Philippine Industrialization

Analysis and Opinion

By Karl Garcia

Let us look Philippine industrialization — after our recent look at agriculture.



ASEAN integration was a measure intended for a level playing field in terms of development.

The trade war showed us the ugliness of imposing high tariffs all in the name of protectionism.

The said trade war and other reasons made companies move away from China to our ASEAN neighbors, namely: Thailand, Vietnam and Indonesia.

Now the ASEAN integration plan has to be recalibrated or reconfigured for apost COVID era.

Why are we not ready for integration? Our industrialization failed to to launch.




Is it because of our Filipino-first import substitution? Why is this inadequate? We jumpstart by leapfrogging a frustrating agricultural development to the service sector, bypassing manufacturing.

By trying to reverse the perceived and actual mistakes of import-substitution industrialization, we actually removed almost entirely the Filipino value-added in manufactured goods. Now, even a pen is imported.

In our export processing zones, we import all the components, assemble them, then we export them. Is that what we really want for our manufacturing sector? First we achieve industrialization then export industrialization.



Before we reach for the stars, we first shoot the moon. I made that up; I am tired of saying baby steps.

We should not look far and look at BJ Habibie. He was Suharto’s man in terms of R&D due to his Aerospace background. When it was his turn to lead, he started to form Indonesia’s aircraft industry, Military-Industrial Complex, and the rest of Indonesia’s industrialization.

In one of his articles, Joe suggested we have a Military Industrial Simplex. Though simplex method has to do with operations research, that is not it. It simply means to keep it simple and not make it complex.

What if we go that path, have a military industrial complex to jump start jobs?

but in order for a Military Industrial Complex to happen, we must have:

  1. Technical know-how
  2. Manufacturing base
  3. Demand
  4. R&D capacity

We go the way of licensed production or manufacturing. But wait, that is what we are doing in our car manufacturing and everything else in the export processing zone?

It is just a matter of:  if we are going to do it, we do it right.

We do the manufacturing for foreign companies but with more Filipino-value added into it and aside from assembling their products, we buy their R&D expertise (including on-the-job training in steroids).

Then we have ship building. Let us all think post pandemic even if it is far from over.

For this to happen we need more Naval architects and Marine Engineers. Most come from Cebu and some maritime schools in Manila. Our major universities should offer this. Perpetual University has a program, but they offer it for seafarers. They must offer it to potential shipbuilders.


Since unlike India, which attempted to reach for the stars by shooting for the moon, they will actually do that. Ours is still in the concept and mental model stage. India is not yet the heir-apparent to China, but we must learn a lot from her and that is to include her history of industrialization and deindustrialization.

Abaca is grown in the Philippine but others make composites out of it – Aerospace industry for instance. Filipino fashion brands and designs are into sustainable fashion.




For us to go way past the concept stage, we rely on our legislators to the translate our concepts to action plans and if we do not get our way we go to the Supreme Court.

Forget our forgettable ways of doing things! We are here to explore what can be done if we follow the Licensed manufacturing route.

  1. Insert Art into STEM to make it STEAM to lure aspiring Liberal Arts majors.
  2. Inject Production and Industrial engineering to all STEAM courses.
  3. Have Naval architecture and Marine engineering in all major Universities.
  4. We could benchmark from our fellow developing nations who made it big in their own way, like 20 African startups which used Japanese Venture Capital investments to help them with their success, and Romania where its internet speeds are the envy of rich nations.
  5. To add Filipino value-added in terms of knowledge we could have TESDA and the Universities partner with foreign MNCs to provide continuous training for all workers, but concentrate on training the trainers.
  6. For raw materials, we follow Ghana’s lead in recycling  and repurposing Electronic waste; all we need to do is have mining experts to do the landfill mining. Those that are not electronic waste can be taken by power plant operators and have a wte plant near their power plant. If co-firingwould not work, then co-location. Another use for wastes are co-processing for cement plants.


In our intent to be nationalistic, we resorted to import-substitution industrialization. We are a reactive lot and we tend to overreact to change perceived mistakes. We removed the Filipino value-added and just assembled then exported.

Moving forward, we should not shortcut our development. We should not abandon our Agricultural development and bypass our Industrial development and just rely on the Service sector. Regenerative Development must not just be another buzzword in this time of Climate Change denial and pandemics.

