GRP DRAFT CASER As of 10 JANUARY 2017 COMPREHENSIVE AGREEMENT ON SOCIAL AND ECONOMIC REFORMS BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE NATIONAL DEMOCRATIC FRONT OF THE PHILIPPINES The GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES (GRP), represented herein by the GRP Panel and The NATIONAL DEMOCRATIC FRONT OF THE PHILIPPINES (NDFP), represented herein by the NDFP Panel Hereinafter referred to as “THE PARTIES” PREAMBLE WHEREAS, poverty, misguided development paradigms and strategies, social inequity and injustice, landlessness, bad environmental decisions, disempowerment, and marginalization of peoples have historically impeded the social and economic development of the Philippines and have engendered armed conflict and social unrest; WHEREAS, five decades of armed conflict have resulted in countless deaths, dislocations, so much suffering among the people, and wastage of scarce economic resources; WHEREAS, the Filipino people demand and deserve a life of peace, justice, dignity, prosperity, comfort, security, and happiness, including freedom from want, hunger, and violence; WHEREAS, farmers, workers, women, indigenous peoples, urban poor and other basic sectors of Philippine society have been historically marginalized and their issues and concerns require particular attention; WHEREAS, the pursuit of social economic reforms to promote the common good and respond to the needs of the Filipino people are among the crucial processes in the consolidation of a just and lasting peace;GRP DRAFT CASER As of 10 JANUARY 2017 WHEREAS, the GRP and NDF, having signed The Hague Joint Declaration, have ‘committed to the holding of formal peace negotiations to resolve the armed conflict and attain a just and lasting peace; NOW THEREFORE, the Parties, without reservation, do hereby solemnly enter into this. Comprehensive Agreement on Social and Economic Reforms. PART I. DECLARATION OF PRINCIPLES ARTICLE |. GUIDING PRINCIPLES The Parties deciare and adopt the following principles to serve as the guiding precepts in the interpretation, appreciation, and implementation of the provisions and stipulations of the Agreement: Section 1. Negotiating Framework. Peace negotiations are concluded within the framework of mutually acceptable principles on national sovereignty, democracy, and social justice as embodied under The Hague Joint Declaration of 1 September 1992, and reaffirmed by the Breukelen Joint Statements of 14 June 1994 and the subsequent agreements therefrom. Section 2. Common Good. It is the common good—the welfare and the interest of the Filipino people—that is the foremost concer in the efforts to resolve the armed conflict and achieve a just and lasting peace. The active participation of the people, therefore, must be sought in pursuing this common good. Section 3. Pursuit of Reform as Conflict Resolution. The pursuit of social and economic reform is an integral part of the overall effort to resolve the armed conflict and to lay the foundation for a just and lasting peace. Section 4. Pursuit of Social Justice. Social justice is fundamental for a lasting peace since it defines the right of the people to human dignity and to a decent quality of life This means eradicating the social, economic, and political inequities in society through the equitable diffusion of wealth and political power for the furtherance of the common good and to free the people from the bondage of poverty, inequity, and marginalization Section 5. Pursuit of Authentic Development. Authentic development that is to be achieved through social and economic reforms must be people-centered, aim to equitably distribute wealth and resources, and be environmentally and socially sustainable. Development that is authentic means that the costs and fruits of development are fairly and equitably shared, that bayanihanSection 6. Section 7. Section 8. GRP DRAFT CASER As of 10 JANUARY 2017 solidarity and self-reliance are promoted, that the national patrimony and environment are protected, that the true worth of human labor is upheld, that, rights and dignity are respected, and that individual members of society are able to realize their full human potential. It strives to achieve both material and spiritual growth, and preserve Filipino culture, family values, democratic institutions, and heritage. Participative Development. The right of all members of society to actively and meaningfully participate in improving their well-being is fundamental to development. The attainment of social justice and full development should, therefore, involve the participation of all sectors of society, including its poorest and marginalized members Common Ground for Cooperation and Collaboration. As an integral part of a comprehensive Peace Agreement, this Agreement on Social and Economic Reforms shall provide the common ground for cooperation and collaboration of the Parties in peacefully achieving authentic development for the country and advancing the welfare of the Filipino people. Ensuring Continuing Dialogue. As the conclusion of this Agreement may not sufficiently encompass all the issues that sustain the conflict, there is a need for the Parties to jointly identify post-settlement mechanisms to ensure continuing dialogue for the resolution of these issues. ARTICLE Il. SPECIFIC OBJECTIVES OF THE AGREEMENT In support of the overall goal of resolving the armed conflict and achieving a just and lasting peace, the Parties agree to work towards attaining the following specific objectives Section 9. Section10. Section 11 Section12, Enhance the Reform Processes. To enhance the reform process by identifying a shared vision, thus ensuring the adherence of development to social justice, equity, ecological sustainability, and genuine people empowerment for achieving social and economic development. Identify Specific Reform Measures. To define the specific reform measures on the levels of principle, policy, program, and project feature toward the realization of the above shared vision for authentic development. Strengthen People’s Participation. To promote people's participation in the reform and development processes through mechanisms jointly identified by the Parties and within an environment appropriate for the efficient operation of these mechanisms. Ensure Continuing Dialogue.To establish effective mechanisms for continuing dialogue to address issues not sufficiently covered under thisSection 13. GRP DRAFT CASER As of 10 JANUARY 2017 Agreement and to include the points of disagreement between the Parties that cannot be realistically resolved within a reasonable period at the negotiating table. Unify the People for Nation Building. To unify and mobilize the country’s social and political forces under a spirit of cooperation and oneness to effectively combat poverty, structural inequity, destitution, and marginalization among the Filipino people. PART II. BASES, SCOPE, AND APPLICABILITY ARTICLE Ill. AGREEMENT TO COOPERATE ON SOCIO-ECONOMIC REFORMS Section 1 Section 2. ARTICLE | Section 1. Section 2. The Parties agree to cooperate in addressing the concrete conditions and root causes of poverty, structural inequity, destitution, landlessness, and marginalization with the view to achieving national and social liberation though socio-economic reforms. The goal is to assure every Filipino family a strongly rooted, comfortable, and secure life. The Parties acknowledge that there are differences in the way the GRP and the NDFP understand the history and the present conditions of Philippine society, including in the language that the Parties employ in their respective social analyses. The Parties, however, affirm that these differences do not prevent them from finding a shared perspective and, in particular, agreeing on the socio-economic reforms needed. IV. GUIDING FRAMEWORK The Parties acknowledge that the guiding framework for this agreement, including its implementation, is the 1987 Constitution of the Philippines, The GRP acknowledges that the NDFP will also rely on the Guide for Establishing the People's Democratic Government and the Program for a People’s Democratic Government of the revolutionary forces represented by the NDFP. Accordingly, both Parties commit to implement this agreement with sincerity and good faith The Parties shall also acknowledge universally accepted principles and instruments of international law, such as the United Nations Declaration on Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Sécial and Cultural Rights of 1966, the International Labor Convention of 1948 on Freedom of Association and Protection of the Right to Organize, and other similar or relevant international covenants.GRP DRAFT CASER As of 10 JANUARY 2017 PART Ill. DESIRED OUTCOMES. ARTICLE V. OUTCOMES TO BE ACHIEVED Section 1.The Parties forge this comprehensive agreement on social and economic reforms with the overall objective of eradicating Philippine poverty and reducing inequality so that the people can look forward to productive, decent, and dignified lives. In order to achieve this, the comprehensive reforms shall produce outcomes that include a.rural equality and development to achieve food self-sufficiency and security; b. a sovereign, self-reliant, and industrialized national economy; c. a protected and rehabilitated environment, just compensation for peoples and communities that suffer environmental injustice, and sustainable development; d. social, economic, and cultural rights’ of the indigenous peoples and working peoples upheld and discrimination eliminated”; . sustainable living incomes for all; affordable, accessible, and quality social services and facilities; sovereign foreign economic policies, and trade relations supporting rural development and national industrialization; h, a monetary and fiscal policy regime for national development; and, i. peaceful and resilient communities. emo PART IV. AGRARIAN REFORM AND RURAL DEVELOPMENT ARTICLE VILADDRESSING ROOT CAUSES OF AGRARIAN AND LAND CONFLICTS Section 1. The Parties agree on the following analysis of rural underdevelopment and the root causes of social injustice in the countryside: a. The struggle for land has always been part of Philippine history since the colonial period. The Spanish and American colonizers, followed later by local elites, perpetuated an unjust agrarian structure which is one of the root causes of poverty, and hence social unrest in the country b. The implementation of a genuine agrarian reform which is strongly grounded on the principle of social justice and equity is the necessary first step to address the most basic problems of rural Philippines, which "The rights to selt-determination, work, just and favorable work conditions, unionize, social security, protection and assistance of families, adequate standards of living, food, housing, health, and education are to be included in appropriate parts ? Covering women, children, and youth, the urban and rural poor, migrant workers, indigenous people, ethnic and rational minorities, the elderly, persons with disabilty, and other exploited, disadvantaged, and discriminated sectors.GRP DRAFT CASER As of 10 JANUARY 2017 include pervasive poverty, severe malnutrition, peasant landlessness, and gross inequality in income and wealth distribution. Eradicating rural poverty and its attendant effects is not only a matter of social justice but also sound economic policy. Landlessness, stagnation and low productivity, peasant poverty, and other forms of social and economic insecurity characterize rural communities. This is due to ineffective land and agrarian reform programs, inadequate support for agriculture, and indiscriminate agricultural trade liberalization, Globalization, including development paradigms promoted by national, bilateral, and multilateral institutions, has had negative consequences on rural populations resulting in greater corporate encroachments, aggressive expansion of agri-business, increasing speculation in land, large-scale land conversion, and perverse incentives for unsustainable land reclamation projects with negative environmental and social impacts. Rural communities have also seen the growth of chronic indebtedness and increasing militarization due to land and other social conflicts. Indigenous peoples are doubly disadvantaged by their poverty and political as well as cultural marginalization. The demand to recognize, uphold, and protect ancestral land and domain titles is just and must be urgently addressed. Reckless liberalization of trade in agriculture has resulted in the entry of heavily subsidized, cheap imported agricultural products into the domestic market. This adversely affects the agricultural sector by bringing down prices, Trade commitments, such as those in the World Trade Organization, have limited the ability of the government to provide necessary agricultural subsidies to support Philippine farmers and the development of the agricultural sector. Genuine agrarian reform is a prerequisite for agricultural and national industrialization. This expands the domestic market and creates an economic surplus for reinvestment. The economic success of South Korea, Taiwan, and Japan arose