economic issue (midterm)

The growth of the Philippines economy drastically slowed to just 3.6% in the first three quarters of 2011, which is significantly less than the 7%-8% growth targeted by administration's Philippine Development Plan (PDP). Though the slowdown may have been due to the ongoing global crisis, it was markedly slower in comparison to other South-East Asian neighbors. Economic performance figures indicated a contraction in exports and a drop in FDI. Though the remittances from overseas Filipinos to the country grew in the first ten months of 2011, however the compensation that overseas Filipinos received actually fell, in peso terms, due to an appreciating peso.

In 2011 the Aquino administration sought a FTA (Free Trade Agreement) with the EU and join the Trans-Pacific Partnership (TPP). The administration further allowed the US to even more directly influence Philippine economic policy making in its self-interest, by entering in a Partnership for Growth (PfG). These partnerships will consequently further the dependence of the economy on the global economy, whereas a regional arrangement between less unequal Southeast Asian countries is potentially useful. Greater attention has to be paid to addressing 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.

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MY PERSONAL REACTION

  For me, Philippine economy are becoming dependent due also to a global crisis. We don't have a lot of  any owned Industries because of over-dependence to the world economy. We have a lot of Imports and less of Exports. We Filipinos don't help our own economy instead of buying our own product we are enjoying other countries product.  A lot of boutiques in the mall that are owned by a foreign investors but we Filipinos also are patronizing buying their products. So, for me instead of buying imported products why we just buy our own domestic product so that in a little way, we can help our economy not be over-dependence.

http://www.buzzle.com/articles/economic-problems-of-the-philippines.html

economic issue

The official unemployment figures for the Philippines in 2011 are among the worst in Asia, higher than its South-East Asian neighbors and according to the International Labor Organization the country is among the worst one-fourth in the world in terms of unemployment rates. Without a strong manufacturing industry or real Filipino industry, the economy will be unable to create enough decent paying jobs. Till then manufacturing or services will remain substandard, or of low value-addition. According to employment figures, jobs in the Philippines manufacturing sector increased by just 8% of the total employment. Nearly three out of every ten people in the labor force are looking for work or are jobless. The mining sub-sector said to be one of the fastest growing industry in 2011 failed to generate new jobs (just 0.6 % of total employment).

Steadily rising inflation has contributed to the erosion of the value of the minimum wage. Though the Aquino administration increased the minimum wage and announced cash dole-outs but lack of quality decent paying jobs and higher real wages continue to be a problem. The government'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 program that encourages value-addition manufacturing or services and builds Filipino-owned industries.
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MY PERSONAL REACTION

For me, the unemployment rate in the Philippines has increases due to the less of employment demand. The best example for that are the Registered Nurses (RN), we have many hospitals but the salary of nurses here in the Philippines are less than abroad. In short, Philippines can't afford to pay salaries in a higher wages because the fact that our economy don't have a Filipino Industry that can support to our country. For me, we are just depending to the other country, we don't have any big industries here in the Philippines that we can be proud of.