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Rural poverty approaches, policies and strategies in the Philippines

Over the past two decades, the Government of the Philippines has singled out poverty reduction as one of its highest priorities. The current Medium-Term Development Plan 2004-2010 (MTDP) defines policies and programmes designed to fight poverty by building prosperity for the greatest number of Filipino people. The National Economic and Development Authority (NEDA), the country's central planning agency, worked closely with the government on the plan's 10-point agenda. The MTDP focuses on:

• macroeconomic stability, with equitable growth based on free enterprise
• modernization of agriculture and fisheries, with a focus on social equity
• comprehensive development that includes protection for  vulnerable groups, such as women, children and the elderly
• good governance and the rule of law

Since agriculture plays a major role in generating incomes and employment in rural areas, development of the sector is an essential part of any programme to reduce poverty. The MTDP notes that the agricultural sector alone cannot substantially alleviate poverty in rural areas. The plan adopts more a holistic approach to reducing rural poverty through the promotion of agribusiness.

Development of rural microenterprises is a key element in the government's strategy. The MTDP gives special emphasis to the need for vigorous support for micro, small and medium enterprises and agribusinesses, because they are the most efficient generators of jobs in terms of jobs-to-investment ratio. A key strategy includes developing 2 million hectares of new lands for agribusiness, which is expected to generate 2 million new jobs and improve the productivity and incomes of poor Filipino farmers. The plan also aims to create 3 million microenterprises, providing them with credit, technology and marketing support.

The plan gives priority to:

• supporting rural enterprises and cooperatives
• constructing more roads connecting farmers to markets
• providing farmers and indigenous peoples with greater access to land, credit and technology
• lessening exploitation of farmers and fishers
• providing more strategic, effective and timely interventions and safety nets
• improving the quality of life of poor rural people

As stated in the MTDP, the goals of the agribusiness approach are to substantially expand the production base, improve production and distribution efficiency, and promote equitable distribution of production and productivity gains.

The government's overall strategy focuses on creating 6 to 10 million jobs, providing education for all, and reducing the incidence of poverty from 34 per cent to 17 per cent. The core poverty eradication programme is known as KALAHI, meaning "linking arms against poverty". It promotes more rapid asset reform, including agrarian reform and reforms involving ancestral domain issues. The programme works to make essential services, including clean water and health care, more accessible and more affordable. It supports income-generating activities through credit and capacity-building, and participation of poor people in decision-making. A programme goal is to provide protection and security for vulnerable poor people, including children, young people with special needs, women in difficult circumstances, people with disabilities and the elderly.
 

Source: IFAD