ANTO COMETA
In the early 1980s, the economic condition of the country started to experience a stumbling block that has greatly affected the major sources of the nation’s revenue. This period marked the major decline in Philippine exports in the global market and has also affected the credit rating and borrowing of the country in international financial institutions. The fell of the industrial sector (as well as the agricultural sector) in the country could be attributed to the economic crises that the country has experienced. But was it mainly on these crises that the industrial sector had befallen to its current state? How could we revive an industry that has been in its lowest depth (as far as the country’s condition is concerned) for decades?
Before the 1970s, the country has been exporting primarily raw or semi processed goods such as mineral products. Years after, the country has been exporting manufactured commodities chiefly electronic components and garments. This has boosted the Philippine economy which made the country more affluent compared to the neighboring countries in the region. However, the growth in Philippine industries stagnated – there were no increase in both production and employment. The manufacturing output of the county was cut down because of both political and economic crises in 1983. By the middle of the period, the current administration then developed economic restructuring programs in order to propel the wobbly industry. The economic plan was then effective which made the industry working at full capacity again. However, the programs implemented not were not sustained or fell short of efficacy on a long term period.
The fall of the industry has evidently affected the labor sector. This increased drastically the rate of unemployment which led to the brutal fact of people going abroad to earn sufficient money for their families. The per capita income of the country was intolerable (actually until now). The 1993 GNP of the country was estimated at $830 having an annual GDP per capita growth of .065% between 1986 and 1993. This has increased the percentage of the country’s population below the poverty line.
After a decade, the impact of globalization has significantly aggravated the current condition of the industrial sector in the country. The move towards globalization is not a dreadful economic step. However, the number and share of foreign equities in the business sector compared to local is increasing, thus affecting the domestic businesses in general. Currently, the largest sector in terms of the country’s economic revenue generating component is the services sector. Business Process Outsourcing (BPO) companies constitute the largest part of the services market. Ample number of the labor force in the Philippines is employed in these businesses, majority of which are operated by foreign entities.
There are still industrial businesses that are operating in the country. Although for the most part, these are oligopolistic businesses which are run by a handful of family business tycoons way back the start of industrialization in the country. They have survived by cutting down the cost of their operations - downsizing their manpower and usage of available technology for their businesses.
The attitude and practice of domestic entrepreneurship as well as investing in industrial businesses has been considerably decreasing if not nominal due to the economic impediments and lack of efficient programs, support and policies governing the domestic market. If we were to trace the setback, it started from the crises that the country have faced and has been intensified due to short lived and unsupported domestic economic strategies. If we were to revive the industrial sector, the government should pay much attention to the domestic market concerns. The government should invest more on reviving local industries such as setting limit if not a decrease in the entry of imports and expand the domestic industrial market output and exports. This should be backed up by both fiscal and monetary policies in order to protect and gain confidence that the industrial businesses could still be profitable.
Economy of the Philippines, http://countrystudies.us/philippines/
The Industry, http://countrystudies.us/philippines/
The Philippines, http://www.unsystem.org/SCN/archives/rwns94update
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