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The Philippines has been a pioneer in decentralisation for Asia, having commenced its local governance reforms in 1991 through the formulation and implementation of the Local Government Code (LGC), which served as the operating framework for the local government system. The LGC seeks to increase local government autonomy and accountability by assigning functions and revenue generating powers to local government units. In 2014, the National Capital Region (NCR) contributed more than one-third to the country’s GDP, at 36.3%, while both Calabarzon and Central Luzon followed in contribution, with shares of 17.2% and 9.3%, respectively. Central Visayas took fourth place, with a share of 6.5%. As the NCR’s congestion intensifies and both the labour pool and real estate market approach saturation, investors are increasingly looking to reverse the flow of migration into the metropolis and move into the provinces to capitalise on untapped labour pools and lower costs. This chapter contains interviews with Albert S Garcia, Governor, Province of Cebu; Hilario Davide III, Governor, Province of Bataan; and Jose Ma R Zubiri Jr, Governor, Province of Bukidnon.

The Philippine economy continues to enjoy a period of rapid, broad-based growth as the business process outsourcing (BPO) sector and growing remittances from overseas workers drive growth in consumer-oriented industries and construction. Although real growth decelerated in 2014 to 6.1%, it remained higher than many of the country’s South-east Asian peers, and is expected to remain near 6% for the remainder of the decade. The economy is overly concentrated in the Metro Manila region, and major challenges lie ahead in overcoming long-standing infrastructure bottlenecks and developing stronger energy and manufacturing sectors. Yet the government is increasing its efforts to spread manufacturing and BPO growth across the country and clear obstacles to developing other sectors where outlying regions have strong potential. This chapter contains an interview with Cesar V Purisima, Secretary, Department of Finance; a roundtable with Manuel Pangilinan, Managing Director, First Pacific; Teresita Sy-Coson, Vice-Chairperson, SM Investments Corporation; and Jay Yuvallos, President, Interior Basics Export Corporation; and an interview with Atsi Sheth, Associate Managing Director, and Moody’s Investors Service.

OBG introduces the reader to the different aspects of the legal system in Djibouti, in partnership with Cabinet Guerinot.

In conjunction with JC Colas-Groupe CHD, OBG explores the taxation system, examining Djibouti’s investor-friendly environment. This chapter contains a viewpoint from Felix Emok N’Dolo, Managing Director, JC Colas-Groupe CHD.

Djibouti’s tourism sector has set some ambitious goals, including an aim of attracting 500,000 visitors by 2030. The industry is slated to play a key role in the government’s economic development strategy, Djibouti Vision 2035, which looks to leverage the role of tourism as a job creator and foreign exchange earner, in line with broader economic diversification efforts. Djibouti benefits from a variety of niche attractions, including sandy beaches along the Red Sea, salt lakes, volcanic fields and popular underwater diving sites. Yet, according to the World Bank’s “Country Partnership Strategy for the Republic of Djibouti” report, published in March 2014, only 10% of the country’s tourism potential is being exploited. Concerns over infrastructure shortfalls remain, and further capacity development is required, as limited connectivity is an impediment to tourism growth. This chapter contains an interview with Bertrand Lafrance, Founder, Discover and Aid Nature Wildlife Reserve.