ABSTRACT
This chapter provides an alternative view to the opinion that nationalist economic policies from the 1930s through the 1970s reflected the influence of, or capture by, vested interests seeking protectionism as well as the importance of ethnic discrimination. It argues instead that the nationalism of policymakers who occupied the commanding heights of economic policymaking during this period when the Philippines witnessed rapid industrialization was shaped by policy ideas prevalent at the time. The framers of the 1935 Constitution decided on a strong executive branch of government and protectionist policies in reaction to the Great Depression and the rise of the Soviet Union. The adoption of import-substitution industrialization and retail trade nationalization in the 1950s reflected the leading and worldwide policy prescriptions and ethnic sentiments during this era. The autonomy of policymakers from the powerful economic interests was demonstrated when the government imposed foreign exchange controls which were opposed by the mighty sugar bloc. This shows the relevance of the fact that most economic bureaucrats and economists did not come from the elite but from the middle class.
