I N S T R U C T I O N A L M AT E R I A L F O R E C O N O M I C D E V E LO P M E N T D E V E L O P E D B Y : P U P C S S D D E PA R T M E N T O F E C O N O M I C S

CHAPTER 8 abolish taxes on imported goods or tariffs, lift get jobs in different countries or even travel and
bank and financial market restrictions to ease the visit famous tourist spots because of the forces
TECHNOLOGY, INNOVATION & movement of capital or investment, and loosen
visa restrictions and barriers to migration to
of globalization. But in the process, it has also
homogenized cultures to the point of reducing it

GLOBALIZATION (FINANCIAL facilitate human mobility across various borders.

Of course, these processes are borne out of
into binaries (e.g. West and the rest; modern versus
traditional). Languages and indigenous practices
policy deliberation and debates among conflicting have gradually faced extinction. In the economic
CRISIS) interests and ideologies. In particular, globalization
and the accompanying processes of liberalization
side, outsourcing and offshoring brought jobs to
so-called Third World countries. But a closer look
and deregulation are spurred by capitalist agenda. shows that it has neither helped the offshoring
Main opposition comes from socialist-leaning state and the receiving one given possible bad
Learning Objectives
thinkers or those who advocate for broader labor practices, poor labor protection policies, and
• Explain the advantages and disadvantages of global interdependence;
collective ownership of wealth, more government- cheap wages. Many more are discussed when
• Define and differentiate globalization, regionalism and regionalization;
supported welfare programs, and lesser market- we come to discussing in depth the challenges of
• Determine the key events that brought about the 1997 Asian Financial Crisis and analyze its
based interventions. This will be further discussed globalization.
impact on Asian economies;
in the next two chapters.
• Discuss and critique globalization and international financial reforms.
Spreads democracy. One of the exports of
Globalization as an inevitable and irreversible force. globalization is neoliberal democracy. Societies
Many believe that globalization would continue may reap the benefits of free trade and a
A Connected World ever before, and in a way that is…. also producing to drive our global decisions and movements borderless world when democratic principles
What is globalization? For Manfred Steger, it is a a powerful backlash from those brutalized or left for a longer period. Two sides of opposition to flourish and take root— capital moves in faster,
“contested concept” as it is difficult to recognize behind by this new system.” globalization exists: anti-globalization and alter- people are free to go in and out of their territories,
whether it is a movement, a process, a condition, globalization. Anti-globalization supporters believe goods and services are sold to everyone.
system, force, or even an era or age. What is clear Globalization is often interchangeably used with that globalization only benefits the rich and those Indeed, democracy aided the entrenchment
though is the exchange and/or movement of four internationalization. The concepts are interrelated motivated to generate more profit, and as such a of globalization; but in the process, it has also
(4) freedoms: goods or products, services, capital and different. Leslie Sklair provides a good complete systemic change is necessary as the ills inadvertently taken advantage of human liberties
or investment, and persons. The United Nations distinction between the two: internationalization outweigh the benefits secured from globalization. to push portions of the population into the brink of
Center for Trade and Development (UNCTAD) refers to “processes and systems that pertain to Alter-globalization advocates, on the other hand, poverty and inequality. Companies were given free
associates it with “closer integration among relationships between nation-states.” Globalization, believe that we can move forward with changing rein to hire people on cheap labor, all in the name
national economies through trade and financial on the other hand, focuses on “global social aspects of globalization towards a more humane, of free trade and lower pricing. People can eat
flows as well as cross-border migration of people.” relations” or interactions between and among environment-friendly, and grassroots-driven one. whatever they want, throwing away food without
international and/or transnational entities. The groups that spur both movements are broadly regard for conservation and sustainability. Social
One may ask then when did it start; is it a new comprised— a number of them pursue agendas media companies allow even the most hurtful and
concept or one that has transcended or evolved The relations among member-countries of that focus on nationalist-populism, new localisms, degrading messages to stay on in the name of free
through the ages based on advances of technology the Association of Southeast Asian Nations and other ideas with inclinations on feminism, speech. The very same principles of democracy
and human interaction? Benedict Anderson (ASEAN) and their trade agreements are aspects international-populism, and global justice. are used to undermine the freedoms people should
explains that the early stirrings of globalization of internationalization, but its relations with the They also espouse critiques of capitalism and enjoy; a time to reflect on these paradoxes is
began in the last two decades of the 19th century European Union (EU) are part of globalization. neoliberalism. necessary.
through the invention of the telegraph, the Timor-Leste’s bid to become a member of ASEAN
launch of the Universal Postal Union, wide use of pertains to the benefits of internationalization while No one is in charge, so everyone is in charge. Requires a war on terror. Corollary to democracy
steamships and railways that linked remote areas the United Kingdom’s recent exit (BREXIT) from the This is the paradox of globalization— the belief and globalization is the war on terror. The
to ports and major cities. Today, the continued EU is a failure of internationalization. Meanwhile, that no one is in charge, when in fact everyone September 11 (9/11) attacks in the United
entrenchment of globalization is spurred by the discussions among ASEAN and EU members seems to be in charge. It banks on the principles States launched a more concerted effort against
internet, cheap and fast travels through planes and with the United Nations (UN) on education and of participative democracy and equality among the terrorism fueled by religious fundamentalism.
other transportation networks, as well as other public health needs, accession to treaties and people. Critics however point that these are just Initial counter-terrorism efforts were supported,
forms of advanced technology. The world has agreements, and continued economic and cultural statements not backed by actual practice. In reality, but continued incursions in majority of states in
become metaphorically “flat.” exchanges constitute a big aspect of globalization. the people are powerless against big corporations West Asia (i.e. Middle East) prompted critiques on
and market forces that dictate how wealth will be the necessity of wars and invasions led by the US
Thomas Friedman then, offers a balanced Ideologies of Globalization generated and move across the globe. government. Now, we see more problems created:
perspective and settles the contestability of Manfred Steger consolidated a significant a new terrorist group arose; more countries
globalization as a concept. For him it is both an volume of literature to identify six (6) important Beneficial to everyone in the long run. The benefits find themselves tackling civil wars complicated
era and a system that “is not static, but a dynamic foundations or ideologies that serve as pillars for of globalization, both material and abstract, by ethno-religious issues and socio-economic
ongoing process: globalization involves the globalization. They are as follows: should outweigh the costs incurred today. To be problems; fundamentalist ideas have taken hold
inexorable integration of markets, nation-states, sure, globalization brought about peace and good and more families are displaced, forced to leave
and technologies to a degree never witnessed Liberalization and integration of markets. Seamless relations among nations. It also facilitated better their homes devastated by wars.
