Economy and Politics in the Philippines by: Maria Hazel Cabalit

Every state has an economy. It is like indicating a society of how well their individuals are participating to make it progressive.But, what does economy really means? What does this have to do with our country? What are indicators of a progressive economy?

Economy refers to the process of production, distribution, and consumption of certain goods and services by individuals in the society. Economic activity involves natural resources, labor, and capital. Underlying all this are geographical location, culture, values, political organization, law, and education.

The Philippines is considered as a newly industrialized country, which has been transitioning from one based on agriculture to one based more on services and manufacturing. In 2014, the GDP by Purchasing power parity was estimated to be at $692.223 billion.The Philippine economy has been growing steadily over decades and the International Monetary Fund in 2014 reported it as the 39th largest economy in the world. However its growth has been behind that of many of its Asian neighbors, the so-called Asian Tigers, and it is not a part of the Group of 20 nations. Instead it is open grouped in a second tier of emerging markets or of newly industrialized countries. Depending upon the analyst, this second tier can go by the name the Next Eleven or the Tiger Cub Economies.In the years 2012 and 2013, the Philippines posted high GDP growth rates, reaching 6.8% in 2012 and 7.2% in 2013, the highest GDP growth rates in Asia for the first two quarters of 2013, followed by China and Indonesia. As a newly industrialized country, the Philippines is still an economy with a large agricultural sector; however, services have come to dominate the economy.Much of the industrial sector is based on processing and assembly operations in the manufacturing of electronics and other high-tech components, usually from foreign multinational corporations.Filipinos who go aboard to work–-known as Overseas Filipino Workers or OFWs—are a significant contributor to the economy but are not reflected in the below sectoral discussion of the domestic economy. OFW remittances is also credited for the Philippines’ recent economic growth resulting to investment status upgrades from credit ratings agencies such as the Fitch Group and Standard & Poor’s.In 1994, more than $2 billion USD worth of remittance from Overseas Filipinos were sent to the Philippines.In 2012, Filipino Americans sent 43% of all remittances sent to the Philippines, totaling to $10.6 billion USD.

The International Monetary Fund (IMF) said the Philippine economy likely picked up speed in the second quarter of the year after slowing down in the first quarter on weak global demand and lack of government spending.The Philippines recorded a 5.2 percent GDP growth in the first quarter of the year from 5.6 percent in the same quarter last year on the back of anemic spending caused by delays in the implementation of much-needed infrastructure projects.Last July, the IMF revised downwards the country’s GDP growth forecast to 6.2 percent based on the July World Economic Outlook (WEO) compared to 6.7 percent based on the April WEO as it lowered its global growth forecast amid the slow US economic recovery.The IMF slashed its global growth forecast this year to 3.3 percent instead of 3.5 percent. This year’s revised forecast was also lower compared to the 3.4 percent global growth registered last year.

Political system refers to the system of power of governance. It is often associated with economic system, cultural system, religious system, or legal system. It is constituted by members of the organization, by-laws and policies in the management and administration, and mechanism for maintaining order in and out of the organization.

To contain the fiscal crisis after Marcos dictatorship, a total of 29 tax measures were passed by Corazon Aquino administration; the introduction of 10% Value Added Tax (VAT) , an additional 20% VAT imposed on luxury goods, a unifiedtax schedule for compensation and professional income and new taxes fir franchisees. From 1986 to present,debt payment for interest alone has slashed the 25% of the national governance budget. The worsening conditions of the poor is still evident up to this day. Prices for rice rose from a range of P30-40;petroleum product and gasoline.

Learning about our economy and our politics can help on how we can improve our country. I strongly believe that politicians have great role in improving our economy. If our way of governing will not change and politicians would not change their ways of governing our country then our country economy won’t imporove. As a Filipino citizen, we have the responsibility to help it to become progressive. Our country is blessed with many abundant resources and all we have to do is make use of it and expand it. Politicians must be aware of the current state of those poor people,who up to this time are still suffering. If only politicians will not take advantage of their powers by being corrupt and use it instead to help those poor people. Corruption is a hindrance in the development of one’s economy. We can’t blame those poor people for being poor because how would they improve their lifestyle if nobody would help them. Politicians must be true to their words because some are just saying stuff to get the peoples votes but when they got the position they forgot all of those promises they made during elections.
Everyone must live by this statement “What you do has far greater impact than what you say.”
Sources:
https://en.m.wikipedia.org/wiki/Economy
http://www.philstar.com/business/2015/08/24/1491347/philippine-economy-picks-speed-second-
quarter-says-imf
http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/38
http://country.eiu.com/
http://countrystudies.us/philippines/56.htm

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17 thoughts on “Economy and Politics in the Philippines by: Maria Hazel Cabalit

  1. It is not impossible for the Philippines to become great again. Indeed, studying the economy will greatly help improve our current understanding on the situation of our economy today. Solving problems requires a proper analysis. We just need to find and apply the right solutions and give our country time and hopefully, maybe not in the near future, but still in the future, our country will become great again.

