THERE WAS A TIME when economic development strategies were concerned predominantly with the efficient, least-cost allocation of scarce productive resources, and with the optimal growth of these resources over time so as to produce an ever-expanding range of goods and services.

Many developing countries, including the Philippines, had succeeded in realizing or approximating their economic growth targets, with rising gross national product (GNP) and per capita incomes. However, the achievement of economic growth did not always result in a better standard of living for the masses. 

Hence, development strategies were redefined to give more focus on the development of people. The approach based on the “trickle down effect of GNP growth” was change to “conscious redistribution from growth.” The reduction/elimination of poverty, inequality and unemployment, and the improvement in the quality of life became clearer as the ultimate goals of economic development.

Globalization is the most recent strategy touted to propel countries to heights of economic development – through increased efficiency, competitiveness and economic integration, anchored on the policy of giving greater latitude to the free play of market forces, reliance on comparative advantages and greater participation of the private sector in economic activities. It also breeds new forms and levels of economic activities and promotes important shifts in social relations and systems.

Thus, globalization is ideally a multidimensional process which involves major changes in economic and social structures, popular attitudes and national institutions, resulting in the acceleration of economic growth, the reduction of inequality and the eradication of poverty.

There is however, concern on history repeating itself, so speak. That too much focus on the growth dimension could lead to economic restructuring that is so biased for trade liberalization and market  reforms, and the weakening of labor market institutions and mechanisms that help ensure growth with equity.

More specifically, the pressures of increasing international competitiveness could work against improving wages and working conditions. The challenge, therefore, is striking a balance between economic growth an social justice, where workers enjoy a fair share of the fruits of development.

While economic reforms aim to make the Philippines a competitive participant in the global economy, are there corresponding reforms in the labor market which support structural adjustments, and at the same time promote worker empowerment and income security?

Thus, this Monograph seeks to:

•      review the economic reform instituted by government in support of  globalization, and identify the corresponding reforms in labor market institutions and mechanisms, if any (i.e., changes in labor market policies/laws and implementing structures);  

•      assess the implications (policy-consistency check) of selected labor market reforms on improving the competitiveness of Philippine labor and industries (globalization-test);  

•      assess the implications of selected labor market reforms on promoting employment, income and worker empowerment in the light of structural adjustments (equity-test); and  

•      discuss emerging labor policy issues that have to be addressed to promote growth with equity in the context of globalization.