° ' " iL. XI NO. i : January- February 1993 :: : ISSN 0115-9097• .. .. .. .. .. .. : . . • . ":. .

Attracting Foreign DirectInvestment to the Philippines

by Dr. Mario B oLamberte

In the last two years, the The FIA was accompanied by environment for foreign invest-Philippine government has the phased liberalization of the ments, they would be rendered in-initiated several bold measures to foreign exchange markets that effective if other determinants ofattract foreign investment to the began in the mid-1991. Towards foreign investments remain un-country. One of the most sig- the second half of 1992, foreign ex- favorable. This paper thereforenificant measures is the passage of change controls have been tries to examine the importantthe Foreign Investments Act (FIA) reduced to the barest minimum, determinants of foreign direct in-of 1991, which liberalizes the entry For instance, foreign investors are vestment (FDI) with the view ofof foreign investors. Specifically, now entitled to full and immediate suggesting policies that wouldrestrictions on the extent Offoreign capital repatriation/dividend/in- complement the liberalizationownership of export-oriented terest remittance privilege without measures to attract more foreignenterprises have been removed, prior Central Bank approval. Ex- investment to the country.Foreigners may own as much as porters may retain and use freely100 percent of the equity of all their export receipts. As a percent of GNP, the grossdomestic-oriented enterprises, un- FDI seems to be small. Except inless their equity participation is Trends In Foreign• Direct: 1973, 1976-1977 and 1987-1990, itprohibited or limited to a smaller Investment was less than 1 percent The

highest ratio occurred in 1988 atpercentage by existing laws or by Although the liberalization 2.8 percent.the provisions of the Act. measures have provided a better

Table 1 shows the gross inflow, outflow and net FDI duringthe period 1970-1990. The data are

Drained of resources, and Asian Institute of Tourism (A1T) taken from the balance-of- pay-compared to any other time period Hotel. Their participation in ments table which are based onin itshistory, thePhilippines needs Philippine development was dis_ the reports submitted by banks toinfusion of foreign investments cussed, the Central Bank. They thereforemore than ever in the uncertain1990s. Dr.MarioB. Lamberte,PIDS Three Pulong Saliksikan ses- reflect actual flows. In absoluteVice-President, discusses the fac- si0ns were held during the last two

tors that attract direct foreign months of 1992. Ms. Lorelei de _ ] /7 S i d o_oo i i!iiii:! i:i'protected commodities. Dr. Danilo %= : :PI_/ _$a:liksilian::_:::::::::Our unheralded partners in Israel gave insights oncatfish con- _i!:5:Sessi6_ _rN0_,_l)_i:i))_

Philippine progress, the various sumption in the US. American !::i:i@:_::December1992volunteer groups, were recognized lawyer Leonard Santos allayed _____________i___________________________);________________________________j_______i_________)________:.). ...::::"i:):.:..:.).:i).:..:.....:.:.:i.during the observance of Intema- • fearsof a "fortressNorth America,"tional Volunteer Day on De.tuber in view of the implementation of :.::_!_:):_::_:::::VOiu_te_rJfn_.:._":.:..:..).:::.:.'...:):i:i:.

2, 1992, when a conference on the North American .Free Trade _:•i•_••_!•••_:ch_g_:_•i:•:_••_•)••)••••••••_:)_•_•)):••_•_!••_••_)S•_••_•)_•)_:_:_•!!_i•i__'J:.._-------- -- -volunteerism was held at the Asteement(NAFTA).. ... .................... . .......... :.,.........,:.:..:._::::.,.,:=..;_

DEVELOPMENT RESEARCH NEWS January - February 1993

terms, the annual gross inflow of the two countries whose annual increase the profitability of thoseFDI had been erratic throughout net FDI had not yet exceeded US$1 investments. Thus, it is expectedthe indicated period and had billion in any year during the indi- that growth in GNP will have anever gone beyond Uf:_255 mil- cared period. Of the total net FDI positive effect on the flow oflion before 1987. However, FDI in the ASEAN region, the foreign direct investment.

rose significantly during -the Philippines' share was the lowest, Exchange rate is another fac-period 1987-1990, which can be averaging only 4.5 percent during tor that affects the flow of foreignmainly attributed to debt toequity the period under study. In con-conversions. -- trast, the averages for Indonesia, direct investments. A severelyovervalued domestic

