Name: Juliet M.

Alina Subject Code: AE 12

Class Schedule: MWF; 10:30-11:30 Date: March 11, 2019

Philippine Economy
The Philippines was once a model of development and second only to Japan among east Asian
economies. In the 1960s, when South Korea was a land of peasant, the Philippines was one of Asia's
industrial powerhouses. It produced consumer goods, processed raw materials and had assembly plants for
automobiles, televisions and home appliances. Chemical plants produced drugs. Scrap metal was imported
and made into steel for ships and factories produced cement, textiles and fertilizer.
Philippines is also one of the "Tiger Cub Economies" during the time of late president Marcos. Tiger
Cub Economies refers to the developing countries of Southeast Asia which includes Indonesia, Malaysia,
Philippines, Thailand and Vietnam. The term cub indicates the early stages of development of each country
after years of growth and maturation. However, in 1970- 1980s the Philippine economy declined while its
neighbours continues to grow and became one of the poorest non-Communist government in Southeast Asia.
The gains made in the 1950s to 1960s were lost to corruption, cronyism and mismanagement. Now
Philippines is sometimes reffered to as "sick man of Asia". According to research, the main reason why
Philippines is suffering from declining economy includes unemployment, poverty, poor infrastructures, and
heavy dependence on remittances from OFW's.
A study from January 2015 shows that out of the 62.87 million Filipino's in the age group of 15 years
and above 40.11 million were comprised by the labour force. And 2.65 of this were unemployed though jobs
are being generated. Many of this unemployed individuals are college graduates. Many of them waits for
opportunities abroad and many families are depending on remittances of a family member staying abroad. A
study of J.V Romero,Jr. PH.D ( March, 2014) shows that the consensus of most economist here and abroad in
relation to the local unemployment situation appears to have the following key features: the need to promote a
more appropriate balance between rural and urban economic opportunities; full development of small-scale,
labor-intensive industries; choosing appropriate labor intensive technologies of production; creating a direct
link between education and employment; reduce rural migration; and remove intensive capital bias.
In addition, poverty is very much linked to unemployment. A large number of Filipinos remain without
jobs while the growth is restricted to the BPO, retail and real estate sector. It might be so impossible for the
government to eradicate poverty considering that it has been a part of our society for a long time. But it is not
the end yet so there is still a chance for us to fix and minimize this. We can still to something to it. I think it
would be much easier to address if we know the main reason of poverty. Accordingly, poverty is not really a
natural phenomenon that happens in the human life. J.Davon stated that poverty could be point out as the
result of the most concealed human sabotage. He said that it a result of the mess that we carry within
ourselves. A mess which points out to our ignorance on how to do things right. So in other words, it is us who
creates poverty within ourselves. It is our ignorance which creates deception to make us believe what we think
we are. Ignorance which controls our way of thinking, belief and the way we do things.
Another problem which contributes to the economic down fall in the Philippines is the poor infrastructure.
It has been observed that some of the infrastructure here were poorly furnished. It easily breaks in times of
calamity. In other words, our government should also pay attention to enhance the infrastructure. They must
develop transportation ( roads, railroads, ports and air transports) for it is also considered as essential element
for economic growth. Furthermore, this problem is also connected to corruption. It is just a result of various
individuals action toward manipulating the budget for constructions.
Meanwhile, heavy dependence on remittances from OFW's is also one problem which needs to be
addressed. It is not just the family member of the OFWs who depends on their remittances but rather including
our country heavily relies on them.
Therefore as a student, what I can contribute in order to address this aforementioned issues is to simply
change and become the better me. For education is a key to change the future. It is when we finish our
schooling when we can truly have the change to change something in our society. Every development and
solution comes within ourselves. If we start to change the way we discipline ourselves within our family we can
rebuilt our system. We must let go of our ignorance, strive to learn and do things right from now on. And I will
to teach the young generations within our family the proper discipline, that they must not take advantage to
weaknesses of others for their benefit. That in everywhere they go they must stay truthful in their jobs for
taking advantage can do no good to them. For by simply changing oneself can be the beginning of the change
for everything.
Reference:
Jose V. Romero, Jr. PH.D. (March 2014). Solving the Unemployment Problem. https://www.manilatimes.net/solving-the-
unemployment-problem/80176/
https://www.quora.com/What-are-possible-solutions-to-eradicate-poverty-in-the-Philippines
https://opinionfront.com/economic-problems-of-philippines