Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
PHILIPPINES
FY 1998 Development Assistance: .......... $50,561,000 Introduction
Twenty years of the Marcos dictatorship, which ended in the 1985 Revolution, left the Philippines one of the most inward-looking and poverty-stricken 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 (MAI), under which the United States and other major donors have played a critical role in support of the ongoing economic and political transition.
One of the most obvious results of this transition so far has been the increase in gross national product (GNP) growth, which exceeded 5% in 1994 and 1995, and accelerated further to over 7% in the first half of 1996. Concurrently, trade with the U.S. has blossomed, doubling overall since 1990 and with the Philippines importing over $5 billion of U.S. exports in 1995. The United States also maintained its position in 1995 as the largest foreign equity 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 English-speaking country in East and Southeast Asia. The United States has supported both the macroeconomic reforms and many sector-specific initiatives which are fostering such trade and investment growth. For instance, USAID's technical assistance support for build-operate-transfer (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, and $1.3 billion in FY 1996.
The Government of the Philippines (GOP) continues to implement the terms of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The GOP has initiated a seven-year process to convert quotas to tariffs and reduce tariffs from an average rate of 31% to 5%, and has implemented an expanded value-added 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.
Concomitant with economic reform has been substantial progress in recognizing the tremendous social and environmental challenges to sustainable progress. The Philippines Local Government Code, already widely regarded as dramatic reform in decentralization, is being used to mobilize local communities to address pressing problems in environmental management, health services and infrastructure development. Simultaneously, the most disadvantaged groups are finding new ways to "weigh in" during crucial debates and resource allocation decisions on both the national and local levels. In addition to support for the empowerment process itself, U.S. assistance is helping to assure that the outcomes of enhanced democracy will be clearly perceived as effectively addressing such critical concerns of the most vulnerable sectors of society as overpopulation, HIV/AIDS, degradation of forest and coastal resource, and lack of access to financial credit.
The Development Challenge
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 8.4%. Improved economic conditions have resulted in a reduction in poverty incidence from 44% in 1991 to 41% in 1994. However, Philippine poverty incidence is still high compared to other Association of Southeast Asian Nations (ASEAN).In contrast with the 1970s and 1980s, when economic growth was fueled by debt-financed government expenditure and private consumption, current economic performance is likely to be sustainable. It is drivenby expanding international trade and rising private sector fixed capital formation. Both domestic and foreign investment has shown large year-to-year increases, and exports expanded by 20% in 1994 and by 29% in 1995. In the first eight months of 1996, export growth decelerated to 16.5% but this is still above the single digit export growth of the Asian tiger economies. The inflation rate slowed further from 9% in 1994 to 8.1% in 1995, and has remained single digit in the first 10 months of 1996. The balance of payments showed an all time high ($4 billion) surplus in the first ten months of 1996 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 55% in 1995. In 1996, the ratio is forecast to decline further to 43%. The debt service ratio to exports has declined from 31.8% in 1990 to 14.6% in 1995 and to 12.8% in the first semester of 1996. In absolute dollar terms, however, total debt ($37.9 billion as of mid-1996) is still high.
Notwithstanding recent successes, democracy in the Philippines is still in the process of consolidation, and its economy lags behind its ASEAN partners in competitiveness, size, quality of basic infrastructure, rate of economic growth, and success in reducing poverty. Public confidence in the 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. The 2.32% population growth rate, cast against rapid natural resource depletion, represents a national and global issue 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 Mindanao peace initiative signed in September 1996 is a vital step in creating a welcoming environment for private investment and trade in an area of high growth potential. With an ongoing Mindanao-wide program, the United States is well positioned to be helpful in assisting this historic process, and in facilitating increased participation of other donors. The United States faces the challenge of helping implement measures that will lower the risk to private investment, expand commerce, and break bottlenecks for businessmen and investors, thus ultimately contributing to the peace initiative itself.
The GOP has set ambitious goals to direct the country toward newly industrialized country 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:
--
Expand trade, investment, and income growth throughout Mindanao, an island representing over 25% of the population, which is a regional source of political unrest and poverty, and which contains vast agricultural and natural resource-based production potential;--
Complete ongoing national reforms in trade and investment, micro-finance, capital markets, and fiscal management;--
Reduce the fertility rate and improve maternal and child health; help minimize the risk of a major AIDS epidemic in the Philippines;--
Establish community-based management systems to preserve coastal and forest resources;--
Reduce industrial and energy-based pollution and its impact on global warming; and--
Expand citizen participation in public policy-making 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 1991 to 3.1 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 impressive growth in family incomes.
