EARLY PHILIPPINE INDUSTRIALIZATION

The goal of the early Philippine economy has been to increase the share of manufacturing in the GNP.
Like other developing countries, the Philippines has been aspiring for industrialization. Since 1916, there
were experimentation with policies which were envisioned to promote manufacturing in the Philippines,
and the promotion of entrepreneurial ventures among local businessmen.

GOVERNMENT PARTICIPATION

Philippines industrialization in its formative stage provided little or no priority to manufacturing

for export. It only sought to reserve the domestic market for local manufacturing and to expand
the range of the Philippine manufacturers. For 20 years since 1935, the government stablished
and operated various marketing and industrial enterprises.

INDUSTRALIZATION EVALUATED

Philippine industrialization rose rapidly since 1950 in term of growth, number of firms, number of
plants or extent of Filipino participation. In 1950, the value added in manufacturing was only 8.5
percent of the national income compared with 42.3 percent in agriculture. Eight years later, the
contribution of manufacturing to national income increased almost three times.

THE SOCIAL COST OF INDUSTRALIZATION

Industrialization spawns more investments, employment, production and income. In the

process, more building factories and machines are being created in response to an increasing
demand for goods and services. Likewise, industrialization serves as a magnet to people in the
rural areas. They go the cities to look for jobs or for business reasons. This increases faster the
urban population. Hence, housing, health, education, transportation, communication, and other
social facilities and services have to be expanded to serve the growing human needs.

THE POOR ARE EXPLOITED

The emergence of social problems in an industrializing society was also obvious during the
Industrial revolution in England. The introduction of machines ushered in the growth of the
factory system and the eventual collapse of the flannel weaving industry in the countryside. The
jobless weavers went to the cities to work in factories.

THE CASE OF AFFLUENT SOCIETIES

The highly developed countries are the industrial societies. They are rich and their peoples
enjoy a high standard of living. Families have cars, appliances and comfortable houses. The
government provides the essential social services such as housing, health, old-age benefits and
unemployment insurance. It has been said that the poor in the United States are not considered
poor by third world standard. For instance, a family four which receives $8,000 a year is
classified as poor in the United States. Such income is already a fortune to many families in the
less developed countries.