Why the Philippines Failed?

24 April 2013

… In Why Nations Fail, economists Acemoglu and Robinson provide a brilliant explanation on how progress and development is largely a function of ‘inclusive’ — as opposed to extractive — governance. Using their dichotomy, the Philippines clearly falls within the extractive category, whereby the core-elite have blocked appropriate policies, which would have made the country a true democracy, anchored by a large middle class, an entrepreneurial sector, and strong institutions spurring growth and innovation. Therefore, in many ways, the developmental failure of the Philippines has something to do with its weak and divided state, which seldom had the right ‘policy space’ to make optimal economic decisions. Throughout the post-War period, the Philippine state has either been at the mercy of entrenched elites, pushing for particularistic interests and blocking policies/legislations aimed at national development, or international financial institutions (IFIs), which have prescribed counterproductive policies, notably ‘Structural Adjustment Programs’ (SAPs), causing tremendous poverty, social dislocation, agricultural decline and ‘de-industrialization’ across the developing world. Sometimes, the Philippines was at the mercy of both...

~ Richard Javad Heydarian

8 Responses to Why the Philippines Failed?

  1. April 25, 2013 at 12:51 am
    manuel buencamino

    I have an aversion to sweeping cultural explanations, it’s too close to racial explanations

    • April 25, 2013 at 2:26 am
      GabbyD

      thats why B0 favors it — it saves him the burden of thinking too hard.

  2. April 25, 2013 at 6:49 am
    BrianB

    Sa simplistic na salita, if the few get their way, the many will suffer and when the many suffer, the country suffers.

    So anong debatable dito?

    • April 25, 2013 at 1:11 pm
      manuel buencamino

      Brian, hindi debatable yan. The debate in every country in the world is how to turn the few into the many

      • April 25, 2013 at 11:23 pm
        BrianB

        mb, how can you make many billionaires?

        I’m sure natural sa mga mayayaman na protektahan sarili. Maski ako kung ako mayaman, I’ll try to insulate myself and protect my wealth, but does government have to be occupied by rich families. Kailangan pa ba ng mahihirap na umalsa? Gamitin nalang natin utak natin.

        For example, why make pasipsip when one can do your best, without risking one’s own skin (this is possible) to chip away the old power.

        • April 30, 2013 at 11:12 pm

          but it’s easier to make sipsip.. what may be smart is to pretend at it while undermining that oligarchic order..

          • May 2, 2013 at 12:30 am
            BrianB

            But doing things on principle can create a legacy that stand on these principles.

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