IDEAS home Printed from
   My bibliography  Save this article

Reducing the Price That Government Pays in Procurement. The Case of the Philippines


  • Roderica Taduran Stamer


The Philippine government now pays less for the same goods it used to procure some years ago. In some cases, the reduction in price reaches as much as 50 percent. What dramatic change is responsible for this result? How did the change take place? Recent economic research has emphasized the importance of institutions in fostering economic development. Further, institutional changes occur whenever organizations deem it profitable. This framework shall be used in order to answer the questions above. Firstly, it will be argued that the savings that the government now enjoys are due to the successful implementation of reform measures in its procurement system. In particular, electronic procurement was established and in 2003 a new comprehensive law was passed. The paper will analyze some of the reforms’ features in clipping opportunities for corruption, removing barriers to entry, and lessening the likelihood of collusion. Secondly, the paper will argue that the public furor over corruption in government, which reached a climax during the impeachment of a previous president, provided the much-needed push for the reforms. The potential savings that the government was not able to realize in the old procurement system was the primary ‘selling point’ for the passage of the new law.

Suggested Citation

  • Roderica Taduran Stamer, 2007. "Reducing the Price That Government Pays in Procurement. The Case of the Philippines," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 26(4), pages 6-31.
  • Handle: RePEc:gig:soaktu:v:15:y:2007:i:4:p:6-31

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gig:soaktu:v:15:y:2007:i:4:p:6-31. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marco Bünte) or (Howard Loewen). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.