Philippines - Development Policy Review : An Opportunity for Renewed Poverty Reduction

The Philippines regained a modest growth
rate of 3.5 percent per annum for 1999-2001, but has not yet
managed to reduce the incidence of poverty from its 1996
level. The Medium Term Philippine Development (MTPDP) growth
targets of over 5 percent per year are attainable, but only
if the key building blocks for sustained growth - an
environment conducive to increased investment and
productivity within both private and public sectors - are
firmly in place. And it must complement this higher growth
with increased equity to achieve the desired rapid reduction
in poverty. The report identifies priority issues in five
critical areas: 1) continue to strengthen fiscal management;
2) improve governance and public sector functioning; 3)
strengthen private sector development; 4) strengthen and
deepen the financial sector; 5) empower and protect the
poor. None of these five areas is sufficient by itself to
achieve the desired growth with equity. But they are each
necessary and together they form an integrated set of initiatives.