Prepotente, Jazmin Ace R.

BSAIS-2B

Economic problems in the Philippines

1. Inflation Rate
Economic inflation is the increase in the price level of all goods. When economic
inflation happened, the effect is on the people and it also reflects the loss of the value of
the money of the Philippines. Today our economic inflation has risen faster than we
expected. The Filipino people really suffered from rising inflation. The economy we had
today has seen a sharp increase in the price of all raw materials and fuel oil. The Filipino
people cannot foresee that the increase in the inflation rate will end for a time. Not just in
one area that assesses inflation, but in all areas of our economy, such as food, fuel,
metals, real estate, clothing, and many more. This inflation rate affects the life and life of
all Filipinos.
2. Failure to fully develop the agriculture sector
Because government doesn’t prioritize the farmers that producing the foods for
the locals. They are more focus on important goods that on their own. Agricultural lands
are being developed as industrial areas, shopping malls and subdivisions. The farmers
want to work more on cities or other countries to gain more opportunities that can help
their families. Schools wasn’t offering more agricultural courses. Climate change is also
an important challenge as its adverse impacts such as increased flooding incidence,
drought, soil degradation, water shortages and increased pests and diseases constantly
threaten agricultural output and productivity.
3. High levels of population growth
Poverty is believed to be the leading cause of overpopulation. A lack of
educational resources, coupled with high death rates leading to higher birth rates, result in
impoverished areas seeing large booms in population. Overpopulation in the Republic of
the Philippines is believed to cause sustained poverty and poor economic growth among
families by depriving them of the financial resources that are required to secure education
and adequate health care for their children (Christina Allave, 2005). They lack of sex
educations especially the teens and provincial or ethnic groups. Poor Contraceptive Use,
though the availability of contraceptives is widespread in developed countries, poor
planning on both partners’ parts can lead to unexpected pregnancies.
4. Weakness in employment generation and the quality of jobs generated
Jobs are available only for those who have experienced. Fresh graduates need to
find backers first or they are planning to leave the country since the minimum wage is not
enough to feed their families and pay their bills in everyday life. The crime rate will be
higher because they thought doing those bad things will be the only way to feed their
families. Unemployment usually leads to a loss of income. This is pretty obvious since if
one does not work, he would naturally not be able to get any income. On the individual
level, this is not so serious, but on a larger scale, this can be very problematic.
5. Poor Infrastructures
Infrastructure plays an important role in this development process. Insufficient
infrastructure has been a major constraint to economic growth and poverty reduction in
the Philippines. Though the country has relatively high access levels to water, sanitation,
and electricity, service levels have failed to keep up with rapid population growth and
urbanization. Infrastructure development in the country is hampered by a poor business
environment; weaknesses in planning, coordination, and financing; and a decrease in
private sector involvement in infrastructure provision. The report presents a road map
which will help spur the expansion, and improvement of infrastructure services, and
move the country into a virtuous circle of growth and development. It suggests that, in
order to ease infrastructure constraints, the Philippines need to achieve a gradual increase
in infrastructure investments to at least 5 percent of GDP, and an increase in the
efficiency of spending.