MEDIUM TERM PHILIPPINE DEVELOPMENT PLAN 20042010

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MEDIUM TERM PHILIPPINE DEVELOPMENT PLAN
2004-2010

• National Economic and Development Authority
• January 24, 2005

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• THE BASIC TASKS

The basic task of our Medium-Term Philippine
Development Plan for 2004-2010 is to fight
poverty and build prosperity for the greatest
number of Filipino people. We must open up
economic opportunities, maintain socio-political
stability, and promote good stewardship --- all
to ensure a better quality of life for all our
citizens. We will focus on strategic measures and
activities that will spur economic growth and
create jobs. This can only be done with a common
purpose to put our economic house back in working
order. -President Gloria Macapagal-Arroyo
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Fight poverty and build prosperity for the
greatest number
Economic Growth Job Creation
Energy
Social Justice Basic Needs
Education Youth Opportunity
Anti-Corruption Good Governance
Trade Investment
Energy Independence
Responding to Basic Needs of the Poor
Education
Anti-Corruption
Agribusiness
Bureaucratic Reforms
Science Technology
Power Sector Reforms
National Harmony Automated Elections
Environment Natural Resources
Defense Against Threats to National Security
National Harmony The Peace Process
Housing Construction
Culture
Tourism
Responsive Foreign Policy
National Harmony Healing the Wounds of EDSA
Infrastructure
Fiscal Strength
Basic Needs Peace and Order
Constitutional Reforms
The Financial Sector
Rule of Law
Labor
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• THE BASIC TASKS
• (10-Point Agenda)

• Creation of ten million jobs (including support
  for 3 million entrepreneurs and development of 2
  million new agribusiness land)
• Education for all of school age (including
  putting a computer in every high school)
• Budget Balance
• Decentralization of development through network
  of transport and digital infrastructure
• Power and water supply throughout the country
• Decongestion of Metro Manila
• Development of Clark and Subic as the most
  competitive service and logistics center in
  Southeast Asian region
• Automated elections
• Peace to Mindanao and all insurgency areas
• Just closure of divisive issues from EDSA 1,2 and
  3

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THE MACROECONOMYMACROECONOMIC TARGETS
1/ Emerging forecast is 6.2 for 2004. The
inflation target for 2 005 has also been revised
upwards to 5-6 percent. 2/ Preliminary
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THE MACROECONOMYMACROECONOMIC TARGETS
MDGs are also likely to be achieved with the
successful implementation of the Plan.
1/ Average of January, April, July 2004
surveys 2/ Fighting target is to reduce poverty
incidence by half from 28.41 in 2000 (34 based
on population). Poverty incidence targets are
based on population growth forecast of 1.93 in
2005-2010and 2.11 in 2000-2005 from 2.34 in
2000-2005
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• PART 1
• ECONOMIC GROWTH AND JOB CREATION
• Chapter 1 Trade and Investment
• Chapter 2 Agribusiness
• Chapter 3 Environment and Natural Resources
• Chapter 4 Housing Construction
• Chapter 5 Tourism
• Chapter 6 Infrastructure
• Transport Infrastructure
• Digital Infrastructure
• Clark-Subic
• Chapter 7 Fiscal Strength
• Chapter 8 The Financial Sector
• Chapter 9 Labor

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TRADE AND INVESTMENT JOB GENERATION THRUSTS

• High Skill software, business processing
  outsourcing or BPO, contact centers, fashion
  garments, jewelry, medical services, automotive,
  electronics, health care
• Medium Skill agribusiness, mining, tourism,
  hotels and restaurants, entertainment
• Simple Skill construction, SMEs,
  micro-enterprise

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TRADE AND INVESTMENT GOALS, STRATEGIES AND ACTION
PLANS

• Make food plentiful at competitive prices
• Reduce cost of electricity
• Modernize infrastructure and logistics
• Mobilize and disseminate knowledge
• Reduce red tape

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TRADE AND INVESTMENT
Assumes co-opting by GSIS and SSS
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TRADE AND INVESTMENT GOALS, STRATEGIES AND ACTION
PLANS

• Promote trade and investments
• Conclude JPEPA, ASEAN PIP, ASEAN China
• Maximize exports and investment opportunities
  offered by trade agreements
• Pursue a market-driven strategy that will link
  our supply capacity closer to the high-impact
  markets, e.g. US, Japan, EU, etc.
• Simplify export procedures and facilitation

