This publication documents the current assessment and strategic investment priorities of the Government of the Philippines and the Asian Development Bank (ADB) in the country's urban sector. It highlights sector performance, priority development constraints, government plans and strategies, past ADB support and experience, support of other development partners, and future ADB support strategy. The road map covers four main support areas: (i) preparation of a loan for the Philippine Solid Waste Management Sector Project in 2012 or 2013; (ii) future technical assistance (TA) and lending activities---to be discussed with the government---that may include a sector project for markets and transport terminals, which could further include land and sea transport facilities; (iii) projects of the Urban Development and Water Division of ADB's Southeast Asia Department, which may support flood control and the efforts of communities to mitigate the effects of climate change; and further (iv) stand-alone policy and advisory TA or capacity development TA, to promote performance-oriented governance and overall strengthening of urban sector agencies, depending on requests from the government.

Against the backdrop of the global financial crisis and rising food, fuel, and commodity prices, addressing poverty and inequality in the Philippines remains a challenge. The proportion of households living below the official poverty line has declined slowly and unevenly in the past four decades, and poverty reduction has been much slower than in neighboring countries such as the People's Republic of China, Indonesia, Thailand, and Viet Nam. Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts. This publication analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. it also provides an overview of current government responses, strategies, and achievements in the fight against poverty and identifies and prioritizes future needs and interventions. The analysis is based on current literature and the latest available data, including the 2006 Family Income and Expenditure Survey.