OURNEWSOCIALCONTRACT: PanawaganparaLubusinangmgaNasimulangReporma ThePhilippineeconomyisgrowingatapacethatisbeingenviedbyitsneighbors.Nottoolong ago,itwasthe“sickmanofAsia”whostruggledwithstagnanteconomicgrowthandwas perenniallytoppinginternationalmost-corruptgovernmentlists.Incontrast,todayitenjoysbeing Asia’s“risingtiger”andisprojectedtocontinuebeneDittingfrombeinginademographic“sweet spot.”Economicgrowthhasbeenabovesixpercentannuallysincethebeginningofthecurrent administration,farbetterthanthecountryhaseverachievedsincethe1970s;thisGDPgrowth rateiscurrentlysecondhighestinAsia.Goodgovernancemeasuressuchasincreasing transparencyandaddressingcorruption—ashighlightedintheDaangMatuwidvisionof PresidentAquino—haveresultedinhightaxcollectionyield,renewedinternationalinvestment conDidenceleadingtobettersovereigncreditrating,highernetForeignDirectInvestmentinDlow, andyearlymarkedimprovementsinglobalcorruptionsurveys. However,theincreasingwealthofthenationishardlyfeltbytheaverageFilipino.Thoughthere hasbeena2.8%declineinthepovertyincidencefrom2009to2014,povertyincidenceincreased slightlyfrom2013to2014becauseoftyphoonYolandaandtheriseinpriceofrice.Thisonly highlightstheneedtoenhancesocialprotectionmeasurestoaddressthevulnerabilityofthepoor andnear-poor.Atpresent,oneoutoffourFilipinosremainspoor. SeveralbasicindicatorsfromtherecentlyconcludedMillenniumDevelopmentGoals(MDGs)were notmet.Maternalmortalityremainshighat221deathsper100,000comparedtothegoalof52. Andalthoughtotalfertilityrateisdecreasing,thereisanobservedrisingtrendinteenage pregnancyanddelivery.Suchdatahavebeenlargelyattributedtothestilllimitedaccessofwomen toreproductivehealthcare.ThespreadofHIV/AIDSisnowherenearbeingreversedandisfact increasingatanalarmingrateof21newcasesaday.Malnutritionisrampantwithunderweight childrenunderDiveyearsoldat19.9percentin2013,whichisafarcryfromthe13.6target.While thecountryachievedmodestgainsongenderequalityandeducationforall,thechallengeremains hugeastheglobalcommunitycommitstoattainingthenewsetofSustainableDevelopmentGoals by2030. SpeciDicgapsintheAquinoadministration’sperformanceincludetheunsuccessfulpassageofvital billssuchastheFreedomofInformation,Anti-PoliticalDynasty,andtheBangsamoroBasicLaw,as wellasthefailuretoredistributethecocolevyfundforthewelfareofthepoorcoconutfarmers. Moreover,itmustbeunderscoredthatdespitethegoodgovernancebattlecry,PresidentAquino hasbeenaccusedofplayingfavorites:thoseclosesttohim—Gen.AlanPurisimabeingthefavorite example—arestillabletoenjoyprotectionandthebeneDitsofselectivejustice.Tobefair,someof thesehavebeenshortcomingsofthelegislativeandjudicialbranches. Andtherehavebeengains.Anexampleistheexpansionoftheconditionalcashtransfer(CCT) mechanismthroughthePantawidPamilyaPilipinoProgram(4Ps).Therehasalsobeenincreased transparencyandaccountabilityingovernanceparticularlythroughtheBottom-upBudgeting (BuB)mechanismandPriorityDevelopmentAllocationFund(PDAF)scamwhichimprisoned severalpoliticalVIPsandachiefjustice. Inaddition,PhilHealthcoveragehasbeenexpanded,includingthecoverageofpoorhouseholds enlistedintheNationalHouseholdTargetingSystem(NHTS)throughRA10606.Theseinsurance premiumsareDinancedusingthegainsfromthepassageoftheSinTaxlaw(RA10351).Another progressivehealthcare-relatedlawthatAquinoheavilysupportedistheResponsibleParenthood andReproductiveHealth(RA10354). Moreover,thePeople’sSurvivalFund(PSF)(RA10174)waspassed,whichisanautomaticyearly allocationofonebillionpesostofundclimatechangeadaptationanddisasterriskreduction