PHILIPPINES
2013 Philippines Development Forum
Marco Polo Hotel, Davao City, Philippines
February 4-5, 2013
Summary of Event
Background
1.
The 2013 Philippines Development Forum (PDF) was held at the Marco Polo Hotel,
Davao City, Philippines on February 4-5, 2013. The PDF is a multi-stakeholder forum that
serves as the Government’s main mechanism to facilitate substantive policy dialogue on the
country’s development agenda among participants from national and local government units,
civil society, academia, private sector, and the international development partners.
2.
As in past PDFs, the Government of the Philippines, led by the Department of Finance,
organized and hosted the 2013 PDF with support from the Bank. Finance Secretary Cesar
Purisima served as the Chair of the meeting. Mr. Motoo Konishi, World Bank Country Director
for the Philippines, served as Co-Chair for the meeting. President Simeon Benigno Aquino
delivered the closing remarks. Government representatives at the meeting included 12 Cabinet
secretaries and other high-level officials from various Government agencies. Seventeen
delegations1from multilateral and bilateral partners and agencies were represented.
Representatives from a variety of national and international civil society organizations (CSOs),
private sector, chambers of commerce, and other branches of Government attended. In total,
about 320 participants attended.
3.
The first PDF under the Aquino administration was held two years ago in February 2011
with the theme of “Implementing President Aquino’s Social Contract to Achieve Inclusive
Growth”. The forum then discussed the President’s Social Contract with the Filipino People2
the draft 2011-2016 Philippines Development Plan (PDP), and the Government’s priorities under
the Aquino administration.
Overview of Agenda and Plenary Presentations
4.
The overall theme of the 2013 PDF was “President Aquino’s Social Contract: Moving
Forward in Achieving Inclusive Growth and Good Governance”. As the second PDF event
under the Aquino administration, this forum served as a “report back” on the progress under the
Social Contract and a discussion of the remaining challenges for the remaining 3 years or so
under the current administration. The 2013 PDF also had a special focus on Mindanao in order to
1
Included delegations from Australia, Canada, China, France, Germany, Japan, Korea, New Zealand, Spain, United
Kingdom and the United States of America. International organizations which participated in the forum included the
Asian Development, European Union, International Monetary Fund, Saudi Fund for Development, various United
Nations agencies and the World Bank Group.
2
President Benigno S. Aquino III’s Social Contract with the Filipino People is the Administration’s platform for its
term until 2016. It envisions a country that has achieved inclusive growth and is characterized by rapid, sustained,
and broad-based economic growth that is focused on creating more jobs and new opportunities to achieve full
employment, and on significantly reducing poverty. The Social Contract outlines 16 priority areas, and is further
translated into a more detailed blueprint in the Philippine Development Plan 2016.
2013 Philippines Development Forum
Summary of Event
integrate into the discussions the development challenges of the region which is critical to the
country’s overall development. This topic was particularly important in light of the
breakthrough signing of a Framework Agreement on Bangsamoro in October 2012, which is a
major step towards a peace agreement for Mindanao.
5.
The Government re-structured the program for the 2013 PDF to make it as interactive as
possible. Reading of statements by delegations was strongly discouraged and instead, written
statements were allowed to be distributed at the event3. A panel set-up was used for the first
topic on the macroeconomic developments. This allowed one representative each from civil
society, private sector, and academe to share their reactions to the presentations, so that the
voices and views from these groups of stakeholders were heard upfront. After the panelists, other
stakeholders, including development partners were also given a chance to react and raise
questions on the topic. Break-out sessions were organized by “clustered” working groups to align
with the Government’s Cabinet cluster themes. (See attached program.)
6.
The Chair and Co-Chair delivered the welcome remarks and opening statements
respectively to open the Forum and set the stage for the meeting. The Government presentations
and discussions at the first plenary session focused on two main themes: the country’s
macroeconomic, budget and fiscal performance; and, Mindanao. Economic Planning Secretary
Arsenio Balisacan highlighted the Philippines’ growth of 6.6% for the full year, noting that this
growth was broad-based with almost all sectors significantly contributing to the output, and close
to the 7 to 8-percent growth target set in the Philippine Development Plan. He reported that the
country had been commended for its sound macroeconomic fundamentals, with low and stable
inflation, favorable interest rates, sustainable fiscal and external position, a strong financial
sector, and an improvement in the Philippines’ global competitiveness ranking. Secretary
Balisacan recognized that more needs to be done in terms of attaining inclusive growth. While
noting that official data on poverty for 2012 was not yet available, Secretary Balisacan observed
that indicators on self-rated poverty and severe hunger were on the decline.
