REACTION PAPER

Commanding Heights: The New Rules of the Game

By: Laura Jean L. Abando

A single market in which everyone has a stake, but no one has control.

Globalization tends to move everyone in one single course, the free

market. As such, the open market has become the central government in the

whole world. Each is in competition of everyone, each against each and all are

leaders of his own and not a follower of anyone.

This reaction paper chooses to make a comparison of the Philippine

experience and those of the nation highly given notice of the effect of the move

from the state – controlled economies towards the free – market.

THE REFORM THAT CLINTON MADE IN AMERICA

What's the good of having a country if you're going to let it go down the

drain? – B. Clinton, 1992 Presidential Election

Then President Clinton advocated strengthening the labor force, believing

that investment should at home so that job would not go offshore. Ironically when

he was admitted to Office, he went to support the North America Free Trade

Agreement (NAFTA) fortifying trade outside the United States of America and

increasing labor outside and not in his land. For supporters of NAFTA,

…trade embodies an idea: that open markets create wealth, bind nations

together, and help construct a more prosperous -- and a more secure -- world.

Clinton may have not achieved his primary advocacy, however he’s

decision changed his country and the world. As more jobs and investment

flourished in his neighbor country, Mexico. This is what global market movement

made it tend to spread the opportunities and wealth outside the developed

nation, which have been good and bad.

AS PENSION FUNDS BECOME A FORM OF LIVING

Because the world is getting smaller and smaller, as we say, and the

growth of the global economy, as we say, this is... The real source of change in

today's world, whether anybody likes it or not, increasingly are large pension

funds. – Bill Crist, President of California Public Employees' Retirement System

Crist, who controlled one of the largest pension fund, believed that the free

market can make global stability. Indeed, CalPERS proved it right. But that is not

simple as can be surmised. It seems that for one to make it globally, two things is

necessary: (1) the credentials and (2) product. CalPERS is fortunate that it has

won the needs of people thus it hit globally.

THE ASIAN ECONOMIC MIRACLE

Ever since I was a child, I have been wanting to be a multimillionaire. I

wanted to be rich. I wanted to do something that no one has done -- build a

luxurious condominium. I knew a lot of rich people and multimillionaires would

like to take time off to play golf, to enjoy the fresh air in the mountains, which you

cannot find in Bangkok. - Sirivat Voravetvuthikun, Former Real Estate Developer,

Thailand

IN CHINA, as seen, the leaders had embraced markets and welcomed

hundreds of billions of dollars of foreign investment. Almost one-quarter of the

world's population was entering the global market for the first time (Commanding

Heights, The New Rules of the Game). Indeed the uniform move of a big

population had a big impact in the world market. Such has made Asia

significantly known in the globe. For it may good for Asia, it has been a threat to

others worldwide.

IN SINGAPORE, the country may have a small landmass and a minute

population, but it had proven terribly that it can be made known worldwide. As

said, the countries that make themselves relevant become better off; their people

become better off.

JAPAN had a different approach, being the great exporter it protected its

domestic industries; as if doing the advocacy of Clinton then. It is admirable of

Japan to have fought for its people and made it best worldwide. It took risk to be

conservative and not adopt the global trend but acted aggressively and be on top

of the world.

THE GLOBAL IMPACT

Capitalism may have various consequences, but the same is so

expectedly patterned from liberalization from government – handcuffed

civilization to an economic free-willy that is for sure to soar high and then

plummet sharp.

The continued adaption of the free – market led to a central and uniform

trend of globalization. Seemingly, all who have moved away from the central

government naturally moved to single scheme of a central market.

THE FILIPINOS SHARE

The Philippines may not have become a communist nation, although it

was once under a dictatorship. Similarly, the change that 1986 EDSA Revolution

caused the Filipinos was a long been desire. However the dream was not an

absolute reality, as freedom from the dictator may have been obtained, but the

freedom from poverty was not for all nor for many. The democratic government,

which primary aims freedom of economy effectuated a highly stratified economic

life standing to every individual and to put it simply, there are various poor people

and rich few.

As reform in the government made a few oligarchs harvest what so many

have sowed, coup de tat followed and several of it continued. The country that

brought the single dictator down due to prison – like existence was incarcerated

to democracy for a few blessed. The democratic government embraced the

wisdom of free – market which among Filipinos are make the rich richer and the

poor poorer. This has been the biggest political issue that lingers until the present

time.

But capitalism in the country, unlike others, are appreciated to be more

political than not. Leaders favored the most powerful few for a claim in a post and

a maintenance on the same. In this country, the most powerful few are those who

controls the market, as the same is manuevered and geared on the same. And

that either protects the Philippine economics or only the “Pinoy Trapo”. At

present, it seems the latter.

However, the Philippines are of better potentials, being known to be

globally competitive in all aspect, especially the human aspect, ironically the

same is better utilized in other nation than ours. We are known to export our

talents and leave our homes unattended.

As such, other than the few lucky merchants that enjoys the prime crops,

the other prime crop of talents are enjoyed not by the Filipinos but the other

nations that run their civilization with a Filipino contribution.

Indeed the Philippines has truly gone into capitalism but have not

embraced it for the Philippines but each for each Filipino.

In compliance with the requirement of the Subject Corporation Finance

This reaction paper is prepared and submitted to:

ATTY. ELBA CRUZ

Professor