Volume IV, No. 5 SEPTEMBER-OCTOBER 1986 ISSN 0115-9097

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IMPORT LIBERALIZATION: CONCEPTS AND ISSUES

Introduction:

EDITOR'S NOTE: At the beginning of the 1980s, the Philippines', in trying to offset This article is an attempt to furtherthe unfortunate effects o.f three decades of protection, embarked on a program of clarify and explain the raEionale :for, and

gradual liberalization t)f trade policy. The elimination of' quaru#ative import restric- the concept of, import libera]ization andtiom and the reduction and rationalization of tariff protection were the principal related iss_tessurrounding its m]plementa-elements of the program. Some success was noted during the first phase of tariff refOrm tion.{1981-1985) but much of the momentum was lost due to the onset of the balance Let us consider first a scena.fio whereof payments crisis in the latter half of 1983. there are minimal import controls, (i.e.,

Beyond #re prime goal of recovery, achieving sustained growth at the full potential there .is a. relatively free flow of goodsof the economy remains as important. Realizing now that this potential was frustrated between the rest of the world and thein the past by overly protective policies, Philippine polic:vmakers are now looki_N home markets). However, this does notat the free market to correct the investment and resource allocation priorities that have exclude the possibility of some uniform,supported inefficient patterns of production in the past. tariff for revenue purposes.

A serious option is IMPORT LIBERALIZATION. Complemented with other trade The scenario, as presented in Figure 1,policy measures, the program is envisioned to encourage industries to produce in areas focuses on the three general stage'swhere the country has obvious comparative advantage, and to turn out high quality of production which are: a) primarygoods .for both local and foreign consumption at competitive prices, inputs (PI); b) intermediate inputs (iI);

Our guest writer )'br this issue is'Dr. Erlinda Medulla, a Research Fellow at the .Philip- and c) final output (FO).pine Institute for Development Studies (PIDS). In her article, she discusses the rat'ionale Consumers benefit from industryfor, and the concept of import liberalization and the other issues related to it. Dr. competition in terms of better pricesMedulla has likewise been involved in many studies regarding improvements in trade and better quality of products. On the

other hand, industries also benefit inpolicy, as evident by her involvement in pro/ects supported by either the hzstituteterms of equal treatment across all sectorsor the Tariff Commission. Together with Dr. John Power, her latest research appears

as a PIDS staff paper on the "Me#todology for Measuring Protection and Comparative of the economy. If desired and necessary,Advantage" (S.P. 478504). She has also recently concluded a foint PIDS-Tariff Commis- the government could grant real protec-sion Project on "Trade Liberalization in the Philippines. " tion (via direct subsid:ies) to a few select-

On another matter, some of the highlights of the PIDS-Media Forum on Import ed industries considered socially desirableLiberalization hem on September 17, 1986 at the NEDA Makati Building are presented yet not commercially viable becauseimmediately after.Dr. Medalla's article in this issue, of genuine market failures (e.g., the

case of infant j.ndustries, externalities,

etc.).

CONTENTS: PAGE

IMPORTLIBERALIZATION: CONCEPTS AND ISSUES ........................................... 1

HIGHLIGHTS OF TIlE PID_I-MEDIAFORUM ON IMPORT LIBERALIZATION ........................... 5

UPDATE:

I COMPLETED PROJECTS .............................................................. 6ON-GOING PROJECTS ................................................................ 6SEMINARS ........................................................................ 7

PIDS SPECIAL PUBLICATIONS .......................................................... 8

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PIDS DEVELOPMENT RESEARCJI_NEWS 2 SEPT-OCT 1986.... m •

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.... ame yproducts (coconut, sugar, abaca, etc.)d" This is indeed what happened in th_

first stage of import substitution duringthe 1950s and 1960s. The manufacturing

R,_tof,he_,_ industries that developed were mainlyHomeM°rk,_ packaging and assembly types and were

L-----_ w ] . heavily dependent on imports. Com-DOMEST,C pounding: the problem is the country'sCONSUMERS dependence on primary products for

_____ exports.I...PRoDuCl Suppose now that in the second stage

_ urPE_r(Fo) of import substitution, even imports'_ ' of intermediate inputs (II) are restricted,Figure I: STAGES OF P_RODUCTIONAND MARKETS aS shown :in Figure 3.

