Philippines pledges 'war on poverty'

The protesters feel the president has not done enough

Philippines President Gloria Arroyo has pledged jobs, housing, food and education to millions of poor Filipinos as she set out a three-year strategy to revive the economy.

She cannot ignore us now

Noli Estrella, protester

Speaking in her first state of the nation address since taking office in January, she vowed to tackle red tape and corruption and promised "free enterprise with a social conscience".

Thousands of anti-poverty protesters held demonstrations outside the House of Representatives as Ms Arroyo spoke.

Protests over poverty turned into riots outside the presidential palace on 1 May following the arrest of deposed former President Joseph Estrada on corruption charges.

'National dream'

Monday's protest was one of the biggest since Ms Arroyo took office.

"We don't expect her to do everything at once. But it's been six months now, and she has done nothing for the poor," said Millet Morante, secretary-general of the Movement for National Democracy.

Ms Arroyo pledges jobs and homes for the poor

And gay rights campaigner Noli Estrella said: "The reason she is president is that we supported her in the first place. She cannot ignore us now."

In her 70-minute speech to Congress, Ms Arroyo said she recognised people's anger.

"They personally delivered the message that, 100 years after they revolted to establish this nation, they had yet to partake of the national dream," she said.

She said poverty had risen to 40% of the 76 million population since the 1997 Asian financial crisis.

"Jobs, education, home ownership as well as food on every table. This, in common sense and plain talk, is the core of my vision," she told Congress.

She also promised to make the economy more efficient.

"We need every ounce of resource to wage this war on poverty. We cannot afford to lose anything to waste or graft and corruption."

Spending plans

The Philippine economy has been under strain from the slowdown in the United States and Japan - its main trading partners. Last week the peso fell to a six-month low of 54.3 to the dollar.

President Arroyo called for an end to "bickering"

The president said the government would spend 20 billion pesos ($376m) every year on farming, and another 20 billion pesos a year to build 150,000 homes.

Mrs Arroyo promised "a school building in every village by 2004" and more teachers.

She also called for a period of political unity.

"Let us set aside bickering and politicking for at least one year," she said. "Unity for the country's recovery will set the stage for national mobilisation needed to undertake the great and difficult tasks ahead."

The president also vowed to continue tough action against Abu Sayyaf rebels in the south of the country, blamed for high-profile kidnappings.

"I sometimes extend a hand covered by a velvet glove, inside it is an iron hand where justice and the rule of law are concerned," she said.