GOVERNMENTS POVERTY REDUCTION STRATEGY

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GOVERNMENTS POVERTY REDUCTION STRATEGY THE
ROLE OF NAPC
Regional Training on Gender in Microfinance Cebu
Business Hotel3-6 December 2005 Ma.
Concepcion Hina-Antonio Director III, NAPC
Microfinance Unit
Originally prepared and presented by Jay de
Quiros of the NAPC Macropolicy Unit during the
Gender in Microfinance Training 12 November2005
Bayview Park Hotel, Manila
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OUTLINE

• Poverty Situationer
• Poverty Reduction Targets
• Poverty Reduction Strategy Kapit-Bisig Laban sa
  Kahirapan
• Role of the National Anti-Poverty Commission

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Poverty Situationer Poverty Concepts
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WHAT IS POVERTY?

• Republic Act No. 8425 Social Reform and Poverty
  Alleviation Act

The poor refers to individuals and families
whose incomes fall below the official poverty
threshold as defined by the government and/or
cannot afford to provide in a sustained manner
for their minimum basic needs for food, health,
education, housing, and other social amenities of
life.
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WHAT IS POVERTY?

• Dimensions of Poverty

POVERTY

• Non-Income
• Nutrition
• Health
• Water and Sanitation
• Shelter
• Education
• Livelihood and Employment
• Peace and Order

Income
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POVERTY STATISTICS

• Income
• Food and poverty threshold

Monthly Per Capita Food and Poverty Thresholds
(National), 2000 2003
Note Slide sourced from the National Statistical
Coordination Board
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POVERTY STATISTICS

• Income
• Subsistence and Poverty Incidence

National Subsistence and Poverty Incidence
(Population), 2000 2003
Note Slide sourced from the National Statistical
Coordination Board
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POVERTY STATISTICS

• Income
• Subsistence and Poverty Incidence

National Subsistence and Poverty Incidence
(Families), 2000 2003
Note Slide sourced from the National Statistical
Coordination Board
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POVERTY STATISTICS

• Income
• Number/ Magnitude of the Poor

National Magnitude of Subsistence Poor and Poor
Population, 2000 and 2003 (interim estimates)
Note Slide sourced from the National Statistical
Coordination Board
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POVERTY STATISTICS
Regional Poverty Incidence (Families), 2000 and
2003 (in percent)
Twelve (12) out of 17 regions succeeded in
reducing poverty incidence.
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POVERTY STATISTICS

• Non-Income Dimension

• 35 of every 1,000 babes born die after birth
  while 48 die before reaching the age of 5.

• More than 1/4 (27.6) of all Filipino children
  aged 0 to 5 years old are underweight.

• 19 do not have secure shelter and housing.

• Only 67 of elementary school children finish
  grade 6. Only 72 of those get to finish high
  school.

• 20 or 1/5 of Filipino households do not have
  safe water supply.

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INTERLINKAGE OF DIMENSIONS

• Two Schools of Thought
• Lack of access to non-income dimensions inhibits
  development of human capital and impedes
  productivity to gain sufficient incomes

POVERTY
NON-INCOME
INCOME
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INTERLINKAGE OF DIMENSIONS

• Two Schools of Thought
• Lack of access/ deprivation in either income or
  non-income dimensions is already considered being
  in a state of poverty

INCOME
POVERTY
NON-INCOME
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Poverty Reduction Targets
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POVERTY REDUCTION TARGETS

• Millennium Development Goals
• September 2000 United Nations Millennium
  Declaration
• 8 Development Goals with corresponding targets

Goal 1 Halve Extreme Poverty by 2015 (from
1990 figures)
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POVERTY REDUCTION TARGETS

• MTPDP 2004-2010 GMA Administration

• Create 10 million new jobs in six years
• Bring down the incidence of poverty from 34
  percent (2000) to 17 percent by 2010 (or at least
  20 percent)
• Aim for a sustainable growth of 7 percent (at
  least 6 percent), which shall enable the economy
  to generate 10 million jobs in 6 years
• Bring investments to 28 percent of GDP in two
  years (at least 25 percent by 2010) from the
  current rate of 19 percent of GDP
• Increase exports to 50 billion in two years
• Develop 2 million hectares of land for
  agri-business
• Develop and support 3 million entrepreneurs

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Kapit-Bisig Laban sa Kahirapan
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HOW TO REDUCE POVERTY

• Major Determinants of Poverty Reduction
• Economic Growth and Distribution of Wealth

Jobs
REDUCTION OF POVERTY
Distribution of Wealth
Economic Growth
Wealth
Resources for Services
To be effective in reducing poverty, must
influence both economic growth and distribution
of wealth
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HOW TO REDUCE POVERTY

• Influencing Economic Growth Distribution of
  Wealth

• Enabling Environment to spur investments and
  create wealth
• Peace and Order
• Infrastructure
• Fiscal and Monetary Status
• Production support
• Decentralization of development

• Direct
• Redistribution of assets
• Direct provision of employment

• Indirect
• Increase in human capital of poor thru
  education, health, water , sanitation, etc.

