Filipino forum. [volume] (Seattle, Wash.) 1928-196?, 1950-07-01
BY DIR. AMANDA M. DALISAY
Executive Secretary,
National Economic Council

tend to deprecate our economic re-
covery and have expressed grave
doubts as to the ability of the Fill
pino people to build up a sound
economic system that will bring
about prosperity and stability for
this country. These doubts appar-
emily stem from lack of informal
ton about the efforts being exerted
by the Filipino people towards re-
construction and development of
the national economy. It is patent
for instance that many are not
aware of the fact that the govern
ment has a definite plan for the
rehabilitation of the economy and
for the development our abundant
natural resources. To those who
doubt, here and abroad, the exist
ence of an economic plan or pro-
gram, we say that a short-term
program of economic development
has been formulated and approved
/ and is now being supplemented
with all the, resources at our COM
mand.
The President of the Philippines,
upon recommendation of the Ma
tional Economic Council, has ap-
proved a short-range program of
rehabilitation an d development
which is calculated to increase ma
terially the national income over
the next five years and yield re-
turns on investment as soon as
practicable. This program has
three-fold objective, namely: First,
to adjust the Philippine economy
to the decline in the United States
government payments and provide
the necessary adjustments to the
progressive application of Ameri-
can tariffs after 1858. Second, to
effect the initial stages in the pro-
cess of structural adjustments nee
essary in the change of the national
economy from sole independence
on export crops to an economy bet
ter fortified against the severe
fluctuations in the demand and
prices of export crops in foreign
markets. And third, to provide for
the reconstruction, extension, and
augmentation of transportation and
communication services SO as to
enlarge the scope and possibilities
of the domestic market and pro-
mote greater regional specializa-
ton in production.
With the financial resources
available and the emphasis on
short-term projects that will be
dollar-producing and dollar-saving
within the five-year period, the
long-term industrial projects which
call for further study could not be
included. It is assumed, of course,
that after a careful study of their
economic feasibility and social de-
STABILITY is made, these longterm
projects could be integrated into
longer-run program of develop
ment that would inevitably follow
the early short-term program.
L llC SiOll-lCIlIl PlOSl dlil P1O-
vides not only for the financing
and development of agricultural
and industrial projects, but also for
the rehabilitation and development
of transportation and communica-
ton, of public works projects, ur-
ban housing, the rehabilitation of
the mining industry, and the re-
vitalization of small miscellaneous
industries, including home indus
tries The financing plan for this
program envIsages a total capital
investment of PIT billion spread
over the five-year period from
1949 to 1853, of which P419 million
are to be allocated among agricul-
tural projects and Pl, 81 million for
industrial enterprises. The finan-
cial requirements are further sub
divided into dollar exchange needs
estimated at SAL million for the
importation of necessary machin-
eryy and equipment, and peso re-
quirements at P348 million for
materials that could be purchased
locally. Estimates have not been
made for the operating capital re-