In local government, the U.S.-assisted 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 and policy influence at the regional and national levels. In addition, the USAID/Philippines provides regional administrative and program support for Mongolia and Vietnam and administrative support for Cambodia.
Other Donors
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) $300-$400 million. Other major bilateral donors -- the United States, Australia, Canada, Germany, and the European Union -- accounted for about one-fifth 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. - 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.
FY 1998 Program
The United States actively supports a new U.S.-Philippines 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).
Agency Goal: Encouraging Broad-based Economic Growth
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. The recent signing of the Mindanao Peace Agreement presents an opportunity for the United States to contribute to the strengthening of the fledgling peace initiative, and at the same time, boost the participation of American firms in the economic growth that is expected to result from the improved security situation. 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 Mindanao 2000 Blueprint for Development 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.-funded infrastructure continues to stimulate private sector investments andthe production of high-value agricultural crops. U.S.-financed 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' long-established trade and investment barriers. The United States provides grants for research and coalition-building, which lead, in turn, to further improvements in trade, investment, and finance policies. This is expected to create expanded opportunities for U.S. businesses. Indeed, U.S. support has been critical to the creation of many of the Philippines' forward-thinking business coalitions. The United States supported the adoption of a new policy of self-regulation 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 is also assisting the GOP to deregulate the Philippines telecommunications sector. Through USAID's continued support to the 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.
The United States will pursue additional trade and investment liberalization and promotion programs including those beyond the World Trade Organization agreement and in the context of the Asia Pacific Economic Cooperation initiatives. USAID will implement these activities toward accelerating new markets and expanding investment options for U.S. business to take full advantage of opportunities in areas including environmental protection; BOT activities in power, transportation, water supply and solid waste management; telecommunications and information technology; and in the fishing, trucking and shipping, agribusiness and infrastructure sectors in Mindanao.
* Strategic Objective 1: Broad-based economic growth in Mindanao.
* Strategic Objective 2: Improved national systems for trade and investment.
Agency Goal: Stabilizing World Population Growth and Protecting Human Health
The current administration gives high priority to child survival and family planning in this largely Catholic country. Given this commitment, the United States has an opportunity to help expand rapidly maternal and child health and family planning programs 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 for 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; performance-based 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 with U.S. assistance performance-based management systems for delivering health care services at the local government level. Under this system, the United States, the GOP and local government units define objectives and achieve results collaboratively.
Actual results have exceeded targets. A recent survey shows that the overall contraceptive prevalence rate has increased from 40% in 1993 to 48.1% in 1996; for modern methods, the rate has risen from 25.2% in 1993 to 30.2% in 1996. Infant mortality has dropped to 49 in 1995, below the target of 53. In 1995, 86.4%of children between 12 and 23 months old were fully immunized. With respect to HIV/AIDS activities, the sixth round of the government's national HIV sentinel surveillance system shows that the HIV prevalence rate in populations engaged in high-risk behavior remains relatively low, below 1%, compared with prevalence rates in the Asian region. (The alarm level for these populations as identified by the World Health Organization 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. A pledge of commitment to support population programs was signed by the heads of 12 major government departments and President Fidel Ramos in February 1996. 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 non-governmental organizations (NGOs), and numerous small NGOs, have collaborated with the GOP to deliver health and maternal child health and family planning services.
* Strategic Objective 3: Reduced fertility rate and improved maternal and child health.
* Special Objective: Rapid Increase of HIV/AIDS Prevented.
Agency Goal: Protecting the Environment
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 policies now emphasize equitable access to natural resources, the need to limit utilization to the resource's carrying capacity, and the participation of citizens in the development and implementation of resource management policies and programs. For example, in October 1996, the GOP formally adopted community-based approaches as its principal strategy for public forest management and put in place several key policy changes that facilitate more rapid expansion of area under direct community management.
The Local Government Code of 1991 has devolved the control over municipal waters to the local government units who can implement more sound and meaningful resource management ordinances and programs. Two critical laws geared towards effective resource management are being reviewed by the Philippine Congress. U.S. technical assistance is providing support to the GOP to put these key policies in place.
With U.S. assistance, coverage of forested area under community forest management has increased from 5,000 hectares in 1994 to approximately 250,000 hectares in 1996. Also with U.S. assistance, the GOP has issued to indigenous cultural communities certificates of ancestral domain covering almost one million hectares, the first step in allocating resource rights to upland indigenous communities.