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TRADE AND INVESTMENT GOALS, STRATEGIES AND ACTION
PLANS

• Focus Incentives Package on priority areas
• IT and IT-enabled Services (Section VII)
• Automotive
• Electronics
• Mining (Chapter IV)
• Healthcare and wellness
• Tourism (Chapter VI)
• Shipbuilding
• Fashion Garments
• Jewelry
• Agribusiness

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AGRIBUSINESS GOALS, STRATEGIES AND ACTION PLANS

• Develop 2 million hectares of new lands for
  agribusiness this will generate 2 million jobs
• Multicropping cultivation of idle and marginal
  lands expansion of fishery in offshore and
  inland waters expansion of product mix
• 2 million lands to be identified by June 2005

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AGRIBUSINESS GOALS, STRATEGIES AND ACTION PLANS

• Make food plentiful at competitive prices and
  fight for self-sufficiency in rice
• Productivity gains through production, credit
  support, and ST application
• Logistics support to raise distribution
  efficiency and shorten supply chain to minimize
  marketing margins
• Governance and institutional reforms with DA,
  DAT, DENR, and regulatory agencies

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ENVIRONMENT AND NATURAL RESOURCES GOALS,
STRATEGIES AND ACTION PLANS

• Pursue sustainable and more productive
  utilization of natural resources
• 2. Promote responsible mining

• 3. Protection of vulnerable and ecologically
  fragile areas

• reforestation of 1 million hectares in 140
  priority watersheds

4. Create healthier environment for the
population

• provide drinking water to 200 waterless
  barangays in Metro Manila and 200 waterless
  municipalities outside Metro Manila

5. Mitigate the impact of natural disasters
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HOUSING MAJOR HOUSING STRATEGIES

• Expand private sector participation in socialized
  housing finance and construction
• Phase out interest rate subsidies
• Fast-track disposition of NPAs
• Develop joint venture schemes with private sector
  for HDMF, GSIS, SSS members
• Address the housing needs of formal and informal
  sectors
• Develop and piot-test public rental, 99-year
  lease, lease/purchase, and shared ownershuip
• Strengthen the institutional capacity of housing
  agencies
• Elevate HUDCC into a DHUD
• Operationalize the Social Housing Finance Corp to
  raise funds for housing constuction

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TOURISM
DESTINATION FOCUS

• MAJOR DESTINATIONS
• Cebu/Bohol/Camiguin
• Manila-Tagaytay
• Palawan Construct Coron Airport (to
  International Standards)
• MINOR DESTINATIONS
• Vigan/Laoag
• Clark-Subic (Infra Chapter)
• SPECIAL INTEREST DESTINATIONS
• Baguio/Banaue/Cordillera
• Boracay
• POTENTIAL MAJOR DESTINATIONS
• Davao

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INFRASTRUCTURE GOALS, STRATEGIES AND ACTION PLANS
I. TRANSPORT INFRASTRUCTURE

• Complete Nautical Highway System to reduce
  transport cost
• Decongest Metro Manila and create new centers of
  government in Luzon, Visayas, and Mindanao
• Provide access to major tourism destinations
• Affirmative action for peace and development in
  Mindanao and other highly impoverished areas

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INFRASTRUCTURE
I. TRANSPORT INFRASTRUCTURE
Completion of the Nautical Highway System
(Roll-on-roll-off (RORO) ports and the highways
connecting them) to reduce transport cost
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FINANCING INFRASTRUCTURE

• Review the BOT law to provide a framework for
  joint ventures
• Implement a users pay policy
• Consider property tax/special levy to capture
  part of windfall gains accruing to private owners
  from a public highway development

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INFRASTRUCTURE
II. DIGITAL INFRASTRUCTURE

• Reducing the Cost of Interconnectivity
• Permit new entrants to promote competition
• Come up with clear policy on internet telephony
• Regulatory/Legal Framework
• Ensure independence of NTC
• Work for the passage of Convergence Bill to spur
  development of cable technology
• Human Resource Development
• Improve teaching of English, Science, and Math
• Accelerate use of internet and e-learning in
  schools

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Fiscal Program, 2004-2010with Legislative and
Administrative Measures(Ratio to GDP)
FISCAL SECTOR
1/ Preliminary targets Public sector debt
figures still include intra-sectoral debt
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Fiscal Program, 2004-2010with Legislative and
Administrative Measures(In billion Pesos)
FISCAL SECTOR

• Not available

1/ Preliminary targets Public sector debt
figures still include intra-sectoral debt
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FISCAL STRENGTH LEGISLATIVE TAX MEASURES

