џWPCї” ћџ2  ZBЈœЈDДьXєx Œ @ЩЧ;X@Default ParaјШ6'+Default Paragraph Font8%Д#вШљ*ЏаШЏ%цШE((ггггггггггггггггDocument 8јШ6'+Document 88gТШ=(Џ8%Д$вШљ*ЏаШЏ%цШE((ггггггггггггггггDocument 4јШ6'+Document 48gТШ=(Џ8%Д%вШљ*ЏаШЏ%цШE..ггггггггУУУ УФФФ Фггггггггћџ2rЈвЈzЈ"ЈЪDocument 6јШ6'+Document 68gТШ=(Џ8%Д&вШљ*ЏаШЏ%цШE((ггггггггггггггггDocument 5јШ6'+Document 58gТШ=(Џ8%Д'вШљ*ЏаШЏ%цШE( ( ггггггггггггггггDocument 2јШ6'+Document 28gТШ=(Џ8%Д(вШљ*ЏаШЏ%цШE( ( ггггггггггггггггDocument 7јШ6'+Document 78gТШ=(Џ8%Д)вШљ*ЏаШЏ%цШE( (ггггггггггггггггћџ2Ј ЈЄ ZL ZІ Ј BibliogrphyјШ6'+BibliogrphygТШ=(Џ8%Д*вШљ*ЏаШЏ%цШE((ггггггггггггггггRight Par 1јШ6'+Right Par 1gТШ=(Џ8%Д+вШљ*ЏаШЏ%цШE ќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ0ААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааRight Par 2јШ6'+Right Par 2gТШ=(Џ8%Д,вШљ*ЏаШЏ%цШE ќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јшP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааDocument 3јШ6'+Document 38gТШ=(Џ8%Д-вШљ*ЏаШЏ%цШE ((ггггггггггггггггћџ2B Zк Z4ZŽZшRight Par 3јШ6'+Right Par 3gТШ=(Џ8%Д.вШљ*ЏаШЏ%цШE ќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP @ Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ0ААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааRight Par 4јШ6'+Right Par 4gТШ=(Џ8%Д/вШљ*ЏаШЏ%цШE ќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј ˜ XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааRight Par 5јШ6'+Right Par 5gТШ=(Џ8%Д0вШљ*ЏаШЏ%цШEќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј xXА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ0ААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааRight Par 6јШ6'+Right Par 6gТШ=(Џ8%Д1вШљ*ЏаШЏ%цШEќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XаА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааћџ24ZtZЮd(ЈŒRight Par 7јШ6'+Right Par 7gТШ=(Џ8%Д2вШљ*ЏаШЏ%цШEќ ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА `ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ0ААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааRight Par 8јШ6'+Right Par 8gТШ=(Џ8%Д3вШљ*ЏаШЏ%цШE!ќ"ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XАј`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааDocument 1јШ6'+Document 18gТШ=(Џ8%Д4вШљ*ЏаШЏ%цШE #$ХХааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааХХDoc Init%5јШ6'+Doc Initп8gТШ=(Џ8%Д5вШљ*ЏаШЏ%цШE(%(&ггггггггггггггггћџ2v#Јf``n ЈЮ"Tech Init6јШ6'+Tech Initп8gТШ=(Џ8%Д6вШљ*ЏаШЏ%цШE('((ггггггггггггггггTechnical 5јШ6'+Technical 5gТШ=(Џ8%Д7вШљ*ЏаШЏ%цШE )џ*ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггУ УФ Фггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааTechnical 6јШ6'+Technical 6gТШ=(Џ8%Д8вШљ*ЏаШЏ%цШE +џ,ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггУ УФ 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Фггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааћџ2є/`ъ)ZJ,ЈЄ.ЈL/Technical 8јШ6'+Technical 8gТШ=(Џ8%Д>вШљ*ЏаШЏ%цШE 7џ8ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггУ УФ Фггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааPleading%?јШ6'+Pleadingп8gТШ=(Џ8%Д?вШљ*ЏаШЏ%цШE9ќ:ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааsingle spaceјШ6'+single 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CџDааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџHА јP Ј XА`ИhР!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггУ УФ Фггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааtoc 1%FјШ6'+toc 1Pп8gТШ=(Џ8%ДFвШљ*ЏаШЏ%цШE#EќFааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџBААааггггггггггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааћџ2‚C$Z:%Zt<&ZЮ>'Z(Atoc 2%GјШ6'+toc 2Pп8gТШ=(Џ8%ДGвШљ*ЏаШЏ%цШE$GќHааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` 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Ф Фa1DocumentE+ЏтШЏDocument StyleКPп8gТШ=(Џ8%Д{вШљ*ЏаbFУФйй Срьь*СУУУ Уззи€и ййййззƒ ФФФ Фa2DocumentE+ЏтШЏDocument StyleКPп8gТШ=(Џ8%Д{вШљ*Џаc*Х Ц У Уии УУзззз Ф ФФФћџ2?‚d•o€eqfeugeкa3DocumentE+ЏтШЏDocument StyleКPп8gТШ=(Џ8%Д{вШљ*Џаd0Ч Ш ССУ Уи‚и зззз Ф Фa4DocumentE+ЏтШЏDocument StyleКPп8gТШ=(Џ8%Д{вШљ*ЏаeЩЪССУ УУУ.ФФ Ф Фa5DocumentE+ЏтШЏСDocument StyleКPп8gТШ=(Џ8%Д{вШљ*Џаf ЫЬТТ a6DocumentE+ЏтШЏСDocument StyleКPп8gТШ=(Џ8%Д{вШљ*Џаg ЭЮТТ ћџ2Л”hpq‚ipс‚ Qƒ0`[ƒa7DocumentE+ЏтШЏСDocument StyleКPп8gТШ=(Џ8%Д{вШљ*ЏаhЯаТТТ` ` ` Т a8DocumentE+ЏтШЏСDocument StyleКPп8gТШ=(Џ8%Д{вШљ*ЏаiбвТТТ` ` ` Т ааЋєx Œ @ЩЧ;X@< Œ 9€`("Courier 10cpiXеў6X@ЩCе@;ў6X9€`("Courier New (TT)еєx Œ @ЩЧ;X@< Œ 9€`("Courier 10cpiX„НLДФ №7ћ„4LДФ A€Arial Bold (TT)„„НLДФ №7ћ„4LДФ A€Arial Bold (TT)„X~Ршx7ћXX,РшA€`2Univers Italic (Scalable)XX~Ршx7ћXX,РшA€`2Univers Italic (Scalable)XМ“LДФ №7ћМ4LДФ A€Arial Bold (TT)ММ“LДФ №7ћМ4LДФ A€Arial Bold (TT)МXPє\  PŽ QXPє\  €`*Times New Roman (TT)XєCє\  PŽ QєPє\  €`*Times New Roman (TT)єX~xа№P 7ћXP,xа№A€`&Univers (Scalable)Xєixа№P 7ћєP,xа№A€`&Univers (Scalable)єМR6B>шHxx QМX6B>ш €`6Times New Roman Italic (TT)Мєx Œ @ЩЧ;X@< Œ 9€`("Courier 10cpiXМ^є\  PŽQМPє\  €`*Times New Roman (TT)Мєx Œ @ЩЧ;X@< Œ 9€`("Courier 10cpiXєixа№P7ћєP,xа№A€`&Univers (Scalable)єТ_xа№P7ћТP,xа№A€`&Univers (Scalable)ТTxа№P7ћP,xа№A€`&Univers (Scalable)єixа№P7ћєP,xа№A€`&Univers (Scalable)єТd Œ @ЩЧ;є@< Œ 9€`("Courier 12cpiєєixа№P7ћєP,xа№A€`&Univers (Scalable)єєx Œ @ЩЧ;X@< Œ 9€`("Courier 10cpiXєixа№P7ћєP,xа№A€`&Univers (Scalable)єєx Œ @ЩЧ;X@< Œ 9€`("Courier 10cpiXћџ2э”ѕ”#|xааŠб#єixа№P7ћєP#бУ У Срѓь&СPHILIPPINESФ Фƒ У УFY 1997 Development Assistance: СpЎ(#CС$61,410,000Ф Фƒ У УIntroductionУУ ааФФФ Ф Twenty years of the Marcos dictatorship, which ended with the 1985 Revolution, left the Philippines one of the most inwardЉlooking and povertyЉstricken countries in Asia. In 1986, the new administration began the arduous return to democratic rule of law, and began dismantling the highly protected "crony capitalism" system with an eye to rejoining the global marketplace. Bolstering this commitment has been the Multilateral Assistance Initiative, under which USAID and other major donors to the Philippines have played a critical role in support of the ongoing economic and political transition. One of the most noticed results of this transition so far has been the increase in gross national product (GNP) growth, which exceeded 5% in 1994 and 1995. Concurrently, trade with the U.S. has blossomed, with the Philippines importing over $4 billion of U.S. exports in 1995. The Philippines now represents the largest Association of Southeast Asian Nations (ASEAN) importer of United States goods and services. The United States also maintained its position in 1995 as the largest foreign investor in the Philippines, with many more large and small U.S. firms now exploring the possibilities of expanding their markets in this region and establishing regional headquarters in the Philippines, the only EnglishЉspeaking country in East and Southeast Asia. The United States has supported both the macroeconomic reforms and many sectorЉspecific initiatives which are fostering such trade and investment growth. For instance, USAID's technical assistance support for buildЉoperateЉtransfer (BOT) mechanisms helped level the investment playing field, and paved the way for U.S. firms to win over $1.0 billion in competitive BOT contracts in FY 1995. Over the last year, the Government of the Philippines (GOP) has acceded to the terms of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), initiated a sevenЉyear process to convert quotas to tariffs and reduce tariffs from an average rate of 31% to 5%, and implemented an expanded valueЉadded tax. U.S. efforts to improve tax administration and to reduce rampant tax evasion are bearing fruit, with tax collections substantially up the past two years. After last year's elections, the GOP formulated a new legislative agenda which, when enacted, will stimulate additional economic growth and investment while reducing the incidence of poverty. If policy liberalization continues, the economy of the Philippines should embark on a higher economic growth path in the near future. Prospects for sustainable development in the Philippines and greatly expanded trade with the United States are bright. У УThe Development ChallengeФ Ф Since 1986, the Philippines has achieved a fair degree of economic and political stability. The GOP adopted a series of policy liberalization measures, and after several years of near economic stagnation, per capita income grew at an annual rate of about three percent in both 1994 and 1995. Employment rose by 3.2 million between 1991 and July 1995, while the unemployment rate fell from 10.6% to 8.8%. However, underemployment in agriculture and the urban informal sector, combined with low family incomes and a relatively highЉcost economy, still left 41.3% of the population below the poverty line in 1994. In contrast with the 1970s and 1980s, when economic growth was fueled by debtЉfinanced government expenditure and private consumption, current economic performance is likely to be sustainable. It is driven by expanding international trade and rising private sector fixed capital formation. Both domestic and foreign investment has shown large yearЉtoЉyear increases, and exports expanded by 20% in 1994 and by over 15% in the first three quarters of 1995. The inflation rate slowed further from 9% in 1994 to 8.1% in 1995. The balance of payments continued to show a surplus in the first seven months of 1995 as a result of increased overseas workers' remittances and significant foreign direct investment inflows. The external debt to GNP ratio has declined from over 80% in the 1980s to below 60% in 1995 and the debt service ratio to exports has declined from 31.8% in 1990 to 13.5% in 1995. In absolute dollar terms, however, total debt ($40.6 billion as of midЉ1995) is still high. ŒNotwithstanding recent successes, the Philippines is still a fragile democracy, and its economy is far behind its ASEAN partners in competitiveness, size, quality of basic infrastructure, rate of economic growth, and success in reducing poverty. Public confidence in central government and in key areas such as the judiciary and law enforcement is still relatively low. Demand for public and private investments in infrastructure, and in health, education and other social services, is substantial and largely unmet. And the 2.4% population growth