The Philippine Economy: Development, Policies, and Challenges

The Philippine Economy: Development, Policies, and Challenges. Edited by Arsenio M. Balisacan and Hal Hill. New York: Oxford University Press, 2003. Pp. 466. As the editors recount, motivation for the book arose from the fact that it had been many years since the last broad academic analysis of Philippine economic development was produced. It was deemed the right time for a serious study of the Philippine economy, one that that looks backward and forward, be conducted again. At the time work for this book started, the only other similar exercise (but undoubtedly less ambitious review) being undertaken was that by a government thinktank which focused on the economic performance and policy developments during the Ramos regime, intended to provide an economic blueprint for the next administration. This volume covers all key aspects of the Philippine economy and development policy for the last two decades with some trends dating as far back as the 1970s. Achievements and failures are identified and future challenges are highlighted in each discussion. The contributors are either academics or policy researchers who are recognized authorities in their respective fields. Being experts, it comes as no surprise that these same individuals were involved at one time or another, directly or indirectly, in shaping the economic policy landscape of the country. Indeed, a few of them may actually be narrating the history of policy development based on their first-hand experience. In addition to the pool of local authors, the book also benefits from the contribution of academics from outside the country making the volume a truly comprehensive collection not only in terms of coverage but also in terms of perspectives. The book is organized into four main parts. The first part sets the scene by presenting the key issues, historical events and players that influenced Philippine development. In the introductory chapter, Arsenio M. Balisacan and Hall Hill provide an excellent overview of the volume by first laying out the facts of the country's economic record since the 1970s before drawing on the analyses from the different chapters to cull insights and lessons. They then end with their assessment of the significant accomplishments (for example, a monetary policy framework with clearer objectives and assignment of instruments, lower and "cleaner" levels of protection, civil society, etc.) and outstanding challenges that require earnest attention (for example, physical infrastructure and its regulation, corporate governance and the stock market, etc.). The political economy, which provides the context for understanding the country's economic performance, is discussed by Emmanual S. de Dios and Paul D. Hutchcroft. They chronicle how various interest groups helped to shape, at times defeat, economic reform initiatives and opportunities over the last half century. The second part looks at the macroeconomic and international dimensions. The evolution of monetary policy rules and exchange rate regimes are examined by Maria Socorro Gochoco-Bautista and Dante Canlas. They describe how the confluence of policies and external shocks affected macroeconomic stability. Gerry P. Sicat and Rahimaisa D. Abdula rationalize the government's fiscal management and performance, highlighting the chronic deficit, which is perhaps the most urgent of all problems facing the current administration. Romeo Bautista and Gwendolyn Tecson explain the trade and exchange rate policies adopted and why significant trade liberalization did not translate to high economic growth. …