The pace of growth in the Philippines is slower than that of many neighbouring countries, and despite increasing growth in the period before the current global financial crisis, domestic investment remained weak, and had a declining share in gross domestic product. Understanding limits to growth in the Philippines’ economy and how they may be counteracted is crucial for policy makers seeking to encourage economic development.

‘Diagnosing the Philippine Economy’ investigates the binding constraints on economic development, by following a growth diagnostics approach. Articles within this collection cover the areas of macroeconomic management; trade, investments, and production; infrastructure, human capital; equity and the social sector; poverty reduction efforts; and governance and political institutions. The studies’ findings provide insight for politicians, academicians, and economists into the issues and their potential solutions.

Based in Manila, Asian Development Bank is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Dante Canlas is the Enrique Virata Professor of Economics at the University of the Philippines and Editor of ‘The Philippine Review of Economics’. He is also the Chief Executive Officer for the Millennium Challenge Corporation’s Philippine Program.

Muhammad Ehsan Khan is a Senior Economist at ADB’s Economics and Research Department (ERD) and has served as a Project Economist in ADB’s Southeast Asia Department.

Juzhong Zhuang is an Assistant Chief Economist at ADB’s Economics and Research Department (ERD).

Foreword; Preface; Abbreviations and Acronyms; Ch 1. Introduction; Part 1: Overview and Synthesis; Ch 2. Development Performance and Policy; Ch 3. Critical Constraints to Growth and Poverty Reduction; Part 2: Background Studies, Ch 4. Macroeconomic Management; Ch 5. Trade, Investments, and Domestic Production; Ch 6. Infrastructure; Ch 7. Human Capital; Ch 8. Equity and the Social Sector; Ch 9. Poverty Reduction: Trends, Determinants, and Policies; Ch 10. Governance, Institutions, and Political Economy; Index

‘Recommended.’ —J. S. Uppal, SUNY at Albany, ‘Choice’