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Understanding the New Globalization: Implications for the Philippines
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- Briones, Roehlano M.
- Abrigo, Michael Ralph M.
- Quimba, Francis Mark A.
- Dacuycuy, Connie B.
- Michael R.M. Abrigo
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Globalization and State Capacity: The Philippines
- Patalinghug, Epictetus
- economic development
The arrival of globalization has brought about a lot of challenges for nations to meet. This paper takes a look at the capability of the Philippine state to cope with the demands of globalization. It documents the rules, laws, regulations, institutions and agencies that underlie the administrative capacity of the Philippines to promote trade and investments, and thereby achieve economic growth. A review and analysis of Philippine practices and experience is undertaken to determine the state’s readiness for globalization. The study will cover three aspects of state capacity that contribute to the promotion of trade and investments: (1) administrative capacity, (2) systems of transparency and accountability, and (3) legal and judicial frameworks. Finally the paper recommends areas wherein the Philippine government must focus on based on the three aspects as well as suggests follow up in-depth studies on issues covering: capacity to promote healthy competition; regulatory framework and capacity; capacity to develop industries, sectors and regions; policies for social development, redistributive justice, and poverty reduction; policies to promote performance, productivity, and competitiveness; and policies to protect the environment.
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The World Bank in the Philippines
Domestic growth is strong in the Philippines, while global challenges are affecting prospects. The Philippine government is implementing its 8-point socioeconomic agenda and the Philippine Development Plan 2023-2028 to ensure inclusive, resilient, and sustainable growth for a prosperous society.
The Philippines has been one of the most dynamic economies in the East Asia and Pacific region. With increasing urbanization, a growing middle class, and a large and young population, the Philippines’ economic dynamism is rooted in strong consumer demand supported by a vibrant labor market and robust remittances. The private sector remains buoyant, with positive performance from the services sector including business process outsourcing, wholesale and retail trade, real estate, and tourism. Poverty rate declined from 23.3 percent in 2015 to 18.1 percent in 2021 despite the shocks endured through the COVID-19 pandemic and other global headwinds such as high global commodity prices and tight global financial conditions. The Philippine government pursues larger investments in both human and physical capital to boost growth over the medium and long term.
The Philippines’ economic recovery is well underway, as growth increased to 7.6 percent in 2022 from 5.7 percent in 2021. Over the medium-term, the growth outlook will continue to be supported by strong domestic demand, driven by a robust labor market, continued public investments, and the positive effects of recent investment policy reforms which could boost private investment. With continued recovery and reform efforts, the country is getting back on track on its way from a lower middle-income country with a gross national income per capita of US$3,950 in 2023 to an upper middle-income country (per capita income range of US$4,466 -US$13,845).
Last Updated: Nov 21, 2023
The World Bank’s partnership with the Philippines spans 78 years, providing support to the country’s development programs and projects. Since 1945, it has mobilized funding, global knowledge, and partnerships to support the Philippines’ efforts to alleviate poverty, promote agricultural development, upgrade infrastructure, improve health, nutrition, and education, strengthen resilience against climate change and natural disasters, promote peace, and enhance global competitiveness. The Bank is an active partner in helping spur private sector growth including in agriculture, expanding engagement with civil society, and promoting peace and development in Mindanao.
The Country Partnership Framework (CPF) for the Philippines for 2019-2023 , extended by the Performance and Learning Review to 2024, prioritizes investing in Filipinos (health and nutrition, education, and social protection), competitiveness and job creation, and addressing core vulnerabilities by building peace and resilience, with governance and digital transformation as cross-cutting themes. The Bank provides technical assistance and support to projects that strengthen community-driven development including service delivery and linking remote communities to markets; promote human development; and address drivers of conflict. The CPF also supports a cohesive approach to Mindanao’s development and intensify efforts to engage the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
As of end-October 2023, the active portfolio of the International Bank for Reconstruction and Development (IBRD or World Bank) in the Philippines consists of 14 operations with net commitments of US$ 5.78 billion. The financing portfolio spans various sectors: Agriculture and Food (21%); Finance, Competitiveness and Innovation (18%); Health, Nutrition and Population (15%); Macroeconomics, Trade and Investment (10%); Social Sustainability and Inclusion (10%); Urban, Resilience and Land (9%); Social Protection and Jobs (8%); Water (3%); Environment, Natural Resources & the Blue Economy (2%); Education (2%); and Transport (2%).
