Energy and Rice Deficiency: Reform Challenges for the Last Quarter of the Aquino Administration
Benckmarking the Performance of the Aquino Administration - Year 3
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7/28/2019 Benckmarking the Performance of the Aquino Administration - Year 3
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MOVEMENTFORGOODGOVERNANCE1
BENCHMARKINGTHEPERFORMANCEOFTHEAQUINO
ADMINISTRATION,YEAR3
Whatsinanumber?
Anumbermeasuresperformance,quantifiestheamountandqualityofwork,
confirmssuccessesandidentifiesweaknesses. Itisatooltokeeptrackofprogressand
checksifpromisesmadebyanindividualhavebeendelivered. Anumberiscompassthat
pointsareasforimprovement.Anumberisatoolforaccountabilityandinformsthepublic
whetherresponsibilitieshavebeencarriedoutwell.
Numbershad
been
the
favorite
tools
of
the
late
Secretary
Robredo.
He
had
metrics
forvariousaspectsofgovernance. Hemeasuredthedeclineinmaternaldeaths,the
increaseinachievementscoresofchildren,theincreaseintheamountofrevenuesthatthe
cityraised. Hemeasuredthecitygovernmentssuccessagainstthedeclineinpoverty,the
numberofjobscreated,thedeclineincrimerate. Hehadameasureforeverything.
WhenhebecameDILGSecretary,heinstitutedaperformanceincentivesystemfor
localgovernmentsbasedonmetricsontransparencyandfiscalmanagement.
TheMovementforGoodGovernance(MGG)carriesonthelegacyofSecretaryJesse
Robredobyhelpinginstitutetransparencyandaccountability. Since2010,ithasmeasured
the
performance
of
the
Aquino
administration
using
numbers.
MGG
assesses
the
performanceofgovernmentbasedontheextenttowhichthepromisesandtheplatformof
thePresidentwhenhewascampaigningin2009havebeencarriedout.ThePresidents
campaignplatformwasreiteratedinhisinauguraladdress,wherehepromisedtokeephis
promises:Nomoreturningbackonpledgesmadeduringthecampaign,whethertodayor
inthecomingchallengesthatwillconfrontusoverthenextsixyears. Itmetamorphosed
intotheprogramofgovernmentformallyknownashisSocialContractwiththeFilipino
People2 whichinturn,servesasthebasisoftherecentlyreleased20112016Philippine
DevelopmentPlan(PDP),withInclusiveGrowthasthemantra.
MGGusesascorecardsystemtoassesstheextenttowhichtheadministrationhas
implemented
the
platform
of
the
President.
Scoring
is
done
based
on
results
relative
to
targets.
Score Assessment
0 ThePresidenthasbrokenhispromise.2.5 Therehasbeenverysloworlittleprogressonhispromise.
5 Somethinghasbeenaccomplishedbutislowerthanexpected.
7.5 Theadministrationisontrackandisexpectedtoachievethe
targetasscheduled.
10 Thetargethasbeenachievedasscheduled.
1 The Movement for Good Governance (MGG) is a coalition of citizens and organizations that wasorganized to build a constituency for better governance. Its Chair is Prof. Solita C. Monsod.2 A 16point program that can be accessed from The Official Gazette
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Theassessmentstudyismeantnottobeacritiquebutatoolforidentifying
successesandalertinggovernmentonareasthatneedstrengtheningandimprovement.
Thestudyisaimednottodisheartentheactorsbuttohelpthemandthecitizenstakeaction
toimproveprocessesandsystemsthatcanstrengthenperformance.
Sevenareasareassessed: theeconomy;managementofpublicfinance,deliveryof
health,education,environment,governance,andagriculture.
A. TheEconomy
ItistothecreditofthePNoyAdministrationthatalongwithits20112016
PhilippineDevelopmentPlan(PDP),itpublishestheResultsMatrices(RM)whichisan
excellenttooltomonitorandevaluatetheprogressofthePDPinitspursuitofinclusive
growth.
TheNational
Statistical
Coordination
Board
(NSCB)
has
just
released
its
Statistical
IndicatorsonPhilippineDevelopmentorStatDev2012,whichcontains227indicatorslisted
intheRM,togetherwiththeirtargetsandtheprobabilitiesofattainingthese,giventhe
performanceinthepastthreeyears. Accordingtoitscalculations,93oftheposted
indicatorswerelikelytobeattained,78wereunlikelyand26couldgoeitherway. Theother
indicatorsarewithouttargets,butwereclassifiedasincreasing,decreasing,orunchanged.
TheMGGeconomicscorecardmakesuseoftheStatDevwhereverpossible,but
obviouslywillwanttofocusontheforestratherthanthetrees. Italsomustbenotedthat
whatisbeingassessedisnotthecountrysdevelopmentperformanceforthecalendaryear
2012,butspecificallyforthethirdyearofthePNoyadministrationthatistosay,the
period
covering
July
1,
2012
to
the
present.
Moreover,
the
aim
of
the
MGG
is
to
provide
a
hopefullyobjective,nonpartisanperspectiveontheStateoftheNationasidefromwhatthe
PresidentwillprovideduringhisSONA.
TheMGGEconomicScorecard2011wasbaseddirectlyonthe2010campaign
platformofPresidentAquino,whichlatermetamorphosedintohisSocialContractwiththe
FilipinoPeopleandbecamethebasisofthe20112016PDP. The2012EconomicScorecard
shiftedtothePDPformat,althoughitcalledattentiontowhatseemedtohavebeenomitted
fromtheoriginal16pointcampaignplatform. ThisyearsScorecardwillbesimilartolast
years,althoughthereadermaywanttoassigndifferentweightstosomeoftheindicators,
aswasdoneforthefirstscorecard. Inparticular,theweightsforthegrowth,employment
and
poverty
indicators
may
be
increased,
since
the
PDP
defines
inclusive
growth
as
high
growththatissustained,thatmassivelycreatesjobs,andreducespoverty.
1. GDPGrowth: ThefirstthreequartersofPNoysthirdyearinofficesawreal
GDPgrowingat7.2%,7.1%and7.8%respectively,foranaveragegrowthrateof7.4%forthe
entireperiod. Thisisadistinctimprovementovertheperformanceoftheeconomyforthe
correspondingperiodsinhisfirstandsecondyearsinoffice,6.4percent,and4.46percent,
respectively,andmimickingaJshapedlearningcurve. Forthefirsttimeinhisthreeyearsof
office,thePDPgrowthtargetof78%ontheaveragehasbeenachieved,andthePhilippines
outperformedneighboringcountries.
GDPbyIndustrialOrigin: TheRMofthePDPlistsmorespecifictargetsunderthe
highandsustainedeconomicgrowth. TheServicessectorhititstargetatthelowendwith
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anaveragegrowthratefortheperiodat7.1(target:7.18%);theIndustrysectorhitits
targetatthehighend withanaveragegrowthrateof9.0percent;whiletheAgriculture
sectorperformancewasbelowtarget,withanaveragegrowthrateof4.2percent(target:
4.65.7%).
Score:
10.0
2. InvestmentRatio: Therealinvestment(RealCapitalFormation/GDP)ratiofor
thefirstthreequartersofYear3ofPNoysadministrationaveraged20.8percentslightly
lessthanwhatitwasinYear2(20.9%) andlessthantheYearIperformance(22.9%). The
targetfor2016is22%.
Twoopposingfactorsareinplayasfarasdeterminingthescoreforthisindicators
performance. Ontheonehand,theinvestmentratioshowsadecreasingratherthanthe
desiredincreasingtrend. Ontheotherhand,asfarasabsolutevaluesareconcerned,the
probabilityseemshighthattheneeded1.2percentagepointincreaseintheinvestment
ratioby
2016
can
be
achieved.
Last
year,
the
score
given
for
the
Investment
Ratio
was
10.
Takingtheaboveintoconsideration,thescoregiventhisyearis7.5.
Score: 7.5
3. Export/GDPRatio: TherealexporttoGDPratioistargetedtoreach64.3percent
bytheendof2016. Inabsolutenominalterms,thisimpliesincreasingexportsby$9.8billion
peryearor$3.3billionaquarter(asmentionedintheYear2MGGscorecard). Theactual
valueforthefirstthreequartersofPNoyYear2wasanaverageof46.7percent. ForPNoy
Year3,ithasactuallygonedownto44.5percent,withexportsdecreasingratherthan
increasinginvalue. Thescoregivenlastyearwas2.0. Ithastobelessthisyear.
Score: 1.5
4. EmploymentGeneration: Thetargetnetnewemploymentisanaverageof1.0
millionforeveryyearoftheplanperiod. WhilePNoysYear2employmentperformance
earneditthestopscoreof10.0,withemploymentconsistentlyexceedingonemillionfor
eachofthethreequartersmeasured(Oct.2011,Jan.2012,April2012LaborForceSurvey),
PNoysYear3showsadeteriorationinperformance: Oct.2012employmentdecreasedby
882thousandcomparedtoOctober2011,andwhiletheJanuary2013showsanincreaseof
999,000,theApril2013figuresshowagainadecreaseinemploymentby31,000.
The
large
decrease
in
October
2012
employment
has
been
traced
to
an
unintended
changeinthedefinitionofemploymentforOctober2011andthereforemadethe
employmentfiguresforthetwoperiodsnoncomparable. Atthispoint,itisnotsure
whetherwecangetthecorrectedfigures. ButtheAprilfigureshavenotbeenquestioned.
Onthebrightside,thepercentageofwageandsalariedemploymenttototal
employmenthitthe60percentmarkforthefirsttimeinJanuaryofthisyear,andthe
averageforthethreequartersofPNoysYear3was58.2percent,comparedtotheYear2,
anaverageof55percent.
Score: 5.0
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5. IncomePovertyReduction: Initialresultsfromthetriennial2012FamilyIncome
andExpendituresSurvey(FIES)showadisappointinglysmallreductioninpopulationpoverty
incidenceforthefirstsemesterof2012(27.9%)ascomparedtothefirstsemesterof2009
(28.6%). Thisinspiteofthefactthatthegrowthrateoftheeconomyforthefirsthalfof
2012averagedarespectable6.4percent. Atthesametime,Ginicoefficientscomputed
fromthe
data
show
abarely
perceptible
decrease
in
inequality
between
the
two
periods.
Bothoftheseindicatorsgiverisetodoubtsthatthegrowthoftheeconomyhasbeen
inclusive.
ThisisnottodenigratetheadministrationsConditionalCashTransfer(CCT)
Program. Ithasbecomeobviousthattheamountsinvolvedinthetransfersamaximum
amountofP15,000perfamily,isnotsufficienttoallowaverypoorfamilytocrossthe
povertyline. Toaccomplishthat,theaveragecashtransferwouldhavetobeoverP27,000
perfamily.
