CHAPTER 2
SOCIAL REFORM AND DEVELOPMENT
I. Assessment of Performance
The improvement in the quality of life of all Filipinos primarily through poverty reduction, is the objective of Philippine social and human development efforts. The government pursues this goal through the attainment of sustained growth in a competitive economy and through people empowerment within the framework of sustainable development.
Social indicators reflect progress in the attainment of this objective in 1993-98. Notable gains were achieved in health, education, and nutrition as evidenced by increasing life expectancy and literacy rates, and declining mortality and malnutrition rates. Poverty incidence declined in 1997 to 32.1 percent from 35.5 percent in 1994. Across regions, the incidence of poverty decreased in 13 out of 15 regions (excluding Caraga), with decreases ranging from 10.3 percentage points (Region 1) to 0.9 percentage point (NCR). In addition, the Human Development Index (HDI)1 for the Philippines improved from 0.621 in 1992 to 0.677 in 1995, a consistent development since 1960 (Figure 2.1).
In Asia, the Philippines ranked second in achieving gender equity as shown by UNDP's Gender Empowerment Measure (GEM). GEM reflects the extent to which women are able to actively participate in the economic and political life of the country (Table 2.1).
These gains were achieved through various reforms on poverty reduction and social development. The basic sectors and the government engaged in a partnership to pursue urgent social reforms germane to national growth and development, political stability and peace. The Social Reform Agenda (SRA) was launched in 1994, focusing on three major strategic interventions, namely: (a) access to basic social services as imperative to survival; (b) asset reform and access to economic opportunities as the means to work and earn a living; and (c) people's effective participation in governance toward self-reliance and empowerment.
Notwithstanding these modest gains, major socioeconomic problems continue to effect the social sectors. Although poverty incidence decreased between 1994 and 1997, around 4.6 million families were still estimated to be living below the poverty line in 1997. These were mostly in rural areas, where the number of poor families increased by 297,927, despite the 2.6-percentage point drop in rural poverty incidence during the period. Moreover, there remain considerable disparities in social condition across geographic areas and population groups.
Although the social development status of the country has improved, the rate of improvement was still relatively slower than desired, particularly when compared to those of its ASEAN neighbors. In Figure 2.2, the HDI of five ASEAN countries were rebased using the Philippines as reference. Only Singapore had a higher HDI than the Philippines in the 1960s. By 1994, however, the Philippines had lagged behind Singapore, Malaysia and Thailand; only Indonesia's HDI was lower than that of the Philippines. Nonetheless, current trends show that Indonesia is fast catching up.
A new concern has also emerged: the financial crisis which hit the Asian region in mid-1997. The financial crisis is expected to have not only economic but social repercussions as well. The crisis has led to a drastic increase in the number of workers affected by closures and retrenchments: those adversely affected in 1998 were more than twice the numbers posted for 1997.
A. Sectoral Performance
1. Health, nutrition and population
Policies and legislation
Health laws have sought to improve service delivery and finance, with the ultimate objective of establishing a universally accessible health care system. These laws supported the major policy thrusts of the sector, as embodied in the National Health Plan, 1995-2020 and its companion document, the 10-year health investment plan, entitled "Investing in Equity in Health."
To provide health insurance coverage to all Filipinos, the National Health Insurance Act was enacted into law, mandating the creation of the National Health Insurance Program (NHIP). The NHIP provides health care insurance to indigents and government and private sector employees, and is currently administered by the Philippine Health Insurance Corporation (PhilHealth).
Efforts to promote community-based, primary health care systems were strengthened through the enactment of the Barangay Health Workers' Benefits and Incentives Act of 1995 (RA 7883), and the Magna Carta for Health Workers (RA 7305).
RA 7883 led to the registration and accreditation of some 174,569 Barangay Health Workers (BHWs) by the city/municipal health board in 1997. In 1997, the national government appropriated P55 million as subsidy to fourth, fifth and sixth class LGUs to provide for the subsistence allowance to accredited BHWs. However, the law encountered several implementation problems, including the following: (a) some BHWs have not availed of the benefits and incentives supposed to be given to them after being dropped from the BHW list by local government executives (LGEs); (b) some LGEs accredit BHWs who have not undergone the basic training required under the law; and (c) unsustainability of national government subsidy.
The Magna Carta for Health Workers likewise suffered implementation problems. Health workers were not paid their benefits mandated under the Act due to insufficient local government funds. This has demoralized local health officials and workers, prompting some to call for a renationalization of devolved implementation of health services. To date, only four types of financial benefits have been given to government health workers, namely: subsistence allowance, clothing allowance, salary differentials and representation and transportation allowance (RATA).
In nutrition, notable policy developments included the formulation and adoption of the Philippine Plan of Action for Nutrition (PPAN) and the implementation of RA 8172 or the Act Promoting Salt Iodization Nationwide, or the ASIN Law. The ASIN Law and its Implementing Rules and Regulations (IRR) were disseminated throughout the country in 1996 and 1997. Despite these, problems were noted including low utilization, lack of supply in some local markets, absence of sanctions for violators, absence of a monitoring system, high prices in some areas and high standard.
In population management, the Philippine Population Management Program (PPMP) 1998-2003 Directional Plan and Advocacy Plan were formulated and adopted. EO 307 dated February 28, 1996 was likewise signed directing local chief executives to promote the family planning program as a priority government program. Other important policy developments include the following: (a) development of guidelines on and training materials for the conduct of pre-marriage counseling; (b) formulation of the IRR of Section 37 of the Urban Development and Housing Act (UDHA), which highlights the effective monitoring of population movement; and (c) development of a gender-responsive PPMP framework with aims to solidify efforts in gender, population and reproductive health concerns.
Access to services
In general, the population gained wider access to health, nutrition and family planning services.
The Universal Child Immunization goal of 90 percent fully immunized children (FIC) was achieved in 1992 and 1997. The overwhelming response from all sectors led to more effective initiatives in polio eradication and neonatal tetanus and measles elimination. Meanwhile, the prevalence rate for tuberculosis dropped from 3.7 per 1,000 population in 1992 to 3.1 in 1997.