before— in a way that is enabling individuals, movement of the aforementioned four freedoms understanding among varying cultures because
corporations, and nation-states to reach around are facilitated by the economic processes of of exchanges, communication, and easier flow of These six (6) ideologies help us better understand
the world farther, faster, deeper, and cheaper than liberalization and deregulation. Nation-states information. We know what is happening in every the nuances of globalization. It does not only
part of the globe because of the internet. We can comprise economic activities and transactions
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among states, transnational companies, and flow of wealth and capital are primary drivers of principle, for the less developed countries to more
other international entities. It also encompasses global governance and the requisite forces of effectively absorb the knowledge that is one of the
Structures of Globalization globalization. foundations of the wealth of developed countries
a broad aspect of our political, socio-cultural, and The matrix below summarizes the different
environmental lives. (601).”
structures of globalization:
Citizens are consumers. Meanwhile, goods,
services, information and even labor become The logic of globalization and international trade’s
STRUCTURES DESCRIPTION
commodities moving across the broad network benefit to economies can be traced as far back
Global financial Global financial institutions are considered global banks—institutions that lend money global stakeholders. For instance, healthcare, as Adam Smith and his theory on the division of
institutions or provide grants to governments in need of financial backing for their development
education, even everyday purchases and cultural labor and specialization. For Smith, larger markets
programs. Along with terms of payment, loans, development aids and/or grants
provided by these institutions often come with conditions related to improving
undertakings are defined by rules made by global offer greater opportunities to sell our goods and
development conditions or meeting certain governance reforms. Member-states pool pharmaceutical companies and health systems, services, increase the gains from trade and division
funds to sustain these international financial institutions. These include the World universities and their exchange programs, as well of labor as more would participants enter in the
Bank (WB) or the International Bank for Reconstruction and Development (IBRD), as synchronized standards for education. economic activity, and incentivize innovation given
International Monetary Fund (IMF) – the lender of last resort. The Asian Development the potential of larger returns. David Ricardo’s
Bank (ADB) and the Asian Infrastructure and Investment Banks (AIIB) are also International trade, particularly free trade, concept of comparative advantage extends Smith’s
multilateral lending institutions. is a specific foundation for globalization discussion on specialization and division of labor.
Global businesses and Businesses and private sector networks are vital stakeholders of globalization. The and subsequently, would lead to economic Countries bank on their resource endowments as
private sector network emergence of multi (MNC) and transnational companies (TNC), as well as business development, trickling towards human and social basis for trade relations with other economies.
processes such as outsourcing, and offshoring facilitated the unbridled flow of development. For most globalization scholars and And free trade removes further barriers such as
goods, services, labor and information in various parts of the world. MNCs and TNCs advocates, international trade spurred development tariffs, quotas and import restrictions, to facilitate
capitalized on lower costs of labor and rent in various parts of Asia, Latin America and across the world. Particular attention is placed on smoother relations with partner-economies.
Africa to expand their value chains and recoup greater profits. For instance, American,
its impact on the developing world—low-income
Australian and British companies moved back-office jobs such as customer service
and administrative tasks to countries such as the Philippines and India to cheapen countries often found in Latin America, Asia, and This matrix summarizes the benefits and costs of
company costs. At first glance, these processes guaranteed employment for receiving Africa (several literatures also call them the Global international free trade, comparing perspectives
countries. But using a critical lens, one sees how local workers are exploited – long South). Todaro and Smith notes how globalization from trade optimists and trade pessimists, as
work hours, underpayment and poor working environments are just examples. and trade facilitates development, at least in discussed in Todaro and Smith:
Global and regional These include socio-political associations of nation-states as represented by their theory: “globalization makes it possible, at least in
governments and heads of governments and/or heads of states. Supranational governments and
justice systems international arbitration courts are also included in this category. The primary aim
is to harmonize rules of government, promote the tenets of liberal democracy, and
advance human rights and justice across the globe. Examples include the United ISSUES ON TRADE TRADE OPTIMISTS TRADE PESSIMISTS
Nations (UN), European Union (EU); North Atlantic Treaty Organization (NATO), and
the Association of Southeast Asian Nations (ASEAN). International courts include Trade as an engine of Optimists believe in the significance Pessimists concede with the increase in
the International Criminal Court (ICC) and International Court of Justice (ICJ); while growth of trade in expanding the market for choices and subsequent consumption.
agencies associated with the UN such as UN Development Program (UNDP), UN choices, which then aid increasing Their contention lies with the fact that
Commission on Trade and Development (UNCTAD), and the UNESCO are also part of consumption, and allowing access to factors of production are not as fixed as
this aggrupation. markets otherwise closed or difficult to optimists would claim, therefore prices and
tap if countries are isolated from each the reality of the world economy rapidly
Trade agreements and Another layer that deepened globalization ties include various bilateral and multilateral other. changes. How does this affect trade being
associations trade agreements and economic associations. These facilitate free trade—tariffs an engine of growth? Growth would not
or international taxes are removed from goods and services to ensure smoother happen as often as optimists foresee, and
transactions across the globe. These institutions also work hand-in-hand with global its benefits are not similarly received by
governments to harmonize trade policies, economic rules, and other contingent labor developed and developing countries. Often,
standards.Examples include the World Trade Organization (WTO; this came from the developing countries get the shorter end of
1947 General Agreement on Trade and Tariffs or GATT), the Asia-Pacific Economic the proverbial growth stick.
Cooperation (APEC), and the North Atlantic Free Trade Association (NAFTA).
