The Phillipine Economy: A Conspectus of Recent Developments

Abstract

inequality and that our country is poor, this article analyzes the policy of President Corazon Aquino in relation to addressing our country’s maldistribution problem and economic growth.

Although much of what has transpired in recent years resulted into a modest economic growth rate of 6.7% in 1988, most of the components of this growth are conjunctural (fleeting) as opposed to a structural economic development (one that is lasting). An analysis on the sources of recent growth revealed that growth was induced by consumption expansion due mainly on pay increases and bonuses to government employees; increase in government spending which resulted to a higher debt stock and increase in deficit; increases in investment which is not necessarily translated into increases in productive capacity to meet any rising demand; and external factors. Our country generated economic development mostly from external factors such as loans, official assistance etc. this phenomenon created a lack of internal dynamism in our economy needed for us to recover faster. This paper also found out that employment and maldistribution of resources are not given substantial priority.

In the final analysis, the paper concludes that much is still needed to be done in order for us to have a growth that will help uplift our country’s standing in the international arena.