New Policy Brief: While we grappled with the pandemic, Viet Nam overtook the Philippines in 2021

In this new policy brief, Ateneo Policy Center's Senior Research Fellow, Dr. Josef T. Yap, discusses the factors that affected the economic development of Vietnam and the Philippines.

Viet Nam recorded a higher per capita GDP (in constant 2015 USD) than the Philippines in 2020 and 2021. Given the uneven impact of the COVID-19 pandemic, 2021 can be considered the year Viet Nam overtook the Philippines. Both countries had to undergo difficult transitions in 1986, but Viet Nam was in a deeper hole at that time. Many factors can explain the economic surge of Viet Nam between 1986 and 2021: an aggressive outward-orientation strategy; favorable topography that contributed to higher productivity in the agriculture sector; better energy security; and earlier onset of demographic transition, 1993 for Viet Nam and 2005 for the Philippines. To be fair, policymakers in the Philippines made important strides in the aforementioned areas. However, some experts argue that plans and programs are more effectively implemented in Viet Nam. One reason is the relative lack of accountability in the Philippines, which can be traced to weak institutions, a dominant oligarchy, and persistent political dynasties. This author argues that the lack of accountability stems from a gridlock that has evolved wherein stronger institutions are required to loosen the grip of the oligarchs and political dynasties. At the same time, the influence of oligarchs and political dynasties has to be reduced to strengthen institutions.

Read the full paper here: http://go.ateneo.edu/VietnamPhilippines-PolicyBrief