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The Changing Global Economy: Implications for the Philippines

Author(s): Gary Hawes

Journal: Kasarinlan : Philippine Journal of Third World Studies
ISSN 2012-080X

Volume: 4;
Issue: 1-2;
Start page: 17;
Date: 1989;
Original page

Keywords: Southeast Asia | Political economy | Capital flows | Investment

This paper focuses on the development of new models of South East Asian politics adapted to the dynamics of changing international political economy using the case of the Philippines as the focal point for arguing the case of the politics of South East Asian countries.Changes in patterns of investment and organizations of transnational corporations; changes brought about by the debt crisis of the 1980s; and the relative decline of the United States as world power were factored-in, to the creation of a new politico-economic model.The analysis of data showed that the percent of Foreign direct Investment (FDI) to third World Countries is declining and Third World products are increasingly subject to protectionist barriers which prevent the further penetration of the markets of developed countries. Also, for a nation with a heavy debt burden like the Philippines, it was found out that the net flow of capital is almost certain to be negative due to the declining capital flows and opportunities for export-led growth.For the Philippines to cope up with the dynamics of changing political-economic landscape, a more self reliant approach to development should be adopted by the government. This entails greater domestic savings, taxation, investment and market development.
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