Presented by: OIC-Director Cleofe S. Pastrana National Economic and Development Authority

1. Poverty Alleviation in the UN Millennium Development Goals (MDGs): Problems and Initiatives in the Philippines Presented by: OIC-Director Cleofe S. Pastrana National Economic and Development Authority 13 October 2005, Hotel Dominique, Tagaytay City

2. REPORT OUTLINE • Background on the MDGs • Highlights of the Second Philippines Progress Report on the MDGs • A. Poverty Situation • B. Meeting Goal 1: Eradicate Extreme Poverty and Hunger • C. Environmental Situation/Challenges and Priorities for Action • III. Crosscutting Challenges and Priorities for Action • A. Hindering Factors • B. Facilitating Factors • C. Parallel Initiatives • D. Implications on the Philippine Economy

3. Millennium Declaration • In September 2000, 189 member states of the United Nations adopted the Millennium Declaration • The Millennium Declaration confirmed the commitment of member states of the United Nations to peace and security, respect for human rights, good governance and human development • The Millennium Declaration also committed the member states of the United Nations to achieve quantifiable development goals and targets (the MDGs) until 2015 (15 years) that will at least ensure that development initiatives are effectively eradicating poverty and promoting sustainable human development

4. The MDGs are Owned by All • MDGs are not just the national governments’ commitment to UN or the world; most important: they are their commitments to their own people • The MDGs are our own development challenges for some decades, now gaining a new opportunity from global and national momentum of solidarity • The Goals are global in their scope, but targets and indicators can be tailor-made to shorter time scales, higher targets & local circumstances. • The MDGs are national commitments, but their achievements (or failures) are at the local level • MDGs ownership by local governments, by the business/private sector such as NGOs/Pos/civil society plays a vital role and can make a huge difference in the national and global achievements of MDGs

5. 1990 to 2000 2001 to 2005

6. MDGs: Rate of Progress

7. MDGs: Rate of Progress

8. MDGs: Rate of Progress

9. Enabling Environment for the MDGs DILG MC 2004-152 “Guide to LGUs in the Localization of the MDGs” SDC Res. No. 1 2003 “Expanding functions and composition of MC-IHDC” MTPDP 2004-2010 hews closely to the MDGs MDG Investment identification per goal and target in MTPIP 2005-2010 Strong commitment of the business sector and civil society Legislative support of Congress Strong support of donor community for the MDGs

10. Poverty Situation

17. FIGURE 4: Percentage of Households with Less than 100% Energy Adequacy

18. FIGURE 5: Percentage of Underweight Children 0-5 Year Olds

19. Meeting Goal 1: Eradicate Extreme Poverty and Hunger

20. Priority Policies and Programs • Kapit-Bisig Laban sa Kahirapan (KALAHI) • Enrolment of 7 million beneficiaries under the National Health Insurance Program (NHIP) • Wholesale portfolio of the People’s Credit and Finance Corporation (PCFC) • Implementation of asset reform programs • Delivery of human development services

21. ODA for MDGs Summary of ODA for completed & ongoing projects, by MDG category, from 2001-2005, in million US$ Source: NEDA-PMS

22. INVESTMENTS SUPPORTIVE OF THE MDGs 2005-2010 Source: NEDA-PIS

23. INTENSIFYING MULTISECTORAL PARTNERSHIP AND COLLABORATION MDGs Donor Community Government (executive, legislature, judicial) Private/ Business Local Government Local Government CSOs, Academe

24. Environmental Situationand Challenges

25. Goal 7: Ensure Environmental Sustainability • Forests resources and watersheds • Biodiversity resources • Coastal and marine resources • Air quality • Water resources • Waste and toxic chemicals

27. Source: DENR Annual Report

28. Biodiversity Resources Philippines… ·one of the megadiverse countries in the world ·higher regard for the endemism of local species but… ·most severely threatened of the megadiverse countries

29. Coastal and Marine Resources ·rich sources of fish and aquatic products ·habitat for countless underwater wildlife ·natural areas for recreation/tourism Water resources • disparities in water supply coverage across regions • depletion of ground water especially in Metro Manila and Metro Cebu • pollution of water sources

30. Air Quality • pollution remains a problem in Metro Manila and major urban centers • on the level of suspended particulates (TSP), air quality is not within standards Waste and Toxic Chemicals • solid waste generation in Metro Manila is estimated at 5,345 tons per day • urbanization inevitably increased the use of chemicals • no integrated treatment facility for hazardous waste

31. Priority Policies and Programs • Adoption of Sustainable Forest Management • Revised Forestry Code of the Philippines and the Watersheds Code • Various biodiversity acts • Fisheries Code and AFMA • Clean Air Act

32. Challenges and Priorities for Action • Sustainable and more productive utilization of natural resources • Focus and strengthen the protection of vulnerable and ecologically fragile areas • Create healthier environment for the population • Mitigate the occurrence of natural disasters • Ensure environmental accountability for all industries

33. CROSS-CUTTING CHALLENGES….

34. CROSSCUTTING CHALLENGES AND PRIORITIES FOR ACTION FINANCING THE MDGs Source: DBM, Budget of Expenditure and Sources of Financing

35. CROSSCUTTING CHALLENGES AND PRIORITIES FOR ACTION FINANCING THE MDGs Distribution of Public Expenditures by Local Government Units By Sector, 2001-2004 (in thousand pesos) Source: DBM, Budget of Expenditure and Sources of Financing

36. CROSSCUTTING CHALLENGES AND PRIORITIES FOR ACTION FINANCING THE MDGs Source: NEDA-PIS

37. CROSS-CUTTING CHALLENGES AND PRIORITIES FOR ACTION • Reduce disparities across regions • Increase resource allocation for MDG-related programs and projects • Enforce full/stricter implementation of laws & ensure passage of MDG-supportive bills • Strengthen monitoring and implementation • Scale-up campaign for localization • Develop an advocacy plan • Intensify multisectoral partnership & collaboration

38. Facilitating Factors • Strong global support for MDGs by the United Nations, ASEAN, and other multilateral organizations; • Expanding national support among policymakers for MDGs (e.g., creation of the House Committee on MDGs, issuance of EO on the MDGs); • Prioritization of MDGs in resource allocation (e.g., focusing of MTPIP investments on MDGs) • Increasing awareness and participation of private sector, LGUs in MDG-related programs

39. Hindering Factors • Resource constraints (i.e., MDG financing gap of about $1.5 billion yearly); • Lack of support by creditors for the Debt for MDG Projects/Debt for Equity in MDG Projects initiative; • Low budgetary priority for MDGs accorded by some LGUs; and • Lack of disaggregated data to monitor MDGs at local levels.

40. Parallel Initiatives • Participation in the High-Level Plenary Meeting on MDGs • Formulation of the Plan of Action for Poverty Reduction (2006-2010) Enhance the current Poverty Reduction Strategy and Program Framework • Advocacy for the Philippine proposal on Debt for Equity in MDG Projects

41. Implications on the Philippine Economy MDG attainment would require: • Enhanced revenue generation; • LGU, private sector and civil society support; • Expansion of microfinance services for the poor; • Pursuit of projects with high economic impact; • Right-sizing the bureaucracy; • Privatization; and • Tapping OFW remittances.

42. THANK YOU