On the problem of “jobless growth” and how to fix it
The last time the Philippines experienced an economic contraction was way back in 1998 in the aftermath of the Asian financial crisis. Since then, the country has posted 57 consecutive quarters of positive growth averaging 4.7 per cent in real terms year-on-year.
That may not be as fast as the Chinas or Indias of this world, but it is still pretty respectable considering the events both domestic and foreign that have occurred during this time (which include the impeachment trial of President Joseph Estrada, EDSA Dos and Tres, September 11, the dot.com crash and Enron scandal, the Oakwood mutiny, the global financial crisis, the Great Recession, and the current EU debt crisis, to name a few).
What do we mean by jobless growth?
Over the last seven years, 5.42 million net new jobs were created or an average of about 773,000 annually. This again is no mean feat. The only problem is that the labour force has also grown by about 5.49 million averaging an increase of around 785,000 new entrants per year 76,000 more than the jobs created since 2005.
If the growth of our workforce had been half as much, then the amount of jobs created would have been sufficient for the 2.8 million unemployed workers in 2012. If not for demographics, our unemployment rate would be much lower. Jobless growth in our context can best be described as a situation where economic growth fails to produce enough jobs to reduce the absolute number of unemployed workers in a sustained manner.
In the past, the economy’s inability to bring the number of the unemployed down was assigned to the growth rate not being fast enough. Instead of growing at an average rate of around 5 per cent, we needed to be growing at 7 per cent, or more.
Over the past three quarters, that is precisely the speed at which our economy has been expanding–above 7 per cent–which makes the employment figures for the April 2013 quarter all the more disappointing. Over the year, the number of those employed actually fell!
While we should not read too much into one quarter’s report (it is best to average four quarters’ worth of jobs data for the year to get a more realistic picture), it is still worth pondering how the economy could have expanded so much and yet not have made a dent in employment terms.
Examining “jobless growth”
Perhaps, much of the growth occurred as people moved from temporary and daily wage earnings into full-time, salaried employment as the labour force survey suggests. Increased income per worker rather than an increased number of workers might be a plausible explanation.
The other could be the increasing “financialisation” of the economy as the banking and finance sector posted one of the highest growth rates among all sectors. This means that growth came more in the form of profits, bonuses and commissions paid to the business elite and their shareholders. Financialisation has been blamed for jobless growth in the West, more recently.
Then there is technological progress. The construction industry, for instance, may have grown the fastest, but the use of new methods and materials might have made it less labour-intensive than before.
The same applies to manufacturing. Our country once specialised in garments and toy-making which were conducive to sweatshops, but we have since switched to electronics and semi-conductor production which makes use of automated processes. The rapid growth in durable equipment that occurred in the first quarter could have allowed businesses to substitute capital for labour.
The unemployment situation would be even worse if not for the mobile and adaptable workers that we have. Over the past seven years, the country has on average deployed 1.3 million Filipinos each year to work abroad. If we had not done so, we would have had double digit unemployment rates during this time. There would have been greater poverty, crime and social unrest, not to mention less consumption, savings and investment.
The residential and commercial property sector as well as financial markets would not be experiencing the boom we are currently witnessing. The credit upgrades that our political elite boast of would not be possible either.
Yet, despite the extra impetus provided by ordinary Filipinos who are forced to earn their living from abroad, often under difficult conditions, separated from their loved ones, the conservative forces in our society have successfully marshalled resources to maintain the status quo or keep it from changing rapidly instead of opening up our socio-economic life to the dynamism that it requires.
First of all, the demographic burden that we have discussed above has been caused by conservative forces hindering the development of reproductive health policies for decades. As a result, the Philippines will only see its population peak sometime in the latter half of this century based on current estimates. This has created a situation where the country’s current growth rate is unable to provide a sufficient number of jobs for those entering the workforce.
Secondly, the low tax-to-GDP level in the country has been set by the oligarchic business community in complicity with dynastic political families who have been unwilling to contribute their fair share to improve our country’s physical, social and economic infrastructure, the very thing needed to boost investment. Of course that doesn’t bother them because as the big fishes in a small pond, they are able to keep their stranglehold on the nation’s resources.
As the government relies on the private sector to fund major infrastructure projects, large domestic conglomerates have successfully cornered these contracts. The tepid pace at which Public-Private Partnerships have been approved is due to the fact that interest from the global investment community has waned. This isn’t the sort of public private partnership we need. The correct form of partnership is for the business community to pay the right amount of tax for the government to do the investing, not the other way around.
Thirdly, other countries with more progressive leaders have created sovereign wealth funds from their balance of payments surpluses to invest in their nation’s development; but, the inherent conservatism among our policy elite restrains them from tapping the massive stock of foreign reserves generated primarily not through exports, nor by foreign direct investments, but by foreign remittances, to fund the infrastructure needs of the country.
This innate conservatism was on display during the last election. I did a thorough evaluation of the senatorial candidates—their policies and legislative proposals—and two of the most topical were the ones to increase “skills matching” activities and loans to micro, small and medium-size enterprises (MSMEs).
Now I have nothing against skills matching, but we know that there are skills shortages that if plugged would only solve a tiny fraction of the unemployment problem, and yet so many senatorial candidates ignored the elephant in the room, the massive, long-term unemployed in favour of the small target.
Similarly I have nothing against MSMEs, but we also know that MSMEs do not generate as much new employment, at least the kind that matters, i.e. the full-time, salaried kind. And yet they take up an inordinate amount of attention in our political discourse. The new ventures with high innovation content, the kind that generates higher incomes and greater employment were not even talked about, save for one candidate who took on board the sovereign wealth fund idea to fund them, but failed to get elected.
How do we rectify the problem
The notion of the state performing the role of investor of last resort, the source of funds for projects that are deemed too risky by private capital markets but could have massive potential, is seldom talked about. This is because our history is littered with incidents where our business elite have exploited their connections within government to fund their own pet projects. Rather than being the lender of last resort, the government has been the financier of first instance, or the source of “booty capital”.
Of course, given our innate conservatism, marked by a high tolerance for social inequality and low tolerance for risk, there is nothing that prevents us from focusing on the small target, the low hanging fruit, the necessary, but insufficient conditions for mass employment generation. We can continue focusing on providing the right “eco-system” for innovation and investment, lowering the cost of doing business and the like.
Without this safety valve, will our conservative leaders still manage to keep an ironclad lid on our social cauldron? Even before it comes to a boil, they need to re-examine the basic framework for growth and development that has embodied their consensus for thirty odd years. In the past they have been good at socialising the cost of their projects and privatising the (super-) profits. It is time that we gear up the state to be able to fund development and innovative risk-takers and to capture a fair share of their rents for our people’s benefit.
ASIA is now increasingly the focus of growth in the world, but individual economies like the Philippines and similarly less developed markets have to identify sectors that need support in order to boost their competitiveness, experts said at a forum yesterday in the Asian Institute of Management in Makati City.
In her presentation, Suzanne Rosselet, deputy director of the International Institute for Management Development World Competitiveness Center, noted that Asia’s population will hit 5.26 billion by 2050, compared to Africa’s 1.77 billion, the European Union’s 628 million and the United States’ 447 million.
“This pretty much sums up where the long-term growth will be. [It] will be in Asia,” she said.
In the Philippines, she said, the government needs to focus on supporting small- and medium-scale enterprises (SMEs) and services, which have been an engine of growth.
She added that “there has to be job creation for young people moving into the workforce.”
David Jay Green, a fellow of the Asian Development Bank-Asian Institute of Management Knowledge Hub for Trade and Investment, noted that within the Association of Southeast Asian Nations (ASEAN) are pockets of less developed clusters like that of the otherwise resource-rich sub-region grouped into the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA).
He noted this group, which was formally established in 1984, was formed precisely to enable the less developed component areas to pool resources and efforts to help them catch up with more developed urban areas in the same countries. The Philippine components of BIMP-EAGA are Palawan and Mindanao.
