay Road, Taal Circumferential Road, LRT Line 1 and 2 Extension, Batangas Port Phase I Passenger Terminal, Calatagan Port, and Tanauan City Public Market Redevelopment Project, among others. Problem Solving Sessions were also facilitated by the RPMC for four problematic projects which led to the successful relocation of informal settlers that occupied the ROW of the San Juan-Laiya Road and provision of government assistance to the relocatees in San Juan and those affected by the LRT Line 1 extension in Cavite. The RPMC monitored the status of major projects through the collection of project status reports from agencies and local project monitoring committees (LPMC). These project updates were assessed, consolidated, published in the quarterly RPMC Bulletin, and submitted to the National PMC for onward submission to the Office of the President. To strengthen monitoring and evaluation at the local level, continuous capacity building on the Regional Project Monitoring Evaluation System was provided to the provincial LPMCs. On project evaluation, three impact evaluation studies were completed for the following projects: Marikina-Infanta Road, Batangas Port Development Project Phase II, and the Laguna de Bay Institutional Strengthening and Community Participation Project. The studies determined the positive and negative impacts of the projects to the communities or beneficiaries and came-up with recommendations for concerned agencies and stakeholders to sustain the gains or address issues brought about by the projects.

Implementation of Support Activities To facilitate and promote more private investments in the region based on identified sectors with existing and potential high productivity, the RDC approved the Calabarzon Investment Priority Areas 2019-2020. Under the newly reactivated RDC Investments Promotions Group (IPG), technical working groups for the five priority industries were created to formulate, implement, and monitor an action plan to develop these industries to be globally competitive. The IPG facilitated the conduct of the United States Federation of Philippine American Chambers of Commerce Inbound Mission on October 16, 2018 at Batangas City. Several investment promotion communication materials and mechanisms, i.e. brochure, video, and website, are currently being developed. On plan advocacy, the RDP and Ambisyon Natin 2040 Communication Plan 2018-2022 is being continuously implemented to increase awareness and understanding of the PDP and RDP, and the country’s long-term vision, encourage participation of different actors to contribute in plan implementation, and promote aligned development priorities and goals.

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Credits

BatStateU Batangas State University

BFAR Bureau of Fisheries and Aquatic Resources

BLGF Bureau of Local Government and Finance

BJMP Bureau of Jail Management and Penology

BSP Bangko Sentral ng Pilipinas

CDA Cooperative Development Authority

CHED Commission on Higher Education

COA Commission on Audit

CSC Civil Service Commission

CvSU Cavite State University

DA Department of Agriculture

DAR Department of Agrarian Reform

DBM Department of Budget and Management

DBP Development Bank of the Philippines

DENR Department of Environment and Natural Resources

DENR-EMB Environment Management Bureau

DepEd Department of Education

DILG Department of Interior and Local Government

DOE Department of Energy

DOH Department of Health

DOH-CHD Center for Health Development

DOJ-PPA Department of Justice – Parole and Probation Administration

DOLE Department of Labor and Employment

DOST Department of Science and Technology

DOT Department of Tourism

DPWH Department of Public Works and Highways

DSWD Department of Social Welfare and Development

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2017 Regional Development Report 125

DTI Department of Trade and Industry

IBPAP IT and Business Process Association of the Philippines

LBP Landbank of the Philippines

LLDA Laguna Lake Development Authority

LSPU Laguna State Polytechnic University

LWUA Local Water Utilities Administration

NEDA National Economic and Development Authority

NIA National Irrigation Administration

NWRB National Water Resource Board

OCD Office of Civil Defense

OPAPP Office of the Presidential Adviser on the Peace Process

OWWA Overseas Workers Welfare Administration

PCA Philippine Coconut Authority

PDEA Philippine Drug Enforcement Agency

PEZA Philippine Economic Zone Authority

PNP Philippine National Police

PPA Philippine Ports Authority (Batangas and Marquez)

PSA Philippine Statistics Authority

SLSU Southern Luzon State University

TESDA Technical Education and Skills Development Authority

URS University of Rizal System