Pax Silica: A Chance for Philippine Industrial Policy

Canadian Prime Minister Mark Carney recently gave a speech outlining his vision for industrial revival and national economic security. As an Oxford-trained economist, Carney emphasized the importance of industrial policy in preserving Canada's economic momentum and overall national interest.

During a visit to Johns Hopkins University, Carney had the opportunity to engage with Nobel Prize-winning economists Joseph Stiglitz and Ha-Joon Chang on the topic of industrial policy. They highlighted the need for a more nuanced approach to trade theory, one that acknowledges strategic learning by nations and structural imbalances in the world economy.

Carney's speech was a stark contrast to the Philippines' lack of urgency around reviving manufacturing as an engine of inclusive growth and national security. The country's pundits and advocates often blame corruption alone for its economic woes, despite research showing that poverty and underdevelopment are also major contributors.

The Philippine government is currently negotiating the Pax Silica framework agreement with the US, which has sparked debate about how to leverage this opportunity to drive high-value-added production and high-tech manufacturing in the country. Experts emphasize the need for technology transfer, upward mobility in the value chain, and autonomous footholds in next-generation technologies.