rate, cast against rapid natural resource depletion, represents several national and global issues of great concern to the United States and the Philippines. Future policies and actions must foster high annual GNP growth rates, while yielding broader distribution of income gains; must help create a sustainable balance between population growth and natural resource consumption; and must empower the Filipino citizen with greater economic and political freedom. The GOP has set ambitious goals to direct the country toward newly industrialized country (NIC) status by the year 2000. Goals for that year include increasing per capita income from $730 in 1990 to $1,200, reducing poverty from 46% in 1991 to 30%, and slowing the population growth rate substantially. These are big challenges for the Philippines. The United States has put in place a program to assist in this transition, and at the same time, has set the stage for a mature bilateral relationship wherein expanded U.S. ties will supplant foreign assistance. This program consists of the following: ЉЉ ТТExpand trade, investment, and income growth throughout Mindanao, an island which represents over 25% of the population, which is a regional source of political unrest and poverty, and which contains vast agricultural and natural resource production potential; ЉЉТТComplete ongoing national reforms in trade and investment, microЉfinance, capital markets, and fiscal management; ЉЉТТReduce the fertility rate and improve maternal and child health; help minimize the risk of a major AIDS epidemic in the Philippines; ЉЉТТEstablish communityЉbased management systems to preserve coastal and forest resources; ЉЉТТReduce industrial and energyЉbased pollution and its impact on global warming; and ЉЉТТExpand citizen participation in public policyЉmaking through local governments and coalitions which address nationally important issues. The United States continues to be the lead donor for the Philippines' family planning and AIDS prevention programs. USAID's population program will help reduce the population growth rate by lowering the total fertility rate from 4.1 in 1993 to 3.3 by the year 2000. The United States is also the lead donor for Mindanao development, with initial efforts in southern Mindanao having already helped boost that region's family incomes at over twice the national average rate. In local government, the U.S.Љassisted decentralization program is one of the world's most bold and innovative processes involving the devolution of governmental authority and services. U.S. macroeconomic policy assistance, which is mostly funded and nearing completion, has been especially effective in helping implement tax reform, reduce trade and investment barriers, and open up the capital markets. In environment and coalition building, the United States applies modest resources in the Philippines, but is the innovative force behind much of the institutional and technological changes in these sectors at the community level. In addition, USAID will provide regional support for Mongolia and Viet Nam with the closing of the Regional Support Mission in Bangkok, Thailand in FY 1996. У У Other DonorsФ Ф For 1996, donors pledged $2.9 billion for the Philippines at the Tokyo Consultative Group meeting ($5.7 billion was pledged in 1994). Japan pledged $1.6 billion; the World Bank $500 million; and the Asian Development Bank (ADB) $300Љ$400 million. Other major bilateral donors ЉЉ the United States, Australia, Canada, Germany, and the European Union ЉЉ accounted for about oneЉfifth of donor commitments. Other than the United States, family planning and maternal child health donors include the United Nations Population Fund (UNICEF) Australia, the ADB, the World Bank, Germany, and the European Union. The Philippines is a priority country for the U.S. Љ Japan Common Agenda under its population, health and HIV/AIDS initiatives. Regarding the environment, the United States works closely with the World Bank, the ADB, Canada, Japan, and Germany. U.S. programs in democracy are supported by the Ford Foundation, the Asia Foundation, and Canada. In the Mindanao economic development program, the United States works closely with the European Union, Australia, Japan, the World Bank, and the ADB. У У FY 1997 ProgramФ ФŒ™The United States actively supports a new U.S.ЉPhilippines partnership based on a shared commitment to human rights and democratic principles, mutual economic interest in an open global trading system, and a common concern for the global issues of environmental degradation, population growth, and the AIDS epidemic. Looking to the future, the Philippines is not only a flagship democracy in East and Southeast Asia but also an important ally which links the United States with rapidly expanding economies throughout Asia. The United States will directly support this partnership by focusing its resources on six strategic objectives and one special objective (AIDS). У УAgency Goal: Encouraging BroadЉbased Economic GrowthФ Ф The GOP places great importance on the development of the considerable growth potential of Mindanao, an area where Muslim separatist demands and the high incidence of poverty are a priority challenge being addressed by the current administration. Economic policy reforms at the national level are designed to level the playing field, thereby encouraging the Philippines to follow its comparative advantage while opening up trade and investment opportunities for the United States. The United States was the lead donor promoting development of the East ASEAN Growth Area, which highlights the growth potential of Mindanao in the southern Philippines. The United States financed the УУMindanao 2000 Blueprint for DevelopmentФФ which was adopted by the GOP as its plan for opening the Mindanao economy. The GOP accords high priority to the sustainable development of Mindanao. For instance, Mindanao used to receive only 12% of the government's infrastructure budget, but currently that share is in excess of 30%. U.S.Љfunded infrastructure continues to stimulate private sector investments and the production of highЉvalue agricultural crops. U.S.Љfinanced agribusiness systems provide training and external market linkages that enable farmers' groups and cooperatives to participate in Mindanao's economic growth. Planned U.S. assistance in microenterprise finance targets the rural cooperative banks in Mindanao, recognizing both U.S. commitment to such financial reforms and leadership in microenterprise development programs. As a result of these combined efforts to date, family income growth in Southern Mindanao now tops all areas in the country, more than double the national average. At the national level, local public policy groups supported by the United States continue to help the GOP break down many of the Philippines' longЉestablished trade and investment barriers. The United States provides grants for research and coalitionЉbuilding, which lead, in turn, to further improvements in trade, investment, and finance policies. Indeed USAID support has been critical to the creation of many of the Philippines' forwardЉthinking business coalitions. The United States supported the adoption of a new policy of selfЉregulation by the Philippine Stock Exchange, the creation of a new electronic central depository for securities, the deregulation and automation of the public bond auction process, and the commitment by the GOP to broaden the role of private lenders to small businesses. In public finance, the United States continues to encourage the GOP to improve coordination among the tax planning, collection, administration and allocation elements of its public revenue structure. The United States also is assisting the GOP to deregulate the Philippine telecommunications sector; and through USAID's continued support to the build operate transfer (BOT) program, the Philippines is now recognized as the leader of Asia in paving the way for private investment in infrastructure programs. Both the BOT and telecommunications programs have opened up substantial U.S. business opportunities. Reduced funding for encouraging broadЉbased economic growth in the Philippines would inhibit the economic development of Mindanao and diminish the capacity of the United States to participate in the trade and investment opportunities associated with the growth not only of Mindanao but of the Philippines as a whole, potentially one of the largest markets for the United States in Asia. РР Strategic Objective 1: BroadЉbased economic growth in Mindanao. РР Strategic Objective 2: Improve national policies in trade and investment. У УAgency Goal: Stabilizing World Population Growth and Protecting Human HealthФ Ф The current administration gives high priority to child survival and family planning; as a result, in this largely Catholic country, the United States has an opportunity to help expand rapidly maternal and child health and family planning programs in the Philippines, while also improving the quality of the services provided. The United States also supports the prevention of the spread of HIV/AIDS, which is expected to become the leading public health threat in the Asia and Pacific region by the year 2000. The United States has been a major donor for child survival and the largest single donor to family planning programs for the past 20 years. The United States and the GOP have developed an effective working partnership. Recently, the management of the program has been transformed; performanceЉbased management techniques now assure effective delivery of family planning and maternal child health services. As part of its program of devolution of authority, the GOP has established, at the local government level and with U.S. assistance, performanceЉbased management systems for delivering health care services. Under this system, the United States, the GOP and local government units define objectives and achieve results collaboratively. Actual results have exceeded targets. Preliminary findings of a recent survey indicate that the overall contraceptive prevalence rate has increased from 40% in 1993 to 53.4% in 1995; for modern methods, the rate has risen from 24.9% in 