• Generate at least P 80 billion from eight (8) new
  tax measures
• Indexation of excise tax on cigarettes and
  alcohol products
• Two-step increase in VAT rate
• Excise tax on petroleum
• Rationalization of Fiscal Incentives
• Franchise tax on telecommunications
• General Tax Amnesty
• Lateral Attrition System
• Gross Income Taxation

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FISCAL STRENGTH ADMINISTRATIVE REVENUE MEASURES

• Periodic adjustment of fees and charges at an
  average of 10 percent annually to ensure cost
  recovery
• Tariff rate adjustment increasing duty on oil
  from 3 to 5
• Innovative Sources of Wealth Creation
• Mechanisms to encourage voluntary compliance and
  strengthen tax enforcement at BIR
• Reduce smuggling and speed up custom procedure
  processing at BOC

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FISCAL STRENGTH LEGISLATIVE EXPENDITURE MEASURES

• Fiscal Responsibility Bill
• Omnibus Reengineering Bill
• Rationalization of Government Retirement and
  Pension Scheme
• Rationalization of Government Compensation Scheme
• Removal of Automatic Guarantee Provision in
  certain GOCCs

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FISCAL STRENGTH ADMINISTRATIVE EXPENDITURE
MEASURES

• Austerity Program
• Rationalization of scope and functions of
  government agencies
• Operationalization of the Medium Term Public
  Investment Program
• Strengthen the ICC process
• Improvement of management of GOCCs
• Full implementation of devolution provision of
  LGC
• Allocate and spend on right things, i.e., Plan
  priorities
• Transfer to the General Fund all balances of
  dormant accounts

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FINANCIAL SECTOR GOALS, STRATEGIES, AND ACTION
PLANS
TARGET Increase savings rate to 30 percent by
2010

• Manage inflation through inflation targeting and
  supply side measures
• Accelerate reduction of NPLs
• Prevent and minimize systemic risks by
  strengthening regulatory framework and creating
  an environment of transparency and accountability
  in line with international standards
• Improve liquidity by
• Protect investor and creditor rights
• Tap savings through new products (e.g., PERA
  Bill)
• Remove double taxation of insurance products
• Rationalize government pension and retirement
  schemes and designate pension fund regulator
• Increase SME access to financing

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LABOR AND EMPLOYMENT GOALS, STRATEGIES AND ACTION
PLANS

• Government shall promote full, decent and
  productive employment for every Filipino worker.

• Employment Generation
• Employment Preservation
• Enhance worker-employer relationship
• Quick action on labor cases and quick response
  teams to assist workers.

• Employment Enhancement
• Improve workers competency, productivity and
  work values, work conditions, remuneration,
  protection and welfare (here or abroad)
• Employment Facilitation
• Facilitate access of Filipino workers to
  employment opportunities in the local and
  overseas labor market

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PART TWO ENERGY Chapter 10 Energy
Independence Chapter 11 Power Sector Reforms
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ENERGY INDEPENDENCE GOALS, STRATEGIES AND ACTION
PLANS

• Energy Independence
• Increase Oil Gas Exploration
• Strengthen PNOC
• Renewable Energy Development
• Expand use of Nat Gas and accelerate development
  of alternative fuels such as coconut bio-diesel
  and ethanol
• Forge strong strategic alliances to secure the
  supply of oil

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ENERGY INDEPENDENCE GOALS, STRATEGIES AND ACTION
PLANS

• 2. Energy Efficiency and Conservation
• Display fuel economy ratings in car showrooms
• 10 percent reduction in consumption by government
  offices
• Energy labeling for appliances/equipment
• Set heat rate standards for power plants

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POWER SECTOR REFORMS GOALS, STRATEGIES AND ACTION
PLANS

• Address NPC Losses
• Privatization of Transco, NPC
• Debt absorption by NG of P 200 bn
• Tariff adjustments to reflect the true cost of
  power
• Strive to Reduce Electricity Rates
• Establish WESM for bulk electricity and open
  access for retail pruchase
• Strengthen electric cooperatives
• Negotiate with IPPs to reduce stranded costs
• Promote time of use electricity pricing
• Remove intragrid, integrid, and interclass cross
  subsidy by 2005

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POWER SECTOR REFORMS GOALS, STRATEGIES AND ACTION
PLANS

• Encourage Private Sector Participation
• WEM and retail competition with open access
• Privatization of NPC-SPUG areas
• Allow Qualified Third Parties, instead of
  distribution utilities to provide missionary
  electrification
• Allow investment management contracts for ECs
• Ensure Sufficient and Reliable Power and System
  Efficiency Improvement
• Prioritize Transco projects which address
  transmission line constraints
• Total Barangay Electrification by 2008

