FREE ESSAY ON PHILIPPINES

PHILIPPINES

The Economy of the Philippines
Per Capita Income: The per capita income of a certain country is the GDP of that country
divided by the total population. In the Philippines the per capita income is
approximately $700. When compared to the per capita income of the United States, which is
about $22,000, it is easy to tell that the economy of the Philippines is very, very
poor.
GDP: Growth: 5.7%
GDP= 82.8 billion dollars
% FROM AGRICULTURE: 17.1 (important because you would think that since they mainly
produce agricultural products that its percentage would be the highest)
% FROM MANUFACTURING: 18.9
% FROM SERVICES: 39.2 (also important because you wouldn't think that this one would be
the highest)
% FROM GOVERNMENT: 7.9
Exports: Traditionally, the Philippines have been primarily an exporter of raw materials
and an importer of manufactured goods. This is the role that many "third world" countries
play in the global economy. Electronic and automotive parts, along with garments are the
leading merchandise exports of the country. However, the Philippines also rely heavily on
import inputs. The country also exports bananas, coconuts, copper, gold, lumber,
pineapples and sugar.
Imports: The Philippines mostly imports manufactured goods. Certain items remain subject
to import regulations such as narcotic drugs, firearms, ammunition, etc. Their chief
imports include chemicals, machinery, and petroleum.
Trading Partners: The Philippines, like any other country, cannot produce everything that
it needs. Instead, it relies heavily on foreign trade. Specialization in production
allows for each nation to produce what it produces best, and to trade for products, which
it cannot produce as well. This means that if you are better at one thing and I am better
at another, rather than each of us trying to do both, we would each do what we are best
at. Then, we would exchange what we had produced and both be better off than had we tried
making both things on our own. It trades mainly with Japan and the United States. The
Philippines maintain high tariff rates and protective barriers on sensitive agricultural
products.
Major Economic Activities: The Philippines has embarked on economic reforms and market
liberalization measures in the past two years. As a result of this the Philippines has
started to show signs of recovery since the era of Ferdinand Marcos. Even though the
unemployment rate is very high, it has dropped from 10.5% to 9.8%, a considerable move
for a two-year period. In the Philippines, the minimum age for employment is 15. Their
constitution prohibits forced labor. All workers have the right to join unions. The
prices are generally determined by free market forces, with only a few exceptions.
Conclusion: Although the Philippines economy is weak, and the unemployment rate is high,
the Philippines are showing some signs of improvement. It has recently become a more open
economy, allowing for more free trade and free market forces. As this process continues,
trade with the Philippines will increase, and eventually, a more capitalistic and a
successful economy will emerge.