Outflows of direct foreign in- Malaysia, Singapore and Thailand currencyvestment, which consist mainly of were 15.4 percent, 30.3 percent, reduces the incentives to forNgncapital withdrawn by foreigners 40.0 percent and 9.8 percent, investments. In the first place,from the economy, were sig- respectively. This seems to sug- foreign investors find it very costlygest that the other four ASEAN to come in at the time when thenificant in certain years, resulting countries are more attractive to domestic currency is overvalued

in a negative net FDI. Also, the foreign investors than the Philip- since they have fewer claims tomagnitude of the outflows seemed domestic currency for every unitto have increased in the 1980s rela- pines, of foreign currency they bring in.

tire to the 1970s. Were it not for Factors Affecting The Flow Of Second, if the exchange rate is sud-the inflows through .the conver- Foreign Direct Investment denly adjusted to the more realis-sion scheme in the last four years, tic level at the time when foreignthe magnitude of the net FDI in The flow of foreign direct investors are about to repatriatethe 1980s would have remained at investment into the country may their profits and/or capital, theythe level of the 1970s. be affected by macroeconomic en- will suddenly find themselves

vironment. A steadily growing with considerably reducedTable 2 compares the net FDI domestic economy will likely at- repatriated profits and/or capital.

of the Philippines with those of tract more foreign direct invest-other ASEAN countries during the ments. This is true especially for Prices of the factors of produc-period 1970-1989. The Philippines those foreign direct investments fion, especially labor, affect thewas the only ASEAN country that that go to domestic-oriented in- flow of foreign direct investments.experienced a negative net FDI for dustries because an expanding The more competitive the domes-more than one year. It is one of domestic market will likely tic wage rate, the more foreign in-

Tlbll 1. Foreign Oire_t Invl_tment_. 1970-1_90

(In million US dolors)

...........................................................................................................................

Item 1970 1971 1972 197"5 1974 1975 1976 1977 1978 1979............................................................................................................................

Inflow 7 _ 4 119 92 152 198_ 236 134 146New foreign investment 4 83 6/* 116 130 60 62Rei nves__L'=dearn_n_ 67 78 62 58Techni=at Fee_ _ o_her_

canvet'_ed into _oit 9 8 10[lan k in_er-branch op_l_iOn_ ,_- - _Debt taeuity ¢onwrsions .........O_her_ 3 2 2 36 28 ._6 27 2_ 4 16

Capital for inveBtr0entabroad _0capital withdrawn _ 4 13 29 60 18 25 12 20 85Others 27 _ 20 1 5 10 ] 5 I

Total Dir_t Inv¢_tr0entS,Nel -28 -(* -22 64 28 125 144 _16. 100 XO

.................................................................L.........................................................

It_ 1980 1981 1982 1983 1984 198_ _gB6 1987 19BB 1989 1990...........................................................................................................................

Inflow 119 248 194 255 137 124 186 _,39 1077 961 706New foreign investrP_0t 7£ 91 25 119 32 9 17 34 ' 81 9_ I'[IReinvested earnings ,_9 62 4/= 26 15 10 20 22 IT 56 28Technic_[ fe_ & others

converted into equity - 90 124 98 61 31 46 17 _ _B 2_Dank intcr-br_n_h aperzs_ions ..... 41 68 41 B 74 101Debt conversions = ..... - - 287 806 306 226

- Others 5 5 I 12 29 33 35 38 83 _94 _58

O_ftow 221 7_{ 17T 14_ 120 107 1,6 11_ 91 118 226

C_plt_[b4OedinVeS_raen_.... 86 47 01 _7 15 24 2 1 2 - 4

Capit=l withdra=n 104 24 116 116 102 37 35 58 7& 95 204Others 31 2 3 &6 9 54 15 2_ 18

Total DirectInves_n_, Be_ -I02 175 _7 112 17 17 I_*0 326 986 84_ 480

.........................................................................................................................

Source: Select_ Phil _ne Economic Indicators,Central 8_nk, Depar_men_ _f Economic Research-lnternat{onal

RESEARCH NEWS January - February 1993

Table 2. Net Foreipn Direct Investments in ASEAN NationB1990 to 1990.

