Memorandum Circular (MC) No. 33 dated 28 November 2002 ordered the institutionalization of the Kapit-Bisig Laban sa Kahirapan (KALAHI) in government systems and processes. KALAHI is the administration's overarching program for a focused, accelerated, convergent, expanded and strategic effort to reduce poverty.

The general principles and governing strategies of KALAHI implementation are translated and constructed into the following four components: convergent service delivery, capacity building, policy advocacy and policy reform, and social marketing.

KALAHI adopts a common convergence strategy from the national down to the local level. This convergence mechanism will ensure the coordination and integration of all anti-poverty efforts towards the national poverty reduction target. As the government's coordinating and oversight body in the operationalization of the government's poverty reduction initiatives, the National Anti-Poverty Commission (NAPC) created through Republic Act No. 8425, established the following convergence groups: National KALAHI Convergence Group (NKCG) and the Regional KALAHI Convergence Groups (RKCG) to facilitate proper targeting of KALAHI sites, and to plan, coordinate and monitor poverty reduction programs, projects and resources.