In August 1996, USAID funded the establishment of a Center of Excellence in Coastal Resources Management. As a Center, it will relate to other USAID activities and assistance being provided to the GOP under the Natural Resources Management Program. The GOP hosted the International Coral Reef Initiative Workshop in 1995. Subsequently, USAID has supported a number of participatory coastal resources management activities to help coastal communities and their local governments develop and adopt sustainable management systems over their fishery resources along 3,000 km of coastline. USAID iscoordinating the efforts with other donor initiatives to achieve the strategic spread of sustainable fishery management.
The GOP's emphasis on the brown sector is indicated by the support of the Philippine's House of Representatives for the Philippine Environmental Code. The Code grants the GOP's Department of Natural Resources the legal mandate to fundamentally change environmental management in the Philippines. The Industrial Environment Management activity of USAID showed that 143 industrial firms volunteering for pollution management appraisals invested more than $32 million in pollution abatement technologies. This resulted in a 26% reduction in pollution discharge of participating firms. There is a trade component as well. The U.S.-Asia Environmental Partnership encourages the adoption of advanced U.S. environmental technologies, while also promoting cost savings at the level of the firm, through the promotion of Clean Technology and Environmental Management to key industries.
The United States has been in the forefront in providing support to the GOP Department of Energy to improve energy sector policies. U.S assistance has been instrumental in promoting BOT financing mechanisms that have opened the door to private investment in power generation, and in the introduction of new, commercially viable, renewable energy and energy conservation technologies. The GOP has enacted several policies designed to reduce pollutants and emission of greenhouse gases. A tough clean air bill, with enforcement guidelines and penalties, an omnibus energy bill and an indigenous energy resources bill are all under consideration. The United States is working closely with the GOP to implement methodology that measures the impact of revised energy polices and approaches on global and local greenhouse gas emissions.
Despite progress in environmental policy and regulation, there remain gaps between problem recognition and resolution, policy issuance and implementation, regulation and management. Over the next few years, the United States will seek to introduce technologies, incentives, and information to narrow or eliminate these gaps.
* Strategic Objective 4: Enhanced management of renewable natural resources.
* Strategic Objective 5: Reduced emission of greenhouse gases.
Agency Goal: Building Democracy
Within the rapidly growing South East Asian region, the Philippines is the premier example of a vibrant economy in a democratic setting. The President is a well-respected spokesperson for democracy and human rights. His formulation of democracy emphasizes empowerment through civil society and development of local government. Countries of the South East Asian region are looking more and more to the Philippines for ideas on stimulating democratic development, such as labor management relations, conducting and monitoring elections, and fostering the growth of participatory democracy through civil society member-controlled organizations and local governments.
The United States brings unique capacities to building democracy in the Philippines. These capacities include a recognized pioneering role among donors in promoting democracy, an established credibility and role in supporting the local government movement, and a long-standing strategic role and credibility in working with non-governmental organizations. The U.S. program now also focuses on opening new arenas for the effective participation of disadvantaged and under-represented groups.
The U.S. program of assisted self-reliance entered into a new phase with the launching of USAID's Governance and Local Democracy activity to provide technical assistance to select provinces and municipalities in priority areas. USAID is also helping to strengthen the Leagues of Provinces, Cities, and Municipalities. USAID is now working actively with 212 local government units (provinces, cities and municipalities) to plan and implement hundreds of activities they have identified. The Leagues, with U.S. support, are collaborating with the Philippine Congress and executive branch departments to conduct athorough review of the Local Government Code after five years of actual implementation. They also are introducing innovations in environmental management, participatory planning, local revenue generation, credit financing, and local BOT mechanisms.
Achievements to date under the civil society program illustrate how the coalitions of the disadvantaged are participating and influencing public policy formulation and implementation. USAID support improves the coalitions' skills in research and analysis, informed and organized deliberations, and consensus building. Some of the public policies addressed by the coalitions include: 1) marginalized fisherfolk and the review of the government's Fisheries Sector Project; passage of the Fisheries Code; 2) urban poor and the Marcos decree which criminalizes squatting; and 3) indigenous peoples and the implementing rules of the Mining Act; passage of the Indigenous Peoples Rights Act.
* Strategic Objective 6: Broadened participation in formulation and implementation of public policies in selected areas.