The Philippines’ trust fund portfolio consists of 87 active grants with a total commitment of US$ 113.9 million.
The International Finance Corporation (IFC) of the World Bank Group since 1962 has invested US$6.2 billion (of which US$4.0 billion own account) in over 170 projects in the Philippines. IFC has provided advisory services focused on climate finance, digitalization, financial inclusion, disaster insurance, enhancing the investment climate, and enabling private sector investments in the country. IFC’s strategic priorities in the Philippines include reducing the impacts of climate change, deepening financial inclusion, promoting sustainable infrastructure, and strengthening the capacity of the private sector.
Since the Philippines government received its first World Bank loan in 1957 , the Bank’s development projects in the country have produced significant results for its people. In the past decades, the Bank’s assistance has expanded to a wide range of projects and analytical work, policy advice, and capacity development in support of the country’s development agenda.
Highlights of some projects and results
The Philippines COVID-19 Emergency Response Project supported the country’s efforts to scale up national vaccination, strengthen the country’s health systems, and overcome the impact of the pandemic especially on the poor and the most vulnerable. It has helped the Philippines ramp up vaccination by supporting procurement of at least 33 million doses of vaccines. The World Bank-financed vaccines are among the first vaccines used for pediatric vaccination, benefitting 7.5 million children all over the Philippines. The ramp up of vaccination has enabled the authorities to open more economic activities, allowing the country to grow 5.6 percent in 2021. It has facilitated purchase of 500 mechanical ventilators, 119 portable x-ray machines, 70 infusion pumps, 50 RT-PCR machines, 69 ambulances, as well as other medical equipment and supplies crucial for improving the country’s COVID-19 response. It has also built isolation wards with negative pressure systems and reference laboratories, for the country to be more prepared in facing infectious diseases.
To mitigate the COVID-19 pandemic’s impact on the welfare of low-income households, the Philippines Beneficiary FIRST Social Protection (BFIRST) Project was initiated to support the government’s flagship conditional cash transfer (CCT) program, known as Pantawid Pamilyang Pilipino Program (4Ps). The BFIRST project aims to strengthen the country’s social protection delivery system to be more adaptive and efficient, focusing on the development and implementation of digital transformation strategy for the Department of Social Welfare and Development (DSWD), in addition to supporting the cash grants for the 4Ps.
The BFIRST project is also facilitating the adoption of Philippine Identification System (PhilSys), which enabled services initially under the 4Ps and Assistance to Individuals in Crisis Situations program of DSWD. By adopting PhilSys, as a valid proof of identity, the DSWD will be able to improve the overall experience for its beneficiaries with streamlined process in accessing social assistance services while preventing fraud and leakages. The benefits of adopting PhilSys include digitizing and streamlining DSWD’s beneficiary registration and enrolment, establishing a United Beneficiary Database (UBD), identifying and removing duplicate or ghost beneficiaries, and enabling financial inclusion.
The project also promotes the use of digital payments in the distribution of cash assistance. The 4Ps beneficiaries used to receive their grants by withdrawing cash through an ATM or over the counter with their Landbank cash cards. Early this year, the DSWD shifted to transaction accounts for grant distribution enabling the beneficiaries to receive funds from other sources, save their money, and make electronic fund transfers such as online bills payment. As of July 2023, there are 3,493,827 beneficiaries of 4Ps who have access to transaction accounts.
The 4Ps is the Philippine national poverty reduction strategy and a human capital investment program which was institutionalized with the passage of Republic Act 11310 on April 17, 2019. The program supports low-income households invest in the education and health of children up to 18 years old. The program has made significant impacts in reducing total poverty and food insecurity among beneficiaries, and has grown to become one of the largest CCT programs in the world, helping more than 6 million households since its inception. As of July 2023, the 4Ps serves 3,978, 736 active households and is being implemented in 148 cities and 1,481 municipalities across 81 provinces throughout the country. The BFIRST project supports 4Ps’ efforts to enroll new families who fell into poverty especially due to the pandemic and facilitate the transition of families who graduate out of the program.
