The Philippines’ social economy is transitioning to the growth stage, driven by

collaborative philanthropy and creative approaches to social funding such as

pooled CSR funds
In recent years, the Philippines has been among the fastest growing economies in the
world, with an average annual growth of 6.3% between 2010-2016, up from 4.5%
between 2000-2009. Domestic demand and increased infrastructure spending are
expected to enable the Philippines to remain a top performer in 2019, with a projected
GDP growth of 6.7%. This growth momentum will likely propel the country from lower-
middle-income status to upper-middle-income in the medium term.

Nonetheless, the Philippines’ impressive growth has not translated to improved

economic mobility. The 40 richest families account for about 76% of the economy while
the country’s poverty headcount ratio, defined as the percentage of the population living
below the national poverty line, has only declined slightly from 27% in 2006 to 22% in
2016. Disparities between affluent and poor households remain stark in key health
indicators including maternal and child mortality and nutrition levels among children.

The Philippines’ social economy is transitioning to the growth stage, driven by

collaborative philanthropy and creative approaches to social funding such as pooled
corporate social responsibility (CSR) funds. The country has the second largest impact
investing market in Southeast Asia in terms of the amount of capital deployed between
2007-2017. Since 2013, the Philippines has committed to taking nationwide actions to
promote environmental, social and governance (ESG) compliance among banks.
Moreover, the launch of the country’s first green bond in 2017 might provide the impetus
to jumpstart the nascent sustainable finance space.

Source: : ADB, Charities Aid Foundation, Credit Suisse, World Economic Forum, World
Bank. Figures are accurate as of March 2019

SDG Dashboard

Low economic mobility, poverty and income inequality, poor health care and nutrition,
and environmental degradation are some of the key challenges the Philippines is facing
in its development trajectory.

In February 2017, the National Economic and Development Authority Board approved
the Philippine Development Plan 2017-2022, the first medium-term plan anchored to the
national long-term vision for 2040 or Ambisyon Natin 2040. The Plan aligns the
country’s development priorities broadly to the Sustainable Development Goals (SDGs)
organised within 5 pillars: (i) enhancing the social fabric, (ii) inequality-reducing
transformation, (iii) increasing growth potential, (iv) enabling and supportive economic
development and (v) foundations for sustainable development. By 2022, the plan aims
to achieve:
  An upper-middle-income status,
 Rural poverty rate of 20%,
 High level of human development,
 Unemployment rate of 3% to 5%,
 Greater trust in the government and the society,
 Greater resilience and drive for innovation.










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











 

Source: sdgindex.org (2018)
Note: The "traffic light" colour scheme (green,yellow, orange, red) illustrates how far a
market is from achieving a particular goal

Government Initiatives to Address Development Gaps

Impact SDG Goals Gap Government

Area Initiatives

Agricultur   26%  The

e of the total Philippine
workforce Development
were Plan seeks to
employed substantially
in increase the
agriculture gross value
but the add of
sector agriculture,
contributed fisheries and
less than forestry from
10% of the baseline
GDP in value of 1%
Impact SDG Goals Gap Government
Area Initiatives

 2017. to 2.5%-3.5%
 The between
Philippines’ 2017-2022.
crop Strategies
production supporting
index this target
steadily include
declined improving
from 119 in agricultural
2012 to 110 productivity
in 2017, and the
impacting capacity of
the agricultural
country’s enterprises.

food
security.

Climate   The  The

action  2018 World National
 Risk Index Climate
ranked the Change
Impact SDG Goals Gap Government
Area Initiatives

Philippines Action Plan

the third 2011-2028
most outlines 7 key
vulnerable priorities:
country in food security,
the world water
with a high sufficiency,
risk of environmental
tropical and ecological
cyclones. stability,
 Cli human
mate security,
change will climate-
cause crop friendly
yields to industries and
decrease by services,
25% sustainable
according energy and
to the Food knowledge
and and capacity
Agriculture development.
Organisatio The
n (FAO). Philippines
has
committed to
reducing
carbon
emissions by
70% by 2030.

Education   The  The

Impact SDG Goals Gap Government
Area Initiatives

and  Philippines Philippine

employabil slipped government
ity from 49th focuses on
place in improving
2016 to access and
50th in quality of the
2017 in the “K to 12”
World programme,
Economic which covers
Forum’s kindergarten
Human and 12 years
Capital of basic
ranking due education. It
to is also
challenges working to
in skills ensure that
application higher and
and technical
accumulati education
on through keeps up with
work. the changing
employment
landscape.

Energy   Alm  The

access ost 10% of Philippine
the Energy Plan
Philippines’ 2017-2040
population aims to ensure
does not 100% access
have access to energy,
Impact SDG Goals Gap Government
Area Initiatives

to increase
electricity. renewable
 The energy
country has capacity to at
the second least 20,000
highest megawatts,
electricity establish an
costs in investment-
Southeast driven natural
Asia. gas industry
 Tota and promote
l energy energy
consumptio efficiency.
n is
projected to
increase at
an average
rate of 4%
annually.

Health care   1 in  The

3 children Philippine
under 5 Health
years of age Agenda 2016-
are 2022 aims to
malnourish combat
ed. The communicabl
prevalence e and non-
of stunting communicabl
increased to e diseases,
33% in malnutrition
Impact SDG Goals Gap Government
Area Initiatives

2017 from and

30% in industrialisati
2013. on-related
 The diseases. The
Philippines government is
has high also
rates of committed to
maternal improving
and infant health care
mortality, service
especially delivery and
in rural reducing
areas. inequality in
access to
health care.

MSME   MS  The
developme MEs Magna Carta
nt account for for MSMEs
99.6% of mandates
all banks to
enterprises allocate 8% of
but only their loan
25% of the portfolio to
country’s micro and
exports. small
 MS enterprises,
MEs’ and 2% to
financing medium-sized
gap is enterprises.

estimated at
Impact SDG Goals Gap Government
Area Initiatives

about USD
2 billion.

Poverty   The  The

alleviation country’s Philippine
poverty Development
headcount Plan 2017-
ratio has 2022 aims to
declined reduce the
only national
slightly poverty
from 27% headcount
in 2006 to ratio to 13%-
22% in 15% by 2022.
2016. Key policy
measures
include
creating more
and better
jobs,
improving
productivity,
equipping the
workforce
with 21st
century skills,
and
investment in
health and
nutrition.
 Impact SDG Goals Gap Government
Area Initiatives

Water and   Abo  The

sanitation ut 9% of Philippines
the aims to
population achieve
does not universal and
have access equitable
to clean access to safe
water and and affordable
18% lacks drinking
access to water an
improved adequate
sanitation. sanitation for
all by 2030. It
is also
focusing on
improving
water quality.

Social Economy

The Philippines’ social economy is transitioning to the growth stage, driven by

collaborative philanthropy and creative approaches to social funding such as pooled
CSR funds

Category Factor Rating Description

SPOs Presence, size,  There are 

and maturity of about 60,000
SEs non-profit
organisations
Category Factor Rating Description

and 30,000 SEs

in the
Philippines,
which include
revenue-
generating non
profits,
cooperatives,
associations and
microfinance
institutions.
Some SEs have
achieved
national scale.

SPOs SEs' sectoral  SEs are 

presence present in a
range of sectors
including
financial
services,
education,
health,
agriculture,
employability,
environment and
water and
sanitation.

Investors Philanthropic  Institutio 

contributions nal philanthropy
Category Factor Rating Description

is well
established with
the active
presence of both
public and
private
foundations.
 Commun
ity foundations
are drivers of
local
philanthropy
while family
foundations have
moved towards
collaborative
philanthropy.

