Saturday, August 24, 2024

The Philippines used to be more developed than Indonesia, why is Indonesia now advanced in almost every measures than the Philippines?

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Nation rise and fall, it happened. India and China was once richest in the world, while Europe was backwater cesspool. Middle East also had its golden days and the US is mostly nothing. The Americans made Philippines wealthier back in the early 20th century, but haven't invested much on its industrialization and instead make it a ground for American goods market.

In terms of rich and poor gap, i think Indonesia have been faring better for longer period. Indonesia was poorer than the Philippines, largely because we have bigger population, thus resulting lower gdp per capita. Philippines have bigger population growth because Catholictism prohibit birth control, while Indonesia actually are promoting birth control since the 60s. This heavily influenced the gdp per capita factor in both country.

However the reason why we got richer is our resources. We have more land and access to strategic natural resources, thus we attract more foreign investment. We also have access to oil and coal which helped the nation with more revenues. Our labor cost is relatively low with huge population, thus many foreign businesses helped themself to open up factories in Indonesia (despite the many challenges, hefty tax and unnecessary bureaucracy they have to deal with here). These days we see that the gap of development between Java and outer islands have been reducing.

Many Indonesian also have entrepreneurial spirit, and practically sell anything in order to make a living. You will see travelling street vendors in all Indonesian cities in sidewalk or public spaces. Even the middle class youth are eager to open up their online store, via social media. A small successful business, will soon saw a shop that sell exactly the same thing next door. It forced many Indonesians to become more creative and market their goods better to survive. This is probably why our wealth are distributed better. Well also with more available jobs.

Rapid growth in small business in Indonesia – but drop in proportion with loans

Tourism also help developing the island of Bali, to be the 2nd most developed place in Indo.

The Philippines on the other hand have different culture. People there relied on remittance and the educated ones are leaving en masse. People tend to be more relaxed since the poor believed that as long their family abroad send their remittance, they can survive, even if jobs are unavailable.

Add: Also according to Geert Hofstede , Indonesia is better in adopting new things in comparison to Philippines. 

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