We cannot isolate ourselves from our neighbors because we also need their investments and assistance for that, good public and corporate governance from our leaders and full responsibility from us citizens.


89 Responses to “Philippine Industrialization”
  1. Karl Garcia says:

    I failed to thank Irineo in the article but he knows I am aporeciative of his mentoring.

  2. Karl Garcia says:

    License manufacturing it is both good and bad.
    Bad if we get accused of reverse engineering the technology we were given acceess to like what happened in China where tgey got accused of stealung US technology.
    Good if we develop our own indigenous industrues with the technology, I guess as long as there is good faith like asking permission to use the technology.
    The purpose is near to full or full self reliance.
    Filipino first is important, but we must be competitive so we can be proud of made in the Philippines.

    • Karl Garcia says:

      * stealing US intellectual property and technology.

      • Indonesia licensed and then did LEGAL, PAID technology transfer especially from Germany where Habibie did his PhD and even was a VP of MTU for while. MTU makes turbines for ships and I think propellers for aircraft. Could be that Germany still supplies turbines and propellers as these are not easy to make. Just like if you look at jet engines of passenger jets, most are either Pratt & Whitney or Rolls-Royce. If you steal from or cheat your suppliers in any kind of way, you destroy the business relationship and lose them. Germany also did license production and technology transfer (and continuous partnership) with Spain (the Philippine Air Force has its CASA/Airbus transport planes from there thanks to PNoy, but the engines and other stuff might be from Germany) and Turkey as far as I know. Medium-sized countries as partners are strategically better for such stuff with the Philippines as large countries don’t really need very small partners that much. Possibly even Indonesia could be a good partner for the Philippines today as they are quite far. Just some ideas.

        One further aspect is the legal and political system in the Philippines. The NAIA3 and Dengvaxia debacles are another example of how NOT to keep foreign partners.

        • Modern Filipino jeepneys could best be done by partnering with Japan (training, license production, eventual technology transfer then keep buying electronics and motors from them while building the rest) rather than buying wholesale from wherever, for instance.

          • I have also mentioned Filipino-made tablets as a good idea to be able to strengthen online education NOW NA during the pandemic. Rwanda now produces own mobile phones – R1.

            Ideal partners for ramping that up (still buy the microprocessors from them at the end of the cycle as chip manufacture is a very high technology) could be found in Taiwan (Acer) or Sokor (Samsung). Japanese investors to ramp up the Philippine Internet up to speed.

      • kasambahay says:

        thanks for the link po, Karl G. methink, china is no longer a developing nation but a highly industrialized one and still continuing to call itself ‘a developing nation’ maybe to avail as ever of the many international aids and handouts destined for developing nations.

        the greatest carbon emission country in the world: china, has copied much of what it has been lent, rented, and borrowed. even the recent tunnel borer china rented from germany, the borer that digs underground pathway for trains to go through, did not escape undue chinese attention. china has successfully replicated the german borer and ironically, ousted and outbidded germany to win swedish contract to dig new underground tunnel in stockholm. further talk is if china continues on unabated, many european citizens will lose jobs, their economies tanking.

        scary, utterly.

        • Karl Garcia says:

          The Dutch giant air purifier which they tried to copy did not work and they just blamed the Dutch inventors and not their air pollution that no giant vaccum cleaner can clean.
          They can still try the pwit ng baso features because they claim that the carbon from air can be transformed into jewelry.

        • Mike says:

          @kasambahay, “further talk is if china continues on unabated, many European citizens will lose jobs, their economies tanking”, i call this opportunities for the West to improve.

          • kasambahay says:

            cheers, Mike. the west can improve enormously so true, kaso, in the west politics has replaced morality and china is out pandora’s box.

            • sonny says:

              The Covid distancing will work in our favor, i.e. international infection. It will help our autonomy greatly, physical separation from foreign infection.

  3. Karl Garcia says:

    Typo in the article- apoligies.

    • No prob. I found a lot of typos and bloopers in my trilogy long after it was published.
      Those who find them can take them home and put them under the Christmas tree (joke).

      As Joe often makes clear, everything is a process. Perfection is paralysis so we keep going.

