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People, Profit, and Politics:


State-Civil Society
Relations in the Context of
Globalization 1

TERESA S. ENCARNACION TADEM2

INTRODUCTION These concerns come in light of studies


showing the importance of the role of a
This research project analyzes the relations
strong and effective civil society as one of
between the Philippine state the major factors in furthering
and selected civil-society actors in the
development and democracy. While this
context of globalization. It focuses on four study does not assume that a strong civil
sectors: the Benguet vegetable, hog, society is automatically beneficial to
garment, and telecommunications
development, it is predicated on the view
industries. These sectors are widely known that civil-society participation and inputs
to have been affected by economic
can make a positive contribution to the
liberalization—negatively in the case of policymaking process.
the first three, and positively in the case In the academic literature, for example,
of the telecommunications industry. The
it is generally accepted that there is some
project investigates two interrelated kind of relationship between economic
aspects of state-civil society relations: (1)
development and the kinds of
how civil-society actors engage with participatory democracy signaled by the
official state agencies through various proactive role of civil society. Some
formal and informal strategies of
analysts claim that there is a strong
dialogue, negotiation, and bargaining; and association between the two; others
(2) the extent to which civil-society actors
assert that they exhibit a positive linear
have been able to influence governmental relationship, while still others claim this
policymaking. relationship is indeed causal (see

___________________________
1
This article is taken from the Introduction and Conclusion of the book People, Profit, and Politics: State-Civil
Society Relations in the Context of Globalization edited by Ma. Glenda S. Lopez Wui and Teresa S. Encarnacion
Tadem (Quezon City: Third World Studies Center in cooperation with the United Nations Development Programme-
Philippine Office, 2006).
2
Teresa S. Encarnacion Tadem is associate professor at the Department of Political Science, University of the
Philippines (UP) Diliman, and director of the UP Third World Studies Center.
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Przeworski et al. 2000 for a monitoring, and adaptation of more


comprehensive discussion; Sen 2000; effective policy).
Bensabat-Kleinberg and Clark 2000). That the Philippines provides the
These academic claims are also setting for the study, particularly in
substantiated in the policy statements of looking at the dynamics of state-civil
major international development agencies. society engagement in a time of
There is a near-universal acceptance by democracy, is also significant, even
agencies such as the World Bank, the crucial. As pointed out by Cielito Habito
Asian Development Bank, bilateral (2005):
donors, and the United Nations
Development Programme (UNDP) that This is the country that has been
democratic forms of policymaking and acknowledged to have among the
civil-society participation are integral to most, if not the most, vibrant
effective decision making. Above all, each civil society movements around
of these agencies now subscribes to the the globe, and especially within
notion that stakeholders and beneficiaries the Asia-Pacific region. It is also a
should participate in all stages of the country wherein a relatively wide
policy and project cycle. The UNDP, for variety of avenues for civil
example, has long been explicit on this society engagement with the
point: it suggests that stakeholder state have been made available,
participation and the role of civil society especially after the overthrow of
are crucial in shaping the political and the Marcos dictatorship with the
governance contexts in which policy is EDSA People Power Revolution.
made and implemented (UNDP 1993). Thus, a similar study focused on
The creation, in 2000, of the UNDP another country probably would
Bureau for Resources and Strategic not have been [as] rich and
Partnerships to coordinate and nurture substantive.
UNDP’s working relationships with civil- Habito, however, notes that “this
society organizations, among others, adds uniqueness in the Philippine situation
institutional weight to the participatory could also be its handicap in the sense
approach. Finally, the UNDP book that it may limit the study’s potential
Partners in Human Development: UNDP audience, as the wide applicability of its
and Civil Society Organizations (2003) observations and findings may be open to
suggests important ways to operationalize question.”
the partnership among the international
community, states, and civil society. One may argue that the vibrancy
Beyond these general statements of of Philippine civil society and the
principle about state-civil society relations wide variety in modes of state-
and participatory approaches to civil society engagement
development and good governance, what opportunities present in the
is needed is a much more empirically country in a way make it a
grounded research that can reveal not standard to which others may
simply the presence (or absence) of civil- aspire, and a kind of yardstick
society actors in policy dialogue but with which other countries’
precisely how civil-society actors situations and experiences may
negotiate and bargain to open up greater be assessed. (Habito 2005)
political and policy space and the
substance of the policy outcomes of such
engagement. The need, therefore, is for an
DEFINING CIVIL SOCIETY
assessment of state-civil society relations
both as a means (the context in which Civil society is generally identified with
policy is negotiated, shaped, and set) and the “private” sphere of the capitalist
as an end (the implementation, market, which is to be distinguished from
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the “public” domain of the state (Colas intermediary organizations or grassroots


