This paper attempts to explore the use of an OECD Multi-Dimensional Country Review (MDCR)
framework in understanding the long-term development history of the Philippines. The MDCR
recognizes the multiplicity of development objectives countries usually pursue and therefore the
associated multiplicity of challenges and opportunities. Following a conventional dichotomy of
explaining the country’s development dynamics into economic and non-economic factors, the paper
reviews the historical economic record and examines more recent non-economic hypotheses. While the
latter is mostly political explanations it tries to link them to economic outcomes yet it is weak in tracing
the mechanisms of the linkage despite using more rigorous methodologies. The paper then proceeds
with hypothesizing that the long-term (political) behavior of breaking the country into finer geographical
(and political) entities has been inimical to its sustainable long-term (economic) growth. The splitting of
provinces, creation of new ones, of legislating more congressional districts, and further break-up of even
the lowest government levels clearly fragment markets, raise real financial and transactions costs, bloat
government budgets and the bureaucracy, and add burden to the private sector environment. Partial
evidence is explored showing this behavior along the country’s long-term development history and
some policy directions are suggested.