Investors Managed funds  The 

Philippines has
the second
largest impact
investing market
in Southeast
Asia.
 A
number of
notable
international
impact funds
operate in the
Category Factor Rating Description

country,
including
Accion,
Leapfrog
Investments,
LGT Impact,
Omidyar
Network,
Oikocredit,
Patamar,
responsAbility,
SEAF and
Unitus.
 Foundati
ons such as
FSSI, FPE, PEF,
PhilDev provide
patient capital in
the forms of
grants, debt and
equity as well as
non-financial
support to build
up SEs’
capacity.

Investors Corporate  Collectiv 

sector e impact through
pooled CSR
funds, corporate
impact venturing
Category Factor Rating Description

and inclusive
business are
some of the
advanced
approaches
adopted by
companies in the
Philippines to
maximise social
impact.

Enablers and Policy  SEs may 

Intermediaries environment be registered
under existing
for-profit and
non-profit legal
structures.
 The
Philippine
government has
taken initial
steps to support
SPOs with the
IB accreditation
framework as
well as the
proposed
PRESENT Bill
and Social Value
Act.
Category Factor Rating Description

Enablers and Incubators,  Xchange, 

Intermediaries accelerators, FSSI, FPE, PEF,
and capacity- PhilDev,
builders GKonomics (an
initiative by
GK),
EDMEnterprise,
Social Enterprise
Development
Partnerships,
Inc. (SEDPI) are
some of the most
active social
incubators,
accelerators and
capacity
builders.

Enablers and Networks and  AVPN, 

Intermediaries platforms British Council,
the Philippine
Social Enterprise
Network
(PhilSEN), GK,
PSBP, Ateneo
de Manila
University
manage
networks and
platforms that
bring together
Category Factor Rating Description

diverse social
economy
stakeholders in
the country.

Enablers and Knowledge and  The 

Intermediaries research Philippines has a
relatively well-
documented
social economy.
Various research
papers and
reports have
been published
by the British
Council, the
Lien Centre for
Social
Innovation, UBS
and INSEAD,
AVPN, GIIN
and Indiana
University –
Lilly Family
School of
Philanthropy and
the Institute for
Social
Entrepreneurshi
p in Asia
(ISEA).
Category Factor Rating Description

 Ateneo
de Manila
University and
Xavier
University offer
social
entrepreneurship
programmes.

Enablers and Partnerships  Collabor

Intermediaries ations for impact
are present in
various
stakeholder
groups in the
social economy
including public
foundations,
family
foundations and
corporates.
 Collectiv
e impact and
pooled funds are
some of the
innovative
partnership
approaches seen
in the country.
 Filipino nationalists suggest the following alternatives as solutions to the economic
problems:
1. Governmental support to local entrepreneurs and development of local
industries.
2. Industrialization of agriculture.
3. Development of the national steel industry.
4. Provision of real wages and profit sharing in business.

Here are just a few ways to help impoverished people in the Philippines:
1. Help build classrooms, libraries and other essential structures in rural areas. ...
2. Fund a child's education. ...
3. Help people in the Philippines find business and livelihood opportunities. ...
4. Help build homes for homeless families.

Six Ideas for Fixing the Nation's Infrastructure Problems

1. Revamp the Highway Trust Fund. ...
2. Get Washington to Take the Issue Seriously. ...
3. Empower State and Local Governments. ...
4. Increase Rural Access. ...
5. Get Cities to Think Big. ...
6. Make Bridges Smarter.

Government Solutions To The Philippine Economic Problems

3 years, 10 months ago

 Philippine Economy and Its Contemporary Problems and Issues

The Philippines, like many nations of the world, is a mixed economy. While it
manifests capitalist market economy in its cities and more advanced municipalities and
a command economy most especially in its major industries like energy and transport,
the agricultural and subsistence economy persist among its barrio folks and indigenous
groups.

The Philippines is in a transition stage from an agricultural to an industrial

economy. Land-ownership is still concentrated in the hands of a few. Statistics show
that a high proportion of rural households live below the poverty line. The Philippines
has vast natural resources but the economy is basically extractive and its population
has substandard levels of living. Thus the Filipinos have been aporically described
as “beggars sitting on top of a mountain of gold.”
Issues and problems that confront contemporary Philippine economy include the
following:

1. Defects in the economic structure, such as great disparity in the distribution of wealth
and material goods; gross inefficiency and lack of dynamism of the manufacturing sector
and the subsequent persistent balance of payments deficits and recurrent huge public
sector deficits as a major problem.
2. Slow economic growth and rapidly rising population make it difficult to expand education
and health services and improve their quality.
3. Government reliance on and support of foreign investors, MNC’s and foreign debts and
foreign aid.
4. Lack of political will on the part of government to support local entrepreneurs and
develop local industries as well as to assert its self-determination by promoting Filipino
First and protectionism policy
5. Low real wages and little job opportunities
6. Huge foreign and domestic debts
7. Bureaucracy and massive graft and corruption in government.
8. Inefficient tax collection, tax evasion, tax credits and tax holidays given to foreign
investors rob the nation of needed revenues.
9. Colonial mentality of the people to patronize foreign goods rather than their locally made
products.
10. Economic instability brought about by peso devaluation, political instability, and high cost
of gasoline and crude oil products, military threats, coups d’ etat, and unstable peace
and order situation in the country.
11. Unemployment and underemployment.
Government Solutions to the Economic Problems

The government institutes the following solutions to the economic problems:

1. Among the plans/programs that aim to make the Philippine economy grow is the
conversion of the former American naval base, Subic Naval Base into a free port zone
under the management of the Subic Bay Metropolitan Authority (SBMA).
2. Inviting foreign investors to set up business in the country and providing incentives, such
as tax breaks, tax credits, and tax holidays.
3. Organized livelihood projects to help the poor be self-reliant.
4. Entering into treaties and joint ventures agreements with foreign nationals and foreign
corporations in the exploration and development of our natural resources.
5. Opening the Philippine markets to world commerce, import liberalization policy, lifting of
protectionist policies, and adherence to the idea of globalization.
6. More foreign debts and foreign aids from the World Bank and the IMF to solve budget
deficits.
7. Privatization and commercialization of government-owned or controlled corporations.
8. Joining in treaties and agreements with world trade bodies whose goals and objectives
are advantageous to the more technological advanced economies. Example: WTO,
APEC, GATT, etc.
9. Imposing dictatorship or strong presidency to control political and economic power.
Nationalist Alternatives

Filipino nationalists suggest the following alternatives as solutions to the economic

problems:

1. Governmental support to local entrepreneurs and development of local industries.

2. Industrialization of agriculture
3. Development of the national steel industry.
4. Provision of real wages and profit sharing in business.
5. Free education for all through state-funded education and more emphasis on science
and technology and mathematics.
6. Countryside development and regional development
7. Moratorium on payment of foreign debts repudiation on those debts which were not used
for public welfare.
8. Intensive and more efficient tax collection especially among big-time tax evaders and
erring corporations.
9. Political will to stop graft and corruption in government
10. Protectionism policy and governmental regulations on prices of commodities.
11. Campaigns on Filipino First Policy, patronizing local goods and product, and pride in
being a Filipino.
12. Strict adherence to the constitutional provision on the exploitation of our natural
resources.
13. A realistic appraisal of the costs and benefits of dealing with MNC’s in a pragmatic
context and where these are advantageous to both.
14. For the Philippines to be truly self-reliant the government should enact foolproof laws
against the abuses of the MNC’s and TNC’s and recognizing only legitimate and fair
foreign trade.
15. A planned economy based on a grand strategy as to which industries should be
supported and which to be abandoned and involving close control over the standards of
living, employment and minimal inflation.
16. Genuine land reform
17. More trade and commercial relations with Asian neighbour countries. 

