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 1997 FY 1998 FY 1999 Actual Estimate Request Development Assistance.............. $ 42,900,000 $39,050,000 $46,825,000 Child Survival and Disease.......... 5,050,000 4,550,000 5,500,000
IntroductionThe current era of Philippine-American relations is characterized by a shared commitment to human rights and democratic governance; a mutual economic interest in promoting broad-based national and regional economic growth; a joint concern for opening markets and expanding trade; and a common interest in the global issues of environmental degradation, population growth and child survival. Trade with the United States has blossomed, more than doubling overall since 1990, with the Philippines importing over $6 billion of U.S. products in 1996. As a growing trade partner that shares our political ideals, the Philippines has the potential to emerge as a model free-market democracy in Asia.
Development Challenge
The Philippine Government's (GOP) economic reform efforts are paying off. The financial sector has so far withstood recent financial turmoil better than elsewhere in the region, thanks to relatively strong capitalization and sound lending practices. With a debt service ratio to exports of goods and services of about 12% in 1996, foreign debt has not been a major problem. The Government's strong commitment to sound management is further shown by its willingness to work with the International Monetary Fund (IMF) to meet the challenge of the recent financial instability through a "precautionary" program in 1998, even though the country is expected to graduate soon from more traditional IMF programs. As a result, many experts believe that the Philippines, unlike some other Asian countries, has an excellent chance of bouncing back quickly from the recent regional financial instability if it continues to pursue economic reforms. Under these circumstances, it is essential that USAID pursue its collaboration with the GOP in addressing regional financial turmoil; increasing competition; eliminating tariff and non-tariff barriers; improving intellectual property rights, fiscal policy and telecommunications policy; and facilitating the development of microenterprises.
The Philippines has one of the highest population growth rates in East Asia, 2.32%. USAID works with local governments, private commercial organizations and non-governmental organizations (NGOs) to meet the demand for family planning and child survival commodities and services. In addition, the Agency provides assistance to the GOP to develop policies and establish systems that support services delivered at the local government level. The country's burgeoning population is putting pressure on the natural resource base and contributing to the global problem of greenhouse gases. USAID is working with local communities to effectively manage forest and coastal resources and sustain income-generating capacities. The Agency is helping create industry demand for pollution abatement equipment and energy-efficient machinery, which can both increase profits and improve environmental quality. USAID is also helping the GOP promote cleaner forms of energy.
The Philippines' democratic, decentralized governance system is unique in the region, but the quality of governance is uneven, and access to Government is often closed to the disadvantaged. Through support for increased participation of the disadvantaged and efforts to improve the responsiveness of local governments, USAID helps expand access and improve local governance. These initiatives are supplemented by efforts to strengthen the capacity of Government at all levels to adopt sound economic policies and carry out social and environmental programs. The success of the peace agreement signed in 1996 between Muslim rebels and the GOP will depend on the degree to which the inhabitants of Muslim Mindanao benefit from increased economic growth and expanded
employment opportunities. USAID was the first donor to provide emergency livelihood assistance to the ex-combatants. The Emergency Livelihood Assistance Program is expanding employment and export promotion activities in Mindanao to the Muslim areas.
