is globalization good or bad for the philippines essay

Economic and Cultural Transformation as a Result of Globalization in the Philippines

This essay will focus on the effects of globalization in the Philippines, examining its impact on the economy, culture, and social dynamics, and how the country has adapted to and been shaped by global influences. At PapersOwl, you’ll also come across free essay samples that pertain to Agriculture.

How it works

Globalization is associated with not only advancements in communication and ever-expanding trade routes but also transformation in political systems and the enhancement or destruction of cultural heritage (Block, 2004; Lieber & Weisberg, 2002). Indeed, it is apparent that globalization in developing countries has a significant impact on political, economic, and cultural aspects. Globalization arises from several factors which may include colonialism (Korobeynikova, 2016). The expansion in power and territory that is characteristic of colonialism may promote communication and technological advancements, leading to globalization. A prominent example of a nation undergoing significant changes as a result of globalization in the Philippines.

Historical records show that the Philippines has been colonized by Western nations as well as its northern neighbors, China and Malaysia. The Philippines has experienced significant cultural and economic changes arising as a result of globalization from the 1980s up till the present ( Guinigundo, 2018 ). While globalization leads to positive changes in political systems and a shift from an agrarian to an industrial economy, negative impacts such as financial imbalance between the rich and the poor and environmental damage are ever-present.

• 1 Political Institutions and Industrialization
• 2 Financial Aid
• 4.1 References

Political Institutions and Industrialization

In a historical context where power has exchanged several hands, the Philippines has, over many years, transformed its political systems. However, it may be asserted that the political governance of the Philippines needs significant improvement in terms of administrative aspects. Moreover, another factor that disrupts political governance in the Philippines is corruption. Indeed, several developing countries experience disruptions in governance arising from corruption when no stable government is established in place (Naher et al., 2020). The current state of the government of the Philippines profoundly affects trade, finance, and the environment.

Since joining the World Trade Organization better known as the ‘WTO’ in 1995, the Philippines has experienced a shift in its economy from an agrarian economy transitioning towards industry and export (Bajpai, 2021). This is due in part to new trade agreements and an increase of open markets after the Marcos Administration. In addition, the Philippines receives foreign aid since it is regarded as a developing country. A major way this aid makes its way into the country is through foreign direct investments with its main partner, the US. This aid has been used to fund developmental projects such as infrastructure, roads, and buildings (USAID, 2021).

In an attempt to compete with its Asian competitors, over the last decade, the Philippines has been making a commendable effort to promote industrialization (de Dios & Williamson, 2015). With astounding pressure to industrialize, the land traditionally allotted for agriculture is starting to be used for industrialization over all the nation. However, while the economy and culture are rapidly transforming for the better, the environment is taking a toll (Magdalena, 2016).

Globalization has been a significant contributive factor in the way the Philippines has been shaped over the last decade and although industrialization has had positive impacts in terms of stimulating the economy, certain negative effects are also observable throughout the island.

In most third-world and developing countries, the postcolonial period witnessed a rise in state-centric approaches to governance. This was primarily due to an absence of private capital and a lack of an advanced market. “More importantly, the scope and role of the state expanded considerably as a result of the government’s nation-building developmental agenda in these countries irrespective of their ideological identities based on capitalist or socialist inclinations” (Haque, 2002). From the late 1990s onwards to the present, the government of the Philippines has been upgraded to a sophisticated system rivaling that of the US. The Philippines has a three-part judiciary system in which there is a legislative, executive, and judicial branch with the president being the head of state and government. This benefits the average Filipino because they can vote and effectively voice their opinions. However, like most developing countries, corruption in the Philippines has created distrust between the government and its people. Furthermore, the government has set three main functional aims namely, minimal, intermediate, and activist. The government aims to employ these concepts when structuring its economy (Patalinghug, 2003). Considering the long list of responsibilities that their government has taken on, Patalinghug (2003) critiques, “that although the government has moved on from basic services to things such as the regulation of markets, it has yet to provide programs that alleviate the conditions of the economically poor.” He notes that despite the many capabilities of their government thus far, those economically poor were not accounted for.

Only those in high positions of power such as governmental officials, military personnel, figureheads, and high-income benefit and are protected within the present system of government. Unfortunately, the poor in the country continues to witness their financial conditions worsen while the government develops industrialized areas of the Philippines such as Manila and Cavite, in an attempt to promote industrialization. Much of the Philippine islands are provinces that are neglected due to a lack of administrative efficiency. The poor such as those coming from these provinces are neglected since they do not receive the same educational opportunities as compared to the rich from industrialized areas. Indeed, people from provinces were reported to often halt all educational inclinations and opportunities at the age of 16 to engage in agricultural practices. Patalinghug (2003) states, “These inadequacies seem to indicate that the Philippines is a state with weak capability due to its inability to adequately provide functions that are characteristics of a state with minimal capacity.” 

In response to his analysis, it is argued that overall globalization initiated by the Filipino government has had a tremendous negative impact, which outshines productive industrial efforts. Their government is yet to establish programs and initiatives in place to help the poor and regulate funding for projects in the provinces. Specifically, during the Marcos Administration in the years of 1980 to 1985, financial openness and accountability were at an all-time low because of the existence of rigid monopolies in the market which reduced investment and led to extensive borrowing (Deluna & Chelly, 2014). This exemplifies how the instability of the government in the past has severely harmed the Filipino economy in the present.

Financial Aid

The Philippines has been upfront about receiving foreign aid, with the US being one of its biggest benefactors. In the year 2010 alone, trade between the US and the Philippines was estimated to be roughly as much as $15.4 billion (Deluna & Chelly, 2014). The amount of aid received is a direct result of the increasing external debt that the Philippines has accumulated over the past years. In addition to the increasing debt, the GDP of the country has continued to decline. The government of the Philippines and its beneficiaries have mutually agreed to utilize the financial aid to enhance rice production, inland fish farming, and industrial crops. In recent years, a significant proportion of this aid has been used to improve rice technology such as purchasing machinery used for harvesting and water irrigation systems. Experimenting with rice production in the Philippines is beneficial for its Asian neighbors, countries such as Brunei since the Philippines offers its neighbors its own form of aid by sharing knowledge of agricultural techniques (Jennings, 2018). Moreover, in 2014, in light of Papua New Guinea’s depleting economy, a large number of Filipinos migrated to the region to compensate for the labor shortage. In turn, the supply of Filipino workers was reimbursed by Papua New Guinea in the form of remittances sent back to the Philippines. Therefore, although the Philippines could not offer financial aid, it demonstrated its worth in terms of offering aid in the form of an invaluable labor force.

Moreover, the People’s Republic of China is considered an important investor and provider of aid to the Philippines. According to recent collaborative agreements, China has awarded the Philippines $169 billion in aid to be invested towards the building of railways and infrastructure by 2022 (Jennings, 2018). This holds the promise of substantially improving the economy since more powerful and influential countries such as China are beginning to invest in the Philippines. This demonstrates that there is a strong belief in regaining spend revenue. It is asserted that the financial aid provided to the Philippines by several countries is very positive since it has the strong potential of stimulating the economy of the Philippines. In particular, people living in industrialized regions are reasoned to significantly improve their living conditions because of newly created employment opportunities arising from the development of new industries. Such constructive endeavors motivate people to engage in employment opportunities that would both benefit the country and themselves as opposed to working on private projects from home. However, employment opportunities created as a result of the construction of new industries may not benefit individuals who are not able to travel abroad to conduct business propositions with international clients as well as those who do not possess skills used in the industrialized age. Nevertheless, it is reasoned that the overall benefits of receiving financial aid may gradually become thoroughly observable in terms of improved economic conditions and long-term stability.

In the past decade, the Philippines has also profoundly revolutionized its trade market. By signing the Articles of Agreement (AOA) of the Asian Infrastructure Investment Bank (AIIB), the Philippines has demonstrated its commitment towards the increased import of goods. Although the import of goods is generally considered to be a positive and collaborative endeavor, it also means that the Philippines is increasingly reliant on goods production by other countries such as China, Malaysia, and Indonesia as its top trading partners. In the 1980s, the Philippines strongly supported trade openness in order to boost foreign markets and free trade agreements. The desired outcome was to obtain funds while creating potential opportunities to invest (Deluna & Chelly, 2014). While the trade market is flourishing, it has had a negative impact on the labor force. Orbeta (2013) has extensively discussed the concept of “de-industrialization” in his paper titled “Enhancing labour mobility in ASEAN: Focus on lower-skilled workers”. Orbeta (2013) asserts that while the trade market is observably flourishing, “the cheap imports from low wage economies flood highly developed economic markets”. In other words, people in the Philippines who are engaged in low-skill labor suffer from excessive imports.