Experts have prescribed increasing trade and other economic ties within Asia, as demand recovery in the US and Europe remains sluggish.
But Mr. Green stressed the need to further streamline trade processes within BIMP-EAGA if it is to live up to expectations as a driver of growth in Southeast Asia.
This, in turn, requires more efficient government operations, better infrastructure and “connectivity policies” — all of which will facilitate the transport of goods and trade in services.
“It’s a whole series of things that has to be done to encourage the business environment, trading environment and the ability of people to invest in their own country,” Mr. Green said.
Sought for comment, Augusto B. Santos, deputy director general of the National Economic and Development Authority, said the government has been finding ways to provide cheap loans to SMEs, help localities focus on a few products and services they can excel in, and is poised to embark on an infrastructure buildup under public-private partnerships in order to lay the groundwork for sustained, faster growth. — JJAC
MANILA, Philippines – Here’s good news for jobseekers.
The Department of Labor and Employment (DOLE) yesterday assured that employment opportunities are brighter for jobseekers with the coming holiday season.
Labor Secretary Rosalinda Baldoz said various industries are expected to hire more workers in the last three months of the year as commercial establishments nationwide prepare for Christmas.
Even poor but deserving students who are on Christmas vacation can work temporarily in various business firms and government offices nationwide as provided under the Special Program for Employment of Students (SPES).
Employers will pay 60 percent of the students’ minimum wage while the government would shoulder the remaining 40 percent. The working students are also entitled to other benefits and privileges under the Labor Code.
Republic Act 9547 or the SPES Amendatory Law was passed last year to encourage employers engaged in small and medium enterprises to hire poor but deserving students so they will have the opportunity to earn more during vacation.
The labor chief said the government is also working to strengthen the agriculture sector as part of efforts to generate more local employment for Filipinos.
According to Baldoz, the government’s job promotion program is now starting to yield positive results as the country posted a lower unemployment rate in July.
Baldoz said they expect the unemployment rate to drop further in the coming months.
She added that the DOLE is closely coordinating with the Department of Public Works and Highways (DPWH) for the implementation of various construction projects that could also generate employment for Filipinos next year.
Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar Binay; Chief Justice Renato Corona; Former Presidents Fidel Valdez Ramos and Joseph Ejercito Estrada; members of the House of Representatives and the Senate; distinguished members of the diplomatic corps; my fellow workers in government;
Mga minamahal kong kababayan:
Sa bawat sandali po ng pamamahala ay nahaharap tayo sa isang sangandaan.
Sa isang banda po ay ang pagpili para sa ikabubuti ng taumbayan. Ang pagtanaw sa interes ng nakakarami; ang pagkapit sa prinsipyo; at ang pagiging tapat sa sinumpaan nating tungkulin bilang lingkod-bayan. Ito po ang tuwid na daan.
Sa kabilang banda ay ang pag-una sa pansariling interes. Ang pagpapaalipin sa pulitikal na konsiderasyon, at pagsasakripisyo ng kapakanan ng taumbayan. Ito po ang baluktot na daan.
Matagal pong naligaw ang pamahalaan sa daang baluktot. Araw-araw po, lalong lumilinaw sa akin ang lawak ng problemang ating namana. Damang-dama ko ang bigat ng aking responsibilidad.
Sa unang tatlong linggo ng aming panunungkulan, marami po kaming natuklasan. Nais ko pong ipahayag sa inyo ang iilan lamang sa mga namana nating suliranin at ang ginagawa naming hakbang para lutasin ang mga ito.
Sulyap lamang po ito; hindi pa ito ang lahat ng problemang haharapin natin. Inilihim at sadyang iniligaw ang sambayanan sa totoong kalagayan ng ating bansa.
PROBLEMA SA BUDGET
Sa unang anim na buwan ng taon, mas malaki ang ginastos ng gobyerno kaysa sa pumasok na kita. Lalong lumaki ang deficit natin, na umakyat na sa 196.7 billion pesos. Sa target na kuleksyon, kinapos tayo ng 23.8 billion pesos; ang tinataya namang gastos, nalagpasan natin ng 45.1 billion pesos.
Ang budget po sa 2010 ay 1.54 trillion pesos.
Nasa isandaang bilyong piso o anim at kalahating porsyento na lang ng kabuuan ang malaya nating magagamit para sa nalalabing anim na buwan ng taong ito.
Halos isang porsyento na lang po ng kabuuang budget ang natitira para sa bawat buwan.
Saan naman po dinala ang pera?
Naglaan ng dalawang bilyong piso na Calamity Fund bilang paghahanda para sa mga kalamidad na hindi pa nangyayari. Napakaliit na nga po ng pondong ito, ngunit kapapasok pa lang natin sa panahon ng baha at bagyo, 1.4 billion pesos o sitenta porsyento na ang nagastos.
Sa kabuuan ng 108 million pesos para sa lalawigan ng Pampanga, 105 million pesos nito ay napunta sa iisang distrito lamang. Samantala, ang lalawigan ng Pangasinan na sinalanta ng Pepeng ay nakatanggap ng limang milyong piso lamang para sa pinsalang idinulot ng bagyong Cosme, na nangyari noong 2008 pa.
Ibinigay po ang pondo ng Pampanga sa buwan ng eleksyon, pitong buwan pagkatapos ng Ondoy at Pepeng. Paano kung bumagyo bukas? Inubos na ang pondo nito para sa bagyong nangyari noong isang taon pa. Pagbabayaran ng kinabukasan ang kasakiman ng nakaraan.
Ganyan din po ang nangyari sa pondo ng MWSS. Kamakailan lamang, pumipila ang mga tao para lang makakuha ng tubig. Sa kabila nito, minabuti pa ng liderato ng MWSS na magbigay ng gantimpala sa sarili kahit hindi pa nababayaran ang pensyon ng mga retiradong empleyado.
Noong 2009, ang buong payroll ng MWSS ay 51.4 million pesos. Pero hindi lang naman po ito ang sahod nila; may mga additional allowances at benefits pa sila na aabot sa 160.1 million pesos. Sa madaling sabi, nakatanggap sila ng 211.5 million pesos noong nakaraang taon. Beinte-kuwatro porsyento lang nito ang normal na sahod, at sitenta’y sais porsyento ang dagdag.
Ang karaniwang manggagawa hanggang 13th month pay plus cash gift lang ang nakukuha. Sa MWSS, aabot sa katumbas ng mahigit sa tatlumpung buwan ang sahod kasama na ang lahat ng mga bonuses at allowances na nakuha nila.
Mas matindi po ang natuklasan natin sa pasahod ng kanilang Board of Trustees. Tingnan po natin ang mga allowances na tinatanggap nila:
Umupo ka lang sa Board of Trustees at Board Committee meeting, katorse mil na. Aabot ng nobenta’y otso mil ito kada buwan. May grocery incentive pa sila na otsenta mil kada taon.
Hindi lang iyon: may mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, at Financial Assistance. May Christmas bonus na, may Additional Christmas Package pa. Kada isa sa mga ito, nobenta’y otso mil.
Sa suma total po, aabot ang lahat ng dalawa’t kalahating milyong piso kada taon sa bawat miyembro ng Board maliban sa pakotse, technical assistance, at pautang. Uulitin ko po. Lahat ng ito ay ibinibigay nila sa kanilang mga sarili habang hindi pa nababayaran ang mga pensyon ng kanilang mga retirees.
Pati po ang La Mesa Watershed ay hindi nila pinatawad. Para magkaroon ng tamang supply ng tubig, kailangang alagaan ang mga watershed. Sa watershed, puno ang kailangan. Pati po iyon na dapat puno ang nakatayo, tinayuan nila ng bahay para sa matataas na opisyal ng MWSS.
Hindi naman sila agad maaalis sa puwesto dahil kabilang sila sa mga Midnight Appointees ni dating Pangulong Arroyo. Iniimbestigahan na natin ang lahat nang ito. Kung mayroon pa silang kahit kaunting hiya na natitira – sana kusa na lang silang magbitiw sa puwesto.