2002: 14). It consists of non-state actors support organizations (Uvin 2000: 11-
and these include the private sector. Civil- 12). A subcategory here is the so-called
society players or organizations (CSOs) international NGOs (INGOs), which refers
are considered part of social movements to organizations that are located in one or
comprising amorphous and fluid groups in more rich countries and seek to promote
which the bonds are common grievances social and economic change in Third
or conviction, and shared goals for World countries (Uvin 2000: 12). A third
societal and policy change (rather than category of nonprofit CSOs is people’s
structures). They connect people with organizations (POs)—NGOs whose
causes through developing communities of members belong to the same community
interests around shared conditions (Clark they are serving. They also generally
2003: 4). Their relevance is seen in the consist of member-organizations
light of non-state actors as “crucial composed of people seeking to advance
determinants of state policies, whether their own community interests, e.g.,
domestic or foreign.” Of importance is peasant associations (Uvin 2000: 11).
that the real change is in the breadth of What also emerges here is the
the social interests represented by CSOs, phenomenon of CSO networks in which
which has witnessed a move toward there is no single organization or center
democratization that is both domestic and for decision making and often not even
international (Uvin 2000: 17-18). any formal process. In this situation,
CSOs can be categorized in various cooperation is nonhierarchical, informal,
ways. One category of CSO is engaged in and often temporary and issue-specific
voluntary organizing, which is primarily (Uvin 2000: 12).
devoted to promoting policy change
through public education, direct lobbying,
policy research, and so on. Differentiation, DEFINING GLOBALIZATION
however, is made between a profit CSO The other important concern of this
and a nonprofit one. The former includes research is globalization, which is “the
chambers of commerce and producers’ rapidly expanding process through which
associations. The latter performs its tasks societies are connecting to each other
out of a sense of the public’s general through markets and new technology”
interests, e.g., environmental (Grugel 2004: 29-30). Social-movement
organizations (Uvin 2000: 12). Nonprofit scholars have pointed out that
CSOs are also defined as nongovernment globalization is not a new phenomenon.
organizations (NGOs), which are “The world economy had interlocking
considered as key players in social trade and investment patterns as early as
movements the 19th century.” What distinguishes
today’s global economy, however, is its
that do grassroots support and
neoliberal character, which structures
advocacy work. They are
contemporary transnational content
intermediary organizations in
(Ayres 2002: 191). Proponents of
contrast to membership groups
neoliberalism argue that there should be
with relatively defined social
no government intervention with market
constitutions. They, therefore, do
forces for economic growth to occur. This
not directly represent the
is because the neoliberal economic theory
grassroots constituencies they
believes that “the law of free markets is
attempt to serve. (Fox and Brown
sufficient regulation for an economy
1998: 21)
seeking to find sustainable income flows
Some would consider this a second and thus distributes revenues to the most
category of nonprofit CSOs—the needy segments of society” (Peters 2000:
voluntary organizations that seek to 6). The view is that premium must be
promote change, also referred to as placed on trade liberalization and the
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unfettered entry of foreign investments have unfettered access to the markets of a


into any country. Second, globalization developing country. Because of this, there
with its emphasis on a free-market is a real likelihood that there will be a
economy and privatization seeks to contraction of wealth that is heavily
minimize the role of the state. By doing skewed in favor of the wealthiest sections
so, it hopes to put an end to the of developing countries (Serrano 2001:
inefficiency and corruption that has 9). And lastly, creating a favorable
plagued state-dominated economies as environment for foreign investors is often
epitomized by capitalist authoritarian translated to the repression of workers’
states as well as socialist authoritarian wages.
states. Another tenet of globalization is Besides the class bias of globalization,
trade liberalization and the opening up of the other issue is concerned with the
the economy to foreign investors. quality of life that this economic
Critics, however, have pointed out that phenomenon is promoting. Critics argue
such a setup does not create political that globalization has brought about a
opportunity for long-term development. rapid development that threatens the
Investors, for example, can easily fly out quality of life, and the absence of gender
of the host country when the latter ceases equality despite the growth in the number
to provide them optimum environment of working women (Peters 2000). This
for capital accumulation. Moreover, stage of capitalism is also accused of
emphasis on export would give less degrading the environment (Callinicos
attention to the development of a 2001: 116). It also does not help much
domestic mass following for local that the agents of globalization such as the
products. Although the emphasis on World Trade Organization (WTO) have
export could create more employment for accelerated globalization without social
the local workforce because of bigger control. This it attributes to the
markets abroad, problems nonetheless perpetuation of undemocratic WTO rules
arise if importing countries begin to tap and procedures, which have marginalized
other sources offering better-quality the majority of the world’s people who
goods at lower prices. The other critique must live with the instability and social
concerns the class bias of globalization— degradation (Tabb 2001: 191). Related to
that is, against the poor. This is because this is the critique of the loss of state
globalization has intensified economic, control of the economy. The market-based
social, and political inequalities by solution, for example, is seen in the bigger
privileging the private over the public context of globalization’s integrating a
sphere and by marginalizing the actual, as national economy into the world
well as the potential, importance of the globalized free markets. This thus brings
commons (Thomas 1997: 6). As noted by about a situation whereby states are left
its critics, globalization has resulted in the to have very little control of their
rich countries growing richer and the poor economies as seen during the Asian
countries becoming poorer; within the financial crisis (Peters 2000).
country itself, the rich are getting richer
and the poor are getting poorer. Such a
reality has been a major criticism of the STATE-CIVIL SOCIETY
neoliberal development policy whereby ENGAGEMENT IN A PERIOD OF
“20 years of liberalization of the world GLOBALIZATION
economy has not led to the generous
trickle-down that they have predicted, Taking into consideration the pros and
either in absolute or in relative terms” cons of globalization, this research looks
(Wilkin 1997: 28). These inequalities are into how this economic phenomenon has
further perpetuated because globalization affected state-civil society engagement in
allows the private sector, e.g., the Philippines. Although there are
multinational corporations (MNCs), to existing studies on the broad effects of
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economic globalization on different income, are necessary to achieve


