Policy Research Helping Provide Affordable Rice to Filipinos

2004 PIDS Annual ReportPolicy Research:Helping Provide Affordable Riceto FilipinosPhilippine Institute for Development StudiesSurian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Philippine Institute for Development StudiesTHE INSTITUTEThe Philippine Institute for Development Studies (PIDS) is a nonstock, nonprofit government researchinstitution engaged in long-term, policy-oriented research. It was established on September 26, 1977 byvirtue of Presidential Decree No. 1201.PIDS is envisioned to be a development policy “think tank” for planners, policy- and decisionmakersin government. In serving this role, PIDS has tapped and encouraged the existing reservoir of researchresources in the Philippine academic community to become productive in research lines considered byPIDS to be of high priority, without drawing them away from the academic and research institutionswhere they are based. It has likewise built its inhouse research staff.Through the Institute’s activities, it is hoped that policy-oriented research on social and economicdevelopment can be expanded to assist the government in planning and policymaking.TABLE OF CONTENTSiiThe InstituteiiThe President’s MessageiiiResearch and Research-Related Activities 1Research Disseminationand Utilization 11Management Information 16PIDS Provident Fund 17PIDS Employees Association 19AnnexesA Completed Studies 21B Ongoing Studies 23C Publications 26D Public Affairs 29E Media Exposure 32F Audit Certificate 44G Balance Sheet 45H Income Statement 46I Statement of Cash Flows 47J Notes to PIDSFinancial Statements 48K Board of Trustees 50L Local Advisory Board 50M Management Committee 51N Research Fellows 51O Research Associates 52P Affiliated Researchersand Institutions 53PIDS Provident FundQ Independent Auditor’sReport 55R Comparative Statementof Financial Condition 56S Comparative Statementof Operations 56T Statement of Cash Flows 57U Notes to Financial Statements 58PIDS Employees AssociationV Statement of FinancialCondition 59W Statement of Operations 59

2004 Annual ReportTHE PRESIDENT’S MESSAGEExcellent. This defines the performance of theInstitute in 2004. With almost 400 outputs—thebiggest number since 1978—to its name, theInstitute defined productivity this year by comingout with more research studies, more publications,more seminars, and more media exposure. This isthe Institute’s 27 th year of existence and so far, ithas produced close to 4,000 contributions topolicymaking in various formats.Numbers, in terms of outputs—albeit the fact thatthey are regarded with respect by the Institute andthe research community—are nevertheless renderedinutile if they do not correspond to meaningfulstories to convey and if they do not lead toreforms in mindsets and actual policy decisions.Which is why the Institute—and the research community—considers it a continuing challenge to be ableto interact with key decisionmakers so that the latter can arrive at evidence-based policy decisions.This is the essence of the Institute’s central involvement as coordinator and lead institution in theannual observance of the Development Policy Research Month (DPRM). Linked very closely with thepursuit of its mandate to produce and disseminate policy studies, the Institute—in celebration of thesecond year of the DPRM in 2004—made the rounds of television and radio shows and discussed theimportance of policy research to a country that has a path to pursue. Our economy has been somewhatweakened by the uproar of the election aftermath. Everyone wants to be heard and be proclaimed thevictor. Everyone seems to indicate that he or she has the exact medicine for the political and economicails of the country. Without laying claims to having any of such kind of medicine, what the Institute,together with the rest of the research group, simply wishes to stress, though—through its researchoutputs—is that it would be a welcome turn for the nation to follow a well-researched and wellgroundeddirection to economic recuperation.The Institute thus takes on the responsibility of generating rigorous researches. And lives for this goal.This is the story behind our stories.MARIO B. LAMBERTE, Ph.D.Presidentiii

RESEARCH AND RESEARCH-RELATED ACTIVITIES2004 Annual ReportIn terms of the number of research outputs,the year 2004 has been the most productiveyear for the Institute since its establishmentin 1978. The Institute completed a record 73research studies, 26 of which are from the PhilippineAPEC Study Center Network (PASCN). A goodnumber of these studies focuses on the Philippine-Japan trade relations as well as on the country’s competitionpolicies for various sectors. Meanwhile,there are 62 ongoing studies as of the end of 2004.Twenty-three of these are expected to come fromthe PASCN. The following section is a summary ofthe completed outputs classified according to theresearch thrusts of the Institute.COMPLETED STUDIESSocial Sector ReformThe study titled Rice reform and poverty in the Philippines:a CGE analysis employs a computable generalequilibrium (CGE) model to analyze the possiblepoverty and distributional effects of the removal ofquantitative restrictions (QRs) and the reductionin tariff on rice imports by the end of 2004. Policyexperiments indicate that while market reforms inrice lead to a reduction in the overall headcountpoverty index, both the poverty gap and the squaredpoverty gap indices increase. The Gini coefficientincreases as well. In general, these results imply thatthe poorest of the poor are adversely affected. Inparticular, while market reforms in rice bring abouta reduction in consumer prices that is favorable toall, imports of rice surge and generate displacementeffects on poor households that rely heavily on agriculturefor factor incomes, particularly on palayrice production and other related activities. Palayproduction and its output price decline. This translatesto lower demand for factor inputs in the sector,lower factor prices in agriculture, and lowerfactor incomes for these households. Thus, povertyin these groups as well as the general income inequalitydeteriorate. However, the results of the experimentsinvolving various poverty-offsetting measuresindicate that an increase in direct governmenttransfers to these household groups can provide abetter safety net.From the Population, urbanization and local governanceproject, nine studies (the main report andeight case studies) were completed. The main reportpresents the process and state of urbanizationin the country vis-à-vis other Asian countries; discussesthe policy environment and other factors thataffect urbanization; examines the extent of LGUs’involvement in managing urbanization, particularlyin terms of the nature of their responses regardingservice provision, local policymaking, planning andmonitoring, and resource mobilization; and identifieslessons on urbanization and local governancebased on eight case studies.The first case study is on Olongapo City. The experienceof Olongapo City in managing economic dis-1

Philippine Institute for Development Studies2tress due to the loss of its economic anchor, theSubic Bay Naval Base, offers a rich lesson in localgovernance on how critical it is to plan ahead. Therisk of a severe downturn, primarily due to economicdependency, can be successfully shunned if thegroundwork for recovery is immediately put inplace. While population movements may exacerbatethe situation and imperil finances, it is still possibleto maintain a high quality of service delivery giventhe correct priorities.The second study is on Tagum City where populationprocesses and outcomes (in this case, urbanization)influence and change the development ofan area and vice versa. The city’s growing economyis presumed to be attracting a considerable movementof people that presents both opportunities andchallenges for the local government. The well- developedtransportation network and the gold rushin the early 1980s have contributed to the developmentof the city. Rapid urbanization soon ensued.Population increase has slightly slowed down in recentyears but is still above national and regionalaverages, with the increase mostly attributed to highbirth rates. The city especially puts heavy emphasison infrastructure, which by and large, has so farshaped its development. Tagum’s local governmentis credited for taking bold steps (notwithstandingthe short electoral calendar) in influencing its developmentpath—from massive infrastructure developmentright after its elevation to a city, to the initiationof fiscal discipline in its economic enterprisesand of measures in increasing local revenues, to theundertaking of a radical population managementprogram. These efforts signify the innovativenessof the local government in serving its constituentsand in meeting the increasing demand brought byan incessant population growth. Nevertheless, challengesstill remain in providing adequate manpowerto social services, setting up a feedback mechanismon its various interventions and increasing avenuesfor participation of its constituents in setting development.The third study is on Cebu City where urbanizationand rapid increase in population in Metro Cebuhas brought about increased demand for basic servicesand infrastructure. The creation of the MetroCebu Development Council comprising of the fourcities and six municipalities in the eastern part ofthe Cebu Province as an organizational structureattempts to address these problems. However, servicesthat require areas larger than a local jurisdictionfor cost-effective provisioning like water supply,garbage disposal and solid waste managementare still a problem. The same is true for serviceslike public health.The paper on Lipa City, meanwhile, focuses on thesocioeconomic development experience of Lipa inits journey to being an emerging city. Specifically, itpresents the urbanization process in the city particularlythe demographic and socioeconomic processwith emphasis on the changing economic structureas well as the living condition of the populace.In addition, it examines the booming economic activitiesand seeks to find out whether or not theseare attracting migrants and creating revenue- raisingopportunities that will in turn finance increasingdemand for basic services. Lastly, the study attemptsto identify the issues and challenges thatcome along with urbanization as well as the city’spotentials for further economic development.These factors will determine whether Lipa City willremain a promising city or transform into a highlyurbanized one.In the study on Tagbilaran City, the maintenanceof an environment conducive to being a show windowfor tourism investments in the Bohol Provinceis considered a current priority. Thus, the city isimplementing a development planning system thatrequires the dynamic participation of various sectorsin the city to ensure the conservation of theenvironment and natural resources. While the cityhas recognized the detrimental effects of uncheckedpopulation growth, it has put in place cushions toensure that the development efforts are not affected.However, it becomes prudent to focus on the city’sbeing the tourism gateway to Bohol rather than simplya catchment area for Cebu’s industrial leftovers.In conclusion, it is imperative for the city to be awareof the negative effects of industrialization—howevereconomically beneficial—on its ecology.On the other hand, the findings of the study onZamboanga City will contribute to the understandingof urbanization, local governance and the consequencesof migration at the macro level. It willhelp policymakers from the local government units

2004 Annual Reportto identify areas where urbanization mechanism cancontribute positively to the development of the city.Certainly, program implementers and service providerswill also learn from the lessons gathered onurbanization and local governance. At the locallevel, existing programs for the halaws can furtherbe improved.Trends in economic development influence populationoutcomes in an area. Increasing economicopportunities that are typically linked to industrializationenhance the attractiveness of a location andresult in population increases. The inverse of thisprocess could also be true. That is, an economicdistress could hit an area and force its residents toleave and seek better forts. In the study on IliganCity, its experience on rapid urbanization for almostfive decades due to industrialization was discussed.However, the city saw a remarkable outward migrationin the latter half of the 1990s that was stronglyattributed to the economic difficulties experiencedin the latter part of the last decade. The closure ofthe National Steel Corporation, Iligan City’s mainemployer and biggest taxpayer, in particular, aggravatedthe economic condition of the city. This casestudy describes the economic challenges that alteredthe population pattern and welfare of Iligan City.The paper also presents the interventions that thelocal government embarked on to minimize theimpact of the economic crisis, including policychanges and shifts in development strategies.The last case study under this population andurbanizatin project is on Metro Iloilo. The studypresents the experience of the Metro Iloilo DevelopmentCouncil (MIDC) in its pursuit of “a highlylivable region of God-loving and educated peopleworking together for a progressive, self-reliant andsustainable community.” It provides the socioeconomicdevelopment in Iloilo City, MIDC’s core city,and delves into urbanization issues and responsesof Iloilo City in terms of resource mobilization andallocation, and delivery of basic services. It also givesa background on the creation of the MIDC andhighlights the experience of the council in workingfor the attainment of its vision.The last study under the Social Sector Reform Researcharea is on the Community Mortgage Program(CMP). In recent years, a number of lending instrumentshave been introduced and tried out inthe area of housing finance. In the Philippines, agroup lending scheme is being implementedthrough the government’s CMP. While the programis generally accepted as a propoor housing program,its financial sustainability has been in question.Competitiveness and Competition PolicyUnder this agenda, the study titled Note on competitivenessdebate confirms that competitiveness is technicallya firm level concept. However, it is oftentimesextended to the national level—the idea of acountry’s ‘international competitiveness’ with thefollowing analogies: market share –> export shareof country; price –> real effective exchange rate orunit labor cost; profitability –> long-run economicgrowth. The concept of national competitiveness isfaulty. In the words of Paul Krugman, it has becomea “dangerous obsession.” However, national or governmentpolicies do have an impact on firm levelcompetitiveness. The only concept related to firmlevel competitiveness that can be extended to thenational level without ambiguity is technologicalcapability. Meanwhile, the Global CompetitivenessReport (GCR) presents two measures of nationalcompetitiveness: the Global Competitiveness Index(GCI) and the Current Competitiveness Index(CCI). The GCI is simply a measure of a country’spotential for economic growth and is not equivalentto competitiveness. The CCI is an exercise intautology. It simply shows that countries with ahigher level of development are “more competitive.”The issue of the appropriate development policiesis not addressed. Since technological capability is,however, at the heart of competitiveness, countriesmust therefore address this issue squarely. Onecourse of action is to adopt a strategic approach toforeign direct investment—as opposed to a passivestrategy—similar to what Malaysia and Singaporedid.The paper East Asian cooperation: the ASEAN viewdiscusses the ASEAN+3 integration in the contextof the literature on hub-and-spoke regionalism. Itargues that provided proper rules of origin are incorporated,the different bilateral arrangementsbetween ASEAN countries and each of the threeEast Asian economies are building blocs toward anEast Asian free trade agreement (FTA). It arguesthat the bilateral arrangements skirt the slow deci-3

Philippine Institute for Development Studies4sion process which marks the “ASEAN way” and createsome sort of “coalition of the willing” that caneventually set the pace of integration for the rest ofEast Asia. Because of the region’s so-called leadershipvacuum, the paper also underscores the importantrole of ASEAN in bringing any discussionon East Asian integration on the table.The study titled Two essays on regional economic integrationin East Asia discusses how regional economicintegration in East Asia has gained momentum inthe aftermath of the 1997 financial crisis and theescalation of international terrorism. In the first essay,the integration process in Europe and East Asiais compared briefly. This is followed by a discussionon the expansion process by the European Unionand how East Asia can learn from this. In particular,the concern is how to integrate the CMLV countriesin a meaningful way. Proposals deal with theimpact of freer movement of natural persons, theJapan-ASEAN comprehensive economic partnershipagreements, and the viability of core labor standards.The second essay is more straightforward.Criteria for successful exchange rate coordinationare specified and the paper determines whether thePhilippines has satisfied the criteria. The conclusionis that while monetary policy has been fairlystable, the country’s weak fiscal position will preventthe Philippines from participating in regionalexchange rate coordination.The study on The state of competition for the wholesaleand retail sector: a closer look at the departmentstore and drugstore sectors attempts to analyze the industrystructures of three sectors belonging to thedistribution sector, namely; supermarket, departmentstores, and drugstores. The choice of the threesectors hinges on the belief that the liberalizationof the retail trade act will have its likely impact onthese sectors. A major limitation of this study is thelack of updated and comprehensive data for the distributionsector. The National Statistics Office(NSO) can only furnish firm-level data from 1994-1995 using the 1977 Philippine Standard IndustrialClassification (PSIC) code classification. Beyond1995, there are no firm-level data available and industrycodes were reclassified using 1994 PSIC classification.To augment the data limitation, the authorconducted interviews from the industry associationsand relied on the Top 7,000 Corporations publication.Meanwhile, the objective of the study titled Policyreversal, lobby groups, and economic distortions is toassess the policy reversal done through the issuanceof twin executive orders (EO)—numbers 241 and262. The issuance of the two EOs, according to thestudy, did not correct the distortions characterizingthe country’s structure of protection. It arguesthat backsliding and policy reversals create a lot ofuncertainty, which could affect the success of thecountry’s trade liberalization program. It also opensthe system to rent seeking and lobbying activities.Another research study on the Development of theSMEs sector in the Philippines analyzes the developmentof small and medium enterprises (SMEs) inthe Philippines through the conduct of a survey withparticular focus on the following industries: metalcraft, export garment, footwear, tannery and readyto-wear(RTW) clothes.In the Competition in financial services and access tomedium-long term credit: compilation and analysis offinancial condition of commercial banks, the efficiencyof the commercial banking system over the period1990-2003 is examined using a stochastic frontieranalysis. Technical efficiency is assessed in terms ofboth cost efficiency and profit efficiency. The studyalso determines whether the liberalization of foreignbank entry in 1994 led to domestic banks becomingmore efficient to cope with increased competition.It also assesses the impact of bank mergers

2004 Annual Reportand acquisitions and the creation of subsidiaries inthe 1990s on the banks’ efficiency and competitiveness.A review of the legal framework for mergersand consolidation and the procedures for gettingapproval is likewise undertaken.Under the PIDS-World Bank project on Policies topromote competition in the Philippines to enhanceproductivity and competitiveness are seven studies.The study titled Evaluating the impact of competitionpolicy reform on the efficiency of Philippine commercialbanks attempts to examine the impacts of competitionpolicy reforms on the efficiency of the Philippinecommercial banking system. It uses the stochasticfrontier approach to come up with estimatesof profit efficiency and cost inefficiency measures.The results are quite interesting.First, the average measured profit efficiency is 0.85,implying that on the average the commercial banksare using only 85 percent of their resources efficientlycompared to the best practice commercialbank in the system, which produces the same outputand faces the same conditions. On the otherhand, the average measured cost inefficiency of thecommercial banks is 1.39, suggesting that on average,39 percent of the commercial banks’ costs arewasted relative to the best practice commercial bankin the system, which produces the same output andfaces the same conditions. Second, some improvementsin banks’ profit and cost efficiency can beobserved after the liberalization of the entry of foreignbanks in 1994 but these improvements werehalted when the East Asian financial crisis occurred.Some improvements in profit and cost efficiencycan again be observed after the passage of the GeneralBanking Law in 2000 that further liberalizedthe entry of foreign banks. Third, small banks arefound to be more profit- and cost-efficient thanlarge banks. Fourth, foreign banks are generallymore profit and cost efficient than domestic banks.However, these differences widen during crisis periodand narrow during stable economic conditions.Fifth, profit efficiency of merged banks droppedmore sharply than nonmerged banks after 1998 buteventually recovered and approximated that ofnonmerged banks in 2002. Moreover, the cost inefficiencyof merged banks dropped sharply in 2000and since then, has remained much lower than thatof nonmerged banks. And sixth, some factors suchas agency problem, governance and market characteristicsappear to be significantly correlated withmeasured efficiencies of banks.These results have important policy implications.First, the liberalization of the banking system hasgenerally produced positive results in terms of improvingprofit and cost efficiencies of banks. Second,improvement in profit and cost efficiencies ofdomestic banks brought about by greater competitioncannot be sustained unless it is accompaniedby improvement in prudential regulations and supervision.Third, M&A policy pursued by theBangko Sentral ng Pilipinas appears to be a complementarypolicy for improving profit and cost efficienciesof banks. And fourth, understanding thenature and extent of the impact of some correlatesof measured efficiencies can help authorities in designingappropriate regulatory and supervisoryframework for banks.The paper titled Effect of liberalization on bankingcompetition analyzes the impact of major policychanges on banking structure, performance andcompetition, using bank-specific data from 1990-2002. The paper finds that the entry of more marketplayers is correlated with drops in interest spreadand profits, which partly bespeaks of possible dissipationof previous monopoly profits of large commercialbanks. The H-stat is also computed basedon the Panzar-Rosse methodology. In general, thestudy finds that despite the characteristic presenceof few, large commercial banks, the sector is fairlycompetitive, especially in the loan-granting business.Moreover, competition has increased in the latterhalf of 1990s, primarily due to the presence of moresmall commercial banks rather than big banks.The Impact of market reform on competition, structureand performance of the Philippine economy, on theother hand, examines the impact of trade policyreforms vigorously pursued in the 1990s on marketcompetition, structure, and performance of majoreconomic sectors. The paper also evaluates the presenceof remaining barriers to entry and their effecton competition. It attempts to address the followingquestions: Did the market-oriented reforms increasecompetition in the domestic market? If yes,5

