The socio-economic and development of the Philippines.
The process of economic development could be a profoundly complex phenomenon and is impacted by various factors such as financial, political, social, and cultural factors. It is believed by some economists that capital is the only prerequisite basis for development and therefore the most prominent emphasis is laid on a capital arrangement to bring almost economic development. But this is wrong. As Professor Nurkse appropriately comments, “Economic development has much to do with human endowments, social attitudes, political conditions, and historical accidents. Capital may be essential but it is not an adequate condition of progress.
How is China’s socio economic doing today?
“China to be the world’s largest economy by 2032”
China is the largest economy due to a number of reasons; Population as an advantage. The size of an economy is calculated based on its output and production. China has a massive population of 1.3 billion people (that is more than double of all of EU! and a little more than double of the population of the USA). Nearly every adult in China works, and working hard comes naturally to Chinese people. The government considers it its responsibility to ensure that people have jobs and work to do — most economic policies of the country follow this rationale. Worldwide demand for cheaper goods. Coupled with the fact that the PRC government uses the population to an advantage of the country is the fact that there is a worldwide demand for cheaper goods. China manufactures most of the cell phones and computers in the world (both of which were neither invented nor developed in this continent!). Worldwide there is a never-ending demand for the same. Consumers across the world (China included) want these at lower costs, and China is able to make them at low costs — many a time without compromising on quality. Low dependency on imports. China was among the largest importers of chemicals (raw material for many an industry including plastics), mostly from refineries in Africa and Europe. Since 2014, China has turned into a net exporter of chemicals, and today is among the largest producers of many chemicals and raw materials used worldwide for production. They have a large domestic market. China itself has a massive domestic market (similar to India), hence Chinese companies do not always have to look for other countries to sell their products. This protects it to an extent from world shocks. Lastly, A governance system that works for the country.
How is the United States’ socio economic doing today?
Fairly poorly when compared to history. Here are some key metrics that explain the situation. Shrinking GDP Per Capita Growth. GDP growth has been slowing since the 1970s & it’s worse when you account for population changes (mostly via immigration). GDP growth per person has been 0.147% since 2012 — it was 0.34% during the Great Depression. Rising Income Inequality. America’s Gini Coefficient has been growing since 1973 and is now roughly where it was during the 1920s (right before the Great Depression). The Middle Class Is Shrinking. Spending on “needs” (food, clothing, shelter) shrunk, while spending on “wants” increased as a proportion of the American household’s income between 1934 and 1985. This meant real economic growth took place.
How is the Philippines’ socio economic doing today?
The Philippines has a mixed economy. The hindrances to the Philippines’ Economic growth are corruption, poor education, poor internet connection, poor infrastructure — and even poor people.
All these factors are huge barriers to progress, and it will take a long time and an even longer journey before such barriers become hindrances no longer. According to the graph Philippines’ economy state is far behind China and the United States. Although that’s the case if we look at the news today, we can see that the economy is growing remarkably. This growth is one of the fastest in the Asia-Pacific region.
Economic Development in the Philippines is fueled by several sectors most outstandingly BPO. The outsourcing sector proceeds to develop due to Filipino’s command over youthful talent, and their desire to form the most of their capacities. Filipinos as a community are inviting and cherishing individuals and its uncommon to discover somebody who is unwilling to hold a conversation.
Agricultural products constitute most of the exports. There is hardly any product where the Philippines is the key provider to the ASEAN region let alone to the wider world.
But since the Philippines hasn’t developed as much as it’s neighbors, due to rampant corruption and wise individuals leaving the country to work for other nations, there’s foreseeable good growth within a long time to come.
References:
Silver, C. (2020, August 26). The Top 20 Economies in the World. Retrieved September 18, 2020, from https://www.investopedia.com/insights/worlds-top-economies/
Amadeo, K. (2020, September 17). What Exactly Is the US Economy? Retrieved September 18, 2020, from https://www.thebalance.com/us-economy-facts-4067797
Jazeera, A. (2020, August 06). Philippine economy posts its biggest-ever quarterly plunge. Retrieved September 18, 2020, from https://www.aljazeera.com/ajimpact/philippine-economy-posts-biggest-quarterly-plunge-200806051633703.html