The Kapit-Bisig Laban sa Kahirapan - Comprehensive and Integrated Delivery of Social Services (Kalahi CIDSS) has been supported by the Bank since 2002. Starting in 2014 it received funding under the KC National Community Driven Development Project (KC-NCDDP) with accumulative lending of US$779 million. The KC-NCDDP Additional Financing (AF) was approved by the World Bank Board of Executive Directors in December 2020 and is closing December 31, 2024. KC-NCDDP is implemented in the poorest municipalities in the Philippines, mainly located in areas characterized by high risks to climate change and livelihood constraints. It aims to empower poor and disaster-affected communities to participate in more inclusive local planning, budgeting, and implementation, and improve their access to basic services. Out of 948 poor municipalities in the Philippines, with a poverty incidence greater than or equal to 26.3 (2009 poverty threshold), 828 municipalities or 87% (a total of 19,647 barangays) were covered under the KC-NCDDP, and 676 municipalities (13, 934 barangays) are covered under the AF.
Impact Evaluation (IE) results indicated positive impacts on household consumption that contributed to reduction in poverty with a 12% increase in per capita spending among beneficiary households and an even higher increase (19%) for households that were identified as poor at project start-up. KC-NCDDP has so far funded 39,831 community sub-projects within the areas of basic access facilities (e.g., village roads, footbridges, footpaths), followed by social services (e.g., day-care centers, classrooms, health stations); environmental protection (e.g. flood and river control; and community production facilities and utilities (e.g. electrification and multipurpose buildings). About 319,968 Indigenous People households benefitted from the sub-projects. Implementation of community sub-projects also benefitted women where 34.8% are part of the sub-project's implementation workforce. Since the outset of the pandemic, KC-NCDDP has financed 2,654 isolation units and support training of barangay health emergency response teams in 86% of barangays. More than 2.1 million community volunteers have been mobilized in various positions since 2014.The Project has also contributed to enhanced local governance by providing a mechanism for closer engagement between the municipal local government units (MLGUs) and communities. 99% of municipal local government units (MLGUs) have poverty reduction action plans based on KC-NCDDP participatory processes, and 97% of MLGUs have increased representation of peoples’ organizations (POs) in local development councils.
Following Typhoon Haiyan in 2014, KC-NCDDP spearheaded an innovative response to assist disaster-affected municipalities through the Disaster Response Operations Modality (DROM), which was used again for COVID-19 and other disaster events.
To strengthen the government’s capacity to manage risks from climate change, natural disasters, and disease outbreaks, the Bank has provided the Fourth Disaster Risk Management Development Policy Loan with Catastrophe Deferred Drawdown Option (Cat DDO4) . The operation is supported by a technical assistance program to help (i) institutionalize the use of Rehabilitation and Recovery Plans for local government units (LGUs) to rapidly request and access funding from the National Disaster Risk Reduction and Management (DRRM) Fund; and (ii) integrate climate and disaster risk information of LGUs within the National Government’s central risk data system (GeoRiskPH platform).
The Ready to Rebuild (R2R) program was launched to train communities to be more prepared – to build a culture of preparedness to help local governments and communities anticipate the impacts of disasters and prepare recovery plans even before disasters hit. A total of 350 provinces, cities, and municipalities from all 17 regions in the country have undergone training , including those struck by Super Typhoon Rai. This translates to 1,800 governors, mayors, and technical staff. An additional 450 technical staff from 150 local governments were trained in the use of GeoRiskPH platform to integrate hazard and risk information into the local disaster risk reduction and management plans.
The technical assistance supports strengthening the delivery of community-based DRM related Technical and Vocational Education and Training (TVET) program to equip people in vulnerable local government units (LGUs) with critical and targeted skills to be able to quickly respond to and recover from disasters; increasing the compliance of National Government Agencies (NGAs) and LGUs in climate and disaster budget tagging; integration of climate change adaptation and disaster risk reduction measures in local investment programs and Provincial Commodity Investment Plans.
The Bank is supporting the Department of Science and Technology, Philippine Institute of Volcanology and Seismology, in collaboration with the National Disaster Risk Reduction and Management Council, Office of Civil Defense, and Department of the Interior and Local Government in the development and rollout of the PlanSmart Ready to Rebuild Automated Planning Tool for Disaster Rehabilitation and Recovery. This web application was developed to help the government formulate and implement hazard- and risk-informed programs and projects to better prepare for and recover from disasters. Thus far, over 400 participants from the National Capital Region, Central Visayas Region, Caraga Region, Southern Tagalog Region, and Bangsamoro Autonomous Region in Muslim Mindanao have been trained . This resulted in the integration of baseline data of 128 LGUs in the GeoRiskPH platform.
