Science Article Analysis and Summary (Essay Sample)

Article Analysis and Summary
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Article Analysis and Summary
The article that will be addressed is the Sustainability of Recent Philippine Economic Growth by Leonardo A. Lanzona. Lanzona wrote the article to address the Philippian economy in the modern world. Generally, the Philippines has been highlighted several times as "the sick man of Asia" due to its poor economic performance. According to Lanzona (2016), this performance is linked to its long account of an institutional letdown which resulted in a pandemic corruption system. Generally, the country's recent attempt to advance governance institutions and processes to minimize and eliminate corruption has attracted the attention of Asia and the entire world. For example, President Benigno S. Aquino's administration was elected to weed out corruption in the country. Since then, the Philippines has been recognized for becoming less corrupt and significant economic development. The author typically wanted us to know how much progress has been made after the such reforms were implemented.
Generally, the author begins the article by observing how reforms have translated into economic gains in the Philippines. These reforms have been made possible by Aquino's administration. For example, Lanzona noted that by the end of 2013, the country had witnessed unprecedented economic development of 7.2%. Furthermore, the author observed that the several credit ranking upgrades received by the Philippines were quantifiable signs of its accomplishments in governance, particularly in monetary management and fiscal discipline. In 2013, the government revenue share was about 13.3% compared to around 12.1% in 2010 (Lanzona, 2016). With such improvements, Lanzona questions whether the Philippines is on the threshold of joining other Southeast Asian countries.
Lanzona then highlights various changes that highlight how the Philippines managed to ultimately develop its economy. For example, the author highlights institutional transformation as a basic cause of economic growth. Various administrations had to push for many key reforms that would neutralize the devastating impacts of the recession. For example, Cory Aquino's administration initiated the value-added tax. Moreover, the drive against corruption is another major contributor to the current economic growth. The current Aquino government was the first to be voted on a comprehensive anti-corruption policy (Lanzona, 2016). While other presidents may have sworn to end corruption, Aquino has been the only president willing to accomplish his promise. Due to the transformation that addressed corruption at both the lowest and highest government levels, the Philippines has managed to update its credit ratings. For example, in 2014, Standard & Poor's Financial Services (S&P) elevated the country's long-term independent credit ranking from BBB- stable to BBB stable. Lanzona asserts (2016) that this became the highest-ranking the country had ever recorded. As such, it set the Philippines credit rating a notch higher than in 2013, making the country more globally competitive and attract investors.
Lanzona concludes by mentioning the main outcomes of the improved economy. To be precise, he establishes that structural changes enhance economic sustainability since it facilitates the rationalization of the labor force to other segments where the value-added is greater. Thus due to structural reforms, the country witnessed several accomplishments. Firstly, in 2013, the Philippines recorded one of the highest GDP growths at 7.1% from 6.6% in 2012 (Lanzona, 2016). This record was attributed is to the strength of developing subdivisions of the economy like business process outsourcing. Secondly, investments in fixed capital formation increased by 27.7% in 2013 from about 8.7% in 2012. For an economy that was typically consumption-driven, the improved foreign and domestic investment was a longed-for growth since sustainability is best guaranteed by more investments. Lastly, in 2014, employment levels advanced by 2.8% with most vacancies coming from the growth in the service sectors and industry. This implies that effective transformations should offer government agencies a chance to sol