PHILIPPINES FY 1998 PROGRAM SUMMARY
Encouraging Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environment Building Democracy Provi-ding Humani tarian Assist Total USAID Strategic Objectives 1. Broad-based Economic Growth in Mindanao 5,800,000 5,800,000 2. Improved National Systems for Trade and Investment 3,005,000 3,005,000 3. Reduced Fertility Rate and Improved Maternal and Child Health 20,506,000 20,506,000 4. Enhanced Management of Renewable Natural Resources 4,800,000 4,800,000 5. Reduced Emission of Greenhouse Gases 3,400,000 3,400,000 6. Broadened Participation in the Formulation and Implementation of Public Policies in Selected Areas 10,700,000 10,700,000 7. Special Objective: Rapid Increase of HIV/AIDS Prevented 2,350,000 2,350,000 Total Development Assistance 8,805,000 22,856,000 8,200,000 10,700,000 --- 50,561,000 Mission Director: Kenneth G. Schofield
ACTIVITY DATA SHEET PROGRAM: PHILIPPINES
TITLE AND NUMBER: Broad Based Economic Growth in Mindanao, 492-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $5,800,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To maximize people's participation in and benefits from increased public and private investments in the economy of the island of Mindanao.
Background: Mindanao constitutes more than a third of the land mass of the Philippines and is home to about one-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.
USAID Role and Achievements to Date: The program extends successful models for agricultural and entrepreneurial 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 agriculture-based economy of Mindanao.
Description: USAID focuses on an aggressive and broad-ranging 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 to 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.
Host Country and Other Donors: The ADB is interested in supporting the East Asia growth polygon initiatives. Australia is focusing on the Cagayan-Iligan 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 micro-financial 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.
Beneficiaries: In Mindanao, about 3.9 million people (55% of Mindanao's population) are considered poor; two-thirds 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.
Principal Contractors, Grantees, or Agencies: 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.
Major Results Indicators:
Baseline Target
Real growth in gross regional domestic
Product in Mindanao (GDP) 1.4(1984/85)1 5.0 (2000)
Real growth in income of families in the lower
50% income class in Mindanao 0.9(1985/93)2 3.0 (2000)
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1Source: Philippine National Accounts, National Statistics Board
2Family Income and Expenditure Survey, Philippine National Statistics Office and commissioned surveys
ACTIVITY DATA SHEET PROGRAM: PHILIPPINES
TITLE AND NUMBER: Improved National Systems for Trade and Investment, 492-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $3,005,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To create an environment conducive to trade and investment through liberalized policies, improved financial markets, and improved mobilization and allocation of fiscal resources.
Background: 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 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 (GATT); World Trade Organization and the Asia-Pacific 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.
USAID Role and Achievements to Date: 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 MAI. The MAI agenda called for maintaining an environment conducive to private sector-led investment and sustainable growth, and alleviation of widespread poverty. Among the 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 self-regulation 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, inter-island 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 2.01 (1995) per 100 population. In 1996, liberalization was advanced further with the legislation of Republic Act 8181 changing the basis for import valuation from home consumption value to the GATT valuation code of transaction value; elimination of negative list "c" of the Foreign Investment Act making permanent exceptions to the list; and elimination of remaining quota restrictions on sensitive agricultural items. USAID provided technical assistance that served as basis for advocacy efforts and legislative hearings. 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.
Description: 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. USAID will also support the implementation of these reform policies to upgrade the capability of local institutions to implement and sustain policy reform efforts.
Host Country and Other Donors: The following donors provide technical assistance and commodities in the following sectors: the Asian Development Bank for capital markets development, the World Bank for tax administration and also capital markets development, and Canadian International Development Agency forimproved 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.
Beneficiaries: 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.
Principal Contractors, Grantees, or Agencies: 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.
Major Results Indicators: Baseline* Target
Ratio of gross domestic capital formation
to gross domestic product (GDP) 25%(1994) 28%(2000)
Ratio of total exports plus
imports to GDP 74%(1989-94) 90%(2000)
Ratio of tax revenues to GDP
17%(1994) 22%(2000)
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*Source: Philippine National Accounts, National Statistical Coordination Board
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Reduced Fertility Rate and Improved Maternal and Child Health,
492-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $20,506,000 DA
INITIAL OBLIGATION: FY 1995 ; ESTIMATED COMPLETION DATE: FY 2000
Purpose: 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 survival interventions at the local government unit level.
