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Sustained Economic Growth: Economic Development: Good Governance Is Good Economics

The document discusses the economic and political achievements of the administration. It outlines strong and broad-based economic growth, low inflation, increased employment, an improved fiscal position, upgraded credit ratings, and a positive investment climate. It also details efforts to increase revenues through tax enforcement, curb smuggling, streamline budgets and government processes, and maximize technology.

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0% found this document useful (0 votes)
85 views18 pages

Sustained Economic Growth: Economic Development: Good Governance Is Good Economics

The document discusses the economic and political achievements of the administration. It outlines strong and broad-based economic growth, low inflation, increased employment, an improved fiscal position, upgraded credit ratings, and a positive investment climate. It also details efforts to increase revenues through tax enforcement, curb smuggling, streamline budgets and government processes, and maximize technology.

Uploaded by

Jaycil Gaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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3. What are their achievements in terms of?

3.1 Economic Development


ECONOMIC DEVELOPMENT: GOOD GOVERNANCE IS GOOD
ECONOMICS

Sustained Economic Growth

Strong and Broad-Based Growth. The economy continued on its upward


momentum that started in the 4th quarter of 2011, growing by 6.4 percent in the first
quarter of 2012, way above the 4.8 percent market forecast.

The first quarter economic growth was broad-based. Services contributed more than
half (56.2 percent) of total output (GDP) followed by industry (32.2 percent) and
agriculture, hunting, forestry, and fishing (11.6 percent).

The government continues to focus on improving macroeconomic fundamentals,


infrastructure, and social services to achieve the 5.0 to 6.0 percent growth
assumption for 2012 and the 6.0 to 7.0 percent growth assumption for 2013 in an
uncertain global environment.

Low and Stable Inflation . Inflation in the first six months of 2012 averaged at 3.0
percent, the low end of the 3.0 to 5.0 percent inflation target range for the year. The
relatively slower annual inflation of food commodities since January 2012
contributed to the low inflation regime.
For the poorest 30 percent of the population who spend 60.2 percent of their budget
on food, a low inflation regime improves their purchasing power, which leads to
consumption of higher quality food and/or increased spending in other necessities
such as education and health care.

Increased Employment Opportunities. First quarter economic growth was


accompanied by an easing of unemployment and increase in employment.

The average unemployment rate under this Administration has gone down to 7.0

percent as against 7.3 percent to 8.0 percent between 2006 and 2009. This was
attributed to the creation of 3.1 million employment from July 2010 to April 2012 or
an annual average employment of 1.029 million.

Strong Fiscal Position. Zero-based budgeting, the Administrations aggressive


campaign to plug revenue leakages, and sound liability management have resulted
in a strong fiscal position.
o

Two percent deficit-to-GDP ratio in 2011, lower than the 3.5 percent ratio in
2010.

12.6 percent increase in revenues in 2011, the highest in a decade. 6 The


revenue effort increased from 13.4 percent in 2010 to 14.0 percent in 2011.
Revenues further increased by 11.0 percent from P581.50 billion in the first
five months of 2011 to P645.65 billion during the same period in 2012.

Upgraded Credit Ratings. The continued progress in fiscal and debt consolidation,
enhanced ability to manage the countrys debt, strengthening external position, and
broadly favorable economic prospects helped notch eight positive sovereign credit
rating actions from four major credit rating agencies under the Aquino
Administration.

Positive Investment and Business Climate. Good governance and the policy to
promote an investment environment conducive to business growth and
competitiveness.
o 37.6 percent increase in total approved investments in 2011 compared to
2010.

Increased investor interest- 24.4 percent (P504.45 billion) of all registered investments
in Philippine Economic Zone Authority (PEZA) from 1995 to June 2012

Forty-four (44) record highs in the Philippine Stock Exchange index (PSEi) since 30
June 2010, one of the top performing indices in Asia and in the world in 2011. The latest
record closing high was registered on 05 July 2012 at 5,369.98 points.

