Free Essay

Four Decades of Developmental Planning

In: Social Issues

Submitted By jazmine13
Words 1549
Pages 7
The following were presented to better understand the Philippines’ current situation and where we were forty years ago:
1. There has been no major change in inequality in 1985 to 2009. Philippines’ income distribution has not worsened but it has not improved as well.
2. The poverty situation went down but the improvement was due to changing the methodology in calculating its percentage. However, NSO data says that the poverty incidence is growing and yet our MDG is to reduce poverty by half in 2015.
3. Employment situation as per NSO says that only 2.8 million are unemployed however, the recent survey conducted by SWS says 11 million are unemployed. ECOP estimates a good 77% are employed in the informal economy while DOLE estimates are at 45%.
4. Philippines’ poverty, unemployment and underemployment may be worse had there been no OFW diaspora.

It has been discussed as well the economic history of the Philippines, what happened and what went wrong. During the 1950’s the Philippines experienced rapid industrial transformation and was considered second to Japan in Asia. However, in today’s economic situation, we are considered as a straggler. A lot of neighboring countries emerged and left the Philippines behind. It was mentioned that corruption, damaged culture and colonial mentality, and closed-economy were theories of inflation on failure to develop. The truth maybe a bit of each theory.

Starting from Marcos and the succeeding Presidents, their Medium-Term Philippine Development Planning (MTPDP) is concentrated to attack problems of mass poverty, unemployment and underemployment, and social justice aimed at bringing about rapid economic transformation and modernization. Developmental Planning is also resolute to the same agenda but the Philippines failed to take-off on the series of NEDA-led MTPDPs.

As mentioned during the 1950’s to 1960’s, the Philippines experiences rapid industrial transformation, during this time, we are under the Import-Substituting Industrialization (ISI). We shifted to Export-Oriented Industrialization (EOI) in the 70’s courtesy of NEDA planning which came in two (2) phases; first 10 years is under the Labor-Intensive Export-Oriented (LIEO) and the succeeding years up to present is under Structural Adjustment Program (SAP). LIEO faced predicaments which led to borrowing with IMF. As it weakened, World Bank’s resolution is the SAP by All-Out Economic Liberalization backed up by SAP loans from World Bank thus it was launched by NEDA in 1980. SAP continued by post-EDSA I Administrations.

A notable observation in the Philippine economy was during the 1980s to 1990s which SAP is the lowest. It was indicated that due to no spiral of growth, no industrialization plan, incoherent, inconsistent government policy on FDIs and IT where reasons on the amiss of the SAP. There were other reasons stated why the economy under SAP went wrong:
• No roadmap, no readiness program
• High cost of doing business
• Unfair system for the locals
• Weak integration/agro-industrial linkages
• Entrepreneurship neglected, no national champions
• Poor managing or directing of the TNCs

Overall, the Philippines economic is surviving because of OFW phenomenon, government thriving on borrowings while those who cannot get jobs in shrinking formal sector or overseas labor market, joins the growing informal sector. Also, the remarkable “accident” happens in the industry when call centers/BPOs flourished in the last 10 years providing jobs for over 500,000 workers.

There are a lot of challenges faced by the Philippines to reach its goals and prosper again economically speaking. The Development Planning should be corrected as well and the Philippines must learn from the best practices from other neighboring countries. After the lecture and the reactions given by eminent guests, more questions surfaced than answers.

As I entrenched further the Philippine economy is regarded as being one of fastest economically developing countries in South East Asian region. In financial year 2007, its gross domestic product grew at a rate of 7.3 percent. This was quickest for the Philippines economy in last thirty years. As of 2008, the Philippine economy is the world’s 47th largest economy. We transformed from being an agricultural based country to a newly industrialized country. The economy is now dependent on services and manufacturing sector. The large allowance from millions of Filipinos working abroad played an important role in the Philippines economic development.

However, I believe that more economic development is required to lessen poverty population, tackle disparity in distribution income and high population growth. The high population growth is a factor for the high unemployment rate in the Philippines. The country’s population growth and unemployment rate is highest in the region (ADB).

During the discussion, variance in computing the major determinants of how our economy is doing is glaring. Different methodologies were used thus inconsistency is evident and target is improbable. One example is the poverty situation; the improvement in numbers is due to the fact that we changed methodologies in computing the said incidence. The MDG’s number 1 goal is to eradicate extreme poverty and hunger which the target is halve the poverty gap ratio in 2015 which is less than four years from now. How can we achieve this objective when realistically, poverty in the Philippines is outstanding?

Another illustration is the unemployment in the Philippines. Currently, Philippines population is about 102 million, and is the 12th largest country in the world in terms of population size. The labor force is 39 million of which 37 million are employed. Low wages and rising standards of living have also forced thousands of Filipino’s leaving the country every day to seek better job options in different countries, based on a study, about 2,500 leaves every day. Recognition should be given to the OFWs as the remittance generated on a yearly basis comprises the 10% of the country’s general GDP.

As mentioned, the beautiful accident of the call center/BPO industry is the biggest driving factor behind Philippines’ growing services. Working in this industry for quite sometime, I can personally say that the industry produced and grown tremendously. In our company alone, when I joined, we were only 300 employees, after seven years, we have about 14,000 employees across the Philippines and our presence is now in nine sites and targeting 20,000 workforce in 2 years.

In the recent meeting with Business Processing Association of the Philippines (BPAP) the industry target is to employ 1.5 million in 2015. However, as much as the industry want to take the 400,000 graduates every year, only 10% of the applicants pass the rigid screening of the selection process. The Philippines may have high literacy rate but the quality of our graduates specifically as English-speaking individuals remains a challenge.

In my opinion, we need to bank on the services industry as it contributes more than 50% of the country’s total GDP, and is estimated to grow further as part of our economic development plan. The government must lead this industry and not bequeath to foreign investors. I will agree as well to the opinion of one of the student named Hans who made an impact to the reactors. He mentioned that since the Philippines is rich in natural resources specifically wonderful beaches compared to our neighboring countries, tourism must be advertised with the help of the government.

Just this year, I was given the opportunity to visit Hong Kong and I can’t help compare how they have reached the success of becoming a tourist destination considering that HK is smaller than the Philippines. As I set foot on their airport, a big difference is noticeable. Eventhough they are a small country, their airport is huge to accommodate tourists from all over the world. Their railroad system is envious. You can ride the MTR and connect to all HK destinations. Just like the Philippines, their economics suffered turmoil in the last four decades but they managed to bounce back because of great leadership. Right now, all we can do is hope for the betterment of the Philippine economy for the future of the young children. I trust to the new government as I have heard first hand stories from different individuals working in the government office. PNoy may be considered as a great leader as he possesses some of the qualities of the famous leaders in the world. I recently started reading John C. Maxwell’s “The 21 Indispensable Qualities of a Leader” chapter by chapter as Maxwell recommended to live a chapter before jumping into another one. Quality 1 is Character: Be a Piece of Rock. I’d say the man has character. He also possesses Charisma, Quality 2. I am not a PNoy fan but I think I can be a convert soon. In a recent conversation with a friend, PNoy was roused from his sleep to report that VP Binay’s popularity rating is scoring high. He told the cabinet member that things like those can be discussed in the morning. He also asked what seems to be the problem if VP Binay’s rating is higher than his. In the first place, they are both working in the administration and towards one goal – for the people of the Philippines. Therefore, having a leader who has a high self-esteem means there is still hope.

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