Philippine Institute for Development Studieshow can market forces be strengthened in order toensure effective competition? If not, what are thepossible factors that inhibit effective competitionfrom taking place? Are there remaining barriers tocompetition erected by the private sector or the government?How high are these barriers and whatforms do they take?The study titled Interface between competition policyand infrastructure regulation in the Philippines providesan overview of the competition policy frameworkand the role of regulation. It also looks at somemajor findings from past studies on infrastructureregulations to shed light on the problems and constraintsthat need to be addressed.In the Competition policy and access of SMEs to financialservices, 30 small and medium enterprises(SMEs) reveal that while they are aware of the presenceof foreign banks granted licenses under RepublicAct 7721, they are unable to obtain access tocredit. This is primarily due to the lack of branchesin their areas relative to the presence of other localbanks and financial institutions. There is also a needto accelerate the information dissemination of availablecredit facilities to these SMEs and ease the requirementsand dependence on collateral as a preconditionto lending. The study shows that the gapbetween risk of lending to SMEs and the inclinationof many banks and financial institutions to becomelarge is more pronounced. This suggests manychallenges for the country’s financial liberalizationprocess.The study on Competition policy and regulation inpower and telecommunication sector reviews and evaluatesthe regulatory framework that has been establishedor suggested for the Philippines. The paperfocuses on the power and telecommunications sectors.The discussion starts with a description of thesuggested analytical framework, followed by an explanationof the regulatory framework. The paperthen analyzes the nature, extent and sufficiency ofthe competition-related provisions of the regulatoryrules. A discussion of the institutional capacity ofregulatory institutions follows. Finally, the paperconcludes with a set of recommendations to improvethe regulatory framework.Competition policy and regulation in ports and shippingexamines the regulatory and institutionalframework of the port and shipping sectors. It alsoassesses the policies and programs of the governmentin promoting deregulation and modernizationin the industry through privatization and competition.Macroeconomic Management in a GlobalizedSettingUnder this agenda is the study on Globalization andstate capacity. The arrival of globalization hasbrought about a lot of challenges for nations tomeet. This paper takes a look at the capability ofthe Philippine state to cope with the demands ofglobalization. It documents the rules, laws, regulations,institutions and agencies that underlie the administrativecapacity of the Philippines to promotetrade and investments and achieve economicgrowth. A review and analysis of Philippine practicesand experience is undertaken to determinethe state’s readiness for globalization. The studycovers three aspects of state capacity that contributeto the promotion of trade and investments: (1)administrative capacity, (2) systems of transparencyand accountability, and (3) legal and judicial frameworks.Finally, the paper recommends areas whereinthe Philippine government must focus on based onthe three aspects and recommends the conduct offollow-up indepth studies on the following issues:1) capacity to promote healthy competition; 2) regulatoryframework and capacity; 3) capacity to developindustries, sectors and regions; 4) policies forsocial development, redistributive justice, and povertyreduction; 5) policies to promote performance,productivity, and competitiveness; and 6) policiesto protect the environment.Another completed study is the Rural finance anddevelopments in Philippine rural financial markets: issuesand policy research challenges. The shift to a market-orientedcredit and financial policy was expectedto spur rural financing by the private sector thatwould help to usher in growth in the agricultureand rural areas. However, the rural areas have continuedto suffer from lack of access to financial servicesof banks. Despite government efforts to increasethe flow of credit toward the rural sector,6

2004 Annual Reportformal financial institutions have largely ignored thesector. Lack of financial depth and very limited accessto financial services continue to hound the ruralsector. Mapping out efficient rural finance policiesand implementing them remain as critical challengesfor policymakers. Although it is impossibleto include all the many other interesting papers andstudies on rural finance in this review, the literaturesurvey and the rural finance experiences discussedin the paper can hopefully motivate a policyresearch agenda on rural finance in the immediatefuture. This paper discusses recent new researchfindings and information on rural finance and suggeststhematic areas for policy research.The study on the Experience of crisis-hit Asian countries:do asset management companies (AMCs) increasemoral hazard? attempts to examine the performancesof Asian AMCs. Analysis reveals that AMCsvary significantly in their design and performances.While it is claimed that AMCs can trigger moral hazard-inspiredbank lending, especially when themode of nonperforming loan (NPL) transfer frombanks to AMCs entails little cost to banks, empiricalexamination of the Thai experience on AMCs revealsthat the moral hazard–inspired bank lendingresulted in creating more new NPLs in the case ofpublic AMCs. On the other hand, the new centralizedAMC, the Thai Asset Management Company(TAMC), decreases the new NPL ratio, suggestingthat the TAMC provokes no adverse moral hazardeffect on financial institutions. In addition, it isfound that the same institutional consideration significantlydecreases new NPL in foreign banks andfinance companies. In the former because they aregenerally considered better managed and in thelatter because these are the institutions that survivedthe Asian crisis; hence, they are the more viable andpresumably better-run finance companies.The study on Indepth analysis on the access to and suitabilityof loans shows the borrowing behavior of thehouseholds and the suitability of the loans obtainedfrom the community-oriented financial intermediaries(COFI). Using descriptive and statistical analyses,results show that the effects of credit in householdincome and expenses are positive. They alsoshow that client households of COFI loans experiencegreater positive effects than nonclient households.Moreover, the study indicates that nonclienthouseholds, unlike client households, seem to borrowfor the purpose of smoothing their consumptions.It has also been shown that access to COFIloans is relatively easy because the requirements andprocessing are fast and reasonable. In general, COFIloans reasonably suit the needs of their clients. Inaddition, those who have access to the COFI systemhave a more reliable source of loans. In this sense,the COFI performs a particularly important role inproviding credit lines to households.Another paper focusing on households is the studytitled Extent of asset accumulation of the households.The paper examines the extent of asset accumulationand saving of households from the credit thatthey obtained from community-oriented financialintermediaries (COFIs) and other financial sources.In the process, this paper also investigates how thegovernment can assist in asset development, particularlyfor the poor households. Results show thatthat there is a clear difference between the clienthouseholds and nonclient households in terms ofasset ownership, access to credit and the use of theloans obtained. Specifically, the results reveal thatclient households have greater accumulation of assetsand thus have the greater advantage of havingmore asset accumulation than nonclient households.The study also shows that client householdsusually allot a share from their obtained credit tobuy real estate assets while nonclient households’obtained credit is used primarily for immediateneeds than for asset accumulation.A third paper tackling households is the study onThe role of other economically active household membersin poverty alleviation. This paper extends theanalysis on microfinance and poverty from thehousehold perspective by focusing on the role ofother economically active household members inalleviating household poverty. Results show that additionalother economically active household membersexpand the pool of income earners in thehouseholds thereby pointing to the significance ofmobilizing additional household labor in the reductionof dependence on a single source of incomein the household. Specifically, results from the earn-7

Philippine Institute for Development Studies8ings regression analysis and logit analysis indicatecongruence with the generally accepted notion thata household is more likely to be nonpoor if it has agreater number of other economically active householdmembers.On the macro level, the study titled Fiscal reformagenda: getting ready for the bumpy ride ahead tracesthe roots of the Philippines’ present fiscal problemand concludes that it is largely attributable to thedeterioration of the national government’s revenueeffort. On the other hand, because the governmentrelied heavily on across-the-board budget cuts inorder to maintain some semblance of fiscal controlin the face of a persistent decline in revenue performance,investments in physical and human capitalsuffered the brunt of the adjustment. At the sametime, the study points out that it is not enough tofocus on the fiscal position of the national government;there is a need to look at the complete fiscalpicture by examining more closely the consolidatedpublic sector deficit. The fiscal deficit of nonfinancialpublic sector has been rising steeply (from 0.6%of GDP in 1996 to over 7% of GDP in 2003) largelyon account of government-owned and/or controlledcorporations (GOCCs). In turn, outstandingdebt of the nonfinancial public sector rose persistentlyfrom 75.4 percent of the GDP in 1996 to105 percent as of the end of September 2003.The study then proceeds to outline the key elementsof a fiscal reform agenda: tax policy and tax administrationreform, public expenditure managementreform, and GOCC reform. It points out that theburden of the adjustment should rest on the revenueside. At the same time, any further attempt tocut government expenditure in the aggregate islikely to be counterproductive. This does not mean,however, that reforms are not needed on the expenditureside. With or without a fiscal problem,reforms in public expenditure management are essentialin ensuring that government gets the biggestbang out of every peso that it spends. In thisregard, minimizing waste and curbing corruptionshould be on top of the agenda. The paper thenspells out in some detail the needed reforms in eachof the three areas. A big part of the paper is devotedto an evaluation of the many new tax measuresthat have been proposed to date.Another paper under the agenda on macroeconomicmanagement in a globalized setting is thestudy on How can regional institutions support reformto domestic financial systems. More recently, considerableattention has been given to financial regionalintegration and cooperation, which intensified inthe wake of the East Asian financial crisis. Thus, anumber of regional initiatives such as the developmentof regional bond market and credit ratingagencies, among others, have been put forward toform part of the foundation of regional financialintegration. New regional institutions have beencreated to support such initiatives. However, theseefforts cannot and should not be taken as a substitutefor measures needed to strengthen domesticfinancial systems. To begin with, domestic financialsystems in many countries in the Asia-Pacific regionhave remained weak, and progress to reform themhas been highly uneven. This paper attempts to offersome ideas on how regional institutions can supportreforms to domestic financial systems.Lastly, the study titled Financial regulators and regulatorycapacity: across sector perspective discusses thevarious financial reforms that were undertaken byIndonesia, Korea, Malaysia, the Philippines, andThailand in light of the 1997 Asian financial crisis.The paper reviews the immediate reforms that wereundertaken to restore financial stability as well assome longer term reforms to strengthen and developthe financial sector. In particular, the paperfocuses on the various institutional arrangementsthat were put in place to carry out these reforms. Italso discusses some regional institutional developmentsto foster closer financial and monetary cooperation,the need for which was also highlightedby the financial crisis. Overall, one of the lessonsfrom the Asian crisis is the critical role of institutions,institutional capacity and institution-buildingin determining the outcome of financial sector reforms.Modernizing Philippine AgricultureThere are three studies under the project onStrengthening social science and policy researchesfor Philippine agriculture and fisheries. The firsttwo focus on contractual arrangements in agriculture.The first study generally characterizes andanalyzes the various contractual arrangements in

2004 Annual Reportselected agricultural commodities in parts of Centraland Northern Luzon. Specifically, the study 1)characterizes the nature, process and degree of variousagricultural contracts involved in the productionand marketing of mangoes, hogs, rice and selectedvegetables; and 2) analyzes the implicationsof the various contracting arrangements in thesecommodities in terms of efficiency and equity. Thesecond one is on contractual arrangements in theVisayas and Southern Tagalog. Specifically, the studycharacterizes the nature, process and degree of variousagricultural contracts involved in the productionand marketing of mangoes, hogs, rice and selectedvegetables; and analyzes the implications ofthe various contracting arrangements in these commoditiesin terms of efficiency and equity. The thirdand last paper is on the Development of statisticalanalysis (module 2) training syllabus for research methodsin the social sciences. The study designs apretraining assessment to ensure that training modulesmeet the needs of social researchers; designs apost training assessment to evaluate methodologyskills that have been honed; and develops a trainingsyllabus for statistical analysis research methodsincluding specific applications in social research.Natural Resources and the EnvironmentSix studies under the PIDS-SANREM project on Awatershed-based approach to water resources managementwere also completed. Four are case studiesdocumenting the realities in the implementationof the watershed-based approach to water managementin the Balian, Pangil subwatershed in Laguna;the Magat watershed in Nueva Vizcaya; theMaasin watershed in Iloilo; and the Manupali watershedin Bukidnon. The other two are the frameworkof analysis for the case studies and the synthesisof all the case studies.Infrastructure DevelopmentThe lone study under this classification is titled Buildoperate-transfer(BOT) arrangements: lessons from experience.This study examines the nature of BOTtypecontracts, their design and content (e.g., risksharingarrangements, government guarantees provided,and others); conducts a case study of a challengingBOT-type contract and identifies issues andproblems faced by the government and private investorsin implementing the contract; and providespolicy recommendations based on the findings ofthe study.Policy Analysis, Planning Tools and MonitoringSystemsThere are two projects under this classification. Thefirst one is on the Economic and social monitoringsystems. The Information Development System–Geographical Information System (IDS-GIS) staff isresponsible for the maintenance of the system andcontinues to update the Economic and Social Databaseof the Institute according to the new data andinformation coming from various data producers.One of the developments includes the addition ofpoverty statistics using the new geographical classificationand the new methodology released by theNational Statistical Coordination Board (NSCB).The staff has also included the number of reportedrape cases in crime statistics. The most importantdevelopment made was the establishment of a client-serverdatabase system in replacement of the textfiles that used to be uploaded in the old database.The aim is to have a new and enhanced databasethat integrates the IDS database with the AgriculturalStatistics and the GIS databases.The second project is on the Geographical InformationSystem, which the IDS-GIS staff also monitors.Together with the assistance from the ManagementInformation Staff (MIS), a new online GIS database(GIS-based SocioEconomic Profile of the Philippines)that is better than the previous one hasbeen installed. The database now uses the MapServer free software for this facility and can now beaccessed at http://gis.pids.gov.ph/index.html. Munici-9

Philippine Institute for Development Studies10pal and barangay data have been collected for uploadingto the GIS online database. Due to thechange in the system, the expansion of the databasein terms of the number of indicators that canbe accessed has not yet been managed.GovernanceFinally, the study on Local public finance in the Philippines:in search of autonomy with accountability assessesthe way by which the key features of the landmarklegislation—Local Government Code (LGC)of 1991—had contributed to (or detracted from)the achievement of balance between local autonomyand accountability. The literature on fiscal decentralizationsuggests that these two goals are not incompatible.In fact, real autonomy (in the sense ofsubnational governments being able to link theirspending decisions with their revenue/tax decisions)promotes fiscal responsibility. In the contextof the ongoing debate in the Philippines, however,local autonomy has been equated (by many localgovernment officials) with the independence of localgovernment units (LGUs) from central governmentinterference. As such, local government officialshave focused more on securing even higherlevels of block grants in order to address the widelyperceived vertical fiscal imbalance.However, a closer scrutiny of the problem indicatesthat greater tax decentralization, coupled with awell-designed intergovernmental transfer systemthat includes elements of fiscal equalization and categoricalgrants on the basis of the achievement ofminimum service standards, would enhance thegains that are forthcoming from the decentralizationprocess much better while at the same timeminimizing the risks of macro instability.Philippine APEC Study Center Network (PASCN)The PASCN has been equally busy during the yearand produced 26 research studies, 18 of which areunder the research project on the Prospects for Japan-Philippineseconomic partnership agreement(JPEPA). The research project was jointly fundedby PIDS, the Japan International CooperationAgency (JICA) and the Ministry of Economy, Tradeand Industry (METI) and conducted in coordinationwith the Department of Trade and Industry(DTI).Of the other five studies conducted under the auspicesof the PASCN, two are from the Islamic impactof globalization project and one each from theprojects on Food security, agricultural efficiency andregional integration and Globalization, governanceand APEC. A single study on China’s accession tothe WTO was also completed during the year.Under the PASCN’s Thesis and Dissertation AssistanceProgram (TDAP), meanwhile, three granteescompleted their dissertations and thesis onmicrolending, the effectiveness of the Philippineelectronic industry, and the level of Latin-esquenessof the Philippines (Annex A lists the Institute’s completedstudies in 2004).ONGOING STUDIESA total of 62 studies are still ongoing by the end of2004. Thirty-nine studies of these are under cosponsorshipgrants with international organizations includingthe World Bank, the World Health Organization,the United Nations Development Fund forWomen and the United Nations DevelopmentProgramme. The projects are under the four researchagenda on the social sector reform, competitivenessand competition policy, macroeconomicmanagement in a globalized setting, and Philippineagriculture. These ongoing studies focus on regionaleconomic integration and human development, thenew national health accounts matrices, impact ofliberalization on the services sector, asset managementcompanies, and the country’s competitionframework.The remaining 23 of the ongoing studies are underfour PASCN-funded projects, namely: RP-US freetrade agreement (FTA); Governance and globalization;Food security, agricultural efficiency andAPEC: integrative report; Islamic impact of globalization,and the PASCN Thesis and DissertationAssistance Project (TDAP) wherein five grantees arestill completing their respective programs.Annex B enumerates the complete list of the ongoingstudies.

RESEARCH DISSEMINATION AND UTILIZATION2004 Annual ReportCompared to 2003, the Institute producedand released more publications andgained a wider media exposure acrosstelevision, radio and newspapers in 2004.It also entered into individual licensing agreementswith two international organizations, ProQuest Informationand Learning Periodicals Acquisitionsand Asia-Studies. ProQuest will reproduce and/orrepackage the PIDS Philippine Journal of Developmentand the Research Paper Series and make these accessibleto their subscribers. On the other hand, Asia-Studies will feature all PIDS publications exceptbooks on its website and make these accessible totheir subscribers as well.In addition, there are other international organizationslike the Institute of Chartered Financial Analystsof India (ICFAI) University Press in India andthe International Food Policy Research Institute(IFPRI) in Washington, D.C., which have requestedpermission from the Institute to repackage PIDSstudies and publications. Domestically, the Institutealso agreed to an arrangement where theBusinessWorld will choose studies/titles from amongthe numerous PIDS outputs and feature them in amore popular form in the newspaper’s new twice-amonthsection called Popular Economics. Hopefully,this will help in making economic concepts and issuesmore readable to the laymen.PUBLICATIONSfor the Philippine Journal of Development (PJD), ResearchPaper Series (RPS) and Economic Issue of the Day(EID). There were 54 titles under the DiscussionPaper Series (DP) and the PIDS Annual Report for2003 was also released in mid-2004.Printed books included nine titles from the PerspectivePaper Series and were authored by theInstitute’s research fellows. These titles were paperspresented in the Perspective Paper Series Symposiumas part of the Institute’s 25 th founding anniversaryand dealt with various issues such as environment,manufacturing industry, banking and finance,science and technology, education and labor,housing, and poverty.Print titlesWith 88 titles in various formats this year, the Instituteregistered an increase of about 57 percent overlast year’s total number of publications in variousformats. A total of 12 book titles plus one reprintcame off-the-press during the year as well as six issuesof the Development Research News (DRN), 12 issuesof the Policy Notes Series (PN), one issue eachThe other four book titles are Winning the Water Waredited by Agnes Rola, Herminia Francisco and JenniferLiguton; The 2003 President’s Budget Series byRosario G. Manasan; Special Issues in Agriculture editedby Eliseo R. Ponce; and the latter’s reprint.Winning the Water War is the final output under thePIDS-Sustainable Agriculture and Natural Resource11

Philippine Institute for Development Studies12Management Collaborative Research Support Program(SANREM/CRSP) project funded by theUnited States Agency for International Developmentwith researchers from the Institute; the Universityof the Philippines Los Baños (ULPB)-basedInstitute of Strategic Planning and Policy Studies(ISPPS) and College of Economics and Management;De la Salle University-Manila; and the Universityof the Philippines-Diliman as collaborators.The book confirms that there is a water crisis, whichis aggravated by a flawed governance of water resources.There is thus a need to empower local governmentunits and communities to address the watercrisis. This book presents a holistic analysis ofthe water situation that focuses on supply and demandconditions as well as on the social, economic,legal and institutional context of the problem. Itargues for watersheds as the appropriate planningunit for an integrated water resources managementsystem and recommends pluralism in the modes inwater governance in the country that will enablelocal stakeholders (LGUs, civil society) to evolve appropriatemechanisms in accordance with local, social,political, economic and ecological realities. Insum, the book seeks innovative ways of trying to winthe “water war” or of dealing with water scarcity andits related concerns.The 2003 President’s Budget Series by Rosario G.Manasan asserts that the year’s budget supports theadministration’s vision of a strong republic thattakes good care of its people and their future. Thebudget seeks to address the core needs of food,employment, education, health, and housing. Italso promises to provide funds and logistics necessaryto ensure peace and order as well as to eliminategraft and corruption. However, the nationalgovernment will again overshoot its fiscal deficittargets for 2002 and 2003. It stresses that the fiscalproblem stems not so much from the expenditureside but from the revenue side. Consequently, thelower budget of most government agencies for2003 threatens the delivery of adequate public servicesin 2003.The Special Issues in Agriculture book edited by EliseoR. Ponce contains four chapters dealing with agriculturalresource management, agricultural distributionservices sector, agricultural biotechnology researchand development, and property rights reformin Philippine agriculture. The four main papersin this book are significant in that they presentstrategies for the policy, regulatory and institutionalframeworks crucial not only in promoting but alsoin enforcing efficient, effective, equitable and sustainableagricultural growth for the country.The last issue of the Research Paper Series for 2003came out in the early part of 2004. The issue focuseson the Philippine domestic shipping transportindustry, its state of competition, and its marketstructure.The lone EID title dwells on the concept of budgetdeficit. The EID is an effort to help enlighten thepublic and other interested parties on the conceptsbehind certain economic issues. The medium usessimple and easy-to-understand terms defining basicconcepts as these relate to current and everydayeconomics-related matters.Meanwhile, six issues of the Development ResearchNews, a bimonthly newsletter, were released in 2004.The newsletter highlights findings and recommendationsculled from PIDS-sponsored research/foraand features special articles on key national andcurrent issues as well as news on PIDS activities participatedin by the staff that provide an inside lookat the people within the Institute. The main objectiveof the newsletter is to highlight policy-orientedissues presented in a nontechnical manner. The issuesreleased in 2003 contained articles on poverty,policy research, the Philippine-Japan economicpartnership, an economic forecast for 2004, sustainableenvironmental management in the uplands ofSoutheast Asia, and directions for the Philippineeconomy after the 2004 presidential elections.In terms of the Policy Notes Series, 12 titles were releasedduring the year. The issues tackled coastalresources management, infrastructure, water management,removal of qualitative restrictions on rice,community mortgage program, rural finance in thePhilippines, the Philippines’ fiscal position,microfinance, the Philippines’ foreign trade agreementpolicy options and bank competitiveness. ThePolicy Notes are observations/analyses written byPIDS researchers on certain policy issues and circulatedto the highest levels of decisionmakers inthe country.

