Program: Towards Inclusive Regional Development in the Philippines
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The World Bank, in cooperation with the Angara Center for Law and Economics, is undertaking a joint set of studies to identify the areas of persistent underperformance and inequality in the Philippines. By reviewing the differences in regional performance and their proximate causes, we hope to pinpoint regions and areas where focused structural reforms can do the most good for the nation.The goal is to encourage balanced and inclusive growth that will come from reforms that remedy long-standing problems that impede progress. These include understanding what are the sources of uneven performance in different areas in the Philippines, how labor markets respond to existing constraints, why catch up is difficult, and what possible areas of improvement in the capital and land markets might aid in promoting both equity and efficiency.We want to see how much or how little progress has been made in closing the rural urban income gaps and also the gaps between the leading central areas and other regions of the Philippines. In addition, we pay close attention to the political economy of institutions at the regional level to see how local politics limits equilibrating market forces and makes local people indebted to their political patrons. Teams of economists combining leading researchers from the Philippines and abroad will present the first set of technical estimates which will then allow us to formulate actionable policy initiatives that draw upon their findings.To that end, the following three studies seek to:1) establish the extent of disparities between regions2) examine the response of labor markets to existing institutions andidentify lack of convergence, and3) discuss how political institutions, such as political dynasties limit the scope of reform or distort the outcomes of economic policies and slow progressSkoufias and Vinha examine “Welfare Disparities in the Philippines.” They identify the regions of welfare inequality and ask how much of this is due to underlying characteristics of individuals and how much due to other factors. They try to see whether fiscal transfers are properly targeted to appropriate regions and recipients.Chua, Limkin, Nye, and Williamson in “Urban-Rural Income and Wage Gaps in the Philippines: Measurement Error, Unequal Endowments, or Market Failure” review where changes in regional wage gaps have occurred over the last 20 years and try to see how much of a role the labor market played in promoting those gaps.Querubin and Robinson in “Why Regions Fail: The Case of the Philippines,” look at the nature of institutional differences between different regions of the country to identify which factors impede growth and development beyond simple poverty or infrastructure. They particularly point to the importance of regional power blocs and political dynasties as distorting incentives for growth.Overall, by thinking of the Philippine reform within the framework of these three papers, we can consider how reform choices can best be structured to promote greater productivity and wider inclusiveness, while pulling back or retargeting ineffective efforts.
Transcript of Program: Towards Inclusive Regional Development in the Philippines
P R O G R A M M E
Messages from:Edgardo Angara Former Senator and Founder, Angara Centre for Law and Economics
Rogier van den BrinkLead Economist and Program Leader, Macroeconomics and Fiscal Management Global Practice, World Bank Group
Registration
Health Break
Roundtable DiscussionPanel Discussant: Dr. Gerardo SicatOpen Forum
Presentations:“Welfare Disparities in the Philippines”Authors: Emmanuel Skoufias, Sharon Faye Piza, Nobuhiko Fuwa, and Katja VinhaPresenter: Emmanuel Skoufias
Discussion Points:• Identifying the regions of welfare inequality: to what extent is inequality due to the
underlying characteristics of individuals, and how much is accounted for by other factors?
• Are fiscal transfers properly targeted to appropriate regions and recipients?
“Urban-Rural Income and Wage Gaps in the Philippines: Measurement Error, Unequal Endowments, or Market Failure”Authors: Karl Kendrick Chua, Joseph Louie Limkin, John Nye, and Jeffrey WilliamsonPresenter: John Nye
Discussion points:• Changes in urban-regional wage gaps over the last 20 years: how much of a role
does the labor market play in promoting these gaps?• The labor market’s adjustment to existing rigidities while preserving regional
inequality: which failures of endowment (such as health and human capital) or structural rigidities (such as in the capital or labor markets) need more attention and analysis?
“Why Regions Fail: The Case of the Philippines”Authors: Pablo Querubin and James RobinsonPresenter: James Robinson
Discussion points:• The nature of institutional differences across regions of the Philippines: which
factors impede growth and development beyond simple poverty or infrastructure?• The importance of regional power blocs and political dynasties as distorting
incentives for growth;• The lack of strong central state presence in much of the country as a source of
continuing violence and lawlessness; and• The poor provision of most basic functions of the government, limiting the impact of
policies that could promote economic growth.
09:00 - 09:05 am
09:05 - 09:10 am
08:30 - 09:00 am
10:55 - 11:20 am
11:20 - 12:00 pm
09:10 - 09:40 am
09:40 - 10:10 am
10:10 - 10:55 am
ANGARA CENTRE FOR LAW AND ECONOMICSTowards Inclusive Regional Development in the Philippines: Lessons, Challenges and Policy SuggestionsAugust 20, 2014, 8:30 am - 12:00 nn, Malcolm Hall, UP Diliman, Quezon City
Moderator: Ms. Betsy Enriquez
