Scrolling through the different social media platforms, there is a loud debate between those who favor the increase in the peso-dollar exchange rate, and those decrying the consequences of how it will impact on the country’s economy particularly on the inflation of goods and necessities.
Delving more into the Philippine economy, one may confidently say that we may not solely rely on the relation with the United States. However, this is proven to be false. Aside from the local goods, the Philippines does not have its sole industry where it can develop its fast income return, for even if there may be industries in the country that are well-known for its success, they are mostly owned by foreign investors or multinational companies. That being said, we cannot produce basic goods on our own, such as those of oil, transportation, telecommunications, basic metal, and the likes. This makes us think about the prominence of the US in having most of the control in the products and industries all over the world. Whereas, the US is dominant in most of the country’s economic, political, and cultural aspects, ensuring over decades now that they have their hands over strategic companies such as in warfare and most of the goods available in the local market.
At the same time, the US’s economic policies, having the most dominant currency in the world, may not only occur in their borders. Instead, it encompasses and seeps through other countries, particularly, in the Philippines. Even amidst the weakening of the peso against the dollar, does the Philippines have any other choice as to where we can buy our necessities? First in mind would still be in and from the US. However, with the currency exchange of P59.02 (as of this time) per 1USD, we would still have to purchase a product that equates to a dollar, which means that the prices will also increase for low income Filipinos.
While the increase on the equivalence may seem to be a good thing for Overseas Filipino Workers (OFWs) since a dollar of remittance would mean more peso for their families currently residing in the Philippines, the so called benefits would still be gradually scratched out due to the inflation of the prices of the basic commodities that their families would have to budget for. In short, “mataas na padala, mahal pa rin na mga bilihin”.
But with such dilemma, this may also be interpreted as an advantage for local producers and the agricultural sector, for the imported products would be harder to get in, meaning, they would have lesser competition, but with the continued negligence to the foreign affairs, state over our farmers and the agriculture, this will results to the overdependence on imported goods (e.g: rice, sugar, salt, etc.), leading for the local producers to only do so much, and the government would still have to purchase from the other countries.
This begs for us to consider the counter-dependence on national industrialization via genuine agrarian reform–improving our agricultural condition and building industries that will be able to produce our basic necessities, ensuring our economic independence. With that in mind, if only we have a sustainable agricultural system, we can produce healthy and affordable food for the country as they could meet it through the local markets, lessening our dependence on the US. Emphasizing, if we manage to produce and strengthen our own industries, we can then produce affordable basic commodities for the ordinary Filipinos–even for those in the lower side of the triangle.
By then, we would not be needing to maintain our import-dependent and export-oriented passion in the country. Which will mean that we can and will have sustainability without the intervention of international economic policies. Furthermore, peso would no longer need to contend with the dollar.
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