Philippine’s Economy
A little over half a century ago, the Philippines appeared ideally positioned to develop rapidly as the world recovered from the devastation of World War II. The country had high levels of education and English literacy thanks to Uncle Sam's colonial influence, decent savings rates, and an export-oriented agricultural sector that generated more than sufficient foreign exchange. The industrial sector was growing rapidly and the country had one of the highest per capita incomes in Southeast Asia. There was much to look forward to on the economic and business front.
So what happened? Well... a lot of things. The 1950's saw the spread of the power of the traditional oligarchs from their original economic base on the haciendas into all sectors of the Philippines economy for historical background and discussion). The 1960's and 1970's up to 1986 were dominated by martial law and the veritable looting of the Philippine economy by Ferdinand Marcos and his buddies. Throughout these long and trying decades, the Philippines followed a path of dependent development that failed to build domestic capital or pave the way for healthy and balanced development.
The Aquino years were basically a transition period, and the former housewife did her best to deal with the complex and challenging economic mess she had inherited. Through no fault of her own, she for the most part failed miserably. Major progress finally began to be made under the strategic leadership of General Fidel V. Ramos, who basically threw the doors open to foreign investment in an effort to (finally) integrate the Philippines into the global economy. Foreign investment, only $44 million in 1992, his first year in office, grew rapidly and peaked at $2.01 billion in 1997.
Ramos' basic pol ...