Globalization in trade has had both positive and negative implications for the economy of the Philippines. Trade openness has created security, alliance, and collaboration with powerful and influential counties around the globe. This collaboration has also secured the influx of foreign aid into the Philippines towards the development of infrastructural projects. However, the majority of the Philippines’ local workforce is negatively affected by industrialization since trade openness has resulted in unemployment and job displacement for low-skilled workers. Important cultural knowledge of farming and sustainable living is threatened to be lost forever.

After an evaluation of the Philippines’ engagement in the trade market, it is concluded that the overall effects of trade openness have been detrimental to the Philippines’ economy. It is true that trade openness significantly benefits those who work in multinational corporations (MNCs), possess high skill jobs, and reside in more industrialized parts of the islands, these people represent only a small population of the Philippines. A much larger population constitutes those with low-skill jobs such as workers of the agrarian sector. Not only is land allotted for rice fields and other agricultural resources diminishing at an accelerated rate, culture and tools of trade are also being lost. Even these workers with a low skill set still possess the invaluable knowledge of sustaining their natural resources. When knowledge such as time of harvest and agricultural techniques associated with increased efficiency is lost, it creates a debilitating dependency on other countries for goods that would otherwise be locally produced.

Environment

The Philippine islands comprise a rich collection of tropical forests and islands abundant in exotic fruit and rice fields. However, over the last few years, efforts to promote industrialization to push the Philippines into the 21 st century have resulted in the agricultural economy and environment taking a severe toll. The signing of the AOA resulted in an observable reduction of agricultural subsidies to the north which would improve market access to countries that export agricultural products ( Aquino et al., 2013). In theory, the AOA agreement would have benefited the economy of the Philippines. However, it has a negative impact on the agricultural sector since developing countries like the Philippines have little or no domestic product to export due to industrialization. The conversion of agricultural land to exporting zones, industrial centers, and real estate has resulted in a rapid loss of agricultural resources and topsoil. Industrialization has also caused desertification and soil erosion in several regions. In fact, five million hectares of land that was once used for rice farming have now been reduced to 1.9 million hectares.

With arable land gradually becoming more and more scarce, the government has set initiatives in place to promote the import of goods that could have been produced locally. This has resulted in a profound increase in unemployment ( Aquino et al., 2013). The reduction in land area for traditional agricultural resources has led to the Philippine farming sector shifting its production from resources such as rice and corn to more appealable goods such as mangoes, cassava, asparagus, etc. that can be sold in the market. However, this has come with significant consequences. More farmers in the provinces and commercialized farming sectors have begun using pesticides and fertilizers with chemical formulations unknown to locals. Although using such products produces better and high-quality goods, it also greatly endangers the health of workers who come into contact with these goods. Indeed, Aquino et al. (2013) reports that in areas of Mindanao, ambulances are on kept on standby when pesticides are sprayed due to the imminent and debilitating harm that pesticides pose to human health.

For example, the pesticide called MOCAP commonly used in banana production is MOCAP is reported to be harmful to the land since it causes soil erosion and desertification. This also indicates that the use of such a harsh chemical to be used on products that are to be consumed and distributed is not appropriate (Pérez et al., 2015). Therefore, it may be said that while intentions of the AOA and the government of the Philippines may not have been blatantly destructive, certain initiatives such as changes in land use and the use of harsh pesticides have ultimately been harmful to the health and wellbeing of Filipinos. Since the Philippines’ economy and its revenue stems from agriculture, it was perhaps not the most feasible or lucrative endeavor to commercialize large hectares of land in a short period of time. The commercialization and industrialization of farmland negatively affect farmers and those with low skill sets in the agricultural sector. It also creates an economy heavily reliant on imports to sustain itself since goods can no longer be produced locally, resulting in excessive debt and poverty. Therefore, the negative impact of globalization on the poverty and wellbeing of Filipinos far outweighs the benefits in terms of industrialization.

Nevertheless, globalization does offer the promise of the Philippines developing into a thriving economy. Development of new ties, trade relations, employment opportunities, and promoting opportunities to allow low-skilled workers to learn new and more useful skills is key to overcoming the negative consequences of globalization. While globalization has drastically affected the culture of the Philippines as well as its people, it has also paved the way for the development of new opportunities for the growth of the individual and state. It is reasoned that in terms of the development of a lucrative and successful economy, the government of the Philippines still needs to improve governance and ensure that political systems in place are strong and in accordance with the goals of the public. The next thirty years are crucial and it is argued that with appropriate governance, aid, and support, the Philippines will successfully compete with its neighboring countries. Indeed, overcoming adversities through will and constructive initiatives may be the key to the development of a successful and strong nation.

In conclusion, the Philippines has witnessed considerable changes in its economy and culture as a result of globalization. The government is engaged in navigating and assessing the impact of the programs and initiatives that have been put in place to determine if they are feasible for its citizens. Reports regarding public opinion about the government suggest that people are generally dissatisfied with the lack of active programs and initiatives in place to alleviate poverty. Indeed, trade openness has resulted in increased unemployment arising from the shift from an agrarian towards the industrial sector. Although the commercialization of agriculture has some benefits in terms of allowing the Philippines to compete with its Asian neighbors, trade openness has created a debilitating reliance on imported goods. However, there are also some positive effects of globalization. Trade openness has prompted alliance and collaboration with powerful and influential global nations which has also demonstrated their interest in the promising potential of the economy of the Philippines. The Philippines can offer is cheap yet labor, land open to commercialization, and some exports. Nevertheless, the health and well-being of Filipinos, especially those who work in commercial sectors, is at risk from the use of harsh pesticides which also soil erosion, desertification, and a further decrease in exports.

Aquino, A. P., Lim. V. A. A., & Ani , P. A. B. (2013). Republic Act 7607: Empowering smallhold farmers in their economic endeavors. FFTC Agricultural Policy Platform

Bajpai, P. (2021). Emerging Markets: Analyzing the Philippines’s GDP. Retrived from https://www.investopedia.com/articles/investing/091815/emerging-markets-analyzing-philippines-gdp.asp#:~:text=The%20Philippines%20has%20gradually%20shifted,industrial%20and%20service%2Doriented%20economy.&text=The%20low%20level%20of%20productivity,of%20poverty%20within%20the%20sector

Block, D. (2004). Globalization, transnational communication and the internet. International Journal on Multicultural Societies (IJMS).

Deluna, R., & Chelly, A. (2014). Economic Growth, Financial and Trade Globalization in the Philippines: A Vector Autoregressive Analysis . https://EconPapers.repec.org/RePEc:pra:mprapa:60206

de Dios, E. S., & Williamson, J. G. (2015). Chapter 21 – Deviant Behavior: A Century of Philippine Industrialization. In A. M. Balisacan, U. Chakravorty, & M.-L. V. Ravago (Eds.), Sustainable Economic Development (pp. 371-400). Academic Press. https://doi.org/https://doi.org/10.1016/B978-0-12-800347-3.00021-2 

Guinigundo, D. C. (2018). The Globalisation Experience and Its Challenges for the Philippine Economy. BIS Paper No. 100q, Available at SSRN:  https://ssrn.com/abstract=3332089

Haque, M. S. (2002). Globalization, New Political Economy, and Governance: A Third World Viewpoint. Administrative Theory & Praxis , 24 (1), 103-124. https://doi.org/10.1080/10841806.2002.11029352 

Jennings, R. (2018). The Philippines, usually a receiver of foreign aid, offers some. Received from https://www.voanews.com/a/philippines-foreign-aid-papua-new-guinea/4399517.html

Korobeynikova, L. (2016). Globalization in the post – colonial world. SHS Web of Conferences , 28 , 01058. https://doi.org/10.1051/shsconf/20162801058 

Lieber, R. J., & Weisberg, R. E. (2002). Globalization, Culture, and Identities in Crisis. International Journal of Politics, Culture, and Society , 16 (2), 273-296. https://doi.org/10.1023/A:1020581114701 

Magdalena, F.V. (2016). Globalization and environmental decay: Mindanao during the 20th century. Progressio Journal on Human Development, 10 (1). Retrieved from http://ejournals.ph/form/cite.php?id=12941

Naher, N., Hoque, R., Hassan, M. S., Balabanova, D., Adams, A. M., & Ahmed, S. M. (2020). The influence of corruption and governance in the delivery of frontline health care services in the public sector: a scoping review of current and future prospects in low and middle-income countries of south and south-east Asia.  BMC Public Health ,  20 (1), 880. https://doi.org/10.1186/s12889-020-08975-0

Orbeta, A. C. (2013). Enhancing labour mobility in ASEAN: Focus on lower-skilled workers. Philippine Institute of Development Studies Discussion Paper Series No. 2013-17 .

