Philippine Economy and Politics Advancing to Globalization: Its' Effects on Filipinos

Economic and political globalization impacts on the Philippines and Filipinos will be analyzed in-depth, focusing on the latter. Is the Philippine Economy and Politics truly making its' way to Globalization?

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According to Shangquan (2000), Economic Globalization is the growing interconnectedness of world economies due to the increasing volume of cross-border trade of commodities and services, the movement of international money, and the vast and rapid dissemination of technology. The rapidly growing relevance of information in all forms of productive activities and marketization are two of the most fundamental factors of Economic Globalization.

In other words, the recent rapid Globalization of the world's economy has been primarily based on rapid scientific and technological growth. It has emerged from an atmosphere in which the market economic system has rapidly extended around the world. And has developed based on an increasing cross-border division of labor that has penetrated down to the level of production chains within different countries' enterprises. The financial sector's Globalization has become the fastest growing and most influential part of economic Globalization. Worldwide finance was created to meet the demands of international trade and investment. However, as economic Globalization has progressed, it has grown increasingly self-sufficient.

In contrast to commodities and labor markets, the financial sector driven by an elitist mindset is the only one that has genuinely achieved Globalization in the sense of Globalization; as a result, it harms the most vulnerable Filipino society. Globalization of the economy is also a process of worldwide industrial reorganization and readjustment. All countries' industrial structures have been readjusted and improved as science and technology advance and wealth levels rise. The adjacent periods of the Philippine economy where one can visualize this is during Marcos' regime. Under his regime, many rushed infrastructures with poor foundations were built – this follows his first lady Imelda Marcos' tagline of "the true, good, and beautiful" to cover all the ugly truths that have occurred during Martial Law. Following Marcos' administration, the Philippines became heavily indebted to foreign creditors. There was also a lot of corruption and illegal groundwork under Marcos' administration. Fortunately, the Philippines slowly recovered economically years after that, and the World Bank named the Philippines as Asia's Rising Tigers in 2013, under the presidency of Benigno "Nonoy" Aquino III. However, the economy has grown slowly and unevenly during the present administration, particularly considering the administration's handling of the COVID19 pandemic.

In recent years, wealthy countries in the west have begun to relocate numerous labor-intensive businesses with low international competitiveness to emerging countries, ushering in the era of the information economy. This cross-country movement is accelerating the growth of economic Globalization in its entirety. Economic Globalization has heightened competitiveness on the international market between businesses from various countries as a result of this. Both local and foreign firms have been turning to mergers and acquisitions one after the other to strengthen their positions and competitiveness on the worldwide market, resulting in waves of industrial restructuring. The dramatic disparity between the informal settlements and the nearby modern city center exemplifies the growing inequity brought on by Globalization. These living circumstances are necessary to maintain a low cost of living to keep wages low and working conditions at a minimum, benefiting American businesses. President Duterte has maintained a pro-American strategy that permits foreign developers to demolish thousands of homes for profit and successfully criminalizes informal settlements, and legalizes their removal in the guise of urban renewal. America still subjugates the Philippines through neocolonialism, including repression, chronic extreme poverty, and human rights violations. However, the Filipino people's tenacity has been demonstrated throughout history, from revolutionary warfare to modern-day labor and housing rights campaigns.

In analyzing the state of the Philippine economy, there is a profound impact in terms of trade, finance, and migration. Trade globalization and migration have been more prominent in the Philippines than in financial Globalization. While empirical estimates demonstrate that Globalization has had a favorable impact on the country's economic growth and employment, substantial evidence for its effects on inequality and poverty has yet to be discovered, with preliminary estimates yielding conflicting results. According to the assessment of Foreign Exchange liberalization reforms, trade openness and foreign portfolio movements have contributed to more vital per capita GDP development in the Philippines. In the labor market and among industries, there are winners and losers. As a result, more inclusive policies may mitigate the adverse effects of Globalization while also facilitating changes to narrow the gap between winners and losers. The Bangko Sentral ng Pilipinas has made significant contributions to this goal, primarily through its focus on low inflation, the active engagement of more comprehensive financial inclusion, and increased participation in global cooperative efforts to promote rule-based international transactions and stable inflation; improved financial inclusion facilitation; and increased involvement in global joint efforts to strengthen rule-based international transaction (Guinigundo, 2017).

