°' L. XI
•
NO. i
..
: January- February 1993 ..
..
..
" ::
:
..
..
ISSN 0115-9097 :
. .
•
.
":.
i
.
Attracting Foreign Direct Investment to the Philippines by Dr. Mario
B oLamberte
In the last two years, the Philippine government has initiated several bold measures to attract foreign investment to the country. One of the most significant measures is the passage of the Foreign Investments Act (FIA) of 1991, which liberalizes the entry of foreign investors. Specifically, restrictions on the extent Of foreign ownership of export-oriented enterprises have been removed, Foreigners may own as much as 100 percent of the equity of domestic-oriented enterprises, unless their equity participation is prohibited or limited to a smaller
The FIA was accompanied by the phased liberalization of the foreign exchange markets that began in the mid-1991. Towards the second half of 1992, foreign exchange controls have been reduced to the barest minimum, For instance, foreign investors are now entitled to full and immediate capital repatriation/dividend/interest remittance privilege without prior Central Bank approval. Exporters may retain and use freely all their export receipts.
percentage by existing laws or by the provisions of the Act.
Although the liberalization measures have provided a better
Trends In Investment
Foreign•
Direct:
Drained of resources, and compared to any other time period in its history, the Philippines needs infusion foreign investments more thanof ever in the uncertain
Asian Institute of Tourism (A1T) Hotel. Their participation in Philippine development was dis_ cussed,
1990s. Dr.MarioB. Lamberte,PIDS Vice-President, discusses the fac-
Three Pulong Saliksikan sessi0ns were held during the last two
tors that
attract direct foreign
oo
environment for foreign investments, they would be rendered ineffective if other determinants of foreign investments remain unfavorable. This paper therefore tries to examine the important determinants of foreign direct investment (FDI) with the view of suggesting policies that would complement the liberalization measures to attract more foreign investment to the country. As a percent of GNP, the gross FDI seems to be small. Except in 1973, 1976-1977 and 1987-1990, it was less than 1 percent The highest ratio occurred in 1988 at 2.8 percent. Table 1 shows the gross in flow, outflow and net FDI during the period 1970-1990. The data are taken from the balance-of- payments table which are based on the reports submitted by banks to the Central Bank. They therefore reflect actual flows. _
In absolute
i i!iiii:! i:i'
Our unheralded partners in Philippine progress, the various volunteer were recognized during thegroups, observance of Intema-
months of 1992. Ms. Lorelei de protected commodities. Dr. Danilo Israel gave insights oncatfish consumption in the US. American SantosAmerica," allayed • lawyer fears of aLeonard "fortressNorth
] /7 S i d o_ %= : :PI_/ _$a:liksilian::_::::::::: _i!:5:Sessi6_ _rN0_,_l)_i:i))_ !::i:i@: _::December1992 _____________i___________________________);______ :.). ...::::"i:):.:..:.).:i).:..:.....:.:.:i.
tional Volunteer Day on De.tuber
in view of the implementation of
:.::_!_:):_::_:::::VOiu_te_rJfn_.:._":.:..:.. ).:::.:.'...:):i:i:.
2, 1992, whenwas a conference on volunteerism held at the
the North American .Free Trade Asteement(NAFTA).. ...
_:•i•_••_!•••_:ch_g_:_•i:•:_••_•)••)•••• _' J:.._-------- . .......... -- :.,.........,:.:.. .................... :._::::.,.,:=..;_
DEVELOPMENT
RESEARCH NEWS
January - February 1993
terms, the annual gross inflow of FDI had been erratic throughout the indicated period and had never gone beyond Uf:_255 million before 1987. However, FDI
the two countries whose annual net FDI had not yet exceeded US$1 billion in any year during the indicared period. Of the total net FDI in the ASEAN region, the
increase the profitability of those investments. Thus, it is expected that growth in GNP will have a positive effect on the flow of foreign direct investment.
rose significantly during -the period 1987-1990, to which can be mainly attributed debt toequity conversions. --
Philippines' share was the lowest, averaging 4.5 study. percent In during the period only under contrast, the averages for Indonesia,
Exchange rate is another factor that affects the flow of foreign
Outflows of direct foreign investment, which consist mainly of capital withdrawn by foreigners from the economy, were significant in certain years, resulting
Malaysia, Singapore and Thailand were 15.4 percent, 30.3 percent, 40.0 percent and 9.8 percent, respectively. This seems to suggest that the other four ASEAN countries are more attractive to
in a negative net FDI. Also, the magnitude of the outflows seemed to have increased in the 1980s relatire to the 1970s. Were it not for the inflows through .the conversion scheme in the last four years, the magnitude of the net FDI in the 1980s would have remained at the level of the 1970s.
