Demographics: Philippines Sri Lanka 4.General Information: Ragion: Southeast Asia Aroa: 300,000 km? Language: Filipino Government From: Presidential Republic Independent since. 1946 Capita: Manila 2Population: Population: 111,047 (as of July 2022) Birth Rete: 19.89% Death Rate: 5.98% Migration Rate: 0.13% 3.Quality of Life: *Values form 0 (oad) to 100 (excellent) Political Stablity: 52 Chil rights: 39 Health: 49 Climate. 48 Cost of Living: 46 4£conomy: Currency: Philippines Peso Unemployment Rate: 2.4% Inflation Rate: 2.4% Cost of Living (100% = USA) : 40.86% Commercial Taxes and Contribution: 43.10% Average Income: 3, 640 USD Corruption Index: 67(bad) 4.General Inform: Region: South Asia Aroa: 65.610 km? Language: Sinhala Govemment From: Presidential Republic Independent since. 1948 Capita: Colombo 2.Populat Population: 22,156,000 (as of July 2022) Birth Rate: 15.25% Death Rate: 6 85% Migration Rate: 1.22% 3.Quality of Life: "Velues form 0 (bad) to 100 (excellent) Poltical Stability: 52 Civil rights: 43 Health: 62 Climate. 57 Cost of Living: 56 4.Economy: Currency: Sri Lanka Rupee Unemployment Rate: 5.4% Inflation Rate: 7.01% Cost of Living (100% = USA) - 30.40% Commercial Taxes and Contribution: 55 20% Average Income'3,820 USD Corruption Index: 63(bad) Reference: https l/www worlddata info/country-comparison shp?country1=LKA&country2=PHLI. Introduction to the comparative analysis: According to economists, Phijppines' sitvation is ‘very different from Sri Lanka — through an online article pubished last May 25, 2022 by Tobias Jared Tomas This was based on the comparison on both of the countries’ Gross International Reserves (GIR) and debts “The Philppine economy grew by 8.3% in the first quarter on track to meet the government's revised 7-8% target this year. ‘If you looke at Philippine date, the Philippines hae outetarding external debt of $108.4 billion and ite GIR 135 of end-March is $107.3 billion,” Mr Beltran said in an e-mail. “We have more GIR than debi. Wie can pay off all of it immediately.” In comparison, Sit Lanka fad @ GIR of $1.6 billion, while its dedts totaled 57 oillion. or nearly 9 times their reserves.” Comparative Analysis - Research Data: Population _| Philippines’ Population: 10 Sti Lanka's Population: 22 | "psilasinesrone Comparison | million million coats thecountrys population | Socanasowaa is just a fith of the ogeveeretogrusth Philippines’ population. Sowmonocon epptodebt | the Phiippines'externaldebtis | theexemaldebtofs5 | 'smasnesnnaze 41 $1084 billion or 27 percent of | billion is around 69 ee the countrys $804-bilion Grove | porcont efits GDP oF se) | Hon sents ie! Domestic Product (GoP). billion roceoangamizo%0 Supply of Foreign | the steady supplyot foreign | on ine otrer nang, tne | sstfntonaalon Exchange [exchanges largely dueto _| loss of foreign exchange remittances from Overseas | earnings from the Flipino Workers (GFWa) and | collapse of tourism and the Business Process exports upon Covid-19 ‘Outsourcing (BPO) — which ‘ond spiking of global fue! reached $314 bilion in 2021, | and food prices. ‘and PO revenuesamounting | viggered the debs crisis te $27 billion while foreign cf Sr Lanka also, cuts in investment has reached $10.5 _| imported inputs bili. disturbed the ‘ogricutural ana Note: Indust! production,The Philippines remainea backward pre-industrial economy as there are millions of Filipinos wno are leaving the country for job opportunities and higherpaying labor. There Is 8PO revenue because so many of our youth provide their labor cheoply in this, no- Value-added work for want of any filipino high-technology industries to go inte. caused chortages and power failure and Increased prices. China Debt Trap- | Only 22% of foreign debt is Foreign Debt | oWved to China, Around 10% of foreign debt is owed to China which includes massive Chinese debt-tunded infrastructure projects. The Philippines peso has lost Just 85% ofits value since the start of the year, from Php 48.16 to Php 52.25 per US dollar. Sri Lanka's rupee has decreased 77% since the start of the year, from LKR203 to LKR360 per US dollar. Conclusion: Sri Lanka's debt is mostly to foreign creditors, which is not the case in the Philippines. Also, Sti Lanka has practically depleted ts foreign