Key Definitions
- Defines terms such as artisanal fisherfolk, basic sectors, cooperative, capability building, collateral-free arrangement, group character loan, indigenous peoples, micro-enterprise, microfinance, minimum basic needs, human development index, people's organization, poor, poverty alleviation, social reform, small savers instrument, urban poor, workers in formal/informal sectors, and youth.
Social Reform Agenda (SRA) Integration
- SRA incorporated in the National Anti-Poverty Action Agenda.
- Takes a multi-dimensional approach including social, economic, ecological, and governance reforms.
- Sector-specific flagship programs focus on farmers, fisherfolk, indigenous peoples, informal workers, urban poor, and other disadvantaged groups.
- Cross-sectoral programs include institution-building, livelihood, micro-credit expansion, and infrastructure development.
National Anti-Poverty Commission (NAPC) Creation and Structure
- NAPC created under the Office of the President, absorbing three previous bodies (PCFP, SRC, PCCD).
- Composed of government officials, representatives of local government leagues, and representatives of basic sectors.
- Leadership includes the President as Chairperson, appointed Lead Convenor as head of Secretariat, and vice chairpersons.
- Sectoral representatives serve three-year terms, nominated by sectoral councils.
Powers and Functions of NAPC
- Coordinate implementation of social reform and poverty alleviation programs across government and private sectors.
- Oversee and monitor policies, programs, and resource allocations.
- Ensure participation of basic sectors and advocate for fund mobilization.
- Provide incentives to local governments and submit annual reports to Congress.
Secretariat and Offices
- Secretariat provides technical and administrative support, headed by the Lead Convenor.
- Principal office in Metro Manila; branches may be established.
People’s Development Trust Fund (PDTF)
- Established with P4.5 billion from PAGCOR earnings, government appropriations, and contributions.
- Administered by a designated government agency; NAPC monitors usage.
- Funds utilized for microfinance institution support, scholarships, community organizing, studies, legal and management assistance, and information dissemination.
- Accessible by registered microfinance institutions and local government units under certain conditions.
Role of Local Government Units (LGUs)
- LGUs are responsible for local anti-poverty action agenda formulation, implementation, and monitoring.
- Must identify poor populations using metrics like minimum basic needs and human development index.
- LGUs coordinate with private sector and submit progress reports to NAPC.
- This role does not diminish powers granted under the Local Government Code.
Microfinance Services
- Integration and enhancement of microfinance as part of SRA flagship credit program.
- Emphasis on creating a supportive policy environment for savings and credit.
- Rationalization of government credit programs and utilizing government financial institutions to support microfinance.
- PCFC acts as the lead government entity for mobilizing microfinance resources.
Capitalization and Privitization of PCFC
- PCFC’s authorized capital increased from P100 million to P2 billion.
- Paid-up capital to increase to P600 million over four years sourced from PAGCOR earnings.
- In the event of privatization, PCFC to continue its mandate and remain part of the NAPC as appropriate.
Special Credit Windows
- Government financial institutions mandated to create special credit windows for the poor.
- Private institutions encouraged to set up credit windows supporting savings and credit needs.
- Allocation focus includes basic sectors, rural areas, agrarian reform communities, and women.
Appropriations
- Initial operating fund for NAPC of P100 million from the President’s Contingent Fund.
- PDTF funded with P4.5 billion over ten years from PAGCOR earnings.
- Additional P500 million appropriated for PCFC capitalization over four years.
Transitory and Administrative Provisions
- SRC exercises NAPC powers temporarily until official appointments.
- Implementation rules to be formulated within six months.
- Transfer of assets, liabilities, and personnel from abolished commissions to NAPC.
- Separation pay for personnel not absorbed.
Repealing, Separability, and Effectivity
- Repeals inconsistent laws and regulations.
- Invalid provisions do not affect the remainder of the law.
- Law effective June 30, 1998.