GLOBAL COUNTRY REPORT ON PHILIPPINES

Prepared by:Pooja Singh (1005) Komal Patel (1021) Hiren Bhatiya (10 Shailesh Parmar(

COUNTRY OVERVIEW
Geography

Area: 300,000 sq. km. (117,187 sq. mi.)

Major cities

(2007 estimate): Capital - Manila (pop. 11.55 million in metropolitan area) other cities-- Davao City (1.36 million); Cebu City (0.80 million). Terrain: Islands, 65% mountainous, with narrow coastal lowlands. Climate: Tropical, astride typhoon belt.

People

Nationality:- Filipino(s). Ethnic groups: Malay, Chinese. Religions: Christianity and Islam Languages: Filipino, official national language; English, language of government and instruction in education. Education: Years compulsory--6 (note: 6 years of primary education free and compulsory; 4 years of secondary education free but not compulsory).

DEMOGRAPHIC PROFILE
Population 101,833,938 Age structure 0-14 years: 34.6% 15-64 years: 61.1% 65 years and over: 4.3% Population growth rate 1.903% Total fertility rate 3.19 children born/woman

Birth rate 25.34 births/1,000 population Death rate 5.02 deaths/1,000 population Life expectancy: 71.66 years male: 68.72 years female: 74.74 years Infant mortality rate: 19.34 deaths/1,000 live births Urbanization urban population: 49% of total population

ECONOMY

OVERVIEW OF

PHILIPPINE

DP : $188.7 billion . Annual GDP growth rate : 7.3% at constant prices. GDP per capita : $2,007. Natural resources: Copper, nickel, iron, cobalt, silver, gold.

Agriculture: Products--rice, coconut products, sugar, corn, pork, bananas, pineapple products, aquaculture, mangoes, eggs. Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

GDP - real growth rate:

7.6 % (2010) 2011 (1st Qtr) 4.6 2011 (2nd Qtr) 3.4

GDP nominal:

$199.6 billion (2010) $2,123 (2010 est.) 3.3% (2009 est.), 3.5% (September 2010) 7.2% (april 2011)

GDP per capita:

Inflation rate (consumer prices):

Unemployment rate:

Foreign Reserves: US$75.80 billion (October 2011) Industrial production growth rate: 12.1% (2010 est.) External debt : $59.77 billion (30 September 2010 est.) Exchange rates: Philippine pesos (PHP) per US dollar - 42.63 (2011), 45.11 (2010), 47.8 (2009), 44.439 (2008)

ECONOMY OF PHILIPPINES
The

Philippine economy proved comparatively wellequipped. Main focus of Philippines has been to develop employment opportunities and lessen poverty. economic develop because of agricultural products, which includes corn, sugarcane, pineapples, coconuts, bananas, rice, cassavas, mangoes and pork and also eggs, beef and fish. industries are wood products, electronics assembly, food processing, footwear, garments, pharmaceuticals, chemicals, petroleum refining and fishing.

Philippines

Major

INDUSTRY SECTORS
Electronic industry Major electronics manufactures like Intel and Texas Instruments have established their operations in the country. Electronics in Philippines produce 10 percent of the world's supply of semiconductor manufacturing services and 50 percent of the world's production of HD TVs. Textile industry Philippines is also a leading export market for textiles. Textiles exports contributes 4.93 percent of the country's total exports volume. Philippines' availability to textile resources such as natural fiber and natural dye, combined with a skilled and creative labour force allows the country to stay competitive in the world's textile market.

BPO industry The country's BPO market makes up 15 percent of the world's outsourcing market. BPO has contributed US$6 billion in revenues for the Philippines economy in 2008, US$7.2 billion in 2009, and US$9 billion in 2010. Currently, there are about 525,000 workers in the BPO market. SERVICE SECTOR Services in Philippines contributes 54.8 percent of the country's total GDP, and is estimated to grow further as part of its economic development plan. In 2010, it employs 52 percent of the total workforce.

HEALTH SECTOR
In 1999, the Philippines Department of Health (DOH) took a bold step towards improving the performance of the health sector by improving the way health services are being provided and financed. This program of change, known popularly as the Health Sector Reform Agenda (HSRA), is directed mainly at: Expanding effective coverage of national and local public health programs. Increasing access, especially by the poor, to personal health services delivered by both public and private providers and Reducing the financial burden on individual families through universal coverage of the National Health Insurance Program (NHIP).