sectors of the Philippine economy, to date sustained development and social justice
no research has focused on the nature of (Petras 2003: 143). In all these, the
interaction that takes place between the interaction between social movements of
state and civil-society actors within an civil society and the institutions of global
environment shaped by globalization. governance is still mediated through the
Further, little analysis has been undertaken structure of the state. The interesting
on the implications of this engagement for question in this context, therefore, “is not
development policy outcomes and raising so much if state sovereignty is
the standards of governance (including disappearing in the face of globalization,
transparency, accountability, and but rather how is the relationship between
responsiveness). The research, therefore, state and civil society being shaped
attempts to fill these gaps. A systematic internationally under the pressures of
study on how civil-society groups engage globalization” (Colas 2002: 139).
the state could yield valuable lessons— Moreover, the engagement is also
both for the civil-society community in its determined by the manner in which the
advocacy and for the government in its globalprocesshasshapedbotdomestic h
policymaking responsibilities, and for and transnational mobilization of civil
both state and civil society in their society. This is because global processes
development partnership. This would produce similar responses by movements
include the identification of the in different contexts by structuring
circumstances under which broader and common transnational threats or
more effective participation in the opportunities. Second, global pressures
decision-making process is achieved, as have also produced similar opportunity
well as when it is not. It would also help structures for collective action in different
to clarify areas for possible reforms, national contexts (Smith and Johnston
especially in relation to the 2002: 3). “Transnational actors become
developmental outcomes arising from more relevant as they organize to address
economic liberalization in specific sectors. grievances of global character and to take
Such an engagement is also defined by advantage of parallel state-level
the manner in which members of civil organized groups like Amnesty
society situate themselves. There are International … can readily advance a
NGOs, for example, that are promoters of common political strategy that targets
neoliberalism. That is, they work with multiple national governments” (Smith
“large sums from the World Bank, the US and Johnston 2002: 3). Third, cross-
Agency for International Development, national movements have also been
and other international and state funding identified as due to the diffusion
agencies on a ‘subcontracted’ basis to processes whereby there emerge globally
undermine national comprehensive defined targets or sources of grievances
welfare institutions” (Petras 2003: 141). brought about by the structural affinity
There are NGOs, however, that are among states. A proponent of this is
considered reformists as they “receive Marco Giugni who points out that
middle-range funding from private social transnational diffusion is also a crucial
democratic foundations and progressive process for explaining common ideologies
local or regional governments to fund and tactics across differing national
ameliorative projects and to correct the movements (Smith and Johnston 2002: 3).
excesses of the free market. The Globalization also brings with it an
reformists try to ‘reform’ the WTO, IMF expanded array of political institutions
and World Bank and regulate capital” that create both opportunity and
(Petras 2003: 142). And lastly, there are constraints for activity. Not only do global
radical NGOs, which believe that basic institutions have distinguished effects on
structural changes from below, e.g., activists’ political strategies and
redistribution of power, property and opportunities; they also shape the ways
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that social movement actors relate to each have been both positively and negatively
other (Smith and Johnston 2002: 9). A affected by economic liberalization, the
phenomenon that has also emerged are research is predicated on the assumption
global civil societies, which operate at the that some form of state-civil society
international level. Because of this, “many engagement is both necessary and
studies of transnational associations and desirable if the new context for
political contention implicitly or explicitly policymaking—globalization—is to be
argue that global processes are creating an “managed” or “governed” in ways that
expanded web of interdependence among minimize its downside effects and
states, thereby nesting national maximize its developmental potential. In
institutions within a broader, global the Philippine context, there are built-in
framework of interest and obligations” mechanisms and venues in the three
(Smith and Johnston 2002: 7). branches of government (executive,
legislative, and judiciary) where civil-
society actors can formally engage the
Propositions on Civil Society-State state to negotiate policy reforms that
Engagement address specific concerns. Civil-society
In determining the role which civil society groups can engage Congress in the
would like the state to play in an era of enactment of laws; they can also engage
globalization, a number of proposals have the executive branch in the
been put forward. There are those who implementation and enforcement of the
argue that governments should not divest laws and the formulation of other
themselves wholly of the provision of programs and policies. They can also
essential services such as health and appeal to the judiciary for the
education. By maintaining a strong interpretation of laws and redress of
presence in civil society, government can grievances. Likewise, summits, dialogues,
still exercise some influence over the and other fora as well as tripartite and
vagaries attendant to a free-market multisectoral councils have been made
economy (Peters 2000). There is also a available to civil-society actors where
need to create conditions for markets that they can sit and conduct dialogue with
empower the impoverished and in the state actors. This is all part of the general
process respond to local demands. drive to enhance the transparency of
Furthermore, “governments should be governmental decision making. It is also
encouraged to take a more active role in the case that, beyond these formal
the regulation of markets as a means of channels, much of the quality of state-civil
ensuring that those who are most society relations is determined informally
vulnerable to fluctuations in financial through flexible policy networks that are
markets, particularly those who are living also present in processes of lobbying,
in poverty, can be assured of some means bargaining, policy shaping, policy setting,
of protection by a state committed to and policy change. The research seeks to
principles of equity, democracy, and understand the precise nature of these
sustainability” (Peters 2000: 6-7). formal and informal state-civil society
relations along a spectrum of engagement,
ranging from inclusion through
Civil Society and State Engagement and accommodation to exclusion, and seeks to
the Specific Sectors account for these different modalities.
A third dimension of the research
Another dimension introduced by this
examines the specificities of policy
study in state-civil society relations in a
outcomes through an analysis of these
time of globalization is the empirical
four sectors. The rationale for choosing
focus. In highlighting four sectors—the
them is twofold. First, each of these
Benguet vegetable, hog, garment, and
sectors of the Philippine economy, with
telecommunications industries—which
the exception of the telecommunications
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industry, has confronted difficulties in the 2002: 534). These two approaches have
last few years and these problems are their own explanatory power; however,
widely attributed to liberalization policies given the current developments in state-
associated with the globalization process. civil society relations in the case studies of
The research establishes whether this the industries covered in the context of
understanding is well founded and how it globalization mentioned above, the
determines the forms and means of liberal-relational approach is deemed to
intervention civil-society actors utilize in capture much of the ongoing dynamics in
their engagement with the government. the sectors being studied. This is because
Second, the effectiveness of these modes in the liberal-relational approach, civil
of intervention and how the state society in this research “exists at the
responds to the processes of dialogue, intersection where the various elements of
negotiation, and bargaining are also society come together to protect and
assessed to account for substantive policy nurture the individual and where the
changes or, alternatively, policy individual operates to provide those same
disagreement or policy inertia. protections and liberating opportunities
for others” (O’Connell 2000: 474). These
“various elements” refer to the
Theoretical Perspectives on State-Civil community; the business sector; the
Society Relations voluntary, nonprofit, independent sector;
There are three major approaches in and even, in part, the government (Hearn
viewing and explaining state-civil society 2001: 342).
relations: liberal-oppositional, liberal-
relational, and Marxist-relational (Ku
Theoretical Framework of Political
2002). This research has a bias toward the
liberal-relational approach. The liberal- Opportunity Structures
relational approach views civil society “as These perspectives, however, may not
being necessarily intertwined with the fully capture state-civil society relations
state. Much liberal theory believes that when a new element is introduced:
civil society may effectively defend itself globalization. Will globalization weaken
against an encroaching government only the intertwined relationship of the state
through legal and political institutions” and the civil society, and thereby also
(Ku 2002: 534-35). If in the liberal- reduce the democratizing potential of such
relational approach the state is necessary relation to the detriment of the people
to ensure the rights of individuals in a civil who have to suffer the effect of
society and of the civil society itself, the undemocratically crafted socioeconomic
Marxist-relational approach considers the policies? Or, is it also possible that
state as a referee among contending economic liberalization, the main
egoistic interests in civil society. “In this economic regime that underpins
theory, state intervention is legitimate if it globalization, will result “in the transfer of
is to remedy injustices and inequalities economic decision making and power to
within civil society, and if it is to protect market forces and social actors, therefore
the universal interest of the people” (Ku potentially empowering civil society”
2002: 532). As for the liberal- (Kamrava and O Mora 1998: 896-97)?
oppositional approach, it views civil To examine these questions, the study
society “as a realm outside and in also draws heavily from the framework of
opposition to the state. Believing that the resource mobilization in explaining the
state is necessarily coercive and emergence of social movements in terms
oppressive, it favors a highly autonomous of the capability of movement
civil sphere outside the state. It advocates entrepreneurs to mobilize resources
the self-management of the sphere, toward the attainment of identified
through self-help bodies, informal collective objective. In addressing the
networks and social movements” (Ku questions posed in the research, the
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theory of political opportunity structure dimensions of the political environment