USAID has achieved significant results throughout the Philippines since its current strategy began in FY 1995. In Mindanao, USAID helped the private sector create 252,000 new jobs, associated with the export of $6.9 billion of higher-value products. Through support for policy reform measures, USAID has helped the GOP increase investor confidence in the country's economy. As a result, gross capital formation as a percentage of gross domestic product increased from 22.2% in 1995 to 24.9% in 1996. As a result of USAID assistance to the Philippine National Family Planning Program, modern contraceptive use has increased from 25.2% in 1993 to 30.9% in 1997 and the proportion of family planning services provided by the private sector increased from 18.2% in 1995 to 24.4% in 1997. Among those at greatest risk of being infected with AIDS, the use of condoms is increasing and HIV seroprevalence remains below 1%, due in part to USAID's educational programs to reduce high risk behaviors. In the environment sector, USAID helped 120 firms reduce pollution discharges by 29%. USAID assisted the GOP in decentralizing forest management control. As a result, more than a million acres of forests are now managed by 250 upland communities and the number of spots affected by illegal logging decreased by 97%. Forest clearing and burning has also dropped dramatically. Efforts to help industries and large energy consumers improve their energy efficiency avoided the emission of the equivalent of 438,000 metric tons of CO2. USAID encouraged oil companies to establish price differentials between leaded and unleaded gasoline and facilitated the issuance of an executive order eliminating leaded gasoline. Partly due to these efforts, lead emissions in Metropolitan Manila were reduced by at least 90 metric tons. USAID's work with coalitions of NGOs and People's Organizations has resulted in some important changes in government policy potentially affecting millions of the poor. The coalition of the urban poor gained the support of the President to repeal a Marcos-era law criminalizing squatting. As a result, squatting will be treated in civil courts and policy arenas without the threat of imprisonment. In 1996, USAID helped 400 NGOs participate in meetings with local government units to jointly determine priorities for funding or action.
Other Donors
The major donors in the Philippines are Japan, the World Bank, the Asian Development Bank (ADB), Spain, the United States, Germany, Australia, Canada, and the European Union (EU). In the Mindanao economic development program, USAID has been the lead donor and works closely with the UNDP, EU, Australia, Japan, the World Bank, and the ADB. USAID also is the lead donor in family planning. Other donors in family planning and maternal child health include the United Nations Population Fund, UNICEF, Australia, the ADB, the World Bank, Germany, and the EU. The Philippines is a priority country for the U.S-Japan Common Agenda under its population, health and HIV/AIDS initiatives. In the environment sector, USAID works closely with the World Bank, the ADB, UNDP, Canada, Japan, and Germany. USAID programs in democracy are coordinated with the Ford Foundation, the Asia Foundation, and Canada.
FY 1999 Program
The Philippines program contributes directly to the achievement of the Agency's goals. Through supporting private sector growth in Mindanao, microfinance activities and the GOP economic reform program, USAID promotes broad-based economic growth. Through strengthening the advocacy efforts of civil society and the capacity of local government, the program strengthens democracy and good governance. Through supporting the efforts of government, the private sector and NGOs to increase the use of contraceptives, prevent AIDS and promote child survival, USAID helps stabilize population growth and protect human health. Through promoting community management of forest and coastal resources and helping industry reduce pollution and greenhouse gases, the program helps protect the environment. The GOP's efforts to liberalize its economy and devolve greater decision-making authority to the local level will help assure continued achievement of significant results in these areas.
PHILIPPINES
FY 1999 PROGRAM SUMMARY
(in thousands of dollars)
USAID
Strategies and Special ObjectivesEconomic Growth & Agriculture
Population & Health
Environ-ment
DemocracyHuman Capacity Develop-ment
Humanita-rian Assistance
TOTALS
S.O.1. Accelerate the economic transformation of Mindanao
- DA
4,221
4,221
S.O.2. Improved national sys. for trade and investment
- DA
4,221
4,221
S.O.3. Reduced fertility rate & improved MCH
- DA
- CSD
21,381
3,000
21,381
3,000S.O.4. Enhanced ma-nagement of renew. natural resources
- DA
4,000
4,000
S.O.5. Reduced emissions of greenhouse gases
- DA
4,502
4,502
S.O.6. Broad. particip. in formul. & implem. of public policy in selected areas
- DA
8,500
8,500
SpO1. Rapid increase of HIV/AIDS prevented
- CSD
2,500
2,500
Totals
- DA
- CSD
8,442
21,381
5,500
8,502
8,500
46,825
5,500
USAID MIission Director: Kenneth G. Schofield
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Accelerate the Economic Transformation of Mindanao, 492-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,221,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001
Purpose: To maximize people's participation in, and benefits from, increased public and private investments in the economy of the island of Mindanao.
