Reforming Philippine Anti-Poverty Policy REFORMING PHILIPPINE ANTI-POVERTY POLICY NAPC SECRETARIAT Reforming Philippine Anti-Poverty Policy NAPC SECRETARIAT 2017 Copyright © 2017 National Anti-Poverty Commission Secretariat All rights reserved. Any part of this publication may be used and reproduced, provided proper acknowledgment is made. Reforming Philippine Anti-Poverty Policy Research and writing Jose Enrique A. Africa, lead author Ma. Victoria R. Raquiza Evalyn G. Ursua Evita L. Jimenez Project coordination and copy editing Jon Vincent Marin Peter Paul Sengson Administrative support Raquel Valerio Joanna Melody Lerio Annabelle Batingan Cover & Layout Jennifer Padilla Published by: National Anti-Poverty Commission Communications and Public Relations Committee Water Supply Training Center, MWSS-LWUA Complex Katipunan Avenue, Quezon City 1105 Philippines www.napc.gov.ph Printed in the Philippines Foreword Poverty is the single greatest challenge facing our country today – and our entire society, including government and all of our citizens, should act on it accordingly. This book attempts to answer the question that has eluded our nation for decades: how can poverty be fnally eliminated? Not, it turns out, by having centerpiece anti-poverty programs, but by making poverty eradication the centerpiece of economic, social, and environmental policies. The book argues for a pro-poor development policy anchored on four main elements: 1) a human rights-based and social development approach to poverty reduction; 2) structural transformation of the economy, built on rural development and national industrialization; 3) a comprehensive, universal, and transformative social policy; and 4) democratic governance based on people’s democratic participation. It is a comprehensive and integrated approach requiring the unity of macroeconomic and all other policies as well as the meaningful coordination of all government agencies and instrumentalities, and, indeed, of all sectors of society. This book is the result of over a year’s worth of work by the NAPC Secretariat, in fulfllment of the agency’s mandate to recommend anti-poverty policies and ensure the active participation of the basic sectors in governance. It is the product of countless engagements with other government agencies, civil society partners, and basic sectors both within and outside of the NAPC, including the 2016 National Anti-Poverty Sectoral Summit. It was put together from and through the excellent work of our research and writing team, including Mr. Jose Enrique Africa, who served as lead author and established the framework for macroeconomic policy reform; Dr. Ma. Victoria Raquiza, who shaped the discussion on transformative and universal social policy; Atty. Evalyn Ursua, who elucidated the human rights-based approach to poverty reduction; and Ms. Evita Jimenez, who contributed the sections on political participation. We are hopeful that this book inspires discussion and debate among anti-poverty advocates in our country, and ultimately serves to infuence policymaking in pursuit of the Duterte Administration’s long-term vision of a nation free from poverty, as stated in AmBisyon Natin 2040. LIZA L. MAZA Secretary/Lead Convenor Table of Contents 1 Introduction 2 Executive Summary 7 Current Situation: The Challenge of Philippine Poverty 8 Income poverty 11 Inequality 14 Social indicators 17 Rural issues 17 Ethnic groups 18 Worker concerns 19 Informal sector 20 Women 21 Overseas Filipinos 23 The Roots of Philippine Poverty and Underdevelopment 23 Production 40 Inequality 42 Social policy 48 Democracy 50 Ecology 52 Current Responses: Anti-Poverty Programs 52 Anti-poverty programs 53 Development plans 55 Markets and poverty 56 Capacity 58 Proposed Response: Pro-Poor Development Policy 59 Rights-based framework 61 Economic development 66 Sustainable consumption and production 67 Institutional reforms 68 Social services 69 Comprehensive, universal and transformative social protection 71 Democratic governance 74 Political Implications and Action 74 Building the constituency for change 74 Attaining development 76 References 81 List of Abbreviations 82 List of Charts and Tables 84 About the Writers Current Situation: The Challenge of Philippine Poverty Current Situation: The Challenge of Philippine Poverty Reforming PhilippineExecutive Anti-Poverty Summary Policy Introduction he clamor for change in the country is growing. poverty eradication the centerpiece of social, TWhile perhaps expressed in varied ways, economic and environmental policies. the clamor is most of all driven by unresolved poverty and worsening social, economic, and A rigorously pro-poor development strategy political inequity. It is also becoming more and can be built around a few key elements. The