Patalinghug, E.E. (2003). Globalization and State Capacity: The Philippines . Philippine Institute for Development Studies . Discussion Paper Series No. 2003-20

Pérez, I. C., Gooc, C. M., Cabili, J. R., Rico, M. J. I., Ebasan, M. S., Zaragoza, M. J. G., Redondo, A. F. S., Orbita, R. R., & Lacuna, M. L. D. G. (2015). Pesticide use among farmers in Mindanao, Southern Philippines. AES Bioflux , 7 , 90-108. 

USAID. (2021). United States COVID-19 Assistance to the Philippines. Retrieved from https://www.usaid.gov/philippines/covid-19-assistance#:~:text=Over%20the%20past%2020%20years,advance%20the%20country’s%20development%20goals.

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Understanding Globalization Effects in the Philippines

Globalization has undoubtedly reshaped the economies, cultures, and societies of countries around the world. But what about its impacts on the Philippines ? How has this nation navigated the tide of globalization and what consequences has it brought? As we delve into the effects of globalization in the Philippines , we will uncover a captivating journey of economic growth , cultural exchange , technological advancement , social transformation , and more. So, join us as we unravel the complexities of globalization and its profound influence on the Philippines.

Key Takeaways:

• Globalization has brought both positive and negative impacts on the Philippines, encompassing various aspects such as economics, culture, and social cohesion .
• The Philippines has experienced significant economic growth and employment opportunities due to globalization, but challenges such as inequality persist.
• The country has embraced trade globalization, seeing an increase in foreign investments and global trade relations.
• Technological advancements and labor market changes have played a pivotal role in the effects of globalization .
• Efforts are needed to bridge the gap between winners and losers in the labor market and address the challenges of inequality and the provision of global public goods .

Globalization Trends in the Philippines

As the Philippines continues to embrace globalization, the country has witnessed notable trends in trade openness , finance openness , and economic integration . These trends reflect the nation’s growing integration with the global economy and its efforts to capitalize on the opportunities presented by globalization.

Trade Openness

Trade openness has been a key component of the Philippines’ global engagement strategy. Over the years, the country has made significant progress in improving its trade openness , as evidenced by the increasing share of trade in its GDP. This can be attributed to the Philippines’ commitment to promoting an open trade policy and the development of global value chains in strategic sectors such as electronics and electrical components industry. This sector has played a pivotal role in driving the country’s export growth and enhancing its competitiveness in the global market.

Finance Openness

The Philippines has also experienced moderate financial openness, signaling its growing integration with international financial markets. The country has witnessed an increase in capital flows and the liberalization of its foreign exchange regulatory system. This has boosted investor confidence and attracted both portfolio and direct investments, leading to an expanding exposure to external liabilities. The Philippines’ growing financial openness reflects its strong macroeconomic fundamentals, making it an attractive destination for global investors.

Economic Integration

At the heart of globalization lies economic integration , and the Philippines has been actively engaging in this process. The country’s efforts to integrate with the global economy have resulted in a deeper integration into regional and global supply chains. This has facilitated the development of industries and sectors that are well-positioned to thrive in the global market. The Philippines’ economic integration signifies its commitment to leveraging its strengths and resources to participate fully in the global economy.

As the Philippines embraces globalization, it is important to monitor and adapt to these trends in order to reap the full benefits of economic integration and global opportunities. By fostering trade and finance openness , as well as pursuing effective strategies for economic integration, the Philippines can position itself as a competitive player in the global arena.

Economic Restructuring

The new wave of globalization has brought about economic restructuring , reshaping global trade patterns and the development of global value chains . The Philippines has experienced changes in its trade dynamics, with a shift towards the export of intermediate goods and the import of capital goods. This has led to the development of global value chains , particularly in industries like electronics and electrical components.

The country has seen improvements in transport and communication technology, which have facilitated trade and allowed companies to manage their production more efficiently. The growth of the IT-BPO industry has also contributed to economic restructuring in the Philippines.

Worsening Inequality

Despite the positive impact of globalization on economic growth and employment , there are concerns about worsening inequality in the Philippines. Income inequality has been on the rise, with certain income groups capturing a larger share of global growth. The drivers of income inequality include technological advancements, changes in labor markets, and unequal access to education and opportunities. These factors have contributed to a widening income gap in the country. Addressing inequality is crucial in ensuring that the benefits of globalization are shared more equitably among the population.

Trends in Inequality

The Philippines has experienced a concerning trend of worsening inequality in recent years. The income gap between the rich and the poor has been widening, leading to a more uneven distribution of wealth. This trend is evident in various sectors of society, from urban areas to rural communities. The poorest segments of the population often face limited access to resources, opportunities, and social services, exacerbating the inequality issue.

The drivers of income inequality in the Philippines are complex and multifaceted. A comprehensive approach is needed to address these issues and create a more inclusive society, where the benefits of globalization are shared by all.

“It is our collective responsibility to ensure that no one is left behind in the pursuit of progress. Addressing inequality is not only a moral imperative but also a strategic investment in building a fair and sustainable future.”

As the Philippines continues to navigate the challenges of globalization, it is essential to prioritize policies and initiatives that reduce inequality and promote inclusive growth. By investing in education, skills training, and social safety nets, the country can empower its citizens to thrive in an increasingly interconnected world economy.

Next, we will explore the threats to the provision of global public goods posed by the current state of globalization and the role of international cooperation in overcoming these challenges.

Threats to Provision of Global Public Goods

As globalization continues to shape our interconnected world, there are growing concerns about the provision of global public goods . These goods, such as addressing climate change, reducing poverty, and promoting equality, require international cooperation and collective action. However, various threats pose significant challenges to achieving these goals.

One of the major threats to the provision of global public goods is the rise of protectionism and inward-looking policies in certain countries. As nations become more focused on their own interests, international cooperation becomes strained, hindering efforts to tackle global issues. This poses a significant challenge in addressing problems that require global collaboration and collective solutions.

The global community also faces challenges in addressing pressing issues such as climate change, poverty, and inequality. These complex problems require coordinated global action and cooperation. However, differing priorities, interests, and approaches among nations can hinder progress and dilute efforts to find effective solutions.

Another threat to the provision of global public goods is the declining social cohesion and trust in society. As communities become more fragmented, it becomes increasingly difficult to mobilize collective action and foster the international cooperation needed to address global challenges. Declining social cohesion undermines the trust and cooperation necessary for countries to come together and make meaningful progress.

Efforts to overcome these threats and ensure the provision of global public goods require promoting international cooperation and strengthening collaboration among public and private organizations. It is crucial to foster a sense of shared responsibility and common purpose among nations. By working together, we can overcome the challenges posed by globalization and address pressing global issues in a meaningful and impactful way.

Globalization has brought about various threats to the provision of global public goods, including the rise of protectionism, the challenges of addressing complex global issues, and declining social cohesion . Overcoming these threats requires a renewed commitment to international cooperation and collaboration, as well as efforts to build trust and strengthen social cohesion . By working together, we can ensure the provision of global public goods and create a more sustainable and prosperous world for all.

Cultural Impacts of Globalization in the Philippines

Globalization has had a profound impact on the culture of the Philippines, influencing both the education system and the labor market. One significant cultural impact of globalization is the increased diversity within the higher education institutions in the country. As a result of migration and globalization, there is now a more diverse student population, promoting equity, inclusiveness, and enriching the learning environment.