2004 Annual ReportMeanwhile, 54 titles were released under the DiscussionPaper Series. Topics included several titleson the Philippine-Japan bilateral agreement, coastalresources management in Panguil Bay, asset managementcompanies, rural finance, community-ledwatershed-based water resources management, andtrade and investment in Muslim areas under a globalizedsetting, among others.Refer to Annex C for a complete list of the publications.Distribution, promotion and circulationTo give the Institute’s clients immediate access toits publications, especially the new ones, and toensure that these are made available to a broaderaudience and not just to those included in the mailinglist, the Institute continued posting electroniccopies of issues of the DRN, PN, EID, and DP on itswebsite. Online copies are posted either during theblueprint stage or immediately after the issues arereleased. The updating of the publications page ofthe PIDS website has been a continuing task of theInstitute.During the first quarter of the year, the Instituteapplied the DRN and PN as Second Class Mail Mattersunder the Bulk Presorted service for domesticdelivery of the Philippine Postal Corporation (PPC).This service provides free pickup of mail mattersand offers corresponding discounts and is expectedto facilitate the mailing of PIDS publications as wellas lessen mailing cost. The mailing list was alsotrimmed down to minimize cost in the sending ofpublications. This is in line with the Philippinegovernment’s austerity measures. Total direct salesfor the year reached P88,183.46 and $1,866.ConsignmentThe Institute continued its consignment arrangementswith the National Bookstore (NBS)/Powerbooks, National Economic and DevelopmentAuthority (NEDA) Bookstore, Solidaridad Bookstore,Heritage Arts Center, Rarebooks Enterprisesand Greatbooks. Contracts were reviewed and necessarychanges were added to reflect the actual consignmentpractices. The latest addition to the list ofconsignees is the bookseller Academic Library Connections.Total revenues from the consignment arrangementreached P177,723.10 for the year.SOCIOECONOMIC RESEARCH PORTALFOR THE PHILIPPINES (SERP-P)As of December 30, 2004, the SERP-P website contains2,843 publications online, 2,665 of which haveabstracts.Member-institutions, now numbering 22, includethe following: Agricultural Credit Policy Council;Angelo King Institute for Economic and Business-DLSU; Asian Development Bank; Ateneo Center forSocial Policy and Public Affairs; DLSU-Social DevelopmentResearch Center; DLSU-University ResearchCoordination Office; Institute of StrategicPlanning and Policy Studies; National Tax ResearchCenter; Philippine APEC Study Center Network;Philippine Institute for Development Studies; PIDS-Population Commission Population ManagementProgram; Silliman University; Trade and InvestmentPolicy Analysis and Advocacy Support Project; Universityof San Carlos; UP-Center for Integrated DevelopmentStudies; UP-National Center for TransportationStudies; UP-National College of PublicAdministration and Governance; UP-School of Economics;UP-School of Urban and Regional Planning;UST-Social Research Center; World Bank; andXavier University-Research Institute for MindanaoCulture.On February 24, 2004, a meeting was held with theCommission on Higher Education (CHED) and theZonal Research Center regarding the establishmentof a portal for CHED’s zonal research area in theNational Capital Region (NCR). A briefing on SERP-P’s rationale, objectives, description and featureswas given in this regard.A new website look and format for the SERP-P wasalso completed during the year. Member profilesand a frequently-asked-questions (FAQ) service havebeen recently uploaded in this new website. Featuresof the new website now include e-group mailof members, discussion board, member contact informationand a browser linked to the SERP-P.Finally, the new system template for direct uploadingof research by members was installed duringthe year in the following institutions: AgriculturalCredit and Policy Council, Institute of StrategicPlanning and Policy Studies, National Tax Research13

Philippine Institute for Development Studies14Center, PCARRD, UST-Social Research Center, UPSchool of Economics, and the University of SanCarlos. Members can now directly upload their researchoutputs in the website. Except for SillimanUniversity, RIMCU, and TAPS PHILEXPORT, thenew system template has been installed in all of themembers’ systems.PUBLIC AFFAIRSForaA total of 44 fora were arranged and sponsored bythe Institute from January to December 2004. Theseare classified in the following categories: 17 network/projectrelated fora, six House of Representatives’forum series, three research exhibits, tworoundtable discussions, two regional consultationmeetings, one Pulong Saliksikan, one InstitutionalSymposium and 12 PIDS General Assembly Meetings.On its 27 th founding anniversary on 26 September2004, the Institute’s celebration coincided with theInternational Year of Rice (IYR) as proclaimed bythe United Nations and the second nationwide observanceof the Development Policy ResearchMonth (DPRM). The PIDS, having been designatedas lead agency for the annual celebration of theDPRM through Malacañang Proclamation No. 247in 2002, has adopted the theme Policy Research: HelpingProvide Affordable Rice for Filipinos for both the2004 DPRM and the PIDS anniversary celebrations.In the triple celebration (including the UN-declaredInternational Year of the Rice), the series of activitiesstarted on September 21 with the opening ofthe Rice Exhibit and followed by a back-to-back paperpresentation on the politics and economic aspectsof rice. The events were held in collaborationwith the Philippine Rice Research Institute(PhilRice), which has been at the helm of researchand development (R&D) endeavors on rice.Meanwhile, the Philippine APEC Study Center Network(PASCN), with the Institute as the leadconvenor and secretariat, conducted individualstudies on the impact of a free trade agreement(FTA) with Japan and the United States. Under theJapan-Philippines Economic Partnership Agreement(JPEPA) research project, six seminars were conducted,three of which were held in the regionalcities of Cebu, Butuan and Tacloban. The fourthforum was brought to the House of Representativeson April 21 before a congressional audience. TheJPEPA project aims to provide the government withthe necessary research in its efforts to formulate aneconomic partnership with Japan as well as providea venue for discussions of the issues involved. Onthe other hand, the Institute conducted four forato discuss the prospects for a Philippine–UnitedStates Free Trade Agreement (RP-US FTA), the RP-US version of the JPEPA project. Concerns specificto RP-US relations were included in the list of researchstudies to be conducted.Under the PIDS-SANREM/CRSP project, on theother hand, four fora on the watershed approachto water resources management were conductedduring the year, with the last forum held at theHouse of Representatives on April 14. The messageof the fora was: Better-managed watersheds result inadequate and quality water supply for all. It stressedthe importance of having a clear understanding ofthe connection between promoting the protectionand rehabilitation of our water resources like thewatersheds and ensuring the supply of abundant,safe and quality water. The fora also delved on theelements of water management and people participation.Presented during the three regional foraheld in Los Baños, Iloilo and Davao were the assessmentsof four case studies relating to watershedmanagement in the Balian, Pangil subwatershed inLaguna; the Magat watershed in Nueva Vizcaya; theMaasin watershed in Iloilo; and the Manupali watershedin Bukidnon.As a member of the Philippine Academic Consortiumfor Latin American Studies (PACLAS), a networkof academic and research institutions and facilitiesfostering mutual cooperation in a wide spectrumof endeavors involving Latin American studies,the Institute participated in a roundtable discussionon the revitalization of Philippine-LatinAmerican relations at the University of Santo Tomas(UST) and two separate exhibits at the Araneta Centerin Quezon City and at UST.At the Philippine Economic Society (PES) meetingon May 26, meanwhile, where the PIDS was a cosponsor,top economists and other resource speakersfrom the power sector debated on the real issue

2004 Annual Reporton power: will there be a power shortage? The unanimousanswer pointed to the possibility of anotherpower shortage in the coming years.Aside from separate fora on water resource managementand the Japan-Philippines trade relations,four other issues were tackled in the forum series atthe House of Representatives. Dr. Josef Yap, a seniorresearch fellow at the Philippine Institute forDevelopment Studies (PIDS), presented a forecaston the Philippine economy for 2004, where he predictedthat inflation will likely average 3.8 percentin 2004, higher than the previous year due to pesodepreciation, higher fuel prices and higher foodprices. Other senior research fellows who also presentedat the Congress were Dr. Rosario Manasanwho discussed the legislation of tax reforms as thekey to resolving the tax problem, Dr. Gilberto Llantoon the build-operate-transfer arrangements betweenthe government and private companies, and Dr.Caesar Cororaton on the removal of QRs on rice.Lastly, Dr. Gerardo Sicat, PIDS founding father, gavea talk on the Philippine employment and labor marketreforms while Asian Development Bank economistDr. Jesus Felipe presented his paper on thecompetitiveness, income distribution and growth ofAsian countries.Refer to Annex D for a complete list of the variousfora organized and sponsored/cosponsored by theInstitute in 2004.Media exposureThe Institute monitored a total of 183 media exposuresin 2004. Some of these included the newspaper,radio and television interviews of PIDS PresidentDr. Mario Lamberte and PIDS Vice-PresidentDr. Gilberto Llanto on prospects of the economy,trade deficits, and the role of policy research in thedevelopment and policymaking process in the country,among others; PIDS Research Fellow Dr. RosarioManasan on the country’s fiscal condition and taxmeasures; PIDS Research Fellow Dr. Josef Yap oninvestments and the Philippines’ savings level; Directorfor Research Information Ms. JenniferLiguton on watershed management as discussed inthe PIDS-Sanrem book titled Winning the Water War;and PIDS Research Fellow Dr. Erlinda Medalla oninternational trade.The Institute’s media exposure in 2004 is shown inAnnex E.LIBRARY DEVELOPMENTFor 2004, the Institute’s Library acquired a numberof new publications, including the three-volumeset Economics by Dr. Gerardo Sicat, Top 7000 Corporations,Next 5000 Corporations 2003-2004; BSPFactbook 2002 (Volume 2); ADB Key Indicators 2003;ADB Economic Outloook 2004; and Human DevelopmentReport 2003.The Institute also subscribed to eight daily newspapers(Manila Bulletin, Manila Standard, Manila Times,Today, Business World, Daily Inquirer, Philippine Starand Malaya) and five weekly magazines (Far EasternEconomic Review, Fortune, Newsweek, Economistand Time) while it continued to subscribe tothree CD-ROMs, namely, the IMF Financial Statistics(October 2004 to September 2005), the WorldBank Economic Indicators 2003 and the Lex LibrisLaws Bulletin 2004.As of end of 2004, the Institute has an exchangeagreement with 17 local and 28 foreign institutionsfrom Asia, the United States and Europe including(very recently) Russia. These institutions are includedin the Institute’s regular mailing list andregularly receive the Philippine Journal of Developmentand the Annual Report. In the local scene, theInsitute has agreements with the libraries of theAsian Development Bank, National Economic andDevelopment Authority, National Statistical CoordinationBoard, National Statistics Office, Universityof the Philippines (UP) School of Economics,UP National College of Public Administration andGovernance, and many others. During the year, ithas issued 42 interlibrary loan forms to PIDS staffto give them access to these libraries.As for the Online Public Access Catalogue (OPAC),a total of 8,471 titles have been inputted as of endof the year. The OPAC is a windows-based and userfriendlyelectronic catalog system designed to assistPIDS library users in their search and retrieval ofbibliographic records even without the assistanceof the library staff. The inputting and editing ofOPAC entries as well as the barcoding of librarymaterials are ongoing.15

Philippine Institute for Development StudiesMANAGEMENT INFORMATIONIn 2004, majority of the activities supervised bythe Management Information Systems (MIS)personnel were focused on enhancing and upgradingthe Institute’s information technology(IT) support system and infrastructure. Activities includedthe completion of the backend databases fordifferent websites and systems, completion of themodules for some inhouse developed InformationSystems (IS), networking of additional rooms, upgradeof hardware and software of servers, and theupgrade of the local area network (LAN).PIDS website backend database/informationsystem improvementsIn 2004, all the information and data available inthe different websites of PIDS were transferred fromthe old system of static text files to databases. Thiswas made possible by the completion of the backenddatabase system for the main PIDS website. The systemis now similar to the other database-enabledwebsite in the Institute like the SocioEconomic ResearchPortal for the Philippines (SERP-P) and theEconomic Resource Base for Legislators (ERBL).The database is stored in a PC server that can beaccessed by different clients within and outside theInstitute.In addition, the management module of the ProjectMonitoring Information System (PMIS), withfunctionalities such as pdf reporting and grantchart/graphs, was completed in 2004.Upgrade of local area networkThe most significant improvement in the Institute’sIT infrastructure in 2004 was the upgrade of theexisting 10 mbps network to 100 mbps network. Thenetwork upgrade activity was done inhouse after new100/1000 mbps hubs/switches and network cableswere acquired during the start of the third quarterof the year. New cables were installed to interconnectthe new hubs/switches. The new backbonecables run from the MIS room to the 2 nd floor ofthe building. The new networking equipments andcables enabled quicker and responsive access to allnetworked resources such as databases, files anddocuments. New rooms were also connected to thelocal area network.Other activitiesDuring the last quarter of 2004, the MIS providedIT equipment procurement assistance to the Institute.New servers were acquired as well as wirelessnetworking devices and equipments. These newservers upgraded the main database server and theprimary DNS server while the wireless access pointenabled wireless connectivity for wireless ready desktopsand laptops in the building’s fourth floor.The MIS likewise provided assistance to the draftingof the Terms of Reference (TOR) and in thescreening contractors for the Integrated Socioeconomicand Agricultural Database project, which willdevelop a single client-server database system forthe Economic Database System, Agricultural Statisticsand the Online GIS initiatives of the Institute.Over and above these improvements and activities,the Institute’s MIS continues to undertake its regularfunctions such as the development of websitesfor various PIDS projects, the maintenance and improvementof the PIDS network and internet systems;the maintenance of IT equipment, softwareprocurement and installation; updating of the PIDSwebpage; and provision of general IT support servicesto the PIDS staff.16

PIDS PROVIDENT FUND2004 Annual ReportThe PIDS Provident Fund Inc. is anonstock corporation registered withthe Securities and Exchange Commission(SEC) under SEC Registration No.A199919546 dated January 25, 2000. Its membershipis exclusive to and automatic for officials andemployees of PIDS who are holding plantilla positions.It was organized to establish and maintain afund, the sources of which shall be derived fromcontributions of the members and counterpart contributionof PIDS. All earnings and/or interest fromits financial/investment operations are distributedto the members as benefits in case of retirement,resignation, separation or other cases as may be allowedand determined by its Board of Trustees, inaddition to other forms of benefits due to the employee-member.As of December 31, 2004, the Fund has a total membershipof 84 PIDS member-employees.Activities/accomplishmentsThe annual members’ meeting was held on April29, 2004 and was attended by about 65 percent ofthe 86 active Fund members. The Fund Secretariatmaintains an intranet website that makes availableto all Fund members all information about the operationsand services of the PIDS Provident Fund,its constitution and by-laws, and highlights of its operations.It facilitates Institute-wide communicationand exchange of information so as to allow for anefficient delivery of services to its members. Theweb facility also allows its members to access theirindividual member’s account and check on therunning balance of their monthly contributionsto the Fund. All activities and other reports areposted online.The Fund’s audited financial statements for CY 2003and the duly-accomplished/notarized general informationsheet (GIS) have also been submitted tothe SEC. Likewise, the registration of the books ofaccounts and other yearly registration requirementswith the Bureau of Internal Revenue (BIR) havebeen complied with.An election of level representatives to the FundBoard of Trustees was held on June 15, 2004 (firstand second level) and on July 5, 2004 (third levelrepresentative).Financial performanceFor CY 2004 , the Fund realized a net income ofP0.970 million from its financial operations, whichis about 19.95 percent higher than last year’s P0.809million earnings. This development can be attributedto the following: a) tax exemption of earningsfrom investment placements amounting to P1.000million and above; and b) the lock-in strategyadopted by management on its investments.Consequently, the total asset of the Fund stood atP13.039 million, representing a growth percentage17

Philippine Institute for Development Studiesof about 23.33 percent over last year’s P10.572 million.This includes cash in bank, accrued/other receivables,and investment in treasury bills/treasurybonds.Finally, total networth amounted to P11.132 million,an increase of P1.864 million (or about 20.11%growth) over last year’s figure of P9.268 million. Ofthe net worth, P7.580 million (68.09%) representsfund contributions, P2 million (17.97%) representsthe seed money from the Institute, and the remainingP1.552 million (13.94%) represents the accumulatedearnings of the Fund.Payment of benefitsDuring the year, the Fund paid benefits to one retiredand five resigned employees. The computationof the amount they received was based on theprovisions of the By-Laws of the PIDS ProvidentFund Inc.Future thrustsAs a matter of strategy, Fund management will continueto focus its effort on investing in short-termgovernment securities and on monitoring, at thesame time, developments in the financial marketin order to maximize the earnings of its investments.This will provide enough opportunity for the Fundto augment its financial base and at the same timeensure the viability of its placements, the earningsof which shall be used exclusively for the benefit ofits member-employees.18

PIDS EMPLOYEES ASSOCIATION2004 Annual ReportThe year 2004 was a combination offundraising programs, charity works andfun activities for the PIDS EmploymentAssociation (PIDSEA). These were ontop of the regular assignments that the membershad in terms of involvement in various PIDS mattersthrough representation in committees.One of PIDSEA’s major projects in 2004 was afundraising activity—the Bingo Socials—that wasmeant to generate funds to support other PIDSEAactivities such as the attendance of some PIDSEAofficers in various seminars. The Bingo Socials, heldon the last day of the 27 th PIDS Founding Anniversarycelebration, proved to be a successful activityas it raked in P11,119.18 and provided PIDS staffan opportunity to relax and unwind—and winprizes—at the end of a long anniversary week. Apartfrom the Bingo Socials, PIDSEA members also contributedto the year-round fund drive to generatecash from trash papers.Charity begins at home, as the saying goes. In thesame way that each PIDSEA member looks aftereveryone’s needs and welfare, it also recognizes theneeds of fellow Filipinos in distress. When theQuezon province was devastated in early Decemberby three typhoons, one after the other, PIDSEAresponded. A sizable cash amount of P4,800 andused clothings were collected from the fund drive.The amount was able to buy sufficient groceries andwere forwarded to Caritas Manila. Children of PIDSemployees were also treated to an enjoyable andmerry Christmas party filled with games, prizes, foodand surprises. Not only did the energetic PIDS juniorsenjoy the party but their parents did as well.In conclusion, the general assembly arrived at a decisionin July 2004 to postpone the 2004 electionsfor new PIDSEA officials until the first PIDS-PIDSEAcollective negotiation agreement (CNA) has beensigned.19