Twenty four (24) percent growth in IT-BPO revenues from US$8.9 billion in 2010 to
US$11 billion in 2011, and 22 percent growth in direct employment in the sector from
525,000 in 2010 to 638,000 in 2011. Indirect employment from the IT-BPO also
increased by 23 percent from 1.3 million in 2010 to 1.6 million in

8.4 percent growth in merchandise exports from US$20.7 billion in the first five months
of 2011 to US$22.4 billion during the same period in 2012.

Strong Gross International Reserves (US$76.1 billion as of end-June 2012) have


propelled the country into a net creditor position.

5.78 percent increase in palay production from 15,772,319 metric tons (MT) in 2010 to
16,684,062 MT in 2011 and a 3.45 percent increase from 7,577,209 MT in the first
semester of 2011 to 7,838,455 MT this 2012.

Government efforts to facilitate and promote coco water and coco coir exports resulted
in the following:

o 823 percent increase in the volume of coco water exports from 1.81 million liters
worth US$1.84 million in 2010 to 16.75 million liters worth US$15.11 million in
2011.

o 39.15 percent increase in the quantity of coco coir exports from 4.43 million
kilograms (net) worth US$974,586 in 2010 to 6.16 million kilograms (net) worth
US$2.01 million in 2011.

o For 2013, government aims to invest a total of P1.75 billion to further develop
the coconut industry.

Strengthened Tourism Sector. The government has set a target of 10 million


international tourists and 35.5 million domestic travelers by 2016, which would generate
P1.9 trillion in tourism receipts and 6.8 million jobs. Towards this goal, the government

Launched the tourism brand campaign Its more fun in the Philippines,
which highlights the Philippines attractiveness as a tourism, trade, and
investment destination.

Improved road access to tourist destinations.

Pursued Pocket Open Skies Policy (EO No. 29, s. of 2011) to increase air connectivity of
local tourist destinations, which has so far generated

Improved Philippine energy self-sufficiency in 2011, achieving the 60 percent target for
the year, with a balanced energy mix that is less exposed to volatile market prices.

3.2 Political Development


o

Run after Tax Evaders (RATE). One hundred fifteen (115) tax evasion
cases have been filed by Bureau of Internal Revenue (BIR) before the
Department of Justice (DOJ), with an estimated total tax liability of
P40.193 billion, compared to the 127 cases filed in 5 years during the
previous Administration (from 2005 to March 2010).

Run after the Smugglers (RATS). Eighty-six (86) cases have been filed
under this Administration against suspected smugglers, including officers
and brokers of oil industry players. Estimated dutiable value amounts to
around P52 billion, while duties and taxes amount to around P25.9
billion.

Revenue Integrity Protection Service (RIPS). Under this Administration,


42 cases have been filed with the OMB and 2 cases filed with the Civil
Service Commission (CSC) against suspected corrupt collection officials
and employees, already more than half the 74 cases filed in more than 6
years (May 2003 to December 2009) under the previous Administration

Reformed budgetary processes to streamline and speed up processes, reduce


wastage, and channel funds where needed through the following:

Zero-Based Budgeting (ZBB), which calls for the evaluation of major


government programs and projects to determine areas for improvement, as well as to
serve as basis for resource allocation. ZBB studies conducted in FY 2011 resulted in
improvements (e.g., fund allocation, utilization, and monitoring) in the implementation
of programs, such as the Health Facilities Enhancement Program and Cheaper
Medicines Program of the Department of Health (DOH); Teacher Deployment and
Classroom Construction of the Department of Education (DepEd); Agricultural
Competitiveness Enhancement Fund; and Budget Subsidies for State Universities and
Colleges (SUCs), and Technical Education and Skills Development Authority (TESDA)
scholarships.

No Lump-Sum Fund Policy, which breaks down more than P150 billion in
lump sum funds in the 2012 National Budget, beginning the shift to a regime where the
enacted General Appropriations Act (GAA) can be considered as the budget release
document by 2014.

early releases of funds and the consequent early implementation of priority


programs and projects. As of 31

May 2012, the Department of Budget and Management (DBM) has released P1.338
trillion to government agencies, 73.7 percent of the P1.816 trillion 2012 budget.
Reforms in public works processes promoting right projects, right cost, right quality, and
right-on-time project implementation, have resulted in the elimination of leakages and the
curbing of corruption. Improved procurement procedures, as well as competitive and
transparent bidding, have resulted in P10.6 billion savings1 as of end-June 2012. Also, 2,374
or 94 percent of 2,515 infrastructure projects were bid out in 2012; 97 percent (2,313
projects) was given notices to proceed. Forty three

(43) percent has been completed.