ROAD USERS’ FUND
Pag-usapan naman po natin ang pondo para sa imprastruktura. Tumukoy ang DPWH ng dalawandaan apatnapu’t anim na priority safety projects na popondohan ng Motor Vehicle Users Charge. Mangangailangan po ito ng budget na 425 million pesos.
Ang pinondohan po, dalawampu’t walong proyekto lang. Kinalimutan po ang dalawandaan at labing walong proyekto at pinalitan ng pitumpung proyekto na wala naman sa plano. Ang hininging 425 million pesos, naging 480 million pesos pa, lumaki lalo dahil sa mga proyektong sa piling-piling mga benepisyaryo lang napunta.
Mga proyekto po itong walang saysay, hindi pinag-aralan at hindi pinaghandaan, kaya parang kabuteng sumusulpot.
Tapos na po ang panahon para dito. Sa administrasyon po natin, walang kota-kota, walang tongpats, ang pera ng taumbayan ay gagastusin para sa taumbayan lamang.
Meron pa po tayong natuklasan. Limang araw bago matapos ang termino ng nakaraang administrasyon, nagpautos silang maglabas ng 3.5 billion pesos para sa rehabilitasyon ng mga nasalanta nina Ondoy at Pepeng.
Walumpu’t anim na proyekto ang paglalaanan dapat nito na hindi na sana idadaan sa public bidding. Labingsiyam sa mga ito na nagkakahalaga ng 981 million pesos ang muntik nang makalusot. Hindi pa nailalabas ang Special Allotment Release Order ay pirmado na ang mga kontrata.
Buti na lang po ay natuklasan at pinigilan ito ni Secretary Rogelio Singson ng DPWH. Ngayon po ay dadaan na ang kabuuan ng 3.5 billion pesos sa tapat na bidding, at magagamit na ang pondo na ito sa pagbibigay ng lingap sa mga nawalan ng tahanan dahil kina Ondoy at Pepeng.
Pag-usapan naman natin ang nangyari sa NAPOCOR. Noong 2001 hanggang 2004, pinilit ng gobyerno ang NAPOCOR na magbenta ng kuryente nang palugi para hindi tumaas ang presyo. Tila ang dahilan: pinaghahandaan na nila ang eleksyon.
Dahil dito, noong 2004, sumagad ang pagkakabaon sa utang ng NAPOCOR. Napilitan ang pambansang gobyerno na sagutin ang dalawandaang bilyong pisong utang nito.
Ang inakala ng taumbayan na natipid nila sa kuryente ay binabayaran din natin mula sa kaban ng bayan. May gastos na tayo sa kuryente, binabayaran pa natin ang dagdag na pagkakautang ng gobyerno.
Kung naging matino ang pag-utang, sana’y nadagdagan ang ating kasiguruhan sa supply ng kuryente. Pero ang desisyon ay ibinatay sa maling pulitika, at hindi sa pangangailangan ng taumbayan. Ang taumbayan, matapos pinagsakripisyo ay lalo pang pinahirapan.
Ganito rin po ang nangyari sa MRT. Sinubukan na namang bilhin ang ating pagmamahal. Pinilit ang operator na panatilihing mababa ang pamasahe.
Hindi tuloy nagampanan ang garantiyang ibinigay sa operator na mababawi nila ang kanilang puhunan. Dahil dito, inutusan ang Landbank at Development Bank of the Philippines na bilhin ang MRT.
Ang pera ng taumbayan, ipinagpalit sa isang naluluging operasyon.
Dumako naman po tayo sa pondo ng NFA.
Noong 2004: 117,000 metric tons ang pagkukulang ng supply ng Pilipinas. Ang binili nila, 900,000 metric tons. Kahit ulitin mo pa ng mahigit pitong beses ang pagkukulang, sobra pa rin ang binili nila.
Noong 2007: 589,000 metric tons ang pagkukulang ng supply sa Pilipinas. Ang binili nila, 1.827 million metric tons. Kahit ulitin mo pa ng mahigit tatlong beses ang pagkukulang, sobra na naman ang binili nila.
Ang masakit nito, dahil sobra-sobra ang binibili nila taun-taon, nabubulok lang pala sa mga kamalig ang bigas, kagaya ng nangyari noong 2008.
Hindi po ba krimen ito, na hinahayaan nilang mabulok ang bigas, sa kabila ng apat na milyong Pilipinong hindi kumakain ng tatlong beses sa isang araw?
Ang resulta nito, umabot na sa 171.6 billion pesos ang utang ng NFA noong Mayo ng taong ito.
Ang tinapon na ito, halos puwede na sanang pondohan ang mga sumusunod:
Ang budget ng buong Hudikatura, na 12.7 billion pesos sa taong ito.
Ang Conditional Cash Transfers para sa susunod na taon, na nagkakahalaga ng 29.6 billion pesos.
Ang lahat ng classroom na kailangan ng ating bansa, na nagkakahalaga ng 130 billion pesos.
Kasuklam-suklam ang kalakarang ito. Pera na, naging bato pa.
Narinig po ninyo kung paano nilustay ang kaban ng bayan. Ang malinaw po sa ngayon: ang anumang pagbabago ay magmumula sa pagsiguro natin na magwawakas na ang pagiging maluho at pagwawaldas.
Kaya nga po mula ngayon: ititigil na natin ang paglulustay sa salapi ng bayan. Tatanggalin natin ang mga proyektong mali.
Ito po ang punto ng tinatawag nating zero-based approach sa ating budget. Ang naging kalakaran po, taun-taon ay inuulit lamang ang budget na puno ng tagas. Dadagdagan lang nang konti, puwede na.
Sa susunod na buwan ay maghahain tayo ng budget na kumikilala nang tama sa mga problema, at magtutuon din ng pansin sa tamang solusyon.
Ilan lang ito sa mga natuklasan nating problema. Heto naman po ang ilang halimbawa ng mga hakbang na ginagawa natin.
Nandiyan po ang kaso ng isang may-ari ng sanglaan. Bumili siya ng sasakyang tinatayang nasa dalawampu’t anim na milyong piso ang halaga.
Kung kaya mong bumili ng Lamborghini, bakit hindi mo kayang magbayad ng buwis?
Nasampahan na po ito ng kaso. Sa pangunguna nina Finance Secretary Cesar Purisima, Justice Secretary Leila de Lima, BIR Commissioner Kim Henares at Customs Commissioner Lito Alvarez, bawat linggo po ay may bago tayong kasong isinasampa kontra sa mga smuggler at sa mga hindi nagbabayad ng tamang buwis.
Natukoy na rin po ang salarin sa mga kaso nina Francisco Baldomero, Jose Daguio at Miguel Belen, tatlo sa anim na insidente ng extralegal killings mula nang umupo tayo.
Singkuwenta porsyento po ng mga insidente ng extralegal killings ang patungo na sa kanilang resolusyon.
Ang natitira pong kalahati ay hindi natin tatantanan ang pag-usig hanggang makamit ang katarungan.
Pananagutin natin ang mga mamamatay-tao. Pananagutin din natin ang mga corrupt sa gobyerno.
Nagsimula nang mabuo ang ating Truth Commission, sa pangunguna ni dating Chief Justice Hilario Davide. Hahanapin natin ang katotohanan sa mga nangyari diumanong katiwalian noong nakaraang siyam na taon.
Sa loob ng linggong ito, pipirmahan ko ang kauna-unahang Executive Order na nagtatalaga sa pagbuo nitong Truth Commission.
Kung ang sagot sa kawalan ng katarungan ay pananagutan, ang sagot naman sa kakulangan natin sa pondo ay mga makabago at malikhaing paraan para tugunan ang mga pagkatagal-tagal nang problema.
Napakarami po ng ating pangangailangan: mula sa edukasyon, imprastruktura, pangkalusugan, pangangailangan ng militar at kapulisan, at marami pang iba. Hindi kakasya ang pondo para mapunan ang lahat ng ito.