foreign investors
Table 2 compares the net FDI of the Philippines with those of other ASEAN countries during the period 1970-1989. The Philippines was the only ASEAN country that experienced a negative net FDI for more than one year. It is one of Tlbll
direct investments. overvalued domestic A severely currency reduces the incentives to forNgn investments. In the first place, foreign investors find it very costly to come in at the time when the domestic currency is overvalued
than the Philip-
pines, Factors Affecting The Flow Foreign Direct Investment
since they have fewer claims to domestic currency for every unit of foreign currency they bring in. Second, if the exchange rate is suddenly adjusted to the more realistic level at the time when foreign investors are about to repatriate their profits and/or capital, they will suddenly find themselves with considerably reduced repatriated profits and/or capital.
Of
The flow of foreign direct investment into the country may be affected by macroeconomic environment. A steadily growing domestic economy will likely attract more foreign direct investments. This is true especially for those foreign direct investments that go to domestic-oriented industries because an expanding domestic market will likely
1. Foreign Oire_t Invl_tment_. (In million US dolors)
Prices of the factors of producfion, especially labor, affect the flow of foreign direct investments. The more competitive the domestic wage rate, the more foreign in-
1970-1_90
........................................................................................................................... Item 1970 1971 1972 197"5 1974 1975 1976 1977 1978 1979 ............................................................................................................................
InflowNew foreign investment Rei nves__L'=dearn_n_ Techni=at Fee_ _ o_her_ canvet'_ed into _oit 9 [lan k in_er-branch op_l_iOn_ Debt taeuity ¢onwrsions O_her_
7 4
Dir_t
4
119 83
2
36
4
13 _
-(*
-22
.........,_3 2
Capital for inveBtr0entabroad capital withdrawn Others Total
_
_ 27 -28
Inv¢_tr0entS,Nel
92 6/*
152 116
198_ 67
236 130 78
134 60 62
146 62 58
28
._6
27
2_
8
10
4
_ 16
29 20
60 1
18 5
25 10
12 ]
20 5
_0 85 I
64
28
125
144
_16.
100
XO
.................................................................L......................................................... It_ 1980 1981 1982 1983 1984 198_ _gB6 1987 19BB 1989 1990 ........................................................................................................................... Inflow New foreign investrP_0t Reinvested earnings Technic_[ fe_ & others
-
119 7£ ,_9
converted into equity Dank intcr-br_n_h aperzs_ions Debt conversions Others O_ftow C_plt_[b4OedinVeS_raen_ .... Capit=l withdra=n Others Total Direct Inves_n_,
Be_
..... = 5
248 91 62
194 25 4/=
90 124 ..... 5 I
255 119 26
137 32 15
124 9 10
186 17 20
_,39 34 22
1077 81 IT
961 9_ 56
706 I'[I 28
98
61
12
29
31 41 33
46 68 35
17 41 287 38
B_ 806 83
_B 74 306 _94
2_ 101 226 _58
'
221
7_{
17T
14_
120
107
1,6
11_
91
118
226
86 104 31
47 24 2
01 116
_7 116
15 102 3
24 37 &6
2 35 9
1 58 54
2 7& 15
95 2_
4 204 18
-I02
175
112
17
17
I_*0
326
986
84_
480
_7
......................................................................................................................... Source:
Select_ Phil _ne Economic Indicators, Central 8_nk, Depar_men_ _f Economic Research-lnternat{onal
RESEARCH NEWS
Table
2.
