What does the Philippines need to do in order to lessen its dependency on the export of labor?

Jim Phipps

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Former Combat and CONUS Combat Arms Company Commander at U.S. Army 4y

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What does the Philippines need to do in order to lessen its dependency on the export of labor? Does the country need to concentrate in improving its agricultural economy, or switch to manufacturing and heavy industries? Explain your choice.

This is a complex issue.

The Philippines needs a rationale agribusiness program to feed itself. Much of the agriculture is done in small plots rather than large farms. As a result there is not enough mechanization and too many carabaos. The country is still not feeding itself. This needs to be corrected but probably won’t be due to culture, lack of finances for agribusiness, and to some extent national law dividing up the land into small plots.

The fishing industry is a generation behind the rest of Asia (China and Japan specifically). Overall agribusiness and fishing is inefficient.

These two areas both need serious attention. These won’t stop the export of labor if higher efficiency is achieved. Less labor will be needed for more food.

Switching to manufacturing is completely feasible if several things happen:

1. Less bureaucracy and near zero corruption (not really likely)
2. A national overhaul of the entire infrastructure with heavy rail (freight) and interprovincial freeways from Luzon to Mindanao
3. Introduction of more container ports
4. Eliminate Insurgency by any means possible (improved military and/or negotiations)
5. Comprehensive worker training schools through the nation

Once goods can be moved easily and quickly, then heavy industry can occur. Frankly, the Philippines is behind most of Asia with heavy industry. Heavy industry in areas like Angeles, Subic, Davao, Pagadian, Dipolog, Legazpi, and similar areas outside of Manila potentially can put millions of people at work.

The issue will be attracting foreign investment if 1 through 4 aren’t completed.