The Philippines has best withstood the regional impact of the East Asia financial crises, achieving a fairly robust export growth, and suffering perhaps, less severe social repercussions. However, the severity of the crisis has been felt as of 1997, and the challenge of economic recovery remains uncertain, with shaken investor confidence. The objectives of this report are to provide an assessment of the economic, financial, and social of the regional crisis, and to assist the Government in the development of a strategic agenda for a sustainable medium-term economic recovery. Following an economic assessment, the report addresses reform issues within the corporate and financial sectors, with an emphasis on improving requirements for corporate governance and transparency, particularly beneficial on credit access for small and medium enterprises. The successful export performance is reviewed, with suggestions to improve policy measures which may have negatively affected the export competitiveness of labour intensive consumer goods vs. the electronics export boom. Social issues are addressed, reviewing poverty trends and inequality, and outlining social protection priorities. Environmental degradation is assessed, reviewing the institutional integration and sectoral priorities.