SOCIAL CONDITIONS, INCLUDING POVERTY,

REMAIN OBSTACLES TO WOMEN'S
ADVANCEMENT IN PHILIPPINES, WOMEN'S
ANTI-DISCRIMINATION COMMITTEE TOLD
27 January 1997
Press Release
WOM/944

SOCIAL CONDITIONS, INCLUDING POVERTY, REMAIN

OBSTACLES TO WOMEN'S ADVANCEMENT IN PHILIPPINES,
WOMEN'S ANTI-DISCRIMINATION COMMITTEE TOLD
19970127 While significant steps had been taken for the advancement of women in the
Philippines, the social conditions continued to pose challenges to the Government, the
representative of the Philippines told the Committee which monitors the implementation of
the Convention on the Elimination of All Forms of Discrimination against Women, as he
presented his country's third and fourth periodic reports this morning. He said that despite
decreasing unemployment and declining poverty, the number of Filipinos living below the
poverty line was a serious concern.
The Chairperson of the National Commission on the Role of Filipino Women
emphasized that women suffered the most from the effects of poverty, which hit rural
women particularly hard. Because of scarce job opportunities, many Filipino women were
forced to seek employment overseas where they were exposed to exploitation, abuse and
maltreatment. The Filipino delegation outlined government efforts to deal with the problem
of migrant women workers by providing new employment opportunities in the country and
protecting the rights of those who chose to work abroad.
In 1994, 60 per cent of deployed overseas Filipino workers were women. Rural
women, who migrated to urban areas and foreign lands usually landed low-status jobs as
domestics and entertainers and were often subject to abuse and exploitation. There was a
considerable lack of data about violence against women, due in part to the unwillingness to
report instances of such violence, according to the delegation.
Women's efforts had led to draft legislation on rape. However, pending bills on
domestic violence were still being stalled in the legislature. In the meantime, a presidential
directive had called for all agencies and government officials to educate the public. The
delegation drew attention to gradual improvements in women's health and education. They
were living longer, marrying at an older age and having fewer children.
Women had increased responsibility for the economic upkeep of households and
increasing numbers were entering the workforce, however, there were wide gaps in
employment conditions and pay between women and men. The Committee will meet again
at 3 p.m. today to conclude its consideration of the reports of the Philippines.
Committee Work Programme
The Committee on the Elimination of Discrimination against Women this morning was
scheduled to hear the third and fourth periodic reports of the Philippines on its
implementation of the Convention on the Elimination of All Forms of Discrimination against
Women (documents CEDAW/C/PHI/3 and 4).

The third periodic report focuses on new policies and programmes resulting from the
growing consciousness of women's issues, particularly the formulation of the first Philippine
Development Plan for Women, 1989-1992. Some sectors in the country still believe that,
while legal and policy pronouncements may already be adequate to a certain degree,
bridging the gap between theory and practice demands urgent attention.

The Philippines, a country of more than 70 million people and with a relatively high
population growth rate, faces significant problems of poverty, unemployment and
underemployment and particularly of environmental degradation. In addition to its economic
difficulties, the country also suffered a number of natural calamities, including an ongoing
volcanic eruption of Mount Pinatubo in the provinces of Luzon. During the period of 1988 to
1992 the country underwent a difficult transition from dictatorship to democracy.
Subsequently there was a successful transfer of power to a new administration which is
expected to continue the general policies of the previous administration towards
decentralization.

Although improvements in the health and education status of women and a progressive
decline in the total fertility rate have been noted in recent years, the report stresses that
much remains to be done in terms of putting the concerns of women in the mainstream of
development processes. Moreover, women's special concerns such as violence against
women, prostitution, women's image in media, and problems of women migrant workers are
in need of priority attention. In addition, women, particularly mothers, suffer some of the
worst primary malnutrition problems. The labour force participation for women, while on the
increase, is still generally lower than that of men.

The report considers the approval and adoption of the Philippines Development Plan for
Women, 1989-1992 as the most significant development in the country's efforts to advance
women's situation. New structures and mechanisms for the Plan have been established and
existing mechanisms strengthened. Examples of such structures include the Bureau of
Women and Young Workers of the Department of Labour and Employment and the Bureau
of Women's Welfare of the Department of Social Welfare and Development. The most
pervasive issue being confronted by the National Commission on the Role of Filipino
Women in its work for women's advancement is the generally low level of consciousness of
women's issues in all levels of the bureaucracy.

The Women's Anti-Discrimination Committee - 4 - Press Release WOM/944 327th Meeting

(AM) 27 January 1997

Commission has embarked on a massive consciousness-raising project in that regard,

targeting the different layers of the bureaucracy. The Commission has also been involved in
the development of a database on women.
In 1992, the report continues, the Women in Development and Nation- Building Act was
passed, strengthening the Government's commitment to bring women's issues and
concerns into mainstream development. Other legislative developments include the
following: the passage of an act strengthening the prohibition of discrimination against
women in employment; the generics law, which protects consumers, primarily women, from
exorbitant costs of medicines; a law on prostitution and trafficking, which outlaws the
practice of matching Filipino women for marriage to foreign nationals either on a mail-order
basis or through personal introduction for a fee; formulation of a first set of guidelines for
evaluation and revision of textbooks as to their sexist content; formation of women's studies
consortium in six colleges and universities; and, implementation of a project to promote the
participation of women in non-traditional trades.

According to the report, remaining obstacles to the advancement of women include

inadequate enforcement and monitoring of equality implementation laws. A thorough
analysis of the gender impact of government laws, policies, forms and procedures is
needed. Another issue is the low-level of consciousness of women's concerns which
continuously manifests itself in the tendency to favour male candidates for high-level
positions, the tendency of women to continue to flock to traditional and low-paying jobs, and
the tendency of agricultural training and other facilities to be male oriented. Sexism and
stereotyping was pervasive in the media and the school curricula. Collected relevant data
on women's status needed to be more creatively disseminated.

Although trafficking and prostitution of women has always been prohibited by Philippine law
and tradition, the problem continues to beset the country and thrive on the increasing
poverty and marginalization of the majority of the people. Young woman migrants from
depressed rural areas who lack skills to compete in an urban/business-oriented and foreign
arena often find themselves in the lowest and marginalized jobs in both the domestic and
overseas labour market. As a result, they become prey to male employers and customers.

To demonstrate rising concern, Congress has been active at formulating bills addressing
the issues, the report states. Relevant Senate committees have conducted public hearings
to look into the plight of Filipino domestic helpers and entertainers abroad and to arrest the
problem of trafficking and exploitation of those workers. One concrete outcome was the
repatriation of hundreds of women overseas workers stranded in war-torn countries in the
Middle East. Numerous reports of exploitation and abuse of Filipino women overseas have
resulted in a policy directive requiring all entertainers, domestic helpers and nurses applying
for overseas work, to undergo

Women's Anti-Discrimination Committee - 5 - Press Release WOM/944 327th Meeting (AM)

27 January 1997

specifically designed pre-deployment orientation programmes which increase their

awareness and prepare them for the social, cultural and job realities in their destinations.

