Examining the Implementation of PBB Scheme
in the Public Sector
by Jose Ramon G. Albert, Ronald U. Mendoza, Janet S. Cuenca,
and Mika S. Muñoz
In 2012, the government adopted a Performance-Based Incentive System, composed of the productivity enhancement incentive and the performance-based bonus (PBB), to reward exemplary performance of employees in the public sector. This Policy Note examines how the PBB scheme is implemented in three sectors of public service. The study finds, among others, that while there was a general strong support for its continuation, many lamented on the increasing number of PBB requirements over time. In the education sector, there was no proper dissemination of information on the PBB scheme at the school level. However, the study finds that the PBB scheme strengthened team work among employees. Government personnel became more aware of their responsibilities and deadlines and exercised more accountability for each other. It also noted unintended consequences of the incentive program, such as jealousy among employees, perception of arbitrary ratings, increased tendency to render overtime, and unnecessary competition among staff. To enhance the effectiveness of the PBB scheme, the study suggests for the government to institute changes in the PBB requirements less frequently and only after ample preparation for cascading information. It is also critical that reform and capacity-building roadmaps in each agency be synched with the PBB targets. Click here to download the policy note.
PN 2019-14: Issues and Concerns in the Implementation
of PBB at DepEd
by Jennifer D. Monje
The Department of Education (DepEd) is the biggest agency in the Philippine bureaucracy to implement the performance-based bonus (PBB) scheme. This Policy Note revisits the PBB program implementation through a process evaluation. It finds, among others, that PBB had a positive effect on quantitative performance measures but not on qualitative performance measures. Moreover, some key performance indicators, such as achievement test scores and dropout rates, were misreported. With these problems, the study urges the DepEd to exact greater accountability from the teachers who are directly interacting with the students and to develop a mechanism to address problems on low or unacceptable teacher performance. It also calls for the strengthening of the grievance process, whereby legitimate grievances related to the PBB are addressed early on at the school level without having the need to elevate them to the higher level. Further, it recommends assigning a school-level focal person to improve dissemination of the PBB guidelines to teachers and facilitate coordination of activities related to PBB implementation and compliance. Click here to download the policy note.
PN 2019-13: Challenges in the Implementation of the PBB Scheme in NGAs
by Gina A. Opiniano
The Philippine government has adopted a performance-based incentive system (PBIS) for employees in the executive department to motivate higher performance and greater accountability in the public sector. It is composed of the performance-based bonus (PBB), a top-up-based bonus premised on the delivery of units or individual contributions to the accomplishment of agency targets, and the productivity enhancement incentive, an across-the-board bonus amounting to PHP 5,000 per employee. This Policy Note zeroes in on the PBB and its implementation in national government agencies (NGAs) and attached agencies, government-owned or -controlled corporations, constitutional commissions, and other executive offices. It finds that the compliance of agencies to varying PBB requirements has become more tedious over time, to the extent that meeting such demands tends to jeopardize their major functions. The best-better-good-poor rankings have also been perceived as unfair, resulting in undue competition within the agency. The study urges the government to minimize frequency of changes of PBB requirements. With the perceived lack of fairness and the resulting undue competition among employees, the PBB design and rating system for individuals should be revisited, particularly the conflict between individual and institutional performance. Click here to download the policy note.
DP 2019-38: Towards a More Inclusive Agricultural Insurance Program
by Celia M. Reyes, Aubrey D. Tabuga, Nicoli Arthur B. Borromeo, Arkin A. Arboneda, and Carlos C. Cabaero
Typhoons, pests, and other natural calamities cause the country, particularly the agricultural sector, significant damages. For instance, Typhoons Yolanda (Haiyan) and Ompong (Mangkhut) have caused PHP 35 billion and PHP 27 billion worth of agricultural damages, respectively, based on estimates by the Department of Agriculture. Given that a third of the country's workforce depend on the agriculture sector, it is crucial that efforts are undertaken towards mitigation of the effects of these shocks and risks. One of these efforts is agricultural insurance provided by the Philippine Crop Insurance Corporation (PCIC). Using information from the PCIC, key informant interviews and focus group discussions with agricultural producers, and findings from earlier studies on agricultural insurance, this study examines the constraints in, opportunities, and efforts for achieving impact and inclusion of agricultural insurance programs in the Philippines. Click here to download the paper.
DP 2019-37: Expanding Health Insurance for the Elderly of the Philippines
by Michael R.M. Abrigo, Timothy J. Halliday, and Teresa Molina
This paper evaluates a Filipino policy that expanded health insurance coverage of its senior citizens, aged 60 and older, in 2014. Using regression discontinuity and difference-in-differences methods, the study finds that the expansion increases insurance coverage by approximately 16-percentage points. Compliers induced by the policy to obtain insurance are disproportionately female and largely from the middle of the socioeconomic distribution. Instrumental variables estimates indicate that out-of-pocket medical expenditures more than double among the compliers. The study also argues that this is most likely driven by an outward shift in the medical demand curve. Click here to download the paper.
