Nationalism and the Philippine Economy

Abstract

 This paper describes postwar nationalistic measures in the Philippines in the context of nationalism vis-à-vis economic development. The Philippines is an underdeveloped country with a per capita income of roughly $100. First under Spanish and then under American rule, she gained independence in 1946. Not only the influx of Western influences but also the lack of cultural unity and a common historical background make it difficult for the country to determine and develop her identity. Philippine nationalism must be understood within this framework.
 But nationalistic measures have often resulted in a slowing down of economic progress and sometimes proved to be in conflict with the goal of economic development. Such a conflict is not so serious in an economically developed country. But the Philippines has a number of acutely pressing economic problems and can ill afford to maintain policies which act as barriers to economic development.
 Section I of the paper serves as an introduction. In section II, the extent of foreign participation in different sectors of the Philippine economy is described. In section III, first, court decisions on naturalization laws are discussed, followed by a review of nationalization laws. In section IV, the 'special' position of American business is discussed. In section V, nationalistic administrative practices for the promotion of domestic industrialization are examined. The paper concludes by pointing to the conflict between nationalism and economic development and recommending a modification of the present nationalistic policy.