  4. Two things I must add: – Jokey Arroyo’s daughter Maoi, a Pisay grad ramping up Philippine biotech – Metalworking at DOST, a project started in the time of PNoy and key to the development of the Filipino-made train for PNR routes, and the unfortunately abandoned DOST AGT (automated guideway transit) project. Proper metalworking skills (modern skills) are essential for industrialization. Nothing so far on composites but that would be the next step, make own composites out of abaca and pineapple fibers.

  5. NHerrera says:

    Thanks, karl. A good second topic, following the previous agriculture item, to what looks like a series on PH economy-related topics. Keep on writing!

    • Karl Garcia says:


    • kasambahay says:

      keep on writing, sabi po ni NHerrera, so trueeee! the internet has made writers, editors, opinion makers, shakers and blasphemers of all of us. as well, the internet has given us a much wider playing field, instantaneous and exponential. superhighway is open to one and all at all times of the day and night, ability to engage is main requirement.

      I say blasphemers kasi the god of cyber space is not easy to please at times, and keyboard deity is connivingly so.

      the ignorant is so emboldened whereas the intelligentsia is full of self doubts, that’s the internet for me.

      keep on writing!

  6. NOTE: San Pedro Relocation Center National HS is training metalworkers in cooperation with Germany. The skills can certainly be utilized in building own industry, even if many of them will work for German firms in the Philippines and the best might migrate. This is part of K-12+ TVET (TESDA Senior High) – more of this is vital to have the skilled workers for industrialization. Another aspect is polytechnic universities and engineering schools.

  7. A Zoom conference at the Museo Maritimo on maritime culture (Prof. Xiao Chua), maritime laws, maritime education for kids including showing Moana.. interesting in the context of Karl’s stuff on reviving shipbuilding as a Philippine industry of its own. Live now and will certainly stay replayable.

    • Karl Garcia says:

      I watched a little and I think I alrrady heard him speak circa 2006 +- in one of the balanghay series of lecturers this one was sponsored by the backer of the Mt. Everest climbers.
      In that lecture my dad shared a bit on our maritime culture and asked a question why majority of Filipinos during his youth do not know how to swim.

      • Karl Garcia says:

        Maybe I am wrong but there were young and old historians and museum people there.
        Going back to the zoom conf
        He said if there is internet today that interconnects the Philippines, back then there were boats to intercomnect the archipelago and the world.

        If we were landlocked we could have been a divided nation, but with the boat as our main means of transportation, our islands were more connected than as perceived.

        Back then there were no horses, but the caravans from Pangasinan had pre-hispanic evidences of existence. Maybe that was how goods were transported to those far from the water network.

        • karlgarcia says:

          I am amazed and amused that a mentor and a mentee experts havevdifferent schools of thought for the Aystronesians, the teacher said Austrinesians started from Suku and the Celebes and the student expert said, Austronesians came from Taiwan.

          Whoever is correct, I think both said we brought boatmakung tech to China and China brought it to Europe. I wonder if the ancient Greeks have documented this, this could be big, imagine the mythological Odysseus had Austronesian ship designs, I don’t know.

          LCX asked aloud how the Austronesians reach Madagascar and maybe through UFOs.
          Never underestimate the capabilities of our ancestors, their navigational skills could have been superb, they have their own ways to read the stars, etc.

          • Well, in terms of timeline it is possible. Trojan war is estimated around 1200 BC and the Austronesian expansion was somewhere between 3000 and 1500 BC.

            Also, the first time early humans were hypothesized to have crossed open sea was the Flores Strait in Indonesia which has strong currents. Read that somewhere.

            I will ask Prof. Chua what material he has on that.

            • He said he didn’t imply that boats were invented by Austronesians. It is about navigational knowledge. Tsaka I see two possible ways it spread (kasi he showed me something about the maritime trade route between SEA via India to the Arab world) – baka via India or via China. Anyhow I read as a child in a popular science book (an American one) that the magnetic compass was a Chinese invention.

              What is also interesting is that the Phoenicians (whose syllabic alphabet was the basis for the later Greek alphabet from which all European alphabets evolved, but also the Jewish and Arab syllabic alphabets) were the first IN THE MEDITERREANEAN to strike out to sea, if I remember correctly.

