SUPAPO, JOHN BENEDICT C.

GED103/A29

Think Piece

The Philippines was once considered “the sick man of Asia,” as it lagged behind its
neighbors which previously comprised its trail. Using the provided readings as
background, submit a synthesis paper analyzing the root cause of the underdevelopment of
the Philippines as a nation. Make sure to consider the relationships between the issues of
agrarian reform, constitutional reforms and initiatives, and taxation.

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The economy has generally grown with a rising population, and millions of Filipinos remain in

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poverty. This is usually due to growth being too gradual or, because it has been relatively fast in

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recent years, to growth that needs to be maintained over longer periods of time. However, the

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prevalence of persistent poverty in the sense of wealth for a few and worsening inequality leads
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to broader flaws in the essence of productivity and the manner in which the economy supplies
the gains of that growth. Poverty continues due to: 1) social and economic problems, in
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particular the underdevelopment of agriculture and industry; 2) uneven distribution of wages,

properties and opportunities; and 3) insufficient government programs and minimal social
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security. Both are the product of long-standing unreformed frameworks to economic policy-
making and weak people 's involvement in government. Furthermore, ecological destruction is
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now causing significant immediate issues and, if unsustainable rates of development do not alter,
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it would also have negative long-term effects. These problems deserve to be elaborated to
underscore the gravity of the development crisis and to underscore the need for far-reaching
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changes outside traditional 'anti-poverty' steps. It is interesting to see how trade and investment
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liberalization has expanded international trade in the market and increased overseas investors,
but has not created a national economy whose dynamics continue to worsen. It is also important
to emphasize how most employment (and unemployment) are generated by macroeconomic
policies. The final outcome of community and subsistence programs inevitably depends on the
overall economic climate generated by macroeconomic policies. Similarly, though teaching and
education skills are ideally suited to fitness for open employment and competition between job-
seekers, the supply of jobs depends, in the first place, on macroeconomic policies. The cycle
enables for addressing persistent poverty lie in the development of domestic agriculture and

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 manufacturing, the manufacturing sectors of the economy and the fundamental foundations for
national economic development. They are the most important industries for job growth, wealth
production, capital formation and technical development. Although such economic growth is not
and should not be a requirement for taking steps to make change in the different aspects of
poverty, underdevelopment restricts what can be done across the long run, in the same sense as
higher levels of economic development can extend what is feasible. Unfortunately, excessively
market-oriented Philippine trade plan has not established these critical industries, leaving the
economy prematurely system-oriented through over-reliance on foreign remittances and
international investment. Filipino agriculture and national industry have not increased their
portion of the wealth nor shifted from largely low value-added and low productivity activities to

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high value-added and high productivity activities. Yet such a transition from underdevelopment

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is important in order to place the nation on the road of genuine and sustainable economic growth.

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The production sectors are the most critical fundamental sectors that will need to be created.
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Cycle of underdevelopment. Low value-added and poor productivity agriculture and industrial
output result in poor job generation and low wages. This backward development is losing out on
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business opportunities and cannot expand, whilst the low economic deficit produced restricts the
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reinvestment and future remuneration of its workers. Poor job generation and low wages are
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commensurately weak household buying power, which in turn contributes to low global demand
for goods and services. Poor domestic demand ensures that domestic manufacturers face a
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restricted market that prevents their growth and is only increased by trade liberalization and
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rivalry from imported goods. If domestic producers cannot increase, so international demand can
not necessarily grow as well. As a result, it stays outdated with low value added and low
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efficiency – ending the destructive cycle of underdevelopment. This cycle is reinforced by

simultaneous dynamics in play. Low competitiveness and low economic excess do not
necessarily mean the company constraints on reinvestment and compensation. They also imply a
low volume of savings for efficient reinvestment elsewhere in the economy, which further
prevents the growth of domestic demand. Overseas jobs and money transfers have been a partial
price control force for this period to the degree that they raise household buying power and
improve domestic production. But they are only a very slightly positive charge infusion, since
their contribution is primarily to household income and material welfare and even then only to a
fraction of the population – and not to domestic development. To simplify, economic progress

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 has not contributed to the production of manufacturing or agriculture, resulting in a weak
generation of workers and, however, jobs that are mostly casual and of low quality. The formally
structured sector of the economy, which has always been a minority, has been weakened by the
rising formalization of labor markets. Such domestic conditions are forcing millions of Filipinos
to work abroad. Since the 1980s, the industrial industries that accounted for a more or less steady
share of the economy from the post-war years to the 1970s have been in persistent decline. The
fundamental dilemma is expressed in the low productivity of agriculture and industry and their
largely declining share of the domestic economy.