The financing also supported the urgent needs created by the COVID-19 crisis. This is combined with technical assistance to help enhance the capacity of national and local governments in developing effective response mechanisms through emergency cash transfers and Recovery Guide from COVID-19 with suggested strategies and financing options to help communities recover from the impacts of the pandemic.
The Bank’s assistance extends to conflict-affected areas in the country, providing support for service delivery, skills development, and enhanced participatory processes. Supported by five countries and the European Union, the Mindanao Trust Fund (MTF) (2005-2021) aimed to promote peace and development in conflict-affected areas in Mindanao. The MTF funded a series of three Reconstruction and Development Projects (RDPs), which fostered inclusive social and economic recovery, social cohesion, and participatory governance through a community-driven development approach, mainly in the area that in 2019 became the Bangsamoro Autonomous Region of Muslim Mindanao. More recently, the World Bank was selected by the Government of the Philippines and the Moro Islamic Liberation Front (MILF) to administer a new multi-donor trust fund to support Normalization, the track of the peace process that covers decommissioning and transformation of camps into peaceful and productive communities. The new Bangsamoro Normalization Trust Fund (BNTF) will be building on the achievements of the MTF.
The Philippine Rural Development Project (PRDP) has been helping raise rural incomes, enhance farm and fishery productivity, and improve market access throughout the country since it started in 2015. It has been supporting provincial planning, rural infrastructure, and agriculture enterprise development. It has been using tools such as geotagging , value chain analysis, expanded vulnerability and suitability assessments, and climate risk vulnerability assessments to strategically guide public investments toward a modern, value-chain oriented, and climate-resilient agriculture and fisheries sector.
The project has supported provincial investment planning for priority agricultural commodities in all 81 provinces of the country. Since 2015, the project has benefitted over 739,000 farmer and fisherfolk beneficiaries (97% of project’s end-target), 49% of them are female beneficiaries. The project has also constructed and rehabilitated over 1,950 kilometers of farm-to-market roads (about 600 kilometers more are underway). These resulted in reduction of travel time by 61% and reduction in transport costs by 23%. Results of a household survey indicate that farmers and fisher households benefitting from completed infrastructure and agricultural enterprise subprojects gained 36% increase in annual household real income.
In June 2021, the PRDP received US$280 million additional investment and €18.3 million grant to build on the gains achieved by PRDP. A new PRDP Scale up project with $600m IBRD has been approved in June 2023.
In June 2020, the World Bank approved Support to Parcelization of Lands for Individual Titling (SPLIT) project in the Philippines. The aim of this project is to enhance land tenure security and establish stable property rights for agrarian reform beneficiaries. The financing for this project became effective in October 2020. As of September 2023, the project has successfully distributed some 46,200 computerized individual titles. Once the project is completed, it is expected that approximately 750,000 individuals will benefit from improved land tenure security and stable property rights. These rights will cover an area of over 1.3 million hectares of land, which was earlier distributed under collective titles as part of the Philippine Comprehensive Agrarian Reform Program (CARP). The SPLIT project plays a crucial role in promoting equitable land distribution and empowering agrarian reform beneficiaries by ensuring their rights to the land they cultivate.
In the private sector, IFC has been a leader in developing the thematic bond market in the Philippines, helping banks issue green bonds since 2017 for climate-smart projects, including renewable energy, green buildings, and energy-efficient equipment. IFC also supported Ayala Corporation’s first social bond in healthcare for the first green cancer hospital in the Philippines and Union Bank’s social bond for financing micro, small and medium enterprises. In April 2022, IFC supported BDO Unibank's blue bond issuance to help tackle marine pollution and preserve clean water resources. This was the first blue bond for the Philippines and the first for IFC globally.
increase in average household income of farmers recorded under the Agrarian Reform Communities Development Project in the country
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The World Bank is proud to have been a partner of the Philippines for over 7 decades, mobilizing funding and global knowledge to support poverty reduction and shared prosperity.