projectsoflocalgovernmentunits(LGU)andcommunityorganizations.Therecentlydeveloped hazardmapsoftheDepartmentofScienceandTechnology(DOST)’sProjectNOAH(Nationwide OperationalAssessmentofHazards)isabighelpinprovidingevidence-basedplanningonhow thePSFwillbeutilizedanddistributed,aswellasaidinpre-,during,andpost-disasterresponse. TheAquinoAdministration’sDightagainstcorruptionrestoredconDidencethatfuelledbothlocal andforeigninvestmentsintotheeconomy.Thechallengenowistocontinuetheworkthathas beenstartedinorderforthegainstobemoreinclusiveandtoprovideincreasedsocialprotection forthevulnerable. Withthe2016electionsapproachingattopspeed,thequestionathandishowthenext administrationwillcarrythisthrough. ActiveParticipationoftheBasicSectors Economicgrowthshouldbeinclusive.Andatthesametime,governmentshouldprovide mechanismsinordertoempowerthepoorsothatthepoorthemselveswillgetoutfromthe povertytrap.Thismeansgoingbeyondemptypromisesforparticipation.TheNationalAntiPovertyCommission(NAPC)wascreatedsothatthebasicsectorscandirectlyengagethe governmentthroughitsanti-povertyprograms.Thus,thereisaneedtosolidifythecommitment ofthePresident,whohasbeendesignatedastheChairpersonoftheNAPCbyworkingcloselywith theleadersandmembersofvariousbasicsectorgroups. ThestructureofNAPC—particularlythe14BasicSectorCouncilsandtheirelectedvicechairperson—wasdesignedtoensureresponsive,inclusive,participatoryand,mostimportantly, representativedecision-makingatalllevelsThus,theenbanciscrucial;thisiswherethe representativesofthefourteencouncilsmeetwiththehighestexecutivetodiscusspolicies, measuresandmechanismsthatwilladdresstheneedsofthepoorandmarginalized. Unfortunately,withallthetalkoninclusivegrowth,itisdemoralizingthatPresidentAquinohas failedtocallforanenbancmeetingwiththeNAPCandtheSectoralRepresentativesoftheBasic SectorCouncils.Thechallenge,therefore,liesonthenextPresidenttoensurethatregularenbanc meetingsareheld. 2016Elections PresidentAquinoisalreadyfacinghislastfewmonthsingovernment.Membersofacademe, media,non-governmentalorganizations,aswellasgovernmentagencieshaveassessedAquino’s termusingthe“SocialContractwiththeFilipinoPeople;”apromisethatwasdeliveredduringhis electoralcampaignandmadeintoanExecutiveOrderin2011. Whiletheseassessmentsexist,onehasyettocomefromtheveryaudiencethattheSocialContract seekstoaddress:thepoor. OurNewSocialContract OurNewSocialContractproposesspeciDicpolicyagendaawayfromrhetoricalaspirations. SpeciDicityrequiresthatrights-baseddemandsaresolution-centricandaresubjectto accountabilitiesfrombothparties. TheprimaryobjectiveistoinDluencedecisionsandpoliciesinthenextadministrationinorderto ensurethatthebeneDitsofgrowtharebothreadilyavailabletoandeasilyfeltbythepoor. Sixthemesweredevelopedtoframethelonglistofconsolidatedpolicyrecommendationsfrom theBasicSectorCouncils.SpeciDicpolicyrecommendationswerethenpickedoutinorderto developatime-bound,achievable,andacceptablesocialcontractbetweenthebasicsectorsand theincomingadministration. Themajoragendapointsofthebasicsector’sNewSocialContractareasfollows: 1) Economicreformsandasoundindustrialpolicy OneoftheAquinoadministration’sremarkableachievementsisanaverageeconomicgrowthrate of6.3percentinthelastDiveyears,consequentlyboostingthecountry’sinvestmentandcredit ratings.Thereisconsensus,however,thatsuchgrowthhasyettobetranslatedintocreatingmore jobsforthepeople,reducingpovertyandinequality.Inordertodothis,thenextadministration hastosustainthelevelofgrowthinthenextDivetotenyears,continuetoexpandthe manufacturingsector,democratizeassetdistributionintheruralsectorwhilemodernizing