IN FOCUS: Does Bottom-up Budgeting Work?

In 2012, the Philippine government through the Department of Budget and Management (DBM) started implementing the Bottom-up Budgeting (BUB) process, which is also known as  Grassroots Participatory Budgeting (GPB). The BUB is a reform measure that aims to encourage ordinary citizens to actively participate in crafting the national budget. In the past, a top-bottom approach was the norm, with government officials at the national level deciding where public funds should go. With the BUB, citizens have a say in identifying projects they deem beneficial for their localities.

The BUB was initially intended for the poorest municipalities identified by the Cabinet’s Human Development and Poverty Reduction Cluster. In 2014, it was expanded to cover 1,233 municipalities and cities and was extended to all municipalities and cities across the country in fiscal year 2015. || Read more >>

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Latest Publications


Industrial Policies and Implementation: Philippine Automotive Manufacturing as a Lens (DP 2015-39)

Social Enterprises and Employment: Mainstreaming SMEs and Employment Creation (DP 2015-38)

Doing Business: A Review of Literature and Its Role in APEC 2015 (DP 2015-37)

The BPO Challenge: Leveraging Capabilities, Creating Opportunities (DP 2015-36)

Furthering the Implementation of AEC Blueprint Measures (DP 2015-35)

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Featured Publications

ECONOMIC POLICY MONITOR 2014: EFFECTIVE REGULATIONS FOR SUSTAINABLE GROWTH

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This fifth issue of the PIDS Economic Policy Monitor (EPM) highlights the importance of regulatory coherence and quality to realize rapid, sustainable, and inclusive growth. For the Philippines to take advantage of increased trade and investment under ASEAN integration, there is a need to address the factors that bring down its competitiveness and undermine the efforts toward greater inclusiveness. Regulatory burdens are one of those factors. The theme chapter of EPM 2014 examines the case for developing a sound and efficient regulatory management system (RMS) for the country. An RMS is the best step toward reducing regulatory burdens and improving the quality of regulations. The Philippines has a system that contains some of the basic elements of an RMS but these do not represent a coherent and coordinated system nor are these elements regularly undertaken. || Read more >>


REGULATING POLITICAL DYNASTIES TOWARD A MORE INCLUSIVE SOCIETY

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Political dynasties result when a family retains at least one elective position over successive election cycles, and/or when a family expands its number of family members in elective office. This Policy Note discusses why they need to be regulated and describes international practices on regulating political dynasties. It also summarizes the current efforts of legislators in passing an antidynasty law, and how such a legislation may facilitate a more inclusive society. An antidynasty law may be an avenue to improve the quality of political parties by increasing everyone`s access to political participation. Greater access by the people not only to growth processes but also to political processes by passing a legislation that regulates political dynasties will further strengthen our democracy and promote inclusiveness. || Read more >>


BOTTOM-UP BUDGETING: PEOPLE'S PARTICIPATION AT WORK

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As part of the government's effort to pursue sustained and inclusive growth and, at the same time, promote good governance at the local level, the Bottom-up Budgeting (BUB) exercise--also called the Grassroots Participatory Budgeting (GPB) process--was initiated in 2012. It is a reform measure that aims to make the national budget a participatory process. Through the BUB, the government hopes to involve citizens in identifying projects that they believe will be beneficial for their own communities. This Economic Issue of the Day discusses the concept of participatory budgeting and how it works. Specifically, it looks at the Philippine government's BUB process from planning to implementation of projects. Initial findings of an initial evaluation by PIDS in 12 municipalities and cities in four provinces representing Luzon, Visayas, and Mindanao were also discussed. || Read more >>


WHY WE SHOULD PAY ATTENTION TO THE MIDDLE CLASS

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This Policy Note describes the middle class and provides its contributions to economic growth. It adopts an alternative definition by dividing the income distribution based on official poverty lines. To maximize the role of the middle class in growth and development, it is important to make the middle class a stable force to sustain the growth of the Philippine economy. To do so, the government should find more avenues to attract investments that will create more and better-quality jobs, such as tapping the corporate social responsibilities of major companies to generate more and better-quality jobs for the middle class. The proposed income tax reform will likely bolster the income share of the middle class. This income boost will provide an opportunity to capitalize on domestic demand-led growth spurred by domestic consumption. || Read more >>


TOWARD REGIONAL COOPERATION FOR THE SUSTAINABLE DEVELOPMENT OF THE EAST ASIAN SEAS

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In an era where development issues concerning human security, health, and the environment transcend national boundaries, international cooperation has become more crucial than ever. This issue of the Development Research News explores this theme in which various facets of collaboration in addressing transnational and local concerns are presented, particularly in the areas of resource management, research, and policy development. The price of noncooperation is high, as the banner article on the East Asian Seas shows. In the absence of a coherent cooperative management arrangement, the unsustainable and illegal exploitation of resources in the South China Sea will continue. With or without territorial disputes, sustainable development should remain both a national and an international goal. A good example of mutual cooperation in development is regional cooperation in research and capacity building, as exemplified by the East Asian Development Network and the APEC Study Centers Consortium. This issue reports on the recent activities of these two regional research platforms. || Read more >>