Trade’s impact on As trade banks on comparative As noted in the previous discussion, trade
International civil International CSOs and NGOs serve as coalitions of local advocacy groups and distribution of income advantages and specialization, has benefits, but unevenly distributed
society organizations act as watchdogs at the international level. On one hand, they work with global and wealth within countries have access to the best goods between and among developed and
and non-government governments in implementing humane and just policies and programs; on the other and among countries; and innovative services offered by each developing economies. Historical
organizations hand, they demand accountability from the exploitative actions done by governments, distribution of gains and participating economy. Whatever one backgrounds and colonialism adversely
businesses, and other global institutions. Examples include Greenpeace, Amnesty losses of trade country loses; they gain when they affected resource endowments and trade
International, and Reporters Without Borders. trade. Remember that the basis for routes; and technological gaps play a role
trading lies on varieties of resource in delaying economic catch-up. Developing
market integration, vast global value chains, and endowments, technological advances, countries or the Global South are inherently
the ubiquity of multi- and transnational companies political and economic institutions, scale less powerful in trade policy deliberations
The World is Flat? economies, preferences, and capacities and other forms of negotiation compared
Globalization is intricately tied with trade and in major cities across the world. Advanced
technology, big data, and seamless communication for growth and development. to developed countries or the Global North.
economic interactions between and among nation-
states. This led Thomas Friedman to famously also facilitated a “flatter world”. What would once
claim that the world is increasingly becoming flat. take weeks, months or years to process, now
He, alongside other advocates of globalization consumes a fraction of a minute or even real-
and free trade, attribute this to various forms of time. In all these, we have to also note that the
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Conditions under which Countries, developed or developing, Free trade is better in theory, but difficult to economic exchanges would certainly not be a was streamed many times in song listening
trade can help a nation should lessen or totally remove barriers to obtain in practice given present wealth good option. The better issue to look into is striking platforms and Youtube; “Parasite” received global
achieve its development to trade (i.e. financial and non-financial) inequalities among nations. Some scholars a balance between selling for the domestic market acclaim; and adobo has been cooked using various
objectives to ensure maximum gains on trade. We call for fair trade, while others believe in and exporting. Whatever one country produces techniques and ingredients broadening the reach
call this free trade. putting back trade restrictions such as
should not be to the detriment or deprivation of of this favorite Filipino dish.
tariffs and import quotas to protect certain
markets. For some others, free trade would its own people. One also has to set policies as
only be free for products that come from to broad export engagements versus strategic Scientific and technological advancements are
the developing economies; but developed partnerships in targeted sectors. accomplished through international cooperation.
countries may impose new and insipid We’re able to discover new medicines and develop
forms of protectionism (e.g. agriculture in Finally, trade policies should not be an absolute vaccines because of coordination among scientists
North America) to the detriment of the rest choice between an outward looking strategy or and pharmaceutical firms across the globe. We
of the world. an inward looking one. These strategies are not also advanced environmental protection and
Extent of trade The extent of trade should be freely Countries should be cautious on the mutually exclusive. In most equitably developed climate change advocacies because we listened
engagement among flowing for all types of commodities: extent of trade engagements, as well as countries, they employed a mix of outward and and observed what’s happening in each and every
countries, scope of goods and services, information, and on the scope of products and services inward looking trade strategies. country. People’s awareness on the impact of
products and services even labor. Developing countries should opened to the world market. For most individual action against the anthropogenic climate
which developing and embrace free trade openly, as developed scholars, a certain form of protectionism
Globalization’s Discontents change have been highlighted in the annual Earth
developed countries can countries attained their status because for infant industries should be done before
trade of their free trade policies and other fully competing in the world economy. Globalization has its advantages and Hour; or removing stigma on People Living with
structural adjustments aimed at Government regulation is necessary disadvantages. It remains a powerful force or HIV (PLHIV) during World AIDS Day. We would
liberalization, privatization, and other in shepherding private sector towards process that underpins much of our movements never realize the adverse impact of systemic
free market advocacies. In essence, national goals for development. Further, and transactions today. Before we unpack what racism had we not participated in the Black Lives
government intervention is small, more governments may also work towards Joseph Stiglitz calls globalization’s discontents, let Matter campaigns, or the importance of protecting
facilitative and more supportive to more nationalist economic policies, those us acknowledge the benefits it has advanced for the rights of women and listening to their stories in
private sector endeavors. Any excess that prioritize self-sufficiency and local #MeToo and #HijaAko movements. Globalization
human and socio-economic development.
government regulation would be development before engaging in world and its antecedent instrumentalities facilitated all
detrimental to free trade, and therefore trade. Some cases, however, were able
As already discussed, it has emphasized the these.
undermines its benefits. to mix levels of protectionism with free
trade that resulted to better economic benefits of free trade. For most countries, access
development. to otherwise difficult to tap markets is a positive But then again, globalization is still a zero-sum
externality of reduced or borderless trade. It game: one side of the globe wins, while other
Trade strategy to utilize, An outward-looking policy is prioritized if An inward-looking policy is prioritized given
i.e. outward or inward- we are to maximize the benefits of free the unequal benefits of free trade. reduced the price of goods and broadened players lose. While it was touted to have eased the
looking strategy trade. consumer choices. On the side of producers, it has relations across the world, it has also inadvertently
also helped them reach larger markets, motivated widened the gap between “the haves and have-
Given the pros and cons of free trade and its economic assets and power; depth of influence of innovation through competition, lessened costs of nots.” Inequalities are evidently stark. We should
possible impact on economic development, large multinational corporations (MNCs); and the production and increased revenues and profits. We note that this is not only just among countries,
balanced responses to the trade issues are in ability of governments to control or manage the also benefitted from the improved technologies but more importantly, the gaps are increasingly
order. activities of private enterprises and patterns of today—the internet is a significant example as it observed within each country today. Shared
demands. If political and economic institutions, as has eased communications, transactions, and prosperity and increased wealth have failed to
Trade remains an important stimulus and element well as these structural conditions, gear towards various forms of interpersonal relations. reach those in need. San Juan (2018) notes the
for economic growth. Countries in isolation broader distribution of resources and benefits, then following data in his book:
stand to forgo the benefits of exchange, larger development is equitable. If these same elements Globalization also opened doors for increased
markets, and access to foreign markets vital benefit a certain few, then one has to revisit trade mobility among people—both for labor and leisurely “As of 2013, the number of poor citizens (people
to improve local human and capital resources. policies and incentives as it contributes to socio- needs. People were able to work in other countries who live in USD 1.90 a day) worldwide reached 767
Foreign exchange earnings have also proven to economic inequalities. given eased labor standards; while those with million. In the Human Development Index (HDI) for
augment scarce physical and fiscal resources for larger disposable incomes were able to travel 2015—UN’s ranking of countries based on levels
most developed and developing countries. As for One of the main conditions where trade can help and see the rest of the world. Students were of holistic human development that encompasses
development, there is however little impact. One a developing country is their capability to extract also given larger opportunities to learn overseas data on health, education and income—Norway is
has to examine the nature of the export sector and or maintain favorable trade concessions from as universities accommodated migrants and ranked first with an almost perfect score of 0.949
how export and foreign exchange earnings are developed nations. How well can developing encouraged a multi-cultural approach to learning. (1.0 is the highest possible score), compared
distributed across the economy to understand the countries ensure that their economic needs are not In the process of increased human mobility and with the last among 188 countries, the Central
depth of trade’s development impact. just heard and considered but effectively reflected with the able aid of seamless communication, we African Republic, with a measly score of 0.352. The
in international trade agreements and policies? were able to understand the cultures and traditions Philippines is at rank 116 with a score of 0.682.