In environmental health, the proportion of households with safe water supply improved from 80.1 percent in 1992 to 86 percent in 1996. The percentage of those with sanitary toilets likewise increased from 69.5 percent to 74.4 percent in the same period.
In the eradication of drug abuse, treatment and rehabilitation services of various residential centers were improved to meet the needs of the clients. Likewise, more residential and outpatient centers were established by the Dangerous Drugs Board.
Under the Family Planning Program, 81.2 percent of the target married couples were recruited as new acceptors in 1997, from 69.1 percent in 1992. The number of continuing users also increased from 78.1 percent in 1992 to 98.6 percent in 1997. As a result, the contraceptive prevalence rate increased from 40 percent in 1993 to 47 percent in 1997.
In 1994-97, more than 80 percent of targeted home gardens and 100 percent of targeted school and community gardens were established under the Home and Community Food Production Program. Meanwhile, the Food Assistance Program reached about 82.0 percent, 98.0 percent and 42.0 percent of targeted preschoolers, school children and pregnant women, respectively.
About 86 percent and 70 percent of targeted preschoolers and schoolchildren, respectively, received Vitamin A supplements. About 82 percent of the targeted women aged 15-40 years old were given iodized oil capsules. Use of iodized salt increased from 9 percent in 1995 to 23 percent in 1998. Iron supplementation remains at an average of 30 percent for infants, preschool and schoolchildren and pregnant and lactating women. Poor acceptability of local iron preparations and low compliance are a few of the factors aggravating the low iron supplementation performance.
Health outcomes
Estimates of the vital health indicators show marked improvements in the overall health and nutrition status for 1993-97. Life expectancy at birth increased from 66.7 years in 1993 to 68 years in 1997. The infant mortality rate (IMR) was reduced from 52.0 per 1,000 livebirths in 1993 to 45.8 in 1997 while the crude death rate decreased from 6.9 per 1,000 population in 1993 to 6.1 in 1997. The total fertility rate declined from 3.9 children per woman in 1990 to 3.6 in 1997.
There was also a general improvement in the nutrition status from 1992 to 1996. The prevalence of underweight preschool children declined from 10 percent in 1992 to 8.4 percent in 1996, as did the prevalence of underweight school children, from 9.4 percent in 1992 to 7.4 percent in 1996. Boys were found to be more vulnerable to protein-energy malnutrition than girls.
While their prevalence rates declined, infectious and communicable diseases continue to be the leading causes of mortality and morbidity across all ages. Meanwhile, changing lifestyles and habits are turning chronic and degenerative diseases (e.g., malignant neoplasms and cardiovascular diseases) into prevalent causes of death as well.
In nutrition, substantial shortfalls remain. Chronic energy deficiency affected 14 percent of Filipino adults aged 20 years and above in 1993. About 11.5 percent and 16.1 percent of males and females, respectively were underweight. Micronutrient deficiencies were likewise considerable. Iron deficiency anemia (IDA) affected 28.9 percent of the population in 1993. Iodine deficiency disorders (IDD), on the other hand, affected 6.7 percent of the population seven years old and above. This is an important concern because infants born to women with goiter have lower IQs and face higher risks of mental and physical disabilities. Prevalence of Vitamin A deficiency (VAD) in 1993 was significant at a rate of 35.0 percent among children 6 months to 6 years old.
Nothwithstanding some aggregate gains in health and nutrition, there are continuing discrepancies within and between geographic areas. For instance, there remain large mortality differentials by province, such that the top five high-mortality provinces in 1995 had IMR rates that were twice as high as the lowest mortality provinces. Large differentials in maternal mortality across provinces likewise persist. In 1995, the top five high-mortality provinces had maternal mortality rates twice as high as the five provinces with the lowest mortality (Table 2.2).
2. Education and Training
Policies and legislation
In education and training, major laws and policy reforms were geared toward enhancing educational access, quality and relevance. The more important policy developments include the following:
a. Across education levels
The trifocalization of the management of the educational system was carried out with the creation of Commission on Higher Education (CHED) and Technical Education Skills Development Authority (TESDA). This gave each agency the appropriate focus to basic, middle-level skills development, and higher education;
In pursuit of the objectives of Section 66 of the Agriculture and Fisheries Modernization Act (AFMA), the National Agriculture and Fisheries Education System (NAFES) was established to coordinate and modernize the education system for the agriculture and fisheries sector; and
The Government Assistance to Students and Teachers in Private Education (GASTPE) made substantial contributions to enhance access to secondary education, postsecondary and higher education while minimizing the financial and management burden of the government. In 1993-98 alone, some 359,199 student grantees were serviced by 2,153 private secondary schools, representing 48.0 percent of the total number of private secondary schools. At the tertiary level, 21,093 students benefited from the Private Education Student Financial Assistance (PESFA) Program of GASTPE in 1997. In 1998, a law was passed expanding the scope of GASTPE and providing for salary subsidies for private school teachers in view of the growing disparity between their salaries and those of their public counterparts. Other forms of assistance to teachers and faculty provided under the GASTPE are the inservice training (INSET) fund for teachers in private schools, and the College Faculty Development Fund for postsecondary and higher education.