Thereismorebadnews: ThePNoyadministrationseemstohaveperformedeven
morepoorly
in
Year
3than
in
Year
2insofar
as
the
acquisition/distribution
of
land
(LAD)
undertheagrarianreformprogramisconcerned. AsmentionedinlastyearsScorecard,
only54.6percentofthetargetedhectaragefor2011hadbeenacquired/distributed. In
2012,theoriginaltargetof240,000seemstohavebeenreducedto180,000buteventhen,
only59,837hectares(includingmore11,991hectaresinthepipeline)ofEmancipation
Patents(EPs) andCertificateofLandOwnershipAwards(CLOAs)areregisteredwith the
LandRegistrationAuthority)fortheyearanaccomplishmentofabout33percent. For
2013,theannualtargetswereagainreduced,thistimeto160,000hectares,butasofthe
firstquarter,onlyalittleover10percent(16,327has)ofthathadbeenaccomplished.
Insofarfarastheselfratedsurveysareconcerned,therehasbeennostatistically
significant
change
in
self
rated
hunger
and
poverty.
Score: 4.0
6. Infrastructure: InsofarasthebudgetisconcernedthePNoyadministrationis
finallyputtingitsmoneywhereitsmouthis. Budgetedinfrastructureoutlaysdecreasedby
14percentin2011fromits2010levels;buttheoutlayswentupby25percentbetween
2011and2012,andanother17percentforthisyear. Moreover,atleastasfarasthe
DPWHisconcerned,theprojectsarebeingimplementedontimeandsometimeseven
undercost.
Onthenegativeside,thePublicPrivatePartnerships(PPP)projectsseemto
continue
on
their
very
slow
pace.
As
of
this
writing,
only
3
out
of
the
22
original
list
of
PPP
projectsarebeingimplemented,2more thisyearthanwhatwasreportedlastyear. Recent
newsreportedthatPresidentAquinoapproved6PPPprojectsworthP76.5billion(they
werepurelygovernmentprojectsandthetwoprojectsworthP33.0billionwereputon
hold).
Score: 5
7. MacroeconomicStability:
ThefiscaldeficittoGDPratio,whichistargetedtofallfrom3.5%in2010to2.0%in
2016,wasactuallyachievedin2011,andwasat2.3percentlastyear. Thereducedinterest
ratesthatthegovernmentispayingbecauseofitshighercreditstanding,plusthepassageof
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thesintaxbillintolaw(ahugefeatherinPNoyscap)increasetheprobabilityofachieving
andsurpassingthattargetby2016.
Militatingagainstthat,however,istheveryslowimprovementintaxeffort,whichis
targetedinthePDPtoreach15.6percentofGDPby2016,from12.1percentin2010,which
meansan
average
increase
in
tax
effort
of
about
0.6
percentage
points
ayear.
That
did
not
happeneitherin2011orin2012,wheretaxeffortwas12.4percentand12.9percent
respectively. Thefirstquarterof2013seemstoshowareductionratherthananincreasein
axeffort: 11.9percentcomparedtoQ12012at12.5percent.
BIRstaxeffort,whichwastargetedtoincreaseby0.3percentagepointsayear,was
verymuchontrackin2011and2012,risingby0.3andthen0.5percentagepoints,toreach
12.9percentbytheendof2012. Butforthefirstquarterof2013,ithasdecreasedto11.9
percent,lowerthanthefirstquarterperformanceofthepreviousyear(12.5percent).
ThetaxeffortoftheBureauofCustomsnevergotontrack. Insteadofincreasingby
0.1percentage
point,
it
decreased
by
0.2
percentage
points
(from
2.9
percent
to
2.7
percent
ofGDP),stayedatthatratioin2012,andforthefirstquarterof2013,sliddownto2.6
percentofGDP.
Lastyearscommentisrepeatedhere: thegovernmentsinabilitytoimplement
effectivelyitsRATS(Runafterthesmugglers)andRATES(runaftertaxevaders)programs.
OnefactorthatinhibitstheDOJfromprosecutingthecaseseffectivelyandontimeisthe
DOJsinabilitytofillupitsexistingplantillaofprosecutors,muchlessitsnewandlarger
plantilla;whichinturnisbecauseMalacanangseemstohavesatontherecommendations
oftheDOJandthatencouragesevenmoresmugglingandevasion.
Score:
6
8. Inflation(PriceStability). Withatargetofkeepingtheinflationratesinthe35
percent range,thegovernmentseffortsatkeepingpricesstablehasbeenanunmitigated
success,andtheBangkoSentralngPilipinas(BSP)istobecongratulated.
Score: 10
OverallScoreforMacrostability: 8
9. GovernancethePhilippinesComparedwithOtherCountries. Asnotedlast
year,
the
PDP
emphasizes
that
if
weak
infrastructure
is
a
major
constraint
to
growth,
so
are
weakinstitutionsandgovernancefailures. AndPNoysdevelopmentplanincludestargets
ofeitherimprovingthestandingofthePhilippinescomparedtoothercountries,or
improvingitsscores,asevaluatedbyinternationalagencies.
9.1.DoingBusiness: Therehasbeennonewinformationsincelastyear. Butthe
Philippinesgoalofbeinginthetopthirdofthe185countries(Singaporeis1,Malaysiais12,
Thailandis18)surveyeddoesnotseemtobeattainableatthispoint(thePhilippineswent
upfrom146to134,butthenwentdownto136). Score: 4
9.2.GlobalCompetitivenessIndex(GCI). ThePDPobjectiveistoputthePhilippines
inthetopthirdofthecountriesbeingranked. TheoverallGCIfor2012 2013is65outof
144countries,amarkedimprovementover20112012(75outof142),whichinturn
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showedamarkedimprovementover20102011(85outof139). Atthisrate,thePDPwill
achieveitsgoalby2015insteadof2016. Itshouldbenotedthough,thatitsoverallscore,on
arangefrom1(lowest)to7(highest),hasonlybeeninchingupwards: from4.0to4.1to4.2.
Thailand,withanoverallscoreof4.5currentlyisinthe38thplace,whileMalaysia,withan
overallscoreof5.1,ranks25th. Score: 10
9.3.TheMillenniumChallengeScorecard. ThePDPtargetfor2016istoscoreabove
themedianscoreofthecountriesbeingevaluatedthereasonbeingthatforacountrytobe
eligibleforacompact(aidgrant)withtheMillenniumDevelopmentCorporation,itmust
performabovethemedianorabsolutethresholdonatleasthalfofthe20indicatorsitlists.
TheotherrequirementsincludescoringabovethemedianontheControlofCorruption
indicatorandabovethethresholdoneithertheCivilLibertiesorPoliticalRightsindicators).
InPNoysYear2,thePhilippineswasbelowthemedianscorein11outof20
indicators;italsowasbelowthemedianintheControlofCorruptionindicator,althoughit
wasabovetheminimumabsolutethresholdinthedemocraticrightsindicator. Thusit
failedtwo
out
of
the
three
requirements.
The
2013
Country
Scorebook
shows
that
the
PhilippinespassedthePassHalfOverallRequirement,havingscoresabovethemedianin11
outofthe20indicators.Forthis,theMGGgivesitascoreof10. Itmustbenoted,however,
thatweagainfailedintheControlofCorruptionIndicator. Score: 10
9.4. WorldJusticeProjectRuleofLawIndex. ThePDPtargetfor2016istomove
fromthebottomtothetophalfoftheregional(EastAsiaandthePacific)countryrankings.
In2010,thisinvolved7countries,andin2011,itinvolved13countries. For20122013it
involves14countries. Betweenthetwolatteryears,thepaceofimprovementhasbeen
glacial. Thecountrysaveragerankingin2011was10.5/13,andin2012itwas10.75/14.
Moreover,thecountrysactualscores(0lowest,1highest)in7outofthe8factors
evaluated
declined
(the
only
factor
where
the
score
increased
was
open
government).
The
averagescoreforallfactorswas0.549in2011,decliningto0.495in2012. Score: 4
OverallGovernance(comparedwithothercountries)Score: 7
10.Others. The DBMReviewandPlantoReduceOverheadCosts,the
DepartmentofAgricultureReviewofAllPrograms,ModernizetheAgricultureSectorwere
partoftheEconomicScorecardforYearIbecausetheywereamongthecampaignpromises
ofPNoy. Theseprogramsarestillawaitingimplementation. Score:3.0.Thegoodnews,of
course,isthattheSinTax,whichwehadurgedthePNoyadministrationtoenactsinceit
wasnotanewtaxmeasurebutwouldincreaserevenues(nottomentionthepositivehealth
impact)
was
passed
in
P
Noys
Year3.
Score:
10.0
Score: 6.5
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ScorecardontheEconomy,2010 2012,andthefirstquarterof2013
1. InclusiveEconomicgrowth 20103 2011 2012
RealGDPgrowthrate 6.2 4.5 10
Investmentratio 8 2.0 7.5
Export/GDP
2.0
1.5
EmploymentGeneration 7.0 10 5.0
IncomePovertyreduction 5.0 4.0
Infrastructure 2.5 2.5 5.0
Macrostability 4.0 8.0
Governancecomparedtoothercountries 5.0 7.0
Others 0 3.0 6.5
Average score 4.4 5.6 6.0
B. MANAGEMENTOFPUBLICFINANCE,2013
Thesocial
contract
of
the
President
made
little
mention
of
strategies
on
how
governmentwillraiserevenues. ThePresidentpromisedtorefrainfromimposingnew
taxesorincreasingtaxrates Hebelievedthatadditionalrevenueswillbeforthcomingif
webecomemoreseriousincurbingandpunishingtaxevasionandsmuggling.4
Truetohispromise,nonewtaxeshavebeenproposedbygovernmentinthe
lastthreeyears. Thankstothepersistentandconsistentadvocacyofhealthgroupsandcivil
society,thehardworkoftheDepartmentofFinance,andthesupportoftheBIR
Commissioner,theexcisetaxoncigarettes,beeranddistilledspiritswasrestructured.
Certainly,theleadershipofthePresidentwascriticalinhavingthemeasurepassedby
Congress. Thisisonesituationwhenheshouldbelaudedinsteadofcriticizedforbreaking
hisword.
The
excise
tax
reform
was
long
overdue.
Although
the
amendments
were
far
fromwhatisideal,governmentshouldbecommendedforliftingthepricefreezeon
cigarettesandalcoholproducts. Aunitarytaxrateismadepossibleby2017. Someformof
indexation5hasbeenintroducedstarting2016fordistilledspiritsand2018forcigarettesand
beer.
SincetheAquinogovernmenthasalimitedplatformonpublicfinance,MGG
useditsscorecardongovernanceinassessingpublicfinance: Isiteffective;isitfair;isit
ethical;and,isitempowering?
1. IstheprogramEfficient? Thestrategyofgovernmentingeneratingrevenuesisastrong
drive
against
evasion
and
smuggling.
In
addition,
the
BIR
issues
revenue
regulations
tocollectmoretaxesevenitmeansreinterpretingthelaworadoptingarestrictive
interpretationoftaxlaws.
