Sachet Economy of the Philippines
I don’t mean to degrade the economic situation of my country, the Philippines, but it is true. The crystal-clear evidences can be measured with the prevalent usage of sachet in every commercial product I buy. Literally, sachets of different products are what you can see and buy from sari-sari stores to the huge department stores in the country. And my opinion will lead to how our financial status fare in the Asian and world market.
Why do investors look at the economic climate of the Philippines? Economic experts observed that both local and foreign businessmen adjusted their packaging according to the needs of the people, especially those who belong to the poverty line (isang kahig, isang tuka).
Poor people cannot afford bulk items, so investors packaged their products, mostly in sachets so as to draw more income from them as their primary consumers.
Statistics show that almost 50 % of the country’s population of almost 80 million belong to the poverty line. Because of this, business analysts described the prevailing situation as synonymous to a “sachet phenomenon”.
The devaluation of peso contributed to this kind of economic upheaval. The more the peso devaluates, the more sachet products are being introduced by the business sector.
Living in Sachets
As I continue to live in the Philippines, my three decades of life here saw the introductions of more and more sachet products that range from beauty to kitchen items.
As a young child, I was always in an errand to buy a sachet of shampoo, toothpaste and other toiletries plus kitchen items like vinegar and soy sauce in sachets.
As the years go by, the Philippine peso can only afford sachet products for the families who belong to the poverty line.
With the help of the administration of President Benigno Aquino III, let's hope that this 'sachet trend' will be replaced by 'bulk realities'.
Is there still hope for the Philippine economy to recover fully? Please, do comment on this hub.
Outlook for Philippine Economy c/o Bloomberg
Causes of a Sachet Economy
Even a non-economist, like me, will notice the major causes of having a sachet economy. In the Philippine setting, consider the following setbacks in the government.
- Rampant graft and corruption in the government - Unfinished roads are just one of the effects of rogue public officials who unshamely shove people's money into their pockets.
- Bigtime tax evaders - Big businessmen that tamper their tax declaration are never punished.
- Devaluation of money - The basic wage of an ordinary employee cannot even buy the basic needs of his family for a month.
- Insurgency problem - Leftist proliferate in the mountains and continue their campaign for government reforms (?).
- Displacement of people - Disorientation of Filipino families who believe that their lives will be better if they flock to big cities in the country.
I'm sure, many Filipino who are working or living outside the country can attest of the facts I've presented. The labor sector of the country is the leading contributor to the economic stability of the country. Funny thing, we measure our economy with the amount of dollar reserves we gain annually, care of the OFWs (overseas Filipino workers).
Are we still dictated by the World Bank(WB) or the International Monetary Fund (IMF)? Hmmnnn...no doubt about it.