The Effects of Globalization on the Philippines and India

The Effects of Globalization on the Philippines and India

In this paper the author will briefly look at the globalization of two nations, the Philippines and India. We will look at each country before globalization, the turning point where globalization began for each nation, and finally the effects of globalization on each country. This writer believes it can be successfully argued that the globalization of each country has improved the overall standard of living in each country. We will also look at the positive and the negative effects globalization has brought to each nation.

Globalization In The Philippines

The Philippines Before Globalization

Throughout the last century the Philippines has been a nation with many separate ethnic groups within its boundaries. Its seven ethnic groups ( more depending on the method one uses to differentiate the population) are scattered over 7,000 islands (Banlaoi 2005). The Philippines pre-1995 was a country whose economy was largely based on agricultural production and on a small part on mineral resources such as copper, gold, chromium, and iron. It has been estimated that 90 % of Philippines' minerals have been undeveloped . Filipino government was authoritarian and considered weak, corrupt, and run by ruling families, clans, landlords and business. While the country regularly held elections, they were considered a farce as the ruling powers could easily influence and buy the outcome of elections to keep the status quo intact. It's no wonder then the government suffered low morale, corruption, and limited technological skills. All of these issues resulted in keeping the country from having a cohesive socioeconomic organization (Villanueva 21).

Poverty has been a major problem for the Philippines. In country of 80 million people it is estimated that over 14 million live in poverty. Filipino religious background has been dominated by Christianity, first by Roman Catholicism brought by early Spanish rulers and later with Protestantism brought by the United States' rule in the 20th century. Muslim has been a growing influence and population (Banlaoi 2005).

How Globalization started in The Philippines

The turning point for globalization for the Philippines came in 1995 when the country signed an agreement to join and work with the World Trade Organization. The World Trade Organization-WTO (this is greatly simplified) does three things for membership countries. First, binding agreements help govern international trading commerce. Second, the WTO helps commerce between nations flow as freely as possible. Finally the WTO assists international commerce settle trade disputes within the its agreements. The joining of the World Trade Organization was a direct and intentional action by the Philippines which had an overall positive effect albeit with some negative reactions, as will be mentioned later by portions of the populace (WTO 2011).

How Globalization Changed the Philippines

Joining the World Trade Organization has liberalized the government of the Philippines. While it no longer has the totalitarian regime that reigned in the 70's which caused many to leave the country, they faced some major problems in globalization. Its corruption and long established ethnic and regional rulers railed against loss of power and revenue verses what would be good for the Philippine people.

Overall Global Globalization establishes a middle class or expands a middle class wherever it takes hold and the Philippines is no exception. The middle class has benefited from the developing of minerals which have made the Philippines a leader in the exports of electronics and semi-conductors. Jobs have also increased in the service sector. One journalist wrote that in one city he observed that in pre-globalization days the streets would be deserted at night because everything operated from 8 AM to 5 PM. Now at 9 in the evening the city was busy as young workers were in the streets heading to their jobs to start their work shifts at call centers, answering calls 9 PM to 5 AM from international markets. Service sectors have helped the economy grow up to 5% yearly and expects the number of jobs to rise to between 800,000- 1,000,000 from a base of 250,000 (Llitoro 2007)..

Some Filipinos Many felt the Philippines were negatively impacted by globalization. Indigenous people such as local farmers with small plots of land could not meet the demands of globalized agriculture and lost or sold their family land to large farming corporations or mining companies looking for the mineral deposits underneath their land. Farmers were forced to move to urban areas to look for work or live in poverty. Since globalization had taken place agricultural jobs dropped from a third to a fifth of the nation's GDP (Sibal 2010). These families have none of the education, technical, or computers skills needed to make a living in a global economy. One can easily imagine how the loss of family land, work, the movement of people who have lived in the same area for generations have caused some discontent.

Some religious groups such as Muslims whose numbers and influence are growing on the Philippines are increasingly unhappy being under Filipino rule. They are displeased with the moral liberalization that is inevitable when globalization takes place. Due to this the Muslins have wanted to succeed from the Philippines and form their own state and authoritarian rule (Banlaoi 2005) .

Globalization in India