Can the Philippines Rely on a Services-Led Growth?
- Amelia L. Bello Gied B. Evangelista Divine Krizza B. Padua Mayumi Hayag D. Teves
- Journal of Asia Trade and Business
- vol.5 no.2
- 43 - 52 (10 pages)
Battling with a condition of development progeria, the Philippines is now left to deal with the aftermath of a growth too dependent on the services sector. With limited job opportunities in the country due to underdeveloped agricultural and industrial sectors, Filipinos could only choose between working for low-paying domestic jobs or looking for greener pastures abroad. Furthermore, although the economy is primarily services-driven, the bulk of services outsourced into the country are related to IT-BPM, leaving little space for laborers that cannot be absorbed by the sector. The adoption of the Manufacturing Resurgence Program (MRP) under the Comprehensive National Industrial Strategy (CNIS) which aims to enhance the competitiveness of domestic manufacturing industries with strong forward and backward linkages so they can be integrated in ASEAN-based networks and into deeper global value chains, provides a broader demand for services. Recognizing the importance of the services sector in supporting the manufacturing resurgence initiative, it is imperative for the government to lay down necessary structural changes in place and commit to seeing them through to achieve its vision of becoming a regional hub for manufacturing and services by 2025.
Ⅱ. The Services Story
Ⅲ. The Trade-Off
Ⅳ. The Prospects for a Services-Led Growth
Ⅴ. What Now