1993 to 28.3% in 1995. With respect to HIV/AIDS activities, the fifth round of the government's national HIV sentinel surveillance system shows that the HIV prevalence rate in populations engaged in highЉrisk behavior remains relatively low at 0.11% compared with prevalence rates in the Asian region. (The alarm level for these populations as identified by the World Health Office Global program in AIDS is 1.0% ). The GOP has improved the policy environment for, and the potential impact of, family planning services and AIDS prevention programs. New leadership at the Commission on Population has generated an extremely positive climate for collaboration between the GOP's Department of Health and the commission. These institutions have signed a memorandum of agreement to formalize the distribution of responsibilities. The GOP and the local governments also have signed comprehensive health care agreements which commit the local governments to carry out the priority health programs of the GOP. Among these priority programs are family planning and maternal and child health (which includes child survival objectives) and sexually transmitted diseases (STDs) and HIV/AIDS prevention programs. Historically, five major nonЉgovernmental organizations (NGOs), and numerous small NGOs, have collaborated with the GOP to deliver health and maternal child health and family planning services. In 1994, 88% of children between 12 and 23 months old were fully immunized. Of the total funding requested for population and health, $22,250,000 is planned for population activities and $2,970,000 is planned for health activities. Reduced funding for stabilizing world population growth and protecting human health will make it difficult to achieve the goal of reducing the total fertility rate to 3.3 by 2000, and the longЉterm goal of achieving the replacement fertility rate of 2.1 by 2010. It also will affect further reductions in infant mortality by shortfalls in funds for programs addressing acute respiratory infections, micronutrient deficiency, immunization coverage, and control of diarrheal disease. Reduced funding for HIV/AIDS may jeopardize the status of the Philippines as a lowЉprevalence HIV/AIDS country. РР Strategic Objective 3: Reduced fertility rate and improved maternal and child health. РР Special Objective: HIV/AIDS epidemic prevented. У У Agency Goal: Protecting the EnvironmentФ Ф Given extensive depletion of forest and fishery resources, and the negative environmental effects of rapid industrialization, sustainable management of the environment is crucial to the maintenance of stability in the Philippines. In addition, working toward the achievement of these two strategic objectives will stimulate important trade and investment opportunities for the United States. GOP policy now emphasizes the equity of peopleРРs access to natural resources, the need to limit utilization to the resourceРРs carrying capacity, and the participation of citizens in the development and implementation of resource management policies and programs. For example, a July 1995 policy document requires that sustainable forestry programs be based on communityЉbased forestry management systems. With U.S. assistance, coverage of forested area under community forest management has increased from 5,000 hectares in 1994, to 69,000 hectares in 1995. Also with U.S. assistance, the GOP has issued to indigenous cultural communities certificates of ancestral domain covering an additional 148,000 hectares, the first step in allocating resource rights to upland indigenous communities. Last year, the GOP, with U.S. support, hosted the International Coral Reef Initiative workshop, providing an opportunity to discuss the establishment of a Southeast Asian regional working group on coastal resource management. As a followЉup activity, the United States supported a coastal resource management activity which will help coastal communities and their local governments adopt sustainable management systems over their fishery resources along 3,000 kilometers of shoreline. The U.S. will coordinate various donor initiatives to achieve the strategic spread of sustainable fishery management. The GOP is beginning to emphasize the "brown sector." With U.S. support, the GOP has enacted two major, marketЉbased environmental policies since 1993, and recently the budget for the GOP Environmental Management Bureau has been increased. Under the industrial environmental management program, supported by the United States, 98% of the 299 industrial firms volunteering for pollution management appraisals have implemented recommendations, resulting in pollution reduction and in cost savings of $14 million annually. There is a trade component as well; the U.S.ЉAsia Environmental Partnership (USAEP) promotes the adoption of advanced U.S. environmental technologies, while also promoting cost savings at the level of the firm. The United States has been in the forefront of providing policy support to the GOP Department of Energy, and U.S. technical assistance grants to improve energy sector policies are providing the basis for discussions on policy coordination with other bilateral donors and with multilateral banks. U.S. assistance was instrumental in promoting buildЉoperateЉtransfer financing mechanisms that have played a key role in the energy sector, and promise to play a role in introducing new, commercially viable, environmental technologies as well. The GOP also has enacted several key policies designed to reduce pollutants and emission of greenhouse gases. A tough clean air bill, with enforcement guidelines and penalties, is under consideration. The United States was the first to introduce a methodology to measure mitigation impacts of global and local greenhouse gas emissions. Despite progress in environmental policy and regulation, there remain gaps between problem recognition and resolution, policy and implementation, regulation and enforcement. The United States will seek over the next few years to introduce technologies, incentives, and information to resource users who can apply them to narrow this gap. A budget reduction for sustainable environmental management will result in slower program implementation and a premature curtailment of the U.S. energy (greenhouse gases) programs. It also would diminish the capacity of the United States to participate in the substantial trade and investment opportunities associated with the environment and energy sectors. РР Strategic Objective 4: Enhanced management of renewable natural resources. РР Strategic Objective 5: Reduced emission of greenhouse gases. У УAgency Goal: Building DemocracyФ Ф Within the rapidly growing South East Asian region, the Philippines is the premier example of a vibrant economy in a democratic setting. The current President is a wellЉrespected spokesperson for democracy and human rights. His formulation of democracy emphasizes the concepts of empowerment through civil society and the development of local government. Countries of the South East Asian region are looking more and more to the Philippines for ideas on issues associated with democratic development, such as labor management relations, conducting and monitoring elections, and fostering the growth of participatory democracy through civil society memberЉcontrolled organizations and local governments. The United States brings unique capacities to the goal of building democracy in the Philippines. Based on the historic role of the United States in establishing most of the democratic institutions and processes in the Philippines, these capacities include a recognized pioneering role among donors in the promotion of democracy, an established credibility and role in supporting the local government movement, and a longЉstanding strategic role, credibility and social capital in working with non governmental organizations. The U.S. program also provides new arenas for the effective participation of disadvantaged and underЉrepresented groups. The U.S. program of assisted selfЉreliance entered into a new phase this year with the launching of the Governance and Local Democracy activity to provide technical assistance to select provinces and municipalities in priority areas, and to strengthen the Leagues of Provinces, Cities, and Municipalities. The Leagues, with U.S. support, are encouraging the Philippine Congress to conduct a thorough review of the Local Government Code in 1996 and 1997 after five years of actual implementation. They also are introducing innovations in environmental management, participatory planning, local revenue generation, credit financing, and local buildЉoperateЉtransfer mechanisms. The United States supported the labor unions' advocacy efforts with Congress in the enactment of a "Magna Carta for Overseas Workers" to protect 4Љ6 million overseas Filipino workers. Two alternative legal groups, supported by the United States, helped ensure the enactment of an antiЉsexual harassment law in February 1995. A coalition of electoral reform advocates successfully supported a national law for the proportional representation in Congress of registered parties or coalitions of marginalized and underЉrepresented people in the 1998 elections. At the Annual Partners' Conference last October, with representatives of many important private voluntary organizations (PVOs), the United States emphasized the importance of achieving results in both the local government field and the civil society field if the overall goal of broadened participation is to be achieved. Directly resulting from this conference were firstЉtime meetings between the disadvantaged groups and senior GOP officials. The latter discussions led to a pilot activity wherein the urban poor, government, business, and NGOs will engage in continuing, open dialogue on land use in a specified urban area. Indigenous people's groups were able to make contact with similar groups in the regions. The GOP strongly supports efforts to build democracy, devolve power to local governments and collaborate with NGOs. It has articulated a social reform agenda targeted to disadvantaged groups. The number of receptive local governments is increasing. Among NGOs, effective governance is a major area of interest. If there is a budget reduction for building democracy, USAID will be unable to continue to strengthen civil society organizations that seek to influence the development and the implementation of policies that, in turn, will affect their wellЉbeing. аа РР Strategic Objective 6: Broadened participation in formulation and implementation of public policies in selected areas. У Уаа PHILIPPINES FY 1997 PROGRAM SUMMARYФ Фб#Т_xа№P7ћТP#б аа в | АHdxT АHdxT | вм*šŽ šŽ *мммммааб#Txа№P7ћP#бEncouraging Economic GrowthммааStabilizing Population GrowthммааProtecting the EnvironmentммааBuilding DemocracyммааProviding HumanitaЉrian Assist.