I - Political Economy Perspective 1.

Neo-classical economist attribute the generally poor economic record of the Philippine to a policy mix that misallocates resources to areas of inappropriate and inefficient economic activity. 2. Rent-seeking- the effort applied to competition in the political arena over resources of rent- particularly quotas , tariffs, and public monopolies. 3. 1990s- Neo classical economist argue that the Philippine economy grew, and was then able to avoid the worst of the regional financial crisis. 4. The historical institutionalist focus on the quality of state business , other approaches direct attention to the organizing capacities of alternative forces. 5. The socioeconomic inequalities arising from capitalist development have been also the particular concern of dependency theorist. 6. 1997- the Philippine economy was less exposed to international capital flows than others in the region. II- Economic Transformations 1. Export Agriculture The commercialization of Philippine agriculture began in the late 18th century, under Spanish rile. 2. Import-Substitution Industrialization : a. 1949 - the government introduced import and currency exchange control. b. 1960s - controls on foreign exchange were lifted and peso was devalued by almost half against the US dollar. Tariffs were introduced which reproduced the structure of protection in favor of consumer items over intermediate capital goods. 3. Export Restructing a. 1970- various transformations in the world economy converged to influence the later course of economic development in the Philippine. 4. Foreign Debts Crisis 1970- growth in the Philippine economy was largely financed by international loans to government.

III- Social Structure and Development 1. Land and Labor a. 1930- a peasant resistance movement emerged in the Central Luzon which, just after World War II, waged a seven-year armed rebellion against land owners, until eventually crushed by government forces. b. 1950s- a number of landlords introduced more machinery-intensive forms of rice-growing, largely to circumvent their labor-control problems. c. 1970s- international funds were deployed for a green revolution in the Philippine agriculture through the introduction of high-yield varieties of rice. d. Maoist Communist Party of the Philippines and its New People Army (NPA)- resumed in Central Luzon in late 1960s.

2. Import- substitution Industrialization a. 1950s- Import-substitution Industrialization (ISI) largely reproduced the oligarchic socioeconomic structure that built up in agriculture. b. 1920s- number of unions and their reported membership increased rapidly. c. 1930s- cuts to wages and unemployment arises. 3. Middle Class and new Forces: a.) heterogeneous stratum is a term of the middle class according to level of income, occupation type and status, pattern of consumption. b.) economic location contradictory or ideological and political relationship with capital and labor. c.) capitalist industrialization the Philippines has increased the significance socioeconomic and political terms. 1980-1960 the idle class first came to political prominence over their endorsement of government protectionism. 1980 enhanced the class capacities then reflected their heavy involvement in the popular movement to overthrow in Marcos, in NGO organizing in 1990 d.) oligarchy maintained political and economic power. e.) cronies dominance force in key sectors of economy. It is not a traditional oligarchy. f.) middle strata of Philippines society a vital source of medium scale investment in export manufacturing. g.) corporate sector continues to be dominated relatively by small number of large groups and ultimate. 4.Weak state 1. Two facets to weak state: 1. State autonomy distribution of power between state and society. 2. State capacity- distinction between patrimonial and national bureaucratic polities. 5.) Elite Democracy a.) International arena policies to do with trade and currency exchange, and on its function as a conduit for foreign development assistance and loans. b.) enormous drain on public resources caused by political patronage, the state has been able to survive only as a consequence of the access it has had to overseas sources of funding. c.) party system characterized by affiliations centered on the shifting terrain of personality based loyalties rather than policies aimed at meeting the interest of particular categories of citizens. d.) political landscape of the Philippines has this long included a large number and variety of caused- oriented groups in both rural and urban areas.

6.) Authoritarianism a.) locus power the government balance power was shifting towards the executive branch. 2. Dictatorship 7.) Political reform; a.) the restoration of elite democracy b.) wealthy landowner resistance c.) industry- disputation and wage-bargaining d.) a new form of governance e.) revisions to the constitution f.) people power g.) democratic consolidation 8.) Market liberalization a.) close relationship between business rent-seeking and dirigisme in trade and investment , market liberalization in the Philippines. b.) reversal of causality between state and society. c.) open-economy or free market, it is also the case that they can no longer simply he encompassed by the general category of crony or particularism capitalism. 9.) After the 1997 crisis Government of the Philippines bankrupt. Economic of the Philippines was destroyed.

Prepared by: Buasan, Leane Frances M. Tena, Rhea S.