DRN 2014 Vol. XXXII No. 1: The Philippine Economy in 2013 and Prospects for 2014

As has been the tradition, the first issue for the year contains the Institute’s assessment of the country’s economic performance in 2013 and the prospects for 2014. Our president, Dr. Gilberto Llanto, teamed up with Senior Research Fellow Dr. Adoracion Navarro for this annual exercise that will form part of a forthcoming publication of the Institute, the Economic Policy Monitor. The outlook is still “generally positive” despite events of the past year that could still have spillover effects this year, in particular the devastation brought by Typhoon Yolanda. Tighter monetary policy and the end to the US Federal Reserve’s quantitative easing that had brought tremendous liquidity to emerging economies and buoyed financial markets are also expected to weigh in on the production of goods and services by the domestic economy.

This issue of the DRN also gives readers a glimpse of the Institute’s activities for the first quarter, particularly its newest research project that is aimed at conducting process and impact evaluation of key government programs. The Institute opened a new PIDS Corner at Palawan State University, which also hosted a well-attended forum on the mining sector, and organized knowledge-sharing seminars for the Health Systems Research Management project of the Institute and the Department of Health. Click here for the full article

DP 2014-20: The Impact of the Cheaper Medicines Act on Households in Metro Manila: A Qualitative Study
by Eleanora De Guzman and Maria Adoracion Fausto

This research forms part of the “Health Systems Research Management in the Department of Health (DOH)”, a project funded by the DOH and implemented by the Philippine Institute for Development Studies. The study sought to: determine knowledge, attitudes, and practices related to the Cheaper Medicines Act (CMA) among households from three socioeconomic classes--low income (Class DE), middle income (Class C), and high income (Class AB); and assess the impact of the key provisions and implementation of the CMA among these three classes of households. This study provides insights in identifying actions to improve the implementation of the CMA and increase its positive impact on the poorer sections of society.

The main research methodology was focus group discussion (FGD) complemented by a review of related literature. A total of 62 respondents, all female, were selected from the three socioeconomic classes based on the Philippine Marketing and Opinion Research Society classification and on their being household decisionmakers on health matters. Nine FGDs were conducted in June 2013--three from each socioeconomic class. All respondents were from Metro Manila since it is the biggest market for any product or service in the country. Click here for the full article

DP 2014-19: The Sponsored Program of the Philippine National Health Insurance – Analyses of the Actual Coverage and Variations Across Regions and Provinces
by Raymunda R. Silfverberg

This study established the breadth of socialized Philippine health insurance, known as the PhilHealth Sponsored Program. It examined the extent of coverage relative to its target "poor" population, how much coverage rates varied across provinces and the factors likely to explain variation. The program appeared to have attained universal coverage over the targeted "poor" population at the national level for the year 2011. However, universal coverage was not true in all regions or provinces. Majority of the provinces experienced mild to extreme leakages in the program.

Several demand and supply variables identified to have strong statistical significance in explaining variations were age groups, education, the local government unit's real per capita income, health expenditures, governance style, accessibility to PhilHealth support offices, and availability of health professionals--all of which were found to very likely affect undercoverage rates relative to full coverage. Severity of poverty, administrative and political governance, and availability of accredited rural health units and private hospitals provided strong statistical evidence in influencing the levels of leakage vis-a-vis full coverage. Effects of most variables conformed to expectations. Results of the study point to a number of research issues that can be undertaken. Policy recommendations are addressed to the national agencies and local government implementers and financiers of the PhilHealth Sponsored Program. Click here for the full article

DP 2014-18: Barriers of Early TB Diagnosis among the Poor in Highly Urbanized Areas in the Philippines
by Krishna Reyes and Juan Carlos Amores

Over the last decade, there was a significant drop in mortality and morbidity cases attributed to tuberculosis (TB). The high TB case detection and treatment success rates may have underpinned the decreasing prevalence. Despite these successes, TB still appears to be a major health problem in the country. Disturbingly, the rate of decrease in mortality and morbidity is not fast enough. This makes the country’s MDG goal targets on TB eradication shaky. The Philippines is also in the list of 27 countries with the highest burden of TB.

To further augment case detection rate and early diagnosis, this study sought to qualitatively explore the barriers to diagnosis among the poor highly urbanized population, one of the identified high-risk population groups. Using focus group discussions among TB patients with delayed diagnosis, conducted in three highly urbanized cities in the Philippines (Metro Manila, Cebu, and Davao), the researchers investigated and explored the wide range of factors that hinder patients from seeking health care despite the presence of triggering factors among urban poor. Results suggest that sociocultural, financial, and health system factors are significant barriers. This study hopes to augment the prevention and control program of the Department of Health and Philippine Health Insurance Corporation to increase awareness and health-seeking behavior. Click here for the full article

DP 2014-17: The Prevalence of Philippine Prescribing, Dispensing, and Use Behavior in Relation to Generic Drugs and their Risk Factors
by John Q. Wong, J. Richelcyn M. Baclay, Richelle G. Duque, Patricia Margarita S. Roque, Grace Kathleen T. Serrano, Jenina Olivia A. Tumlos, and Aisha-Aziza A. Ronsing

This study was designed to address the issue of compliance of physicians and drugstores with the provisions of Generics Act of 1988. Furthermore, it sought to explore the awareness of consumers on generic medicines to explain current trends and practices in drug prescribing, dispensing, and use. The study utilized a cross-sectional design. It is a descriptive study that assessed four variables: generic drug prescription, generic drug substitution/dispensing, price menu cards, and use of generic drugs. The country was divided into six zones, namely:North Luzon, South Luzon, the National Capital Region, Visayas, Mindanao, and the Autonomous Region in Muslim Mindanao. Stratified cluster random sampling was used to identify which provinces and cities would be included in the study.