Kahit gaano po kalaki ang kakulangan para mapunan ang mga listahan ng ating pangangailangan, ganado pa rin ako dahil marami nang nagpakita ng panibagong interes at kumpyansa sa Pilipinas.
Ito ang magiging solusyon: mga Public-Private Partnerships. Kahit wala pa pong pirmahang nangyayari dito, masasabi kong maganda ang magiging bunga ng maraming usapin ukol dito.
May mga nagpakita na po ng interes, gustong magtayo ng expressway na mula Maynila, tatahak ng Bulacan, Nueva Ecija, Nueva Vizcaya, hanggang sa dulo ng Cagayan Valley nang hindi gugugol ang estado kahit na po piso.
Sa larangan ng ating Sandatahang Lakas:
Mayroon po tayong 36,000 nautical miles ng baybayin. Ang mayroon lamang tayo: tatlumpu’t dalawang barko. Itong mga barkong ito, panahon pa ni MacArthur.
May nagmungkahi sa atin, ito ang proposisyon: uupahan po nila ang headquarters ng Navy sa Roxas Boulevard at ang Naval Station sa Fort Bonifacio.
Sagot po nila ang paglipat ng Navy Headquarters sa Camp Aguinaldo. Agaran, bibigyan tayo ng isandaang milyong dolyar. At dagdag pa sa lahat nang iyan, magsusubi pa sila sa atin ng kita mula sa mga negosyong itatayo nila sa uupahan nilang lupa.
Sa madali pong sabi: Makukuha natin ang kailangan natin, hindi tatayo gagastos, kikita pa tayo.
Marami na pong nag-alok at nagmungkahi sa atin, mula lokal hanggang dayuhang negosyante, na magpuno ng iba’t ibang pangangailangan.
Mula sa mga public-private partnerships na ito, lalago ang ating ekonomiya, at bawat Pilipino makikinabang. Napakaraming sektor na matutulungan nito.
Maipapatayo na po ang imprastrukturang kailangan natin para palaguin ang turismo.
Sa agrikultura, makapagtatayo na tayo ng mga grains terminals, refrigeration facilities, maayos na road networks at post-harvest facilities.
Kung maisasaayos natin ang ating food supply chain sa tulong ng pribadong sektor, sa halip na mag-angkat tayo ay maari na sana tayong mangarap na mag-supply sa pandaigdigang merkado.
Kung maitatayo ang minumungkahi sa ating railway system, bababa ang presyo ng bilihin. Mas mura, mas mabilis, mas maginhawa, at makakaiwas pa sa kotong cops at mga kumokotong na rebelde ang mga bumibiyahe.
Paalala lang po: una sa ating plataporma ang paglikha ng mga trabaho, at nanggagaling ang trabaho sa paglago ng industriya. Lalago lamang ang industriya kung gagawin nating mas malinis, mas mabilis, at mas maginhawa ang proseso para sa mga gustong magnegosyo.
Pabibilisin natin ang proseso ng mga proyektong sumasailalim sa Build-Operate-Transfer. Sa tulong ng lahat ng sangay ng gobyerno at ng mga mamamayan, pabababain natin sa anim na buwan ang proseso na noon ay inaabot ng taon kung hindi dekada.
May mga hakbang na rin pong sinisimulan ang DTI, sa pamumuno ni Secretary Gregory Domingo:
Ang walang-katapusang pabalik-balik sa proseso ng pagrehistro ng pangalan ng kumpanya, na kada dalaw ay umaabot ng apat hanggang walong oras, ibababa na natin sa labinlimang minuto.
Ang dating listahan ng tatlumpu’t anim na dokumento, ibababa natin sa anim. Ang dating walong pahinang application form, ibababa natin sa isang pahina.
Nananawagan ako sa ating mga LGUs. Habang naghahanap tayo ng paraan para gawing mas mabilis ang pagbubukas ng mga negosyo, pag-aralan din sana nila ang kanilang mga proseso. Kailangan itong gawing mas mabilis, at kailangan itong itugma sa mga sinisumulan nating reporma.
Negosyante, sundalo, rebelde, at karaniwang Pilipino, lahat po makikinabang dito. Basta po hindi dehado ang Pilipino, papasukin po natin lahat iyan. Kailangan na po nating simulan ang pagtutulungan para makamit ito. Huwag nating pahirapan ang isa’t isa.
Parating na po ang panahon na hindi na natin kailangang mamili sa pagitan ng seguridad ng ating mamamayan o sa kinabukasan ng inyong mga anak.
FREEING UP FUNDS
Oras na maipatupad ang public-private partnerships na ito, mapopondohan ang mga serbisyong panlipunan, alinsunod sa ating plataporma.
Magkakapondo na po para maipatupad ang mga plano natin sa edukasyon.
Mapapalawak natin ang basic education cycle mula sa napakaikling sampung taon tungo sa global standard na labindalawang taon.
Madadagdagan natin ang mga classroom. Mapopondohan natin ang service contracting sa ilalim ng GASTPE.
Pati ang conditional cash transfers, na magbabawas ng pabigat sa bulsa ng mga pamilya, madadagdan na rin ng pondo.
Maipapatupad ang plano natin sa PhilHealth.
Una, tutukuyin natin ang tunay na bilang ng mga nangangailangan nito. Sa ngayon, hindi magkakatugma ang datos. Sabi ng PhilHealth sa isang bibig, walumpu’t pitong porsyento na raw ang merong coverage. Sa kabilang bibig naman, singkuwenta’y tres porsyento naman. Ayon naman sa National Statistics Office, tatlumpu’t walong porsyento ang may coverage.
Ngayon pa lang, kumikilos na si Secretary Dinky Soliman at ang DSWD upang ipatupad ang National Household Targetting System, na magtutukoy sa mga pamilyang higit na nagangailangan ng tulong. Tinatayang siyam na bilyon ang kailangan para mabigyan ng PhilHealth ang limang milyong pinakamaralitang pamilyang Pilipino.
Napakaganda po ng hinaharap natin. Kasama na po natin ang pribadong sektor, at kasama na rin natin ang League of Provinces, sa pangunguna nina Governor Alfonso Umali kasama sina Governor L-Ray Villafuerte at Governor Icot Petilla. Handa na pong makipagtulungan para makibahagi sa pagtustos ng mga gastusin. Alam ko rin pong hindi magpapahuli ang League of Cities sa pangunguna ni Mayor Oscar Rodriguez.
Kung ang mga gobyernong lokal ay nakikiramay na sa ating mga adhikain, ang Kongreso namang pinanggalingan ko, siguro naman maasahan ko din.
Nagpakitang-gilas na po ang gabinete sa pagtukoy ng ating mga problema at sa paglulunsad ng mga solusyon sa loob lamang ng tatlong linggo.
Nang bagyo pong Basyang, ang sabi sa atin ng mga may prangkisa sa kuryente, apat na araw na walang kuryente. Dahil sa mabilis na pagkilos ni Secretary Rene Almendras at ng Department of Energy, naibalik ang kuryente sa halos lahat sa loob lamang ng beinte-kwatro oras.
Ito pong sinasabing kakulangan sa tubig sa Metro Manila, kinilusan agad ni Secretary Rogelio Singson at ng DPWH. Hindi na siya naghintay ng utos, kaya nabawasan ang perwisyo.
Nakita na rin natin ang gilas ng mga hinirang nating makatulong sa Gabinete. Makatuwiran naman po sigurong umasa na hindi na sila padadaanin sa butas ng karayom para makumpirma ng Commission on Appointments. Kung mangyayari po ito, marami pa sa mga mahuhusay na Pilipino ang maeengganyong magsilbi sa gobyerno.
Sa lalong madaling panahon po, uupo na tayo sa LEDAC at pag-uusapan ang mga mahahalagang batas na kailangan nating ipasa. Makakaasa kayo na mananatiling bukas ang aking isipan, at ang ating ugnayan ay mananatiling tapat.