7.
On public expenditure management, Budget Secretary Florencio Abad reported that the
Government has been able to improve the pace and quality of public spending which was a key
contributor to the country’s strong GDP growth last year. He reported on key indicators such as
increased disbursements, infrastructure spending, government final consumption expenditures,
and public construction which have provided the country with the needed momentum to face key
development challenges in the remaining three-and-a-half years of the Administration,
particularly in terms of ensuring inclusive economic growth and poverty reduction through
creation of more jobs and livelihood opportunities.
8.
On fiscal management, Finance Secretary Cesar Purisima (Chair of the PDF) zeroed in on
the Government’s rationalization of the ODA process through a new financing framework for
national projects. Secretary Purisima reported that under the Aquino administration from July
2010 to June 2013, 60 projects totaling 568 billion pesos would have been implemented, bidded
out, or appraised. Under the new framework, projects would be developed and approved and the
3
Written statements were provided by the European Union, United States, United Nations Country Team, Joint
Foreign Chambers of the Philippines, and the Official Development Assistance – Gender and Development
Network, which are now posted at the PDF website: pdf.ph.
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2013 Philippines Development Forum
Summary of Event
funding source would subsequently be identified by the DoF independent of the financing for
project preparation. Secretary Purisima enjoined the country’s international development
partners and other stakeholders to provide continued support and cooperation to these reforms.
Secretary Prusima also noted the country’ improved revenue collections, particularly the
expected benefits from the new Sin Tax Law, and noted the need to build similar capacity in the
ARMM to improve revenue collections there. Panel reactors for this topic consisted of Professor
Cielito Habito (from academe), Ms. Milwida Guevarra (from civil society), and Mr. Senen
Bacani (from private sector).
9.
On the topic of Mindanao,Secretary Luwalhati Antonino, Chair of the Mindanao
Development Authority (MinDA), reported on the current state of Mindanao, noting that the
country's positive environment of strong business confidence and brighter economic growth
prospects, and the major reforms instituted by the national government have been mirrored in
Mindanao. Secretary Teresita Deles, Presidential Advisor on the Peace Process, focused her
presentation on the Framework Agreement on the Bangsamoro and its potential effects on the
political, economic and social landscape of Mindanao.
10.
Mr. Mohammad Amin, Secretary of the Moro Islamic Liberation Front (MILF) Central
Committee delivered MILF Chair’s Ibrahim Murad’s written speech. MILF expressed its
gratitude for being invited to the PDF. It recognized the importance of development partners in
contributing to the Bangsamoro transitional process and in the development of Mindanao, which
would contribute to the overall stability in the Southeast Asian region. MILF noted that savings
generated by the Philippine Government in the absence of war can be utilized to increase the
budget for social, infrastructure and other projects. The statement noted that the MILF will be
awaiting for the formation of the Bangsamoro government in rebuilding the its economy and
hopefully sustain its growth. Meantime, MILF expressed need for assistance for former
combatants in terms of livelihood, education, protection against flooding, among other things.
Key Messages and Recommendations
11.
The main objective of the 2013 PDF was to generate consensus from multi-stakeholder
discussions on key policy recommendation that the Government should consider in order to help
achieve its targets under the Social Contract in the remaining three years under the Aquino
Administration. Hence, the key messages at the PDF are best captured in the recommendations
from each of the six cluster/sub-cluster groups.
12.
On Economic Development, the key message was that since the country has made strides
in expanding the productive capacity of its economy, focus should now be given towards making
it more inclusive, by ensuring that more and better quality jobs are created. The challenge of
providing good jobs to the projected 14.6 million unemployed and under-employed Filipinos in
2016 was highlighted, and urgency of addressing this was stressed given the opportunities to
benefit from the rebalancing that is taking place in the region.
13.
