MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Circular No. 33, November 28, 2002 ]

INSTITUTIONALIZING THE KAPIT BISIG LABAN SA KAHIRAPAN (KALAHI) AS THE GOVERNMENTS PROGRAM FOR POVERTY REDUCTION

WHEREAS, President Gloria Macapagal-Arroyo declared an all out war against poverty in her inaugural speech;

WHEREAS, winning the war against poverty entails an energized bureaucracy, and an empowered and highly participative civil society and business sector working together adhering to continuous consensus-building processes;

WHEREAS, the Medium Term Philippine Development Plan (MTPDP) 2001-2004 espouses poverty reduction as its overarching theme spelled out in the following major sections: (a) Macroeconomic Stability and Equitable Growth; (b) Agricultural Modernization with Social Equity; (c) Comprehensive Human Development and Protecting the Vulnerable; and (d) Good and Effective Governance;

WHEREAS, the Kapit-Bisig Laban sa Kahirapan or KALAHI, has been adopted as the embodiment of the government’s poverty reduction initiatives.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines and Chairperson of the National Anti-Poverty Commission, by virtue of the powers vested in me by law, do hereby order the institutionalization of the KALAHI in government systems and processes.

Section 1. POLICY STATEMENT. The Kapit-Bisig Laban sa Kahirapan (KALAHI) shall be the administration’s overarching program for a focused, accelerated, convergent, and expanded, and strategic effort to reduce poverty. All government poverty reduction programs and projects shall anchor on KALAHI. The government, through KALAHI, shall solicit active participation of basic sector organizations, other civil society organizations, and business sector in its poverty reduction programs or activities.

Section 2. Goals. The poverty reduction program of the government shall pursue the following goals: (a) reduced poverty, (b) improved governance, and (c) empowered communities.

SEC 3. Strategies. The KALAHI shall be operationalized based on the following poverty reduction strategies: (a) accelerated asset reform, (b) improved access to human development services, (c) provision of employment and livelihood opportunities, (d) security from violence and social protection including safety nets for vulnerable sectors, and (e) institutionalized and strengthened participation of the basic sectors in governance. Environmental protection shall be a cross-cutting concern in all these strategies.1âшphi1

Section 4. Convergence Policy. It is the policy of the government to enjoin the active involvement of all sectors of society in the operationalization of KALAHI. Multi-stakeholder and inter-agency convergence shall be observed and institutionalized in all poverty reduction activities. All government agencies shall therefore institutionalize KALAHI in their respective systems and processes and participate actively in the implementation of KALAHI in the national and sub-national levels.

Section 5. Convergence Mechanism. The National Anti-Poverty Commission (NAPC), by virtue of the Republic Act 8425 (Social Reform and Poverty Alleviation Act of 1997), shall serve as the coordinating and oversight body in the operationalization of the government’s poverty reduction initiatives. It shall provide enabling policies to ensure efficient and successful implementation of the KALAHI.

To facilitate proper targeting of KALAHI sites, and planning, coordination and monitoring of poverty reduction programs, projects and resources, adhering to the principle of open and inclusive membership, NAPC shall facilitate the establishment of the following convergence groups:

a) The National KALAHI Convergence Group (NKCG), composed of heads and/or focal persons of the following initial list of national government agencies: Department of Social Welfare and Development Department of Health, Department of Education, Commission on Higher Education, Department of Agriculture, Department of Agrarian Reform, Department of Environment and Natural Resources, Department of Justice, Department of Interior and Local Government, Department of National Defense, Department of Public Works and Highways, Department of Budget and Management, Department of Trade and Industry, Department of Labor and Employment, Department of Science and Technology, Department of Energy, National Economic and Development Authority, Technology and Livelihood Resource Center, People’s Credit and Finance Corporation, Presidential Commission for the Urban Poor, National Housing Authority, National Youth Commission, National Food Authority, National Irrigation Administration, National Statistical Coordination Board, National Statistics Office, Philippine Charity Sweeptstakes Office, Philippine information Agency, Armed Forces of the Philippines, Philippine National Police, Population Commission, Cooperative Development Authority, Quedan Credit Corporation, Office of the Presidential Adviser on the Peace process, and other national government agencies that may be identified hereafter, national chapters of League of Provinces, League of Cities, League of Municipalities, and Liga ng mga Barangay, and the NAPC Basic Sector Representatives.

