Cancun and Its Aftermath: What Does It Mean?

When the WTO talks in Cancun broke down last September, anti-globalization groups and NGOs around the world rejoiced. However, the author of this Policy Notes cautions that the collapse is no reason to celebrate because it only means that every country would suffer, with some having to suffer more than others. In the end, they claim that the real losers are the developing countries, especially the smaller and weaker ones. Why? What are the more telling issues? Read more in this Notes.World Trade Organization, tariff reduction, competition policy, agricultural subsidies

Why Cement Prices Remain High despite Zero Tariffs

Trade reforms, in particular reduction and/or removal of tariffs on imports, are aimed to bring about lower prices of certain goods. In the case of the cement industry, though, despite the government’s imposition of zero tariffs on cement imports, the price(s) of cement continued to rise unabatedly. Why? What explains this? Read on...Philippines, cartel, cement industry, cement prices, zero tariff

EC 1992: Its Impact on Trade and Investment in the Philippines

One of the recent European developments is the plan of creating a single market implying the removal of obstacles to trade in goods, services, capital and labor. Hence, it is worthwhile to examine the impact of such move to a small country like the Philippines, the growth of which depends largely on foreign trade and investment. Analysis indicates the intensification of trade and market competition, which in turn, have positive impact on electronic component of Philippine exports. This move also represents a huge market for the country’s products. To benefit from EC 1992, the Philippines has to take the initiative to diversify and start looking for fresh markets.trade sector, liberalization, investment, European market

Regulatory Policies and Reforms in the Power and Downstream Oil Industries

This paper looks at the regulatory reforms in the electricity and downstream oil industries, two important inputs to the production process that were heavily regulated by the government. While electricity has strong externalities as well as economies of scale and scope, the oil industry does not exhibit natural monopoly characteristics nor does it display economic features that would warrant government regulation. The paper also analyzes the economic theories underlying these reforms: why is regulation necessary, what are the different forms of regulation, and how can these policy reforms bring about competition? It also identifies the emerging issues and problems associated with the regulatory reforms. Given our little experience in the effective use of public regulation in a market-driven setting, research is needed to provide a deeper understanding of these issues within the context of our economic, institutional, and political structure. This is necessary in order to come up with possible approaches to overcome our weaknesses and shore up weak administrative and enforcement capacities.electricity and power, economic regulation, regulatory reform, downstream oil

EC 1992: Its Impact on Trade and Investment in the Philippines

One of the recent European developments is the plan of creating a single market implying the removal of obstacles to trade in goods, services, capital and labor. Hence, it is worthwhile to examine the impact of such move to a small country like the Philippines, the growth of which depends largely on foreign trade and investment. Analysis indicates the intensification of trade and market competition, which in turn, have positive impact on electronic component of Philippine exports. This move also represents a huge market for the country’s products. To benefit from EC 1992, the Philippines has to take the initiative to diversify and start looking for fresh markets.trade sector, liberalization, investment, European market

Regulatory Policies and Reforms in the Power and Downstream Oil Industries

This paper looks at the regulatory reforms in the electricity and downstream oil industries, two important inputs to the production process that were heavily regulated by the government. While electricity has strong externalities as well as economies of scale and scope, the oil industry does not exhibit natural monopoly characteristics nor does it display economic features that would warrant government regulation. The paper also analyzes the economic theories underlying these reforms: why is regulation necessary, what are the different forms of regulation, and how can these policy reforms bring about competition? It also identifies the emerging issues and problems associated with the regulatory reforms. Given our little experience in the effective use of public regulation in a market-driven setting, research is needed to provide a deeper understanding of these issues within the context of our economic, institutional, and political structure. This is necessary in order to come up with possible approaches to overcome our weaknesses and shore up weak administrative and enforcement capacities.electricity and power, economic regulation, regulatory reform, downstream oil

PLDT-Sun Acquisition: Good or Bad?

Will the recent PLDT acquisition of Digitel (Sun) lead to better benefits for the general public in terms of the telecommunications aspect? How will it affect overall competition in the industry? This Policy Note examines the situation more closely.competition, Philippines, climate information, communication, telecommunications sector, telecommunications companies, mergers and acquisitions

The Autobus Is Leaving...Can the Philippines Catch It?

How ready is the Philippines' automotive industry to face the zero tariff environment under the AFTA by 2010? And is the industry prepared for the globalization process? This Policy Notes calls for immediate government action in crafting temporary adjustment measures as well as the formulation of a comprehensive program--in coordination with the industry--to help the industry in this situation.globalization, automotive industry

Global Governance and the Reduction of Poverty and Inequality in the Post-MDG Era: How Can the ASEAN-Japan Partnership Contribute?

In 2000, the ASEAN member countries signed the UN Millennium Declaration to eradicate extreme poverty in the world by 2015 through the achievement of the Millennium Development Goals (MDGs). The MDGs represented the global vision of reducing poverty in its various dimensions, and they were mainstreamed in the process of building the ASEAN Socio-cultural Community, which had a similar target date of 2015.1 The new Sustainable Development Goals (SDGs) framework approved in 2015 goes beyond the MDG agenda, which focused solely on poverty, to also include inequality. In recent years, inequality has been worsening amidst rapid economic growth and falling poverty rates. Inequality can reduce the impact of economic growth on poverty reduction. Conversely, reduced inequality will increase the efficiency of poverty reduction. Unequal societies and countries can achieve a high level of growth but cannot sustain it. Thus, addressing inequalities will help in attaining and maintaining growth, which in turn is a necessary condition for reducing poverty. Furthermore, reducing inequality will help in easing social tensions, deepening social capital, and improving peace and order, which are all crucial to poverty reduction, thus also making growth more inclusive. At the heart of the post-2015 framework to address poverty and inequality is the adoption of an inclusive and sustainable growth model. Inclusive growth is growth that is broad based and benefits the majority of the population. One of the primary goals of the ASEAN-Japan Comprehensive Economic Partnership signed in 2008 is the establishment of a “framework for the enhancement of economic cooperation among the Parties with a view to supporting ASEAN economic integration, bridging the development gap among ASEAN Member States, and enhancing trade and investment among the Parties.” This was reiterated in the Bali Declaration of 2011, which “reaffirm(ed) the commitment of ASEAN and Japan to work closely in supporting ASEAN integration and narrowing the development gap in the region, and reaffirm(ed) the support of the Government of Japan in the implementation of the Master Plan on ASEAN Connectivity, with a view to intensifying the flow of trade, investment, tourism and people-to-people interaction.”2 Within this context, the main objective of this chapter is to propose measures for how the ASEAN-Japan partnership can contribute to the global governance of reducing poverty and inequality in the post-MDG era. It attempts to address the following questions: How can the ASEAN-Japan partnership tackle global poverty and inequality to ensure that economic growth is inclusive and benefits the greatest number of people? And how can the ASEAN-Japan partnership contribute to harnessing economic growth for a more equitable distribution of opportunity and income

"No" to Policy Reversal: Backsliding in Tariff Policy Can Do More Harm than Good

In recent months, growing evidence has shown that there seems to be an apparent trend for backsliding or reversal of the government policy on tariff reduction. Why is this happening? And what is its implication? The authors claim that backsliding in the government's tariff policy can do more harm than good--this Notes explains why.trade liberalization, trade reforms, tariff reduction, tariff policy