2002年-世界发展银行全球_Philippines_-_Development_Policy_Review___An_Opportunity_for_Renewed_Poverty_Reduction_71页_4mb

Philippines Development Policy Review Summary

Core Content

This report, titled Philippines Development Policy Review: An Opportunity for Renewed Poverty Reduction, was published on February 22, 2002, by the World Bank. It evaluates the country's development achievements and challenges, focusing on economic performance, poverty reduction, and policy reforms needed to achieve sustained growth and equitable development.

Main Points

1. Development Achievements: Success and Disappointment

• Economic Growth: From 1994 to 1997, the Philippines experienced an average GDP growth of 5% and a significant decline in poverty (from 32% to 25%). However, from 1998 to 2001, growth slowed to 2.5% and poverty reduction stagnated.
• Investment: Investment fell to 17-18% of GNP, down from 23% in the mid-1990s, raising concerns about future growth potential.
• Exports: Export growth declined sharply in 2001, with a 16% drop in export earnings, attributed to global economic slowdown and the electronics sector's downturn.
• Poverty Incidence: Despite modest economic growth, poverty remained at around 25% of the population, with no significant reduction since 1997.

2. Policy and Institutional Actions for Development

The report outlines five key areas for policy and institutional reform:

A. Strengthen Fiscal Management

• Increase the tax-to-GNP ratio by at least 3 percentage points by 2005.
• Implement a new Procurement Law to support public expenditure reforms.
• Contain contingent liabilities and ensure the sustainability of public pension funds.

B. Improve Governance and Public Sector Performance

• Re-engineer the civil service to improve decentralization and service delivery.
• Implement further anti-corruption actions, including enhancing audit performance and reforming the Bureau of Internal Revenue.
• Execute the Action Program for Judicial Reform to improve the rule of law and personal security.

C. Strengthen Private Sector Development

• Enhance corporate governance and property rights.
• Reform insolvency laws and strengthen creditor rights.
• Expand private-public sector partnerships, especially in urban infrastructure.
• Improve rural development through land reform, microfinance, and agricultural extension.
• Introduce trade and regulatory reforms to boost competition, particularly in agriculture and services.

D. Strengthen and Deepen the Financial Sector

• Facilitate the resolution and sale of non-performing loans.
• Strengthen consolidated supervision and protect bank supervisors from litigation.
• Improve financial sector transparency and governance.
• Implement effective anti-money laundering provisions.

E. Empower and Protect the Poor

• Improve the quality of basic education and reduce the school dropout rate.
• Ensure adequate funding for priority health programs, including reproductive health initiatives.
• Strengthen decentralized capacity to deliver better health services to the poor.
• Expand effective social protection programs.

3. Prospects for Development

• Economic Outlook: With global recovery expected from mid-2002, the Philippines' external environment is improving, which could support further reforms.
• Poverty Reduction: Sustained growth of over 5% per year could significantly reduce poverty, potentially bringing it down from 26% in 2000 to 18% by 2005.
• Key Risks: Implementation slippage, unresolved governance issues, and exogenous shocks (e.g., El Niño, global downturns) could hinder progress.
• Donor Support: Continued support from international partners is essential, especially for sustaining public expenditures and implementing reforms.

Key Recommendations

• Phased Reforms: The government should design a phased program of reforms to build momentum for achieving MTPDP targets.
• Fiscal Reforms: Focus on tax policy and public sector reforms to increase revenues and improve expenditure management.
• Governance Reforms: Prioritize civil service and judicial reforms to enhance public service delivery and the rule of law.
• Private Sector Development: Enhance corporate governance, property rights, and infrastructure through private-public partnerships.
• Financial Sector Deepening: Improve banking sector stability and capital market development.
• Social Inclusion: Invest in education, health, and social protection to ensure the poor benefit from growth.

Conclusion

The report emphasizes that achieving the MTPDP goals requires coordinated efforts across multiple sectors and institutions. While the Philippines has made some progress, the lack of substantial poverty reduction and weak investment growth highlight the need for stronger policy implementation and institutional reforms. Continued donor support and a stable domestic environment are critical to realizing the potential for renewed poverty reduction.