With import restrictions, local produc-Industries that would emerge from that the system of import restrictions tion o'f intermediate inputs is now en-

a setting of minimum import controls defends a relatively lower peso price of couraged and producers are able to chargewould be producing goods in areas foreign exchange, higher prices in the domestic market.where 'the country has obvious comport- Foreign exchange is thus artificially The t_igher price of the protected inter-tive advantage. Production for exports cheapened. Th.is has at least two major mediate input is passed on to industryand domestic consumption will be carried and adverse consequences. For one, 'users (downstream industries) and 'ul-out in selected areas where it is relatively imports allowed to come in at low duties timately to domestic consumers. How.more adva.ntageous (cheaper) to do so. are artificially made cheap. This is the ever, the higher cost of protected inputsIn cases where they are not, goods which case for capital and intermediate inputs, limits the growth of downstream indus-are relatively cheaper abroad will be Domestic producers of capital goods tries, in turn, limiting its own growthimported, and intermediate inputs are thus unable potential. Thus, the system of protection

Let us now introduce restrictions on to compete. Backwardlinkages are has an inherent bias against tbrward lhnports of final products, as represented impeded and domestic production of linkages.

in Figure 2. Note the broken line intermediate inputs is not developed. With import 'restrictions applying onseparating domestic consumers from the Furthennore, there is a bias towards a wider range of products (both inter-final output produced by the rest of the using imported (artificially cheap) capital, mediate inputs and final output), theworld. Necessarily, the import substitution pro- general equilibrium effect on. the price

import restrictions on final products cess becomes import dependent. Second, of foreign exchange becomes even moremeans less supply, more expensive exports are. penalized by the artificially pronounced. As 'in the previous case (see.foreign goods and in general, less cam- lower peso rate of foreign exchange. Figure 2), with a lower peso rate ofpetition. This allows local producers to Hence, contact with the export market foreign exchange, protected domesticcharge higher prices for goods or produce is weakened (break in the arrow from industries would not be able to competelower quality products, or some combina- Final Output to Exports.) Only in those in the world market (unless it is verytion of both, given the captive domestic export activities where there is substan- efficient relative to the rest of the world,market. To some extent, local prod'ucti.on tial comparative advantage could firms thus offsetting the penalty from theis developed, but this is confined to thelimited domestic market. Moreover, the

higher price charged by producers dam-. ,/_roeel_N"N_ /_FORI_I_N'N_pens total domestic demand so that fuUpotential of the domestic market is notreached.

An argument in favor of restrictionsstates that the system of import restric- Re,*of,h.World

Home Markettions, when applied at a wide scale onmost final products, h.as a general equiii-brium effect on foreign exchange whichis not often perceived. With quantitative "7-

restrictions on imports, demand for /imports falls and this translates into alower &emand for foreign exchange.

Consequently, the price of foreignexchange becomes lower than what it PiQo_,2; BANNING OR RESTRICTING FOREIGN-PRODUCED FINAL OUTPUTBUTALLOWING FOREIGN-PRODUCED INTERMEDIATE INPUTS

would have been. What this means is

PIDS DEVELOPMENT RESEAR"_" _'EWS 5 _ SEPT-OCT 1986II I I _ ! II I I III I III

saving a dollar at a much higher cost 3. Dr. Cayetano Paderanga, Jr. very much iarferior to European 01-than earning it.) Associate Professor (UPSE) American products. However, the later

Still import liberalization remains to Impact on Regional Development decades altered this impression. Thebe a controversial issue, and as pointed Japanese proved to the world that theyout earlier, this is not really unexpected. 4. Dr. Agnes Quisumbing can produce highly competitive goodsThe costs of protection are hidden, being Assistant Professor (UP Los Bafios) that are also of higla quality. Relatingso far removed from the source, that. Impact on Agriculture this to the Filipino's attitude towards

these are difficult for non-economists Philippine products, Dr. FabeUa saidto realize. On the other hand, sectors 5. Dr. Lourdes Adriano that colonial mentality endures preciselywhich will be hurt by import liberaliza- Assistant. Professor (UP Los Bafios) because of the protection inherent in thetion are very organized and visible and Impact on Agriculture system which allows the production of

often sensitive to the short-run adjust- 6. Dr. Raul Fabella high-priced low-quality goods.ment costs that surely follow import

