Template-Type: ReDIF-Article 1.0 Author-Name: Hall Hill Author-Workplace-Name: Australian National University Title: Southeast Asia in the global economy: a selective analytical survey Abstract: This paper selectively surveys Southeast Asian economic development over the past half-century and anticipates some of the region’s challenges if it is to progress to the ranks of developed countries. In the long sweep of development, three key features stand out. First, the region’s “initial conditions” in the early post-independence period appeared to be quite unfavorable. The literature at this time reflected the resulting pessimism. But, second, several countries belong to the very small group to have achieved historically unprecedented growth since the 1960s. The drivers of rapid growth remain contested. But the common feature has been a strong commitment to reasonably broad-based economic growth. Moreover, third, the propensity for growth in the region has spread as countries have progressively joined the regional and global mainstream. Policy regimes that favored outward orientation and prudent macroeconomic management have generally resulted in faster growth. The accurate forecasting of crises and growth decelerations has proven to be elusive, reinforcing the view that an eclectic, historical, and multi-disciplinary framework is necessary to understand the region’s long-term development dynamics. Classification-JEL: N15, O53, P52 Keywords: Southeast Asia, Association of Southeast Asian Nations, economic growth, global economy Journal: Philippine Review of Economics Pages: 1-36 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/953/852 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:1-36 Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey G. Williamson Author-Workplace-Name: University of Wisconsin-Madison and UP School of Economics Title: Philippine inequality across the twentieth century: slim evidence, but fat questions Abstract: In spite of persistent debates about income inequality and pro-poor policy in the Philippines, its history over the past century has been ignored, at least by economists. This is surprising given that the Philippines already had its first census in 1903, long before its neighbors, augmented by other relevant evidence embedded in official documents generated by the American insular government. It is also surprising given that we know that income distributions change only very slowly and must be examined over the long run to identify its drivers. This essay reviews the thin historical evidence and proposes explanations. There is no Kuznets Curve, and no Marxian, Pikettian, or other grand endogenous inequality theory at work, but there are dramatic episodes of change. It appears that there was an inequality rise up to World War 1, a fall between the world wars, a rise to high levels by the 1950s, and an almost certain rise up to the end of the century which, due to mismeasurement, looks instead like stasis. We need to collect better evidence to confirm these narratives and to assess competing hypotheses. Classification-JEL: D30, N15, N35, O15, O53 Keywords: inequality, the Philippines, twentieth century Journal: Philippine Review of Economics Pages: 37-60 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/954/851 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:37-60 Template-Type: ReDIF-Article 1.0 Author-Name: Dante B. Canlas Author-Workplace-Name: University of the Philippines School of Economics Title: Philippine policy reforms and infrastructure development: a historical account Abstract: Following the restoration of democratic political institutions in 1986, the Philippine government, under a succession of political administrations, has pursued a structural policy reform program on several fronts, both economic and non-economic. This paper assesses some policy reforms in the government’s infrastructure development program and the institutional arrangements aimed at implementing such reforms. Some progress has been achieved under the leadership of the National Economic and Development Authority and oversight of the various inter-agency NEDA Board committees, such as the infrastructure, investment coordination, and development budget coordination committees. The enactment of the Build-Operate-Transfer Law, for instance, has broadened and deepened the participation of the private sector in the infrastructure program. At this juncture, however, closing the infrastructure gap, particularly in transport, continues to be a formidable challenge. Major improvements, among other concerns, in procurement and implementation capacities of implementing government agencies, fair allocation of public-private risk bearing in contracts, and elimination of corruption in the approval process at all levels of government, national and local, are indicated. Classification-JEL: O18, H54 Keywords: policy reforms, infrastructure development, Philippine history Journal: Philippine Review of Economics Pages: 61-87 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/955/850 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:61-87 Template-Type: ReDIF-Article 1.0 Author-Name: Benjamin E. Diokno Author-Workplace-Name: Department of Budget and Management Title: The fiscal program in recent Philippine history: looking back and looking forward Abstract: For almost four decades, the Philippines has underinvested in publicinfrastructure largely due to its severe macroeconomic challenges: low economic growth, high public debt, low revenues, and high interest rates. But the macroeconomic picture has significantly improved in recent years. Growth has accelerated amidst a low-inflation, low-interest rate environment. The debt-to-GDP ratio has gone down and continues to fall, while the revenue effort is projected to rise with the tax reform program. The favorable economic conditions have enabled the government to embark on an aggressive medium-term fiscal program that focuses on modernizing public infrastructure and investing in human capital development. These developments are reflected in the 2017 national budget. Debt service as a share of the national budget has gradually declined from 20 percent in 1983-1985 and 30 percent in 1986-1996 to as low as 11 percent in 2017. By contrast, the share of social services has doubled from 21 percent in 1983-1985 to 40 percent in the 2017 while infrastructure and other capital outlays has more that quintupled from 1.1 percent in 1983- 1985 to 6.1 percent in 2017. The higher spending will be made possible by increasing the planned deficit from 2 percent to 3 percent of GDP combined with the higher revenue effort owing to the tax reform program. Classification-JEL: H54, H52, H62, H20, H68 Keywords: fiscal policy, national budget, infrastructure spending, social services, public debt Journal: Philippine Review of Economics Pages: 88-99 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/956/849 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:88-99 Template-Type: ReDIF-Article 1.0 Author-Name: Vicente B. Paqueo Author-Workplace-Name: Philippine Institute for Development Studies Author-Name: Aniceto C. Orbeta Author-Workplace-Name: Philippine Institute for Development Studies Title: Amado Castro and gender equity in education Abstract: Amado Castro very early on noticed an emerging gender equity issue in education: males