largely from their successful agrarian reform programs. Specific objectives of a genuine agrarian reform shall include a democratized rural economy, sustainable agricultural and fisheries development, food security and sovereignty, and rural development.GRP DRAFT CASER As of 10 JANUARY 2017 Section 2. The Parties agree that the essential elements of a truly integrated, comprehensive, equity-oriented, and social justice-based agrarian reform program are the following: a. Land to the Farmer/Farm worker. This should be the essential thrust of agrarian reform to satisfy the mandate of the Constitution. The implementation of an agrarian reform program should always preserve control over the land to its tiller or farmers, whether individually or collectively through cooperatives or similar organizations. b. Comprehensive Coverage. This means that all agricultural lands, as defined by law, local land use, and relevant development plans, without ‘exemption, are covered. c. Land distribution to the least cost to the farmer-benefici The future and success of the Philippine agrarian reform program depend on a strong political will and how much resources the government is willing to devote to such reforms. This will signify not only the government's commitment to social justice but also acknowledge the role of farmers in the country's food and nutrition security and in nation building, d. Adequate, timely and appropriate support services. Land distribution not accompanied by timely, adequate, and appropriate support services will not succeed. Support services are needed to increase crop, livestock, poultry, and fish productivity, to add value through processing, to enhance the value chain, to provide credit, to build farm-to-market Toads, to create post-production facilities, to provide free irrigation, to assist in the marketing of produce, to support produce prices, to introduce appropriate technology, technical and training support, and to build other rural infrastructure. In addition, it will be necessary to build the capacity of rural folks to encourage them to improve farm-related and off-farm income generation and to build the basis for the creation of new types of rural industries identified by the local people. Farmers should also be provided with insurance as a safety net such as life insurance, health, disaster insurance, business interruption insurance and property insurance. The government should encourage the farmers to set up their own insurance company (mutual benefit association) where ownership belongs to them In order for the private sector to participate in the agricultural insurance since currently this is only being done by the PCIC, the government should amend the law where non-life insurance of which agricultural insurance and disaster insurance fall, the premium tax should be lowered to 2% similar to the life insurance of 2% only. Currently, the non-GRP DRAFT CASER As of 10 JANUARY 2017 life insurance products premium tax is a hefty 27% that is why the non- life insurance is very expensive and not within the reach of poor farmers. e. Democratize participation. Farmer beneficiaries of agrarian reform should be regarded as farmer stakeholders with an inherent interest in the running of the program. This can be done by ensuring transparent, simple, and uniformly enforceable rules of participation for stakeholders, encouraging them and their support groups to actively and meaningfully take part in the formulation and implementation of any agrarian program Section 3. The Parties, recognizing the importance of land and agrarian reform, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following strategy for agrarian reform section. ARTICLE VII. STRATEGY FOR AGRARIAN REFORM Section 1. The Parties recognize that the principal strategy for a genuine agrarian reform program is to break up land monopoly in the rural areas and to distribute land and other productive assets to the tiller. Following this strategy, the Parties affirm that a. there should be clear criteria in identifying and classifying land for distribution (e.g., ownership, production status, sizes); b. there should be free distribution of land to all qualified farmer stakeholders including rural women who are willing to till the land, and that the amortization, including interest, on lands distributed under PD No. 27 and RA No. 6657, as amended by RA No. 9700, should be written off so that the farmer-beneficiaries of such lands shall be deemed or declared full owners; ©. there should be just compensation for lands that are subject to expropriation—except those proven to be unjustly and/or fraudulently acquired landholdings—subject to clear criteria, modes, and formula for computing the compensation; d. genuine agrarian reform shall be extended to include fisheries (including foreshore lands occupied by fishers) and aquaculture; e. there should be adequate funds for program implementation and a support services fund shall be allocated by the GRP to ensure the delivery of sufficient and timely support services to farmer stakeholders, which fund shall be augmented by local government units (LGUs) that shall allocate ten percent (10%) of their annual budgets for support services to the ARCs in their areas of jurisdiction; and,f GRP DRAFT CASER As of 10 JANUARY 2017 measures should be instituted to prevent land from being remonopolized Section 2. The Parties agree to address all causes of exploitation of farmers, farm workers, fisherfolk, and workers in farms and fisheries. For these to be attained, the Parties further agree to a, b. ensure fair buying prices and practices; ensure decent wages, monetary and non-monetary benefits, incentives, privileges, and humane working conditions; recognize the right of farmers, farmworkers, indigenous peoples, women, and other rural populations to form unions and other associations to pursue their welfare and interests, among others; and, resolve agrarian disputes fairly, guided by the basic tenet of social justice that the law shall always be interpreted to favor the poor. Section 3. The Parties agree to promote agricultural production for national food and nutrition security. These include: a. Protecting, supporting, and developing rice and corn, coconut, sugar, fishery and marine products, livestock, and poultry for sufficiency and food sovereignty, primarily for domestic consumption; Encouraging and supporting the formation or organization of cooperatives and peasant organizations, including providing education and training in the various facets of cooperativism: organizing, administration, finance, and production; Providing post-harvest facilities, free irrigation systems, farm-to-market roads, accessible credit facilities, marketing assistance, price guarantee, mandatory disaster-risk insurance, appropriate technology, technical and training support through the TESDA, and other necessary rural infrastructure; Upholding the rightful claim of peasants and agricultural workers to the coco levy funds, sugar amelioration fund, and tobacco excise tax; Providing agricultural extension services, including farm technicians and training facilities, and ensuring that competent farm technicians are accessible to farmers and fishers, preferably at the barangay level; Stopping rampant and indiscriminate farmland reclassification and conversion to real estate development, tourism, mining and special economic zones by speculators and giant property developers;GRP DRAFT CASER As of 10 JANUARY 2017 g. Ending crop conversion and destructive land reclamation; and, h, Instituting measures to prevent pollution of fishing grounds. Section 4. The Parties agree to implement sustainable rural development and rural industrialization, and to take the following actions: a. Protect, support, and develop value adding and value chain enhancement through, for example, food processing b. Develop and support the establishment of domestic agricultural sciences that would develop technologies and systems that are economically feasible, ecologically sound, culturally appropriate, socially just, and humane, and at the same time raise productivity and develop rural industries, c. Integrate all aspects of rural production, distribution, and processing to meet the needs of the people, local industries, and the domestic economy as a whole. d. Develop social capital towards planned and sustained rural development. @. Modemize agriculture by offering a viable transport, communication, and information system to link production, distribution, and consumption Encourage smart farming through the use of ICT technologies, such as GIS and geospatial mapping, to build resilience in growing crops. ARTICLE VIII. RIGHTS OF INDIGENOUS PEOPLES Section 1. The Parties fully affirm the rights of indigenous peoples as recognized in the United Nations Declaration on the Rights of Indigenous Peoples and the Indigenous Peoples’ Rights Act (IPRA) of 1997. The Parties recognize the inadequacies of IPRA and agree to replace it, learning lessons from the failed implementation of IPRA Section 2. The Parties agree to take urgent and effective actions to address the issues and concerns of indigenous peoples, including the following actions. a. Fast-track the delineation, recognition, and issuance of ancestral domain titles with the aim of completing such process nationwide by 2020. b. Revise the rules on free and prior informed consent so that the will of the community is always upheld in the implementation of development and economic projects. 10GRP DRAFT CASER As of 10 JANUARY 2017 c. Ensure that indigenous peoples always get a fair share in the revenues and other benefits derived from natural resources extraction d. Demilitarize ancestral domain areas so that indigenous peoples can live in peace and with their security assured. e. Support the schools and other cultural institutions of indigenous peoples to preserve their cultures and to ensure that these evolve in accordance to their needs and interests as well as with their consent. ARTICLE IX. IMPLEMENTATION MECHANISMS FOR AGRARIAN REFORM Section 1. The Parties agree that the role of citizen organizations, NGOs/CSOs, farmer and peasant organizations, indigenous peoples’ organizations, church-based organizations, and national democratic and other mass organizations in agrarian reform and rural development shall be recognized and shall be enhanced. Some of the roles they could fulfill are: a. Enforcing and implementing agrarian and other agrarian reform programs agreed to in this agreement; b, Building the capacity of farmers, indigenous peoples, and other rural communities to participate in development decisions and in implementing the reforms agreed to in this agreement; and, c. Harnessing the collective energy of the rural poor and working people, especially the unemployed and underemployed, and rural women in building the infrastructure for rural agricultural and industrial development. Section 2. The Parties agree that the GRP shall work for the enactment, within one year from signing this Agreement, of a new agrarian reform law that will strictly comply with all Articles and Sections of Part IV of this Agreement. The NDFP shall be consulted on the specific provisions of such a law and its accepted proposals shall be incorporated into the administration proposal to Congress. Section. The Parties also agree, within the same period as Section 2 above, that the GRP will work to enact related and complementary legislative and policy reforms in support of the agrarian and agrarian reform programs identified in this Article and to include the following actions: a. Enact a National Land and Water Use Act, as elaborated in Part VI of this Agreement. b. Provide access to adequate credit resources and facilities. aGRP DRAFT CASER As of 10 JANUARY 2017 c. Provide mandatory disaster-risk insurance and similar mechanisms for all farmer and rural stakeholders to improve their resilience against disasters. d. Support climate change adaptation programs and interventions to enable farmers and rural communities to adjust to both early onset and long term impacts of climate change. e. Strengthen the Indigenous Peoples’ Rights Act as described in Article VIIL The NDFP shall be consulted on the specific provisions of such laws and policies. Its accepted proposals shall be incorporated into executive and administrative orders issued to promulgate those laws and policies. Section 4. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on agrarian and land reform including, but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels, from Department Secretary to lower positions as well as to technical and administrative posts. PART V. NATIONAL INDUSTRIALIZATION AND ECONOMIC. DEVELOPMENT ARTICLE X. ADOPTING A NATIONAL INDUSTRIALIZATION POLICY Section 1. The Parties agree on the following analysis of the weaknesses of the Philippine economy, on our society's failure to industrialize and to achieve genuine national development, and the overall strategy to overcome these weaknesses and failures: a. There is a situation of premature de-industrialization, technological backwardness, oligopolistic domination of key economic sectors, insufficient job creation, high labor informality, lack of quality jobs, low incomes, and marginalization of small and medium entrepreneurs that results in low productivity and weak value chains. b. These are due to both domestic and external factors, including weak Philippine institutions both state and non-state, unresponsive or inappropriate economic and social policies drawn from rigid models, market failures that persist in a developing country like the Philippines, and exclusion and inequity resulting from rapid unregulated globalization 2Section 2. GRP DRAFT CASER As of 10 JANUARY 2017 c. The overall objective of national industrialization should be a well rounded, well-balanced economy in which the share of manufacturing to total output and employment is significant; industry is linked to agriculture and services; and industry, services, and agriculture create quality jobs and generate high labor productivity, thereby promoting Filipino human resources and addressing the chronic problems of unemployment and underemployment. d. There is a need to expand the domestic market, ensure linkages across the economy, and recognize the vital role of science and technology; and in all of these, the State must play an active role in correcting market failures, in providing public goods, including science and technology, infrastructure and the promotion of human development, in curbing monopolistic or oligopolistic behavior that is detrimental to the national interest, and in ensuring equity and faimess. e. The State shall pursue investment and industrial policies that spur technological upgrading, create forward and backward linkages, support local manufacturing and industrialization, level the economic playing field, and create knowledge and skills-intensive, quality jobs. f. The State shall support the growth of sectors that significantly contribute to overall inclusive economic development, (i.e. employment, income security, and sustainability) g. The State shall adopt as model of development a social market economy that represents a middle ground between unfettered capitalism and a bureaucratic, collectivist system; one that allows for the redistribution of economic gains and the benefits of advances in science and technology and that creates vibrant markets which, coupled with healthy state regulation, attract investments that generate jobs and create sustainable livelihood incomes. The Parties agree that the Philippines shall adopt a policy of national industrialization, and identify the following as key elements of such industrialization: a, Acquiring and developing the capacity to produce industrial goods. b. Attaining full employment, preventing real wages from falling, expanding the domestic market and integrating regional markets into one national market, strengthening the real economy to enhance productivity and technological capacity to generate surplus and face the challenges of globalization, raising the level of science and technology, creating quality jobs, increasing productivity and improving the standard of living, reducing inequality, and eliminating poverty. BGRP DRAFT CASER As of 10 JANUARY 2017 c. Maximally using local raw materials, considering ecological impacts, efficiently using renewable and non-renewable resources, enhancing the role of the public sector in energy, utilities, infrastructure, and essential social services needed by industry. d. Planning that considers the availability of resources and the capability and well-being of the people, especially the worker and peasant masses. Section 3. The Parties agree on the necessity and urgency to break monopolistic and oligopolistic domination of the economy. The Parties further affirm that both local and foreign elites, abetted by the political structures of the country, are accountable for stunting the country’s industrialization. In this regard, the Parties agree on the following actions: a. Protect, support, and develop domestic entrepreneurs, and MSMEs, in industries such as: mining and metallurgy (including an integrated steel industry) agricultural and industrial tools, machinery, and equipment construction materials (e.g., wood, ceramic, glass, plaster, cement) transport vehicles and equipment (e.g,, rail, buses, shipping) energy development electronic components and equipment precision instruments industrial chemicals and chemical products pharmaceuticals food and beverage b. In exceptional circumstances (e.g., in times of war) or as warranted by the public or national interest, the State may expropriate and nationalize industries subject to clear, prudent, and just economic criteria provided by law and consistent with constitutional requirements and international legal obligations. Section 4. The Parties, recognizing the necessity of national industrialization, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following section. ARTICLE XI. PRIORITIES FOR NATIONAL INDUSTRIALIZATION Section 1. In pursuing national industrialization, the following shall be the preferred modes of enterprise ownership, with participation by workers’ organizations in policy making and management a. Appropriate modes of ownership that ensure that production and distribution shall be oriented to achieving overall social and economic goals 14GRP DRAFT CASER As of 10 JANUARY 2017 b. Possible modes of ownership that include public-sector enterprises, variations of joint public-private ventures, cooperatives, and individual entrepreneurship. In addition, particular policies shall be formulated and adopted for * vital and strategic enterprises, main sources of raw materials, main distribution arteries; * public utilities (power, water and sanitation, telecommunications, mass transport, postal services) and basic social services (education, health, housing, social security); and, + retail trade Section 2. The Parties agree on the necessity to ensure agriculture-industry, inter- industry, and regional linkages, with emphasis on the following elements: a. Pursue genuine agrarian reform and rural development as imperatives for national industrialization. b. Recognize the role of agriculture in ensuring food security, providing raw materials for industry, expanding the market for industrial goods, and generating a surplus for investment in national industrialization c. Encourage the industrial sector to meet the needs of the peasantry and support agricultural production and rural development. d. Establish vertical and horizontal linkages between industries and ensure that industries are regionally dispersed. Section 3. The Parties agree that developing Filipino industrial science and technology is urgent and necessary for national industrialization. In this regard, the Parties shall prioritize launching and implementing an industrial science and technology program that implements the following actions: a. Develop the country's capabilities in science and technology to expand industrial capacity and achieve sustained long-term development, thereby ensuring adequate supply of skilled, competent, and progressive human resources geared towards domestic needs and stopping the brain drain b. Break foreign monopoly control over key industrial technologies while making judicious use of foreign scientific and technological expertise to develop domestic capabilities. c. Promote research and development in the basic and applied sciences and ensure sustained investment in domestic science and technology. 45GRP DRAFT CASER As of 10 JANUARY 2017 d. Create domestic opportunities for scientists, engineers, technicians, and skilled workers in the country as well as for those currently working abroad. e. Combine ‘appropriate technologies” and high technology within a framework of comprehensive technological development. f, Adopt policies relating to intellectual property rights, including community knowledge and biological resources, including as elaborated further in Part VI of this Agreement. Section 4.The Parties agree on the following sources to finance national Section 5. industrialization: a. Surpluses generated by local agriculture and industry; b. Progressive taxes that capture more revenues from higher income groups; ¢. Taxes on alcoholic drinks, tobacco products, gambling, and other sin products and services; d. Foreign loans or deferred payment arrangements for imports of needed technology; e. Concessionary official development assistance with little or no unreasonable and unfair conditions attached; f. Foreign investments on terms mutually beneficial to all parties; g. Overseas Filipino workers’ remittances; h. Savings from restricting luxury imports as well as more revenues from higher taxes on allowed luxury goods imports; and, i. Savings from reduced spending on military personnel and operations. The Parties identify the following actions as essential for achieving national industrialization: a. Ensure the well-balanced growth of heavy and light industries, agriculture, and services so that industry is characterized by high labor intensity, high labor productivity, and high-level technology; value chains link agriculture, services, and industry; agriculture is modernized with high farm productivity and diversified jobs; the services sector shifts from its 16GRP DRAFT CASER As of 10 JANUARY 2017 currently informal and low-skilled status to one that is formal and high- skilled; industry, services, and agriculture strengthen and expand the national economy to take advantage of opportunities in the global market. b. Prioritize specific industries according to immediate viability (given availability of natural resources, local labor and technology, and existing capacity) and long-term strategic benefit (meeting basic needs, potential for economy-wide linkages and technological dynamism). c. Mobilize the people to facilitate programs and projects that develop the national economy, including organizing and mobilizing citizens to provide labor power for constructing public infrastructure and factories for industrial development as well as small and medium scale livelihoods and enterprises. d. Implement vigorously the Fair Competition Act in order to level the playing field and promote inclusive, sustainable growth e. Promote and support MSMEs as a sustainable livelihood platform for the equitable distribution of profits and incomes that promotes inclusive growth by ensuring the full operationalization and implementation of the law mandating the development of MSMEs. As one concrete measure to support MSMEs, the State shall establish a dedicated bank for MSMEs. ARTICLE XII. IMPLEMENTATION MECHANISMS FOR NATIONAL Section 1 Section 2. Section 3. INDUSTRIALIZATION The Parties agree that the GRP shall work for the enactment, within one year from the signing this Agreement, of a law mandating a national industrialization policy that will strictly comply with all Articles and Sections of Part V of this Agreement. The NDFP shall be consulted on the specific provisions of such a law and its accepted proposals shall be incorporated into the administration proposal to Congress. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will work to enact related and complementary policy reforms in support of national industrialization. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on national industrialization, including but not limited to appointments, where appropriate vGRP DRAFT CASER As of 10 JANUARY 2017 and subject to the President's discretion, as officials at all levels, from Department Secretary to lower positions as well as to technical and administrative posts. PART VI. ENVIRONMENTAL PROTECTION, REHABILITATION, AND COMPENSATION ARTICLE XiIll. STATE OF THE PHILIPPINE ENVIRONMENT Section 1. The two parties agree on a common understanding of the state of the Philippine environment, the root causes of its deterioration, and the priority tasks ahead. In particular, the Parties agree on the following tenets: a. The Philippine environment is in a degraded state; in fact, itis in a state of crisis that has severely affected people's health, livelihoods, and very lives as they face the onslaughts of natural calamities and disasters. b. Among the root causes of environmental degradation are unfavorable and unjust economic, trade, and investment policies, and an approach to natural resources that emphasizes rent-seeking, profit-driven commercial exploitation c. Natural resources and the environment should be understood and managed holistically so that the services they provide—raw material inputs, energy sources, biodiversity and other ecosystem services, and aesthetic and cultural values—are preserved. d. Sustainable development is the right approach in managing the connections among economic development, industrialization, and the environment, and the concept of environmental or climate justice. This will ensure that the rights of indigenous peoples, local communities, the poor, and ordinary citizens are paramount. ARTICLE XIV. PRINCIPLES FOR SUSTAINABLE DEVELOPMENT Section 1. The Parties agree that the following principles of sustainable development and environmental/climate justice shall guide all actions in this Article a. Sustainable development, which ensures the needs of the present generation without sacrificing the needs of future generations, is adopted as the policy framework for environmental decisions. b. The pursuit of environmental protection, conservation, and wise use of natural resources must always be for the people's well-being; economic development must not cause suffering to planet and people, especially the poor. 18,GRP DRAFT CASER As of 10 JANUARY 2017 c. The pursuit of economic development must integrate protection, efficiency, and just use of the country's resources and ecology, including making sure that the carrying capacity of the environment is not breached; citizens have the right to a sound environment in accordance with the rhythm and harmony of nature. d. The rights of indigenous peoples, local communities, the poor, and ordinary citizens shall at all times be recognized and respected in all environmental decisions, including the right to information and to participate effectively in such decisions, and, for indigenous peoples, the right to free prior and informed consent; environmental and social justice and social equity shall be the paramount considerations for every economic, development, and environmental decision. e. The precautionary, polluter pays, subsidiarity, and pollution prevention principles shall guide all environmental regulatory, permitting, and enforcement decisions. Section 2. The Parties, recognizing the urgency to protect the environment and ensure sustainable development, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following articles of Part VI of this Agreement. ARTICLE XV. PRIORITY ACTIONS FOR SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL JUSTICE Section 1.Following the principles identified in Article XIV, the Parties agree that environmental and social impact assessment must be systematically used to avert bad environmental and social outcomes of economic activities and programs. Accordingly, the GRP commits to reform the environmental impact assessment process to improve its effectiveness. Section 2.The Parties agree that a comprehensive national land and water use policy is essential for sound environmental and development decisions. The Parties agree to work together so that a national land and water use act is enacted immediately. Such act shall have the following features: a. Rational and environmentally sound planning and zoning for urban and rural areas, respecting the rights of the urban and rural poor. b. Providing the basis for demarcating final boundaries for forests, water bodies, and for protected areas; for constructing roads, public transport facilities and buildings; and for interventions and plans to alleviate congestion and pollution in every area and region. 19Section 3. Section 4. Section 5. GRP DRAFT CASER As of 10 JANUARY 2017 Subject to the rights of indigenous peoples and local communities, and as provided by the Constitution, there will be a ban on the alienation of natural resources and of patent control, including policies on IPR-enabled patenting and processing of Philippine biological resources by private and foreign agencies. The parties agree that the United Nations Convention on Biological Diversity and the Nagoya Protocol on Access to Genetic Resources shall be strictly implemented in the Philippines. The Parties agree that the following are environmentally destructive and unjust practices, and should be prohibited a. Ecologically destructive practices, such as open-pit mining, mono-crop production for export, the wanton clearing and leveling of land for golf courses, resorts and real estate development, and land-grabbing by foreign monopoly firms and local bureaucrats; b. Dumping and storage of foreign-owned war materiel, including nuclear, biological, chemical, and other weapons of mass destruction; cc. Commercial logging of natural forests, including all export of logs, for at least 25 years more until sufficient reforestation has been achieved and subject to a scientific assessment of sustainability with stakeholder consensus that all such logging shall be reserved exclusively for Filipinos; d. Dumping of other countries’ toxic wastes in Philippine territory; e. Entry of hazardous technologies and pollutant industries and of hazardous agricultural products; and, f, Domestic and foreign military activities that target civilian populations and devastate the environment. Compensation for damages for past transgressions associated with these activities shall be demanded from those guilty of such actions. Construction of large or mega dams, nuclear plants, coal power plants, petrochemical plants, and similar infrastructure projects with serious environmental impacts must be subjected to the highest and strictest environmental and social assessment, with the precautionary principle as the standard followed, The free and prior informed consent of indigenous peoples and all directly affected local communities must be obtained by proponents who must provide iron clad guarantees for emergency situations and compensation. 20GRP DRAFT CASER As of 10 JANUARY 2017 Section 6. Regulation of mining and marine wealth extraction shall be improved and Section 7. Section 8. include taking the following actions: a. Regulate all mining operations to ensure domestic processing of mineral resources, guarantee environmental protection and justice, safeguard mine workers, compensate communities for damages, uphold democratic consultation and the consent of communities, allocate mining revenues and benefits equitably, and charge the costs of mine maintenance, disasters, and rehabilitation to the revenues of mining firms. b. Protect, rehabilitate, and develop the nation's marine wealth in its archipelagic waters, territorial seas, and EEZ that are reserved exclusively for Filipinos, with preferential rights assured to small-scale fisherfolk c. Utilize an integrated coastal management and ridge-to-reef management approach for coastal areas with due regard to projected climate change impacts and ensuring the rights of stakeholders. The Parties agree that climate change is the most serious sustainable development challenge confronting the Philippines and that all policies and measures should be taken to mitigate and adapt to climate change based on the principles of common but differentiated responsibilities, equity, and climate justice. The Parties agree that the Philippines shall abide by the principles of international environmental law and strictly implement international conventions, specifically the Rio Declaration on Environment and Development, the United Nations Sustainable Development Goals, the United Nations Framework Convention on Climate Change, the Convention on Biological Diversity, the Vienna Convention, and the Montreal Protocol on Ozone-Depleting Substances, and all other treaties, protocols, and agreements that the country has ratified. Section 7. The Parties also agree on the following additional measures for managing the environment a. Formulating a comprehensive and balanced national policy on protection and efficient use of the country's natural resources to redress the neocolonial pattern resulting in reckless depletion and_ intensified extraction; b. Creating a national policy on various types of land and water use, as referred to in Part VI of this Agreement, preventing the alienation of lands and bodies of water; 21GRP DRAFT CASER As of 10 JANUARY 2017 c. Addressing problems of pollution, waste control and disposal, and provision of adequate and potable water supply; d. Reforming the energy sector to reduce reliance on coal and other polluting sources of energy, and enhancing the role of renewable energy while ensuring that the economy, particularly the poor, has access to stable, affordable, and environmentally sound energy; e. Rehabilitating and developing natural resources and banning commercial logging and foreign fishing until depleted resources have regenerated; and, f. Promoting education to raise environmental consciousness and disseminate ecologically sound practices. ARTICLEX XVI. IMPLEMENTATION MECHANISMS FOR SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL JUSTICE Section 1. The Parties agree that the GRP shall, within one year from signing this Agreement, to enact new laws, such as a national land use policy and water act and a new mining law, among others, that will implement and lead to strict compliance with all Articles and Sections of Part VI of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. Section 2. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will work to enact related and complementary policy reforms in support of sustainable development and environmental justice, such as amending the rules on environmental impact assessment. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. Section 3. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on sustainable development and environmental justice, including, but not limited to appointments, where appropriate and subject to the existing CSC laws, rules, and regulations, the President's discretion, as officials at all levels, from Department Secretary to lower positions as well as to technical and administrative posts. 22GRP DRAFT CASER As of 10 JANUARY 2017 PART VII. RIGHTS OF WORKING PEOPLE AND LIVELIHOODS ARTICLE XVII. SHARED PRINCIPLES ON THE ROLE AND RIGHTS OF LABOR Section 1 Section 2. The Parties reaffirm the principle that labor is the primary socioeconomic force. It is the bounden duty of the State to provide full protection to labor, formal and informal, local and overseas, and to promote full decent employment for all. The Parties agree that the rights of all workers to self-organization and concerted activities to advance their collective interests, including the right to strike in accordance with law, are inviolable and should not be abridged Workers have the right to participate in the formulation and enforcement of policies affecting their rights and benefits at the work place. Section 3. The Parties agree that the key to a dignified life for all is the access of all workers to decent quality jobs. This entails the full transformation of the economy into a progressive, equitable, and sustainable one based on sound industrial and agricultural policies. This means, among other things, that the implementation of socioeconomic reforms that provide more and better job opportunities for all shall be intensified, such as the full implementation of agrarian reform and the transformation of small farmers and agrarian reform beneficiaries into moder agribusiness producers with ample government support, the overhaul of the coastal and fishery laws and programs (including the repudiation of the mindless no-build 40-meter zone) to enable fisherfolk to improve their livelihoods and settlements, the access of credit and technical and marketing assistance to micro entrepreneurs and solo producers, and so on. Section 4. The Parties affirm that job security shall be respected at all times. However, in situations where job displacement becomes unavoidable because of business upgrading and work reorganization, the employer and the union (or the workers) shall hold timely and honest dialogue on how to preserve jobs and provide safety nets to create new decent ones for those who cannot be retained. Section 5. The Parties share an unwavering commitment to the protection and welfare of the country's life saviors, the overseas Filipino workers; this must be one of the highest priorities of government. The steady improvement of the national economy along an inclusive, equitable, and sustainable path should strengthen the national resolve to eliminate the slave-like or abusive practices affecting the recruitment, deployment, and repatriation of workers engaged in 3D (dirly, dangerous, difficult) jobs, especially in countries known for their hostility to foreign culture and human rights. 