GRIPS Development Forum Seminar
Political Governance, Economic Policy Reforms, and Aid Effectiveness:
The Case of the Philippines with Lessons from the Ramos Administration
June 7, 2007
Prof. Dante B. Canlas (University of the Philippines, School of Economics) gave a comprehensive
presentation on various reforms undertaken by President Ramos (1992-98) in response to various
challenges he faced from the outset of his administration.

President Ramos succeeded the Corazon

Aquino administration, which had restored democracy in 1986 through the People Power Revolution, but
was initially confronted with such challenges as political instability, internal and external insecurity, andjudicial activism in economic policy making. The Ramos administration successfully realized politicaland economic stability which is necessary for growth and development, and deepened economic and socialreforms.

Prof. Canlas pointed out that President Ramos’ initiatives – coalition building in Congress, peace

talk with rebels, judicial reforms, creation of LEDAC (Legislative-Executive Development Advisory
Council) and convening Multi-sectoral People’s Summit – all contributed to enhance political governance.
Furthermore, Ramos administration’s efforts in overcoming serious power shortage, realizing
macroeconomic stability, industrial restructuring and social reform all served for robust economic recovery.
In an effort to enhance aid effectiveness, President Ramos introduced a number of initiatives including thesetting up of a Presidential Task Force on Right-of-Way Acquisition.

Lastly, Prof. Canlas touched upon

the significant role of NEDA (National Economic and Development Authority) in facilitating inter-agency
coordination for decision making in important policy agenda.
Prof. Masumi Shimamura (GRIPS Development Forum) gave a comment that the fact President Ramos
actually produced a number of tangible achievements suggests that (1) “quality of leadership”, (2)“alliances between leadership and technocrats”, and (3) “broad political coalition between executive branch
and legislative branch, based on common vision to achieve economic development” became significant
factors for the administration’s outcomes.

She opened up free discussions by raising a question, “what isthe secret behind President Ramos’ leadership?”In response to the above question, Prof. Canlas explained that President Ramos’ professional background –the combination of engineer and military service, trained in West Point (US Military Academy) – seem tohave an impact on his way of thinking and working style. Prof. Canlas described that President Ramos
was a democratic minded man, and was a good coordinator among different stakeholders in coming up with
important policy decisions.

“Complete staff work (CSW)” was one of his working principles.

Hedelegated authority to NEDA for inter-agency coordination in the course of making policy decisions.

Prof.

Canlas pointed out that President Ramos was a disciplinary man, and required results on the ground.
President Ramos would give instructions to relevant agencies to coordinate and come up with policy
options with a specific deadline indicating, “Not later than (NLT) – ”. Prof. Canlas made an observationthat President Ramos’ adoption of consensus-building approach enabled him to win political support fromdifferent stakeholders, and facilitated his development-oriented visions to realize.

In free discussions, participants raised various questions (not necessarily issues during Ramosadministration) to deepen their understanding of “real” context of the Philippines through the eyes of Prof.
Canlas. Prof. Canlas replied to each question based on his personal observations. Questions raised were:the extent to which the government has been able to maintain policy coherence as well as agency stability(including staff changes) with changes in political leadership; government’s efforts in tackling withanti-corruption initiatives; strengths and weaknesses of NEDA in managing the development process; theeffect of China’s recent appearance as an emerging donor; observation of current administration in terms ofpolitical governance, economic policy reform, and aid effectiveness; assessment of the power sector reform
and its consequences; assessment of the agriculture and land reform under the Ramos administration incomparison with that of the Aquino administration.
After active discussions, the seminar was adjourned on time.