b. Basic education
The adoption of a Ten-Year Early Childhood Investment Plan (1996-2005) helped ensure a more integrated approach to human development, with proper focus given to early childhood care and development. This gave rise to the implementation of the Early Childhood Development Project;
The Ten-Year Master Plan for Basic Education (1996-2005) was adopted, anchored on the twin thrusts of decentralization and modernization. The Plan gave rise to enabling measures to promote school-based management and principal empowerment. Further, the Third Elementary Education Project (TEEP) was launched in 1997 and the Secondary Education Development and Improvement Project (SEDIP) was developed to pilot a decentralized scheme for the management of basic education. A modernization program was likewise launched to help promote the use of information technology in selected schools;
The learning continuum was extended to cover both elementary and secondary education on an integrated basis, rather than separate and independent levels;
In science and mathematics education, legislative actions included the passage of RA 8496 establishing the Philippine Science High School System (PSHS). RA 8496 integrated the existing PSHS into one system of governance to ensure quality standards by systematizing procedures and rationalizing science high schools. The law also rationalizes the increase in student contact time by lengthening the school calendar and having additional teaching/learning time for English, Science, Mathematics and Physical Education. In addition, science awareness programs and projects were implemented to support continuous training of teachers, and provision of instructional materials and equipment for science laboratories;
Through the Compensation and Position Classification Act of 1989, or RA 6758, the minimum monthly salary of public school teachers was raised from P3,102 in 1993 to P8,605 in November 1997; and
Consistent with the recommendations of the Congressional Commission on Education (EDCOM), the National College Entrance Examination (NCEE) was abolished as a centralized testing system to select students qualified for higher education. It encouraged higher education institutions to set up their own admission instruments. However, the National Elementary Achievement Test (NEAT) and National Secondary Assessment Test (NSAT) were administered starting 1993 and 1994, respectively, in order to provide a mechanism for assessing performance.
c. Middle-level skills development (MLSD)
The passage of the Technical Education and Skills Development Act (TESDA) of 1994 made technical-vocational education and training (TVET) as one of the major pillars of the educational system and led to the creation of the TESDA. A number of policy reforms have since been put in place:
The passage of RA 7686, or the Dual Training Act, is expected to strengthen the Dual Training System (DTS) and extend it to agriculture and related activities. The DTS combines learning in school and the workplace and seeks to produce graduates whose skills are attuned to the needs of the economy;
The Quality-Assured Technical Education and Skills Development System was established as a new institutional framework for which the following program packages are being implemented:
(1) Adoption of competency-based technical education and skills development in all TVET programs;
(2) Establishment of the TESDA Occupation Qualification and Certification System which calls for modularized and competency-based learning such that each level has a set of qualification requirements;
(3) Institution of the Philippine TVET Quality Awards to serve as the highest level of recognition for organizational performance in TVET; and
(4) Development of a Unified TVET Program Registration and Accreditation System as a mechanism to ensure quality among all institutions offering TVET programs.
Pursuant to a directive of Congress, 218 technical-vocational schools were transferred from DECS to TESDA in 1997-98 in order to rationalize the governance of these schools. However, most of these schools which were found out to offer secondary education were transferred back to DECS. At present, TESDA manages only 58 schools having postsecondary/nondegree program; and
The First National Technical Education and Skills Development Plan: A Vision and Strategy for the Development of Middle-Level Human Resources was formulated. This plan is expected to improve the matching of supply of and demand for critical middle-level manpower and rationalize investment in HRD.
d. Higher education
In the area of higher education, the following legislations brought about the development of policies envisioned to revitalize and reengineer the subsector.
The passage of RA 7722 or the Higher Education Act of 1994 established the (CHED). The CHED has since adopted the following measures in pursuing its major goals:
(1) Initial Formulation of the Long-Term Higher Education Development Plan, 1996-2005;
(2) Operationalization of the Centers of Excellence and Centers of Development in nine clusters of disciplines;
(3) Initial Formulation of the First Medium-Term Higher Education aand Investment Plan.
(4) Operationalization of the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP);
(5) Establishment of Quality Assurance System in higher education;
(6) Improvement of maritime education curricula to meet international standards;
(7) Establishment of the Higher Education Management Information System (HEMIS); and
(8) Development of criteria for the allocation of various scholarship grants for higher education.
The prescription of a Licensure Examination for Teachers through RA 7836 strengthened the regulations and supervision of the practice of teaching in the Philippines. To complement this, the Code of Ethics for Professional Teachers was promulgated to balance the concern for teachers' privileges with their professionalism;
The Teachers' Education Council (TEC) and Centers of Excellence (COE) were created by RA 7784 to improve teacher training and education. The TEC is mandated to formulate policies and standards and design programs and projects to strengthen and improve the system of teacher education. The COE will form a national network of selected private and public institutions which will experiment with innovative preservice teacher education and training programs, as well as serve as teacher resource centers for curricula and instructional materials development. COEs are also designed to organize and coordinate collaborative research and provide professional assistance to other teacher education institutions. At this stage, however, the visible impact of this law on the quality of basic education has yet to be seen;
The Higher Education Modernization Act (RA 8292) was passed to achieve a more coordinated and integrated system for higher education and strenghten the policy formulation process of SUC governing boards. The legislation allows a Higher Education Institution (HEI) to initiate institutional mergers and restructuring. But while the law may have improved the system of internal governance of individual institutions, it appears that this has also adversely affected CHED's capacity to effectively serve as the central agency for the external governance of higher education by diverting their attention and resources from their mandated major functions;
The University of the Philippines in Mindanao was established to disperse benefits of quality higher education and contribute to the acceleration of the area's social and technological development; and
A total of 20 state universities and colleges (SUCs) was created in the past five years through the conversion of several middle-level education institutions, bringing the total number of SUCs to 107 as of 1998. These were done to broaden the access of the population to tertiary education. However, results of several studies, among them the ADB-World Bank Education Sector Study, reveal adverse effects on the long-run goal of upgrading the caliber and stature of Philippine higher education. Apart from further straining the meager public resources available, they also crowded out private sector investment in higher education and affected resource allocation for basic education.
e. Culture, arts and media
The following measures advanced the preservation and promotion of Filipino cultural and artistic heritage, particularly in restoring historical landmarks, renovating significant cultural centers and establishing a well-defined conservation program:
Creation of the National Centennial Commission in 1993 which took charge of the nationwide preparation for the celebration of the Philippine Centennial of the Declaration of Independence;
Implementation of the Philippine Development Plan for Culture and the Arts, 1993-2000;
Implementation of the National Cinema Program for Values Formation 1996-99;
Passage of the National Museum Act of 1998 (RA 8492) establishing a National Museum System, and providing for its permanent home, among others;
Implementation of the Declaration of 1988-98 as the Philippine Decade of Culture and Nationalism;
Passage of RA 8371, the Indigenous People's Rights Act, to recognize, promote and protect the rights of indigenous peoples; and
Reactivation of the Film Ratings Board attached to the Film Development Foundation of the Philippines.
