Corruption: Country

Topics: Economy, Economics, Political corruption Pages: 5 (1910 words) Published: February 28, 2013
The Philippines was one of the richest countries in Asia after the recovery from the World War II. However, the growth of the economy slowed down during Marcos’ reign due to economic mismanagement and political volatility. Because of the political instability during the time of former-president Corazon Aquino, the economic activities in the Philippines decreased. A broad range of reforms designed to boost and attract foreign investment during the 1990s results into a elevation in the country’s economy for a short time. During the Asian financial crisis in 1997, the economy of the Philippines once again declined. According to Sicat (2012), Philippines was recently referred as the “comeback economy” in Asia. After being one of the poorest countries in the world, the Philippines is now slowly raising its economy back to life. During the course of the recent years, Philippine economy grew at an average rate of 4.5 percent per year. Also, the fiscal balance was kept under control. Today under the Aquino’s administration, which is on its second year in power, kept a tighter fiscal framework compared to the previous administration. This will ensure that the money of the Philippines is not going to the pockets of the corrupt people who are in power. The major economic sectors of the Philippines are agriculture and forestry, industry, and the service. These sectors determine the economic status of the country. Status of the different economic sector of the country differs from each other. 40 percent of the total land area of the Philippines is comprised by arable farmland. The Philippines is rich in agricultural potential but inadequate infrastructure, lack of financing, and government policies have limited the productivity of grains. Philippine farm produce grains and crops for domestic purposes and cash crops for export. About one-third of the work force is/are employed in the agricultural sector but contributes less than a fifth of the Gross Domestic Product of the country or the GDP. Agriculture generally suffers from low productivity, low economies scale, and inadequate infrastructure support. Although it suffers from these different problems, agriculture outputs grew by 4.5 percent during the first nine months of 2011. Industrial production is centered on processing and producing the following: food, beverages, plastic products, textiles and textile products, clothing, footwear, paper and paper products, printing and publishing, furniture, appliances and electronics. Production of cement, glass and glass products, mineral products, industrial chemicals, iron and steel, metal products, transport equipment, machinery, and refined petroleum products are dominated by the heavier industries. Newer industries, particularly production of semi conductors and other intermediate goods for incorporation into consumer electronics are important components of the Philippine exports and are located in special processing zones. In urban areas, especially in the metropolitan Manila region, industrial sectors are concentrated and have weak relation to the rural economy. Toyota, the biggest seller of vehicles in the country, together with other major car manufacturers such as Mercedes-Benz, BMW, Volvo, Ford, Mitsubishi and Nissan find Philippines as their home. Electronics also is playing a huge role in the Philippine industry. Intel and Texas Instruments, both a major electronics manufacturers, have established their operations in the country. Electronics in the Philippines produce 10 percent of the world’s supply for semiconductor and 50 percent for the world’s production of HD TVs. Because of these improvements, industry sector holds the second largest contribution to the Philippines economy. Service sector is an important part of the economy. This sector provides services, not an actual product that is tangible. Activities that belong to the service sectors include banks, hotels, education, real estate, health,...
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