AsofJune13,2013,theBIRhasfiled160casesagainsttaxpayerswhoaresuspected
tobenoncompliantwithtaxlawswiththeDepartmentofJustice. Thisactionreceiveshigh
3 The MGG scorecard in 2010 included no new taxes as part of the platform of the President. A
score of 7.5 was given with a weight of 1.0. The 2010 scorecard included the platform of
plugging revenue leakages which was given a score of 4.95 with a weight of 1.0. This promise
of the President was included in the macrostability indicator in 2012.
4 Speech of the President before the Makati Business Club and reported by ABSCBNNews.com,January 21, 2010.5 The increase is pegged at 4.0 percent.
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publicityandprovidestheimpressionthattheBIRseriouslymeansbusiness.6 Ofthese
cases,138remainwiththeDOJinvariousstagesofprosecutionandtherestofcasesare
pendingbeforevariouscourts.7 NoonehasbeenputtojailandBIRnailedoneconviction
wherethepersoninvolvedisnowafugitive.8Normally,ittakes4to6yearstoconcludea
taxevasioncase.
Despitetheslowgrindofjusticeandshortcomingsinfilingcasesagainstsuspected
taxviolators,theCommissionersaidthecampaignisworking.9
DoesthefervorofBIRyieldresultsintermsofincreasedcollection?BIRscollection
in2012grewby14.47percent. BIRcertainlydeservespartofthe creditforthegrowthin
collectionbuttherevenueincreaseneedstobeviewedwithinthecontextofagrowing
economyandonhowrevenuesarecollected. Grossdomesticproduct(GDP)hadanominal
growthof10percent.EstimatesthroughtimeshowthatBIRrevenuesgrowbymorethan
the increaseinincomeandprices.10Thisisknownaselasticity. IncometaxandVAT
collection,amongothersources,increaseautomaticallyastaxpayersearnmoreincomeand
consumemore
goods
and
services.
Inflation
results
to
higher
collection
since
the
VAT
base
becomesbiggerbecauseofhigherprices. Theforecastfor2012wasthatBIRrevenues
wouldgrow1.5timesmorethanthegrowthinincomeandprices. TheBIRstargetwas
missedbyonlyahairline,P9.6billion
Thegrowthincollectionislikewisebuoyedbythewithholdingtaxschemeand
thevoluntarypaymentoftaxpayers. Almost98percentoftaxesarecollectedthrough
voluntarypaymentsandthewithholdingtaxsystem. Only2.45percentoftaxeswere
collectedthroughpreliminaryandfinalassessmentsbytheBIR.11
TheBureauofCustomsontheotherhandmisseditstargetbyasignificant
amount.
It
collected
P289.9
billion
compared
to
a
target
of
P347.1
billion
in
2012.
The
BOC
iscontinuouslyhoundedbysmugglingproblems. Thirtysixpercent(36%)ofthesupplyofoil
productsisestimatedtohaveescapedtaxes. Agriculturalproductsarealsosmuggledinto
thecountry. In2012,thetotalvolumeofsmuggledagriculturalproductswasestimatedat
P32.0billion.12
PuttingtheBOCandtheBIRtaxcollection,thecountrystaxeffortortheratioof
taxrevenuestoGDP,wasat12.9percentin2012,0.5percentagepointshigherthan2011.
Thehighestperformanceeverof17.0percentwasin1996duringtheRamosadministration.
Therevenuesofgovernmentfinanced86.0percentoftheexpendituresof
government
of
P1.778
trillion
in
2012
with
a
deficit
of
P
242
billion.
Government
continues
6www.MB.com.ph, June 13,20137 The number of cases that has been filed before DOJ could have increased to 148 with 10 more
cases that were filed in June 2013.8 Daxim L. Lucas, 160 cases filed, not one tax evader in jail but BIR drive is working. Philippine
Daily Inquirer, April 4, 2013
9 Ibid10 Public Finance Institute of the Philippines, Tax Buoyancy of Major national Taxes19822002.
Elasticity estimates do not consider the effect of legislative and administrative changes on the
growth of revenues.
11 Bureau of Internal Revenue, 2011 Annual Report12 Christine F. Herrera, PH tagged Asias Smuggling Capital, http://manilastandardtoday.com/2013/04/08/phtaggedasiassmugglingcapital
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tousedebtfinancingbuthasbeensuccessfulinbringingdownthedeficittoGDPratioto2.3
percentin2011comparedto3.7percentin2009. Debtservicehasalsobeensuccessfully
reducedfrom7.8percentin2009to6.9percentin2012.
Thegovernmentundertookeffortstorebalancedebttowardsdomestic
obligations.
Theshare
foreign
debt
has
been
trimmed
from
43.8
percent
in
2009
to
36.2
percentin2012. Thematurityofdebtinstrumentshasbeenlengthened,forexample,the
introductionofthe25yearGlobalPesoNotes. Theshareoflongtermdebtinstrumentsis
now86.2percent(86.2%)thatreducesrefinancingriskandsupportsthedevelopmentofa
capitalmarket. Thecostofdebtservicehasbeenreducedbypartiallyredenominating
foreigncurrencydebttopesodebt.13
Score:
BIR,7.5,withaweightof80percent: 6
BOC,3withaweightof20percent:0.6
Deficitmanagementanddebtreduction: 8
Total:
7.3
2. IstheProgramFair? Thefairnessofhowrevenuesareraisedandspentis
perhapsmoreimportanttothetaxpayers. Inexchangeforapartofhis/herincomethatis
surrenderedtogovernment,ataxpayerexpectsanequivalentamountofpublicgoodsand
servicesinreturn. He/Shealsoexpectsthatalltaxpayersinsimilarcircumstancessharea
similartaxburdenandthosewhohavehigherincomesandconsumptionpaymore.
InequityhasbeenaseriousflawofthePhilippinetaxsystemforyears,butthe
administrationhasyettoshowthatitisaddressingtheproblem. Wageearnerscontinueto
beartheburdenofgovernmentfinancing. Almost82percentoftaxespaidbyindividuals
come
from
wage
earners
and
the
self
employed
taxpayers
contributed
only
5.2
percent
in
2012. Theinequityhasbecomeworsecomparedtopreviousyears. (Forexample,theshare
ofwageearnersin2004waslessheavyat70.84percent).
TheDOFandBIRannouncedthattheywouldfocusonincreasingefficiencyin
taxingtheselfemployed. Theyshouldbracethemselvesforthechallengeconsideringthat
only15.05percentoftheselfemployedarepartoftheBIRstaxbase. TheNSOreported
12.1millionselfemployedindividualsin2012andtheBIRreportedonly1.82million
taxpayerswhoregisteredamongtheselfemployed. Unlessthosewhoareoutsidethetax
netaremadetosharethecostsoffinancingpublicservices,wageearnersandthe
professionalswhoarereligiouslycomplyingwiththeirtaxobligationscannotexpectany
significant
tax
relief.
Sincethereisnoescapefortaxpayerswhoarealreadypartofthetaxbase,the
BIRtakeseveryopportunitytowringthetoweldry. Rulesandregulationsarerevisedinan
unprecedentedwaywithlittleregardtotheantagonismandtheuncertaintythatthis
practicecreates. Thebeliefthatrulesareeverchangingandthatthatpoliciesareunstable
donotfosterconfidenceontheruleoflawingovernment. Itpavesthewayforarbitrariness
andapersonalitydrivenformofgovernance. Thisishowinstitutionsareweakened.
ThefollowingaresomeoftheexamplesofhowBIRassumedthatpoliciesinthe
pasthavebeenbadandwrongandshouldbecorrected. Insomeinstances,theeffectsof
therulingshavebeenmaderetroactive:
13 Department of Finance, Governance and Fiscal Responsibility 2011 Annual Report.
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a.RetroactiveApplicationofTaxRules. Section246oftheTaxCodeprovides
that,withafewexceptions,changesinBIRrulingsshouldnotapplyretroactivelyifsuchwill
beprejudicialtothetaxpayers.
OnOctober26,2010,anewsetofcriteriawasissuedforavailmentofthe15percentincometaxrateofFilipinosemployedinRHQsandROHQs(RR112010). Theimpositionoftheposition/functionand
compensationthresholdtestswouldshiftcertainFilipinoemployees
fromthe15%taxratetothe32%rate. Thisrulewasmadetoretroact
toJanuary1,2011althoughtheruleswereissuedinOctober.
AnotherinstancewasthereversaloftherulingonthetaxexemptionofPEACEbonds.Thetaxwascollected(andtheentireburdenshifted)on
themostrecentholdersofthebond. Ideally,thisshouldhavebeen
collectedatthestartandthecostofthetaxshouldhavebeenimputed
inthe
subsequent
transfer
prices.
b.ProhibitiononthetransferofTaxCreditCertificatesUndertheVATsystem,
taxpayerswhohavepaidinputVATonzeroratedtransactionsorwhoseinputVATisgreater
thantheoutputVATcanclaimataxrefund. However,thePhilippinegovernmentisyetto
conformtothisprotocolandissuesTaxCreditCertificatesinstead.Withoutbroad
consultations,theBIRprohibitedthetransfersofTCCs on August20,2011,. Theabsenceof
therefundsystemmakestheVATsysteminefficientsincetaxpayersarenotallowedto
recouptheVATthatformedpartoftheirinputs. TheprohibitionofthetransferofTCCsputs
theminaworsecondition. Insteadofcash,theyareleftholdingTCCSthatcannotbesoldor
transferred.
c.SubmissionofAccountInformationReturn(AIR)byindividualtaxpayers
disclosinginformationonincomesubjectedtofinaltaxesandtaxexemptincome. The
impositionoffinaltaxesonpassiveincomewasadoptedintheeighties. Studiesshowed
thattaxpayersdidnotreportpassiveincome,i.e.interest,dividends,capitalgainstotheBIR.
Governmentthenimposedafinaltaxonpassiveincomewhichiswithheldatsource,i.e.by
thebankorthecorporationdeclaringadividend. Afinaltaxrelievesthetaxpayerthe
difficultiesofreportinghispassiveincometotheBIRandfilingareturn. TheBIRreverses
thisfacilityofcomplianceandrequiresthetaxpayerstoorganizedataontheirpassive
incomeandreportthemtotheBureau.
d.
Changing
the
rules
on
tax
exemption.
PEZA
companies
under
the
5%
gross
incometaxregimeenjoyexemptionfromalltaxes. Inrecentrulings,however,theBIRhas
beenreversingexemptionsgrantedinpreviousrulingswhichhavebeenupheldincourt
decisions. Forexample,aPEZAcompanywasmadeliabletodocumentarystamptaxonthe
leaseofthebuildingusedasaproductionfacility. Thejustification: theDSTexemptionis
limitedtotheregisteredactivityandleasingisnotaregisteredactivityofthePEZA
registeredmanufacturingcompany.
ThemostclassicexampleisRevenueRegulation52012whichdeclaredthatall
rulingspriortoJanuary1,1998shallnolongerhaveanybindingeffect. Consequently,all
suchrulingscannotbeinvokedasbasisforanycurrentbusinesstransactionsandneithercan
these
rulings
be
used
as
basis
for
securing
legal
opinions.
