Good institutions are indispensable For more than two decades now, we have been putting in place structural reforms that have liberalized key industries, including utilities, the power sector, and the banking system. We have adopted legislation aimed at improving governance in government corporations (GCG) and public procurement (GPPB); as well as ensuring fair competition in industry and vital services (PCC).
These reforms have helped raise the country’s total factor productivity (TFP) and are seen to help further reduce incremental capital output ratios (ICOR). These efforts complement the ongoing reforms to further improve “ease in doing business” and lessen “frictions” for investments in the Philippine economy.