Isinusulong po natin ang Fiscal Responsibility Bill, kung saan hindi tayo magpapasa ng batas na mangangailangan ng pondo kung hindi pa natukoy ang panggagalingan nito. May 104.1 billion pesos tayong kailangan para pondohan ang mga batas na naipasa na, ngunit hindi maipatupad.
Kailangan din nating isaayos ang mga insentibong piskal na ibinigay noong nakaraan. Ngayong naghihigpit tayo ng sinturon, kailangang balikan kung alin sa mga ito ang dapat manatili at kung ano ang dapat nang itigil.
Huwag po tayong pumayag na magkaroon ng isa pang NBN-ZTE. Sa lokal man o dayuhan manggagaling ang pondo, dapat dumaan ito sa tamang proseso. Hinihingi ko po ang tulong ninyo upang amiyendahan ang ating Procurement Law.
Ayon po sa Saligang Batas, tungkulin ng estado ang siguruhing walang lamangan sa merkado. Bawal ang monopolya, bawal ang mga cartel na sasakal sa kumpetisyon. Kailangan po natin ng isang Anti-Trust Law na magbibigay-buhay sa mga prinsipyong ito. Ito ang magbibigay ng pagkakataon sa mga Small- at Medium-scale Enterprises na makilahok at tumulong sa paglago ng ating ekonomiya.
Ipasa na po natin ang National Land Use Bill.
Una rin pong naging batas ng Commonwealth ang National Defense Act, na ipinasa noon pang 1935. Kailangan nang palitan ito ng batas na tutugon sa pangangailangan ng pambansang seguridad sa kasalukuyan.
Nakikiusap po akong isulong ang Whistleblower’s Bill upang patuloy nang iwaksi ang kultura ng takot at pananahimik.
Palalakasin pa lalo ang Witness Protection Program. Alalahanin po natin na noong taong 2009 hanggang 2010, may nahatulan sa 95% ng mga kaso kung saan may witness na sumailalim sa programang ito.
Kailangang repasuhin ang ating mga batas. Nanawagan po akong umpisahan na ang rekodipikasyon ng ating mga batas, upang siguruhing magkakatugma sila at hindi salu-salungat.
Ito pong mga batas na ito ang batayan ng kaayusan, ngunit ang pundasyon ng lahat ng ginagawa natin ay ang prinsipyong wala tayong mararating kung walang kapayapaan at katahimikan.
Dalawa ang hinaharap nating suliranin sa usapin ng kapayapaan: ang situwasyon sa Mindanao, at ang patuloy na pag-aaklas ng CPP-NPA-NDF.
Tungkol sa situwasyon sa Mindanao: Hindi po nagbabago ang ating pananaw. Mararating lamang ang kapayapaan at katahimikan kung mag-uusap ang lahat ng apektado: Moro, Lumad, at Kristiyano. Inatasan na natin si Dean Marvic Leonen na mangasiwa sa ginagawa nating pakikipag-usap sa MILF.
Iiwasan natin ang mga pagkakamaling nangyari sa nakaraang administrasyon, kung saan binulaga na lang ang mga mamamayan ng Mindanao. Hindi tayo puwedeng magbulag-bulagan sa mga dudang may kulay ng pulitika ang proseso, at hindi ang kapakanan ng taumbayan ang tanging interes.
Kinikilala natin ang mga hakbang na ginagawa ng MILF sa pamamagitan ng pagdidisplina sa kanilang hanay. Inaasahan natin na muling magsisimula ang negosasyon pagkatapos ng Ramadan.
Tungkol naman po sa CPP-NPA-NDF: handa na ba kayong maglaan ng kongkretong mungkahi, sa halip na pawang batikos lamang?
Kung kapayapaan din ang hangad ninyo, handa po kami sa malawakang tigil-putukan. Mag-usap tayo.
Mahirap magsimula ang usapan habang mayroon pang amoy ng pulbura sa hangin. Nananawagan ako: huwag po natin hayaang masayang ang napakagandang pagkakataong ito upang magtipon sa ilalim ng iisang adhikain.
Kapayapaan at katahimikan po ang pundasyon ng kaunlaran. Habang nagpapatuloy ang barilan, patuloy din ang pagkakagapos natin sa kahirapan.
Dapat din po nating mabatid: ito ay panahon ng sakripisyo. At ang sakripisyong ito ay magiging puhunan para sa ating kinabukasan. Kaakibat ng ating mga karapatan at kalayaan ay ang tungkulin natin sa kapwa at sa bayan.
Inaasahan ko po ang ating mga kaibigan sa media, lalo na sa radyo at sa print, sa mga nagbablock-time, at sa community newspapers, kayo na po mismo ang magbantay sa inyong hanay.
Mabigyang-buhay sana ang mga batayang prinsipyo ng inyong bokasyon: ang magbigay-linaw sa mahahalagang isyu; ang maging patas at makatotohanan, at ang itaas ang antas ng pampublikong diskurso.
Tungkulin po ng bawat Pilipino na tutukan ang mga pinunong tayo rin naman ang nagluklok sa puwesto. Humakbang mula sa pakikialam tungo sa pakikilahok. Dahil ang nakikialam, walang-hanggan ang reklamo. Ang nakikilahok, nakikibahagi sa solusyon.
Napakatagal na pong namamayani ang pananaw na ang susi sa asenso ay ang intindihin ang sarili kaysa intindihin ang kapwa. Malinaw po sa akin: paano tayo aasenso habang nilalamangan ang kapwa?
Ang hindi nabigyan ng pagkakataong mag-aral, paanong makakakuha ng trabaho? Kung walang trabaho, paanong magiging konsumer? Paanong mag-iimpok sa bangko?
Ngunit kung babaliktarin natin ang pananaw—kung iisipin nating “Dadagdagan ko ang kakayahan ng aking kapwa”—magbubunga po ito, at ang lahat ay magkakaroon ng pagkakataon.
Maganda na po ang nasimulan natin. At mas lalong maganda po ang mararating natin. Ngunit huwag nating kalimutan na mayroong mga nagnanasang hindi tayo magtagumpay. Dahil kapag hindi tayo nagtagumpay, makakabalik na naman sila sa kapangyarihan, at sa pagsasamantala sa taumbayan.
Akin pong paniwala na Diyos at taumbayan ang nagdala sa ating kinalalagyan ngayon. Habang nakatutok tayo sa kapakanan ng ating kapwa, bendisyon at patnubay ay tiyak na maaasahan natin sa Poong Maykapal. At kapag nanalig tayo na ang kasangga natin ay ang Diyos, mayroon ba tayong hindi kakayanin?
Ang mandato nating nakuha sa huling eleksyon ay patunay na umaasa pa rin ang Pilipino sa pagbabago. Iba na talaga ang situwasyon. Puwede na muling mangarap. Tayo nang tumungo sa katuparan ng ating mga pinangarap.
Maraming salamat po.
Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar Binay, Chief Justice Renato Corona, Former Presidents Fidel Valdez Ramos and Joseph Ejercito Estrada; Members of the House of Representatives and the Senate; distinguished members of the diplomatic corps;
My beloved countrymen:
Our administration is facing a forked road. On one direction, decisions are made to protect the welfare of our people; to look after the interest of the majority; to have a firm grip on principles; and to be faithful to the public servant’s sworn oath to serve the country honestly.
This is the straight path.
On the other side, personal interest is the priority, and where one becomes a slave to political considerations to the detriment of our nation.
This is the crooked path.
For a long time, our country lost its way in the crooked path. As days go by (since I became President), the massive scope of the problems we have inherited becomes much clearer. I could almost feel the weight of my responsibilities.
In the first three weeks of our administration, we discovered many things, and I will report to you some of the problems we have uncovered, and the steps we are taking to solve them.
This report is merely a glimpse of our situation. It is not the entire picture of the crises we are facing. The reality was hidden from our people, who seem to have been deliberately obfuscated on the real state of our nation.