Does
the
revocation
of
previous
rulingsimplythatallpriorcommissionersbeforethepresentonewerewrong?
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Someofthehemanymajorrulingswhichreversedandorchangedtherulesin
taxationarelistedintheannex.
Score:2.5
2.IstheProgramempowering? Empowermentmeansthattheadministration
engagesstakeholdersindecisionmakingandinspiresunity,trust,andoptimism. Thelatter
impliesthattheadministrationsharestheconcernsandvaluesoftheordinaryFilipinoand
hasacompellingvisionwhichinspireshope,andmakesusproudtobeFilipinos.
ThemanyinitiativesoftheDepartmentofBudgetandManagement(DBM),
particularlyitsBottomupBudgeting(BUB)approachareespeciallyrecognizedfortheir
empoweringcharacteristic. Localgovernmentsinpartnershipwithcivilsocietyprepare
LocalPovertyReductionPlanswhichareconsideredinthepreparationofthebudget.
AlthoughtherearebirthingpainsintheimplementationoftheBUB,e.g.theBUBproposals
arerejected
by
regional
officials,
the
willingness
and
openness
of
DBM
to
consult
and
listen
tolocalcommunitiesiscommended.
TheopennessoftheDBMinmakingbasicinformationpubliclyavailableis
noteworthy. TheDBMwebsiteprovidesveryusefulstatisticsthatinformsordinarycitizens
offundreleases,thePriorityDevelopmentAssistanceFund,theschoolbuildingprogram,
amongthemanyothers. TheDBMhasformulatedaCitizensCharterwhichissimilartothe
CitizensCharterofNagaCitythatthenMayorRobredoinitiated. TheCharterliststhe
servicesavailabletocitizens,thepersonresponsiblefordeliveringtheservice,andthe
timelinebywhichtheserviceisdelivered. LikeRobredoswork,thecharterprovidesfora
feedbackmechanismfromcitizens.
AsimilarobservationcannotbemadefortheDepartmentofFinanceandits
implementingagencies. Acommonobservationisthatrulesandregulationsareformulated
withverylimitedpublicconsultation. ThewebpagesoftheDOFandtheBIRarenotas
transparentandinformationalasthewebsiteofDBM. Thestatisticsandinformationarenot
currentandwantinginadequacy. Detailsontherevenueprogramareabsentwhichwould
enableordinarycitizenstobeinformedoftheperformanceoftheagenciesofDOF. There
arenodetailsontheprogressoftheprivatizationprogram. TheDOFusedtoorganizefiscal
statisticsthatwereveryusefulforanalysis. Thebulletinisnolongercurrentandonly
providesdatafor2010.
DBM:
10
with
a
weight
of
50
percent,
5
DOF: 5withaweightof50percent,2.5
Total:7.5
3. Isitethical? WhilethePresidentisheldinhighregardwithrespecttohis
honestyandintegrity,hispersonalvirtueshaveyettobeadoptedasawayoflifebypublic
servants. Corruptionisperceivedasaseriousprobleminthecountrywithascoreof34ona
scaleof1to100with100beingveryclean.14 ThePhilippinesisconsideredthemostcorrupt
amongASEAN5countriesusingtheWorldBanksgovernanceindicatorswitha22.7
14 Corruption Perception Index, Transparency International, September 2012.
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percentilerankinthecontrolofcorruptionindicator.15Thismeansthat77.3percentof
thecountriesintheworldarebetterthanthePhilippinesincontrollingcorruption.16
Onanagencylevel,theperceptiononofthe BIRandtheBOCremainsnegative.
BothagenciesreceivednegativeratinginitssinceritytostopcorruptionwithBOCreceiving
anegative
rating
of
46
percent
and
BIR
with
anegative
rating
of
13
percent.
The
good
news
isthatthedegreeofnegativeperceptionhaslessenedfrom 46to 19fortheBIRandfrom
69to 46attheBOC.17 TheperceptiononthecorruptionatDBMimprovedsignificantly
fromanegativeratingof17percentin2009toapositive23percent.
Score: BIR: 5
BOC: 4
DBM: 7.5
Total: 5.5
Insummary,MGGdescribestheperformanceofgovernmentinpublicfinanceas
5.75. Thelackoffairness,uncertaintyinenforcementoftaxlaws,inabilityofBOCtohandle
thesmuggling
problem,
and
the
lack
of
empowerment
stick
out
like
asore
thumb.
The
tax
effortbarelyinchedupdespitealltheaggravationsduetoconstantchangesintaxrulesand
increasingcompliancecosts.MGGcommendstheDBMforitsempoweringinitiatives,its
transparency,anditsbiasforthepoorinexpendituremanagement.MGGlaudsthesuccess
ofgovernmentinbringingdownthedeficittoGDPratioaswellasthedebttoGDPratio.
ScorecardonPublicFinance,20102012
2010 2011 2012
Efficiency 6.25 5.83 7.3
Empowermentofstakeholders 5 5 7.5
Fairness 2.5
Ethicalgovernance
5
5.5Total 5.818 6.8819 5.7
C.HEALTHPROGRAM
In2010,PresidentNoynoyAquinolaunchedtheAquinoHealthAgenda(AHA)asthe
governmentssolutiontothedepressingstateofhealthinthePhilippinesatthattime.AHA
becametheoperationalbasisunderwhichtheUniversalHealthCare(UHC)orKalusugan
Pangkalahatan(KP)programiscurrentlyimplemented.Stemmingfromthereform
interventionsidentifiedintheHealthSectorReformAgenda(HSRA)andexecutedunderthe
FOURmulaONEforHealth(F1)framework,theUHCprogramisdesignedtoadvance,expand
andstreamline
the
governments
health
strategies
in
order
to
improve
the
quality,
efficiency,effectivenessandequityofthePhilippinehealthsystem.ThegoalsoftheUHC
15 World Bank Governance Indicator16 Benjamin E. Diokno, The Return of Cigarette Smuggling.17 Sun Star Cebu, Public Perception on Corruption Down: SWS, October 20,2012.SunStar andTheDailyGuardian, Ilonggos see BIR, DPWH as most Corrupt Agencies,, www.thedailyguardian.net/index.php/localnews/20524
18 Weights were assigned and the average is not computed just by averaging the scores.19 Ibid
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programarepredicatedonachievingthreethings: betterhealthoutcomes,amore
responsivehealthsystem,andmoreequitablehealthcarefinancing.
Forthepastthreeyears,theAquinoadministrationhascontinuedtoemploy
effectivemeasurestocontrolrisingcostsinuniversalcoverageimplementationwhile
ensuringthat
access
to
all
available
quality
health
service
is
afforded
to
every
Filipino,
especiallythoseinthebottomincomequintiles,withoutexperiencingfinancialhardship.In
termsofgovernance,2012hasseenthePresidentmakebigstridesandsubstantialprogress
towardsfulfillinghispromiseofhealthforall.
Thisisthethirdinstallmentinaseriesofyearlyevaluationsonthehealthsectorby
membersoftheMovementforGoodGovernance(MGG)duringtheincumbencyof
PresidentAquino.Asinpreviousyears,weprovideacareful,honestandobjective
assessmentoftheachievementsoftheAquinoadministrationbasedonhispromisetohis
bosses,theFilipinopeople,andassetforthinthemainthrustsoftheAHA.
1. RapidexpansioninNationalHealthInsuranceProgram(NHIP)enrollmentandbenefitdeliveryusingnationalsubsidiesforthepoorestfamiliesThechallengeofhavingtwonationalhealthcarefinancingmechanismsofdirect
governmentsubsidythroughtheDepartmentofHealth(DOH)andlocalgovernmentunit
(LGU)budgets,andtheNHIP,hasbeenmetheadonbytheAquinoadministration.Financial
riskprotectionthroughexpansionofthePhilippineHealthInsuranceSystem(PhilHealth)
enrollmentprogram,togetherwithimprovementsinPhilHealthbenefitsdelivery,has
continuedtobeapriorityforthePresident.
TheDOHsincreasedbudgetfor2013ofP54.6billionhelpsassurethatFilipinos
would
be
getting
substantial
health
benefits,
better
services,
and
become
healthier
through
thegovernmentspriorityhealthprograms.The2013budgetis25percenthigherthanthe
departmentsbudgetin2012andit isalmosttwicethebudgetduringthetimeofPresident
GloriaArroyo(P24billion).Moreover,PhilHealth'sbudgethasincreasedtoP60billionthis
yearcomparedtoP30billionforhealthexpendituresinthepreviousyear.PhilHealthnow
alsohasabiggerreserveofP130billion.About69percentoftheDOHbudgetisallocatedfor
priorityprograms,activities,andprojectssuchassubsidyforhealthinsurancepremium
paymentsofindigentfamiliesandhealthfacilitiesenhancementprogram.Thesepointtothe
commitmentthatthePresidenthastrulymade healthforallFilipinosatoppriority.
Governmenttriestobuildonthehealthgainsofthepastthreeyearswhilecontinuingto
providedirect,immediate,andsubstantialhealthbenefitsforallFilipinos,especiallythe
poor.
AnothermilestonefortheAquinoadministrationisthesigningintolawofRepublic
Act10606orTheNationalHealthInsuranceActof2013lastJune19,2013.Thenewlaw,
alsoknownas"AnActAmendingRepublicAct7875otherwiseknownastheNationalHealth
InsuranceActof1995,asAmendedandforOtherPurposes,amendsthe1995National
HealthInsuranceActtoensurethatallFilipinoswillgetcomprehensivehealthcareservices
throughasocializedhealthinsuranceprogramthatwillprioritizethehealthcareneedsof
theunderprivileged,sick,elderly,personswithdisabilities(PWDs),womenandchildrenand
providefreehealthcareservicestoindigents.Italsomandatesthatallcitizensofthe
PhilippinesshouldbecoveredbytheNationalHealthInsuranceProgram(NHIP).
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Inareport,PhilHealthinformedthatenrollmentratioshaveincreasedfrom62.04
percentin2010to82.38percentin2011to85percentasofMay2012.Ininterviews
conductedbyPhilHealthwithsponsoredmemberswhowereidentifiedviatheNational
HouseholdTargetingSystemforPovertyReduction(NHTSPR),thememberssharedthat
theyfeelthesupportofthecurrentadministrationcomparedtothepast.Significantefforts
havealso
been
made
on
increasing
PhilHealth
membership.
The
P12.6
billion
subsidy
for
healthinsurancepremiumwillbeusedtohelpenrollanadditional5.2millionindigent
families.
Howeverdespitetheseachievements,anumberofchallengescontinuetobe
present,foremostofwhichisfulfillingthepromiseofthePresidenttohaveallFilipinos,
especiallytheindigenouspeople,underprivilegedandPWDs,tobemembersofPhilHealth
bytheendofDecember2013.Anotherproblemisthequickturnoveroftoplevel
managementinPhilHealthwithpreviousPresident&CEODr.EduardoBanzonabruptly
resigningfromhispostonJanuary2013. ThisleftPhilHealthwithnodedicatedleaderforsix
monthsuntiltherecentappointmentofAtty.AlexPadillaasBanzonsreplacement.This
negativelyaffected
the
continuity
of
the
priority
programs
and
the
progress
that
PhilHealth
hasmadesofar.
