Econ-314 Presentation Peilin Cao Instructor: Christo Tarazi Country of Choice: Philippines (Rank 116) Country NHDI Rank Category China 90 High Human Development Turkmenistan 112 Medium Human Development Indonesia 113 Medium Human Development Palestine, State of 114 Medium Human Development Vietnam 115 Medium Human Development Philippines 116 Medium Human Development El Salvador 117 Medium Human Development Bolivia 118 Medium Human Development South Africa 119 Medium Human Development Kyrgyzstan 120 Medium Human Development Sudan 165 Low Human Development Key Characteristics of the Philippines ▪ The population of the country is roughly 106 million as of 2018 ▪ The Philippines population is equivalent to 1.4% of the total world population ▪ 44.4 % of the population is urban (47,278,672 people in 2018) ▪ The economy of the country is the world’s 34th largest economy by nominal GDP and it is the 13th largest in Asia ▪ The Philippines is considered as a newly industrialized country, which has an economy transitioning from one based on agriculture to one based more on services and manufacturing Philippine Economy ▪ The Philippine GDP as of 2017 by Purchasing power parity is estimated to be at $986.98 billion ▪ The GDP of this country is ranked 29th highest in the world ▪ This country is considered to be newly industrialized ▪ The GDP growth is at 6.5% annually which is just second after China ▪ By the year 2050, the country is estimated to be the 16th biggest in the world and will be the 5th largest in Asia Absolute Poverty in the Philippines ▪ In 2014, more than one-quarter of the population fell below the poverty line ▪ Its goal is to eradicate poverty from a level of 33.1% in 1991 to 16.6% by 2015 ▪ Around 90% of Southeast Asia’s poor live in the Philippines and in Indonesia ▪ Around 36 million in this region live below the international poverty line of US$1.90 per day ▪ The government planned to eradicate poverty as stated in the Philippines Development Plan 2011 – 2016 (PDP). For those six years are an annual economic growth of 7 – 8% and the achievement of the Millennium Development Goals (MDG). Under this, the Philippines committed itself to halving poverty level of 33.1% to 16.6%. Education in the Philippines ▪ Elementary school covers the first six years of compulsory education (grades 1–6) informally divided into 3 years of primary level and 3 years of intermediate level ▪ Secondary education consists of four levels largely based on the American schooling system. DepEd (Department of Education) specifies a compulsory curriculum for all secondary schools, public and private ▪ Colleges typically offer 1 or more specialized programs while universities must offer at least 8 different undergraduate degree programs in a wide array of subjects and at least 2 graduate programs. ▪ From the data concerning 6 to 24-year old from the lowest 30% who had not attended school during the year 2010 to 2011, the two highest reasons for not attending were "lack of personal interest" at 28.9% and "high cost of education" at 26.8% ▪ There is a great contrast between the achievement of tertiary education by family heads belonging to the lowest 30% and the highest 70% Health System in the Philippines ▪ Health Care in the Philippines varies with private, public and barangay health centers (many in rural municipalities). Most of the national burden of health care is taken up by private health providers ▪ In 2016, a total of 1,731,289 live births was registered which is equivalent to a crude birth rate (CBR) of 16.8 or about 17 births per thousand population ▪ In 2016, an average of 1,591 persons died daily. This translates to 66 deaths per hour or one (1) per minute ▪ These numbers are just median compared to the neighbor Southeast Asian countries ▪ Every day, 38 Filipinos die from tuberculosis (TB), a highly contagious but preventable disease. According to the 2016 Global Tuberculosis Report, the Philippines ranked eighth among the 30 countries with the largest number of TB cases in the world. State of Inequality in the Philippines ▪ In a study, Brookings Institution’s Laurence Chandy and Brina Seidel created alternative GINI coefficients for 134 countries, including the Philippines, and saw an average of a 9-percentage-point increase in inequality worldwide ▪ In the Philippines the country’s Gini coefficient—a measure of inequality— shot up to as high as 0.6, or 60 percent, from the current estimate of just over 0.4, or 40 percent, when the researchers assigned it alternative GINI ▪ It has similar GINI coefficients as its neighboring countries ▪ Based on the report's wealth estimates, financial assets owned by each adult in the country receded to $3,746 in mid-2017 from $3,971 last year. On the contrary, non-financial wealth per adult climbed to $6,485 from $6,354 State of the environment in the Philippines ▪ According to WHO,the safe level for PM2.5is10 micrograms per cubic meter (μg/m3) of air in a year. In Manila, the annual average of these pollutants is at 17 μg/m3, 70 percent more than the recommended safe level ▪ Globally, over six million deaths are linked to indoor and outdoor pollution due to non-communicable diseases such as heart disease, stroke, lung cancer, and chronic respiratory diseases every year. In the Philippines, about 1 in 4 deaths re attributed to air pollution ▪ Due to water pollution in the Philippines, the country is likely to face a shortage of water for sanitation, drinking, agriculture and industrial purposes in the next ten years ▪ Water conservation efforts in the Philippines by many local and international companies have protected the water supplies for future use. Coca-Cola has pledged nearly $1.4 million for a five-year project with the World Wildlife Fund to protect the capital’s drinking water source, the Ipo Watershed Gender Inequality in the Philippines ▪ There were approximately 38.5 million employed persons in the country in October 2013. Of the total employed, 57.6 percent