Philippines as a sovereign state obviously has “Economy.” But before anything else, what does this really mean? Is this just a simple money that our state has? Or does this indicate how rich or how poor our country is? This might be a simple three-syllable word, yet it has broad meaning.
Economy refers to the entire network of producers, distributors, and consumers of goods and services in a local, regional, or national community. Economic activity involves natural resources, labor and capital. Underlying these involvement that shape for the evolution of the economy are geographical location, culture, values, political organizations, law and education.
Since the end of the Second World War, the Philippine economy has had a mixed history of growth and development. Over the years, the Philippines has gone from being one of the richest countries in Asia (following Japan) to being one of the poorest. Up until the 1980’s the Philippines was in pace with large economies of Southeast Asia that were co-founders of Asean (Association of Southeast Asian Nations): Thailand, Malaysia and Indonesia. During the uncertainties of the 1980’s and the economic crisis that hit the country toward the end of the Marcos regime, sustained economic reforms and large foreign direct investments made these economies surge faster. There has always been the rise and fall of the Economy.
The leaders of our nation used nationalism as the instrument by which we defined our efforts to attain economic independence. One of the ways of expressing their nationalism was having the idea that the nation must produce its needs through enterprises owned by the citizens of the Philippines to attain successful economic growth.
As of year 2014 The Philippines’ economic freedom score is 62.2, making its economy the 76th freest in the 2015 Index. Its score has increased by 2.1 points since last year, with notable improvements in financial freedom, freedom from corruption, and labor freedom outweighing declines in business freedom and the management of public spending. Despite notable progress since 2011, however, lingering institutional challenges will require a deeper commitment to reform. Corruption continues to be a serious cause for concern, jeopardizing prospects for long-term economic development. This issue has always been one of the restraints of attaining positive economic growth.
The interplay between political and economic institutions is a universal constant.
Economics is concerned with studying and influencing the economy. Politics is the theory and practice of influencing people through the exercise of power, e.g. governments, elections and political parties. In theory, economics could be non-political. An ideal economist should ignore any political bias or prejudice to give neutral unbiased information and recommendations on how to improve the economic performance of a country but in practice there is a strong relationship between economics and politics because the performance of the economy is one of the key political battlegrounds. Politics and political institutions affect our economy. the issues in our politicians affect it. Not to deny the issue of graft and corruption. This has been our hindrance.
I would strongly believe that people sitting in the government has a great role in our economy because it is their work to boost up our country no to get something from it. Poverty is rampant in our society so try to think on how will the country improve if there are lots of things in our country that were denied to be improved. Remember, “Great things come from small beginnings.”
Only if politicians greatly look on how to help the poor and not to make the poor poorer, there would be an easier solution on how to solve the country’s economy for this would affect its citizen’s life. There must be no time wasted, before it gets worse better cure it today or else it would be harder to go back and improve. They must be transparent enough on working for our economy for everyone’s benefit.
The following additional comments should be considered:
1. The Gross Domestic Product (GDP) in Philippines expanded 1.80 percent in the second quarter of 2015 over the previous quarter. GDP Growth Rate in Philippines averaged 1.18 percent from 1998 until 2015, reaching an all time high of 3.30 percent in the first quarter of 2010 and a record low of -2.40 percent in the first quarter of 2009. GDP Growth Rate in Philippines is reported by the Philippine National Statistical Coordination Board. Even though many Filipinos that are experiencing poverty there has been a little improvement of our economy. We may not feel it yet but the most important here is that we have moved up, but this doesn’t mean that we are good enough, because we are not yet on the level on becoming a first world country.
- The Philippines has a status of emerging economy. In recent years, the country has been steadily growing mainly due to inflow of foreign direct investment and remittances. The Philippines is the world’s largest center for business process outsourcing. The country also has a strong industrial sector based on the manufacturing of electronics and other high-tech components for overseas corporations. The Philippines is rich in natural resources; it has significant reserves of chromite, nickel, copper, coal and oil. With our natural resources, we are much capable of boosting our economy, we just lack devices and tactics on how to wisely use these. Many countries are much interested with our resources because like as well it will help their country. These resources must be for the Philippines, it is for us to use for our own good and for only oneself. There is no reason of not striving hard for our country because there are lot of things that can be done with our resources, importation and exportation are not impossible with abundant resources we have.
- Filipinos who go aboard to work–-known asOverseas Filipino Workersor OFWs—are a significant contributor to the economy. OFW remittances is also credited for the Philippines’ recent economic growth resulting to investment status upgrades from credit ratings. Much as they say, Filipinos always look out for the good of their families, that is why there are many OFW’s for the reason of their family. These people are not only working and giving benefit for their families, but they are also contributing into our economy. The Philippine economy is in a sound position today in part because of the steady growth and size of remittances of OFWs (overseas Filipino workers) to the country. The volume of these remittances has continually grown over time as more and more Filipino workers have found jobs abroad. Remittances represent a portion of the earnings of Filipinos working abroad that are transferred to their home families. Remittances sent through the international banking system are immediately caught in the country’s balance of payments which is tracked by the Bangko Sentral ng Pilipinas (BSP). The task at hand is to explore how worker remittances contribute to recent economic developments in the country.
Corruption as hindrance of our development must be stopped. Officials must not think of their own, because it is their duty to work for the people and the country. Corruption is rampant in our government and so it must be really hard on changing this one, but if officials are thinking and people are doing their part on choosing the appropriate leaders for the country this will slightly replenished.
Philippines must use the resources that we have. We must use technology for this without affecting the lives of the farmers or the government must provide a transparent solution to the farmers for this case. The government must enact laws regarding with this, especially to the illegal business by foreigners even by the country’s own citizens. This law must truly be enacted. Projects for the poor must be as well transparent because it is worsening and this would greatly affect the economy. Laws enacted by the government regarding on graft and corruption must be strongly and fully implemented.
The Philippine economy is basically a work for everyone, most especially the people sitting in the government. We, the Filipinos, as part of the government must also take part. As citizen of the Republic of the Philippines, we are entitled by law as members of the political community. We take part of the economy of our country that’s why officials in the politics are not the only ones responsible for this issue. We should always think wisely as to how do we maximize the resources that we have. As citizen of the country, it is also our obligation to engage to gainful work and contribute for state development. We must work together for a goal. None of us wants to suffer in the upcoming generations. We have brilliant minds for our development, we must deal with it. Officials must do their part to truly serve the country, because they are the ones which people look up to. There should be models of good service for the people to follow. Everyone must live by that statement ” The interplay between political institutions and economy is a universal constant.”