              Plus you have the ancient civilizations of Harappa and Mohenjo-Daro (Indus river) which were barely or not even mentioned by the Greeks (their known world ended somewhere in the Persian Gulf) – so is it possible that the Phoenicians got their technology from Persian Gulf people who in turn got it from elsewhere?

              The thing is – there is so much we don’t know.

              Karl’s point about Madagascar via LCPL_X is valid. How do we know how advanced the (most probably oral so not recorded) navigation skills of Austronesians of old really were? No need to hypothesize aliens like Däniken and possibly also LCPL_X.

  8. karlgarcia says:

    off topic: another zoom conference: foreign influence operations: potential impact on the 2022 elections

  9. karlgarcia says:


    I saw your dad questioning my credentials.

    One thing I am one with Benign0 is his peeve for credentialism.
    I am a nobody
    I spent 7 years in College…..
    There is no need to post your CV in any comment box, here or in socmed.

    If your dad only reads experts then so be it.
    It is unfortunate that he needs to know the qualifications of a writer of an article.
    I am disappointed and quite upset.
    But I will get over it.

    • Hehe, I am not really surprised. My father often refused to talk to me about history because I was not qualified, but I always kept up with stuff, reading the books in his library (now donated to La Salle University), remembering what he made my brother and me type in return for his co-financing our first PC in Germany, all of that. That is simply the way a lot of the old generation academics in the Philippines are, so I talk more with Xiao Chua.

      BTW I spent 8 years in university for a course which is minimum 5 years and normally could be finished in 6 years, but I was not a full-time student and worked a lot on the side due to financial reasons – but I gained my practical spurs in computers with my “gimik”.

      My father admires Bonifacio who was also self-study, how’s that for contradictions? Hehe.

      • karlgarcia says:

        Now, I got a taste of what you have been telling me about him, and that was just one question from him and I was already …..
        Oh, boy.

        • As Kant said, “habe den Mut, Dich Deines Verstandes z u bedienen” – maglakas-loob kang gamitin ang pag-iisip mo; have the courage to use your capability to reason. The only thing that counts for me is whether what people say and write is based on facts and makes sense to me – not the credentials. Having studied something is good but working one’s way into something with corresponding diligence can come close, match or even exceed those with credentials – it is like there are IT experts without a computer course but sound work.

          • Karl Garcia says:

            Like you.

            • Well, actually informatics is the only thing I am really trained for, history is a hobby only but my mother say my articles have reached journalistic level (not academic level) yet which is good enough for me, I leave the true research to those I tap as sources of information.

              But I know a computer pro here in Germany who has NO university course at all, just vocational programmer’s training, and he is better than me. And your two articles here are sound work, an excellent summary of matters understandable to us here, so no worries.

              • Karl Garcia says:

                Thanks bro!

              • NHerrera says:

                Hear, hear!

                I believe the private sector in the PH values actual work accomplishments more than credentials compared to the public sector — excluding those elected in the Presidency and the Legislative Branch. [So much the better, of course, if one has both.]

              • In Germany credentials (and length of study) do matter for the bigger and traditional companies, which is why my career there started in a Munich IT start-up that grew bigger.

                But whether you come into a start-up or a big company you have to “let your pants down” at some point (I know medyo bastos ang connotation niyan) and perform. Well there are of course the political types but at least they have to sell for targets or have units that deliver.

                I know a man who started with me at the same start-up, a chemistry student who didn’t finish his course, but he performed well, always knew his way out of difficult situations and as a problem-solver he is now a top manager of a major firm with global reach.

              • karlgarcia says:

                PHD ko from Youtube University, Google scholar, researchgate,etc.

  10. Karl Garcia says:

    I am very thankful that Joe allowed the comment section to be back at least for my two articles.
    Irineo on your next articles, I hope you opt to open the conment section as well.

  11. karlgarcia says:

    COVID did make localization of many th8ngs happen like human response, livelihood projects
    We maybe in survival mode now, but we must go beyond resilience and overcome.

    DOST, must partner with the other agencies like DTI and DOTR.
    The hybrid train, the train bus, are they only for display, why can’t we go to the next level of producing them.
    Always the crab excuse and other excuses. If we convert all the excuses to actions then we could have gone very far.

