Making sense of the failure of rapid industrialisation in the Philippines

This paper examines the reason(s) for the inability of the Philippines to achieve rapid industrial and economic growth. The examination is developed against the backdrop of long-term historical evidence provided by early (US and UK) and late (Japan, South Korea, and Taiwan) industrialised economies. Technological capability and productivity (or lack of it) in a few strategic industries lie behind the profound contrasts in performance between the Philippines and the other countries. This finding goes beyond the current debate in the Philippines over trade policies, that is, whether to adopt an open or protectionist regime. I posit that what is needed is a deepened industrial structure produced as a result of innovation and learning, and most importantly, a coherent innovation and production system.