Professor (UPSE) In terms of industry effects, severalliberalization. However, these adjustment Effects on Income Distributioncosts would not be too much to pay of the discussants agreed that because

for the dynamic and long-run gains 7. Dr. Matin Lamberte of the existing structure, import-subs-

achieved from a freer trade regime, Research Fellow (PIDS) tituting .i_dustries were protected, to theincluding the macro benefits derived Development Finance and Import prejudice of export .industries and thefrom the removal of 'the cost of pro- Liberalization agricultural sector. This, of course, doestection that the Philippine economy has not blend very well with the avowedborne for the past three decades, policy to boost rural .incomes and dev-

Some of the points raised were the elop the countryside_ As the three-decadeAdditional Notes on Import general _'non-issues" of import liberaliza- protection experience has proven, incen-Liberalization (Based on the tion. In this discussion, Dr. Alburo noted tives to agriculture had been severelyPIDS-Media Forum Series) that a common misconception about the depressed, and manufactured inputs, as

country's .proposed import liberalization well as consumer goods, have becomeAs part of the Institute's dissemina- program is that it is something being ira- progressively more expensive for agricul-

tion program, a new project called the posed on the country by the 'International tural producers.PIDS-Media Forum Series was launched Monetary Fund (IMF) and the World

on the 17th of September 1986. Held Bank. In additio.n, he noted that another To the extent that industries located

at the NEDA Makati Building, the Forum misconception is the belief that any in either Metro Manila or in the regionsSeries aims to discuss and clarify critical kind of openness of the economy will must be accorded the same tariff treat-

points of specific economic issues of lead to vice, fuelling further the Filipinos' ment, the first step, according to_panelistnational interest so as to better inform penchant for imported goods (i.e., the Dr. Erlinda M.edalla, is to make protec-the general public, so-called colonial mentality of the Fili- tion transparent so that policymakers

pinos will be further encouraged), can more definitely move towards apply-For its launching session., the ForumSeries focused on import liberalization. As rational consumers, Dr. Alburo ing uniform 'tariffs to industries, irres-A panel of economists from the U.P. believes that Filipinos are no less demand- pective of location.School of Economics (UPSE), U.P. ing of the optimal price.quality mix than

To be sure, the import liberalizationLos B_os, the National Economic and their Asian counterparts, or for that

Development Authority (NEDA), and the matter, anyone else in the world. As to program must be given serious consi-Philippine Institute. for Development the perception that Filipino businessmen deration before anything is implemented.Studies (PI'DS) was invited to present cannot come up to the standards of Much is demanded of policymakers -their views on the rationale and poten- international business, Dr. Alburo noted the timing, sequencing, concrete steps,modifications and effects of the liberaliza_

tial effects of import liberalization, that there are many enterprising Filipino . tion plan need to be programmed andThe participants and the aspects exporters who have successfully pene- regularly monitored. The government

they discussed during the forum are trated highly competitive areas of busi- will need to exercise discretion and

as follows: ness abroad, flexibility, .and wherever necessary, stabi-

1. Dr. FlorianAlburo Dr. Raul Fabella commented further lization measures will have to be insti-

Deputy Director-General(NEDA) on the concept of colonial mentality, tuted. Since the liberalization plan isGeneral "Non-Issues" of Import 'He said the fear of encouraging colonial but part and parcel of an even biggerLiberalization mentality among Filipinos, or alterna- structural reform program, supplement-

tively, giving unfair advantage to foreign ary measures will have to be adopted also2. Dr. ErlindaMedalla brands, is somewhat exaggerated. He This may be in the areas of foreign

Research Fellow (PID.S) observed that in the late 50s and early exchange, external debt or artificialImpact on Industry 60s, Japanese products were considered barriers to more aggressive trade.

PIDS DEVELOPMENT RESEARCI !WS 6 SEPT-OCT 1986

UPDATE: th,e, o va"a,,tymajor problems is necessary to enhance is more significant in explaining mosthe quality and usefuh_ess of the BMS of the variations in migration flowdata for accurate analysis, than factors associated with t.be area

of origin. Other significant variables

COMPLETED include population density, age at timePopulation Pressure And Migration: Ira- of movement, and education. The case

plications For Upland Development In study of three villages in Laguna providesPROJECTS _e Philippines information on migration circumstances,socio-economic characteristics of mig-

by: Concepcion J. O_t2, Imelda Z, rants and .n:description of the adjustmentBieol Multi-Purpose Survey Data Im-

Feranil and O'ist'ela L. Goce. ,Ms. process,provement Activity (BMSDIA) -. Phase i