OVERVIEW OF BUSINESS AND TRADE AT INTERNATIONAL LEVEL

The country is member in several international trade organizations including the APEC, ASEAN and WTO According to Philippine Government data, about 11% of the Philippines' imports in 2010 came from the United States, and about 15% of its exports were bound for America. In 2010, the Philippines was our 30th-largest export market and our 36thlargest supplier. Since the late 1980s, the Philippines has undertaken reforms that encourage foreign investment as a basis for economic development, subject to certain restrictions.

Philippines Trade, Exports and Imports Exports: $37.51 billion (2009 est.); $69.46 billion (2010 est.) Exports - commodities: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits Exports - partners: United States 17.6%, Japan16.2%, Netherlands9.8%, Hong Kong 8.6%, China 7.7%, Germany 6.5%, Singapore 6.2%, South Korea 4.8% (2009 est) Imports: $45.39 billion (2009 est.) Imports - commodities: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic Imports - partners: Japan 12.5%, United States 12%, China 8.8%, Singapore 8.7%, South Korea 7.9%, Republic of China 5.7% (2009 est.)

INDUSTRIES TRADE & COMMERS

Different economic sector of philippines In the Philippines, the 3 largest economic sectors are industry, service, and agriculture, in terms of contribution to GDP. Agriculture The agricultural sector in the Philippines, though substantial continues to decline having contributed only 14.2% of the country's GDP which is the lowest compared to the industrial and services sectors. The agricultural sector is subject to low productivity, low economies-of-scale, and insufficient infrastructure.

Industries The industrial sector is mainly concentrated in the processing and assembly operations of various consumer products Services Over the past years the services sector has shown sustained economic growth and accounted for 53.7% of the country's GDP making it the highest contributor compared to the industrial and agricultural sectors The services sector also employs the highest percentage of the workforce of Philippines.

PHILIPPINES - INDIA RELATIONS: AN OVERVIEW

The Philippines established diplomatic relations with India on 16 November 1949. Seven years after India's independence in 1947, the Philippines and India signed a Treaty of Friendship on 11 July 1952 in Manila to strengthen and perpetuate the friendly relations existing between the two countries

POLITICAL COOPERATION The subjects of ASEAN-India cooperation, cooperation in the United Nations, including climate change and nuclear nonproliferation and disarmament, and emerging regional economic developments were also covered during the consultations.

ECONOMIC COOPERATION Joint Working Group on Trade and Investment This regular bilateral process reviews the status and assesses the progress of the two countries' cooperation on trade, investments, economic, technical, scientific, and technological activities.

Investments Indian investments in the Philippines are mainly in the areas of textiles, IT, steel and Business Process Outsourcing (BPO).

PRESENT TRADE RELATION

WITH INDIA

Major items of Indian exports are: Frozen buffalo meat; rubber; oil seeds; vehicles; iron and steel; residues and waste from food industries; tobacco; pharmaceutical products. Major imports from Philippines are: electrical and electronic machinery and equipment; auto components, newsprint paper and paperboard; animal or vegetable fats and oils; organic chemicals.

(Value in Million US$)

year Export

2005-06 494.66

2006-07 580.98

2007-08 620.32

2008-09 743.77

2009-10 748.77

Import

235.49

166.79

204.54

254.77

313.07

Total trade

730.16

747.77

824.87

998.54

1061.84

PESTLE ANALYSIS OF PHILIPPINES

POLITICAL ENVIRONMENT :

GOVERNMENT AND POLITICAL CONDITIONS The Philippines has a representative democracy modeled on the U.S. system. Administrative subdivisions: 16 regions and Metro Manila (National Capital Region), 80 provinces, 122 cities. Political parties: Liberal Party, Lakas-Christian Muslim Democrats/KAMPI, etc.

Defects in the Political System Continued graft and corruption in key agencies Lack of transparency and accountability in governance Regulatory capture agencies captured by vested interests The weakness of the electoral processes prone to cheating and manipulation of results Dynasties and traditional politics Armed conflict Worsening human rights situation, particularly extrajudicial killings of journalists and activists of the left Apathy or withdrawal from political engagement especially at the national level.

 Political

Initiatives Electoral Reforms. Advocacy for Human Rights Advocacy for Peace and Development Anti-Corruption Advocacy

POLITICAL The 24-member Philippine Senate is elected at large, and all senators serve 6-year terms. Half are elected every 3 years. There are currently 278 members in the House of Representatives, 226 of whom represent singlemember districts. The Supreme Court approved the introduction of 31 additional party list seats in April 2009, in time for May 2010 national elections.

