'Economic Problems of the Philippines Essay\r'

'Economic problems of the Filipinos be actually similar to those being battled by other underdeveloped and evolution beas. After a wide tryst with colonization, the nation is at a time grappling with increase imports and a complicated preservation that is quiet to stabilize.\r\nThe Re public of the Philippines is located in southeast Asia and Manila is its large(p) city. The c grimnish comprises 7,107 islands and ranks as the twelfth much or less(prenominal) populous rude in the solid ground. Like most other southeast Asian regions, the Philippines too has a narrative of European colonization. It was a village of Spain and the USA. The orbit is at a time post to multiple cultures and traditional ethnicity. It is likewise looked upon as a complete example of a ‘mixed economy’. Industrialization is a new maturation in the Philippines. Traditionally, the economy stabilized on the agrarian contributions and the manufacture of garments, pharmaceuti cal products and semiconductors. In the lowest decade, electronic exports added to the exports, including versatile products obtained by mining.\r\nThe economy of the nation also largely depends on the remittances from Filipinos residing eachplaceseas and investing in the homeland. However, exports are non planely balanced by the imports that include heavy electronics, garments, various raw materials, intermediate goods and fuel. The determine of the Manila galleon on the nation’s economy during the Spanish period, and bilateral trade when the country was a colony of the pithed States has resulted in the preference of a mixed economy everyplace a centrally plotted or commercialize establish one.\r\nIt is very important to generalise the shift during the Ferdinand Marcos leadership, from a market economy to a centrally planned economy, to relate to the scotch recession that the country is now facing. With adverse spherical trends and the world economy incoming a protracted depression, in 2011, the Philippines confront another economic downturn. The country’s lack of inhering economic strength payable to the absence of core manufacturing sphere of influence and an absence of firm and inconsiderate house servant insurance initiatives induct led the economy to be dependent on the verbalize of the global economy. Thereby fashioning it vulnerable to external shocks.\r\n here we try to look at ternary possible challenges be to egress and trustworthy development of the economy in 2012, ground upon the insights provided by the economic political and decisions by the Aquino plaque in 2011.\r\nMajor Financial Problems of the Philippines\r\nOver-dependence on Global Economy The increment of the Philippines economy drastically slowed to undecomposed 3.6% in the beginning(a) iii quarters of 2011, which is signifi posteriortly less than the 7%-8% growth tar abbreviateed by administration’s Philippine Development Plan (P DP). though the slowdown may suck up been due to the ongoing global crisis, it was markedly slower in similitude to other sou-east Asian neighbors. Economic murder figures indicated a contraction in exports and a drop in FDI. Though the remittances from hostile Filipinos to the country grew in the first x months of 2011, however the compensation that overseas Filipinos received actually fell, in peso terms, due to an appreciating peso.\r\nIn 2011 the Aquino administration sought a FTA (Free Trade Agreement) with the EU and join the Trans-Pacific federation (TPP). The administration but allowed the US to even more directly influence Philippine economic constitution making in its self-interest, by entering in a Partnership for Growth (PfG). These partnerships go forth whence further the dependence of the economy on the global economy, whereas a regional arrangement betwixt less unequal Southeast Asian countries is potentially useful. greater attention has to be give to a ddressing to the internal problems of the economy and enhancing domestic-oriented growth. A policy of removing structural impediments to growth has to be adopted with lesser focus on foreign investors and exporters.\r\nUn use The official unemployment figures for the Philippines in 2011 are among the worst in Asia, high than its South-East Asian neighbors and match to the International Labor transcription the country is among the worst after part in the world in terms of unemployment rates. Without a pixilated manufacturing industry or true Filipino industry, the economy go forth be unable to pee-pee enough decent paid jobs. Till then manufacturing or services will stay put substandard, or of low value-addition. fit in to employment figures, jobs in the Philippines manufacturing area increased by unsloped 8% of the wide employment. closely three out of every ten people in the labor force are looking for work or are jobless. The mining sub-sector tell to be one of the sudden growing industry in 2011 failed to generate new jobs (just 0.6 % of total employment).\r\nSteadily rising largeness has contributed to the erosion of the value of the tokenish wage. Though the Aquino administration increased the minimum wage and denote cash dole-outs but lack of quality decent salaried jobs and higher accepted take continue to be a problem. The political sympathies’s policy to encourage foreign capital, even if in just low value-added assembly operations will continue to hinder real growth and development of the manufacturing sector. The Aquino administration needs to plan over the long-term, and prepare an industrialization curriculum that encourages value-addition manufacturing or services and builds Filipino-owned industries.\r\n position Fiscal Austerity Practicing monetary austerity just to get favorable quote ratings can be counterproductive. The Aquino administration, in 2011, pursue monetary austerity and washed-out 2.1% less in the first 11 months than it did in the akin period last year. This along with increased revenues brought down the fiscal deficit and subsequently international credit rating agencies prototype and Poor’s, Moody’s and Fitch upgraded the country’s credit ratings and outlooks. In 2011 the government cut spending on economic services, including infrastructure, in the said(prenominal) vein did not take up in for shortfalls in education, wellness and housing sectors. As a result, over the first three quarters of 2011, income from public tress contracted by round 46% whereas government usance reduced by a mere 1.7% in comparison to the same period last year.\r\nMisplaced austerity measures and an magnified concern about credit ratings contracts the economy, reduces demand and undermines future growth. The proposed public private partnerships (PPPs) are a poor substitute to real investment and public expenditure, because the origin are majorly driven by short- term profit man the latter play a vital role to ca-ca development.\r\nThese are just some(a) of the economic challenges looming large over the Philippines. The country is facing meaning(a) decline in industrial production, gross domestic product, income and employment and sales. The Aquino presidency supposedly is acquiring the support of the people, as indicated by its high approval ratings, for the infallible economic measures that are in the general public interest. In 2011, the Aquino administration’s policy choices to give greater slant to narrow foreign and domestic elite interests, unfortunately, underscores the challenge of button for real reform in 2012.\r\n'