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PART THREE SOCIAL JUSTICE AND BASIC NEEDS
Chapter 12 Basic Needs Anti-Poverty
Program Chapter 13 National Harmony Automated
Elections Chapter 14 National Harmony The Peace
Process Chapter 15 National Harmony Healing The
Wounds of EDSA Chapter 16 Basic Need Peace and
Order Chapter 17 Basic Need Rule of Law
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RESPONSDING TO BASIC NEEDS GOALS, STRATEGIES AND
ACTION PLANS

• Livelihood
• Support 3 million entrepreneurs and triple loans
  for self-employed and microenterprises and hard
  to reach areas
• Asset reform agrarian, urban land, ancestral
  areas
• Complete land reform by 2008
• Essential services clean water, power,
  education, health care/insurance, and protection
  of the vulnerable
• Potable water for the entire country,
  electrification of all barangays, and closure of
  classroom gap by 2010
• Reduction of price of medicine by half from 2004
  levels
• 87 percent health insurance coverage by 2007
• Responsible parenthood counseling
• Empowerment of the poor
• BY 2008, KALAHI CIDSS to have assisted 10 million
  poor Filipinos

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NATIONAL HARMONY AUTOMATED ELECTIONS GOALS,
STRATEGIES AND ACTION PLANS

• Automate elections
• Strengthen the party system and consider state
  financing of political parties
• Intensify voter education in coordination with
  civil society groups

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NATIONAL HARMONY THE PEACE PROCESS GOALS,
STRATEGIES AND ACTION PLANS

• Peacemaking and Peacekeeping
• Continuation of peace talks and conclusion of
  peace agreements (MILF,CPP-NPA-NDF, RPA, RPMM)
• Complementary measures to minimize violence
  arising from armed conflicts
• Full implementation of existing final peace
  agreements
• Implementation of enhanced reintegration,
  rehabilitation and amnesty program

• 2. Peacebuiding and Conflict Prevention
• Rehabilitation and development of conflict areas
• Catch-up development program for ARMM
• Conduct of healing and reconciliation programs
  in conflict-affected areas

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NATIONAL HARMONY HEALING THE WOUNDS OF
EDSA GOALS, STRATEGIES AND ACTION PLANS

• Accelerate compensation to victims of human
  rights violations
• Consult people nationwide regarding their views
  on how to pursue national reconciliation and
  national unity
• Provide safe venues for victims and perpetrators
  of oppression for sharing of experiences and
  addressing needs

• Pursue reforms in military as provided in the
  Davide and Feliciano Commissions
• Design and implement creative approaches for
  handling conflicts involving leading figures
  deposed on Feb 1986 and Jan 2001
• Formulate legislation on national security

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BASIC NEEDS PEACE AND ORDER
Strategy 1 Effective credible law enforcement
jointly executed by a trilateral partnership
between the local executive, the police and the
community
Strategy 2 Pursue professionalization of the PNP

• Strategy 3 Continuous and intensified operations
  to neutralize terrorism and other organized crime
  groups
• 
  

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BASIC NEEDS RULE OF LAW GOALS, STRATEGIES AND
ACTION PLANS

• COURTS AND ADJUDICATION PILLAR
• LAW ENFORCEMENT (See Chapter Peace and Order)
• PROSECUTION PILLAR
• CORRECTIONS AND REHABILITATION PILLAR
• COMMUNITY PILLAR

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PART FOUR EDUCATION AND YOUTH OPPORTUNITY
Chapter 18 Education Chapter 19 Science and
Technology Chapter 20 Culture
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EDUCATION GOALS, STRATEGIES AND ACTION PLANS

• EARLY CHILDHOOD and BASIC EDUCATION
• Pre-school as a prerequisite to Grade 1
• Close the classroom gap
• Install distance learning in conflict areas
• Upgrade Math, Science, English learning and
  teaching
• Institutionalize values formation
• Optional high school bridge program
• Strengthen Madrasah education

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EDUCATION GOALS, STRATEGIES AND ACTION PLANS

• B. TECHINICAL VOCATIONAL EDUCATION AND TRAINING
  (TVET)
• Ladderized interface between TVI and higher
  education
• Scholarship and assistance programs
• Improving TVET curricula and skill matching
• Tapping private sector, LGUs. NGOs in TVET
  education