The need to continue to improve the environment for the private sector to generate jobs in
the next 3 years was recommended, especially in agriculture and tourism given the strong
forward and backward linkages in these sectors. It was suggested that the cost of doing business
be reduced through simplification and streamlining of business regulation and processes (such as
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national single window, business entry and licensing). The need to urgently remove barriers to
entry for private businesses, especially in the areas of inter-island shipping, which would help
ease the pressure on food prices was also stressed. In that regard, now that the country had
achieved increased palay production, the need to look at crops in which the Philippines has
comparative advantage was pointed out. To further support this agenda, critical laws such as the
National Land Use Code, the Competition Policy Law and the Cabotage Law were
recommended to be enacted or revisited. All of these would have country- wide impacts, but
more so in Mindanao, which was recognized as the food basket of the country and where
inclusive growth would make the greatest difference in people's lives.
14.
The importance of better infrastructure to more inclusive development was discussed,
noting that infrastructure spending by government needed to increase from 2.6 percent to 5
percent of the GDP by 2016. A coherent and efficient intermodal transport roadmap with
backbone links to growth areas was suggested for adoption through close coordination of line
agencies (Departments of Transportation and Communication, and Public Works and Highways).
And, for Mindanao, the need to augment the stimulus funds for infrastructure development
(power, roads, and ports) was noted as essential to reap the dividends of peace and stability. To
sustainably finance this and other planned increases in public spending, the discussions
highlighted the need to pass the Fiscal Incentives Bill, which was expected to help in leveling the
playing field and provide support to strategic, job-creating, economic activities.
15.
On Human Development and Poverty Reduction, expanding the access and improving the
quality of the flagship programs in health, education and social protection -- including the
conditional cash transfer program – was noted as essential for the inclusive growth agenda.
Rigorous monitoring and impact evaluation of these programs and the availability of credible,
frequent and disaggregated data, was recommended. In addition, the need for the government’s
programs to be increasingly integrated and converged at the national, regional, and local levels,
was stressed, with a particular focus of programs on disadvantaged groups, including out-ofschool youth, indigenous peoples, persons with disabilities, and drop-outs. Finally, in the interest
of better jobs, it was suggested that public-private partnerships be strengthened to better address
the skills mismatch, and re-alignment of the curriculum to better meet labor market needs.
16.
On Justice and Peace, the key challenge that was articulated was to re-establish trust in
the justice system which could be achieved by addressing outdated laws, clearing the large
backlogs in court cases, decongesting jails, and removing inefficiency and corruption.
Recommendations focused on strengthening information systems and linking budget to
performance for state institutions, based on clearly defined targets. At the same time the need to
improve economic justice and support community-based traditional systems of justice that
handle the vast majority of disputes was recommended. Problems with traditional justice
mechanisms at the barangay level were also identified, particularly for groups marginalized from
local power structures, including women and children. The need for better interface between
state and non-state justice institutions was discussed, particularly in Mindanao and the
Bangsamoro, where traditional systems remain the predominant forum for dispute resolution.
Support for the Shari'a justice system was also identified as an important priority in the context
of the Framework Agreement on the Bangsamoro.
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2013 Philippines Development Forum
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17.
On Climate Change Adaptation and Mitigation, it was noted that climate change and
disaster risks are issues critical to sustainable development and national security issues, and that
the Government has developed a comprehensive, innovative and much welcome climate change
and disaster reform agenda. It was noted that Government's challenge in the next 3 years is to
complete the reforms, address bottlenecks, and speed up implementation, which would require
convergence of government agencies, local government units and development partners; fast
tracking the consolidation of vulnerability and risk assessments; continuing to improve disaster
risk management; and mobilizing effectively the needed resources in technology, capacity and
financing. In Mindanao, it was suggested that the government could consider adopting an
ecosystem-based "reef to ridge" approach, whereby upstream (watershed), midstream, and
downstream (coastal areas) areas are considered in an integrated manner.
18.
