Economic Growth and Development in the Philippines

TABLE OF CONTENTS

Introduction2

Background2

The role of the U.S and consequent impact on the Philippine economy3

Banking system3

Agriculture5

Trade7

Conclusion10

Economic Growth and Development in the Philippines

Introduction

Philippines have one of the strongest growing economies amongst the developing nations of South East Asia. The economy of the country has been able to weather the recent crisis in the financial world in a much better manner as compared to many of the other nations. This can be attributed to the efforts that the country has made during the last few years to manage the levels of fiscal deficit and debt ratios, as well as, to the introduction of reforms in the banking sector that are internationally accepted.

Background

Philippines, which was once a part of Spain, was later conceded to the US as an aftermath of the Spanish American War in 1898. Under the colonial regime of the US, the economic development and growth of Philippines was distinctive colonial. The country's economy relied heavily upon that of the US, with no significant industrial expansion. During the American rule, mining and agriculture remained the country's primary economic resources.

The US had official colonial rule over the Philippines for a period of 47 years, starting from 1899 and ending in 1946. This was the largest overseas colony for the US. The economic interests of the US in Asia were on the rise during the late 1890s as a result of the economic and industrial depression, as well as, the competition for global dominance. On the other hand, Spain was losing its colonial powers over its largest colonies of Cuba and Philippines because of the fierce revolt and uprising. The Philippine Revolution that lasted from 1896 to 1897 weakened the Spanish colonialism substantially, however, could not bring it to an end. The individuals found responsible for leading the revolt were sent into exile to Hong Kong. After the invasion of Cuba and Puerto Rico in 1898, the US further advanced towards Philippines through its US Pacific Squadron to establish its power in the region. The US defeated the Spanish navy with ease, marking an end of the Spanish colonization over the Philippines. This gave hope to the Filipino revolutionists that the US would realize their demand and assist their movement.

The American forces and diplomats did help to bring back Emilio Aguinaldo to the Philippines, who was one of the prominent leaders of the revolution. However, they intended to use him to subdue the revolutionists and avert their demand of an independent Republic of Philippine that Aguinaldo himself announced in June 1898.

The US army captured Manila in August 1898 and refused the Republic's soldiers entry into the city. The US and Spain then went on to negotiate the status of the Philippines without taking in the Filipino representation into the process at France. This lead to a debate amongst the US Senate and the general American public about the Treaty of Paris, which brought Philippines under the colonial rule of the US at a cost of $20 ...