Regional grudge, Manila-centered governance, and economic development

The column of Segundo Eclar Romero, “Healing the Republic from the regions” (5/5/26), tells us about the lingering political grudge and feelings by those in the Visayas and Mindanao, which are shared conviction that the country has for long been governed from Manila, for Manila, and according to Manila’s imagination what the Philippine should be.

It concludes that “Many Filipinos are not angry at the Republic with hate but with impatience. They have waited too long to be treated as co-owners. Until we understand that every election will be a carnival of insult, revenge, and wounded belonging. The southern grudge is not a regional problem. It is an unfinished national reckoning.”

In view of the above, I would like to make a short review of relevant data on the economy which acts as the “lifeblood” of the nation’s political, social, and cultural sphere by directly influencing stability, government popularity, and daily life.

It has been recognized that the agriculture sector is the foundational pillar of the economy, driving growth through food security, employment, and raw material supply for industrialization; and that the industrial sector is a key driver of economic growth; while the service sector is the primary engine of growth in Southeast Asia.

Research indicates that when the variance in the percentage distribution of the workforce across agriculture, industry, and services becomes wider, the rate of poverty reduction is generally lower than when that variance narrows.

In the case of the Philippines, the data on the percentage distribution of the country’s workforce in agriculture (A), industry (I), and services (S) and corresponding variance (V) and population poverty incidence (PPI) are as follows: In 1960: A – 60 percent, I – 12 percent, and S – 28 percent, with V of 32 percent and PPI of 70 percent; In 1994: A – 45, I – 15, and S – 40 with V of 5 and PPI of40.6; In 2023: A – 22, I -19, and S – 59, with V of 37 and PPI of 15.5.

Based on the above data, there is a reduction in PPI from 70 percent in 1960 to 40.6 percent in 1994, or 0.86 percent per year; and then to 15.5 percent in 2023, or 0.86 percent per year. However, without the overseas Filipino workers’ remittances that increased from $3 billion in 1994 to $ 33 billion in 2023, the average rate of poverty reduction could have been lower.

It was under the Ramos administration (1992-1998) that the above-mentioned variance was reduced to 2 percent. There was a concerted effort to achieve development through a comprehensive strategy known as “Philippine 2000.” The approach was to transform the Philippines into a newly industrialized country alongside social equity and stability. But in 1995, the country became a member of the World Trade Organization that promotes comparative advantage, requires rapid liberalization, including lowered tariffs and increased import volumes. This inevitably widened the variance wherein the service sector absorbed the workforce of the agricultural sector which jeopardized agricultural production and productivity.

Edmundo Enderez,

edmenderez@gmail.com