Philippines East Asian Economic Miracle

1388 WordsNov 8, 20156 Pages
Philippines East Asian Miracle 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. This paper will examine some of the reasons why the Philippines’ overall economic growth during the East Asian economic miracle period, has been slower than that of the other East Asian developing countries. One of the reasons that the Philippines lagged behind their rapidly developing neighbors, is that the Philippines have historically had a political system that caters to the wealthy elite. Second, they have accumulated massive foreign debt and have made it a priority to repay it at the expense of other growth promoting ventures. Third, the Philippine government has not been successful in changing economic policies that have inhibited growth. Fourth, investment in human capital in the Philippines has not been as effective as in other countries in the region. Finally, due
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