Lesson 3. INSTITUTIONS SUPPORTING GLOBALIZATIONS.pdf

Institutions in government that supports globalization

1. INSTITUTIONS
SUPPORTING
GLOBALIZATIONS
LESSON 3
Globalization and Public Administration (PA 423)

2. LEARNING OBJECTIVES :
After going through this lesson, you
should be able to:
Understand the nature of
institutions
Identify sample institutions

3. Globalization and governance have been two of the most
dominating challenges in the international environment for more
than a decade. Phenomenal technological improvements in
communication, information, and transportation have brought about
the deeper internationalization and interdependence of economies.
The growing economic integration of nations is bringing about shifts
not only in the economic environment but also in political structures
and processes. Increasing trade and investment exchanges are
creating demands for more open markets and free flow of the
factors of production. But the impact of globalization goes beyond
economics.
GLOBALIZATION AND GOVERNANCE

4. The internationalization of domestic economies is likewise
creating pressures for greater political participation and good
governance. Alongside this development has been the increasing
demand for reliable, stable institutions, and market friendly
policies. Nearly all countries around the world confront these twin
pressures, both of which are interrelated and mutually reinforce
each other.
GLOBALIZATION AND GOVERNANCE
“globalization will affect governance processes
and be affected by them.”
Keohane and Nye (2000)

5. Globalization in the Philippines is supported by a variety
of institutions that facilitate economic integration,
technological advancement, cultural exchange, and
international cooperation. These institutions play a
critical role in enhancing the country’s global
competitiveness, fostering economic growth, and
promoting sustainable development.
GLOBALIZATION AND GOVERNANCE

6. THE PHILIPPINE
GOVERNMENT
The Philippine government plays a central role in supporting
globalization through policymaking, regulatory frameworks, and
international relations. Various government agencies are tasked
with promoting trade, attracting foreign investment, and
ensuring that the country remains competitive in the global
market.

7. PHILIPPINE GOVERNMENT
DEPARTMENT OF TRADE AND INDUSTRY (DTI)
serves as the primary coordinative, promotive, facilitative,
and regulatory arm of government for the country’s trade,
industry, and investment activities. It acts as catalyst for
intensified private sector activity to accelerate and sustain
economic growth through a comprehensive industrial
growth strategy, a progressive and socially responsible
liberalization and deregulation program, and policies
designed for the expansion and diversification of both
domestic and foreign trade.

8. PHILIPPINE GOVERNMENT
DEPARTMENT OF TRADE AND INDUSTRY (DTI)
DTI Philippines aims to achieve a global position for the
country’s export sector, develop micro, small, and medium
enterprises (MSMEs), and create a harmonized investment
facilitation to identify priority investments. This aligns with
the Philippine Development Plan (PDP) 2023-2028, based
on the Marcos administration’s vision towards Bagong
Pilipinas (New Philippines). A country where Filipinos can
thrive in a secure and comfortable environment, with equal
opportunities to participate in a globally competitive
economy.

9. COMMITMENTS UNDER ITS MULTILATERAL INTERNATIONAL COMMITMENTS
World Trade Organization
(WTO)
Asia Pacific Economic
Cooperation
(APEC)

10. WORLD TRADE ORGANIZATION (WTO)
the only global international organization
dealing with the rules of trade between
nations. At its heart are the WTO agreements,
negotiated and signed by the bulk of the
world’s trading nations and ratified in their
parliaments. The goal is to help producers of
goods and services, exporters, and importers
conduct their business.

11. WORLD TRADE ORGANIZATION (WTO)
The Marrakesh Agreement Establishing the World
Trade Organization (WTO) or the WTO Agreement
entered into force and established the WTO on 1
January 1995, but its multilateral trading system is half
a century older. Since 1948, the General Agreement on
Tariffs and Trade (GATT), which was the result of the
Bretton Woods Conference convened by the United
Nations (UN) following the 2nd World War, had
provided the rules for the system. Over the years GATT
evolved through several rounds of multilateral trade
negotiations.

12. WORLD TRADE ORGANIZATION (WTO)
The last and largest GATT round was the Uruguay
Round (UR) which lasted from 1986 to 1994 and led to
the WTO’s creation. Whereas GATT had mainly dealt
with trade in goods, the WTO and its agreements now
additionally cover trade in services, and intellectual
property rights or what may be looked into on traded
inventions, creations, and designs. It has also a much
more strengthened set of dispute settlement
procedures, currently proving to be the crown jewel of
the multilateral trading system (MTS).

