The war against corruption in thePhilippines has taken a fresh turn with the inauguration ofPresident Gloria Macapagal-Arroyo on January 20, 2001, andthe subsequent installation of the new government.Addressing corruption was one of the newadministration's announced priorities, but a detailedanticorruption strategy and detailed action plan have yet toemerge. As this report notes, the deterioration of thegovernance environment in 2000 seems to have taken a heavytoll on investor confidence . The report also notes thatseveral new initiatives were born during 2000-01 as the needfor combating corruption was felt more widely and urgently.This need for concrete and visible actions to combatcorruption still exists, maybe to a greater degree now thanin the past. Chapter 1 discusses the 9-point approach tofighting corruption in the Philippines as proposed by theWorld Bank in November 1999 which comprises policy reformsand deregulation, reforming campaign finance, increasingpublic oversight, reforming the budget process, improvingmeritocracy in civil services, targeting selected agencies,enhancing sanctions, developing private sector partnerships,and supporting judicial reform. Chapter 2 discusses thewidening government deficit begun in late 1999 and theevents shaping this change. Chapter 3 highlights the areaswhere progress was made during this time and focuses on theemergence of new initiatives. Finally, Chapter 4 addressesthe new Government's commitment.
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