1. I should have listened during my Social Studies class. But wait, it was not discussed during those times. Analysis is a student activity. Know the history and excite yourself by engaging to intellectual ‘masturbation’.
2. Industrialization did not pollute the Philippines. Corruption did.
3. It was 50years ago, and we never learned.
“The Philippines surged second to Japan in the decade of the '50s, from 1949 to 1961. The main features of the economy then were: import and exchange controls, import substitution, protection of infant industries, and Filipino first. Because of the financial crisis of 1949, the government introduced economic controls. Importation of luxury items, including cigarettes and candies, was banned. Dollars and other foreign exchange were allocated only for importation of machinery and raw materials needed for industrial production. Dollar allocation for travel, especially tourism, was limited. In short our economic policy was the opposite of the free market.
President Garcia introduced the Filipino-first policy where the dollars are allocated only to Filipino entrepreneurs. Foreigners were made to get their foreign exchange from their sources abroad (as in China now). This encouraged the growth of local industries, including manufacturing, of textiles, clothing, radios, refrigerators, electric fans, corrugated iron, etc. The banning of foreign-made cigarettes gave rise to a local cigarette industry that used Virginia tobacco grown in the Ilocos. Beer manufacture also benefited. Industries owned by Filipinos sprouted, such as food processing, the Concepcion and Puyat industries.
Because of the growth of local industries, there was full employment. Wages of skilled and unskilled workers rose to an index of 113 (100 the base point). The growth of local industries and wages raised consumption. Our economic growth rose to 12 to 14 percent, then the highest in Asia, next to Japan. (I am writing from memory). We were the envy of the Asian world. The US Chamber of Commerce was unhappy, especially about the exchange rate which was fixed at P2 to $1. The export industry, especially the sugar barons, were unhappy because they felt they did not get the right dollar profits from their agricultural exports. In the 1961 elections, Diosdado Macapagal was backed by the US chamber of commerce against Garcia who was running for reelection.
Macapagal received hefty contributions from the US businessmen and the export sector. He won. He scrapped economic controls and devalued the peso 100 percent, to P4 to $1. Filipino industries collapsed because of doubled payments for credits and raw material imports. Foreign businesses regained their supremacy. Under the floating rate, which now puts the dollar at over P40, Filipinos can no longer compete. So they are moribund. They never recovered.
More on this, if I have more time to research.”
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