ROYLAND JAVIER

III – POLSCI

POLITICAL ECONOMY
1. Discuss why international politics can no longer ignore economic factors. 5
pts

 International politics can longer ignore economic factors since politics

encompasses state power in which economic factors depend on. Meaning to say,
the intervention of the government as to how resources will be allocated to its
populace. Also, how scarce resources will be reinforced in order to provide for
the people. The way as it is stems from the fact that all economies around the
globe are political, we know for a fact that politics sets the laws under which the
economy operates, proving that they intertwined.

2. How are states and markets being studied in Political Economy? 5 pts

 First and foremost, we have to lay the idea that economics is concerned with the
study and influence of the economy while politics on the other hand is the study
and practice of influencing people via the use of power, such as the
governments. Now to give light how states and markets are being studied by
political economy, beginning with state, political institutions that has something to
do with economic policies are the prime most lead to be given a focus since they
influence the market and the trade. The market on the other hand is being
studied by seeing how competition between consumers to consumers and
producers to producers. Also, the relationship between the consumers and
producers, such as how producers conform to the government’s set selling price.

3. How is globalization posing as threat to the nation-state? Explain. 5 pts

 The way globalization placed itself as a threat on the communal ground among
states around the globe is through different ways of influence, which lies on the
state’s power. In the globalization process, all states are affected, but weak
states are more affected than strong governments in terms of threats to their
sovereignty and autonomy. Just like how strong states have the ability to
influence the form and pace of their integration into the global economy to some
extent. Some countries, for example, have been able to slow down or restrict the
rate at which they have integrated into global capital markets. On the other hand,
weak states have no say in the design and enforcement of the system's rules,
nor do they have a say in whether or not they want to be part of the global
economy. Aside from that, globalization gradually erases distinction among each
state from one another. In a way wherein we are at the propensity to see
everything in every place around the globe due to globalization. Also, cultures
might clash along the way in a way where cultures will compete as to which one
would stand better or best.
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4. Why is security an important dimension of political economy? Explain. 5

pts

 Security is an important structure to be considered in political economy since

every state has its own interests that needs to be safeguarded. Security under
the light of political economy could be in a myriad of forms. Two of the most
reasons why security is an indispensable dimension is to provide security from
natural forces and also from the external threats coming from other states. A
state must be able to create its robust security system as it is their economy that
will be at stake. Aside from it, the complexities of conflict situations necessitate a
multifaceted approach that addresses security which affects economical growth
all at the same time. There are many unseen perils that can go in the way which
economy should not falter only if a robust security system through economic
policies will be created.

5. President Duterte recently signed the law allowing full ownership of telcos,
airlines and railways. This serves as amendment of the 85-Year-old
Commonwealth Act No. 146 or the Public Service Act. Provide your
comment on this issue. How do you see now the future of the PH
economy? 15 pts

 For such a long time, ideas on foreign ownership in our country have remained
moot, with a plethora of explanations for why it should be allowed and why it
should not. Both sides make valid concerns, and both will bear fruit for the
Philippines' economic system, such as ensuring a more secure and non-deficient
economic position capable of sustaining the country's national needs. On the
other hand, we cannot ignore the disadvantages of fully opening up ownership to
foreign entities, as we might find that our properties are majority owned by
foreign entities, which, in turn, may loom the country with their ideals and ours
being dwindled, potentially leading to the loss of control over our own economic
system. It would be such a disgrace to the Philippines if the majority of ownership
was held by foreign corporations; it would be like a country of countries operating
under the guise of the name's country, the Philippines. After weighing the pros
and cons, I believe that foreign companies should not be allowed to own 100% of
a company. The goal of keeping up with other countries by granting foreign firms’
complete control is not the constraint we need to fill in. Also, extending to the
point where there are few buttons to click in the hopeful good future because the
rest is in the hands of foreign organizations, which could exacerbate our
economic system's limits even more. "The basic goal of this proposal is to
provide consumers with choices," Grace Poe says, and I believe that by opening
our economy to a wide group of investors, we could provide more and better
choices to our fellow Filipinos." In my humble view, I would have to disagree with
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the lady senator because the measures she has outlined are far too simple and
quick to be effective. The issue that we should be considering in order to provide
better options for Filipinos is to invest in local firms in order to create jobs. We
are never left with only one option when there are so many to choose from, the
first of which is to strengthen our domestic enterprises before considering
overseas ones.

Concerns about national security, as it has been stated that the congress is
aiming to open up different industries such as telcos to foreigners, and as she put
it, "we have tech savvy neighbors as well as rogue non-state elements that are
directly targeting facilities in the region." Opening such industries to foreigners
with full ownership will be risky, as there could be a slew of problems. To
victimize our country would be just as easy, not to downgrade the level of
technology that we have, but to compare it to how high such a state of the art
does some foreign countries have. I agree that we need foreign investors since
they provide real chances for our Filipino neighbors, but we must prioritize our
domestic industries because they are ours. We don't want to see foreign firms
prosper in the Philippines while indigenous industries struggle to survive owing to
competition with which they can't compete due to the government's lack of
support. We don't want to see foreign companies continue to grow while our own
industries dwindle. What's more enjoyable to watch is a fight between
international and domestic firms, with local industries able to compete with these
foreign corporations because they are subsidized by the government. In this way,
full foreign ownership will pose no threat to our domestic industries, and certain
internal government concerns about conferring full ownership to foreign firms will
fade away, as there will be little opportunity for them to dominate the system.
Restrictions are, for the time being, a form of protection, but who knows what the
future holds. But to top it all, since it was signed already, I see growth and
prosperity coming from foreign investors, hoping that the imminent things will not
happen.

6. The recent war between Ukraine and Russia paved the way for several
economic repercussions in the country. Primarily, the prices of oil and
gasoline spiked, affecting the market conditions in general. Others
attributed this economic catastrophe to the previous government decision,
specifically the oil deregulation policy during the Ramos Administration.
Give your comment on this issue and what can you recommend to address
this economic problem. 15 pts

 This war of Ukraine and Russia has been hitting countries around the globe by
means of affecting one’s economy as oil price hike happens since Russia is one
of the key players in oil trade. Seeing how our country is being at pain since the
severe inception of the war, makes me wonder if our government has something
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up of their sleeves to at least counter the imminent crisis we might be in as this

war goes protract. What we are experiencing right now is clearly how our
government is still on the process of patching things up, trying to figure things
out. The way I see how oil price is hiking so high make me think that our
government is currently being reticent and waiting for the war to stop so that
things will be reinstituted from the way it is before this war came in. They are all
on announcing the hike without a more concrete way of countering the issues
setting forth. Regarding the oil deregulation policy during the Ramos
Administration, it is very susceptible to business key players in the oil trade and
this might only exacerbate things even more. We cannot allow market forces to
dictate oil prices as they are at the propensity to turn this as an opportunity to
dictate higher cut, when its prime reason would be to get undercut prices. It will
be difficult to deal with prices which are set unreasonably. In this case, my view
would be to suspend temporarily the excise tax which in return, an entreaty of
offer for the suppliers of oil to lower down their price. This oil suppliers will not
lower down their prices unless there will be something in return. A good offer
such as temporarily suspending excise tax in return for lowering the price of oil
supply. With that, the government will able to alleviate the plight of the Filipino
people who are having a hard time to keep up with the things that they need.
Another recommendation I would like to lay is through creating a rotation of
which commodities that are being affected will given a hike. People would know
and be prepared as to which commodity they need are bound to hike. In this
case, not all commodities will go high all in the same time, and people will still
have some time to afford what they need.