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Analysis:

Population: China - 321.4, Australia - 22.9


Looking on the World Factbook, we find that China's area is 9.5 million sq km and Australia's
land mass is 7.7 million sq km. While not as close as the US and China in regards to area, the
disparity between Australia and Chins in population is nearly 1.4 billion people. Looking at the
geography of the respective countries, Australia's climate is mostly made up of uninhabitable
desert. China has many forests and more lush, habitable climates. China, in the past, has also had
issues regarding their population. Because of so many people, they have resource scarcity in
regards to sustain their people, so they instituted the one-child policy to decrease the rising
population which was having a negative effect on the economy.
Industrial Production Growth Rate: US: 3%, Philippines: 6%
In the Philippines, they have been in the transition from being an agriculture-based economy to
an economy that does more manufacturing. The US, which has already gone through this period
in our Industrial Revolution from the 1800s. In fact, now the US has had a declining
manufacturing industry as countries like the Philippines are able to offer production costs that are
much lower. Though this is a threat to people losing their jobs, the lower production costs mean
lower prices for consumers. For example, the manufacturer Carrier was going to outsource like
described above, moving its manufacturing somewhere else. This most likely would have led to
lowered prices for their product, however President-elect Trump convinces Carrier to stay
through taxes. Carrier did say, but they did raise their prices. The Philippines, however, are
benefitting greatly from this outsourcing, as its Industrial Production Growth Rate is rising.
Population below the Poverty Line: US- 15.10%, Philippines- 25.20%
To fine that a quarter of the Philippine population lives below the poverty line was a shock. They
also have has rising drug and crime rates as well. Which may be why they had election Duterte
as president. Duterte won his election with promises of ending the crime that plagued the areas,
pledging to kill thousands of criminals. As president, he has supported death squads killing
suspected criminals and even street children, children who are in poverty and live and/work in
the streets to earn money. Already the Philippines have been flagged for human rights violations,
and time will tell on what is going to happen in regards to it. Philippines has also had a notable
history with have an insufficient or ineffectual criminal justice system. Im not sure what
Dutertes affect will be on his economy, but in my opinion it wont be good.
GDP- Real Growth Rate

US: 2.6%, Philippines: 5.9%

As stated above, the Philippine industrial sector is now growing at a 6% rate. Similarly, the
Philippine GDP growth is at 5.9%. In the past, the Philippines had corruption when under the
regime of its previous president Marcos, who was very much dictatorial. However, since that
administration ended, the Philippines became more economically liberalized with more elements
of free market business ultimately leading to this GDP growth rate. However, as also mentioned
above, with the election of Duterte, which is shaping up to be another dictatorial regime, will the
GDP start to decline? My prediction is that it will. For example, earlier this year Duterte was

threatening trade between them and the US, as well as other countries. I trade were to decline
because of this, the economy would suffer as consumer prices rise.

Reflective Summary:
I think that he Philippines have a good start to becoming a great economy in the future. It
has already increased its exporting and trade with other countries, and the GDP is growing as a
good rate. What worries me is the election of Duterte. Will the election of such a controversial
person as a leader affect the economy so much it will go into a recession? The Philippines has
had a lot of good growth in the last several decades and was (or still is) projected to be a
significant competitor in the Asian manufacturing markets. Its movement away from agriculture
and into manufacturing helped to advance its economic progress.
With President Duterte I feel like he will cause some negative affects to his economy. A
major concern is his death squads, whose actions have been favored by the president. President
Duterte has been getting approval from his people on taking this extreme stance on crime and
drugs. In the last few years, the drug use and crime rates have been rising, and understandably
the citizens of the Philippines wanted something to be done about it. The resulting death squads
have been flagged for obvious human rights violations. Eventually the goodwill of those who
elected him will turn as they realize that with no official criminal justice system, there will be no
security in going to the police who could arbitrarily kill you with no evidence with the approval
and pardon of the President.
On the other hand, he is also inflammatory in his speech in regards to neighboring and
powerful countries. With the present human rights violations with his death squads and his
incendiary speeches, hes driving the rest of the world to isolate the Philippines. One of the most
effective ways, and the one that is most likely to be used, is a rise in trade barriers with the
country. As mentioned, its manufacturing industry is what is majorly responsible for the past
years economic rise. If the countries it exports to suddenly raise tariffs or other trade barriers, it
will stagnate the rising industry.
In my opinion I see the President Duerte is going to hinder the economy. The people of
the Philippines may have to impeach or somehow corral the actions of their president in order for
the economy to rise as before. They need to maintain their growth in manufacturing by getting
more trading partners, and not denying trade with countries willing to buy.