However, it is crucial to address the instances of discrimination that international students may still encounter. Discrimination can hinder the full realization of the benefits of a diverse student body. As the Philippines continues to embrace globalization, it is important to cultivate an environment of understanding, respect, and acceptance among students from different backgrounds.

Globalization also places a greater emphasis on critical thinking skills within the education system. As the demand for skilled human capital grows, students need to develop critical thinking abilities to navigate the complexities of a globalized world. The ability to critically analyze information and think independently becomes increasingly valuable as the world becomes more interconnected.

Furthermore, the Philippines’ reliance on labor export has had a significant influence on its education system. With a focus on producing globally competitive individuals, the training of students is centered around skills that align with the demands of the international labor market. This includes preparing students for work abroad, where they can contribute to the economic growth of both the Philippines and the countries they migrate to.

To balance the cultural impacts of globalization, the Philippines needs to foster a culture of understanding, sensitivity, and openness to different beliefs and values. This can be achieved through promoting cultural exchange programs, encouraging dialogue, and providing opportunities for students to engage with diverse perspectives.

The Cultural Impacts of Globalization in the Philippines:

By embracing the cultural impacts of globalization while promoting understanding and inclusivity, the Philippines can harness the benefits of a diverse society and prepare its students for success in a globalized world.

Globalization and the Philippine Economy

Globalization has had a significant impact on the Philippine economy . The expanding exports and continuous capital accumulation have been key contributors to the country’s economic growth. The Philippines has witnessed positive effects on employment and industry performance , particularly in sectors associated with global value chains. The integration into global markets has created opportunities for job creation and enhanced productivity in various industries.

One of the driving forces behind the positive impact of globalization on the Philippine economy is the implementation of Free Trade Agreements (FTAs). These agreements have resulted in industry growth and improved labor productivity. However, it is important to note that the network effects of FTA trade shocks have not been statistically significant.

International trade plays a crucial role in shaping the economy of the Philippines. The country’s engagement in global trade has contributed to its overall growth, employment opportunities, and industry performance . By participating in global value chains, the Philippines has been able to tap into international markets and leverage its competitive advantages.

Below is a table highlighting the impact of globalization on the Philippine economy:

Overall, globalization has played a significant role in shaping the Philippine economy. The country’s participation in global trade has resulted in economic growth, employment opportunities, and enhanced industry performance. However, policymakers and stakeholders must continue to address the challenges and potential risks associated with globalization to ensure sustainable and inclusive development.

Globalization and the Education System in the Philippines

Globalization has had a significant impact on the education system in the Philippines. The country recognizes the need for internationalization in education to foster global competencies and enhance competitiveness.

However, there are challenges and obstacles that need to be addressed. Inadequate e-library and ICT services, institutional challenges , and faculty motivation towards advanced education are some of the issues that hinder the effective integration of global perspectives in the curriculum.

The integration of international and global dimensions into the curriculum, faculty composition , research, and global linkages is crucial for the internationalization of education in the Philippines. By embracing the diverse perspectives and knowledge from around the world, students can develop the necessary skills and understanding to thrive in a globalized society.

“Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” – Malcolm X

To address the challenges posed by globalization, the Philippines must invest in the development of modern e-library and ICT infrastructure to facilitate access to global knowledge resources. Additionally, institutions should prioritize faculty development programs that promote continuous learning and research collaborations with international partners.

The integration of international components and global perspectives into the curriculum should be an ongoing process. This can be achieved by incorporating cross-cultural learning experiences, promoting critical thinking skills, and fostering a global mindset among students.

Faculty Composition and Global Expertise

Creating a faculty composition that reflects global expertise is essential for a truly internationalized education system. By recruiting faculty members with diverse cultural backgrounds and experiences, institutions can provide students with a broader understanding of global issues and perspectives. Furthermore, faculty members with international experience can serve as role models, inspiring students to pursue global opportunities and expand their horizons.

Enhancing Global Linkages

Establishing global linkages with educational institutions and organizations worldwide is crucial for the internationalization of education in the Philippines. Collaborative research projects, student exchange programs, and joint academic initiatives create opportunities for knowledge sharing, cultural exchange , and the development of global competencies.

“Education is not preparation for life; education is life itself.” – John Dewey

By actively engaging with global partners, the Philippine education system can create a vibrant and inclusive learning environment that prepares students to navigate the challenges and opportunities of a globalized world.

Globalization and Social Cohesion in the Philippines

Globalization has had far-reaching implications for social cohesion in the Philippines. One of its notable effects has been the increase in migration , which has resulted in a more diverse society, fostering equity and inclusiveness. The Philippines, known for its warm hospitality, has been successful in embracing cultural diversity.

However, there are challenges that need to be addressed to ensure and strengthen social cohesion and trust among its population. One significant concern is job security , as globalization brings changes to industries and labor markets. The inherent uncertainties in a rapidly changing global economy can cause anxiety and erode trust between employers and employees.

Another challenge is the potential commodification of local culture in the tourism industry. While globalization has provided opportunities for tourism growth, it is essential to strike a balance between showcasing the country’s heritage and preserving its authenticity. The Philippines should maintain cultural integrity while capitalizing on the economic benefits that tourism brings.

The key to building trust and social cohesion lies in promoting understanding, respect, and inclusiveness among the population. This can be achieved through dialogue, education, and community engagement. By encouraging intercultural interactions and providing platforms for open discussions, the Philippines can foster greater cohesion within its society.

Fostering Social Cohesion:

• Promote cultural education and awareness programs within schools and communities.
• Encourage intercultural dialogue and understanding through community events and initiatives.
• Invest in programs that enhance job security and provide opportunities for upskilling and retraining.
• Develop sustainable tourism practices that respect and preserve local culture and traditions.
• Support community-led initiatives that promote social inclusiveness and equality.

By prioritizing these steps, the Philippines can navigate the challenges of globalization while preserving its social fabric. Embracing the benefits of globalization while safeguarding social cohesion will ensure a more inclusive and harmonious society for all.

Policy Recommendations for Navigating Globalization in the Philippines

Navigating the challenges of globalization in the Philippines requires a comprehensive approach. In order to address economic restructuring and promote inclusive growth, policymakers and stakeholders should consider the following policy recommendations :

• Promoting Inclusive Growth: Efforts should be made to ensure that the benefits of globalization are shared more equitably among all segments of society. This can be achieved by implementing policies that provide equal access to education, healthcare, and opportunities for economic advancement.
• Reducing Inequality: Measures should be taken to reduce income inequality and bridge the gap between different income groups. This can be accomplished through progressive taxation, social welfare programs, and policies that promote equal access to quality education and employment opportunities.
• Addressing Global Public Goods: Strengthening cooperation at the global level is crucial for addressing global issues and providing public goods that benefit all nations. The Philippines should actively participate in international efforts to combat climate change, poverty, and other pressing challenges.
• Fostering Social Cohesion: Building trust and social cohesion within the country is essential for creating an inclusive and resilient society. This can be achieved by promoting understanding, respect, and inclusiveness among different cultural, ethnic, and socio-economic groups.

By implementing these policy recommendations , the Philippines can navigate the challenges of globalization and create a more equitable and prosperous future for all its citizens.

Globalization has had a profound impact on the Philippines, touching various aspects of its economy, education system, culture, and social fabric. The effects of globalization have been mixed, presenting opportunities for growth and development, while also posing challenges and concerns.

The Philippines has experienced positive economic growth and employment as a result of globalization. The country has embraced trade openness and seen an increase in foreign investments , fostering economic integration and global trade relations. However, there are concerns about increasing inequality and the uneven distribution of benefits. Policymakers should focus on inclusive policies that ensure the benefits of globalization are shared equitably among all segments of society.

Addressing the challenges brought on by globalization requires a proactive response from the Philippines. The country should prioritize the development of inclusive policies that promote social cohesion and trust. Additionally, international cooperation is crucial for addressing global issues and providing global public goods. By navigating the new wave of globalization with inclusivity and cooperation in mind, the Philippines can harness its potential and thrive in a rapidly changing world.

