Globalization: Worsening Philippine Socio-Economic Crisis

Undeniably, globalization benefited different parts of the world through technological

advances, innovations, cultural advances, economic development mostly of developed
countries, as well as rise of financial systems. It has put countries like USA to power over the
others as it served as initiators of implemented globalization policies through its established
world organizations.

The Philippine economy has become increasingly integrated with the global economy
through trade openness, labor migration and financial openness. Since 1990s, our country
has played role in global market for import and export of goods and services. From that time,
trade openness continuously increase, improving country’s GDP. According to Dudley
(2017), trade openness reflected declining transport costs and improving information and
communications technologies allowing companies to manage their businesses efficiently.

Along with this, financial openness has become part of the Philippines’ aid to continuing
economic development. Part of which are the liberalization of foreign bank entries and
engagement of the national government to portfolio and direct investments. Until now, these
foreign investments are rampant through the Duterte administration’s “Build, Build, Build”,
attracting foreign investors build infrastructure projects on country’s key positions for trade
and industry.

Since the 1970s, the Philippines has been open to labor mobility. Emigration further increase
due to employment overseas. Commonly cited as Filipinos’ main reason to seek work
overseas is the country’s unemployment situation. Aside from this, employment
opportunities in other countries are perceived to offer higher salaries and better
compensation.

In exchange for a “continuing economic development” of the Philippines through

globalization, our socio-economic crisis worsens. Neoliberalism continues to dominate us, as
globalization expands. Thus, exacerbating our living conditions and burying us in debts.

Despite growth reported, the economy shed less job opportunities resulting to massive
unemployment due to worsening contractualization, informal work and failing real wages.
From 1994 to 2020, unemployment rate averaged to 8.3%, reaching an all-time high of
17.7% in the second quarter of 2020 accounting to 7.3 million Filipinos. Also, poor-quality
jobs are persistent with low-paying and insecure work with little or no benefits received.

As a result of the neoliberal policies being implemented, weak economic base aggravates.
Our economy offers cheap wage, liberalize agriculture and minimal rural development,
liberalize trade and foreign investor-biased industry, and over-reliance on global markets.
With this, a number of Filipino families in and below the poverty line remain significant.
According to Philippine Statistics Authority, around 16.7% of the country’s population,
equivalent to 17.7 million Filipinos, are living in poverty in 2018.
Establishments of manufacturing sectors continue to grow living behind production sectors
such as agriculture, in shrunk. This only shows that economic growth is not happening in the
production sectors that could create jobs, raise incomes and become basis of local
industrialization that greatly contribute to the growth of our economy.

With neoliberal policies come anti-development policies. Our natural resources, including
land and water, are plundered by allowing corporate interests. Privatization of public
utilities such as water, power and telecommunications become rampant, as well as,
commercialization and inaccessibility of poor major social services such as education, health
and housing.

Beyond doubt, globalization put countries to its current state. But, behind all of these
advantages are great effects on the living conditions affecting growth of the real economy.
As of June 2020, the general government debt of our country amounted to 9.05 trillion pesos
and will continue to rise as these anti-development policies are unaided carried as burdens
of millions of Filipino people with worsening way of life. Unquestionably, resistance of
individuals and groups become rampant as socio-economic crisis worsens.

REFERENCES:

Dudley, W. (2017). Benefits and challenges for globalization. Remarks for the Bombay
Stock Exchange, 11 May.

De Vera, B. O. (2020). P83,239: Each Filipino’s share of P9.05T debt as of end-June. Philippine
Daily Inquirer. Retrieved from: https://business.inquirer.net/303886/p83329-each-
filipinos-share-of-p9-05t-debt-as-of-end-june#ixzz6WlLTVbPo

Guinigundo, D. C. (2017). The Globalisation Experience and its Challenges for the Philippine
Economy. A paper prepared for the Bank for International Settlements (BIS) Emerging
Markets Deputy Governors Meeting, 8–9 February 2018, Basel, Switzerland.

IBON Media and Communications. (2017). Rehashed Neoliberal Policies: One year of
Dutertenomics. Retrieved from: https://www.ibon.org/rehashed-neoliberal-policies-one-
year-of-dutertenomics/

Philippine Statistics Authority. (2020). Updated 2015 and 2018 Full Year Official Poverty
Statistics. Retrieved from: https://psa.gov.ph/poverty-press-releases

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