Global Economic Policies
The last contributing factor is global economic policy. Our global economy is patterned according to the neoliberal economy. This was rooted in a political and economic philosophy that emphasized free trade, deregulation, and globalization. It affects government spending by associating the austerity policy measure with cutting government spending on social programs. This theory was associated with and implemented during the times of Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States. It was former President Fidel Valdez Ramos who implemented this policy in the country. Numerous government assets were privatized, including Petron, Fort Bonifacio properties, and many government-owned and controlled corporations. Second, tariff dues were abolished for foreign products, particularly those agricultural commodities from other countries. And lastly, prices of commodities such as petroleum products and others were deregulated by the government.
According to Liz Manning, neoliberalism has negative effects on public services such as health, education, social services, housing, social security, and transportation because the public service orientation is motivated to gain profit. Second, this global policy encourages monopolies by the bureaucrat comprador, in which consumers suffer. The consumer shoulders expenses for the profit on behalf of the corporation. The third one is that capital deregulation would lead to an increase in financial instability. According to the report of the International Monetary Fund, this policy may increase capital flows, which has been a factor in the increased risk of adverse economic cycles. And lastly, neoliberalism encourages the massive privatization of government assets and properties. This happened during the incumbency of the two former presidents, Corazon Aquino and Fidel V. Ramos, when most of the government-owned and controlled corporations and huge government properties were sold to the private sector. This may have a harmful effect on accessing services provided to the majority of Filipinos.
Concluding Statement
The socio-economic has great impact to the poverty. Derailment of the implementation of economic policy may increase poverty incidence. Actually, the global adoption of neoliberal economics instigated by former US President Ronald Reagan has had disadvantages for many of the third-world countries, including the Philippines. This theory has an advantage for developed countries because they have planned the consequences and impact of it while also having many resources, particularly monetary and technological. The safety net is to maximize social service without using the neoliberal approach to providing service to the people. Once we employ this approach, the Filipino may suffer long-term. An example of this is the raising contribution of the social security fund, in which the fund of the social services corporation was transferred to the Maharlika Fund. I hope the economic team will give the president good advice, especially in providing long-term social service to his constituents.
To conclude, I have no intention to challenge the economic policy of the government. Whatever it is, if it would benefit the reduction of poverty as well as uplift the living conditions of the Filipino people, then it might go. The book of Deuteronomy gave us great advice: gaining more profit is a selfish act. Let the widow, the orphan, and the other needy people harvest our leftovers. In such a way, God will recognize us. The land owned by the state is intended for the people who are dependent on it to provide them with our services. However, the government sold those properties and assets to the private sector, where the politicians gained more for their commissions, and the Filipino poor suffered more. Those properties and assets are the only possession of the people, but the government lets the rich occupy those properties and assets. I would like to remind us that God allows the remaining land to Israelite people so that they may till it (Joshua 18:1–20). Transferring the properties and assets of the government, which is entrusted to us by God, is a form of manipulation and monopoly.
Prayer
Oh God, owner of this universe, please give more positive insight to our authorities so they can provide long-term service to the poor and the needy. They have been abandoned by us because we carried out the capitalist policy of the neoliberal economy. Let your powerful hands keep us more focused on providing service to the poor and the needy. In your greatest name, we pray. Amen.
References:
- Easy Sociology by Edwards (2023). Causes of Political Instability. (https://easysociology.com/sociology-of-politics/causes-of-political-instability-an-overview/)
- Liz Manning (2024). Neoliberalism: What It Is, With Examples and Pros and Con (https://www.investopedia.com/terms/n/neoliberalism.asp#:~:text=Neoliberalism%20is%20a%20policy%20model%20that%20favors%20the,of%20economic%20control%20from%20public%20to%20private%20sectors)
- Philippine Daily Inquirer (2023). Headlines (https://newsinfo.inquirer.net/1871182/ph-students-still-among-lowest-scorers-in-reading-math-science-pisa#ixzz8iC2ixZM6)
- Philippine Star (2024). Headlines https:www.philstar.com/headlines/2023/07/24/2283568/marcos-boasts-increase-employment-rate-job-quality-issues-remain
- Jonathan D. Ostry, Prakash Loungani, and Davide Furceri (2016). Neoliberalism: Oversold? International Monetary Fund (https://www.imf.org/external/pubs/ft/fandd/2016/06/ostry.htm)
- WallStreetMojo website (https://www.wallstreetmojo.com/socioeconomics)
Prof. Ruel D. Garcia is a faculty member of La Consolacion College Manila as well as the Editor-in-Chief of the International Journal on Culture, History, and Religion (IJCHR.paschr.ph).
