Tied up with America’s demise

Several years ago, the Philippine government arbitrarily signed up and consigned our economy to free unregulated trade through the General Agreement on Tariff and Trade (GATT) and membership in the World Trade Organization (WTO). Despite protests from various sectors, our legislators gave in to the pressures of globalization. First, we were compelled by our distorted sense of loyalty and dependence on US coupled with our serious lack of patriotism. Second, about 90% of all countries at that time have committed to globalization with the remaining 10%, included were China and Taiwan, holding on to their communist economic philosophies. If the Philippines did not join the WTO, we would have been isolated from the rest of the world since the GATT clearly provided that open trade will transpire exclusively among signatories of the agreement. Filipino households would not have been exposed and benefitted by a variety of goods and services we are now enjoying due to globalization.
In support to the legislative decision, the executive established programs and policies that propped up industries at the expense of agricultural sector to be able to keep up with the stiff competition in the international market. Through these years, our globalization policies have unfailingly integrated our economy with the worldwide financial system. In the process, our internal capacities for self-sustenance have diminished and our already frail protectionist economic structures have effectively crumbled down.
Now, after more than two decades, our foreign trade doubled and about 84% of our exports go to just 10 countries. The US in particular is the largest buyer of our garments and furniture receiving 80% of total garments exports and 60% of total furniture exports. Foreign direct investments accounted for 55.8% of total investments in 2008, 2/3 of which comes from US, Japan and European Union, all in economic turmoil. About 9.2 million Filipinos working in over 190 countries remit approximately US$14.5 billion, 52% of which come from US or via US-based banks. US hosts 3 million or 1/3 of all overseas Filipino workers who are unfortunately working in sectors of the US economy which are already reeling from the financial crisis.