ммааTotalм*дŽ дŽ *мммUSAID Strategic Objectivesммммммммммммм*zŽ zŽ *ммм1. BroadЉbased Economic Growth in Mindanaoммаа11,490,000ммммммааммммаа11,490,000м*zŽ zŽ *ммм2. Improved National Policies in Trade and Investmentммаа4,700,000ммааммммммммаа4,700,000м* Ž  Ž *ммм3. Reduced Fertility Rate and Improved Maternal and Child Healthммааммаа23,070,000ммммммммаа23,070,000м* Ž  Ž *ммм4. Enhanced management of renewable natural resourcesммммммаа5,000,000ммммммаа5,000,000м*дŽ дŽ *ммм5. Reduced Emission of Greenhouse Gasesммммммаа3,000,000ммммммаа3,000,000м*lŽ lŽ *ммм6. Broadened Participation in the Formulation and Implementation of Public Policies in Selected Areasммммммммаа12,000,000мммм12,000,000м*zŽ zŽ *ммм7. Special Objective: HIV/AIDS Epidemic Preventedммаамм2,150,000ммммммааммаа2,150,000м*Ž      Ž      *мммTotal Development Assistanceммаа16,190,000ммаа25,220,000ммаа8,000,000ммаа12,000,000ммаа0ммаа61,410,000б#єixа№P7ћєP#бмм У УС`Ќ(#2СMission Director: Kenneth S. Schofieldƒ ааACTIVITY DATA SHEETФ Фаа У УPROGRAM:Ф Ф PHILIPPINES У УTITLE AND NUMBER:Ф Ф Broad Based Economic Growth in Mindanao, 492ЉSO01 У УSTATUSФ Ф: Continuing У УPROPOSED OBLIGATION AND FUNDING SOURCEФ Ф: FY 1997: $11,490,000 DA У УINITIAL OBLIGATIONФ Ф: FY 1995; У УESTIMATED COMPLETION DATEФ Ф: FY 2000 УУPurposeФФ: To maximize people's participation in and benefits from increased public and private investments in the economy of the island of Mindanao. УУBackgroundФФ: Mindanao constitutes more than a third of the land mass of the Philippines and is home to about oneЉfourth of 67 million Filipinos. Indicators show that the quality of life in Mindanao is well below the national average. Mindanao has lower income levels than most other regions in the country and higher poverty incidence and unemployment rates. After a long period of relative economic stagnation, Mindanao appears positioned to experience a period of substantial and accelerated economic growth. An improved overall policy environment, the return of political stability, renewed investor confidence in the economy and increased national government priority given to the development of Mindanao all contribute to rapid economic growth. The local financial system also plays a major role in sustaining and accelerating Mindanao's economic growth. УУUSAID Role and Achievements to DateФФ: The program extends successful models for agricultural and entrepreneural development, investment promotion, and policy reform already tested in Southern Mindanao. Between 1992 and 1994, job and income growth in Southern Mindanao was among the highest in the Philippines. Family income growth in the area led the country and was more than twice the national average. USAID provided training and market linkages that enabled farmers' groups and microentrepreneurs to participate actively in the area's economic growth. USAID also assisted in inducing critical policy reforms, such as consolidation and market determined pricing of government credit programs, increased microenterprise access to the formal financial sector, and lower tariff levels for important agricultural inputs which have important implications for the agricultureЉbased economy of Mindanao. УУDescriptionФФ: USAID focuses on an aggressive and broadЉranging enterprise development program aimed at facilitating maximum participation of small farmers/fisherfolk, and small and microentrepreneurs in the economy. USAID also supports efforts to assist Mindanao's leaders identify and bring about modifications to governmental policies which will stimulate Mindanao's economic progress, and to assist the leaders to take actions to help assure continued flow of appropriate levels of public infrastructure development resources and private investment. USAID will assist finance institutions in Mindanao develop their capacity to provide viable and sustainable services to small and microenterprises. A steering committee for this activity is composed of the Presidential Assistant for Mindanao, other concerned GOP agencies, private sector leaders, and USAID representatives. УУ Host Country and Other DonorsФФ: The Asian Development Bank (ADB) is interested in supporting the East Asia growth polygon initiatives. Australia is focusing on the CagayanЉIligan area and presently has three development advisors in Davao. Canada will continue work with local governments and the Mindanao Autonomous Region. Japan is studying the Agusan river basin to continue infrastructure investments in that area. The World Bank is implementing a water district pilot project and plans to undertake rural finance and rural infrastructure projects. The ADB, Germany and Canada also are providing assistance in microЉfinancial service development. The United States is a major donor in Mindanao and helps coordinate donor efforts through the Office of the Presidential Assistant for Mindanao. Contributions to this USAID activity from the GOP, local government units, and private sector organizations, are approximately $12 million. УУBeneficiariesФФ: In Mindanao, about 3.9 million people (55% of Mindanao's population) are considered poor; twoЉthirds of these people live in rural areas. The activity will provide (1) opportunities for farmers and fisherfolk to gain access to the more lucrative markets emerging as a result of expanding agribusiness investment in Mindanao; (2) opportunities for small and microenterprises to enter into beneficial business arrangements with incoming investors and firms; and (3) a major increase in employment and entrepreneurship opportunities particularly for women and traditionally disadvantaged groups. УУPrincipal Contractors, Grantees, or AgenciesФФ: USAID relies on a U.S. firm, Louis Berger, as a general contractor. In addition, many public and private sector U.S. and local organizations as well as local government units are participating in this activity. УУMajor Results IndicatorsФФ: ССС` ` ССИ И ССССhh#ССРР(СС-ССpp2СУУBaselineФФ С  <С УУTargetФФ Real growth in gross regional domestic Product in Mindanao (GDP)СС Сhh#ССРР(СС-С 1.4(1984/85)УУ1ФФ С  <С5.0 (2000) Real growth in income of families in the lower 50% income class in MindanaoСССhh#ССРР(С 0.9(1985/93)УУ2ФФ Сpp2С 3.0 (2000) ________________________________ УУ1ФФSource: Philippine National Accounts, National Statistics Board УУ2ФФFamily Income and Expenditure Survey, Philippine National Statistics Office and commissioned surveys ааУ УACTIVITY DATA SHEETФ Фаа У УPROGRAM:Ф Ф PHILIPPINES У УTITLE AND NUMBER:Ф Ф Improved National Systems for Trade and Investment, 492ЉSO02 У УSTATUSФ Ф: Continuing У УPROPOSED OBLIGATION AND FUNDING SOURCEФ Ф: FY 1997: $4,700,000 DA У УINITIAL OBLIGATIONФ Ф: FY 1995; У УESTIMATED COMPLETION DATEФ Ф: FY 2000 УУPurposeФФ: To create an environment conducive to trade and investment through liberalized policies, improved financial markets, and improved mobilization and allocation of fiscal resources. УУBackgroundФФ: Compared with the highly protected and regulated business environment of the 1970s, the Philippine trade and investment regime in recent years has become increasingly open and liberalized. Over the last year, the Government of the Philippines (GOP) has continued to liberalize its economic policy framework and to design and install better structures for administering its tax and fiscal programs and financial markets. Progress has been made within the frameworks of the General Agreement on Tariffs and Trade; World Trade Organization and the AsiaЉPacific Economic Cooperation. However, if the Philippines is to be able to maintain or accelerate its economic growth, the GOP will have to formulate and implement reforms in areas ranging from trade and investment policy and transportation to capital markets and taxation. УУUSAID Role and Achievements to DateФФ: USAID is actively promoting trade and investment liberalization in the Philippines. This USAID role supports continued implementation of the Philippine agenda for reform under the Multilateral Assistance Initiative (MAI). The MAI agenda called for maintaining an environment conducive to private sectorЉled investment and sustainable growth, and alleviation of widespread poverty. Among the recent major policy reforms to which USAID contributed significantly are: accession to the terms of the Uruguay Round of the GATT, conversion of remaining quotas to tariffs and further tariff reduction and simplification, legislation of the Export Development Act, introduction of selfЉregulation among stockbrokers and dealers, facilitation towards electronic transfers of securities, tax reform, financial sector reform for credit access to small and microenterprises, and liberalization of the banking, interЉisland shipping, telecommunications and retail trade sectors. Initial measurable benefits from these efforts include the 15% annual average real growth in exports from 1992 to 1995, the 12% average annual real increase in tax collections of the Bureau of Internal Revenue during 1993 to 1995, and the increase in telephone service coverage from 1.17 (1992) to 1.67 (1994) per 100 population. With remaining import quotas on less than ten items and significantly lower tariffs, Filipino consumers are now enjoying a wider range of choices for consumer goods and services, at more reasonable prices than ever before. USAID is widely identified with these national reforms. УУDescriptionФФ: This activity subsumes all existing USAID programs dealing with economic policy reforms at the national level, and includes programs designed to further promote