USAID Role and Achievements to Date: The program extends successful models for agricultural and entrepreneurial development, investment promotion, and policy reform 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 training and market linkages 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. In FY 1997, USAID was the first donor to provide major transition assistance programs to Muslim ex-combatants. In FY 1998, USAID is initiating an innovative institutional development program for microfinance activities in the formal financial sector.
Description: Mindanao constitutes more than a third of the landmass of the Philippines and is home to about one-fourth of 74 million Filipinos. Indicators show that the quality of life in Mindanao is well below the national average. After a long period of economic stagnation, Mindanao appears positioned to experience a period of substantial and accelerated economic growth. To assist in the economic transformation of Mindanao, USAID is implementing 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 supports efforts to help Mindanao's leaders identify and modify governmental policies that will support the island's continued economic progress. The program helps the region's leaders assure appropriate levels of public infrastructure funding and private investment. USAID also assists finance institutions in Mindanao to develop their capacity to provide profitable banking services to small and microenterprises. Further, USAID is intensifying assistance to the Muslim Community, including transition programs for ex-combatants, to help sustain the peace initiative. A steering committee for this activity is composed of the Presidential Assistant for Mindanao, the leaders of the principal Muslim separatist organization, other concerned GOP agencies, private sector leaders, and USAID representatives.
Host Country and Other Donors: The Asian Development Bank is funding infrastructure, agriculture and education activities. Australia is focusing on northern Mindanao and presently has three development advisors. Canada is working with local governments and the Mindanao Autonomous Region. Japan is continuing infrastructure investments and is studying further assistance activities. The World Bank is implementing a water district pilot project and plans to undertake rural finance and rural infrastructure projects. It also is planning to establish a social development fund for small infrastructure requirements in the Muslim areas. The Asian Development Bank, 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 $18 million.
Beneficiaries: In Mindanao, about 8.6 million people (54% 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, Muslims and other traditionally disadvantaged groups.
Principal Contractors, Grantees, or Agencies: USAID relies on a U.S. firm, Louis Berger, as a general contractor. USAID also recently contracted with another U.S. firm, Chemonics International, to implement the microfinance sub-activity with the rural banks. In addition, many public and private sector U.S. and local organizations, as well as local government units, are participating.
Major Results Indicators: Baseline Target Growth in employment: 240,000 (1992-95)1 349,000 (2001) average number of jobs created annually Value of Mindanao's direct exports $1.2 billion (1992-95)2 $2.5 billion (2001) to foreign markets Value of higher value products $5 billion (1995)2 $8.8 billion (2000) shipped from Mindanao
_________________________________________________________________
1Source: Integrated Survey of Households, National Statistics Coordination Board
2Source: National Statistics Office and commissioned surveys
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Improved National Systems for Trade and Investment, 492-S002
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,221,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001
Purpose: To create an environment conducive to trade and investment through liberalized policies, improved financial markets, and improved mobilization and allocation of fiscal resources.
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 Multilateral Assistance Initiative (MAI), which started in 1989. 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 General Agreement on Tariffs and Trade (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 of 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 16% annual average real growth in exports from 1992 to 1996, the 14.6% average annual real increase in tax collections of the Bureau of Internal Revenue during 1993 to 1996, and the increase in telephone service coverage from 1.17 (1992) to 4.0 (1996) per 100 population.
In 1996, liberalization was advanced further with the approval of legislation changing the basis for import valuation from home consumption value to the GATT customs valuation code of transaction value; elimination of permanent exceptions to the Foreign Investment Act; and elimination of remaining quota restrictions on sensitive agricultural items. In 1997, more reforms were implemented with reduced tariff and nontariff barriers, legalized electronic data interchange transactions, passage of the Intellectual Property Code, liberalization of coastal shipping rules, finalization of the proposed Securities Act and the Revised Investment Company Act, and restructuring of public sector microfinance activities. Filipino consumers are now enjoying a wider range of choices for consumer goods and services, at more reasonable prices than ever before. USAID expects to initiate activities to assist the Philippine Central Bank in improving its capacity to deal with financial crises and implementation of an import valuation system based on transactions value.