ANNEX ACOMPLETED STUDIES2004 Annual ReportMACROECONOMIC MANAGEMENTIN A GLOBALIZED SETTING1. Globalization and state capacity: Philippine’scountry study by Epictetus Patalinghug2. Rural finance and developments in Philippinerural financial markets: issues and policyresearch challenges by Gilberto Llanto3. Experience of crisis-hit Asian countries: doasset management companies increase moralhazard? by Gloria Pasadilla and AkikoHagiwara Terada4. Indepth analysis on the access to and suitabilityof loans by Chelo Manlagñit5. Extent of asset accumulation of the householdsby Chelo Manlagñit6. The role of other economically active householdmembers in poverty alleviation by CheloManlagñit7. Fiscal reform agenda: getting ready for thebumpy ride ahead by Rosario Manasan8. How can regional institutions support reformto domestic financial systems? by MarioLamberte9. Financial regulators and regulatory capacity:across sector perspective by Melanie MiloCOMPETITIVENESS AND COMPETITIONPOLICYPolicies to promote competition in the Philippinesto enhance productivity and competitiveness10. Evaluating the impact of competition policyreform on the efficiency of Philippine commercialbanks by Mario Lamberte11. Effect of liberalization on banking competitionby Gloria Pasadilla and Melanie Milo12. Interface between competition policy and infrastructureregulation in the Philippines byErlinda Medalla13. Competition policy and access of small andmedium enterprises (SMEs) to financial servicesby Rene Hapitan14. Competition policy and regulation in powerand telecommunication sectors by GilbertoLlanto and Epictetus Patalinghug15. Impact of market reform on competition,structure, and performance of the Philippineeconomy by Rafaelita Aldaba and CorazonPisano16. Competition policy and regulation in portsshipping by Gilberto Llanto and Enrico Basilio17. Competition in financial services and accessto medium-long term credit: compilation andanalysis of financial condition of commercialbanks by Ma. Chelo Manlagñit18. A note on the competitiveness debate by JosefYap19. East Asian cooperation: the ASEAN view byGloria Pasadilla20. Two essays on regional economic integrationin East Asia by Josef Yap21. The state of competition for the wholesale andretail sector: a closer look at the departmentstore and drugstore sectors by Ma. TeresaCaparas22. Trade and industrial policy: review/assessmentof recent policy and tariff changes byErlinda Medalla23. Development of the small and medium enterprisessector in the Philippines by ErlindaMedalla, Takahiro Aoki and Chelo ManlagñitINFRASTRUCTURE DEVELOPMENT24. Build-operate-transfer (BOT) arrangements:the experience and policy challenge by AdoraNavarroSOCIAL SECTOR REFORM25. Rice reform and poverty in the Philippines: aCGE analysis by Caesar Cororaton26. Can group credit work for housing loans? Someevidence from the CMP by Marife BallesterosPopulation, urbanization and local governance27. Main report by Aniceto Orbeta and RosarioManasan28. SPPR3: population and urbanization and localgovernance: case study of Tagum City byHope Gerochi29. SPPR3: population and urbanization and localgovernance: case study of Olongapo City(reurbanizing cities) by John Michael Ian Salas21

Philippine Institute for Development Studies2230. SPPR3: population and urbanization and localgovernance: case study of Cebu City byGlenda Gonzales31. SPPR3: population and urbanization and localgovernance: case study of Iloilo City byJanet Cuenca and Ma. Libertad Dometita32. SPPR3: population and urbanization and localgovernance: case study of Tagbilaran Cityby Fatima del Prado and Iris Acejo33. SPPR3: population and urbanization and localgovernance: case study of Zamboanga Cityby Ma. Lourdes Fabian34. Local governance and the challenges of economicdistress: the case of Iligan City byLeilanie Basilio and Jeremiah Cabasan35. Metro Iloilo Development Council: in pursuitof managed urban growth by Janet Cuenca andEden VillanuevaPOLICY ANALYSIS, PLANNING TOOLS ANDMONITORING SYSTEMS36. Economic and Social Monitoring System byCelia Reyes37. Geographical Information System by CeliaReyesGOVERNANCE38. Ten years of fiscal decentralization: an assessmentby Rosario ManasanMODERNIZING PHILIPPINE AGRICULTUREStrengthening social science and policy researchesfor Philippine agriculture and fisheries39. Contractual arrangements in agriculture -Northern and Central Luzon by Alma delaCruz40. Contractual arrangements in agriculture -Visayas and Southern Tagalog by GideonCarnaje41. Development of statistical analysis (module2) training syllabus for research methods forsocial science by Jose Ramon AlbertNATURAL RESOURCES AND THE ENVIRON-MENTA watershed-based approach to water resourcesmanagement42. Realities of a watershed management approachin the Philippines: a framework forcase analysis by Antonio Contreras43. Community-led watershed-based water resourcesmanagement: the case of Balian,Pangil, Laguna by Antonio Contreras44. Realities of the watershed management approach:the Magat watershed experience byDulce Elazegui and Edwin Combalicer45. Realities of watershed management in the Philippines:the case of the Iloilo-Maasin watershedby Herminia Francisco and Jessica Salas46. Realities of the watershed management approach:the Manupali watershed experienceby Agnes Rola, Vel Suminguit and AntonioSumbalan47. Realities of watershed management in thePhilippines: synthesis of case studies byHerminia FranciscoPHILIPPINE APEC STUDY CENTER NET-WORK (PASCN)Japan - Philippines economic partnership researchproject48. Situationer on Japan-Philippines economicrelations by Erlinda Medalla49. RP-Japan bilateral agreement: beneficial ornot by Caesar Cororaton50. An analysis of industry and sector-specific impactsof a Japan-Philippines economic partnershipby AIM Policy Center and Royce Escolar51. Philippines-Japan economic linkage: a casestudy of Cebu by Victorina Zosa52. Toward a Philippines-Japan economic partnershipin agriculture by Zenaida Sumaldeand Amelia Bello53. Prospects and problems of expanding tradewith Japan: a survey of Philippine exportersby Rosalina Palanca-Tan54. Movement of natural persons between thePhilippines and Japan: issues and prospectsby Tereso Tullao Jr.55. Small and medium enterprise developmentexperience and policy in Japan and the Philippinesby Cielito Habito56. What to bring up for services negotiation inRP-Japan trade talk by Gloria Pasadilla57. Prospects and impediments to tapping theJapanese market for the Philippine retirementindustry by Cherry Lyn Rodolfo andWinston Conrad Padojinog58. Formulating a medium to long term strategyfor exports of manufactured goods from the

2004 Annual ReportPhilippines to Japan under an FTA with Japan:a survey of Japanese corporations in thePhilippines by Peter Lee U59. A comparative study of the bilateral FTA arrangements:applications to the Philippinesby John Avila60. Philippines-Japan economic partnership:where is the Philippines in Japan’s plan byLydia Yu-Jose61. Exploring potentials of a Philippines-Japaneconomic partnership in human resource developmentby Jose Camacho et.al.62. The dynamics of a Philippines-Japan economiccooperation: the case of Japan’s officialdevelopment assistance (ODA) in thePhilippines by Agham Cuevas and JoseCamacho63. Understanding Japan’s motives for pursuingan economic partnership agreement with thePhilippines by Ronald Rodriguez64. Rules of origin in bilateral FTAs: its implicationson multilateral and regional trade byGeorge Manzano65. Philippines-Japan free trade agreement: analyzingits potential impact using a computablegeneral equilibrium model by Taeko YasutakeFood security, agricultural efficiency and APECresearch project66. Food security, agricultural efficiency, and regionalintegration by Amelia BelloIslamic impact of globalization research project67. Economic globalization impact on trade andinvestment in Muslim areas in the Philippinesby Habib Macaayong68. Effect of global economic liberalization onmanufacturing industries in Muslim areas byEugenio ManulatGlobalization, governance and APEC researchproject69. Globalization, redemocratization and the Philippinebureaucracy by Mirshariff TillahOthers70. China’s accession to WTO by Ellen PalancaCompleted theses/dissertations71. Value at risk modeling in microlending: thecase of lending investors around Metro Manila(Ph.D. dissertation) by Junette Perez72. Measuring the manufacturing strategy effectivenessof the Philippine electronic industryusing Hayes framework (Ph.D. dissertation)by Anthony SF Chiu73. How Latin is the Philippines by Joel HernandezANNEX BONGOING STUDIESSOCIAL SECTOR REFORM1. Annual updates on poverty profile by CeliaReyes2. Research Manager for the SEA HDR by JosefYapConduct of study on regional economic integrationand human development of the SEA-HDR3. Human development in South East Asia byInstitute of Strategic and Development Studies4. Impact of regional economic integration onhuman development by Josef Yap5. Regional cooperation for human developmentby Yuchengco Center6. Land market study by Marife Ballesteros7. Rental housing study by Marife Ballesteros8. Impact of fiscal restraint on budgetary allocationsfor women’s program by Rosario ManasanDevelopment of New National Health AccountsMatrices9. Health expenditure estimation methodologies,manual preparation and training and developmentof guiding framework by Rachel Racelis23

Philippine Institute for Development Studies10. Private sector health expenditure projection,manual preparation and training by Carlos Tan11. Public sector health expenditure projection,manual preparation and training by EmilyCabegin12. Data compilation and health expenditure estimationby the National Statistical CoordinationBoardCOMPETITIVENESS AND COMPETITIONPOLICY13. Asset management companies and assessmentof Philippine debt recovery laws in relation topractices in other Asian countries by GloriaPasadilla14. Assessment of WTO agreement in FDI andcompetition impact on the Philippines byGloria Pasadilla15. Research program on the services sector byGloria PasadillaImpact of liberalization on services16. Impact of liberalization on services: businessoutsourcing by Ceferino Rodolfo17. Impact of liberalization on services: medicaland health-related services by Jovi Dacanay18. Impact of liberalization on services: informationand communication technology by WinstonPadojinog19. Impact of liberalization on services: researchon education services by Ma. Andrea Santiago20. Impact of liberalization on services: researchon audio visual services sector by AngeliLantin21. Impact of liberalization on services: broad overviewand institutional study of decisionmakingprocess in service negotiations by Christine LiaoMODERNIZING PHILIPPINE AGRICULTUREStrengthening social science and policy researchesfor Philippine agriculture and fisheries25. Contractual arrangements in agriculture-Mindanao by Larry Digal26. Development of a quantitative analysis (module1) training syllabus for research methodsfor social science by Arturo Pacificador27. Development of a qualitative analysis (module3a) training syllabus for research methodsfor social science by Daylinda Cabanilla28. Development of a qualitative analysis (module3b) training syllabus for research methodsfor social science by Corazon Lamug29. Operationalizing the Social Science andPolicy Research, Development and Extension(RDE) Network by Eliseo Ponce30. Agriculture technology, governance and productivityby Eliseo PonceComprehensive assessment of the Philippineagricultrual extension (Phase 2)31. The role of extension in local agricultural development:the case of Dalaguete, Cebu byAurora Tabada32. The role of extension in local agricultural development:the case of Ubay, Bohol by EfrenSaz33. Extension system in a poultry and swine-basedfarming community: the case of San Jose,Batangas by Rowena Baconguis34. Effectiveness of the delivery of agricultural extensionsystem: the case of a municipality inDavao del Sur by Rosa Fe Hondrade35. Legal and institutional aspects of agriculturaldelivery systems in the Philippines by JonasBautistaPolicies to promote competition in the Philippinesto enhance productivity and competitiveness22. Competition and market structure: the remainingissues by Melanie Milo23. Competition policy and regulation in ports andshipping by Gilberto Llanto and Enrico BasilioNational research prioritization based on extensivesurvey: the case of rice and mango36. GIS as a tool to prioritize tropical fruits researchand development projects (GIS-basedcharacterization and research prioritizationphase II) by Tolentino Moya24MACROECONOMIC MANAGEMENT IN AGLOBALIZED SETTING24. Analysis of the President’s budget for 2005 byRosario ManasanRice and the Filipinos: the last 100 years37. Philippine Hybrid Rice Program: a case of redesigningand scaling down by Cristina David38. Managing rice knowledge by Eliseo Ponce

2004 Annual Report39. Rice in the changing Philippine agriculturallandscape by Canesio PredoPHILIPPINE APEC STUDY CENTER NET-WORK (PASCN)RP - US FTA research project40. Overall framework and integrative report byErlinda Medalla41. RP-US FTA: beneficial or not by CesarCororaton42. Implications of an RP – US FTA on the Philippinefinancial services industry by LeilaCalderon-Kabigting43. Issues and prospects on the movement of naturalpersons in the Philippine-American economicrelations by Tereso Tullao Jr.44. Enhancing and deepening of the competitivenessof the Philippine electronics industryunder a bilateral setting by Myrna S. Austria45. Assessment of readiness and logistics infrastructureof the Philippine garments industryby Emilio Antonio and Cherry Lyn Rodolfo46. Expanding and sustaining RP-US linkages inbusiness process outsourcing (BPO) byCeferino Rodolfo47. Talking points on intellectual property rightsprotection for the RP-US FTA negotiation byDelia Tantuico48. Agricultural trade between the Philippinesand the US: status, issues and prospects byLiborio Cabanilla49. Impact of a Philippines-US FTA: the case ofthe Philippine agriculture by U-PrimoRodriguez50. An analysis of existing and potential US FTAsand defining the Philippine strategy for negotiationby Sedfrey Candelaria and AnthonyAbad51. Specific legal issues on the proposed Philippines-USFTA: politico-legislative perspectiveby Sedfrey Candelaria and Victor Venida52. WTO-related concerns: government procurement,competition policy and trade remediesby Jeremy Gatdula53. The politico-strategic dimension of the USproposal for an FTA by Renato de Castro andMaria CastanosGlobalization, governance and APEC researchproject54. Globalization or glocalization? Experiences inthe local Philippine context by Ma. DivinaGracia Roldan55. E-government assessment in Philippine citiesby Gabrielle IglesiasFood security, agricultural efficiency and APEC56. Philippine agriculture, food security andAPEC: an integrative report by LiborioCabanillaIslamic impact of globalization research project57. Coordination of research team on Islamic impactof globalization by Habib MacaayongTheses/dissertations58. Model of effectiveness of NCR private secondaryschools (Ph.D. dissertation) by Tara ChavezDonozo59. The multiplier effect of industrial estatesthrough employee consumption (MS thesis)by Carl Vincent Nadela60. Gender role differentiation among womenand men farmers in the sustainable agricultureprogram in Upper Pugaan, Iligan City,Southern Philippines (MS thesis) by GraceSeno Majorenos61. Leading economic indicators in regionalgrowth forecasting (MS Thesis) by WilmaTejero62. Economic benefits of Philippine air transportderegulation by Winfred S. Manuela25

Philippine Institute for Development StudiesAnnex CPublications26Books1. A perspective on macroeconomic and economy-widequantitative models of the Philippines: 1990-2002by Josef T. Yap2. The poverty fight: has it made an impact? by CeliaM. Reyes3. The Philippines in the global trading environmentby Myrna S. Austria4. Philippine competition policy in perspective byErlinda M. Medalla5. Central banking in the Philippines: then, now andthe future by Mario B. Lamberte6. Infrastructure development: experience and policyoptions for the future by Gilberto M. Llanto7. The quest for a better environment: past experiencesand future challenges by Danilo C. Israel8. Education, labor market and development: a reviewof the trends and issues in the Philippines for the past25 years by Aniceto C. Orbeta Jr.9. Research and development and technology in thePhilippines by Caesar B. Cororaton10. Winning the water war edited by Agnes Rola,Herminia Francisco, and Jennifer Liguton11. The 2003 president’s budget series by Rosario G.Manasan12. Special issues in agriculture edited by Eliseo R.Ponce13. Special issues in agriculture edited by Eliseo R.Ponce (reprint)Development Research News (bimonthly)14. July August 2003 (Vol. 21, No. 4)15. September-October 2003 (Vol. 21, No. 5)16. November-December 2003 (Vol. 21, No. 6)17. January-February 2004 (Vol. 22, No. 1)18. March-April 2004 (Vol. 22, No. 2)19. May -June 2004 (Vol. 22, No. 3)Philippine Journal of Development (semestral)20. Volume 30 Number 55Growth models, development planning, andimplementation in the Philippines byGonzalo M. JuradoLiberalization and deregulation in the domesticshipping industry: effects on competitionand market structure by Myrna S. AustriaEstimating industry benchmarks for the valueaddedtax by Rosario G. ManasanTechnical change, factor bias, input adjustments:panel data evidence from irrigatedrice production in Southern Palawan, Philippinesby Gerald E. Shively and Charles A.ZelekToward understanding Philippine trade inservices: a demand approach by Jeremy R.BarnsBook review of China’s economic growth and theASEAN (edited by Ellen H. Palanca) byPrema-chandra AthukoralaResearch Paper Series (occasional)21. RPS 2003-02 Philippine domestic shippingtransport industry: state of competition andmarket structure (Myrna S. Austria)Policy Notes (occasional)22. PN No. 2004-01 Does coastal resources managementhelp? Ask the fishermen! (DaniloC. Israel)23. PN No. 2004-02 Bottleneck to growth: inadequateinfrastructure (Gilberto M. Llanto)24. PN No. 2004-03 Institutions and water – thevital connections (Dulce D. Elazegui)25. PN 2004-04 Can the poor benefit from theremoval of QR on rice? (Caesar Cororaton)26. PN 2004-05 Can group credit work for housingloans? Some evidence from the CMP(Marife M. Ballesteros and Dam C. Vertido)27. PN 2004-06 Rural finance in the Philippines:a continuing saga in policy challenges(Gilberto M. Llanto)28. PN 2004-07 The Philippines’ fiscal position:looking at the complete picture (Rosario G.Manasan)29. PN 2004-08 Fiscal reform agenda: getting readyfor the bumpy ride ahead (Rosario G. Manasan)30. PN 2004-09 Exploring the Philippine FTApolicy options (Erlinda M. Medalla andDorothea Lazaro)

2004 Annual Report31. PN 2004-10 Is the promise being fulfilled?...Microfinance in the Philippines: status, issuesand challenges (Gilberto M. Llanto)32. PN 2004-11 Measuring bank competitiveness:has financial liberalization increased competition?(Gloria O. Pasadilla)33. PN 2004-12 LGUs need strong national leadershipin population management (AnicetoC. Orbeta Jr.)Discussion Paper Series34. DP No. 2004-01 Philippines-Japan bilateralagreements: analysis of possible effects on unemployment,distribution and poverty in thePhilippines using CGE-microsimulation approach(Caesar B. Cororaton)35. DP No. 2004-02 Household perceptions of thelong-term impact of coastal resources managementin Panguil Bay (Danilo C. Israel)36. DP No. 2004-03 The role of other economicallyactive household members in poverty alleviation(Ma. Chelo V. Manlagñit)37. DP No. 2004-04 Extent of asset accumulationof the households (Ma. Chelo V. Manlagñit)38. DP No. 2004-05 Indepth analysis on the accessto and sustainability of loans (Ma. CheloV. Manlagñit)39. DP No. 2004-06 An analysis of industry and sector-specificimpacts of a Japan-Philippines economicpartnership (Royce Elvin O. Escolar)40. DP No. 2004-07 Preferential rules of originfor the Japan-Philippines economic partnership:issues and prospects (George Manzano)41. DP No. 2004-08 Prospects of services trade liberalizationin Japan-RP bilateral agreement(Gloria O. Pasadilla)42. DP No. 2004-09 Understanding the politicalmotivations behind Japan’s pursuit of an EPAwith the Philippines: considerations for thePhilippine side (Ronald A. Rodriguez)43. DP No. 2004-10 Prospects and problems ofexpanding trade with Japan: a survey of Philippineexporters (Rosalina Palanca-Tan)44. DP No. 2004-11 Movement of natural personsbetween the Philippines and Japan: issuesand prospects (Tereso S. Tullao Jr. andMichael Angelo A. Cortez)45. DP 2004-12 Two essays on regional economicintegration in East Asia (Josef T. Yap)46. DP 2004-13 Toward a strategy for manufacturedexports to Japan (Ferdinand Maquito and PeterLee U)47. DP 2004-14 Rice reforms and poverty in thePhilippines: a CGE analysis (Caesar B.Cororaton)48. DP 2004-15 A national policy study on childlabour and development in the Philippines(Fernando T. Aldaba, Leonardo Lanzona andRonald J. Tamangan)49. DP 2004-16 Determinants of individual tradepolicy preference in the Philippines (GloriaO. Pasadilla and Christine Marie Liao)50. DP 2004-17 Experience of crisis-hit Asian countries:do asset management companies increasemoral hazard? (Akiko Terada-Hagiwaraand Gloria O. Pasadilla)51. DP 2004-18 Rural finance and developments inPhilippine rural financial markets: issues andpolicy research challenges (Gilberto M. Llanto)52. DP 2004-19 Realities of a watershed managementapproach in the Philippines: a frameworkfor case analysis (Antonio P. Contreras)53. DP 2004-20 Community-led watershed-basedwater resources management: the case ofBalian, Pangil, Laguna (Antonio P. Contreras)54. DP 2004-21 Realities of the watershed managementapproach: the Magat watershed experience(Dulce D. Elazegui and Edwin A.Combalicer)55. DP 2004-22 Realities of watershed managementin the Philippines: the case of the Iloilo-Maasin watershed (Herminia A. Francisco andJessica C. Salas)56. DP 2004-23 Realities of the watershed managementapproach: the Manupali watershedexperience (Agnes C. Rola, Vel J. Suminguitand Antonio T. Sumbalan)57. DP 2004-24 Realities of watershed managementin the Philippines: synthesis of case studies(Herminia A. Francisco and Agnes C. Rola)58. DP 2004-25 Winning the water wars: toward awatershed-based approach to watershed resourcesmanagement: a policy agenda for localgovernment units (Antonio P. Contreras)59. DP 2004-26 Fiscal reform agenda: getting readyfor the bumpy ride ahead (Rosario G. Manasan)60. DP 2004-27 East Asian cooperation: theASEAN view (Gloria O. Pasadilla)27