(In mill£on US dollars)

INDONESXA MALAYSIA PHILIPPZNES* SINGAPOF_E THAILAND TOTAL

1970 83 94 (28) 93 43 2851971 I_9 i00 (4) 116 39 390

1972 207 114 (22) 191 69 5591973 15 172 64 389 79 719

1974 (49) 571 28 597 192 1,339

1975 476 349 125 611 87 1,6481976 344 381 " 144 186 81 i,_36

1997 235 406 216 _08 108 1,1711978 279 500 i00 187 6 1,072

1979 226 573 20 669 51 1,539

1980 183 934 (102) 1,138 187 2,340198_ 133 1,265 175 1,675 287 3,535

1982 225 1,397 17 1,298 187 3,1241983 292 1,261 112 I,OS5 348 3,098

1984 222 797 17 1,210 400 2,6461985 310 695 17 809 162 1,993

1986 258 489 140 1,533 261 2,681

1987 385 423 326 2,696 182 4,012198_ 576 719 986 2,710 1,082 6,073

1989 682 1,846 843 3,963 1,650 $,9841990 ...... 480 .........

Fipures taken from "Sel.ected Philippine Economic IndicaDorsYearbook_ "

So_Tces: Key Indicators of Developing Momber Countries of ADB EConomics

Office, Asian Development Bank_

International Financial Statistics.

attracted to the oriented sector is a penalty to ex- domestic currency while a valuewage legisla- port-oriented sector. At the same greater than 1 indicates an ap-

the competi- time, a highly protected economy preciation. The wage-productivitywage rate usually cannot expand its domes- differential was arrived at by corn-wages are tic market as rapidly as a more puting the ratio of the real mini-

the produc- open economy, thereby preventing mum wage rate for the Nationalwords, the the realization of scale economies. Capital Region (at 1978 prices) to

between the The fiscal incentive structure the labor productivity of the in-dustrial sector. The latter was ob-

and labor plays an important role in attract- tained by dividing the realforeign in- ing foreign investment. It couldattracted to the value-added of the industrial sec-partly offset the additional cost ofdoing business arising from the tor to the number of full-time

competitiveness of inadequate infrastructure and the equivalent workers in the samesector. The number of strikesindustrial restrictive traderegime, refers to the number of strikes

foreign invest-a country The hypotheses discussed newly declared for the indicated

experiencing above are tested by regressing the year as reported by the Depart-flow of foreign direct investment ment of Labor.not attract on the real GNP growth rate, the

even if the real effective exchange rate, wage- For infrastructure, the ratio ofcompetitive, productivity differential, number government expenditure on con-

quality of of strikes, government infrastruc- struction to GNP is used as acountryis ex- ture expenditure, trade regime, rough indicator of the quantity

of foreign and industrial incentive policy and quality of infrastructure in theof it raises using data for the period 1970- country. The Philippines started

business in the 1989. The dependent variable is its import liberalization programmaking all busi- the ratio of the net foreign direct in 1981. However, it was tem-

ventureslessprofitable, investment of the Philippines to porarily suspended during the

affects the the total net foreign direct invest- period 1983-1985 as part of thement of ASEAN countries. The effort to deal with the balance-of-

country to data on the real effective exchange payments crisis. A dummy vari-especially those rate index were taken from the able is used here: a value of 1 for

going into Central Bank. A value less than 1 the years 1981-1982and 1986-1990;

sector. Any indicates a depreciation of the 0if outside these years.domestic-

DEVELOPMENT RESEARCH NEWS Januar, - February 1993

There were three major in- Specifically, real GNP growth rate the results above. One is that thedustrial incentive policy regimes has a positive effect on the share of economy must achieve someduring the period 1970-1990. The the Philippines in the total net growth to attract foreign invest-Omnibus Investment Code of 1981 foreign direct investment in the ment. The stabilization measuresmerely codified the incentives ASEAN region. A decline in the adopted by the government in thegiven during the 1970s. The first real effective exchange rate index last two years (i.e., 1991-1992)major change, therefore, occurred (a real depreciation) increases the placed too much emphasis onin 1983 with the passage of the share of the Philippines in the total reducing inflation at the expenseInvestment Incentive Policy Act. FDI to ASEAN countries. On the of growth. It is not thereforeThis was changed again in 1987 other hand, the higher the ratio- of surprising that foreign directwith the issuance of Executive the real minimum wage rate to the investment has been sluggish inOrder No. 226, otherwise known labor productivity in the Philip- the last two years despite a moreas the Omnibus Investments Code. pines discourages foreign invest- liberal foreign investment law.