Access to services and status of outcomes
Education and manpower development indicators generally improved since 1993.
a. Basic education
Significant gains were made to ensure better access to basic education. Targets were generally met in terms of raising participation rates, which increased from 85.4 percent in 1993 to 95.1 percent in 1997 at the elementary level and from 57.6 percent to 64.2 percent at the secondary level for the same period (Table 2.3). This could be attributed to the following measures taken by DECS:
Reduction of classroom backlogs and teacher shortage;
Reduction of incomplete elementary schools through the provision of additional classrooms and teachers, and creation of multigrade classes in appropriate areas;
Reduction in the number of rural barangays without elementary schools and the number of municipalities without high schools; and
Augmentation of funds for the School Building Program from the private sector and Official Development Assistance (ODA).
However, the task of keeping the children in school and ensuring effective learning remain serious challenges. Difficulties were met in maintaining cohort survival rates. At the elementary level, the cohort survival rate slightly moved from 67.5 percent in 1993 to 68.8 percent in 1997, as against the 1997 updated target of 73.7 percent. At the secondary level, the cohort survival rate decreased from 75.9 percent to 71.4 percent within the same period, falling way below the 1997 updated target of 80.2 percent.
In addressing these problems, solutions must go beyond infusing resources. The Ten-Year Master Plan for Basic Education seeks to address the following concerns through the twin thrusts of decentralization and modernization: (a) enhancing the relevance of the school curriculum; (b) enriching the learning experience; (c) empowering the frontline managers (i.e., superintendents, principals and teachers); (d) enhancing teachers' competence in facilitating and evaluating learning; and (e) enhancing partnerships with stakeholders, particularly with LGUs, through the Local School Boards. There is also a need to invest in effective alternative delivery schemes especially for children at risk, i.e., children in armed conflict areas, children of migrant workers, indigenous peoples, street children, etc. Careful consideration must be given to the socioeconomic environment of the learners.
The cognitive skills of the population improved over the medium-term, as evidenced by the higher incidence of literacy and the modest but steady progress in the achievement level of children. Basic literacy _ the ability to write a simple message in any language or dialect _ increased from 89.9 percent in 1989 to 93.9 percent in 1994 as against the target of 93.5 percent for 1994. Functional literacy, which also include numeracy and problem-solving skills, increased from 75.2 percent to 83.8 percent in the same period, exceeding the 1994 target of 78.1 percent.
In terms of achievement levels, the updated targets were surpassed in 1997, with actual achievement levels registering at 50.8 percent for elementary and 48.7 percent for secondary level in the same school year. These targets are, however, quite modest. Results of international benchmarking would, in fact, place the Philippines as a tailender in science and mathematics performance. But with stronger decentralization and modernization efforts, marked improvements in the holding power of schools and in pupils' achievement levels are expected.
Serious efforts were directed at the promotion of gender and development and human rights. The school curricula were enhanced and instructional materials were revised or developed to eliminate gender biases and stereotyping and to incorporate human rights concepts.
b. Middle-level skills development
In middle-level skills development, access improved as enrolment rose from 624,572 trainees in 1993 to 798,571 in 1997, representing a 28 percent increase. Moreover, the 1997 actual enrolment figure surpassed the 1997 target (Table 2.3). This covers the combined output of all school-based, center-based, enterprise-based and community-based TVET programs.
However, the estimated coverage constitutes only about nine percent of the potential target clientele due to the difficulty in attracting enrolees to the technical vocational education and training programs and insufficient resources. While higher education accounts for 16.3 percent of the total education budget, TVET gets only 2.1 percent while the rest (or 81.6%) goes to basic education.
Meanwhile, the percentage of TVET trainees certified over the number of those tested has significantly declined from 66.3 percent in 1993 to just 50.30 percent in 1997. This indicates the urgent need to improve the quality of TVET in the country.
To promote greater participation of women in both traditional and nontraditional skills training, the National Vocational Training and Development Center for Women was established to undertake activities in advocacy, research and development, and training in selected skills and nonskills courses for women. A monitoring system to track the employment path of women trainees is now being set up.
c. Higher education
In higher education, gross enrolment increased from about 1.6 million in 1993 to 2.2 million in 1997 exceeding the 1997 updated target by 19 percent. This is due to the expansion in the number of higher education institutions from 1,287 in 1996 to 1,383 in 1998. The performance in licensure examinations also improved with the percentage of passing examinees rising from 25.3 percent in 1993 to 41.2 percent in 1997. In addition, government assistance to deserving college students through various scholarships increased from 32,723 in 1996 to 38,897 in 1998. Finally, the actual percentage of higher education institutions with fully accredited programs reached 47.6 percent in 1997, although this is lower than the 1997 updated target of 65.0 percent.
d. Culture, arts, and media
In culture and the arts, Filipino artists continued to gain world recognition, winning top prizes in international competitions and festivals, particularly in the performing and visual arts. At the home front, artists were recognized through the Gawad Manlilikha ng Bayan Award and the National Artists Award. Further, four Philippine historical structures were included in the UNESCO list of World Heritage Sites. The San Agustin Church, a UNESCO- listed World Heritage structure including its 18th century pipe organ, was restored. The National Museum of the Filipino People was inaugurated, presenting to the public the results of archeological work and anthropological studies.
Initiatives were taken to identify and develop talent among the youth and to bring culture and the arts to the masses through the school system and the use of electronic media, television, cinema and other of mass media. Information on Filipino culture and arts has been made more available both locally and abroad through cultural television programs and the information highway.
The celebration of the centennial of the declaration of Philippine independence highlighted the works of artists, historians and other cultural workers. Among the major activities were mobile historical exhibitions, cultural caravans, centennial competitions and performance and promotion of domestic travel.
The sustained support for cultural activities, particularly through the Endowment Fund for Culture and Arts, developed greater sensitivity and awareness of the Filipino culture among various sectors of the Filipino public. For instance, local arts and culture councils showed renewed enthusiasm in promoting cultural and artistic endeavors in their localities while cultural communities have become better organized in promoting their cultural heritage. Outreach programs were institutionalized and brought to the regions. However, problems of regionalism, ethnic division and the slow development of a national language as envisioned in the Constitution remain.
In media, the broadcast sector collaborated with DECS in developing television programs for science and mathematics. These include Sineskwela, which aims to increase the learning skills of grade-school children in science and modern mathematics and CONSTEL, which is directed at science and mathematics teachers. The government, private media and advertising organizations became more aggressive in propagating values formation messages and promoting the Filipino cultural/historical heritage, as manifested in the yearlong centennial celebration.
Further, the mass media started giving due recognition to children as shown by the shift in the marketing sales pitch from purely monetary considerations to values formation and cultivation among young audiences. Television networks are now airing more educational programs. Finally, community-based-and-owned radio stations, newspapers and other media started to produce low-cost materials such as community newsletters as well as instructional and educational videos. This community participation in media production has facilitated people to choose and create products, mobilize community support, and advocate for their own positions on issues. However, the attainment of a culture of peace and unity, gender-fair society and national discipline remains a formidable challenge.
e. Sports
In sports development, the Philippine Sports Commission implemented the following major programs: (a) the Philippine National Games held biannually since 1994, which provides a breakthrough for LGUs to be actively involved in competitions of such magnitude and generated greater participation among potential athletes from various barangays; and (b) the conduct of sports clinics in accordance with the Sports for All Program envisioned in EO 63 and designed to popularize knowledge on basic officiating, judging techniques, and specialized skills development.
Nevertheless, recognizing the profound impact of sports in national discipline, values system and wellbeing of the citizens, there is an urgent need to decisively address the system of coordination and management of the main sports development implementing machinery.
3. Shelter and urban development
Policies and legislation
Two major pieces of legislation on housing were passed in 1992 and 1994: the Urban Development and Housing Act of 1992 (UDHA) and RA 7835 on the Comprehensive and Integrated Shelter Financing Act of 1994 (CISFA). UDHA prioritizes the provision of decent shelter to the poorest of the poor and provides the framework for the development and use of urban land. Meanwhile, CISFA aims to provide sustained financing to the National Shelter Program (NSP) for a five-year period through increased annual appropriations.
The Implementing Rules and Regulations (IRR) of UDHA, which was completed in June 1998, intends to guide LGUs and other concerned agencies/institutions in: (a) monitoring population movement within their respective jurisdictions; (b) planning and implementing measures to influence population movement; and (c) planning for or setting up of early warning systems on expressed dysfunction due to population increases, decreases or structural changes.
Table 2.4 summarizes the implementation status of UDHA as of June 1998.
Under CISFA, the legislative bodies approved the allocation of P38.5 billion to the NSP to: (a) ensure sustained funding for the program in 1998; (b) increase the capitalization of the National Home Mortgage and Finance Corporation (NHMFC); and (c) increase the annual appropriation for the Social Housing Funds from P500 million to P1.1 billion. Of the allocated P38.5 billion, however, actual releases have reached a mere P7.5 billion. The huge shortfall is attributed to the following: (a) the increase in mandatory reserves from five percent to 25 percent in 1998; (b) the imposition of budget ceilings on the shelter agencies; (c) shortfalls in revenue from the Philippine Amusement and Gaming Corporation, the Philippine Charity Sweepstakes Office, and others sources of funds; (d) the inability to tap other sources identified in RA 7835; (e) nonautomatic allocation of funds to shelter agencies, even if sources were already identified; (f) long litigation/forfeiture proceedings for customs bonds; (g) the present rediscounting rules which do not qualify for low-cost housing; and (h) noninclusion of socialized low-cost housing in the law on the use of Agri-Agra Funds.
The first National Urban Development and Housing Framework was formulated in May 1994 as a guide for local action. It espouses broad development approaches, particularly for the plan period 1993-98. The framework includes the review and rationalization of existing town planning, land use, and housing programs. It provides guidelines for social housing and other related activities, such as the development of livelihood programs, public transport systems, maintenance of ecological balance, and monitoring of population growth in urban areas.
The Housing and Land Use Regulatory Board (HLURB) assisted 144 LGUs in land-use planning and zoning in 1994. This led to the formulation of 32 Comprehensive Land Use Plans and Zoning Ordinances (CLUPs and ZOs). In 1995, 136 LGUs benefited from HLURB technical assistance. In 1996, the Regional Offices provided assistance to the development of 78 more CLUPs and ZOs.
Access to services
The policies for shelter sector were reflected in the National Shelter Program (NSP) developed for the period 1993-1998. For that period, the deficiency in housing was estimated at a total of 3.72 million units, of which 873,000 units and 2,853,000 units comprised backlog and future housing needs, respectively. Accordingly, the NSP originally targeted 1.24 million households for the same period, or roughly 33 percent of the total housing need. This figure was later clarified to be 1.24 million units of housing assistance, a contact-based measure2, equivalent to assistance for around 889,504 households.
From 1993 to September 1998, the NSP provided 1.36 million units of housing assistance to 623,053 households. Against its aggregate target of 1.24 million units of housing assistance, or 889,504 households, this translated to an accomplishment rate of 109.5 percent and 70.0 percent, respectively (Table 2.5).
Specifically, the NSP registered the following accomplishments as of September 1998:
a. The Resettlement Program of the NHA accomplished 35.2 percent of its target to assist 174,581 households, utilizing approximately 94.7 percent or P3.7 billion of the P3.9 billion allotted for the program;
b. The Community Mortgage Program (CMP) of the National Home Mortgage Finance Corporation (NHMFC) accomplished 47.6 percent of its overall target to assist 140,807 households, utilizing 61.3 percent of funds planned for the period. Only 52.5 percent of expected funds for CMP, however, was actually released;
c. A total of 197,663 members of SSS, GSIS, and Home Development Mutual Fund (HDMF), or 52.3 percent of the 377,853 targeted households for the plan period, were provided financial assistance through the Unified Home Lending Program (UHLP). As of September 1998, however, only 52 percent of committed funds was actually released by the pension funds for the UHLP program; and
d. The HIGC's retail guaranty programs indirectly benefited some 117,651 households, exceeding its target of 68,056 households for the plan period, for an accomplishment rate of 173.2 percent.
