Much has taken place since 1986 when the Edsa revolution took place. From a nation mired in foreign debt and struggling with hyperinflation, it has metamorphosed into a service-oriented economy, fueled by remittances from migrant Filipino workers and revenues from business process outsourcing companies and tourism.
The manufacturing sector took a backseat. From being the second-biggest exporter after electronics prior to the people power uprising, the garment sector is now reduced to a minor player, unable to compete with cheap labor from Sri Lanka, Vietnam and China. Agriculture and mining, too, have failed to sustain their major contribution to the gross domestic product.
The country’s industrialization thrust during the last few years of the Marcos administration is now a forgotten policy. No major industrialization project was pursued by succeeding presidents after the 1986 political upheaval. The copper smelter and phosphate fertilizer projects in Leyte province, and cement industry expansion were the last to be established in the Philippines. The rest of the 11 industrial projects, like aluminum smelter, diesel engine manufacturing, heavy engineering industries and integrated steel complex, were abandoned.
Succeeding administrations failed to hire economic visionaries, or the likes of former ministers Cesar Virata, Roberto Ongpin and the late Geronimo Velasco, who could have provided the Philippines with a stronger industrial base.
Consumption now drives the economy, backed by a young population, remittances and the swelling labor market in the BPO sector. Shopping malls have proliferated to meet the demands of the growing population.
Metro Manila’s skyline has vastly changed, with several skyscrapers dominating financial and commercial centers. The property sector is booming, driven by the demand for condominium units and office spaces, mostly from BPO companies.
The Philippine economy is trying to rebuild and has succeeded to register respectable growth rates in the last few years, from its feeble state back in the mid-80s. But it still lacks the backbone to chart the recovery course. The lack of infrastructure is restraining full growth. Senator Ferdinand Marcos Jr., one of the vice presidential candidates, ironically, reminded the public that there was nothing to celebrate in the Edsa revolution of 1986.
Many development projects, according to him, remained unfinished 30 years after his father was ousted in 1986. He cited the light rail transit project, which should be on its eighth stage by now.
The economy, indeed, has improved from a period when it declared a moratorium on foreign debt payments. The infrastructure lack, however, serves as the shackles that impede economic growth.
