benckmarking the performance of the aquino administration - year 3

7/28/2019 Benckmarking the Performance of the Aquino Administration - Year 3

1/44

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


2/44

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


3/44

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


4/44

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


5/44

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


6/44

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


7/44

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.


8/44

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


9/44

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.


10/44

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?


11/44

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.


12/44

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


13/44

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).


14/44

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


15/44

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


16/44

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:


17/44

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,


18/44

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


3. Madariseducation forMuslim Filipinochildrenasasubsystem in the education

system.IwantafullbasiceducationforallMuslimFilipinochildren.This istogiveproper

respecttotheirculturewhileprovidingasoundcurriculum inEnglish,Filipino,science,and

math.Madariseducation,withsubjectsinArabiclanguageandIslamicvalueseducation,can

beintegratedinourpublicschoolcurriculumasadditionalsubjects.


19/44

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


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


Implementation: Weight0.35x5

6. Scienceandmathproficiency.Iwillrebuildthescienceandmath infrastructurein

schools

so

that

we

canproduce

more

scientists,

engineers,

technicians,

technologists

and

teachersinouruniversitiessothatthiscountrycanbemoregloballycompetitiveinindustry


20/44

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


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



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




21/44

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


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



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


22/44

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


23/44

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


24/44

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


25/44


26/44

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/


27/44

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


28/44

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


29/44

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


30/44

Theotherhighlightofthegovernmentsaccomplishments isthepeacenegotiation

with the Moro Islamic Liberation Front. The principles and a common framework were

benckmarking the performance of the aquino administration - year 3

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