Abigail T.

Pia

International Development 41

International Political Economy

Mr. Jumel Estrañero

De La Salle University-Dasmariñas

How does Philippines react and act with US and China given the past ramifications between RP and US
(last admin) and RP and China during Aquino admin?

Former President Benigno Aquino balanced China's broad maritime claim in the South China Sea
from 2010 to 2016. By shifting the AFP's emphasis away from domestic security and toward territorial
defense, strengthening security ties between the Philippines and the US, purchasing American military
hardware, requesting from Washington an explicit security guarantee under the 1951 Mutual Defense
Treaty (MDT), and promoting a strategic alliance with Japan, President Aquino challenged China. Even
though the Philippines was given a favorable ruling by the Permanent Court of Arbitration (PCA) on July
12, 2016, the Duterte government is undoing the balancing goal of its predecessor by relocating away
from the United States and toward China.

Back in 2021, Rodrigo Duterte, President of the Philippines since 2016, vowed to reorient the
nation's foreign policy away from the United States, a longtime ally under treaty, and in favor of China
and Russia. To win over his hosts, Duterte said it was "time to say goodbye to Washington" on his first
visit to Beijing that year. Subsequently, Duterte engaged in more acts and outbursts meant to win over
China and break ties with the United States. Duterte was never particularly strong in either consistency
or principles, though. Last year, almost as effortlessly as he switched one way, he's flipping the other: His
China-friendly strategy is essentially done, and he's trying to regain America’s influence in the
Philippines. Duterte's break with Beijing may have huge ramifications at a time of increased superpower
tension in Asia, when senior U.S. officials are warning of the risk that China could attack Taiwan, and as
China becomes unshakeable in its claims to disputed regions. For the United States to successfully deter
Chinese action in Asia in general and the South China Sea specifically, access to Philippine military bases
is crucial. That access was in jeopardy when Duterte courted China and insulted the US; in his last term
last year, connections with the US are once more being strengthened.

How do you see Philippine's approach to maintain political economy gains in favor of our state interest
for the next 5 years?

To protect its national interests in the face of the geopolitical struggle between the United States and
China in the Indo-Pacific area, the Philippines has implemented a dynamic balancing policy. The linkages
between politics, economics, and other spheres deserve more of our attention. Every government must
make difficult choices on the best course of action, including what restrictions to apply and when to relax
them, where to spend money and how to raise it, and which domestic issues may be put on hold to
promote international cooperation. Recommendations for public health, economic factors, and political
restraints must all be considered. Where we stand depends on where we sit, so I really can’t tell.

3-5 ways and means of RP on this matter whether our protectionist policy became more lose or tighter.

Just like what’s currently happening in the Philippines, Free trade is preferable to protectionist
policies since they promote slower economic development and higher inflation while harming the
people and businesses they are meant to defend. Therefore, the measures may contribute to domestic
employment growth, a rise in GDP, and increased global competitiveness of the local sector. The
following are some potential approaches and means, in my opinion:

Import Quotas - Quotas are used to restrict an exporter's ability to provide an importer with a certain
quantity of a certain product. This is often a less extreme course of action that has a small impact on
costs and raises demand for domestic companies to fill the gap.

Government Subsidies can take many different shapes. They can generally be either direct or indirect.
Business recipients of direct subsidies receive payments in cash. Indirect subsidies take the form of
unique savings, including tax cuts and interest-free loans. Government authorities may decide to offer
direct or indirect subsidies in the areas of production, employment, tax, property, and other things when
considering subsidies.

Balance of Trade, another option for improving a nation's trade balance is to provide export subsidies to
companies. Export subsidies encourage home companies to grow internationally by boosting their
exports abroad.

References:

Derek G. (2021) Foreign policy Magazine. Duterte’s Dalliance with China Is Over
https://foreignpolicy.com/2021/11/02/duterte-china-philippines-united-states-defense-military-
geopolitics/

Renato Cruz de Castro (2016) Sage Journals. The Duterte Administration's Foreign Policy: Unravelling the
Aquino Administration's Balancing Agenda on an Emergent China
https://journals.sagepub.com/doi/10.1177/186810341603500307

The Investopedia Team (2022) Protectionism: Examples and Types of Trade Protections
https://www.investopedia.com/terms/p/protectionism.asp

We- Chih Chao (2022) The Political Economy of the Philippines and Its Development Strategy under
China-USA Power Rivalry and Hegemonic Competition: Hedge with Balance
https://www.tandfonline.com/doi/abs/10.1080/10971475.2022.2136694?src=&journalCode=mces20

Jeffrey F. (2020) THE POLITICAL ECONOMY OF ECONOMIC POLICY

https://www.imf.org/en/Publications/fandd/issues/2020/06/political-economy-of-economic-policy-jeff-
frieden
Message to my Professor:

Sirrrr! Thank you for everything! I have learned a lot! Grateful cuz we were able to meet onsite kahit
once lang. Sayang it would be extra fun if nakapag- meet yung whole class with you at least once a week.
Didn’t know you were that cool pala as a Prof YIEEE, with props pa to get us absorb the topics! I really
appreciate that; it was very entertaining! I was shocked you knew my name, and you were like “Abi? Ah
ikaw pala yun? Abigail Pia? Yung DL? I heard good things about you” (non-verbatim haha) I really didn’t
see that coming, I will never forget that it reverberates in my head hehe. Pero, Sir. seriously, I’m very
grateful that, we have a cool, considerate, fun, smart and full of substance Professor like you po. 😊 Take
care always, Sir. Stranger! God bless!

Your IDS student,

ABI