(POS) was used as the framework of the that provide incentives for people to
study. The concept of POS is part of the undertake collective action by affecting
resource mobilization theories conceived their expectations for success or failure”
to analyze social movements. This theory (85).
is based on the assumption that aspects By privileging the structure of political
within the political milieu determine the opportunity, the fortunes of movements in
emergence of strategies utilized by civil terms of mobilization and policy influence
society in engaging the state as well as the can be explained largely by the nature of
outcomes of the engagement. While political institutions within the challenged
previous theories emphasize internal polity and the movement’s preferences in
characteristics and resources of approach anchored in this environment
movements that could affect mobilization (Meyer 2003). In simple terms, therefore,
and realization of objectives, the bias of the political context, conceptualized
the political opportunity model is toward broadly, produces opportunities for
external factors or conditions; in this case, actions, responsiveness to change, and
the broader political system that policy influence. Corollary to this is the
structures the opportunities for collective idea that movements decide on goals and
action. Succinctly, a social movement’s strategies based on political circumstances
political environment influences the kind instead of organizational dispositions.
of approach and the result of protest. The Therefore, political opportunity structure
POS framework, however, also points to is largely used to explain three main
the importance of movements to create aspects of social movements: their
and mobilize resources at their disposal to emergence, preference in tactics or
advance their agenda. Thus, the concept of strategies, and the degree to which they
political opportunity structures is applied achieve their objectives (McAdam,
in examining how a specific political McCarthy, and Zald 1996: 27).
environment determines the outcome of Furthermore, in looking into political
the actions of civil-society actors in each opportunity structures, Giugni (1998)
of these respective sectors of the study identifies two salient features central to
and how these actors are also able to take this model: the system of alliances and
advantage of opportunities that are oppositions, which movements can use as
external to them. a political resource for their success, given
Changes in political opportunity that they are considered as powerless
structures are also monitored as these challengers; and the structure of the state.
may either encourage or discourage social
movements, and when or how struggles
would lead to actual reforms. Political The Case Studies
opportunity structures include the opening These theoretical perspectives were
up of access to power, shifts in ruling applied to the four case studies
alignments brought about by cleavages presented. Sharon M. Quinsaat’s case
within and among elites, and the study, “Mobilizing against Vegetable
availability of influential allies (Tarrow Importation,” looks into the mobilization
1994). Also, political opportunity of the civil society in cooperation with
structures are not confined to the state. In government to end the importation of
an environment where the state does not cheaper vegetables, which has brought
have monopoly of trade policymaking and about the demise of the already
governance, it is likewise imperative to underdeveloped Benguet vegetable
look at intergovernmental and industry. It looks into how civil society
supranational institutions. Furthermore, explored the different channels opened
political opportunity structures, according under a democracy to penetrate the
to Tarrow (1994), are “consistent but not hostile policy environment in advocating
necessarily formal or permanent for reforms to save the industry. A similar
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situation is also found in Ma. Glenda S. experience of state-civil society