Inaddition,outofpocketexpensesarestillsignificantduringmedicalconsultations
andhospitaladmissions.ThePhilippinesstillhasanoutofpocketexpenserateof54.7%
(althoughWorldBankfigureshaveitpeggedatamuchhigherrateof83.9%).Movingfroma
feeforserviceschemetocasepayments,zerocopaymentswithnobalancebillingfor
sponsoredmembers,andprovidingprimarycarebenefitsincludingmedicinesforoutpatient
caseswouldseemtobetheideal.Thiscouldaddressthehesitancyofsomeofourfellow
Filipinoswhostillhavethemindsetthattheyarebetteroffnotseekingcareservicesfor
mostoftheirhealthrelatedproblemsforfearofincurringlargemedicaldebts.
2. Improvedaccesstoqualityhospitalsandhealthcarefacilitiesthroughacceleratedupgradingofpublichealthfacilities
Atpresent,theaccessofpoorhouseholdstoqualityoutpatientandinpatientcare
fromhealthcarefacilitiesisstillinadequate. RuralHealthUnits(RHUs)andCityHealthUnits
(CHUs),districtandprovincialhospitals,andevenDOHretainedregionalhospitalsand
medicalcentersdonothavethenecessaryprovisionstomeettheneedsofpoorfamilies.
Healthfacilitiesarestillfewifnotnonexistent, andfarbetweengeographicallyisolatedand
disadvantagedareas(GIDA)withmostfacilitieslackingbasicsuppliesandequipment.
ReportshavebeenmadethatasofAugust2012, governmenthadalreadyspentP15billion
for
the
construction
and
improvement
of
health
facilities
nationwide
including
birthing
centersandhealthcenterswithoperatingroomstopreventmaternaldeaths.
The2013DOHbudgetallocatesP13.5billionfortheHealthFacilitiesEnhancement
Program(underthePrioritySocialandEconomicProjectsFund)andwillbeusedtoupgrade
andmodernizeselectedbarangayhealthstations,ruralhealthunits,district,provincialand
DOHretainedhospitals.InarecentreportlastFebruary2013,HealthSecretaryEnriqueOna
saidthattheDOHwasinvestingmoreoninfrastructureinordertogivethepooraccessto
goodandmodernhealthfacilities.TheDOHhasearmarkedatleastP5.5billiontorepairand
upgradehealthfacilitiesintheBicolregionthisyear.
Intermsofhealthhumanresources,theDOHisallocatingaroundP2.8billionfor
221physiciansundertheDoctorstotheBarrios(DTTB)programandfortheRuralHealth
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Practiceprogramthatwilldeploy22,500nursesfortheRegisteredNursesforHealth
EnhancementandLocalService(RNHEALS)andmidwivestoconditionalcashtransfer(CCT)
areas. TheNationalPharmaceuticalPolicyDevelopment(includingprovisionofdrugs)hasa
P1billionbudgettoprovidecompletetreatmentpackagesto1,395ruralhealthunitsand
160districthospitalsinpoormunicipalities.TheExpandedProgramonImmunization(EPI)
hasabudget
of
P1.9
billion
for
the
full
vaccination
coverage
of
eligible
children
with
011
monthsofage.
Thelistofachievementsforthepastyearwouldnotbecompleteifwedonot
mentionthepassingintolawoftheSinTaxReformBill(RepublicAct10352)lastDecember
2012.Forthefirsttime,wehaveaPresidentcommittedtoUniversalHealthCare.TheSin
TaxReformLawisexpectedtogenerateP32billionsolelyforhealthin2013with
incrementalincreaseseveryyearuntil2023orthereafter.TheSinTaxReformLawmandates
thatpartoftherevenuesfromtobaccoandalcoholproductswillbeusedtoenrollthe
poorest20%ofthecountryspopulationinPhilHealthandtoupgradeandmodernize
hospitalsandotherhealthcarefacilities,amongothers.Basedonprojectionsfromthe
Departmentof
Finance
(DOF),
the
law
is
estimated
to
generate
incremental
revenues
of
P184.31billionfrom2013to2016,ofwhicharoundP146.7billionistobeallocatedfor
health.Butdespitethesesuccesses,therearestillmanygapstofill.
Intermsofaccesstohealthcarefacilities,thereareonly18,000barangayhealth
stations(BHS)outof42,000barangays.Thisproblemiscompoundedbythefactthatmost
RHUs,districthospitalsandBHSlackthenecessarymedicines,medicalsuppliesand
emergencyequipment. ThelackofaBHSin24,000barangaysspellstroubletothepoor.
ThehealthinfrastructurebudgetmainlybenefitsDOHhospitalsaspriorityfacilities
comparedtoRHUsandBHSwhencarefullyanalyzingtheproportionofallocatedfunds.One
exampleisintheprovinceofBatangas,wheretheDOHisonlyprovidingfundingtobuildor
improve
one
BHS
per
municipality
per
year.
Even
with
priorities
being
given
to
converting
2,000RHUsintobirthingcenters,improvementsinaccesstoqualityfacilitiesremainslow.
Thereisstillalackofasenseofurgencytocurtailtheproblem.
Healthhumanresourcesmanagementisanotherkeyareatoimproveon.Inpoor
areassuchasIfugao,Palawan,Iloilo,Surigao,SarangganiandSouthCotabato,thenurses
deployedundertheRNHEALSprogramtendtobeclusteredinRHUsratherthanbeassigned
inaparticularbarangay.Withavailabilityandaccessibilityofhealthservicestothepooras
oneofthemaintenetsofUHC,thereshouldbeatleastonenurseormidwifedeployedat
thebarangaylevel.AnotherrecommendationisforRNHEALSnursestobeappointedforat
leastthreeyearstoengagethecommunityinaddressinglocalhealthproblemsaswellas
provide
continuity
of
care
and
services
especially
for
maternal
and
neonatal
health.
3. AttainmentofthehealthrelatedMilleniumDevelopmentGoals(MDGs)byapplyingadditionaleffortandresourcesinlocalitieswithhighconcentrationof
familieswhoareunabletoreceivecriticalpublichealthservices
ItseemshighlyunlikelythatthePhilippineswillmeetallofitsMDGcommitmentsby
2015particularlywithregardstoreducingmaternalmortalityandcombatingHIV/AIDS. To
reachtheMDGonreducingthematernalmortalityrate(MMR),thegoalistohavenomore
than52mothersdyingforevery100,000livebirths.However,thePhilippinesstillhasoneof
theworstmaternalandreproductivehealthindicatorsinAsiaandisat75thplaceamong189
countriesintermsofcasesofmaternaldeaths.Aradicalanddisturbingtrendhasbeenseen
inthecountrysMMRinthepastfiveyears.Duringthe2011FamilyHealthSurvey,an
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alarmingincreaseinthematernalmortalityrate(MMR)wasfoundwith94deathsin2008,
162deathsin2009,and221deathsper100,000livebirthsin2011.Thelatestdatafromthe
UnitedNationsFundforPopulationAgency(UNFPA)hasrevealedthat11mothersdieevery
dayduetomaternityrelatedcauses.
Therefore,the
passing
of
the
Reproductive
Health
(RH)
bill
into
law
(now
known
as
RepublicActNo.10354ortheResponsibleParenthoodandReproductiveHealthActof
2012)lastDecemberwaswidelyregardedasapositivestepandanothermilestoneofthe
Aquinoadministrationinhelpingalleviatethisseriousproblemwithmaternaldeaths.
However,asalandmarklawandnotwithoutmajorcontroversies,sinceitwaspassedina
predominantlyCatholicnation,theRHbillispresentlyinstatusquoanteasgrantedbythe
SupremeCourtandthishasdelayeditsimplementation.TheSupremeCourtrecentlybegan
hearingtheargumentsandcounterarguments.
ThePhilippinescouldalsolearnfromthebestpracticesandstrategiesemployedby
otherneighboringcountriesinordertodecreasethenumberofmaternalmortalities.
Malaysia,Thailand
and
Sri
Lanka
were
able
to
drastically
reduce
their
MMR
within
aspan
of
twotothreeyearsbyassigningonenurseormidwifeineveryvillage.Studieshaveshown
thatbirthsattendedbyahealthprofessionalorskilledbirthattendant(SBA)arecriticalin
reducingtheMMR.
Intermsofreducingthechildmortality,therehasbeensteadyimprovementwith
under5mortalityrategoingdownto30deathsper1,000livebirthsfrom32in2009.Infant
mortalityrate(IMR)wasat40deathsper1,000livebirthsandneonatalmortalityrate
(NMR)wasat22deathsper1,000livebirths.Inthe2012reportontheLevelsandTrendsin
ChildMortalitybytheUnitedNationsInteragencyGroupforChildMortalityEstimation,
theyestimatethattheunder5mortalityinthePhilippineswillbeat19deathsper1,000live
births
by
2015
with
an
annual
reduction
rate
of
3.8%.
The
target
for
MDG
4
(reducing
child
mortality)isnomorethan27deathsper1,000livebirths.
InthefightagainstHIV/AIDS,itseemsthatanepidemicisinourmidst.Froman
averageofninenewcasesofHIV/AIDSadayin2012,12newcaseswereregisteredeachday
inJanuary2013.Itisthemostnumberofcasesinasinglemonthsince1984whentheDOH
startedthePhilippineHIVandAIDSRegistry.Itwasfoundthat61percentofthenewcases
werefrom20to29yearsold.
ItishopedthatpassingtheSinTaxReformLawwhichincreasesthepricesof
cigarettesandalcohol,willsignificantly reducethenumberofyoungandpoorpeoplewho
are
smoking
and
drinking
excessively.
As
a
consequence,
this
could
help
in
lowering
the
incidenceofsmokingrelatednoncommunicablediseasessuchaslungcancer,heartattack,
strokes,andchroniclungdisease,aswellasalcoholrelatedproblemssuchasliverdiseases
andtraumacausedbydrunkdrivingincidents.
Consideringtheseachievementsaswellasthegapsthatstillhavetobeaddressed,
thescoresareasfollows:
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PLATFORM 2010 2011 2012
1.UniversalHealthCareRoadmapthrougharefocused
PhilHealthprogram
4 6 6
2.Improvedaccesstoqualityhospitalsandhealthcare
facilities
2.5 2 6
3.Attainment
of
health
related
MDGs
4,5,6
2.5
1.5
4.5
TotalScore 7.5 9.5 16.5
AverageScore 3.0 3.17 5.5
Withallthebudgetandresourcesallocatedbeingflushedintothehealthsector
now,oneofthetopchallengesisaddressingtheabsorptivecapacityofthehealthsector.