Corollary to the first point, trade is beneficial Regional aggrupation and trade blocs can be of our fellow human beings. This enhanced our (35).”
but may also facilitate unequal distribution of effective strategies to harness stronger influences relations with people with ethnicities different
its hard-earned benefits both for developed and in trade negotiations (e.g. ASEAN, EU, NAFTA, from ours—we tried different cuisines, listened to One also has to look into the environmental
developing economies. Todaro and Smith notes BRICS). various songs, watched films and television shows, and sustainability concerns that are linked with
that these four elements are crucial in judging and even learned other languages. K-pop was no globalization and commercial pursuits. For
whether the distribution is equitable: existence Fixed figures for the amount to trade cannot be longer on the domains of Koreans but has been instance, MNCs that produce smart phones extract
of increasing returns; extent of distribution of made, and totally closing out your country borders shared across the globe. Luis Fonsi’s “Despacito” essential minerals such as copper, silver, and
nickel from virgin and/or protected forests and
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mountains using either super cheap labor or illegal regular meals. The other side of the globe or even flight. As economies in the region are connected, tiger economies eagerly welcomed new investors
child employment. Women in Bangladesh and rural just a few blocks away from areas eating “pagpag” neighboring countries also began to experience the and foreign currencies. Some of them succumbed
areas in China produce the clothes bought cheaply are posh restaurants throwing away food that has crippling effect of the crisis. Thailand, alongside to pressure coming from international financial
in fast fashion retail stores—at the expense of their not been sold or stocked for a day; buffets abound South Korea and Indonesia were strongly institutions to undertake structural adjustments—
health, incomes, and labor freedoms. People in across the metro and oversized combo meals fill affected, while Hong Kong, the Philippines, Laos easing banking restrictions, deregulating certain
Haiti eat “mud cakes” just to survive hunger, while our bellies. and Malaysia were also paralyzed by the crisis. industries and privatizing some other public
children in Yemen starve to death, and several poor Singapore, Vietnam, Mainland China, Brunei, and enterprises, etc. These too, eventually crumbled
Filipino families subsist with “pagpag” or leftover The matrix summarizes all the discussions above: Malaysia also felt the economic downturn; Japan as the crisis ensued. One may also look into the
chicken salvaged from trash bins and reheated as and Taiwan less significantly. impact of deep-seated cronyism and corruption
on crippling economies—Indonesia under the
ADVANTAGES DISADVANTAGES It is also important to note from the discussions strongman Suharto is an insightful example.
Multiculturalism and multilingualism; Cultural and Linguistic hegemony of the English language and
that the political, economic, and financial Suharto finally stepped down in 1998 amid public
educational exchanges cultural hegemony institutions of each country are also key factors protests on a number of issues, chief of which is
in understanding the chain reaction to the entrenched poverty, corruption, and poor handling
Free trade; reduced costs on selling products, cheaper Third World dependence on the First World; global
prices for some consumer goods wealth and income inequality; tax injustice
crisis. A number of these economies have been of the crisis.
experiencing the East Asian Miracle through their
Migration; relatively free or less restricted movement of Racism and anti-migrant sentiment developmental states (i.e. Japan on the first wave; A number of lessons may be gleaned from this
peoples
Singapore, Hong Kong, South Korea, and Taiwan page in history as we embark on a new decade. It
Global cooperation on various initiatives (e.g. scientific, Globalization benefits are tipped in favor of First World on the second wave; Malaysia and Thailand were is also insightful as we continue to plunge deeper
technological, environmental, educational, cultural, and countries than Third World countries (e.g. technology on the third wave). Anchored on a strong export into globalization while also experiencing the pains
other commercial endeavors) transfers; control for multilateral institutions such as
economy and booming industrialization, these of the pandemic.
World Bank and International Monetary Fund; migration
benefits; education systems)
CASE STUDY 1: UNDERSTANDING AFC 1997
Making Globalization Work
A lot of paradoxes may be cited to illustrate Letting the Third World catch-up through The Asian Crisis: Causes and Cures (see table). Only as the crisis deepened were
the inequalities brought about by globalization. technology transfer, agricultural modernization, International Monetary Fund (IMF). (June 1998). the fundamental policy shortcomings and their
The main question is if we should abandon it and industrialization. Third World countries can Finance and Development, 35.2 ramifications fully revealed. Also, past successes
altogether? We still believe that the world would be catch-up with the provision of necessary support— Source: https://www.imf.org/external/pubs/ft/ may have led policymakers to deny the need for
better off cooperating than isolating each other. technology transfer from more advanced countries. fandd/1998/06/imfstaff.htm action when problems first appeared.