The report goes on to say that the problem of trafficking and prostitution of women has been
continuously addressed by both government and non-government institutions through the
enactment of laws and regulations, issuance of policy directives, and implementation of
programmes and projects relevant to the problem. Major challenges and gaps remain,
however, which need to be addressed.

Foremost among those challenges is the need to review government policies and
programmes on prostitution and come up with more viable solutions, the report goes on. A
critical issue being raised by non- governmental organizations is the Government's
ambivalence towards the overall issue of prostitution because, while it is considered illegal,
the Government exercises regulatory functions, particularly in the employment of hospitality
women workers. City governments require these types of workers to undergo vaginal
examinations to certify that they are free from sexually-transmitted diseases before they are
issued work licenses.

The report indicates that although the law guarantees equal opportunity, a de facto
inequality remains between the sexes in terms of women's participation in elective as well
as appointive positions. The situation is attributable to socio-cultural factors which hinder
women's full involvement in the country's public and political life. While women continue to
be slightly more active at the polls than men, female representation in elective posts at both
the national and local levels was only 8.5 per cent. The report outlines several government
initiatives to promote the advancement of women in such areas as the civil service.

The education sector is recognizing women's concerns in both formal and non-formal
education, the report continues. However, stereotyping in school curricula and gender
tracking of professions need more attention. There is a need to eliminate gender bias of
training programmes, increase awareness of women and policy-makers on gender issues
and muster more government support to implement the sector's programmes concerning
women. Another related issue is the non-absorption of women, who are trained in non-
traditional skills, into the labour and employment sectors due to gender biases and
traditional attitudes of prospective employers.

A major concern in the employment sector remains the inability of present statistical
indicators to capture women's real contributions in production, the report says. Across all
ages, females have consistently lower employment rates than males. The majority of skills
training programmes for women are traditionally female-oriented and home-based. A review
and reorientation of women's participation in livelihood and training programmes

Women's Anti-Discrimination Committee - 6 - Press Release WOM/944 327th Meeting (AM)

27 January 1997

is much needed to enable them to participate in mainstream employment opportunities.

Advocacy efforts are needed to encourage women to engage in more varied productive
enterprises that are more economically and personally rewarding. The Department of
Labour and Employment is charged with addressing many of those issues.

In the area of health care, the report stresses that in spite of positive developments,
women's health status remains poor in terms of maternal mortality and the prevalence of
anemia and goiter. The inadequacy of the health-care delivery system and the poor
functional health literacy as well as socio-cultural values and practices of women are also
problems which need attention. In general, problems in health care, as in other sectors, are
particularly acute for rural women. The majority of Filipinos live in rural areas and thus many
of the major government programmes focus on rural concerns.

According to the fourth periodic report, which covers developments between 1992 and
1995, the Government faces a major challenge in trying to maintain a favourable climate for
foreign investment while checking rising criminality and searching for a lasting solution to
the country's insurgency problems. In 1994 an estimated 35.7 per cent of Filipino families
lived below the poverty line, down from 39.2 per cent in 1991. According to the International
Labour Organization (ILO), the Philippine economy will have to grow by an estimated 8 to
10 per cent annually to generate enough jobs for labour entrants.

Poverty has been exacerbated by several natural disasters. The eruption in Mount Pinatubo
in 1991 continues to wreck havoc on the economy of central Luzon, where homeless
families are still waiting for comprehensive programmes to rehabilitate them. Record-
breaking typhoons in 1995 devastated many provinces. The Government's calamity fund is
depleted and the calamities caused a major setback to the economic gains the country was
beginning to realize.

There is a relatively strong State machinery in place for the advancement of women and the
government bureaucracy is starting to recognize the significance of women's role in
development, the report states. The women's movement is also beginning to be felt as a
strong force. However, in spite of those small successes, much more remains to be done
before there is de facto equality for women. Only 46.8 per cent of women are employed,
compared to 85.7 per cent of males. Women compensate for their lack of access to formal
wages by working in the informal sector, but most of their productive contributions to family
income is invisible in the national income accounts. Despite the virtual standstill of the
family planning programme because of the strong resistance of the Catholic Church, the
use of contraception rose to 40 per cent in 1993.

Women's Anti-Discrimination Committee - 7 - Press Release WOM/944 327th Meeting (AM)

27 January 1997

The feminization of overseas employment is a continuing problem, the report continues.

Approximately 52 per cent of all overseas contract workers in 1991 were women, reflecting
their employment distress. Women domestic workers deployed in neighbouring south-east
Asian countries made up 57 per cent of such workers in the service sector and entertainers
and nurses comprised 34 per cent of the professional sector. Non-payment of wages,
discrimination and sexual abuse abound and one of the Government's major concerns is
inadequacy of protective mechanisms to deal with abusive employers in host countries.

In late 1994, rape, domestic violence and reproductive rights became a focus of national
debate and an increasing number of legislators filed bills on those issues, the report says.
The Philippine Plan for Gender-responsive Development, 1995-2025 is the Government's
30-year framework for pursuing full equality and development for women and men and the
main vehicle for implementing commitments made by the Philippines at the Fourth World
Conference on Women (Beijing, 1995).
The Philippine Human Rights Plan, 1996-2000, which was prepared with the full
participation of the National Commission on the Role of Filipino Women, gives special focus
to women's rights as human rights. Landmark laws passed by the current Congress include
the 1995 Anti-Sexual Harassment Act; the Magna Carta for overseas contract workers,
which seeks to institute policies for the welfare of migrant workers, their families and
overseas Filipinos; and an act to provide credit assistance to women in micro and cottage
businesses.

In order to ensure adequate funding for gender and development issues, a number of policy
initiatives have been undertaken, including presidential directives on budgeting by
government agencies. A provision on gender responsive projects was included in the 1995
General Appropriations Act and the 1996 Budget Call classified women in development and
gender and development activities as priority Government programmes to ensure their
consideration from the very start of the budgeting process. The National Commission on the
Role of Filipino Women also published The Women's Budget: Philippines, 1995-1996,
which assesses Government spending on the advancement of women.

According to the report, remaining obstacles to the promotion of women's interests and
welfare include: insufficient practical tools and methodologies for gender development
which are appropriate to Philippine conditions; the lack of a critical mass of women in top-
level and decision-making positions; low appreciation among government officials and the
bureaucracy about the importance of gender-mainstreaming; absence of a comprehensive
gender- responsive monitoring and indicator system for government departments and
agencies; and an absence of political will and commitment by implementing agencies.

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27 January 1997

The report goes on to list other difficulties facing women. It says acute poverty continues to
affect women more seriously, and with the fall of the peso they are being forced to find ways
to augment family income. Gender- responsiveness in development has been difficult to
achieve, mainly because of the lack of public understanding of gender issues. A strong
public advocacy programme is needed to create a social environment which supports
women's gender concerns.

Schools continue to play pivotal roles in reinforcing and perpetuating sex-role stereotyping,
it states. Sexist concepts still found in curricula, textbooks and instruction materials must be
reviewed for their relevance to the changing role of women and men. The media and the
advertising industry also portray women in very limited, sexist and stereotyped roles and the
Church's traditional views about women remain unchanged. However, the Government has
responded positively to the gender-equality agenda, although its basic institutional make-up
remains male-oriented.

Introduction of Report

FELIPE MABILANGAN, Permanent Representative of the Philippines, said that when his
country's Senate ratified the Convention on the Elimination of All Forms of Discrimination
against Women in 1991, it was in pursuance of a policy of non-discrimination that was
enshrined in the Constitution. The confluence of legislative and administrative measures
that had been adopted and put into operation since then constituted a process of
institutionalizing the provisions of the Convention in every branch of the Government and in
every aspect of Philippine life. The country had launched the Philippine Perspective Plan for
Gender-Responsive Development, a 30-year framework for pursuing equality and
development for women and men, covering the years 1995 to 2025.