Streamlined government transactions by implementing the following:

Anti-Red Tape. As of 30 June 2012, 4,112 (75.63 percent) of 5,437 national


government

agencies/GOCCs/SUCs/Local

Government

Units

(LGUs)/local

hospitals/local schools monitored by the CSC have set up their respective


Citizens Charters to guide the public on how to avail of their frontline services.
This is in compliance with the Anti-Red Tape Act of 2007 (Republic Act [RA] 9485).
Business Permits and Licensing System (BPLS). The program simplified business
permits and licenses at the local government level, making 421 of 480 (87.7 percent)
target LGUs business-friendly, while curbing opportunities for corruption. The
streamlined processes have increased LGU revenues from 12 to 40 percent.
Enhanced Business Name Registration System. Launched in October 2010, the

project reduced information fields of paper application forms from 36 to 17, and the
electronic application form from 9 pages to 1 page. The approval time for
applications has also been reduced from 4 to 8 hours to less than 15 minutes. As a
result, the number of business names registered increased from 278,802 in 2010 to
315,986 in 2011, the highest since 2004.

Maximized information technology to improve government services

Biometric Criminal Records Clearance System. In July 2011, the National Bureau

of Investigation (NBI) started the implementation of its biometrics-based clearance


processing and online application system following global standards.
For the period July 2011 to April 2012, the NBI was able to issue 3,984,193 clearances
to its clients and generated a total revenue of P392,445,872.

Land Titling Computerization Project. Under the project, the Land Registration

Authority (LRA) has digitized 22.9 million or 99.6 percent of 23 million land titles,

reducing processing time of public transactions, preventing issuance of dubious,


double, and overlapping titles and proliferation of fake land titles, and increasing
LRAs income to P4.57 billion in 2011, exceeding its target by 62 percent.
Will adopt a harmonized Results-Based Performance Management System to integrate and
simplify the performance monitoring system in government and to serve as a basis for a
more rigorous performance-based incentive system that can motivate higher performance
and greater accountability in the public sector. Starting
2012, government bureaus and personnel will be ranked and rewarded according to their
contribution to the accomplishment of the departments' outputs and outcomes.

Promoted a Tradition of Transparency


Mandatory budget disclosure was embedded, starting with the 2011 National Budget,
mandating agencies to post key information on their budgets, finance, and performance
indicators on their websites.
Full Disclosure Policy for LGUs required the posting of information on their fund utilization
and implementation of projects in local bulletin boards, newspapers and/or websites since
August 2010. In 2011, almost all LGUs (99 percent) or 1,701 LGUs (79 provinces, 137
cities, and 1,485 municipalities) registered full compliance, higher than the 80 percent
compliance in 2010.
Publication of the Peoples Budget starting in 2011 to help citizens understand the budget.
The Budget ng Bayan website (http://www.budgetngbayan.com), launched on 08 May 2012,
serves as the online portal of the Peoples Budget.
Mandatory electronic posting by all agencies in the Philippine Government
Electronic Procurement System (PhilGEPS) of their bid opportunities, notices, awards, and
contracts has resulted in improved transparency in government procurement, enhanced
competition and realization of value for money procurement, and reduced procurement
costs, including newspaper advertisements.
Real-time disclosure of release of lump-sum funds, such as the Priority
Development Assistance Fund (PDAF, commonly known as pork barrel), through the

Electronic Transparency and Accountability Initiative for Lump Sum Funds


System (e-TAILS) on the DBM website. The Internal Revenue Allotments (IRA) of
LGUs were posted in March 2012 while the School Building Fund shall be made available
by August 2012.
Enhanced Citizens Participation in Governance

Integrity Initiative between the government and the business sector was aggressively
pursued through the signing of an Integrity Pledge where private sector companies
and government agencies commit to uphold ethical practices and support a national
campaign against corruption.