In conclusion , the Philippines’ response to the effects of globalization should involve adopting inclusive policies, promoting international cooperation, and fostering social cohesion. By doing so, the country can minimize the challenges posed by globalization and maximize its opportunities for growth, development, and a brighter future.

What is globalization and how does it impact the Philippines?

What are the trends of globalization in the philippines, how has globalization led to economic restructuring in the philippines, what impact has globalization had on inequality in the philippines, what are the threats to the provision of global public goods due to globalization, how has globalization influenced the culture and education system in the philippines, what impact has globalization had on the philippine economy, how has globalization affected the education system in the philippines, how has globalization impacted social cohesion in the philippines, what policy recommendations are there for navigating globalization in the philippines, source links.

• https://www.bis.org/publ/bppdf/bispap100_q.pdf
• https://typeset.io/questions/how-has-globalization-impacted-the-philippine-economy-47abdl1qvc
• https://www.econstor.eu/bitstream/10419/211082/1/1676789774.pdf

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Home — Essay Samples — Sociology — Globalization — Reflection About Globalization in the Philippines

Reflection About Globalization in The Philippines

• Categories: Globalization Philippines

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Published: Jan 5, 2023

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An economist explains the pros and cons of globalization

Piling up: Global trade has increased, but has it been a positive or negative force? Image:  REUTERS/Tyrone Siu

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Every industrial revolution has driven a wave of globalization. The first wave was driven by innovations such as the steam engine and the industrial weaving machine; the second by the assembly line, the car and the plane; and the third by the digital revolution.

As we enter the fourth wave of globalization, driven by the digital revolution, there is renewed debate over whether it is a beneficial force: powering economic growth, and allowing the spread of ideas to improve people’s lives; or whether it erodes communities, and widens the gap between the elites and the rest of the world.

Globalization results in increased trade and lower prices. It heightens competition within domestic product, capital, and labour markets, as well as among countries adopting different trade and investment strategies.

But how do these impacts net out? What are the positive and negative effects of globalization? The below is an edited transcript of a conversation with Gita Gopinath, Chief Economist of the International Monetary Fund (IMF).

Overall, what are the advantages of globalization?

The advantages of globalization are actually much like the advantages of technological improvement. They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy.

What might be the advantages of globalization that someone would feel in their day-to-day life?

I think something that's not sufficiently appreciated about, for instance, international trade is that it reduces the prices of goods that they consume. So if you look at day-to-day things that you purchase, in terms of washing machines, or cars, or even clothing, because of international trade we've had a decline in prices of these goods, so they have become far more affordable for a lot of people in the world.

How have the benefits played out in advanced economies versus poorer ones over the last three decades?

Both advanced economies and developing economies have benefited overall in terms of having higher productivity, more job creation, and higher wages. As we've always known, and this is true again with technology, there are always some winners and losers. So there are communities and there are workers who lose out when there is more trade integration. That is what we're seeing right now in terms of discontent with international trade.

Who have been the biggest losers?

The biggest losers from international trade are always those whose skills have a cheaper competitor in a different market. So, in the case of the US, it's been those who work in the manufacturing sector because jobs in the manufacturing sector have been outsourced to countries where labour is far cheaper.

On the other hand, in developing countries, more capital-intensive goods get imported more cheaply from the outside. So if you're a manufacturer of a capital-intensive good in a developing country you tend to lose because of that competition.

This is how it is with international trade: production goes to wherever it is most efficient to produce. So, when people in any country are exposed to this kind of competition, some win and some lose.

Is it possible as an economist to come up with a verdict? Has this wave of globalized trade been a net positive or a net negative?

If you say, I'm going to look at it from a measure of overall effect on a country's income, on its purchasing power, on the prices that its people pay, overall I think the evidence that we have all points to it being a net positive.

Now, if you frame the question as, has international trade been good for the manufacturing worker in the US? Then the answer to that would be “not fully”; it's been very costly in terms of jobs and wages for them.

How optimistic are you that this next wave of globalization offers a better future?

I would make a couple of points. First, the previous waves of globalization have been quite successful in lifting a large number of people out of poverty and so we should appreciate that.

The second thing is that any form of globalization will generate winners and losers. So even if you have the perfect, most optimal international trade agreements, there will always be those who lose out because of competition, in the exact same way that people lose out whenever there's a new technology being developed.

And so if we want to make sure that the next wave of globalization is even more successful, it has to be complemented with good, sound domestic policies that help those who are getting left out.

How optimistic are you that the trade war between the US and China will be swiftly resolved?

It's absolutely essential that it be resolved, and it gets resolved in a way that's long lasting. The world economy has lived with the uncertainty about trade tensions for a while now and if there is any solution and there is a sense that the solution is only transitory and something can again get triggered in the future, I think that's very costly.

I'd say I'm mildly optimistic because I think leaders in the world are recognizing that these trade tensions are having a negative effect on their economies and so it would make sense to sit down and resolve it.

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Philippines may benefit from new globalization

By Beatrice M. Laforga, Reporter

THE PHILIPPINES could benefit substantially from the ongoing massive shift in global trade, with the services sector likely to see the most gains, the Asian Development Bank (ADB) said.

While the coronavirus pandemic and lockdowns disrupted global economy and trade, the ADB said Asia should adopt stronger trade liberalization and facilitation efforts so it can benefit from economies realigning their supply chain networks.

“I do believe that the Philippines has a strong potential given that its post-pandemic trade landscape will give more weight on the digital and services trade,” ADB Economic Research and Regional Cooperation Department Director for Regional Cooperation and Integration Cyn-Young Park said during the launch of the Asian Economic Integration Report (AEIR) 2021 on Wednesday.

The Philippines’ services sector will likely be among the gainers in the new round of globalization where digital transformation plays a key role, Ms. Park said. She noted Filipino workers may take on services-related jobs abroad, while the local business process outsourcing (BPO) sector remains intact.

The ADB noted cross-border migration took a huge blow last year, while the impact on remittance inflows especially to countries that rely on these remained “acute.”

“Despite the large drop, remittances to Asia will likely remain a relatively stable source of external financing compared with other types of financial flows,” it said.

Cash remittances to the Philippines inched down by 0.8% to $27.013 billion in the first 11 months of 2020, data from the central bank showed.

In the report, the ADB said Southeast Asia remained the most integrated subregion across Asia-Pacific, driven by trade, investments and migration of people.

This is based on the Asia-Pacific Regional Cooperation and Integration Index (ARCII) — which measures the regional integration of economies based on 26 indicators and in six dimensions.

The pandemic has also made digital transformation for countries crucial to boost the broader economic output, especially on trade and commerce and employment.

The ADB projected Southeast Asian economies could record an annual gain of 8.4% in regional output on average, if the digital sector expands by 20% in 2025%. Meanwhile, the region’s trade and employment could increase by an average of 8% and 6.2%, respectively.

“Digital connectivity in Asia has increased, with rising internet penetration, but large subregional gaps persist. Greater access to online resources through internet connectivity allows consumers, businesses, and governments to gain wider and better access to goods and services beyond geographic borders,” the report said.

Internet penetration in the Philippines was among the lowest in selected 20 Asian economies between 2006-2017. The rate of connectivity, however, increased significantly in 2014-2017, similar to all the other countries.

“Asia will continue its rise as a major player in the global digital platform market as wider access reaches more users and generates higher revenue growth,” the multilateral lender said.

However, countries should ensure that they are prepared to address the digital divide and prevent inequality from worsening.

The Philippines has a lot of catching up to do, as it scored 0.8221 in the Digital Platform Penetration (DPP) index in Network Readiness Subindexes which measured the country’s readiness on: technology, people, governance and impact. The country placed 13 th out of 34 Asia-Pacific economies tracked.

China topped the list with a DPP index score of 2.5847, Korea at 2.5283, Australia at 2.1010, Hong Kong at 2.0323, New Zealand at 1.8795, and Japan at 1.7794.

“This suggests that in order to sustainably develop the domestic digital platform economy, governments cannot slacken in upgrading the underlying infrastructure and regulatory foundations,” it added.

At the bottom of the list were Turkmenistan, Papua New Guinea, Timor-Leste, Lao PDR and Mongolia.

“For countries in the lowest group, there is a great need to catch up in all four aspects of network readiness,” it added.

The ADB said broader use of digital platforms could help countries achieve economic inclusion given that proper policies are in place.

