Philippines is one of the 3rd world contries in Asia. And still, belongs to the 3rd world country. Philippines is a developing country like other neighboring countries, Thailand, Malaysia and Indonesia. But in comparison to other countries surrounding us, we are not be very famous for our economic growth. Since our status in the previous years shows ‘not statisfiying’ records. We would always rank below and be very far from the others. Since the Aquino administration has started, have you observed at least ‘little’ improvements or differences compared to the previous administrations? We all know that we, Filipinos, have different point of views. And if you are going to ask me about it, well, I felt a ‘slight’ difference. Year 2010 is the year when Aquino admistration has started. It was not a good year for the admistration since Arroyo left a few ‘BIG’ problems to Aquino. I know we thought at first, has Aquino started his first move to show and prove that we chose the right person to handle and administrate the Philippines? During 2010, the Philippine GDP grew 7.3%. This was between the Arroyo-Aquino Administration. But during 2011, the Philippine GDP cooled down to 4% which is not a good sign.
How come it went down? This was because of the election-related spendings (during 2010 elections), a few rebounded exports and invesments, and consumer demand. Year 2012, is the second and a half year of the Aquino administration. Any improvements? Yes! I know you are now thinking, “Really? Now tell me what are those.” A common reaction for the Filipinos. Ordinary people living in the Philippines might not felt it, might not seen it. But if only the Filipinos cared, they should have already knew it. What is? The economic growth of the Philippines in 2012 went high as 6.5%! This value might be lower than 7.3% in 2010 but higher than the average economic growth of 4.5% during Arroyo administration! So if you are going to ask me what made the GDP grew suddenly so high? I will tell you that previous years before 2012, the Aquino administration planned things carefully. The Aquino administration worked to reduce government deficit by 3.9% and is expecting to reduce it to 2% by this year in 2013. They also reduced the public debt to below 50% of GDP. They also focused on improving tax collection efficiency than making new taxes.
Their administration’s first budget went for education, health, cash transfers for the poor, and for the few important infrastructure projects relying on the private sector for finance. So what are your thoughts about this? Need proofs? If you have observed, even though many calamities passed through, there was just a SLIGHT INFLATION rate happened. Observe what happened to the people in Mindanao. Many storms passed in that region in the Philippines, especially the Super Typhoon Pablo. We all know that Mindanao also contribute to the production of the rice and other important products that we import and export. But because of the great damage, many people there was affected. Rice fields were very damaged, houses were thrown like small pieces of paper, production of food went down, many industries were badly damaged and many people died. Not just in Mindanao because few parts in Visayas were also affected. Although there was no GREAT damage happened in Cebu and few parts in Negros Oriental but a few, just a few, damages were reported. Do you know even small damages cost a lot since it’s the industries who are affected? One business costs millions already.
How much more if it’s many? See? Now, should we worry our budget for those damaged infrastructures? Fret not, since budgets are planned. IF, the government did not keep it inside their own BIG pockets. Let’s go back to the calamities. We have discussed that within year 2012, we already had recieve so much damages in our economy. Now, a few up-to-date and social caring people should expect HIGH INFLATION RATE within this year. The big confusion is, WHERE IS THAT EXPECTED INFLATION RATE NOW? If there were damages because of calamities, it is always expected that rice and other basic commodities will be at higher price. Now, if the Aquino administration did not do something about those problems, we should have already experienced HIGH INFLATION RATE. Although there were weeks (2012) that price of oil and gasoline would go up, but it also goes down a few days or weeks after. It did not stayed high priced for months like other administrations passed. Compared this event to previous administration. For example, the Arroyo administration. We experienced the highest inflation rate. Yes, you heard it right. HIGHEST INFLATION RATE with the lowest economic growth.
Remember during her office, we experienced very high priced rice. Because of that, almost 80% of the people would rather buy a low quality but low priced NFA rice rather than a high quality, high priced rice. What they did actually was HOARDING. They keep lots of stocks of rice sacks so that when the season comes that the price of rice would go up, that’s the time they released those stocks. The benefitors are those business men. Foreign business men. See the difference? Inflation rates that would occur every after calamities but during the office of Aquino, we did not expect that HIGH INFLATION RATE will not occur. So now we have discussed that there was no or just a very bit of inflation happened. Just a few on the oils and gasolines. And we have learned that GDP growth in the Philippines went up to 6.5%.Now, have you observed that even though oil price hikes occured, it did not much affect the jeepney fare. In Cebu, the minimum fare is still php7.50. There were also improvements in the related to PUV’s and Buses. They lessened the traffic occured somewhere in Manila and lessened the occurences of accident on accident prone areas.
They also made a bus system where buses will only load and unload passengers on a certain loading/unloading area. They changed a few routes on buses. This made the traffic lessen. Another improvement is that they welcomed few business from other countries. This will help to increase the earnings in the country and improve the tourism. Over all, the Aquino administration did well within the year 2012. They just deserve to get the 6.5% economic growth satisfaction. They also recieved positive ratings in statistics. The question is, are all the data’s gatherd true and correctly conducted and recorded? We cannot always assure that it is 100% true since data gatherers cannot conduct research and interview all the people in the Philippines. There might be a possibility that they only considered a few small groups and from there they conducted interviews. Another question is that, is the one who computed the GDP honest? What if he changed some parts of the solution so that it will appear high and make the people happy?
Me, as an Economics student, I know some parts, some data’s in there aren’t true or real. But as what I have observed and understood, I know that even though 6.5% might not be exactly right, it will still be enough for me. I have already observed a lot. No Inflations, still low priced basic needs, and few or low occurences of oil price hikes. Even though they have proved a lot that their administration is good, Aquino administration still has a lot to prove because his terms is not ending, it is still beginning. We will still be observing on his current project called K-12. What could be the result for this project? Will this project be effective to lessen unemployed collage graduates? We will still be looking forward for some few changes that will be happening near in the future until the end of his terms.Let’s observe what will happen this coming May 2012 elections. Can he change and lessen corrupt people?
We all know that when elections happen, all kinds of corruption shows and can be seen everywhere around. Will he be able to stop it? I expect he can. He already kicked Ex-Chief Justice Corona out of the hall and placed the Ex-president of the Philippines Gloria Macapagal Arroyo to jail, his administration also took Gov. Gwen Garcia down when they have learned that she was doing a ‘Power Grab’. If his administration can also improve the exports of rice and other famous products of the Philippines, then he can make the GDP grow larger. He should make the Philippines not just a developing country as usual, but a fully developed country.Can he make the economy of the Philippines grow just like the first years of Marcos? If he can, then a 5.5%-6.5% expectation of yearly economic growth check will soon rise.