domestic competition in selected key sectors of the economy. Reforms focus on reducing barriers to entry in domestic industries, improving transportation and communications services, improving tax planning, administration and collection, and facilitating the movement of investment capital. USAID assistance is provided through advisory services in the review, analysis and formulation of policies, and through support for policy reforms by coalitions of interested groups. To upgrade the capability of local institutions to implement and sustain policy reform efforts, USAID also will support the implementation of these reform policies. УУHost Country and Other DonorsФФ: The following donors provide technical assistance and commodities in the following sectors: the Asia Development Bank (ADB) for capital markets development, the World Bank for tax administration and also capital markets development, and Canadian International Development Agency (CIDA) for improved implementation of economic and social policies and for telecommunications. The World Bank organizes the consultative group meetings of the donors with the GOP, which provides a forum for addressing major development concerns and issues. Private sector contributions come from business and trade groups in cash and in kind for studies, workshops and advocacy efforts. GOP contributions come in the form of human resources and logistical support in the different sectors. ŒУУBeneficiariesФФ: The ultimate beneficiaries of this effort to liberalize the trade and investment environment will be: the currently unemployed or underemployed Filipino workers estimated at 8.6 million in 1995; Filipino consumers who will benefit from lower prices and greater selection of goods and services; the poor Filipinos (41% of the population) who are dependent on public provision of basic services; and U.S. and other foreign enterprises whose trade with the Philippines will grow with the Philippine economy. U.S. exports to the Philippines typically grow at a faster rate than that of any other country during a period of Philippine economic expansion. УУPrincipal Contractors, Grantees, or AgenciesФФ: USAID implements activities through contracts with two U.S. consulting firms, federal agencies (U.S. Internal Revenue Service and Bureau of Census), and through grants and cooperative agreements with local non governmental organizations. УУMajor Results IndicatorsФФ:СИ И ССССhh#ССРР(СУУBaselineФФ*Сpp2ССШШ7СУУTargetФФ Ratio of gross domestic capital formation to gross domestic product (GDP)Сhh#ССРР(СС-С25%(1994)СШШ7СС  <С28%(2000) Ratio of total exports plus imports to GDP СССhh#С74%(1989Љ94)С-С90%(2000) Ratio of tax revenues to GDP С` ` ССИ И ССССhh#ССРР(С17%(1994)Сpp2ССШШ7С22%(2000) ________________________________ СС *Source: Philippine National Accounts, National Statistical Coordination Board ааУ УACTIVITY DATA SHEETФ Ф аа У УPROGRAM:Ф Ф PHILIPPINES У УTITLE AND NUMBER:Ф Ф Reduced Fertility Rate and Improved Maternal and Child Health, 492ЉSO03 У УSTATUS: Ф ФContinuing У УPROPOSED OBLIGATION AND FUNDING SOURCE:Ф Ф FY 1997 $23,070,000 (DA) У УINITIAL OBLIGATION: Ф ФFY 1995У У;Ф Ф У УESTIMATED COMPLETION DATEФ Ф: FY 2000 УУPurpose:ФФ To improve the health of women and children by expanding access to quality family planning and selected other reproductive health services in the public and private sectors as well as fostering the continued provision of selected child health interventions at the local government unit level. УУBackgroundФФ: During the 1970s and early 1980s, the Philippines had one of Asia's most successful family planning programs. Starting in 1983, the program suffered serious setbacks due to increasing political unrest, deteriorating economic conditions and the democratic revolution. At the same time, when the current President assumed office, the family planning program was revived. In 1993, the use of modern contraceptives was only 24.9%. This low prevalence deprived women and children of the health benefits of proper child spacing and the avoidance of highЉrisk pregnancies. With the historic opportunity brought by the current administration's strong support for family planning, USAID renewed its support to the Philippines National Family Planning Program (PNFPP) by launching the integrated family planning maternal health program. As a result, the PNFPP has been rejuvenated, with impressive gains in the public sector provision of services already documented in the 1995 national family planning rider survey. УУUSAID Role and Achievements to Date:ФФ Based on the results of the 1993 demographic and health survey, USAID designed an integrated family planning and maternal child health strategy to assist our partners ЉЉ the GOP/Department of Health (DOH), the Commission on Population, local government units, non government organizations (NGOs) in the private voluntary and commercial sector ЉЉ to expand quality services. In addition, USAID supports four key child survival interventions: acute respiratory infection, expanded program on immunization, oral rehydration therapy, and microЉnutrient supplementation and fortification. This activity is organized into three components. The first focuses on increasing public sector provision of family planning and maternal child health services at the local government level where the responsibility for service delivery is now devolved as a result of the Local Government Code which fosters decentralization and increased community participation. The second component strengthens national systems in the GOP Department of Health to promote and support the family planning and maternal child health program at the local level and to carry out functions, such as contraceptive logistics, more efficiently handled by the national level. Support also is provided to the Commission on Population to strengthen its national and local policy and advocacy initiatives. Finally, USAID encourages sustainability and market segmentation whereby the NGOs and private commercial sector will provide services to those able to pay partial or full cost while the Department of Health targets its resources on those of the lowest income group. The third component increases the private sector provision of contraceptives and family planning and maternal child health services. Results to date are encouraging. Since 1993, the program has exceeded its goal of raising overall and modern method contraceptive prevalence by 1.5% per year. According to the preliminary results of the 1995 national family planning rider survey, actual overall usage increased from 40.0% in 1993 to 53.4% in 1995. Modern contraceptive method use increased from 24.9% to 28.3%. The engine of this increase was mainly public sector services, spurred on by the increased contraceptive availability in public sector outlets, massive clinical training programs,and supportive communication programs. The private sector did not expand commensurably, perhaps due to the long overdue revitalization of the public health services. USAID's now examining closely the constraints faced by the private sector to expanding its role in the family planning marketplace. USAID supports is helps sustain the gains achieved by the GOP's maternal child health programs in the last five years. In 1994, 88% of children between 12 to 23 months old were fully immunized. Almost 70% percent of pregnant women and mothers of children under five years old received two doses of tetanus toxoid. Vitamin A supplementation among children 12 to 59 months old reached 93%. These vital maternal child health services used to be the responsibility of the national government. The local performanceЉbased program of this activity is aimed at strengthening the capabilities of local governments to improve the delivery of maternal and child health services in order to ensure that the impressive achievements in recent years are maintained. УУDescription:ФФ FY 1997 funds will support the local performanceЉbased program whereby USAID releases a tranche of funds after the Department of Health and participating local governments meet a series of performance benchmarks concerning the delivery of family planning and maternal child health services. Seven U.S. cooperating agencies will assist the Department of Health, the Commission on Population, and the private commercial sector in strengthening systems for information, education and communication, logistics, policy formulation, applied research, family planning and maternal child health service delivery, and social marketing. Funds will also be used to procure U.S. contraceptive commodities and support the 1998 demographic and health survey. ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#€%и'0*ˆ,р.813џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааУУHost Country and Other Donors:ФФ USAID remains the largest donor to the Philippine national family planning program. In 1995Љ99, the United Nations Population Fund will contribute approximately $25 million to the Philippine national family planning program for activities and contraceptive commodities complementary to the USAID program. A combined World Bank, Asian Development Bank, European Union, and Germany Loan/Grant Agreement supports a five year $120 million urbanЉbased Women's Health and Safe Motherhood project which, by emphasizing safe motherhood activities, complements USAID's more targeted family planning and reproductive health approach. In 1996, the Department of Health increased its financial contribution to take over support of the local costs of the contraceptive distribution system previously funded by USAID. УУBeneficiaries:ФФ The 8.6 million currently married women in the reproductive ages, with particular focus on those who want to limit or space their next birth and those in the high risk categories for childbearing (i.e., under 18 years of age: over 34; birth interval less than 24 months; birth order of last child greater than three), are the key beneficiaries of the family planning and reproductive health interventions. The 2.1 million children under one year of age are the beneficiaries of the four key child survival interventions. УУPrincipal Contractors, Grantees, or Agencies:ФФ USAID implements activities through the Department of Health, the Commission on Population, local governments, and non government organizations (local and U.S. PVOs and private commercial sector entities) involved in the Philippine national family planning program. ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРЎШ xа (#€%и'0*ˆ,р.813џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа УУMajor Results Indicators:ФФСИ И ССССhh#С ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџpџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааСpp2ССpp2ССpp2ССpp2ССpp2ССpp2ССpp2С УУBaselineУУ1ФФФФ УУTargetФФ ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И p а (#€%и'0*ˆ,р.813џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааTotal Fertility RateУУ1ФФСИ И ССpp2С4.1 (1993) С  <С 3.3 (2000) Infant Mortality RateУУ2ФФСИ И ССpp2С57 (1990) 49 (2000) Maternal Mortality RatioУУУУ2ФФФФСИ И С209 (1993) 190 (2000) Contraceptive Prevalence Rate(all methods)УУ1ФФ Сpp2С40.0% (1993) 50.5% (2000) Contraceptive Prevalence Rate (modern methods)УУ1ФФСpp2С24.9% (1993) 35.4% (2000) Percent of Births in HighЉRisk GroupsУУ1ФФ Сpp2С62.4% (1993) 56.0% (2000) ________________________________ ССУУ1ФФ1993 Demographic and Health Survey ССУУ2ФФGOP Infant Mortality Task Force а АААX аггааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4Œ ф <”ьDœєLЄќ!T$Ќ&)\+Д- 0d2М4џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааУ УACTIVITY DATA SHEETФ Ф ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4Œ ф <”ьDœєLЄќ!џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа У УPROGRAM:Ф Ф PHILIPPINES У УTITLE AND NUMBER:Ф Ф Enhanced Management of Renewable Natural Resources, 492ЉSO04 У УSTATUS:Ф Ф Continuing У УPROPOSED OBLIGATION AND FUNDING SOURCE:Ф Ф FY 1997 $5,000,000 DA У УINITIAL OBLIGATION:Ф Ф FY 1995; У УESTIMATED COMPLETION DATE:Ф Ф FY 2002 УУPurpose:ФФ To enhance and sustain the management of natural resources by communities and businesses, and thereby prevent environmental collapse while the opportunity still exists. УУBackgroundФФ: The pace of damage and destruction to the Philippine environment is staggering. The Philippines faces a narrow window of opportunity within which to reverse the rapid and possibly irreversible decline in the country's ecosystems. To meet this challenge, the Government of the Philippines (GOP) has undergone a dramatic shift in its philosophy and commitment to manage and sustain the country's natural resource base. This shift is based on a policy that encourages popular participation in decisions affecting the management and use of the country's natural resources. Specific policies empower upland and coastal communities to manage the forest and fishery resources they depend upon for their livelihood. As a result, communities, non governmental organizations (NGOs), and an everЉincreasing number of commercial businesses are now committing capital and labor effort to reverse the trend of environmental degradation and to sustain the resource base. УУUSAID Role and Achievements to Date:ФФ USAID was the first to develop a strategic initiative that assisted the GOP to conceptualize and implement policies that emphasize communityЉbased approaches to resource management. The activity has three components: Coastal Resources Management, Forest Resources Management and Industrial Environmental Management. USAID focused on communityЉbased management systems for coastal and forest resources and on promoting pollution abatement among the country's major industrial sectors. The following are the results achieved under the strategic objective: Forestry Resources Management: To date, 14 communities have been given rights to access and manage 69,000 hectares of residual forest lands through community forest management agreement certificates. In addition, 148,360 hectares of forest lands were recognized by the GOP as ancestral domains through a similar tenure instrument entitled certificate of ancestral domain claim. USAID helped establish the Foundation for the Philippine Environment with a $23.0 million endowment fund to support non governmental organization projects that assist communities in protecting national parks and other critical habitats. Major policies also have been revised to support the ongoing widespread implementation of communityЉbased forest resource management. Coastal Resources Management: Implementation started in FY 1996. Under this activity, the management of coastal resources will be assumed by local, communityЉbased user groups with support from local governments. In the next six years, success will be achieved when a growing number of communities develop skills to identify resource and environmental problems and initiate local actions that bring about sustainable management of coastal resources. Donor coordination will be key to achieving sufficient coverage to avert the collapse of additional fisheries. Industrial Environmental Management: In the industrial sector, more than 115 corporations have successfully reduced wastes and have increased efficiency and profits. This represents 97% of the industrial corporations that have conducted pollutionЉmanagement appraisals. U.S. expertise and technologies were critical in this success. A policy framework for programmatic compliance under the Philippine environmental impact statement was developed. Studies and dialogues to rationalize policies on industrial pollution and to increase public and private sector communication and participation are being conducted and will be used to establish new procedures and standards. Over 2,500 individuals from the government and private sector have received training on industrial environment management. УУDescription:ФФ USAID channels its efforts mainly through U.S. contractors to achieve the following: Forestry Resources Management: Upland communities will be assisted in securing management authority and responsibility for the country's public forest lands. This forest land will be converted from open access conditions into communityЉmanaged enterprises. By applying sustainable management systems, our beneficiaries will provide 25% of domestic demand for solid wood products by 1999.Œ™Coastal Resources Management: Over the next six years, USAID's efforts will lead to communities controlling access to, and practicing management for, sustainable harvests in coastal waters along 3,000 kilometers of shoreline. In return, these communities are expected to supply 25% of national harvest from coastal waters by 2002. Industrial Environmental Management: USAID's efforts will lead to increased private investment in pollutionЉabatement practices. By 1996, these investments will reduce pollution by participating industries by 20%. (New targets are to be determined in the followЉon activities.) ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааУУHost Country and Other Donors:ФФ The Program is implemented directly with the GOP and closely coordinated initiatives by the World Bank, Japan, the Asian Development Bank, Canada, and Sweden. USAID also works with groups such as the U.S. Coast Guard and National Academy of Sciences. УУBeneficiaries:ФФ The forestry resources management activity is working with upland communities in Mindanao, Palawan, and Northern Luzon (those regions of the Philippines with the greatest remaining residual forest). The coastal resources management activity will target coastal communities in Palawan, the country's richest fishery, the Central Visayas where USAID can build on previous initiatives in communityЉbased resource management and Mindanao. The industrial environmental management activity concentrates on businesses and industrial sectors that pose some of the greatest risks to the environment, including those in the coastal zone. УУPrincipal Contractors, Grantees, or Agencies:ФФ USAID implements activities through GOP agencies, U.S. contractors, and U.S. and local NGOs. Major contractors include Development Alternatives; PRCЉ Environment Inc. and the Academy for Educational Development. УУMajor Results Indicators:ФФСИ И ССССhh#ССРР(СУУ ФФССС` ` ССИ И ССССhh#ССРР(ССpp2СУУBaselineФФС  <С УУTargetФФ 500,000 hectares (14%) of residual forests managed Сpp2С5,000 (1994) С  <С 500,000 (1999) sustainably by communityЉbased enterprises Coastal waters along 3,000 kilometers (17%) of shorelineСpp2С0 (1995)С  <С 3000 (2002) managed for sustainable harvest 20% reduction in pollution discharges in participatingСpp2С10% (1994) 20% (1996) facilities in industrial and municipal locations а АААА аааУ УACTIVITY DATA SHEETФ Фаа У УPROGRAM:Ф Ф PHILIPPINES У УTITLE AND NUMBER:Ф Ф Reduced Emission of Greenhouse Gases, 492ЉSO05 У УSTATUS:Ф Ф Continuing У УPROPOSED OBLIGATION AND FUNDING SOURCE:Ф Ф FY 1997 $3,000,000 DA У УINITIAL OBLIGATION:Ф Ф FY 1995; У УESTIMATED COMPLETION DATE:Ф Ф FY 2002 УУPurposeФФ: To mitigate emissions of greenhouse gases (GHGs) from the power industry through the use of cleaner fuels and improved energy efficiency. УУBackground:ФФ The Intergovernmental Panel on Climate Change, composed of 2,500 scientists, has recently reached a consensus that GHG emissions, primarily from the burning of fossil fuels, are associated with the phenomena of global warming and climate change, which in turn may have serious and farЉreaching implications for the wellЉbeing of mankind and the planet earth. In addition, 154 heads of state signed the Framework Convention on Climate Change in 1992, signaling political recognition by national leaders of the need to mitigate the effects of global warming. USAID's global climate change mitigation strategy in the Philippines is to reduce GHG emissions from the power industry, which was responsible for 34% of GHG emissions in 1990. USAID's construction of its GHG emissions mitigation options portfolio (GEMOP) for reduced GHG emissions focuses on promoting the use of cleaner fuels (fossil fuels and renewable energies), more efficient generation by the power industry, and more efficient distribution and use of electricity. The program builds on extensive U.S. experience in the promotion of an environmentallyЉfriendly and efficient power industry, and provides increased opportunities for the U.S. private