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Globalization and Educational Restructuring in the Asia Pacific Region pp 189–231 Cite as
Globalization and the Philippines’ Education System
- Swee-hin Toh &
- Virginia Floresca-Cawagas
Some fifty years ago, the Philippines emerged from three centuries of Spanish colonialism and another five decades of US rule. In the euphoria of statehood, modern schooling that had been significantly shaped under American tutelage promised hope and mobility for individuals and economic progress for the country. After fifty years of post-colonial development, it is imperative to reflect on the value of education in the lives of more than 70 million Filipinos.
- World Trade Organization
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- Quezon City
- Modernization Paradigm
- Newly Industrialize Country
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Toh, Sh., Floresca-Cawagas, V. (2003). Globalization and the Philippines’ Education System. In: Mok, Kh., Welch, A. (eds) Globalization and Educational Restructuring in the Asia Pacific Region. Palgrave Macmillan, London. https://doi.org/10.1057/9781403990488_7
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An Overview of Globalization in The Philippines
From what I have researched, it is a process in which the nations all over the world are becoming closer and connected by ways of trading goods, produce, etc., and culturally knowing what are the differences and similarities of the different countries around the world to your own country and nation. Globalization has grown due to advances in transportation and communication technology. With the increased global interactions comes the growth of international trade, ideas, and culture. Globalization is primarily an economic process of interaction and integration that’s associated with social and cultural aspects. However, conflicts and diplomacy are also large parts of the history of globalization, and modern globalization.
There are three (3) different types of Globalization: Economic, Cultural, and Political. Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, services, technology, and capital. Cultural globalization refers to the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations. This process is marked by the common consumption of cultures that have been diffused by the Internet, popular culture media, and international travel. This has added to processes of commodity exchange and colonization which have a longer history of carrying cultural meaning around the globe. Political globalization refers to the growth of the worldwide political system, both in size and complexity. That system includes national governments, their governmental and intergovernmental organizations as well as government-independent elements of global civil society such as international non-governmental organizations and social movement organizations. One of the key aspects of the political globalization is the declining importance of the nation-state and the rise of other actors on the political scene. Another type of Globalization is Environmental Globalization. Environmental globalization is related to economic globalization, as economic development on a global scale has environmental impacts on such scale, which is of concern to numerous organizations and individuals.
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While economic globalization has environmental impacts, those impacts should not be confused with the concept of environmental globalization. In some regards, environmental globalization is in direct opposition to economic globalization, particularly when the latter is described as encouraging trade, and the former, as promoting pro-environment initiatives that are an impediment to trade. An essential aspect of globalization is movement of people, and state-boundary limits on that movement have changed across history. The movement of tourists and business people opened up over the last century. As transportation technology improved, travel time and costs decreased dramatically between the 18th and early 20th century. For example, travel across the Atlantic ocean used to take up to 5 weeks in the 18th century, but around the time of the 20th century it took a mere 8 days. Today, modern aviation has made long-distance transportation quick and affordable. Looking back to the history of our country, during the Spanish Colonization of the Philippines from 1565-1989, I can say that there wasn’t much of a progress in terms of Globalization except that they shared with mainly their religion, which until this day, majority of our countrymen have the same religion as what the Spaniards shared with us during their reign over us, which was Catholicism.
Next is during the 3-year rule of the Americans, where the majority of what they shared with us was their products and cultures, which were their food, products, and they also, introduced social reforms, and implemented plans for economic development. After the American Colonization was the Japanese colonization during 1942 until 1945, where not much was recorded on what was specifically gained from that time period in the Philippines’ history. After the colonization’s on the country during WWI and WWII, the Philippines were heavily dependent on the US Markets, while the US had continuous control of several military installations. From then on, the Philippines was looked upon as a major intermediary between Asia and the West, since the country was located in Asia, but majority of the people residing in the country spoke English and were Catholics.
Based on the data that I have researched, and comparing it to the definition that I have read about globalization, our country has gone through some form of globalization in the past, although it wasn’t that great of an impact compared to what we had to go through and what happened to what we have gained. In the present time, I think globalization is a big impact for our country because it helps us develop our connections to several countries, not only those that surround us, but also to the other countries around the world.
