Souvenir Program 45th Annual Meeting 14-16 November 2007 Bangko Sentral ng Pilipinas PES_souvenir.indd 1 11/7/07 5:33:10 PM Message from the BSP Governor M E S S A G E Th e Bangko Sentral ng Pilipinas is honored once again to co-sponsor the Annual Meeting of the Philippine Economic Society (PES), which is now in its 45th year. Th e PES Annual Meeting has always been the preeminent venue for the discussion and dissemination of research among economists in the Philippines. It has also become one of the foremost gatherings of the profession in the region. It is, therefore, with keen interest that we look foreward to today’s discussions under the umbrella of “Revitalizing Investments Towards Sustained Economic Growth.” Th e Philippine economy has experienced continued growth over the past fi ve years. Th e collective challenge that we now face is ensuring sustained, robust and broad-based growth over the long-term to benefi t all Filipinos. To this end, we need to fi nd ways to revitalize key sectors in the economy, such as manufacturing, energy and mining, and strengthen their productivity and ability to compete globally. We also need to develop the capital markets in order to harness the ample liquidity in the fi nancial system to help raise the long-term potential of the economy. However, the road ahead of us does not stop with economic growth. Other important challenges confront the practice of economics in the Philippines today. We need to address the impact of the increasing pattern of labor migration on the economy with a view to minimizing the costs and maximizing the benefi ts. Th is would imply, among other things, putting the income transfers from overseas labor to productive use through savings mobilization and investments. We also need to be mindful of the socio-economic challenges to our society, particularly the need to address poverty that continues to affl ict a third of our population. Poverty alleviation is critical for more inclusive and participatory development as well as for social cohesion. Th e old maxim that problems are opportunities in disguise still holds true. Th e pressing economic concerns of our times continue to provide academics, private economists, and policymakers alike with plenty of opportunities in terms of new research and improved policy design. What is crucial is that we keep asking the right questions, and keep searching for the right answers. Th is will help us tackle policy challenges boldly through purposeful action that will steer the economy on a path to sustainable and more rapid expansion, while making sure that no Filipino is left behind. AMANDO M. TETANGCO, JR. Governor 2 PES_souvenir.indd 2 11/7/07 5:33:11 PM Message from the PES President M E S S A G E Welcome to the 45th Annual Meeting of the Philippine Economic Society, which promises to be a grand celebration of economics—as a science (at least in the sense of being a body of knowledge), a way of thinking, a tool for policy analysis, …, and, not least, as the art that men and women of “tough minds and soft hearts” practice, oftentimes with liberal drawings from the proverbial bag of “economic tricks,” to improve the lives of all. And if this fête raises the inveterate heckler’s “But if you’re so smart, why aren’t we rich?” question, let us invite him to join us in discussions on the conference theme. Accelerating and Sustaining Economic Growth toward Broad-Based Development turns a brave and hopeful face to the future despite the limited bases for an economic takeoff and runways littered with detritus from weak (if not crumbling and mangled) institutions. Let us invite him to a spirited exchange of ideas on how to build trustworthiness in leaders and institutions, foster a citizenry that is engaged in the aff airs of the nation, eradicate predation in economic activities, and establish a meritocratic society in which there is equal opportunity for all. After all, economists may not have all the answers, but they do pose interesting, challenging, and soul-searching questions. A fi nal, fond word: To our donors and sponsors, resource persons, members, and friends, thank you for your generous and abiding support, which allows the Society to stage these “public-good coordination games” that are becoming bigger and more impressive by the year. Hopefully, the spillover externalities of the event are such that the costs of your individual contributions are much exceeded by the gross payoff s to each and every one. MICHAEL M. ALBA President 3 PES_souvenir.indd 3 11/7/07 5:33:13 PM Philippine Th e Philippine Economic Society (PES) was Economic established in August 1962 as a nonstock, nonprofi t Society professional organization of ECONOMISTS. (PES) Over the years, the Society has served as one of the strongest networks of economists in the academe, government, and business sector. Recognized in the international community of professional economic associations and a founding member of the Federation of Asean Economic Associations (FAEA), the PES is truly a signifi cant national and