Economy
The Philippines is a newly industrialized country with an economy anchored on agriculture but with substantial contributions from manufacturing, mining, remittances from overseas Filipinos and service industries such as tourism and, increasingly, business process outsourcing. The Philippines is listed in the roster of the "Next Eleven" economies.
Makati City is the main central business district of Metro Manila.
Historically, the Philippine economy has largely been anchored on the Manila galleon during the Spanish era, and bilateral trade with the United States during the American era. Pro-Filipino economic policies were first implemented during the tenure of Carlos P. Garcia with the "Filipino First" policy. By the 1960s, the Philippine economy was regarded as the second-largest in Asia, next only to Japan. However, the presidency of Ferdinand Marcos would prove disastrous to the Philippine economy, sliding the country into severe economic recession, only to recover starting in the 1990s with a program of economic liberalization and the breaking of Marcos-era monopolies and the system of cronyism under Fidel V. Ramos.
The Asian Financial Crisis affected the Philippine economy to an extent, resulting in a lingering decline of the value of the Philippine peso and falls in the stock market, although the extent to which it was affected was not as severe as that of its Asian neighbors. This is largely due to the fiscal conservatism of the Philippine government partly as a result of decades of monitoring and fiscal supervision from the International Monetary Fund, in comparison to the massive spending of its neighbors on the rapid acceleration of economic growth. By 2004, the Philippine economy experienced six-percent growth in gross domestic product and 7.3% in 2007, in line with the "7, 8, 9" project of the government to accelerate GDP growth by 2009.
In a bid to further strengthen the Philippine economy, President Gloria Macapagal-Arroyo pledged to make the Philippines a developed country by 2020. As part of this goal, she instituted five economic "super regions" to concentrate on the economic strengths of various regions of the Philippines, as well as the implementation of tax reforms, continued privatization of state assets, and the building-up of infrastructure in various areas of the Philippines.
Despite the growing economy, the Philippines will have to address several challenges in the future. Strategies for streamlining the economy include improvements of infrastructure, more efficient tax systems to bolster government revenues, furthering deregulation and privatization of the economy, and increasing trade integration within the region and across the world. The Philippine economy is also heavily reliant on remittances as a source of foreign currency, surpassing even foreign direct investment. China and India have emerged as major economic competitors, siphoning away investors who would otherwise have invested in the Philippines, particularly telecommunications companies. Regional development is also somewhat uneven, with Luzon and Metro Manila in particular gaining most of the new economic growth at the expense of the other regions, although the government has taken steps to distribute economic growth by promoting investment in other areas of the Philippines.
The Philippines is a founding member of the Asian Development Bank, playing home to its headquarters. It is also a member of the World Bank, the International Monetary Fund (IMF), the Asia Pacific Economic Cooperation (APEC), the World Trade Organization (WTO), the Colombo Plan, and the G-77, among others.
http://en.wikipedia.org/wiki/Philippines#Economy