Title
EXECUTIVE ORDER NO. 407
Date
Apr 4, 1997
Fidel V. Ramos establishes guidelines for the allocation and management of the 1997 Poverty Alleviation Fund, targeting the most impoverished municipalities and communities to reduce poverty incidence through a community-based approach and multi-agency collaboration.
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Law Summary

Introduction

This Executive Order establishes guidelines for the allocation, release, and management of the Poverty Alleviation Fund (PAF) for 1997, aimed at reducing poverty levels in the Philippines, particularly in the most depressed areas.

Background and Objectives

  • Human Resource Development and Poverty Alleviation: Aims to reduce poverty incidence from 35.7% in 1994 to 30% by 1998.
  • Implementation Focus: Initial measures focus on 20 priority provinces and Mindanao, particularly the ARMM, as defined by the 1996 National Anti-Poverty Summit.
  • Minimum Basic Needs (MBN) Approach: A strategy to identify and address the most unmet basic needs in poor communities.

Allocation and Implementation Guidelines

Section 1: MBN/CBIS Implementation

  • Explanation: The installation and maintenance of a Community-Based Information System (CBIS) will be nationwide, prioritizing fifth and sixth class municipalities.
  • Key Definitions:
    • MBN-CBIS: Minimum Basic Needs Community-Based Information System.
  • Requirements: Coordination among NSO, PCFP, DSWD, and DILG for fund allocation.

Section 2: Resettlement and Housing Programs

  • Explanation: Resettlement programs administered by NHA and NHMFC will consider cities' financial capacities.
  • Key Definitions:
    • Convergence Areas: Locations targeted for coordinated implementation of programs.
  • Important Procedures: Fund allocation in coordination with the League of Cities, prioritizing NHA pre-identified sites.

Section 3: Program Components Funding

  • Explanation: Total funding of P1.4908 billion for six program components will be allocated to fifth and sixth class municipalities across 77 provinces.
  • Key Requirements: Distribution based on municipality classification.

Section 4: Program Administration

  • Explanation: Each component is managed by designated agencies in collaboration with local government units (LGUs).
  • Key Definitions:
    • Technical Working Groups (TWGs): Groups assisting in program execution.

Section 5: Project Identification and Implementation

  • Explanation: Identification of projects will be devolved to municipal governments to enhance local capabilities.
  • Important Procedures: Principal agencies must provide technical assistance.

Section 6: Cost Sharing

  • Explanation: LGUs are required to contribute at least 10% of total project costs.
  • Consequences: Non-compliance may limit project implementation.

Section 7: Realignment of Funds

  • Explanation: Agencies may request realignment of savings for service gaps, under oversight.
  • Important Procedures: Requests must maintain provincial entitlements and follow established budgeting rules.

Section 8: Program Management Guidelines Submission

  • Explanation: Agencies must submit guidelines and specifications to the Oversight Committee within 10 days of the Executive Order's approval.
  • Relevant Timeframes: 10-day deadline for submission.

Section 9: Fund Release Protocol

  • Explanation: Funds will be released directly to regional offices for efficient implementation.
  • Key Procedures: Releases based on project packages and work plans from RTWGs.

Section 10: Special Provisions for ARMM

  • Explanation: Funds for ARMM will go to central agencies, which will coordinate with the regional governor.
  • Important Procedures: Memorandum of Agreement required for fund oversight.

Section 11: Oversight Committee Creation

  • Explanation: An Oversight Committee is established to monitor PAF implementation.
  • Key Members: Includes representatives from various governmental and civic organizations.

Section 12: Periodic Review

  • Explanation: The Oversight Committee is tasked with regular reviews and revisions of the implementing rules as necessary.

Section 13: Effectivity

  • Explanation: The Executive Order takes effect immediately upon adoption.

Key Takeaways

  • The implementation of the 1997 Poverty Alleviation Fund aims to reduce poverty in the Philippines through targeted programs in the most disadvantaged areas.
  • A structured approach is established for fund allocation, project management, and oversight, emphasizing local government involvement and community needs.
  • Compliance with cost-sharing and timely submission of guidelines is crucial for the successful implementation of the programs under the PAF.

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