Dire Straits

I recently received a .pdf file entitled "Where to the Philippines (or Does the Philippines Have a Chance?)" from a friend. The report was dated June 2004.

You can download your own copy of the PDF from the Wallace Business Forum's Special Reports Section. Choose "Where to the Philippines" in the list of reports.

Even though the file was 40 pages long, I took the time to read it. It so sharply highlights the dire straits that the Philippines is now in.

One of Wallace's Key Points:

In the past 30 years the Philippines has averaged 3.1% annual GDP growth and a population growth of 2.5%. Which means almost no improvement for the Filipino over that 30 years. This is about half the rate achieved by other nations in Asia. The reason:

1. Politics - vested interest vs national good
2. Uncontrolled population growth
3. Weak educational system
4. Corruption
5. Inadequate infrastructure
6. An agriculture system that hasn’t improved in 30 years
7. An inadequate focus on job creation
8. A judiciary in need of major improvement
9. Security
10. Good governance.

If these 10, and it must be all 10 of them, aren’t fixed the Philippines will average 3.1% for the next 30 years too. The logic of this can’t be denied.

The funny thing is, despite his portents of doom, Wallace seems to believe that it's possible to turn things around, and even outlines immediate action steps for newly re-elected President Arroyo.

I seriously doubt she'll follow any of his free advice, though. She seems to respond better to threats.