If our country continues to develop its relations with its neighboring countries, then it will be very impactful and beneficial for the progress of the Philippines for the future. One example is that Globalization can bring a lot of job opportunities to our countrymen. Through Globalization, our current relationship with our neighboring countries can be a way for our government to encourage foreign companies and businesses to create jobs opportunities for our fellow countrymen or hire them for jobs, whether it be working locally in the Philippines, or abroad in their other offices. Another impact is that Globalization can and may continue to help Filipinos understand better on what are the goings-on in our country, our society. In the Philippines, globalization is important on how it works in the economy and the development of the technology.
The education in the Philippines now compared to what it was a few years back, has significantly improved. The education that Philippines offer is now recognized even outside of the country; it improved so much that even foreigners are now studying here since the education here is much cheaper and the cost of living in the Philippines is also cheaper. That is another impact in my opinion: Tourism. If we can continue to improve on our system, not only in the educational part, but also in others, I think that we, as a nation, can benefit greatly from this.
One negative impact that I see from Globalization is the further decrease of our traditional practices, mentality, and culture. In the present time, we, as Filipinos tend to forget the practices and traditions that have been taught to us by our elders. Being exposed to the western culture more, most of the Filipinos now are more interested on what are the trends that most people are following. For example, most teenagers now are more inclined on what their peers have, with the thinking that they too, should have what those around them have. The impact of globalization in the Philippines technology brings more positive effect because it helps to increase the economy of the Philippines. Because of the information technology with the latest and modern use, it improves the flow of all company products and also it minimizes the work of every Filipino. The Philippines, through Globalization, can offer a good quality product outside the country and Filipino people can serve their best to others. Through globalization, the service of goods and product is easily served and done to deliver it to each respective destination.
Globalization can help Filipino people to know about the international status and rights of each country in the world. Globalization is also a big part in the improvement of local and social culture in the Philippines. It helps connect relationships to other countries through investments and some business opportunities. Competition in the market is largely due to globalization. As a result, the positive effects are visible, since global competition leads to products of high quality. The enhanced quality of both products and services are based on production approaches of customer demands and customer services. For domestic companies to survive in the market, they are forced to raise their customer satisfaction levels, as well as their standards, while fighting competition from foreign companies. Besides, a global product must live to its goodwill when it gets into a new country. For example, the competition between Samsung and Apple has raised the market standards, as well as the customer service. Increased production means increased utilization of natural resources. Besides, increased trade results to increased transport, which uses fossil fuels.
As a result, pollution has increased, leading to climate change. The changes in climate are now a serious threat to humanity and the future of the world, all because of globalization. Globalization has led to increased market competition, hence leading to fluctuation in prices. The impact is adverse, as the ability to sustain social welfare in the Philippines gets reduced. Globalization has notably declined the gap between rich and poor people. For many centuries there has been a wide gap between these groups, a gap that seemed to widen every year. Globalization enabled poor people to have access to job opportunities. A long time ago people who worked in government sectors and companies got high salaries, but now even overeducated employees earn a little money. As a result, many employers hire qualified workers and pay them less than they deserve. Due to their expenses of maintaining companies’ specific image, the highly paid workers live a stressful life while the low-income people seem to have a stress-free experience. The number of low-income people working as casual laborers has continued to decrease as most young people acquire education. These young, educated people perform multitasking jobs to get enough money to enable themselves and their family to live a decent life.
Consequently, a constant difference between the rich and the poor reduce considerably. Most industries employ only skilled workers due to complicated systems of operation. Those without skills seek employment in other states. Instead of staying without an income, most people don’t mind the displacement as long as they are going to earn for a living. Thanks to globalization, there are employment opportunities all over our huge world. However, most people have had to leave their families for many years as they work abroad. As a result, couples have divorced, remarried and left destitute children at the mercy of volunteers and shelters. Globalization is viewed by many as a threat to the world’s cultural diversity. It is feared it might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West. An example of this is that a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have thriving film industries.
In conclusion, Globalization can be both beneficial and harmful for a country. For developing countries like the Philippines, it may be best to check all possible outcomes, May it be beneficial or harmful, and take everything into consideration before acting on such things. If things are not put into careful consideration, it may do more bad than good to the country.
