Philippines: from crisis to opportunity

Abstract

This County Assistance Review (CAR) examines the Bank's assistance to the Philippines since 1986, a turning point in the economic and social policy landscape of that country. During the past dozen years, the Bank assistance strategy has moved from economic recovery to poverty alleviation, in line with government and Bank priorities. Bank assistance has been both relevant and satisfactory at the macro level, and in private sector development, financial sector strengthening, and municipal development. But its relevance and efficacy in other sectors has been uneven. To help the economy reach its growth potential, fortify its resilience to domestic and global exigencies, and reduce poverty more quickly, the government must pursue and deepen its reform agenda. The challenge ahead is fivefold: a) strengthening economic management; b) expand private sector and infrastructure development; c) accelerate rural development and attack poverty aggressively; d) revisit human development; and e) mobilize partnerships. The Bank should increase the selectivity of its nonlending assistance to improve the depth of its analysis and to increase participation. Lending assistance should be well coordinated with other donors, and larger in scale to support the unfinished reform agenda and the additional investment needs through quick disbursing operations, financial intermediary loans, sector investment loans, guarantees, and new adaptable lending instruments.