Question

Your Insight about the topic Globalization and Filipino Culture and discuss the economic, political, cultural, and social Globalization that Filipinos here and abroad experience.

Answer 1

• Globalisation is defined as the mobility across borders of goods and services, people, capital and knowledge

• in the past centuary world economy was intergrated due to globalisation and liberlisation

• Emerging market economies (EMEs) have also become much more tightly integrated in terms of trade, finance, global value chains (GVCs) and migration

• The Philippine economy, like that of most other EMEs, has become increasingly integrated with the global economy.

• This is due to increase in trade in goods and labour migration. There is also greater integration in finance, albeit at a relatively moderate pace.

• This trade openness also reflected declining transport costs and improved information and communications technology that supported the development of complex GVCs, particularly in electronics and electrical components, allowing companies to manage their production more efficiently

• financial openness, globalisation came in at a more moderate pace.

• While the Philippines started to liberalise the foreign exchange (FX) regulatory system in the 1990s, capital inflows were dampened by the Tequila (Mexican peso) financial crisis in 1995 and the Asian financial crisis in 1997–98 (Tetangco (2005))

• International migration from the Philippines increased further as data from the United Nations indicate that the ratio of Filipino migrants to the country’s total population went up from 3.5% in 1995 to 5.4% in 2017 and the ratio of the stock of overseas Filipinos to the country’s total population increased from 9.4% in 1997 to 10.4% in 2013.

• The Philippines has been open to labour mobility since the 1970s, and this has provided the country with decades of experience as a source of international migrants.

• The primary reason for Filipinos’ continued emigration has been to seek employment overseas. While the Philippine economy has been steadily improving in recent years, with unemployment rate declining from 7.5% in 2009 to 5.0% in 2017

Economic

• globalisation has a positive effect on the country’s economic growth and employment.

• trade openness and foreign portfolio flows have contributed to higher per capita GDP growth in the Philippines, following the implementation of FX liberalisation reforms.

• A significant increase in OF remittances has raised consumption, investment, labour productivity and economic growth. These OF remittances have also supported the Philippine economy during normal times and crisis situations in the past, and this is expected to continue in the future

• FDI increases employment growth and gross value added, not just in the manufacturing sector itself but in other sectors as well, including construction, financial intermediation, and transport, storage, and communication.

• sustained growth in employment and salaries obtained from the global offshore IT-enabled services industry over the years has greatly increased household spending and investments

  • Inflation

    • globalisation is also considered as one of the factors for the observed decline in the sensitivity of inflation in the Philippines to changes in real economic activity or the flattening of the Phillips curve.

    • On the one hand, a flatter Phillips curve implies that demand shocks and policy errors will not translate into large inflation movements.

    • On the other hand, this means that, if inflation is above target, bringing it down to the target level would entail a greater sacrifice of output, giving greater weight to the central bank’s commitment to its primary responsibility for price stability

  • Poverty alleviation and income inequality

    • increasing globalisation is its impact on poverty alleviation and income inequality.

    • Preliminary estimates show that an increase in trade openness contributes to reduction in income inequality in the Philippines, such that a 1 unit increase in the trade-to -GDP ratio can reduce the Gini coefficient by 0.04 unit.

    • higher rates of growth can reduce poverty

    • growth and inequality changes play a major role in generating changes in poverty.

    • globalisation has no direct impact on poverty, globalisation can affect poverty indirectly through its impact on economic growth and income inequality.

Politics

• In 1998 elections by mid-1997, Political parties and politicianswere all gearing up for the general elections the following year.

• However, a certain clique in the Ra-mos administration feared discontinuity in the reforms if a new president were to be elected.

• Thus,they got involved in trying to amend the constitution to extend Ramos’ term but failed in the latter partof the year.

• Political issues were substantially dominant at the out-break of the crisis. Thus the government’s early response was quite limited.

social

• Labor market and employment

  • The bleak economic environment affected the labour market directly through lay-offs and retrench-ments

  • labour force participation rates, there was an increase for those aged 15-19 for both malesand females and for urban and rural areas

  • These increased youth labour participation rates corre-spond to a decrease in high school enrolment for 1998 to 1999 especially for girls. With regard to un-employment and underemployment.

• Effects on labour relations

  • In most crisissituations as in 1983 and 1986, the number of strikes usually accelerate because of greater uncertain-ties. However, in this recent crisis, while the number of strikes remained almost the same, the magni-tude and depth of the strikes decreased

  • This was due to a decreased bargaining leverage ofthe unions as unemployment increased and because of the obvious bankruptcies of a number of firms.

  • Another reason was the increasing use of the private sector of flexible labour (i.e. subcontracting)which in turn diluted union strength at the factory level.

• Inflation effects on the social sector

  • Price increases affect fixed income earners as wage increases do not usually match inflation rates

  • lower incomegroups are fixed wage earners, unemployed or self-employed in the informal and rural sectors, whilethe richer groups are propertied individuals whose asset returns go up with inflation and high interest rates.

Culture

• the globalization of the production and distribution of goods and services is a welcome development for many people in that it offers them access to products that they would not otherwise have

• availability of foreign-made consumer products and disrupt traditional producers

• increasing international trade in cultural products and services, such as movies, music, and publications.

• expansion of trade in cultural products is increasing the exposure of all societies to foreign cultures.

• exposure to foreign cultural goods frequently brings about changes in local cultures, values, and traditions.

Globalisation in abroad experience.

• globalisation in the Philippines in terms of trade, finance and migration. In the Philippines, trade globalisation and migration have been more prominent than financial globalisation

• empirical estimates show that globalisation has positively affected the country’s economic growth and employment, substantial evidence for its impact on inequality and poverty has yet to be found, as preliminary estimates show mixed results.

• There are both winners and losers among industries and in the labour market.

• Thus, more inclusive policies could potentially help cushion the negative consequences of globalisation and facilitate adjustments to narrow the gap between winners and losers

• contributions primarily through its focus on low and stable inflation; the facilitation of greater financial inclusion; and greater involvement in global cooperation efforts to further strengthen rule-based international transactions.