Globalization in the Philippine Context

Globalization is the present economic system being implemented around the world by the leading capitalist countries, headed by the USA. It means the policy of free trade around the world, where one country can invest their capital in any country it wishes, with minimal duties and taxes to be paid, if there are any. It is free competition, the slogan of the neo-liberals around the globe.

Is this economic policy good for third world countries like the Philippines? I think not. For one, third world countries can hardly compete with the giant economies. How can a Manny Pacquiao slug it out with an Evander Holyfield? not a chance. Giant economies, like the US, subsidize the production expenses of its constituents, resulting in much lower production cost for the manufacturer, which in turn results in lower prices. When these products are shipped out to third world countries like the Philippines, prices of these goods will be much lower than locally manufactured products. Can you see free competition here? nowhere to be found.

In the Philippine context, Globalization means three things: liberalization, deregulation, and privatization. Liberalization is the adoption of liberal economic policies. These are geared towards abolition of all barriers in international trade such as protective economic policies for the local manufacturers, in which Filipinos will have priorities in local market competition. One policy adopted by the Arroyo administration is the Zero-Tariff Act, in which no duties will be imposed on all foreign investments to the country.

Deregulation is the government policy of non-intervention on the leading industries of the country. One such example is the Oil Deregulation Law, where the government, which is before being done by the Energy Regulatory Board, detaches its regulatory powers on energy rates increases, including power and oil. This resulted in higher oil prices. The lowering-down of oil prices, from time to time, is very minimal, compared to the rate increases incurred since 2004.

Another policy of globalization is Privatization. This entails selling of government-owned companies to private corporations or individuals. The purpose of this is to raise much-needed revenues for the country’s graft-ridden budget deficit. Privatization goes hand in hand with Deregulation. The privatization of Petron goes well with the deregulation of oil, which will ensure the profit of the capitalists who bought Petron, and relinquish government’s intervention in policy-making regarding oil price increases.

Summarizing, globalization in Philippine context, is the centerpiece of all of the Arroyo government’s policies, which is not meant to uplift the lives of the suffering Filipino majority, but to ensure profit for the capitalist class in the country. It’s easy to understand why. Because GMA’s formula for the country’s growth & development is the “trickle-down effect.” The more of their kind gets richer, the more thay can spare those below them in society’s economic ladder.

Let’s work to stop the implementation of globalization, even if some laws are already in place. There are a million ways and means to do this. We’ll only have to be creative and daring. I know the dreams of the toiling masses will soon be realized, and the emancipation of the working class will be forthcoming.

POWER TO THE WORKING CLASS!