Development models of the Philippines

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Virginia Tech

This purpose of this study is to construct computer models that can simulate national and regional development thus provide policy makers with a tool for policy experiments. This paper describes two models developed using the system dynamics methodology.

The Development Model of the Philippines (DHP) is a national model organized into seven sectors: (1) Industrial Sector, (2) Environmental Sector, (3) Infrastructure Sector, (4) Social Development, (5) Demographic Sector, (6) Agriculture Sector, and (7) Employment Sector. Six policy experiments were performed using DHP: (1) Government Support of Agriculture Policy, (2) Government Allocation to Social Services, (3) Industrial Development Policy, (4) Infrastructure,(5) Environmental Protection Policy, and (6) Zoning Policy.

The second model described in this study, called BUKID (from the filipino word for 'countryside'), is a multisectoral regional development model embodying the dynamics of rural-urban dependency with emphasis on the impact of investment on rice and corn farmers. It is composed of the following sectors: ( 1 ) Agriculture, (2 ) Industrial, ( 3 ) Demographic, and (4) Transportation. Four policy strategies that may be evaluated using BUKID are described herein. These are: (1) Land Reform, (2) Feeder Road Construction, (3) Crop Production Policy, and (4) Promotion of Agro-based Industries.