In the first six years of this year, government expenditure exceeded our revenues. Our deficit further increased to PhP196.7 billion. Our collection targets, which lack PhP23.8 billion, were not fully met, while we went beyond our spending by PhP45.1 billion.
Our budget for 2010 is PhP1.54 trillion. Of this, only PhP100 billion – or 6.5% of the total budget – can be used for the remaining six months of the current year. Roughly 1% of the total budget is left for each of the remaining month.
Where did the funds go?
A calamity fund worth PhP2 billion was reserved in preparation for anticipated calamities. Of this already miniscule amount, at a time when the rainy season has yet to set in, PhP1.4 billion or 70% was already spent.
The entire province of Pampanga received PhP108 million. Of this, PhP105 million went to only one district. On the other hand, the province of Pangasinan, which was severely affected by Typhoon Pepeng, received a mere PhP5 million, which had to be used to fix damages inflicted not even by Pepeng, but by a previous typhoon, Cosme.
The funds were released on election month, which was seven months after the typhoon. What will happen if a typhoon arrives tomorrow? The fund has been used up to repair damage from typhoons that hit us last year. Our future will pay for the greed of yesterday.
This is also what happened to the funds of the MWSS. Just recently, people lined up for water while the leadership of the MWSS rewarded itself even though the pensions of retired employees remain unpaid.
The entire payroll of the MWSS amounts to 51.4 million pesos annually.
But this isn’t the full extent of what they receive: they receive additional allowances and benefits amounting to 81.1 million pesos.
In short, they receive 211.5 million pesos annually. Twenty four percent of this is for normal salaries, and sixty six percent is added on.
The average worker receives up to 13th month pay plus a cash gift. In the MWSS, they receive the equivalent of over thirty months pay if you include all their additional bonuses and allowances.
What we discovered in the case of the salaries of their board of trustees is even more shocking. Let’s take a look at the allowances they receive:
Attending board of trustees and board committee meetings, and you get fourteen thousands pesos. This totals ninety eight thousand pesos a month. They also get an annual grocery incentive of eighty thousand pesos.
And that’s not all. They get a mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, and financial assistance.
They not only get a Christmas bonus, but an additional Christmas package as well. Each of these amounts to eighty thousand pesos. All in all, each member of the board receives two and a half million pesos a year exclusive of car service, technical assistance, and loans. Let me repeat. They award themselves all of these while being in arrears for the pensions of their retired employees.
Even the La Mesa watershed wasn’t spared. In order to ensure an adequate supply of water, we need to protect our watersheds.
In watersheds, trees are needed. Where there should be trees, they built homes for the top officials of the MWSS.
We cannot remove them from their positions quickly because they are among the midnight appointees of former president Arroyo. We are investigating all of these things. But if they have any shame left, they should voluntarily relinquish their positions.
Now let’s discuss funds for infrastructure. The DPWH identified two hundred forty six priority safety projects to be funded by the motor vehicle user’s charge. This needs a budget of 425 million pesos. What they ended up funding were only 28 projects. They disregarded 218 projects and replaced these with seventy projects that weren’t in the plans. The 425 million pesos originally asked for became 480 million pesos, increasing because of projects allocated for a favored few.
These projects make no sense: unstudied and unprepared for, sprouting like mushrooms.
The era of such projects is at an end. Under our administration, there will be no quotas, there will be no overpricing, the funds of the people will be spent for the people.
There’s more. Five days before the term of the previous administration ended, they ordered 3.5 billion pesos to be released for the rehabilitation of those affected by typhoons Ondoy and Pepeng. This was supposed to fund eighty-nine projects. But nineteen of these projects amounting to 981 million pesos didn’t go through public bidding. Special Allotment Release Orders hadn’t even been released and yet the contracts were already signed. It’s a good thing Secretary Rogelio Singson spotted and stopped them.
Instead, they will all go through the proper bidding, and the funds will be used to provide relief to those who lost their homes due to typhoons Ondoy and Pepeng.
Let’s discuss what happened in Napocor. From 2001 to 2004, the government forced Napocor to sell electricity at a loss to prevent increases in electricity rates. The real motivation for this is that they were preparing for the election.
As a result, in 2004, NAPOCOR slumped deeply in debt. The government was obligated to shoulder the 200 billion pesos it owed.
What the public thought they saved from electricity, we are now paying for using public coffers. Not only are we paying for the cost of electricity; we are also paying for the interest arising from the debt.
If the money we borrowed was used properly, then there would be added assurance that constant supply of electricity is available. However, this decision was based on bad politics, not on the true needs of the people.
The people, after having to sacrifice, suffered even more.
This is also what happened to the MRT. The government tried again to buy the people’s love. The operator was forced to keep the rates low.
In effect, the guarantee given to the operator that he will still be able to recoup his investment was not fulfilled. Because of this, Landbank and the Development Bank of the Philippines were ordered to purchase the MRT.
The money of the people was used in exchange for an operation that was losing money.
Let us now move on to the funds of the National Food Authority (NFA).
In 2004: 117,000 metric tons (of rice) was the shortage in the supply of the Philippines. What they (the government) bought were 900,000 metric tons.
Even if you multiply for more than seven times the amount of shortage, they still bought more than what was needed.
In 2007: 589,000 metric tons was the shortage in the supply of the Philippines. What they bought were 1.827 million metric tons. Even if you multiply for more than three times the amount of shortage, they again bought more than what was needed.
What hurts is, because they keep purchasing more than what they need year after year, the excess rice that had to be stored in warehouses ended up rotting, just like what happened in 2008.
Is this not a crime, letting rice rot, despite the fact that there are 4 million Filipinos who do not eat three times a day?
The result is NFA’s current debt of 177 billion pesos.
This money that was wasted could have funded the following:
– The budget of the entire judiciary, which is at 12.7 billion pesos this year.
– The Conditional Cash Transfers for the following year, which cost 29.6 billion pesos.
– All the classrooms that our country needs, which cost 130 billion pesos.
This way of doing things is revolting. Money was there only to be wasted. You have heard how the public coffers were squandered. This is what is clear to me now: change can only come from our determination to stamp out this extravagance and profligacy.
That is why starting now: we will stop the wasteful use of government funds. We will eradicate projects that are wrong.
This is the point of what we call the zero-based approach in our budget.
What used to be the norm was every year, the budget merely gets re-enacted without plugging the holes.
Next month we will be submitting a budget that accurately identifies the problem and gives much attention on the right solution.
Those that I have mentioned were only some of the problems we have discovered. Here now are examples of the steps we are undertaking to solve them.
There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of 26 million pesos.
If he can afford to buy a Lamborghini, why can’t he pay his taxes?
A case has already been filed against him. Through the leadership of Finance Secretary Cesar Purisima, BIR Commissioner Kim Henares, Customs Commissioner Lito Alvarez, and Justice Secretary Leila de Lima, every week we have new cases filed against smugglers and against those who do not pay the right taxes.
We have also already identified the suspects of the cases of Francisco Baldomero, Jose Daguio and Miguel Belen, 3 of the 6 incidents of extralegal killings since we assumed the Presidency.
Fifty percent (50%) of these incidents of extralegal killings are now on their way to being resolved.
We will not stop the pursuit of the remaining half of these killings until justice has been achieved.
We will hold murderers accountable. We will also hold those who are corrupt that work in government accountable for their actions.
We have begun forming our Truth Commission, through the leadership of former Chief Justice Hilario Davide. We will search for the truth on the alleged wrongdoing committed in the last nine years.
This week, I will sign the first ever Executive Order on the formation of this Truth Commission.
If the answer to justice is accountability, the answer to the dearth in funds is a new and creative approach to our long-standing problems.
We have so many needs: from education, infrastructure, health, military, police and more. Our funds will not be enough to meet them.
No matter how massive the deficit is that may keep us from paying for this list of needs, I am heartened because many have already expressed renewed interest and confidence in the Philippines.