Background: 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. When the current President assumed office, the family planning program was revived. In 1993, the use of modern contraceptives was only 25.2%. This low prevalence deprived women and children of the health benefits of proper child spacing and the avoidance of high-risk pregnancies. With the historic opportunity brought by the current administration's strong support for family planning, USAID renewed its support to the Philippine 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 1996 national family planning rider survey.
USAID Role and Achievements to Date: 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 -- the GOP's Department of Health, the Commission on Population, local government units, NGOs in the private voluntary and commercial sector -- to expand quality services. In addition, USAID supports four key child survival interventions: acute respiratory infection, expanded program on immunization, oral rehydration therapy, and micro-nutrient 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 Department of Health to: 1) promote and support the family planning and maternal child health programs at the local level; and 2) carry out functions, such as contraceptive logistics, that are more efficiently handled at 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 results of the 1996 national family planning rider survey, actual overall usage increased from 40.0% in 1993 to 48.1% in 1996. Modern contraceptive method use, including modern natural family planning methods, increased from 25.2% to 30.2%. 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 has examined closely the constraints faced by the private sector and has redesigned its NGO and private commercial sector efforts to expand their role in the family planning marketplace.
USAID support helps sustain the gains achieved by the GOP's maternal child health programs in the last five years. The 1995 estimate of infant mortality is 49, lower than the target of 53. Also, the percent of births to women in high risk groups declined from 62.4% in 1993 to 59.2% in 1996. The Philippines has attained over 90% vaccination rates for children under 5; after devolution, these rates have declined slightly but are still above the WHO recommended level of 80%. The local performance-based program 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.
Description: FY 1998 funds will support the local performance-based 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. Thirteen U.S. cooperating agencies will assist the Department of Health, the Commission on Population, NGOs 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 secondary analysis of the 1998 demographic and health survey results.
Host Country and Other Donors: USAID remains the largest donor to the Philippine National Family Planning Program. In 1995-99, 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, Australian AID, Asian Development Bank, European Union, and Germany Loan/Grant Agreement supports a five year $120 million 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.
Beneficiaries: The 10.0 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 1.9 million children under one year of age are the beneficiaries of the four key child survival interventions.
Principal Contractors, Grantees, or Agencies: 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.
Major Results Indicators:
Baseline1 Target
Total Fertility Rate1 4.1 (1991) 3.1 (2000)
Infant Mortality Rate2 57.0 (1990) 49.0 (2000)
Maternal Mortality Ratio1 209.0 (1990) 90.0 (2000)
Contraceptive Prevalence Rate(all methods)1 40.0% (1993) 50.5% (2000)
Contraceptive Prevalence Rate (modern methods)3 25.2% (1993) 35.7% (2000)
Percent of Births in High-Risk Groups1 62.4% (1993) 56.0% (2000)
________________________________
11993 Demographic and Health Survey
2GOP Infant Mortality Task Force
31993 Demographic and Health Survey, including modern natural family planning methods in the baseline and target
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Enhanced Management of Renewable Natural Resources, 492-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $4,800,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To enhance and sustain the management of natural resources by communities and businesses, and thereby prevent environmental collapse while the opportunity still exists.
Background: 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 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 policies that encourage 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, and an ever-increasing number of commercial businesses are now committing capital and labor to reverse the trend of environmental degradation and to sustain the resource base.
USAID Role and Achievements to Date: USAID was the first to develop a strategic initiative to help the GOP conceptualize and implement policies that support community-based resource management. The activity has three components: Coastal Resources Management, Forest Resources Management and Industrial Environmental Management. USAID's efforts are supporting community-based management for coastal and forest resources, and are promoting pollution abatement among the country's major industrial sectors. The following results have been achieved under the strategic objective:
Forestry Resources Management: USAID efforts have resulted in the development and publication of major policies that support the widespread implementation of community-based forest resource management. As a result of these policy changes and USAID's direct support, the GOP has signed 17 agreements that transfer management control of approximately 250,000 hectares to more than 200 different upland communities. In addition, the GOP has recognized the claims of indigenous tribal groups to more than one-million hectares of forest lands as ancestral domains. USAID also 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.
Coastal Resources Management: Under this activity, the management of coastal resources will be assumed by local, community-based user groups with support from the local governments. The Program conducted a participatory planning workshop with 32 local governments and secured their commitment and financial support for coastal resources management in their area. In the next five years, success will be achieved when a growing number of communities develop the necessary skills to identify resource and environmental problems and initiate coordinated local actions that bring about sustainable management of coastal resources. The program is aggressively pursing donor coordination to achieve sufficient coverage to avert the collapse of the Philippines' fishery resources.
