EROPA Bulletin Volume 34 Nos. 3-4 | Page 23

Vol. 34 Nos. 3-4 (July-December 2013) Government (Institutions...) (From page 22) Lessons on Policy Transfer: The Philippine Experience In her presentation, Dr. Minerva S. Baylon highlighted the intricacies and challenges of policy making and policy transfer in the context of globalization. She indicated that recent shifts in globalization imposed challenges to national governments, and one of which is on policy transfer. One of the examples of policy transfer is on the privatization of public services. New models for development, including equitable growth, are being adopted by the Philippine government, with focus on the market economy approach. The resulting privatization of public services yielded positive outcomes, particularly in the infrastructure and communications sector. However, Dr. Baylon said that while this type of reform earned the government revenues, they do not guarantee reliability nor sustainability. Instead, government institutions face the problem of non-recurring proceeds and nonperforming assets. Policy formulation becomes vulnerable to political manipulation, and less likely to undergo multi-stakeholder consultation. Dr. Baylon presented the case of the Electric Power Industry Reform Act in the Philippines, which she considered one of the questionable deregulation policies, to show the implications of policy transfer to the legislative and executive units of the government, and as an attempt to determine the different factors that affect and shape policy transfer. Based on the results of the case study, Dr. Baylon showed how external institutions such as intergovernmental organizations and private companies molded policies as agents of policy transfer. Results of her study showed that mechanisms for accountability suffered from the apparent overlapping of functions between the executive and legislative powers of the government. EROPA Bulletin 23 Dr. Baylon noted that conditions imposed by different international financial institutions (IFIs) most significantly affected the said law. Thus, she recommended that the government should be cautious in negotiating with IFIs and entering into foreign policy agreements that require severe conditionality. She added that “political capture” may also remain in the long run without effective political systems and institutions to properly address policy transfer. She recommended that government institutions should be able to better appraise the context where in policy transfer is taking place. When asked on how to leverage the position of the Philippine government on IFIs, Dr. Baylon said that a strong stand against the many conditions imposed by IFIs and bilateral agencies is needed to confront the problems associated with deregulation of fiscal policies. Compared Study: Science and Technology Budget Indonesia and ASEAN In his presentation, Mr. Syahrul Aminullah discussed the investments made by the Indonesian government on science and technology, and compared its budget allocation in this field with that of other ASEAN member countries. Mr. Aminullah explained that the Indonesian government allots about 0.08% of its gross domestic product (GDP) on the science and technology sector. This budget allocation was found to be shared among 33 ministries, 7 government