The Philippine microfinance industry has developed over the years. From only a few large microfinance institutions (MFIs) with less than a million clients in the late ’90s,the industry has now more than 2,000 MFIs with almost 7 million clients. Large commercial banks, which used to ignore the...

The 1991 Local Government Code devolved substantial spending, taxing, and borrowing powers to local government units (LGUs). Moving governance closer to the people can generate a welfare gain, but local governments must have adequate revenues to finance local development. The paper examines the...