The Foreign Service Institute (FSI) hosted Mr. Vicente Paolo B. Yu’s lecture on global economic and strategic trends at the FSI last 31 July 2015.
Mr. Yu, currently the Programme Coordinator of the South Centre’s Global Governance for Development Programme, gave a presentation on “Global Economic and Strategic Trends: Some Considerations for the Philippines’ Economic and Foreign Policy.” He discussed the macroeconomic, environmental, and geostrategic trends in the global economy and the possible strategic considerations for the Philippines to achieve its economic and foreign policy objectives.
He started by discussing the macroeconomic trend in the global economy -particularly the vulnerability of rising economies.According to Mr. Yu, the global macroeconomic picture is still very much dominated by the United States and China.Developing countries will continue to experience vulnerability that comes from the high level financial integration as this leaves their economies exposed to the crisis of other countries.
Climate change is another trend that has significant impact on the global economy. Mr. Yu emphasized that climate change is an economic issue with environmental roots. Economic considerations play a crucial role in international negotiations on climate change initiatives, particularly the cost of implementing measures to curb carbon emissions on development fueled by traditional energy resources. The rising sea levels, changing regional micro climates, and extreme weather conditions have serious economic impact on communities and on countries. Thus, it is important to adapt economies to these conditions and mitigate the impact of climate change.
Developing countries should also consider the increasing change in the patterns of competition and cooperation. The language has now shifted from cooperation to partnership or competition, putting the developed economies and the developing economies on a level playing field.
To gain leverage in the global arena, the challenge for the Philippines is to move from being service-oriented to becoming a technology manufacturer. The Philippines should also strengthen its economy through economic alliance-building to gain leverage in the global arena.
The Mabini Dialogue was attended by representatives from the Department of Foreign Affairs, Foreign Service Institute, armed forces, academe, and government agencies.