Terrence E.

Ferriol
GED103-A76

Instructions: You are to write a research paper of 1500-3000 words about the topic. 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.
 “Think Piece”
Indeed, the decline in its economic status earned it the moniker "Sick Man of Asia," denoting
extensive political corruption, imbalanced development, and widespread poverty. Subsequently, on
August 21, 1983, Ninoy Aquino was killed on the runway of Manila International Airport, an event that
exacerbated the country's economic downturn. Despite its abundance, the Philippines faces a severe
poverty problem. The historical methods by which the government has ruled the country are to blame.
The government's unquenchable need for power and control characterizes this problem, which stretches
back to the Spanish Era and continues today.

The country's decline started when they lost authority over citizens' properties, oppressed
landowners, and cashed in on the private sector. The Spanish established colonialism throughout the
Philippines, governing the Filipino people's possessions by creating a concept of limited racial and elitist
meaning. Some Filipinos rose to the status of Elite due to the Spaniards' gift of their wealth to them. When
politics changed, the elites of the Philippines ruled in their positions. The People Power Revolution
successfully removed the Marcos dictatorship from power on February 25, 1986. Interestingly, two
members of the Omega Five, who were once part of the rebels, led the efforts to oust the Marcos family
from Malacañang. Subsequently, investigations by the government revealed that the declaration of martial
law had enabled the Marcoses to conceal undisclosed riches, later deemed to be of illicit origins by the
courts (Diaz, 2022). To address deficits, the Marcos administration was compelled to reduce government
expenditures, leading to the bankruptcy of the Central Bank. Consequently, the Central Bank was dissolved
and replaced with the Bangko Sentral ng Pilipinas. The burden of the Central Bank's debts continues to be
shouldered by taxpayers. Following Marcos' ouster, the country experienced economic recovery, and
during Benigno Aquino III's presidency in 2013, the World Bank recognized the Philippines as Asia's Rising
Tiger.

It is sad to hear that the Philippines is still “The sick man of Asia”. The Philippines has witnessed a
significant resurgence of democracy. It's as if the Filipinos are trying to compensate for the years, they
were denied the right to vote, as they have been continuously examining the outcomes of one election
and getting ready for another since early last year. Alongside this, election-related conflicts and
controversies have also made a comeback. This is due to poor management or work of a government way
back the colonialism. Implementing agrarian reform in the Philippines poses significant challenges. Despite
its crucial significance, there is considerable skepticism surrounding it. The reform is anticipated to tackle
the centuries-old issue of landlessness, which has been the root cause of social unrest and uprisings,
within a timeframe of 20 years. Additionally, it is expected to contribute to two vital national objectives:
ensuring food security and alleviating poverty (Villamora, 2003). Following the ousting of Marcos,
President Aquino's administration introduced Republic Act No. 6657, known as the Comprehensive
Agrarian Reform Law (CARL). The passage of CARL sparked controversy after a protest rally in January 1987,
where around 10,000 militant farmers demanded immediate land distribution, even if it required
confiscation and expropriation. The rally ended tragically with a massacre, as government troops opened
fire, resulting in 17 fatalities and approximately 100 injuries. This incident prompted the prompt
submission of the agrarian reform bill to Congress, where it faced intense debate inside and outside
Congress halls. Civil society groups held almost daily mass demonstrations in response to the bill's
discussions. Nevertheless, the endeavor has garnered much less public backing than initially anticipated
and faces many challenges. These challenges include resistance from landlords, disapproval from civil
society, mistrust from the private sector, skepticism from legislators, limited financial and material
resources, and overall public indifference. In every administration, agrarian reform has been proclaimed a
vital program for fostering growth and development. However, it has consistently been allocated meager
resources by the government. The fund designated for land acquisition and distribution, a crucial indicator
of agrarian reform's success, has always needed to be increased. Additionally, a significant portion of the
funding for the support services component of the program relies on Overseas Development Assistance.
The prevailing skepticism surrounding agrarian reform likely stems from historical origins. In the Spanish
colonial era, most valuable lands ended up in the possession of the friars, obtained through both justifiable
and unethical methods. The oppression imposed by the friars played a significant role in igniting the
Philippine Revolution of 1896. Subsequently, when the United States took control of the Philippines in the
early 1900s, they acquired a substantial portion of the friar estates intending to distribute them to the
tenants. However, due to the high prices involved, the majority of these estates were eventually acquired
by American firms, entrepreneurs, and property owners instead.

The next issue that I am going to tackle is the Constitutional reforms and initiatives. Advocates of
federalism in the Philippines have maintained that amendments to the 1987 Constitution would
encompass more than just transitioning from a unitary state to a federal system. As the current
constitution specifies, the proposed revisions would also ease restrictions on foreign involvement in
utilities and essential services. Additionally, the amendments would introduce provisions aimed at curbing
the influence of political dynasties (Iseas, 2018). The proposed new constitution being examined by the
Philippine Congress mainly preserves the protectionist provisions from the 1987 Constitution, which
pertain to natural resources, public utilities, land, the professions, the media and advertising, and
educational institutions. Congress may pursue constitutional revision and potentially amend these articles
and clauses in the draft. The current version of the draft constitution needs to tackle the worries related
to the concentration of economic influence. If Congress decides to remove the anti-dynastic provision
from the draft, similar to what happened with the draft Bangsamoro Basic Law, implementing federalism
could potentially exacerbate the consolidation of political power within family dynasties. Having just one
out of three concerns addressed is not a favorable situation.