Data collection techniques include the following: a survey of consumers coming out of a drugstore (a total of 1,160 respondents), key informant interviews with 30 physicians, and focus group discussion with six to 11 patients/watchers per zone. The survey revealed that five out of six drugs were prescribed with generic names, with doctors in the public sector prescribing generics significantly more often than those in the private sector. Factors that positively affected generics prescribing behavior were patient’s welfare, compliance, patient’s financial situation, and fear of punishment. Less than half of the consumers were offered generic alternatives and fewer consumers asked for the alternative. There was preference for branded medicines over generics. Because there is already high compliance among drug prescribers, government efforts should now focus on the drugstores and consumers. Drugstore compliance should be regularly monitored and consumers empowered on their right to know alternatives. Bioequivalence tests should be done to finally put an end to concerns on the quality of generic medicines. Click here for the full article.

DP 2014-16 Analysis of the Employed Program of the Philippine Health Insurance Corporation
by Denise Valerie Silfverberg

The Employed Program of the Philippine Health Insurance Corporation caters to those in the formal sector. Included are those in the government and private sectors with a formal employer-employee relationship. Coverage levels for both the government and private sectors are promising with regional averages of 74 percent and 71 percent, respectively; and provincial averages of 80 percent and 75 percent, respectively. For the private sector, certain sectors were found to be more prone to undercoverage. For the government sector, no clear pattern was found to explain the causes of variation between provinces. This was likely due to the absence of casual and contractual employees in the model. The findings for both sectors are possible propositions on how targeting should be implemented to address the gaps that exist in what is supposed to be a mandatory scheme. Click here for the full article.

DP 2014-15: Analysis of the Individually Paying Program of the Philippine Health Insurance Corporation
by Denise Valerie Silfverberg

The Individually Paying Program (IPP) is the voluntary component of the Philippines’ social health insurance program. The program caters to those in the informal sector and those without a formal employer-employee relationship. Coverage levels for the IPP were found to be considerably low, with a regional average of 57 percent and a provincial average of 53 percent. Massive variation between provinces was found. Four important factors were identified when looking into the variation. First, availability and accessibility was an issue. Second, a substitution effect between private and public facilities was observed. Third, income levels did not appear to be a factor in determining the level of insurance coverage. Lastly, the size of certain sectors had a significant effect on coverage levels observed in the province. Although there is a need to corroborate the findings with an individual-level analysis, these results are good indicators to start with to address the lack of coverage in the voluntary program of the Philippine Health Insurance Corporation. Click here for the full article.

Amendment of cabotage law eyed to bring down domestic shipping cost

High local shipping costs may be attributed largely to the absence of competition in the local shipping industry, thus the need for a comprehensive review and amendment of the Philippine cabotage law. This was according to a recent study published by state think tank Philippine Institute for Development Studies (PIDS).

Authored by Drs. Gilberto Llanto, PIDS president, and Adoracion Navarro, senior research fellow, the study argued for a well-planned review and lifting of cabotage restrictions to bring down the high cost of domestic shipping rates in the country. Read more

PHL needs 'strong' medium-term structural reforms, says foreign expert

The Philippines should implement strong medium-term structural reforms to ensure growth, according to an expert in international business and investments during a seminar-forum at the Philippine Institute for Development Studies (PIDS).

The country outperformed other emerging markets in Asia in the first half of 2013, noted Dr. Dan Steinbock, research director for international business at the India, China, and America Institute in the United States, during the Pulong Saliksikan on "Navigating in uncharted waters: Advanced and emerging economies after the US Fed's tapering" at the Romulo Hall of NEDA sa Makati Building last Februsry 18. Read more

PHOTO RELEASE: PIDS, WB collaborate for greater knowledge dissemination and networking

State think tank Philippine Institute for Development Studies (PIDS), represented by its president Dr. Gilberto Llanto, and World Bank Philippines, represented by its country director Mr. Motoo Konishi, sign the memorandums of agreement on the Knowledge for Development Center (KDC) Program and the SocioEconomic Research Portal for the Philippines (SERP-P) Project on March 18 in Makati City. Read more

Customs modernization to open new opportunities for brokers—study

Efforts to modernize customs administration are expected to create new opportunities for customs brokers who are adept and flexible enough to adjust to changing market conditions.

According to a study by state think tank Philippine Institute for Development Studies (PIDS), customs brokers should realize that efficiency gains from a modernized customs administration would result in a more efficient trade facilitation that could create a higher volume of trade. This would then lead to a new demand for a type of expertise in customs rules and regulations that brokers should possess. Read more

Experts present innovative health care practices in support of inclusive growth

Health sector stakeholders gathered at Xavier University in Cagayan de Oro City to discuss some of the best healthcare innovation practices in a forum organized to encourage adoption of these practices and address persistent disparities in health amid a growing economy.

Four innovative health programs were presented in a roundtable discussion led by the Philippine Institute for Development Studies (PIDS), the government policy think tank tapped by the Washington-based Center for Health Market Innovations for the implementation of the project "Health Market Innovations". Read more