REVIEW AND ASSESSMENT OF PROGRAMS OFFERED BY STATE UNIVERSITIES AND COLLEGES

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The state universities and colleges (SUCs) in the Philippines have always been a major issue mainly because of the poor quality of education that most of them offer, the undeveloped management and financial systems, and the inequality of access. And yet the government has been providing them considerable funding support primarily due to the importance of tertiary education in promoting human development and improving the economy`s competitiveness. A review of the mandates of the various SUCs in the selected regions covered by this study indicates that the mandates are fairly broad, to start with. But beyond this, the charters of most SUCs allow them to offer programs outside of their core mandates. Given the broad mandates of SUCs, there is a substantial duplication in their program offerings. One recommendation therefore is for the Commission on Higher Education to enforce more vigorously its policy of closing existing programs of SUCs and private higher education institutions that perform under par year after year. || Read more >>


PHILIPPINE JOURNAL OF DEVELOPMENT SPECIAL VOLUME ON HEALTH

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The Aquino Health Agenda of 2010 articulates succinctly the Philippine health sector's aim for universal health coverage. The agenda has three thrusts: rapid expansion of enrollment and benefit delivery using subsidies for the poorest families, improved access to quality hospitals and health-care facilities, and attainment of health-related Millennium Development Goals through additional effort and resources targeted to the most critical areas in the country. Years after the launch of the agenda, the Department of Health collaborated with key institutions to implement the Health Systems Research Management (HSRM) Project, with the Philippine Institute for Development Studies as one of the collaborators. Through this HSRM project, several research projects were carried out, providing critical updates and new information on the progress of the health sector's Aquino Health Agenda. Several of these critical updates and new information are presented in this special volume of the Philippine Journal of Development. The volume focuses on health financing and service delivery, particularly PhilHealth coverage, household spending for health, and health infrastructure. || Read more >>



Press Releases

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PIDS LAUNCHES NATIONAL CELEBRATION OF 13TH DEVELOPMENT POLICY RESEARCH MONTH

The Philippine Institute for Development Studies kicked off the month-long celebration of the Development Policy Research Month at a press conference on September 1, 2015. An annual national advocacy promoting evidence-based policy research, the DPRM focused its 13th year on the pressing theme of Effective Regulations for Sustainable Growth. Dr. Gilberto Llanto, PIDS president, presented his study, Reducing Regulatory Burden, Improving Regulatory Quality. He was joined by r || Read more >>


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NEW PARTNERSHIP SEEKS TO STRENGTHEN USE OF RESEARCH EVIDENCE FOR POLICYMAKING IN MINDANAO

State think thank Philippine Institute for Development Studies (PIDS) and Mindanao Development Authority (MinDA) are set to begin a new development partnership this September, a most opportune time as the Philippine bureaucracy celebrates the 13th Development Policy Research Month (DPRM). On September 4, PIDS President Dr. Gilberto Llanto and MinDA Chairperson Undersecretary Lualhati Antonino will sign an agreement that will promote policy research and knowledge sharing in || Read more >>


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SMES TO GO INTERNATIONAL NEED ACCESS TO FINANCE, TECHNOLOGY, AMONG OTHER FACTORS

Continuing with the themed focus on small and medium enterprises (SMEs), state think tank Philippine Institute for Development Studies (PIDS) hosted Dr. Ganeshan Wignaraja, an advisor to Asian Development Bank, to present on SME Internationalization and Finance in Asia at a PIDS Pulong Saliksikan. Picking up where Dr. Mario Lamberte and Ms. Ammielou Gaduena discussed SMEs and access to finance in a previous seminar, Wignaraja expounded on the state of SMEs across the || Read more >>


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STUDY RECOMMENDS NUANCED APPROACH FOR APEC’S ENVIRONMENTAL GOODS INITIATIVE

A paper released by state think tank Philippine Institute for Development Studies (PIDS) was delivered this week at the second ministerial meeting of the Asia Pacific Economic Community (APEC). Written by Dr. George Manzano and Ms. Shanti Aubren Prado, PIDS consultants, Evaluation of the APEC Environmental Goods Initiative: A Dominant Supplier Approach assesses the list of 54 environmental goods and services that the APEC promised in 2012 to liberalize by the end of this ye || Read more >>


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PHILIPPINES` FINANCIAL SECTOR LAGGING BEHIND IN ASEAN

The Philippines` financial sector has a lot of catching to do to improve its competitiveness and be at par with the frontrunners of the Association of Southeast Asian Nations (ASEAN). Improved financial education and financial literacy, and reform policies to strengthen financial inclusion of small and medium enterprises (SMEs) should be at the heart of policy reforms to achieve the critical improvements necessary to gear up for the ASEAN Economic Community. These were ex || Read more >>


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THE POWER OF SOCIAL ENTERPRISE

Social enterprises can help enhance the role of small and medium enterprises (SME) in sustainable economic development, claims a recent study released by the Philippine Institute for Development Studies. Written by PIDS consultant Leonardo A. Lanzona, Jr. of the Ateneo de Manila University, "Enterprises and Employment: Mainstreaming SMEs and Employment Creation" explores the theory and recommends policies to empower both areas of enterprise. While there is strong belief || Read more >>


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