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Institutional Weaknesses, Governance Risks Could Weigh on PH Economic Momentum—PIDS Study Warns


This quarter’s issue of the Development Research News (DRN) examines the country’s development alongside the institutional and structural factors that influence the distribution of its gains across communities. The lead article points to governance risks and weakened institutional credibility as key pressures on investor confidence and economic momentum. The succeeding article discusses how election-year spending can lead to short-term increases in consumption, employment, and public expenditure, but sustaining these gains relies on institutional strength, predictable fiscal management, and effective investment execution. Another article highlights that while the services sector continues to be a major driver of output and jobs, many workers remain concentrated in low-productivity, low-wage roles, emphasizing the need for productivity-enhancing reforms. Additional articles tackle long-standing gaps in power transmission, tourism connectivity, and water service delivery, primarily due to delays, regulatory weaknesses, coordination challenges, and fragmented governance. The issue concludes with an assessment of the RoRo network, which shows concentrated gains in port areas and income losses in nearby municipalities, underscoring the need for development planning that considers spatial impacts. 



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