QuestionsQuestions (Republic Act No. 8425)
RA 8425 is entitled the “Social Reform and Poverty Alleviation Act.” Its purpose is to institutionalize the Social Reform and Poverty Alleviation Program, create the National Anti-Poverty Commission (NAPC), define its powers and functions, and provide for related matters.
Section 2 declares policies such as area-based, sectoral and focused poverty alleviation; empowerment of poor families to meet minimum basic needs; asset reform/redistribution; institutionalizing the Social Reform Agenda (SRA); applying principles like continuity of social reform, gender-responsive approach, ecological balance, population-development interrelationship, and focusing on specific target areas and basic sectors.
They are disadvantaged sectors: farmer-peasant, artisanal fisherfolk, formal-sector workers, migrant workers, informal-sector workers, Indigenous peoples/cultural communities, women, differently-abled persons, senior citizens, victims of disasters/calamities, youth/students, children, and the urban poor.
Microfinance is a credit and savings mobilization program exclusively for the poor to improve household asset base and expand access to savings, using alternative credit schemes (e.g., group character loans, collateral-free arrangements), simplified procedures, and small savings instruments with minimum savings requirements.
Absolute poverty is when a household is below the food threshold level; relative poverty refers to the gap between the rich and the poor.
The SRA is embodied from consultations/summits on poverty alleviation and is institutionalized as a framework integrating reforms and anti-poverty initiatives. The National Anti-Poverty Action Agenda includes the core principles and programs of the SRA.
The social dimension (access to quality basic services), economic dimension (asset reform and access to economic opportunities), ecological dimension (sustainable development of productive resources), and governance dimension (democratizing decision-making and management processes for basic sectors).
Farmers/landless rural workers—agricultural development; fisherfolk—fisheries and aquatic resources conservation/management/development; Indigenous peoples/communities—respect/protection/management of ancestral domains; informal-sector workers—workers’ welfare and protection; urban poor—socialized housing; other disadvantaged groups (women, children, youth, persons with disabilities, elderly, disaster victims)—CIDSS.
Institution-building and effective participation in governance; livelihood programs; expansion of micro-credit/microfinance services and capability building; and infrastructure buildup and development.
NAPC is created under the Office of the President. It serves as the coordinating and advisory body for implementing the SRA and is the successor-in-interest of the abolished agencies (PCFP, SRC, and PCCD).
PCFP, SRC, and PCCD are abolished. NAPC assumes their powers/functions as successor-in-interest. Also, accredited organizations under the unified councils and commissions are automatically accredited under NAPC until additional requirements are provided by NAPC.
The President serves as Chairperson. The President appoints the Lead Convenor as head of the NAPC Secretariat (rank of Cabinet Secretary). There are vice chairpersons: one for government sector designated by the President, and one for basic sectors elected among basic-sector representatives.
Each sector’s councils nominate three nominees within six months after IRR effectivity and every three years thereafter (and in vacancies). The President appoints from the submitted list within 30 days. Basic sector representatives serve a three-year term without reappointment; appointment to vacancy is only for the unexpired term. IRR must provide guidelines including recall and accountability mechanisms.
They include coordinating with national/local government and private sector; coordinating with LGUs for formulation of programs; recommending policies for responsive implementation; ensuring meaningful basic-sector representation; overseeing/monitoring/recommending improvements in formulation/implementation/evaluation and resource allocation; advocating fund mobilization; providing incentives to LGUs; and submitting an annual report to Congress on operations, programs, financial status, and project data.
The PDTF is established and monitored by NAPC. It is funded from PAGCOR earnings plus appropriations and other contributions. Departments/agencies designated by the President administer the utilization of PDTF earnings, while NAPC focuses on monitoring.
They may be used for microfinance-related consultancy/training, scholarships/training grants for staff and selected beneficiaries, community organizing, feasibility studies/research, savings mobilization and incentives, information systems and baseline surveys, legal/management support services, information dissemination of microfinance technology, and other approved microfinance-support activities.
PDTF may be accessed by LGUs providing microfinance and micro-enterprise programs, but it must not be used by LGUs for personal services and maintenance/other operating expenses. For self-help projects undertaken by LGUs, at least 25% of total PDTF earnings must be used exclusively for materials and technical services.
LGUs, through local development councils, must formulate, implement, monitor, and evaluate the agenda in their jurisdiction; identify the poor using indicators (minimum basic needs, human development index, etc.); identify and source funding for projects; coordinate with private sector; and submit progress reports to NAPC. The law also states it does not diminish LGU powers under the Local Government Code.