Consultative budget preparation process with civil society organizations (CSOs) was
piloted in 2011 to craft the 2012 Budget, and subsequently, the 2013 Budget.

Monitoring of some public works projects and the Pantawid Pamilyang Pilipino
Program is being done in partnership with a broad coalition of stakeholders. As of
June 2012, 49 CSOs were accredited as DPWH Partners, while 364 CSOs have
signed Memoranda of Agreement (MOA) with Department of Social Welfare and
Development (DSWD) on the monitoring of Pantawid Pamilya as of June 2012.
Special Governance Focus: ARMM

Postponed ARMM elections and appointed officers-in-charge. On 30 June 2011,


President Aquino signed into law RA 10153, otherwise known as The
Synchronization of the Elections in the ARMM with the National and Local
Elections.These measures were taken to pave the way for the introduction of much
needed reforms in this long neglected region.

Adopted fiscal controls. Prudent fiscal controls and proper use of maintenance and
other operating expenses (MOOE) by DPWH-ARMM resulted in 23 percent savings
amounting to P59.2 million as of June 2012.

Formulated the ARMM Roadmap. The Roadmap is aimed at institutionalizing good


governance practices to ensure sustained peace and development.

Governance Reforms and Local and International Recognitions

Open Government Partnership (OGP). The Philippines, together with Brazil,


Indonesia, Mexico, Norway, South Africa, UK, and US, was selected as one of the
founding members of the OGP in recognition of the Administrations commitment to
greater transparency, accountability, and citizen participation in government.

Corruption Perceptions Index (CPI) 2011. The countrys CPI continues to improve,
moving up in 2011 to 129th out of 183 countries and territories, with a score of 2.6,
compared to its 2010 CPI rank of 134, with a score of 2.4.

World Economic Forum (WEF). The Philippines ranked 72 out of 132 countries in
the WEFs 2012 Global Enabling Trade Report, a significant improvement from
92 out of 125 in 2010. This was attributed to the countrys improved tariff policies
and border administration relative to other economies

Global Competitiveness Report. The improvement in the quality of public


institutions elevated the countrys rank from 125 th in 2010-2011 to 117th in 20112012. This contributed in raising the countrys competitiveness standing by 10 ranks
from 85th to 75th.

2012 Economic Freedom Index. The Philippines moved up from being the 115th
freest economy in 2011 to the 107th in 2012, ahead of Indonesia, Vietnam,
Bangladesh, China, and India. The country scored higher in 4 out of 10 indicators,
most notably in business freedom.

Grant Thornton International Business Report, 2 nd Quarter 2012. The study


identified the Philippines as having the 2 nd most optimistic community of business
leaders, scoring 90 percent, which is the same as Chile, only six notches behind
Peru, and ahead of Georgia, Canada, India, South Africa, Brazil, Turkey, and UAE.

The Philippines was at the 4th spot in the first quarter behind Peru, Brazil, and UAE.

2012 Environmental Performance Index (EPI). The aggressive protection and


conservation of the countrys natural resources have earned the country a spot in the
strong performer category in the 2012 EPI,4 ranking from 50th in 2010 to 42nd in
2012 out of 132 countries, outranking Australia (48), US (49), and Singapore (52).

The Philippines received perfect scores in the indicators for outdoor air pollution,
change in forest cover, and growing stocks in forests.

2012 SONA

3.3 Infrastructure
Construction and rehabilitation of 2,142.47 km of farm-to-market roads (FMRs)

as of 30 June 2012 out of the targeted 2,134.26 km, which were funded under the CY
2010 Program. The construction and rehabilitation of all the projects under the CY 2011
(661.79 km) and 699.29 km or about 70 percent out of the targeted 1,000 km of FMRs
for CY 2012 are ongoing.

Building and rehabilitation of irrigation systems


Upgraded the quality and safety of national roads and bridges to provide

connectivity to all Filipinos for their economic and social activities.

o The government targets to completely pave by 2016 the 31,242 km national


road network

Pursued PPP to support the development of vital infrastructure and harness private sector
resources in support of infrastructure development.

