Why are we losing in the development race?

A week ago, the International Monetary Fund (IMF) reported that the Philippines would be overtaken by Vietnam in terms of per-capita gross domestic product (GDP) this year. Projected per-capita income of Vietnam will be $3,497.51, compared with the Philippines’ $3,372.53. The IMF also projected that in five years, Vietnam’s per-capita income will be $5,5211.90 versus the Philippines’ $4,805.84. This simply means that Vietnam has overtaken us in the development race.

While the coronavirus disease 2019 (Covid-19) pandemic triggered this shift, as Vietnam better managed the crisis as its economy will grow by 1.6 percent this year while that of the Philippines will contract by 8 percent, it has to be pointed out that there are already underlying structural reasons that made this result inevitable.