Mindanao State University-CETDGeneral Santos City

A study of:The Art of Economics in Total War

In partial fulfilmentIn Economics IV

2014-2014

Kurt Joshua O. ComendadorHenry Joseph FundoInvestigators

Mrs. Aida F. DocenaInstructor

TABLE OF CONTENTSCHAPTER 1Introduction-----------------------------------------------------------------------XStatement of the problems----------------------------------------------------XSignificance of the study-------------------------------------------------------XScope and delimitation---------------------------------------------------------XDefinition of terms---------------------------------------------------------------XCHAPTER 2REVIEW OF RELATED LITERATURE-----------------------------------------------------XEtymology-------------------------------------------------------------------------XHistorical overview--------------------------------------------------------------XThe Philippines-------------------------------------------------------------------xCHAPTER 3RESEARCH DESIGN AND METHODLOGY-----------------------------------------------xMethodology-----------------------------------------------------------------------xResearch Desgin-----------------------------------------------------------------xCHAPTER 4

CHAPTER 1INTRODUCTIONWar and Economy are related. If theres Economy, theres war. If theres War, Theres Economy. These two coexist since Ancient times and were never absent since. These two have become a part to humans capability to create and make things happen. It is truly compelling how these two are connected and how astonishing it is how humans, for thousands of years, exploits these factors to their own free will and adapt to its alterations.WHAT IS TOTAL WAR?Total war is awarin which abelligerentmobilizesits population and resources for war production. The term total refers solely to the extent of mobilization, not to the extent of destruction. The Oxford English Dictionary, American version defines Total War " as "A war that is unrestricted in terms of the weapons used, the territory or combatants involved, or the objectives pursued, especially one in which the laws of war are disregarded." It is a separate class of warfare in which the difference between non-combatant and combatant disappears. One can trace the origin of the phrase to the publication of World War 1 German General Erich Ludendorff, Der totale Krieg (The Total War) in 1935.

The French were the first to employ the concept of Total War. During the French revolution, the Jacobin Government feels threatened by a powerful European coalition. In order to combat this threat, they decided to pour the entire nation into an unprecedented war effort. This was called Leve en masse. The following decree of the National Conventionon August 23, 1793 demonstrates the immensity of the French war effort, when the French front line forces grew to some 800,000 with a total of 1.5 million in all servicesthe first time an army in excess of a million had been mobilized in Western history.The United States of America is one of the exquisite example of a prime Total War participant as the country started engaging in such war for a long time. During the American civil war, Union General Tecumseh Sherman stated that in order to win the war with the lowest possible casualty, he must wage a hard war, eliminating hostile combatants and enemy civilians who are producing arms and supplies to the troops in the home front. The country also have superior capacity to wage total war. They used many strategies to carry its war effort such as Drafting or Selective Service System, employing women for war production, converting industrial and commercial factories for the war effort and using children to join drives for procuring light materials from homes. The most important asset of the U.S is its ability to mobilize its economy for war. During World War 2, their government raised taxes which paid for half of the wars costs and borrowed money in the form of war bonds and treasury papers. By this massive cooperation, the U.S. established itself as a superpower after World War 2.It is truly profound how these two nations utilize its entire nation for war without exhausting its supply. They have carefully analyzed plan on how to allocate its limited resources. A nation needs money to propel its war machine. War economy is the set of contingencies undertaken by a modern state. It is a system of producing, mobilizing and allocating resources to sustain violence (Philippe Le Billion). The French, during the Napoleonic wars have poor war economy, on the contrary, Britain has excellent war finances and therefore gained an edge in the long run. The U.S., has to ascend from the depression era to be fully capable of combat. After the war, it has established itself as a major economic power.THE PHILIPPINES The Philippines may be a veteran of many turmoil, however, and has yet to wage Total War. During the Spanish occupation, the country revolted against the oppressors but is divided. Filipino-American war cannot be classified as a Total War since the majority of the fighting and the war effort happened in Luzon. 1941-1944, during the Japanese occupation, the entire country fought as one and its still not labeled as Total War. The enemy brought Total War to our ancestors, killed hundreds of thousands of civilians and fighters. All that happened while the enemys home front are out of reach. It is stated that for a War to be remarked as Total War, the combatants should eliminate hostile civilian and military personnel, there should be an organized war effort by the civilian and military or the entire population. But it didnt happened in the history of the Philippines. Some of the civilian populace assisted in the war movement, but it is not in a wide scale setting. Our fighters didnt kill countless of civilians. Our ancestors didnt mobilize the entire populace. We are unable to commit into a full scale Total War. The Philippines got nothing before, Theres no central chief of command, no all-out combat and no nationwide war production and most importantly, no war economy. All that happened are one sided Total Wars.WHY THIS TOPIC? The researchers have chosen this field of study to satisfy my thirst for knowledge in the history of warfare and to expose why Economics play an important role in a wars integrity. My goal is to find the connection that links warfare and economy. And finally, the researchers want to discover how our country will execute if any circumstances happen. This the researchers topic of interest and the researchers will commit into unveiling to any reader whats behind this phenomenon and what our country is capable of if ever the researchers can find the answers to the researchers questions.

