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.