Our solution: public-private partnerships. Although no contract has been signed yet, I can say that ongoing talks with interested investors will yield fruitful outcomes.
There are some who have already shown interest and want to build an expressway from Manila that will pass through Bulacan, Nueva Ecija, Nueva Vizcaya, until the end of Cagayan Valley, without the government having to spend a single peso.
On national defense:
We have 36,000 nautical miles of shoreline, but we only have 32 boats.
These boats are as old as the time of (US General Douglas) MacArthur.
Some had this proposition: they will rent the Navy headquarters on Roxas Boulevard and the Naval Station in Fort Bonifacio.
They will take care of the funding necessary to transfer the Navy Headquarters to Camp Aguinaldo. Immediately, we will be given 100 million dollars. Furthermore, they will give us a portion of their profits from their businesses that would occupy the land they will rent.
In short, we will meet our needs without spending, and we will also earn.
There have already been many proposals from local to foreign investors to provide for our various needs.
From these public-private partnerships, our economy will grow and every Filipino will be the beneficiary. There are so many sectors that could benefit from this.
We will be able to construct the needed infrastructure in order to help tourism grow.
In agriculture, we will be able to have access to grains terminals, refrigeration facilities, orderly road networks and post-harvest facilities.
If we can fix out food supply chain with the help of the private sector, instead of importing, we will hopefully be able to supply for the needs of the global market.
The prices of commodities will go down if we are able to make this efficient railway system a reality. It will be cheaper and faster, and it will be easier for travelers to avoid crooked cops and rebels.
A reminder to all: creating jobs is foremost on our agenda, and the creation of jobs will come from the growth of our industries. Growth will only be possible if we streamline processes to make them predictable, reliable and efficient for those who want to invest.
We make sure that the Build-Operate-and-Transfer projects will undergo quick and efficient processes. With the help of all government agencies concerned and the people, a process that used to take as short as a year and as long as a decade will now only take six months.
The Department of Trade and Industry has already taken steps to effect this change, under the leadership of Secretary Gregory Domingo:
The never-ending horror story of registering business names, which used to take a minimum of four to eight hours depending on the day, will be cut down drastically to fifteen minutes.
What used to be a check list of thirty-six documents will be shortened to a list of six, and the old eight-page application form will be whittled down to one page.
I call on our local government units to review its own procedures. While we look for more ways to streamline our processes to make business start-ups easier, I hope the LGUs can also find ways to implement reforms that will be consistent with the ones we have already started.
All will certainly benefit from this streamlining — be it businessmen, soldiers, rebels and ordinary Filipinos. As long as the interests of Filipinos will not be jeopardized, we will explore all available avenues to make this a reality. We must start now, and we should all help achieve this and not stand in each other’s way.
The time when we will no longer be made to choose between our people’s security and the future of our children is upon us now.
Once we implement these public-private partnerships, we will be able to fund public service in accordance with our platform.
This will enable us to fund our plans for education.
We will be able to expand our basic education cycle from seven years to the global standard of twelve years.
We can build more classrooms, and we will fund service contracting under the Government Assistance to Students and Teachers in Private Education Program (GASTPE).
Conditional cash transfers that aim to lessen the burden of education on parents will also be funded if this partnership becomes a reality.
Our plans for improving PhilHealth can now be within reach.
First, we will identify the correct number of Filipinos who sorely need PhilHealth coverage, as current data is conflicting on this matter. On one hand, PhilHealth says that eighty-seven percent (87%) of Filipinos are covered, then lowers the number to only fifty-three percent (53%). On the other hand, the National Statistics Office says that only thirty-eight percent (38%) of Filipinos are covered by Philhealth.
Even as we speak, Secretary Dinky Soliman and the Department of Social Welfare and Development are moving to implement the National Household Targeting System that will identify the families that most urgently need assistance. An estimated 9 billion pesos is needed in order to provide coverage for five million poor Filipinos.
Our country is beginning to see better days ahead. The private sector, the League of Provinces headed by Governor Alfonso Umali, together with Governors L-Ray Villafuerte and Icot Petilla, are now ready to do their share when it comes to shouldering the financial burden. I know that the League of Cities under the leadership of Mayor Oscar Rodriguez will not be far behind.
If the local governments share in our goals, I know that I can surely count on Congress, the institution where I began public service, to push for our agenda for change.
Our Cabinet has already showed it skill by identifying not just problems but also proposing solutions in a matter of three weeks.
In the aftermath of Typhoon Basyang, we were told by those in the power sector that we would be without electricity for four days. The quick action of Secretary Rene Almendras and the Department of Energy resulted in the restoration of power to almost all those affected within twenty-four hours.
The so-called water shortage in Metro Manila was quickly attended to by Secretary Rogelio Singson and the Department of Public Works and Highways. Secretary Singson did it without prodding, which alleviated the suffering of those affected.
We also witnessed the competence and initiative of those we appointed to be part of our Cabinet. It is but just that they not be forced to go through the eye of a needle to be confirmed by the Commission on Appointments.
Should this happen, competent Filipinos will be encouraged to help our country by becoming public servants.
In the soonest possible time, we will convene the Legislative Executive Development Advisory Council (LEDAC) to discuss the important bills that need to be addressed. Rest assured that I will keep an open mind and treat you honorably.
We will push for the Fiscal Responsibility Bill, which will limit spending bills only for appropriations that have identified a source of funding. We need 104.1 billion pesos to fund those laws already passed but whose implementation remains pending because of lack of funds.
We will re-evaluate fiscal incentives given in the past. Now that we are tightening our purse strings, we need to identify those incentives that will remain and those that need to be done away with.
We will not allow another NBN-ZTE scandal to happen again. Whether from local or foreign sources, all proposed contracts must undergo the scrutiny of correct procedures. I now ask for your help with amending our Procurement Law.
According to our Constitution, it is the government’s duty to ensure that the market is fair for all. No monopolies, no cartels that kill competition. We need an Anti-Trust Law that will give life to these principles, to afford Small- and Medium-Scale Enterprises the opportunity to participate in the growth of our economy.
Let us pass into law the National Land Use Bill.
It was in 1935, during the Commonwealth, that the National Defense Act was passed. There is a need to amend for a new law that is more responsive to the current needs of national security.
I appeal to our legislators to pass the Whistleblower’s Bill to eradicate the prevalent culture of fear and silence that has hounded our system.
We will strengthen the Witness Protection Program. We must remember that from 2009 to 2010 alone, cases which involved the participation of witnesses under the program resulted in a ninety-five percent conviction.
There is a need to review our laws. I call on our lawmakers to begin a re-codification of our laws to ensure harmony in legislation and eliminate contradictions.
These laws serve as the basis of order in our land, but the foundation of all rests on the principle that we cannot grow without peace and order.
We face two obstacles on our road to peace: the situation in Mindanao and the continued revolt of the CPP-NPA-NDF.
Our view has not changed when it comes to the situation in Mindanao. We will only achieve lasting peace if all stakeholders engage in an honest dialogue: may they be Moro, Lumad, or Christian. We have asked Dean Marvic Leonen to head our efforts to talk to the MILF.
We will learn from the mistakes of the past administration, that suddenly announced an agreement reached without consultations from all concerned. We are not blind to the fact that it was done with political motivation, and that the interest behind it was not that of the people.
We recognize the efforts of the MILF to discipline those within its ranks. We are hopeful that the negotiations will begin after Ramadan.
To the CPP-NPA-NDF: are you prepared to put forth concrete solutions rather than pure criticism and finger-pointing?
If it is peace you truly desire, then we are ready for an immediate cease-fire. Let us go back to the table and begin talking again.
It is difficult to begin discussions in earnest if the smell of gun powder still hangs in the air. I call on everyone concerned not to waste a good opportunity to rally behind our common aspiration for peace.
Our foundation for growth is peace. We will continue to be shackled by poverty if the crossfire persists.
We must understand that now is a time for sacrifice. It is this sacrifice that will pave the way for a better future. With our freedom comes our responsibility to do good unto our fellows and to our country.