Description: 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. The Philippine Government's economic reform efforts have recently paid off well, as the financial sector has so far withstood recent financial turmoil better than the financial sectors in some other countries of the region. 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 a number of areas.
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; facilitating the movement of investment capital; and improving financial system stability and efficiency. USAID assistance is provided through advisory services in the review, analysis and formulation of
policies, and through technical assistance for policy reforms by coalitions of interested groups. USAID support enhanced the capability of local institutions to implement and sustain policy reform efforts.
Host Country and Other Donors: Several donors provide technical assistance and commodities for the sectors in which they are engaged. The Asian Development Bank supports capital markets development. The World Bank's assistance is primarily for tax administration and also financial markets development. The Canadian International Development Agency supports improved implementation of economic and social policies and telecommunications. 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 sector-specific human resources and logistical support.
Beneficiaries: The ultimate beneficiaries of this activity to liberalize the trade and investment environment will be: the currently unemployed or underemployed Filipino workers estimated at 9 million in 1996; 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.
Principal Contractors, Grantees, or Agencies: USAID implements activities through contracts with 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 contractors include the Barents Group and Arthur Andersen.
Major Results Indicators: Baseline* Target Ratio of gross domestic capital formation to gross domestic product (GDP) 25%(1994) 30%(2001) Ratio of total exports plus imports to GDP 74%(1989-94) 92%(2001) Ratio of tax revenues to GDP 17%(1994) 23%(2001)______________________________________
*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 1999 $21,381,000 DA, $3,000,000 CSD
INITIAL OBLIGATION: FY 1995 ; ESTIMATED COMPLETION DATE: FY 2001
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.
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 (DOH), 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 DOH 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 DOH 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 achieved its goal of raising overall and modern method contraceptive prevalence by 1.5% per year. According to the results of the 1997 national family planning rider survey, actual overall usage increased from 40.0% in 1993 to 47.0% in 1997. Modern contraceptive method use, including modern natural family planning methods, increased from 25.2% to 30.9%. The private sector share in the provision of FP services has increased from 18.3% in 1995 to 24.4% in 1997. Although this is below the 1997 target of 31%, the increase is a welcome reversal of the decline witnessed in recent years and reflects the positive effects of restructuring initiated by USAID in 1996 to improve private sector (including NGO) performance and results. A major breakthrough in program sustainability was achieved in April 1996 when the DOH assumed full responsibility for the clearance and distribution of contraceptives nationwide, a task performed by CARE/Philippines until then with funds provided by USAID.
USAID support helps sustain the gains achieved by the GOP's maternal and child health programs in the last five years. The 1995 estimate of infant mortality is 48.9, lower than the target of 52.9. Also, the percent of births to women in high-risk groups declined from 62.4% in 1993 to 56.2% in 1997. In 1996, vaccination rates for children under 5 increased to 90.6%. 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 1999 funds will support the local performance-based program whereby USAID releases a tranche of funds after the DOH and participating local governments meet a series ofperformance benchmarks concerning the delivery of family planning and maternal child health services. Funds will also be provided through bilateral mechanisms as well as channeled through the Global Bureau's Office of Population, Health and Nutrition to support eleven U.S. cooperating agencies who will be providing technical assistance to the DOH, 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, training, management information systems, and social marketing. Funds will also be used to procure U.S. contraceptive commodities.
Host Country and Other Donors: USAID remains the largest donor to the Philippine National Family Planning Program (PNFPP). In 1995-99, the United Nations Population Fund will contribute approximately $25 million to the PNFPP for activities 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 DOH increased its financial contribution in order to take over support of the local costs of the contraceptive distribution system previously funded by USAID. The DOH increased the Family Planning Service budget by 50% in 1997 over the 1996 allocation.
Beneficiaries: The 10.4 million currently married women in their 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 2.0 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 contractors include Management Sciences for Health, John Snow Inc., Family Health International, the Futures Group, the Academy for Education Development, and Macro International.