Distribution of Wealth
Economic Growth
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HOW TO REDUCE POVERTY

• Important to ensure that individuals and families
  that have risen above the poverty line will no
  longer be poor
• Social protection programs are put in place,
  namely 1) social safety nets, 2) social
  insurance, 3) labor market interventions, and 4)
  social welfare

VULNERABLE
Poverty Line
POOR
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KAPIT-BISIG LABAN SA KAHIRAPAN

• shall be the administrations overarching program
  for a focused, accelerated, convergent, and
  expanded, and strategic effort to reduce poverty
• Source MC 33

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KAPIT-BISIG LABAN SA KAHIRAPAN

• KALAHI is anchored on five core thrusts

Asset Reform
Employment and Livelihood
Human Development Services
Security and Social Protection
Participation in Governance
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KAPIT-BISIG LABAN SA KAHIRAPAN

• Asset Reform
• Redistribution of physical or financial assets to
  the poorest individuals
• Programs that improve access to land and capital,
  and that sustain the long-term ownership of these
  productive factors to the marginalized groups
• Human Development Services
• Programs that provide basic human services (i.e
  basic education, health and nutrition, shelter,
  water and sanitation) to strengthen the human
  capital base
• Livelihood and Employment
• Provision of public avenues for job creation and
  microfinance services

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KAPIT-BISIG LABAN SA KAHIRAPAN

• Security from Violence and Social Protection
• Programs for the poorest of the poor and the
  vulnerable sector outside of the asset reform and
  regular human development services
• Reduce vulnerability of the poor and marginalized
  sectors to the immediate effects of various
  economic shocks and strengthen their
  opportunities to participate in the mainstream
  economic and political processes
• Participation of the Basic Sectors in Governance
• Enhance the abilities and capacities of the poor
  and the marginalized sector, especially in policy
  and decision-making

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KAPIT-BISIG LABAN SA KAHIRAPAN
Focused - targets poorest and most vulnerable
barangays and sectors in communities
Accelerated - addresses immediate needs while
initiating processes towards resolution of more
long-term issues of the communities
Convergent - national government agencies
working together with other stakeholders
LGUs, legislators, NGOs and POs, private sector,
academe, and local communities
Expanded - not only human development services
but asset reform, livelihood and employment
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PROGRAMS/ PROJECTS
Social Services
Livelihood
Participation
R E S O U R C E
P O L I C Y
POVERTY

• Income Livelihood
• Health Nutrition
• Water Sanitation
• Shelter
• Education
• Peace Order
• Participation

Social Protection
Pro-poor infra
Asset Reform
INSTITUTIONAL ARRANGEMENTS
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Convergence of

• KALAHI Services

Participation in Governance
Instl Cap. Bldg.
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BGYS CABATUAN, CARBON, TABOC MUN OF DANAO, BOHOL
TOTAL 28.45M
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Role of NAPC
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• National Anti-Poverty Commission
• Created by Republic Act
• 8425, the Social Reform
• and Poverty Alleviation
• Act, that took effect on
• June 30, 1998

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NAPC KEY MANDATES AND FUNCTIONS

• 1) Incorporation of the Social Reform Agenda into
  the formulation of development plans at the
  national, regional, sub regional and local levels
• (2) Efficiency in the implementation of the
  anti-poverty programs by strengthening and/or
  streamlining present poverty alleviation
  processes and mechanisms, and reducing the
  duplication of functions and activities among
  various government agencies
• (3) Coordination and synchronization of social
  reform and poverty alleviation programs of
  national government agencies

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NAPC KEY MANDATES AND FUNCTIONS

• (4) Exercise of policy oversight responsibilities
  to ensure the attainment of social reform and
  poverty alleviation goals
• (5) Strengthening of local government units to
  more effectively operationalize the SRA in local
  development efforts
• (6) Institutionalization of basic sectoral and
  NGO participation in effective planning,
  decision-making, implementation, monitoring and
  evaluation of the SRA at all levels

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NAPC KEY MANDATES AND FUNCTIONS

• (7) Ensuring adequate, efficient and prompt
  delivery of basic services to the poor and
• (8) Enjoining government financial institutions
  to open credit and savings windows for the poor,
  and advocating the creation of such windows for
  the poor among private banking institutions.