3.4Health and Population


Extended P500 monthly pension to senior citizens to augment their daily
subsistence and medical needs pursuant to RA 9994, or the Expanded Senior

2012 SONA
Citizens Act of 2010. Beneficiaries are those identified under the National
Household Targeting System for Poverty Reduction (NHTS-PR).
Implemented the Supplementary Feeding Program (SFP) for children enrolled
in government day care centers.

335,078 individuals have already benefitted from NCIs interface with


DSWDs Pantawid Pamilya, wherein beneficiaries either plant or take care
trees as an added condition to their cash grants;

As of May 2012, PhilHealth has covered 100 percent of the 5.2 million NHTSPR-identified poor households.

The Z Benefit Package. Launched on 02 July 2012 and implemented in 22 government


hospitals nationwide, it comprehensively covers catastrophic diseases to help defray the
high cost of treatment that usually causes severe financial burden to patients and their
families.

The No Balance Billing (NBB) Policy was adopted in September 2011 for beneficiaries
belonging to the Sponsored Program, which is composed of the NHTS-PR and the
LGU-identified indigents. The policy prohibits government health facilities from
charging any fee exceeding the 23 case rates package. The NBB policy was later applied
to the Z Benefit Package

2012 SONA
Introduced the Rotavirus Vaccine in the routine immunization program of the government
a first in Southeast Asia. The vaccine is the best protection against severe diarrhea
among children, and is expected to significantly reduce the incidence of child mortality.
Enhanced workers protection through stricter implementation of labor laws
o

Allocated an additional P139.76 million for the hiring of additional labor


inspectors to bring their number from 224 to 564, to meet the ideal number of one
labor inspector for every 120 establishments, an improvement from the previous
1:300 ratio.

In November 2011, DOLE issued Department Order No. 18-A (s. 2011) to
address the inimical practice of certain employers in repeatedly hiring workers on
a 5-6 month employment scheme, thereby undermining their right to security of
tenure. Since its issuance, some 1,666 contractors or subcontractors were
compelled to correct labor standards violations resulting in restitutions amounting
to P2,381,539.08 and benefitting 1,532 workers.

Provided alternative job opportunities to TESDA graduates through the


TESDA Specialista Technopreneurship Program, launched in November 2011,
through which some 5,240 TESDA Specialistas are assured of an average
daily earning of P562 each, which is higher than the average daily basic pay
of P317 a day.

Strengthened efforts to address jobs-skills mismatch and ensured ready supply of skills
through the four major convergent programs of DOLE, TESDA, CHED and DepEd, such
as the Education and Training Curriculum Review; Philippine Qualifications Framework
(PQF); career advocacy; and, timely labor market information (LMI).

2012 SONA
Ensured timely Labor Market Information in the PHIL-JobNet. For 2011, there were
about 844,687 vacancies posted in the PHIL-JobNet website, with 287,665 job
applicants.
Aggressively implemented the Technical and Vocational Education and Training (TVET)
Programs, reaching 2.74 million graduates under the Aquino Administration, with an
average per capita cost of P2,429 per graduate

3.5 Education

Pursued PPP to support the development of vital infrastructure and harness private sector
resources in support of infrastructure development.

The President also released P4.28 billion26 under the Disbursement Acceleration
Plan for the implementation of the Roadmap on Public Higher Education Reform.
Adopted the K to 12 Program in response to the need to improve the competitiveness of
the countrys graduates as the ten-year basic education cycle is seen as inadequate for
work and higher education.
Reduced backlogs in classrooms, seats and textbooks
Increased funding for the Government Assistance to Student and Teachers in Private
Education (GASTPE), to extend financial assistance to deserving elementary school
graduates who wish to pursue their secondary education in private schools.

3.5

Peace and Stability and


Prioritized AFP Modernization. Since July 2010, the government has already
allocated a total of P28.4 billion and released P17.3 billion for the program,

2012 SONA
compared to the P33.6 billion released during the three previous
administrations (1995-2010).
o

The government secured the commitment of the US to support the


AFPs Defense Capability Upgrade and Sustainment of Equipment
Program, increasing its foreign military financing to US$30 million for
2012, a 50 percent increase over its original pledge for the year.

