Philippines must solve structural problems that keep Filipinos poor—WB

Philippines must solve structural problems that keep Filipinos poor—WB

A reiterated message, this time from the WB, about the unpredictablity of regulations. In this analysis, the structural problems identified are in fact some unresolved issues in macro-economic policy and policy implementation.


"In its latest quarterly report on the Philippines, the World Bank said the country should work on graduating from merely achieving and sustaining macroeconomic stability to affording most Filipinos prosperity.


"“The government has done a really good job in achieving macroeconomic stability. But there are structural impediments that have to be addressed … to achieve a more inclusive growth and to reduce poverty at a faster pace,” Karl Kendrick Chua, World Bank’s country economist for the Philippines, said on Monday, in a press conference on the details of the report.


"The structural impediments to poverty reduction in the Philippines, according to Chua, include unpredictability of regulations; the absence of a level playing field for businesses in terms of taxation; high cost of electricity; high cost of and tedious processes involved in starting a business; limited access to financing for micro, small and medium enterprises; and limited access to education and skills training."