The NAPC Lead Convenor shall serve as Chair of the NKCG with the NAPC Secretariat as its Secretariat.

For purposes of a more focused and coordinated planning and programming, the convergence group shall be divided into four (4) clusters, namely: asset reform, human development services and social protection, livelihood and employment, and institutionalizing and capacity-building. Membership in the clusters shall be based on the relevance of organizational mandates; thus, any government agency or body, or civil society representative, may become a member of any cluster and may opt to join more than one cluster.

b) The Regional KALAHI Convergence Groups (RKCG), composed of heads and/or focal persons of the regional counterparts of the NKCG agencies, the Cabinet Officer for Regional Development (CORD) and/or his/her representative, the Presidential Assistant for Regional Development (PARD) or the Regional Development Officer (RDO) and/or his/her representative, NAPC Sectoral Council members in the region, regional chapters of local government leagues, Local Poverty Reduction Program Action Officer (LPRAO) of each province and highly urbanized city in the region, and other government agencies, organizations or sectors that the RKCG may invite as members.

i) A RKCG shall be set up within the existing structure of the Regional Development Council (RDC) for all regions except the National Capital Region (NCR) and the Autonomous Region of Muslim Mindanao (ARMM).

ii) The Chair of the RKCG shall be the Presidential Assistant for Regional Development (PARD) or the Regional Development Officer (RDO), as the case may be, while the Vice-Chair, who shall perform the functions of the Chair in the former’s absence, shall be elected from among its members.

iii) The NEDA Regional Office (NRO) shall serve as the secretariat of the RKCG. The RKCG may call upon concerned government agencies, organizations, sectors, or entities such as the Local Poverty Reduction Program Officers (LPRAOs), whenever necessary.

iv) The CORD shall facilitate resolution of RKCG matters that need Cabinet action.

v) The government of the ARMM shall constitute its own convergence group and secretariat. It may however call on the assistance of the NAPC on this matter. The ARMM Governor shall be the ARMM KALAHI Convergence Chair.

vi) The NAPC shall facilitate the establishment of a RKCG in the NCR whose chair shall be the NAPC Lead Convenor. The NAPC Secretariat shall serve as the NCR-RKCG’s Secretariat.

vii) The RKCG shall recognize and work with KALAHI focal persons or teams that LGUs may establish at their respective levels.

viii) The RKCG shall collaborate closely with the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) to maintain the strong link between anti-poverty and internal security efforts of the government.

Section 6. Institutionalization and Capacity-Building. The NAPC shall coordinate the planning, monitoring and evaluation, and assessment and integration of tools and mechanisms that will be used under the KALAHI program. It shall exercise oversight functions over any government agency’s capacity-building programs or projects for poverty reduction.

Section 7. Funding Resources. To effectively implement KALAHI in all targeted areas and communities, funding shall be sourced from: (a) allocation from program funds of national government agencies; (b) allocation from funds of local government units, including but not limited to, the 20% development fund, gender and development fund, etc.; (c) special funds from government financial institutions and government owned and controlled corporations such as the Philippine Amusement and Gaming Corporation (PAGCOR), Philippine Charity Sweepstakes Office (PCSO), and Land Bank of the Philippines (LBP); (d) President’s Social Fund (PSF); (e) People’s Development Trust Fund (PDTF); (f) congressional allocation; (g) donor institutions, both foreign and local, and (h) other innovative funding sources.

All government agencies concerned shall ensure a KALAHI budget item in their respective budget starting Fiscal year 2004. The Department of Budget and Management (DBM), in coordination with the NAPC, shall issue guidelines and orient all agencies concerned on the KALAHI budget.

Section 8. Implementing Guidelines. The implementing guidelines of this Memorandum Circular shall be prepared by the NAPC Secretariat, within 60 days upon signing, and shall undergo consultation process with the different stakeholders.

Section 9. Repealing Clause. All orders, issuances, rules and regulations, which are considered inconsistent with this Memorandum Circular are hereby repealed and modified accordingly.

Section 10. Separability Clause. Any provision hereof that may be declared in violation of existing laws shall in no way nullify the other provisions of this Memorandum Circular.

Section 11. Effectivity. This Memorandum Circular shall take effect immediately.

Done in the City of Manila, this 28th day of November, in the year of Our Lord, two thousand and two.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary


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