There is a growing awareness now that mitigating poverty needs little less than sustainable

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economic development. Invariably, the rate of poverty, like other human development metrics,

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has improved in developed countries where growth has been fast and maintained for a

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considerably long time Deininger and Squire 1998. Rapid growth in a number of East Asian

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countries has been linked not only to a rapid decline in absolute poverty, especially in rural areas,
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but also to an increase in the distribution of income. Except in most countries where economic
growth has been followed by increasing inequality (such as China and Thailand since the 1990s),
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total increase in command of basic goods and services across the whole spectrum of income
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distribution has more than offset the negative effects of inequality on the poor.
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Currently, several steps have been taken to mitigate or reduce poverty. Next, the Act on
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Agrarian Reforms. We supposedly have the Comprehensive Agrarian Reform Initiative, which
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seeks to redistribute land to farmers who do not own farmland. It is also ineffectual, amid those
services. Millions of dollars were spent on industrialization back in the Marcos era. Today,
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farmland is being transformed to subdivisions by the Villars, specifically Camella Homes and
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Vista Land. Farmers are unemployed and left without work as a result. Continuous farmland
conversion reduces our food production, especially rice. We still have the Rice Tariffication Act
today, which lifts the restrictions on rice imports. Again, our farmers are left in the dumps and
this anti-Filipino rule favors foreign rice growers.

"The Republic Act of 10963 or the Tax Reform for Acceleration and Inclusion. That is
also known as the Train Rule, is one of the measures that is said to be the greatest Christmas and
New Year's gift to Filipinos and The cut of income tax, which is claimed to be good for less

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 fortunate Filipinos, is one of its provisions. In retaliation for this, an excise tax on petroleum
goods with an annual rise was placed . Sweetened drinks are often subject to sales tax, which
promotes the purchase of healthier beverages.

While income tax cuts sound wonderful, what will happen to those who do not earn a
normal income, particularly the poorest in urban areas? Now that the price of petrol has risen
because of the excise tax, which is based on the basic economy, the prices of all goods will
undoubtedly increase. What's going to happen to Filipinos who don't have to pay a lot?

Finally, In the Philippines, federalism is being impelled. It is said to assist in

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raised in their country under federalism. Although in the National Capital Area it is not much of

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an problem, what will happen to the poorest regions of the country? Owing to a more regional

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regulation of taxation, there is also a potential for wealthier areas to see more rampant

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corruption.
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Generally speaking, decades of corruption, weak agrarian reform, industrialization,
poorly organized taxes, and inappropriate constitutional amendments are all responsible for the
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slowdown of our zero growth. Our tax system does not benefit the poor, but is highly beneficial
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to the wealthy, making life much richer for the poor and the rich. The Train Rule is not the
"perfect gift for Filipinos for Christmas and New Year," but the worst nightmare for all Filipinos
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and is anti-poor. The anti-farmers are the Rice Tariffication Act and the law on agrarian reform.
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The federalism proposed is also anti-poor and would not support prosperity in the poorest areas..
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In the final years of the Third Republic of the Philippines, in particular during the first term of
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President Ferdinand Marcos, the country witnessed continued growth and rapid industrialization.
Numerous infrastructures have been developed, some of which are the North Diversion Road and
it is now the North Luzon Expressway and the Pan Philippine Highway also known as the
Maharlika Highway. At the end of Marcos' in his first term, the Philippines began to experience
a financial crisis due to questionable 50 million dollars development programs. Marcos also
invested money on his second term project. While he won a second term, the plunging economy
triggered that was called "First Quarter Storm." Marcos continued to take international loans for

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 industrialization and development projects. By the conclusion of the Martial Law, the national
debt soared from 4.1 billion dollars in 1975 to 24.4 billion dollars. Not long after, the nation
experienced a downturn in its economy. The value of the peso has fallen against the US dollar.
By the time Cory Aquino assumed the presidency, the nation and the Filipinos had been left
behind due to incompetence of the former government.

Total Words: 1621

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