Philippines Over-dependence on Global Economy


The growth of the Philippines economy drastically slowed to just 3.6% in the first three quarters of 2011, which is significantly less than the 7%-8% growth targeted by administration's Philippine Development Plan (PDP). Though the slowdown may have been due to the ongoing global crisis, it was markedly slower in comparison to other South-East Asian neighbors. Economic performance figures indicated a contraction in exports and a drop in FDI. Though the remittances from overseas Filipinos to the country grew in the first ten months of 2011, however the compensation that overseas Filipinos received actually fell, in peso terms, due to an appreciating peso.


In 2011 the Aquino administration sought a FTA (Free Trade Agreement) with the EU and join the Trans-Pacific Partnership (TPP). The administration further allowed the US to even more directly influence Philippine economic policy making in its self-interest, by entering in a Partnership for Growth (PfG). These partnerships will consequently further the dependence of the economy on the global economy, whereas a regional arrangement between less unequal Southeast Asian countries is potentially useful. Greater attention has to be paid to addressing to the internal problems of the economy and enhancing domestic-oriented growth. A policy of removing structural impediments to growth has to be adopted with lesser focus on foreign investors and exporters.


In my opinion the Philippines is over dependent because of the help they get and become dependent to 1st world countries. I think the government should try to export efficiently and minimize importing goods from other countries, because it is slowing down our countries growth and limiting the imports can also make Filipinos like what there country is producing. This over dependence on other countries affect us citizens because it makes our growth slower and it makes our lives harder because the government is to dependent on other countries to help us. This slowness affects us all especially those who are bellow the poverty line because the slow economic growth is making it hard for them to rise up from the poverty line.