Philippine Institute for Development Studies61. DP 2004-28 A comparative study of bilateralFTA/CEP arrangements (John Lawrence V.Avila)62. DP 2004-29 Philippine-Japan economic partnership:where is the Philippines in Japan’splan? (Lydia Y. Jose)63. DP 2004-30 Small and medium enterprise developmentexperience and policy in Japanand the Philippines: lessons and policy implications(Ronald J. Tamangan, Cielito F.Habito and Frances Josef)64. DP 2004-31 Developing the Japanese marketfor Philippine tourism and retirement services:prospects and impediments (WinstonConrad B. Padojinog and Maria Cherry Lyn S.Rodolfo)65. DP 2004-32 Toward a Philippine-Japan economiccooperation in agriculture (Amelia L.Bello, Zenaida M. Sumalde and CarlosLorenzo L. Vega)66. DP 2004-33 Philippine-Japan economic linkages:a case study of Cebu (Victorina Zosa)67. DP 2004-34 Exploring potentials of a Japan-Philippine economic partnership in humanresource development (Jhoana V. Alcalde,Niño Alejandro Q. Manalo and Rodger M.Valientes)68. DP 2004-35 The dynamics of a Philippines-Japan economic cooperation: the case ofJapan’s official development assistance in thePhilippines (Jose V. Camacho Jr. and AghamC. Cuevas)69. DP 2004-36 English as the language of trade,finance and technology in APEC: an East Asiaperspective (Dorothea C. Lazaro and ErlindaM. Medalla)70. DP 2004-37 Trade and investment in a globalizedsetting: the Philippine experience inMuslim areas (Habib W. Macaayong)71. DP 2004-38 Food security, agricultural efficiencyand regional integration (Amelia L. Bello)72. DP 2004-39 A note on the competitivenessdebate (Josef T. Yap)73. DP 2004-40 Philippines-Japan free tradeagreement: analyzing its potential impact usinga computable general equilibrium model(Taeko Yasutake)74. DP 2004-41 China’s WTO entry: effects on itseconomy and implications for the Philippines(Ellen Palanca)75. DP 2004-42 Local public finance in the Philippines:in search of autonomy with accountability(Rosario G. Manasan)76. DP 2004-43 How can regional institutions supportreforms to domestic financial systems?(Mario B. Lamberte)77. DP 2004-44 Tagum City: development at thecrossroads (Hope Gerochi)78. DP 2004-45 Local governance and the challengesof economic distress: the case of IliganCity (Leilanie Q. Basilio and JeremiahCabasan)79. DP 2004-46 Evaluating the impacts of competitionpolicy reforms on the efficiency of Philippinecommercial banks (Ma. Chelo V.Manlagñit and Mario B. Lamberte)80. DP 2004-47 Rental housing for urban lowincomehouseholds in the Philippines(Marife M. Ballesteros)81. DP 2004-48 An initial verdict on our fightagainst poverty (Celia M. Reyes)82. DP 2004-49 Metro Cebu: a metropolitan areain need of a coordinative body (Glenda R.Gonzales)83. DP 2004-50 Case study of Zamboanga City -forced migration area (Ma. Luisa D. Barrios-Fabian)84. DP 2004-51 Lipa City...emerging city for allseasons??? (Janet S. Cuenca and Ma. LibertadDometita)85. DP 2004-52 Metro Iloilo Development Council:in pursuit of managed urban growth (JanetS. Cuenca and Eden C. Villanueva)86. DP 2004-53 Tourism fuels an emerging city:the case of Tagbilaran City, Bohol (Iris L.Acejo, Fatima del Prado and DarlyneRemolino)87. DP 2004-54 Local governance in the midst ofeconomic dependency: a case study ofOlongapo City (John Michael Ian S. Salas)Economic Issue of the Day88. Budget deficit (Volume IV No. 1 March 2004)28

Annex DPublic Affairs2004 Annual ReportNETWORK/PROJECT RELATED FORARoundtable on Revitalizing Philippines-LatinAmerica Relations22 January 2004, CME Auditorium, University ofSanto TomasPresenters: Mr. Jose Molina, Mr. MichaelAlexander Palma, Mr. Mario FeranilCosponsors: Philippine Academic Consortium forLatin American Studies (PACLAS), Universityof Santo TomasRegional Discussion Forum on EconomicOutlook and Prospects for RP-Japan EconomicPartnership18 March 2004, Sarrosa International Hotel, CebuCityPresenters: Dr. Josef Yap, Dr. Erlinda Medalla, Dr.Tereso Tullao, Jr., Mr. Ronald Rodriguez, Ms.Cherry Lyn Rodolfo, Dr. Victorina ZosaCosponsors: PASCN, University of San Carlos27 April 2004, Dottie’s Place Hotel, Butuan CityPresenters: Dr. Josef Yap, Dr. Erlinda Medalla, Mr.Angelo Cortez, Mr. Winston Padojinog, Dr.Rosalina TanCosponsors: PASCN, NEDA – CARAGAKahublagan Sang Panimalay Foundation,NEDA – Region VI26 May 2004, Grand Men Seng Hotel, Davao CitySpeakers/presenters: Mr. Mario Feranil, Ms. JenniferLiguton, Ms. Dulce Elazegui, Dr. AntonioSumbalan, Dr. Vel SuminguitCosponsors: SANREM-CRSP/SEA, PWMC, WatershedManagement Coordinating Council –Davao City, Davao City Water DistrictPES Annual Meeting: The Philippine EconomyAfter 200426 May 2004, Yuchengco Auditorium, DLSU, TaftAve., ManilaPresenters: Dr. Gerardo Sicat, Dr. Rosario Manasan,Dr. Gilberto Llanto, Mr. Romeo Bernardo, Dr.Felipe MedallaCosponsors: Philippine Economic Society, DLSUSeminar Series on Rice and the Filipinos: TheRice That Filipinos Grow and Eat11 June 2004, BPI Compound, Quezon CityPresenters: Dr. Eliseo Ponce, Dr. John de LeonCosponsors: Philippine Rice Research Institute(PhilRice), Bureau of Plant Industry, Departmentof AgricultureThe Realities of Watershed Management Approachin the Philippines14 May 2004, Bulwagang Panday KarununganPCARRD, Los Baños, LagunaSpeakers/presenters: Ms. Jennifer Liguton, Dr.Antonio Contreras, Mr. Edwin Combalicer, Ms.Dulce ElazeguiCosponsors: PCARRD, ISPPS-College of PublicAffairs, UPLB, SANREM – CRSP/ SEA24 May 2004, Jalaur Conference Room, NEDABldg., Iloilo CitySpeakers/presenters: Ms. Jennifer Liguton, Mr.Alexander Valenciano, Dr. Antonio Contreras,Dr. Herminia Francisco, Dr. Jessica SalasCosponsors: SANREM-CRSP/SEA, PhilippineWatershed Management Coalition (PWMC),Regional Discussion Forum on Prospects for RP-Japan Economic Partnership22 June 2004, Leyte Park Hotel, Tacloban CityPresenters: Dr. Erlinda Medalla, Dr. Amelia Bello,Ms. Cherry Lyn Rodolfo, Mr. Michael AngeloCortezCosponsors: PASCN, NEDA Region VIIISeminar Series on Rice and the Filipinos: TheEvolution of Rice Production Practices13 July 2004, BPI Compound, Quezon CityPresenters: Dr. Eulito Bautista, Ms. Evelyn JavierCosponsors: Philippine Rice Research Institute(PhilRice), Bureau of Plant Industry, Departmentof Agriculture29

Philippine Institute for Development Studies30Seminar Series on Rice and the Filipinos: Rice inthe Filipino Diet and Culture25 October 2004, Institute of Philippine Culture,Ateneo de Manila UniversityPresenter: Dr. Filomeno Aguilar Jr.Cosponsors: Philippine Rice Research Institute(PhilRice), Ateneo de Manila UniversityNational Consultation Forum on the SoutheastAsia Human Development Report29 October 2004, Holiday Inn Galeria Manila,Pasig CityPresenters: Dr. Josef Yap, Dr. Noel Morada, Dr.Wilfred VillamilCosponsors: United Nations DevelopmentPorgramme, Institute of Strategic and DevelopmentStudies, Yuchengco Center, De LaSalle University, Philippine Human DevelopmentNetworkSeminar Series on Rice and the Filipinos: RiceInnovations in the Philippines5 November 2004, C.P. Romulo Hall, NEDA-MakatiBldg.Presenter: Dr. Saturnina HalosCosponsor: Philippine Rice Research Institute(PhilRice)Prospects for a Philippine–United States FreeTrade Agreement9 November 2004, C. P. Romulo Hall, NEDA-Makati Bldg.Presenters: Dr. Erlinda Medalla, Dr. Renato deCastro, Ms. Maria Castaños, Dr. CaesarCororaton, Dr. Emilio Antonio and Ms. CherryLyn Rodolfo, Mr. Ceferino RodolfoCosponsors: Philippine APEC Study Center Network,Garments and Textile Export Board, Departmentof Trade and Industry10 November 2004, C.P. Romulo Hall, NEDA-Makati Bldg.Presenters: Dr. Tereso S. Tullao, Dr. LeilaCalderon-Kabigting, Atty. Delia Tantuico, Dr.Liborio Cabanilla, Dr. U-Primo RodriguezCosponsors: Philippine APEC Study Center Network,Garments and Textile Export Board, Departmentof Trade and Industry12 November 2004, C.P. Romulo Hall, NEDA-Makati Bldg.Presenters: Dr. Myrna Austria, Atty. JeremyGatdula, Atty. Sedfrey Candelaria and Atty.Anthony Abad, Atty. Sedfrey Candelaria andDr. Victor VenidaCosponsors: Philippine APEC Study Center Network,Garments and Textile Export Board, Departmentof Trade and IndustrySeminar Series on Rice and the Filipinos: RiceKnowledge Management in the Philippines7 December 2004, C.P. Romulo Hall, NEDA-MakatiBldg.Presenter: Dr. Eliseo PonceCosponsor: Philippine Rice Research Institute(PhilRice)HOUSE OF REPRESENTATIVES FORUMSERIESThe Philippine Economy in 200431 March 2004, Room 9, Mitra Bldg., Batasan ComplexPresenter: Dr. Josef YapToward a Watershed Approach to Water ResourcesManagement in the Philippines14 April 2004, Room 9, Mitra Bldg., Batasan ComplexPresenter: Dr. Antonio ContrerasRP-Japan Economic Partnership Agreement: TheGains and Prospects21 April 2004, Room 9, Mitra Bldg., Batasan ComplexPresenter: Dr. Erlinda MedallaLegislating Tax Reforms: Key to Resolving theFiscal Problem15 June 2004, Room 9, Mitra Bldg., Batasan ComplexPresenter: Dr. Rosario ManasanSome Notes on the Build-Operate-Transfer(BOT) Arrangements21 July 2004, Room 9, Mitra Bldg., Batasan ComplexPresenter: Dr. Gilberto Llanto

2004 Annual ReportCan the Poor Benefit from the Removal of theQR on Rice?2 September 2004, Room 9, Mitra Bldg., BatasanComplexPresenter: Dr. Caesar CororatonPreconference Consultation Meeting: Prospectsfor RP-Japan Economic Partnership3 May 2004, NEDA Office, Tacloban CityAttendees: PIDS Staff, PASCN Staff, NEDA – RegionVIII StaffRESEARCH EXHIBITSPULONG SALIKSIKANFEALAC Fiesta: East Asia Meets Latin America atAraneta Exhibit17 – 18 January 2004, Ali Mall, Araneta Center,Quezon CityCosponsors: Forum for East Asia-Latin AmericaCooperation (FEALAC), PACLASSemana Latino Americana Exhibit4 – 5 March 2004, Main Bldg. Lobby, University ofSanto TomasCosponsors: PACLAS, USTExhibit on Rice in the Filipino Life18 – 23 September 2004, Rafael Salas ReadingRoom, NEDA-Makati Bldg.Cosponsor: Philippine Rice Research Institute(PhilRice)Competitiveness, Income Distribution andGrowth: Evidence from Asian Countries12 January 2004, C.P. Romulo Hall, NEDA-MakatiBldg.Presenter: Dr. Jesus FelipeINSTITUTIONAL SYMPOSIUMSeminar Series on Rice and the Filipinos- Rice and Philippine Politics- Philippine Hybrid Rice Program: Will itSucceed?21 September 2004, C.P. Romulo Hall, NEDA-Makati Bldg.Presenters: Dr. Ponciano Intal Jr., Dr. Cristina DavidCosponsor: Philippine Rice Research Institute(PhilRice)ROUNDTABLE DISCUSSIONSGENERAL ASSEMBLY MEETINGSPreparing for Services Negotiation for theProposed RP-US FTA12 August 2004, C.P. Romulo Hall, NEDA-MakatiBldg.Presenters: Dr. Gloria Pasadilla, Mr. Virgilio Peña,Mr. Diwa GuinigundoPhilippine Employment and Labor MarketReforms29 September 2004, C.P. Romulo Hall, NEDA-Makati-Bldg.Presenter: Dr. Gerardo SicatREGIONAL CONSULTATION MEETINGSPIDS Matters12 January 2004 16 February 20048 March 2004 26 April 200417 May 2004 12 July 200413 September 2004 4 October 2004Pagibig Loan Privileges14 June 2004Guest speaker: Mr. Rodrigo Gomera, Pagibig FundUnionism in the Government2 August 2004Guest speaker: Ms. Lylia Discartin, Civil ServiceCommissionPreconference Consultation Meeting: EconomicOutlook and Prospects for RP-Japan EconomicPartnership11 March 2004, NEDA Office, Butuan CityAttendees: PIDS staff, PASCN staff, NEDA –CARAGA staff4-Day Work-Week and PIDS Christmas Party16 November 2004Calamity Fund Drive and PIDS Christmas Party8 December 200431

Philippine Institute for Development StudiesAnnex EMedia Exposure Monitor1. PN 2003-11 Who Benefits from the TariffReforms? Dr. Caesar CororatonMr. Roxas is no Mr. PalengkeManila Times- Editorial, p. A6January 3, 20042. DP 2003-16 Regulatory Policies andReforms in the Power and Downstream OilIndustries Ms. Rafaelita AldabaRepeal the onerous EPIRADaily Tribune, p. 5; January 9, 2004Herman Tiu Laurel3. PN 2003-11 Who Benefits from the TariffReforms? Dr. Caesar CororatonWho Benefits from Tariff Reform?Philippine Star, p. 11; January 10, 20044. PN 2003-13 Cancun and its Aftermath:What Does it Mean? Ms. Rafaelita AldabaCancun losers: poor countriesBusinessWorld-Yellow Pad, p. 21January 12, 20045. DP 2003-17 Analysis of the President’sBudget for 2004: Looking for the Complete(Fiscal) Picture; Dr. Rosario Manasan2004 economic targets ‘overly ambitious’ — execDaily Tribune; January 12, 2004Jun Vallecera6. Interview, Dr. Mario LamberteOmen for battered pesoBusinessWorld, p. 23; January 13, 2004Romulo Luib and Rommer Balaba7. Pulong Saliksikan on “Competitiveness,Income Distribution and Growth Evidencefrom Asian Countries”Dr. Jesus Felipe (ADB)RP to stay weak, expert saysManila Times, Front page; January 13, 20048. Pulong Saliksikan on “Competitiveness,Income Distribution and Growth Evidencefrom Asian Countries”Dr. Jesus Felipe (ADB)Economist says competitiveness rankings not asvital for gov’tsBusinessWorld-Economy; January 14, 20049. DP 2003-17 Analysis of the President’sBudget for 2004: Looking for the Complete(Fiscal) PictureDr. Rosario ManasanImprove tax efforts to curb budget gap—economistMindaNews; January 16, 200410. PN 2003-11 Who Benefits from the TariffReforms? Dr. Caesar CororatonTariff cuts a two-edged swordBusinessWorld- Economy; January 17, 200411. PN 2003-13 Cancun and its Aftermath:What Does it Mean? Ms. Rafaelita AldabaAfter Cancun, What?BusinessWorld- Yellow Pad; January 19,200412. DP 2003- 21 Strengthening Bilateral Tradeand Investment Relationship BetweenLatin America and the Philippines: BeyondEconomic DiplomacyMr. Michael Alexander PalmaLatAm-East Asia meet calls for improved tiesBusinessWorld- Economy; January 29, 200413. (Press Release) Situationer on Japan-Philippines Economic Relations (AnOverview) Dr. Erlinda M. MedallaRP stands to gain from free trade pact with JapanManila Bulletin, p. B1; January 31, 200414. Interview, Dr. Mario LamberteEconomy grew at faster pace in 2003BusinessWorld- Economy; January 30, 200432

2004 Annual Report15. PN 2003-11 Who Benefits from the TariffReforms? Dr. Caesar B. CororatonRP, Japan to commence free trade talks this weekBusinessWorld; February 2, 200424. Interview, Dr. Eliseo PonceExperts: RDC no teeth to implement programsMindanao Times, p. 3; February 19, 2004Carmelito Francisco16. (Press Release)PN 2003-11 Who Benefitsfrom the Tariff Reforms?Dr. Caesar B. CororatonHigher tariff cut to boost exportsMalaya, p. 11; February 9, 200417. Interview, Dr. Mario B. LamberteSpecial Report: 4 th Quarter Banking ReportStable but short of spectacularBusinessWorld; February 10, 200418. Interview, Dr. Mario B. LamberteFOCUS: Economic teams of presidential candidates– Economic briefings are for freeBusinessWorld; February 11, 200419. (Press Release) PN 2003-11 Who Benefitsfrom the Tariff Reforms? Dr. Caesar B.CororatonHigher tariff cut in RP-Japan FTA seen to boostexportsPhilippine Star, p. B12; February 12, 200420. (Book) Economic Crisis Once MoreDr. Mario B. LamberteA country at the crossroads: Economic dysfunctioncaused by Philippine presidencies (1986-2004)Manila Times, p. A7; February 16, 2004Dr. Ernie Gonzales21. DP 2003-17 Analysis of the President’sBudget for 2004: Looking for the Complete(Fiscal) Picture; Dr. Rosario G. ManasanReenacted budget: What does it mean?BusinessWorld- Yellow Pad; February 16,200422. Interview, Dr. Rosario G. ManasanIncreased government spending expected for thefirst six monthsBusinessWorld; February 18, 200423. (Press Release) Dr. Tereso Tullao andMichael Angelo Cortez (PASCN-DLSU)Health workers for JapanBusinessWorld; February 18, 200425. Interviews, Dr. Mario Lamberte, Dr. RosarioManasan and Dr. Aniceto OrbetaSpecial Report: Philippine Business CycleBusinessWorld; February 19, 200426. Interview, Dr. Eliseo PonceRDCs have become just ‘talking clubs’Sun Star Davao; February 19, 2004Christie Enriquez-Uayan27. Finance, DBM merger backedMalaya (p. 15); February 23, 2004Juliet Javellana28. Interview, Dr. Myrna AustriaAn alternative employment strategy for the nextadministrationManila Times, Opinion SectionFebruary 26, 2004Rene E. Ofreneo29. Interview, Dr. Gilberto M. LlantoBusiness agenda will not be enough, says RomuloBusinessWorld; March 1, 200430. (Press Release) Prospects and Problems ofExpanding Trade With Japan: A Survey ofPhilippine ExportersDr. Rosalina Palanca-Tan (ADMU-PASCN)Study says RP farm sector should be part of Japantrade dealBusinessWorld; March 1, 200431. Dr. Rosario G. ManasanTariffs on sugar-based juices hiked in drive toincrease government revenuesBusinessWorld; March 2, 200432. Dr. Gilberto LlantoPrivate participation in infrastructure provision?BusinessWorld- Yellow Pad, p. 21March 8, 200433