STATEMENT OF THE PROBLEMThe aim of this study is to uncover how a belligerent utilizes its entire population and resources to the conflict for long periods of time without completely diminishing its supply and what is the role of an economist in a war. The researchers also want to find out how a nation or state harness the capability of Economics and if the Philippines is capable of engaging in such conflict.Here are the following Question the researchers wish to find the answers through this Study:1. How does a nations leader mobilize his entire population and resource without completely exhausting his supply?2. What are the methods that different leaders used to keep his states war effort continuous?3. What is the responsibilities of an economist in times of warfare?4. Will the Philippines be able to sustain engaging in such conflict?

THEORETICAL AND CONCEPTUAL FRAMEWORK OF THE SUDYThe researchers theorize that a Nation will appoint a head or committee to handle the vigor of the responsibility of financial affair. This will be a set or a group of top notch economists and mediators. I also conclude that only a Nation with superior technology, high class war production, tremendous and stable economy, good government with brilliant leaders and dominant military strategies and strength can hold its own in an advent of total war. Finally, I foresee that the Philippines can also join a coalition and therefore, participate in a total war.

SCOPE AND DELIMITATION

This study was conducted to unveil the factors of economics in total war. The Researchers have set the limits of data gathering in the timeframe of 1860-1945. The researchers will study the key economic actions from this period taken by France, Germany, The U.S.A., England, Japan and the USSSR only, since they are the major belligerents and are primary Total War entrant. The researchers will aim to identify if the Philippines are capable of such operations that the foreign countries conducted. The researchers have limited my study on these conflicts since they are well known, well documented and are prime examples of total war. The duration of the study will be from July 2014 to March 2015. This is from the proposal, research and the final completion of the verdict and conclusion. The period does not cover any testing and experimenting. Further delimitation will be covered throughout the study.

DEFINITION OF TERMSIn order for the reader to fully understand and absorb the points of this study, here are the words and phrases that will be generally used throughout the investigation.

1. Total War- a war in which a belligerent mobilizes its population for the war effort.Certain actions regardless of legitimacy or illegitimacy can characterize total war, such as: Givingno quarter(i.e., take no prisoners), as withHitler'sCommando duringWorld War II. Strategic bombing, as with thestrategic bombing of enemy targets during World War I andWorld War II. Blockade, as with theAllied blockade of Germany duringWorld War I. Scorched earthpolicy, as withUnionGeneralWilliam T. Sherman'sMarch to the Seaduring theAmerican Civil War. Suppressingresistance movement, destroying entirehuman settlementlocalities, and/or deliberately killing or executingcivilian inhabitants incollective. Punishmentandreprisalfor any suspected or actual resistance activity, as withThe Rape of Belgium duringWorld War I. commerce raidingorunrestricted submarine warfare, as with theGerman U-Boat campaign during World War Iagainst enemy and neutralmerchant ships The use ofciviliansandprisoners of warasforced laborformilitary operations, as with Japan and Germany's massive use of forced laborers of other nations during World War I. 2. War economy- is the set of contingencies undertaken by a modern state to mobilize its economy for war production.

3. Economy- the production, distribution, trade or consumption of limited goods and services by different agents in a given geographical location.

4. Economics- Social Science that studies economic activities to gain an understanding of the processes that govern production, distribution and consumption of goods and services in an economy.

5. Art- A diverse range of human activities and the products of those activities.

6. War bonds-are debt securities issued by a government to finance its military operations and other expenditures during times of bloodshed.

7. Union (American Civil war)-a group of abolitionist states, especially in the northern part of the U.S. during the slavery period. It is the adversary to the Confederacy.

8. Confederate states of America-anti-abolition states, significantly found in the south-eastern part of the U.S.

9. Selective Service System-is an independent agency of the United States that maintains information to potential subject for conscription.

10. Leve en masse-mass mobilization

11. Suppressing- forcibly putting an to

12. Mobilize-prepare and organize troops for active service.

13. Belligerent-hostile and aggressive.

14. Home Front-an informal term to the civilian populace that serves as an active support system of their military.

15. Coalition-is a pact or treaty among individuals or groups, during which they cooperate in a joint action, each in their own interest, joining forces together for a common cause.

16. Jacobin Government-the defunct government of France during the French revolution controlled by the Jacobin Club.

17. Jacobin-someone who supports a centralized republic with power made at the national level at contemporary usage. SIGNIFICANCE OF STUDYThe researchers hope that the result of the research will be significant to the following:

ECONOMIST. This will serve as a basis and foundation to your future research, this will be a guide for you to improve our war economy. . I hope this study will be the spearhead for a better economy and military activity.

POLITICIANS. This will serve as proof of the deficiencies our country has. This will lead you to develop our military for defensive purposes as well as capable of sending assistance to an allied nation at war.MILITARY. This will encourage you to modernize and allocate finances to any entrepreneur to establish our own war materiel production lines.MSU-CETD. This will be serve as connection to our Economic stand point and military perception.

TEACHERS AND OTHER RESEARCHES. This will be a basis and source for future research. The researchers hope this study will be the spearhead for a better economy and military activity.

CHAPTER 2

REVIEW OF RELATED LITERATURE

IntroductionTotal war has existed for such a long time there are number of books and essays written regarding this topic. Some were dated back in the 18th century after the Napoleonic wars. Many high ranking officials of militaries all around the world wrote their memoirs and thoughts regarding the war they are fighting. Some, unknowingly wrote about total war. In the history of warfare, the period from 1860-1945 is considered as the period of total war. The concept of total war is debatable among historians, political scientist and economist; however the American Civil War (1861-1865) and the Franco-Prussian War (1870-1871) are the first two conflicts which are regarded as total wars by social scientists or at least as the prelude to this type of warfare. It is surprising, that other conflicts, such as, the Russian-Ottoman War (1877), the Russian-Japanese War (1904) the Balkan Wars (1912-1913), the Greek-Turkish War (1919-1922), are not regarded as total wars, or they have not attracted the attention of various scholars. However, there is general agreement that the First World War (1914-1918), as well as the Second (1939-1945), are the epitome of total warfare. Many were published and became the basis of later total war. In the following paragraphs, the researchers will discuss about the history of total war of the France, the United States of America, United Kingdom, Germany, Russia and Japan; the mechanics of war economy and the approach of the countries mentioned earlier. Most importantly, we will cover the standing of the Philippines in terms of waging total war and war economy.ETYMOTOLOGYOne of these examples is written by Prussian General Carl von Clausewitz (1780-1831), written sometime between 1816 and 1830. It is published after by his wifeMarie von Brhl. He is much intrigued by how the leaders of the Napoleonic war, mainly Napoleon, have changed the face of warfare by convincing and motivating the populace to gain access to the full resource of the state.His book is very diversely interpreted by various leaders including Dwight D. Eisenhower. It is stated in the book that the state is required to work in conjunction with the people and the army, the state becoming a massive engine built to exert effort and combat and identical enemy, the clausewitzian war as it is better known. It established the The clausewitzian trinity: a rigid and stagnant hierarchy of the people, the army and the government. However, the book merely foreseen Total war. It is because, the concept of total war was yet to be defined.One of the earliest to define total war is Union General Tecumseh Sherman. He stated that in order to end war with fewest possible casualties, he must wage hard war (synonym for total war) not only to enemy combatants but also to enemy civilians in the homefront who is assisting the war effort by producing vital supplies. It is one of the most basic rule of engaging total war. While General Curtis LeMay defined modern total war of the nuclear age as delivering a single, devastating blow to the enemys soil, going as far as killing a nation. Carl Schmitt, however, thoroughly studied and clarify the meaning of total war in his work, the four essays (1931-1938). His point is that, a war may be total if a nation summons every ounce of strength to the limit and commit everything to the last reserves. HISTORICAL OVERVIEWWar has influenced economic history profoundly across time and space. Winners of wars have shaped economic institutions and trade patterns. Wars have influenced technological developments. Above all, recurring war has drained wealth, disrupted markets, and depressed economic growth. It is closely related to economy just like space and time is. In order to wage total war, economy is needed.