Lopez Wui’s “Confronting the Challenges engagement in a period of globalization.
in the Garment Industry.” Like the This is because the telecommunications
vegetable industry, the garment industry industry—unlike the Benguet vegetable,
also suffers from the adverse effects of garment, and hog industries—has
cheaper importation of garments. Unlike generally benefited from the liberalization
the vegetable industry, though, it is of the industry with the emergence of
export-oriented and is not geared toward telecommunication companies as
the domestic market. Furthermore, it epitomized by the cellphone and Internet
enjoyed its heyday as a leading export phenomena in the country. The bone of
industry and continues to be one of the contention now lies on the power of the
major export earners of the country. regulatory state to prevent any form of
However, its export earnings are monopoly and to come out with policies
threatened by the expiration of the Multi- that will benefit most the industry players
Fiber Arrangement (MFA) and the removal and the consumers.
of the assured quota for its products.
Members of the industry, i.e., the garment
factory owners and laborers, together PALLIATIVES FOR
with members of civil-society groups, “GLOBALIZATION WITH A
have launched an advocacy campaign for HUMAN FACE”
policy reforms to prevent the industry
from further demise. In determining whether globalization has
Joel F. Ariate Jr.’s “Protests and indeed brought about positive
Perceived Threats in the Hog Industry” or negative outcomes in the concerned
depicts the hog industry as suffering the industries—vegetable, hog,
same fate of the Benguet vegetable and garment, and telecommunications—the
garment industries with regard to the loss case studies initially looked into the state
of profit as brought about by cheaper of these industries before trade
imports. Like the Benguet vegetable liberalization. 3 The nature of state-civil
industry, it primarily serves the domestic society engagement during this period was
market. Unlike the other two industries, also examined. Among those studied, the
however, the hog industry’s profit Philippine vegetable industry, prior to
continues to increase and has not liberalization, had generally been the most
experienced the bankruptcy of any of its underdeveloped and lacking in
major players. Despite these, however, government support, although it had
the hog industry owners are not taking any survived as it held a monopoly on its
chances and have launched a series of target domestic market. The situation is
campaigns and lobbying with regard to different for the garment industry, which
policy reforms to be undertaken by the experienced growth in the past three
government to secure their profits. As in decades on account of the MFA whose
the Benguet vegetable and garment quota system assured local garment
industries, however, there are also certain manufacturers overseas markets for their
international treaties and agreements that products. Garments became a major
have bound the Philippine state to abide dollar earner for the country through the
by the entry of cheaper imports. The last MFA, even as the industry benefited from
case study, “Balancing Consumer and the state’s export-led industrialization
Corporate Interests in the policy. Similarly, the hog industry, though
Telecommunications Industry” by Ronald not export-driven, profited much, buoyed
C. Molmisa, highlights a different by the Filipinos’ penchant for pork.
Though industry players have expressed
___________________________
3
Trade liberalization in the Philippines is defined as “lowering tariffs and lifting quantitative restrictions on
hundreds of goods (notably, not rice); removing capital controls to allow capital to flow unimpeded in and out of the
country; and opening previously restricted sectors and industries to foreign ownership” (Abinales and Amoroso
2005: 245).
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their apprehensions regarding the on some occasions, these groups were