On Good Governance and Anti-Corruption, it was agreed that while the government has
made significant gains in the areas of public financial management, procurement and anticorruption reforms, much remains to be done to ensure the sustainability of the reform
momentum. Further strengthening the links between government’s planning, budgeting and
performance management systems was recommended to ensure that citizens feel the immediate
and direct benefits of good governance. Strengthening the bureaucracy’s capacity to more
meaningfully engage with citizens, civil society, business, and other stakeholders in open,
transparent and accountable manner was also recommended, while recognizing that reform
stakeholders also face capacity and resource constraints in effectively engaging both national and
local government processes. Three broad areas for action in helping sustain reforms were
recommended: build and empower constituencies for reform that will demand for and support
good governance; strengthen monitoring and evaluation mechanisms, especially those related to
public financial management and performance management systems; and give special attention
to governance reform and institution building efforts in Mindanao within the framework of the
President’s Social Contract, taking into consideration its development, humanitarian and peace
building context.
Conclusion
19.
It was agreed that Mr. Konishi as Co-Chair of the PDF deliver the Highlights of the PDF
prepared jointly by the DOF and the World Bank. He summarized the recommendations from the
cluster/sub-cluster discussions. On overall messages, the Co-Chair reported that based on what
was heard from many stakeholders at the forum, the Philippines should be commended for its
sound and stable macroeconomic fundamentals, improving fiscal situation, determined fight
against corruption, and transparency in various levels of government. As a result, the Co-Chair
reported, there was consensus at the PDF that this Administration’s commitment to good
governance was genuine, and this has contributed to a breakthrough in the peace negotiations in
Mindanao, higher confidence in the prospects for the country, and an upsurge in the country’s
economic growth.
20.
The Co-Chair noted that the Administration has demonstrated that good governance is
good economics. The Government was urged to accelerate and sustain the reform agenda, and
strengthen implementation through sharper focus, better selectivity, through drive for results, and
through coalitions for reform—coalitions drawn from the private sector, labor, NGOs, civil
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2013 Philippines Development Forum
Summary of Event
society, academe and us, the development partners. It was noted that not only would those
coalitions help implement the reforms, they would also ensure that these reforms would become
irreversible and promote good governance. The Co-Chair noted the participants’ shared view that
if the Government and all its stakeholders continue to work together in accelerating the existing
reform agenda, with a renewed sense of urgency, then this Administration would leave an
irreversible and lasting legacy: the legacy of inclusive growth. So he urged the Government and
all its stakeholders to work together in bending the arc of history towards achieving this legacy.
21.
In his closing remarks, President Aquino noted that the past couple of years had been
historic for the country’s macroeconomic performance, citing the full year growth for 2012 at 6.6
percent. The President noted that indicators point to increased private sector activity and
capacity, signaling his view that growth had become more sustainable, and that improved
consumption capacity of Filipinos meant that the growth had benefited households as well.
However, the President acknowledged that in moving forward, the challenge would be how to
ensure that the gains are inclusive, and can be even more inclusive.
22.
President Aquino also pointed out that in large part, the gains in the past two years
resulted from the Government’s commitment to good governance—to ensuring that integrity,
transparency, and accountability guide government operations, not only in national agencies but
in local government units as well. President Aquino noted that the Filipino people were the
country’s strongest competitive advantage, and the reason why the Government continues to
invest heavily in them through increased budget for the Pantawid Pamilyang Pilipino Program,
(or the Conditional Cash Transfer Program), expansion of the PhilHealth program to provide
healthcare coverage for the poorest of the Filipino people, as well as in basic education through
the launch of the “K to 12 program” that would help bring Philippine education up to
international standards.
23.
The President observed the increased confidence of the international community, and
expressed appreciation for their continued support, particularly to Mindanao. He cited the
signing last year of the Framework Agreement on the Bangsamoro which he hopes would bring
an end to the decades-long insurgency, and bring a final, enduring peace to Mindanao. President
Aquino acknowledged the need for the reforms to extend beyond 2016, and affirmed through the
PDF the necessity of positive participation: not merely to point out the problems, but more
importantly, he said, for everyone to become part of the solution.
24.
President Aquino ended his closing speech by saying, “It is my hope that the partnerships
that have been forged here, together with the practices of collaboration and of open dialogue,
extend beyond this day—that you continue to embody the spirit of cooperation and service, and
become an inspiration to others. In this way, we will be able to realize fully the commitments we
made to each other and the Filipino people, and walk along the straight path together to the
fulfillment of our dreams for the Philippines.”
25.
All statements, presentations, and other documentation on the 2013PDF are posted on the
PDF website: pdf.ph.