The first to wage total war while vastly utilizing economy is Napoleon Bonaparte, leader of the French revolution and the initiator of the Napoleonic wars. TheFrench Revolutionary Warsintroduced some of the first concepts of total war, such as mass conscription. The fledgling republic found itself threatened by a powerful coalition of European nations. The only solution, in the eyes of theJacobingovernment, was to pour the entire nation's resources into an unprecedented war effortthis was the advent of theleve en masse. The following decree of the National conventionon August 23, 1793 demonstrates the immensity of the French war effort, when the French front line forces grew to some 800,000 with a total of 1.5 million in all servicesthe first time an army in excess of a million had been mobilized in Western history:From this moment until such time as its enemies shall have been driven from the soil of the Republic all Frenchmen are in permanent requisition for the services of the armies. The young men shall fight; the married men shall forge arms andTransport provisions; the women shall make tents and clothes and shall serve in the hospitals; the children shall turn old lint into linen; the old men shall betake themselves to the public squares in order to arouse the courage of the warriors and preach hatred of kings and the unity of the Republic.The wars merged into the Napoleonic wars of the First French Empirefrom c1803. Over the coming two decades of almost constant warfare it is estimated that somewhere in the vicinity of five million diedprobably about half of them civiliansand France alone counted nearly a million (by some sources in excess of a million) deaths. Civilians played a crucial role in Napoleons war. Every citizen worked, some forcefully, for the betterment of the army. Food and supplies were the most needed and prioritized goods for the military. Civilians were also employed to build ships and armaments.

But the widespread use of economic use in total war happened in World War 1 (1914-1918) and World War 2 (1939-1945). The two most devastating war in history but also brought innovative changes in the field of economics and total war. For one example, the civilian population were aroused to participate in the war effort. Most able bodied man were sent to combat and the rest were brought to factories to build and create war machineries and to study aspects that may improve the life of warriors and civilians alike. Women were also called upon to work in factories in creating weapons and ammunitions. Children voluntarily worked to gather resources house by house. In the U.S., one of the most premiere belligerent of wars, successfully pushed its economy into the limits. This is due to the strategic encouragement of its civilians. They expanded its governmental powers by creating institutions such as the war industry board to assist and enhance its military production. Others, such as the fuel administration, introduced daylight saving time in an effort to conserve coal, fuel and oil while the food administration pushed higher grain production and called for a spirit of self-sacrifice rather than mandatory rationing. Propaganda also played a huge part in garnering support for topics from tax initiatives to food conversation. During World War 2, Washington felt a need for a greater bureaucracy was needed in order to help with mobilization, the government raised taxes which paid for half the wars cost and borrowed money in the form of war bonds to cover the rest of the expenses. Commercial institutions like banks also bought billions of dollars of bonds and other treasury paper, holding more than $24 billion at the wars end.The creation of a handful of agencies helped funnel resources towards the war effort. One prominent agency was the War Productions board, which awarded defense contracts, allocated scarce resources such as rubber, copper, and oil for military uses, and persuaded businesses to convert to military production."Two-thirds of the American economy had been integrated into the war effort by the end of 1943.Because of this massive cooperation between government and private entities, it could be argued that the economic measures enacted prior to and during the Second World War helped lead the Allies to victory. United Kingdom, a veteran of many wars, first experienced its total war in the onset of World War 2. U.K. drew on its experiences in World War 1 to prepare legislation that would allow immediate mobilization of economy for war, should hostilities break out. The U.K imposed effective rationing of food, leather, rubber and fuel. They encouraged civilians to grow their own victory garden, small garden to feed their family in addition to the ration system. The rationing system, which had been originally based on a specific basket of goods for each consumer, was much improved by switching to a points system which allowed the housewives to make choices based on their own priorities. Food rationing also permitted the upgrading of the quality of the food available, and housewives approvedexcept for the absence of white bread and the government's imposition of an unpalatable wheat meal "national loaf." People were especially pleased that rationing brought equality and a guarantee of a decent meal at an affordable cost.

Germany is not an effective economic war wager, in fact, its poor economic system of the past cost Germany most of its war. During World War 1, its food production faltered as the war continued. Most of its farmers and food production workers were transferred to the military due to the demands of war effort. Not only were the workers conscripted but the food supply were allocated to the troops. All of these, combined with poor railroad system, shortage of coal and allied blockade locked Germany into its doom. It implemented supply rationing and price ceilings to avoid profiteering and as a solution, but the effects is not what they hoped. Many civilians perished. After Adolf Hitler took power, the Nazis introduced new policies that doesnt only caused unemployment rate to drop but also created a competent war machine that clearly violated the treaty of Versailles. During the war, the Nazis implemented loose rationing that got tighter as the war progressed and used forced labor of prisoners and employed workers of an occupied country for supply production. As Germanys economy is too small for a long all-out war, Hitlers strategy is to change this by a series of blitzkrieg. This proved to be a wrong decision after a series of defeats against Russia coupled by the economic power of the Allies.

One of the belligerents of total war is the Soviet Union. During World War 1, the economy of Russia is faltering, industrial sector was poor, financer were low, and the rural sectors could barely feed themselves. Many workers implemented strikes, peasants wanted land reforms, and the civil conflict plunged Russia into the depths of poverty. Russia, however, rebounded during World War 2. Its economy and industrial capability is still small. However, the experiences gained in World War 1 years allowed Russia to adapt and strive in the war. Materials are scare, food is short and finances are still low. During the German invasion, factories were rushed further behind to continue producing war materials. But, most of the Russian war machines were given to them by foreign allies. Despite harsh conditions, the war led to a growth in Russian nationality and unity. Every Citizen felt the need of service for their country and therefore helped in any ways as much as possible, mainly food and supply production. Materials were also short and many war machine were good but low quality.

Japan have no large scale economic mobilization during World War 1 since its involvement in the war is minimal and affect little to the war. In World War 2 however, The Japanese home front was not well organized, as the government paid more attention to propaganda and not enough on mobilization of manpower, identification of critical choke points, food supplies, logistics, air raid shelters, and the evacuation of civilians from targeted cities. There was only a small increase of 1.4 million women entering the labor force between 1940 and 1944. The minister of welfare announced, "In order to secure its labor force, the enemy is drafting women, but in Japan, out of consideration for the family system, we will not draft them." The failure of the utilization of womanpower was indicated by the presence of 600,000 domestic servants in wealthy families in 1944. The Japanese food rationing system is effective throughout the war and there were little reports on malnutrition but no reported starvation.

FACTORS OF MAINTAINING ECONOMIC STABILITY DURING TOTAL WAR

One of the most common practice of keeping economic stability is the effective manipulation, utilization and allocation of supply. One example is rationing. The Allies encouraged their citizens to grow Victory Garden for food and introduced food stamps and price ceilings. Food purchase and oil purchase were limited. However, leaders should be aware on keeping the level of strictness of products to consumers as not to lower the standards of living to very poor conditions so fighting morale should not drop. Citizens, particularly children, gathered scraps, rubbers, fat and other materials for war production: tires, metals, fat and other usable things are gathered house to house. Many were forced to improvise and create replacement should they give away their needed things. Food production workers were employed to grow and harvest more grain for consumption.

Another example is creating a specialized branch of the Government to facilitate the production of foods, supplies, munitions and war machineries for a centralized and organized system. For example, The U.S. established the War Production Board (WPB) on January, 1942. The WPB directed conversion of industries from peacetime work to war needs, allocated scarce materials, established priorities in the distribution of materials and services, and prohibited nonessential production.It rationed such commodities as gasoline, heating oil, metals, rubber, paperand plastics. It was dissolved shortly after thedefeat of Japan in 1945, and was replaced by the Civilian Production Administration in late 1945. In 1942-45, WPB supervised the production of $183 billion worth of weapons and supplies, about 40% of the world output of munitions. Britain, the USSR and other allies produced an addition 30%, while the Axis produced only 30%. One fourth of the US output was warplanes; one fourth was warships. Meanwhile the civilian standard of living was about level.

Women employment also played a part to economic stability. Women were employed by the government and privately owned factories to assemble planes and vehicles, build ships, and produce medical supply. It brought financial stability to otherwise, housewives. In the U.S. alone, women also performed many kinds of non-military service in organizations such as theOffice of Strategic Services(OSS),American Red Cross, and theUnited Service Organizations(USO). Nineteen million American women filled out the home front labor force, not only as "Rosie the Riveters" in war factory jobs, but in transportation, agricultural, and office work of every variety. Women joined the federal government in massive numbers during World War II. Nearly a million "government girls" were recruited for war work. In addition, women volunteers aided the war effort by planting victory gardens, canning produce, selling war bonds, donating blood, salvaging needed commodities and sending care packages.Propaganda also played a crucial role in waging total war, it used to keep the unity of the nation and the hatred to the enemy. Propaganda was also used to encourage the homefront and continue working for the cause of victory, it is used to keep morale up and used to tell how to act during war times. The biggest part of the war effort, however, is the economists and the statistician that audit, record and liquidate the expenses of war. Statistics changed the war and war changed statistics. To be an effective Total war belligerent, a nation or state must have sufficient funds and an effective budgeting. In order to do this, the supreme leader must employ the use of statisticians and economist. Someone must manage the financing of the war and that money sums up into billions of dollars that cannot be easily be handled by a single person, therefore nations must establish a branch of the government to facilitate the expenses of war. In August 1914 the gold reserves of the Bank of England, and effectively of all banking institutions in Great Britain amounted to 9million (Equivalent to 754million in 2013).The banks feared the declaration of war would trigger a run on the banks, so the ChancellorDavid Lloyd Georgeextended the Augustbank holidayfor three days to allow time for the passing of theCurrency and Bank Notes Act, by which Britain left the gold standard. Under this Act the Treasury issued 300million (Equivalent to 25.1billion in 2013) of paper banknotes, without the backing of gold, with which the banks could repay their obligations. Leading bankerWalter Leafdescribed these Treasury notes as "essentially a War Loan free of interest, for an unlimited period, and as such was a highly profitable expedient from the point of view of the Government".The first interest-bearing War Loan was issued in November 1914 at an interest rate of 3.5%, to be redeemed at par in 192528. It raised 333million; 350million at face value as it was issued at a 5% discount.It was followed by 901million of a second War Loan in June 1915, at 4.5%. 17.6million of this was accounted for by conversion of the 3.5% issue, and a further 138million by holders of 2.5% and 2.75%Consols, who were also allowed to transfer to the higher interest rate.The government also pledged that if they issued War Loan at even higher interest, holders of the 4.5% bonds might also convert to the new rate.In his memoirs Lloyd George stated his regret that his successor, Reginald McKennaincreased the interest rate at a time when investors had few alternatives. Not only did it directly increase the nation's annual interest payments by 100million but it meant interest rates were higher throughout the economy during thepost-war depression.

THE PHILIPPINESThe Philippines is a veteran of wars; intertribal wars, revolutionary wars and occupational wars. Some of it fall under the classification of total war. However, in those period, the archipelago is not considered a under a legitimate government and lacks the unity and full scale nationalism. One conflict, for example, during the Spanish colonial revolution, civilians are involved, however, it lacks the full mobilization of an entire country. The same situation happened during World War 2, the nation united as means of transportation and communication have advanced vastly since the Spanish colonial rules. The Philippines, civilians and military men united as one in a one big struggle against the Japanese. Japanese soldiers murdered Filipino civilians, and civilians helped the war effort by hiding, supplying Filipino fighters and as spies or source of information. However, due to the lack of centralized government and the lack of official mobilization failed it to be called a total war.

Philippines currently ranks 37th in the overall military ranking of the world. Therefore that corresponds to a weak military power. The military has poor budget, outdated equipment, obsolete tactics and many factors that affects the countrys standing. The Government does not focus on the military spending, if ever theres a little money allocated for the armed forced, it vanishes to the pockets of corrupt politicians and leaders. We also have a weak navy. With small fleets of obsolete ships and tiny mechanized boats. This is not enough to wage total war. The Philippine Air force have only a modest number of fighters, attack aircrafts and helicopters, since one requirement of total war is to bombard the enemy home lands to expel civilian involvement of the war and to hinder war production, the Philippines will not be able to perform this operation. There are already two requirements that the Philippines have failed in order total war. The nation lacks the heavy, long ranged bomber to bomb the hearts of the enemy.

In terms of economic spectrum, the Philippines ranks 76th out of 196 nations in the world in terms of overall economy. This might prove to be too small in order to wage total war. However, with effective allocation, budgeting, and mobilization, we might become a small scale total war belligerent. We have many potential business owners who might want to take the challenge of establishing an effective war production line with the help of foreign assistance. In terms of government and military leadership, if the nation will have increased focus upon military spending, we can greatly improve our armed forces on land, air and sea. The Philippines have an effective, united and willing citizens ready to commit the homeland in case of war. This would be the only chance to qualify for total war.

The Philippines is already one of the top shipping countries of the world. Currently ranking at number 4. Capable of creating ships at 4 major shipyards in Subic, Cebu, General Santos and Batangas. Subic made vessels are already being exported by South Koreas Hanjin. It also a suitable country for naval repairs, stop overs and refueling. It a good sea route and connects to the open world. Even if the Philippines is a good marine country, its navy is still weak and small with obsolete ships and fleets of mechanized boats. Aerospace products in the Philippines are mainly for the export market and include manufacturing parts for aircraft built by bothBoeingandAirbus.Moogis the biggest aerospace manufacturer with base inBaguioin theCordilleraregion. The company produces aircraft actuators in their manufacturing facility. In 2011, the total export output of aerospace products in the Philippines reached US $3 billion. ATexas Instruments plant inBaguiohas been operating for 20 years and is the largest producer ofDSP chipsin the world.Texas Instruments' Baguio plant produces all the chips used inNokiacell phonesand 80% of chips used inEricssoncell phones in the world.Until 2005,Toshiba laptops were produced inSanta Rosa, Laguna. Presently the Philippine plant's focus is in the production ofhard disk drives. Printer manufacturerLexmarkhas a factory in Mactan in the Cebu region. TheABSused inMercedes-Benz,BMW, andVolvocars are made in the Philippines.Ford, Toyota, Mitsubishi,NissanandHondaare the most prominentautomakers manufacturing cars in the country. KiaandSuzukiproduce small cars in the country.Isuzu also produces SUVs in the country.HondaandSuzukiproduce motorcycles in the country. A 2003 Canadian market research report predicted that further investments in this sector were expected to grow in the following years. Toyota sells the most vehicles in the country.[60]By 2011, China's Chery Automobile company is going to build their assembly plant inLaguna, that will serve and export cars to other countries in the region if monthly sales would reach 1,000 units.Automotive sales in the Philippines moved up from 165,056 units in 2011 to over 180,000 in 2012. Japans automotive manufacturing giantMitsubishi Motorshas announced that it will be expanding its operations in the Philippines.

