In 2008, the Bicol Region managed to post significant accomplishments in the face of challenges on a local,
national and international scale.
In line with the objective of poverty reduction as laid down in the Updated Bicol Development Plan 2008-2010, the three
major strategies were carried out. These are delivery of basic social services, economic growth and infrastructure support.
Thus, improvements were noted in the immunization and health insurance coverage; percentage of households with access to
safe water and sanitary toilets; enrolment and cohort survival rates in elementary and secondary levels; housing and social welfare assistance.
Growth in the regional economy is expected to remain positive, although lower than the 2007 growth of 7.7
percent. Heavy rains and high fertilizer costs affected rice production and supply. This, coupled with the sudden increase in rice prices, triggered speculations of a rice
shortage.
Aside from rice, prices of oil, gasoline and other petroleum products escalated. This pushed the inflation rate to a
peak of 13.7 percent in July, before sliding to 8.1 percent at yearend. The strengthening of the peso against the dollar to as high as P40.67 in February hurt the Bicolano
exporters. The US economic slump in the last quarter of the year compounded their losses, resulting to closures and job layoffs.
The global financial crisis sparked apprehensions on the liquidity of local banks in the region, especially when
three rural banks were placed under the receivership of the Philippine Deposit Insurance Corporation (PDIC). The Bangko Sentral ng Pilipinas (BSP), however, asserted that the
country's banking system has remained unscathed by the global financial woes.
The completion of critical infrastructure projects, including the continued rehabilitation of typhoon-damaged infrastructure and public
utilities, provided the engine for economic growth and delivery of basic social services.
Programs, projects and activities on investment promotion, productivity improvement and knowledge transfer through
science and technology were also undertaken. In May, the Regional Investment Promotion Committee was created under the Regional Development Council to provide policy direction
and technical assistance on investment promotion, harmonization of investment incentives and resource generation. Likewise, knowledge transfer through science
and technology (S&T) services and research and development (R&D) activities were sustained during the year.
In line with promoting good governance, the year saw a total of 2,351 barangays out of the region's 3,471 (68%) with
functional Gabay sa Mamamayan Action Centers (GMACs) that provide basic information on government agency services. Moreover, a total of 101 LGUs out of the target 120 (84%)
have formulated their State of Local Governance reports under the Local Governance Performance Management System (LGPMS).
Peace and order in the region was maintained through the continuous improvement of the five pillars of the criminal
justice system, i.e., law enforcement, prosecution, corrections, community and courts. Threats to peace and order were lessened through counter terrorist actions,
intelligence operations and civil military operations.
Heavy rains during the first and fourth quarters of the year caused flashfloods and landslides in Albay, Sorsogon, Catanduanes
and Daet, Camarines Norte. This resulted to more conscious efforts on disaster risk management, such as the development of hazard maps, conduct of community-based
disaster risk assessment workshops, contingency planning, incorporation of disaster risk reduction modules in school subjects, and conduct of earthquake, tsunami and fire
drills.
The implementation of programs, projects and activities adhered to the principles of sustainable development and
gender and development. Protection and rehabilitation of forests, watersheds, coastal and marine resources, as well as air and quality monitoring were sustained throughout the
year. Likewise, gender and development initiatives continued to improve the situations of men and women in health, nutrition, education, labor and employment,
political and public life.
The programs, projects, and activities were implemented and monitored with the participation of the public and private
sectors and the civil society. A total of P3.95 billion capital outlay was appropriated to the different government entities, higher than the 2007 appropriation by P1.22
billion. Likewise, the local government units spent a total of P10.67 billion for various services, higher by P1.3 billion than the 2006 local government expenditures.
Annex A presents the status of the region's top ten priority programs and projects.