Industrial Environmental Management: In the industrial sector, 127 corporations have successfully reduced wastes and have increased efficiency and profits. U.S. expertise and technologies were critical in this success. A policy framework for programmatic compliance of the Philippines' environmental impact assessment system and strengthening of the Environmental Impact Statement system was developed with the participation of industries and concerned national and regional government agencies. A management plan for toxic substances and hazardous wastes was developed for the GOP. Pollution discharge system is being tested to provide market-based instruments of pollution reduction.
Description: USAID channels its efforts mainly through U.S. contractors to achieve the following:
Forestry Resources Management: Assist upland communities to secure management authority and responsibility for at least 500,000 hectares of the country's public forest lands. This forest land will be converted from open access conditions into community-managed enterprises. By applying sustainable management systems, program beneficiaries will provide approximately 10% of domestic demand for solid wood products by 1999.
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 pollution-abatement practices. By 1996, these investments will reduce pollution by participating industries by 20%. (New targets are to be determined in the follow-on activities.)
Host Country and Other Donors: The Program is implemented directly with the GOP and closely coordinated with 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.
Beneficiaries: 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 community-based 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.
Principal Contractors, Grantees, or Agencies: USAID implements activities through GOP agencies, U.S. contractors, and U.S. and local NGOs. Major contractors include Development Alternatives, Inc.; PRC- Environment Inc. and the Academy for Educational Development.
Major Results Indicators:
Baseline Target
500,000 hectares (14%) of residual forests managed 5,000 (1994) 500,000 (1999)
sustainably by community-based enterprises
Coastal waters along 3,000 kilometers (17%) of shoreline 0 (1995) 3,000 (2002)
managed for sustainable harvest
20% reduction in pollution discharges in participating 10% (1994) 20% (1996)
facilities in industrial and municipal locations
ACTIVITY DATA SHEET PROGRAM: PHILIPPINES
TITLE AND NUMBER: Reduced Emission of Greenhouse Gases, 492-SO05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $3,400,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To mitigate emissions of greenhouse gases (GHGs) from the power industry through the use of cleaner fuels and improved energy efficiency.
Background: 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 far-reaching implications for the well-being of mankind. 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. Power industry emissions are expected to increase four-fold in the next 10 years as a result of the country's economic and population growth. USAID has developed a strategy for slowing this significant growth in GHG emissions from the power sector by expanding the use of cleaner fuels, and promoting more efficient generation, distribution and consumption of electricity. The program builds on USAID's past policy and program support to the GOP's National Electrification Administration and the Department of Energy, extensive U.S. experience in the promotion of environmentally-friendly and efficient power, that combined provide 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.
USAID is experimenting with a methodology to measure the impacts of global and local emissions of various mitigation efforts. Impact is measured in terms of metric tons of carbon dioxide (CO2) equivalents and sulphur dioxide (SO2) avoided by the use of cleaner fuels (such as natural gas, hydro and geothermal), and by improved efficiency in power generation, transmission, distribution and consumption.
USAID Role and Achievements to Date: Since 1995, USAID's efforts in the power sector have directly led to contracts to construct 5.6 megawatts of new power plants using renewable energy and the formation of the GOP team that will lead the development of an indigenous natural gas industry. USAID's past support for improved efficiency of the rural electrification system has helped eliminate about 400,000 metric tons (MT) of CO2 equivalent and 2,000 MT of SO2 emissions. Line losses have been reduced by an average of 3% by electric cooperatives, thereby avoiding needed investment of approximately $50 million to construct 50 megawatts of additional electricity generating capacity. In addition, the GOP has now incorporated Demand Side Management into its electricity regulatory framework. This change will encourage utilities to invest in end-use efficiency as well as power generation and distribution networks.
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-line. They contribute to the objective of reduced GHG emissions to the extent that these plants use cleaner burning fuels than coal and operate efficiently.
Description: Effective and efficient achievement of this activity's results will require $3.0 million per year. Efforts will target the development of natural gas, renewable energy, and clean coal, and greater end-use efficiency by industrial and commercial enterprises. Targeting these three areas for additional funds not only greatly enhances the likelihood of achieving this objective's targets, but also supports the three highest-priority policy areas of the GOP. Annual performance-based monitoring will allow USAID and the GOP toadjust activities for maximum impact. USAID's partnership with the GOP has enhanced its position to lead in climate change mitigation efforts.
