| Panel: |
Panel Discussion 1: Growth, Development, and Institutions |
| Title: |
Paper 2: How the Philippines can Join the East Asian Renaissance: Policies for Equality and Credible Institutions |
| JEL Code(s): |
P0 |
| Abstract: |
The dynamic development of East Asia—now the world’s fastest growing region—opens unprecedented opportunities for the Philippines to overcome long-standing issues that have held back the country. Despite its relatively strong growth performance in recent years, aided by marked improvement in the fiscal policy stance, the Philippine economy continues to fall short of its potential. Infrastructure remains weak; the cost of doing business is relatively high. Industrial concentration and weak competition in certain sectors limit the country’s economic dynamism.
Deep-rooted inequalities in assets, social and economic opportunities, and access to government decision-making and public services undermine the emergence of effective public institutions that serve the common good. In reverse, weak public institutions are unable to effectively establish policies that serve all citizens and thus address inequality.
Policies that simultaneously promote equity and credible public institutions could break this vicious circle. These include: (a) deepening of tax administration reforms to increase transparency and equity of tax collection, (b) measures to increase the quality and efficiency of public spending and increase the credibility of anti-corruption efforts, (c) regulatory reforms to increase competition and improve the investment climate in essential sectors with high growth potential, and (d) development of more effective social protection and empowerment policies.
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| Discussants: |
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