Major Results Indicators: Baseline1 Target Total Fertility Rate1 4.1 (1991) 3.1 (2000) Infant Mortality Rate2 56.7 (1990) 41.2 (2000)3 Maternal Mortality Ratio1 209.0 (1990) 190.0 (2000) Contraceptive Prevalence Rate(all methods)1 40.0% (1993) 50.5% (2000) Contraceptive Prevalence Rate (modern methods)4 25.2% (1993) 35.7% (2000) Percent of Births in High-Risk Groups1 62.4% (1993) 56.0% (2000)________________________________
1 1993 Demographic and Health Survey
2 GOP Infant Mortality Task Force
3 GOP Infant Mortality Task Force revised the Year 2000 goal from 49.0 to 41.2 based on 1995
achievement
4 1993 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 1999 $4,000,000 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.
USAID Role and Achievements to Date: USAID was the first donor in the Philippines to develop a strategic initiative to support community-based coastal and forest resources management. This initiative is creating a "social fence" in coastal and forest ecosystems through the community-based management approach which USAID promotes. This has resulted in improved forest supervision and watershed management by communities under the program, and is contributing to the reduction of forest clearing, soil erosion, damaging fishing practices and near-shore pollution in critical areas. The activity has two major components: Coastal Resources Management (CRM) and Forest Resources Management (FRM). A new activity called the Municipal Coastal Environmental Initiative (MCEI), a follow-on to the successfully concluded Industrial Environmental Management Project, will be implemented in 1998 to 2002 to complement CRM and integrate land-based pollution management into the CRM program. The following results have been achieved under the strategic objective:
Forestry Resources Management: USAID has made excellent progress in advancing a policy and regulatory environment that supports the widespread implementation of community-based forest resource management (CBFRM) as the mandated national forest management strategy of the Government of the Philippines (GOP). This has resulted in the dramatic increase in the area coverage of CBFRM, and has further resulted in USAID's exceeding its targets (320,000 hectares actual vs. 275,000 hectares target.) As a result of these policy changes and USAID's direct support, the GOP has signed 28 agreements that transfer management control of approximately 334,280 hectares to more than 250 different upland communities.
Coastal Resources Management: Under this activity, the management of coastal resources is being assumed by local, community-based user groups with support from the local governments and the private sector. The Program has made remarkable progress in generating and sustaining investments of local government units (LGUs) in CRM activities: 28 out of 29 target LGUs have signed memoranda of agreement to commit funds and implement CRM activities, resulting in a 25-30% increase in budget allocations for sustainable resource management for 1997. Community-based CRM has likewise expanded to 10 other LGUs. There is a growing local ownership of CRM by communities, as evidenced by local groups and NGOs initiating and coordinating CRM activities on their own. Capacity-building is ongoing in communities and 600 local leaders have been trained in 1997. The CRM performance is on track in meeting its targets. An innovative and pioneering index system to measure results to reflect the objective of "sustainable resource use" and "improved habitat" has been developed and is in place. The program continues to aggressively pursue donor coordination and the private sector to leverage resources for CRM activities and establish a unified approach to coastal resources management.
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, and build local capabilities to manage these lands sustainably. This forest land is being converted from open access conditions into community-managed enterprises. Activities in 1998 include: enterprise development in upland communities, devolution of guidelines for the partnership in forest land management between the Department of Environment and Natural Resources and the LGUs; and increasing financial supportof LGUs to community-based forest resources management.
Coastal Resources Management: Over the next four years, USAID's efforts will lead to communities controlling access to, and managing sustainable harvests in coastal waters along 3,000 kilometers of shoreline. In turn, these communities are expected to supply up to 25% of national harvest from coastal waters by 2002. The following activities are underway in 1998: increasing the demand for CRM by local communities, enhancing partnerships and multi-sectoral collaboration with the private sector and other donors, CRM expansion to other coastal communities, initiating enterprise development activities, and beginning implementation of the Municipal Coastal Environmental Initiative.
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. Peace Corps, CARE, the U.S. National Academy of Sciences and the International Marinelife Alliance.
