Aim the Top but Don’t Forget the Gap!

Everybody wants to live in a country where everything flows well, everything is

beautiful, and everything is fair. When education, healthcare, and justice are considered

a right and not a privilege, it is when we know that the country is being served right by

the authorities that we put into their respectful positions. Global economic and political

integration have been a long-term trend that we consider to be one of the greatest

supports for countries to boost their economic stability. Integration processes promise

countries to develop and strengthen their economies, improving the lives of the citizens

of the world. And the Philippines is not a stranger to the benefits that these integration

processes provide. However, considering that we are a long-term active member of the

ASEAN, isn’t it alarming that despite all the progress we have achieved for decades, the

number of people below the poverty line continues to grow?

The integration processes definitely are a major help for the Philippines to

improve its economic and political performance. Nonetheless, considering the current

state of the Philippines, the integration processes seem more like a band-aid solution to

a severely broken system. And if not fixed fast enough, we may be looking at a country

wherein the rich will become richer and the poor will be poorer. While a support from

these processes are always welcome, I think that the government should focus more on

what’s happening inside the country and strengthen the country’s economy in a way

that will enable the citizens to prepare for the changes that globalization will provide.

What better way to strengthen the local economy than by focusing on our agriculture? It

is a no-brainer that agriculture plays a vital role in every country, especially the

Philippines. It provides a country their main source of food, income, and employment.
Agriculture is considered as the backbone of our economy, providing 11.3% of the

country’s GDP way back 2014 which led to a 32% of total employment in 2012 [ CITATION

Fra16 \l 1033 ]. Yet, our farmers and fishermen are still one of the underpaid workers in

the Philippines. With our agricultural reform programs always taken for granted, 60% of

our country’s population either directly or indirectly involved will always be compromised

[ CITATION EJL14 \l 1033 ]. And this is very alarming because compromising the needs for

reform in the agriculture sector is a recipe for prolonging poverty and hunger in the

country.

Noted by the ASEAN Trade Union Council, our country is considered to have the

highest rate of economic and social inequality in South East Asia. Due to this, the gap

between the rich and the poor widens. This happens because there is an unequal

distribution of land, education and vocational opportunities, as well as basic welfare

programs for the Filipinos[ CITATION ATU11 \l 1033 ]. Which raises my concern regarding

globalization, while the Philippines is integrating itself to the trend of globalization and

reaping the benefits of it, why is it that a greater percentage of Filipinos still suffering

from poverty and unemployment? It was stated that the increasing globalization

delivered the country an increase in trade openness which grants a relative reduction in

our country’s income inequality[ CITATION Diw17 \l 1033 ]. Moreover, we have recognized

an increase in GDP for the past years which is a good sign for the economy. However,

the increase in GDP also threatens an increase in OF remittances in which can actually

give rise to a higher income inequality[ CITATION Diw17 \l 1033 ]. With that being said, it is

safe to say that even if there is an increase in GDP exhibited in the country, if it is

partnered by a high rate of income inequality, it could still aggravate the country’s battle
with poverty. Also, a study conducted by ASEAN stated that while integration will

improve the flow of goods, services and investments, as well as labor in the country, if

the benefits provided by the ASEAN Economic Committee is still poorly managed and

unfairly distributed, it will put the country at a much higher risk of poverty,

unemployment, and vulnerability. Furthermore, the country’s step towards trade

liberalization and adoption of an open economy in which promises to bring more FDIs in

the country did not come to fruition, the employment sector in the Philippines has

remained relatively stagnant for the past two decades despite the steps taken [ CITATION

ILO19 \l 1033 ]. Which brings me back to the question, is global economic and political

integration bringing more harm than good to the Philippines and its people or not?

If the government really wants to be competitive enough globally, certain

measures must and can be fixed first before aiming a more challenging step towards

progression. We must know that an imbalance in regulations and laws mandated in the

country generates a gap between the competitive and counterproductive sectors of the

Philippines. This can be tracked down to uneven growth and job opportunities in the

country[ CITATION Joh12 \l 1033 ]. Indeed, globalization can be a major help in supplying

our need for job opportunities. However, it is worth noting that, the majority of jobs

offered by companies require a certain level of educational attainment before being

accepted to a job that can comfortably sustain their needs. This is when the problem

comes in, the need for better laws in education must be implemented, education should

be a right of the Filipinos because it is what will aid them into accessing a higher-paying

job in the future. Education is a vital tool not just for the personal benefit of each Filipino

but for our country’s economy as well. A research study conducted by the Institute of
Management Development (IMD) stated that among the 66 countries observed with

regard to its talent competitiveness, the Philippines had the most significant drop in the