Two dummy variables are as- ment from coming to the country. Clearly, the government needssigned to the different incentive The same is true with the lack of to institute an appropriate ex-policy regimes. The first dummy industrial peace. That is, the change rate policy to attractvariable was assigned to the 1983 higher the number of labor strikes, foreign investment. An over-Investment Incentive Policy Act: a the lower would be the flow of valuation of thedomestic currencyvalue of 1 for the years 1983-1986; foreign investment into the Philip- discourages foreign investment.0 if outside this period. The second pines. Unfortunately, however, thedummy variable was assigned to The inclusion of infrastruc- domestic currency has been ap-the 1987 Omnibus Investment

Code: a value 1 for the years 1987- ture, trade regime and industrial preciating since 1991, which isincentive policy regimes in the caused by a combination of factors1990; 0 if not within 1987-1990.. equation did not improve the specifically the dampening effects

The best result is shown in result of the model. Also, these of the stabilization measures, the

Table 3. Real GNP growth rate, variables did not yield statistically substantial inflow of foreign remit-real effective exchange rate and significant coefficients. These tances, and the heavy inflow ofwage-productivity differential all results may be further investigated short-term, speculative capital tohave statistically significant coeffi- by using other indicators for the gain from interest arbitrage.

dents while the number of strikes variables mentioned above. A rational wage policy consis-has a coefficient that is marginallysignificant. The signs of the coeffi- Policy Implications tent with labor productivity isanother policy implication thatdents of the four variables There are several policy im- seems to emerge from the resultsconform to our hypotheses, plications that can be drawn from above. Wages that are set way

above the productivity of laborTaJ_,le _. leactors Affeet;illc/ th¢_ _21o%" of Poroigr_ Investm.nt, unnecessarily increases the cost of

to th. _hllippi_._ production, which makes Philip-pine• exports less competitive.

_dep_d_twri_blo_ coe±±i_i_t_ Considering that the bulk of_._ foreign investment goes to labor-

Constant (3.88)* - intensive export-oriented sectors,_e_ _N_wowtb_te _.0_ the lack of competitiveness of

(,'_.09)*

Philippine exports obviously dis-Real effect:Lye exchange _ate -0.204

(-_. 33)** courages foreign investment.Wage-Productivity differential -13.422(-_.gs)*** The generalconclusionthat

Number of strikes -0-007 canbe drawn fromthediscussions(-1.68) above is that the institution of a

Adj_tedR-_q.... 0.s2 liberal foreign investment legalD_rb_ w_t_o__tati_t_= 1.5s framework is not enough to attractE-__t_t_sti_ 6.2 foreign investment. It must be ac-

companied by appropriate macro-S_mplePeriod 1970- 19_ economic policies.

Notes: * significant at :t percent level.• ** Significant at 5 percent level.

•** signif.[oant at _0 percent level.

widega ev6fl ii ........ ...... ............... ....the::largest: foreign: equity; coral

::N:* "-"'A a:_fis' ........ ..........: ........ .... : :: tT1bute the: highest addext;:: _1 ,: "to c t ,nconsum non.:: ....... , .... •P: ::::::: and:are:the:most concentrated

: ..... : among :the fhree see{orS.... .... The.................. ..... ..... ........ liberalized Sector averages were

closest to that of manufacturing:0;:B (for review) .... ...... ............... " .... MoreOver; forei n:::e uit .....is

.... ........ ::and: C::(for continued regulahon. . . )g q.... Y;: :::Im'-ortl ralizati * . ,, . posmvmy, ana mrms, negatlveJy,: g : reasons ot puoue: nemtn; satety . " _ _ " ..........

_6re :dere_niati0n H:oweveti a:: :aa5 fiaax.._.i :aa,., _;tgx: _.. correlated with the likelihoocl:that: " " {21KI u I I r.Al _g,._ _._U l I .y] t-t.Jl I LC_tI£ t - I • -K 3 all mcmstr is rotected b lm ort