Cruz is an Assistant Professor at theCollege of Development Economics "IP

Sonia S. Imperial and Management, and Chairperson (,.,;,-') /by:

Professor at the Population Insti. /_f_ -/I_?_The Bicol Multi-Purpose Survey Data lute off the University of the ,

improvement Activity - Phase I repre- Philippines while Ms. Goce is ansents the preliminary activities conducted 'Instructor at the College of Develop-

by the BMS Data Generation Staff of the ment Economics and Management,Research. and Service Center (RSC) also at, U.P. Los Bafios.to identify the nature and extent of tileproblems that exist in the BMS datasets. The activity was developed primarily The report is a demographic analysis

to assess the impact of the Bieol River of upland communities to help theBasin Development Program (BRBDP) government and other concerned sectors ON-GOING PROJECTS'and other public projects in the Bicol in understanding the nature and extent

of population pressure in the uplands.region. In 1978, a. baseline survey wasconducted by the Institute of Philippine More specifically, the study aims to arrive Prescription of Ceilings on CertainCulture of the Ateneo de Manila. This at a reliable estimate of current popula, Business Deduction and Standard Dedue-

was followed by another survey done in tion in the uplands and the extent of lionRatios1983, with the assistance of the National migration to upland areas. There is also

Computer Center (NCC) and the Agricu]- reference to the socio-economic and by: Angel Q. Yoingcorural Resource Center (ARC). The major environmental determinants and con- ExecuriveDirectortasks completed in Phase I include verifi- sequences of upland migration a_d the National 2bx Research Centercation and checking of both the 1978 dynamics of migration behavior. This

and 1983 data; determination of the may sm_e as an input to devise appro- Recent empirical studies have shownsource of problems related to both data priate measures to control rapid upland that the present system of income taxa-sets and the nature of errors that have population growth and to kelp in the

found their way in the final data ; and the development of social forestry-related tion of individuals and corporationsdrawing up of a work schedule for the programs. There is evidence of impending permits considerable discretion on theimprovement activities, demographic stress as uncontrolled en- part of both taxpayer and tax examiner.

croachment of populations into interior Hence, reported incomes can be grossly

The problems were traced mainly to forest land continues. This has resulted undervalued and deductions, abused.discrepancies wh.ich occurred in ahnost in the progressive and widespread de- In many' instances, overstatement ofall stages of the project, namely: a) gradation of the uplands. Estimates as deductions has eroded the tax base anderror in encoding the data on the res- of 1980 show that over 14.4 million impaired the horizontal and vertical

ponse forms which remained undetected (or 307_ of total Philippine population) equity of the income tax system.in the final, output; and b) inconsistent reside in communities classified as upland. The objective of the study is todata that were not checked at all. Of the In terms of interregional flows, destina- prescribe reasonable ceilings on the most

problems identified, the most serious tions are mostly the uplands of Laguna, commonly abused deductions chimed bypertain to consistency errors, affecting Batangas and Mindanao, while source D_sinessmen and corporations on such

largely the income and employment migrants come from Metro Manila nd expenditure items as representation,variables. To the extent that the BMS Central Visayas. travel and advertising. Through this

is essentiaUy designed to evaluate the The macro-migration analysis indicates effort, there will be increased reliance

development projects in the Bicol region, that the attractiveness of upland areas, on direct taxes as a source of government

]]] [ [ [ [[ [[I I I

PIDS DEVELOPMENT RESEAR(:J=L 7 SEPT-OCT 1986 ,

revenue and greater equity can be attain- The Empirical Magnitudes of Labor sectors are seen to affect migration

_ad in income taxation. Likewise, standard Supply and InterregionalMigration flows between urban and rural areas.ties for each profession or trade shallbe The main output, of the study are

formulated to curb the propensity of by: CayetanoPaderanga.,Jr. coefficient estimates of the important

taxpayers to exaggerate their- deduc- Associate Professor, wtriables that influence Ihe decision to•tions. This sh.all minimize tax base U.P. SchoolofEconomics engage :i.nfarm or off-farm occupations,

erosion, promote equity and ease tax The study aims to contribute to the and to look into the effects of the t'actorsadministration. The fo_mulation of these efforts towards analyzing the impact that determine interregional and rural-rational bases shall .serve as guides tbr of rural investments and. government urban inigration. In addition, the impactsubsequent upgrading of the same in the interventions in the agricultural sector, of agricultural policy on nutrition andfuture to reflect the prevailing economic As the sector develops, significa.n_ health, fertility, a.griculmral price andcircumstances, changes are noted in th.e magnitude and other variables are also examined.