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EDUCATION GOALS, STRATEGIES AND ACTION PLANS

• HIGHER EDUCATION
• Provide scholarships/financial assistance to
  disadvantaged sectors
• Distance learning
• Introduce the pre-baccalaureate program as a
  remedial scheme
• Develop centers of excellence which will have
  links with industry
• Curriculum upgrading/faculty development
• Rationalize creation and funding of SUCs

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SCIENCE AND TECHNOLOGY

• Promote innovation through lower processing fees
  for inventions, patent protection, and more
  attractive royalty sharing
• Improve competitiveness of ST workers by
  setting and implementing accreditation and
  certification system and the Balik Scientist
  Program
• Accelerate knowledge creation and transfer though
  community e-centers and extension/training
• Promote technology-based entrepreneurship

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CULTURE AND DEVELOPMENT GOALS, STRATEGIES AND
ACTION PLANS

• Mainstreaming Culture and Development in plans,
  policies, programs and projects
• Institutionalize culture in education and in good
  governance
• Continue implementation of programs for the
  promotion of culture and artistic development
• Promote sustainable heritage conservation
  approach e
• Create special cultural programs in line with
  national peace and unification initiatives
• Encourage the generation of jobs or livelihood
  from cultural industries
• Expand cultural exchanges and agreements with
  other countries

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PART FIVE ANTI-CORRUPTION AND GOOD GOVERNANCE
Chapter 21 Anti-Corruption Chapter 22
Bureaucratic Reforms Chapter 23 Defense
Reforms Chapter 24 Responsive Foreign
Policy Chapter 25 Constitutional Reform
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ANTI-CORRUPTION GOALS, STRATEGIES AND ACTION PLANS

• PUNITIVE ANTI-CORRUPTION
• Targeted Lifestyle checks
• Make BIR and BOC as showcases
• Strengthen investigative capacity of Ombudsman
• Pass law to make Ombudsman like HK-ICAC

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ANTI-CORRUPTION GOALS, STRATEGIES AND ACTION PLANS

• PREVENTIVE ANTI-CORRUPTION
• Strengthen procurement reforms
• Strengthen National Government Accounting System
  (NGAS)
• Simplify and speed up frontline services
• Identify and Address Corruption Vulnerabilities
• Open up government projects to scrutiny by all
  sectors
• Enact Whistle-blower Law

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ANTI-CORRUPTION GOALS, STRATEGIES AND ACTION PLANS

• PROMOTE ZERO TOLERNACE FOR CORRUPTION
• Conduct Values Seminars in government and school
  (Council on Values Formation)
• Mobilization of the formal and non-formal
  educational system, the media and civic
  organization to deliver the message of societal
  reforms
• Revise the basic education curriculum to
  accommodate values formation

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BUREAUCRATIC REFORM GOALS, STRATEGIES AND ACTION
PLANS

• Government reengineering and salary upgrading for
  those who will remain
• Promote professionalism, meritocracy, and
  integrity
• Use ICT as a toll to improve access to and
  delivery of government service
• Rationalization of government agencies (e.g, ATO,
  PPA, MMDA, DOTC, NTC, NIA, NWRB, LLDA, ERC, TEZA,
  CDA, HUDCC, SHFC, LWUA)

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DEFENSE AGAINST THREATS TO NATIONAL SECURITY
REFORMS

• Strategy 1 Implement the Philippine Defense
  Reform (PDR) program through
• Strategy 2 Upgrade the capability of the AFP
  over a 6-year period
• Strategy 3 Ensure observance of the ceasefire
• Strategy 4 Enhancing the ability to fight
  terrorism

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RESPONSIVE FOREIGN POLICY
STRATEGY Protecting the interest of the
Philippines by responding to the eight realities
in the global and regional environment

• The United States, China and Japan are the
  determining influence of East Asia.
• Philippine foreign policy decisions have to be
  made in the context of ASEAN.
• The international Islamic community will become
  more important to the Philippines
• The role of multilateral and inter-regional
  organizations in promoting common interests.
• The defense of the nations sovereignty and the
  protection of its rights over maritime territory.
• The countrys economic growth will continue to
  require direct foreign investment and trade
  promotion.
• The Philippines can benefit most quickly from
  international tourism.
• Overseas Filipinos will continue to play a
  critical role in the countrys economic and
  social stability

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CONSTITUTIONAL REFORM GOALS, STRATEGIES AND
ACTION PLANS

• Shift to unicameral parliamentary form of
  government
• Change from centralized unitary system to
  decentralized federal system
• Structural and functional reforms affecting the
  electoral and political party systems
• Defining political dynasty and make prohibition
  self-executory
• Reforms on national economy and patrimony to
  bring in investments

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Thank You.