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Countrys Profile The Philippines known as the Republic of the Philippines (Filipino: Repblika ng Pilipinas), is a sovereign island country

in Southeast Asia situated in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan; west across theSouth China Sea sits Vietnam; southwest is the island of Borneo across the Sulu Sea, and to the south the Celebes Sea separates it from other islands ofIndonesia; while to the east it is bounded by the Philippine Sea. Its location on the Pacific Ring of Fire and close to the equator make the Philippines prone to earthquakes and typhoons, but also endows it with abundant natural resources and some of the world's greatest biodiversity. At 300,000 square kilometers (115,831 sq mi), the Philippines is the 73rd-largest country in the world,[12] consisting of an archipelago of 7,107 islands that are categorized broadly under three main geographical divisions: Luzon, Visayas, and Mindanao. Its capital city is Manila while its most populous city is Quezon City. The Philippines are the highest portions of a partly submerged mountain chain and is made up of 7 107 islands; main island groups are Luzon, Visayas, and Mindanao. Spain (1565-1898) and the United States (1898-1946), colonized the country and have been the largest influences on the Philippine culture. The Philippines is one of the most westernized nations in Southeast Asia, a unique blend of eastern and western culture. The Philippines share maritime borders with: China, Indonesia, Japan, Malaysia, Palau, Vietnam, and Taiwan. Economic Status The national economy is composed of business enterprises, households and the government. They are the major sectors who give life to the national economy. However, the government provides the leadership in improving the economy. Market economy or free enterprise economy means there are economic freedoms, like free competition, free choice of investments and prices are determined by the interaction between demand and supply. Our economy has not improved much because of our colonial and primitive agricultural economy. Hence, Poverty grinds us up to now augmented by population explosion Economic development depends on the quality of the people of a given country. Knowledge, skills and values are the main determinants of economic growth. The national economy of the Philippines is the 40th largest in the world, with an estimated 2012 gross domestic product (nominal) of $250.436 billion.[7] Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits.[5] Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand.[5] Its unit of currency is the Philippine peso ( or PHP).

Source of Income The Economy of the Philippines is the 40th largest in the world, according to 2012 International Monetary Fund statistics and it is also one of theemerging markets in the world.[26] The Philippines is considered as a newly industrialized country, it has been transitioning from one based on agriculture to one based more on services and manufacturing. According to the CIA Factbook, the estimated 2012 GDP (purchasing power parity) was 424.355 billion.[6] Goldman Sachs estimates that by the year 2050, the Philippines will be the 14th largest economy in the world, Goldman Sachs also included thePhilippines in its list of the Next Eleven economies. According to HSBC, the Philippine economy will become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the Southeast Asian region by 2050.[27] Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, andThailand. The Philippines has been named as one of the Tiger Cub Economies together with Indonesia, Malaysia and Thailand. Conclusion There is a promising future despite extreme challenges in the Philippines economy. Philippines future looks bright, that the economists are projecting a GDP growth of 6% in 2013 and 5.9 % in 2014. These numbers come in line with the recent growth that the Philippines had in the last 10 years. The GDP growth of Philippines for 2012 was 6.6% and Philippines had an average GDP growth rate of 5.06 (%) in the last 10 years from (2002 to 2012). July 22, 2013 marks the State of the Nation Address day where the Philippines president gives his annual speech to the nation. On his speech, Benigno S. Aquino III, the president of Philippines pointed out the challenges faced and the accomplished achievements of year 2012. Along with current account surpluses and foreign exchange reserves, the growth record has given rise to a more diversified export basket, while shielding the economy from very challenging international headwinds. Recommendation I believe that Philippines have a chance to improve. The Philippines, as currently structured, cannot aspire to the growth rates. It will remain Asias laggard unless it makes massive, radical change. It cannot tinker at the fringes, the change must be radical. The lessons from the success of other countries can be learnt. Politics is at the heart of the problem. There are notable exceptions but, in the main, Philippine politicians are driven by their own agendas. Just one small example, we are proud that there were only 2 deaths during the May 1 rebellion. BUT there were close to 100 deaths related to the elections! No developed democracy kills its opponents just to gain a position of power. If the killers (those who mastermind the assassinations) go to jail, the culture starts to change for the good. And too many of them are elected into power for no other reason but they are popular.

Successful countries became so, in part, because the growth of the population was at a pace that support services could provide for and, hence, individual wealth could grow more rapidly. Fewer people sharing the national wealth are richerand so spend more on high value-added products, helping drive the economy up. Thailand had 38.9 million people in 1972, the same as the Philippines. Today, Thailand has 60 million people, the Philippines an official 78 million (and probably, almost certainly, considerably more). Thais average US$1,960 per capita, the Philippines is struggling at US$1,020. And it will be another 30 years before the Philippines meets this modest level. The Philippines missed the Industrial Revolution; its companies (with a few notable exceptions) cant compete against global competition. They need to become "niche" companies, or support companies for the global behemoths. Wiring harnesses for motor cars is an excellent example of this. Bad as its been throughout Asia, its arguable, that stealing (corruption) was less in the more successful countries. Whether it was, or not, at least much of what was stolen was directed back into the economy through corporate building, rather than exotic mansions and fancy motor cars and girlfriends. The current budget deficit that concerns everyone wouldnt exist if corruption could be minimized. The expected deficit this year equates to 23% of the budget. Most assessments of the level of corruption in government put it at 20-30%, i.e., no corruption, no deficit. And the money can be used to build the infrastructure essential to economic development.

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