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 is targeting 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 MCEI will work with 400 industries within selected sectors located in 8 coastal areas, which are expected to benefit from clean production/environmental management, while protecting fragile marine resources.
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., Tetratech, Inc. and the International Resources Group.
Major Results Indicators: Baseline Target Hectares of residual forests managed 5,000 (1994) 500,000 (1999) sustainably by community-based enterprises Kilometers of shoreline along which coastal 0 (1995) 3,000 (2002) waters are managed for sustainable harvest
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Reduced Emission of Greenhouse Gases, 492-SO05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999 $4,502,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To mitigate emissions of greenhouse gases from the power industry through the use of cleaner fuels and improved energy efficiency.
USAID Role and Achievements to Date: With USAID assistance, the Philippines continues to be a leader among developing nations on global climate change mitigation. USAID has funded technical assistance for the development of new legislation for power sector restructuring and privatization, the Omnibus Electric Power Industry Bill. This Bill, when enacted, will spur private investments in the natural gas industry, and U.S. firms have been established as strong potential entrants. The program is also creating a demand for energy-efficient equipment and services, particularly among owners of major industries, commercial buildings, malls and major hotels. Over the next decade, it is estimated that private sector investments for clean and efficient power systems will approximate $20 billion. USAID's past support for improved efficiency of the rural electrification system has helped eliminate about 440,000 metric tons (MT) of CO2 equivalent and 3,700 MT of SO2 emissions. For cooperatives receiving USAID assistance, line losses have been reduced by an average of 5.4%, thereby avoiding needed investment of approximately $56 million to construct 56 megawatts of additional electricity generating capacity. In addition, the GOP continues to incorporate demand side management into its electricity regulatory framework, which encourages utilities to invest in increasing the end-use efficiency of their power generation and distribution networks. In 1996, the program met all its targets. The confluence of environmental and commercial interests is the rationale for the strong support this program enjoys from the GOP, the U.S. Embassy in Manila and the U.S. Department of Energy.
Description: USAID's global climate change mitigation strategy in the Philippines is to mitigate greenhouse gas emissions from the power sector. Power industry emissions are expected to increase four-fold in the next ten years as a result of the country's economic and population growth. USAID has developed a strategy for slowing this significant growth in greenhouse gas 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, and on extensive U.S. experience in the promotion of environmentally-friendly and efficient power. These provide potential opportunities for the U.S. private sector to invest in the rapidly expanding power industry in the Philippines. USAID provided the Department of Energy 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. Efforts continue to target the development of natural gas, renewable energy, and clean coal, and greater end-use efficiency by industrial and commercial enterprises.
Host Country and Other Donors: USAID continues to collaborate with ten other U.S. Government agencies in implementing the country studies program to reduce greenhouse gas emissions, with twelve 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 has also collaborated with the U.N. Development Program, Economic and Social Council for Asia and the
Pacific, and bilateral agencies of Germany, Australia, Switzerland, the Netherlands, United Kingdom, and Japan in efforts to reduce greenhouse gas emissions from the power industry.
Beneficiaries: By 2005, this program is expected to reduce projected emission levels by 18%. Unmitigated global climate change patterns have the potential to adversely affect global ecosystems, increase the severity of weather extremes (e.g., typhoons, droughts and floods) and increase associated losses in life, infrastructure, and food supplies. They also may create new geographical niches for deadly diseases. The benefits to reducing emissions will cross national boundaries and extend into the future for generations. Filipinos also will benefit from avoided health care costs due to reduced local air-borne pollutants. Indirect beneficiaries include those firms and agencies that gain experience in the implementation of an environmentally friendly power industry.
Principal Contractors, Grantees or Agencies: USAID implements activities through GOP agencies, U.S. contractors, and NGOs. Major contractors include Hagler Bailly Consulting Inc. and the National Energy Laboratory.
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 1999 $8,500,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001
Purpose: To broaden participation in the formulation and implementation of public policies in selected areas.
