14. Judicial power is vested in the Supreme Court and lower courts. The decisions of the Supreme Court are binding on all lower tribunals. The other courts per cent while real GDP grew by an average of 4.52 per cent, which was within the target set during the same period. The services sector has been the under the Supreme Court are: the Court of Appeals, engine composed rate of 5.62 per cent over the said period. The expansion could be attributed to the expansion of the telecommunication sector and the new investments in call centers, business process outsourcing and software development. Meanwhile, the trade sector also performed well due to strong consumer spending which was supported by the steady growth of the agriculture sector and remittances of overseas Filipino workers. of 51 Justices with one Presiding Justice; Regional Trial Courts; the Municipal Circuit Trial Courts; and the Municipal Trial Courts established in every city not forming part of the metropolitan area. 15. The democratic structure and processes are further enhanced by the constitutional provisions on social justice and human rights, protection of labor, women and children and the strengthening of local autonomy The Local of the local government units (LGUs). Government Code of 1991 devolves the responsibility and budget for the delivery of basic services in agriculture, health, social welfare and development, public works, environment and natural resources to the LGUs. 16. At sub-national levels, governance is assumed by the local LGUs in each administrative area, i.e. province, city, municipality and barangay. Each local government office is composed of both elective and appointive officials. The elective officials include the head and vice-head in each administrative area, i.e. governor and vice-governor for the province, mayor and vice-mayor for the city and municipality, and chairman for the barangay; and as members of the councils, i.e. Sangguniang Panlalawigan (Provincial Council), Sangguniang Panlunsod (City Council) and Sangguniang Barangay (Village Council). 17. Legislative power at the sub-national levels is vested in the Sanggunian (Council) at each level. Each local government unit has a development council which assists the Sanggunian (Council) in formulating their respective comprehensive and multi-sectoral development plans. C. Social and economic 18. The annual conditions per capita Gross Domestic (GDP) was estimated at US$ 1,026 nominal prices and exchange rate. Product using 2004 of growth which expanded at an average 21. The agriculture sector grew at an average of 4.05 per cent over the period 2001-2004. 22. The industry sector experienced sluggish growth at a mere 3.4 per cent in 2001-2004. Growth has been limited by the large cuts in public construction to contro! the deficit as well as the difficulties of some manufacturing industries to keep up with global market. Moreover, the increase in foreign investments was minimal, from US$ 1.43 billion in 2002 to US$ 1.49 billion in 2003. The low foreign direct investments resulted from investor preference for China, weakening investor confidence due to concerns about fiscal sustainability, peace and order problems, and a weak infrastructure/ logistics system. 23. Unemployment remained high at 10.9 per cent in October 2004 notwithstanding the 3.2 million jobs aenerated from 2001 to 2004. From January to July 2004, the average unemployment rate was 12 per cent as the number of jobs generated had not been adequate to absorb the influx of labor entrants. 24. Underemployment was a more serious problem since its magnitude was higher than that of the unemployment rate, Underemployment rate was 16.9 per cent in October 2004 of which 61 per cent was in the rural areas (NSCB, 2004). The seasonal nature of farm employment prompted workers to want more labor hours. 19. The Philippine economy grew despite adverse effects of international shockers. These included the 11 September 2001 bombing in New York, the Severe 25. The fiscal deficit emerged as the major macroeconomic problem. The consolidated public sector deficit is 5.52 per cent of GDP while the Acute United Government deficit surged to 3.8 per cent of GDP in 2004, Consequently, the rising deficit pushed the Filipino public sector debt to 101 per cent of GDP by 2003. slowed Respiratory down States-Iraq Syndrome the tourism war, which (SARS) industry, dislocated scare, and the overseas which workers in the Middle East. 20. The country’s real Gross National Product (GNP) from 2001 to 2004 expanded at an average of 5.05 64 carp ECONOMIC, SOCIAL AND CULTURAL RIGHTS HANDBOOK 26. The Government provides social services in the areas of health, nutrition, education, housing, safe water supply and sanitation. Basic services for

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