The Philippines' Performance on the Resource Governance Index
The Philippines received a "partial" score of 54, ranking 23rd out of 58 countries. It ranked in the top half of countries surveyed on all four components, suggesting that the government has made meaningful progress toward improved resource governance.
(out of 58)
(out of 100)
|24||Institutional & Legal Setting||63|
|35||Safeguards & Quality Controls||51|
Institutional & Legal Setting (Rank: 24th/58, Score: 63/100) learn more
The Philippines received a "partial" score of 63, its highest on any component, the product of comprehensive mining legislation but incomplete disclosure requirements.
The Mines and Geosciences Bureau grants exploration permits on a first-come, first-served basis, but there are plans to introduce competitive bidding based on technical, financial, and environmental criteria. The Environment and Natural Resources Department negotiates mineral agreements, which must be approved by the president. Local governments approve contracts for small-scale mining.
The Bureau of Internal Revenue collects payments from large companies; small-scale gold miners pay taxes to the central bank and fees to local governments. Some payments go directly to indigenous groups. All central government revenues are deposited in the national treasury.
Mining projects must undergo an environmental impact review, but rules requiring community consultation and consent are not consistently followed. The Philippines has not passed a freedom of information law. The government took its first steps toward joining the Extractive Industries Transparency Initiative in January 2013.
Reporting Practices (Rank: 23rd/58, Score: 54/100) learn more
With poor contract transparency and uneven disclosure of mining data, the Philippines received a "partial" score of 54.
The current administration provides more information than its predecessors. Maps of licensing areas are posted online and copies of contracts can be requested from the director of the Mines and Geosciences Bureau. However, joint operating agreements between the state-owned Philippine Mining Development Corporation and private firms are not made public, and access to environmental impact assessments is still restricted.
The Mines and Geosciences Bureau regularly publishes information on mineral reserves, production, investments, approved operations, and disaggregated revenues. The Bureau of Internal Revenue reports annual tax data, and the Environment and Natural Resources Department publishes royalty receipts. Royalties paid to indigenous groups are not published. The central bank is the main source of data on production, foreign direct investment, and mining exports. Local governments are less transparent, and their failure to accurately report on artisanal mining skews national statistics.
Safeguards & Quality Controls (Rank: 35th/58, Score: 51/100) learn more
Insufficient checks on the licensing and revenue collection processes led to a "partial" score of 51.
Congress does not play a regular oversight role in the licensing process. Lawmakers have conducted investigations of contract negotiations, but their requests for industry information often go unanswered.
The Commission on Audit oversees all state accounts, including those of the national mining company. Audits are submitted annually to congress, which may launch ad hoc reviews but does not regularly monitor mineral receipts. A recent independent report found significant discrepancies in official data on mineral production and exports, and noted that the government appears to be under-collecting excise taxes.
Enabling Environment (Rank: 22nd/58, Score: 46/100) learn more
With mediocre global rankings on corruption control and the rule of law, the Philippines received a "failing" score of 46.
State-Owned Companies (Rank: 26th/45, Score: 44/100) learn more
The Philippine Mining Development Corporation negotiates agreements on behalf of the government with outside investors. It submits reports to the national Securities and Exchange Commission, but only very limited information on the company's operations is available to the public.
Subnational Transfers (Rank: 16th/30, Score: 61/100) learn more
The central government transfers a portion of mineral revenues to producing regions according to detailed revenue sharing procedures defined by law. Funds must be used for development projects and are notoriously subject to delay. The central government does not provide information on disbursements, but local governments are required to publish receipts.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||103.4||116.7||224.8|
|GDP per capita, PPP (constant 2005 international $)||2,697||3,051||3,638|
|Extractive exports (% total exports)||3||4||8|
|Source: World Bank.|