The Philippines' Economy
Lessons from the Philippines
What the Philippines teaches about crony capitalism, services-led growth, migration and governance, and a recap of the module.
The Philippines offers important lessons.
Lessons
- Crony capitalism can waste decades of potential.
- Land reform needs speed and support.
- Services and migration can drive growth but may not create enough domestic jobs.
- Competition matters in telecoms and utilities.
- Infrastructure execution is as important as spending.
- Disaster preparedness saves lives.
Module recap
- The Philippines has services- and consumption-led growth.
- Marcos-era cronyism led to crisis and People Power.
- Land reform stalled for decades.
- The state manages overseas worker migration.
- Rice tariffs replaced quotas in 2019.
- Political dynasties dominate politics.
- Family conglomerates dominate business.
- Typhoons are frequent; Haiyan was devastating.
- Build, Build, Build raised infrastructure spending.
- 4Ps is the main cash transfer.
- The South China Sea affects fishing and gas.
The missed decades
In the 1950s, the Philippines was richer than South Korea. By 2000, South Korea was many times richer, partly due to differences in governance and policy.
Thinking starting richer guarantees staying ahead
The Philippines fell behind neighbours it once led.
Key takeaways
- Governance and competition shape long-run growth.
- Migration brings money but needs domestic jobs too.
- Infrastructure execution matters.
- Preparedness reduces disaster costs.
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