For immediate release Contact: Raquel Perez

31 July 2013 0917 8365222

INCOME DISPARITY A ROADBLOCK TO INCLUSIVE DEVELOPMENT
Rosy economic outlook must be coupled with institutional, labor market reforms

The economic gains in the 5
th
State of the Nation Address by President Benigno Aquino III must
be coupled with reforms that will promote inclusive, broad-based development. This includes
reforms to even out the rural-urban wage gap, which remains a barrier to many sectors of the
population from enjoying the fruits of economic reform.

In his penultimate SONA, President Aquino touted the upgrade in the countrys investment
grade rating, saying the country is now more open to business. He also emphasized the
improved revenue collection efforts and said the countrys debt to Gross Domestic Product
ratio went down, and thus funds for interests went to social services.

Experts note, however, that the Philippines overall ratio of rural-urban wage gap at 67 percent
has remained constant over the last decade. Differences in labor policies between commercial
industries and rural labor reinforce the disparity.

Such income disparity has brought about social inequalities between the rural and urban
populations. Reversing this pattern of uneven development requires initiating policies and
institutional reforms.

Within this context, the Angara Centre for Law and Economics presents the second roundtable
discussion of the Andrew Tan Lecture Series on the topic Promoting Inclusive Growth:
Identifying Opportunities for Focused Reform on 20 August 2014, Wednesday, at the
Malcolm Hall, College of Law, University of the Philippines in Diliman, Quezon City.

This lecture is part of a joint study undertaken by the Angara Centre with the World Bank to
identify the areas of persistent underperformance and inequality in the Philippines.

Among the questions the roundtable will center on are: 1) What is the extent of disparity
between regions? 2) What is the response of labor markets? and 3) How do political institutions
limit reform and distort the outcome of economic policies?

Teams of economists and leading researchers from the Philippines and abroad will present
their study and recommend actionable policy initiatives. Leading this lecture are Dr. James
Robinson of Harvard University, Dr. Pablo Querubin of New York University and Dr. John C.
Nye, Frederic Bastiat Chair in Political Economy at the Mercatus Center, George Mason
University and Research Director at the Higher School of Economics in Moscow.
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About the Angara Centre

Formally launched in 2012, the Angara Centre for Law and Economics is the first and only Philippine policy and
academic think tank dedicated to the scientific analysis and international assessment of Philippine and regional
legislation, policies and public sector programs.

It aims to provide independent research at par with internationally verifiable academic standards and of
publishable scholarly quality, which then forms the basis of timely and relevant policy recommendations for
Philippine government, oriented towards:
Strengthening the rule of law and the quality of macroeconomic decision-making in the Philippines
Promoting Filipinos economic development and their informed participation in democratic institutions
Aiding the Philippines towards full compliance with international commitments, while assisting its
leadership of, and cooperation with, regional initiatives and institutions for governance

The Centre seeks to professionalize the science of government legislation and policy-making, by drawing from the
best of the growing ranks of internationally-trained Philippine scholars, and enabling them to continue academic
and policy research according to the rigors of international standards.

It serves as a forum for continuing analysis, recommendations and information dissemination between and among
public and private sector economists, lawyers, academics, and policy-makers from the Philippines and abroad.

The Centre was established to honor the legacy of public reform, technocratic expertise and leadership of Senator
Edgardo J. Angara, who recently concluded over two decades of distinguished service as a Philippine legislator.

Dr. Emerlinda Roman, former President of the University of the Philippines, is chairman of the board of trustees.

Body of work

The Angara Centre has conducted three major conferences/roundtables participated in by Filipino academics and
policy-makers together with foreign scholars from renowned universities.

The Centres inaugural conference on Globalization, Innovation and Growth was held in Manila in August 2012,
with Dr. Tyler Cowen of the George Mason University as plenary speaker. Scholars and experts from universities
in the US, Hong Kong, Australia and policy-makers and academics from the Philippines including Dr. Felipe
Medalla, Dr. Raul Fabella, Dr. Diane Desierto, Atty. Vicente Lazatin, Dr. Arsenio Balisacan, and Atty. Raul
Pangalangan participated as speakers.

In December, the Centre, with support from the World Bank, organized a roundtable led by Dr. James Robinson of
Harvard University to share his insights on Why Nations Fail, a book he co-authored with Daron Acemoglu.
Filipino academics and policy-makers Dr. Gerardo Sicat, Dr. Bernardo Villegas, Dr. Felipe Medalla and highly-
acclaimed journalis Maria Ressa participated in the roundtable discussion.

In January 2013, the Centre, with support from Metrobank Foundation and Federal Land, organized another
roundtable on Philippine Elections with Dr. John C. Nye of George Mason University, Dr. Alberto Simpser of the
University of Chicago, and COMELEC Chair Sixto Brillantes as speakers and Dr. Mahar Mangahas, President of the
Social Weather Stations (SWS), and Ms. Corazon de la Paz-Bernardo, NAMFREL National Chairperson, as
discussants.