Effects of Globalization in the Philippines

The Adverse effects of Globalization in the Filipinos Most young economist c all(prenominal)ed this World New sparingal Order that is all States in the realness bend themselves to promote free come of the sparing. All country and State plainspoken its commercialize with minimal or without both travails. Hence, for instance, Philippine thriftiness is freely slack for the global market with limited restriction or worst without limitation. For this reason new-made economic superpowers, the members of this G7 (e. i. , United States, Japan, UK, Germany, France, Canada, Italy) hassle-free to drop in the Philippine economy.This elan is popularly known as the Globalization. It has trinity elements the privatization, deregulation, and the liberalization. To explain further the event of this Globalization, we need to put scrutiny to its three elements. First, the privatization it is the insurance policy wherein the G everywherenment Own and Controlled Corporations (GOCCs) w here privatized by selling it to the private sector. sec, the deregulation, essence the brass activity has to cut its control over the manufacturing for basic commodities, e. g. , oil colour, water, electrical energy.Lastly, liberalization, is the policy by which all laws regarding import products were amended or abolished, for practice session tariff and quota. Privatization is the process where all political science own corporations be privatized, and maintained by the private sector. We mountain non denied that when a business is in the hands of private institution it is oriented for profit. These GOCCs are basically States inherent corporations because their run are for the public consumption desire the electricity, water, transportation, telecommunications, and the the like.They are essentials for the well being of the State. This trend of Globalization threaten this States natural order. This trend, as push by the G7, paving these economic superpowers to access to the basic industries of a sketch country. The truth is members of G7 has all the available resources, for the discussion of certain economy of a airfield state. Take for subject the Philippines, as express it is the largest producer of geothermal energy in the world, yet one of the highest rate of electricity in the world.This is true because the Philippines electric patience is on the hands of private company. This is excessively true to other basic industry. Second element that is deregulation. To deregulate meaning the government activity has no legislative intervention over the certain corporation which main industry is for public consumption, as big as the company submitted reason of the their actions. Best theoretical account of this is the Philippine Oil Deregulation law or Republic Act (R. A. ) 8479. Before, oil terms is under controlled of the government by nub of its quasi-agency, Oil Price perceptual constancy Fund (OPSF).This quasi-agency hold the price of Oil. logically the fair market value. It is possible because when the price of Oil in the world market is low the OPSF remain its price to the local anesthetic market as it was brought high, the remaining stocks were sell higher than the world market. The government gained grand profit from this scheme. And when the price of Oil in the world market go up the government reimburse it from the profit they gained when it was low. So its a circle as long as the price of Oil is electrostatic and affordable.But when this G7 introduced the policy of globalization, under baffleed and civilizeing countries no way to run but catch it, bypassing the negative effects. When the R. A. 8479 and the OPSF were abolished, its pave the private companies to hoist the price of oil to their discretion. Today the policy of oil price hike in the local market is determined by the movement of world market, which is on the face of it under controlled by the G7 and the greedy oil exporting countries. Now it is unstable and skyrocketing. Lastly, the liberalization meaning to liberalize.This process is done by means of amending or worst abolish the laws regarding restriction or limitation of import products, for example the tariff and quota. When a certain economy is liberalized, product of developed countries basically can enter to the developing and least develop nation. Its obvious that these products are tautologic from their market, simply outsource the surplus. In the developed countries like the United States there are likewise economic struggle, but not in negative sense. The problem is the surplus products and surplus capital.Hence, US government today is much than willing to do tax reimbursement or refund to circulate the market. They dont want tarradiddle to be repeated way seat in the mid 1940-the economic depression. It is as well true to their products they need to find a new market. Basically, modern economic States did not help these underdeveloped and the d eveloping States elate their sorry condition, if they do so theyre putting themselves in jeopardy. We conclude that if it is the reason of the policy, so why seems all the nation understood upholding this trend of Globalization?There are so many reasons. One reason, dramatise for example the Philippines poor and developing country. The economy is heavily dependent on its culture and natural resources. Its been a clamor to develop its economy it badly needed funds. The government in order to avert such(prenominal) problem needs to lend huge amount of coin from world financial institutions like the World Bank and the foreign Monetary Fund (IMF). These financial institutions obviously from the G7 because they have the huge share.And basically these institutions existed for that cause-to controlled and to intervene over the the borrowing States. The Philippines is relatively young, poor country it passes several difficulties, one of this is the uncontrolled corruptions. For thi s problem the State needs to gamble, borrowed money from these world financial institutions. Since the problem is systemic the circle is still going- borrow money, and put it to the pocket of corruption. Until such time that the debt of the Philippines were ballooning.