1970 1971 1972 1973 1974 1975 1976 1997 1978 1979 1980 198_ 1982 1983 1984 1985 1986 1987 198_ 1989 1990
Net Foreipn Direct Investments 1990 to 1990. (In millÂŁon US dollars)
INDONESXA
MALAYSIA
83 I_9 207 15 (49) 476 344 235 279 226 183 133 225 292 222 310 258 385 576 682 ......
94 i00 114 172 571 349 381 406 500 573 934 1,265 1,397 1,261 797 695 489 423 719 1,846
Fipures
So_Tces:
Key
Indicators Office,
attracted to the wage legislathe competiwage rate wages are the producwords, the the
and labor foreignto the inattracted competitiveness
of
industrial foreign investa country experiencing not attract even if the competitive, quality of countryis exof foreign of it raises business in the making all busiventureslessprofitable, affects the country to especially those going into sector. Any domestic-
in
ASEAN
PHILIPPZNES*
(28) (4) (22) 64 28 125 144 216 i00 20 (102) 175 17 112 17 17 140 326 986 843 480
"
taken from "Sel.ected Yearbook_ "
International
between
January - February
Philippine
NationB
S INGAPOF_E
THAILAND
93 116 191 389 597 611 186 _08 187 669 1,138 1,675 1,298 I,OS5 1,210 809 1,533 2,696 2,710 3,963 .........
285 390 559 719 1,339 1,648 i,_36 1,171 1,072 1,539 2,340 3,535 3,124 3,098 2,646 1,993 2,681 4,012 6,073 $,984
IndicaDors
of
ADB
EConomics
Statistics.
oriented sector is a penalty to export-oriented sector. At the same time, a highly protected economy usually cannot expand its domestic market as rapidly as a more open economy, thereby preventing the realization of scale economies. The fiscal incentive
structure
plays an important role in attracting foreign investment. It could partly offset the additional cost of doing business arising from the inadequate infrastructure and the restrictive
TOTAL
43 39 69 79 192 87 81 108 6 51 187 287 187 348 400 162 261 182 1,082 1,650
Economic
of Developing Momber Countries Asian Development Bank_ Financial
1993
traderegime,
domestic currency while a value greater than 1 indicates an appreciation. The wage-productivity differential was arrived at by cornputing the ratio of the real minimum wage rate for the National Capital Region (at 1978 prices) to the labor productivity of the industrial sector. The latter was obtained by dividing the real value-added of the industrial sector to the number of full-time equivalent workers in the strikes same sector. The number of refers
to the number
of strikes
The hypotheses discussed above are tested by regressing the flow of foreign direct investment on the real GNP growth rate, the real effective exchange rate, wageproductivity differential, number of strikes, government infrastructure expenditure, trade regime, and industrial incentive policy using data for the period 19701989. The dependent variable is the ratio of the net foreign direct investment of the Philippines to the total net foreign direct investment of ASEAN countries. The
newly declared for the indicated year as reported by the Department of Labor.
data on the real effective exchange rate index were taken from the Central Bank. A value less than 1 indicates a depreciation of the
payments crisis. A dummy variable is used here: a value of 1 for the years 1981-1982and 1986-1990; 0if outside these years.
For infrastructure, the ratio of government expenditure on construction to GNP is used as a rough indicator of the quantity and quality of infrastructure in the country. The Philippines started its import liberalization program in 1981. However, it was temporarily suspended during the period 1983-1985 as part of the effort to deal with the balance-of-
DEVELOPMENT
RESEARCH NEWS
Januar,
- February
1993
There were three major industrial incentive policy regimes during the period 1970-1990. The Omnibus Investment Code of 1981 merely codified the incentives given during the 1970s. The first major change, therefore, occurred in 1983 with the passage of the Investment Incentive Policy Act. This was changed again in 1987 with the issuance of Executive Order No. 226, otherwise known as the Omnibus Investments Code.
Specifically, real GNP growth rate has a positive effect on the share of the Philippines in the total net foreign direct investment in the ASEAN region. A decline in the real effective exchange rate index (a real depreciation) increases the share of the Philippines in the total FDI to ASEAN countries. On the other hand, the higher the ratio- of the real minimum wage rate to the labor productivity in the Philippines discourages foreign invest-
the results above. One is that the economy must achieve some growth to attract foreign investment. The stabilization measures adopted by the government in the last two years (i.e., 1991-1992) placed too much emphasis on reducing inflation at the expense of growth. It is not therefore surprising that foreign direct investment has been sluggish in the last two years despite a more liberal foreign investment law.
