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THE PHILIPPINES

THE PHILIPPINES. Sabah Khadri & Omar Massouh. BACKGROUND. Island country located in Southeast Asia in the western Pacific ocean. 7107 islands categorized under three main geographic divisions :Luzon , Visayas and Mindanao.

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THE PHILIPPINES

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  1. THE PHILIPPINES Sabah Khadri & Omar Massouh

  2. BACKGROUND • Island country located in Southeast Asia in the western Pacific ocean. 7107 islands categorized under three main geographic divisions :Luzon , Visayas and Mindanao. Capital city is Manila ,most populous city is Quezon City. Population - approximately 99 million people ,seventh most populated country in Asia , and 12th most populated in the world. • Approximately 300,000 square kilometers (115,831 sq mi), considered the 64th largest country in the world. • Colonized by the Spanish in 1951 and was a part of the Spanish Empire for over 300 years . Recognized as an independent nation after World War II . • Main ethnicity is Malay. Other than this, there are Chinese, Spanish, mixtures of these and some minorities

  3. POLITICS & GOVERNANCE • Organized structure of presidential , representative and democratic republic wherein the president is both the head of the government and the state within a multi party system. • Bicameral congress of House of Representatives (lower house) and Senate (upper house) • President Benigno Aquino III Vice President JejomarBinay • Politics to a large extent is controlled by Strongman Politics and family ties that shape the country’s formal democracy.

  4. MAJOR CHALLENGES • Poverty • Corruption in all levels of the government • Economy

  5. POVERTY • Since 1971 , the urban poor have become a rising share of the total poor population , but still two thirds of the poor live in rural areas. The depth of poverty is nearly 2 ½ times larger in rural areas than in urban areas. • The urban poor are concentrated in Luzon , while the rural poor live predominantly in Mindanao and Visayas. • It is projected that 16.6 percent of 100 million people would still be living in poverty in 2016, and the poverty rate is forecast to be 18- 20 percent by 2016 .

  6. Causes of Poverty : • Low to moderate economic growth for the past 40 years; • Low growth elasticity of poverty reduction; • Weakness in employment generation and quality of jobs generated; • Failure to fully develop agricultural sector; • High inflation during crisis periods; • High levels of population growth; • Recurrent shocks and exposure to risks • Factors constraining poverty reduction : Great inequality across income brackets , regions and sectors Unmanaged population growth

  7. CORRUPTION • Ranked 141 out of the 163 countries in the transparency internationals (TI) 2008 corruption perceptions index. • Corruption found at different levels : 1. Political Corruption Electoral process plagued by corruption Corruption rampant among elected leaders 2 . Patronage & State corruption 3. Petty administrative /bureaucratic corruption

  8. SECTORS PRONE TO CORRUPTION • Political parties , civil servants and parliament legislation • Judiciary • Private sector and media • Police • Land services and registry • Education and health

  9. A LOOK AT DEVELOPMENT BEFORE GROWTH • Human Development Index (HDI): 0.654 (2012) • Much improvement from 1980 (0.561) • Multidimensional Poverty Index (MPI): 0.064 (2012) • Niger – 0.642 • Cambodia – 0.212 • Vietnam – 0.017 • Focus on 3 considerations • Health • Education • Standards of Living United Nations Development Programme

  10. AN EMERGING ECONOMY… • General annual GDP growth • Business process outsourcing (BPO) • Specifically, offshore outsourcing • Foreign Direct Investment (FDI) • Remittances from abroad • Rich in valuable natural resources • Chromite, nickel, copper, coal, and oil

  11. … WITH GREAT ACHIEVEMENTS… • Primarily export-orientated • Agricultural sector • Industrial sector • Manufacture and assembly of high-tech electronics for overseas corporations • Service sector • General GDP per Capita growth • Tendency to mislead • Significance of the Gini Coefficient • Distribution of income and consumption expenditure • 48.22 (2000) → 45.80 (2006) → 43.00 (2009)

  12. …BUT ONGOING PROBLEMS • Persistent high unemployment rates • Unprecedented increase from 6.5 to 7.5% (January 2014) • Labor force of 41.2 million: 3 million unemployed residents • Causes • Corruption • Employers’ preference for relatives of ruling families, wealthy businessmen, etc. • Favorability towards urban residents (63% of population – 2012) • High population growth rate • 2.7% (1980) → 2.1% (2000) → 1.89% (2013) • Insufficient amount of jobs • Work abroad: underemployed, low wages, unsatisfactory working conditions • Middle-income trap • Gradual slowness of economic growth • Education Index – 0.679 (2012) • Lack of sufficient education for increased human capital • Lack of domestic entrepreneurial skill → Continued dependence of FDI

  13. THE MISERIES OF THE MIGRANT DOMESTIC WORKER • Home-care workers, maids, and house-keepers • Defined as having “moved to another country or region to better their material or social conditions and improve the prospect for themselves or their family,” International Labor Organization (ILO) • Constant unfair and unjust conditions by employers • Long-working hours (beyond contract-bound limits) • Low pay (below contract-set amount) • Physical & Sexual Violence • Escape employment • Suicide • Initiatives taking place • Philippine Department of Labor and Employment • ILO

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