To our friends in media, especially those in radio and print, to the block-timers and those in our community newspapers, I trust that you will take up the cudgels to police your own ranks.
May you give new meaning to the principles of your vocation: to provide clarity to pressing issues; to be fair and truthful in your reporting, and to raise the level of public discourse.
It is every Filipino’s duty to closely watch the leaders that you have elected. I encourage everyone to take a step towards participation rather than fault-finding. The former takes part in finding a solution; from the latter, never-ending complaints.
We have always known that the key to growth is putting the interest of others beyond one’s own. One thing is clear: how do we move forward if we keep putting others down?
How will those without education secure quality jobs? How will the unemployed become consumers? How will they save money for their future needs?
If we change all this, if we prioritize enabling others, we will open a world of opportunities not just for ourselves but for those who direly need it.
We have already begun the process of change, and we are now able to dream of better things for our country. Let us not forget that there are those who wish us to fail, so that they will once again reclaim power to do as they please at the expense of our people.
My firm belief is that our fate is in the hands of God and our people. While we focus on uplifting the lives of our fellow men, I have an unshakeable faith that Almighty God will give us His blessings and support. If we remain firm in our belief that God is on our side, is there anything impossible for us to achieve?
The mandate we received last May 10 is testament to the fact that the Filipino continues to hope for true change. The situation is not what it was before; we can all dream again. Let us all become one in achieving a fulfilment of our hopes and aspirations for our country.
Underlying all the problems and weaknesses of the country and the economy is corruption and the weakening of our democratic institutions. We will restore trust in government by emphasizing good governance and anti-corruption to increase investment, regain people’s trust to pay proper taxes and ensure that the people’s money is well spent.
We will uphold the people’s right to information on matters of public concern and vigorously support the enactment of the Freedom of Information Bill in Congress
We will ensure transparency and citizen’s participation in crafting and implementing laws, rules and regulations and in monitoring the programs, projects and transactions of government
We will put into place a “zero-based” budgeting system to enhance transparency and improve efficiency.
Budget allocations for the different agencies of government will be shaped by their performance and their compliance with the reports of the Commission on Audit (COA)
Qualification standards, especially on eligibility, will be strictly followed, and at least half of the positions of Undersecretaries and Assistant Secretaries will be filled by honest and competent career civil servants to ensure continuity and sustainability of effective policies and programs
Performances of government agencies and civil servants will be evaluated rationally and systematically through an effective and measurable performance management system to be approved by the Civil Service Commission (CSC).
We will have broad based and inclusive economic growth through increased incomes by generating quality jobs and attracting more investments.
We will have a government that is not corrupt and is business-friendly, thus lowering the cost of doing business and production in the country.
We will reduce red tape, reducing the number of processes required to do business in the country.
We will improve infrastructure in transportation and housing, which will generate jobs and also support investments.
We will directly target industries with the greatest potential for growth and where the Philippines has a competitive advantage, industries that have already been identified by domestic and foreign business groups and include agribusiness, business process outsourcing, creative industries, infrastructure, manufacturing and logistics, socially responsible mining and tourism and retirement.
In the immediate short term, we will take care of the most vulnerable and marginalized sectors of society through programs such as conditional cash transfers dedicated, among others, to keeping healthy young children in school.
We will promote entrepreneurship that provides employment, helping small and medium firms with access to credit and diffusion of technologies and skills.
We will focus investment expenditure in the very urgent need to invest in education (especially in early childhood education) and in health.
We will promote technical/vocational schools to strengthen the labor supply and better match the needs of enterprises.
A clean government will facilitate macroeconomic stability, reigning in the record level deficits of the current administration, and bringing down the debt-to-GDP ratio.
We will plug revenue leakages by having competent and trustworthy tax collectors, broadening the tax base.
We will instruct DBM to lead an internal government review of all its costs and present a plan to reduce government overhead within six months.
We will review policies and programs to enhance productivity and modernize the agricultural sector.
We will increase investments to provide quality jobs for Filipinos by lowering the costs of doing business in our country.
We will level the playing field for businesses. We will encourage free and fair competition in a level playing field that stresses that one need not be a crony in order to be successful in this country. We will make our bidding and procurement policies and processes more transparent, and punish those who seek to circumvent procurement laws through collusion and other illegal means.
We will have easier, streamlined business procedures. We will transform our systems to foster service to the public. We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with government, such as the payment of taxes. We will do this on a national as well as the local level.
We will strategically target assistance to small and medium enterprises, and key industries where we have a competitive advantage to maximize our potential for job generation.
We will support small and medium enterprises. SMEs are the main generators of jobs in the country. But they lack access to credit and finance. They also need access to markets and to technology so that they can connect to the global economy. An Aquino government will not only encourage microfinance and small business loans, which was a cause supported by former President Corazon Aquino, but will also harness the remittances of our overseas workers by creating financial instruments that can attract remittances and be channeled to the rural sector. For market and technology access, we will encourage the private sector to link up with local firms, using information exchange, by giving the private sector the appropriate incentives.
We will directly target industries with the greatest potential for growth and where the Philippines has a competitive advantage, industries that have already been identified by domestic and foreign business groups and include agribusiness, business process outsourcing, creative industries, infrastructure, manufacturing and logistics, socially-responsible mining and tourism and retirement.
We will invest in our country’s top resource, our human resource, to make us more competitive and employable.
We will overhaul basic education by having universal pre-schooling and strengthening our basic education system to a 12-year cycle. For students who want to work after high school, we will strengthen technical-vocational education to provide them with needed skills.
We will solve the labor-mismatch problem by promoting better coordination between employers, academia and government, including through strengthening both public (e.g. Public Employment Service Offices -PESO) and private sector labor market information and exchange institutions, especially at the local levels.
Tourism is a key industry with a high potential for growth in the Philippines. Tourism generates jobs and provides livelihood and income for workers of all skill levels, from managers and CEOs to cooks, busboys and souvenir makers (weavers and craftspeople).
Tourism also helps us remember and celebrate our identity as Filipinos and appreciate our unique culture as we share it with each other and the world.
In 2009, total tourist traffic in the top fourteen (14) destinations in the Philippines reached 8.9 million, posting a 14% growth.
As president, Noynoy Aquino will promote the Philippines as a prime destination that offers world-class tourist facilities and products through sustainable economic development while protecting and preserving the environment.
We will harness our natural resources by involving our local communities in sustainable tourism endeavors. This will be achieved in a way that meets the needs of today’s discerning travelers without compromising the environment, and the future of our citizens. Our abundance in resources – beaches, mountains, caves and historical sites – can make key growth areas such as ecotourism, health and wellness and medical tourism thrive to the benefit of our economy and our people.
Noynoy Aquino will support our target industries with a level playing field for businesses to encourage free and fair competition by making our business procedures easier and more streamlined. We will transform our systems in a way that ensures quality service to the public. We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with government, such as the payment of taxes. We will do this on a national as well as the local level.
We will support small and medium enterprises by providing them access to credit, technologies and skills that would enable them to compete in the global economy. We will invest in our country’s top resource, our people, to make us more competitive and employable. We will also support the empowerment of communities through skills training and workshops that would enable them to plan and implement projects that will meet both their short-term and long-term needs.
We will have a complementary infrastructure system that will include the construction and repair of roads, bridges, airports and seaports to increase accessibility to our sites.
We will adopt a national sanitation program that will lead to universal access to sanitary toilets. This will improve family and public health, protect the groundwater, lakes, rivers and coastal waters from domestic waste contamination and indirectly, make tourism destinations more attractive and safer.
An Aquino administration will be dedicated to upholding and enforcing law and order – within its security forces as well as among those who pose a genuine threat to our internal security.
The ProPinoy Project is a Global Community Center for all things Pinoy, to connect Filipinos at home and abroad by creating a space for ideas, trends and analyses about the Philippines and the global Pinoy community to inspire informed discussion and transformative action.