:pee ::mt0::thehst:otcom:mcdities: :th0;6aifeadyiiberalized;thosenot . ." Y _P : .i Y .1v" :whichhaV:e:ren_ained:restfietedup: i: iisfecl: :in cir:cuiar 1029i::or: those restnc.n°nS:i,Asan ma,}cat0rot the

showsotherwi_e ......... .... _.:_: ...._ ¢ ,," intensity or: restricnons, price...... _ - _ :dOuDleaCo*dnteo_ A :Sl.lDStannal...... , ...... .........:: ,, _: : :q,: .... , ranoS are :correlat¢_:l: i_egatwelyi; numt_er ot commoames are also . : . .... ; ,

tta} u,g atatu.',:: }.: ,:::4::3. if _. wittl lnclustry Size allcl DOsinvelv:: S_ i ...... e • ....... 3' not lrlClUOetl:lrl the Lists wnlcn ap- . _ren a rang r gulated m_ports. : :: .... w_th formgn eqmty, but not very..... loearetl in vArcular IUZ_, ._ . _ _ _<

Lo.relei:c De Di:0s:::PiDS Re2: .................: ............:: ........_ .... ....... mgmncant, _s a measure ot the• : ? : ; : [

if, a:: he _mport:hcen:smg: cntena: almhty of industries to set theof hoe <di:d_:nn fl_6:: :indicate that most are regulated to .... price, the price ratio has a:positive

O.a Re_aa;;i.,2 i: _e_d0m:e_ti::e i:nd:u:StrV: Here; rela tionSt_iD bo 1'1lWith :taft ffs and)roeedures Suggest: that: there with value-added concentration

discretionary p0wers ex: ratios: (VACRs), ...........................:

:: Fo:r inSiaiice; accounting:of the : :::comm 0dities::6vet subjected: eoim+p0:r regulation s sho:ws:tha sig, ::nifieant m_mber were r:estricted: (a)

::aft:er :i eing ::iiberalizefl ::oi: llberaiized after: being r_ trir::::SecOnd:: liberalized: :_wi:_6 in a r 0w;: or: (d)i:iiberalizedl

or :i:::d o:{ib:ie4eoti_ted: or enfi oiled as: ::

liberalized: but:i having::::pin6:: d ard: Comm 0:d!iy: C1asi:: sifieation (PSCC)Scheme. in the

::]:!/:(:< :>5: :5(-< : ://! :: ,:- .... .: <./-: :-¸¸//,::/:5:/:¸¸¸¸/ ....

other incentiveS; Those;unable to

; that the results:are;not:as do So may: have to look for;: Fo_ one;:::: both :r6gul_te_l: :::::arid:ii::ii markets elsewhere, i : : .... :

:America,s real intenti0ns Will

i::: o:not::: : be tested at the Uruguay: Roundwhich expires: on June 1, i993, A

..... all:::::com:mod{ties:::Whi¢ti :Were : mul tila teral ly:agreed red u ction: ofthei):: : tariffs : will:: undermine ..... the

e0_ered;i;Either:ithe preferences: created by NAFTA so:that production differentials

m6ditieS: in :the: .sam acr0ss regional trade blocs; includ-3:arei iing those of the European Corn-:

i make im __ m0n Market: and theASEAN Will::P ircilth6Puior_ :saiiksiansa'P[DS held i diminish, if not totally vanish. .......

at: the NEDA :: This early; however; the US iS:Bldg. He:said that sendinszmixed signals aSUSPresV

tel!:f0r:some:good .......... : a:imean:s: of::enticing:: dent William Clinton 7vowed :t0the io!h:erS:::that:: the: tariffsi:: _ liberalization whilereplaeed:::thelimp0rt:rest r X :Wi]! be leff: out by the 'train"i promising to::build a :strong

:::canbejuStaS:binding: i:::::: aii_:ti0n) : ...... manufacturing: base and getting: _ tougher with its tradinsz laartnersIA was ::conceiveo or ..... _4 ../ . ...._. . "

, outsloe _,4ortn Amenca (MI MS): benefit:S::fron_:all: theiliberalizati0li::: :: intoiian '" - " _ " ....

ileffo{iS Wili b tel over a :peri _ : i:agreement witt_ hel US to: ch angellonger:than the :its policy:t:0 attra¢[ foreign invest ...... ............... :

::pass ed :Since:the ia:sf:dere: :ill ation :::::::men'tg; "r:ovide mar e em"l o men t Wh ered o ca tfi shwi Con:................. :::: g. ............. ....... P .... P Y ..... ? ' y::t'0r::c0mm0dities::whose:::priCe:: so that:Mexicans will be per: sumed. Is consumption affected

M:e_ieol anal by : price :perceptions?: By::reSpOnSiveto:_ ::delistin_; other :act_iev6: :Sustained ::economic,g .... h0usehold socioeconomiccharac-..reasons can be more bi:ndin : ::::::r6wth: in effect; Amerlcan in ..... teristicsP demo ra hic charac2.... ........ ......... g: .....g : . - g P ....