23GRP DRAFT CASER As of 10 JANUARY 2017 Section 6. The Parties agree to respect at all times the principle of non-discrimination— from skills development to job hiring, from position classification to wage and benefit compensation, and so on. No one should be discriminated on account of age, religious belief, sexual orientation and gender identification, ethnic origins, and so on. All workers, regardless of sex, shall enjoy equal opportunities in work, pay, and work standards. However, special services and facilities shall be developed for working women and solo parents, persons with disabilities (PWDs), (both men and women), such as day-care centers and nurseries. Section 7. The Parties, recognizing the imperative to protect and enhance workers’ rights, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following articles of Part VII of this, Agreement. ARTICLE XVIII. ACTIONS AGREED BY THE PARTIES ON LABOR RIGHTS Section 1, The Parties are committed to the eradication of all forms of abuses related to the hiring and deployment of workers at home or overseas. The government shall use its full administrative and police powers to weed out illegal recruitment agencies and labor-only contractors and to stop the various forms of fraudulent labor hiring and compensation arrangements such as the “endo” system, the use of apprentices and interns to do regular work, the contracting of third-party service providers solely to avoid the principal's obligations to the workers, and so on. For this purpose, the Parties shall work together to reform the Labor Code, now in its fifth decade, to address the above issues more forcefully. Section 2. The Parties recognize and shall actively protect the right of all workers to self-organization to enable them to defend their rights and advance their collective interests. All wage workers, be they in government or in the private sector, be they under short- or long-term hiring arrangements, are eligible, without exception, to form and join unions of their choice. All non-wage workers, be they in the formal and informal sectors of the economy, be they in the urban or rural communities, have the right to form unions, cooperatives, or associations for the purpose of defending and strengthening jobs, livelinoods, and work sites. In this regard, the Parties shall work with the Department of Labor and Employment for private employees and workers; as their mandate is the registration of unions of private employees and workers, for the public sector the parties will work with the Department of Labor and Employment and the Civil Service Commission. Finally, the parties will work with the Department of Interior and Local Government as they facilitate the registration of individual kasambahays and not associations of kasambahays. 24GRP DRAFT CASER As of 10 JANUARY 2017 Section 3. The Parties agree to work together so that Congress fast-tracks the enactment of the Magna Carta for Workers in the Informal Economy which seeks to fortify the right of all informal workers—farmers, fisherfolk, home- based workers, jeepney and pedicab drivers, informal construction workers, street vendors, etc.—to form their own associations at the community or local levels, dialogue and bargain with government agencies and other sectors of the community, and help develop and formulate development agenda at the community or sectoral level that directly affects them. Section 4. The Parties agree to implement programs for the jobless and near jobless (those working less than eight hours a day or with jobs paying below subsistence level). One such program is for government to provide more resources for public-poor partnership infrastructure projects that guarantee jobs adhering to minimum wage standards. This program should last for between three (3) and six (6) months depending on the nature and requirements of the project during which the workers shall actively participate in the government's skills and job matching programs. Section 5. The Parties affirm that in the formal sector of the labor market, a program of partnership between employers and unions-based on the recognition of the rights of both parties, of cooperative commitment to productivity and competitiveness raising, and of just sharing of the gains (and pains) of enterprise operations is necessary. Section 6.The Parties agree to launch a special program that the government and the migrant worker community (workers overseas as well as those at home with their families) can pursue together: the all-out mobilization of migrant savings in support of citizen-owned enterprises, including public-private partnerships in building community infrastructures such as school buildings and community centers. A holistic program of reintegration that goes beyond token credit assistance for microenterprise formation or temporary job placement should be developed for the displaced and vulnerable migrant workers. In fact, reintegration should be part of a broader overall program of raising the capacity of the economy to expand, partly relying on the mobilization of OFW savings, in order to reduce the nation's dependence on OFW remittances. ARTICLE XIX. IMPLEMENTATION MECHANISMS TO UPHOLD LABOR RIGHTS Section 1. The Parties agree that the GRP shall work, within one year from signing this Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part Vil of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. 25GRP DRAFT CASER As of 10 JANUARY 2017 Section 2. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will enact related and complementary policy reforms in support of implementing labor rights. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. Section 3. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on labor rights, including but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels from Department Secretary to lower positions as well as to technical and administrative posts. PART VIII. WOMEN AND GENDER EQUALITY AND REPRESENTATION ARTICLE XX. SHARED UNDERSTANDING OF THE CHALLENGES IN PROMOTING GENDER EQUALITY AND PROTECTING THE WELFARE OF MARGINALIZED AND VULNERABLE WOMEN Section 1. The Parties acknowledge the gains achieved in promoting gender equality and protecting welfare of marginalized and vulnerable women through several laws enacted and programs implemented by the government. However, despite these gains, serious gender issues persist especially in efforts to eliminate all forms of gender-based violence and discriminatory policies and practices in access especially of poor women’s to economic resources as well as leadership positions. Section 2. The Parties agree that patriarchal beliefs and practices prevent women from participating more fully in development, thereby hindering socioeconomic progress. Section 3. The Parties, recognizing the necessity to advance gender equality and protect the welfare of marginalized and vulnerable women agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following articles of Part IX of this Agreement. ARTICLE XXI. ACTIONS AGREED TO PROMOTE GENDER EQUALITY AND PROTECT THE WELFARE OF MARGINALZIED AND VULNERABLE WOMEN Section 1, The Parties agree to include in all poverty elimination programs measures to enhance the access of poor women and other vulnerable groups of females (ie., the elderly, those with disabilities, and those who belong to indigenous communities) to sustainable income-generating opportunities. 26Section 2. Section 3. Section 4. GRP DRAFT CASER As of 10 JANUARY 2017 The Parties agree to review and amend or have amended, if necessary, all laws, administrative policies, and programs that hinder the access, especially of poor and vulnerable women, to land, agricultural production technologies, credit facilities, and programs and services to micro- and small-enterprises. To respond to the serious issues of maternal mortality and morbidity, the Parties agree to strengthen current programs and services that ensure their access to quality and adequate health and medical assistance. These include the provision of reproductive health information about family planning, spacing of pregnancy, prevention of child pregnancy, and the like. Health and medical facilities, equipped with adequate resources, should be made available, especially in rural areas with high rates of poverty. The Parties affirm that it is important and necessary that the elimination of gender —based discrimination go hand in hand with measures to reduce the incidence of poverty in the country. This can be achieved through the vigorous promotion of viable income-generating opportunities, especially in the rural areas. These opportunities should be geared to women who, because of lack of jobs, have to seek employment abroad as domestic helpers and caregivers. Inasmuch as the gender issues mentioned here disproportionately affect poor women, current policies and programs to eliminate poverty must continue to adopt gender-responsive and human rights-based strategies to development. Section 5.The Parties agree, in order to eliminate the discriminatory and weak provisions of existing laws as well as provide additional legal norms to address the many festering problems faced by the poor and other vulnerable sectors of the population, to pursue the following a. Amend the anti-sexual harassment law to expand its coverage and include cases committed by employees/students against their superiors/teachers and among individuals of the same position/rank; b. Improve the family code provision on legal separation to give more protection before the justice system by the parties involved and their children; cc, Amend family code to guarantee that “the administration and enjoyment of community property shall belong to both spouses jointly;” “that father and the mother shall jointly exercise parental authority over their children" as well as legal guardianship over the latter's property without the necessity of a court appointment; d. Amend the anti-rape law to redefine this crime as “sexual assault that violates a person's right to personal security and bodily integrity with the 27ARTICLE Section 1. Section 2. Section 3. ARTICLE Section 4 GRP DRAFT CASER As of 10 JANUARY 2017 essential element of lack of consent and expand the coverage of the crime.” e. Enact a divorce law to legalize live-in relationships among many Filipinos through re-marriage; f Amend the anti-prostitution law to shift criminal liability to clients (customers or recipients of sexual services) and the exploiters (pimps, traffickers, brothel owners) ; g. Expand the coverage of the maternity and paternity leave benefits law; and, h. Enact a law prohibiting discrimination on the basis of sexual orientation or gender identity XXII. IMPLEMENTATION MECHANISMS TO PROMOTE GENDER EQUALITY PROTECT THE WELFARE OF MARGINALIZED AND VULNERABLE WOMEN The Parties agree that the GRP shall work, within one year from signing this, Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part IX of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. The Parties also agree, within the same period as Section 1 of this Article, that the GPH will enact related and complementary policy reforms in support of achieving women and gender equality and representation. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on gender equality including, but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels from Department Secretary to lower positions as well as to technical and administrative posts. PART IX. SOCIAL SERVICES XXII. SHARED PRINCIPLES ON SOCIAL SERVICES AND PROTECTION The Parties affirm that everyone has the right to a life of dignity, meaning the right to enjoy a standard of living adequate to maintain his or her health and 28GRP DRAFT CASER As of 10 JANUARY 2017 well-being which requires access to food, clothing, housing, medical care, education, other essential social services, and security against social and economic risks, such as unemployment, sickness, disability, and the infirmities of old age. The Parties also affirm that the State shall give the highest budgetary priority to the delivery of basic social services to the poor, disadvantaged, and vulnerable segments of society, such as the unemployed, displaced workers, elderly, handicapped, widows, solo working parents, orphans, abandoned children, and victims of natural disasters. Section 2. The Parties agree that spending on basic services for the poor requires addressing the root or structural causes of poverty. Section 3. The Parties agree that government spending on social services is guided by three cardinal principles: it is an investment for the well-being of all Filipinos; it is an investment to build a just and equitable social and economic order; and it is an investment to empower the poor and transform them into productive members of society. Social spending, therefore, should be a central or integral part of the country’s macroeconomic development planning, strategizing, and programming. In short, from a development policy perspective, social spending should be treated as a motor of economic growth and development, not a mere object of budgetary allocation, Section 4. The Parties, recognizing the need to reform social services, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following articles of Part XI of this Agreement. ARTICLE XXIV. ACTIONS AGREED ON SOCIAL SERVICES Section 1.The Parties agree that empowerment of the poor means going beyond social tokenism, or the treatment of the poor as mere objects of social welfare or charity. The Parties commit to the principle that spending on basic services for the poor should go hand-in-hand with the implementation of asset reforms—land and housing in particular, the crafting of agro-industrial policies aimed at the creation of decent jobs for all, and the enactment and enforcement of protective labor laws, such as minimum wages, social and health insurance, and so on. Jobs and livelihood programs for the poor should not be treated as transitory; they should be designed as vital or central components of national, regional, and local development blueprints to insure that they become truly sustainable and emancipatory Section 2.The Parties affirm that social security is a guaranteed right of all citizens. It means all Filipinos should enjoy universal and adequate social safety nets. A comprehensive social security program, therefore, entails not only the strengthening of the contributory insurance system to maximize and enhance the benefits for the members, such