sector to invest in the rapidly expanding power industry associated with the country's expected high rates of economic growth. A total of 25 greenhouse gas mitigation activities are planned until year 2002. USAID/Manila has developed a metholodogy to measure mitigation impacts of global and local emissions. The mitigation impacts are measured by the weight of metric tons of carbon dioxide (COУУ2ФФ) equivalents and sulphur dioxide (SOУУ2ФФ) avoided by the use of cleaner burning fuel options (such as natural gas and cleanЉcoal technology), and by power industry and endЉuse efficiency options (such as improved efficiency of generation, transmission and distribution), as well as endЉuse consumption of electricity, especially of the industrial and commercial sectors. Other qualitative indicators include the restructuring and privatization of the energy sector, which is expected to result in greater energy and fuel efficiency, privatization of power plants and transmission facilities (including BuildЉOperateЉTransfer projects), the promotion of the use of more efficient power plant technologies, and a more competitive pricing of fuel. USAID has been in the forefront of providing policy support to the GOP's Department of Energy (DOE) and National Electrification Administration (NEA), through the conduct of policy studies in support of restructuring the power sector and provision of technical assistance, training and commodities. УУUSAID Role and Achievements to DateФФ: From 1988 to 1996, USAID has been involved in improving the efficiency of the rural electrification program of the Philippines. To date, 242,000 metric tons (MT) of COУУ2ФФ equivalent and 2,000 MT of SOУУ2ФФ emissions have been eliminated, through the activities of USAID's Rural Electrification project. Line losses were reduced by an average of 3% by electric cooperatives, thereby avoiding the construction and operation of 31 megawatt of "dirty" coal plant capacity. This achievement is a result of the first activity under the mitigation option to improve the efficiency of the distribution sector of the power industry. USAID has been the only agency to date to provide the GOP with funding to assist in the establishment of a natural gas industry in the Philippines. As a result of USAID assistance to the GOP build, operate and transfer (BOT) program, by December 1995, a total of 23 BOT projects costing $6.4 billion (40% of which were contracted to U.S. firms) and with a combined generating capacity of 3,580 megawatts, were put on stream. To the extent that these plants use cleaner burning fuels than coal and operate efficiently, they contribute to the objective of reduced GHG emissions. (An analysis of avoided BOT GHG emissions will be completed by April 1996.) УУDescriptionФФ: Effective and efficient achievement of this activity's performance results will require $3.0 million per year for policyЉbased activities to GOP energy sector agencies which target natural gas, clean coal, and power industry efficiencyЉrelated activities. Targeting these three areas for additional funds not only greatly enhances the likelihood of achieving this objective's targets, but also supports the three highestЉpriority policy areas of the GOP. Annual performanceЉbased monitoring of a comprehensive range of 25 GHG mitigation activities will allow USAID, in consultation with Global climate change mitigation team members, to fineЉtune the match between highЉimpact activities and this activity. USAID's partnership with GOP has enhanced its position to lead in climate change mitigation efforts and in the restructuring and privatization of the power industry. ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#€%и'0*ˆ,р.813џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааУУHost Country and Other DonorsФФ: USAID Manila is collaborating with 10 other U.S. Government agencies such as Department of Energy (DOE), State Department, Environmental Protection Agency, NOAA, NAS) in implementing the country studies program to reduce GHG emissions, with 12 Philippine government agencies in the InterЉAgency Climate Change Committee (IACCC) and with several environment sector non governmental organizations. USAID technical assistance grants to improve energy sector policies are providing the basis for other donors and multilateral banks, e.g., World Bank and Asian Development Bank (ADB), to extend energy loans to the Philippines. USAID also collaborates with U.N. Development Program, ESCAP, and bilateral agencies of Germany, Australia, Switzerland, the Netherlands, United Kingdom, and Japan in efforts to reduce GHG emissions from the power industry. USAID and ADB are each providing DOE with $500,000 in gas sector policy assistance. УУBeneficiariesФФ: By 2005, the GOP intends to reduce GHG emissions by 20% of 1990 levels. Implementation of USAID's Program will assist the GOP in avoiding 18% of 1990 emission levels by 2002. The 12 IACCC agencies tasked with this GOP mandate will directly benefit from USAID assistance. Indirect beneficiaries include those firms and agencies which gain experience in the implementation of an environmentally friendly power industry. The range of impacts associated with unmitigated global climate change patterns have the potential to adversely affect global ecosystems and life in general as we know it on the planet earth. Examples are the increased severity of weather extremes of all categories (e.g., typhoons, droughts and floods) and associated losses in life, infrastructure, and food supplies, new geographical niches for deadly diseases, and death from heat exposure. The converse is also true: the benefits will cross national boundaries and extend into the future for generations. Residents of the Philippines will directly benefit in avoided health care costs from reduced GHG emissions with primarily local impacts, such as SOУУ2ФФ and dozens of other airЉborne power industry pollutants. УУPrincipal Contractors, Grantees or AgenciesФФ: USAID implements activities through GOP agencies, U.S. contractors, and NGOs. Major contractors include Resource Management International, the International Energy Investments, Winrock International and K&M Engineering. УУMajor Results Indicators:ФФСИ И С ССС` ` ССИ И ССССhh#ССРР(ССpp2ССШШ7С УУBaselineФФ СxxAС УУTargetФФ Thousand metric tons of avoided global emissions Сpp2ССШШ7С 0 (1995) 19,155 (2002) through the use of cleaner fuels Thousand metric tons of avoided global emissions Сpp2С242 (1995) 1,665 (2002) through improved energy efficiency Thousand metric tons of avoided local emissions Сpp2С 0 (1995) 225 (2002) through the use of Cleaner Fuels Thousand Metric tons of avoided local emissions Сpp2С 2 (1995) 14 (2002) ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И p а (#€%и'0*ˆ,р.813џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааthrough improved energy efficiencyб#Тd Œ @ЩЧ;є@#б ааУ Уб#єixа№P7ћєP#бACTIVITY DATA SHEETФ Ф аа У УPROGRAM:Ф Ф PHILIPPINESУ У TITLE AND NUMBER: Ф ФBroadened Participation in the Formulation and Implementation of Public Policies in Selected AreasУ У, Ф Ф492ЉSO06У У STATUS:Ф Ф ContinuingУ У PROPOSED OBLIGATION AND FUNDING SOURCE:Ф Ф FY 1997 $12,000,000 DAУ У INITIAL OBLIGATION:Ф Ф FY 1995;У У ESTIMATED COMPLETION DATE:Ф Ф FY2000У У Ф Ф УУУ УPurposeФ ФФФ: To broaden participation in the formulation and implementation of public policies in selected areas. УУBackgroundФФ: In 1986, the Philippine people rose against and ended 14 years of authoritarian rule. Today, the Government of the Philippines (GOP) and its people have identified and proclaimed their desires to follow the road of democraticЉled economic development. The result is an expansive and maturing non governmental sector, a pathЉbreaking decentralization of authority and resources to local governments, and a growing recognition of the need for perpetual vigilance to protect democratic process. However, for sustainability of the nation's democratic processes, its highly personalized political institutions need to be professionalized. Its extremely diverse non governmental sector needs cohesion. Important elements of the population (e.g., urban poor, indigenous people, fisherfolk) must achieve meaningful participation in the political process. The handful of nascent groups addressing the protection of democratic processes must be strengthened. Lastly, those who either purposely seek to restrict devolution and decentralization and those who remain skeptical of the viability and sustainability of democracy in the Philippines must be shown that responsive, effective, and innovative democracy is a Philippine reality. УУUSAID Role and Achievements to DateФФ: USAID completed two projects which have helped the GOP implement the 1991 local government code. As a result, revenueЉsharing rose from $400 million in 1991 to roughly $2.0 billion in 1995. Approximately, 70,000 government employees were transferred from the national to local governments. Non governmental organizations (NGOs) have been incorporated in local councils to ensure broadЉbased participation, and provisions for recall and referenda have been established. ССааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4Œ ф <”ьDœєLЄќ!T$Ќ&)\+Д- 0d2М4џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАмааDuring the past years, USAID assisted over 200 nonЉprofit organizations. The coЉfinancing of private voluntary organizations (PVO) activities evolved from meeting basic needs of less privileged populations to capacity building of indigenous PVOs to enhancing the role of PVOs as intermediary institutions and partners of government. USAID's previous assistance laid the foundation for a strong Philippine civil society. The mushrooming of competent and genuine peoples' organizations and community associations now provide the constituency base for policy and legislative reform. These associations also are better equipped to participate in local governments' special bodies. Several key PVOs now provide strategic leadership to coalitions of the disadvantaged. Involvement of PVOs and peoples' organizations in the planning process allowed the integration of community needs in local development plans and national