In times of Globalization, it is vital that we also examine our strengths and weaknesses. Underdevelopment in the Philippines is a natural history of oppression. It is amplified by the belief that poverty can be addressed by allowing Western countries to bring wealth and technology. This widespread loop promotes underdevelopment and repression in the Philippines. The government is heavily dependent on foreign creditors and imports, leaving no room for Filipinos' agricultural and mineral products. Consumerist culture from capitalist countries is displacing national culture. While the elites continuously gain status and power, the poorest Filipinos remain marginalized and suffer from chronic poverty. To keep competitive in the global economy, the Philippines must keep pace with its regional counterparts in terms of cheap salaries and high productivity. As a result, the Philippines' working poor have been subjected to widespread exploitation. Workers continue to face risky working conditions as a result of low safety laws, in addition to exploitative wages. Local governments enforce labor laws arbitrarily and sometimes turn a blind eye to industrial owners' workplace abuses.

While Globalization has no direct influence on poverty, it can indirectly impact economic growth and wealth inequality. If increased economic growth rates are coupled with an increase in inequality, the country's poverty may intensify. Growth and increases in inequality both have an essential role to play in influencing changes in poverty. Changes in distribution can significantly impact poverty, and in some situations, they can even cancel out the gains of growth.

Late President Benigno "Nonoy" Aquino enacted considerable reforms to address the issue, including essential reforms in state enterprise governance, public finance management, and social programs. However, the Conditional Cash Transfer (CCT) Program successfully used efficient incentives to eliminate poverty and set development. He implemented several controversial but critical structural and anti-corruption changes that the current administration failed to preserve.

Equally important, because of the Globalization of politics, groups can operate at a higher level than the state through political integration schemes. The most prominent two examples are the United Nations and the European Union. Other integrated organizations include the International Monetary Fund, the World Bank, and the World Trade Organization. Nongovernmental Organizations (NGOs) also participate in International Government without being affiliated with any one country. The trigger factor for this move is global communication systems. (Global Policy Forum, 2021). Political Globalization is a notion withdrawn from the political economy, sociology, socio-economic, cultural studies, and political science aspects. (Cameron & Palan, 2018).

Furthermore, Globalization has had a considerable impact on Philippine politics, with the Philippines proposing and enacting laws similar to those enacted in other nations. Even though our country's Church and Government are now separated, we remain conservative and traditional due to centuries of deeply held Filipino customs and traditions, unlike other Western nations. With Globalization's influence, the government is now taking slow steps to advance the legal system and proposed legislation such as the now-approved House Bill No. 7303 reinstituting absolute divorce as an option for dissolution of marriage or the Divorce Bill. The Sexual Orientation and Gender Identity Expression Equality Bill, or the Anti-Discrimination Bill, is still being debated. In addition, we now have Republic Act No. 10533, or the Enhanced Basic Education Act of 2013, which adds two years to Basic Education in the Philippines, namely Grades 11 and 12 (Senior High School), to emulate the educational systems of other adjacent nations. The law is reported to have been enacted to harmonize ASEAN (Association of Southeast Asian Nations) educational systems.

On the plus side, the K-12 program, implemented during the previous administration, changed the traditional education system's six years of elementary school and four years of high school program and curriculum to meet international standards and change the minimum age of consent laws moral liability. On the negative side, foreign nationals, most Chinese, are more likely to live in urban areas and even start fraudulent businesses because the government 'tolerates' them to enter the country. After all, the Philippine-China bilateral relationship is more potent than it was under the previous administration. Furthermore, bypassing a divorce bill that safeguards women's rights from discrimination and abuse by the country's patriarchal society, the proposed divorce law was believed to be utilized to demolish the sacredness of marriage and tight family relationships.