World Talent Ranking in 2018. The ranking was categorized to three factors: investment

and development, appeal—which denotes the attractiveness of the country for local and

foreign talent, and readiness that represents the quality of education in the given

country. The Philippines’s sharpest drop in the three categories is on the readiness

factor in which went from the 11th to the 37th place. Due to this, the Philippines is

considered as “not as equipped” with the knowledge and skills that are vital for labor

employment [ CITATION Art18 \l 1033 ]. It is a known fact that education serves as the

foundation for sustained economic growth. Imagine the value of human capital where a

person who was able to access a higher paying job due to having enough educational

background will be able to provide its country a 62% share of human capital in total

wealth [ CITATION Har16 \l 1033 ]. Furthermore, countries who spend more on education

has showed a significant result in having a more stable economy than those who do not

prioritize education. This is proven by the Human Capital Theory which postulates that

an investment in education recompenses in terms of increased salaries or wages of the

people[ CITATION Jam06 \l 1033 ]. Education is an investment worth taking, this is where

everything boils down to. This is where innovation starts. Considering that the

Philippines’ greatest asset is the Filipinos, it is important that the government will take

care of our rights and continue to enhance our capabilities because this investment will

save the future our country and its economy.

For my last point, I would like to ask what makes a country appealing for

investors to come and invest on it? Obviously, the government plays a vital role in this
part of the process. The economy as well as the political aspect of the country must be

going hand-in-hand smoothly to be able to attract more investors. This means that if our

country has very little political risks then investments would flow smoothly on us.

However, with the continuous rising issues on graft and corruption, armed conflicts,

human rights violations, and ingenuine governance; foreign investors tend to think twice

before laying out their investments to the country [ CITATION Joh12 \l 1033 ]. The IPAs

approved that foreign investment pledges have experienced a 69% percent increase,

from $2.04 billion to $3.45 billion from 2017-2018 [ CITATION Dou19 \l 1033 ]. However,

Foreign Direct Investments in the Philippines are still relatively low in all the members of

the ASEAN. The constraints in investments that we experience are all due to the

political risks stated above. This is why I do think that if we really want to be competitive

enough and effectively reap the benefits of the integration processes in the country, in

which no Filipino will be left behind, we must straighten out our political risks first. This

way, an improvement in the political issues in the Philippines will have a domino effect

in creating a more harmonious flow in the country as well as the economy.

Agriculture is a big deal for the Philippines considering that we are primarily

known as an agricultural country and that we take pride on our natural resources, our

geographical location as well as our climate. The agriculture sector of the country

contributes to 20% of the GDP and 39.8% labor force of the country. However, this

sector only made it to the 4% of our national budget [ CITATION Mas18 \l 1033 ]. This is

alarming because since 2011 the funds for our agricultural sector has been decreasing

and this sector has been experiencing various challenges when it comes to land

distribution and most especially natural calamities. With that being said, to aid the
problems that the country’s agricultural sector is facing due to the natural calamities, the

International Fund for Agricultural Development provided financial support to 16 projects

that will help the Filipino farmers get back on their feet [ CITATION Mas18 \l 1033 ]. Also,

IFAD offered economic and business strategies for 55,000 small farmers in the

Philippines; educating them about the effective use of various farming methods. The

IFAD aspires that these projects will reduce poverty in the Philippines in the long run.

While the projects and promises of the IFAD are highly appealing and hopeful, we

should take not that encompassing the 39.8% of labor force in the country equates to

more than 12 million people working on the agricultural sector and 70% of them are our

rural farmers and fishermen[ CITATION TNH13 \l 1033 ]. 55,000 farmers helped and assisted

is nice but this number shrinks in comparison to the millions of agricultural workers who

are affected by the budget cut in this sector. The budget cut from the agricultural sector

of the country compromised this sector’s commitments on reversing the rapidly

decreasing palay farm-gate prices to reduce the adverse impacts of the rice tariff law

and so much more [CITATION Fil19 \l 1033 ]. Overall, the budget cut only caused so much

harm on the industry for it did not only affect the livelihood of millions of farmers but it

also took its toll on our production of goods. Granting the wish of the Department of

Agriculture of having a budget which amounts to PHP333.2 billion will give the

Department of Agriculture the opportunity to provide a more productive agriculture in the

Philippines through building more farm to market roads, bringing back and expanding

our declining marine resources, as well as giving our farmers and fishermen a much

better livelihood programs [ CITATION Fil19 \l 1033 ]. All that I want to say is that, obviously,

we have enough funds to fund the various sectors of the government. Financial aid from
other countries are greatly appreciated but they are not the only solution. What we need

is a better and effective way on planning and allocating our budget.

