Let us industrialize!

Let us industrialize! | Daily Tribune

After we have built the Desirable Giant, or the middle class, let us industrialize our economy!

The overwhelming majority of our youth hopes that if only our leaders would reallocate the billions currently allocated for flood control to the 45 million MSMEs of our middle class, the Philippines would become the new industrial power in Asia and the Pacific.

This advocates for a phased approach to development, first ensuring a stable and comfortable life for the majority of the 115.8 million Filipinos, before shifting to large-scale industrialization.

While industrialization offers benefits such as increased productivity, economic growth, and job creation, its potential downsides include social disruption, increased inequality, and environmental challenges, making my suggested sequence a cautious strategy towards creating a stronger foundation for broader societal advancement.

Arguments for the approach:

This phased approach suggests prioritizing the well-being of a significant segment of the population before undertaking a major economic overhaul. This can help mitigate potential social unrest and ensure that a broader population benefits from development, rather than just a select few, on the argument that a strong and stable middle class is the pillar of social cohesion and economic prosperity.

Key considerations for industrialization include economic growth and increased productivity. Industrialization shifts economies from an agrarian base to a manufacturing one, leading to increased productivity, a greater variety of goods, and potentially lower prices.

The development of factories and new industries creates employment, contributing to overall economic activity and improved wages over time.

The increased production of goods and services can lead to a general improvement in our quality of life, making more products, housing, and amenities available.

For now, we are counting on our micro, small, and medium enterprises (MSMEs) to contribute to the country’s exportable products in sectors such as electronics, garments, processed foods, and fresh produce, including bananas and pineapples.

Other key exports that involve MSMEs include automotive parts, medical equipment, and a range of manufactured goods. A significant portion of the Philippines’ export earnings comes from electrical machinery and equipment, which includes semiconductors and integrated circuits.

These small-scale industrial productions can be scaled up to large-scale manufacturing for export, transforming our economy into an industrial one.

Historical context:

The Industrial Revolution brought about significant shifts in society, marked by the emergence of a new middle class and a large working class. While industrialization brought greater access to goods and improved living standards for many, these gains were not always immediate or evenly distributed across all populations.

Between 1760 and 1860, technological progress, education, and increasing capital stocks transformed England into the workshop of the world.

The growth of businesses and factories created more jobs. The middle class assumed occupations such as merchants, shopkeepers, and accountants. They were able to take advantage of affordable amenities, such as furniture and clothing.

After 1819, real wages proliferated for all groups of workers. For all blue-collar workers — a good stand-in for the working classes — real wages doubled just thirty-five years later.

Industrialization has played a crucial role in global economic development. The process has improved productivity and enabled mass production. This increased people’s standard of living.