The lecture is divided into five parts. At the outset, the first part discusses Philippine economic underperformance in the context of general policies and the role played by labor policies. The second part reviews the evolution of Philippine labor laws briefly. The third part analyzes the consequences of labor policies on employment and economic performance. The fourth part discusses the desirable directions of labor reforms. The fifth and final part suggests how we might correct the problems posed by labor policies. The key reform provides a link between wage income and labor productivity and is more suited to the existing labor conditions of impoverished regions of the country.