GOVPH

By metro areas. Metro Manila has the worst traffic congestion among metro areas in the world according to the 2023 TomTom Traffic Index. Out of 387 cities across 55 countries, Metro Manila registered the longest average travel time to traverse a ten (10)- kilometer route (e.g., Cubao to Makati) at 25 minutes and 30 seconds. This is higher compared to the 24 minutes and 40 seconds average travel time in 2022. The other metro areas which topped in traffic congestion are Lima (Peru), Bengaluru (India), Sapporo (Japan), and Bogota (Colombia).

Official Development Assistance (ODA) plays a vital role in driving the socioeconomic progress of developing countries such as the Philippines. It provides additional funding for a wide range of projects, including infrastructure, education, healthcare, and environmental sustainability. However, challenges remain, as pointed out by the National Economic and Development Authority in its annual ODA Portfolio Review. One significant issue highlighted is the delays experienced in ODA projects, often due to procurement-related issues. This CPBRD note explores these challenges, focusing on recent experiences with the implementation of selected ODA projects and the hurdles encountered in the procurement process.

As the world recovers from the COVID-19 pandemic, attracting foreign direct investments or FDI has emerged as an important source for sustaining economic recovery in many developing countries. However, regulatory restrictions pose a challenge, limiting countries’ capacity to attract and benefit from FDI. This paper principally examines the impact of foreign restrictions on inward FDI in the ASEAN-5, namely, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Data on FDI are based on the top 20 FDI source countries. Using an augmented gravity model for the period 2010 to 2020, this paper shows that reforms aimed at liberalizing FDI equity restrictions as measured by the index could potentially increase inward FDI. Moreover, host countries with greater geographical distance, higher corporate tax rates and inflation rates are likely to deter FDI due to increased costs for foreign investors. Larger market sizes, stronger perception that government corruption is controlled and greater quality of human capital also play significant roles in attracting FDI. By addressing regulatory barriers, particularly foreign equity restrictions and considering other factors deterring FDI, ASEAN-5 countries have the potential to substantially increase their level of inward FDI, unlock associated benefits, and accelerate their post-pandemic recovery.

The minimum wage (MW) policy has long been a contentious social policy tool. Despite this, most countries have some form of MW policy. In ASEAN, most of the definitions and purposes of the policy are a balance of protecting the workers’ welfare (i.e., protection of the low-skilled and low-earners from unduly low pay) and ensuring that the country’s economic goals and targets are being achieved. Meanwhile, the coverage and mechanisms vary. While there is no consensus on the “right” mechanism to make the MW policy work, best practices and learnings from international experience can still provide valuable insights on how to improve the effectiveness of the policy. Enhancements in terms of clarifying the objectives of the MW policy, improving transparency in the adjustments process, conducting regular reviews and assessments to ensure the relevance of the MW, strengthening collective bargaining mechanisms, and deepening the capacity of enforcers, among others, are some of the ways through which the policy can be modified. As the body of literature examining the effects of the policy abounds, the contention on the usefulness of the MW policy has largely become an empirical question rather than a theoretical one. This stresses the importance of grounding policy modifications – whether it be in terms of the actual level, coverage, purpose, or adjustment mechanism – to an up-to-date, evidence-based approach.

In response to the growing concerns about health-related issues associated with sugar-sweetened beverage (SSB) consumption, policymakers have turned to imposing taxes on such beverages. These taxes aim to address both health-related internalities and externalities associated with SSB consumption. This policy brief assesses the current volumetric SSB tax regime as introduced under the TRAIN Law beginning 2018. It raises concerns about the current tax regime’s ability to curb SSB consumption and promote desirable health outcomes due to its failure to differentiate across products with significantly different health risks based on sugar content. The paper therefore argues that a sugar content tax regime is more effective in giving consumers price signals that clearly distinguishes between high-sugar, high-risk SSBs and low-sugar, low-risk SSBs. Moving towards a sugar content-based taxation approach, supported by appropriate legislation on consumer education, holds the potential to optimize health outcomes while minimizing unintended consequences.

The discussion paper aims to provide an estimate on the cost of implementating HB 7354 which proposes to establish an evacuation center in every city and municipality. It focuses on measuring the cost to establish an evacuation center in localities with no such center that fit the facility standard based on the DILG database. The paper made use of a sample costing of a two-story standard evacuation center from DPWH with costs updated to current prices, and later used to calculate the nationwide implementation of the proposed measure after adjustments in regional prices. Also discussed in the paper are financing options involving partnerships with the private sector and local governments to bridge the funding gap for the establishment and eventual maintenance of the facilities.