This paper offers a comprehensive competitive strategy analysis on the Philippine economy. It examines the local processes and industries in the light of 2023 economics, and adds insight into possible solutions moving forward with innovation.
The former Philippine President Ferdinand Marcos coined the name "the sick man of Asia", which the title of this paper also refers to. This description was due to the fact that the country, despite having key natural resources, a strong pool of talent, and opportunities to develop, many factors continue to hold it back from becoming globally competitive. The author argues that Marcos' nickname is still relevant today and lists several reasons for why the country has not yet succeeded.
The first part discusses the topic of inclusion, or rather the lack thereof. The concept of inclusion here means the economic gains and opportunities are equally accessible to all citizens. While the Philippines are doing quite well according to their GDP, domestically the country deals with high povery rates and a huge financial split through the society. In the second part of the paper, the author analyzed the impact colonialisation has had on the country and its understanding of trade and import and export. In the last step, the author discusses industries and processes that carry potential and opportunities for innovation.
Table of Contents
1. The Sick Man Can Become Strong: A Paper on Philippine Competitive Advantage
2. People: The Philippine’s Greatest Asset and Opportunity
3. Colonial Mentality: The Hindrance to Innovation
4. Opportunities for innovation: Industries and Processes
4.1 Agriculture
4.2 Manufacturing
4.3 Entertainment
4.4 Education and Research
5. In Summary: Porter’s Diamond
6. Leadership, government, promises and outlooks
Objectives and Topics
This paper examines the paradox of the Philippines as a nation with strong economic growth indicators and abundant natural resources that simultaneously struggles with extreme poverty, inequality, and a lack of global competitiveness. It explores how cultural factors, specifically a "colonial mentality," hinder internal innovation and industrial development, ultimately investigating how the country can transition toward a more inclusive and competitive economy.
- Economic growth vs. inclusive development in the Philippines.
- The impact of cultural values and colonial mentality on national innovation.
- Sector-specific challenges and opportunities (Agriculture, Manufacturing, Entertainment).
- The role of the academe-industry partnership in fostering competitiveness.
- Analysis of the Philippine economic landscape through the framework of Porter’s Diamond.
Excerpt from the Book
Colonial Mentality: The Hindrance to Innovation
If one is new to the Philippines, it isn’t hard to observe that Filipinos love all things foreign. They shop for European, American, Japanese or Korean fashion, they have foreign contractors design their roads and railways, marrying foreigners and having moreno babies is considered a status symbol, and perhaps worst of all is the allure many Filipinos have about leaving their country behind in search of a better life in a foreign land. These are all things to be expected of a country that has been colonized three times over the past 300 years (Constantino, 2008). The Philippines is no longer oppressed as it used to be, but its people are still acting like it. One example of this is the Filipinos’ obsession with white skin, or their lack of assertiveness when it comes to their corrupt government and its flawed implementation of the law (Filipiknow, 2019; Dy, 2018).
It is said that competitive advantage is created and sustained through a highly localized process, and one very important factor that drives this localized process is the sophistication of home demand (Porter, 1990). In other nations such as Italy or Japan, we can see that the unique and sophisticated tastes of its people drive innovation; it not only forces players in the industry to level up their standards of quality, but it also allows them to anticipate buyer demand abroad. This is why Italy is to leather, Japan is to musical instruments and so on. Given the inert colonial mentality deeply embedded in the Filipino culture, it is no surprise that innovation suffers as well. Instead of challenging the firms in the economy, Filipinos just accept what they get and don’t demand for more. In order to move forward, the Filipino people must start demanding more from local firms and their government with conviction that if the foreigners can do it, so can we.
Summary of Chapters
The Sick Man Can Become Strong: A Paper on Philippine Competitive Advantage: Provides an overview of the Philippines' economic status, highlighting the contrast between high GDP growth and prevalent poverty.
People: The Philippine’s Greatest Asset and Opportunity: Discusses the resilience and global demand for the Filipino workforce as a key strategic asset.
Colonial Mentality: The Hindrance to Innovation: Analyzes how historical colonizations have created a cultural preference for foreign goods, suppressing the domestic demand necessary for local innovation.
Opportunities for innovation: Industries and Processes: Evaluates specific sectors—Agriculture, Manufacturing, Entertainment, and Education—and suggests strategic improvements to foster growth.
In Summary: Porter’s Diamond: Applies Porter’s competitive framework to assess the Philippine economic structure, identifying key domestic weaknesses in demand and industry rivalry.
Leadership, government, promises and outlooks: Critiques the current administrative approach and calls for systemic reforms to stimulate a competitive free market.
Keywords
Philippines, Competitive Advantage, Colonial Mentality, Economic Growth, Innovation, Poverty, Porter's Diamond, Agriculture, Manufacturing, Human Capital, Education, Infrastructure, Inclusive Development, National Pride, Government Policy.
Frequently Asked Questions
What is the primary focus of this paper?
The paper primarily explores the factors preventing the Philippines from achieving sustainable, inclusive economic growth despite its potential as a competitive market in Southeast Asia.
What are the central themes discussed in the work?
The central themes include the impact of a "colonial mentality" on industry, the role of human capital, and the necessity for structural reforms in government and research sectors.
What is the core research question or objective?
The objective is to identify how the Philippines can overcome its history and cultural tendencies to leverage its unique natural and talent resources for true global competitiveness.
Which theoretical framework does the author apply?
The author utilizes Michael Porter’s "Diamond Model" to analyze the competitive conditions of the nation’s industries and domestic market.
What does the main body of the document cover?
The main body covers the current economic landscape, the specific hindrances of cultural habits, and provides actionable recommendations for sectors like agriculture, manufacturing, and education.
Which keywords best describe the paper?
Key terms include Philippine Competitive Advantage, Colonial Mentality, Porter’s Diamond, Innovation, Inclusive Growth, and Economic Reform.
How does the author define the "Sick Man of Asia" in this context?
The author uses it as a moniker for the Philippines' inability to become globally competitive, reflecting a historic state of underperformance relative to regional neighbors.
Why is the "Colonial Mentality" considered a barrier to innovation?
The author argues that because Filipinos historically prefer foreign fashion, goods, and standards, there is insufficient domestic pressure on local firms to innovate and elevate their quality.
What is the recommended role of the academe in the country's development?
The paper recommends increasing business-academe research and consultancy partnerships, modeled after Singapore and Japan, to help bridge the gap between education and industrial competitiveness.
- Quote paper
- Anthony Betia (Author), 2023, The Sick Man Can Become Strong. A Competitive Strategy Analysis Paper on the Philippines, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1341985