: i : ::: i::dnStries:wereasked toleliminate teristics? Is price:a factor ingradu:aily::: phase it consumption?::::

...... y, t_anaoa; anti vice-versa _ _ ...... -:; ...... : • answered m the Pulong S_ahksikan....... brewihe: at : ibis ht_erahzation: Sclleme :opens hold ( , If , { ( .

...... ....... ...... : ...... :m. :.0 December 1)92, att mer c e p ppormmnes tor roductmn:NAFFA :(NOr h A ...... i an: Fre ..... ..... :P ..... " NEDAsaMakati_H,-ra. r_..:,_....... ........ ........ ...... g t-)t k-I_ L,el LJt_ I_I l.l U

Trade:Aareement): .... ........................ within Nortt_ Araerica, but:creates's ....... "_ _' ..... _' = _ l. Fael, rim txesearcn/2ellow t wa_

:::: between the paper present.or, He basc-'x:lhis0_uts_de his disserta:tion

or submitted to Clemson Universityg : ::ongm nave t_een::rnade stricter so in South Ca -_'_.... T,¢_,:_ade::s:stey -m:wh:e:::reb countnes ....................................................................................: ............=' ............................. _ .......:...... =::: ...........Y ....................... :that :50::percent of the r_roduct ........ ............

cag;: co!:!: for hate fron_ North dissertation can'be called a

breakthrou_:li :research; Since little: : research: on US: catfish: consump-

:::petition::So:Whatstherealse0re_: ::: : rot countries Id<e the Philip, tion has b -_- ...................... " _ , :. .... . ¢ t tJelt corl(-i uere(] lilt

:: : ines that oe _end heaVi|y::on:the res'u/ts ma rove: invaluable tothe AmeriCa Pc--:- " ' *"tUili:ty::an:d:::a::;:dangeri':;revealed:: ::ticulad,,::l: _-a¢ ,.g *,.* ,,c ['r_,:,.,.A: ..... n atnsn remmng m_

......... .... , ..... i J_ tla). ui the t..,o)l',_/'*xr'la%, dustrv Local catfish rotMl_r<: Leon:ard Sai_tos, : f0rmer :intema±: :eutsb6th@a,,S T;._--. ...... . .- .. ........ .........: , _.. tt oam ens invest- . "...... - • .... .... P .......... m_ght discover a thing or two mm:traue consultant or tne: and diverts _ - . ...... ...... formulating marketing strategies

............ : • IIIU_I2 Wllllng:l:o Sell 17o tile _ V ....n0W:head:of the ifiterriational .......us : ...................... : tc_ ard the at-home catfish con;.... ...... ::: .... :win:now put th:eir moides to sumin,- market ....

.... ..... 11 lUtADl.l 1_, I.U .... ....

: t er_lns::::t..o_e;:=:::durmg::a::s:essi:on:::ot: ::::::: ::::::: :: ::: : : ........ : : :: : :

:/:/::_i/_i_i:_)i:_:://::)_::_:::v/:::,_:_L: a: )

ii i::!:l_6iun:_66ris:m:i: :w6rks bestl : i::emp6_er_ent and :::i:p0verty al- broad masses of pe0plei: Aithough ithis may sound such a:tall order,

.... volunteers_ in fact, havea vital role: ip-in effecting change in the corn-

: :Phili: for:i munities :where they serve.: They:

ines for el: remarks. ............... ......

between ......: cl0se :to 300 'encies, ...... ,, . ...... _ . ....... ' .. " wnere optgormnitaes tor: cnangetore_gn:m_a tgn vomnteer :organlzauons ... - _ .;. .......... , .... .... ._,,.; .... ,.. . , .... coma oe maae pOSS1DIe tnrougrl

:workers in me country: : : : pracncm -........ ...... ............... ......... .... ....... . :...... cooperative spirit. It has worked to:....... volunteer Darnapa_ . . ............. wmcnwasor-: .. ...... _ , promote glODal VOlunteer servace