as adequate pension for the retirees and 29GRP DRAFT CASER As of 10 JANUARY 2017 unemployment insurance for the displaced, but also the development of a subsidized social insurance system for those earning marginally, and the provision of direct and ample social assistance to the poorest and the financially incapacitated. Section 3.The Parties have identified health insurance to be a major component of a comprehensive social security program, and that such health insurance should be truly universal, with the range of medical services offered adequate and affordable to the poor and backed by a network of hospitals and health facilities accessible to all. Furthermore, the Parties acknowledge that development of a health insurance program for all should go hand-in-hand with the development of a national health care program focused on the strengthening of preventive and participatory community health and wellness programs, including the institutionalization of good public health practices. Section 4. The Parties agree that the privatization policy to the provision of basic social services and to the development of supporting infrastructures such as schools, hospitals, and community centers should give way to citizen owned enterprises-where the government and citizens pooling their savings become the primary investors. The infrastructure requirements of the urban and rural poor communities (for example, building resilient all-purpose community centers) should take precedence over infrastructure catering only to a few. Section 5. The Parties agree that urban and rural poor community rebuilding programs are at the core of a national housing and settlement program. The Parties also acknowledge that the national housing and settlement program should guide the crafting of a national land and water use plan as elaborated in Part Viof this Agreement. ARTICLE XXV. IMPLEMENTATION MECHANISMS TO ENHANCE SOCIAL SERVICES Section 1. The Parties agree that the GRP shall work, within one year from signing this Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part XI of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. Section 2. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will enact related and complementary policy reforms in support of enhancing social services in the country. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. 30Section 3. ARTICLE Section 1 Section 2. ARTICLE Section 1 Section 2. GRP DRAFT CASER As of 10 JANUARY 2017 Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program to enhance social services including, but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels from Department Secretary to lower positions as well as to technical and administrative posts. PART X. FOREIGN ECONOMIC AND TRADE RELATIONS XXI. SHARED UNDERSTANDING OF THE GLOBAL ECONOMIC AND TRADE ISSUES The Parties agree that despite two decades of implementing a trade liberalization policy, competition and productivity growth remain weak. Larger, older, foreign-affiliated, and export-oriented firms push out smaller, younger, and domestic-owned enterprises. MSMEs continue to face competitiveness, financing, and market-access problems. Philippine exports are heavily concentrated in electronics, garments and textiles, and auto parts. Exports in these products are concentrated in low value-added and labor-intensive sectors. Philippine experience in trade liberalization has shown that it does not automatically lead to a competitive domestic market economy. The Parties acknowledge the weaknesses and deficiencies of Philippine trade policy and agree to assume separate as well as joint duties and responsibilities to adopt the trade policy reforms specified in the following articles of Part XI! of this Agreement. XXII. ACTIONS AGREED TO REFORM TRADE AND RELATED POLICIES The Parties shall review, using the criterion of faimess and development impacts, including impacts on the poor, the country’s trade liberalization policy and the controversial conditionalities imposed by multilateral and bilateral agencies. The Parties agree on the necessity to protect the domestic economy against, dumping by foreign suppliers and to provide incentives to Filipino-owned industrial enterprises and agricultural producers. Section 3.The Parties agree that there should be a national policy of promoting economic independence and industrial development that should be combined with a strategy of close economic cooperation with ASEAN members in order to take advantage of increasing competition among major industrialized countries, a1Section 4. Section 5. ARTICLE Section 1 Section 2. ARTICLE Section 1. Section 2. GRP DRAFT CASER As of 10 JANUARY 2017 The Parties agree that the government shall adopt and implement a policy to diversify trade beyond exports of electronics, garments and textiles, and auto parts, The Parties affirm the need to regulate the activities of foreign trading companies allowed to operate in the Philippines, particularly with regard to their policies towards workers and the environment. XXII, IMPLEMENTATION MECHANISMS TO REFORM TRADE AND RELATED POLICIES The Parties agree that the GRP shall work, within one year from signing this Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part XII of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will enact related and complementary policies to reform trade and related policies. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. PART XI. MONETARY AND FISCAL POLICIES XXIV. SHARED UNDERSTANDING OF MONETARY AND FISCAL POLICIES The Parties agree that monetary policy is important for socio-economic reforms to succeed. Monetary policy must be implemented so that the country has stable prices, affordable interest rates, and that it redistributes income and wealth. In the short run, monetary policy must be used to increase the economy's output of goods and services, create more job opportunities for millions of workers, and reduce unemployment. The Parties affirm that fiscal policy refers to government actions that affect total government spending, tax rates, tax revenues, the budget deficit, and the level of public debt, They parties affirm that fiscal policies require that the government determine the appropriate levels of spending, tax rates, tax revenues, and budget surpluses or deficits, as well as the appropriate division of revenues between national and local governments; that the government raise spending and reduce tax rates in the face of a recession to help especially the marginalized and the vulnerable sectors; and that any fiscal rules adopted (e.g. balanced budget or targeted fiscal deficit) must not 32GRP DRAFT CASER As of 10 JANUARY 2017 be used at the expense of the welfare of the poor, the marginalized, and the vulnerable in the country. ARTICLE XXV. ACTIONS AGREED TO REFORM MONETARY AND FISCAL POLICIES Section 1. The Parties agree to strengthen the regulation of the financial system, including banks, insurance companies, finance companies, securities firms, investment houses, microfinance firms, pawnshops, credit NGOs, and credit cooperatives. They shall be effectively regulated, supervised, and monitored by the public sector and Filipino nationals. Section 2. The Parties agree that minority foreign equity in financial institutions may be allowed to supplement local investible resources, share foreign financial investment know-how, and constrain domestic elite families and business groups from having a highly concentrated equity share in the financial system. Provision of equity ownership of communities, employees or the low-income people, Section 3.The Parties agree that strict measures shall be undertaken to regulate the entry and operation of speculative capital, either foreign-owned or owned by Filipinos based abroad. Section 4. The Parties agree that the BSP and the financial institutions under its supervision shall be directed to support and assist the policy and program of inclusive growth and development, agrarian reform, and agriculture-based industrialization strategy. They shall give priority to the industrial projects of the GRP and Filipino entrepreneurs. The Land Bank of the Philippines and rural banks shall be directed to support and assist genuine agrarian reform, as contemplated by this Agreement. Section 5. The Parties agree that in every publicly-owned financial institution or publicly- listed but privately-owned financial institution there shall be a workers’ council whose representative(s) shall sit in the board of directors or trustees and shall participate in policy making and management in order to ensure the realization of the policy and program of inclusive growth under the Philippine Development Plan, especially agrarian reform and rural-based and agri-based industrial development. Banks should reduce the many documentation requirements. As a substitute for collateral, government can come up with a guarantee fund — easy access and quick claims upon guarantee calls. Pursue the promotion and establishment of microfinance oriented banks that are owned substantially by the low income group communities. 33GRP DRAFT CASER As of 10 JANUARY 2017 Section 6. The Parties agree that public finance—taxation, credit policy, public and fiscal spending—shall be directed towards maximizing funds for the realization of the strategic plan for economic development, including the Philippine Development Plan and Ambisyon 2040, especially agrarian reform and the rural-based and agri-based industrialization strategy, eliminating bureaucratic and other counterproductive expenditures. The Parties likewise affirm that credit windows in banks shall be opened for low- interest loans to small enterprises and to poor families to meet their basic necessities. Section 7. The Parties agree that foreign exchange eared by exports and the remittances of Filipino migrant workers and other overseas Filipinos shall be directed towards financing the importation of necessary industrial equipment and the fulfillment of the strategic economic plan. Import financing for consumer products that are luxury goods or that can be produced in the country shall be phased out Section 8. The Parties agree that foreign borrowing shall be reduced except to finance deferred payments for the importation of equipment and technology for the establishment of basic and heavy industries, the lynchpin of the strategic plan for economic development. Section 9.The Parties agree that fiscal policy shall be oriented to continually expand social welfare. Priority in expenditures shall be given to social infrastructure, state investment in priority productive sectors, education, health, and other social services. Public expenditures for infrastructure and the productive sectors of the economy shall be directed towards generating employment for the people. Section 10. The Parties agree that the budget for the military shall be shifted from a focus on internal rebellion to one on building capability to repel threats posed by external forces. Savings from budgetary reallocations shall be redirected to support spending for social services such as education, health, public housing, mass transportation, and other pro-poor programs. Section 11. The Parties agree that taxation shall be progressive and that all revenues of existing regressive taxes, such as value-added taxes, shall be allocated to support pro-poor policies on health, education, housing, and livelihood programs. The Parties further affirm that tax reforms should make the existing tax system more progressive. Section 12. The Parties agree that all past foreign debts shall be audited. Section 13. The Parties agree that the GRP policy of privatization shall be reviewed, noting that the highest-price bidding rule in infrastructure privatization 34GRP DRAFT CASER As of 10 JANUARY 2017 promotes lack of access by the poor to infrastructure services that are priced too high relative to the average wage of workers. Maximum access of infrastructure facilities and government provision of infrastructure facilities that encourage connectivity to the hinterlands should be the primary goal of public policy. Public-private partnerships (PPPs) in infrastructure that create incentives to locate in densely-populated urban areas to enhance the financial viability of PPPs encourage unbalanced regional growth and should be discouraged, reversed, or avoided. PART XIII. PEACEFUL AND RESILIENT COMMUNITIES ARTICLE XXVI. SHARED OBJECTIVES ON RESILENCE TO DISASTERS Section 1. The Parties agree that natural and human-made disasters are serious threats to the prosperity, peacefulness, and well-being of many communities Accordingly, the Parties acknowledge the importance of adopting a holistic disaster risk reduction and management strategy that will be implemented at all levels of government, including up to the community level. Section 2. The Parties agree that local governments and community organizations, as front liners in addressing disasters, must be supported with the right budget and provided with the capacity to fulfill their roles. ARTICLE XXVII. ACTIONS TO ENSURE PEACEFUL AND RESILEINT COMMUNITIES Section 1. The Parties agree to work together so that the Disaster Risk Reduction and Management Act of 2010 is amended based on the results of the sunset review that was conducted through a multi-stakeholder process. Section 2. The Parties agree that the People’s Survival Fund be further enhanced and its budget tripled to support local government climate change adaptation efforts, Section 3. The Parties agree that all local governments, including the community-based organizations working with them, are provided support to complete their local disaster risk reduction and management plans. Section 4. The Parties agree on the necessity to create a new national disaster and emergency agency that is independent of other departments and will take the lead in addressing all aspects of disaster risk reduction and management, while bearing in mind the need to coordinate with other departments, agencies, and organizations. 