The COVID-19 pandemic highlights the folly in how entire generations had been indoctrinated in the concepts of hooking up to the bigger global market rather than maintaining local self-sufficiency. Even the United States with its decades-long wanton “outsourcing” binge ultimately shot itself in the foot. It created manufacturing powerhouses like China that are now racking up surplus upon surplus while globo-“sourcer”, the US, sinks further into deficit oblivion.
Just how fragile these inter-dependencies among nations had become now comes to light as entire supply chains grind to a halt while international travel plummets. Countries are now forced to become more self-sufficient, finally recognising the network of economic and social insecurity globalisation created. In the best position to survive and crawl out of this deep hole — even thrive — are societies with strong scientific, technological, and industrial traditions. These are nations that are net capital exporters. At risk of catastrophic collapse are net capital importers — countries dependent on imports for even the most basic durable products such as can openers. These societies are woefully dependent on foreign expertise and, yes, dependent on foreign investment to even just survive.
The Philippines, a Third World country then as it is now, remains one such country encouraged to “open its markets”. But open up the market to foreign capital and foreign goods in a society that inherently lacks a track record of innovation and suffers a deficit of entrepreneurial inclination to begin with, and you get an addiction to all things foreign (foreign capital, foreign incomes, foreign substance) and a vision for developing an indigenous capability to create these things atrophied beyond all hope of recovery. Not all societies are created equal just as not all people are destined to be wealthy.
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Whatever the case and whatever the excuses of the past, the COVID-19 pandemic and the unprecedented economic crisis it is creating brings back home a clear message. Third World countries like the Philippines need to work at becoming truly independent. Specifically, the Philippines needs to learn to sustain its population primarily through domestic production and investment. Can’t do that they say? Well that just means there are too many Filipinos than can be sustained by their domestic product. Tough luck, right?
Indeed, the enormous population of the Philippines itself is a product of foreign capital. It is sustained by imported food, imported medical technology, and imported incomes. It is sustained by money merely passing through the country and not money generated by wealth created within its shores through productivity gains brought about by innovation and its conversion into capital that is employed in producing things domestically.
Ordinary people being led to believe that they are entitled to own unnecessary stuff and consume excessively has long been a problematic status quo. Corporations have all but convinced people that they can have things right here and right now. There is something not right about societies that believe in that philosophy. Self-importance seems to be a human condition that shrewd marketing had so effectively exploited. There is of course a price to pay for getting things fast and cheap. We are seeing the effects of our fast and cheap way of life today now that COVID-19 has come around to tell us the party is over.
Unless a vaccine for COVID-19 is discovered, entire economies will have to operate in relative isolation over the foreseeable future. The Philippines is no exception and it will need to find a way to take care of its own in a world of dwindling foreign “help”. Perhaps it can survive on producing more nurses for export as rich countries beef up their healthcare infrastructure and drive demand for such professionals. But that’s just the same poverty trap that will keep the Philippines stuck in an insecure state of dependency and a chronic lack of a solid industrial and capital foundation to build a truly independent and resilient economy.
benign0 is the Webmaster of GetRealPhilippines.com.
What is the fundamental function of economy?
Globalization would have been a good idea and trend for the world and for humanity ; because we are all one humanity; with one goal : to improve our human race and to live in peace.
However, this idealistic idea of “one humanity” is not possible, in our present times, because of : wars; religious and tribal conflicts; corruption in all levels of governments; political opportunism and persecution; conflicts in ideologies and beliefs; greed and abuses of all kinds; and all other negativistic , and evil self destructive human tendencies.
Unless, we can remove our negative and self destructive mindsets; the idea of “one humanity” or “Earthlings” living peacefully on Planet Earth cannot be accomplished. We are diverse in race, thinking , beliefs, opinions, etc….but we are all human beings, living on this Planet Earth to live in harmony and peace, and to improve ourselves !
what, your a socialist now? i thought you were the biggest proponent that if we allow the markets to determine the most efficient way, the “invisible hand” will take care of everything. ?
insularity is not the answer just imagine a world where the boeing and airbus only sold commercial airliners to their own countries.
the only real alternatives is 1) an international community fully cooperative and helping each other, all goodwill and kumbaya – not gonna happen it is against human nature, there will be winners and losers like in nature predator and prey
2)open borders which will raise global gdp by 50% in one year hehe but of course will not happen as it may destroy local cultures. not mention still a lot of racism and xenophobia remain.
so we are stuck with globalization we just need to figure out what to do with lesser economically competitive people and nations. philippine sok as long as our ofws are accepted
@greengrin:
Socialism is a bankrupt political ideology and is different from living in peace and brotherhood, or universalism… as one humanity…”Earthlings”…we are still tied to too much greed …if we could work together as one humanity, irrespective of our race, beliefs, cultures , and diverse opinions…the world would be a better place…
The Philippines, a Third World country then as it is now, remains one such country encouraged to “open its markets”. But open up the market to foreign capital and foreign goods in a society that inherently lacks a track record of innovation and suffers a deficit of entrepreneurial inclination to begin with, and you get an addiction to all things foreign (foreign capital, foreign incomes, foreign substance) and a vision for developing an indigenous capability to create these things atrophied beyond all hope of recovery. Not all societies are created equal just as not all people are destined to be wealthy.