This time, we should make globalization work for This means strengthening the manufacturing
everyone. Certain bad and greedy practices should sector and incentivizing innovations and patents. The financial crisis that struck many Asian countries Several factors—both domestic and external—
be abandoned in favor of cooperative and equitable The Philippine government should provide in late 1997 did so with an unexpected severity. probably contributed to the dramatic deterioration in
ones. San Juan (2018) cites several reforms that larger support for agriculture instead of rice What went wrong? How can the effects of the sentiment by foreign and domestic investors:
may be advanced to make globalization work for importation; invest on manufacturing and local crisis be mitigated? And what steps can be taken to - a buildup of overheating pressures, evident in large
everyone: industries (e.g. jeep). Some see that we are late for prevent such crises from recurring in the future? external deficits and inflated property and stock
industrialization, but studies and actual country market values;
Public control of the financial system. Because experience (e.g. South Korea, Japan, Malaysia, THE EAST ASIAN countries at the center of the - the prolonged maintenance of pegged exchange
markets and banks are prone to market failures, Thailand) show that it is a necessary step for recent crisis were for years admired as some of rates, in some cases at unsustainable levels, which
it would be prudent to strengthen public control economic growth and development. the most successful emerging market economies, complicated the response of monetary policies
over financial institutions. It would also help a owing to their rapid growth and the striking gains to overheating pressures and which came to be
lot if government prioritizes providing credit to Tax reform to finance other socio-economic in their populations’ living standards. With their seen as implicit guarantees of exchange value,
Filipino entrepreneurs as ways of ensuring public reforms. More progressive taxes are necessary. We generally prudent fiscal policies and high rates of - encouraging external borrowing and leading to
investments for the country’s development. need to examine TRAIN if it is indeed progressive private saving, they were widely seen as models for excessive exposure to foreign exchange risk in both
Strengthening and promoting our cooperatives or regressive. There is noble cause, but we also many other countries. No one could have foreseen the financial and corporate sectors;
more than corporate interests would ensure have to look into income inequalities inadvertently that these countries could suddenly become - a lack of enforcement of prudential rules and
equitable distribution of wealth across the country. created by the tax reforms menu brought forward embroiled in one of the worst financial crises of the inadequate supervision of financial systems,
by our legislators. postwar period. coupled with government-directed lending practices
Democratization of the international system. The that led to a sharp deterioration in the quality of
What went wrong? Were these countries the victims banks’ loan portfolios;
United Nations General Assembly (UNGA) follows The Asian Financial Crisis
the “one country, one vote” system, which works of their own success? This certainly seems to have - problems resulting from the limited availability
To better understand the impact of globalization,
to the advantage of powerful countries, and to been part of the answer. Their very success led of data and a lack of transparency, both of which
let’s look at the financial crisis that swept East and
the detriment of smaller, less powerful ones. foreign investors to underestimate their underlying hindered market participants from taking a realistic
Southeast Asia in 1997 until the early part of 1999.
Recommendations for reform include opening up economic weaknesses. Partly because of the large- view of economic fundamentals; and
A number of factors contributed to the economic
the Security Council and removing the veto powers scale financial inflows that their economic success - problems of governance and political uncertainties,
crisis. One of the major causes began when the
of powerful countries. Should veto powers remain, encouraged, there were also increased demands which worsened the crisis of confidence, fueled the
Thai government floated their currency, the Thai
it should instead allow everyone the chance to on policies and institutions, especially those reluctance of foreign creditors to roll over short-
baht, as foreign currency to support its peg to the
veto proposals. UN has to live up to its promise to safeguarding the financial sector; and policies and term loans, and led to downward pressures on
US dollar started to run out. Investors, both foreign
ensure peace after two devastating world wars. institutions failed to keep pace with these demands currencies and stock markets.
and local panicked, leading to massive capital
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justified. This overshooting in financial markets - Fiscal policies will need to focus on reducing and encourage investors to take on greater risks
External factors also played a role, and many worsened the panic and added to difficulties in both countries’ reliance on external savings and in the belief that they will only partially suffer the
foreign investors suffered substantial losses: the corporate and financial sectors. In particular, take account of the costs of restructuring and consequences if their investments sour.
- international investors had underestimated the the domestic currency value of foreign debt rose recapitalizing banking systems. Resources will
risks as they searched for higher yields at a time sharply. While uncertainties persisted longer in need to be reallocated from unproductive public In fact, though, one of the fundamental purposes
when investment opportunities appeared less Indonesia, strengthened commitments were made expenditures to those needed to minimize the social of the IMF is to limit the economic and social costs
profitable in Europe and Japan, owing to their elsewhere to carry out adjustment reforms. costs of the crisis and strengthen social safety nets. of crises. The experience of the Great Depression
sluggish economic growth and low interest rates; taught policymakers that the damage caused by
- since several exchange rates in East Asia Appropriate strategies Prospects for recovery systemic financial crises can be devastating and
were pegged to the U.S. dollar, wide swings in The strategies needed to restore confidence and In all of the countries at the center of the financial can have a global impact. This justifies a public
the dollar/yen exchange rate contributed to the support a resumption of growth include a range turmoil, its consequences have taken the form policy role in avoiding deep and damaging crises.
buildup in the crisis through shifts in international of measures, tailored to tackle the particular of a substantial shrinkage of investment and
competitiveness that proved to be unsustainable weaknesses of each country. These strategies consumption, coupled with a rapid improvement in Nonetheless, in some instances the fact that IMF
(in particular, the appreciation of the U.S. dollar are the basic ingredients of the IMF-supported trade positions. For 19 98 as a whole, the aggregate financing is available could increase the incentive
from mid-1995, especially against the yen, and the programs in Indonesia, Korea, and Thailand. current account of Indonesia, Korea, Malaysia, for risk-taking by both potential borrowers and
associated losses of competitiveness in countries - Monetary policy must be firm enough to resist the Philippines, and Thailand is forecast to be $20 lenders. Policymakers could pursue more risky
with dollar-pegged currencies, contributed to their excessive currency depreciation, with its damaging billion in surplus, compared with deficits of $27 policies, knowing that the IMF would be there if
export slowdowns in 1996–97 and wider external consequences not only for domestic inflation but billion in 1997 and $54 billion in 1996. This forced their policies failed. Likewise, lenders could take
imbalances) (see chart); also for the balance sheets of domestic financial improvement in the external situation will help to excessive risks if they believe that an IMF loan
- international investors—mainly commercial and institutions and nonfinancial enterprises with large offset declines in domestic demand, but output is would enable a government or its banks to pay their
investment banks—may, in some cases, have foreign currency exposures. As fundamental policy expected to stagnate in Indonesia and Korea, and to debts if the country fell into financial trouble.
contributed, along with domestic investors and weaknesses are addressed and confidence is fall slightly in Thailand.
