GRIMPULA, Sophia D.C.

January 9, 2023
BSIT - 2L CONTEMP WORLD

OP-ED ON ECONOMIC GLOBALIZATION

Research for an op-ed on economic globalization. Be able to write the source.

● This paper examines the extent and impact of globalisation on trade, finance, and migration
in the Philippines. Trade globalisation and migration have been more visible in the
Philippines than financial globalisation. While empirical estimates show that globalization
has had a positive impact on the country's economic growth and employment, substantial
evidence for its impact on inequality and poverty has yet to be discovered, with preliminary
estimates yielding mixed results. In both industries and the labor market, there are winners
and losers. As a result, more inclusive policies may help to mitigate the negative
consequences of globalization and facilitate adjustments to narrow the gap between winners
and losers. The Bangko Sentral ng Pilipinas has made significant contributions to this end,
primarily through its emphasis on low and stable inflation, the facilitation of greater
financial inclusion, and increased participation in global cooperation efforts to strengthen
rule-based international transactions. Globalisation is defined as the movement of goods
and services, people, capital, and knowledge across borders (BIS (2017a)). The global
economy has evolved over the last half-century. Globalisation has resulted in a much more
integrated, interdependent, and intertwined society, which appears to be an unstoppable
and irreversible trend. Regional trading agreements, the removal of restrictions on the flow
of trade and investment, and rapid technological changes have resulted in increased
economic integration and globalisation (Aldaba 2011). Economies of emerging markets
(EMEs) have also become significantly more integrated in terms of trade, finance, global
value chains (GVCs), and migration (BIS (2017b)). Some have attributed an unprecedented
period of peace and prosperity to globalisation, claiming that it has boosted growth and
productivity while also expanding opportunities for businesses, investors, and workers
(Ibrahim 2017). This is correct.
Particularly in EMEs, where many observers see globalisation as a major cause of recent
strong growth and significant poverty reduction (BIS (2017b)). However, as a result of the
negative and lingering effects of the Great Financial Crisis (GFC), there has been a growing
backlash against globalisation, not only in EMEs but also in advanced economies, most
notably the United Kingdom and the United States. A pattern of resurgent protectionism is
emerging around the world, and inward-looking policies are gaining traction. This paper
examines how globalisation has impacted the Philippines, beginning with globalisation
trends in the country (Section 2) and progressing to the macroeconomic and distributional
consequences of globalisation (Section 3). (Section 3). The paper then moves on to a
discussion of the challenges that the country faces as it becomes more integrated into the
global economy (Section 4), and finally to a discussion of policies in the final section (Section
5).

SOURCE: https://www.bis.org/publ/bppdf/bispap100_q.pdf