Host Country and Other Donors: USAID is collaborating with 10 other U.S. Government agencies in implementing the country studies program to reduce GHG emissions, with 12 GOP agencies in the Inter-Agency Climate Change Committee (IACCC), and with several environment sector non-governmental and private sector 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, to extend energy loans to the Philippines. USAID also collaborates with the U.N. Development Program, Economic and Social Cooperation in Asia and the Pacific, and bilateral agencies of Germany, Australia, Switzerland, the Netherlands, United Kingdom, and Japan in efforts to reduce GHG emissions from the power industry.
Beneficiaries: The implementation of this program is expected to reduce projected emission levels for 2005 by 18%. The 12 IACCC agencies tasked with this GOP mandate will receive USAID assistance. Indirect beneficiaries include those firms and agencies that 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, 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 also will directly benefit in avoided health care costs from reduced local air-borne pollutants.
Principal Contractors, Grantees or Agencies: USAID implements activities through GOP agencies, U.S. contractors, and NGOs. Major contractors include Resource Management and Winrock International.
Major Results Indicators:
Baseline Target
Thousand metric tons of avoided global emissions 0 (1995) 19,155 (2002)
through the use of cleaner fuels
Thousand metric tons of avoided global emissions 242 (1995) 1,665 (2002)
through improved energy efficiency
Thousand metric tons of avoided local emissions 0 (1995) 225 (2002)
through the use of Cleaner Fuels
Thousand Metric tons of avoided local emissions 2 (1995) 14 (2002)
through improved energy efficiency
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Broadened Participation in the Formulation and Implementation of Public Policies in Selected Areas , 492-SO06
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $10,700,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To broaden participation in the formulation and implementation of public policies in selected areas.
Background: In 1986, the Filipino people ended 14 years of authoritarian rule. Today, the GOP and its people have identified and proclaimed their desires to follow the road of democratic-led economic development. The result is an expansive and maturing non-governmental sector, a path-breaking decentralization of authority and resources to local governments, and a growing recognition of the need for perpetual vigilance to protect democratic processes. 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.
USAID Role and Achievements to Date: USAID's assistance helped the GOP implement the 1991 Local Government Code. As a result, revenue-sharing rose from $400 million in 1991 to more than $2.0 billion in 1995 and approximately 70,000 government employees were transferred from the national to local governments. Non-governmental organizations (NGOs) are being incorporated into local councils to ensure broad-based participation. Under provisions of the 1991 legislation, the Code is currently being reviewed for possible revisions. USAID is assisting local government leagues in analytical work, and changes that will strengthen local autonomy and effectiveness seem virtually assured.
USAID's past assistance to over 200 non-profit organizations 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 current strategy supports coalitions of marginalized groups by increasing their participation in the public policy arena. Involvement of PVOs and peoples' organizations in planning is allowing the integration of community needs in local development plans and national legislation. Several provinces and dozens of municipalities are undertaking highly participatory investment planning exercises, and several municipalities have agreed to participatory management assessments that involve elected leaders, local government employees, and NGOs.
Achievements to date under the civil society program show how coalitions are influencing public policy formulation and implementation. Through USAID's assistance, a coalition of marginalized fisherfolk prompted a Congressional inquiry on the GOP's Fisheries Sector Project through an evaluation of the project and the supporting media campaign. The same coalition successfully pushed for a Congressional investigation of a major Manila Bay fish kill which highlighted the issue of industrial pollution. USAID's assistance has allowed the coalition to strengthen its research division, conduct crucial investigative work, monitor Congressional activities, and consequently has bolstered its credibility as a legitimate spokesgroup for the marginalized fisherfolk.
Through USAID's assistance, an urban poor coalition was able to participate in a major Anti-Poverty Summit of the Philippine government. Despite pressure from the GOP agencies to exclude the issue of squatting in the summit agenda, the coalition successfully argued its position to repeal Presidential Decree 772 whichcriminalizes squatting. This led to the certification by the Office of the President as a legislative priority the repeal of PD 722. USAID assistance helped tip the balance in the urban poor's ten-year battle for the repeal of this Marcos era decree.
USAID's assistance financed consultations with various indigenous groups on mining issues in Nueva Viscaya. Opposition to mining firms' operations stems from non-compliance with the Mining Act's implementing rules and regulations, lack of consultations with communities, or mining operations in lands claimed to be ancestral domains. Consequently, the indigenous groups are poised to participate in deliberations regarding the Act's implementation and to monitor compliance with implementing rules.