He went on to say that his Government had made 12 commitments towards the
implementation of the Beijing Platform for Action. He expressed support for the proposed
optional protocol to the Convention to allow groups and individuals to petition the
Committee directly. The Government had taken steps to institutionalize the mobilization of
resources for gender-responsive activities. In the 1995 General Appropriations Act, a
provision was inserted directing agencies to place priority on gender-based programmes
and projects.

While significant steps had been taken for the advancement of women in the Philippines, he
said much remained to be done. Under the current Administration, the top concern
remained the attainment of a meaningful peace with justice. The country's steady economic
upturn had signalled what might well be the take-off of the Government's vision to make the
Philippines a newly industrialized country. The gross national product (GNP) had steadily
increased to 5.7 per cent in 1995. A strong economic performance was

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27 January 1997

providing the impetus towards social progress, especially the advancement of women.

He emphasized that the social conditions continued to pose challenges to the Government.
The population continued to increase rapidly, largely because of overall improvements in
average life expectancy and the reduction in mortality rates. And while there was a
decreasing unemployment rate and declining poverty, the number of Filipinos living below
the poverty line continued to be a matter of concern. In addition, job opportunities remained
scarce, forcing many Filipinos, particularly the women, to seek employment overseas where
they were exposed to exploitation, abuse and maltreatment. His Government thus had a
particular concern for women migrant workers.

IMELDA M. NICOLAS, Chairperson of the National Commission on the Role of Filipino

Women, said that despite many accomplishments in gender and development during the
period covered by the two reports, much remained to be achieved. She noted that as the
staff of the National Commission in collaboration with governmental and non-governmental
organizations worked to complete the answers to the Committee's written questions on the
advancement of Filipino women since 1995, the Senate of the Philippines had passed the
Anti-Rape Bill. The Bill was now in deliberation by a bicameral committee to harmonize the
Senate and House versions. In addition, two weeks ago the heads of all government
statistical agencies were also meeting to set up the parameters for research to measure
and value the unremunerated work of women through a satellite account.
She stressed that in spite of the remarkable economic recovery -- a possible 1996 GNP of 7
per cent -- most women bore a disproportionate burden of poverty and it was particularly
acute for rural women. It was manifested in the continuing feminization of overseas
employment, where, in 1994, 60 per cent of deployed overseas Filipino workers were
women. It was often rural women, who, because of their poverty and lack of opportunities in
life, became migrants. They often risked going to urban areas and foreign lands for jobs and
then became victims of trafficking. Most of them were employed as service workers such as
entertainers and domestic helpers, which by the very nature of their jobs made them
vulnerable to abuses and exploitation.

She said women's poverty remained a continuing concern of the Government. It had issued
a policy stating that it would pursue a gender- responsive approach to poverty alleviation.
Last year, the National Commission, as the Government's national machinery for women,
had gained access to the highest policy-making body -- the Social Reform Council. Larger
budget allocations were being ensured for women's programmes and projects. The biggest
share of those allocations went to direct services and programmes. The Government had
also committed to set aside 20 per cent of the national budget for social programmes and
services, which ultimately benefited women.

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Regarding migrant women workers, she said initiatives and measures had been set in place
that would respond to the pressing needs and problems of overseas workers, especially
women. In 1995, the Government adopted the Magna Carta for migrant workers, providing,
among other measures, various centres for monitoring purposes, as well as support
services. The Department of Labour was conducting a study on the migration of women
workers and its impact on their families. It had also issued a policy on the deployment of
female household workers and overseas performing artists, including the requirement that
they must have basic literacy skills, experience and training demanded by the job, as well
as the condition which provided protection to foreign migrant workers. Given the dimension
and the severity of the problem and the lack of equitably shared economic prosperity, the
inadequacies of the Government response would continue to be felt.

Concerning violence against women, she said the issue had posed a serious challenge to
the Government, both in the areas of protective policies and legislative programmes. There
was a considerable lack of data on the problem, due in part to the unwillingness to report
instances of such violence. Advocacies by women had caused the filing of bills on those
crimes, including the bill on rape. There were pending bills on domestic violence, but
passage of such legislation was being stalled by debates and consultations that normally
characterize all democratic processes and by the fact that almost all bills penalize only the
crime of "habitual wife battering".

The traditional attitude of a submissive role for women in the family had contributed to a
culture of silence on domestic violence, she continued. In the absence of a law on domestic
violence, the executive branch had hammered out a presidential directive which was a call
to action addressed to all agencies and government officials to educate the public on the
issue of domestic violence.

She said the overall picture showed gradual improvements in women's status in the areas
of education and health. Filipino women were living longer, marrying at an older age and
having fewer children. Women's literacy continued to improve and more women were
pursuing higher education. Women's contribution to the economic upkeep of households
had increased and yet there had been no significant sharing of domestic tasks and
responsibilities. Increasing numbers of women were entering the labour force but wide gaps
in employment conditions and pay between women and men remained. Filipino women's
voting participation continued to be high but the number of elected women officials stayed
low as they were often reluctant to run for political office. Although there was improvement
in the educational area, problems such as gender-tracking remained. Women's studies
were incorporated into a number of university programmes.

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She went on to list a series of legislative initiatives concerning women's issues. Concerning
the issue of mail-order marriages, she said that, despite legislation, statistics still indicated
the existence of the phenomenon. In that regard, she noted that presidential decrees did not
have the power of legislation, but they did have impact in the society. The implementation of
laws largely rested on the administrative branch of the Government. Amendments to
aspects of the criminal code were still necessary.

The Development Plan for Women raised the consciousness of planners, but other efforts
were necessary to implement the plan, she said. The Plan had also opened up non-
traditional areas of skills for women's employment. A change in the Family Code had called
for shared parenting to incorporate changing gender roles. Studies indicate, however, that
women's traditional role in the family had remained essentially the same.

Regarding the issue of female trafficking and prostitution, she said economic concerns,
particularly for rural women, were often the determining factor in forcing women into
situations of exploitation. International criminal elements often controlled the trafficking in
women and, therefore, international efforts were necessary to stop the practice. Her
Government was cooperating with other countries such as Belgium to address the problem
of trafficking. Similar efforts were under way to address the growing phenomenon of the
sexual abuse of children. Local governments were being sensitized to the existence of sex
tourism.

She said the President had been championing the appointment of women to decision-
making positions. She went on to outline statistics concerning the participation of women in
various aspects of public life, such as the police and the military. Sex-disaggregated data
was available in a number of areas, but in such areas as income by sex, prostitution and
violence against women adequate data was lacking. Abortion data was limited since it was
illegal in the country.
Efforts were under way to eliminate sex stereotyping in the educational system, she said.
There was no data on the success of those programmes. Although women represented a
large majority of teachers, they were not represented in top decision-making positions.
Various programmes for illiterate women were outlined. Those programmes focused
particularly on rural and other disadvantaged women.

She said the Government had signed a number of bilateral agreements to protect migrant
workers. Skills enhancement seminars were made available to migrants through the
embassies in a number of countries. Illegal recruitment victims were receiving counselling
services. The Government was assisting in

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(AM) 27 January 1997

the development of new areas of rural employment such as in small enterprises to provide
an alternative to migration.