Philippine Institute for Development Studies33. DP 2003-06 Integrating Gender Perspectivesin Evaluating the Efficiency of COFI:The Case of Credit Cooperatives in thePhilippinesDr. Mario B. Lamberte and Ms. CheloManlagñitPoverty incidence high in areas with no smalllendersBusinessWorld; March 10, 2004Rommer Balaba34. (Press Release) RP-Japan studyDr. Caesar CororatonRP gain seen in free trade with JapanPhil. Daily Inquirer; March 11, 2004Michelle Remo35. Interview, Dr. Mario B. LamberteFocus: Business and the presidential election—Traders try to make sure betsBusinessWorld; March 11, 200336. PASCN studies on the proposed Philippines-JapanEconomic PartnershipSec. Romulo NeriNeri: RP-Japan pact to benefit economyManila Times; March 11, 2004Paul Anthony Isla37. DP 2003-18 An Evaluation of the PopulationManagement Program, Dr. Aniceto C.OrbetaAll work, no play…BusinessWorld; March 12, 200440. PN 2003-17 The Insurance Industry in theASEAN5 Economies: Tapping Its PotentialDr. Melanie MiloPIDS paper says insurance sector needs strongregulatorBusinessWorld; March 18, 2004Ruby Anne Rubio41. Interview, Dr. Gilberto LlantoImports surge in January as trade deficit widensABS-CBN Interactive; March 19, 2004Dave Llorito42. Interview, Dr. Gilberto LlantoImports surge in January as trade deficit widensToday; March 19, 2004Dave Llorito43. Regional Conference on Economic Outlookand Prospects for RP-Japan EconomicPartnership (Region 7)Dr. Erlinda Medalla, Dr. Caesar Cororatonand Dr. Rosalina TanRP top exporter to JapanSun Star Cebu; March 19, 2004Cherry Ann T. Lim44. PASCN studies on the proposed Philippines-JapanEconomic PartnershipSec. Romulo NeriThe Good News: Free trade pact with Japan tobenefit RPOPS news-Balitang Malacañang; March 21,2004; PNA3438. Interview, Dr. Mario LambertePresident lines up 6-point program to help the poorManila Times; March 14, 2004AFP39. (Press Release) Movement of NaturalPersons Between the Philippines andJapan: Issues and ProspectsDr. Tereso Tullao (DLSU-PASCN)NEDA backs liberalization of Japan healthcareManila Bulletin, p. B1; March 14, 2004Edu H. Lopez45. PASCN Regional Conference on EconomicOutlook and Prospects for RP-JapanEconomic Partnership (Region 7)Dr. Josef T. YapAnalysts: Don’t blame gov’t for economic woesSun Star Cebu; March 22, 2004Cherry Ann T. Lim46. PASCN studies on the proposed Philippines-JapanEconomic PartnershipDr. Tereso TullaoOFWs in Japan: From entertainers to caregiversOPS news - Balitang MalacañangMarch 23, 2004; PNA

2004 Annual Report47. (Press Release) An Analysis of Industry andSector Specific Impacts of Japan-PhilippinesEconomic PartnershipMr. Royce Escolar (AIM – PASCN)Small businesses need to tap new technology tobecome competitiveIT Matters; March 23, 2004Rommer Balaba48. PASCN Regional Conference on EconomicOutlook and Prospects for RP-JapanEconomic Partnership (Region 7)Dr. Josef T. YapLow savings mean less investment, jobs: BSPOfficialSun Star Cebu; March 27, 200449. Interview, Dr. Mario B. LamberteStrong fiscal policy key to RP outlookBusinessWorld; April 1, 200455. PN 2003-01 Where are the Benefits ofForeign Bank LiberalizationMr. Rene Hapitan (PASCN-DLSU)Bank liberalization benefits elude RPToday; April 14, 2004Daxim Lucas56. PN 2003-01 Where are the Benefits ofForeign Bank LiberalizationMr. Rene Hapitan (PASCN-DLSU)Bank liberalization benefits elude RPABS-CBN Interactive; April 14, 2004Daxim Lucas57. RPS 2003-02 Philippine Domestic ShippingTransport Industry: State of Competitionand Market Structure; Dr. MyrnaAustriaAddressing cold storage facility inadequacyBusinessWorld; April 16, 200450. PASCN Regional Conference on EconomicOutlook and Prospects for RP-JapanEconomic Partnership (Region 7)Dr. Josef YapGovernment needs to enhance tax collectionPhilippine News Agency; April 2, 200451. Interview, Dr. Mario B. LamberteStorm signalsPhilippine Daily Inquirer; April 2, 2004Amando Doronilla52. Interview, Dr. Mario LamberteProposal to curb budget deficitDZRB; April 3, 2004Vitaliano Nanagas and Nonoy Resmundo53. Interview, Dr. Mario LamberteLife beyond Tito and JinggoyPhilippine Daily Inquirer; April 6, 2004Juan Mercado54. Fiscal Incentives RevisitedDr. Erlinda MedallaGov’t undertaking wider review of tax perks tolimit fiscal incentivesManila Times; April 8, 2004Arnold Tenorio58. Interview, Dr. Gilberto LlantoPolicy reforms, not Arroyo, helping economy grownowBusinessWorld; April 22, 200459. Interview, Dr. Gilberto LlantoJunking secrecy law may cut dollar flow—bankersBusinessWorld; May 5, 200460. PASCN studies on the proposed Philippines-JapanEconomic PartnershipHopes linger for RP, Japan pactManila Times; May 6, 2004Roderick T. Dela Cruz61. Interview, Dr. Mario B. LambertePolls expected to clear economic uncertaintiesBusinessWorld; May 10, 2004Rommer Balaba62. PN 2003-17 The Insurance Industry in theASEAN5 Economies: Tapping Its PotentialDr. Melanie MiloSEC, BSP agree on joint audit of nonblankfinancial institutionsPhilippine Star; May 11, 2003Zinnia Dela Peña35

Philippine Institute for Development Studies63. Interview, Dr. Mario B. LamberteArroyo needs funds fast to fulfill pledges to the poorChannel News Asia InternationalMay 13, 2004AFP64. Interview, Dr. Erlinda MedallaSlippery slope for new Philippines leader amid oilspikeChannel News Asia InternationalMay 24, 2004AFP65. PN 2000-17 Managing Government Guaranteesand Contingent LiabilitiesDr. Gilberto M. LlantoGOCC guarantees a liabilityBusinessWorld; May 27, 2004Rommer Balaba66. PN 1997-11 Government Guarantees inInfrastructure ProjectsDr. Gilberto M. LlantoInfrastructure investment lack needs to beaddressedBusinessWorld; May 31, 200467. Ms. Rafaelita AldabaPolicy Reversals, lobby groups and economicdistortions(Yellow Pad) BusinessWorld; May 31, 200468. RPS 2003-02 Philippine Domestic ShippingTransport Industry: State of Competitionand Market StructureDr. Myrna AustriaArmed sea marshals eye maritime terroristsPeople’s Journal; June 2, 2004; AFP69. RPS 2003-02 Philippine Domestic ShippingTransport Industry: State of Competitionand Market Structure; Dr. MyrnaAustriaSea marshals to protect ships from terrorist attackManila Times; June 2, 2004; AFP70. RPS 2003-02 Philippine Domestic ShippingTransport IndustryDr. Myrna AustriaArmed marshals to protect Philippine passengershipsBusiness Times Singapore; June 2, 2004AFP71. PN 2000-20 Basic Education: ImprovingQuality and QuantityDr. Rosario ManasanBasic Education in doubtBusinessWorld; June 4, 200472. Seminar on “Rice and the Filipinos: TheLast 100 Years”Hybrid rice to raise harvest, employment: DAMindanao Times; June 12, 200473. Seminar on “Rice and the Filipinos: TheLast 100 Years”Government to expand hybrid rice plantingManila Bulletin; June 13, 200474. Bank branching…Mario LamberteBan on new banks will stayBusinessWorld; June 14, 200475. Interview, Dr. Gilberto LlantoGovernment to push for fiscal responsibilitymeasureManila Times; June 15, 200476. Dr. Gilberto LlantoPlanners want guarantees for GOCCs endedBusinessWorld; June 15, 2004Karen Lema77. RPS 2003-02 Philippine Domestic ShippingTransport Industry: State of Competitionand Market Structure; Dr. MyrnaAustriaRP seeks to shake off reputation for maritimedisastersChannel News Asia InternationalJune 16, 2004; AFP36

2004 Annual Report78. RPS 2003-02 Philippine Domestic ShippingTransport Industry: State of Competitionand Market StructureDr. Myrna AustriaRP seeks to shake off reputation for maritimedisastersPeople’s Journal; June 17, 2004; AFP79. (Book review) Dr. Gerardo SicatA monumental book by a remarkable authorBusinessWorld; June 20, 2004Hal Hill80. Regional Conference on Prospects for RP-Japan Economic Partnership ( Region 8)Dr. Mario LamberteNEDA 8 sponsors confab RP-Japan econ partnershipLeyte-Samar Daily Express NewsJune 23, 200481. Seminar on “Rice and the Filipinos: TheLast 100 Years”Govt determined to push for planting hybrid ricevarietyOman Times; June 24, 200482. Dr. Gilberto M. LlantoCredit for farmersBusinessWorld; June 24, 200483. RPS 2003-03 College Fee Structure andPhilippine InflationDr. Edita TanHigher tuition fees and education qualityBusinessWorld; June 28, 200484. PN 2004-02 Bottleneck to Growth: InadequateInfrastructureDr. Gilberto LlantoBottleneck to growth: Inadequate infrastructurePhilippine Star, p. 14; July 5, 200485. PN 2004-02 Bottleneck to Growth: InadequateInfrastructure; Dr. Gilberto LlantoBottleneck to growth: Inadequate infrastructure(Conclusion)Philippine Star, p. 14; July 7, 200486. PN 2002-01 Impact of Agrarian Reform onPoverty ReductionDr. Celia ReyesBeneficiaries under CARP benefit from income hikeToday; July 10, 2004Rhodina J. Villanueva87. DoF set to rationalize tax exemption privilegesManila Bulletin; July 11, 2004Lee Chipongian88. (Press Release) PIDS-PhilRice SeminarSeries on The Rice and the Filipinos: TheLast 100 YearsPIDS-PhilRice Project on Rice: Scientists traceevolution of rice varieties in RPPhilippine Star, B4; July 18, 200489. PN 2003-04: Population and the FightAgainst PovertyDr. Aniceto OrbetaBirth control should be Arroyo’s priority ineconomic reform, say observersYahoo! News; July 26, 2004; AFP90. Llanto elected new PES president, succeedsBoncodinManila Bulletin, B-2; July 28, 200491. PN 2003-04: Population and the FightAgainst PovertyDr. Aniceto OrbetaAnalysts believe birth control should be president’spriorityManila Times, A8; July 28, 2004Maricel Cruz92. GMA urged to broaden power for fiscal boardThe Manila Times; July 28, 2004Niel V. Mugas93. PN 2003-04: Population and the FightAgainst Poverty; Dr. Aniceto OrbetaGloria agenda doomed if population amissPeople’s Journal; July 28, 2004; AFP37

Philippine Institute for Development Studies94. PN 2003-04: Population and the FightAgainst Poverty; Dr. Aniceto OrbetaAnalysts to Arroyo: Don’t ignore population controlPhilippine Daily Inquirer; July 28, 2004AFP95. Interview, Dr. Aniceto OrbetaANC Top Stories (On Population)ANC 21; July 28, 200496. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanQuick fixes needed to save countryToday; July 29, 2004Dave Llorito97. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanBusinesses back tax plansBalita.com; July 31, 2004Mabuhay News Service98. PN 2002-01 Impact of Agrarian Reform onPoverty ReductionDr. Celia ReyesDAR Study: Land ownership increases farmer’sincomeManila Bulletin; August 10, 200499. DPRM and PIDS AnniversaryDr. Eliseo PonceTanong ng Bayan, GMA-DZBBAugust 22, 2004Raul Virtudaso100. Interview, Dr. Eliseo PoncePro-poor development forum conductedMindanao Times; August 25, 2004101. PASCN Studies on RP-US FTARP to pursue selective FTA with US Gov’tToday; August 29, 2004Lawrence Agcaoili102. Interview, Dr. Rosario ManasanGovernment can’t ignore fiscal concernsBusinessWorld-Front page; August 30, 2004Jude T. Gulane103. PN 2003-04 Population and the FightAgainst Poverty, Dr. Aniceto C. Orbeta Jr.Overpopulation and family planningBusinessWorld, p.30; August 30, 2004Liezl Eillen Antonio104. (Press Release) Dr. Aniceto Orbeta Jr.Education Planning: Can It Solve Unemploymentof College Grads?New Vanity (magazine); August 9-16, 2004105. September is Development Policy Research MonthManila Bulletin, Editorial; September 5,2004106. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanBleeding state companies to be shut—BoncodinBusinessWorld, Front PageSeptember 9, 2004Karen L. Lema107. Development Policy Research Month andRelated ActivitiesDr. Mario Lamberte and Dr. Cristina DavidANC News, ANC Channel 21September 12, 2004Dan Cura108. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanGovt cutting lean meat, not fatManila Times; September 13, 2004Arnold Tenorio109. Development Policy Research Month andRelated ActivitiesDr. Mario Lamberte and Dr. Eliseo PonceMata ng Bayang PambansaDZRB (Radyo ng Bayan); September 14, 2004Alan Allanigue38

110. Development Policy Research Month andRelated ActivitiesDr. Mario Lamberte and Dr. Eliseo PonceCon Todos Recados, Net 25September 14, 2004Elaine Fuentes and Ross Olgado111. Development Policy Research Month andRelated ActivitiesDr. Mario Lamberte and Dr. Eliseo PonceCon Todos Recados, DZECSeptember 14, 2004Elaine Fuentes and Ross Olgado112. Development Policy Research Month andRelated ActivitiesDr. Mario Lamberte and Dr. Eliseo PonceLakbay Pilipinas, DZAR (Angel Radio)September 14, 2004Tony Cuevas and Margie Vintulan113. Development Policy Research Month andRelated ActivitiesDr. Gilberto LlantoRadio Magazine, DZRM; September 15,2004114. Development Policy Research Month andRelated ActivitiesDr. Gilberto LlantoSumbong, Tugon at Aksyon; DWSSSeptember 15, 2004Annie Rentoy115. Development Policy Research Month andRelated ActivitiesDr. Gilberto LlantoDZME; September 16, 2004116. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanPalace orders pay cuts at GOCCsBusinessWorld; September 17, 2004Karen L. Lema117. (Press Release) Development PolicyResearch MonthDevelopment forum highlights importance of riceManila Times; September 20, 2004118. Dr. Gerardo SicatThe need to reform RP’s labor marketBusinessworld; September 20, 2004119. Opening Ceremonies of the Exhibit andSymposium on RiceDr. Mario LamberteTV Patrol, ABS-CBN, Channel 2September 21, 2004Cecille Lardizabal120. Opening Ceremonies of the Exhibit andSymposium on RiceDr. Mario LamberteANC News, ANC ChannelSeptember 21, 2004Cecille Lardizabal121. Opening Ceremonies of the Exhibit andSymposium on RiceDr. Mario LamberteStudio 23 News (10:00p.m.), Studio 23September 21, 2004Cecille Lardizabal122. Opening Ceremonies of the Exhibit andSymposium on RiceDr. Mario LamberteRPN 9 news (10:00 pm), RPN 9September 21, 2004123. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanGMA backs De Venecia’s wealth-creation proposalsPhilippine Star; September 24, 2004Paolo Romero124. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanGOCCs on govt watchlist to cut deficit toP91.86BManila Times; September 23, 2004Armie Margaret Lee2004 Annual Report39

Philippine Institute for Development Studies125. PIDS-PhilRice Seminar Series on Rice andthe Filipinos: The Last 100 YearsDr. Cristina DavidPlanting (hybrid) rice is never funBusinessWorld Column: Calling a Spade...September 23, 2004Solita Monsod126. Napocor key to solution of fiscal crisis—UP profPhilippine Daily InquirerSeptember 23, 2004127. PIDS-PhilRice Seminar Series on Rice andthe Filipinos: The Last 100 YearsDr. Cristina DavidHybrid rice program needs redesigning—PIDSfellowThe Philippine Star, B-5; September 26,2004 Rocel Felix128. Interview, Dr. Rosario ManasanGetting the best out of the crisis debateBusinessWorld; September 27, 2004Filomeno Sta. Ana129. Seminar on Philippine Employment andLabor Market ReformsDr. Gerardo SicatGovernment pushed to deregulate labor marketToday; September 30, 2004Roderick dela Cruz130. Seminar on Philippine Employment andLabor Market ReformsDr. Gerardo SicatECOP, economist say deregulated labor market tocreate more jobManila Times; September 30, 2004Cai U. Ordinario131. Seminar on Philippine Employment andLabor Market ReformsDr. Gerardo SicatLabor Code changes needed to spur growthBusinessWorld; September 30, 2004Beverly T. Natividad132. Interview, Dr. Gilberto LlantoNew taxes to hurt the rich, says SalcedaToday; October 1, 2004Dennis Estopace133. Interview, Dr. Josef T. YapRP bled P4.6T since ’86 to pay for its debtToday; October 1, 2004Roderick T. Dela Cruz134. JPD 1992 (Vol. XIX No. 2-d) AggregateCorn Area Response Under Risk: SomeImplications for Prize Stabilization ProgramsMeyra MendozaGrain of truth behind corn boom, messPhilippine Daily Inquirer; October 3, 2004Michael M. Alunan135. PN 2002-17 Industry Benchmarking forImproved VAT AdministrationDr. Rosario ManasanGovernment eyes VAT on bus, jeepney operatorsPhilippine Daily Inquirer; October 3, 2004Michelle V. Remo136. Seminar on Philippine Employment andLabor Market ReformsDr. Gerardo SicatPeso depreciation to improve RP competitiveness,says economistToday; October 4, 2004Roderick T. Dela Cruz137. PN 2004-07 and 08 The Fiscal ReformAgenda: Getting Ready for the Bumpy RideAhead; Dr. Rosario ManasanOn the import surcharge: what’s not to like?BusinessWorld; October 4, 2004Hazel Jean L. Malapit138. Philippine Hybrid Rice Program: A CaseFor Redesign And Scaling DownDr. Cristina DavidAn interesting eveningBusinessWorld; October 7, 2004Solita Monsod40

2004 Annual Report139. Philippine Hybrid Rice Program: A case forredesign and scaling downDr. Cristina DavidReaction to ‘Planting (hybrid) rice is never funBusinessWorld; October 7, 2004Carlos Saplala140. PN 2004-07 and 08 The Fiscal ReformAgenda: Getting Ready for the Bumpy RideAhead; Dr. Rosario ManasanFive ways to check the fiscal problemToday; October 7, 2004Roderick T. dela Cruz141. Interview, Dr. Mario LambertePIDS says 3 tax measures are ill-advisedMalaya; October 13, 2004142. Personal Opinion on Fiscal CrisisOn debt forgivenessBusinessWorld; October 18, 2004Dr. Josef Yap143. PN 2004-07 and 08 The Fiscal ReformAgenda: Getting Ready for the Bumpy RideAhead; Dr. Rosario ManasanSenators set to hold workshop on fiscal deficitproblemPhilippine Star; October 19, 2004Jess Diaz/Jose Rodel Clapano144. PN 2003-10 No to Policy Reversal: Backslidingin Tariff Policy Can Do More Harm thanGood, Dr. Erlinda MedallaTime for high tariffs to untie the fiscal bind?Create jobs?Manila Times; October 19, 2004Arnold Tenorio145. Workshop on Fiscal Deficit for SenatorsDr. Rosario G. ManasanSenators set to hold workshop on fiscal deficitproblemPhilippine Star; October 20, 2004Jess Diaz and Jose Rodel Clapano146. PIDS Data on Tariff RatesA tax-less economic growthPhilippine Star; October 22, 2004Eduardo H. Yap147. Workshop on Fiscal Deficit for SenatorsInterview, Dr. Rosario ManasanTV Patrol, ABS-CBN (Channel 2)Oct. 22, 2004148. PN 2004-07 and 08 The Fiscal ReformAgenda: Getting Ready for the Bumpy RideAhead; Dr. Rosario Manasan and Dr. MarioLamberteSSS to run out of funds in 10 years, say ex-chiefPhilippine Daily Inquirer; October 23, 2004Michael Lim Ubac149. DP 2003-17 Philippines’ Fiscal Position :Looking at the Complete PicturePN 2004-07 and 08 The Fiscal ReformAgenda: Getting Ready for the Bumpy RideAhead; Dr. Rosario ManasanBIR to tap law studes in tax drivePhilippine Star; October 23, 2004Mike Frialde150. Workshop on Fiscal Deficit for SenatorsDr. Mario Lamberte and Dr. RosarioManasanSenators to pass tax bills, but demand infoToday, Front Page; October 23, 2004Butch Fernandez151. PN 2004-07 and 08 The Fiscal ReformAgenda: Getting Ready for the Bumpy RideAhead; Dr. Rosario ManasanFormula for disasterToday (Opinion); October 24, 2004Alvin Capino152. DP 2004-14 Rice Reforms and Poverty inthe Philippines: A CGE AnalysisDr. Caesar CororatonRice trade liberalization and povertyBusinessWorld; October 25, 2004D’Laarni Ortiz153. A Note on Competitiveness DebateDr. Josef T. YapVietnam may overtake RP in race for developmentToday; October 26, 2004Roderick T. dela Cruz41