In 2015, the ASEAN economic committee promised to provide 3.1 million jobs in

the Philippines to aid the 38% vulnerability of jobs in the country. Due to this, the

Philippines will have to enhance its skills and technical training for this project to be

successful. The AEC will provide opportunities for 600 million eligible workers in various

working fields [ CITATION ADB14 \l 1033 ]. Also, the estimated rate of unemployment on

April 2019 was 5.1% which experienced a 0.4% decrease since April 2018 [ CITATION

Ral19 \l 1033 ]. The Philippines’ adoption of an open economy as well as the trade

liberalization is also a step taken towards acquiring an increase in FDIs in the country,

this has shown some benefits and improvements for the past decades in terms of the

labor force in our country [ CITATION ILO19 \l 1033 ]. However, as stated above, while an

increase in FDIs and GDP are good for the economy it is not an enough factor to fully

conclude that our economy is actually improving [ CITATION Diw17 \l 1033 ]. Furthermore,

from 2014 to 2019, the country has experienced a decrease in unemployment rate as

well as bloom in the economy but this is mainly due to the remittances from our

Overseas Filipino Workers. The OFW plays a pivotal role in our country’s economy but

this does not erase the fact that local employment is what the government should be

prioritizing. Everyone desires to have a complete family and having to sacrifice and

leave your family behind to find a job in another country to be able to sustain your

family’s needs is heroic but not everyone wants that. Some are forced to do so because

they have no choice, their country can’t support them. Although the government says
that the struggle against unemployment is a top concern, its actions and solutions to this

issue do not seem to support this assertion.

From 2008-2015, the Philippines has been taking measures to decrease the

number of out-of-school youth in the country, their efforts to make education a right

rather than a privilege led them to acquiring a rise in the net enrollment rate in primary

(88-95%), secondary (60-66%), and tertiary education (29-36%) [ CITATION OBG15 \l

1033 ]. Furthermore, the country also decided to implement the EBEA which is the

addition of another 2 years in high school also called as senior high school. This is done

to further aid the educational capabilities of the Filipinos and to not fall behind our

neighboring countries who are already implementing this program. Also, this K-12

reform intents to have the Filipino students be better equipped and competitive enough

to be able to take foreign jobs as well as educational opportunities all over the world. I

would say that the objectives of the K-12 program are understandable and justifiable.

We need to be equipped and competitive enough to be able to progress as a nation, an

education is one of the major keys to that. However, the immediate implementation of

this program led the Department of Education with major lack in facilities as well as

teachers. Furthermore, the Philippines is also one of the member countries of ASEAN

that has allotted a lower budget for education in the country which leads to

compromised teaching facilities, personnel, as well as quality education. This is, again,

an issue about budget allocation.

Truthfully, I do think that global economic and political integrations are inevitable

and irreversible. We will have to face this one way or another because it is a global

trend. However, we should not expect or rely much on the outcomes that it could bring
to the country. Such optimism blinds us from the harsh reality it can provide especially

for the people who are living on or below the minimum wage fare. Remember that

globalization comes with a higher cost of living. Just let that sink in. If there are people

living on a Php150-200 per day to sustain an entire family’s need that day, could they

afford a much higher cost of living due to globalization? All decisions should be

thoroughly thought of. We can’t expect a sudden bloom in the local economy just

because of global economic and political integrations because for one thing, we have

been actively participating in the globalization projects for decades and yet the majority

of the Filipinos are still living and suffering in poverty. Yes, we have seen some

improvements in the economy with the help of these integration processes but to be

honest, who are really benefiting from this economic growth? We have witnessed

benefits in the labor force when it comes to trade treaties but it’s only just a mere dream

to have the entire labor force benefit from the trade treaties provided. This is because

although we have such high number of people available for services, how many of

those people are actually qualified? How many of them have the skills and technological

knowledge for the standards of foreign employment? These types distortions in our

system and economy only leads to a gap between the rich and the poor, and sadly,

these disproportions greatly benefit the elites. Aiming to be more globalized is a good

thing, we must always aim the top and aim for improvement. But remember that a

smaller gap between the rich and poor is what determines a country’s success.

Everyone should be living without fear, everyone should have access to the basic

necessities as well as rights. No one should be left behind in our journey towards the

top. With all these facts laid out, I would like to clarify that I am not against the global
economic and political integrations. I am all for change and for a progressive country.

It’s just that I do not think that we are ready enough to be involving ourselves too much

on this global trend and that we are putting our focus on issues and projects that are not

solving the major concerns of the country and its people. While the integration process

definitely improved sectors in our economy, we must also be aware of the preparedness

of each citizen of the country. That is why I think that without properly addressing the

current issues of the country, the gap between the rich and the poor will continue to

increase and the majority of the Filipinos will suffer from shock due to the increased

standards of living that they are not yet ready for.

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