The plan's broad thrusts are massive infrastructure development, higher governance standards, human development and human capital formation, direct poverty-relief, and employment-generation.
But such initiatives cannot succeed if complementary and strategies do not support and enhance their impact.
These strategies can prosper only in a macroeconomic regime of low inflation and sustainable fiscal balances (Chapter 2). Inflation directly and immediately erodes the public's purchasing power and particularly affects the poor and fixed-income earners, thus putting poverty goals in peril. On the other hand, uncontrolled government debts and deficits endanger the goals of growth and employment by raising borrowing costs for public and private sectors alike, putting a brake on all forms of investment. Government shall, therefore, institute fiscal reforms to permanently place the revenue system on an even keel, primarily through comprehensive coverage of taxpayers and uniform coverage of commodities and activities, higher standards of performance and integrity among tax administrators, and prompt rate adjustments, as allowed by law, applied to tax and nontax revenue sources alike. Expenditures shall be kept within the bounds set by macroeconomic targets, among others, by cutting back on wasteful programs and deprioritizing unfunded mandates, exercising tighter internal controls, and continuing the rationalization of the size of government, including GFIs and GOCCs. Many of these reforms can become imperatives of fiscal behavior through the enactment of a fiscal responsibility law. Monetary policy, on the other hand, will continue to emphasize low and stable inflation, with the Bangko Sentral ready to use its tools to prevent the emergence of asset bubbles, whether domestic or foreign. In accord with the changing strength of the country's external position, foreign exchange regulations shall be adjusted to facilitate payments for trade and investment and, in line with the policies of other countries, to maintain the economy's competitiveness.
Ensuring ecological integrity and mitigating the effects of climate change is essential for success on several fronts. Natural disasters and calamities can nullify hard-won gains by damaging physical infrastructure, directly endangering human lives and health, and destroying livelihoods, particularly among the poor and vulnerable. The dismal state of the environment and natural resources is a major reason that rural communities, who depend on them as primary sources of livelihood, perennially find themselves at the bottom rung of the development ladder. The country's location makes it inherently vulnerable to potentially destructive natural events. This is aggravated by the pressure of a growing human population on environmental resources and habitable environments as well as the anticipated effects of global climate change. It shall be an urgent task (Chapter 10), therefore, to devise and adopt measures that will improve the state of environment and natural resources, enhance the resilience of natural systems, and improve the ability of communities to cope with environmental hazards, including climate-related risks. Priorities include the conservation, protection, and rehabilitation of the country's natural resources, urban renewal, measures to reduce waste and pollution, and heightened capacities for disaster-preparedness and response.
Although it is the Plan's main thrust to raise participation and standards in basic education, there is no denying the important role of higher education and science and technology in the country's effort to attract high-quality and high-productivity activities, such as the greater value-added parts of business-process outsourcing (BPO), tourism, and some branches of industry. Through a rationalization of the roles of higher-education institutions and a finer delineation of their roles (Chapter 8), the turnout of a critical mass of scientists, engineers, and other technical personnel shall be pursued to allow the country is to climb the value-added ladder in sectors where it possesses global competitive potential.
The end of armed conflict and the attainment of lasting peace is vital to breaking the vicious cycle of conflict and underdevelopment in affected areas that have otherwise huge potential for social and economic development. Towards this end, the government shall pursue different tracks to complete and implement negotiated settlements with various armed groups under a comprehensive peace process. At the same time resources shall be marshaled to raise the capacity of the armed forces and the police in dealing decisively with criminal groups (Chapter 9). Relations with foreign nations shall be actively cultivated to support sovereignty, regional peace and security, and economic cooperation based on equitable and mutual benefit. Paramount consideration shall be paid to ensure the welfare and protection of the millions of Filipinos working overseas.