structure of production and labor supply.Moreover, changes in labor decisions toparticipate in eith.er farm or non-farm

developing a comprehensive reform Selniilar on Up'lmrd Development

SEMINARS package attendant to devaluation if" the,devaluation measure is to have signifi- A seminar on "Population Pressurecant positive effects on the economy and Migration: Implications for Upland

I_ and a minimum of negative ones. This Development in the Philippi.nes" was

entails working at structural reforms in held on Tuesday, October 7. 1986 atthe broader socio-economic and political the NEDA Operat:ions Rooms in Makati.,framework in order to make the econo- m_der the attspices of the PIDS, the

mic environment stable and attractive Center for Policy and Developmentfor domestic as well as foreign invest- Studies (CPDS) of the U.P. Los Bafios,

ments to thrive, and the international Development Re-search Centre (.IDRC). Tire seminarpresented the findings of a _joint research

PIDS-Media Forum on Import LiberaUza-, effort of Ms. Concepcion J. Cruz, [meldallon Z. FeranJl and Cristela L. Goce. Ms.

PIDS-NEDA Roundtable Discussion onDevaluation and Related Policies The first m a series of fora between Cruz and Ms. Goce are Assistant Professor

the media and representatives of the and Instructor, respectively, at theA roundtable discussion on "Deva- Institute was held on September 17, 1986 College of Development Economics, U.P_

tuation and Related Policies" was held at the NEDA Makati Building. The ob- Los Bafios, while Ms_ Feranil is Assistanton Thursday, September 11, 1986 jective of this exercise is to allow active Professor at the U.P. Population Institute.

at the Operations Room of-the NEDA discussion on major economic issues byMakati Building, under the sponsorship bringing together a group of economists Sponsored by the PIDS and theof the PIDS, NEDA and the United and print mediarepresentatives. This will, International Development 'ResearchStates Information Service (USIS). The in turn, provide the general public basic Centre (IDRC), the research makesguest speaker for the occasion was Dr. information on current affairs of national a demographic analysis of upland corn-David B. H. Denoon who is also the interest. In its launching session, the munities and determines the influence

author of a new book entitled "'Devalua- Forum Series focused on import liberali- of destination and source variables intion under Pressure: India, Indonesia zation. Seven(7)economists from PIDS, the migration decision. Moreover_ theand Ghana." Dr. Denoon is currently the NEDA,_theU.P. School of Economics study also looks into the dynamicsAssociate Professor of Politics and (UPSE) and U.P.I_s Bafiosdiscussed with of :migration behavior in order to recom-Economics at the New York University. several print mediamen- 'tl:_e various mend nrcasures to policy makers on how

The main point that was stressed in aspects of the import 'liberalization to better control rapid upland popula-the discussion was the necessity of program, tiongrowth.

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II

PIDS DEVELOPMENT RESEARC -'WS 8 SEPT.OCT 1986

SPECIAL PUBLICATIONS

1, INDUSTRIAL PROMOTION POLICIES IN THE 1=125.00 14_ MONOGRAPH NO. IV: ASURVEY OF MATERIALS "1= 32.0C

PHILIPPINES IN INTRODUCTORY ECONOMIC EDUCATION

Romeo Bautista, John Power and Associates Gerardo P, Sieat

2. SURVEY OF PHILIPPINE DEVELOPMENT RE- 1= 30.00 15. MONOGRAPH NO. V: MODELLING THE IMPACT 1= 35,00SEARCH I OF SMALL FARM MECHANIZATION

[a co-publication venture with the International

3. SURVEY OF PHILIPPINE DEVELOPMENT RE- _ 30.00 Rice Research Institute (IRRI)ISEARCH II

16. MONOGRAPH NO, Vh PHILIPPINE POVERTY: 1= 45.00

4. SUMMARIES OF COMPLETED RESEARCH PRO_ P 20,00 AN ANNOTATED BIBLIOGRAPHY, 1970-1983

JECTS, VOL. I [a co-publication venture with the Instituteof Philippine Culture]

5. INTEGRATION, PARTICIPATION AND EFFEC- 17. MONOGRAPH NO. Vl h PUBLIC POLICY AND THE 1= 40,00

TIVENESS: AN ANALYSIS OF THE OPERATIONS PHILIPPINE HOUSING MARKETAND EFFECTS OF FIVE RURAL HEALTH DELl- 1= 25.00VERY MEGHANISMS Edna Angeles

