Unified or Separated?

The Philippine Economic and Political Integration

Political and economic borders are fluid. Some may protrude to be economically

focused as well as be politically appeased. The flexibility of such does not rely on the

governance itself but how the nation accepts its enforcement to their competencies. In

1860, the recognition of economic growth has received plenty of attention introducing

free international product and resource trade. The expanding markets started to take

agreement between successive countries and has committed to the purpose of

economic integration. Economists have generally relied vision on its continuous effects

but has took little attention to the significance of political integration towards growth.

How can political and economic integration be complementary? In the Philippines, it has

grown over the years in pursuing economic expansion and growth in the market; yet it

experiences significant increase in the poverty line. Some root causes of the lagging

development of the country were proven to be due to political risk in investments, land

reforms, legalism, and uneven job opportunities preventing inclusive opportunities for

the Filipinos. Can economic or political integration be the foundation for the possible

upliftment of the governance status of the country? More importantly, can it be that both

of these effects of unification equally be the source of problem for the lagging economy

of the Philippines?

The Philippines has been in an economic revival in the past few years. Through

economic integration, the country has joined constitutions and organizations increasing
the regional share and movement of consumers and producers in the country. Being a

member of the Asean Economic Community (AEC), the country started to benefit in

markets allowing agreements that provide free trade, skilled workers, and products into

interest. According to the website of business mirror, the country has achieved 92.1 %

of implementations of investment and agreements supporting the gains of the regional

value chain in manufacturing and agricultural sectors. The data given provides a huge

increase in the country’s GDP equivalent to 5.8 % reaching an inflow of foreign direct

investments of $5.7billion from the European Union members. The effect of being

inclusive allows a new foundation to purposely revitalize the economic growth of the

country in new widely known perspectives.

Economic integration can reduce monopoly powers in a region. In many cases,

this can be inferred to be positive in innovation and transformation of products allowing

an ever-increasing position of the country to the market trade. It encourages the rapid

spread of technology from influences in different governing states in adaptation of

modern machinery. According to Ian C., 2018, The Philippines has climbed to 55 th of all

countries to be technologically ready. The exposure to such economic integration allows

not only the government but also Filipino’s to adapt and coordinate to stimulate

efficiency in labor, jobs, work, and others. It escalates the possibilities of coordinating

and creating industrial strategies for manufacturing and investments. Being an adaptive

nation, it opens the opportunity to take advantage of member countries’ economies of

scale. If the country continues and remains to be exclusive, with its condition as a

reviving economy; it has the possibility to be deliberate in terms of economic

development.
 Political integration combines components such as economic, social, and other

human system within a political process. In the Philippines, we see political integration

as a framework that depends on growth as an endogenous factor. In many cases,

political engagement in the current status of the country occurs in firm registries. It

prevents economic integration to further affect and influence the investors, constitutions,

and organizations incentives to be influenced away towards seeking rent and

productivity. Most businesses/firms in the country seeks resources for productive and

unproductive activities that works on research and development grants them to

participate in both economic and political markets. Since both markets are

complementary, changes in one market can impact the other in its behavior towards its

devotion to the governing body. The Philippines in its condition, political integration can

increase the stakes of having multinational investors and interrelations with

beneficiaries in economic and political markets.

In many aspects of political and national sovereignty, nations join as political or

trade blocs. Most states feel pressure and join in political agreements in the

contemporary globalizing world. According to global policy, these international

groupings has disrupted national democracy since the beginning from 2006 up until

2012. It followed a democratic accountability at which widens policy-making levels on

trade pacts and processes. In the Philippines, joining the ASEAN congregation in 1967

was a huge promotion to its foreign trade policies. In the years, being one of its founding

members has increased in political means through the pursuit of different initiatives in

trading, policy making and functional cooperation between other member countries. It

has strengthened the foundation of economic markets through strategical approaches

processes, then the current economy of the country in term of economical means

should have dropped leading to various losses in beneficiaries and investors due to low

and unstable and narrow policies for both purpose and incentives.

In free trade, many may seem to see or question trade division in constitutions to

be a huge risk for the economic market. Though it can lead the becoming depressed

regions of small members according to other findings, it is a small factor for the

economic growth of the Philippine and its people to oversee. The country has already

surpassed the borderline separating independence and subservience in its economic

form. According to Ariffin E., 2018, the current status of the Philippine economy since

the regime of the Spanish and American colonies has increased its gross domestic

product value to 6.7% from 2018 to 2019 providing evidence of such growth in the

economic market. The increase has made the country a so-called economic

powerhouse from its history allowing economic integration factors to be unrecognized to

harm the current status of the Philippine market.

The results of economic integration for big countries can differ positively or

negatively. Large members in a constitution can gradually become inefficient from

resource trade of common local goods. Without the exception of smaller members,

there is an aphorism where the rich get richer and the poorer economies get poorer.

Though with the technological influence of integration, this ideology allows smaller

economies to receive and benefit from bigger countries. Countries such as the

Philippines is rich of natural and untapped resources allowing bigger countries to be

businesses and companies and further the economic growth and market of the nation.

In market transaction and commerce, policies and regulatory assessments are

key components for an advantageous growth in a nation. Political integration acts to

pursue strategic market compliance for beneficiaries and investors. Many may see it as

a risk that deters investment and also shifting uneven job options, but it contradicts its

effectivity with and without economic integration. According to some findings, many

relate to the political market to be contemporary with the economic trade. Both markets

deal with the financial institutions as political integration changes the level of

competition between innovation and growth. In the Philippines carries through its gross

profits and firms that can be supported by independent political entities through a

central government.

There are many responsibilities for a member nation to be part in intercontinental

relations and organizations. In meetings, summits and conferences, there may be

decisions to which nations would disagree but continue to which the decision is

favorable. This may affect third world countries not in favor of said resolutions. Not only

the governance of the nation will be affected but also its people in a way that kills local

industries competing with other international businesses and firms. This situation differs

from the current economic integrity of the Philippines. Even recognized as a third world

country, the nation has already surpassed its being; unaware of international political

procedures and policies. The country has already adapted new strategies and financial

advantages that makes political integration a positive outcome for its economic and

political growth.
 Economic and political integration may be different to economists, business

analysts, financial specialist and even bystanders. Though in many cases, it will always

be different if each market is recognized to be different in itself. Both political and

economic integration allows both ideas to be complementary and intertwined.

Standalones alone markets will always prove to provide positive and negative returns to

the governing nation such that it becomes a catalyst for economic growth itself. It lacks

the perspective of both margins can be advantageous to both. There are sayings to

which in cases of situations, joint ideologies allow for a diverse and expanded angle of

interrelation between problems revolving itself around the word “unity”. It initially states

how intentions can be harmonious with the purpose of others and would be

advantageous for both to fill the missing link in the never-ending growth of economies.

The Philippines may have been in the verge of its economic disadvantage but through

economic and political integration, it has achieved new milestones and

accomplishments to further its standing between international governances and

increase its overall development in rising independence.