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2013 Philippines Development Forum
Summary of Event
2013 PHILIPPINES DEVELOPMENT FORUM
February 4-5, 2013
Marco Polo Hotel, Davao City
PROGRAM
Theme:
President Aquino’s Social Contract:
Moving Forward in Achieving Inclusive Growth and Good Governance
February 3
6:00 p.m. - 7:30 p.m.
Cocktails hosted by World Bank Group for Heads of Delegation (plus
one), Cabinet Secretaries, and Special Guests at the pool area, Marco
Polo Hotel, Davao City
February 4 (Note: All plenary sessions will be held at the Grand Ballroom, Marco Polo Hotel)
9:00 a.m. - 9:15 a.m.
Opening Session (Grand Ballroom)


Welcome by the Chairperson
Opening Statement by the Co-Chairperson
9:15 a.m. – 12:30 p.m.
Session I: Plenary Session on Overall Developments
9:15 a.m. - 10:45 a.m.

Presentation and Panel Discussion on overall progress under the
Social Contract and Macroeconomic and Fiscal Developments, to be
followed by General Discussions
GOP:
DOF Secretary Cesar V. Purisima
DBM Secretary Florecio B. Abad
NEDA Secretary Arsenio M. Balisan
Panelists:
Professor Cielito F. Habito, Ateneo de Manila University
Ms. Milwida M. Guevarra, Synergeia
Mr. Senen Bacani, La Frutera, Inc.
10:45 a.m. -11:00 a.m.
***Coffee break to transition to next panel discussion.***
11:00 a.m.-12:30 p.m.

Government presentation on Mindanao, to be followed by General
Discussions
Secretary Luwalhati Antonino – Mindanao Development Authority
Secretary Teresita Q. Deles – Office of the Presidential Adviser on the
Peace Process
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2013 Philippines Development Forum
Summary of Event
12:30 pm – 1:30 p.m.
Lunch (Café Marco)
1:30 p.m. - 5:30 p.m.
Session II: Two Sets of Parallel Break-Out Sessions by Cabinet
Clusters/Sub-cluster: Addressing the challenges in achieving the Social
Contract targets in the medium-term in the following areas:
First Set: 1:30 p.m.3:30 pm.
Convenors:
A. Good Governance and Anti-Corruption
DBM Secretary Florencio B. Abad
B. Human Development and Poverty Reduction
DSWD Secretary Corazon J. Soliman
C. Infrastructure (sub-cluster)
NEDA Secretary Arsenio M. Balisacan
Second Set: 3:30 p.m. 5:30 p.m.
D. Justice and Peace (sub-cluster)
DOJ Secretary Leila De Lima / designate
E. Climate Change Adaptation and Mitigation
CCC Secretary Mary Anne Lucille L. Sering
F. Economic Development
NEDA Secretary Arsenio M. Balisacan
6:00 p.m. – 9:00 p.m.
Note: Mindanao Working Group members are expected to spread out
among break-out sessions to provide a Mindanao perspective to the
discussions.
Informal heavy cocktails hosted by the Philippine Government for all
delegates at the Rosa Santos Munda Events Center, PWC, Davao City
February 5
9:00 a.m. – 11:00 a.m.
Session III: Plenary Session – Reporting Back


11:00 a.m. – 11:30 a.m.
11:30 a.m. - 12:30 p.m.
Coffee break (and re-set-up of stage)
Final Session



12:30 p.m. - 1:30 pm
Summary and Recommendations from each break-out session
General Discussions
Opening of the Final Session by the Chairperson
Highlights of Proceedings by the CoChairperson
Closing Statement by the President of the Republic of the Philippines
Lunch (Café Marco)
************************ Meeting officially ends. ********************************
A joint press conference by the Chair and Co-Chair with Cluster Working Group Convenors will be held
from 1:30 - 2:00 p.m. at the Borneo Room of the Marco Polo Hotel (optional for delegates).
Chairperson: Secretary Cesar V. Purisima, Department of Finance, Philippines
Co-Chairperson: Mr. Motoo Konishi, World Bank Country Director, Philippines
Moderator: Mr. Guillermo Luz, National Competitiveness Council, Philippines
8