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NAPC ORGANIZATIONAL STRUCTURE
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NAPC ORGANIZATIONAL STRUCTURE Government Sector
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NAPC ORGANIZATIONAL STRUCTURE Basic Sector
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Maraming Salamat Po!
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KEY TASKS OF THE NAPC
Development of the Macapagal-Arroyo
Administrations Poverty Reduction Strategy
(Kapit-Bisig Laban sa Kahirapan/ Linking Arms
Against Poverty)
1

• Five core strategies in the Poverty Reduction
  Strategy (PRS)
• Integration of the PRS in the previous and
  current Medium-Term Plan for 2004-2010)
• Priority Thrusts for 2005-2010
• Implementation of Plan of Action for Poverty
  Reduction and Enhanced Poverty Reduction Strategy
  (2006 to 2010)
• Protecting the Vulnerable and Disadvantaged

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KEY TASKS
2
Lead agency in the revival and coordination of
the convergence program approach under the KALAHI

• Priority Thrusts for 2005-2010
• Institutionalization, mainstreaming, and
  localization of the enhanced KALAHI and the
  Convergence Approach esp. at the regional and
  local government systems
• Strengthening Regional Kalahi Convergence Groups
  (RKCG) and developing provincial partners

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KEY TASKS

• Coordination of Microfinance programs and
  services for the poor
• Monitoring the realization of the Presidents
  commitment for microfinance provision of at least
  300,000 new borrowers per year
• Strengthening microfinance through Peoples
  Credit and Finance Corporation
• Assistance in development of models and best
  practices for microfinance
• Development of IRR for Peoples Development and
  Trust Fund (PDTF) under RA 8425
• Priority Thrusts for 2005-2010
• Expanding microfinance services,
  capability-building of institutions and
  beneficiaries, and bridging micro-enterprise and
  SMEs

3
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KEY TASKS
4

• Basic Sector Capability-Building
• and Coordination
• Consultations and agenda-setting of basic sectors
• Integration of basic sector agenda in policy
  assessments and program reviews
• Institutionalizing broad and inclusive basic
  sector representation in governance through NAPC
• Resolution of basic sector agenda through
  inter-agency and NAPC En Banc meetings
• Priority Thrusts for 2005-2010
• Building basic sectors capacities esp. in agenda
  advocacy and engagement with government at ALL
  levels

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KEY TASKS
5

• Development of Tools and Mechanisms in Support of
  Poverty Reduction
• Capability-building activities for LGUs and basic
  sectors
• Engagement with the Philippine Statistical System
  for the improvement of poverty monitoring and
  development of the Local Poverty Monitoring
  Indicators System
• Development of program monitoring system
  (Enhanced-Integrated Monitoring System for
  Anti-Poverty Programs and Projects or E-IMSAPP)
• Safeguarding funds for poverty reduction and
  resource mobilization among the private sector
• Priority Thrusts for 2005-2010
• Nation-wide implementation of Local Poverty
  Monitoring and Planning, including the Core Local
  Poverty Monitoring Indicators System
• Improvement, integration, dissemination of
  E-IMSAPP, poverty indicators databases, and other
  tools/mechanisms

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KEY TASKS
6

• Coordinate Interventions to Reach the Presidents
  10-Point Agenda on Water and Electricity
• NAPC Lead Convenor as Water and Power Czar
• Map out and finalize target areas and undertake
  strategic planning to provide sufficient water
  supply the 633 identified municipalities and 212
  areas in NCR
• Map out and finalize target areas and undertake
  strategic planning to energize the 3,595
  barangays
• Priority Thrusts for 2005-2010
• Improving access to water and sanitation
• Energizing the entire country

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KEY TASKS
7

• Convene the Cabinet Group on Poverty Alleviation
• Follow through and monitoring of NAPC Cabinet
  Group agreements and directives
• Coordinates preparatory activities prior to NAOC
  Cabinet Group meetings
• Priority Thrusts for 2005-2010
• Consensus-building and convergence of government,
  CSOs, private sector and business towards poverty
  reduction and rights-based reforms to ensure
  effective and sustainable use of natural and
  ecological resource base