On top, the Tax Reform for Acceleration and Inclusion (TRAIN) as Republic Act (RA) No. 10963 - Package 1 was signed into law by current President Rodrigo Duterte on December 19, 2017. It aims to fund the Build Build Build Project of the current administration. It was also stated that it would help sustain the high and wide-ranging growth of the country. It contains tax reforms such as modifications to the National Internal Revenue Code of 1997's provisions on personal income taxation, passive income for both persons and corporations, estate tax, donor's tax, VAT, excise tax, documentary stamp tax (DST), and tax administration. (DOF, 2018). It is now distinguished as critical to providing employment and education to individuals in the agricultural sector who will assist in closing the gap between the poor and the disadvantaged. If the government focuses on a long-term agrarian reform, it may contribute to our country's economic revival. Due to the high demand for import items, which reduces the capacity to yield their capital on seeds, millions of profits and fruits of Filipinos who work in agriculture go to waste. The vast majority of poor Filipino households are affected by the increased taxation rates mandated by the TRAIN Law, including groundbreaking taxation rates on sweetened beverages, petroleum goods, and even commodities. According to the tax reform program's goal of raising an additional Php600 billion, the poor are making up for these revenue losses while the wealthy are relieved. By taxing the rich more, the government could have eased the burden on the middle class. Now that he is on his last term – the recession of economic foreign debt and problems may require a new successor who can also think and propose a better way to address these concerns.

One of the most challenging issues that Globalization poses to politics is determining what is best for a country. The global economy is sometimes far more deeply embedded than it appears at first look. Tariffs intended to aid industries can instead harm those same businesses in other ways, limiting the investments in the economy. Furthermore, it isn't easy to determine the motives of influential people or how much support specific laws will receive worldwide. The TRAIN Law once again seems a failed attempt to help reduce poverty because it does not favor the poor and does the opposite to the rich. Those in the middle class may not grasp how this might harm them now that their income tax has decreased. It is anticipated that money will eventually lower its' value. During this pandemic, money is primarily valuable in terms of food, education, and shelter. With the recent price increases in the food market, more Filipino families in the middle, working, and lower classes are significantly affected. Before, a Php500 could buy a kilo of rice, pork, and some sinigang ingredients. Now, with a Php500 bill, however, you can hardly buy pork and ingredients.

Moreover, given the fact that not all Filipino families have a hundred five pesos bill in their pocket, it worsens these families' living conditions. The law seemed good as imagined; even so, we must express our constructive criticisms about the reality of this mandated law. It will not just benefit us, but it can also help improve our fellow countrymen's hunger and economic deprivation issues.

Globalization of politics is further separated into various subgroups, including economic, cultural, and legal Globalization. According to Global Policy Forum (2021), the Globalization of the economy has resulted in the largest free market in history, primarily because of the developments in technology, communication, and international policy. Various international financial institutions are not affiliated with any one jurisdiction. It benefits investors greatly, but it comes at a tremendous cost to local workers in each country. As a small rising power, the Philippines seeks to help on both sides of the fence. It is still one country that views geopolitics only in terms of self-interest, making it easy to manipulate more significant players with more powerful propaganda armies. Recently, there have been allegations of PhilHealth's corruption of over P15 billion in money. Until yet, justice has not been served, and the allegedly 'liquidated' funds have turned to ash. Government authorities, in my opinion, should establish well-researched and tested strategic laws and repeal those that do not contribute to the nation's economic progress.

Additionally, there is the drug war, extrajudicial killings, and the red-tagging of journalists, activists, and University of the Philippines students. And because of the chaotic and unpredictable fluctuations in national politics in the Philippines, even the denial of the franchise of the enormous media news outlet – ABS-CBN and impunity in the government have a significant impact on foreign investors. The players to worry the most for Filipinos are those with deep ties to global multinational firms that sold out to China for short-term profit, considered the weakest players. And those who are already in the lowest sector of the Philippine Economy.

References

Burges, S. (2013). Economic Integration. Brittanica. Retrieved from: https://www.britannica.com/topic/economic-integration

Witkowska, J. (2016). Integration Processes in the Global Economy: Current State and Prospects. The Cases of the European Union, ASEAN Economic Community, and NAFTA. Journal: Comparative Economic Research, v.19, Number 4, pp. 47-65. University of Lods, Institute of Economics. Retrieved from: https://www.econstor.eu/handle/10419/184406