Friday, July 01, 2005
Enabling Rural Enterprise in the Philippines
By: The Enterprise Research Institute
For: The World Bank, 2002
The working principle underlying this study is that many incentives and disincentives to the creation and success of rural business exist but only a small number are critical to the immediate performance of rural businesses. Accordingly, the intent of this report is to identify and describe in some detail only the most important constraints facing rural business and suggest ways in which these constraints can be overcome. The report is intended to have immediate, practical value for the policy discussion on rural development. The report begins by providing an overview of the Philippine economy – both the national and rural economy. In addition, it discusses the relationship between the rural sector and the government and provides some initial insight into some of the constraints that are faced by the rural economy in the Philippines and the environment that is necessary for this sector to thrive. Once this context is established, the paper reviews property rights – a critical component of rural development. The land reform program in the Philippines is discussed to determine whether it has supported or undermined those rights. The infrastructure sector of the Philippines is reviewed then the impact of the capital markets, particularly access to credit and the impact of interest rates. Finally, an examination of the World Bank’s activities in the Philippines is conducted with the ultimate aim of providing policy and future project recommendations that will support enabling the rural economy.
For: The World Bank, 2002
The working principle underlying this study is that many incentives and disincentives to the creation and success of rural business exist but only a small number are critical to the immediate performance of rural businesses. Accordingly, the intent of this report is to identify and describe in some detail only the most important constraints facing rural business and suggest ways in which these constraints can be overcome. The report is intended to have immediate, practical value for the policy discussion on rural development. The report begins by providing an overview of the Philippine economy – both the national and rural economy. In addition, it discusses the relationship between the rural sector and the government and provides some initial insight into some of the constraints that are faced by the rural economy in the Philippines and the environment that is necessary for this sector to thrive. Once this context is established, the paper reviews property rights – a critical component of rural development. The land reform program in the Philippines is discussed to determine whether it has supported or undermined those rights. The infrastructure sector of the Philippines is reviewed then the impact of the capital markets, particularly access to credit and the impact of interest rates. Finally, an examination of the World Bank’s activities in the Philippines is conducted with the ultimate aim of providing policy and future project recommendations that will support enabling the rural economy.