Policy Research Helping Provide Affordable Rice to Filipinos

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