    Abaca now used in PPEs we must find a low cost way of doing it, what we see now is the present administration blaming the previous one for having over priced PPEs.
    Our investigations only lead to controversy, and come next controversy it is already forgotten.

    If the fertilizer scam investigations provided action plans, things could have should have would have
    Also the PDAF,DAP, and all of them.

    • kasambahay says:

      I’m rethinking the crab po.

      the much maligned crabs, I got to observe them at close range and gotten new idea. in a container full of bristling live crabs, it was heroic of crabs to form a semblance of pyramid, wonky, slippery with the base changing often and after much scrambling and pushing, a crab reach the top, out of the container and into freedom.

      and the crabs did it again, form yet another wonky pyramid with another crab reaching the top, out the container and into freedom.

      and when there were enough crabs outside the container, there were more scrambling and pushing and the container was inadvertently brought down. and all crabs still in the container scrambled out to freedom.

      the traditional thought of crabs being crabby no longer holds much water to me. nag-iba ang tingin ko and if I have to bring down a crab, I would have to be a crab too.

      and speaker velasco is learning crablike, i.e, if he makes the effort and reads the pyramid correctly, he’ll reach the top too. much ado about adobo at nabuwag ang ‘kaldero’.

  12. Karl Garcia says:

    I keep on pushing for landfill mining not only for WTE, but also for materials recovery.
    Aside from plastic, there are plenty more like scrap metal( ferrous and non ferrous) construction and demolition debris, wood waste,etc.
    This can minimize mining and quarrying.
    The woodwaste can produce paper, engineered wood, add some plastic and you have wood and plastic composites.
    of course you coprocess some for cenent making.
    Inalready talked about electronic wastes and turning waste to gold, etc.
    Sky is the limit, and with our consumerism we will make this sustainable.

  13. karlgarcia says:

    Click to access PB%202008-06%20-%20Creation%20of%20Ecozones.pdf

    “During the past three decades, there has been a paradigm shift from import substitution strategies towards export‐oriented industrialization. It is in this context that countries saw the need to create special economic zones (SEZs) and export processing zones (EPZs), so‐called ecozones, to cope with the increasingly competitive environment of the global market.
    These ecozones are viewed as special enclaves, wherein firms, usually foreign ones, are supervised outside the normal customs barriers and thus enjoy favored treatment with respect to imports of intermediate goods, taxation, and infrastructure. In addition, these firms are generally free from industrial regulations applying elsewhere in the country. These privileges are subject to the conditions that almost all output is exported and that all imported intermediate goods are used within the zones or else re‐exported (World Bank, 1998).
    As a policy instrument, the creation of ecozones has three goals. First, they are to provide a country with foreign exchange earnings by promoting non‐traditional exports. Second, they are to create jobs, provide for a standard quality of management and facilities, and thus generate income. Lastly, they are to attract foreign direct investment, engendering technology transfer/knowledge spillover, demonstration effects, and backward linkages (Balasubramanyam, 1988).”

    We all know that we are just assemblers, we could do more, much more.
    Some of my proposals were mentioned here abouth tech transfer, backward linkages..

  14. Leaving some infos on ancient maritime routes here: (some it has to be verified of course)

    The Malay race (which included the Javanese people, Sulawesian, Filipinos and other sub-group from Eastern Indonesia, minus the people from Irian region) from Nusantara is already accomplished sailor since at least 1500 years B.C. During that era the distribution of kapur Barus already reached ancient Egypt.[52] The Malays developed tanja sail several hundred years B.C., which influenced the Arabs to make their lateen sail and the Polynesians to make their crab claw sail. It is an invention of global significance, because of its ability to sail against the wind.[53] They are also made jong sail (junk rig), and by the 2nd century, the junk rig has been adopted by the Chinese as their preferred type of sail.[54][55]

    Malays also reached Madagascar in the early 1st millennium AD and colonized it.[56] By the 8th century A.D., they already reached as far as Ghana, likely using the outrigger Borobudur ship and the perahu jong.[57] A Chinese record in 200 AD, describes the K’un-lun Po (meaning “ship/perahu from K’un-lun” – Either Java or Sumatra) as being capable of carrying 600-700 people and 260-1000 tons of cargo.[19][20] In 945-946 the Malays of Srivijaya or the Javanese of Medang[52]:39 attacked east Africa, over 7000 km away. They arrived in the coast of Tanganyika and Mozambique with 1000 boats and attempted to take the citadel of Qanbaloh, though eventually failed. The reason of the attack is because that place had goods suitable for their country and for China, such as ivory, tortoise shells, panther skins, and ambergris, and also because they wanted black slaves from Bantu people (called Zeng or Zenj by Arabs, Jenggi by Javanese) who were strong and make good slaves.[58]

