Last Thursday, the NSCB or the National Statistical and Coordination Board releases the data of the state of the Philippine economy during the previous quarter of this year. The Philippines’ GDP expanded 6.4% in the first quarter of 2012 over the same quarter of 2011. With this rate of growth in previous quarter, the Philippines has the second fastest growth in Asia after China.
For many years, the Philippine economy is a laggard compared with fast-growing East and Southeast Asian countries like China, Vietnam, Thailand, Singapore, Malaysia, and Indonesia because of economic and political volatility. It is just only in the recent years that the Philippines is somewhat catching-up the economic growth of our neighboring countries as some of them are becoming economically mature or developed which tends to slow the rate of economic growth compared to us who just starting to catching-up.
The economic rate of growth of the Philippines tends to be erratic even now as the government tends to intervene in the economic cycle especially during the election year that occurs every three years like spending the government’s budget for infrastructure projects that sometimes unnecessary for a certain areas, social spending to feed the urban low-class families in order to lure votes by the politicians for elections, and protecting some business interest from foreign competition at the expense of the welfare of the consumers.
That government-driven growth being postulated by the government for many years influenced by the ideas of John Maynard Keynes, a British economist who proposes that the government should stimulate the economy by increasing the money supply to circulate in the economy at the expense of long-term pain of excess inflation that would slap the consumers and the private enterprises needs to lessen and the government should make a favorable environment for a private enterprise and consumers to prosper and lead the economy in a long-run like dismantling monopolies, lowering tax rates, curbing red tape, scrapping the constitutional restrictions against foreign participation in the economy, flexible labor laws, market-based wage adjustments, and free flow of capital.
By restructuring the economic fundamentals of our country, the real prosperity would be feel by the majority eventually and the government needs to reform NOW not LATER.