importation—and smuggling—of meat actually advocating for policy reforms that
products, profit from hog raising can still they believe would benefit the entire
be realized. As for the agricultural sector and not exclusively the
telecommunications industry, the absence vegetable industry. Global CSOs, on the
of market competition before other hand, were found in the garment
liberalization had left it in dire straits. The industry as the workers linked up with
introduction of new players in the market, global CSOs engaged in protecting
however, spelled more effectiveness and workers’ rights.
efficiency, as well as options for the The researches recognized the role of
consumers. consumer groups in these industries, but
with the exception of the
telecommunications sector, these groups
GLOBALIZATION AND THE did not figure prominently in the debate
NATURE OF STATE-CIVIL SOCIETY on the positive or negative impact of
ENGAGEMENT globalization in relation to the industries
being studied. These include the major
The case studies focus on state-civil consumer groups in the Philippines, such
society engagement in the vegetable, as the Consumer Union of the Philippines
garment, and hog industries, which are (CUP), one of the biggest consumer
struggling against the ill effects of trade organizations in the country; the
liberalization; and the telecommunications Consumers Federated Groups of the
industry, which profited from Philippines Inc. (CFGP), a private
globalization. Civil society consists of the organization that works for the welfare
stakeholders who are directly affected by and protection of consumers; and the
the problem and may entirely benefit or Citizens’ Alliance for Consumer Protection
suffer from the outcomes of the (CACP), which has been part of a
engagement in terms of policy response. worldwide social movement since its
Based on the previous discussion, those founding days in the late 1970s (Directory
that can be categorized as profit civil- of Consumer Organizations). These
society organizations are the farmers/ consumer groups each have different
peasant organizations in the vegetable advocacies. The CUP, for example,
industry, and the owners of the garment focused on opposition to electric rates
factories and their workers. The hog and airline and other transportation fares.
industry has at least seven major It also campaigned against the
stakeholders; the case study focuses on importation of sugar and rice, and the
the hog farmers and the feed millers, as need to test products and assure their
well as other players outside the hog quality. The CFGP is mainly concerned
industry, i.e., the meat processors, with monitoring prices and quality of
slaughterhouse operators, and the hog and prime commodities, and assisting
meat dealers. The telecommunications consumers in seeking redress for their
companies’ (telcos) civil society includes complaints. The CACP, on the other hand,
the Internet service providers (ISPs). The made its mark in protesting oil price hikes
consumers, who played an important role during the Martial Law period and called
in the telecommunications industry, may for the promotion of locally produced
also be considered part of CSOs. goods. It was also concerned with
The nonprofit CSOs in the vegetable exposing questionable goods and services
industry consisted of political blocs, and opposing institutions that were
NGOs, coalitions, and the church. These harmful to consumers (Directory of
groups not only took on commodity- Consumer Organizations).
specific engagement of the state but also Other consumer groups were
tackled issues concerning agricultural established for even more specific
trade liberalization or even the Philippine reasons. The Coalition for Consumer
economic framework in its entirety; thus,
ANIB 41