legislation. For instance, the use of a community data board as input to the municipal development plans of several Mindanao provinces has safeguarded the delivery of basic services to the village level. PVO involvement in the drafting of the National Health Insurance Act ensured that the disadvantaged were not excluded from the benefits arising from this law. Support to alternative legal groups and various local PVOs resulted in varying degrees of success on such issues as ancestral domains, access to fishery resources, rape, and sexual harassment. Key PVOs also were able to advocate for a favorable tax environment which will sustain private sector contributions to developmental projects for the disadvantaged. УУDescriptionФФ: USAID will directly assist in the establishment of effective local governance with a broadЉbased participation and strengthening of the leagues of provinces, municipalities, and cities. Assistance will be provided to local government units (LGUs) of ten provinces and their municipalities and cities. Premised on "assisted selfЉreliance," the assistance will use participatory mechanisms to innovate and effectively implement service delivery systems that establish new performance benchmarks in critical areas of local government responsibility. These will include resource mobilization, investment prioritization and promotion, and environmental planning and management. The participatory process will revolve around the revolutionary Local Government Code provision for local special bodies wherein not less than 25% of membership should come from NGOs. ŒFor critical groups whose interests either fall outside the context of the local government programs or concerned issues which cannot be solved by local solutions, USAID will assist them to unite into coalitions consisting of memberЉcontrolled associations working to promote their underЉrepresented interests. Over the next five years, a critical core of nine major coalitions or alliances will be created, broadened, and strengthened. The coalitions will be linked to centers of power, and strengthened to the point where they are able to analyze and debate public policy issues and to participate in the public policy arena. Illustrative of the respective critical issues are: wages and labor law violations, land rights and tenure, and equitable management of resources. In a special 18Љmonth initiative USAID will assist nascent proЉdemocracy organizations to formulate a Philippine democratic action agenda leading to a better articulated and broadly supported policy recommendation for the protection and promotion of the democratic process. УУHost Country and Other DonorsФФ: The Ford Foundation supports research on local governance and capacity strengthening of indigenous people's groups. The leagues of governance (provincial, municipal, and cities) are reorganizing for leadership in decentralized government policy and practices. Major NGOs, such as Philippine Business for Social Progress and the Ayala and Mondragon foundations are putting in substantial matching resources to strengthen civil society. Canada supports capacity building of both local governments and NGOs; and various local academic institutions serve as democracy and decentralization monitors, evaluators, and policy option generators. УУBeneficiariesФФ: Beneficiaries are: (1) the citizens of 10% of the Philippine local who have committed to improve governance with broad participation; (2) coalitions and coalition members of socioЉeconomically disadvantaged and underЉrepresented groups and interests; and (3) those interested in expanding their understanding of and assistance to democracy in the Philippines. УУPrincipal Contractors, Grantee or AgenciesФФ: USAID implements activities through U.S. and Philippine private consulting firms, U.S. and local NGOs, and the Philippine Leagues of city, provincial and municipal governments. УУMajor Results Indicators:У У ФФССС` ` ССИ И ССССhh#ССРР(СС-СФ ФУУBaselineФФ (1995)СШШ7СУУTargetФФУ У ааФ Ф Number of NGO representatives actively participating in local special bodiesСhh#ССРР(СС-С296 NGOsСШШ7СС  <С1,600 NGOs(1999) Percent of people who feel their priority concerns are being addressed by local govt.СРР(С45%С-ССpp2ССШШ7С75%(1999) Number of total disadvantaged impacted by coalitionsУ УС` ` С ССФ ФЉ FisherfolkСИ И ССССhh#ССРР(СС-С600,000СШШ7СС  <С2,000,000(1998) У УССФ ФЉ Urban PoorСИ И ССССhh#ССРР(СС-С 75,000У УСШШ7СС  <СФ Ф 175,000(1998)Са а FСССЉ Indigenous peopleСССhh#ССРР(СС-С 65,000 У УСШШ7СФ ФС  <С4,000,000(1998) Major issues addressed by coalition documented in narrativesСССhh#С СРР(СС-С NAСpp2ССШШ7СС  <С NA ааУ УACTIVITY DATA SHEETаа PROGRAM:Ф Ф PHILIPPINES У УTITLE AND NUMBER:Ф Ф HIV/AIDS Epidemic Prevented, 492ЉSP01 У УSTATUS:Ф Ф Continuing У УPROPOSED OBLIGATION AND FUNDING SOURCE:Ф Ф FY 1997: $2,150,000 DA У УINITIAL OBLIGATION:Ф ФСИ И СFY 1995; У УESTIMATED COMPLETION DATE:Ф Ф FY 2000 УУPurposeФФ: To prevent an HIV/AIDS epidemic by (1) monitoring the prevalence and transmission of HIV infection, and (2) encouraging behaviors which reduce HIV transmissions. УУBackgroundФФ: Epidemiological data in the Philippines indicate that the prevalence of HIV infection is still low compared to other countries in the region, such as Thailand, Myanmar (formally Burma) and Cambodia. Nevertheless, given the existence of a high sexually transmitted disease (STD) prevalence rate aggravated by high risk behaviors, it is reasonable to assume that the debilitating epidemic experienced by other Asian countries could occur in the Philippines unless efforts are made now to prevent the rapid spread of HIV. The Philippines has a "window of opportunity" to prevent extensive spread of HIV infections in the general population if highЉrisk groups change their behavior now. A second opportunity exists to develop a sustainable HIV prevention model for low prevalence countries with highЉrisk factors for sexual transmission. УУUSAID Role and Achievements to DateФФ: USAID is assisting the Government of the Philippines (GOP) Department of Health, non governmental organizations (NGOs) and other government organizations to: (1) implement a national sentinel surveillance system to monitor the transmission of the disease and risk behaviors among population groups at risk; (2) develop and implement effective communication and behavioral change programs about AIDS prevention before AIDS reaches major epidemic proportions in the Philippines; (3) design a national safe voluntary blood bank system; and (4) establish model sites for STD care and management. The fifth round of the national HIV sentinel surveillance system of the GOP's Department of Health was conducted in September 1995. Survey results show that HIV prevalence rate among target risk groups has been maintained at a low level (0.11% compared to the 3.0% alarm level). The percentage of women and men at risk in 1995, who adopt safe sex practices, also has increased from 23% to 48% for women and from 2% to 13% for men at risk from 1993 baseline data. Sentinel surveillance systems have been established in eight geographic sites. There is close coordination between the United States and Japan on the AIDS program, which enables them to do complementary activities: Japan's HIV/AIDS project focuses on strengthening HIV/AIDS and STD prevention and control through provision of laboratory equipment, training and technical assistance to those sentinel surveillance sites supported by USAID. УУ DescriptionФФ: USAID has designed a program to control HIV/AIDS transmission within the Philippine population by institutionalizing public and private sector mechanisms for monitoring HIV prevalence and by encouraging behaviors which reduce individual risk for contracting or transmitting HIV. A sentinel surveillance system for monitoring HIV seroprevalence in the Philippines is being implemented under the program. Mass media and information, education and communication programs which help reduce HIV transmission among individuals at risk are being implemented under the education component of the project. USAID assists the GOP's Department of Health to develop a strategy and plan of action for a safe blood supply system. With USAID support, the GOP and NGOs will develop, implement and evaluate a set of STD interventions among groups with high prevalence of STDs in selected sentinel cities. Expansion of HIV/AIDS prevention education programs and STD interventions for target risk groups at additional areas will require additional funding in FY 1997 and beyond. УУHost Country and Other DonorsФФ: The GOP launched a national AIDS prevention and control program (NAPCP) in 1988, following collaboration with the World Health Organization's (WHO) Global Program for AIDS , and began implementing a mediumЉterm plan for the prevention and control of AIDS in the Philippines. USAID has been and continues to be the largest contributor to the NAPCP. USAID also channels funds through the WHO for the surveillance activities. Australia is contributing $2.8 million for 1993Љ1997. Through the U.S.ЉJapan Common Agenda, Japan's support to the AIDS program has increased to about $1.3 million in 1995. USAID meets frequently with other donors so that activities will not be duplicative and will be mutually supportive of the programs of the GOP. УУBeneficiariesФФ: Direct beneficiaries are people in target risk groups. Indirect beneficiaries include all persons in the Philippines who will face a lower risk of contracting AIDS and who will benefit from a relatively modest AIDSЉrelated drain on scarce financial and human resources. УУPrincipal Contractors, Grantees, or AgenciesФФ: USAID implements the program through the GOP's Department of Health, World Health Organization, Program for Appropriate Technology in Health (PATH) and grants to local NGOs. УУMajor Results Indicators:ФФ ССС` ` ССИ И ССССhh#ССРР(СС-ССpp2СУУBaselineФФС  <ССxxAСУУTargetФФ Percent HIV seroprevalence rate among target risk groupsСИ И ССССhh#ССРР(С 0.04% (1993)* СШШ7С <3.0% (2000) б#єx Œ @ЩЧ;X@#б_________________ б#єixа№P7ћєP#б* Source: Field Epidemiology Training ProgramЉDepartment of Health National HIV Sentinel Surveillance Surveysб#єx Œ @ЩЧ;X@#б