Women were still consigned to the reproductive sphere even as more joined the labour
force, she said. Maternity leave was guaranteed to women working in free trade zones.
Women remained underrepresented in labour unions, particularly in leadership positions.
The Department of Labour had a mandate to control home employment and ensure the
welfare of those employed in such work. Advocacy efforts were under way to increase
awareness of labour laws. Social security coverage had been extended to a larger number
of women in the informal sector. Assistance was also being made available to women in
micro- and cottage enterprises.

She said the recent economic growth may have had a short-term negative effect on women,
particularly in the agricultural sector. The removal of protection for the agricultural sector
would improve productivity in the long term. The challenge for the Government was to
provide adequate support for women who were adversely affected by the transition of the
economy. The Government was committed to granting access to Philippine markets which
should create new opportunities for domestic industry.

She went on to respond to a series of questions relating to specifics of family law, such as
ownership of property and rights of child custody. A lengthy and detailed examination of
such laws then followed.

Questions and Comments by Experts

An expert said that the Committee's understanding as well its written questions would have
been more comprehensive if the Philippine's fourth periodic report had been circulated
earlier and in more than one working language. The country had made significant strides
since it ratified the Convention, including a greater public awareness of gender equality.
However, women still played a subordinate role to men, particularly in the family.
She noted that the Philippines had done a great deal of work to ensure that various United
Nations committees and agencies kept the problem of migrant women workers and
trafficking in women on their agendas.

* *** *

How the Philippines is planning for a brighter future

By EY Reporting
Insights from external journalists, academics, practitioners and EY professionals
9 minute read8 Nov 2019

The Philippines has a booming economy, with enormous potential for further

growth. EY Reporting looks at the steps taken to make it attractive to foreign investors.

The Philippines has emerged in recent years as one of the more dynamic Asia-Pacific
economies, defying stereotypes with some impressive economic fundamentals. It is the
world’s 34th largest economy and the 13th largest in Asia, with the potential for
considerable further growth. It is considered a “newly industrialized” country – one
whose economy is transitioning from being based on agriculture to relying more on
services and manufacturing.

The country has been one of Asia’s fastest-growing economies in recent years. According

to Government figures, gross domestic product (GDP) increased by 6.9% in 2016, 6.7%

in 2017 and 6.2% in 2018. (By way of comparison, GDP in Emerging Asia grew by 6.5%

in 2017 and 6.6% in 2018, according to OECD data.) Per capita income increased by 17%

between 2016 and 2018.

Meanwhile, unemployment has fallen, partly as a result of the jobs created by foreign

direct investment (FDI), which reached an all-time high of US$10.05b in 2017 (up from

US$6.64b in 2015) according to central bank figures. Analysts say the country has
consigned its former reputation as the region’s economic laggard to history. Indeed, by

April 2019, Standard & Poor’s and the Japan Credit Rating Agency had upgraded the

Philippines’ credit rating to just one step below an “A” territory rating.

There are challenges facing the Philippines, though, reflecting a more difficult regional

environment in 2019. “The economy slowed down in the first quarter of 2019, and the

trade war between the US and China is having an effect,” says Joshua Kurlantzick,

Senior Fellow for Southeast Asia at the Council on Foreign Relations, based in

Washington, DC.

Why the Philippines is attractive to foreign investors

The World Bank (WB) highlights the Philippines’ increasing urbanization, its growing

middle-income class, and a large and youthful population. It’s also worth noting that

English is an official language and is taught in all the country’s public schools.

The WB views the Philippines’ economic dynamism as being rooted in strong consumer

demand supported by improving real incomes and robust remittance inflows from

expatriate workers. Business activities are buoyant – particularly in the services sector,

in industries including real estate, finance and insurance.

Such characteristics help put the Philippines squarely on investors’ radar screens,

helped along by a domestic market that is buoyed by rising population growth; in 2017 it

grew by 1.5%, a higher rate than both Malaysia and Indonesia.

President Duterte, who came to power in 2016, is committed to improving the country’s

infrastructure in order to create jobs and business opportunities and boost economic

growth. His “Build, Build, Build” program is made up of 75 major projects covering

transportation, power, water supply and flood management. This mammoth endeavor
envisages a total spend of at least 8t pesos (US$150b). The Government is planning to

increase infrastructure spending to approximately 7% of GDP by 2022.

President Duterte has courted foreign investors, particularly in infrastructure, as part of a

broader attempt to strategically rebalance the Philippines’ economy. 

Joshua Kurlantzick

Senior Fellow, Council on Foreign Relations

It has also focused on pushing through reforms, such as the 2017 Tax Reform for

Acceleration and Inclusion Act. This revision of the tax code aims to make the system

simple and fairer, and includes new revenue-raising measures that are designed to help

fund the Government’s infrastructure program.

“Duterte has courted foreign investors, particularly in infrastructure, as part of a

broader attempt to strategically rebalance the Philippines’ economy,” says Kurlantzick.

“A lot of that investment has not come through yet, but they are clearly trying to woo

more smart investment from China.”

Bureaucratic obstacles

Despite the outreach to foreign investors, prominent investors active in the Philippines

caution that some restrictions remain. They highlight issues in government

effectiveness; for example, some Build, Build, Build projects have faced bureaucratic

and procedural obstacles.

There are also economic problems to deal with, including rising inflation, growing

public debt and a trade deficit, with some commentators suggesting that the country

needs to develop new industries to remain competitive internationally. There are also
wide disparities in income and growth between the country’s different regions and

socioeconomic classes.

Nevertheless, investors see the direction the country is heading as positive. For example,

efforts to make it more straightforward to do business have garnered plaudits. The Ease

of Doing Business Law was fast-tracked and is now on the statute book. It constitutes

different types of application that commit the Government to act within 3, 7 or 20 days,

depending on the complexity of the application. One feature of the law is that if these

deadlines are not met, there is an escalation process that enables companies to report

the issue to the appropriate government agency.

Driving good behavior

How corporate governance standards are improving

In terms of corporate governance, standards in the Philippines are rising, with scores on

the ASEAN Corporate Governance Scorecard improving in recent years. Particularly

strong improvements have been seen in two categories: disclosure and transparency,

and the responsibilities of the board.

The central bank, Bangko Sentral ng Pilipinas (BSP), has implemented consumer and

investor protection standards that are expected to be embedded into the corporate

culture of BSP-supervised institutions. It also expects that these reforms will drive good

behavior and greater market discipline, addressing conflicts that are harmful to the

interests of financial consumers.

The Philippines is at the forefront in advancing financial reporting standards in the

region, having adopted IFRS as early as 2005. This makes it attractive to multinational
companies that prefer to use IFRS rather than multiple domestic standards. The

widespread use of English as a business language magnifies this attraction, especially

when compared with other countries in the region where IFRS adoption is delayed by

the need for translation into the local language.

In addition, the Philippine Securities and Exchange Commission (SEC) introduced its

SEC Oversight Assurance Review Inspection program in 2018 to promote high-quality

audits and enhance confidence in the capital markets.

The BSP is planning further steps to improve standards. It has also been strengthening

its  anti-money laundering and “know your customer” policies for financial institutions,

given the involvement of a local bank in the hacking of Bangladesh’s central bank in

2016. It has also increasingly made officers directly accountable for violations, with

hefty fines imposed and the board replaced in that incident.

In May 2017, the BSP and the International Finance Corporation (IFC), a member of the

World Bank Group, signed a Memorandum of Understanding to enhance capacity and

raise environmental, social and corporate governance standards among Philippine

banks. IFC will support the BSP in improving its assessment tools to promote good

governance and effective risk management in the banking system. It will also contribute

to the BSP’s capacity-building initiatives, particularly in applying the proportionate legal

and regulatory framework.