currency reserves while the Philippines has gross intermational reserves to cover more than nine months of imports. A three-month cover is already considered good. In fact, the Phiippines has enough reserves to pay out its debts, but retiring them may not be the best use of that resource Second, the Philippine economy is much larger than that of SriLanka. In terms of grass domestic product (GDP), the Philippines is about 12 times bigger, according to sources citing World Bank figures. Plus, the Philippines anjoys a steady flow of foreign currency injactions thanks to remittances from overseas, Fi © Status of the Economy of Both Counties 9 workers or OFWs. Regrettably, Sri Lanka has nothing similar. The economic status of Sri Lanka ranks way lower than that of the Philippines. According to the 2022 index of economic freedom, the philippines ranks an overall 61.1 while Sri Lanka having a score of 53 3 which is considered lower in the asia-pacific average of 58.5. This score is, solely affected by how the government is running the country of Sti Lanka. Not only did their ministers resign but also their president fled the country for his safety which then he emailed his resignation‘* Reason of their Condition/ What Led to their desperate economic situation This is due to Sri Lanka's bad governance with most oftheir ministers resigning in the last month. This has resulted in mass protests, shortages, a broader cost of living crisis, and social unrest With all ofthis happening in the country their president Gotabaya Rajapaksa decided to fiee the country for safety towards the Maldives then proceeded to Singapore where he then emailed his resignation as president. (Kim. A, July 25, 2022) Although the Philippines economic fraadom score is 61.1, which is still above the acia-pacific average of 58.5, this is lower than its previous scora last yaar of 64.1. This is due to their judicial effectiveness and government integrity being weak. In addition to thio, there was also major decine during the covid 19 pandemic which affected the entire world © Foreign Alliance Friendship towards all, enmity towards none.” — since the 1950s, Sri Lanka has followed a non-aligned foreign policy and does not take sides with major powers. Moreover, since the end of the Cold War in Asia, the country built strong relations and seeks to strengthen its iplomatic, economic, and military ties with Ching, India, Pakistan, Russia, the Unitad States, Japan. the European, and forged close ties with member states of the Association of Southeast Asian Nations (ASEAN) African Union, and Arab League Participates in: ‘= Muttlateral Diplomacy in Unitad Nations (UN) ‘= Non-Aligned Movement (NAM) Commonwealth of Nations = South Asian Association for Regional Cooperation (SAARC) © World Bank ‘© International Monetary Fund (IMF) © Asian Development Bank (ADB) ‘* Shanghai Cooperation Organization * Colombo Plan ADVANTAGES DISADVANTAGES ‘© SriLanka’s participation in muttilateral ‘© Since Sri Lanka is a low-income country, diplomacy at the United Nations (UN) the influence and overwhelming promotes sovereignty, independence, and opportunities presented to them does not development match ‘+ The country’s foreign alliances and ‘© Foreign policies makes the country strategic location has long been vulnerable to foreign pressure and recognized to promote greater trade and disregard national sovereignty investment linkages within the region. © Global conficts between allies may affect ‘© This has introduced the expansion of foreign relations and political dferences capacity and development of ‘© Criticisms on the county's domestic and infiastructure projects as intemational foreign policies can cause bilateral investments, tensions,Consequences of their economic decision: 1. The country made only mited headway with strengthening its trade and investment links with the rest of the region — which resulted in a sharp deciine in its overall exports-to-gross domestic product (GDP) ratio. 