• ..,_,.,: .-. .... . tlon in DeoDle emr, owerment; ana ."..... . .: ......... .. .:ganlZecl::tgy me:lvu urgamzmg : ._ . : cq: ....... _, oy lmplemennng ancl coorcunat-

C6mmit:tee in: CollabOration _e)v_:nt:;_!sm: susta!name ing various volunteer programs

....P ..... : such as the:Volunteers for Infor-i:i:mpr0ve:::::/pattnershl : matron and::: Development, the

: : : United States 'Peace Corps, Japanthan Overseas Cooperation Volunteers, i

to consume catfish at-home than

households in other: regions.Households in the New England :

: region were less likely to consume i: : :i catfish at-h0me:: than::ihouseholdS

: in other:regions::: : ........

.... HouSehOld[ Size) OcChpation offhe head of househoidi: education: I

..... level of the head :of household,

househOld:religion) and urbaniza- ition were found: to have:no sig, Inificar_t impacts on the probability:

Israel to other of at-home catfish consumption.::::answers:to the:x 'to:consUme: Finally, since:relative price:di of perceptions; household income,

::i:i..........:on:: ?tion was household race, an_:region:were :mg::: middle :income found to: be sigmficant: :deter'

s:with the : minanis Of::the::probability: of at-_tiVe incomes were: home Catfish: consumption,: said

consume: factors should be givenemphasis:other in the development of promotiom :

:::households al programs:: geared :[owards: the:

DEVELOPMENT RESEARCH NEWS January - February 1993

ment, SNV-Netherlands Develop- envisioned program will actively ized sectors to basic social services

ment Organization, Voluntary Ser- support sustainable human and the productive resources of

vice Overseas, Korean Youth development initiatives at the the country.

Volunteers, German Development grassroots level. Through this, As a final note, Dr. Abu Y.Service, United Nations Volun- volunteers are expected to perform

teers Program, and the ASEAN advocacy, awareness creation and Selim, Deputy Resident Repre- .sentative of the UNDP, stressed

Volunteer Corps Exchange Pro- training activities.that "if everybody in their own

gram. Total human development is small ways succeed in the task of

Expanding Volunteer Service also incorporated in the Medium- promoting volunteer participation

Term Development Plan for 1993- in development, then, the spirit of

In response to the call for sus- 1998, according to NEDA Director volunteerism would be kept alivetainability, an expanded volunteer Fleur de lys Tortes. To operation- and active in reaching the goals of

program was proposed by Kevin alize this, the plan will employ an people empowerment for sus-

McGrath, resident Representative integrated social development tainable development." (MLMS)of the United Nations Develop- strategy thai would center on ex-

ment Program (UNDP). With an panding the access of marginal-initial duration of five years, the

NEDAsaMakatlBuilding,106amorsoloStreet _i;:_i;_;:!!!:: :! _i:::LegaspiVillage,1229Makatl,MetroManila

The DEVEEOPMENT RESEARCH NEWS (DRN) is published bi-monthly by the PHILIPPINE INSTITUTE FOR DEVELOP-blENT STUDIES (PIDS), a nonstock, nonprofit government research institution engaged in long-term policy-oriented research.

The DRN highlights findings and recommendations of PIDS research studios and important policy issues discussed during.PIDS seminars. This publicat|on is part of the Institute's thrust in promoting the use of research findings through information dis-semination. Annual subscription rates: Pg0 for private firms and individuals, P80 for students, libraries, academic and remmrchinstitutions, and $16 for all foreign subscribers. All rates are inclusive of mailing and handling costs.

The views and opinions expressed here are those of the authors and do not necessarily reflect those of the Institute. Inq_ries

regarding any of the studies contained in this publication, or any of the PIDS papers, as well as any suggestions or comments eta thepublication are welcome. A catalogue of PIDS publications is available upon request. Please address all correspondence and in-quiries to:

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Editorial Board

Dr. Ponciano lntal Jr., President; Dr. Maria Lamberte, Vice-President; Ms. Jennifer P_T. Liguton, Director forResearch Information; Mr. Isaac Puno III, Director for Operations and Finance

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Editor-in-Chlef: Jennifer P.T. LigutonIssue Editor: Francis EgeniasEditorial: Corazon Desuasido, Odette Salcedo, Suzy Ann Taparan, Annie Llamoso

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Re-entered as second class mail at the Makati Central Post Office on April 27,1987