international institution. Th e PES continuously provides a venue for open and free discussions of a wide range of policy issues through its conferences and symposia. Th rough its journal, the Philippine Review of Economics, which it jointly publishes with the UP School of Economics, the Society performs a major role in improving the standard of economic research in the country and in disseminating new research fi ndings. For more information about the Society, please visit its website www.phileconsociety.org. PES SECRETARIAT Asia-Pacifi c Policy Center Rms. 303-304, Philippine Social Science Center Commonwealth Avenue Quezon City Telefax: 926.4615 email: [email protected] 4 PES_souvenir.indd 4 11/7/07 5:33:13 PM 45th Annual Meeting 14-16 November 2007 Bangko Sentral ng Pilipinas Conference Program 5 PES_souvenir.indd 5 11/7/07 5:33:14 PM Day 1. Wednesday, 14 November 45th Annual Meeting 14 November 2007 Master of Ceremonies TERESO TULLAO, JR. De La Salle University 08:00 AM REGISTRATION 09:00 AM OPENING CEREMONY • Pambansang Awit ng Pilipinas • Welcome Remarks AMANDO M. TETANGCO, JR. Governor, Bangko Sentral ng Pilpinas \ • Opening Remarks MICHAEL M. ALBA President, Philippine Economic Society 09:30 AM KEYNOTE SPEECH • Achieving broad-based development SENEN C. BACANI President, La Frutera, Inc Entrepreneur of the Year 2006 10:00 AM COFFEE BREAK 10:30 AM PLENARY SESSION 1 • Sustaining economic growth in the long-run Moderator PETER LEE U University of Asia & the Pacifi c Panelists DANTE CANLAS School of Economics, University of the Philippines Constraints to long-run growth in the Philippines JONG-WHA LEE Asian Development Bank 6 PES_souvenir.indd 6 11/7/07 5:33:15 PM JEHAN ARULPRAGASAM World Bank 45th Annual Meeting SAMIE LIM 14 November 2007 Philippine Chamber of Commerce & Industry 12:00 NN LUNCH Hosted by Friedrich Naumann Foundation Luncheon Speaker SIEGFRIED HERZOG Friedrich Naumann Foundation 01:30 PM PARALLEL PANELS 1 A. Trade: Regional & economic integration Organizer GEORGE MANZANO University of Asia & the Pacifi c Panelists EDSEL BEJA Ateneo de Manila University On the relevance of export-led growth to the Philippines ELIZABETH TAN Ateneo de Manila University Regionalism in East Asia: Th e ASEAN +1 initiative GLORA PASADILLA Philippine Institute for Development Studies Rethinking FTAs B. Economics Education Organizer AGHAM CUEVAS University of the Philippines-Los Banos Moderator JOSE V. CAMACHO University of the Philippines 7 PES_souvenir.indd 7 11/7/07 5:33:15 PM Panelists 45th Annual Meeting AMELIA BELLO 14 November 2007 RODGER VALIENTES University of the Philippines-Los Banos Grade infl ation: Fact or myth? CHRISBELLE DIMAPILIS NIÑO ALEJANDRO MANALO University of the Philippines-Los Banos A review of tertiary economics education in selected higher education institutions in the Philippines WALFRIDO BELEN Ateneo de Manila Unviversity Discussant ALITA ROXAS MSU-Iligan Insittute of Technology C. Environment: Economics of mining Organizer FILOMENO STA. ANA III Action for Economic Reform Panelists ROLANDO PEÑA Consultant, Lepanto Mines Mining investments in the Philippines: Strategic issues ART BOQUIREN University of the Philippines-Baguio Cost-benefi t case study of mining in Benguet communities MARVIC LEONEN College of Law, University of the Philippines Law and economics of mining RINA ROSALES Resource valuation in relation to mining 8 PES_souvenir.indd 8 11/7/07 5:33:16 PM D. Competitiveness and productivity 45th Annual Meeting Organizer 14 November 2007 EPICTETUS PATALINGHUG College of Business Administration University of the Philippines Panelists TERESA DUEÑAS University of Maastricht Firm-level determinants of export performance: Evidence from the Philippines SANTOS JOSE DACANAY III University of the Philippines-Baguio Profit and cost efficiency of Philippine commercial banks under periods of liberalization, crisis and consolidation NICETO POBLADOR Kalayaan College Th e changing face of competition CYRUS PAULO BUENAFE Hewlett-Packard Philippines A way of determining the best evolution path for export industries using product spaces E. Philippine growth statistics: How credible are they? Organizer WINFRED VILLAMIL De La Salle University Moderator CELIA REYES Philippine Institute for Development Studies Panelists FELIPE MEDALLA School of Economics, University of the Philippines VICENTE VALDEPEÑAS Bangko Sentral ng Pilipinas LOURDES HOMECILLO National Statistics Offi ce Discussant ESTRELLA DOMINGO National Statistical Coordination Board 9 PES_souvenir.indd 9 11/7/07 5:33:16 PM F. Local government fi nancial 45th Annual Meeting planning and management 14 November 2007 Organizer LEONARDO LANZONA Ateneo de Manila University Panelists RAYMUND FABRE EPRA-Ateneo de Manila University Introductory note: Highlights of accomplishments of the sector RUFO MENDOZA Ateneo School of Government Benchmarking study: Local fi nancial management framework for good governance FLORECITA FLORES Local Government Research & Consultancy Service Situs of the tax: A study of its implementation G.