Mosthealthleadersandmanagersarestillinthe"povertythinking"paradigmandtheyhave
notshiftedtheirmindtoarelativelyresourcerichenvironmentforhealth.Thisthinkingis
stillprevalentingovernment,privatesector,andcivilsocietyorganizations.
ThecurrentratingindicatesthatUHCtargetssetbyPresidentAquinoatthe
midpointof
his
six
year
administration
have
not
been
fully
achieved,
although
significant
stepshavebeentakentoaddressthese.ThestrategicthrustsofAHAarenotmutually
exclusive;thereisaneedtostreamlineandallocateresourceswiselyinordertoattain
universalhealthcareforallFilipinos.
D. EDUCATION
ThePresidentsBasicEducationReformAgendaisbuiltonaTenPointAgendamade
during the2010campaignperiod to becarriedoutby theDepartmentof Education. The
Agendaintroducesstructuralreform. AtthehalfwaymarkofthePNOYAdministration,the
evaluators divided policy from implementation; the former should have already been
enacted
with
the
latter
now
moving
on
to
center
stage.
Hence,
the
weights
for
the
ten
pointshavelargersubweightsthatplacethefocusonimplementation.
Total Policy Implementation
CampaignPromise Weight (30%) (70%) .
1. TwelveyearBasiceducationcycle 2.0 0.6 1.42. Universalpreschooling 2.0 0.6 1.43. MadariseducationforMuslimFilipinos
asasubsystemwithintheeducationsystem, 1.0 0.3 0.7
4. Technicalvocationaleducationasan 0.5 0.15 0.35alternativestreamforhighschool
5. Everychildareaderbygrade3 0.5 0.15 0.356. Scienceandmathproficiency 1.0 0.3 0.77. Assistancetoprivateschools 0.5 0.15 0.358. Mediumofinstruction 1.0 0.3 0.79. Qualitytextbooks 1.0 0.3 0.710.CovenantwithLGUstobuildmoreschools 0.5 0.15 0.35
1.
Twelveyear
Basic
Education
Cycle.
I
will
expand
the
basic
education
cycle,
from
a
10yearcycletoagloballycomparable12years,forourpublicschoolchildren.Atpresent,
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thosewhocanaffordbasiceducationget intothebestuniversitiesandthebestjobsafter
graduation.
WiththepassageofRepubicAct10533,thepolicyforexpandingthebasiceducation
cyclehasbeenenacted into law. Thisputsto rest theuncertaintyof thepolicydirection.
MGG
notes,
however,
the
incrementalist
approach
to
implementing
the
additional
twoyears. DepED is keeping many in suspense by not making available the entire new basic
educationcurriculum. Instead,theyinsistonrollingoutcurriculayearbyyear.
InSY201112,DepEDreleasedthenewGrade1andGrade7curriculum;inSY2012
13,theGrade2andGrade8curriculumwerereleased. Withsuchaprogram,schoolswill
notbegiventheGrades11and12curriculauntiltheyearofimplementation. Thisisironic
giventhattheadditionaltwoyearsarealreadyadisruptivereformandschools,particularly
privateschools,want topreparewell inadvance rather thanwaituntil the lastminute to
developtheirseniorhighschools.
In
addition,
DepED
does
not
appear
to
be
moving
with
any
urgency
to
build
theseniorhighschoolinfrastructure. Byrelyingonhighereducationinstitutions,DepEDthinks
thatitwillbeabletomeettheneedsofseniorhighschoolstudentsintheshortterm. HEIs
forthemostpart,however,areurbanbased. TherealthreattoPhilippineeducationthus
will be rural high school students not having access to senior high schools unless DepED
buildsthisinfrastructurealready.
Rating: 10.2
Policy:weight0.6x10rating
Implementation: weight1.4x3rating
2. Universal preschooling (kindergarten) for all. Allpublicschoolchildrenwillhave
preschoolastheirintroductiontoformalschoolingby2016,andwewillmakethisavailable
toallchildrenregardlessofincome.
The policy reform is complete with the enactment of the Universal Kindergarten
Law. Teaching materials have been developed and are available for digital downloads
reported by DepED. In its desire to roll out a universal kindergarten quickly, DepED has
chosentomovehighergradeteacherstoteachKlevelorarerelyingonvolunteerteachers.
The number of ECCDtrained teachers in the system is well below the number of classes
organizednationwideandwillremainsoforsomeyears.
Rating: 15.8
Policy: weight0.6x10rating
Implementation: weight1.4x7rating
3. Madariseducation forMuslim Filipinochildrenasasubsystem in the education
system.IwantafullbasiceducationforallMuslimFilipinochildren.This istogiveproper
respecttotheirculturewhileprovidingasoundcurriculum inEnglish,Filipino,science,and
math.Madariseducation,withsubjectsinArabiclanguageandIslamicvalueseducation,can
beintegratedinourpublicschoolcurriculumasadditionalsubjects.
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Madaris education has been slowmoving in DepED since the office was
downgraded. Fundingsupporthasremainedstablesincetheadministrationtookoverbutis
lowrelativetothesizeoftheneed. Asaresult,Madariseducationremainspredominantly
private and mosquebased. This does not provide a full education for Muslim Filipino
children,however, in thoseschoolswhose focus isonArabicLanguageand IslamicValues
Educationprimarily.
This
will
remain
the
case
until
public
madaris
is
expanded.
Rating: 3.6
Policy: weight0.3x5rating
Implementation: weight0.7x3rating
4. Technicalvocational education as an alternative stream in senior high school. I
will reintroduce technicalvocational education in our public high schools to better link
schooling to local industry needs and employment. We need toprovide an educational
alternativetobetterpreparethestudentsfortheworldofwork.
DEPED has made efforts to recognize the ladderized education curriculum and to
integratetheSTVEPintotheformulationofthenewcurriculum. Butthepacehasbeenslow
followinganinitialquickstart. Anumberofhighschoolsnationwidehavebeenselectedto
pilottestaGrade1112curriculumwhichisprimarilytechvoc incontent. Despitethis,the
feeling isthattechvoc isnotgivenasmuchpriorityeven inthediscussionsoftheSteering
Committee.
Rating: 2.5
Policy: Weight0.15x5
Implementation:
Weight0.35
x5
5. Every child a reader by Grade 3 (Grade 1 once universal preschooling is
realized).Bytheendofthenextadministration,everychildmustbeareaderbyGrade1.At
thecoreofourchildrensnonlearningproblemsistheinabilitytoreadproperly.Bytheend
ofthenextadministration(SY201516),everychildpassingpreschoolmustbeareaderby
Grade1.
Fundsforreadinghavebeenrolledout inat least8regionsasof2011thoughthe
budget istoosmallcomparedtotheneed. Theprocurementofreadingbookswhichwas
beingpromotedbyaprojectcalled theLibraryHubhasbeenstymiedby the Instructional
MaterialsCouncil
Secretariat
(IMCS)
which
has
atextbook
(not
reading
book)
orientation.
TheLibraryHubwhichhasbeentheDepEDslargest,ifnottheonly,departmentwideeffort
to supply reading books to schools has been slowed down. No other project to supply
readingbooksisbeingpursued.
Rating: 2.5
Policy: Weight0.15x5
Implementation: Weight0.35x5
6. Scienceandmathproficiency.Iwillrebuildthescienceandmath infrastructurein
schools
so
that
we
canproduce
more
scientists,
engineers,
technicians,
technologists
and
teachersinouruniversitiessothatthiscountrycanbemoregloballycompetitiveinindustry
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andmanufacturing.Tobuildacultureforscienceandmath,Iwillpromotescienceandmath
clubsandfairs.
Very littlehasbeendone toexpandscienceandmath in theregularpublicschool
system. Whiletherecontinuestobehighersupport forthe130orsoDepEDsciencehigh
schools,the
level
of
support
for
regular
public
high
schools
remains
low.
Computerization
of schools is an ongoing concern but computerization by itself is not an enhancement of
scienceandmathskillsnecessarily. Furthermore,thecomputerizationprogramoftoday is
now largely replacement of obsolete hardware. The level of interconnectivity under a
programsuchasGILAShasalsobeenslowerinexpansion.
Rating: 5.0
Policy: Weight0.3x5
Implementation: Weight0.7x5
7.
Assistanceto
private
schools
as
essential
partners
in
basic
education.
I
will
expand
governmentassistancetoprivateeducation.Astrongprivateschoolsystemwillstrengthen
ourpublicschoolsbyprovidingparentsanalternativeandnotaddingtotheovercrowding.
Governments assistance to students and teachers in private education (GASTPE)
program has been substantially increased since 2010 as planned and is being studied for
furtherexpansionfortheseniorhighschoolyears. Thetotalnumberofstudentslotsthat
arecurrentlyavailableforsubsidyisover750,000. Privateschools,however,statethatthe
amounts paid out per student remain too low to be an alternative except for the lowest
tuitionlevelschools.
Rating:
3.95
Policy: Weight0.15x10
Implementation: Weight0.35x7
8. Mediumofinstruction.Weshouldbecometrilingualnation:LearnEnglishwelland
connecttotheworld.LearnFilipinowellandconnecttoourcountry.Retainyourdialectand
connectwithyourheritage.
The Mother TongueBased Multilingual Education (MTBMLE) is one of DepEDs
successstories. Thepolicyhasbeenpassedintolawandbudgetsupporthasbeenexpanded
to
reflect
this.
Twelve
major
languages
in
the
country
are
now
included
in
the
program
and
teacher training has been conducted. The most serious shortage reported by DepED has
been the lack of teaching materials in the native tongue. MGG feels that this might be
misguided. Theprogramshouldnotbeaboutproducinganentirelynewsetofmaterialsin
the mother tongue. The program should be about producing teachers guides on how to
explainlessonsinthemothertongue.
Rating: 9.3
Policy: Weight0.3x10
Implementation: Weight0.7x9
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9. Quality textbooks. I will not tolerate poor textbook quality in our schools.
Textbooks will bejudged by three criteria: quality, better quality, and more quality. Poor
qualitytextbookshavenoplaceinourschools.
DepED has focused a lot of attention on delivering quality textbooks and is to be
commendedon
this.
The
practice
is
being
reverted
back
to
apractice
that
was
carried
out
in
thepreEDSA1980speriodwhichwasrifewithcorruption. Textbookprocurementatthat
timewasdividedintothreestages: editorialproduction,printinganddistribution.
Inlate2011,textbookprocurementbyDepEDwasundertakenbydirectcontracting
despitethefactthiswasinviolationoftheGovernmentProcurementActof2002. Whilethe
Government Procurement Policy Board raised questions with this, it did not stop DepED
from pursuing this procurementmethod. In2013, itappears thatDepEDwill expand this
practice placing it effectively outside the Procurement Act in practice. This will set up
corruptpractices infuturebecauseofthehighdegreeofdiscretionplaced inthehandsof
theprocurementauthoritiesinthedepartment.
