Modern Economy and Government

Economy:

The Philippines’ economic growth as a young nation has propelled it forward, further distinguishing it from other formerly colonial nations to become a rising capitalist economic force not only in Southeast Asia but in the world. Currently, the nation is coasting on a stable economy and a lower than ever deficit which are supported by its utilization of resources. These specifically include its hydrocarbon deposits in the Palawan province, where international companies have acknowledged serious potential for investment; a stable and profitable oil and gas industry expanding in Palawan; and additionally a high quality human capital to be enhanced with recently implemented education programs, as of 2010. In order to fortify its human business force, the nation also is home to “premier centers in Asia for research, training, and advocacy in corporate governance matters” (Reyes).

 The chief industry in the Philippines, however, continues to be tourism. The nation boasts 7107 islands that are mostly uninhabited, a rich biodiversity, scenic beaches, a majority language of English, and notable natural attractions such as the Chocolate Hills and the Mayon volcano to draw in global tourists, while another important aspect of the draw to the Philippines is the people. Forbes called the Philippines “the friendliest country in Asia” (Reyes), and Filipino culture is very visible in modern life including in its industrial cities like Manila.

Poverty remains the most critical issue facing the Philippines today. As the world’s 12^th most populous country with 97 million people, the government has implemented social programs to help “the poorest of the poor” while the population continues to climb. The World Bank stated that the percentage of the population living below the poverty line in the Philippines was just over 25% and had stayed generally the same for the past decade. Looking towards success, it has been able to save 30% of its import costs by using its own resources and workers for production in recent years. In 2010, its GDP had increased by 7.6%, the highest in more than 30 years, and the nation has reported a record high of $70 billion in foreign exchange reserves in 2010, allowing for the maintenance of strength in the currency (Reyes). These factors have allowed the Philippines to outperform its regional neighbors economically, and served as the basis for further growth as the nation becomes the ‘Fifth Asian Tiger’ and likely goes beyond.

                                                                                       Government:

Malacañang Palace, residence and offices of the President
of the Philippines

The Philippine National Government today heads a democratic republic with characteristics similar to that of its former owner, the United States. The similarity is a result of 1916’s Jones Law which established a Philippine government modeled after that of its owner. As this would indicate, a president is in charge of an executive branch, a legislative branch includes a Senate and a House of Representatives, and a Supreme Court comprises a judicial branch. The branches cooperate to form a functioning ruling body that acts in the best interest of the citizens. Additionally, multiple political parties compete in elections for representation. Though it appears to work much like a standard democratic republic, the Philippine government differs from those typically existing in the West in several ways. Due to its Muslim minority, the judicial branch contains Sharia courts as well as metropolitan and municipal trial courts; towns and villages are called barangays in the Philippines and represent the lowest division of government; and finally, there exists an independent office of the Ombudsman which oversees the legality and potential corruption in the actions of all three branches.

Though the Philippines remains to be a nation racked with poverty, its growing economy has brought its government into involvement in the World Bank, the World Trade Organization, the International Monetary Fund, and the Asian Development Bank (Reyes). These memberships work for the nation in terms of government by supporting its value as an Asian player, which will in turn uplift its merit in the fields of influence and trade.

The Philippines’ democracy has functioned successfully and peacefully since the nation’s liberation in 1946. As for the military, the Armed Forces of the Philippines was founded under president Manuel Quezon of the Commonwealth who appointed United States General Douglas MacArthur as its first commanding officer. The AFP fought alongside the United Nations in the Korean War and against Filipino communists several decades later. During the Cold War the Philippines had a strong military to show off and, also a result of its ties with the United States, has been a force in the fights against communism and terror in the late 20th century and 2000s. Th current president of the nation is Benigno Aquino III, a member of the Liberal Party. Providing a continuance of stability in the government combined with future economic growth, the Philippines has a bright future ahead of it as both a nation of Asia and of the world.