35,ARTICLE Section 1 Section 2. Section 3. GRP DRAFT CASER As of 10 JANUARY 2017 XXVII IMPLEMENTATION MECHANISMS TO ENSURE PEACEFUL AND RESILIENT COMMUNITIES The Parties agree that the GPH shall work, within one year from signing this Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part XIV of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress The Parties also agree, within the same period as Section 1 of this Article, that the GPH will enact related and complementary policies to ensure peaceful and resilient communities. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on peaceful and resilient communities, including, but not limited to, appointment as officials at all levels, from Department Secretary to lower positions as well as to technical and administrative posts. ARTICLE XXIX. SHARED PRINCIPLES ON HUMAN RESOURCES Section 1. Section 2. Section 3. Section 4. The Parties agree that the inculcation of nationalism and patriotism should be the guiding principle in human resource development at the national, regional, local, and community levels. Indeed, it is the bounden duty of the State to prioritize education, science and technology, arts, culture, and sports to foster patriotism and nationalism, accelerate social progress, and promote total human liberation and development for this is key to the transformation of Philippine society into an inclusive, equitable, sustainable, and progressive national community The Parties affirm that the full development of the talents and potentials of citizens requires balanced and mutually-reinforcing policies of strengthening the education and training systems of the country at all levels (from kindergarten to college and at the work place) and the development of all sectors and areas of the national economy. The Parties agree that no citizen should be deprived of the right to education and the development of his or her innate talents. The Parties, recognizing the importance of enhancing the country’s human resources, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following articles of Part X of this Agreement. 36GRP DRAFT CASER As of 10 JANUARY 2017 ARTICLE XXX. ACTIONS AGREED ON HUMAN RESOURCES Section 1. The Parties agree that policies to improve the employability and productivity of the work force cannot be pursued without addressing the capacity of the economy to create quality and decent jobs for all. The government strategy of aligning the education and training systems with the requirements of the global labor market and global educational standards should be abandoned; instead, global and regional educational benchmarking with the world's most advanced societies should re-focus on how local capacities in both the supply and demand sides of the economy and the labor market can be enhanced to propel the county at a higher level of development Section 2.The Parties will implement a strategy of making education available to all, Section 3. ARTICLE Section 1 Section 2. which should be translated into programs providing full access to schooling by children of the poor and disadvantaged, not only through the construction of schools with ample facilities and the hiring of qualified teachers but also through the provision of transport and feeding programs. The Parties agree that, for the out-of-school youth and adults who have not completed basic education or pursued any post-secondary education and training, the government, at both the national and local levels, should develop alternative comprehensive learning and training systems that unleash their potential to be educated and informed citizens. Such alternative learning and training systems should not be designed as ad hoc programs for the poor and those in the margins of the economy, but rather should be aligned with the requirements of a renewed domestic industrial sector, a renewed domestic agricultural sector, and the re-development of urban and rural poor communities. For example, electronic kiosks or “classrooms” in rural community centers can be established to help small farmers and agrarian reform beneficiaries learn to connect digitally and acquire collective knowledge on seed technology, solidarity markets, and related farming knowhow through guided online learning programs. XXXI, IMPLEMENTATION MECHANISMS TO ENHANCE THE HUMAN RESOUCES OF THE COUNTRY The Parties agree that the GRP shall work, within one year from signing this Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part X of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. The Parties also agree, within the same period as Section 1 of this Article, that the GPH will enact related and complementary policy reforms in support 37Section 3. ARTICLE Section 1 Section 2. Section 3. Section 4. GRP DRAFT CASER As of 10 JANUARY 2017 of enhancing human resources in the country. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on human resources including, but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels from Department Secretary to lower positions as well as to technical and administrative posts. XXXII SHARED PRINCIPLES ON RESPONSIBLE PARENTHOOD, REPRODUCTIVE HEALTH AND POPULATION AND DEVELOPMENT The Parties agree that population factors are intertwined with responsible parenthood, family planning, reproductive health, and the sustainable development of the country, including the reduction of poverty, inequity and related factors. Since the 1970s, the Philippines has been predicted to experience going through the demographic "sweet spot” wherein the largest cohorts ever of young adults would enter the workforce to contribute to sustained production, savings and investments simultaneously with rapidly slowing fertility rates that limit the number of dependents. For several decades, the long-expected demographic bonus for the country has not been reaped even as eleven mothers die every day today from pregnancy-related causes and ten out of every one hundred teenage girls become pregnant thus impairing their health, limiting their capability to be educated, and reducing their opportunity to become productive. Many of them would have benefitted from high quality, medically safe and effective family planning methods of their choice if given access. There continues to be a gap between desired versus actual family sizes especially among poor households that inhibit the attainment of adequate health for every family member, the provision of enough education to children and the generation of household savings and investments. The country’s continuing population bubble combined with structural problems results in reduced carrying capacity of the physical environment and increased population density, dwindling shares of children to small- sized family farms over the long term, unabated flow of the unemployed from the rural areas to already overburdened highly urbanized cities, reduced resiliency of communities to disasters, and the overall reduction in human capabilities in terms of education, health and productivity. 38ARTICLE Section 1 Section 2. GRP DRAFT CASER As of 10 JANUARY 2017 XXXII AGREED ACTIONS TO PURSUE RESPONSIBLE PARENTHOOD, REPRODCUTIVE HEALTH AND POPULATION AND DEVELOPMENT STRATEGIES The Parties agree that population dynamics can be influenced and managed to hasten its transition into the demographic “sweet spot” through a series of comprehensive and interrelated actions involving the following: a. Scientific and rational planning and the prioritization of rural development, dispersal of industries and provision of support to micro, small and medium enterprise that positively influence migration away from the highly-urbanized cities and overseas work; b. By respecting the human rights of couples and individuals to choose freely when, how often and how many children they will have through responsible parenthood and family planning programs and services; c. By empowering women to be equal with men in production while recognizing their special needs; d. By providing life skills and comprehensive sexuality education to young people and children, especially young women, and girls; e. By addressing the special needs of women, newborns, children and young people in times of emergencies such as natural and man-made calamities; and, f. By involving communities, couples and individuals in the delivery of responsible parenthood, family planning and reproductive health services. The Parties agree that there is a need to include real and genuine rural development, dispersal of industries and provision of support to MSMEs into the Philippine Development Plan supported by appropriate laws and implementation policies, programs and services. Section 3. The Parties agree that the Responsible Parenthood and Reproductive Health Section 4. Law should be ruled by the Supreme Court in favor of scientific evidence and vigorously implemented by GRP. The Parties agree that a national family planning program anchored on informed choice and respect for human rights should be vigorously pursued by the government and that family planning commodities should be given for free to those who cannot afford to purchase their family planning method of choice, 39GRP DRAFT CASER As of 10 JANUARY 2017 Section 5. The Parties agree that age-appropriate Life Skills Education (LSE) and Comprehensive Sexuality Education (CSE) should be taught in all school levels. Section 6. The Parties also agree that in all types of natural and man-made emergencies, which are of a regular occurrence in the country, there should be a distinct package of programs and services apart from those that are already existing, including on reproductive health, family planning, gender- based violence and HIV and AIDS, provided to women, especially to pregnant women and lactating mothers, newborns, children and young people, particularly young women and girls, people with disabilities, and senior citizens. ARTICLE XXXIV. IMPLEMENTATION MECHANISMS TO PURSUE RESPONSIBLE PARENTHOOD, REPRODUCTIVE HEALTH AND POPULATION AND DEVELOPMENT Section 1. The Parties agree that the GRP shall work, within one year from signing this Agreement, to enact new laws and come up with policies that will implement and lead to strict compliance with all Articles and Sections of Part XIll of this ‘Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. Section 2. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will enact related and complementary policies to reform responsible parenthood, reproductive health and population and development and related policies. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies. Section 3. Personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on responsible parenthood, reproductive health and population and development including, but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels from Department Secretary to lower positions as well as to technical and administrative posts. ARTICLE XXXV. RIGHT TO SUSTAINABLE LIVING INCOME Section 1. Sustainable living income is the level of income that is sufficient to meet at least the basic needs of an individual or group of people and that can be maintained or increased without sacrificing future income. It is a level of income that meets the needs of the present without sacrificing the ability of future generations to have the same or a higher level of income. Sustainable 40GRP DRAFT CASER As of 10 JANUARY 2017 living income is generated by the generalized wealth represented by current and future technology and stocks of capital, labor, and resources, and through increased productivity. Section 2. The following are the sources of sustainable living income: Section 3, Section 4. ARTICLE Section 1. Section 2. a. Wage and non-wage sources from employment, from self-employment, from formal or informal labor as well as from business profits, dividends, interest payments, grants, and transfers b. Improvements in productivity through education and human resource development that upgrades skills and knowledge and inculcates proper work habits and attitudes, and through the use of technology. c. Work that delivers a fair reward, security in the workplace and social protection for families, reasonable prospects for personal development and social integration, freedom of people to express their concerns, to organize and participate in decisions that affect their lives, and from equality of opportunity and treatment for women and men. The Parties note that the main responsibility for creating and providing jobs in a mixed economy rests with the private sector. However, the State, through its policies and programs, can create and maintain an environment that is conducive to economic activity, job creation, and sustainable incomes. The Parties, recognizing that achieving sustainable living income is good for the country, agree to assume separate as well as joint duties and responsibilities to effect the measures identified in the following articles of Part Vill of this Agreement. XXXVI. SUSTAINABLE LIVING INCOME, CAPABILITY, EQUITY, AND SOCIAL SUSTAINABILITY The Parties affirm that capability, as defined by the philosopher Amartya Sen, is the state of being able to perform certain basic functions, of being nourished and clothed comfortably, of being able to avoid morbidity and preventable mortality, of being able to lead a life without shame, having friends and visiting them, and knowing what is going on and what others are talking about. In relation to poverty alleviation, capability enhancement means enabling the poor to rise above the poverty line and, once above it, seeing to it that their new status is sustained if not further improved. It means investing in their education, health and nutrition, and livelihood. The Parties agree that an equitable society is one in which members have equal access to opportunities and assets, as well as to capabilities to narrow, if not close, the wide gap between those who are excessively wealthy and a1GRP DRAFT CASER As of 10 JANUARY 2017 those who wallow in poverty. The Parties likewise acknowledge that equity entails the dismantling of the societal and institutional structures that keep people poor, uninformed, disenfranchised, and powerless. Lack of education, skewed land ownership, and the existence of monopolies and oligopolies are some of the features of those structural inequities. Policies and institutions that redistribute assets, provide incentives for small enterprises, and level the competitive playing field promote equity and inclusive development Section 3.The Parties agree that sustainability means not spending beyond one's means. It implies rational spending self-reliance and an ideology of long-term self-testraint. This means that the State has the duty to protect the institutions that promote peace and order, human rights, and the equitable reign of law and order. Such protection should extend to everyone regardless of income, gender, age, ethnicity, religion, or political affiliation Sustainability in agriculture, for example, requires adopting strategies to ensure the supply of food and the provision of livelihood for the poor and vulnerable during crises, along with establishing mechanisms that will enable those in distress to sell their tangible assets for a fair price. ARTICLE XXXVI. ACTIONS TO PROMOTE SUSTAINABLE LIVING INCOME Section 1, The State shall maintain social protection policies in healthcare, housing, and education that are designed to reduce poverty and vulnerability. It can do so by promoting efficient labor markets, reducing peoples’ exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption or loss of income. These will enhance productivity, raise incomes, expand domestic demand, and spur economic growth. Consequently, the Parties agree that the existing social protection policies in the Philippines— on health, education and housing—should be expanded and subjected to continuous improvement and innovations through the introduction of practices that have worked in more advanced societies. Section 2. The Parties affirm to invest in education and training at least 4-5 percent of GDP which could eventually go up to 6 percent, to promote total human development including employment, livelihood and entrepreneurship. Section 3. The Parties agree that the government shall continue and, if possible, expand programs such as conditional cash transfer (CCT) that links educational outcomes to maternal and child health and ensures that school- age children are in school, either in a regular classroom setting or in an alternative modality for learning. The State shall expand CCT by providing scholarships at the public tertiary level in order to build a 21st century skills set for the workforce. Section 4. The Parties agree to review the tri-focalized education governance system to achieve a leaner, more cost-effective, and more competitive educational 42Section 5. Section 6. GRP DRAFT CASER As of 10 JANUARY 2017 governance. The Parties likewise agree that the government shall promote a curriculum based on STEM (Science, Technology, Engineering and Mathematics) and extend support to exceptional and deserving scholars who will lead the local science and technology sector to regional and global competitiveness. The Parties also agree to emphasize the importance of liberal arts and humanities in order to maintain a critical mass of thinkers, historians, social scientists, and artists who will keep our traditions and cultural heritage alive as well as provide critical insights on societal affairs. The Parties affirm that a healthy people are a productive people. In this regard the Parties agree that the State shall therefore promote a healthy and productive workforce by providing accessible and affordable healthcare services down to the barangay level. The State shall likewise invest in healthcare services to cover the preventive, curative, and disability needs of the workforce. Finally, health services shall be made affordable, accessible, and when viable, free to citizens, and that current programs on health and nutrition shall be expanded to meet the growing health needs of the people, especially in underserved areas. ARTICLE XXXVIII. IMPLEMENTATION MECHANISMS TO ACHIEVE SUSTAINABLE Section 1. Section 2. Section 3. LIVING INCOME The Parties agree that the GRP shall work, within one year from signing this Agreement, to enact new laws that will implement and lead to strict compliance with all Articles and Sections of Part VIll of this Agreement. The NDFP shall be consulted on the specific provisions of such laws and its accepted proposals shall be incorporated into the administration proposal to Congress. The Parties also agree, within the same period as Section 1 of this Article, that the GRP will enact related and complementary policy reforms in support of achieving sustainable living income. The NDFP shall be consulted on the specific provisions of such policies and its accepted proposals shall be incorporated into the executive and administrative orders issued to implement those policies The parties also agree that the personnel of the NDFP and its allied mass and sectoral organizations shall be given particular roles in the implementation of the program on sustainable living income including, but not limited to appointments, where appropriate and subject to the President's discretion, as officials at all levels from Department Secretary to lower positions as well as to technical and administrative posts. 43GRP DRAFT CASER As of 10 JANUARY 2017 PART XIV. SHARED OBJECTIVES ON GOOD GOVERNANCE Section 1. The Parties recognize that bureaucracy has many challenges and that it has nearly failed to bring about an efficient responsive, and effective administrative structure that would produce the results that many good laws and policies promise to deliver. Moreover, no matter how well formulated policies and laws are, the spirit of these policies is realized in the implementation by the bureaucracy. Section 2. The Parties agree that in order to carry out and continue a campaign to drastically reform the structure, the leadership should show the way by example and that a strong will inspires and ensures that reform is carried out down to the last person in the bureaucracy. Section 3. The Parties agree that the bureaucracy should constantly focus on results and that performance should be outcomes-based as mandated by the objectives of this Agreement. Section 4. The Parties agree that in order to ensure that the objectives set out by the Agreement are implemented, the necessary wherewithal such as organizational structures, human resources, and budget are available for such purpose. ARTICLE XXXIX. ACTIONS TO ENSURE GOOD GOVERNANCE Section 1. The Parties agree that a monitoring unit to oversee and ensure the implementation set forth by the Agreement shall be created. Such Monitoring unit shall be composed of individuals or representatives from both parties. Additionally, there should be an Advisory Council composed of credible and competent individuals including third party representatives who could provide the necessary inputs and recommendations on the conduct of the implementation defined in this Agreement. Section 2. The Parties agree to identify and consolidate all provisions in the Agreement that will require legislation and make sure that the legislative measures are drafted and pursued in Congress in the case of new bills, and that necessary steps are taken in case of laws that require amendment Section 3.The Parties agree that some provisions in the Agreement do not require legislation or amendment, and that these may necessitate executive fiat. In the case of the latter, the parties agree to work hand in hand with the Executive and its appropriate agencies for authorization and action on programs and projects that would be initiated or pursued to meet the Agreement's objectives. 44GRP DRAFT CASER As of 10 JANUARY 2017 Section 4.The Parties agree that the appropriate and necessary budget shall be Section 5. Section 6. allocated for programs and projects that are clearly defined under this Agreement, The budget should be part of the annual General Appropriations ‘Act (GAA) and, if necessary, may be provided for by specific sources of funding as authorized by law and/or by the Executive. The Parties agree to identify and tap possible sources of funds such as the Coco levy funds or the creation of fund sources such as the Sovereign Funds which may be dedicated to and which can support sustainable projects for the communities and the poor towards better income and sustainable livelihoods. In the case of the Sovereign Funds, international protocol shall govern the said facility to ensure that the funds are not corrupted and are dedicated for their intent and purposes The Parties agree that programs and projects including their budget, that are enacted and implemented under this Agreement shall be transparent to the public and that responsible units or persons should be made to fully account for the discharge of roles and responsibilities. Section 7.The Parties agree that people's organizations, community associations, including those under the influence of the NDFP should, as far as possible, be engaged. Participation of the communities and citizen groups should be ensured by the local government units through mechanisms that are inclusive and transparent. In this regard, state universities and colleges, technical and vocational schools and professional groups maybe tapped by the local authorities to help in the capability building for greater community and citizen participation PART XV. TRANSITORY PROVISIONS Section 1. Delivery of social economic services including governance and accountability. Immediate delivery of peace dividends because of the conclusion of Comprehensive Agreement on Respect for Human Rights and International Law and Comprehensive Agreement on Socio-Economic Reforms and before, during, and after concluding other Agreements such as Ceasefire, Political and Constitutional Reforms, and End of Hostilities and Disposition of Forces. PART XVI. FINAL PROVISIONS Section 1. Approval _and Effectivity This Agreement shall be approved by the principals of the GRP and the NDFP within one month after signing and finalization by their negotiating panels and shall take full and immediate effect upon approval by the principals. 45,GRP DRAFT CASER As of 10 JANUARY 2017 Section 2. Enabling Clause The Parties shall be bound by this Agreement to take the necessary unilateral steps to enable them to carry out any provision which entails a modification or amendment of their respective constitutions, policies, and laws.The GRP shall undertake to repeal or rescind all its laws, orders, and issuances which are inconsistent with or contrary to the above agreements. Section 3.Force and Effect The Parties agree that, irrespective of the course and ‘outcome of the peace negotiations, the provisions of this Agreement that uphold the economic, social, and cultural rights of the people shall remain in force and in effect. IN WITNESS, we sign this Agreement this at FOR THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES By: SILVESTRE H. BELLO Ill Chairperson, GRP Negotiating Panel HERNANI A. BRAGANZA Member RENE V. SARMIENTO Member ANGELA L. TRINIDAD Member ANTONIO B. ARELLANO Member day of 2017, FOR THE NATIONAL DEMOCRATIC FRONT OF THE PHILIPPINES By: FIDEL V. AGCAOILI Chairperson, NDFP Negotiating Panel JULIETA S. DE LIMA-SISON Member CONI K. LEDESMA Member ASTERIO B. PALIMA Member BENITO E. TIAMZON Member 46