doing worse than females. He made this observation before this showed up in national statistics. He also provided insights into why this trend is happening and what its implications are. More recent research has validated this observation. This paper argues for the need to fine-tune the gender equality advocacy in education in the case of the Philippines. There is a need to probe deeper and beyond the global stereotypical recommendation of promoting the education of girls alone. Failure to pursue win-win strategies to address gender bias in education working against boys could mean the country foregoing valuable opportunities to raise equity and economic returns to its investment in education. Classification-JEL: J16, I24 Keywords: gender equity, education, Philippines Journal: Philippine Review of Economics Pages: 100-109 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/957/848 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:100-109 Template-Type: ReDIF-Article 1.0 Author-Name: Edita A. Tan Author-Workplace-Name: University of the Philippines School of Economics Title: Quality, inequality and recent education reform Abstract: This paper presents the structure of the country’s educational system in terms of its composition, financing, quality, and distribution. It provides a perspective on why the most recent education initiatives in the Philippines are misdirected. The present quality of education offered by the large majority of schools, both public and private, is shown to be poor by any standard. Of particular concern is the small number of universities that offer science and technology programs especially at the graduate level. Adding years of schooling and expanding the curriculum in basic education, the K-12 program, only further diverts resources from addressing the more fundamental quality issues plaguing the system. In higher education, affording universal free tuition in state universities and colleges fails to address the real reasons for low college attendance among the poor. Such a move similarly draws resources and policy focus away from the more urgent need to promote higher education in science and technology. The paper instead suggests strategies for raising the quality of education and developing science and technology programs. Classification-JEL: I21, I22, I23, I24 Keywords: education quality, access to education, education finance, tuition fees, additional years of schooling, higher education Journal: Philippine Review of Economics Pages: 110-137 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/958/847 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:110-137 Template-Type: ReDIF-Article 1.0 Author-Name: Niceto S. Poblador Author-Workplace-Name: University of the Philippines Title: Non-inclusive growth, the profit motive, and the case for inclusive business Abstract: One of the greatest anomalies of our time is the widening gap in income and wealth in most societies between the rich and privileged few, and the masses at the bottom of the social pyramid who are often mired in abject poverty. While the prevalence of poverty in the face of phenomenal growth stems largely from the state’s failure to perform its traditional functions in a manner that equalizes opportunities for all members of society, business also bears a major share of the blame for an economic system that has become increasingly non-inclusive. This article takes the position that business should take the initiative in making the modern economy more inclusive. To achieve this ideal, the traditional goal of profit maximization— or the maximization of shareholder wealth, in the case of publicly held companies—needs to be re-conceptualized in terms of creating value for all groups that contribute to the process of value creation, and not just the owners of the business. Not the least among these stakeholders in the firm are the poorest members of the community. The article concludes by urging the development and implementation of inclusive business models (IBMs), solutions that provide access to economic opportunities to low-income communities in a manner that will make businesses more viable and sustainable. A few examples of firms that have successfully adopted IBMs are discussed. Classification-JEL: A12, D21, L21, M14, P12 Keywords: inclusive capitalism, shareholder wealth maximization, inclusive business models Journal: Philippine Review of Economics Pages: 138-150 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/959/846 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:138-150 Template-Type: ReDIF-Article 1.0 Author-Name: Gerardo P. Sicat Author-Workplace-Name: University of the Philippines School of Economics Title: A memoir of the young UP School of Economics Abstract: The author recounts the intersection of his own career with the early years of development of the UP School of Economics. When that career in the School was interrupted by government service, his unique position in the national government enabled him to further participate in the development and growth of the School from the perspective of a major consumer of the supply of economists that the institution provides. Classification-JEL: A11, A20, B30 Keywords: economics education, University of the Philippines School of Economics heteroskedasticity, philology Journal: Philippine Review of Economics Pages: 151-177 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/960/845 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:151-157 Template-Type: ReDIF-Article 1.0 Author-Name: Benito Legarda Jr. Author-Workplace-Name: none Title: Remembering Amado Castro Abstract: none Classification-JEL: Z Keywords: none Journal: Philippine Review of Economics Pages: 178-180 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/965/844 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:178-180 Template-Type: ReDIF-Article 1.0 Author-Name: Cesar E.A. Virata Author-Workplace-Name: none Title: Amado Castro: economist, educator Abstract: none Classification-JEL: Z Keywords: none Journal: Philippine Review of Economics Pages: 181-184 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/961/843 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:181-184 Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey G. Williamson Author-Workplace-Name: none Title: The early years of the University of the Philippines School of Economics Abstract: none Classification-JEL: Z Keywords: none Journal: Philippine Review of Economics Pages: 185 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/962/842 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:185 Template-Type: ReDIF-Article 1.0 Author-Name: Bernardo M. Villegas Author-Workplace-Name: none Title: Remembering Amado Castro Abstract: none Classification-JEL: Z Keywords: none Journal: Philippine Review of Economics Pages: 186-190 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/963/841 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:186-190 Template-Type: ReDIF-Article 1.0 Author-Name: Zorayda Amelia C. Alonzo Author-Workplace-Name: none Title: A loving tribute to Dr. Amado A. Castro Abstract: none Classification-JEL: Z Keywords: none Journal: Philippine Review of Economics Pages: 191-194 Volume: 54 Issue: 2 Year: 2017 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/964/840 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:54:y:2017:i:2:p:191-194