Template-Type: ReDIF-Article 1.0 Author-Name: Raul V. Fabella Author-Workplace-Name: School of Economics, University of the Philippines Title: The peso appreciation and the sustainability of Philippine growth: need we worry? Abstract: The rapid appreciation of the Philippine peso and the resulting loss of competitiveness militate against long-term Òbalanced and sustainable growthÓ. A review of history shows that fighting inflation with appreciation of currency ÒseedsÓ a financial storm. In contrast, the undervaluation of the domestic currency has been shown to robustly improve economic growth in less developed countries like the Philippines. The government, however, need not embark on an aggressive depreciation of the peso but rather on keeping the exchange rate between Php 42 and Php 43 to a dollar for the next five years. This will likely raise further the foreign exchange reserves now at record levels. In order to achieve sustainable growth, the government has to craft an Òexit strategy Òfrom the remittance-driven economy by deploying the remitted OFW money to build first-class infrastructure. This can be done by selling infrastructure bonds to the Bangko Sentral ng Pilipinas, which create further demand for dollars and ease the pressure for appreciation coming from the continuing forex inflows. Classification-JEL: F31, O40, E30 Keywords: peso appreciation, sustainable growth Journal: Philippine Review of Economics Pages: 1-12 Volume: 48 Issue: 1 Year: 2011 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/658/764 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:48:y:2011:i:1:p:1-12 Template-Type: ReDIF-Article 1.0 Author-Name: Ernesto M. Pernia Author-Workplace-Name: School of Economics, University of the Philippines Title: Is labor export good development policy? Abstract: Labor migration began to be promoted in the late Õ60s or early Õ70s by a number of Asian countries plagued by problems of unemployment, poverty, and scant foreign exchange. However, labor export was generally intended to be a stopgap measure while governments were trying to implement policy reforms to whip their economies into shape. Indeed, labor migration as policy has largely faded in many of our Asian neighbors but remains a major development policy plank in our country. What has made the Philippines specially cut out to be a labor exporter? What are the benefits and costs of migration? Is the export of labor sustainable? Are we content being a labor exporter? Is there a need to rethink the countryÕs labor export policy? Classification-JEL: F22, F24, J08, J61 Keywords: migration, labor export, remittances, development policy Journal: Philippine Review of Economics Pages: 13-34 Volume: 48 Issue: 1 Year: 2011 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/659/765 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:48:y:2011:i:1:p:13-34 Template-Type: ReDIF-Article 1.0 Author-Name: Cayetano Paderanga, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Title: Learning from the global economic crisis Abstract: The world needs an international monetary system that promotes global price stability, facilitates world economic growth, and ensures global financial stability. Global crises provide rare opportunities in reforming the international monetary system. The ability to provide adequate liquidity, timely and adequate adjustment of imbalances, and reduced risk has proven to be elusive under the current system centered on the US dollar. The stability of the global economic system, in effect, hinges on the United States being the deficit country of last resort. There is a need for fundamental reforms in the current dollar-centric system. This paper presents proposals for reformation of the international monetary system. Classification-JEL: F36, F42 Keywords: international monetary system, global crises, reform of international monetary system Journal: Philippine Review of Economics Pages: 35-70 Volume: 48 Issue: 1 Year: 2011 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/660/766 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:48:y:2011:i:1:p:35-70 Template-Type: ReDIF-Article 1.0 Author-Name: Emmanuel S. de Dios Author-Workplace-Name: School of Economics, University of the Philippines Title: Institutional constraints on Philippine growth Abstract: After a review of the institutional economics literature, time- series evidence is presented to show that recent Philippine economic growth has been hindered by institutional weaknesses. In particular, variables representing political instability and corruption are seen to have significantly affected the investment ratio. A historical analysis traces the origins and persistence of these problems to deeper questions of constitutional legitimacy, unstructured rivalry among elites, and weak support for formal institutions owing to preexisting economic inequality. Classification-JEL: O17, N45 Keywords: growth, investment, institutions, corruption, political economy, Philippines Journal: Philippine Review of Economics Pages: 71-124 Volume: 48 Issue: 1 Year: 2011 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/661/767 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:48:y:2011:i:1:p:71-124 Template-Type: ReDIF-Article 1.0 Author-Name: Toby C. Monsod Author-Workplace-Name: School of Economics, University of the Philippines Title: Is government really solving the housing problem? Abstract: Informal housing arrangements, substandard structures, congestion, and land-use conflicts characterize the urban housing problem in the Philippines. The record suggests that the response of the state, especially its reliance on below- market-priced mortgage loans, has aggravated the situation. If the housing problem is to be solved, government needs to rethink its role in housing finance, delink housing social assistance from finance markets, and turn its attention to fundamental supply side and urban governance issues. Classification-JEL: R38, 018, H50 Keywords: housing, housing problem Journal: Philippine Review of Economics Pages: 125-146 Volume: 48 Issue: 1 Year: 2011 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/662/768 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:48:y:2011:i:1:p:125-146 Template-Type: ReDIF-Article 1.0 Author-Name: Edita A. Tan Author-Workplace-Name: School of Economics, University of the Philippines Title: WhatÕs wrong with the Philippine higher education? Abstract: Philippine higher education (HE) plays an important role in the countryÕs economy and is vital in achieving global competitiveness.Poor quality,undeveloped innovation system, and inequality of access caused the current dismal state of the HE system.This could be traceable to the populist education policy all past governments have adopted.Poor quality HE led to poor quality graduates, which lowered the productivity of the countryÕs labor force and inhibited technological progress. The Philippines then fell behind its East Asian neighbors in economic growth and social development. The paper recommends drastic reforms of the HE subsidy system from the ad hoc and politically based allocation toward a well-planned HE development program that addresses the above problems: quality improvement, development of an innovation system and an effective scholarship system. Classification-JEL: I22, I24, I28 Keywords: higher education, education, Philippines Journal: Philippine Review of Economics Pages: 147-184 Volume: 48 Issue: 1 Year: 2011 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/663/769 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:48:y:2011:i:1:p:147-184