residents seeking to hedge their foreign currency restored, interest rates can be allowed to return to In its policy advice, the IMF seeks to ensure that
exposures, to the downward pressure on currencies. more normal levels. There have already been some recoveries of the parties to private transactions bear the costs
- Financial sector weaknesses are at the root of the exchange rates and stock markets, and as the of their actions. Policy advice on banking sector
To contain the economic damage caused by the Asian crisis and require particularly urgent attention. needed policies are carried out and external restructuring typically includes the closing of
crisis, the affected countries introduced corrective In many cases, weak but viable financial institutions positions improve, confidence should recover insolvent institutions and equity write-downs
measures. In the latter part of 1997 and early must be restructured and recapitalized. Those that further during 1998. This will pave the way for a in institutions that are restructured. However,
1998, the IMF provided $36 billion to support are insolvent need to be closed or absorbed by moderate rebound of growth in 1999 and solid depositors may need to be protected up to certain
reform programs in the three worst-hit countries— stronger institutions. recovery by 2000. The experiences of Argentina and limits, or safeguarded more broadly, if there is
Indonesia, Korea, and Thailand. The IMF gave this - Governance must be improved in the public Mexico following the “tequila crisis” of 1994–95, as a risk of a general run on a banking system. It
financial support as part of international support and corporate sectors, and transparency and well as the experiences of many other countries may therefore be difficult to avoid moral hazard
packages totaling almost $100 billion. In these accountability strengthened. Many recent difficulties in similar situations, demonstrate that when altogether with respect to banks’ foreign creditors,
three countries, unfortunately, the authorities’ initial spring from extensive government intervention policymakers are prepared to address the root although there may be scope for arrangements in
hesitation in introducing reforms and in taking other in the economy, as well as widespread political causes of a financial crisis, economic recovery is which these creditors roll over short-term loans at
measures to restore confidence led to a worsening patronage, nepotism, and lax accounting practices. likely to begin a year or so after a crisis peaks. In terms they would normally not choose to accept.
of the crisis by causing declines in currency and In order for confidence to be restored, political the East Asian case, the severity and importance of
stock markets that were greater than a reasonable leaders must send unambiguous signals that such the crisis in the financial sector and other structural Given the significant costs of financial crises for
assessment of economic fundamentals might have abuses will no longer be tolerated. weaknesses in the countries concerned mean that borrowers and lenders alike, it seems highly unlikely
necessary corrective measures are likely to take that imprudent lending and investment decisions
longer to implement than in crises that can be are primarily the result of moral hazard created by
resolved mainly by macroeconomic adjustment. At the involvement of the IMF and other international
the same time, the deep declines that have occurred financial bodies. Crises also reflect misjudgments or
in currency and financial markets suggest there is “irrational exuberance” that lead investors and banks
scope for relatively sharp rebounds as confidence to underestimate the risks in emerging markets
recovers. (and then to overreact when sentiment begins to
change). This underscores the need to ensure that
Moral hazard investment decisions are supported by timely and
Some commentators have argued that the accurate information to enable investors, lenders,
international community’s assistance to countries and borrowers to be fully aware of a country’s
suffering from financial crises will only encourage situation and vulnerabilities.
more reckless behavior by borrowers, lenders,
and investors—a phenomenon that is known Forestalling future crises
as “moral hazard.” Such moral hazard exists The East Asian crisis of 1997–98 and the Mexican
when the provision of insurance against a risk crisis of 1994–95 are the latest of a large number
encourages behavior that makes the risk more of crises in the past two decades. These crises have
likely to occur. In the case of IMF lending, concern been costly for the countries directly affected—both
about moral hazard stems from a perception that those where the crises began and those that might
such assistance might weaken policy discipline have escaped them but for spillover and contagion
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CASE STUDY 2: TECHNOLOGY & INNOVATION,

effects. Obviously, in view of these costs, the
foremost concern for policymakers and financial
many countries well and have helped to support
their stabilization efforts. When countries adopt
BOON OR BANE?
markets is how to identify the causes of crises and a pegged or fixed-rate arrangement, a number
prevent them. of preconditions must be met. For example, the
anchor currency and the rate at which the peg is set Towards the end of the 20th century, advanced computing technology and internet were born. The
It is, of course, impossible to predict crises reliably. have to be appropriate and policies must be attuned decade of 90s would be remembered as the transition from analog to digital. The role of technology
Further, for crises arising from pure contagion to maintaining the rate. For some economies, the in our lives opens an endless debate on the present and the future: to what extent should we allow our
effects, early warning signals may not be available balance of costs and benefits seems to be shifting lives to be digitalized? How does it affect our political, social and economic decisions? How do we best
because these crises arise from unpredictable in favor of greater exchange rate flexibility, partly use it for common good? Or in the name of freedom, should we just allow any kind of use for it? Evgeny
market reactions. It is feasible, however, to identify in order to avoid the risk that a fixed exchange rate Morozov offers a sober analysis of technology and innovation, and why our inconsistencies remain to be
the kinds of weaknesses that typically make might lead to excessive foreign currency exposure. essential aspects of human evolution rather than problems that should be outrightly solved by algorithm
economies vulnerable to financial crises, whether or The decision to exit a fixed currency arrangement and big tech.
not a crisis does in fact materialize. is difficult, however, and ideally should be taken in a
period of calm.
Analysis suggests that the chances of a currency The Perils of Perfection train trips perpetually fun-filled. With the help of an
By Evgeny Morozov iPhone, a projector, a GPS module and Microsoft’s
or banking crisis are increased when the economy All countries benefit from access to global
March 2, 2013 Kinect motion sensor, their contrivance allows
is overheated: inflation is high, the real exchange capital markets and from the improvement in
Source: The New York Times (https://www.nytimes. riders to add new objects to what they see “outside,”
rate has appreciated, the current account deficit resource allocation associated with market-based
com/2013/03/03/opinion/sunday/the-perils-of- thus enlivening the bleak landscape in their train
has widened, domestic credit has been growing competition for financing. Among these benefits is
perfection.html) windows. This could be a big hit in North Korea —
rapidly, and asset prices have become inflated. An the competition in domestic financial sectors that
and not just on trains.
analysis further indicates that real appreciation of the entry of foreign firms allows. At the same time,
the domestic currency, an excessive expansion there are important preconditions for an orderly “WHEN your heart stops beating, you’ll keep
tweeting” is the reassuring slogan greeting visitors Or, if you tend to forget things, Silicon Valley wants
of domestic credit, and a rapidly rising ratio of liberalization of capital movements. These include,
at the Web site for LivesOn, a soon-to-launch to give you an app to remember everything. If you
broad money to international reserves are signals above all else, a robust financial system supported
service that promises to tweet on your behalf even occasionally prevaricate in order to meet your
of vulnerability to pressures in currency markets. by effective regulation and supervision of financial
after you die. By analyzing your earlier tweets, the clashing obligations as a parent, friend or colleague,
Equity price declines and deteriorations in the terms institutions. During the transition to an open capital
service would learn “about your likes, tastes, syntax” another app might spot inconsistencies in your
of trade can also signal vulnerability to a crisis, as account regime with a liberalized domestic financial
and add a personal touch to all those automatically behavior and inform your interlocutors if you are
can a rise in world interest rates. Indeed, a number sector, market-based instruments—such as reserve
composed scribblings from the world beyond. telling the truth. If you experience discomfort
of these variables indicated the emergence of requirements on foreign currency deposits and
because you encounter people and things that you
vulnerabilities in the Asian countries most affected short-term borrowing—may help to moderate
LivesOn may yet prove to be a parody, or it may do not like, another app or gadget might spare you
by the recent crisis. Indicators of vulnerability do financial flows. Prudential limits on foreign currency
fizzle for any number of reasons, but as an idea it the pain by rendering them invisible.