Two dummy variables are assigned to the different incentive policy regimes. The first dummy variable was assigned to the 1983 Investment Incentive Policy Act: a value of 1 for the years 1983-1986; 0 if outside this period. The second dummy was assigned the 1987variable Omnibus Investmentto
ment from coming to the country. The same is true with the lack of industrial peace. That is, the higher the number of labor strikes, the lower would be the flow of foreign investment into the Philippines. The inclusion of infrastruc-
Clearly, the government needs to institute an appropriate exchange rate policy to attract foreign investment. An overvaluation of thedomestic currency discourages foreign investment. Unfortunately, however, the domestic currency has been ap-
Code: a value 1 for the years 1987-
ture, trade regime and industrial incentive policy regimes in the equation did not improve the result of the model. Also, these variables did not yield statistically significant coefficients. These results may be further investigated by using other indicators for the
preciating since 1991, which is caused by a combination of factors specifically the dampening effects of the stabilization measures, the substantial inflow of foreign remittances, and the heavy inflow of short-term, speculative capital to gain from interest arbitrage.
1990; 0 if not within 1987-1990.. The best result is shown in Table 3. Real GNP growth rate, real effective exchange rate and wage-productivity differential all have statistically significant coeffidents while the number of strikes has a coefficient that is marginally significant. The signs of the coeffi-
variables mentioned above.
dents of the conform to
There are several policy implications that can be drawn from
Policy Implications
four variables our hypotheses,
TaJ_,le
_.
leactors
Affeet;illc/
th¢_
_21o%" of
Poroigr_
Investm.nt,
to th. _hllippi_._ _dep_d_twri_blo_
coe±±i_i_t_ _._ (3.88)* _.0_ (,'_.09)*
Constant _e_ _N_wowtb_te Real
effect:Lye
exchange
_ate
-0.204
(-_. 33)** Wage-Productivity
-13.422
Adj_ted R-_q.... D_rb_ w_t_o_ _tati_t_= E-__t_t_sti_
(-_.gs)*** -0-007 (-1.68) 0.s2 1.5s 6.2
S_mple Period
1970 - 19_
Number
Notes: •
differential
of
strikes
* ** •**
significant Significant signif.[oant
at at at
:t percent level. 5 percent level. _0 percent level.
A rational wage policy consistent withpolicy labor implication productivity that is another seems to emerge from the results above. Wages that are set way above the productivity of labor unnecessarily increases the cost of production, which makes Philippine• exports less competitive. Considering that the bulk of foreign investment goes to labor- intensive export-oriented sectors, the lack of competitiveness of Philippine exports obviously discourages foreign investment. The general conclusionthat canbe drawn from thediscussions above is that the institution of a liberal foreign investment legal framework is not enough to attract foreign investment. It must be accompanied by appropriate macroeconomic policies.
widega
ev6fl
ii ........ ......
...............
....
the::largest: foreign: equity; coral : :: tT1bute the: highest addext;: , ....concentrated • and:are:the:most : : among :the ....fhree .... see{orS The .................. ..... ..... liberalized Sector averages were closest to that of manufacturing: ....MoreOver; forei ...... ........ ....... 0;:B (for review) " .... n:::e uit .....is .... ........ ::and: C::(for continued regulahon. . . )g q.... Y; : :::Im'-ortl ralizati ,, satety . posmvmy, : g : reasons ot* puoue: .nemtn; . " _ ana_ mrms," negatlveJy, .......... _6re :dere_niati0n " H:oweveti" a:: :aa5 fiaax.._.i :aa,., _;tgx: t-t.Jl I _.. correlated with the likelihoocl:that : {21 KI u I I r.Al _g,._ _._U l I .y] LC_tI£ t I • K 3 all -mcmstr is rotected b -lm ort :pee ::mt0::thehst:otcom:mcdities: :th0;6aifeadyiiberalized;thosenot . ." Y _P : .i Y .1 v" : whichhaV:e:ren_ained:restfietedup: i: iisfecl: :in cir:cuiar 1029i::or: those restnc.n°nS:i,Asan ma,}cat0rot the ......... ....:dOuDleaCo*dnteo_ _.:_: ...._A :Sl.lDStannal...... ¢ ,," intensity or: restricnons, ...... _showsotherwi_e _ , ...... ......... :: price, , _: : :q,: .... , ranoS are :correlat¢_:l: i_egatwely i; numt_er ot commoames are also . : . .... ; , tta} u,g atatu.',:: }.: ,:::4::3. if _. wittl lnclustry Size allcl DOsinvelv :: S_ i ...... e • ....... 3' not lrlClUOetl:lrl the Lists wnlcn ap. _ ren a rang r gulated m_ports. : :: loearetl in vArcular IUZ_, .... w_th._ formgn but not _ very ..... . _eqmty, _< Lo.relei:c • De :Di:0s:::PiDS Re2: ................. : ............:: ........ _ .... ....... mgmncant, _s a measure ot the ? : ; : [ if, a:: he _mport:hcen:smg: cntena: almhty of industries to set the of hoe <di:d_:nn fl_6:: :indicate that most are regulated to .... price, the price ratio has a:positive O.a Re_aa;;i.,2 i: _e_ d0m:e_ti::e i:nd:u:StrV: Here; rela tionSt_iD bo 1'1lWith :taft ffs and )roeedures Suggest: that: there with value-added concentration discretionary p0wers ex: ratios: (VACRs), ........................... : ::N:* : _1 "-"'A ,:
"to
........ c a:_fis' t ,nconsum
:: Fo:r inSiaiice; accounting:of the ::comm 0dities:: 6vet subjected: eoim+ p0:r regulation s sho:ws:tha sig, nifieant m_mber were r:estricted: (a) ::aft:er :i eing ::iiberalizefl ::o i: llberaiized after: being r_ trir ::::SecOnd:: liberalized : :_wi:_6 in a r 0w;: or: (d)i:iiberalizedl
.......... : ........ ....... P:non.:: ::::::: ..... ........