Meanwhile, only 281,443 households or 45.2 percent were classified under the socialized housing programs3. In short, of the P139 billion spent by the NSP, only P26 billion or 18.9 percent actually reached the bottom 30 percent (Table 2.6) .
With respect to collection efficiency, the average rate over the six years for the UHLP and CMP was 63.0 percent and 76.9 percent, respectively. While both are still low, the collection rate of the CMP, which caters to the lower income groups, was consistently higher than that of the UHLP (Table 2.7). The poor collection performance of the UHLP was due to the poor design of the program, i.e. the focus was on portfolio growth rather than sound underwriting, compounded by the lack of collection infrastructure at the NHMFC.
For 1993-97, housing assistance was concentrated in the National Capital Region (NCR), as this accounted for 33 percent of the total 209,675 target households all over the country. These included the income-poor (bottom 30 percent), informal settlers, and the homeless.4 Region 4 received the second largest share of assistance, with 58,886 households benefiting, while Regions 10 and 3 followed with 21,858 and 21,121 households assisted, respectively.
4. Social welfare and community development
In 1993-98, the basic sectors participated in and benefited from various poverty alleviation interventions which included policy reforms, enhanced programs, and democratized governance. One such program is the Social Reform Agenda (SRA) which was institutionalized in 1996 to ensure a more focused, sustained and participatory implementation of government poverty alleviation efforts. The expected positive effects of these efforts were, however, dampened by the effects of the 1997-98 regional financial crisis and the El Niņo, in 1998.
Policies and legislation
A number of major policies in social welfare and community development were advanced in 1993-98. Foremost of these was the actual conversion and integration of the country's international commitments into domestic laws, programs and policies. Among these were the country's commitments during the following international fora; (a) World Summit for Social Developmentin Copenhagen, 1995; (b) Manila Declaration on Human Rights, 1995; and c) Fifth Asian and Pacific Ministerial Conference on Social Development, 1997.
Policy advocacy was also strengthened domestically through the formulation of the following: (a) Philippine Human Rights Plan 1996-2001; (b) Comprehensive Employment Strategy Program (CESP); (c) Philippine Plan of Action for Children (PPAC); (d) the Philippine Plan for Gender-Responsive Development (PPGD) 1995-2025; (e) the Philippine Plan of Action for the Asia-Pacific Decade of Disabled Persons; and (f) Medium-Term Philippine Youth Development Plan (MTYDP) 1999-2004. The long-term Philippine National Development Plan for Children is being crafted to replace the PPAC and take into account emerging development trends affecting the needs of Filipino children.
Several laws and policies that are comprehensive, timely and adaptable to both local and international issues affecting the poor and the vulnerable were likewise passed and amended. These include the Youth in Nation- Building Act (RA 8044); Child and Family Courts Act (RA 8369); Day-Care Center Law (RA 6972); Expansion of the Coverage and Benefits under the GSIS/SSS Law (RA 8291/RA 8282); Magna Carta for Disabled Persons (RA 7277); Inter-Country Adoption Act of 1995 (RA 8043); Domestic Adoption Act of 1998 (RA 8552); the Law on Increasing the Minimum Wage of Household Helpers (RA 7655); Migrant Workers and Overseas Filipino Act (RA 8042); Anti-Rape Law (RA 8353); Women in Small Business Enterprises Act (RA 8772); and Indigenous Peoples' Rights Act of 1997 (RA 8371).
However, problems in implementation and enforcement persist due to the absence of the following requisites: (a) adequate resources; (b) political will; (c) responsive and systematic institutional support; (d) local government units acting as social advocates and managers; (e) viable statistical systems and monitoring mechanisms at both national and local levels; (f) coordination among concerned institutions that would lead to sustained and convergent interventions in high-risk areas; and (g) willingness on the part of affected populations to initiate resistance to factors that threaten their social and economic rights.
Access to services and status of outcomes
Program interventions during the past four years improved the identification of beneficiaries and integrated in the delivery of social services. This is attributed in part to the installation of the Minimum Basic Needs-Community-Based Information System (MBN-CBIS) in 75 percent of the targeted fifth and sixth class municipalities as of June 1998.
The target for the number of ultrapoor families to be provided with basic social services increased from 55 percent in 1993 to 67 percent in 1995. Given the estimated 2.2 to 2.4 million ultrapoor families, the Department of Social Welfare and Development (DSWD) alone was able to extend services to 31 percent and 44 percent of these families in 1993 and 1995, respectively.
The Comprehensive and Integrated Delivery of Social Services (CIDSS) Project under the SRA reached 250,000 families in 1,154 barangays in 432 municipalities in 1996. In these barangays, overall unmet needs (e.g., potable water, sanitation, daycare/preschool, and durable housing) were reduced by an average of 52 percent in 1997.
To enable poor families to meet their basic needs, microenterprises were provided credit assistance. The People's Credit and Finance Corporation (PCFC) extended P703 million to 71,725 poor households from 1995 to 1998. Moreover, the DSWD provided capital assistance amounting to P355.7 million to 91,465 families from 1993 to 1998. However, the total outreach of both the PCFC and DSWD accounted for only 3.6 percent of the total 4.5 million poor families in 1997.
The workers sector greatly benefited from the employment facilitation services of the Department of Labor and Employment (DOLE). In the last six years, DOLE and LGUs facilitated almost two million placements, notably through the Public Employment Service Offices (PESOs) located in various municipalities of the country. Through government consultations (i.e., DOLE, DILG and LGUs) with various stakeholders, efforts were made to respond to problems confronting the welfare and protection of workers. These concerns include security in the workplace, social and legal protection, access to credit and market facilities, and representation of the informal sector in decision and policy-making bodies of the government.