The Philippines is also a country with bountiful supply of raw materials good for factory processing. In fact, many foreign companies are here to harvest those materials. The country is rich with mineral and geothermal energy resources. In 2003, it produced 1931 MW of electricity from geothermal sources (27% of total electricity production), second only to the United States,and a recent discovery of natural gas reserves in theMalampaya oil fieldsoff the island ofPalawan is already being used to generate electricity in three gas-powered plants. Philippine gold, nickel, copper and chromite deposits are among the largest in the world. Other important minerals include silver, coal, gypsum, and sulphur. Significant deposits of clay, limestone, marble, silica, and phosphate exist.About 60% of total mining production are accounted for by non-metallic minerals, which contributed substantially to the industry's steady output growth between 1993 and 1998, with the value of production growing 58%. In 1999, however, mineral production declined 16% to $793 million.Mineral exports have generally slowed since 1996. Led by copper cathodes, Philippine mineral exports amounted to $650 million in 2000, barely up from 1999 levels. Low metal prices, high production costs, lack of investment in infrastructure, and a challenge to the new mining law have contributed to the mining industry's overall decline.The industry rebounded starting in late 2004 when theupheld the constitutionality of an important law permitting foreign ownership of Philippines mining companies. However, the DENR has yet to approve the revised Department Administrative Order (DAO) that will provide the Implementing Rules and Regulations of the Financial and Technical Assistance Agreement (FTAA), the specific part of the 1994 Mining Act that allows 100% foreign ownership of Philippines mines.

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CHAPTER 3RESEARCH DESIGN AND METHODOLOGYThis chapter will show the methods used in creating this study and how the researchers designed this research. The researcher would like to present the ways in which we gather the data and the resources found in the entire study.

RESEARCH METHODOLOGYThis study relies heavily on archival facts and recordings. The backbone of total war and economy is the studies of Carl von Clausewitz and Carl Schmitt. Their studies helped the researchers define and the concept of total war and the utilization of economy in terms of war. The researchers also gathered information in various websites, books and documents involving the topic.

RESEARCH DESIGNThe research is designed to present more information and archival facts and less on mathematical equations and computations. The research is very textual and resembles historical studies rather than an actual research paper. The study includes many theories of past authors and military men that are already practiced although the concept is still debatable

The timeframe is decided to be the period from 1860-1945 since it is known as the golden age of total war. The researchers focused the study in the Napoleonic wars and the two world wars, known as the pinnacle of Total war. The countries are studied since they are the major belligerent of the mentioned was and therefore a proven Total war wager. The economy and the military of the Philippines was also studied so the researchers can compare them to the countries mentioned in the research to know if the nation is capable of mobilization, production and the actual involvement in total war.

CHAPTER 5SUMMARY, CONCLUSION AND RECOMMENDATION This chapter will summarize and conclude the results of the study done by the researchers. This chapter will also cover the recommendations for further study and information.

SUMMARYTotal war and economics will always be present in the history and future of human kind. Removing it will be impossible since it became a part of the human nature. The main purpose of the study is find out the methods and the measures taken by the nations that are successful in engaging total war and to compare them to the Philippines to know if the nation is capable of such things.

Over the course of the study, we discovered the actions taken by major belligerents of the total war and its successes. The most common points is the effective allocation and utilization of resources, the use of women as laborers in the war industry, the voluntary works of the children and the creation of the branch of government to supervise the cost of war, the expenses and the allocation of goods and the level of supply. The Philippines are capable of such things but still have a long way to go.

CONCLUSIONAlthough the Philippines is a third world country, the nation is capable of engaging in total war with right leadership and good turn of events. The Philippines have plentiful manpower and population, it is capable of building hull of ships for war, it is filled with talented economist and statisticians to guide and control the allocation and the budget for war, an abundant builders and welders of vehicles allowing it to manufacture its own and the plenty of resource it can use and most of all, the capability of creating our own weapons. The Philippines is filled with potential, all it takes is a little time, effort and money to make it all happen. We can be a very progressive country in terms of military and economy. With the help of foreign nations like Japan, Korea and the United States, the Philippines will exceed the level of poorness that it experienced and will experience if there would still be people not willing to commit themselves for the betterment of the country.RECOMMENDATIONThe following recommendations were decided by the researchers for the following persons.1. For PRACTICIONERS- based on the study the researchers made, it is recommended for follow up study on the government during war times. The researchers would also like to recommend for the study to be more textual and less mathematical and graphical for the easy understanding of the readers2. For IMPROVING THIS STUDY- for the betterment of the study, the researchers would like to reach out to fellow researchers to study the depths of the military expenditures and an investigation about how the people of the Philippines think about complete mobilization.