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Pros and cons of economic, social and political globalization: is globalization overall positive for our societies?

Historically, globalization has been considered both a great opportunity and a threat. Globalization is a multifaceted phenomenon which entails several economic, cultural, and political pros and cons. Discover here the implications and arguments for and against globalization.

Brief history of globalization

Globalization is a process of growing exchange, interaction and integration between people, governments and private organizations across the globe. International trade, capital flows, migration , technological transfer and cultural exchanges are some of the typical manifestations of this process. The encounters and relationships between ancient civilizations and the colonization processes initiated during the Age of Discoveries were archaic and early-modern forms of globalization. During the 19th century technological progress and the Industrial Revolution catalyzed globalization. The political and economic international agreements after the Second World War accelerated this process even further. However, this term really became paramount in the academic literature and media after the fall of the Iron Curtain and the Soviet Union which enabled a much more fluid communications, exchanges of goods and services and migration .

For years globalization was equated with progress and economic growth and generally supported. However, in the last few years an increasing number of voices have started to criticize this phenomenon and point at several flaws and dangers associated with it. The anti-globalization movement has grown. Not only left-wing  anti-capitalists oppose globalization, but conservative nationalists have recently emerged as a strong force against it. To what extent is globalization to blame for problems such as national unemployment , inequality, terrorism and cultural homogenization?

Globalization pros and cons

Globalization  is such a complex phenomenon that here we are going to dissect its pros and cons across three different dimensions or angles: economic, cultural and political

Economic globalization 

Economic globalization echoes the views of neoliberal and neoclassicist thinkers in which states lose prominence and the world becomes a single global market of individual consumers. These consumers are characterized by their material and economic self-interest – rather than cultural, civic or other forms of identity. The expansion and dominance of global companies and brands is another key feature. These corporations contribute to deepen global interconnectedness not only by uniformly shaping consumption patterns across societies, but by binding economies together through complex supply chains, trade networks , flows of capital and manpower. 

Pros of economic globalization: 

• Cheaper prices for products and services (more optimized supply chains)
• Better availability of products and services
• Easier access to capital and commodities
• Increased competition
• Producers and retailers can diversify their markets and contribute to economic growth

Cons of economic globalization:

• Some countries struggle to compete
• Extractive behavior of some foreign companies and investors  in resource-rich countries preventing economic diversification
• Strong bargaining power of multinational companies vis-à-vis local governments
• “Contagion effect” is more likely in times of crises
• Problems of “ social dumping ”

Cultural globalization

It refers to the process of transmission of values, ideas, cultural and artistic expressions. In the era of the Internet and fast communications people can interact more easily with each other. Multiculturalism and cosmopolitanism are to some extent manifestations of cultural globalization. Communities are less insulated than ever in history, even those who cannot travel can have today a good understanding of other cultures and meet virtually people from other parts of the world. People change their views and lifestyle influenced by global cultural and consumption trends.

Pros of cultural  globalization:

• Access to new cultural products (art, entertainment, education) 
• Better understanding of foreign values and attitudes. Less stereotyping and fewer misconceptions about other people and cultures
• Instant access to information from anywhere in the world
• Capacity to communicate and defend one’s values and ideals globally
• Customisation or adaptation of global cultural trends to local environment (“mestisage”)

Cons of cultural globalization:

• Spread of commodity-based consumer culture    
• Dangers of cultural homogenization
• Westernization, cultural imperialism or cultural colonialism
• Some small cultures may lose their distinct features
• Dangerous or violent ideals can also spread faster (note the international character of the terror group IS)

Political globalization 

The political dimension is a newer feature of the globalization debate, as over the last 30 years there has been a rise in the influence and power of international and regional institutions such as the European Union (EU), Organization for Economic Cooperation and Development (OECD), the United Nations (UN), the World Trade Organization (WTO), MERCOSUR in South America, and the Association for Southeast Asian Nations (ASEAN). These international and supranational actors increasingly shape domestic politics.

Pros of political globalization:

• Access to international aid and financial support
• It contributes to world peace . It reduces risk of invasions, more checks on big powers and limitationn on nationalism
• International organizations are often committed to spread values like freedom and to fight abuses within countries
• Smaller countries can work together and gain more influence internationally
• Governments can learn from each other

Cons of political globalization:

• State sovereignty is reduced
• The functioning of international and supranational organizations is often not “democratic” in terms of representation and accountability
• Big countries can shape decisions in supranational organizations
• Sometimes countries can veto decisions and slow down decision making processes
• Coordination is difficult and expensive

To summarize, no matter from which angle we look at globalization, whether economic, cultural or political, both the opportunities and drawbacks are numerous.

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Advantages and Disadvantages of Globalization Essay

When discussing the drawbacks and benefits of globalization, essays tend to be on the longer side. The example below is a brief exploration of this complex subject. Learn more in this concise globalization pros and cons essay.

Introduction

• Benefits and Disadvantages of Globalization

Reducing Negative Effects

In today’s world, globalization is a process that affects all aspects of people’s lives. It also has a crucial impact on businesses and governments as it provides opportunities for development while causing significant challenges. This paper discusses the advantages and disadvantages of globalization using evidence from academic sources. The report also suggests how governments and companies may implement to reduce the negative impact of the process.

Benefits and Drawbacks of Globalization

Globalization is a complex concept that can be defined by the process of interaction between organizations, businesses, and people on an international scale, which is driven by international trade. Some people may associate it with uniformity, while others can perceive it as the cause of diversification. The reason for such a difference in public opinion is that globalization has both advantages and disadvantages that should be analyzed.

The most significant positive aspects of globalization include global economic growth, the elimination of barriers between nations, and the establishment of competition between countries, which can potentially lead to a decrease in prices. Globalization supports free trade, creates jobs, and helps societies to become more tolerant towards each other. In addition, this process may increase the speed of financial and commercial operations, as well as reduce the isolation of poor populations (Burlacu, Gutu, & Matei, 2018; Amavilah, Asongu, & Andrés, 2017).

The disadvantages of globalization are that it causes the transfer of jobs from developed to lower-cost countries, a decrease in the national intellectual potential, the exploitation of labor, and a security deficit. Moreover, globalization leads to ecological deficiency (Ramsfield, Bentz, Faccoli, Jactel, & Brockerhoff, 2016). In addition, this process may result in multinational corporations influencing political decisions and offering unfair working conditions to their employees.

Firms and governments can work on eliminating the negative effects of globalization in the following ways. For example, countries should work on microeconomic policies, such as enhancing opportunities for education and career training and establishing less rigid labor markets. In addition, governments can build the necessary institutional infrastructure to initiate economic growth. To solve the problem of poor working conditions, it is vital to establish strict policies regarding minimum wages and the working environment for employees. A decrease in the national intellectual potential may be addressed by offering a broad range of career opportunities with competitive salaries, as well as educating future professionals on how their skills can solve problems on the local level.

Companies, in their turn, may invest in technologies that may lead to more flexible energy infrastructure, lower production costs, and decrease carbon emissions. They can also establish strong corporate cultures to support their workers and provide them with an opportunity to share their ideas and concerns. Such an approach may eliminate employees’ migration to foreign organizations and increase their loyalty to local organizations. It is vital for companies to develop policies aimed at reducing a negative impact on the environment as well by using less destructive manufacturing alternatives and educating their employees on ecology-related issues.

Globalization has a significant impact on companies, governments, and the population. It can be considered beneficial because it helps to eliminate barriers between nations, causes competition between countries, and initiates economic growth. At the same time, globalization may result in a decrease in the national intellectual potential, the exploitation of labor, and ecology deficiency. To address these problems, organizations and governments can develop policies to enhance the population’s education, improve working conditions, and reduce carbon emissions.

Amavilah, V., Asongu, S. A., & Andrés, A. R. (2017). Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries. Technological Forecasting and Social Change , 122 (C), 91-103.

Burlacu, S., Gutu, C., & Matei, F. O. (2018). Globalization – Pros and cons. Calitatea , 19 (S1), 122-125.

Ramsfield, T. D., Bentz, B. J., Faccoli, M., Jactel, H., & Brockerhoff, E. G. (2016). Forest health in a changing world: Effects of globalization and climate change on forest insect and pathogen impacts. Forestry , 89 (3), 245-252.