DP 2019-36: Process Evaluation of the Universal Access to Quality Tertiary Education Act (RA 10931):
Status and Prospects for Improved Implementation
by Celia M. Reyes, Aniceto C. Orbeta Jr. Ma. Kristina P. Ortiz, Nina Victoria V. Araos, and Kris Ann M. Melad
This study is an early assessment of the Universal Access to Quality Tertiary Education Act (UAQTE) or Republic Act 10931, also known as Free Tuition Law, which mandates all public higher education institutions (HEIs) and government-run technical-vocational institutions (TVIs) to provide free quality tertiary education among eligible Filipino students. Given the limited time and resources, the study concentrated on the implementation of the higher education component and was not able to cover the implementation component on TESDA TVIs. Examining the first-year enrollment data, one noteworthy observation is that public HEIs were able to recover from declines in enrollment due to the introduction of Grades 11 and 12 better than private HEIs in Academic Year 2018–2019. This is true at least among the universities included in the sample of the study. There are also indications of a widening gap in the share of public and private HEI enrollment, also among first year students. Duly recognizing that the law is still in the transition period of implementation, the study raises concerns that emerged from the interviews and quantitative information and presents recommendations to strengthen the law's implementation and enhance the chances of achieving its desired outcomes. Click here to download the paper.
February 13, 2020, 1–5PM
PIDS Public Seminar on
Labor and Education
Venue: PIDS Conference Room, 18th Floor, Three Cyberpod
Centris - North Tower, EDSA
corner Quezon Avenue,
The Philippine Journal of Development is a professional journal published by the Philippine Institute for Development Studies. It accepts papers that examine key issues in development and have strong relevance to policy development. As a multidisciplinary social science journal, it accepts papers in the fields of economics, political science, public administration, sociology, and other related disciplines. It considers papers that have strong policy implications on national or international concerns, particularly development issues in the Asia-Pacific region.
CLICK HERE for the guidelines in the preparation of articles. Submissions and inquiries may be sent to PJD@mail.pids.gov.ph.
PIDS holds groundbreaking ceremony for new building in QC
The Philippine Institute for Development Studies (PIDS) will soon have its own building in Quezon City.
PIDS President Celia Reyes today led the groundbreaking ceremony at Commonwealth Avenue in UP Diliman to officially start the construction of the PIDS building this year.
The construction of the PIDS’s new office “is the realization of a long-time dream of the agency and its staff” and “is envisaged to help strengthen the Institute’s stature as a premier think tank of the Philippine government”.
According to Reyes, the new building will provide a more dignified workplace for everyone, which will encourage greater productivity, efficiency, and innovation in policy research. READ MORE
Inclusive education for children with disabilities in PH urged
A study of state think tank Philippine Institute for Development Studies (PIDS) identified the lack of transportation, basic facilities, and infrastructures as major challenges in providing education to children with disabilities.
The authors of the study—Adrian Agbon and Christian Mina—recommended the provision of mobile special education (SPED) schools especially in far-flung areas. They also urged the government to initiate more activities and programs that will increase awareness about pupils/students with special needs, enhance the Alternative Learning System (ALS) or mobile teacher program of the Department of Education (DepEd), and put up more SPED facilities that cater to all types of disabilities by tapping local government units (LGUs) in providing regular venues for ALS classes. READ MORE
Connectivity and gender gaps among issues affecting 'platform economy'
The online or platform economy faces a number of challenges as it continues to reshape the way people do business.
This was the central topic of the inception conference on “The Emergence of the Platform Economy: Challenges and Opportunities in Developing Asia” organized by the Asian Development Bank (ADB), National University of Singapore, and the Philippine Institute for Development Studies (PIDS) at the ADB headquarters recently.
Noting its lack of commonly accepted definition, PIDS Senior Research Fellow Jose Ramon Albert defined online platforms “as digital intermediaries, which match supply and demand of goods, READ MORE
State think tank urges gov't to harness creative industries in PH
The government should focus on promoting the creative industries, an emerging sector that could potentially contribute to the country’s economic growth.
Philippine Institute for Development Studies (PIDS) Senior Research Fellow Ramonette Serafica said during the Institute’s recent Public Seminar on Digital Trade that the government should develop an export strategy to harness this sector. “This would be in line with the Philippine Development Plan 2017-2022 which seeks to promote creative industries that cover both tangible goods and intangible services,” she pointed out.
According to the United Nations Conference on Trade and Development, creative industries include advertising, architecture, arts and crafts, design, fashion, film, video, photography, music, READ MORE
Digital transformation for PH SMEs urged
Small and medium enterprises (SMEs) in the Philippines need to undergo digital transformation to harness the benefits of technological developments under the New Globalization.
This was emphasized by Dr. Alfredo Pascual, president of the Institute of Corporate Directors, who served as a speaker at the Fifth Annual Public Policy Conference (APPC) conducted by state think tank Philippine Institute for Development Studies (PIDS) this year.
“To be able to tap business opportunities in the evolving digital economy, digital transformation is key. This must be done, or else, a company will be left behind,” Pascual explained. READ MORE
Intensify labor market educ to future-proof PH workforce—Gov't exec
Labor market education is important to future-proof the next generation of Filipino workers.
Undersecretary for Workers Protection, Human Resource, and Internal Auditing Services Cluster Ciriaco Lagunzad of the Department of Labor and Employment (DOLE) said it is crucial to lay down the foundation of 21st century skills to ensure that current and subsequent members of the labor force will be able to compete globally and cope with the demands of the future of work.
“Providing our youth with timely and accurate labor market signals would enable them to prepare and harness their potential to its fullest by establishing strong foundations during their education,” READ MORE