Philippine Partners Praise Strong Growth, Call for More Focus on Poverty Reduction

Support Growth that Benefits the Poor
The Government and its partners were concerned that poverty has increased over the past few years and that there is wide regional disparity not only in growth but also in the incidence of poverty. There was also concern about realizing the goal to reduce mortality rate, one of the Millennium Development Goals (MDGs). There was consensus that growth would need to be more inclusive if it were to reduce poverty and sustain development. This means that the benefits of growth need to reach all segments of the population, in all the regions, especially in the rural areas where most of the poor live, and in the conflict-affected areas in Mindanao. It was recognized that reducing poverty will depend on improving agricultural productivity through agricultural diversification, completion of agrarian reform, and strengthened property rights. Targeted programs such as KALAHI-CIDSS have proved effective in delivering essential public services to the poor and can be scaled up.

A related concern was the high population growth rate which has further increased the challenge of achieving broad based growth and poverty reduction. The partners expressed support for policy measures and programs that would improve the incomes of poorer Filipinos, generate better jobs, increase investments in health and education and rural infrastructure. In addition, they highlighted the need to protect the poor who are more prone to damages brought about by natural disasters, climate change, and the current global increase in rice/food prices. Local Government Units (LGUs) were identified as vital important partners in achieving these objectives. Promoting citizen participation in governance, especially at the local level was cited as a good way to enhance transparency and limit the scope for corruption.

Strengthen Governance and Fight Corruption
A number of participants from the private sector and CSOs emphasized that controlling corruption, strengthening the rule of law, and promoting transparency, were important for improving resource allocation. An NGO participant, Fr. Francis Lucas, Chairman of Asian NGO Coalition, reminded the PDF participants of the link between governance and development. He said, “Bad governance leads to exclusive growth.”

The Government, including the President, also recognized the centrality of these issues as a constraint to better use of public funds, and reiterated their commitment to intensify the fight against corruption. The Government presented its priority reform agenda for improving the quality of public spending, which includes, deepening results-based budgeting through better performance monitoring; development of internal audit and control capacities; harmonization of budgeting, accounting and audit procedures and reporting requirements.

The development partners welcomed the establishment of the Procurement Transparency Group which has strong civil society presence. Promoting citizen participation in public bidding, especially at the local level was identified as a good way to enhance transparency, providing more access to information, and limit the scope for corruption. In this regard, the government’s public expenditure management reform needs stronger emphasis on improving efficiency, effectiveness and accountability in budget execution. With increased procurement transparency, opportunities for corruption and mismanagement will be reduced.

The participants linked these good governance measures to sustainable and inclusive growth. In this regard, deepening procurement reform was identified as a priority in improving efficiency and accountability in the use of public money. The partners welcomed the Government’s implementation of the procurement law which include the use of electronic procurement and consistent application of open competitive bidding methods. Everyone agreed that there is now a need to institutionalize the Government’s successful harmonization of procurement documents and manuals with ODA partners through Implementing Rules and Regulations-B (IRR-B). This will specify the regulatory framework for procurement of all foreign-assisted projects. This will also strengthen the implementation and enforcement of the law, including at the level of local government units. The development partners expressed their appreciation for the Government’s proposal to engage them in the formulation of IRR-B.