Though the Philippines is considered the Southeast Asian economy worst hit by the COVID-19 pandemic, it has been one of the strongest performing economies in the region for the past twenty years. Tracking the economic dynamism of the Philippines economy since the post 2008–09 global financial crisis, the book provides fresh perspectives that cut through the previous model of divergent development in East Asia.
This edited multi-author volume is a collection of nine chapters, of which eight chapters deal comprehensively with different thematic areas of economic development. They include poverty (chap. 2), infrastructure (3), education (4), health (5), environment (6), energy (7), finance (8) and governance (9). The approaches followed by the contributors are mainly descriptive, interpretive and analytical data-based narratives of achievements and deficiencies in the multiple facets of development. Chapters 2, 3 and 7 go beyond qualitative analyses and include quantitative assessments to provide additional context for policy. Specifically, chap. 2 employs a recursive dynamic Computable General Equilibrium (CGE) model to assess growth trajectories and link the results with poverty eradication; chap. 3 provides scenario simulations for different pathways to urbanisation to identify the required distribution of infrastructure investments; and chap. 7 forecasts electricity consumption and prices to relate to energy generation requirements and affordability.
Each chapter in the book follows a standard format, as they are framed around three main parts. The chapters typically begin with a description of the progress, achievements and current state of play of the specific research topic. Then follows a discussion of the major issues and challenges related to the topic. Finally, the chapters lay out key elements of policy reform to address the underlying weaknesses and sustain the development momentum.
The growth constraints identified from chapters 2 to 6 and 9 — inequality and poverty; underinvestment and infrastructure deficits; limited access and low quality of education; fragmented health system and poor health service delivery; policy distortions and capacity interventions; and poor governance and weak institutions — are similar to earlier diagnoses of problems confronting the Philippines economy (see Asian Development Bank, Philippines: Critical development constraints, 2007; and Diagnosing the Philippine economy: Toward inclusive growth, 2009). Having said that, some new challenges related to economic resilience (see World Bank Group, Systematic country diagnostic of the Philippines: Realizing the Filipino dream for 2040, 2019) and sustainability have also been considered in this book, such as environmental resource conservation, disaster (risk) management (chap. 6), and energy capacity (chap. 7). Worth mentioning here, however, is that the complex issues of resilience and sustainability are not tackled explicitly in this book.
Another plus point: the book offers important extensions to previous related research. Herein are specific examples of the deeper implications of the derived arguments and the informed recommendations. The key message of chap. 2 is that pro-poor growth in the presence of high initial inequality has implied conditions for long-term coping strategies. Alternatively, two contributions provide opposing viewpoints on energy policy that are thought-provoking: subsidies for renewable energy (chap. 6) and a mandate for a new fuel mix (chap. 7) could end up as policy mistakes with counterproductive results on economic well-being and blended power generation respectively.
The final chapter (9) lends support to the mainstream discourse on poor governance in the Philippines. The governance issue, as adequately pointed out in this final chapter, is a primary impediment for addressing many of the growth constraints identified in the previous chapters. It is also interrelated with weak public financial management (chap. 8).
While the Editors of the book recognise that the Philippines’ growth performance is no longer divergent from the other Association of Southeast Asian Nations economies, they provide no indications about the country maintaining its growth momentum. It is therefore reasonable to say that the multiple conditions of the Philippine economy as presented in this book, coupled with Duterte's statist approach to economic development, provide an uncertain picture of the future of the country — continuity or change.
To sum up, the book will appeal to scholars and students of international development. The breadth of the scope of topics considered and the related challenges provide useful insights for further in-depth academic exploration of the issues. The book also has relevance to policymakers as it identifies major challenges and policy issues that need to be addressed.