give false signals, however, and they cannot predict exposure in the financial system are also essential.
crises. The liberalization of domestic financial systems highlights the dominant ideology of Silicon Valley
today: what could be disrupted should be disrupted Sunny, smooth, clean: with Silicon Valley at the
should precede—or at least accompany—the
— even death. helm, our life will become one long California
A key task for future policymakers is to identify opening up to foreign investors, since this will
highway.
and address vulnerability before crises erupt. promote the development of domestic capital
While it may be impossible to detect and correctly markets. Such a step would reduce the risk that Barriers and constraints — anything that imposes
artificial limits on the human condition — are being LAST month Randi Zuckerberg, Facebook’s former
interpret warning signals for all types of crises early capital inflows would become a substitute for
destroyed with particular gusto. Superhuman, marketing director, enthused about a trendy app to
enough, preemptive actions have meant that many the mobilization and effective intermediation of
another mysterious start-up that could enliven any “crowdsource absolutely every decision in your life.”
potentially serious crises have been avoided in the domestic financial resources.
comedy show, promises to offer, as its co-founder Called Seesaw, the app lets you run instant polls of
past. In some cases, countries may need to adapt
recently put it, an unspecified service that “helps your friends and ask for advice on anything: what
their exchange rate regime. Such mechanisms as This article is drawn from the IMF’s World
people be superhuman.” Well, at least they had the wedding dress to buy, what latte drink to order and
currency pegs and currency unions have served Economic Outlook, May 1998 (Washington).
decency not to call it The Übermensch. soon, perhaps, what political candidate to support.

Recent debates about Twitter revolutions or the Seesaw offers an interesting twist on how we
Internet’s impact on cognition have mostly glossed think about feedback and failure. It used to be
over the fact that Silicon Valley’s technophilic gurus that we bought things to impress our friends, fully
and futurists have embarked on a quest to develop aware that they might not like our purchases.
the ultimate patch to the nasty bugs of humanity. If Now this logic is inverted: if something impresses
they have their way, no individual foibles would go our friends, we buy it. The risks of rejection have
unpunished — ideally, technology would even make been minimized; we know well in advance how
such foibles obsolete. many Facebook “likes” our every decision would
accumulate.
Even boredom seems to be in its last throes:
designers in Japan have found a way to make our Jean-Paul Sartre, the existentialist philosopher who
celebrated the anguish of decision as a hallmark
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of responsibility, has no place in Silicon Valley. sticks to an algorithm. For Kolakowski, absolute
Whatever their contribution to our maturity as consistency is identical to fanaticism. An episode (“The Entire History of
You”) in futurist anthology, Black
human beings, decisions also bring out pain and,
Mirror, shows people embedded with
faced with a choice between maturity and pain- “The breed of the hesitant and the weak ...of those “grain” technology which records
minimization, Silicon Valley has chosen the latter — ...who believe in telling the truth but rather than tell their audiovisual senses and allows
perhaps as a result of yet another instant poll. a distinguished painter that his paintings are daubs them to rewatch their memories. The
will praise him politely,” he wrote, “this breed of the protagonist was forced to reconsider
The only exception to the pain-minimization rule inconsistent is still one of the main hopes for the his relationship after scrutinizing
is when pain — or at least discomfort — must be continued survival of the human race.” If the goal his own memories. (Source: https://
induced to ensure that we behave honestly and of being confronted with one’s own inconsistency en.wikipedia.org/wiki/The_Entire_
consistently. is to make us more consistent, then there is little to History_of_You). The anthology series
offers good starting points to discuss
celebrate here.
the progress and perils of big tech.
Take Google Glass, the company’s overhyped
“smart glasses,” which can automatically snap But smart glasses could do so much more! Why not
photos of everything we see and store them for edit out disturbing sights that haunt us on the way to us based on its inherent merits — of those we inside. After all, saving the world might be a price
posterity. To some, this can finally solve the problem to work? Last year the futurist Ayesha Khanna even hear very little — but, rather, on the demerits of worth paying for destroying everyone’s privacy,
of forgetting, a longtime ambition of many geeks, described smart contact lenses that could make the existing system, be it partisanship or sleaze. while a larger-than-life mission might convince
who have also been developing stamp-size cameras homeless people disappear from view, “enhancing Yes, the current system teems with imperfections, young and idealistic employees that they are not
that can be worn on the lapel of a jacket and snap a our basic sense” and, undoubtedly, making our lives but imperfection might be the price to pay for a wasting their lives tricking gullible consumers to
picture — at set intervals of time — of things around so much more enjoyable. In a way, this does solve half-functioning democracy. There is, after all, little click on ads for pointless products. Silicon Valley
us. the problem of homelessness — unless, of course, partisanship in North Korea. Learning to appreciate and Wall Street are competing for the same talent
you happen to be a homeless person. In that case, the many imperfections of our institutions and pool, and by claiming to solve the world’s problems,
This idea of obliterating forgetting was laid out by Silicon Valley would hand you a pair of overpriced of our own selves, at a time when the means to technology companies can offer what Wall Street
the visionary Microsoft computer scientist Gordon glasses that would make the streets feel like home. fix them are so numerous and glitzy, is one of the cannot: a sense of social mission.