Such moves should help to improve investor confidence in a growth-oriented economy

that intends to go on defying stereotypes.

A commitment to good corporate governance

A personal view from the EY Country Managing Partner

J Carlitos Cruz, Chairman and Managing Partner, SyCip Gorres Velayo & Co., says:

“Over the last two decades, the Government, regulators and businesses in the

Philippines have been increasingly focused on and committed to promoting corporate

governance. Driven primarily by the SEC and the BSP, corporate governance has

become a significant matter for most boards, in particular for financial services

companies.

“The SEC mandated that companies exercise and report on corporate governance
practices through the issuance of the Code of Corporate Governance in 2002. This was

superseded by a revised code in 2009, with amendments in 2014. Additionally, the SEC

released the Philippine Code of Corporate Governance Blueprint in 2015, which was

followed by the new Code of Corporate Governance for Publicly Listed Companies in

2016. It has also announced its alignment with the ASEAN Corporate Governance

Scorecard principles.

“While the latest SEC guidelines apply to all listed companies, the financial sector has

additional regulations promulgated by the BSP through its Manual of Regulations for

Banks and Manual of Regulations for Non-Bank Financial Institutions, which are

updated regularly to reflect improvements in regulatory requirements. These provide

extensive guidance and compliance information to help financial institutions in the

Philippines promote transparency and accountability.

All stakeholders have demonstrated their resolve and commitment to promote a
strong, healthy and stable banking and financial system. 

J Carlitos Cruz
Chairman and Managing Partner, SyCip Gorres Velayo & Co.
“In August 2017, the BSP issued a circular to provide enhanced corporate governance

guidelines for BSP-supervised financial institutions, amending the Manual of

Regulations for Non-Bank Financial Institutions. This raises the bar on what is expected

from the board of directors and risk management systems, and provides term limits for

independent directors.

“In addition to its partnership with the BSP, the IFC has been working with the SEC in

training 250 representatives of publicly listed companies on best practices in

implementing a new corporate governance code that took effect on 1 January 2017. The

code, which aims to increase the board responsibilities, competence and commitment of

company directors, is among the latest examples of IFC’s contribution to the

development of corporate governance policies and regulations in more than 30

countries worldwide.

“While there is still much work to be done to truly achieve sustainable and effective

corporate governance in the Philippine financial sector, all stakeholders have

demonstrated their resolve and commitment to promote a strong, healthy and stable

banking and financial system.”

JOURNAL ARTICLE

Problems of Economic Development in the Philippines

Thomas R. McHale

Pacific Affairs

Vol. 25, No. 2 (Jun., 1952), pp. 160-169 (10 pages)

Published By: Pacific Affairs, University of British Columbia

https://www.jstor.org/stable/2753534

Preview
Journal Information
Pacific Affairs is a peer-reviewed, independent, and interdisciplinary scholarly journal focussing
on important current political, economic and social issues throughout Asia and the Pacific. Each
issue contains approximately five new articles and 40-45 book reviews. Published continuously
since 1928 under the same name, Pacific Affairs has been located on the beautiful campus of the
University of British Columbia, Vancouver, Canada, since 1961. The journal is committed to
providing to the scholarly community and the world at large high quality research on Asia and
the Pacific that takes readers beyond the headlines and across multiple disciplines.

Publisher Information
Pacific Affairs is a peer-reviewed, independent, and interdisciplinary scholarly journal focussing
on important current political, economic, and social issues throughout Asia and the Pacific. Each
issue contains approximately five new articles and 40-45 book reviews. Published continuously
since 1928 under the same name, Pacific Affairs has been located on the beautiful campus of the
University of British Columbia, Vancouver, Canada, since 1961. The journal is committed to
providing to the scholarly community and the world at large high quality research on Asia and
the Pacific that takes readers beyond the headlines and across multiple disciplines.

JSTOR is part of ITHAKA, a not-for-profit organization helping the academic community use
digital technologies to preserve the scholarly record and to advance research and teaching in
sustainable ways.

©2000-2021 ITHAKA. All Rights Reserved. JSTOR®, the JSTOR logo, JPASS®, Artstor®,
Reveal Digital™ and ITHAKA® are registered trademarks of ITHAKA.

-_______________________________________________________________

Philippines: Private Sector Development: Challenges and

Possible Ways to Go
In the last decade, employment gains from economic growth in the Philippines have been
limited, largely due to the underperformance of the private sector. Success of the services sector
in general, and that of the business process outsourcing industry in particular, shows that
reforms fostering private sector development can be effective. This working paper's objective is
to inform preparation of the Asian Development Bank's country partnership strategy for the
Philippines, 2011-2016. It suggests two specific measures to foster private sector development
for inclusive growth: improving government processes and creating an adequate business
environment. Special attention is paid to infrastructure improvement by advancing a framework
for public-private partnerships. The paper also suggests an approach to foster innovation and
knowledge development by the private sector to contribute to productivity-based growth. It
ends with suggestions on directions, modalities, and approaches that can be used by the
country partnership strategy to support private sector development.
 Solving Development Problems
with Innovative Solutions
Published: 29 May 2020

Here’s what worked and what didn’t for Asian Development

Bank’s first regional technical assistance on innovation.
Overview
Charting an innovation path for socioeconomic development requires thinking outside
the box and an ability to see change as an opportunity and not as a threat.

In December 2015, the Asian Development Bank (ADB) approved $5 million in technical
assistance to strengthen the capacity of developing economies in Asia and the Pacific
to solve development problems using innovative solutions. The project had two parts.
The first comprised five activities across the Transport, Education, Finance, Health and
Water and other Urban Infrastructure and Services Sectors to address development
challenges in selected countries. These activities supported the design and
implementation of ongoing and new loans. The second part involved eight pilot projects
in sustainable transport, health, social development, economic empowerment, gender
equity, and sustainable energy that try out new ideas nested within an existing project,
extending the scope of what they could do within their existing resource envelopes.

This is a summary of Unlocking Innovation for Development(link is external), a report that

highlights the solutions of the activities and pilot projects supported by the technical
assistance as well as their progress and learning opportunities.  

Content
Here is a brief of pilots supported under this project.

Sustainable Transport
 Leveraging a geographic information system platform(link is external) that can assess
road safety improved transport operations in Pakistan. One of the setbacks of the project was
the delay in hiring consultants because of the scoping and selection of projects for activity
assistance.
 To scale up urban transport operations in Fiji, Malaysia, and Thailand, development
plans for sustainable transport, involving traffic planning, pedestrians, and public transport were
made sustainable and IT-enabled(link is external).  The project gave ADB new business
opportunities for expanding urban transport lending.
 Involving youth and using a smartphone app, Safetipin, helped to quickly generate
detailed and gender-sensitive audit data(link is external) to guide the infrastructure upgrade of
the Ha Noi metro line 3 railway. This was a model of inclusion—with the involvement of young
people contributing to social accountability through technology. The project could have been
more effective if it had been introduced either at the metro design stage or once the metro
system was already in use.

