Assessment of the Philippine economic reform program, evaluation of past USAID program assistance, and future recommendations : final report

are reviewed in this report. Part I provides a context for the policy and program review. Part II evaluates four program grants made between 1984 and 1987 - Rural Productivity Support, Development Support, and Budget Support I and II - concluding that A.I.D. provided timely and desperately needed balance of payments support during these critical years, and that local currency contributions were also helpful in offsetting budget deficits and cutbacks in capital expenditures; minor implementation problems were experienced in the management of local funds. Part III contains an indepth analysis of seven areas of structural and sectoral reform: trade policy and investment incentives, tax reform, government corporations and financial institutions, the financial and agricultural systems, public sector investment and decentralization, and transportation and transport infrastructure. It is concluded that the policy reform efforts begun in the early and mid-1980's have been generally positive. The current challenge is to continue in the direction already established and to regain the momentum lost during the change in governments. Part IV shapes the findings of Part III into a national reform agenda. Highest priority is given to trade liberalization, currency devaluation, an improved tax system, deregulation of inter-island transportation, and increased maintenance of regional infrastructure; secondary emphasis is placed on privatization, financial sector efficiency, investment incentives, agricultural policy reform, and reducing economic favoritism (e.g., artificial monopolies, quotas on selected export products). Specific recommendations are made for A.I.D. (Author abstract, modified)