The last topic or concern that I am going to address is about the taxation in the Philippines and
how it connects to “The sick man of Asia”. In the region, the Philippine tax system currently maintains
some of the most elevated income tax rates. When compared to our major ASEAN counterparts, our
corporate income tax stands at the highest rate of 30%. This high rate is a deterrent to foreign investors
who prefer to conduct business in neighboring countries with lower tax burdens (Punongbayan, 2017).
Elevated income taxes might dissuade businesses from increasing production or employees from working
additional hours. Consequently, an effective tax system ensures that income tax rates remain moderate,
preventing them from being excessively high and impeding economic activity. The high-income tax rates
in the Philippine tax system compared to other major ASEAN countries could be a significant issue. Such
elevated tax rates may discourage foreign investors from choosing the Philippines as a destination for their
business ventures. Investors often seek countries with more competitive tax rates, as lower tax burdens
can positively impact their profits and overall business operations. The Philippine government may need
to consider reviewing and lowering its income tax rates to attract foreign investment and foster economic
growth. Doing so can create a more favorable environment for businesses, encourage job creation, and
stimulate economic activity in the country. Striking a balance between generating sufficient revenue for
public services and providing an attractive investment climate is crucial for the long-term economic
prosperity of the Philippines. Simplifying, making fairer, and enhancing the tax system's efficiency will lead
to generating additional and more sustainable revenues. These funds can then be utilized for significant
investments in our citizens and infrastructure, contributing to the realization of our vision for the
Philippines. Taxation is one of the problems here in the Philippines why it is still “The sick man of Asia”
seeing its effects to each Filipino will definitely give you an idea how hard it is to work in the country.
Philippines might be a beautiful country that contains a lot of beautiful islands, one thing that people
outside or in other country do not know about Philippines is the lack of good government and lack of
resources due to poor management of taxes and other government responsibilities.

In conclusion, the Philippine government system is not enough to discipline each and every Filipino
due to their lack of sense regarding the issues that have been around and problems that has occurred way
back during Spaniards Colonization. Back then, people have been controlled by our government telling
you what to do and how things should be done. Well, if you are going to ask me, I will be more on a careful
when it comes to making decisions that is related to running the country. These topics that I have said and
tackled are only few of those concerns that we have now. The “Agrarian reform” have been a problem
since before, taking lands everywhere by the government and other sectors are the main reasons why our
local farmers are asking for much higher wage due to that they are only renting or more like paying extra
in order to plant. Constitutional reforms and initiatives Constitutional reforms and initiatives carry
significant consequences, molding a nation's legal and political framework for an extended period.
Consequently, they undergo rigorous public examination and meticulous evaluation to ensure that the
proposed changes align with the country's values, aspirations, and long-term development objectives.
Lastly, taxation in the Philippines. It is really unfair to think that only rich people can have a right to enjoy
things knowing that most people are doing their best in order to have a good job in the country. But sadly,
the taxation system in the country is somehow broken due to malicious activities that makes the people
think that everything is fine because nobody is doing anything in order to fix it.

Word Count: 1,636 words

1. The Return of The ‘Sick Man Of Asia.’ (2022, May 10). The Filipino Chronicle.
https://thefilipinochronicle.com/2022/05/07/the-return-of-the-sick-man-of-
asia/#:~:text=In%20fact%2C%20such%20a%20decrease,of%20the%20Manila%20Intern
ational%20Airport.
2. Department of Finance. (n.d.). About tax reform | Comprehensive Tax Reform Program •
#TaxReformNow. https://taxreform.dof.gov.ph/about-tax-
reform/#:~:text=By%20making%20the%20tax%20system,our%20vision%20for%20the
%20Philippines.
3. Punongbayan, J. (2017, January 21). The problem with our tax system and how it affects
us. RAPPLER. https://www.rappler.com/voices/thought-leaders/159027-philippine-tax-
system-problems-effects-
filipinos/#:~:text=Unfortunately%2C%20the%20Philippine%20tax%20system,need%20t
o%20be%20resolved%20soon.
4. Admin. (2020, February 24). “Constitutional Reform in the Philippines: Two Worrying Omens”, by
Malcolm Cook - ISEAS-Yusof Ishak Institute. ISEAS-Yusof Ishak Institute.
https://www.iseas.edu.sg/media/commentaries/constitutional-reform-in-the-philippines-two-
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5. Impact of access to land on food security and poverty: the case of Philippine agrarian reform[11]
- E.A. Guardian. (n.d.).
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form%20Program,-
The%20CARL%20set&text=The%20CARP%20covered%20all%20public,also%20to%20other%20la
ndless%20poor.