Effects of Globalization

1. EFFECTS OF GLOBALIZATION IN THE PHILIPPINE CONTEXT
According to the World Health Organization (WHO), globalization is the increased
interconnectedness and interdependence among individuals and nations. It encompasses two main
aspects: the opening of international borders, allowing rapid movement of goods, services, finance,
people, and ideas; and the changes in institutions and policies at national and international levels
that support or encourage such exchanges. In the case of the Philippines, globalization has had
both positive and negative effects, shaping various aspects of its economy, culture, and
environment.
POSITIVE EFFECTS
 Economic Growth & Employment: The Philippines has benefited from globalization
through increased trade opportunities and foreign investments. Export-oriented industries
such as electronics, agriculture, and business process outsourcing (BPO) have thrived,
contributing to economic growth and job creation. This economic growth has led to a
higher standard of living for Filipinos, characterized by better education, improved health
services, and increased income.
 OF Remittances: Remittances from overseas Filipino workers (OFW) increased capital
flows and raised investments, labor productivity, and economic growth. It contributes to
ending poverty and hunger. Remittances promote local economies by boosting the flow of
money into the nation and this can lead to job creation and support for small enterprises,
both of which contribute to economic growth.
 Promotion of Innovation and Technological Advancement: Globalization has
facilitated the entry of foreign knowledge and competition into the Philippines, leading to
significant technological advancements. Access to new technologies has helped the
Philippines climb in the Global Innovation Index, improving from 100th in 2014 to the
50th most innovative economy in 2020. This leap in innovation not only enhances
productivity but also raises the overall standard of living by introducing more efficient and
effective products and services.
 Cultural Exchange: Increased connectivity has allowed for greater cultural exchange
between the Philippines and the rest of the world. Filipino culture, including cuisine, music,
and traditions, has gained global recognition, while the country has embraced influences
from other cultures.
NEGATIVE EFFECTS:
 Income Inequality: Despite economic growth, income inequality remains a significant
challenge in the Philippines. Globalization has widened the gap between the rich and the

2. poor, with marginalized communities often left behind in the pursuit of economic
development.
 Job Displacement: While globalization has created new job opportunities, it has also led
to job displacement and insecurity, particularly in traditional industries. Workers in sectors
like agriculture and manufacturing may face competition from cheaper imported goods
from other countries.
 Social Disruption and Family Separation: While providing economic benefits, the
globalization-driven migration has led to the separation of families. Filipino workers,
including seafarers and domestic workers, often spend years away from their families,
which can lead to strained relationships and psychological impacts on both the workers and
their families left behind.
 Cultural Dilution and Loss of National Identity: As the Philippines interacts more with
foreign cultures, there has been a noticeable impact on its national identity. The adaptation
of foreign cultural elements, such as the rise of P-pop, which emulates Korean pop music,
shows a shift away from traditional Filipino music and arts. This cultural shift can lead to
a dilution of the distinct Filipino cultural identity, as more global and homogenized cultural
expressions become mainstream within the country.
 Child Labor: Despite strong economic progress in the Philippines over the last several
decades, there are approximately 2.1 million child laborers between the ages of 5 and 17
years old in the Philippines according to the 2011 Survey on Children conducted by the
Philippine Statistics Authority (PSA). About 95% of these children are engaged in
hazardous work. Among them, 69% percent fall within the age range of 15 to 17 years old,
which exceeds the minimum allowable age for employment but still exposes them to
dangerous working conditions.
In conclusion, globalization has brought both opportunities and challenges to the Philippines.
While it has brought economic growth, promoted innovation and technological advancement, and
cultural exchange, it has also brought challenges.
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