Factors included the series of oil crisis which raised the cost of imported oil from only $3 per barrel in the last of the good old days to around $35 per barrel before the end of the 1970’s and to an unprecedented peak of $55 toward the remaining few years of the last century. The second adverse factor which comprised mainly of the internal political turmoils like the Muslim rebellions in the mid-70’s after the declaration of martial law and then another armed uprising from another Muslim group opposed to Nur Misuari in the latter part of the 1990’s plus the return of the communist dissidents under the NDF/NPA insurgents to wage guerilla warfare against government forces sapped the nation’s precious resources.

There is a solution, however, over the medium term, if not the short range, to the Philippines’ problem of how to compete in a low-cost labor market. It requires bold action than what the average politician in this country will consider as independent. President GMA has announced it earlier or before she got elected to remain in the presidential chair of a full six-year term in the 2004 national election as the first major fiscal reform designed to streamline the bureaucracy and have billions of the people’s money which will otherwise continue to go to waste instead of being invested in more productive projects that will build up the economy on more solid grounds.

The fiscal reform will provide the masses an immediate relief from their high cost of living by bringing prices of food and other prime commodities with the recovery at the same time. A stronger peso and a government that is no longer dependent too heavily on borrowing from foreign as well as domestic sources of funds will bring about a favourable turn in the business climate for the first time in years and likely spire a greater inflow of venture capital from overseas and also generate more invistible funds from the domestic capital market.

From here on, there is certain to be plant that will put more emphasis on building up the countryside and the productive sectors of the economy, such a strategy will assure the people more food supply at more affordable prices not only for domestic consumption but for export. The country will bring down costs of production in other sectors of industry and earn more foreign exchange for the economy.

As costs go down, the Philippines will get to be more attractive to both external and internal sources of capital. It will mean more new investments, more production and exports for a faster growing world market and more new jobs for the growing pool of Filipino labor.

From the production of food and other farm products as the program to modernize Philippine agriculture proceeds, the development will include the creation of other industries that will tap the other rich resources of the country such as the forest, the mines and the seas.

Costs will not only ease further as production of goods and services continues to grow but will remain at competitive levels as the development strategy proceeds and the supply of low-cost labor remains at relatively competitive labor.

This sounds too optimistic and too good to be true, but it would happen as the Filipino worker and entrepreneur team up at this time to make a go of their joint efforts and strategy to build the Philippine economy to a level that will serve the best interests of the common Filipino if they are not happy with the top executive officer.