13. WORLD TRADE ORGANIZATION (WTO)
The current round, the Doha Development Agenda
(DDA) with over 20 negotiating topics, also referred
to as the Doha Round of multilateral trade
negotiations is much more complex than its
predecessors. The Round takes its name from Doha,
Qatar, the place where it was launched on 14
November 2001. The DDA or Doha Round is the 9th
Round of international trade negotiations under the
auspices of the MTS dating back to the old GATT.

14. WORLD TRADE ORGANIZATION (WTO)
The Doha Round is stalled but work continues in Geneva
and Members remain engaged. The commitment by
Members to the preservation of the multilateral trading
system with the development context central for its
continuing relevance also remains strong.

The WTO is both a legal and institutional framework. It
may be looked at as a multilateral agreement and an
organization. It implements and operates the UR legal
instruments and acts as a forum for dispute settlement,
trade policy review, and for cooperation with
international economic institutions (i.e., both the World
Bank and the IMF) on international economic issues.

15. WORLD TRADE ORGANIZATION (WTO)
The Ministerial Conference (MC) is the highest authority in
the WTO and comprises trade ministers that meets once
every two years to decide on the operation of the WTO
Agreement. The General Council (GC) based in Geneva takes
care of day-today activities and is comprised of the
Members’ ambassadors (or representatives) to the WTO. The
WTO has several bodies taking care of the implementation of
covered agreements the most prominent of which would be
the: Council for Trade in Goods, Council for Trade in Services,
Council for Trade-Related Intellectual Property Rights (TRIPS),
GC as Dispute Settlement Body (DSB) and GC as Trade Policy
Review Body, and the individual committees, Working Parties
and Working Groups.

16. WORLD TRADE ORGANIZATION (WTO)
The WTO decides generally by consensus. However, three
fourths majority is required for the interpretation of any
agreements; two thirds majority for the adoption of any
amendments to any provisions; three fourths majority for
temporary waivers of WTO obligations for any country; and
two thirds majority to admit new Members.

The WTO is headed by a Director-General (DG) and assisted
by four (4) Deputy DGs approximating geographical
representation. There is a Secretariat which is based in
Geneva of varying nationalities from Member countries.
The Philippines has been a WTO Member since 1 January
1995 and a Member of the GATT since 27 December 1979.

17. The Philippines is a signatory to the following
subsequent WTO covered agreements:
Multilateral Agreements
2005 Protocol amending the TRIPS Agreement
Plurilateral Agreement
2014 Protocol concerning the Trade Facilitation
Agreement

18. 2005 Protocol Amending the TRIPS Agreement
WTO Members on 6 December 2005 approved changes to the
WTO’s intellectual property (TRIPS) agreement in order to
make permanent a decision on patents and public health
originally adopted in 2003. This was formally built into the
TRIPS Agreement after acceptance of the Protocol amending
the TRIPS Agreement by two thirds of the WTO’s Members. The
amendment took effect on 23 January 2017 and replaced the
2003 waiver for Members who have accepted the amendment.
The Philippines accepted the Protocol on 30 March 2007.
MULTILATERAL AGREEMENTS

19. 2014 Protocol concerning the Trade Facilitation Agreement
On 27 November 2014, the GC adopted the Protocol of Amendment to
insert the WTO Trade Facilitation Agreement into Annex 1A of the WTO
Agreement (“the Protocol”), and opened it for acceptance by Members.
According to the WTO Agreement, a Member formally accepts the
Protocol by depositing an “Instrument of Acceptance” for the Protocol
with the WTO. As stipulated in the Protocol, it shall enter into force in
accordance with Article X:3 of the WTO Agreement. Namely, the Protocol
shall take effect upon acceptance by two thirds of the Members for the
Members that have accepted the Protocol; thereafter, the Protocol shall
take effect for each other Member upon acceptance by it. The Philippines
accepted the Protocol on 27 October 2016.
MULTILATERAL AGREEMENTS

20. Information Technology Agreement
The Information Technology Agreement (ITA) was concluded by
29 participants at the Singapore Ministerial Conference in
December 1996. Since then, the number of participants has
grown to 82, representing about 97 per cent of world trade in IT
products. The participants are committed to completely
eliminating tariffs on IT products covered by the Agreement. At
the Nairobi Ministerial Conference in December 2015, over 50
members concluded the expansion of the Agreement, which now
covers an additional 201 products valued at over $1.3 trillion per
year.
PLURILATERAL AGREEMENT

