The global financial crisis that began in the summer of 1997 and spread from thailand and singapore to indonesia and south korea created a watershed in contemporary history: a systematic failure of capitalism struck precisely those economies held up as models of industrial efficiency. Pempel china's growth promises to provide a welcome impetus to sectors such as energy and telecom, strongly affected by the current downturn. However, it will be some time before the full ramifications of china's emergence in general and its wto membership in particular are properly understood. In 2002, there will be enough to keep business strategists enthralled, as the challenges posed in the regulatory and legal fields become more apparent. The real impact on many sectors, such as automotive and health will be felt in the years to come. Japan's problems predate and transcend the mid 1997 asian financial crisis, and indeed these problems have only been marginally affected by that crisis. The japanese economy has stagnated for most of the 1990s decade, experiencing an average annual growth rate of about 1 percent, and in 19 a negative growth rate of about 2 percent.

This is a striking contrast to japan's record of strong and sustained growth in the previous term paper in microeconomics by: ma. Manaig to: professor joyce colcol economy of the philippines the philippines is a developing country in south east asia. In 2004, it was ranked as the 24th largest economy by the world bank according to purchasing power parity. Important sectors of the philippine economy include agriculture and industry, particularly food processing, textiles and garments, and electronics and automobile parts. Mining also has great potential in the philippines, which possesses significant reserves of chromite, nickel, and copper. Recent natural gas finds off the islands ofpalawan add to the country's substantial geothermal, hydro, and coal energy reserves. History since the end of world war ii, the philippine economy has had a mixed history of growth and development.

Over the years, the philippines has gone from being one of the richest countries in asia followingjapan to being one of the poorest. A severe recession in 1984 85 saw the economy shrink by more than 10%, and perceptions of political instability during the aquino administration further dampened economic activity. During his administration, president ramos introduced a broad range of economic reforms and initiatives designed to spur business growth and foreign investment. As a result, the philippines saw a period of rapid sustained growth, but the asian financial crisis triggered in 1997 slowed economic development in the philippines once again. In 1998, the philippine economy deteriorated as a result of spill over from the asian financial crisis and poor weather conditions. President estrada tried to resist protectionist measures and efforts to continue the reforms begun by the ramos administration made significant progress.

A major bank failure in april 20 and the impeachment and subsequent departure of president estrada in the beginning of 2001 led to lower growth. The current administration under president gloria macapagal arroyo is pushing towards faster and more rapid economic growth. In 2004, the philippine economy grew by 6.1%, beating most analysts and even the government's estimates. In 2005, the philippine peso posted an appreciation rate of 6% the fastest in the asian region for that year. However, the advent of high oil prices dampened the government's growth estimates for that same year as growth only amounted to 5.1%. During 2006, the economy posted a 5.4% growth, dampened by two typhoons which wreaked havoc on the agricultural sector.

The government plans to bolster infrastructure spending in 2007 ten fold, and is targeting an accelerated growth of the economy by 7% in 2007, 8% in 2008, and 9% in 2009 1. As of february 2007, the stock market is currently near all time highs and the peso has appreciated to 48.07 to the dollar. Despite the positive outlook of the economy, the government still faces challenges in many areas.

2006 figures in 2006, the philippine economy expanded at a rate of 5.4%, faster than the previous year. The government plans to increase the country's gdp by 7% in 2007, although official projection is a around 6.1% 6.7%. It also aims to grow the economy by 9% in 2009, as part of the projected target of the government via enhanced public investment to attract foreign capital as well as improved domestic improvement. Macro economic trend this is a chart of trend of gross domestic product of philippines at market prices estimated by the international monetary fund with figures in millions of philippine pesos.

The philippine development plan pdp 2011 2016: social contract with whom? 1 the philippine development plan pdp 2011 2016: social contract with whom? june 21, 2011 w.ibon.org the plan proposes massive investments in physical infrastructure, fostering business confidence, giving short term cash outlays, and ensuring transparent and responsive governance to develop the country. The pdp is the government‟s blueprint for implementing its declared social contract with the filipino people. The plan sums up the administration‟s chosen economic direction and defines its strategies and programs for the next six years. The introduction 15 pages summarizes the state of the economy and the plan‟s approach. The key strategies are then outlined in nine chapters on macroeconomic policy 24 pages , industry and services 38 , agriculture and fisheries 18 , infrastructure 57 , financial system 22 , good governance 25 , social development 56 , peace and security 9 , and the environment 32. The pdp 2011 2016 acknowledges how the large majority of filipinos have not benefited from economic growth and declares that it aims for „inclusive growth‟. It says the problem is largely because of inadequate investment due to insufficient infrastructure and governance lapses and inadequate human capital due to declining education, poor health services and inadequate safety nets.

