Open Access

Nina Rodmann

• In contrast to Japan and the “dragon economies,” the Philippines has not been able to partake in the “Asian Economic Miracle.” In short, the Philippines does not classify as a developmental state which exercises strategic industrial policies as traced in Japan, South Korea, Taiwan and Singapore. In fact, even its Southeast Asian neighbors Malaysia, Thailand and Indonesia had economically outdone the Philippines by the 1980s even though their prospects were much worse than those of the Philippines in the 1950s. And while the Philippine economy has been experiencing an upsurge in recent years, it is still significantly lagging behind regional standards—especially with regard to industrial development. From a political economy perspective, it is of key interest in how far the Philippine state has been contributing to this subpar development. In order to explore the ongoing Philippine development dilemma, the study thus offers a comprehensive analysis of the Philippines’ industrial policies, based on distinct government–business relations and patterns of social embeddedness. In addition to assessing the Philippines’ industrial policies and their embeddedness in general, two of the Philippines’ main export industry sectors—textile/garments and electronics—are examined. In this manner, the study contributes to the analysis of the political economy of economic development in the Philippines and provides insights on the prospects and limits of industrial policy in the Southeast Asian context.