Rating: 3.6
Policy: Weight0.3x5
Implementation: Weight0.7x3
10. Covenantwithlocalgovernmentstobuildmoreschools.Iwillbuildmoreschools
inareaswheretherearenopublicorprivateschoolsinpartnershipwithlocalgovernments,
aswelladdressourpersistentclassroomandteachershortages.Weneedmoreschoolswith
smaller populations so that teachers, students and parents can form a real learning
community.
Thefocusonshortagesshouldbeanopportunitytobuildnewschoolsandnotjust
classrooms (in already overcrowded schools). Instead the largescale publicprivate
partnershipinclassroomconstructionbuildsnewclassroomsinmanyalreadyovercrowded
schools. This adds new classroom stock but does not address overcrowding which the
promisewaseffectivelyabout.
Rating: 1.75
Policy: Weight0.15x1
Implementation: Weight0.35x5
ScorecardinEducation,2012
CampaignPromise Weight Score(Ratingx
weight)
1. TwelveyearBasiceducationcycle 2.0 10.202. Universalpreschooling 2.0 15.803. MadariseducationforMuslimFilipinos
Asasubsystemwithintheeducationsystem,
1.0 3.60
4. Technicalvocationaleducationasanalternativestreamforhighschool
0.5 2.50
5. Everychildareaderbygrade3 0.5 2.506. Scienceandmathproficiency 1.0 5.00
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7. Assistancetoprivateschools 0.5 3.658. Mediumofinstruction 1.0 9.309. Qualitytextbooks 1.0 3.6010.CovenantwithLGUstobuildmoreschools 0.5 1.75
Total 57.90
2013Scorecard: 5.79
E. EnvironmentalManagement
PresidentAquinohasmadeatleastfive(5)campaignpromisesrelatedtothe
environment,towit:
1. CaringfortheEnvironmentFromallowingenvironmentalblighttospoilourcities,whereboththerichandthe
poorbear
with
congestion
and
urban
decay
to
planning
alternative,
inclusive
of
urban
developmentwherepeopleofvaryingincomelevelsareintegratedinproductive,healthy,
andsafecommunities.
2. SustainableResourcesFromagovernmentobsessedwithexploitingthecountryforimmediategainstoa
governmentthatwillencouragesustainableuseofresourcestobenefitthepresentand
futuregenerations.
Duringthecampaign,PresidentAquinomade24additionalandmorespecific
promisesincluding
20
:
3. StrictlyenforceenvironmentallawsIncelebrationofEarthDayonApril22,2010,thePresidentvowedtomakedisaster
preparedness and the strict enforcement of environmental laws as key objectives of his
administration.
4. SafersourcesofrenewableenergyPresidentAquinostatedthathewouldratherexhaustothermeansthanresortto
nuclear
power.
We
have
other
perceivably
safer
sources
of
renewable
energy.
Nuclearenergy has reemerged as an option to satiate the worlds present and future electricity
needs.However, itcontinuestofacesocialacceptabilityproblemsbecauseoffearsabout
the safety of its use. There are other sources of energy that have less chances of
endangeringthelivesofpeople.InthecaseoftheBataanNuclearPowerPlant,ithasalarge
amount of documented safety hazards and may pose a threat to the safety and/or well
beingoftheresidentsaroundit.
5. Populationmanagementviaresponsibleparenthood
20The Promises of Benigno C. Aquino III.www.blogwatch.tvlastaccessed15July2013
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ThePresidentpromisedthathisadministrationwill fullysupportthecraftingofa
firmpolicythatwilladdresstheseriousproblemonpopulation.Itwillbebasedontheidea
ofresponsibleparenthood:imposingonparentsthattheyshouldplayakeyroleinensuring
thateachandeverychildtheybringintothisworldhastheopportunitytoleadagoodlife,
andeducatingthemaboutthemeanswithwhich toplantheir familiessotheycancreate
familiesbased
on
their
ability
to
sustain
their
needs
.In
the
process
of
providing
arange
of
optionsandinformationtocouples,bothnaturalfamilyplanningandmodernmethodsshall
bepresented.
1. CaringfortheEnvironmentPresident Aquino issued EO 26 on February 24, 2011 establishing the National
GreeningProgram(NGP),a6yearreforestationprogramtogreensome1.5millionhectares
ofdegradedforest lands. Itwaspersonally launchedbythePresidentwithan interagency
team to develop a sustainable forest resource base and rejuvenate rural economies. Its
ultimate goal is to provide livelihood opportunities for some six million families in the
upland
areas
across
the
country
within
six
years.
The
President
issued
Proclamation
125,
declaring 2011 as the National Year of Forests in the Philippines, in support of the UN
declaration.
The President Aquino has approved the framework developed by the Climate
ChangeCommissionincludingtheNationalFrameworkStrategyonClimateChange(NFSCC),
National Climate Change Action Plan (NCCAP) and guidelines for Local Climate Change
ActionPlan (LCCAP). Theseplanscoverprograms from2011up to2028as the impact of
climatechangewouldrequireaneconomicandsocietaltransformation.Someofthegreen
goalsidentifiedinclude:foodsecurity;watersufficiency;humansecurity;andenvironmental
and ecological stability. President Aquino likewise signed the Peoples Survival Fund (PSF)
intolaw,whichprovidesaPhp1.0billionfundannuallyforprojectstomitigatetheeffectsof
climatechangeinthecountry. ThelawcomplementsTheClimateChangeActof2009that
waspassedundertheArroyoadministration.
Fundinghasbeengiventosupportframeworkimplementation.TheClimateChange
Commission disclosed that the Aquino administration will allocate P13 billion in 2014 for
ClimateChangemitigationandadaptation.TheCommissionsignedanMOAwithUniversity
of the Philippines in June this year toward capacity building programs for the
implementationofthisframework.
While these frameworks are in place, implementation efforts need to be
coordinated and monitored to secure and sustain their mitigation and adaptation effects.
The environmental targets have yet to be reflected in the Medium Term PhilippineDevelopmentPlan(MTPDP)for20112016.Thistaskwillneedbroadercitizensparticipation
in the development and approval of the MTPDP. Government has not moved toward
physical and sustainable resettlement programs to relocate informal settlers along
waterways. Continuedinactionwillexacerbatetheadaptationofvulnerablecommunitiesto
climatechange.
2. SustainableResourcesUnder President Aquino's term, mining investments are expected to be made by
2016. The administration has repeatedly issued statements in support of mining
liberalization.
The
appointment
of
the
former
Executive
Director
of
Philippine
Mining
DevelopmentCouncil(PMDC)asDENRSecretaryandPresidentialAdviseronMiningfurther
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indicates the administrations adherence to the previous administrations path towards
mining liberalization. Much remains to be seen if law enforcement will mitigate the
ecologicalfootprintfromincreasedminingactivities.
Two largescaleminingaccidentshavetakenplace,withPhilexsMine inTuboand
Itogon,
Benguet
(highlighted
as
the
largest
mine
disaster
in
the
countrys
history)
andCitiNickels mining spills in Narra, Palawan. This illustrates the lack of regulatory and
environmentalenforcement,whileremediationoversightandpenaltyenforcementhaveyet
tobeseentorehabilitatethedamagedcommunitiesandwaterways.Bothcompanieshave
beenallowedtoresumedespitetherehabilitationstatus.
OnJuly9,2012,MalacanangissuedEO79whichdetailsthegovernmentsnew
policyonmining. TheEOseekstoincreasethegovernmentssharefromminingactivities,
imposeamoratoriumonthegrantoflicensestonewminingactivities(pending
Congressionalactiononroyalties),andattemptstoalignnationalpolicywithlocal
regulations.Theadministrationhasbeenrecognizedbyacademics,activistsandthemining
industryfor
having
consulted
and
reflected
stakeholder
inputs
in
the
formulation
of
EO
79.
It
remainstobeseenhowsuchapolicywillbeenforcedinthemidstofanincreaseinmining
activities,andhowtheAdministrationwillsupportthepassageofMiningActamendments
inthecomingCongressgivenitsstrongercontrolonbothHouses.
ThePresidentsissuanceofExecutiveOrder23wasawelcomerelieffrommassive
deforestationandalackofadecisivepolicyinthisregard.EO23imposedanindefiniteand
comprehensiverestrictiononloggingalloverthecountrydespiteoppositionfromwood
producers.AnationwideloggingmoratoriumonPhilippinenationalandresidualforestsisto
beobservedtoprotectandstopthedestructionofwatershedsandriversystems.TheEO
createdataskforcetoleadgovernmentscampaignagainstillegallogging.UnderEO23,
DENR
is
instructed
to
stop
logging
firms
from
cutting
trees
while
government
is
in
the
processofreviewingallexistingloggingagreements.DENR,throughMO52,isnow
mandatedtoimmediatelycanceltheconcessionsofloggingcompaniesthathaveviolated
forestlaws,whileceasingfromissuingandrenewingloggingcontractsandtreecutting
permitsinallnaturalandresidualforests.EO23hasbeencriticizedforloopholesinthe
sensethatithasnotrevokedorcategoricallybannedcommercialloggingbutonlystops
DENRfromgrantingnewcontractswhilereviewingexistingcontracts.Loopholesinvolvethe
abilityofspecialintereststolobbyforlabelingnaturalandresidualforestsasplantation
foreststosecureanexemption.Continuousflashfloodsandmassiveevidenceofillegallogs
inthesesitesbetraythelackofenforcementofthispolicy,andtheAdministrationneedsto
followthroughonenforcementissues.
3. StrictlyenforceenvironmentallawsDespitepronouncementsof findingabalanceforresourceuseandenvironmental
protection,theAdministrationhasamixedrecord inenforcingthePhilippineCleanAirAct
or Republic Act No. 8749. Certain provinces such as Cebu have experienced coal ash
residues, listed as an air pollutants, prompting Cebu local government officials to take
actionthemselvestosuspendthecompanys(KEPCOs)businesspermits. PresidentAquino
has praised KEPCOs record as being very friendly to the environment despite the
experienceofthehostcommunity.
DENR
has
yet
to
implement
the
Ecological
Solid
Waste
Management
Act
(Republic
Act 9003) prohibiting the operation of any dumpsite by local government units in the
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toprovidemodernandnaturalfamilyplanningmethods,andtheunderlyingrecognitionof
the role of large family sizes and increasing population to the countrys sustainable
development. Aquinos appointed Supreme Court justices have also voted (albeit
unsuccessfully) to implement the Law despite the petitions from rabidly conservative
Catholicgroups.
Whilethe law languishes intheSupremeCourt,andbecauseofsuch inaction,the
Philippinesclimbedhigheron theAnnualRankingofFailedStates21.ThePhilippines is in
the same league as Equatorial Guinea, Egypt, Laos, Pakistan, and Bangladesh in terms of
populationpressures,(7.7/10);andrankedworsethanWestBank,PapuaNewGuinea,and
Angola.
Further, the countrys resulting ecological state continues to worsen with such
inaction:
o ThePhilippineshaslessthan10percentofitsforestcoverandcoralreefsremaining22,while
only
39
percent
of
525
water
bodies
are
potential
sources
of
drinking
water.
23
o 44 percent of the population earn less than $2/day, and 2/3 of the population are
engagedinunsustainableenvironmentalandnaturalresourceusage.24
o ThePhilippinessharestheviciouscycleofhighpopulationgrowth,socialconflict;largemigration; depleted ecosystems, food, water and energy
insecurity/insufficiency/dependence; failing governance; failing health care and
education systems as political and environmental hotspots as Afghanistan,
Bangladesh,Burundi,Haiti, Indonesia,Nepal,Madagascar,Mongolia,Pakistan,andthe
SolomonIslands.25
o Growing population, combined with inconsistent governance, has increased thePhilippinesresourcedemandfrom lessthan itsownbiocapacity in1961toovertwice
itsdomestically
available
biocapacity
in
2002.
26
ScorecardonEnvironmental Management,20102012
21ForeignPolicyMagazinesAnnualRankingofFailedStates.www.foreignpolicy.com.ThePhilippinesclimbedupthe
rankingandisnowat53(2009)from58in2007,drivenbyakeycomponent:populationpressures22ConservationInternational.PhilippineBiodiversityConservationProfiles.2002.Pp.34.23EMB. 2006. National Water Quality Status Report 2001 to 2005. http://www.emb.gov.ph/wqms/2001
2005%20NWQSR/NWQSR%20%20Body.pdfand,WorldBank.2003.PhilippineEnvironmentMonitor24StateofthePhilippineEnvironment:AProgressReport,February200625Diamond,
Jared.
Collapse:
How
Societies
Choose
to
Fail
or
Survive.
Penguin.
2005.
pp.
496
499;
515
516
26WorldandCountryTrends.GlobalFootprint
Network.http://www.footprintnetwork.org/en/index.php/GFN/page/footprint_for_nations/
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F.GOVERNANCE
Theassessmentongovernanceisbasedontheprogressofimplementingthe
governanceplatformofthePresident: ensuringacleanandpeacefulelectioninARMM,
institutingaperformance
incentive
system,
acting
on
the
irregularities
as
reported
by
COA,
andgovernancewithintegrity.
1.EnsurethattheARMMelectionisclean,orderly,andpeaceful.
ThePresidentdeclaredinhis2011SONAhisvisionforacleanandpeacefulelection
inARMMwheretheopportunitiestobeelectedwillbefair. Gustonatingmaranasanng
ARMMangbenepisyongtamangpamamahala.Kayaangatinpongminungkahingsolusyon:
synchronization.Dahildito,kailangannilangtumutoksakanikanilangmgakampanya;
magigingmaspatasanglabanan,atlalabnawangcommandvotes.SalamatposaKongreso
atnaipasanaangbatasnamagsasabaysahalalanngARMMsahalalangpambansa.(SONA
2011)
GovernmentsuccessfullypushedforthepostponementoftheARMMelection
towardasynchronized
election.
The
President
appointed
an
Office
in
Charge
(OIC)
of
the
regionwhoeventuallyranandwontheelectionasARMMGovernor. Itshouldberecalled
thatwhenthebillpostponingtheARMMelectionwasbeingdiscussedinCongress,the
OfficeofthePresidentissuedastatementthattheOICthatthePresidentwillappointto
ARMMwillbeineligibletorunintheregionalelectionssetfor2013...toavoidgrantingany
undueadvantagetotheOIC.IntheeventthatsuchaprovisionisnotenactedbyCongressin
thefinalversionofthebill...'alternativemeasures'willbetakenbythePresidenttoenforce
theprohibition.Allnomineeswillberequiredtoexecuteawrittenundertakingnottorunin
the2013electionsintheeventtheyareappointed.27 Itwasreportedthatitwasthe
presidenthimselfwhoconvincedGovernorHatamantorundespitethePresidentsearlier
assurancesthattheOICGovernorwillnotseekthegubernatorialpostin2013.28Whilethe
Presidentkept
his
promise
of
synchronizing
ARMM
election
with
the
national
election
in
2013,hefailedtodeliverhispromiseofalevelplayingfield.
TheARMMelectionmadehistoryasmanypollingprecincts,i.e.sixtynineprecincts
and70clusteredprecincts,registereda100percentvoterturnout. Thisdevelopmentwas
statisticallyimprobableandamanipulationofthevoteswasalikelihood.29
Score:3
27 Namfrel Election Monitor, vol. 2 no 13. >www.namfrel.com.ph/v2/news/bulletinv2n13
postponing_armm.php,28 Angela Casauay, OIC no More, Hataman wins as ARMM Governor
http://www.rappler.com/nation/politics/elections2013/29468hatamn29 Aries Rufo, 70 Precincts post 100% Turnout, mostly ARMM,http://www.rappler.com/nation/politics/elections2013
Performance 2010 2011 2012
1. CaringfortheEnvironment 5 6 6
2. SustainableResources 6 6 5
3. Strictlyenforceenvironmentallaws 2.5 5 5
4.
Safersources
of
renewable
energy
7.5
5
5.5
5.Populationmanagementviaresponsibleparenthood 2.5 4 5
Total 23.5 26 26.5
Average 4.7 5.2 5.3
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2. PerformanceIncentiveSystem
ThePresidentplatformalsoincludestheinstitutionofaperformanceincentive
systemmatcheverypesoinvestedin4thand5thclasslocalgovernmentunitsinbasic
education,maternal
and
child
care,
and
potable
water
and
latrine.
In
his
2012
Sona,
the
Presidentpromisedthedevelopmentofaperformanceincentivesystemwherethebonusof
anagencywilldependontheaccomplishmentofitstargets.
Theperformanceincentivesystemforgovernmentwassuccessfullylaunched
throughtheDILGsSealofGoodHousekeepingandPerformanceIncentiveFund(PCF)
undertheleadershipofthelateSecretaryRobredo. ThePCFisusedbygovernmentasatool
toinfluencelocalgovernmentunitstodealwiththeirconstituentsinatransparent,
collaborativeandefficientway. Toobtainonemillionpesos(Php1.0million)fromthePCF,
theLGUmustobtainaSealofGoodHousekeeping(SGH). ThesealisonlygiveniftheLGU
complieswiththerequirementsforfulldisclosureoftheirbudgets,policiesandoperations.
TheCommissiononAudit(COA)mustnothaveanyadversefindingsontheLGUsfinancial
management.
SecretaryRobredo
emphasized
that
the
SGH
opens
the
road
towards
anew
systemofgovernance.
ThePCFmadeLGUsmorecompliantwithMemorandumOrdersofDILGandother
governmentagencies. TheCOAreportisnotjustconsideredalistofdisallowances. Itis
nowaninputonhowfinancialoperationscanbecomemoreinlinewithgovernment
standards. ThePCF,thoughrelativelysmallhassignificantlychangednorms,values,and
processes:
LGUsrealizehowtoaligntheirprioritieswiththepoliciesofthenationalgovernment.ThePCFhelpedtranslatetheagendaintoprogramsthatLGUs
shouldimplement.
TheprocessesinvolvedinPCFsuchasproposalmakingandbudgetinghaveprovidedguidancetoLGUsonthestrategic,transparent,andefficient
utilizationofpublicfunds.
TheSGHandthePCFleveltheplayingfield. Fromasystemwheresubsidiesaregivenbasedonpoliticalpatronageandthepalakasansystem,
everybodywhoperformswellisgivenanequalopportunitytoobtain
fundingassistancefromthecentralgovernment.
LocalChiefExecutivesnowappreciatetheimportanceofbeingthemodelandinspirationsothatvaluesandpracticesthatcanpromotegood
governancecanflourish.
TheSGHisusedtoleverageadditionalresourcesintermsoftaxpaymentfromtaxpayers,sweatequityfromresidents,andsharingofresourcesfrom
barangays.
APerformanceIncentiveSystemfortheentiregovernmentmachineryhasbeen
launchedbythePresident.(ExecutiveOrderno80s2012). Thesystemisintendedto
focuson
results
and
the
quality
of
public
service,
institute
aperformance
scorecard
for
agencies,andlinkbonuseswiththeagencyandindividualperformance. Bypromoting
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transparency,accountabilityandmeritocracy,theperformanceincentivesystemwill
promotebettergovernanceanddeliveryofpublicservice. AsofNovember2012,the
PerformanceBasedBonusapplicationsof48agencieshavebeenapprovedbyDBM.30
Score:8
3.TakeallactionsonirregularitiesintheCOAreports.
The Commission on Audit has religiously assumed its task of auditing the
disbursementofpublicfunds. TheCOAhasnotbeenremissinreportingdisbursementsthat
have been unliquidated and unaccounted for. Government agencies have taken steps to
explain and correct noted inefficiencies. However, the corrective actions have been
reactive,sporadic,anddisparate. Theypartakeofthecreationofcommitteestoinvestigate
mismanagement, partnerships with civil society organization to provide oversight,
strengtheningofcomplianceverificationsystem,directivestoresponsibleofficerstocomply
withCOArequirements,andfilingofchargesbeforetheOmbudsman.TheCOAfindingsare
indicatorsof
weaknesses
in
systems
and
call
for
systemic
solutions.
Government
agencies
have to analyze policies and procedures to determine the factors that give rise to
opportunitiesforabuseanduseofdiscretion.
AbusesarealsocorrectedthroughthefilingofcasesbeforetheOmbudsman. Some
2,669caseswerefiledbeforetheOmbudsman in2012,mostlyagainsterringLGUandPNP
officials. Butthefilingofcasesisjustthebeginning. Justicemustbeservedthroughaswift
resolution of cases and the meting of punishment on those who abused their power. A
recordontheresolutionofthe2,669casesaswellasthecasesthatwerefiled inprevious
years (3,852) must be made by the Ombudsman.31
Otherwise, the beginning of justice
becomesitsend.
Score: 6
4. OtherInitiativesonGovernanceTheAquinoAdministrationcontinuestoenjoythetrustoftheFilipinopeople.After
threeyears,theperformanceofthePresidenthasreceivedahigh levelofapproval, i.e.65
percent approval rating32 from the Filipino people. This is attributed to his personal
integrityandcommitmenttomakereforms,albeitpossiblyslowandfacedwithchallenges.
More importantly, many Filipinos and critical observers share the opinion that as an
individualand leader, thePresidenthasnotshowncasesor instancesthatwill linkhimtocorruptionandabuseofgovernment resources. Thisexplains thehigh trust bestowedon
thePresidentandindeedaugurswellforhisadministration.
The public also reacted favorably on the Presidents fervor in seeing the
impeachmenttrialofChiefJusticeRenatoCoronacomeintofruition.
30 Laura Pascua, performance Incentives Based on results:, November, 2012
31 Angela Casauay :Most Ombudsman Cases filed vs. LHUs and PNP June 26, 2012,www.rappler.com/nation/32247lgupnpombudsmancases32 Pulse Asia Survey, March 20, 2013
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Theotherhighlightofthegovernmentsaccomplishments isthepeacenegotiation
with the Moro Islamic Liberation Front. The principles and a common framework were