Deregulation and Economic Development in the Philippines



Edited by Joseph Y. Lim, Katsumi Nozawa
Published in 1991

Introduction / Joseph Y. Lim, Katsumi Nozawa

Chapter I.

The Macro Aspects and the Political Economy of Liberalization and Deregulation / Joseph Y. Lim

1. Introduction
2. The Macro Setting
 2-1. The Liberalization Experience: 1981 to 1983
 2-2. Economic Collapse: 1984 to 1985
 2-3. The Aquino Administration
3. The Political Economy of Deregulation
 3-1. Deregulation in the Sixties Versus
    Deregulation in the Eighties
 3-2. Lobbying Power: Strength in the Vested Groups
 3-3. Liberalization and Structural and Distributional Reform
Chapter II.
1. Introduction: Rationale of Deregulation and Privatization Policy
2. Increase of Government-Owned and Controlled Corporations (GOCCs) in the Philippines
 2-1. Brief History of GOCCs
 2-2. Government Interventions under the Marcos Regime
3. Privatization Policy under the Aquino Administration
 3-1. salient Features of the Privatization Policy
 3-2. Role of the Committee on Privatization (COP) and the Asset Privatization Trust (APT)
 3-3. Role of the Presidential Commission on Good Government (PCGG)
4. Current Problems and Issues on Privatization
 4-1. Dispositions of Non-Performing Assets (NPAs)
  4-1-1. Measure of Dispositon
  4-1-2. Problems of Disposition of the Non-Performing Assets (NPAs)
 4-2. Privatization of the GOCCs
  4-2-1. Measure of Privatization
  4-2-2. GOCCs to be Privatized
  4-2-3. progress of Privatization of the GOCCs
  4-2-4. Problems of the Privatization of the GOCCs
 4-3. Recovery of the III-Gotten Wealth
  4-3-1. Legal Procedure for the Recovery
  4-3-2. Progress of the Recovery of the III-Gotten Wealth
  4-3-3. Problems of the Recovery of the III-Gotten Wealth
5. Perspectives of Privatization Policy
 5-1. Privatization's Link to Agrarian Reform
 5-2. Monetary Targets for Agrarian Reform
 5-3. Conclusion


Chapter III.

Financial Deregulation Experience in the Philippines / Mario B. Lamberte

1. Introduction
2. Issues in Financial Deregulation
 2-1. Directed Credit Policy
 2-2. Financial Liberalization: McKinnon-Shaw View
 2-3. The Emerging Views
3. Financial Deregulation Experience in the Philippines
 3-1. Aspects of Financial Deregulation
  3-1-1. Structure of the Financial System
  3-1-2. Interest Rate Policy
  3-1-3. Credit Policies
  3-1-4. Portfolio Regulations
  3-1-5. Prudential Regulations
 3-2. Performance of the Financial System
  3-2-1. Growth and Stability
  3-2-2. Market Concentration and Competition
  3-2-3. Financial Intermediation
4. Lessons from Financial Deregulation

Chapter IV.

The Role of Fiscal Policy in Economic Deregulation in the Philippines in the Eighties / Rosario G. Manasan

1. Introduction
2. Micro Aspects of Fiscal Policy Reform
 2-1. Tax Policy
  2-1-1. Revenue Generation
  2-1-2. Efficiency and Distribution Considerations
   2-1-2-1. The Individual Income Tax
   2-1-2-2. Tax on Passive Income
   2-1-2-3. The Corporate Income Tax
   2-1-2-4. The Sales Tax and the Value Added Tax
   2-1-2-5. Excise taxes
   2-1-2-6. Fiscal Incentives
 2-2. Government Expenditure Policy
  2-2-1. Distribution of Government Expenditures Across Sectors
  2-2-2. Distribution of Government Expenditures Across Economic Categories
 2-3. The Rationalization of the Government Corporate Sector
  2-3-1. Policy Actions
   2-3-1-1. The GCMCC
   2-3-1-2. Administrative Order 59
   2-3-1-3. Dispositon of Existing GOCCs
  2-3-2. Assessment
3.Macro Aspect of Fiscal Policy Reform
 3-1. The Fiscal Deficit and the Stabilization Program
 3-2. The Fiscal Deficit and its Impact on Overall Deregulation
4. Conclusion

 Annex Tables
Chapter V.

The Philippine Deregulation Experience in Trade and Investment Policy / Erlinda M. Medalla

1. Introduction
2. Trade Policy and Deregulation in the Philippines
 2-1. Historical Evolution of the Policy
 2-2. Reforms under the Aquino Administration
 2-3. Policy Assessment
3. The Philippine Exchange Rate Policy and Deregulation
4. The Philippine Investment Incentive System and Deregulation
5. Summary and Highlights
  Trade Policy and Deregulation
  The Exchange Rate Policy
  Investment Incentive System

Chapter VI.

Deregulation in Philippine Agriculture: Has it Benefited the Rural Poor? / Arsenio M. Balisacan

1. Introduction
2. Postwar Structural Changes in Philippine Agriculture: An Overview
3. The Rise and Fall of Regulation in Philippine Agriculture
4. A Simple Approach to Measuring the Impact of the Deregulation on Rural Poverty
 4-1. Farm Price Changes
 4-2. Impact on Rural Poverty
5. Concluding Remarks

Chapter VII.

Employment, Real Wages and Money Growth in the Philippines: Deregulation in the Labor Market and Adjustments / Dante B. Canlas

1. Introduction
2. Philippine Employment and Wage Trends
3. A Review of Labor Demand Studies
4. Static Labor Demand Analysis
  4-1. Theoretical Considerations
  4-2. Estimation Procedure
5. A Dynamic Labor-Demand Model
 5-1. Theoretical Framework
 5-2. Time-Series Analysis
6. Real Wage and Monetary Policy
 6-1. Theoretical Considerations
 6-2. Empirical Analysis
7. Monetary Policy
8. Concluding Remarks