or 22.2 million were wage and salary workers. Of this number, 8.3 million or 37.5 percent were women while 13.9 million or 62.5 percent were men ▪ The Philippines ranked ninth out of 142 countries in terms of gender equality, according to the recent World Economic Forum (WEF) Global Gender Gap Report 2014 ▪ When it comes to progress in closing gender gaps across industry talent pools and occupations, the Philippines ranked first among ASEAN member-states with a score of 0.790, WEF said in its 2017 Global Gender Gap Report ▪ The Philippines Commission on Women (PCW) promotes gender equality through a comprehensive strategy of gender mainstreaming and good governance ▪ The Philippines (8 out of 135) is the only country from the region that has closed the educational attainment and health and survival gender gaps. The Philippines also performs in the top 10 globally in terms of the number of female legislators, senior officials and managers, as well as in its female literacy rate, enrolment in secondary education and years with female head of state Natural Resource Extraction in the Philippines ▪ The mining industry plays a very important role in the country’s economic development due to its rich natural resources ▪ The Philippines is the fifth most mineral-rich country in the world for gold, nickel, copper, and chromite. It is home to the largest copper-gold deposit in the world. The Mines and Geosciences Bureau has estimated that the country has an estimated $840 billion worth of untapped mineral wealth, as of 2012 ▪ Gold reserves at the beginning of 1988 was estimated at 101.6 million metric tons (MT), equivalent to about 240 MT of gold metal. Between 1988 and 1994, a total of 27.7 million MT of gold ore, containing about 36 MT of metal was extracted. On the average, this is equivalent to an annual extraction of 3.9 million MT of gold ore ▪ The reported stock of copper in ore form increased from 4,106 million MT in 1988 to 4,597 million MT in 1994 (Figure 2). However, copper reserves suffered a setback in 1990, when it declined by 7.2 percent from the previous year’s level before resuming its increasing trend ▪ From 1988 to 1990 -- on the average -- most of the chromite-producing companies experienced a relative boom, as reflected by the increases in their extraction. For the said period, the total chromite ore extraction grew at an annual average of 30.1 percent, despite the earthquake that jolted Luzon island in July 1990 Agriculture in the Philippines ▪ Agriculture grew by 1.47 percent in the first quarter of 2018. Contributing to the sector’s performance were the production gains in the crops, livestock and poultry subsectors ▪ Although many still think of the Philippines as an agricultural economy, strictly speaking, it is not. Agriculture, fishery and forestry directly account for just one-fifth (20 percent) of the economy’s aggregate domestic output (GDP) ▪ The Philippines is third to the last in terms of land area among its ASEAN neighbors ▪ A study by the Organization for Economic Co-operation and Development (OECD) suggested that agricultural growth contributes to a country's overall poverty reduction ▪ The rural poverty incidence is two to five times higher than in our comparable South East Asian neighbors—Vietnam has only 17 percent, Thailand and Indonesia 14 percent, and Malaysia 8 percent Manufacturing in the Philippines ▪ Manufacturing grew by 8.0 percent in the first quarter of 2018, higher than the previous year’s growth of 7.7 percent ▪ The Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI) reports that the Volume of Production Index (VoPI) for manufacturing grew by 9.3 percent in January 2017, slower than the 35.8 percent growth recorded in the same month last year ▪ The Philippines is too far in global ranking in terms of global competitiveness ▪ It is also significantly behind its neighbors like Thailand, Malaysia, Vietnam and Indonesia ▪ The manufacturing sector is the third top performing sector for the year led by new power and energy projects, infrastructure, real estate, transportation, and logistics Political Climate and History ▪ "Challenging" is how political analyst and former Dean of the Ateneo School of Government Tony Lavina described the Philippines' political landscape of the past year ▪ The Philippines - a Spanish colony for more than three centuries and named after a 16th century Spanish king - was taken over by the US in the early 20th century after a protracted rebellion against rule from Madrid ▪ Spanish and US influences remain strong, especially in terms of language, religion and government. Self-rule in 1935 was followed by full independence in 1946 under a US-style constitution ▪ Currently, the Philippines is being led by a very pragmatic and very brave leader who is allegedly responsible for the killing of many people under his War on Drugs ▪ The Philippines is undergoing massive taxation reform and aiming for very big infrastructure projects which will potentially improve its economy Most Interesting fact about the Country ▪ The country is unique in terms of its history since it was colonized many times ▪ Currently, the country is facing a major political issue with the current President in this country ▪ Despite of the current issues that the country is facing, it is still projected to be one of the top 5 biggest economies in Asia by 2050 ▪ It has a very low manufacturing rating among its Asian neighbors but has a competitive economy Conclusion ▪ The current economy of the Philippines may be linked to its history of being a colony of a couple of countries for hundreds of years ▪ Being an agricultural country and rich in natural resources, it is now shifting to a larger type of economy (manufacturing and service) but it still falls behind from its neighbors in terms of size of economy ▪ It currently has a very interesting political environment which may be a make or break for the country
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