Modern Economical Landscape of Philippines - Essay Example

Teacher Economic opinion of the Philippines If there is any country in the whole which should have progressed long time ago but did not is Philippines. After the WWI, Philippines was the second best performing economy in Asia next only to Japan. Its universities also were one of the best in the world where its state university UP (University of the Philippines) was only second to University of Tokyo. When Martial Law however set in 1972, the downward spiral begun where corruption became institutionalized and power concentrated on political dynasties and oligarchs.

Almost all aspect of Philippine society deteriorated that for a long time, it became the basket case of Asia. Its biggest bane is its political landscape. It is marred with corruption, political dynasties, red tape and nepotism. Investors shy away from the country due to the difficulty of doing business there. As a result, the local economy suffered where unemployment is high subjecting many of its population to abject poverty. Also, many of its best brightest minds left the country to work and migrated overseas (Rappler.com). At present, this flaw in the political and economic infrastructure of the Philippines is not yet corrected as the remittances of its Overseas Foreign Workers are still the biggest contributor to its economy.

The second issue why the economy of the Philippines is not strong is because it does not have its own industrial and technological backbone. Its economic base consists merely of business processing units and assembly plants which are primarily owned by foreign enterprise. These enterprises can leave anytime exposing the vulnerability of the Philippine economy. My two recommendations for Philippines for the Philippine economy to become prosperous 50 years from now are to reform its political system and build its own industrial and technological base.

It can reform its political system by prosecuting corrupt officials and passing into laws that will democratize its political system such as banning political dynasties and nepotism. Its recent prosecution of corrupt officials under the former President Macapagal Arroyo supports this recommendation as investor’s confidence increased. Investment flourished amid a global crisis. During the period 2011-13 when the global economy is slowing down, Philippines registered a GNP of 7.2% which is considered as one of the highest in the world (NCSB).

The reform undertaken by the present administration of President Aquino resulted in an upgrade of its credit rating in two succeeding years making it now a BBB+ which is already an investment grade (Martin). This indicates that once the political issue in the country, Philippines is bound for a take- off. Also, to make its progress durable and long-term, Philippines must have its own industrial and technological base. It can do so by thinking long-term and investing in Research and Development.

Investment in Research and Development includes an increase in the budget allocation of its universities and upgrade of its scientific infrastructure. It will take time before these investments will give result but it will be more durable because it will not only create jobs, but products and services that are patently Filipinos that will create value for the country. Philippines has a remarkable and talented workforce with a very rich natural resources. Once its political and industrial issues are addressed, the country could become one of the strongest economies in the world.

Works Cited Javines, Regel. "Revisiting Philippines… to Become the NEXT “Tiger (Target) Economy” in Asia?." Revisiting Philippines… to Become the NEXT “Tiger (Target) Economy” in Asia?. N.p., 1 Oct. 2011. Web. 9 May 2014. . Martin, Kathleen. "S&P gives Phl another credit rating upgrade." philstar.com. N.p., 9 May 2014. Web. 9 May 2014. . "NSCB - Philippine Economy posts 7.0 percent GDP growth in Q3 2013." NSCB - Philippine Economy posts 7.0 percent GDP growth in Q3 2013. N.p., n.d. Web.

9 May 2014. . "Philippine economy cant do without OFW remittances - Neda." Rappler. N.p., n.d. Web. 9 May 2014. .