Some illustrative issues and areas that EMERGE and the IGPD may address are the following:
-
Trade, Investment, and Competitive Structure
Domestic and International Trade
Investment and Private Sector Development
Sustainable Fiscal Management
Other Policy Areas
1.TRADE, INVESTMENT AND COMPETITIVE STRUCTURE
Historically, the Philippine economy has been dominated by a few oligopolistic groups who are protected from domestic and international competition. These groups shaped and maintained the oligopolistic economic structure though a blend of political influence, market division, protection from international competition and the exploitation of nationalism for personal gain. Some steps have been taken to increase competition since 1990, but the extent to which the oligopolistic structure has been deconcentrated is unclear.
2.DOMESTIC AND INTERNATIONAL TRADE
WTO technical assistance: Provide assistance to the GRP to facilitate implementation of WTO commitments. Illustrative areas for such assistance might include customs valuation, Kyoto-consistent customs procedures, anti-dumping and safeguards, government procurement, sanitary and phyto-sanitary measures, and rules of origin.
Tariff and non-tariff barrier reduction: Assist as appropriate additional GRP-initiated trade liberalization actions. These might include: facilitating movement towards a single tariff of five percent by 2004; accelerating reduction of tariffs on sensitive items; estimating the economic costs and otherwise making explicit how Minimum Access Volume trade restrictions generate economic rents for a few special interests; and examining government policies that increase production costs.
Agriculture: Promote continued liberalization of Philippine agriculture policy, including import restrictions, policies that relate to growth and diversification of production in agriculture, agricultural input supply, agro-processing and marketing of agricultural products, and increasing competition.
Inter-Island and overland transportation: Increase competition and private sector involvement in port management and cargo handling services; further liberalize and deregulate inter-island shipping operations; decrease regulatory obstacles to overland transportation; and increase private investment in port facilities and operations.
3.INVESTMENT AND PRIVATE SECTOR DEVELOPMENT
Financial market development: Support measures to increase market intermediation, deepen and expand financial markets - including long-term finance, corporate and secondary bond markets, securities markets, mutual funds and mortgage funding; continue measures to improve financial market integrity; facilitate GRP accession to the WTO Financial Services Agreement.
Private investment in public infrastructure: Explore ways to increase private investment in public infrastructure including identification of disincentives to private investment in public infrastructure such as legal restrictions on foreign investors, timeliness of acquisition and security of property rights. Determine what are best practices for regulated monopolies and efficient pricing models are, and consider the mutually beneficial implications of expanding private infrastructure investment and developing the long-term capital market.
Intellectual property rights: Assist GRP efforts in implementation and enforcement of IPR.
Telecommunications development: Work selectively to increase competition within the industry, possibly in the areas of interconnection, cost-based pricing and encouraging competition within regions.
4.SUSTAINABLE FISCAL MANAGEMENT
Fiscal Policy: Assist the GRP in improving its tax and expenditure policies. Regarding tax policy, focus on increasing GRP capacity to assess and adjust its tax structure so as to keep pace with structural change in the economy. Regarding expenditure policy, focus on increasing GRP capacity to allocate fiscal revenues to economic and social infrastructure investment supportive of private sector trade and investment, and to promote greater operational efficiency in the provision of such economic and social infrastructure services.
Tax administration: Assess the strengths and weaknesses of Philippine tax administration and, based on this review, provide targeted technical assistance to address, selectively, those aspects deemed critical to its improvement.
LGU Financial Management and Planning: As local governments are key partners of the national government in achieving overall economic growth, there is a need for the provision of technical assistance and policy services to LGUs in the area of financial management and planning. Among others, such areas may include tax administration; budgeting, accounting and procurement systems; and development planning and financing.
5. OTHER POLICY AREAS:
Additional areas that might be supported include:
a) build-operate-transfer arrangements,
b) microfinance policy,
c) electronic data interchange,
d) development planning and improvement of economic
statistics, and
e) industrial relations.