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Is globalization a good or a bad thing?

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Is globalization a good or a bad thing?  Does it benefit everybody or mainly the “banksters”?  There have been many debates about globalization and inequalities, but what is the evidence?

Global inequalities started to rise with the Industrial Revolution, when a score of countries experienced much faster economic growth than the rest of the world.  This gave them an advantage which they kept until the beginning of the globalization era.  A “catching up” phenomenon is now at play, with some of the poorest countries having emerged and turned into global engines of growth.  It is too early to pass a definitive judgment, but it seems that inequality across countries has started to decline since the late 1990s.  On the other hand, there is evidence that in some countries globalization has been accompanied by an increase of inequalities – as recently raised by people as different as Pope Francis and President Obama.

Yet, in a recent paper, a World Bank researcher, Branko Milanovic, looked at the question from a different perspective – what if we forget for a moment about borders and measure inequality among individuals (not nations)?  What if we do not compare, say, Poland to Germany, or rich and poor in Poland, but each person in the world to all others?  Would we see global inequalities, those between the world’s richest and poorest citizens regardless of where they live, on the rise or in decline ?  The study provides some interesting insights on the nature of inequality in the age of globalization.

As could be expected, it shows that the world remains a tremendously unequal place.  Using a standard indicator (the Gini coefficient), global inequality is far greater than inequality within any country, even the most unequal ones.  The gap between a poor person in India or Sub-Saharan Africa and the Western upper-class is an abyss.

The study also shows that the determinant factor of one’s income is where one lives.  The poorest five percent of Germans are richer than the wealthiest five percent of Ivoirians.  In other words, social classes matter less than places of residence (bye-bye Marx !).  The consequences are clear – either poor countries can develop their economies fast, or their people will be inclined to migrate to richer shores. 

Maybe most interestingly, the study looks at the winners and losers of the globalization process – and unveils several unexpected facts. 

It is often assumed that there are two main groups who benefit from globalization – the “top 1 percent” and the “emerging middle class” in countries like China, India, etc.  The numbers confirm these intuitions.  But they also show that the income of the “emerging middle class” rose even faster than that of the top 1 percent.  And that this “emerging middle class” accounts for about half of humankind.  This is no small feat!

The study also shows that the people at the “global bottom” too have gained over the last decades, less than the “emerging middle class” but enough to reduce abject poverty dramatically (the exception is the poorest five percent of the world population, people who typically live in conflict-affected countries, and who have seen little benefits of a globalization process that has largely bypassed them).   This is very encouraging.

In fact, the biggest losers of the globalization process may well be the “global upper middle class” (technically: those between the 75 th and 90 th percentile of income distribution), i.e., the poorest part of the population in Western European countries, the lower middle class in Central Europe.  These groups have not lost out, but they have not seen their income rise in any meaningful manner over the last two decades while the rest of the world surged. 

So what does it all mean for a country like Poland?  In spite of common perceptions, Poland as a whole is already among the wealthiest countries in the world, even though of course not everybody in Poland is wealthy.  The study highlights the need to accelerate economic growth, so as to increase as rapidly as possible the distance from the potentially swampy grounds of the “global upper middle class”.  It also suggests that continued policy action is needed to ensure that prosperity can be truly shared by all, that the gains of globalization are not captured by a “happy few”, but on the contrary that all can take advantage of the opportunities offered by the globalization process, including those who earn the least.  It highlights the importance of contributing to other countries’ development to reduce the global inequalities which can be the seeds of geopolitical turmoil.  And most importantly it provides a confirmation (with numbers !) that the world is indeed becoming a better place. 

The full study is available at https://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-6259   

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4 Effects of Globalization on the Environment

• 15 Apr 2021

Globalization —defined in the online course Global Business as the increased flow of goods, services, capital, people, and ideas across international boundaries—has brought many changes in its wake.

While globalization can positively and negatively impact society, its effect on the environment is primarily negative. Here’s a breakdown of how globalization impacts society and the environment and what business leaders can do to reduce these negative consequences.

How Does Globalization Affect Society?

The world has become more connected than ever before through the increase in technological advancements and economic integrations. Advanced economies are formed as domestic businesses transform into international ones and further contribute to the spread of technology around the world.

There are several benefits of globalization , such as increased international trade and cooperation and less international aggression. Social globalization —the sharing of ideas and information between countries—has led to innovation in the medical, technological, and environmental preservation industries.

Additionally, globalization has improved the quality of life in several developing nations. This includes implementing efficient transportation systems and ensuring accessibility to services such as education and healthcare.

However, globalization can also have negative effects on society, such as increased income inequality and substandard working conditions in developing countries that produce goods for wealthier nations. Income inequality is directly related to globalization as it further increases the gap between more advanced and developing areas of a nation. As a result, it can also increase the risk of societal violence.

Along with its societal effects, globalization has a lasting impact on the environment—and typically not a positive one.

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What Are the Effects of Globalization on the Environment?

1. Increased Transport of Goods

One of the primary results of globalization is that it opens businesses up to new markets in which they can sell goods and source labor, raw materials, and components.

Both of these realities mean finished products travel farther now than ever before—potentially halfway around the globe. In the past, products were more likely to be produced, sold, and consumed locally. This increased transport of goods can impact the environment in several ways, including:

• Increased emissions: The farther a product travels, the more fuel is consumed, and a greater level of greenhouse gas emissions is produced. According to a report by the International Transport Forum , CO2 emissions from transport will increase 16 percent by 2050. These emissions contribute to pollution, climate change , and ocean acidification around the world and have been shown to significantly impact biodiversity.
• Habitat destruction: Transportation—especially when land-based—requires infrastructure like roads and bridges. The development of such infrastructure can lead to issues including habitat loss and pollution. The more ships that travel by sea, the greater the chances for major oil spills or leaks that damage the delicate marine environment.
• Invasive species: Every shipping container and vessel presents an opportunity for a living organism—from plants to animals to fungus—to hitch a ride to a new location where it can become invasive and grow without checks and balances that might be present in its natural environment.

2. Economic Specialization

One often-overlooked side effect of globalization is that it allows nations and geographical regions to focus on their economic strengths while relying on trading partners for goods they don’t produce themselves. This economic specialization often boosts productivity and efficiency.

Unfortunately, overspecialization can threaten forest health and lead to serious environmental issues, often in the form of habitat loss, deforestation, or natural resource overuse. A few examples include:

• Illegal deforestation in Brazil due to an increase in the country’s cattle ranching operations, which requires significant land for grazing
• Overfishing in coastal areas that include Southeast Asia, which has significantly contributed to reduced fish populations and oceanic pollution
• Overdependence on cash crops, such as coffee, cacao, and various fruits, which has contributed to habitat loss, especially in tropical climates

It’s worth considering that globalization has allowed some nations to specialize in producing various energy commodities, such as oil, natural gas, and timber. Nations that depend on energy sales to fund a large portion of their national budgets, along with those that note “energy security” as a priority, are more likely to take intervening actions in the market in the form of subsidies or laws that make transitioning to renewable energy more difficult.

The main byproduct of these energy sources comes in the form of greenhouse gas emissions, which significantly contribute to global warming and climate change.

3. Decreased Biodiversity

Increased greenhouse gas emissions, ocean acidification, deforestation (and other forms of habitat loss or destruction), climate change, and the introduction of invasive species all work to reduce biodiversity around the globe.

According to the World Wildlife Fund’s recent Living Planet Report , the population sizes of all organisms—including mammals, birds, fish, amphibians, and reptiles—have decreased 68 percent since 1970. Latin America and Africa—two rapidly developing regions important to global trade—have seen disproportionate levels of biodiversity loss, especially among environmentally sensitive fish, reptiles, and amphibians.

While this decrease in biodiversity has many causes, it’s widely believed that the issues listed above have contributed in part.

4. Increased Awareness

While many of globalization’s environmental effects have been negative, its increase has heightened environmental awareness worldwide.

Greater connectivity and higher rates of international travel have made it easier than ever for individuals to see the effects of deforestation, habitat loss, and climate change on the environment. This, in turn, has contributed to new laws, regulations, and processes that limit negative effects.