LedivinaCarifioandAssociates 18. MONOGRAPH NO. VIII: REVIEW AND APPRAISAL 1= 35.00

OF THE GOVERNMENT MONETARY AND

6. ESSAYS IN DEVELOPMENT ECONOMICS IN 1= 55,00 FISCAL POLICY RESPONSE TO THE1983-84

HONOR OF HARRY T, OSHIMA (Paper- BALANCE OF-PAYMENT CRISIS

bound) Mario B- Lamberte, et al.

1=125,00 19, MONOGRAPH NO. IX: PRODUCTIVITY GROWTH IN 1= 45,00

(hard- PHI LIPPINE MANUFACTURING: RETROSPECT

bound) AND FUTURE PROSPECTS

7. HOW PARTICIPATORY IS PARTICIPATORY DE- 1= 86.25 Richard Hooley

VELOPMENT? 20, MONOGRAPH NO. X: FORECASTING MONTHLY

Gelia Cas 11o INFLATION IN THE PHILIPPINES 1= 40.00

Robotic S. Mariano

8, THE SPATIAL AND URBAN OIMENSIONS OF DE_ 1=125,O0 21. MONOGRAPHNO. XI:AHISTORICALAND 1= 1.3.00

VELOPMENT IN THE PHILIPPINES CURRENT PERSPECTIVE OF PHILIPPINE

Ernesro Pernia, Cayetano W. Paderanga, ECONOMIC PROBLEMS

Victorina Harmoso and Associates Gerardo P. Sicat

9, ENERGY AND STRUCTURAL CHANGE IN THE 22. JOURNALOF PHILIPPINE DEVELOPMENT 1= 35.00

ASIA-PACIFIC REGION (PAPERS AND PROCEED- (1981,1982, 1983, 1984 and 1985 issues) per copyINGS OF THE THIRTEENTH PACIFIC TRADE 1= 60.00

AND DEVELOPMENT CONFERENCE) @'200.00 annual

10. PHILIPPINE EMPLOYMENT IN THE SEVENTIES I= 75.00 subs.

Rosa Linda P, TidalgO and Emmanuel F, Esguerra_ cripdon

I1, MONOGRAPH NO.h A STUDY OF ENERGY- 1= 15.00 23. ECONOMIC POLICIES FOR FOREST RESOURCES _ 17,00

ECONOMY INTERACTION IN THE PHILIPPINES MANAGEMENT (Summary of the Papers and

Leander Aleio Proceedin�s of the Workshop) edited by Wilfrido Cr6z

24. ECONOMIC RECOVERY AND LONG _RUN 1= 50.00

12- MONOGRAPH NO. Ih INDUSTRIAL POLICY AND 1= 18.00 GROWTH: AGENDA FOR REFORMS

DEVELOPMENT IN THE ASEAN COUNTRIES VOLUME 1 ( MAIN REPORT)

Romeo 8autista Florian A. Alburo, et al

13. MONOGRAPH NO. lib ECONOMIC EVALUATION 1= 50.00 25. AN ANALYSIS OF THE INSTITUTIONAL 1= 58,00

OF THE PHILIPPINE ALCOGAS AND COCO- FRAMEWORK OF THE PHILIPPINE SHORT-

DIESEL PROGRAMS TERM FINANCIAL MARKETS

Armando Armas and Dennis Joyee Cryde Victoria S. Licuanan

DEVELOPMENT RESEARCH NEWS (DRN) is a bi.monthly publication of the PHILIPPINE INSTITUTE F(]l__'DE.VELOPMENT STUDIES (PIDS). It highlights findings and recommendations culled from PiDS.sponsored resear_l_esorrelated studies done by other institutions. PIDS seminars, publications, on-going and forthcoming projects whicl_iare ofinterest to policymakers, planners, administrators, and researchers are also announced.

PIDS is a non-stock, non-profit government research institution engaged in long-term policy-oriented researclt. Thispublication is part of the Institute's program to disseminate information in order to promote the utilization of r_earchfindings.

The views and opinions published here are those ot the authors and do not necessarily reflect those of the lnstitttte. In-

quiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as suggestio_ to orcomments on the DRN are welcome. Please address all related correspondence or inquiries to:

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