Pursued counter-insurgency efforts. The AFP, through its Internal Peace and
Security Plan (IPSP) Bayanihan, has reduced the strength of insurgency
groups, from 10,889 in 2010, to 10,540 in 2011.
Peace Negotiations. The Government of the Philippines (GPH) continues to
negotiate with various rebel groups to attain a just and lasting peace:
o

GPH Moro Islamic Liberation Front (MILF)

Ten formal exploratory talks were conducted in Kuala Lumpur,


Malaysia, since the start of this Administration.

On 24 April 2012, the parties crafted the 10 Decision Points


on Principles document, which will guide the discussion on
the substantive agenda of the negotiations.

On 18 July 2012, the 29th round of Exploratory Talks between


the GPH and MILF was concluded. Both parties expressed
confidence in wrapping up discussions on mechanisms towards
the realization of a new political entity

GPH Cordillera Bodong Administration-Cordillera Peoples

2012 SONA

Liberation Army (GPH-CBA-CPLA) Closure Program

EO No. 49, s. 2011, was issued mandating the implementation


of the

Closure MOA which would, for the first time since the peace process began in
1987, lead to the actual and final disposition of arms and forces of an armed group
and their transformation into a socio-economic entity.

From July 2011 to the present, the government has signed a


MOA with six provincial local government units and 12
municipal local governments (as conduits) of Cordillera
Administrative Region (CAR) for the implementation of

104 community development and livelihood projects worth P224 million.

Implementation of 35 projects is ongoing while the rest are in

the pipeline.
Ensuring Peaceful and Safe Communities. The government is enhancing the capability of
our police force and promoting their welfare to ensure that they are able to respond to the
needs of the communities that they serve and protect.

Increased Police Personnel Strength. From 2010-2011, a total of 13,000 Police

Officers 1 (PO1) were appointed, increasing the PNPs personnel strength to 143,104
from 132,493 in 2009 Improved Crime Situation. Due to the efforts to strengthen the police
force and institutionalize standard investigation procedures, crime incidence has declined.
For 2011, the PNP recorded a total of 246,958 crime incidents.

3.7 Environment

2012 SONA
Implemented the National Greening Program (NGP), the biggest reforestation program in
Philippine history, which aims to plant 1.5 billion trees in 1.5 million hectares from 20112016.
Imposed the first ever Nationwide Log Ban in Natural and Residual Forests in 2011.
Confiscated a total of 14.2 million board feet of illegally-cut and transported forest
products, valued at P354 million
o

Filed more than 500 cases in court against suspected violators, resulting in the
conviction of 72 persons as of June 2012.

Ensuring Environmental Protection and Responsible Mining. The President issued EO


No. 79 on 06 July 2012. A product of broad-based stakeholder consultations, the EO
harmonizes mining policies and regulations in the country and makes players in the
mining industry more transparent and accountable.

Safeguarded water resources by cleaning-up waterways.

Sustained clean-up and declogging of esteros, creeks, and water passages:

Adopt-an-Estero Program. 314 corporations have adopted 193 water


bodies in urban areas nationwide for water cleaning and rehabilitation. The
DENR targets to collaborate with 400 corporations within this year to
sustain clean-up activities.

Improved drainage and sewerage management to reduce flooding in major streets of


Metro Manila.

2012 SONA
Enhanced geologic and meteorological hazards mapping to better prepare for natural
calamities
o More detailed and enhanced geohazard mapping with 1:10,000 scale, which focus
on landslide and flooding, was started in 2011.
o

Implemented the Hazards Mapping and Assessment for Effective CommunityBased Disaster Risk Management or READY Project.

Improved weather forecasting and early warning systems to mitigate the effects of
calamities.
o

Implemented Project NOAH (Nationwide Operational Assessment of Hazards).

Flood Information Network (FloodNET) Project. The project aims to come up with
computer models for the critical RBs, automate the process of data gathering, modeling
and information output, and release flood warnings and forecasts. (Target completion:
end-December 2013)
Landslide Sensors Development Project. This project is a low-cost, locally-developed,
sensor-based early monitoring and warning system for landslides, slope failures, and
debris flow.

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