Banks and money service businesses were identified to be the sectors primarily and widely used by criminals to launder the proceeds of crimes. The level of national money laundering vulnerability, on the other hand, is medium. Casinos have high vulnerability, while money service businesses and pawnshops have mediumhigh vulnerability. The rest of the sector is medium. However, terrorism threat in the Philippines is high.
This led to negative net national saving from 2002 to the present and to a continuous transfer of resources from the business sector to the oversized, low-productivity public sector. This model favoured present consumption at the expense of the future and was underpinned by the illusion that growth could be driven by the public sector ad infinitum.