Why industrialize?

I

NDUSTRIALIZATION is the process of transforming the economy of a nation from a focus on agriculture to a reliance on manufacturing. It is therefore the transitioning from an agricultural base to a manufacturing base. It is not easy to industrialize but given the sorry history and state of the Philippine economy, we need to sit down, ponder well and do it. Here are several reasons why industrialization is important for us:

1. Economic growth: Industrialization stimulates economic growth by creating jobs, increasing productivity and generating higher incomes. By developing industries such as manufacturing, technology and infrastructure, the Philippines can boost its gross domestic product and reduce reliance on traditional sectors like agriculture and services.

We have focused so much on food production, but so far, we have failed, and we will still fail, considering the pitiful state of our politics resulting in a lack of political will;

2. Diversification of the economy: Industrialization allows the Philippines to diversify its economy, reducing vulnerability to external shocks and global market fluctuations. By expanding industrial sectors, the country can develop a broader base of economic activities, making it more resilient and adaptable to changing economic conditions.

A good manufacturing environment can only result in a more stable domestic market which then leads to a greater exportation potential of our local goods; as it is, we have all but killed the fledgling local car manufacturing industry, reducing it to a mere idea rather than reality.

A local jeepney manufacturer unsuccessfully tried to secure financial backing and support from the government but to hibernate its business. Today, we are the major importer of vehicles made in Korea, Japan, the United States and China. Soon we will be importing Vietnamese cars;

3. Technological advancement: Industrialization encourages the development and adoption of advanced technologies, which can improve productivity, efficiency and innovation. This can lead to the creation of high-value products and services, positioning the Philippines as a competitive player in the global market.

We had all the chances to manufacture or at least utilize modern farming machinery and planting to harvesting techniques but we stubbornly resisted. Now there are more hungry people with fewer jobs;

4. Employment opportunities: Industrialization has the potential to create a large number of jobs, benefiting the workforce and reducing unemployment rates. The development of new industries can absorb labor from rural areas, reduce urban migration and enhance the standard of living for workers.

So far, we have projected Metro

Manila as the country’s major business hub, only to earn the shameful moniker “Imperial Manila.” This is a sarcastic remark from the underdeveloped regions, a very dangerous feeling of resentment which leaves the gates always open to the never-ending and tiresome graft and corruption;

5. Infrastructure development: Industrialization requires significant infrastructure development, including transportation networks, power supply and communication systems. Investing in infrastructure not only supports industrial growth but also improves overall connectivity and accessibility within the country.

Today, there is a whole lot of promise in infrastructure which lays the groundwork for industrialization: airports, bridges, superhighways and connectivity, for starters. This excites the business sector and foreign investors;

6. Trade and investment opportunities: Industrialization can attract foreign direct investment and provide opportunities for trade partnerships. As industries develop, the Philippines can become more integrated into global supply chains, leading to increased trade and investment inflows.

As it is, we are hostage to supply shortages in sensitive components like semiconductors. This is why our car distributors can’t provide vehicles up front for sale — one has to pay a reservation fee to buy a new car, and this is still dependent on the availability of completed units. Come to think of it, why are our brand-new stock vehicles different from the superior stocks assembled in Thailand, Japan, the US and Korea?

7. Poverty reduction: Industrialization can contribute to poverty reduction by creating opportunities for upward mobility, improving living standards and providing access to better-paying jobs. This can lead to a more equitable distribution of wealth and resources across the population.

8. Value-added production: Industrialization will enable the Philippines to move beyond primary production and engage in value-added manufacturing and processing. This allows for greater economic efficiency and the ability to capture more value from raw materials, leading to higher returns and greater sustainability. This is something we sorely lack and need.

9. Economic self-sufficiency: Industrialization can reduce the reliance on imported goods and services by developing domestic production capabilities. This enhances economic self-sufficiency and reduces vulnerability to external supply disruptions and price fluctuations.

10. National development: Industrialization is often seen as a critical component of national development, leading to the overall advancement of the country’s infrastructure, technology and human capital. This contributes to the overall wellbeing and progress of the nation.

The process of industrialization requires careful planning, investment and policy frameworks.

Something that we always fall short of.