Bell in his highly provocative 2009 book, written To quote an ad for Samsung’s fancy TV sets, toughest tasks facing us today.
with Jim Gemmell, “Total Recall: How the E-Memory “Reality. What a letdown.” The ideology of solutionism is thus essential to
Revolution Will Change Everything.” Solutionists err by assuming, rather than helping Silicon Valley maintain its image. The
All these efforts to ease the torments of existence investigating, the problems they set out to tackle. technology press — along with the meme-hustlers
Mr. Bell promised that new recording technologies might sound like paradise to Silicon Valley. But Given Silicon Valley’s digital hammers, all problems at the TED conference — are only happy to play up
would provide us with “enhanced self-insight, the for the rest of us, they will be hell. They are driven start looking like nails, and all solutions like apps. any solutionist undertakings. “Africa? There’s an app
ability to relive one’s own life story in Proustian by a pervasive and dangerous ideology that I for that,” reads a real (!) headline on the Web site of
detail, the freedom to memorize less and think call “solutionism”: an intellectual pathology that SUCH predisposition makes it harder to notice the British edition of Wired. Could someone lend
creatively more.” (Alas, “Proustian” is an inapt recognizes problems as problems based on just that not all problems are problems, and that those that app to the World Bank, please?
adjective: the writer actually opposed what he called one criterion: whether they are “solvable” with a nice problems that do prove genuine might require long
a “simple cinematographic vision,” which he feared and clean technological solution at our disposal. and protracted institutional responses, not just Shockingly, saving the world usually involves using
treated memory as nothing but the accumulation Thus, forgetting and inconsistency become quick technological fixes produced at “hackathons” Silicon Valley’s own services. As Mr. Zuckerberg
of facts, rather than a complex interplay of sensory “problems” simply because we have the tools to get or viral videos to belatedly shame Ugandan warlords put it in 2009, “the world will be better if you share
experiences and storytelling.) rid of them — and not because we’ve weighed all the into submission. more.” Why doubt his sincerity on this one?
philosophical pros and cons.
For Mr. Bell, these always-on recording devices Silicon Valley, oddly, likes to wear its “solutionism” on Whenever technology companies complain that
can make us aware of our own faults, of our Solutionists do not limit themselves to fixing the its sleeve. Its most successful companies fashion our broken world must be fixed, our initial impulse
inconsistencies, of the many lies we tell ourselves problems of individuals; they are as keen to fix the themselves as digital equivalents of Greenpeace should be to ask: how do we know our world is
and others. “Successful people don’t shy away problems of institutions. Civic-minded start-ups like and Human Rights Watch, not Wal-Mart or Exxon broken in exactly the same way that Silicon Valley
from the honest record,” he wrote. “Imagine being Ruck.us, which helps people create and join political Mobil. “In the future,” says Eric Schmidt, Google’s claims it is? What if the engineers are wrong and
confronted with the actual amount of time you movements, seek to bypass the conventional executive chairman, “people will spend less time frustration, inconsistency, forgetting, perhaps even
spend with your daughter rather than your rosy party system and allow individuals to practice trying to get technology to work ... If we get this partisanship, are the very features that allow us to
accounting of it. Or having your eyes opened to how politics without any mediation by institutions, on right, I believe we can fix all the world’s problems.” morph into the complex social actors that we are?
truly abrasive you were in a conversation.” Doctor the assumption that the only reason we needed
Freud, meet the iFreud! representative democracy in the past was because Facebook’s Mark Zuckerberg concurs: “There are a “I wish it would dawn upon engineers that, in order
the communication costs were too high. Now lot of really big issues for the world that need to be to be an engineer, it is not enough to be an engineer,”
This sounds nice in theory, but in the world that that digital technologies have lowered the costs solved and, as a company, what we are trying to do wrote the Spanish philosopher José Ortega y
we actually inhabit, Mr. Bell’s quest for consistency of participation, political parties can go the way of is to build an infrastructure on top of which to solve Gasset in 1939. Given the cultural and political
borders on the tyrannical. In his brilliant essay “In the dodo and be replaced, ad-hoc style, by online some of these problems.” As he noted in Facebook’s relevance of Silicon Valley — from education to
Praise of Inconsistency,” published in Dissent in groups of concerned citizens. original letter to potential investors, “We don’t wake publishing and from music to transportation — this
1964, the Polish philosopher Leszek Kolakowski up in the morning with the primary goal of making advice is particularly worth heeding. Just ask your
argued that, given that we are regularly confronted It’s hard to defend America’s current political money.” friends on Seesaw.
with equally valid choices where painful ethical system, but it’s even harder to rally behind the
reflection is in order, being inconsistent is the only solutionist project for one simple reason: the Such digital humanitarianism aims to generate
way to avoid becoming a doctrinaire ideologue who proposed Internet-powered “solution” is not sold good will on the outside and boost morale on the
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Concluding Notes
Indeed, globalization is a powerful force. The discontents of globalization are equally important to
NOTES
address than just focusing on its positive side. If we are to fully harness the value of an interconnected
world, then we must be ready to reform our systems and strengthen our institutions towards a more
equitable, fair, and humane treatment of our fellow human beings and our environment. Amid a pandemic
that takes the lives of many more people every day and forces us to rethink the relationships we forged
and the values we hold dear, let us take to heart that lives and human dignity are way more valuable than
just the profits we rake in.

STUDENT EXERCISE / ASSESSMENT

Exercise 1: Writing A Position Paper
Divide the class into 11 groups, with each group representing a country from Southeast Asia (including
Timor Leste). Consider yourself an expert on a certain field (e.g. science and technology, governance,
economics, business, arts and culture, engineering, etc.). Prepare a brief discussion with an argument or
position on the effects of ASEAN integration on your country and field of expertise based on the following
themes:
• Challenges of global governance in the 21st century, and;
• Relevance and roles of the state amid globalization.

Exercise 2: Learning from the Asian Financial Crisis

Read the IMF discussion about the 1997 AFC. Compare the insights provided in the IMF article with
these two other write-ups: “Ten Years On” from The Economist (source: https://www.economist.com/
news/2007/07/04/ten-years-on) and Roy Mijares’ “Philippine Resiliency to the Asian Financial Crisis.”
Answer the following questions and write a reflection essay about it.
• What are the common insights present across the three articles? How about differing views or
perspectives on the Asian Financial Crisis?
• Each article has been written by different institutions with various ideologies or perspectives
towards globalization and economic development (i.e. IMF supports globalization, The Economist is
more conservative, Roy Mijares is a Filipino scholar based in the Japan when he wrote the article).
How do these backgrounds influence their analysis as to the context of the crisis, possible ways to
move forward, and policy recommendations?
• Given these perspectives, how should we approach financial difficulties, economic slowdowns
and crisis as a global community? How about as a region and as an individual country?

REFERENCES USED FOR THIS PART

San Juan, D.M.M. (2018). Journeys Through Our Contemporary World. Vibal Group: Quezon City,
Philippines.

Todaro, M. P., & Smith, S. (2015). Economic Development (12th ed.). Pearson: New York, United States.

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