THE IMPACT OF GLOBALIZATION IN PHILIPPINE ECONOMY
To understand the impact of the global economy to Philippines’ economic life, an understanding of its past must be considered. In the Thomas White’s document on the Philippines’ Country Profile (2010), it described the country as “an economic vassal to the world superpower… (owing) to long years of American occupation” (p.6). After “the Treaty of Paris granted the Philippines to the Americans“(White, 2010, p.4), the new colonial master took over where the Spaniards left off after three hundred fifty (350) years of Philippine colonization. And hardly has the Philippines recovered from the aftermath of its subjugation by two colonial masters when it was dragged into the American-Japanese war in World War II. On July 4, 1946, the country was finally given its independence, but not without a massive rehabilitation of Manila which ranked second to Warsaw for the most devastated cities of World War II.
Henceforth, Philippines “…has been on an unfortunate economic trajectory, going from one of the richest countries in Asia (following Japan) to one of the poorest” (www.traveldocs.com/ph/economy.htm, 2011). Describing it more vividly, the Thomas White document (2010) wrote that “the Philippine(s) economy swirled through a dizzying cycle of boom and bust.” However when the country was gearing up for industrialization in the 1950s, its policy of import substitution – a measure of protectionism – had a negative effect in the long term leading to inefficiencies and misallocation of resources (White, 2010) towards the Marcos regime. “A severe recession from 1984 through 1985 saw the economy shrink by more than 10%, and political instability during the Corazon Aquino administration further dampened economic activity. During the 1990s, the Philippine Government introduced a broad range of economic reforms designed to spur business growth and foreign investment. As a result, the Philippines saw a period of higher...
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