—>
This is the most stupid statement I ever read! ^_^
When Multinationals Companies own by FDIs will invest in a country, they also import technologies & innovations with them. including Manpower Resources. How about hiring Filipinos? In the first to 2nd Generations, most Filipinos who will work in a newly established Foreign Companies as BLUE COLLARS, but gradually it will start creating or producing White Collars Filipinos.
In fact, the current PROTECTIONIST Economy is what keeps the Philippines from escaping its Stone-Aged Era.
Correct. Unfortunately webmaster contradicted himself when he said the US created ppowergouse China, and then advocates for domestic investment.
Well, at least one country followed his domestic investment advice. The Soviet Union. No wonder the USSR is the model economy of the 21st century. Oh wait, there’s no USSR anymore?
Apparently, in webmaster’s version of history Singapore, Taiwan, etc. closed themselves off ala-Tokugawa Japan, which was the secret of their thriving economies.
Third World countries like the Philippines need to work at becoming truly independent. Specifically, the Philippines needs to learn to sustain its population primarily through domestic production and investment. Can’t do that they say? Well that just means there are too many Filipinos than can be sustained by their domestic product. Tough luck, right?
^ wow, another garbage article benign0. This is your big idea? Basically there are too many Filipinos. Eh di wow. Eh di wow…. You should take a step back Thanos. I guess you just want half the philippines to magically drop dead? I nominate your SHEEP, ChinoF and hyden sextape 69kho to be among the first to drop dead.
Here’s the thing. Your article once again has NO DATA to prove any of these points. Just benign0 the turd’s dumb ideas. Why don’t you come up with your own economic theory eh benign0?! Call it the “Turd theory of economics”
The Philippines has been slowly reducing poverty these past few years. That’s because nation building in a free and democratic society is done brick by boring brick. Something you would know if you weren’t living in Australia.
https://cnnphilippines.com/business/2019/4/24/World-Bank-poverty.html
@Darth the YellowTard:
The Philippines will take many centuries, to be independent and self sufficient. We are a Third World country, that is too dependent on imported foreign consumer goods; we are a manual labor supplying country.
If there are no OFWs , the Philippines would have been bankrupt for a long time.
Science and technology are the fields, that advances a country, thru industrialization. Science and technology are the ones, that produced new products and new inventions for consumer markets, both domestic and foreign…
Our scientists and technical people, almost all of them, have migrated to foreign countries, because
of the low pay, and there are no future of their careers in their own country … brain drain…YellowTards, like Darth the YellowTard, are only the ones left, with a job of being a nuisance GRP troll..
The population of our country is increasing leaps and bounds, every day….sustainable domestic production ? I don’t believe, we can attain this “first world country pipe dream”, now or in the future…no matter what we do…I don’t believe we can kick out our dependence and addiction to foreign goods …We are also too much addicted to politics…
So, Darth the YellowTard , put your solutions into the trash…it does not work …,think of another way, if your brain is still there !
Dismissing other views with belittling statements does not win an argument.
Low pay, etc. was because the Phil’s. did not develop with the use of foreign capital.
You see your neighbors using those solutions you trashed and yet you still conclude it won’t work?
Indeed, the enormous population of the Philippines itself is a product of foreign capital. It is sustained by imported food, imported medical technology, and imported incomes. It is sustained by money merely passing through the country and not money generated by wealth created within its shores through productivity gains brought about by innovation and its conversion into capital that is employed in producing things domestically.
@benign0
What is incredibly laughable about this statement is YOU yourself are sustained by foreign capital. You are living like a damn PARASITE in AUSTRALIA while whining on your pedestal like a self-righteous hack that the Philippines should basically be a “closed economy” and not rely on trade with foreigners
You are essentially taking advantage of globalization by having immigrated to Australia while at the same time lambasting it. This is PEAK HYPOCRISY benign0 the turd and proof that no one should ever take you seriously.
Australia for me but not for thee right benign0?
The Philippines should close its economy and only eat rice , while you are living pretty in Australia. Isn’t that your grand “solution” eh benign0
@benign0
Globlization has helped lift MILLIONS out of poverty. You can easily google this and read a damn economics book while your at it.
The issue is we have a powerful ROGUE actor in China. They have not been playing by the rules and employ underhanded tactics such as funding fake chi-chi blogs like GRP to spread FAKE NEWS.
benign0 lives in comfort in Australia while taking dirty commie money and sowing trouble in the Philippines. When did you immigrate to Australia? Has it been 10 years now? Do you even know whats going on in the ground here? Or are you just taking directions from your commie masters and spewing the same garbage over and over again.