Correspondingly, the plan proposes massive investments in physical infrastructure, fostering business confidence, giving short term cash outlays, and ensuring transparent and responsive governance to develop the country. The essential economic thrust is straightforward: stick to the globalization policies implemented over the last decades, deepen and broaden privatization through public private partnerships ps , and selectively implement social protection programs especially conditional cash transfers ccts. Problematic development plan such a plan however poses serious problems for the economy and the people. It misinterprets the country‟s underdevelopment and, by insisting on the discredited „free market‟ development model, will not result in higher growth nor reduce poverty.

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It avoids redistributing the country‟s resources and increasing the social and economic power of the poor majority. If anything it even exaggerates private profit seeking as a means to social development to justify diverting public resources for private gain. The plan has low ambition and is not decisive in addressing the country‟s poverty, backwardness and underdevelopment. First and most basic, the pdp 2011 2016 does not offer anything new in terms of strategies for more genuinely inclusive economic growth. The plan‟s main problem is that it dogmatically stays the course of „free market‟ policies of globalization that have been so destructive for the country. This means the government foregoing strategic economic planning and letting the market and private sector decide on economic activity in the country – where national development is then expected to more or less spontaneously happen.

The plan builds on the accumulated globalization policies of previous administrations including the arroyo government. For instance, it hails the industrial structure as now fairly undistorted by subsidies. The philippine paper industry seeks to attain the capability to serve all major pulp and paper requirements of the country and develop high value and quality pulp and paper products in the long term, in a manner that is internationally competitive and environmentally sustainable. Beginning in 1972, the main tenets of the marcos government x0027 s economic policies, as articulated through the national economic development authority, included substantial development of infrastructure, particularly through the use of labor intensive rather than capital intensive i.e. Mechanized methods, and a shift in export emphasis from raw materials to finished and semifinished commodities. The policies of the aquino administration have stressed labor intensive, small and medium scale agricultural projects and extensive land reform.

In addition, wealth believed to have been amassed by president marcos was actively being pursued all over the world. Long range planning has followed a series of economic plans, most of them covering five year periods. The development program for 1967 x2013 70 aimed to increase the growth rate of per capita income from the 0.9% level in 1961 x2013 65 to 2.4% to increase national income by 5.7% per year during the plan period, and to reduce the unemployment rate from 13% 1965 to 7.2% 1970. The government invested $3.5 billion in integrating the traditional and modern sectors of the economy. Marcos x0027 s first long range plan following the 1972 declaration of martial law was a four year 1974 x2013 77 infrastructure development program calling for 35% to be expended on transportation, 33% on energy and power, 20% on water resources, 10% on education, health, and welfare, and 2% on telecommunications. A 1974 x2013 78 plan, announced in late 1975, envisioned energy as the major focus of the new plan, with 34% of expenditures, followed by transportation, 30% water resources, 23% social programs, 7% and other sectors, 6%.

The goals of the 1978 x2013 82 plan included an 8% annual growth in gnp, rural development, tax incentives for export oriented industries, continued self sufficiency in grain crops despite rapid population growth, and accelerated development of highways, irrigation, and other infrastructure. The 1983 x2013 87 plan called for an annual expansion of 6.2% in gnp, improvement of the rural economy and living standards, and amelioration of hunger. Under the aquino administration the goals of the 1987 x2013 92 plan were self sufficiency in food production, decentralization of power and decision making, job creation, and rural development. Economic performance for real growth fell far short of plan targets by 25% or more. The foreign investment act of 1991 liberalized the environment for foreign investment.

An executive order issued in july 1991 reduced the number of tariff levels over five years and reduced the maximum duty rate from 50% to 30%. A new six year medium term development plan for 1993 x2013 98 was presented by the government in may 1993. The plan stressed people empowerment and international competitiveness within the framework of sustainable development. To do this, the government planned to disperse industries to regions outside the metropolitan manila area. The plan also called for technological upgrading of production sectors, poverty alleviation, and human/social development. Over the six year period, agriculture x0027 s share of gdp was expected to decline from 23% to 19% of gdp while industry x0027 s share was to increase from 34% to 39%. The medium term philippine development plan mtpdp for 19 through 2004 focused on rural development, especially on the modernization of the agricultural sector.