:: ::
or :::d o:{ib:ie4eoti_ted: or enfi oiled as: liberalized: but:i having: :::pin6:: d ard: C omm 0:d!iy: C1a si: : sifieation (PSCC)Scheme. in the
....
:i ::
::]:!/:(:< :>5:
:5(-< : ://!
:: ,:-
; that the results:are;not:as ;: Fo_ one;:::: both :r6gul_te_l: :::::arid:ii::ii
i:::
.... .:
<./-:
:-¸¸//,::/:5:/:¸¸¸¸/
....
other incentiveS; Those;unable to do So may: have to look for markets elsewhere, i : : .... : :America,s real intenti0ns Will
o:not:::
: be tested at the Uruguay: Round which expires: on June 1, i993, A ..... all:::::com:mod{ties:::Whi¢ti :Were : mul tila teral ly:agreed red u cti on: of thei):: : tariffs : will:: undermine ..... the e0_ered;i;Either:ithe preferences: created by NAFTA so: that production differentials m6ditieS: in :the: .sam acr0ss regional trade blocs; includ3:arei iing those of the European Corn-: i make im __ m0n Market: and theASEAN Will: :P ircilth6Puior_ :saiiksiansa'P[DS held i diminish, if not totally vanish. ....... at: the NEDA :: This early; however; the US iS: Bldg. He:said that sendinszmixed signals aSUSPresV tel!:f0r:some:good .......... : a:imean:s: of::enticing:: dent William Clinton 7vowed :t0 the io!h:erS:::that:: the: tariffsi:: _ liberalization while replaeed:::thelimp0rt:rest r X :Wi]! be leff: out by the 'train"i promising to::build a :strong :::canbejuStaS:binding: i:::::: aii_:ti0n) : ...... manufacturing: base and getting : _ tougher with its tradinsz laartners IA was :: conceiveo or ..... _4 ../ . ...._. . " , outsloe _,4ortn Amenca : benefit:S::fron_:all: theiliberalizati0li::: :: intoiian '" " (MI _MS)" .... ileffo{iS Wili b tel over a :peri _ : i:agreement witt_ hel US to: ch angel longer:than the :its policy:t:0 attra¢[ foreign invest ...... ............... : ::pass ed :Since:the ia:sf:dere: :ill ati on :::::::m en'tg; "r:ovide mar e em"l o men t Wh ered o ca tfi shwi Con: ................ . :::: g. ............. ....... P .... P Y ..... ? ' y ::t'0r::c0mm0dities::whose:::priCe:: so that:Mexicans will be per: sumed. Is consumption affected M:e_ieol anal by : price :perceptions?: By: :reSpOnSive to:_ ::delistin_; :economic, g other :act_iev6: :Sustained : .... h0usehold charac-.. socioeconomic be more bi:ndin g: :.....g ::::::r6wth: in effect; : Amerlcan in ..... teristicsP demo g ra Phic ....charac2 ....reasons ........ can ......... . : i : ::: i::dnStries:wereasked toleliminate teristics? Is price:a factor in gradu:aily::: phase it consumption?:::: :;
answered_ m the_ Pulong ...... S_ahksikan
.......