agriculture,andimplementasoundindustrialpolicyhingedonpreparingFilipinoindustriesand agriculturetobecomemorecompetitiveunderacontinuouslyglobalizingworld. Thefollowingarekeyandactionablepolicyissuesnecessarytopursueinclusivegrowth,asset reform,andpovertyreduction: • CompletionoftheComprehensiveAgrarianReformProgram(CARP)coupledwith • • • • • • improvingfarmproductivityandincomes; EnactmentoftheCoconutFarmersTrustFundBill,ensuringthatrecoveredcocolevy fundsandassetsbeneDitsmallcoconutfarmersandrehabilitatethecoconutindustry; PassageofabillthatwillreformthePhilippineCoconutAuthority(PCA)thatistruly responsivetotheneedsofthecoconutfarmersandtheindustrythrough:1)a broadenedmandatethatisnotlimitedtojustcopraandoilbuthighervalue-added coconutproducts,2)theremovalofpalmoilfromitsoriginalmandate;3)providing greaterparticipationofcoconutfarmersandworkersintheinstitution'spolicymakingbodybyallottingmoreseatsintheboard,4)developingcoco-based communityenterpriseswherecoconutfarmersarerealpartnersanddecision makers,5)strengtheningtheinstitution’sresearchanddevelopmentwork,and 6)ensuringthatincreasedproductivitywillcontributegreatlytoincreasedincomesof thecoconutfarmers; EnactmentofthelongoverdueNationalLandUseAct,inordertoinstitutionalizea nationalframeworkonlanduseintermsofprotection,production,settlements,and infrastructure; ImplementtheNationalFisheriesIndustryDevelopmentProgramthatisbasedon sustainablecoastalandDisheriesresourcemanagement,preventingillegaland unregulatedDishingpractices,ensuringlivelihoodandshelterforartisanalDisherfolk throughaFisherfolkSettlementProgram,andestablishingaFishFundtodevelop thecapacitiesofLGUsthroughintegratedcoastalresourcemanagement; PassageofanAlternativeMiningLaw,ensuringthemanagementofmineralresources towardsasustainableapproachofusingandprotectingthecountry'snatural resources,andprotectionofancestraldomainsofindigenouspeoples; EnactmentoftheSecurityofTenureBilltoprotectworkers’rightsfromunfair contractualization. 2) ChallengestowardsGreaterSocialProtection EveniftherehavebeensigniDicantincreasesintheincomeofthepoorastheeconomysustainsits paceofgrowth,othersslide(back)intopoverty.Seniorcitizenslosetheirincomeswhentheycan nolongerwork;familiesmustsacriDicecashincomesthatteenagersarenolongerabletoearn whentheyproceedtohighschool;peoplegetsick;andincreasinglythesedays,livelihoodsare washedawaybystormsorwitheredbyextremeheat.Yet,theabilityofpeopletocopewithsuch risksisatthecoreoftheirabilitytopartakeofthehighreturnsfromtheeconomicgrowththatwe boastissecondonlytoChina. Thepolicyrecommendationsare: • Adoptasocialized/equitableSocialSecuritySystem(SSS)pensionincrease,which entailsanincreasethatvariesaccordingtothepensionamountbeingreceivedbythe beneDiciaries.SpeciDically,higherpensionincreaseisproposedtobegiventothose whoarecurrentlyreceivinglesscomparedtoothersasidentiDiedthroughapovertybasedmechanismthatwillbedeveloped.TheSSSbeneDitprogrammusthavewider latitudeforsocialprotectionbeyondmerepension-provision.Moreover, representationofthebasicsectorsthroughtheNAPCmustbeupheldbyreforming theSSSBoard; EnsureuseofPhilHealthcardstoprovideadequateVinancialsupportforhealthcare • services.ThiswillencouragemoreFilipinostoseekhealthcarewhennecessaryand protectthosewhoarealreadybeneDittingfromtheexpandedpremiumsubsidyfrom unduecostsofseekinghealthcare.Focusmustbegiventopersonswithdisabilities (PWDs),indigenouspeoples,Disherfolk,farmers,andurbanpoor; • SecureVinancialsupportforthePhilHealthCoverageofallSeniorCitizensby