Protection and Welfare (formerly The Benguet vegetable farmers before


Coalition 349), for instance, was trade liberalization exercised little
organized as a result of the Pepsi political clout to gain state support for
“Numbers Fever” marketing scandal in their industry despite its importance to
1992, which was characterized by the province’s economy. The weakness in
“changing the rules while the game was their bargaining leverage may have
being played.” The Nationwide stemmed from the lack of demand for
Association of Consumers Inc. (NACI), on vegetables. But because these farmers
the other hand, was “born out of the need enjoyed a sort of market monopoly, there
to protest illegal pyramid schemes” had been no need for them to engage the
(Directory of Consumer Organizations). state. Also, vegetable farming is a high-
No prominent consumer groups emerged risk enterprise, providing farmers very
out of the impact of globalization on the little incentive. Furthermore, vegetable is
garment, hog, and Benguet vegetable not a political (or major) crop in the
industries, i.e., for cheaper garments, Philippines insofar as the number of
pork, and vegetables, respectively. Most farmers, the total area planted/harvested,
probably, the consumers found and its contribution to the economy (GDP,
themselves benefiting from the cheaper gross-value added, etc.) are concerned. In
products in these industries, and so, why the era of globalization, instead of
protest against trade liberalization? fighting for government support, the
farmers simply considered alternative
means of livelihood.
Before Trade Liberalization: CSOs’ The same cannot be said of the garment
Bargaining Leverage vis-à-vis the State and hog industries. As one of the country’s
For the vegetable and hog industries, top dollar earners, the garment industry’s
trade liberalization began during the captains enjoyed a privileged position,
country’s ascension to the World Trade particularly with the MFA and the demand
Organization’s (WTO) rules and for Philippine exports as facilitated by the
regulations, which had a direct impact on boom in garment industries in the First
these two industries. During the same World. But state-civil society engagement
period, in the Ramos administration, the in the garment industry had differential
telecommunications monopoly was impact on the stakeholders. That is, the
broken up beginning in 1992. owners/employers had the bargaining
Trade liberalization for the garment leverage vis-à-vis the state because they
industry, on the other hand, began in the were the ones who profited from the
1970s under Marcos’s martial law regime, earnings. However, the same could not be
when the state pursued an export-oriented said of the industry’s laborers. As pointed
industrialization program under the out in the case study, workers have been
auspices of the World Bank and the exploited not only in terms of low wages
International Monetary Fund (IMF). but also in terms of inhuman working
Therefore, state-civil society relations in conditions. This had been exacerbated by
the industry were discussed within the the political dispensation at the time, i.e.,
context of the shift from an authoritarian the Martial Law period, in which political
to a democratic regime, i.e., in 1986. One and civil rights were curtailed. Thus, for
may also consider this period as the “pre- example, the workers could not strike.
neoliberalism” period in the garment Stripped of their political rights, the
industry, in which the authoritarian state workers, like the vegetable farmers, also
had a heavy hand in determining the did not have the economic clout to engage
industry’s development thrust. A major the state. But unlike the vegetable
question that emerged during the period farmers, the garment workers benefited
was whether the process of from the labor unions, particularly those
democratization had a distinct impact on organized by the militant Left movement,
state-civil society relations. i.e., those identified with the Communist
42 ANIB

Party of the Philippines (CPP), which domestic demand, and the latter enjoyed
strengthened particularly during the a monopoly. The garment workers
Martial Law period. The broadening engaged the state through the labor
protest movement against Marcos’s unions, and the demands were framed not
repressive regime provided the workers in terms of industry reforms but the need
the political opportunity to organize and for radical change in society.
demand for higher wages and better
working conditions. One, therefore, had a
situation in which profit CSOs were allied Arguments For or Against Liberalization
with nonprofit CSOs. It was unfortunate The assessment of the impact of
that, first, the Left did not organize the liberalization on the sectors studied
workers in a sectoral manner, i.e., during the globalization period shows
attention was given to the sector in similarities and differences in
general and not the specific demands of perspectives. Liberalization’s positive
each sector. Second, workers’ rights were effect is best seen in the
integrated into the overall revolutionary telecommunications industry, which saw
struggle, so that the Left was more new players in the market and therefore
concerned with what the workers’ more options for the consumers. Foreign
movements could contribute to the
investors forged partnerships with local
overthrow of the government and the companies; more phone lines were
establishment of a revolutionary society installed; and, since 2000, there has been
rather than what kind of reforms could
a phenomenal growth in cellular and
improve the workers’ conditions. And
mobile telecommunication services
lastly, even at the height of its
(CMTS). There has also been maximum
organization, only 10 percent of the
utilization of the short message service
workers were organized. The hog industry
(SMS) or “texting” in many parts of the
apparently saw no need to engage the
country. Healthy competition among
state since it has always been a profit-
industry players, favoring the consumers
making venture. And even if it had to, it
and other local players outside the
had the economic clout to pursue such an
industry, has also been another positive
engagement.
impact of globalization. Liberalization
As for the telecommunications industry,
meant something else for the hog
because of the decades-old monopoly of
industry: cheaper imports not only of pork
the Philippine Long Distance Telephone
but also of other low-priced meat—beef,
(PLDT) Company, there was also no
buffalo meat, and poultry—could bring
pressing need to engage the state. This
about a shift in consumption patterns,
was especially so when it was taken over
by the government during the Martial Law thus keeping other local players from
period. During the Aquino administration, having a complete monopoly.
the PLDT was perceived as “protected” On a wider sphere, globalization has
also opened up spaces for transnational
from other sources of competition as
movements to bond for a common cause.
then-President Corazon Aquino’s relatives
For example, the garment industry has
had interest in the company.
links with local and global networks to
These “pre-trade liberalization”/“pre-
uphold workers’ rights, such as the Clean
neoliberalism” experiences reveal that in
Clothes Campaign.
terms of state-civil society engagement,
those with economic clout, such as the
garment industry, can engage the state Losing out to cheaper imports
and gain favorable policies, helped by the
One major negative impact for the
world demand for garment exports. On
industries, however, is the loss of profits
the other hand, the hog and
for the producers in the vegetable,
telecommunications industries found no
garment, and hog industries on account of
reason to engage the state because the
former was doing well on account of the
ANIB 43