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 $3.0 billion in 1996 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. USAID is assisting local government leagues in analyzing and promoting changes in the Code that will strengthen local autonomy and effectiveness.
USAID's past assistance to over 200 non-profit organizations evolved from meeting basic needs of less privileged populations to capacity building of indigenous private voluntary organizations (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. In 1996, 400 NGO representatives participated in local government committees, a 37% increase from the 1995 baseline number.
Under the local governance program, introduction of a participatory planning method to help local leaders and community members plan, budget, and set development priorities has been a great success. The demand for this methodology increased the number of planned workshops on local administration, investment prioritization and promotion, environmental planning and fiscal management plans from a few dozen to several hundred over a two year period. Bohol province recently completed its provincial planning with involvement of about a thousand citizens, many of whom played an active role in setting the agenda and allocating resources in their own communities. Reporting surveys indicate that in USAID's project areas, the net percentage of people who feel that their priority concerns are being addressed by local governments increased from 36% in 1995 to 39% in 1996. Establishment of an association of governors, mayors, and local councils modeled on the National Civic League in the U.S. is helping local leaders share information, disseminate successful ideas, and serves as a platform for advocacy on behalf of local governments.
Achievements under the civil society program show how coalitions are influencing public policy formulation and implementation. Through USAID support, the coconut farmers were able to deliberate, organize, and draft a unified policy position, which was translated into specific Cabinet recommendations to President Ramos. Similarly, despite pressure from GOP agencies to exclude the issue of squatting in the Poverty Summit agenda, the urban poor coalition successfully argued its position, and in October 1997, Presidential Decree 772, which criminalizes squatting, was repealed. President Ramos also signed into law the Anti-Rape Law which redefines rape as a crime against the person, replacing the concept of its being a crime against chastity.
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. Work is ongoing in resource mobilization, investment prioritization and environmental
planning and management. Participatory processes build on Local Government Code provisions for local special bodies with at least 25% of members coming from NGOs. Future activities will focus on dissemination of "best practices" among local governments, further development of health, environment, and investment protocols, and strengthening of local revenue raising through credit, bond, and taxation.
USAID is assisting disadvantaged groups to unite into coalitions of member-controlled associations that promote under-represented interests. Over four years, nine major coalitions or alliances will be established, broadened, and strengthened. In addition to the seven earlier coalitions (fisherfolk, urban poor, indigenous people, informal sector, coconut farmers, education and microfinance sectors), three additional coalitions were funded this year, advocating on behalf of disadvantaged women, children, and marginalized groups in high-growth areas. The coalitions will be strengthened to the point where they are able to analyze and debate public policy issues and to participate actively in the public policy arena.
In preparation for the upcoming national elections in May 1998, USAID is providing assistance to the Philippine Commission on Elections (COMELEC) to undertake an information and education campaign incorporating information on new laws and procedures related to the elections, and an assessment of computer systems in the Philippine House of Representatives.
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 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 Philippine local government leagues, cities, provinces, and municipalities. The major contractor is Associates in Rural Development. Major grantees include Agricultural Cooperative Development International, Asian-American Free Lbor Institute, Volunteers in Overseas Cooperative Assistance, World Vision Relief and Development, and several other Philippine PVOs.
Major Results Indicators: Baseline Target Number of NGO representatives actively participating in local special bodies 293 NGOs (1995) 1,000 NGOs (1999) Percent of people in project areas who feel their priority concerns are being addressed by local government 36% (1995) over 50% (1999) No. of total disadvantaged impacted by coalitions - Fisherfolk 0 (1995) 8.0 Million (1996) - Urban poor 0 (1995) 10.0 Million (1998) - Indigenous people 0 (1995) 6.0 Million (1998) - Informal sector 0 (1996) 13.0 Million (1998) - Coconut farmers 0 (1996) 3.4 Million (1999) - Microfinance borrowers 0 (1996) 5.5 Million (1998)
ACTIVITY DATA SHEET
PROGRAM: PHILIPPINES
TITLE AND NUMBER: Rapid Increase of HIV/AIDS Prevented, 492-SP01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,500,000 CSD
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To prevent the rapid increase of HIV/AIDS in the Philippines by (1) monitoring the prevalence and transmission of HIV infection, and (2) encouraging behaviors which reduce HIV transmissions.
