Recent reports on development in the Philippines point to governance and corruption as constraints to poverty reduction and development.  In its report, Philippines: Critical Development Constraints, the Asian Development Bank concludes that the worsening perception of corruption partly explains the low level of investments in the Philippines and that corruption is largely to blame for weak tax administration. Poor governance, it said, was found to translate into higher lending rates, making it more expensive to do business in the Philippines.  In the end it concluded that one of the steps necessary to improve development is for the Philippine government to prioritize good governance.


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