ECONOMIC ENVIRONMENT
`

It has industries that help boosts its economy: textiles, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining, and fishing. The main priority for expenditure is on food, then education and health. Now, part of the expenditure pattern of an average Filipino is to spend a portion of their income on leisure & relaxation. Part of leisure expenditures are the buying of alcoholic beverages.

ECONOMIC ENVIRONMENT
The

accounting system of Philippines is strongly influenced by US and, more recently, by international practices. Financial statements for business organizations must be prepared using the accrual accounting basis.

GNP measures the value of goods and services that the country's citizens produced regardless of their location.

Philippines Monetary Policy The primary objective of the monetary policy is "to promote price stability conducive to a balanced and sustainable growth of the economy (Republic Act 7653). Inflation targeting is focused mainly on achieving a low and stable inflation, supportive of the economys growth objective. This approach entails the announcement of an explicit inflation target that the BSP promises to achieve over a given time period.

 Foreign

Exchange Market in Philippines

The Bangko Sentralng Pilipinas (BSP) maintains a floating exchange rate system. Exchange rates are determined on the basis of supply and demand in the foreign exchange market.

The market-determination of the exchange rate is consistent with the Governments commitment to market-oriented reforms and outward-looking strategies of achieving competitiveness through price stability and efficiency

ECONOMIC RISK IN PHILIPPINES

Clearly the most significant challenge is to continue to strengthen the fundamentals of the economy to ensure sustained high growth that will lead to a sustained decline in poverty. The economy faces challenges of implementing essential policy reforms particularly in areas like tax administration, tax revenue collection, public expenditure management, budget execution and transparency. On the expenditure side, the continued rise in prices resulted in lower consumer spending at 0.8 percent in 2009 from 5.1 percent a year ago.

ECONOMIC ENVIRONMENT
`

It has industries that help boosts its economy: textiles, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining, and fishing. The main priority for expenditure is on food, then education and health. Now, part of the expenditure pattern of an average Filipino is to spend a portion of their income on leisure & relaxation. Part of leisure expenditures are the buying of alcoholic beverages.

SOCIAL ENVIRONMENT The Filipino is basically of Malay stock with a sprinkling of Chinese, American, Spanish and Arab blood.

Hospitality is a common denominator in the Filipino character and this is what distinguishes the Filipino. The Filipinos are divided geographically and culturally into regions, and each regional group is recognizable by distinct traits. The rest of the population is made up mostly of smaller Christian denominations and Buddhist.

TECHNOLOGICAL ENVIRONMENT

With the Philippine's geographical position, close to the IT Meccas Hong Kong and India, the development of new trends and hardware are better reachable and again, more affordable. In this way businesses may offer their consumers more innovative products and services even before it reaches their competitors. The transportation infrastructure is awful, especially in big cities like Manila that suffer from overpopulation where it takes extremely long time to get around the city with the embryonic technology.

On the other side, the industrial areas of Makati city have advanced in technological production and currently account for most of the foreign and domestic production in the Philippines.

Particular areas in Cebu have also shown a move towards a more technological world, like the Asia Park; a place where giant business buildings have recently been created and where you feel far away from the every-day environment.

LEGAL ENVIRONMENT

The Philippines legal system may be considered as a unique legal system because it is a blend of civil law (Roman), common law (Anglo-American), Muslim (Islamic) law and indigenous law.

Statutes or Statutory Law In the Philippines, statutory law includes constitutions, treaties, statutes proper or legislative enactments, municipal charters, municipal legislation, court rules, administrative rules and orders, legislative rules and presidential issuance.

Case Law Jurisprudence or Case Law is cases decided or written opinion by courts and by persons performing judicial functions. Also included are all rulings in administrative and legislative tribunals such as decisions made by the Presidential or Senate or House Electoral Tribunals.

Human Rights The Philippines is a staunch advocate of the promotion and protection of human rights. The country not only guarantees and protects human rights under the 1987 Constitution; it is also a signatory to various international treaties and conventions that protect the rights of all people.

As enshrined in the 1987 Constitution, the government promotes respect for social justice and human rights, including freedom of speech, freedom of expression, as well as the rights of workers, children, women and indigenous peoples.

Customs Regulations Customs is the Government Agency entrusted with enforcement of laws and regulations to collect and protect import-revenues and to regulate and document the flow of goods in and out of the country.

General Provisions All persons and baggage are subject to a search at any time. All articles, when imported from any foreign country into the Philippines, shall be subject to duty and tax upon each importation, even though previously exported from the Philippines.

BIBLIOGRAPHY
www.blblimited.com www.remburssi.org www.economywatch.com www.articlesbase.com www.state.gov www.nationsencyclopedia.com