When the Philippines acceded to the World Trade Organization (WTO) in 1995, the country demonstrated its determination to face the challenges of globalization.Recognizing that globalization is the buzzword of the 21st century and inevitably affects the growth and governance of many nation states, the Philippines bravely entered the WTO to prepare itself for global competitiveness and reap the benefits that globalization may bring.Despite its great optimism on joining the WTO, the Philippines is still lagging behind its Southeast Asian neighbors in terms of economic performance. Whereas Philippine economic growth was second only to Japan’s in the 1960s, the Philippines at present is viewed as one of the sick men of Asia.This chapter argues that the difficulties encountered by the Philippines in meeting the challenges of globalization stem from the nature of the Philippine state. The Philippines entered the global economic arena with its domestic political economy unprepared. The Philippine state has failed to create the kind of fertile socioeconomic environment that would have prepared the country for global competition.

Author: Rommel C. Banlaoi