2. Consequently, infrastructure projects cause the growth of many large infrastructure projects through state-led investment initiatives — ‘mismanagement As mentioned, Sri Lanka owes 10% of their extemal debt to China due to these uncontrolled expenses and expansion 3. Growing tensions between India and the West further pushed Sti Lanka to China ‘and being caught up in the crossfire between major powers in the geopolitical struggles in the Indian Ocean Evaluate how these are compared and feared to happen in our country stating specific transactions, international relationships and agreements. Lessons from Sri Lenke: Why is the Philppines compered to Sri Lanka in the first place? This is because like Sri Lanke, the Philippines have © P12 tilion plus debt problem. Infrastructure loans from China with terms favorable to China: Tourism revenues waylaid by the pander Organic programs codifies into our laws; and A dynastic politics. Ml, Solution Research Data: However, with such similarities, the happenings and economic failures in Sri Lanka can be a teachable moment far the Philippines as the economic prablems can still be reversed by better policies and good governance — before itis too late. Responses. In order to boost employment, speed up the economy's recovery from the ongoing health crisis, and assure sustainable development for future generations, the govermment should raise public expenditure or investments. This is to also further offer good-paying jobs and seta foundation for the working population — not losing Filipino labor to the foreign market. The future administration will need to increase expenditure and may even need to keep borrowing money to fund important projects and initiatives. Paying them back when they're due is a crucial factor to take into account while borrowing, and the loans are invested in intiatives that produce respectable returns. Loans can be a burden on the Philippines if they are lost through corruption or ineffective bureaucratic processes, or ifthey are used to fund populist schemes that do not generate new weatth. It is true that perhaps the private consumer sector, which accounts for around 70% of GDP, is what drives tho Philippine economy. However, customers might not immediately start sponding like they did prior to the pandamic. There may be a tendency among certain households to preserve money in casa the health crisis recurs. Additionally, increasing inflation will probably reduce overell spending. Given these jes, government spending must increase te make up for i.References: ADBI Working Paper Series (June 2014)The role of Sri Lanka in enhancing connectivity between south asia and southeast asia hitps:/\www.adb.org/sites/default/iles/publication/156342/adbi-wp487.pdf Attica, 8. (2022, May 25). PH isn't Sri Lanka. .. yet https:/\www.ibon.orgiph-isnt-st-ianka-yet/ BusinessWorld Online, (2022, May 24). Philippines’ situation is ‘very different’ from Sri Lanka — economists. https:/iwww.bworldonline. comitop-stories/2022/05/25/45064 1 /philippines-situation-is-very-different-from-sr ianka-economists/ Index of Economic Freedom (n.d.).Philippines Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption, https:/Awww.heritage.org/index/country/philippines Index of Economic Freedom(n.d.). Sri Lanka Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption, https:/Awww.heritage.orgfindex/country/srilanka National University of Singapore (n.d.). . Should Sri Lanka Reboot Foreign Policy and the Economy for COVID-19 Recovery? — NUS Institute of South Asian Studies (ISAS). hitps:/\www-isas.nus.edu.sg/papers/should-sri-lanka-reboot-foreign-policy-and-the-economy-for-covid-19- recovery! Ordinario, C. (2022, May 25). Neda, Ibon agree PHL debts very far from Sri Lanka level | Cai Ordinario, hitps://businessmirror.com.ph/2022/05/25ineda-ibon-agree-phi-debtsvery-far-from-sri-lanka-leveli#:%67E:t ext=Meanwhile%2C%20according%20to%20nongovernment’%420group,the%20country%275%20%24394 ‘%2Dbillion%20GDP Ronquillo, M. (2022, July 30). Lessons from Sri Lanka. , hitps:/www.manilatimes.net/2022/07/31 /opinion/columnsilessons-from-sri-lanka/18528607utm_campaign =magnet&utm_source=article_page&utm_medium=related_articles Wikipedia contributors. (2022, July 10). Foreign relations of Sri Lanka. . https://en.wikipedia.orgiwikiForeign_relations_of_Sri_Lanka#t:%7E:text=It%20als0%20is%20a%20memb er.dialogue%20partner World Data.Info . (n.d.). Sri Lanka compared to any other country. https:www.worlddata info/country-comparison.php?country1=LKA&country: