Analysis of policy constraints affecting the rural non-agricultural sector in the Philippines

In the long run, the best way to achieve sustained growth in the RNA sector is to follow the sound trade and monetary policies being promoted by the ongoing macro-economic policy dialogue. Since most of the employment in the RNA sector is in small businesses which provide consumer goods and services to the agricultural sector, a very strong link exists between growth in the two sectors. In the medium term, policies to increase agricultural growth will do more to increase RNA growth than all policies aimed directly at the latter. Nonetheless, certain measures can and should be taken to ensure that the RNA sector participates fully in the country"s overall growth. A 15-point RNA development strategy in terms of rural infrastructure, investment incentives, credit, and local government institutions is detailed. (Author abstract, modified)