    – Alacrito, Ian

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  2. I agree that we can’t blame the poor for being poor but I believe that poverty is a choice. We control our own lives. If we like being on the side track and let the government do the job alone then we are not helping ourselves. What happens with the economy affects us. The poor needs our help but I hope the poor people would know that the country needs their cooperation.
    -Gwynneth Muriel Guarin

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  3. Filipinos experiencing poverty for me personally can be a choice or sometimes it just merely happens that we are not in luck. Firstly is that it can be a choice for their are public schools who offer free education to those who are in need and that when education is attained it helps us find a job in the future. Secondly, it is not by choice, there are Filipinos out there striving hard everyday for their family but it is just not good enough and we need to respect these people and as much as possible help them for they are good and deserving people.
    – Mary Christine Saldon

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  4. Maybe people should help themselves to stop poverty or (uplift the way of living) they have.They should not always depend on the government.They(people) also need to work for themselves and family. The only way I think to stop poverty or should I say to uplift the way of living is to have DISCIPLINE and HARDWORK.

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  5. Hardwork and determination make a huge difference in one’s life. Failure is not falling down, its falling down in the same spot. Our people should not give up in their efforts to lift themselves up. We should continue striving.
    – ligutom

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  6. Poverty may be qualified as a choice, a choice our people have to make. If, by fate, they were born in the slums, without the capacity of feeding themselves for at least three times in a day, they should ponder whether they want to live their whole lives in poverty, or they want to experience a change. Whether it’s the former, or the latter, that they want, they would have to make a choice.

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  7. A person or family may not have chosen to be living in poverty but they definitely have made a mental decision to accept their situation and have chosen to stay there. We can change our destiny by simply helping ourselves first and by cooperating for our country to progress.
    -Andre Austin Trabajo

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  8. Corruption is a hindrance in the development of one’s economy and as we can see, we have corrupt officials. Yes corruption is in line with poverty but everything isn’t because of the government’s fault. This is usually the excuse people in the lower statuses would say but if they would really want to achieve success, it is not impossible with hard work and determination.

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  9. All countries are corrupt, it is normal for a human to lavish on greed. What bothersome is, that people chooses to close their eyes even if the unfairness is laid out in front of them. And it is basically not morally dignified to say that we are doing something in this country. We need to open our eyes, and in my opinion, we are slowly opening them one by one.

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  10. We might live in poverty but that does not mean that we should just accept that kind of fate. We should also consider the future of everyone, our families, and our very one country if we do not act fast in saving ourselves in poverty. We could make a change through determination and hardwork. We filipinos are known to be ver hardworking. We should continue to prove ourselves more by showing our worth and the progress we aim to have in our country.

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  11. In the Philippines today, we do not see the real situation and choose to ignore it. We just flaunt around and pretend nothing happen. All of us must be aware so we can help on what is happening on our society.

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  12. Again, we reap what we sow. We cannot just blame the government always. It takes two to tango as they say. The people are also to be blamed. Its like the ” Cause-and-Effect” …… Life is what we make of it.

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  13. It is the fault of the government since they are blinding us of what the real problem is with media, making people only think about “ALDUB” or showbiz.

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  14. You are either born poor, middle class, or rich. Whether you stay that way is entirely up to you. Being born poor may not have been your choice, but the moment when you believe that it’s the only option then you have made your choice to be poor. You don’t need to be smart or lucky or even pretty to be able to pull yourself out of the slums. All you need is hardwork, dedication and patience.

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  15. It is unfair to see children taste the left-over foods they found on the streets, abandoned by their parents. When in the first place it was their fault why their child suffer. Again, it all points down to proper education.

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  16. Nobody chose to be poor. Nobody wants to live below poverty line. But if you’ll just sit there and wait for a miracle to happen, then nothing will ever change your lifestyle. Being poor isn’t a choice, but it’s in their hand if they’ll stay there until they die or make a move and help themselves. There are lots of options to rise but if you’re not determined then nothing ever will happen. Success lies in your hand.

    -Naquila, Rosary Faith P.

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