more urgent to respond: public frustration is human rights-based and social development growing and divisions are widening, and the approach enables a comprehensive volatile global economy threatens the external understanding of poverty, acknowledges the sources of growth that the country depends on. primacy of State obligations to the people over market forces, and upholds greater participation Today, many Filipinos pin their hopes on the of the poor in decision-making. There is strong Duterte administration for the kind of changes moral basis as well as suffcient legal basis to in governance and direction that will result in uphold social justice and human rights. palpable improvements in their standards of living, and allow them to live a life of dignity and Far-reaching reforms are needed in well-being. It is a dream for themselves and the country’s anti-poverty policies their families that has long eluded them. Many to respond to the clamor and Filipinos share this hope and await its fulfllment, not in a distant future but now. While they know urgency for change. The most basic that real change cannot happen overnight, they modification is to shift from having are looking for concrete steps towards this. a centerpiece anti-poverty program to making poverty eradication the The economy has been growing rapidly in centerpiece of social, economic, and recent years but this has not translated into environmental policies. inclusive and equitable development. Real development entails not just rapid growth per se, but correspondingly rapid improvements This approach compels reforms in two major in the conditions of the majority as well as areas of socioeconomic policy: building strengthening the long-term foundations of the on rural development to achieve national economy. industrialization to create jobs and improve incomes for the majority of Filipinos in a Despite rapid growth, tens of millions of Filipinos sustainable manner; and a comprehensive, remain poor and the economy is still far from the universal, and transformative social policy advanced industrial economy that it needs to be ensuring social services and social protection in order to improve the welfare of the majority and for all Filipinos. The extent to which these will to have the economic basis for real independence be achieved crucially depends on the extent of and sovereignty. The last four decades of democratic governance with participation by increasingly market-oriented economic policies the people in the decision-making that affects have been unable to transform and develop the their lives. economy. There are even signs that the greater openness and integration in the world economy This is a comprehensive and integrated approach is premature and makes independent and self- to eradicate poverty and to combat structural reliant progress even more diffcult. obstacles in the inequitable national economic and political order. The whole-of-government Conventional area-based, sectoral, and targeted approach requires unity of macroeconomic, social ‘anti-poverty’ measures have not been enough services, and social protection policies as well as to make a signifcant dent in the fght against meaningful coordination of all its agencies and poverty. Far-reaching reforms are needed in instrumentalities. It is particularly crucial to reform the country’s anti-poverty policies to respond macroeconomic policies because these have to the clamor and urgency for change. The the farthest-reaching and longest-lasting impact most basic modifcation is to shift from having on poverty in the country. They constitute the a centerpiece anti-poverty program to making foundation of the country’s development strategy. 1 Current Situation: The Challenge of Philippine Poverty Executive Summary The challenge of Philippine poverty monopolies on land and other rural assets. This situation compels landless and smallholder Tens of millions of Filipinos remain poor with farmers, farm workers, and fsherfolk to sell their various degrees of vulnerability labor and produce at exploitative prices and seek various non-agricultural odd jobs. Indigenous Despite rapid economic growth in recent years, peoples and Moro people in addition face tens of millions of Filipinos remain poor. Some dispossession from their ancestral lands and 21.9 million Filipinos or 3.8 million families are territories as well as stereotyping, prejudice, and offcially considered income-poor, corresponding cultural discrimination. to 21.6% of the population and 16.5% of families. However, as much as 50-60 million Filipinos may Wage and salary workers face low wages, poor be considered poor when other dimensions of benefts, precarious fexible work arrangements poverty are considered. especially through contractualization,