USAID Role and Achievements to Date: USAID is assisting the Government of the Philippines' (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; and (3) establish model sites for sexually-transmitted disease (STD) care and management.
The eighth round of the national HIV sentinel surveillance system of the GOP's Department of Health was conducted in April 1997. Survey results show that HIV prevalence rates among the sentinel group, registered female commercial sex workers, have remained at below 3% in all of the eight sentinel surveillance sites. Risk behavior data also show an increase in condom usage rates in both men and women at risk, and a decrease in sharing of needles by injecting drug users. These behaviors suggest increasing prevention practices, although high levels of risk behavior continue among the injecting drug users.
Description: The GOP and USAID have 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. The Philippines can still prevent extensive spread of HIV and sexually transmitted infections in the general population if individuals engaging in high-risk behaviors can be persuaded to change their practices. Accordingly, USAID is targeting education efforts on these individuals. FY 1999 funds will be used to continue the implementation of a sentinel surveillance system for monitoring HIV seroprevalence in the Philippines and to improve data collection on risk behaviors through the implementation of a refined behavioral sentinel surveillance system. Funds will also be used to provide technical assistance, supplies, and materials for the effective delivery of information, education and communication services to STD/HIV/AIDS high risk groups in a greater number of areas by a network of NGOs, government organizations and private commercial sector groups. 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. Additional funding is also required for the analysis, dissemination of results, and implementation of advocacy efforts on policy and environmental and structural constraints to promoting STD/HIV prevention.
Host Country and Other Donors: USAID has been and continues to be the largest contributor to the Philippine National AIDS/STD Prevention and Control Program. USAID's grant to WHO to support the establishment of HIV sentinel surveillance system is complemented by the Government of Japan's contribution. USAID focuses on financing and providing technical assistance to the surveillance system itself, while Japan provides laboratory, office and communications equipment. The US-Japan Common Agenda has been an important forum for this collaboration. USAID-supported training activities on STD syndromic case management are also being complemented by the Netherlands' contribution for STD drugs. USAID's focus on HIV/AIDS education for high-risk groups is complemented by support from other donors for educational activities directed towards the broader general population. Both Australia
(through AusAID) and the European Union support NGO projects to strengthen community-based responses to AIDS. In addition, AusAID supports NGO projects to improve STD management in model clinics in commercial sex areas in a few selected urban areas. A number of donors are upgrading selected public sector services for STD/HIV/AIDS diagnosis and treatment - - an essential complement to the IEC activities supported by USAID. AusAID and the European Union are the major players, and emphasize integration of these services into primary health care. Other donors are placing special importance on diagnosis and treatment of STDs and reproductive tract infections. These include the World Bank, through the Women's Health and Safe Motherhood Project, and UNFPA through its reproductive health program. Various United Nations and multilateral agencies (with UNAIDS as a coordinating body) concentrate on support for intra-governmental activities on HIV/AIDS prevention. USAID meets frequently with other donors to ensure complementarity of activities that are supportive of the programs of the GOP.
Beneficiaries: Direct beneficiaries are individuals who engage in high-risk behaviors. Indirect beneficiaries include the general population in the Philippines who will face a lower risk of contracting AIDS.
Principal Contractors, Grantees, or Agencies: USAID implements the program through the GOP's Department of Health and selected local government units, World Health Organization, Program for Appropriate Technology in Health and local NGOs.
Major Results Indicators: Baseline Target Percent HIV seroprevalence rate among the sentinel target risk group - registered female commercial sex workers <1.0% (1993)* <3.0% (2000)_____________________
* Source: Field Epidemiology Training Program - Department of Health National HIV Sentinel Surveillance Surveys.
![[USAID Home]](/images/usaid.gif)
[USAID Home]
[CP 99 Home]