Sunday, May 29, 2011

Philippines faces middle-income trap

Manila Bulletin

MANILA, Philippines — The Asian Development Bank (ADB) just published an extremely valuable document entitled Asia 2050: Realizing the Asian Century. From a first reading of this very well researched study, I came out with two major conclusions.

First, that Asia is not predestined to inherit the twenty first century. Asian leaders and societies can still make terrible mistakes in political and economic strategies and fall into what is called the "middle-income" trap, failing to capitalize on their great potentials for joining the advanced countries in the next forty years. Second, among the Asian countries in greatest danger of falling into the middle-income trap is the Philippines, having already done so in the last thirty years.

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