21. The Philippines, as an active Member of the WTO, ensures that its stakeholders are
consulted through the WTO National Advocacy and Consultations Programme.
Furthermore, the country has been actively supporting an advocacy on Micro, Small
and Medium-sized Enterprises (MSMEs) with the vision to enable MSMEs to be active
players in the global market via continuing discussions on the role and importance of
the MSMEs in the economic environment.
The Philippines is of the view that the WTO given its multilateral nature offers the
widest possibility for stronger sets of alternatives to fully address trade issues while
factoring in capacity constraints brought about by differences in the levels of
economic development among its Members. Thus, the country, together with the
other developing countries, is committed to the preservation of the DDA mandates
and to eventually complete an ambitious and balanced agenda with the economic
development of its Members being made central. This necessarily includes keeping
the principle of the single undertaking intact.

22. ASIA PACIFIC ECONOMIC COOPERATION (APEC)
was established with the primary objective of
supporting sustainable economic growth and
prosperity in the Asia-Pacific region by
championing free and open trade and
investment, promoting and accelerating
regional economic integration, encouraging
economic and technical cooperation,
enhancing human security and facilitating a
favorable and sustainable business
environment.

23. ASIA PACIFIC ECONOMIC COOPERATION (APEC)
APEC operates as a cooperative, multilateral
economic and trade forum where member
economies participate on the basis of open
dialogue. All economies have an equal say in
discussions and decision-making is reached
by consensus. There are no binding
commitments or treaty obligations;
commitments are undertaken on a voluntary
basis.

24. ASIA PACIFIC ECONOMIC COOPERATION (APEC)
Since its establishment, APEC has grown to become a
dynamic engine of economic growth and one of the
most important regional fora in the Asia-Pacific. Its 21
member economies are home to around 2.9 billion
people and represent approximately 62 percent of
world GDP and 47 percent of world trade in 2022. The
Philippines is one of the 12 founding members of APEC
in 1989.
APEC works towards economic growth and prosperity
in the Asia Pacific region through regional economic
cooperation to achieve the APEC Bogor Goals of free
and open trade and investment.

25. PHILIPPINE GOVERNMENT
DEPARTMEN OF FOREIGN AFFAIRS (DFA)
As the agency mandated to carry out the
Philippine foreign policy, the DFA has been
dealing with the issues of globalization long
before the ensuing debate on this
phenomenon.

26. PHILIPPINE GOVERNMENT
DEPARTMEN OF FOREIGN AFFAIRS (DFA)
The mission of the DFA is to advance the interests of the Philippines
and the Filipino people in the world community." Its objectives are as
follows:
(1)to contribute to the enhancement of national security and the
protection of the territorial integrity and national sovereignty:
(2) to participate in the national endeavor to sustain development
and to enhance the Philippines's competitive edge in a global milieu;
(3) To protect the rights and promote the welfare of Filipinos
overseas and to mobilize them as partners in national development;
(4) to project a positive image of the Philippines;
(5) to increase international understanding of Philippine culture for
mutually-beneficial relations with other countries;
(6) to increase and maximize human, financial, technological and
other resources to optimize the performance of the Department.

27. PHILIPPINE GOVERNMENT
DEPARTMEN OF FOREIGN AFFAIRS (DFA)
Among its political strategies is the utilization of
regional and international form to enhance Philippine
political and security interests. Also, part of its key
developmental strategies is to lead, in cooperation
with the relevant government agencies, in overcoming
market barriers facing Philippine exports and services
through negotiations with other governments, active
representation in APEC, WTO, ASEAN, and other
networks.

28. The International Monetary
Fund
(IMF)
World Bank Organization
(WBO)
BRETTON WOODS INSTITUTION
INTERNATIONAL FINANCIAL INSTITUTIONS

29. BRETTON WOODS INSTITUTION
The Bretton Woods system was an international
monetary agreement that standardized currency
exchange rates. Currencies belonging to various
nations were pegged against the US dollar. The
US dollar itself was pegged against the price of
gold. It aimed to bring uniformity to global
exchange rates. They were created in 1944 to
help restore and sustain the benefits of global
integration, by promoting international
economic cooperation. Today, they pursue,
within their respective mandates, the common
objective of broadly shared prosperity.