Read more.(link is external)

Health
 Empowering staff(link is external) to be more responsive and improve the quality of care
can make public service delivery more accountable. An ADB-initiative in Indonesia made
measurable improvements to education and health-care-related public services by consolidating
and replicating innovative service delivery practices. If the activities had been implemented
across more sites simultaneously, it would have helped make an even stronger case for wider
scale-up.
 Reforming health services and increasing coverage requires evidence-informed
decisions(link is external). Through an innovation pilot, ADB worked with Armenia’s Ministry of
Health to map future trends in human resources for health. The project enabled ADB to
demonstrate to the Government of Armenia that it was a valuable partner in the health sector.
Having a defined output, and giving autonomy to the technical assistance project recipients as
to how this output should be achieved would have prevented the administrative challenges
encountered in the project.  
 Atmospheric water generators(link is external) are doing wonders in Vanuatu. It is a solar-
powered technology that can pull moisture from the atmosphere and convert this to clean
drinking water–one that is of a higher standard compared with existing sources.
 A digital health strategy(link is external) is critical to make sure that e-health solutions are
integrated and do not overlap. The pilot project in Vanuatu played to ADB’s strengths as a
convener of multiple partners who otherwise would not necessarily connect and collaborate with
each other. The initiative can be improved further by linking the digital health strategy with an
investment case for digital health.
 Access to sanitation can be accelerated by bringing development partners and sanitation
entrepreneurs together(link is external). ADB partnered with Toilet Board Coalition to promote
universal access to sanitation. The TBC’s Toilet Accelerator Program supports sanitation
economy entrepreneurs to bring to fruition commercially viable innovations.

Read more(link is external).
 Social Development
 Introducing the graduation approach through group coaching intervention is a cost-
effective way to tackle extreme poverty in the Philippines. The initial $520,000 that was
allocated to this activity catalyzed further funding from three other technical assistance projects
that doubled the resources available for this activity. Some flexibility has to be built in at the start
to allow for unforeseen changes, either to the project itself or to the partners ADB works with.

Read more(link is external).

Economic Empowerment
 Digital financial solutions like cloud-banking(link is external) can scale up financial
inclusion at lower operational costs. Supported by ADB, Cantilan Bank move banking
applications to the cloud to achieve greater operational efficiency and scalability, lower
customer costs and enhance convenience. This has allowed the bank to provide better financial
access to the people and bring in the unbanked into the formal financial system. Had ADB
processes and guidelines been clearer and not as stringent, it would have made the activity run
more smoothly.
 Best practices in coffee production delivered through "edutainment" reality television
series(link is external) improved the quality of coffee produced in Timor-Leste and stimulated
young Timorese to enter the coffee business. A budget big enough to also have a
communications and social media campaign around the TV series would have really brought the
project to life.

Read more(link is external).

Women Empowerment
 Dashboards that provide actionable data can help local governments to better
understand the drivers and services needed to end child marriages in Indonesia. The pilot
shifted the mindset of government counterparts from collecting data to interpreting and using
data for service delivery improvements and achieving development outcomes. Although the
project’s methodology required close collaboration between the dashboard developers and
program managers and decision-makers, this did not happen as much as was needed.

Read more.(link is external)

Sustainable Energy
 To produce more with less energy and to enable consumers to reduce their cost of
electricity consumption, ADB recommended an innovative utility energy services model to the
Government of Thailand. The state-owned electricity distribution utility, the Provincial Electricity
Authority (PEA), will leverage its existing relationship with customers (marketing, funding, billing)
and manage the delivery of energy savings in residential, commercial and public buildings, and
industrial complexes. At the same time, it will partner with third-party providers to enable
efficient and focused service delivery (e.g., audits, sales, and installation management).

Read more.(link is external)

Key Lessons Learned

Innovation should be anchored to a specific need in the country concerned. It is crucial
to clearly identify the problem to be solved or what can be done better.

Buy-in from counterparts, especially government agencies, makes or breaks a project.

Alignment with existing policy objectives is crucial.

Piloting is necessary to see interventions firsthand and learn about their benefits and
shortcomings. Initial scoping does not always lead in the right direction, and new ideas
need flexibility for a more iterative experimentation process to unfold.

Likewise, real innovation funding needs more flexible procurement rules and incentives
for private sector and civil society partners to collaborate. ADB’s standard processes
can be too cumbersome for small innovation projects, leading to implementation delays
that compromise their efficiency.

Resource
Asian Development Bank (ADB). 2020. Unlocking Innovation for Development.(link is external)  Manila.

Philippines: Social
Assistance to Poor
Households, Support for
Small Enterprises Key to
Broad-Based Recovery
MANILA, June 9, 2020— Hammered by natural disasters and the Covid-19
pandemic, the Philippine economy is projected to contract by 1.9 percent in
2020. But there are good chances that the country can bounce back in the
next two years, according to the World Bank’s latest Philippines Economic
Update, released today.

The eruption of Taal Volcano and, most importantly, the global outbreak of
Covid-19 including the strict containment measures against the pandemic
have led to severe disruptions in manufacturing, agriculture, tourism,
construction, and trade, according to the report, titled Braving the New
Normal.

Affecting millions of households nationwide as well as overseas Filipinos, the

cumulative impact of these events on the economy has been broad-based,
steep, and deep, halting investment activity, and leading to the lowest
consumption growth in three decades. Private consumption growth fell to 0.2
percent in the first quarter of 2020 from 6.2 percent last year. The hotel and
restaurant industry suffered the most, contracting by 15.4 percent.

The economic contraction in 2020 will likely cause an increase in poverty.

Containment measures have cut off income streams from seasonal wage
earners and those engaged in entrepreneurial activities in non-agricultural
activities and low-end service jobs, which were the drivers of poverty
reduction in recent years.

“During these difficult times, strengthening the capacity of the health care
system to control the outbreak while protecting poor and vulnerable
households remains an urgent task for the country,” said Achim Fock, World
Bank Acting Country Director for Brunei, Malaysia, Philippines and
Thailand. “Similarly, financial support to affected firms, especially small and
medium enterprises, to prevent job losses and bankruptcy, can help ensure
that the recent shocks do not cause permanent damage to the country’s
productive capacity and human capital.”

According to a rapid survey conducted by the government, 77 percent of

micro and small firms and 62 percent of medium-sized firms had to close due
to the enhanced community quarantines. Those that remained open suffered
a 66.5 percent drop in sales.

The growth forecast for 2020 assumes that the containment measures will
gradually ease in the second half of the year, and economic activities return in
some sectors of the economy. Given income losses and heightened
uncertainty, household consumption and private investment are expected to
remain weak.
However, economic growth prospects and poverty figures are expected to
improve in succeeding years driven by a rebound in consumption, a stronger
push in public investment, supportive fiscal and monetary policies, and the
recovery of global growth. Economic growth is projected to return to above 6
percent in 2021 and 7 percent in 2022. Increased economic activity
surrounding national elections will also boost growth in 2022.

The Philippines’ strong fundamentals, built over decades of structural reforms,

has helped the economy to cope with the COVID-19 pandemic. The
Philippines has abundant external reserves and the lowest public external
debt in the East Asia and the Pacific Region. Also, the country has the highest
reserve ratio in the region, indicating that monetary policy has plenty of room
to inject liquidity into the economy and help boost growth.

Rong Qian, World Bank Senior Economist, said the country’s digital

infrastructure will play a critical role in its economic recovery.

“Measures that restrict mobility, regulate physical contact, and limit business
activity have forced more businesses and families to use the internet for
transactions,” said Qian. “This change in consumer behavior and firm
operations is expected to continue even after quarantines end. To take full
advantage of this situation and help the economy in recovering from the
losses it has suffered due to the lockdown, the country must ramp up its
efforts to accelerate the digitalization of the economy.”

The report highlights the need for the country to improve its digital
infrastructure to ensure reliable and affordable internet service. Among the
recommendations of the report are creating an enabling policy environment
for a competitive broadband market and enhanced access to affordable
internet services throughout the country.