Philippine Institute for Development Studies154. Interview, Dr. Mario B. LamberteCOA clears Garcia on cash advancesPhilippine Daily Inquirer; October 28, 2004Michael Lim Ubac155. PN 2004-09 Exploring the Philippine FTAPolicy Options; Dr. Erlinda Medalla and Ms.Dorothea LazaroRP has no systematic framework in FTA negotiations,economists sayToday; October 28, 2004Roderick T. Dela Cruz156. Interview, Dr. Myrna AustriaArmed marshals to protect RP passenger shipsToday; October 28, 2004157. PN 2004-09 Exploring the Philippine FTAPolicy Options; Dr. Erlinda Medalla and Ms.Dorothea LazaroFree trade talks frameworksBusinessWorld (Other Stories)October 28, 2004158. A tax-less growthMalaya (Opinion); October 30, 2004Eduardo H. Yap159. Interview, Dr. Mario LamberteThe showdown for the US presidencyToday; October 30, 2004Dave Llorito160. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanTurning crisis into opportunityBusinessWorld; November 1, 2004161. Press Release on the book “Winning theWar”Researchers offer solutions for managing watercrisisManila Bulletin; November 7, 2004162. PN 2004-08 Fiscal Reform Agenda: Gettingthe Ready for the Bumpy Ride AheadDr. Rosario ManasanThe smoking gunToday; November 12, 2004Roderick T. Dela Cruz163. Interview, Dr. Mario LamberteOil, power to push up pricesToday; November 12, 2004Roderick T. Dela Cruz164. PN 2003-02 Population: Does It Matter?Revisiting an Old Issue; Dr. Ernesto PerniaDoes size matterToday; November 16, 2004Roderick T. Dela Cruz165. PIDS Book: Winning the Water WarMs. Jennifer LigutonANC Top Stories, ANC Channel 21November 18, 2004; Cecille Lardizabal166. PIDS Book: Winning the Water WarMs. Jennifer LigutonANC Live, ANC Channel 21November 18, 2004Cecille Lardizabal166. PIDS Book: Winning the Water WarMs. Jennifer LigutonTV Patrol, ABS-CBN;November 18, 2004Cecille Lardizabal167. PIDS Book: Winning the Water WarMs. Jennifer LigutonMagandang Umaga Bayan, ABS-CBNNovember 19, 2004Cecille Lardizabal168. PN 2004-04 Can the Poor Benefit from theRemoval of QR on Rice?Dr. Caesar CororatonRemoving rice quota will worsen poverty, studysaysThe Manila Times; November 23, 2004Darwin G. Amolejar42

2004 Annual Report169. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanDoes ‘rationalization’ show in fiscal perks bill?Today; November 23, 2004Dave Llorito170. PN 2004-08 Fiscal Reform Agenda: GettingReady for the Bumpy Ride AheadDr. Rosario ManasanRace to bottomToday, Editorial; November 24, 2004171. Interview, Dr. Josef Yap‘No fiscal crisis in RP’ but revenues needed SunStar Cebu; November 26, 2004172. Interview, Dr. Rosario ManasanFiscal woes pulling down educationToday; December 6, 2004Roderick T. Dela Cruz173. A Note on the Competitiveness DebateDr. Josef T. YapPopular Economics: National CompetitivenessBusinessWorld; December 13, 2004Rizzarene Manrique174. Interview, Dr. Mario LamberteResources strainedToday; December 16, 2004Cher Jimenez175. PN 2004-09 Exploring the Philippine FTAPolicy Options; Dr. Erlinda Medalla andDorothea LazaroAsia: On equal footing with EuropeToday; December 17, 2004Roderick T. Dela Cruz176. Interview, Dr. Mario Lamberte6 RP cities face grave problem due to overpopulationSun Star Manila; December 17, 2004Marie Neri177. Interview, Dr. Erlinda MedallaRP economy dependent pa rin sa internationaltradeSilangan Shimbun; December 18, 2004Genivi Factao178. Interview, Dr. Mario LamberteSin tax bill ‘fine;’ lateral attrition faces scrutinyToday; December 18, 2004B. Fernandez and R. Dela Cruz179. Interview, Dr. Mario LamberteOil to push up inflation rateToday; December 19, 2004180. Third Philippine Population ReportDr. Mario B. LamberteLGUs’ population policy hitToday; December 20, 2004C. Jimenez181. DP 2002-20 The Fight Against Poverty:Have We Made an Impact?DP 96-13 Micro Interventions for PovertyAlleviation: The Philippine CaseDr. Celia Reyes and Dr. Aniceto OrbetaPhilippine Welfare EconomicsBusinessWorld; December 20, 2004Liezl Eillen Antonio182. Third Philippine Population ReportDr. Mario B. LamberteLGUs’ population policy hitToday; December 20, 2004C. Jimenez183. PN 2004-06 Rural Finance in the Philippines:A Continuing Saga in Policy ChallengesDr. Gilberto LlantoGovernment urged to frame policies suited for ruralfinance sectorBusinessWorld; December 27, 2004Ruby Anne M. Rubio43

Philippine Institute for Development StudiesANNEX FAUDIT CERTIFICATECORPORATE GOVERNMENT SECTOROffice of the DirectorCluster VI – Social, Cultural and ScientificAUDIT CERTIFICATEThe Board of TrusteesPhilippine Institute for Development StudiesNEDA sa Makati BuildingAmorsolo Street, Makati CityWe have audited the accompanying balance sheet of the Philippine Institute for DevelopmentStudies (PIDS) as of December 31, 2004 and the related statements of income and expenses and cashflows for the year then ended. These financial statements are the responsibility of the PIDS’Management. Our responsibility is to express an opinion on these statements based on our audit.We conducted our audit in accordance with laws, COA and INTOSAI standards and applicablegenerally accepted auditing standards. These standards require that we plan and perform the audit toobtain reasonable assurance that financial statements are free of material misstatement/s. The auditincluded examining, on a test basis, evidences supporting the amounts and disclosures in the financialstatements. It also included assessing the accounting principles used and the significant estimatesmade by the Auditee as well as evaluating the overall financial statements presentation. We believe thatour audit provides reasonable basis for our opinion.In our opinion, the financial statements referred to above present fairly, in all material respects,the financial position of the Philippine Institute for Development Studies as of December 31, 2004,and the results of its operations and its cash flows for the year then ended in accordance with applicablelaws, rules and regulations and in conformity with applicable generally accepted accounting principles.COMMISSION ON AUDITBy:February 09, 200544

ANNEX GBALANCE SHEETAs of December 31, 2004With Comparative Figures for 20032004 Annual Report2004 2003 Increase(Decrease)ASSETSCurrent AssetsCash (Notes 2h and 3) P 31,315,299 P 27,897,928 P 3,417,371Accounts Receivable (Note 4) 1,261,561 2,899,919 (1,638,358)Interest Receivables (Note 5) 8,472,793 7,982,831 489,962Marketable Securities (Note 6) 87,796,972 124,344,512 (36,547,540)Inventories (Note 2c) 867,693 2,040,762 (1,173,069)Prepaid Expenses 236,385 351,997 (115,612)Other Current Assets 27,600 25,600 2,000129,978,303 165,543,549 (35,565,246)Long-Term Investments (Notes 2d and 7) 231,774,681 186,106,560 45,668,121Property, Plant and Equipment (Notes 2e and 8) 13,445,378 9,597,447 3,847,931TOTAL ASSETS P 375,198,362 P 361,247,556 P 13,950,806LIABILITIES AND EQUITYLiabilitiesCurrent LiabilitiesAccounts Payable - Miscellaneous P 4,050,418 P 4,707,960 P (657,542)Guaranty Deposits Payable 368,821 331,499 37,322Due to BIR 353,608 309,026 44,582Due to GSIS, PAG-IBIG,PHILHEALTH 4,870 1,809 3,061Performance/Bidders Bond Payable 96,560 64,160 32,400Due to GOCCs,NGAs and Others (Note 9) 11,049,410 9,826,630 1,222,78015,923,687 15,241,084 682,603Other LiabilitiesDeferred Credits 3,128 3,128 0Total Liabilities 15,926,815 15,244,212 682,603Equity (Note 10)Government Equity 237,720,893 230,808,512 6,912,381Retained Operating Surplus 121,550,654 115,194,832 6,355,822Total Equity 359,271,547 346,003,344 13,268,203TOTAL LIABILITIES AND EQUITY P 375,198,362 P 361,247,556 P 13,950,806See accompanying Notes to Financial Statements (Annex J).45

Philippine Institute for Development StudiesANNEX HINCOME STATEMENTFor the year ended December 31, 2004With Comparative Figures for 20032004 2003 Increase(Decrease)INCOMESubsidy Income From National Government (Note 11) P 15,000,000 P 15,000,000 P 0Interest Income from Investment and Time Deposits 27,342,805 27,127,918 214,887Sale of Publications-Net of Cost of Publication (Note 12) 149,956 166,628 (16,672)Miscellaneous/Other Income 2,266,997 4,393,344 (2,126,347)Total Income 44,759,758 46,687,890 (1,928,132)OPERATING EXPENSESPersonal ServicesSalaries and Wages 16,847,089 16,881,372 (34,283)Social Insurance Premium & Provident Fund 3,422,279 3,487,671 (65,392)Bonus Incentive/Other Incentives 5,106,719 4,650,585 456,134RATA 1,250,828 1,225,811 25,017Pensions and Retirement Benefits - 190,000 (190,000)PERA 521,164 525,531 (4,367)Overtime Pay 212,370 273,500 (61,130)Honorarium - 20,850 (20,850)27,360,449 27,255,320 105,129Maintenance and Other Operating ExpensesDepreciation Expenses 2,440,657 2,719,188 (278,531)Utility Expenses 2,079,180 2,213,872 (134,692)Bad Debts Expenses 1,465,618 1,488,186 (22,568)Auditing Services 1,235,349 1,208,899 26,450Telephone/Internet (Note 13) 953,533 1,585,116 (631,583)Consultancy Services 617,200 2,356,618 (1,739,418)Supplies and Materials Expenses 549,836 653,432 (103,596)Security and Janitorial Services 495,221 490,909 4,312Taxes, Insurance Premiums and other Fees 420,160 438,822 (18,662)Motor Vehicle Maintenance 394,835 433,449 (38,614)Training and Seminar Expenses 335,209 1,022,924 (687,715)Gasoline, Oil and Lubricants 332,429 277,214 55,215Travelling Expenses (Note 14) 327,157 895,156 (567,999)Postage and Deliveries 285,590 487,847 (202,257)Legal Services 285,000 268,000 17,000IT Hardware and Software Maintenance 223,890 10,325 213,565Printing and Binding 217,853 381,530 (163,677)Representation Expenses 94,827 161,595 (66,768)Subscription 93,202 111,810 (18,608)Extraordinary and Miscellaneous Expenses 79,758 79,976 (218)Building Maintenance 65,340 209,723 (144,383)Advertising 42,540 55,462 (12,922)Office Equipment Maintenance 32,974 61,873 (28,899)Furniture Maintenance 23,310 30,563 (7,253)Grants and Donations 17,440 3,538 13,902Other Repairs and MaIntenance 4,370 - 4,370Rent 400 - 400Loss on Sale of Assets - 1,080 (1,080)Other Expenses (Note 15) 1,257,875 1,203,926 53,949Bank Charges 3,273 7,397 (4,124)14,374,026 18,858,430 (4,484,404)TOTAL OPERATING EXPENSES 41,734,475 46,113,750 (4,379,275)Net Income P 3,025,283 P 574,140 P 2,451,14346See accompanying Notes to Financial Statements (Annex J).

ANNEX ISTATEMENT OF CASH FLOWSFor the year ended December 31, 2004With Comparative Figures for 20032004 Annual ReportCash Flow from Operating Activities2004 2003Cash Inflows:Receipt of Subsidy for Operations P 15,000,000 P 15,000,000Collection of Income/Revenues 1,521,987 3,835,420Collection of Receivables 2,346,667 3,738,140Collection of Interest Income - PIDS Proper 29,013,103 28,260,018Collection of Interest Income - PIDS Projects 228,241 253,362Receipt of refunds of cash advances and overpayments of expenses 727,828688,413Receipts of guaranty deposits 82,391 30,767Receipts of Project Fund 17,425,644 11,216,866Total Cash Inflows 66,345,861 63,022,986Cash Outflows:Cash payment for operating expenses 36,389,100 39,761,309Cash payment for project expenses 12,710,261 12,891,171Cash payment for payables incurred in operations 1,319,538 2,439,155Cash purchases of inventories 715,160 875,589Granting of cash advances/petty cash fund 495,525 1,276,218Advances to employees/projects 3,483,390 5,132,163Remittance of withholding taxes 189,475 34,080Refund of Performance/Bidders/Bail Bonds Payable 160,163 244,076Total Cash Outflows 55,462,612 62,653,761Total Cash Provided by Operating Activities 10,883,249 369,225Cash Flow from Investing ActivitiesCash Inflow:Receipt of proceeds from sale of property and equipment - 50,000Subsidy for Endowment Fund 7,300,000 7,300,000Proceeds from maturing Treasury bills PASCN 6,587,701 12,323,253Proceeds from maturing Treasury bills & Other Securities 159,262,731 151,033,944Proceeds from maturing Treasury bonds 75,800,000 54,500,000Total Cash Inflows 248,950,432 225,207,197Cash Outflow:Purchase of Property, Plant & Equipment 4,483,062 3,354,383Roll-over of PASCN investment 4,917,283 10,321,257Reinvestment in Treasury bills & Other Securities 136,690,926 170,656,109Reinvestment in Treasury bonds 110,325,039 42,361,029Total Cash Outflows 256,416,310 226,692,778Total Cash Used by Investing Activities (7,465,878) (1,485,581)Total Cash Provided by Operating and Investing Activities 3,417,371 (1,116,356)Add: Cash Balance, January 1, 2004 27,897,928 29,014,284Cash Balance, December 31, 2004 P 31,315,299 P 27,897,928See accompanying Notes to Financial Statements (Annex J).47

Philippine Institute for Development StudiesANNEX JNOTES TO PIDS FINANCIAL STATEMENTSI. GENERAL1. Basis of ReportingThe Philippine Institute for Development Studies, isa nonstock, nonprofit government research institutioncreated under PD 1201 on September 1977. TheInstitute’s nature of operation/principal program/activities include among others:- Provide analyses of socioeconomic problems andissues to support the formulation of plans and policiesfor sustained social and economic developmentin the Philippines;- Establish a continuing channel of communicationbetween policymakers and planners, on one hand,and researchers, on the other hand;- Establish a repository for economic research informationand other related activities.The Institute’s financial statements have been preparedin accordance with the generally accepted stateaccounting principles and standards.2. Significant Accounting Policiesa. Change in Accounting TreatmentAccounts were reclassified to conform with theNew Chart of Accounts prescribed under the revisedNew Government Accounting System.b. Correction of Fundamental ErrorsFundamental errors of prior years that are materialin amount are charged directly to RetainedEarnings account, while immaterial ones arecharged to current year’s operation.c. Inventories are valued at cost using moving averagemethod. This included cost of unused suppliesand materials, books, journals and workingpaper for various research projects for resale.d. Investments are recorded at cost, interest incomepertaining thereto are recognized on accrual basis.e. Property, Plant and Equipment are carried at costless accumulated depreciation. The straight - linemethod of depreciation is used based on theirestimated useful life ranging from 3-10 years. Aresidual value computed at 10 percent ( 10%) ofthe cost of asset is set and depreciation starts onthe second month after purchase. Property, Plantand Equipment acquired from the project fundare recorded as Fixed Assets-Held in Trust.f. Liabilities are recognized at the time they are incurred.g. Income and expenses are recorded using the accrualmethod of accounting.h. Transactions in foreign currencies are recordedin Philippine peso based on the BSP rate of exchangeat the date of transactions, and at the endof the year are revalued using the rate of exchangeat balance sheet date.II. BALANCE SHEET3. CashThis account represents the cash on hand of the disbursingofficer, cash in bank and time deposits at yearend. Dollar accounts were placed on time deposits withterms of 91 days. Those with terms of 360 days wereclassified as other investments (see attached schedule).4. Accounts ReceivablesThis account is broken down as follows:2004 2003Accounts Receivable P 30,345 P 49,034Due From Officers/Employees 169,728 173,965Due From NGAs 3,507,302 54,881Due From GOCCs 22,568 3,622,756Other Receivables– Miscellaneous 492,670 494,717Total Receivables 4,222,613 4,395,353Less: Allowance for Doubtful Accounts 2,961,052 1,495,434Net Realizable Value P 1,261,561 P 2,899,919During the year, a total amount of P1,465,618 was recordedas Allowance for Doubtful Accounts to presentfairly the receivable account in the financial statements.This amount represents 50 percent of the accountdue from Glorivic Salveron and the TariffProject.5. Interest ReceivablesThis account consists of accrued interest on investmentsin Treasury Bills and Bonds in the Bureau ofTreasury and dollar time deposits with Land Bank ofthe Philippines.48

2004 Annual Report6. Marketable SecuritiesThis account consists of the following:2004 2003Treasury Bills - Investible Funds P 68,015,271 P 94,435,926Treasury Bills - Funds for Operations 18,795,887 27,269,642Treasury Bills – PASCN 985,814 2,638,944P 87,796,972 P 124,344,5127. Long-Term InvestmentsThis account consists of the following:2004 2003Investment in Stocks P 35,000 P 35,000Investment in Bonds-Investible Funds 228,935,492 183,574,788Investment in Bonds-Funds for Operations 2,804,189 2,496,772P 231,774,681 P 186,106,5608. Property, Plant and EquipmentThis consists of fixed assets acquired by the Instituteand those held-in-trust in the amount of P3,745,864which are utilized in the execution of various researchprojects. The account is broken down as follows:2004 2003Leasehold Improvements P 1,881,324 P 1,881,324Fire Fighting Equipment 2,037 2,037IT Equipment 18,017,959 13,540,747Communication Equipment 92,571 71,581Sports Equipment 17,550 -Motor Vehicle and Accessories 3,975,085 3,975,085Office Equipment 2,045,223 1,527,982Furniture and Fixtures 1,537,883 1,555,432Books 459,255 435,403PPE - Held in Trust 3,745,864 2,496,571Total 31,774,751 25,486,163Less Accumulated Depreciation 18,329,373 15,888,716Net Book Value P 13,445,378 9,597,4479. Due to GOCCs, NGAs and OthersThe details of the account is as follows:2004 2003BAR – SSSPR PAF P 3185,151 P 5,462,984BAR – A Comprehensive Assessment 932,917 1,832,905BAR – Rice and Mango 1,645,466 -BAR – RDE Network 127,485 -GTEB 298,550 -POPCOM – SPPR 1,086,083 -PASCN PROPER 1,370,972 1,519,105PIDS/PASCN - Competition Policy Project - 200,000PHILRICE 346,965JPEP Project - 468,502Asian Scholarship Foundation 32,796UNIFEM 86,555UNDP – Integration 30,037 -UNDP – Globalization - 80,280UNDP – SEA/HDR 36,149UNDP – Research Manager 116,536 34,713World Health Organization 724,046World Bank 1,027,495 225,307Other Payables 605 1,984PIDS Provident Fund 1,602 850Totals P 11,049,410 P 9,826,63010. EquityDetails of the equity is presented as follows:2004 2003Government EquityEndowment Fund P 232,440,725 P 225,140,725Investment Surplus-Held in Trust 3,745,864 2,496,571Donated Capital – Capital Assets 1,534,304 1,534,303Donated Capital–Printing and Publications 0 1,636,913237,720,893 230,808,512Retained Operating SurplusBalance beginning 115,194,832 117,256,693Income for the Period 3,025,283 574,140Fundamental Errors 3,330,539 (2,636,001)121,550,654 115,194,832P 359,271,547 P 346,003,344The endowment fund represents the total funds releasedby the Bureau of Treasury thru the Departmentof Budget and Management for PIDS EndowmentFund which was established under Presidential DecreeNo. 1201, charter creating the Institute, purposely tobe invested, the earnings of which shall be used in theResearch Operations of the Institute.III. INCOME STATEMENT11. Subsidy Income from National GovernmentThis represents the subsidy received from the nationalgovernment for operating expenses in support to theresearch operation of the Institute.12. Sale of PublicationsThis represents the proceeds from sale of various articlespublished by the Institute both sold inhouse andthrough consignment.13. Telephone/InternetThe amount represents the cost of monthly rental forPLDT telephone lines including charges for officiallong distance calls and cost of monthly service fee forthe Institute’s internet service provider.14. Travelling ExpensesThe amount represents mainly the cost of travel incurredin the Regional Fora/Consultation Meetingsconducted by the Research Information Staff in connectionwith the dissemination program of the Institute.15. Other ExpensesThis account consists of the following objects of expenditures:2004 2003Cost of Complimentary Copies P 730,783 P 566,021Health Maintenance 474,005 424,821Athletic/Cultural 7,138 113,984Miscellaneous 45,949 99,100P 1,257,875 P 1,203,92649