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- Note, K. (2017). The Challenge of Globalization for Small Island Developing States. Dialogue & Alliance, 31(1), 70–72. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=rfh&AN=ATLAiFZU171023000250&site=eds-live
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In other words, globalization provides the most benefits to the developed world, though it can be an engine for economic growth in the developing world. The problem is that in the developing world it is just as likely that globalization will be used as a method to exploit cheap labor and unstable governments to the benefit of profit margins in the developed nations of the world. Thus, a developing nation such as the Philippines needs to be especially careful in entering into the global marketplace and embracing trade liberalization without first enacting domestic policies that protect itself from exploitation. Probably the most appropriate response for many developing nations, and the Philippines in particular, is to apply selective liberalization instead of completely embracing free market policies. Selective liberalization would allow the government -- if stabilized and governed by rule of law -- to strategically open some of the nation's stronger industries to international competition and global markets, while careful protecting those fledgling industries that are not yet able to compete effectively on a global scale. This tactic would also permit the Filipino worker to be protected from exploitation and give the government the chance to enact social reforms that could enhance the economic development of the nation without depending on the whims of globalization. Free trade is a powerful ideal, but it must be preceded by steady, sustainable development so that the Philippines enters the global marketplace as a strong force in the region. The unfortunate reality is that the Philippines cannot compete with the larger economic powers in the world such as the United States, Europe, or China (Bello 4). Until that is possible in the future, it is more important that the country ease itself into the global market rather than jumping in without first preparing and strengthening the domestic scene. The Philippines, in an effort to capitalize on globalization, began a program of extensive economic liberalization more than twenty years ago that has thus far netted no positive results. For the nation, embracing globalization has been an utter failure. Institutional, infrastructural, social, bureaucratic, and economic weaknesses have combined to make the nation too unstable to compete globally and simultaneously unable to protect its local economy from foreign exploitation. Until these deficiencies are corrected and improvements made to the strength and efficiency of national and social institutions, it is unlikely that globalization will be anything but a bane for the Philippines. Works Cited Austria, Myrna S. "Assessing the Competitiveness of the Philippine it Industry." The Philippines Institute for Development Studies. Jan. 2000. 2 Dec. 2007 http://dirp4.pids.gov.ph/ris/dps/pidsdps0003.pdf. Austria, Myrna S. "Competitiveness of the Philippine it Industry: What Lies Ahead." Philippine Institute for Development Studies. Feb. 2000. 2 Dec. 2007 http://dirp4.pids.gov.ph/ris/pdf/pidspn0002.pdf. Austria, Myrna S. "Liberalization and Regional Integration: The Philippines' Strategy to Global Competitiveness." The Philippines Institute for Development Studies. Apr. 2001. 2 Dec. 2007 http://dirp4.pids.gov.ph/ris/dps/pidsdps0109.pdf. Austria, Myrna S. "The Philippines in the Global Trading Environment: Looking Back and the Road Ahead." Philippine Institute for Development Studies. Nov. 2002. 2 Dec. 2007 http://dirp3.pids.gov.ph/ris/dps/pidsdps0215.pdf. Banlaoi, Rommel C. "Globalization and Nation-Building in the Philippines: State Predicaments in Managing Society in the Midst of Diversity." Chapter 16 in Growth & Governance in Asia. Ed. Yoichiro Sato. Honolulu: Asia-Pacific Center for Security Studies, 2004. 203-214. Bello, Walden. "Can the Philippines Handle Globalization?" Focus on the Global South -- Philippines. 17 Feb. 2005. 2 Dec. 2007 http://www.focusweb.org/philippines/content/view/88/6/. International Economic Environment and the Philippine Economy." Policy Notes. Philippine Institute for Development Studies. Aug. 1998. 2 Dec. 2007 http://dirp4.pids.gov.ph/ris/pdf/pidspn9804.PDF. Lanzona, Leonardo a. (ed.). The Filipino Worker in a Global Economy. Philippines: The Philippine Institute for Development Studies, 2001. Patalinghug, Epictetus. "Globalization and State Capacity: The Philippines." Philippine Institute for Development Studies. Dec. 2003. 2 Dec. 2007 http://dirp4.pids.gov.ph/ris/dps/pidsdps0320.pdf. Tillah, Mirshariff. "Globalization, Redemocratization and the Philippine Bureaucracy." Philippine Institute for Development Studies. Apr. 2005. 2 Dec. 2007 http://dirp4.pids.gov.ph/ris/dps/pidsdps0509.pdf.
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