It was announced on October 1983 that the Philippines was unable to meet debt-service obligations on its foreign-currency debt of US$24.4 billion and was asking for a ninety-day moratorium on its payments. Subsequent requests were made for moratorium extensions.
The action was the climax of an increasingly difficult balance of payments situation.
Between 1973 and 1982, the country's indebtedness increased an average of 27% per year.
Although government-to-government loans and loans from multilateral institutions such as the World Bank and Asian Development Bank were granted at lower-than-market rates of interest, the debt-service charges on those and commercial loans continued to mount.
In 1982 payments were US$3.5 billion, approximately the level of foreign borrowing that year and greater than the country's total debt in 1970. The next year, 1983, interest payments exceeded the net inflow of capital by about US$1.85 billion.
In combination with the downturn in the world economy, increasing interest rates, a domestic financial scandal that occurred when a businessman fled the country with debts estimated at P700 million. And this is on the 80's... and the debt still growing and multiplying with another new debts.
Let's look at National Summary Data
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1. The economy is the 13th largest economy in Asia and the 33rd largest economy in the world by purchasing power parity according to the International Monetary Fund in 2010.
2. 4th largest economy in South East Asia. A newly industrialized emerging market economy, it posted a real GDP growth rate of 5.3% in 2006 and 7.1% in 2007.
3. The Philippine economy grew by 7.6% in 2010, which several reports described as the fastest growth in 34 years.
4. Mining also has great potential in the Philippines, which possesses significant reserves of chromite, nickel, and copper. As of 2008 it was reported to be ranked as one of the five most mineral-rich countries in the world by the Fraser Institute, with the Philippine Government estimating mineral wealth at $1 trillion.
5. Recent natural gas finds off the islands of Palawan add to the country's geothermal, hydro, coal, and oil exploration energy reserves.
Macro Economic Trend
| Year | GDPin millions of PHP (current prices) | PHP:US$ | Implied PPP PHP:US$ (current) | GDP per capita as % of US (current prices) |
|---|---|---|---|---|
| 1980 | 243,749 | 7.51 | 4.044 | 5.48 |
| 1985 | 571,883 | 18.60 | 7.902 | 3.18 |
| 1990 | 1,074,510 | 24.32 | 9.975 | 3.1 |
| 1995 | 1,905,951 | 25.23 | 14.076 | 3.97 |
| 2000 | 3,580,714 | 44.19 | 18.789 | 2.8 |
| 2005 | 5,677,750 | 55.09 | 21.755 | 2.72 |
| 2006 | 6,271,157 | 51.31 | 22.158 | 3.01 |
| 2007 | 6,892,721 | 46.01 | 22.172 | 3.48 |
| 2008 | 7,720,903 | 44.32 | 23.346 | 3.91 |
| 2009 | 8,026,143 | 47.64 | 23.620 | 3.76 |
| 2010 | 9,003,480 | 45.11 | 24.23 | 4.24 |
But what the fuzz owh.. pardon me with my language.. What the fuck does this data meant for? And why the fuck does WikiPedia have the same data with NSCB data?
The main issue I would like a elaborate is more towards Philippine diaspora. Why people left their country, why poor are getting poor? why the rich getting more corrupt? why the life is getting worst? why the woman became prostitute in order to obtain a bowl of rice? Why?
I've been to Makati on a business trip. In my whole life and travel experiences. I would dare to say Manila is second to Rio De Jeneiro in term of crime, drugs and prostitution. The number of population in capital city are far greater and the density is greater pack.
Robbery and mugging are everywhere, rape and sexual molestation is common, people carrying gun like carrying wallet and to kill someone is easy. Why does this is so much widely practice and what does it related to economy?
Almost all Philippines are migrating or planned for a migration. People are fled from their own country. I've interviewed many of them and such excuses are given
1. Crime and safety
2. No job for them
3. Salary is lesser
4. Cost of living is high
5. Corruption is dominating the system
6. Philippine is regarded as a best place to die not to live.
According to the data from Bangko Sentral Ng Pilipinas, it is estimated around Around 8.2 million to 11 million overseas Filipinos are the estimated count worldwide or about 11% of the total population of the Philippines.
According to data procured from wikipedia, the remittances sent by migrant s to the Philippines contribute to the country's economy, with a value of more than US$10 billion in 2005. This makes the country the fourth largest recipient of remittances with India, China, and Mexico in the top list. Overseas Philippines remittances represent 13.5% of the country's GDP, the largest in proportion to the domestic economy among the four countries.
Exodus happened when population felt the suffocation within their country.
So what can Philippine can offer to Filipino?
I always conventionally believe that an economy can be build by utilizing and maximizing the available commodity.
The Philippines is a leading exporter of abaca, bananas, carrageenan, copra (and other coconut derived products), and pineapples. The country is rich with mineral and geothermal energy resources. In 2003, it produced 1931 MW of electricity from geothermal sources (27% of total electricity production), second only to the United States and a recent discovery of natural gas reserves in the Malampaya oil fields off the island of Palawan is already being used to generate electricity in three gas-powered plants. Philippine gold, nickel, copper and chromite deposits are among the largest in the world. Other important minerals include silver, coal, gypsum, and sulfur. Significant deposits of clay, limestone, marble, silica, and phosphate exist. About 60% of total mining production are accounted for by non-metallic minerals, which contributed substantially to the industry's steady output growth between 1993 and 1998, with the value of production growing 58%. In 1999, however, mineral production declined 16% to $793 million. Mineral exports have generally slowed since 1996. Led by copper cathodes, Philippine mineral exports amounted to $650 million in 2000, barely up from 1999 levels. Low metal prices, high production costs, lack of investment in infrastructure, and a challenge to the new mining law have contributed to the mining industry's overall decline.
The industry rebounded starting in late 2004 when the Supreme Court upheld the constitutionality of an important law permitting foreign ownership of Philippines mining companies. However, the DENR has yet to approve the revised Department Administrative Order (DAO) that will provide the Implementing Rules and Regulations of the Financial and Technical Assistance Agreement (FTAA), the specific part of the 1994 Mining Act that allows 100% foreign ownership of Philippines mines
To be Continue Part 2