Description: USAID is providing assistance to local government units of ten provinces and their municipalities and cities. Premised on "assisted self-reliance," the assistance uses participatory mechanisms to innovate and implement service delivery systems that establish new performance standards. These include resource mobilization, investment prioritization and environmental planning and management. Participatory processes will revolve around the Local Government Code provision for local special bodies wherein not less than 25% of membership should come from NGOs.
USAID is assisting disadvantaged groups to unite into coalitions of member-controlled associations working to promote under-represented interests. Over four years, nine major coalitions or alliances will be established, 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: repeal of inappropriate laws, land rights and tenure, and equitable management of resources.
In a special 18-month initiative, USAID is assisting pro-democracy groups 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.
Host Country and Other Donors: The Ford Foundation supports research on local governance and capacity strengthening of indigenous people's groups. The local government leagues are assuming leadership in decentralized government policy and practices. Major NGOs are putting in substantial matching resources to strengthen civil society. Canada supports capacity building of local governments and NGOs; and various local academic institutions serve as democracy and decentralization monitors and policy option generators.
Beneficiaries: Beneficiaries are: (1) the citizens of 10% of Philippine local governments that have committed to work with USAID to improve governance with broad participation; (2) coalitions and coalition members of socio-economically disadvantaged and under-represented groups and interests; and (3) those interested in expanding their understanding of and assistance to democracy in the Philippines.
Principal Contractors, Grantee or Agencies: 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.
Results Indicators:
Baseline (1995) Target
Number of NGO representatives actively
participating in local special bodies 296 NGOs 778 NGOs(1999)
Percent of people who feel their priority
concerns are being addressed by local govt . 45% over 50%(1999)
Number of total disadvantaged impacted
by coalitions
- Fisherfolk 600,000 8.0 Million (1998)
- Urban Poor 75,000 10.0 Million (1998) - Indigenous people 65,000 6.0 Million (1998)
Informal Sector 13.0 Million (1998)
Coconut Farmers 3.4 Million (1999)
Microfinance Borrowers 5.0 Million (1998)
Major issues addressed by coalition
documented in narratives NA NA
ACTIVITY DATA SHEET PROGRAM: PHILIPPINES
TITLE AND NUMBER: Rapid Increase of HIV/AIDS Prevented, 492-SP01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $2,350,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To prevent an HIV/AIDS epidemic by (1) monitoring the prevalence and transmission of HIV infection, and (2) encouraging behaviors which reduce HIV transmissions.
Background: 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 high-risk groups change their behavior now. A second opportunity exists to develop a sustainable HIV prevention model for low prevalence countries with high-risk factors for sexual transmission.
USAID Role and Achievements to Date: USAID is assisting the GOP's 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 sixth round of the national HIV sentinel surveillance system of the GOP's Department of Health was conducted in April 1996. Survey results show that HIV prevalence rate among target risk groups has been maintained at a low level (below 1% among the target risk groups). The percentage of women and men at risk who adopt safe sex practices also has increased from 23% (1993) to 36% (1995) for women and from 2% (1993) to 9% (1995) for men. Sentinel surveillance systems have been established in ten geographic sites.
Close coordination between the United States and Japan on the AIDS program enables them to do complementary activities. Japan's HIV/AIDS project provides laboratory equipment, training and technical assistance to the sentinel surveillance sites supported by USAID.
Description: 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 program. 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 sites. Expansion of HIV/AIDS prevention education programs and STD interventions for target risk groups at additional areas will require additional funding in FY 1998 and beyond.
Host Country and Other Donors: 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 medium-term 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 1993-1997. Through the U.S.-Japan Common Agenda, Japan's support to the AIDS program has increased to about $1.45 million in 1996. USAID meets frequently with other donors to ensure complementarity of activities that are supportive of the programs of the GOP.
Beneficiaries: 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 AIDS-related drain on scarce financial and human resources.
Principal Contractors, Grantees, or Agencies: USAID implements the program through the GOP's Department of Health, World Health Organization, Program for Appropriate Technology in Health and grants to local NGOs.
Major Results Indicators:
Baseline Target
Percent HIV seroprevalence rate
among target risk groups <1.0% (1993)* <1.0% (2000)
_____________________
* Source: Field Epidemiology Training Program - Department of Health National HIV Sentinel Surveillance Surveys
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