30. INTERNATIONAL MONETARY FUND (IMF)
·The IMF focuses on the functioning of the
international monetary system, and on promoting
sound macroeconomic policies as a precondition
for sustained economic growth.
·The IMF has increasingly become an open and
transparent organization, as demonstrated by the
overwhelming amount of information now
available on its internet website. It also
encourages transparency among its membership.

31. WORLD BANK ORGANIZATION (WBO)
·The World Bank concentrates on long-term
investment projects, institution-building, and on
social, environmental, and poverty issues
·Increased trade integration has helped to drive
economic growth in developing economies in
recent decades, lifting millions out of poverty.
The World Bank works with governments to
design and implement policies to maximize trade
competitiveness in both goods and services.

32. UNITED NATIONS (UN)
The United Nations is an international organization founded in
1945. Currently made up of 193 Member States, the UN and its
work are guided by the purposes and principles contained in its
founding Charter. The UN has evolved over the years to keep
pace with a rapidly changing world. But one thing has stayed
the same: it remains the one place on Earth where all the
world’s nations can gather together, discuss common
problems, and find shared solutions that benefit all of humanity.

33. THE FOOD AND AGRICULTURE ORGANIZATION
(FAO)
The Food and Agriculture Organization of the United Nations leads
international efforts to defeat hunger. Serving both developed and
developing countries, FAO acts as a neutral forum where all nations
meet as equals to negotiate agreements and debate policy. FAO's
mandate is to raise levels of nutrition, improve agricultural
productivity, better the lives of rural populations and contribute to
the growth of the world economy. FAO is the largest of the U.N.
agencies. It was established in 1945 and its headquarters is in Rome,
Italy.

34. INTERNATIONAL LABOUR ORGANIZATION
(ILO)
The International Labour Organization (ILO) deals with labour issues.
Its headquarters are in Geneva, Switzerland. Founded in 1919, it was
formed through the negotiations of the Treaty of Versailles and was
initially an agency of the League of Nations. It became a member of
the UN system after the demise of the League and the formation of
the UN at the end of World War II. Its Constitution, as amended to
date, includes the Declaration of Philadelphia on the aims and
purposes of the Organization. Its secretariat is known as the
International Labour Office.

35. ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
The Association of Southeast Asian Nations (ASEAN) is a
regional organization that promotes political, economic,
and cultural cooperation among Southeast Asian countries,
including the Philippines. ASEAN facilitates economic
integration in the region, making it easier for the
Philippines to participate in regional and global trade.
The ASEAN Economic Community seeks to create a single
market and production base, allowing for the free flow of
goods, services, investments, and skilled labor within the
region. This regional integration helps the Philippines
benefit from access to a larger regional market and
increased investment flows.

36. ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
As part of ASEAN, the Philippines is a participant in various
free trade agreements, such as the ASEAN Free Trade Area
(AFTA) and the Regional Comprehensive Economic
Partnership (RCEP). These agreements help reduce trade
barriers and promote the Philippines as an attractive
destination for foreign investment.
ASEAN promotes not just economic cooperation but also
cultural exchange and tourism. As part of this community,
the Philippines sees increased regional tourism and cultural
exchanges, which contribute to the broader globalization
process.

37. BUSINESS PROCESS OUTSOURCING (BPO)
INDUSTRY
The Business Process Outsourcing (BPO) industry is one
of the Philippines' largest economic sectors, providing
services to companies around the world. The BPO
industry supports globalization by serving international
clients in areas such as customer service, information
technology, and back-office operations.

38. BUSINESS PROCESS OUTSOURCING (BPO)
INDUSTRY
The Philippines has become a global hub for outsourcing, particularly in
voice services like customer support and non-voice services like IT support.
The BPO industry connects the Philippines to global businesses, allowing
the country to participate actively in the global services economy.
The BPO industry provides millions of jobs to Filipinos and contributes
significantly to the country’s GDP. It also helps develop the skills of the
local workforce to meet global standards, making the Philippines
competitive in the global labor market.

39. BUSINESS PROCESS OUTSOURCING (BPO)
INDUSTRY
BPO companies in the Philippines are deeply integrated
into global technological networks, using advanced
technologies to provide services to clients worldwide.
This positions the Philippines as a key player in the
global digital economy.

40. THANK YOU !
BATANGAS STATE UNIVERSITY - TNEU