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The Economic Problems of the Philippines Gunter Hecker, country director for the Philippines of the Asian Development Bank has identified the three major Philippine economic problems as high population growth, unequal distribution of wealth and poor performance of the agriculture sector of the economy. Any ecomomic gains the Philippines achieves only ends up being nullified by a high population growth rate of 2.3 percent. The population of the Philippines is now estimated to be 82 million. Education always gets the lion's share of the national budget but, like the labors of Sisyphus, there are not enough school buildings, teachers and text books for the ever-increasing number of students who troop to the classrooms when the school year begins in June. Moreover, the Catholic Church is adamant that the government does not pursue an agressive birth control program focusing on contraceptives. With the Catholic Church exerting much influence on President Gloria Macapagal-Arroyo for its support in EDSA II, the Catholic Church always gets what it wants with respect to the population policy of the government. As a result, the Philippines' population growth rate is one of the highest in the world. Despite the passage of an agrarian reform law during the Marcos dictatorship, the income of farmers have not risen significantly compared to the income of the service and industrial workers. Agriculture accounts for 20 percent of the Gross Domestic Product but it employs 33 percent of the total labor force. The low productivity of farmers is mainly due to the failure of the government to provide cheap farm credit, adequate technical support, lack of farm-to-market roads and post-harvest facilities. This perpetuates the inequitable distribution of wealth in the Philippines. Globalization and trade liberalization would see to it that high-cost Philippine agricultural products would never be competitive in the world market. The safety nets promised by the government to cushion the impact of the flood of cheap imported rice, corn, sugar, etc. have never materialized. With out training programs to teach the farmers alternative skills for gainful employmnet, the farmers are doomed to a life of grinding poverty and vulnerable to the blandisments and propaganda of the Communist New People's Army. Even before the terrorist attacks on New York and Washington DC on 11 September 2001, the Philippines suffered much from the Abu Sayyaf terrorist group. The kidnappings of foreigners have scared tourists and made investors wary of investing in the Philippines. Investors are flocking to China where it costs $1 to hire a laborer compared to $5 in the Philippines. If President Macapagal-Arroyo really wants to nurse the economy to the path of growth, reduce the number of Filipinos living below the poverty line and improve the quality of their lives, she must focus her attention, like a laser beam, on reducing the population growth rate and improving the parlous state of Philippine agriculture. |
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Saudi: Very true -population growth is a factor regarding the Phils's development but see China--the Phils must start re-focusing on globalization like India and China. An industrial upheaval (revolution) is far overdue and will be critical to the competitiveness of the Phils. Sure terrorism is an issue to foreign investment..take a page from Singapore in confronting this issue. Politically, Arroyoz has lost the confidence of the world and her people by even suggesting a parlimentary "psyudo" government will rescue her country. She needs to clean house or resign. If she has not the stomach to lead her country then maybe a foreigner (American) will make sure to preserve the democracy the Phils has adopted with America's assistance. Clearly, the Phils are at a crossroad of taking the high road (more change) or continue to decline amongst LDC's. A choice the people has to assert for their future..... Regards. T.
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