Philippines Economy

Philippines Economy

Major industries

The electronics industry is important for the Philippines. Many products are delivered abroad, for example electrical components or semiconductors. The Philippines has large deposits of gold, copper and nickel.

There are big differences in the Philippines. The economy is growing in some districts of the capital Manila and many international companies are settling here, while at the same time there are very poor areas that do not even have enough water and electricity.

Foreign companies in the Philippines

Many companies in Europe or America are now relocating office activities abroad, especially to Asia. There the labor is cheaper. It is possible that the telephone service of an American company is no longer carried out in the USA, but is relocated to the Philippines, because many people there speak very good English.

It is assumed that more and more people will work for such companies over time. The accounting of many companies is also often outsourced and then done by well-trained Filipinos. However, most of the people there are paid far less than in the states that commission the contracts.

Tourism

Tourism is an important economic factor in the Philippines. The Philippines are a land of contrasts, because here you will find huge skyscrapers, large shopping centers, great restaurants and many restaurants and bars in the capital Manila. It looks like a modern western city.

But in addition to the wealth that exists in the Philippines, people live on the streets and eke out their existence in the garbage from the waste of our affluent society. Anyone who moves a bit away from the tourist spots sees the other side of the country: mountains of rubbish, poverty and suffering.

The tourists go to their fancy hotels and spend a nice beach vacation in a beautiful landscape. The slums they often do not see. White beaches with sailing and diving schools, great mountain landscapes or fascinating volcanoes, all of this attracts many tourists. The people are friendly and accommodating, English is spoken to a large extent and the prices are low.

That all sounds very good, because actually the people in the Philippines should earn money with the tourists. However, many Filipinos are working again for starvation wages and without health or old-age insurance. The big corporations earn money and they are based in America or Japan or somewhere abroad, maybe with us too.

Agriculture

Many people work in agriculture in the Philippines. Almost half of the land area is used for agriculture. 40 percent of the residents live from agriculture. They grow rice, corn and sugar cane, but also delicious fruits such as bananas, pineapples and mangoes. Animals such as water buffalo are often used in field work. There are only a few machines and the farmers still do a large part of the work by hand. For more information about Philippines and Asia, please visit estatelearning.

But often the Filipinos who work in the fields do not even own the land. They work there for very little money. Many families lease land from large landowners, people who own a lot of land. They till the fields and give away a large part of the harvest. They are only allowed to keep a small part. However, the state is now also trying to improve the conditions of the tenants and to distribute land to the farmers. But although many people still work in agriculture, their share of the gross national product (GDP) is low and is only 15 percent.

Fight for a better and fair life

Sometimes people try to defend themselves against the grievances in the country. That doesn’t always happen with the right means. There are rebel groups like the communist “New Peoples Army” (NPA), which also fights with weapons and tries to take action against the grievances in the country. There are now also organizations that try to help farmers by supporting them in growing fruit, vegetables and rice.

Energy

In addition to crude oil, natural gas, wood and coal, the Philippines now also rely on renewable energy sources such as water and electricity from geothermal energy. Large hydropower plants and geothermal power plants have been built. Due to its island location, the Philippines is also suitable for expanding wind power.

Energy crops?

In the Philippines mainly products are grown that are in demand on the world market, and not products with which the residents could perhaps feed their families. Some of these plants are energy crops: they are grown to produce energy. People from abroad are looking to invest in this cultivation. The aim is to promote jobs for people. That in itself is a good idea, only the land that is now being used for growing maize or palm oil is missing from the farmers who should actually be growing fruit, vegetables or rice to feed themselves and their families.

Philippines Economy