Globalization as a Threat and an Opportunity

Globalization has allowed society to enjoy many benefits, including increased global cooperation, reduced risk of global conflict, and lower prices for goods and commodities. Unfortunately, it’s also led to serious negative effects on the environment.

Since it isn’t feasible for globalization to end or reverse, it’s likely the situation will worsen until nations, governing bodies, and other organizations are compelled to implement laws and regulations that limit negative effects.

Businesses and industries that operate globally have an incentive to take whatever voluntary actions they can to reduce the potential for negative consequences. Doing so can not only provide an organization greater control over its initiatives, but also a powerful marketing and communication tool .

Some ways businesses address climate change include:

• Transitioning to renewable energy sources
• Choosing greener infrastructures or equipment
• Reducing energy consumption
• Creating credible climate transition plans
• Raising awareness among employees

In addition, investing in renewable energy and packaging, embracing responsible land-use management, and shifting goods production to move closer to the end customer are all viable options that businesses can and should consider. The challenge lies in balancing a desire to embrace corporate social responsibility with the need to turn a profit and run a successful business.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with our four-week Global Business course. In addition, explore our Business and Climate Change course to help your organization adapt to and embrace business risks and opportunities created by climate change, as well as our other online courses related to business in society .

This post was updated on February 28, 2024. It was originally published on April 15, 2021.

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The pros and cons of globalization.

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A story in the Washington Post said “20 years ago globalization was pitched as a strategy that would raise all boats in poor and rich countries alike. In the U.S. and Europe consumers would have their pick of inexpensive items made by people thousands of miles away whose pay was much lower than theirs. And in time trade barriers would drop to support even more multinationals expansion and economic gains while geo political cooperation would flourish.”

There is no question that globalization has been a good thing for many developing countries who now have access to our markets and can export cheap goods. Globalization has also been good for Multi-national corporations and Wall Street. But globalization has not been good for working people (blue or white collar) and has led to the continuing deindustrialization of America.

Globalization is a complicated issue. It is necessary to evaluate the pros and cons before drawing any conclusions.

Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty.

1. Free trade is supposed to reduce barriers such as tariffs, value added taxes, subsidies, and other barriers between nations. This is not true. There are still many barriers to free trade. The Washington Post story says “the problem is that the big G20 countries added more than 1,200 restrictive export and import measures since 2008

2. The proponents say globalization represents free trade which promotes global economic growth; creates jobs, makes companies more competitive, and lowers prices for consumers.

3. Competition between countries is supposed to drive prices down. In many cases this is not working because countries manipulate their currency to get a price advantage.

4. It also provides poor countries, through infusions of foreign capital and technology, with the chance to develop economically and by spreading prosperity, creates the conditions in which democracy and respect for human rights may flourish. This is an ethereal goal which hasn’t been achieved in most countries

5. According to supporters globalization and democracy should go hand in hand. It should be pure business with no colonialist designs.

6. There is now a worldwide market for companies and consumers who have access to products of different countries. True

7. Gradually there is a world power that is being created instead of compartmentalized power sectors. Politics is merging and decisions that are being taken are actually beneficial for people all over the world. This is simply a romanticized view of what is actually happening. True

8. There is more influx of information between two countries, which do not have anything in common between them. True

9. There is cultural intermingling and each country is learning more about other cultures. True

10. Since we share financial interests, corporations and governments are trying to sort out ecological problems for each other. – True, they are talking more than trying.

11. Socially we have become more open and tolerant towards each other and people who live in the other part of the world are not considered aliens. True in many cases.

12. Most people see speedy travel, mass communications and quick dissemination of information through the Internet as benefits of globalization. True

13. Labor can move from country to country to market their skills. True, but this can cause problems with the existing labor and downward pressure on wages.

14. Sharing technology with developing nations will help them progress. True for small countries but stealing our technologies and IP have become a big problem with our larger competitors like China.

15. Transnational companies investing in installing plants in other countries provide employment for the people in those countries often getting them out of poverty. True

16. Globalization has given countries the ability to agree to free trade agreements like NAFTA, South Korea Korus, and The TPP. True but these agreements have cost the U.S. many jobs and always increase our trade deficit

• The general complaint about globalization is that it has made the rich richer while making the non-rich poorer. “It is wonderful for managers, owners and investors, but hell on workers and nature.”

• Globalization is supposed to be about free trade where all barriers are eliminated but there are still many barriers. For instance161 countries have value added taxes (VATs) on imports which are as high as 21.6% in Europe. The U.S. does not have VAT.

• The biggest problem for developed countries is that jobs are lost and transferred to lower cost countries.” According to conservative estimates by Robert Scott of the Economic Policy Institute, granting China most favored nation status drained away 3.2 million jobs, including 2.4 million manufacturing jobs. He pegs the net losses due to our trade deficit with Japan ($78.3 billion in 2013) at 896,000 jobs, as well as an additional 682,900 jobs from the Mexico –U.S. trade-deficit run-up from 1994 through 2010.”

• Workers in developed countries like the US face pay-cut demands from employers who threaten to export jobs. This has created a culture of fear for many middle class workers who have little leverage in this global game

• Large multi-national corporations have the ability to exploit tax havens in other countries to avoid paying taxes.

• Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages, living and working conditions), as well as lack of concern for environment, mismanagement of natural resources, and ecological damage.

• Multinational corporations, which were previously restricted to commercial activities, are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power, due to globalization.

• Building products overseas in countries like China puts our technologies at risk of being copied or stolen, which is in fact happening rapidly

• The anti-globalists also claim that globalization is not working for the majority of the world. “During the most recent period of rapid growth in global trade and investment, 1960 to 1998, inequality worsened both internationally and within countries. The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources while the poorest 80 percent consume just 14 percent. “

• Some experts think that globalization is also leading to the incursion of communicable diseases. Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners of the globe.

• Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an increase in human trafficking.

• Social welfare schemes or “safety nets” are under great pressure in developed countries because of deficits, job losses, and other economic ramifications of globalization.

Globalization is an economic tsunami that is sweeping the planet. We can’t stop it but there are many things we can do to slow it down and make it more equitable.

What is missing?

Leadership – We need politicians who are willing to confront the cheaters. One of our biggest problems is that 7 of our trading partners manipulate their currencies to gain unfair price advantage which increases their exports and decreases their imports. This is illegal under WTO rules so there is a sound legal basis to put some kind of tax on their exports until they quit cheating.

Balanced Trade – Most of our trading partners can balance their trade budgets and even run a surplus. We have not made any effort to balance our trade budget and have run a deficit for more than 30 years resulting in an $11 trillion deficit. The trade deficit is the single biggest job killer in our economy, particularly manufacturing jobs. We need the government to develop a plan to begin to balance our trade deficit even though this is not a political priority in either party.

Trade Agreements – Both the NAFTA and the South Korean Korus trade agreements might have been good for Wall Street and the multi-national corporations but they eliminated jobs in America and expanded our trade deficit. The upcoming Trans Pacific Trade Agreement will do the same thing and Congress should not fast track this bad agreement for a dozen reasons.

Enforcing the rules – China ignores trade rules and WTO laws with reckless abandon. Besides currency manipulation they subsidize their state owned companies to target our markets, and provide funding to their state owned companies that dump their products in America. They also steal our technologies, sell counterfeit versions of our products, and impose tariffs and other barriers anytime they want - as we do nothing to stop them. China does not deserve to be on our most favored nation list and we need to tax their exports to us until they stop these illegal activities.

What is good for third world countries, like Kenya, or countries with tremendous growth, like China, has not been good for American workers. Globalization is deindustrializing America as we continue to outsource both manufacturing blue collar and white collar jobs. Supporters of globalization have made the case that it is good because it has brought low priced imported goods, but they have not matched the decline of wages in the middle class and will not offset the loss of many family wage jobs

Globalization is like being overwhelmed by a snow avalanche. You can’t stop it – you can only swim in the snow and hope to stay on top. I would like to make the argument that the US should try a lot harder to swim in the snow and stay on top. We can’t stop globalization but there are many policies and strategies we can use to make it more equitable. We can enforce the trade laws, force the competition to play by the same rules, and stop giving our competitors the tools (technology and R& D) to ultimately win the global war.

Mike Collins is the author of Saving American Manufacturing. His website is www.mpcmgt.com.

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