...... y, t_anaoa; ...... : anti • vice-versa brewihe: at : ibis ht_erahzation: Sclleme :opens ...... ....... ...... roductmn : mer i can: Fre e .....p ppormmnes tor :NAFFA :(NOr t h ........A ...... ..... ........ :P ...... ..... " ....... Trade:Aareement): ' .... ....... ................. within Nortt_ Araerica, but:creates's = _
hold
::::
between 0_uts_de or g : ::ongm nave t_een::rnade stricter so :_ade::s:stey -m:wh:e:::reb countnes ......................................................... ........................... : ............ =' ............................. :...... =::: ...........Y ....................... :that :50::percent of the r_roduct ca g;: co!:!: for hate fron_ North
( ,
If
,
{(
.
...... :m. :.0 December 1)92, at NEDAsaMakati_H,-ra. r_..:,_ g t-)t k-I_ L,el LJt_ I_I l.l U ....... "_ _' ..... l. Fael, rim txesearcn/2ellow t wa__ the paper present.or, He basc-'x:lhis his disserta:tion submitted to Clemson University in South Ca -_'_.... T,¢_, _ ....... ........ ............ dissertation can
'be called a breakthrou_:li :research; Since little : : research: on US: catfish: consump:::petition::So:Whatstherealse0re_: : rot _ countries Philip, tion has -_- corl(-i ...........uere(] ........... " ::: , :. Id<e the .... . ¢ t b tJelt lilt :: : ines that oe _end heaVi|y::on:the res'u/ts ma rove: invaluable to the AmeriCa Pc--:" ' *" tUili:ty::an:d:::a::;:dangeri':;revealed:: ::ticulad,,::l: _-a¢ ,.g *,.* ,,c ['r_,:,.,.A: ..... n atnsn remmng m_ ......... .... , ..... i J_ tla). ui the t..,o)l',_/'*xr'la%, dustrv Local catfish rotMl_r< : Leon:ard Sai_tos, :intema±: :eutsb6th@a,,S ...... . ..." ........ ......... : ...... : f0rmer , _.. T;._--. tt oam P ens invest. • .... .... .......... m_ght discover a thing or two m m:traue consultant or tne: and diverts _ - . . .....17o ...... formulating marketing strategies ............ : • IIIU_I2 Wllllng:l:o Sell tile _ V .... n0W:head:of the ifiterriational .......us : .......... ............ : tc_ ard the at-home catfish con; .... ...... ::: .... :win:now put th:eir moides to sumin,- market .... ....
.....
: t er_lns::::t..o_e;:=:::durmg ::a::s:essi:on:::ot: ::::::: :::::::
11 lUtADl.l
::
:::
::
1_,
I.U
........
: :
....
....
::
: :
:/:/::_i/_i_i:_)i:_:://::)_::_:::v/:::,_ :_L: ii i::!:l_6iun:_66ris:m:i: :w6rks
a: )
bestl : i::emp6_er_ent
and :::i:p0verty al-
broad masses of pe0plei: Aithough i this may sound such a:tall order, volunteers_ in fact, havea vital role: i p-in effecting change in the cornfor:i munities :where they serve.: They:
.... : :Phili:
ines for el: : cl0se :to 300 , . tore_gn:m_a ......... , .... .... :workers in me country: : : : ........ ...... ............... ......... ....... ...... wmcnwasor-: â&#x20AC;˘ ..,_,.,: .-. .... . :ganlZecl::tgy me:lvu urgamzmg : C6mmit:tee in: CollabOration
.... P ..... :
:
:
: than
: :
: : ....
::::answers:to :di ::i:i.......... :on::
......
between ...... 'encies, ...... , ...... _ . ....... ' .. " wnere optgormnitaes tor: cnange tgn vomnteer :organlzauons ... - _ .;. . ._,,.; .... ,.. . , .... coma oe maae pOSS1DIe tnrougrl pracncm .... ....... . :...... cooperative spirit. It has worked to: volunteer Darnapa_ . . ....... ..tlon in DeoDle ...... _ , promote servace emr, owerment; ana ."..... . glODal .: VOlunteer ......... .. . ._ . : cq: ....... _, oy lmplemennng ancl coorcunat_e)v_:nt:;_!sm: susta!name ing various volunteer programs
i:i:mpr0ve:::::/pattnershl :
remarks. ...............