    The region around the Indus river began to show visible increase in both the length and the frequency of maritime voyages by 3000 BCE.[14] Optimum conditions for viable long-distance voyages existed in this region by 2900 BCE.[15] Mesopotamian inscriptions indicate that Indian traders from the Indus valley—carrying copper, hardwoods, ivory, pearls, carnelian, and gold—were active in Mesopotamia during the reign of Sargon of Akkad (c. 2300 BCE).[1] Gosch & Stearns write on the Indus Valley’s pre-modern maritime travel:[16] Evidence exists that Harappans were bulk-shipping timber and special woods to Sumer on ships and luxury items such as lapis lazuli. The trade in lapis lazuli was carried out from northern Afghanistan over eastern Iran to Sumer but during the Mature Harappan period an Indus colony was established at Shortugai in Central Asia near the Badakshan mines and the lapis stones were brought overland to Lothal in Gujarat and shipped to Oman, Bahrain and Mesopotamia.

    Archaeological research at sites in Mesopotamia, Bahrain, and Oman has led to the recovery of artefacts traceable to the Indus Valley civilisation, confirming the information on the inscriptions. Among the most important of these objects are stamp seals carved in soapstone, stone weights, and colourful carnelian beads….Most of the trade between Mesopotamia and the Indus Valley was indirect. Shippers from both regions converged in Persian Gulf ports, especially on the island of Bahrain (known as Dilmun to the Sumerians). Numerous small Indus-style artefacts have been recovered at locations on Bahrain and further down the coast of the Arabian Peninsula in Oman. Stamp seals produced in Bahrain have been found at sites in Mesopotamia and the Indus Valley, strengthening the likelihood that the island may have acted as a redistribution point for goods coming from Mesopotamia and the Indus area….There are hints from the digs at Ur, a major Sumerian city-state on the Euphrates, that some Indus Valley merchants and artisans (bead makers) may have established communities in Mesopotamia.

    • With Wikipedia of course one has to recheck the sources, and I find the comment about the Bantus quite racist, so I wonder who wrote that. Anyhow it is interesting that the Malays even attacked Africa, not just that Austronesians reached Madagascar.

  15. Karl Garcia says:

    With our maritime culture the proponents of reviving the nautical highway was correct, but the inter river commerce during this times of polluted rivers and Dams would be difficult. But imagine goods from Rizal and Laguna reaching Manila and vice vice versa, faster than before is one good reason to unleash our maritime culture.

    I have mentioned the caravan, because of the lack of farm to market roads it may be the most feasible way for some farmers to reach their market.
    Our priorities are more highways for more cars for people with no garages.

    Logistics is very important, we must do all things necessary to improve this before another shortcut to modernization is done

    Another summation.
    We not only have poor farmers, we have poor bussinssmen too who are also debt saddled too and the proposed solution, write off their debts so that banks can lend more.Good, bad and in between.

    • sonny says:

      Karl, the coast from Sarangani Bay going up to Cotabato is peppered with points that can be utilized as ports for transports; same with the coast from Lingayen Gulf going up to the Ilocos coves (i-looc = cove) also for suited for ports and transport. These are part of the patrimony of the country which will be compromised if “we” are not careful. 😦

  16. karlgarcia says:

    Even before the ash-fall, the concept of ecobricking is being encouraged one is you stuff a soda bottle with plastic and you can do many things with them like temporary furniture, etc.
    But the other one id you mix plastic with concrete.
    During the ash fall people made ecobricks by mixing waste plastic to the ash, and added some more materials to it. I guess once the ashes run out, he can continue with crushed demolished concrete.

  17. karlgarcia says:

    Coca-Cola launched a world without waste program. They plan to recover all bottles by 2030.

  18. karlgarcia says:

    CEMEX and Unilever already have a partnership on coprocessing collected plastic for coprocessing during cement manufacturing., now they made it community based.

