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The Policy Development Process and the Agenda for Effective Institutions: the Philippines. Gilberto M. Llanto The Micro Foundations of East Asian Economic Integration Hotel Okura, Tokyo, Japan February 26, 2007. Institutions and the policy development process. Implementing institutions

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the policy development process and the agenda for effective institutions the philippines

The Policy Development Process and the Agenda for Effective Institutions: the Philippines

Gilberto M. Llanto

The Micro Foundations of East Asian Economic Integration

Hotel Okura, Tokyo, Japan

February 26, 2007

institutions and the policy development process
Institutions and the policy development process
  • Implementing institutions
  • Supporting institutions: (a) coordinating body and (b) independent policy review institution

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

slide3
The paper discusses role of supporting institutions in the policy development process and offers suggestions on how to make them more effective.

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

current economic situation
Current economic situation
  • Modest economic performance (GDP growth Q1 to Q3 at 5.4%; fiscal deficit, 2.7% of GDP in 2005; expected to decline to 0.9% in 2007.
  • Low level of productivity
  • Huge public debt
  • BUT growth potential is considerable

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

what to do
What to do?
  • Need to accelerate economic policy reform efforts
  • As economies evolve, so should structures and institutions
  • Economic reform has to be continuous.

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

supporting institutions
Supporting institutions
  • Coordinating institutions: National Economic and Development Authority (NEDA) and the Department of Budget and Management (DBM)
  • Independent policy review institution: Philippine Institute for Development Studies

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

recent reform effort by dbm
Recent reform effort by DBM
  • Public expenditure management reform: (a) medium term expenditure framework (MTEF), (b) organizational performance indicator framework (OPIF), and (c) accountability, monitoring and evaluation framework.

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

slide8
OPIF
  • Outcomes and outputs framework: (a) support policy development process, (b) strengthen departments’ internal management and (c) strengthen external reporting for accountability purposes

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

slide9
Logical frameworks done for 20 departments
  • OPIF document to accompany the budget documents to be submitted to Congress (national expenditure program, President’s budget message)

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

main challenge to opif mtef
Main challenge to OPIF, MTEF
  • Congress acceptance of three year MTEF framework and OPIF which fosters accountability
  • Convincing congress that good economics is good politics; coordinating bodies (DBM, NEDA) need to improve technical and political skills

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

independent policy review institution
Independent policy review institution
  • Philippine Institute for Development Studies has statutory independence and capable research staff, but it is financially weak and dependent on government subsidy for operations.

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

slide12
Need to improve capacity of policy review institution
  • Australian experience shows benefits of good evaluation: (a) pinpoints accountability, (b) reduces cost, and (c) leads to good policy choices.

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

concluding remarks
Concluding remarks
  • The policy development process needs supporting institutions: (coordination tasks as well as independent review)
  • Policy development process is not a disembodied phenomenon.
  • The message (content) of the reform is important but the medium (effective institutions, both implementing and supporting) is also critical.

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions

slide14
Thank you!

G M LLANTO- The Policy Development Process and the Agenda for Effective Institutions