compellingtheDepartmentofBudgetandManagementtoexpandthePhilHealth premiumsubsidytoincludeseniorswhoareshiftingfrombeingdependentsoftheir familytoPhilHealthmembersthemselves.Afterall,actualcollectionsfromtheSinTax consistentlyexceededthetargetsfor2013and2014.Inparticular,therewasan excessofP17.2Billionin2013andP7.3Billionin2014,whichismorethanenoughto coverthenecessarypremium; Expand4Pscoverageandre-calibratetoincludeolderchildrenandtheirfamilies. • Althoughuniversalaccesstoprimaryeducationhasbeenachieved,4Psmaybe expandedtotargetincreasingthelowcompletionrateof78.5percent.Also,linking 4Psparentstoexistinggovernmentprogramsoncapacitybuildingandemployment (e.g.,cashforwork,TESDAtrainings,etc.)willhelpprovideincomesoparentscan supporttheirchildrenuntiltheygraduate,aswellasreplacetheincomethatthese childrenusedtoearn.Suchmeasuresalsohelpkeepchildrenoutsideofthelabor force; EnactmentofthePositiveDisciplineandAnti-CorporalPunishmentBilltoeliminate • violenceagainstchildrencommittedinthepretenseofdiscipline.Thiswillensure thatchildrenareprotectedfromtraditionalviolentmethodsandtheuseofpositive andnon-violentformsofdisciplineispromoted; Increaseprogramsthattargetsdecreasesinmaternalmortalityandteenage • pregnancies.Suchgender-responsiveprogramsincludesfasterroll-outof reproductivehealtheducationforevenyoungerwomen,promotingbirthsattended byskilledhealthpersonnel,andcapacitatinglocalpublichealthfacilitiesinrural healthunitsandbarangayhealthstationstodeliverappropriatematernalcare services.Menmustalsobemadeawareandinvolvedinordertoprovideactivecare andsupport; • Universalizeprogramsthatsupportthebankabilityoftheenterprisingruralpoor. • Rationalizebutscale-upandexpandcreditenhancement/guaranteeschemesfornew agrarianreformbeneDiciaries,landlessfarmers,indigenouspeoples–noneofwhom havecollateralthattheycanoffertobanks.Infusethemandatedfundsintothe PhilippineDevelopmentTrustFundsothatorganizing,capacitybuilding, developmentofcooperatives,andsocialenterpriseinnovationforbankability–will takeplacenotjustforagrarianreformbeneDiciariesevenasDepartmentofAgrarian Reform(DAR)windsdownitsoperations;and ReformtheNationalHousingAuthorityandinstitutionalizePeople’sPlanFund.Of 70,000housingunitsbuiltbyNHAinMega-Manilainrecentyears,11,000to22,000 housesremainunoccupied.ThedefaultruleoftheNHAistobuildhousesfarfromthe city,withlittleregardforthefactthatneitherservicesnorpublicutilitiesexistinsuch places.ThisdespitethefactthataJointMemorandumCircularsignedin2013byten cabinetsecretariesandtheNHAmandatesthatrelocationhastobeonsiteandin-city. RelocationhastobeorganizedonthebasisofaPeople’sPlan.Thepeople’splanning approachisbestservedifthisisinternalizedwithinNHA’sprocessesandifthescale andscopeofSocialHousingandFinanceCorporation(SHFC)andLGUand community-co-productionprogramsareexpanded.Only₱41billionofthepromised ₱50billionfundbythePresidenthassofarbeenused.Itisalsonecessaryto institutionalizethePeople’sPlanandallocate₱50billioneachforLuzon,Visayas,and MindanaooverthenextDiveyearsforthehousingofinformalsectorfamilies. 