In support of gender and development (GAD), the government's commitment to ensure the participation of women in economic activities was concretized by equipping them with the necessary skills to join the work force. The number of Productivity Skills and Capability-Building Centers increased from 40 to 106 in 1993-98, providing skills training to 160,000 women on various skills, such as high-speed sewing and rattan craft.
The advocacy for the protection of women's right against violence gained support with the establishment of nine Substitute Homes Crisis Centers for Women nationwide. From 1992 to 1998, these centers were able to serve over 41,000 victims of violence.
Since the enactment of the Youth in Nation-Building Act (RA 8044) which created the National Youth Commission, efforts to tap the youth in nation-building included organizing and involving them in immersion and outreach programs, government internship, and community volunteer work. These efforts were carried out through the following programs: (a) Youth Entrepreneurship Program; (b) Kabataan 2000; (c) Integrated Sangguniang Kabataan Organizational Leadership and Reorientation Program; (d) National Youth Parliament; (e) Student Government Management Program; and (f) Youth Cultural Immersion and Outreach Program. In addition, a consortium of government agencies, the private sector, and NGOs is finalizing a program framework to enlist the out-of-school youth to the in-school and working youth subsectors, and reduce the number of elementary and high school drop-outs after five years.
The Philippine Plan of Action for Children (PPAC) intensified the provision of basic services for children in difficult circumstances. This includes the establishment of Child Help Intervention and Protective Services (CHIPS) which acts as an assessment crisis intervention and therapy center and provides social services to children who are victims of abuse. Meanwhile, the Child Rights Center conducts investigation of child abuse cases, initiates legal action for and in behalf of child victims, and monitors government compliance with the Convention on the Rights of the Child.
The Fourth Country Program for Children (CPC IV) helped improve the welfare of Filipino children. The first three years of programme implementation (1994-96) helped attain the Mid-Decade Goals of the Philippine Plan for Children while during 1997-98, child protection activities were vigorously pursued. Projects for street children, victims of child labor and children in situations of armed conflict were integrated into a single programme on child protection in view of the common need for health, nutrition, education and psychosocial services. The program also assisted in advocacy and social mobilization activities in support of the UN Convention on the Rights of the Child.
As provided for under RA 7876, 130 Senior Citizens' Centers have been set up as of November 1998 to ensure availability of social services for the elderly, especially in rural areas. Currently, a total of 1.8 million senior citizens have been organized into senior citizens' associations to maximize their contribution to nation-building.
A major thrust during the period was the implementation of a five-year pilot project on Social Mobilization of Persons with Disabilities (PWDs), Senior Citizens and their Families, covering 125 municipalities and cities and 1,263 barangays nationwide. The first component of the project known as Early Detection, Prevention and Intervention of Disabilities reached over 210,000 children aged 0-6 years, of whom about 12,000 were found with apparent disabilities. They were provided with appropriate services to reduce the physical and social effects of disabilities. Further, PWDs were organized into self-help groups to facilitate their participation in income-generating projects. Moreover, DOLE's Tulong Alalay sa Taong May Kapansanan or Tulay 2000 assisted 10,577 PWDs in gaining access to wage employment, self-employment and training. Senior citizens were trained on volunteerism and were mobilized to render volunteer work and other community services.
Finally, advocacy for the protection of the rights of PWDs resulted in an empowered sector, as evidenced by the formation of two political parties which participated in the 1998 elections.
These gains notwithstanding, several factors continue to hinder a more effective and costefficient implementation of the foregoing programs and projects. These include inefficiencies arising from the devolution process, such as the misuse of resources in some cases, and the absence of a more systematic and institutionalized monitoring mechanism to ensure overall harmony between policies and programs/projects.
B. Financing the social sector
There was a steady increase in the resources allocated for the social sector. In real terms, the social sector's share of the total budget rose to 32.3 percent in 1997, as compared to just 23.4 percent in 1993 (Table 2.8). The budget for social services also grew faster than the other sectors, beginning in 1994 (Table 2.9). More importantly, the share of basic social services (i.e., primary health care, basic education, water and sanitation, nutrition, and reproductive health and population management) in the national budget increased from 15.7 percent in 1995 to 16.4 percent in 1997 (Table 2.10).
To augment the regular budget for the social sector, the government appropriated a total of P8.5 billion under the Poverty Alleviation Funds (PAF) for the period 1996-98. The PAF is a special purpose fund created to support specific Social Reform Agenda (SRA) programs and to address the most unmet minimum basic needs of poor communities. GAD activities were also given a boost with the requirement of a minimum allocation of at least five percent of national government agencies' budgets for GAD, as provided by Section 28 of the General Appropriations Act.
At the local level, data for 1993 and 1994 show a dramatic increase in the social service expenditures in nominal terms following the implementation of the devolution program (Manasan, 1994; Table 2.11). However, much of the 33 percent increase is explained by the shift in expenditure responsibilities from the national government agencies (i.e., DOH and DSWD) to the LGUs.
Although the same study by Manasan reported that higher per capita internal revenue allotment (IRA) tends to be associated with higher per capita social sector expenditures, the absence of data after 1994 precludes an assessment of whether or not LGUs have, in fact, been allocating a greater proportion of their budget to social services over the medium-term.
Despite the ever increasing share of social services in the budget since the beginning of the decade, resource flows remain below the proposed international norms. For instance, the social allocation ratio5 in 1997 was only 32.3 percent, compared to UNDP norm of 40 percent (Table 2.12). The share of basic social services in the national budget, likewise, fell short of meeting the World Summit for Social Development's 20:20 initiative6. The proportion of the budget that went to basic social services was only 15.8 percent in 1996 and 16.4 percent in 1997. The social sector share excludes the social sector allocation of LGUs that was funded by the IRA from the national government budget.
Meanwhile, official development assistance (ODA) allocation for human development priorities was unstable over the past six years. In 1997, total ODA commitments for priority human development concerns reached a high of 18.4 percent. By 1998, however, this slumped to 6.2 percent (Table 2.13). These fluctuations are largely due to the nature of ODA for social services, which usually takes longer to gestate compared with physical infrastructure, especially since the devolution of most social services.