Philippine Institute for Development StudiesANNEX KBOARD OF TRUSTEESCHAIRPERSONHon. Romulo L. NeriSecretary, Socioeconomic PlanningDirector-General, National Economic andDevelopment AuthorityMEMBERSDr. Ledivina V. CariñoProfessorNational College of Public Administration andGovernance, University of the PhilippinesDr. William G. PadolinaDeputy Director-GeneralInternational Rice Research InstituteAmb. Edgardo B. EspirituSpecial Envoy to Multilateral and BilateralFinancial InstitutionsDr. Mario B. LambertePresident, PIDSANNEX LLOCAL ADVISORY BOARDDr. Felipe B. AlfonsoFormer President, Asian Institute ofManagementH. E. Gloria Macapagal – ArroyoPresident, Republic of the PhilippinesMr. Jaime Zobel de AyalaChairman and President, Ayala CorporationMr. Amando DoronilaEditorial Consultant, Philippine DailyInquirerDr. Raul V. FabellaDean and Professor, School of EconomicsUniversity of the PhilippinesDr. Placido L. MapaPresident, Bankers Association of thePhilippinesMr. Democrito T. MendozaPresident, Trade Union Congress of thePhilippinesHon. Felicito C. PayumoChairman, Subic Bay Metropolitan AuthorityMr. Washington SycipChairman, The SGV GroupHon. Margarito TevesPresident, Land Bank of the Philippines50Dr. Alberto P. Fenix Jr.Past President, Philippine Chamber ofCommerce and Industry

ANNEX MMANAGEMENT COMMITTEE2004 Annual ReportPRESIDENTDr. Mario B. LambertePh.D. Economics, University of the PhilippinesPostdoctoral, Stanford University(money and banking, international finance,development economics)VICE-PRESIDENTDr. Gilberto M. LlantoPh.D. Economics, University of the Philippines(money and banking, public finance, internationaltrade)DIRECTORSMr. Mario C. FeranilProject Services and DevelopmentM.A. Economics (Candidate)University of the Philippines – DilimanMs. Jennifer P. T. LigutonResearch InformationM.A. Mass CommunicationUniversity of the Philippines - DilimanMs. Andrea S. AgcaoiliOperations and FinanceM.A. Business AdministrationPhilippine Christian UniversityLEGAL CONSULTANTAtty. Roque A. SoriosoBachelor of LawsUniversity of the Philippines – DilimanANNEX NRESEARCH FELLOWSDr. Marife M. BallesterosPh.D. Social Sciences, University of Nijmegen(economic anthropology, housing and urbandevelopment issues)Dr. Caesar B. CororatonPh.D. Economics, Clark University(applied general equilibrium modeling, totalfactor productivity estimation, trade andpoverty)Dr. Danilo C. IsraelPh.D. Applied Economics, Clemson UniversityPostdoctoral, University of British Columbia(resource and environmental economics, fisherieseconomics)Dr. Rosario G. ManasanPh.D. Economics, UP School of EconomicsPostdoctoral, Massachusetts Institute of Technology(public finance, decentralization, education)Dr. Cristina C. DavidPh.D. Agricultural Economics, Stanford University(agricultural economics)Dr. Erlinda M. MedallaPh.D. Economics, UP School of EconomicsPostdoctoral, Yale University(trade and industrial policy)51

Philippine Institute for Development StudiesDr. Ma. Melanie R.S. MiloPh.D. Economics, Australian National University(money and banking, international macroeconomics)Dr. Aniceto C. Orbeta Jr.Ph.D Economics, UP School of EconomicsPostdoctoral, Harvard University(demographic economics, social sector, appliedeconomic modeling, information andcommunication technologies)Dr. Gloria O. PasadillaPh.D. Economics, New York University(trade, industrial policy, monetary)Dr. Josef T. YapPh.D. Economics, University of the PhilippinesPost-doctoral, University of Pennsylvania(econometric modelling, macroeconomicpolicy)Visiting Research FellowDr. Eliseo R. PoncePh.D. Agricultural Extension (Research andStatistics) (major) and Rural Sociology(minor), Ohio State University, Columbus,Ohio, USAM.A. Teaching Chemistry, University of thePhilippines(agricultural economics)Dr. Celia M. ReyesPh.D. Economics, University of Pennsylvania(econometric modeling, poverty analysis)ANNEX ORESEARCH ASSOCIATES52Rafaelita A.M. AldabaM.A. Economics, University of the PhilippinesSchool of Economics (UPSE)Ph.D. Candidate, UPSEAdvanced Studies Program in InternationalEconomic Policy Research, Kiel lnstitute ofWorld Economics(trade and industrial policy)Leilanie Q. BasilioBA Economics (magna cum laude), University ofthe Philippines School of EconomicsM.A. Economics, Australian National UniversityMa. Teresa S. Dueñas-CaparasPh.D. candidate, Economics of Technology andTechnical Change, University of MaastrichtDiploma in Advanced International Economics,Kiel lnstitute of World EconomicsM.A. Economics, University of the Philippines(trade and technology)Mari-Len Reyes-MacasaquitBA Public Administration, University of thePhilippines College of Public AdministrationM.A. International Development Studies,National Graduate Institute for PolicyStudies, Tokyo, JapanM.A. Public Administration (Candidate), Universityof the Philippines National College ofPublic Administration and Governance

ANNEX PAFFILIATED RESEARCHERS AND INSTITUTIONS2004 Annual ReportCielito F. HabitoAteneo Center for Economic Research and Development(ACERD)Anthony AbadEllen PalancaRosalina Palanca-TanWilma TejeroRachel RacelisLydia Yu-JoseAteneo de Manila UniversitySedfrey CandelariaVictor VenidaAteneo de Manila School of LawRoyce EscolarAsian Institute of Management Policy CenterBureau of Agricultural Research (BAR)Alma dela CruzCentral Luzon State UniversityMyrna AustriaEmily CabeginRenato De CastroAnthony ChuiAntonio ContrerasTara DonozoRene HapitanLeila Calderon KabigtingJunette PerezMa. Andrea SantiagoTereso Tullao Jr.De la Salle University - ManilaMaria CastanosRonald RodriguezForeign Service Institute, Department of Foreign AffairsTakahiro AokiAkiko Terada-HagiwaraGraduate Institute for Policy StudiesInstitute of Strategic and Development Studies, UPDilimanCanesio PredoEfren SazLeyte State UniversityHabib MacaayongGrace MajorenosEugenio ManulatMindanao State UniversityNational Statistical Coordination BoardJessica SalasPhilippine Watershed Management CouncilJeremiah CabasanMa Libertad DometitaPopulation CommissionJeremy GatdulaPriceWaterCoooperJose Ramon AlbertStatistical Research and Training CenterAntonio SumbalanVel SuminguitSustainable Agriculture and Natural ResourceManagement Collaborative - Research SupportProgram (SANREM - CRSP)United Nations Department of Economic and SocialAffairs (UNDESA)United Nations Development Fund for Women(UNIFEM)United Nations Development Programme (UNDP)Emilio AntonioJohn Lawrence AvilaJovi Dacanay53

Philippine Institute for Development StudiesPeter Lee UGeorge ManzanoWinston Conrad PadojinogCeferino RodolfoCherry Lyn RodolfoDelia TantuicoMirshariff TillahUniversity of Asia and the PacificGabrielle IglesiasJoel HernandezWinfred ManuelaCarl Vincent NadelaAdora NavarroEpictetus PatalinghugMa. Divina Gracia RoldanTaeko YasutakeUniversity of the Philippines - DilimanRowena BaconquisAmelia BelloJose Camacho Jr.Gideon CarnajeAgham CuevasLiborio CabanillaMa. Dulce ElazeguiHerminia FranciscoCorazon LamugTolentino MoyaArturo PacificadorU Primo RodriguezAgnes RolaZenaida SumaldeUniversity of the Philippines – Los BañosLarry DigalUniversity of the Philippines – MindanaoVictorina ZosaUniversity of San CarlosRosa Fe HondradeUniversity of Southern MinadanaoWorld BankWorld Health OrganizationEnrico BasilioJonas BautistaMa. Luisa FabianHope GerochiAngelina LantinMa. Chelo ManlagñitCorazon PisanoJohn Michael Ian SalasAurora TabadaIn their own capacity54

2004 Annual ReportANNEX QPIDS PROVIDENT FUND INC.AUDIT CERTIFICATEINDEPENDENT AUDITOR’S REPORTThe Board of TrusteesPIDS Provident Fund, Inc,106 Amorsolo StreetNEDA Sa Makati Bldg.Makati CityI have audited the accompanying Statement of Financial Condition of PIDS Provident Fund, Inc. as of December 31,2004 and the related Statements of Operations and Cash Flows for the year then ended. These Financial Statements arethe responsibility of the Provident Fund’s management. My responsibility is to express an opinion in these financialstatements based on my audit.I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan andperform the audit to obtain reasonable assurance that the financial statements are free from material misstatement/s. Myaudit included examining on a test basis, evidences supporting the amount and disclosures in the financial statements. I alsoincluded assessing the accounting principles used and significant estimates made by the management as well as evaluatingthe overall financial statements presentation. I believe that my audit provides reasonable basis for my opinion.In my opinion, the financial statements referred to above present fairly in all material respects, the financial position ofPIDS Provident Fund, Inc. as of December 31, 2004, and the results of operations and cash flows, for the year thenended, in conformity with generally accepted accounting principles.Certified Public AccountantPTR No. 0014947Date: January 31, 2005March 20, 200555

Philippine Institute for Development StudiesANNEX RPIDS PROVIDENT FUND INC.COMPARATIVE STATEMENTS OF FINANCIAL CONDITIONAs of December 31, 2004 and 2003See accompanying Notes to Financial Statements (Annex U).2004 2003ASSETSCash in Bank (note 1) P 285,393.89 P 215,690.35Accrued Interest Receivable (note 2) 210,205.92 164,675.54Short-term investments (note 3) 7,436,452.09 3,543,787.43Long-term investments (note 4) 5,106,631.15 6,647,874.64TOTAL 13,038,683.05 10,572,027.96LIABILITIES AND FUND BALANCELiabilitiesDue to Resigned/Retired Member (note 5) 489.56 -Withholding Taxes Payable (note 6) 1,260.00 900.00Dividends Payable (note 7) 1,904,688.11 1,303,014.29Total 1,906,437.67 1,303,914.29Fund Balance (note 8)Contributions 7,580,036.98 6,129,239.48Fund Equity 2,000,000.00 2,000,000.00Total 9,580,036.98 8,129,239.48Fund EarningsGeneral Reserve Fund 581,936.23 329,949.85Add Net Income for the period 970,272.17 808,924.34Total 1,552,208.40 1,138,874.19TOTAL P 13,038,683.05 P 10,572,027.96ANNEX SPIDS PROVIDENT FUND INC.COMPARATIVE STATEMENTS OF OPERATIONSFor the years ended December 31, 2004 and 20032004 2003INCOMEInterest Income on Investments (note 9) P 995,210.82 P 821,813.14Interest Income from Bank (note 10) 2,614.45 2,579.95Total 997,825.27 824,393.09Less: Distributable Share in Income- -Retired/Resigned Employees (note 11) 12,050.31Total 985,774.96 824,393.09LESS: EXPENSES (note 12)Trustees and Committee Members’ Fee 1,300.00 1,800.00Honorarium 10,800.00 10,800.00Professional Fees 2,000.00 2,000.00Supplies Expense 320.29 -Photocopy Expense 417.50 -Taxes and Licenses 500.00 -Miscellaneous Expense 165.00 868.75Total 15,502.79 15,468.75NET INCOME P 970,272.17 P 808,924.3456See accompanying Notes to Financial Statements (Annex U).

2004 Annual ReportANNEX TPIDS PROVIDENT FUND INC.STATEMENT OF CASH FLOWSAs of December 31, 2004 and 20032004 2003Cash Flow from Operating ActivitiesCash Paid for:Payment of Honorarium and Trustees P (11,740.00) P (11,700.00)Payment of Professional Fees (1,800.00) (1,800.00)Payment of Miscellaneous Expense (902.79) (368.75)Payment of Annual Registration (500.00) (500.00)Remittance of Withholding Tax (10,804.97) (1,935.42)Payment of Accounts Payable - (5,400.00)Net Cash Used from Operating Activities (25,747.76) (21,704.17)Cash Flow from Investing ActivitiesCash Received from:Interest on Current Account 2,614.45 2,579.95Semi-Annual Interest on T-Bonds 647,915.60 697,562.50Matured Investments 10,344,168.75 5,400,000.00Cash Paid for:Cost of Investments (12,393,825.05) (7,652,570.43)Net Cash Used in Investing Activities (1,399,126.28) (1,552,427.98)Cash Flow from Financing ActivitiesCash Received from:Fund Contributions (Members/Employer Share) 1,815,291.61 1,785,432.39Cash Paid for:Return of Contributions and Dividends (320,714.03) (189,225.29)Net Cash in Financing Activities 1,494,577.58 1,596,207.10Net Increase in Cash 69.70354 22,074.95Cash Beginning Balance, January 1 215,690.35 193,615.40Cash Ending Balance, December 31 P 285,393.89 P 215,690.3557

Philippine Institute for Development StudiesANNEX UPIDS PROVIDENT FUND INC.NOTES TO FINANCIAL STATEMENTS1 Cash in BankThis account represents the current account beingmaintained with the Land Bank of the Philippinesor the PIDS Provident Fund Account no.0052-1272-11.6 Withholding Taxes PayableThis account represents taxes withheld from honorariumof secretariat for the months of July to December2004.2 Accrued Interest ReceivableThis account represents interest earned as of December31, 2004 but to be collected only uponmaturity of the investment.7 Dividends PayableThis account represents the unpaid dividends asof CY 2003 to be distributed to the members uponsecession of their membership from the Fund.583 Short-Term InvestmentsThis account represents investments with the Bureauof Treasury and Development Bank of thePhilippines which will mature within one year, brokendown as follows:Maturity Date Rate Tenor Cost of InvestmentMaturity ValueT-Bills:Bureau of TreasuryJan. 12, 2005 6.9948% 79 days 984,882.35 1,000,000.00Feb. 23, 2005 7.6250% 90 days 295,510.58 300,000.00Oct. 12, 2005 8.9136% 352 days 1,011,815.06 1,100,000.00Oct. 26, 2005 8.9334% 364 days 1,008,872.02 1,100,000.00Dec. 07, 2005 8.8956% 63 days 1,835,372.08 2,000,000.00SUB-TOTAL P5,136,452.09 5,500,000.00Development Bank of the PhilippinesAug 03, 2005 8.8750% 350 days 2,300,000.00 2,456,070.58GRAND TOTAL P7,436,452.09 P7,956,070.584 Long-Term InvestmentsThis account represents investments with the Bureauof Treasury and Land Bank of the Philippineswhich matures beyond one year, brokendown as follows:Maturity Date Rate Tenor Carrying Amount Maturity ValueT-Bonds:Bureau of TreasuryOct. 30, 2005 7.8750% 2 years 1,000,000.00 1,000,000.00Oct. 24, 2007 10.074% 3 years 1,095,311.54 1,100,000.00Oct. 11, 2011 14.8500% 10 years 1,724,476.40 1,600,000.00SUB TOTAL P3,819,787.94 P3,700,00.00Land Bank of the PhilippinesDec. 05, 2006 9.7500% 3 years 1,286,843.21 1,282,447.62GRAND TOTAL P 5,106,631.15 P 4,982,447.625 Due to Resigned/Retired MemberThis account represents unclaimed payments toresigned/retired members of the Fund.8 Fund BalanceThis pertains to the total fund balance consistingof: (a) contributions to the fund by the PIDS andFund members; (b) equity fund or the initialfunding of the Fund amounting to P2.0million asauthorized by the PIDS Board of Trustees perPIDS Board Resolution No. 97-05 dated July 24,1997; and (c) fund earnings consisting of theGeneral Reserve Fund or that percentage of earningsof the Fund set aside for specific purposesand the unappropriated net earnings.9 Interest Income on InvestmentsThis represents the interest earned from investmentsin Treasury Bills and Treasury Bonds.10 Interest Income from BankThis represents income from interest earned fromsavings/current account for the quarter endingDecember 31, 2004.11 Distributable Share in Income–Retired/ResignedThis represents the share in income of retired/resigned members computed at the time of theirresignation/ retirement.12 ExpensesThis represents the various expenses incurred inthe operations of the fund including but not limitedto honorarium of secretariat and trustees, supplies,photocopy, annual registration to BIR andauditor’s fee.

2004 Annual ReportANNEX VPIDS EMPLOYEES ASSOCIATIONSTATEMENT OF FINANCIAL CONDITIONAs of December 31, 2004AssetsCash in Bank 21,844.30Cash on Hand 986.87Accounts Receivable 8,400.00Total 31,231.17Liabilities and Fund BalanceLiabilities -Fund BalanceFund EarningsIncome - Prior Year 16,401.79Adjustment - Prior Year (500.00)Income - Current Year 15,329.38Total 31,231.17ANNEX WPIDS EMPLOYEES ASSOCIATIONSTATEMENT OF OPERATIONSAs of December 31, 2004INCOMEMembers contribution - current 5,300.00Members contribution - prior 200.00BINGO sales 13,716.63Fundraising/donations 2,475.00Interests - CY 2004 56.49Total 21,748.12LESS: EXPENSESService Charge Bank/Witholding tax 821.29BINGO prizes/expenses 4,597.75Kids’ Christmas Party 1,000.00Total 6,418.74NET INCOME 15,329.3859

Philippine Institute for Development StudiesAnnual Report Editorial StaffMario B. LamberteGilberto M. LlantoMario C. FeranilJennifer P.T. LigutonAndrea S. AgcaoiliRoque A. SoriosoEditorial Advisory BoardJennifer P.T. LigutonEditor-in-ChiefGenna J. EstrabonAssociate EditorSheila V. SiarJane C. AlcantaraMa. Gizelle R. GutierrezClaudette G. SantosProduction StaffValentina V. TolentinoRossana P. CleofasExchangeDelia S. RomeroGalicano A. GodesNecita Z. AquinoAlejandro ManaliliCirculationMa. Gizelle R. GutierrezCover Design and PhotographyGenna J. EstrabonDesign and LayoutThe CoverThe United Nations General Assembly has declared 2004 the InternationalYear of the Rice (IYR). It is a perfect recognition of the role ofrice in reducing hunger and poverty and eventually achieving foodsecurity in many nations.60In recognition of this declaration, the Institute organized its own activitiesto celebrate: through policy research. On its 27th anniversary,the Institute held a series of seminars with rice as the focal point.Photo shows Dr. Cristina David making a point on an issue duringsaid seminar as Ms. Winnie Monsod of the University of the Philippinesand Dr. Ed Redoña, deputy executive director for Researchand Development at the Philippine Rice Research Institute, look on.