such as the:Volunteers for Informatron and::: Development, the United States 'Peace Corps, Japan Overseas Cooperation Volunteers, i
to consume catfish at-home than households in other: regions. Households in the New England : region were less likely to consume i :i catfish at-h0me:: than::ihouseholdS in other:regions::: : ........ HouSehOld[ Size) OcChpation of fhe head of househoidi: education: I ..... level of the head :of household, househOld:religion) and urbaniza- i tion were found: to have:no sig, I nificar_t impacts on the probability:
Israel the:x
_tiVe
to other of at-home catfish consumption. 'to:consUme: Finally, since:relative price of perceptions; household income, ?tion was household race, an_:region:were : mg::: middle :income found to: be sigmficant: :deter' s:with the : minanis Of::the:: probability: of atincomes were: home Catfish: consumption,: said consume: factors should be givenemphasis: other in the development of promotiom : :::households al programs:: geared :[owards: the:
DEVELOPMENT
ment, ment vice
RESEARCH
SNV-Netherlands Organization, Overseas,
NEWS
DevelopVoluntary Korean
SerYouth
January
envisioned
program
support development
sustainable initiatives
Volunteers, German Development Service, United Nations Volunteers Program, and the ASEAN
grassroots volunteers advocacy,
Volunteer
training
Corps
Exchange
Pro-
gram. Volunteer
Service
also
actively
activities. human
incorporated
development
is
in the Medium-
Term
Development
In response to the call for sustainability, an expanded volunteer
1998, Fleur
according to NEDA Director de lys Tortes. To operation-
program
alize
this,
was
proposed
by
Kevin
McGrath, resident Representative of the United Nations Develop-
integrated strategy
ment initial
panding
Program duration
(UNDP). of five
With years,
an the
ized
human at the
level. Through this, are expected to perform awareness creation and
Total
Expanding
will
the
plan
social thai would the
access
Plan
will
employ
As
an
to basic
Selim, sentative
a final Deputy of the
people tainable
services
resources
note,
Dr.
Resident UNDP,
Abu
Y.
Represtressed
.
participation
then,
would in reaching
of
in their own in the task of
volunteer
in development,
1993
social
that "if everybody small ways succeed
volunteerism and active
development center on exof
sectors
and the productive the country.
promoting
for 1993-
- February
the spirit
of
be kept alive the goals of
empowerment
for
development."
sus-
(MLMS)
marginal-
NEDA saVillage, MakatlBuilding, 106amorsolo Street Legaspi 1229Makatl, MetroManila
_i;:_i;_;:!!! ::
The DEVEEOPMENT RESEARCH NEWS (DRN) is published bi-monthly blENT STUDIES (PIDS), a nonstock, nonprofit government research institution
:!
_i:::
by the PHILIPPINE INSTITUTE FOR DEVELOPengaged in long-term policy-oriented research.
The DRN highlights findings and recommendations of PIDS research studios and important policy issues discussed during .PIDS seminars. This publicat|on is part of the Institute's thrust in promoting the use of research findings through information dissemination. Annual subscription rates: Pg0 for private firms and individuals, P80 for students, libraries, academic and remmrch institutions, and $16 for all foreign subscribers. All rates are inclusive of mailing and handling costs. The views and opinions
expressed
regarding any of the studies contained publication are welcome. A catalogue quiries to:
here are those of the authors and do not necessarily
reflect those of the Institute.
Research
Information
Staff
Philippine Institute for Development Studies Room 306, NEDA sa Makati Building 106 Amorsolo Street, Legaspi Village 1229 Makati, Metro Manila Telephone Editorial
Numbers:
88-40-59 and 86-57-05. Fax No. (632) 8161091
Board
Dr. Ponciano lntal Jr., President; Dr. Maria Lamberte, Vice-President; Ms. Jennifer P_T. Liguton, Director Research Information; Mr. Isaac Puno III, Director for Operations and Finance Staff Editor-in-Chlef: Jennifer P.T. Liguton Issue Editor: Francis Egenias Editorial: Corazon Desuasido, Odette Salcedo, Suzy Ann Taparan, Annie Llamoso Circulation: Jane Alcantara, Delia Romero, Galicano Godes, Valentina Tolentino, Anne Cleofas Re-entered
Inq_ries
in this publication, or any of the PIDS papers, as well as any suggestions or comments eta the of PIDS publications is available upon request. Please address all correspondence and in-
as second class mail at the Makati Central Post Office on April 27,1987
for