3) CreatingtheSpacesforEconomicInclusion,FacilitatingMobilityandEmployment Opportunitiestoincludethepoorineconomicprocessescanbeprovidedthroughimproved transportationnetworks,accesstosustainableemploymentanddecentwork,andeducation opportunitieswithincitiesandruralareas.Assuch,insteadofpushingpeopleoutofthecities throughresettlementoraccommodatingtheminthefringes(indangerzones,alongrailways, esteros,etc.),policiesshouldmakebothruraldevelopmentandurbanizationworkforboththe poorandnon-poor.Inparticular,fundsourceslinkinghousingandemploymentcanbedrawn fromgovernmentinvestmentsandprivatepropertyownersandspeculators.Suchinitiativescan bestbecomplementedthroughthedevelopmentofsecondaryhubsanddevelopmentofan industryroadmapinruralandurbanareas.ThisintensiDiesthegroundsforthedevelopmentofa soundindustrialpolicy. • AllocatesixtosevenpercentofGDPforinfrastructureinvestmentstoincrease mobilityamongurbanandruralworkers.Accesstoemploymentandlivelihood opportunities,morethanhousing,isoneofthefactorsthatdrawpeopletocities.Atthe sametime,thecostandtimeincurredintravelingfromurbantoruralareas(andvise versa)pointoutaneedtosearchforalternativemeasurestofundinfrastructure programs.Asubsidizedschemeshouldbedevelopedandamechanismfordrawing fundsfromcapitalinvestmentsmustbeexplored; • FullimplementationofAccessibilityLaw(BatasPambansa344)andEqual OpportunityforEmploymentLaw(RA10524)anchoredontheUnitedNations ConventionontheRightsofPersonswithDisabilitiesforinclusivedevelopmentof personswithdisabilities(PWDs); • InstitutionalizationofEO417willensurethatPWDsareprovidedwithsustainableand long-termlivelihoodprogramsandemployment; • SourcesofVinanceforhousingcanalsobedrawnfromfuturepublicinvestmentsin transportinfrastructureandfrompropertyownersandspeculators. Transportationnetworkscanbedevelopedgiventheincreaseinlandpricesincities. Propertyownersandspeculatorsresidingongovernmentlandcanbetaxed.The existingPhilippineNationalRailway(PNR)andtheMRT-LRTsystems,whichareprime real-estateproperties,canbeusedtolinkthecitycenterstothetransportation backbonesortoperipheralareas; • Createaninfrastructureprogramforsecondarytownsandperi-urbanareas. Infrastructureprogramsshouldprovideforsustainableemploymentanddecentwork,if notenhancedmobilitytoareasofemployment.Assuch,stationsshouldconsiderthe locationofmarketstoaccountfortheneedsofworkers.Whileregionaldevelopment strategiesseektodecongestthecenter(toareasofdevelopmentsuchasRegionsIIIand IV-A),nationalroadnetworksandtransportcorridorshavetobelinkedtoremotetowns andtosecondaryurbanhubs.Thisway,investors,especiallyinagro-processing manufactureswillmoveoutoftheircomfortzonesinourcongestedmetropolitanareas tosecondaryhubs.Atthesametime,workerswillnolongerneedtogotothecities, sincetheirlaborpowerwillbeembeddedintheproductsthattraveltothecities; • IncorporatetheDepartmentofTradeandIndustry’sindustryroadmapsintothe PhilippineDevelopmentPlan.Sustainableemploymentanddecentworkcanbebest ensuredbyprovidingindustrysectorroadmapsthatindicatethelocationof,for instance,food,manufacturingorautomotiveindustries; • ContinuetoadopttheAcceleratedandSustainedApproachtoPovertyReduction (ASAPP),astrategythatcreatessecondarygrowthhubsinthecountry’s10poorest provincesbyimprovinggovernment’sdeliveryandconvergencemechanismstocreate morejobsintheseareas. 4) Climateresilience ThePhilippinesisoneofthemosthighlyvulnerablecountriestodisastersbroughtaboutby climatechangedespiteitsminimalcontributionofcarbonemissions.Resilientcommunities shouldbeournewnormal.Forthis,thepolicyrecommendationsare: • Acomprehensivedisasterriskreductionandclimatechangeadaptationprogramthat • • • • integrateseffortsatthenationalaswellaslocallevelsinordertoensure comprehensiveandappropriatepre-during-postsolutionsandinitiativestodisasters. LGUs,especiallythosewithlessstructuralandDinancialcapacity,mustbeprovided thenecessarysupporttoensurethattheycomplywiththemandatetoinstitutionalize localdisasterriskreductionmanagementofDices(LDRRMO).InsuchofDices,greater