Globalization highlights the need for public sector reform, good governance, and state capacity building. Thus, this volume highlights the key developmental role of public institutions in creating an enabling environment for economic growth, improved welfare, and sustainable development. The impact of external pressures on national economies and public policies depends to a large degree on the ability of domestic institutions to adapt to this process of change. As such, the Philippine state has an important role to play in managing this process of growing internationalization and economic integration. Effective bureaucracies and stakeholder participation are important elements of this process. Sustainable economic growth requires greater participation in economic decisionmaking, improved administrative capacity and coherence, and strengthened rule of law.