  19. karlgarcia says:

    Another cement firm Lafarge Holcim is also into co-processing through its Geocycle program

    More on this on my article about Regenerative Development.

  20. Karl Garcia says:

    Roadmaps must go beyond a single admin.

    AI can be applied to Agri manufacturing and services.

    • The PFM ( is something that started during the time of GMA and continues until now. If we include the Procurement improvements initiated by Diokno the first time he was DBM Chief we can even trace the PFM to the time of Erap.

      Other than that I know of no sustained program in government across administrations.

      Maybe TSOH can remind me?

      That tells me Karl that we need to plan for two things. road map that only looks at the next 5 years and with no expectation of follow-through for the next admin and the other is how did the pfm succeed.

      I am ready to call Universal Healthcare and K-12 as the next successful inter administration programs only if it gets the support I needs.

      I feel the K-12 and Universal Healthcare program lost support during this administration as it focused on the Build Build Build program that unfortunately failed due to the bureaucracy.

      • Karl Garcia says:

        Now that anti red tape is being rushed. Thanks Gian

      • Karl Garcia says:

        Marcos’ Major Industrial Projects idea went pfft because poor stewardship from DENR corruption that lead to illegal logging, irresponsible mining etc. Wallace has this to say.

        “Integrated industries still make sense and the Department of Trade and Industry is reviewing them with “Roadmaps,” some 50 of them. Not all cover the full line from start to finish; some are just those where potential advantage is seen that can be developed. And it’s a good idea. But what the Philippine government has never been short of is ideas; what it has been very short of is the ability to convert these ideas into working reality.

        I’m willing to withhold judgment this time, but with considerable skepticism. Already the DTI has said it can’t proceed with further studies because it has no funds. Here we are talking of concepts that could add billions of dollars to the Philippine economy, and we’re quibbling over spending a million or two.

        That doesn’t encourage confidence that now will be any different. You don’t make money without spending money.”

  21. Karl Garcia says:

    Securing The Future of Philippine Industries

    • Karl Garcia says:

      Vision of the Industry

      Globally Competitive Manufacturing

      The vision is to create a globally competitive manufacturing industry with strong forward and backward linkages to serve as hubs in the regional and international production networks of automotive, electronics, garments and food and supported by well-managed supply chains.

      Targets: manufacturing contribution of 30% of total value added and 15% of total employment

      Goals and Strategies

      Roadmap for Structural Transformation

      Short-run (2014-2017) Goals:

      maintain competitiveness of comparative advantage industries
      strengthen emerging industries
      strengthen capacity of existing industries
      Medium-run (2018-2021) Goals:

      shift to high value added activities
      investments in upstream or core sectors
      link and integrate manufacturing with agriculture and services industries
      create a manufacturing innovation ecosystem
      Long-run (2022-2025) Goals:

      continue technology upgrading to maintain a globally competitive and innovative manufacturing industry

  22. Pineapple leather is made by a Spanish firm from Philippine pineapple fiber:

    Abaca is used in automotive:

    Value added is always more profitable than just exporting resources and importing finished goods, but of course it needs enterpreneurs willing to invest

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  1. […] mess that is the Philippines today, starting with the barangay and continuing with agriculture and industry. My role has been big-picture analysis and in the beginning the occasional provocation to open […]

  2. […] have value-added, high-quality products are less dependent. Karl has written about agriculture and industry in previous articles. Regenerative development is significant for health and agriculture […]

  3. […] which has been very successful in modernizing thanks to Dr. Habibie who Karl mentioned in his industrialization article, one wonders what the hell the Philippines isn’t doing. There are attempts to get […]

  4. […] and then first priority when these three priorities are fixed could be building proper agriculture, industryand innovation. Possibly projects in the area of disaster preparedness could be a national priority […]

  5. […] Building a nation is a long process and it takes time. Some sectors like the left lament the persistence of Neoliberal policies and some Marcos era ills that remain. For Economic Development, this author tried to figure out what could be best from my MMT series 1 and 2, Philippine Agriculture and Philippine Industrialization. […]

  6. […] class but that is transitory if not used to ramp up one’s own innovation. Just as an own stable industrial base and productive agriculture are […]

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