New Institutional Economics and the Philippines Essay

Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future.

A market society was created and functions through material and ideological conditions. Through the works of Polyani’s The Great Transformation and Heilbroner’s The Economic Problem characteristics of the material conditions that make up market society will be outlined as well as the differences of how they functioned in the past versus the present. Rinehart’s ideas will be used to explain the changes in material conditions. Through Bendix’s summaries from Weber’s Economic Rationality, both the material and ideological conditions will come together to help readers understand the importance and functionality of a market society throughout the years.

Another is that Filipinos have a culture of apathy and tend to use religion incorrectly and passively. People depend on religion and settle for what’s okay. In addition, the initial reaction of Filipinos to change is resistance, and this is why the country does not necessarily progress, or at least, progress at a continuous rate. Then, countries like Spain and Portugal only rode the “economic tiger” after “they realized that the only way to survive was change” (3.Y). Plus, according to another critic, the Philippines already had the experience of being under the parliamentary system during the time of Marcos which only resulted in a People Power Revolution. So why should the country bother going back to that? (4.Y)

Under the new regime agriculture developed rapidly, commerce and trade soared to unprecedented levels, transportation and communication were modernized, banking and currency improved, the manufacturing industries were transformed. As compared with the Spanish era, economic progress of the Philippines during the American era forged ahead with great strides. (291)

Nowadays, we can notice continuous problems in our country already; since, these are obviously seen in the news. The problems are mostly about the Philippines' economy and the governance of the government with it. Most of the problems are just déjà vu or clearly seen; in short, they are repeatedly happening. Until now, there are no appropriate reasons on why these said problems are happening. Until now, I cannot see an effective solution for them, especially if our own President is not efficient for his position to rule and fully change the status of our country.

Some examples of these factors include weak political parties and electoral systems, lack of available quality health care, insufficient investment in education, and informal markets. The barriers to development that will be covered in this essay are lack of human capital, weak governing institutions and lack of government aid, as these factors are the most common, among low income families, preventing development and escape from the poverty trap in the Philippines. The goal of HFHP is to reduce the barriers to development through supplying low-income families with low-cost, quality living

Carbayas, R. (2012). Raising dependents: The Philippines ‘ “Pantawid Pamilyang Pilipino Program” (4Ps). PIA Western Mindana, Awesome Inc

It is convincing that the current Philippine government system is linking between democratic and authoritarian. It will be more likely to achieve more improvement if we change our system gradually. The democracy we have in our country is not the democracy it should be. People are becoming reckless and undisciplined. Our country is not capable of providing us with some of our basic needs, especially when it comes to our benefits — which are minimal. We deserve the right kind of

“A nation’s culture resides in the hearts and in the soul of its people (Ghandi, Mahatma 2017). For about the first time this lush land was discovered, the Filipinos have always been proud of their culture, their religion, customs and beliefs. A part of their culture is transmitted through their various languages, material objects, rituals, institution, and art from one generation to the next. They, like any other country had its ups and downs with things they’re not so proud of like their stability financially and with their government. But despite that, the Philippines have more to offer than just their land and what the land has to offer other countries for they literally are still fighting their own wars within themselves and the country is still going through turmoil then and now.

The catalytic role played by institutions in the performance of an economy came into prominence in the post First World War, in the form of ‘Old Institutional Economics’ but gained its momentum in the 70’s. The emergence of ‘New Institutional Economics’, a term put forth by Oliver Williamson in 1975, owes itself mainly to Douglass North (North and Thomas 1976; North 1981, 1990 and 2005). It aims at expanding the neo classical model by incorporating the

From the 1960’s through the 1990’s, during what is referred to as the East Asian economic miracle period, several East Asian economies experienced unexpected high growth that was sustained for more than 20 years. The Philippines had great potential early on to become a developed country, due to an abundance of natural resources, a special relationship with the United States, a high literacy rate, a high domestic savings rate, and a promising manufacturing sector Leipzeger 448-449. However, despite these advantages, they experienced far slower growth than many of the other economies in the region. Today, they continue to face numerous obstacles to becoming a developed state.

The Philippines in its current state cannot be painted in its best picture hence it stands on unsteady grounds both economically and

“Greener pastures are those outside of the country”, an Ilonggo youth confesses. Would this kind of thinking help for the betterment of Filipino families? Would this kind of thinking contribute to the nation building aspired by every Filipino? Would this be indeed the long-awaited answer to the problem of poverty for the Filipino people? Is Philippines not a greener pasture for the Filipino people?

The Philippines has been battling against poverty for over several years now. The problem with poverty was inherited by every president, the highest ranking official of the republic. Because poverty continues to worsen every now and then, the leaders of the country have their own strategies and policy adaptations to combat this serious issue.

Philippines suffered through several crises long enough. Our country was colonized, abused, and became the land of several great wars. It honed our culture and civilization. Because of this, we looked up to other countries and admired them for having what we don’t have. Thus, national identity became one of the endeavors that we, Filipinos, had been wrestling with. Education is no doubt a predicament too. We struggled economically as well that most of our fellow countrymen are in poverty and cannot provide themselves with their basic needs.