C. Social impact of the financial crisis
The growth of the Philippine economy significantly slowed down in 1997 and 1998 due to the combined effects of the Asian crisis and El Niņo drought. As a result, a large number of establishments and workers were affected by closures and retrenchments. The 155,198 workers adversely affected in 1998 were more than twice the number posted in 1997 (62,724 workers). Thus, the unemployment rate in 1998 slipped to 10.1 percent from 8.7 percent in 1997.
Declining incomes and price increases have inevitably taken their toll on social outcomes as well. Results of the Annual Poverty Indicators Survey (APIS) reveal a shift in family expenditure and consumption patterns in order to cope with the crisis: out of the 13.5 million families surveyed during the fourth quarter of 1998, 47.9 percent changed their eating pattern, 28.8 percent increased their working hours, and 6.9 percent, or almost one million families, took their children out of school. Moreover, the APIS results show that the lowest 40 percent of the income strata were hardest hit by the financial crisis (Table 2.14).
A study on the social impact of the financial crisis by Reyes, Manasan, Orbeta, and de Guzman (1999) also generated the following findings: (a) the proportion of persons experiencing income declines was much higher for upland communities and sustenance communities; (b) lower enrolment and higher drop out rates were manifested, especially in public secondary schools; (c) households have deprioritized health care in their household budget, resulting in a greater number of people getting sick and a decline in nutritional status among children; and (d) the proportion of families who rated themselves poor rose from 40 percent in 1997 to 43 percent in 1998, with the highest self-rated poverty evident among fishing and upland communities and among households in urban poor communities.
Finally, the crisis is expected to have influenced the government's social expenditure program in two ways: (a) through the inflationary pressures arising from the peso devaluation, which tended to lower the purchasing power from the social sector budgets; and (b) through budget cuts. It must be recognized, however, that the Asian crisis triggered a budget cut only in 1998 when a 25 percent forced savings scheme was implemented. Part of said mandatory savings for the social sector was lifted in the latter part of 1998.
An assessment of the 1997-99 national budget for education, health, shelter and social welfare and community development reveals a generally decreasing trend in real terms of the national resources allocated for the social sector. Only the education and manpower development sector will enjoy real increases in the budget. The budgets for health, social security, welfare and employment as well as housing and community development are expected to contract in real terms in 1998 and 1999. Moreover, the health and housing/community development budgets are expected to even decline in nominal terms.7 It must be noted, however, that the total budget of the national government experienced a decline in real terms of 7.3 percent in 1998, and 3.3 percent in 1999. Hence, the observed declines in the social sector are not isolated and are generally part of the overall streamlining of the government's expenditure program (see discussion in Chapter 7, Section I-G)
Further disaggregation of the subsectoral budget allocations reveals misallocation of resources. In the national health services level, the budget for tertiary services seems to have declined the least in real terms. Moreover, curative health care got the biggest share of the budget as well as the largest budget increase between 1997 and 1999.
Although basic education still maintained the biggest share of the education budget, it had the least percentage increase among the three levels of formal education. TVET enjoyed the highest percentage increase in the budget, although this is due mainly to the transfer of TVET schools and their budget from DECS to TESDA. Thus, it would seem that the budget for higher education was the least affected by the fiscal crunch.
It should be borne in mind, however, that the social sector expenditure program is based on the institutional budgets of the national agencies. The budget of agencies that are known to provide tertiary services have a basic services component, and vice versa. This is precisely the case for TVET. From 1997 to 1998, the budget for TVET increased by more than 50 percent mostly due to the increase in the transfer of the budget of 200 schools from DECS to TESDA. Moreover, a large share of the budget of these schools actually go to basic education, since 90 percent of their enrollment is secondary. This behooves the government to have a programming and monitoring system based on level (i.e., basic and tertiary), rather than agencies.
D. Challenges
Based on the foregoing assessment, the following major issues or challenges will have to be addressed in the next six years.
First, to preserve and build on present gains will mean strengthening policies that address the complexities of social development, as well as continued investments in all people, whether child or adult. Social development, to be sustainable in the long-run, should ensure that the next generation will have the same opportunity to live comfortable and productive lives. This can be done by installing all appropriate legislative, administrative and program measures to guarantee economic and social security.
Moreover, resources for human development, especially of the poor, must be kept at sufficient levels. The Asian financial crisis demonstrates that developing nations are increasingly being "expected to do more with less." This puts added pressure on the country to not only increase the proportion of domestic resources going to social development, but also to allocate them in such a way as to maximize their impact. A broader mix of development partners will also have to be encouraged, particularly from civil society and the private sector.
Second, the continuing inadequacy of and inequitable access to social development and development opportunities, particularly for the vulnerable groups such as disadvantaged women, children and youth, persons with disabilities, senior citizens, informal workers, indigenous peoples, dysfunctional families, victims of disasters and calamities and victims of armed conflict, have to be addressed. The government must continue to target and provide these groups with preferential access to services and opportunities. It must establish, institutionalize and support the needed mechanisms and structures for the increased participation and involvement of the basic sectors at all stages of policy and program interventions at the national and local levels. At the same time, social development activities will have to be rationalized in order to benefit the most number of people, a move which will necessitate maximizing complementarities among the various kinds of expenditures.
Third, the shortfalls and inequities in social expenditures and the fiscal crunch brought about by the financial crisis, among others, compel the government to rationalize its resource allocation away from less vital sectors to social services. For instance, the operations of some government-owned and-controlled corporations (GOCCs) will have to be scaled down over time. Losses arising from regressive subsidies can also be minimized by implementing full-cost pricing, an option which may be taken by state universities and colleges. The resulting savings from full-cost recovery can then be channeled to basic social services, to ensure adequate social safety nets for the poor.
Finally, the sector must be up to the task of keeping in step with the trends and dynamics of local and international developments. Thus, two other cross-sectoral challenges must be met: (a) the need to prepare the people, particularly the vulnerable groups, and society and culture at large, for the further liberalization and globalization of trade and commerce; and (b) the need to strengthen social cohesion through the formation of social capital.