LOAD PREVIOUS PAGE

Resources and power

Although the Philippines is rich in mineral resources, mining

activities constitute only a small portion of GDP and employ an even smaller
fraction of the population. Most of the country’s metallic minerals, including
gold, iron ore, lead, zinc, chromite, and copper, are drawn from major deposits
on the islands of Luzon and Mindanao. Smaller deposits of silver, nickel,
mercury, molybdenum, cadmium, and manganese occur in several other
locations. The Visayas are the principal source of nonmetallic minerals,
including limestone for cement, marble, asphalt, salt, sulfur, asbestos, guano,
gypsum, phosphate, and silica. Petroleum and natural gas are extracted from
fields off the northwest coast of Palawan. Copper has remained the
country’s primary mineral, although changing world market demands and
investment incentives have rendered its production somewhat volatile.
Until the late 20th century, hydroelectric power supplied only a small
proportion of the country’s electrical output, and thermal plants (most of which
burned imported oil) supplied the major proportion. The completion of several
dam projects on Luzon and the expansion of another project on Mindanao
have increased the percentage of power generated by hydroelectric
installations; irrigation and flood control have been additional benefits of some
of the projects. Dependence on foreign oil has also been reduced by the
construction of geothermal and conventional coal-fired thermal plants and, to
some degree, by the exploitation of Palawan’s offshore petroleum reserves.
Manufacturing

Much growth in manufacturing took place in the Philippines in the 20th

century, particularly in the 1950s and (after a slump in the ’60s) the ’70s.
Since that time the sector has remained relatively stable, contributing roughly
one-fourth of GDP, though it employs less than one-tenth of the workforce.
The government has assisted the private sector by exempting certain new
industries from taxation for a certain period. Only nominal taxes are imposed
on selected industries, and loans on favourable terms are available to others.
Many factories are licensees of foreign companies or act as subcontractors for
foreign firms, turning out finished products for export from imported
semifinished goods. A large segment of the manufacturing sector, however,
produces goods intended for domestic consumption. Major manufactures
include electronics components, garments and textile products, processed
foods and beverages, chemicals, and petroleum products.
Finance

The national currency, the piso, is issued by the Central Bank of the
Philippines (Bangko Sentral ng Pilipinas). Banking operations are also
conducted by several other government institutions, including the Land Bank
of the Philippines and the Development Bank of the Philippines; the Philippine
National Bank, formerly government-owned, was largely privatized in the late
20th century. All these banks were originally established by the government to
encourage business, agriculture, and industry.