people’sparticipationandrepresentationmustbeincorporatedindisasterrisk reductionandmanagementgovernanceatalllevels; ExpeditedimplementationofthePeople’sSurvivalFundlaw(RA9729); EnactmentoftheInternallyDisplacedPersons(IDP)Billfortheprotectionoftherights oftheIDPsintimesofdisasters,bothnaturalandhuman-made; Anenhancednationalgreeningprogramthatservesnotonlytheobjectiveofmassive genuinereforestationeffortstoregeneratethecountry’sforests,butalsoaddresses theproblemofbalancingeconomicdevelopment(usingeasilyharvestabletrees)and environmentalprotection(ensuringtheplantedseedlingsgrowandeventually matureintoahealthyecosystem).Illegalloggingremainsrampantsoforest protection,fromillegalsettlersburningtreesforcharcoaltobigcorporations,mustbe guaranteed;and ImplementationofRenewablesEnergyActof2008(RA9513)foramoreproactiveeffort fromthegovernmenttostarttheroll-outofchoosingpowerplantsthatutilize renewablesoverfossilfuels,andtheeventualphase-outofcoal-Diredpowerplants. 5) Politicalreformsandpeople’sempowerment Politicalreformsincludegoodgovernancestrategies,anti-corruption,andlayingdown mechanismstoempowerthepoorandmarginalized.TheAquinoadministrationclaimsthatthe unprecedentedeconomicgrowthisaby-productoftheDaangMatuwidvision,whereGood GovernanceisavitalpartoftheequationthatleadstoInclusiveGrowth. Policyrecommendationsare: • Ensureparticipatorygovernanceatalllevelswhereorganizedgroupsarerepresentedin • • • economicplanningandothermechanisms.Basicsectorparticipationmustbe ensuredinalllevelsofplanningandbudgetingprocessesinallgovernmentbodies, includinggovernmentownedandcontrolledcorporations,aspartofthegovernance frameworkonthePhilippineDevelopmentPlan.Theinclusionofsectoral representativesthetheAutonomousRegioninMuslimMindanaomustbeensured; ContinuedimplementationofBottom-upBudgetingtofurthersupportandprovide fundingrequirementsforthedevelopmentneedsoforganizations,municipalities,and cities.Theimbalanceofbargainingpowerbetweencivilsocietyorganizations(CSO) andLGUswiththeBuBmustbecorrectedbycreatinganempowermentfundfor CSOs; Passageofanenablinglawonaccesstoinformation,suchastheFreedomofInformation Billtoensurefulldisclosureofpublicdocuments,promotetransparencyandaccess togovernmentinformation,andthereforeaidinanti-corruptionmeasures;and EnactmentoftheAnti-PoliticalDynastyBill. 6)Longlastingpeacetowardsinclusivedevelopment Ensuringequitableaccesstoproductiveassetsandeconomicdevelopmentremainsacrucial challengeforthenextadministrationnotonlyinordertosustainthegrowthachievedthusfar,but alsotoaddresstheconditionthathasfuelleddecades-oldinsurgenciesinthecountry.Special focusmustbegiventoMindanaowhereMororebelgroups’strugglesforself-governanceand indigenouspeople’sDightforancestraldomaincontinuetosparkviolentconfrontationswith governmentforcesandwithothercommunities.Maintainingopencommunicationlineswithrebel groupsisanimportantsteptowardsachievinglastingpeaceanddevelopment. Othermeasuresworthconsideringfortheincomingadministrationarethefollowing: • Immediateresolutionofjustice-relatedcasessuchasthe2015Mamasapanoincident • • • andthe2010Maguindanaomassacre; Resumptionand,ifpossible,conclusionofthepeaceprocesswiththeNational DemocraticFrontandtheMoroIslamicLiberationFront; PassageofaBangsamoroBasicLawinthespiritofpromotinglong-lastingpeaceand economicdevelopmentinMindanao;and Recognitionandprotectionoftheindigenouspeople’srightsovertheirancestral domain,includingtherighttodecidethekindofdevelopmenttheydeemsuitablefor themselves,asintherecentcaseinvolvingtheLumads.
© Copyright 2026 Paperzz