Obviously in all these artciles, benign0 the TRAITOROUS WORM blames globalization instead of the real culpit which is China while giving backhanded praise to the CCP.
Why don’t you tell your commie masters to STOP EATING THE DAMN BATS AND PANGOLINS!
Move on from your Sinophobia, white colonial lover.
isn’t WHO and Gates using human race as specimens to make money?
“The Philippines, a Third World country then as it is now, remains one such country encouraged to “open its markets”. But open up the market to foreign capital and foreign goods in a society that inherently lacks a track record of innovation and suffers a deficit of entrepreneurial inclination to begin with, and you get an addiction to all things foreign (foreign capital, foreign incomes, foreign substance) and a vision for developing an indigenous capability to create these things atrophied beyond all hope of recovery. Not all societies are created equal just as not all people are destined to be wealthy.”
The Philippines lacks a track record of excellence because of a lack of competition. Are you subscribing to Neri Colmenares’ statements that letting foreign investors invest in the Philippines will drive our local businesses bankrupt? First world countries and their products have that track record of excellence because they were subjected to competition.
”
Whatever the case and whatever the excuses of the past, the COVID-19 pandemic and the unprecedented economic crisis it is creating brings back home a clear message. Third World countries like the Philippines need to work at becoming truly independent. Specifically, the Philippines needs to learn to sustain its population primarily through domestic production and investment. Can’t do that they say? Well that just means there are too many Filipinos than can be sustained by their domestic product. Tough luck, right?”
Learn to be independent? Are you now suggesting the Philippines should become a hermetic state? Did you subscribe to the fantasy of self-industrialization theory of commies like Bayad Muna? Sustain through domestic production and investment? Really, we can’t do that. That’s why we need both domestic and foreign capital.
Also, may I remind you that the countries that are winning their fight against COVID-19 are friendly to foreign investors. These countries such as Taiwan, South Korea, and Singapore are open to FDI. North Korea is not open to FDI and look at it now. Taiwan, South Korea, and Singapore used to be poorer than the Philippines. Foreign investment made them rich and allowed their domestic investments to grow through competition and expansion. Our industries here hardly grow because they have been babied for decades.
“Indeed, the enormous population of the Philippines itself is a product of foreign capital. It is sustained by imported food, imported medical technology, and imported incomes. It is sustained by money merely passing through the country and not money generated by wealth created within its shores through productivity gains brought about by innovation and its conversion into capital that is employed in producing things domestically.”
Yes, and if it wasn’t for foreign capital the Philippines would have been stuck in the STONE AGE. So what’s your proposal to make the Philippines “self-sustaining” then? Go back to the stone age and magically let’s produce our own machineries? Please, we’re already left behind because of that kind of thinking.
You’re in Australia but are you spending too much time in your ivory tower? If so, you’re just like Joma Sison who hates capitalism and foreign investment while living in his ivory tower in the Netherlands.
just dont forget that the east asian tigers grew rapidly because of extreme tinkering by their governments and synergy between public and private sector. not due to the “free market forces”
governing the market by robert wade
Synergy between public and private sector, and yet where do you think most of that private sector came from?
As for government tinkering, Mao and Kim are pretty good at that, too. I could only wonder what was missing from their development plan.
The Philippines has been as open to foreign investment as Japan, South Korea, Taiwan, and Singapore for the longest time. The difference is that all those countries made something of those investments. The Philippines, on the other hand, was a mere investment sinkhole — at best taking the investment to create employment but, beyond that, exhibiting very weak capacity to absorb expertise, technology, and industrial wherewithal.
Indeed, as I wrote some time back… The Philippines is one big SQUANDERED foreign investment.
In short, whether as a recipient of foreign investment or left to its own devices, the Philippines lacks an ability to sort itself out. Money is not the solution to the Philippines’ problems. The problem with the Philippines is deeply cultural in nature.
As a Filipino national with the great ideas and things you seem to know more about perhaps you should lend and/or invest your genius to your fellows in the Philippines instead to the Australians. That’s not a bad idea, do you agree?
Pardon me, but, except for the good read that not so many would care about, not much will happen with all the GRP articles. In the end and in reality, it’s still the government in a balanced partnership with the oligarchs who will make any country move forward towards a goal. Depending on their success or failure they would ultimately shape the national character of the people.
The Philippines has been as open to foreign investment as Japan, South Korea, Taiwan, and Singapore for the longest time. The difference is that all those countries made something of those investments. The Philippines, on the other hand, was a mere investment sinkhole — at best taking the investment to create employment but, beyond that, exhibiting very weak capacity to absorb expertise, technology, and industrial wherewithal.
Really? Then can you explain about 60/40 and Filipino First policy then?