tariff reduction as directed by the WTO Class bias: An issue of governance or


and the government’s unilateral action. philosophy of development?
Impacts differ, however, across the At the industry level, the four case studies
industries, even as their main concerns reveal that the state supports
have to do with tariff, import, and quota. liberalization in industries where the
For example, since the ratification of the players are “weak,” as in the vegetable
WTO agreement, the Philippines has and garment industries, and allows for
consistently imported less pork and monopolistic behavior in an industry
poultry meat than what the minimum where the players are “strong,” e.g., the
access volume (MAV) agreement telcos. The state has been passive on the
stipulates. This means that the threat of issue of telecommunications market
imports to the domestic hog industry has services. It has even encouraged
not yet fully materialized (Habito 2002). monopolistic behavior by protecting
Despite the closure of several factories strong ties with telco executives on
because of cheaper imports, the garment account of their contribution to the
industry continues to be one of the national treasury.
country’s dollar earners. However, it is Are these more of an issue of
heavily dependent on imported raw governance or the philosophy of
materials—about 95 percent of its fabric development, i.e., neoliberalism? What
and textile requirements are imported emerges in the case studies is that this is
because the price of local textiles is neither an either/or question nor are they
relatively higher than the prevailing world mutually exclusive. Neoliberalism breeds
price. Also because it is dollar-dependent a particular form of governance, which
export, it is vulnerable to fluctuations in makes it difficult to address
the world market and the protectionist socioeconomic inequalities. That is, it is
policies of importing countries like the US not concerned with the redistribution of
and the European community. wealth. It argues that a market economy
Sadly for the Benguet vegetable under the auspices of liberalization will
industry, globalization has driven the last bring about the trickle-down effect.
nail on its coffin. But as critics of globalization have
pointed out, and what has emerged in the
The class bias case studies as the class bias,
globalization has witnessed the richer
That globalization is favoring the rich is states becoming richer and the poorer
also seen in the experiences reported in nations becoming poorer. Moreover,
the four case studies. For example, cheap within the respective societies, the rich are
labor and long working hours characterize becoming richer while the poor are
the garment industry, in an effort to becoming poorer. What is seen
compete with other garment-producing particularly in telecommunications is the
countries. This situation is epitomized by elite’s capture of the state whereby the
the garment subcontracting industry state has allowed for monopolistic
wherein the workers are not given the tendencies. Although globalization is
opportunity to unionize. Furthermore, viewed as a means to end the
there persists the practice of part-time, “patrimonial state,” which is captured by
temporary, and casual work. Women, who patronage politics and is lacking the
comprise the majority of the industry’s “vision, autonomy, and bureaucratic
workforce, are the biggest victims. Capital capacity necessary to implement a
for garment industries has moved to development program,” this is really not
production sites that offer better the case (Budd 2005). Globalization has
opportunities for profit accumulation, i.e., even aggravated socioeconomic
lower wages. inequalities because of the unequal
competition in a country where there is a
44 ANIB

wide gap between the rich and the poor. Favoring the majority at what cost?
Thus it seems that globalization has Globalization is also seen as favoring the
facilitated the elite capture of the state. “interests” of the majority (e.g., the
The powerless in the person of the consumers) vis-à-vis the stakeholders
Benguet vegetable farmers and the (e.g., the farmers in the Benguet vegetable
garment workers have asked for state industry and the workers in the garment
intervention in the form of safety nets. But industry). But at what cost? The cost lies
this also goes against the very tenet of in the aspect of the sustainability of an
neoliberalism, which demands no state economy that can no longer compete with
intervention. Neoliberalism states that if foreign goods, resulting in the ultimate
you cannot compete, you wither away. deaths of key industries, i.e., vegetable,
Thus there is actually no room for hog, and garment.
governance as neoliberalism sees a Based on the case studies, local
minimal role for the state. As argued by producers argue that globalization does
Jomo (2006): “The ‘retreat of the state’ in not provide an environment conducive to
much of the developing world in recent the creation of political opportunities for
decades has involved a generally reduced long-term development, particularly in the
role for government, including the development of a domestic market for
capacity to lead and sustain development, local products. With globalization’s class
as well as its progressive social bias, even if the imported vegetables,
interventions.” pork, and garments are cheaper, who can
The reality, therefore, is that afford to buy these? Certainly not the
globalization falls short of pushing the Benguet vegetable farmers and the
democratization process in a country garment workers who have been laid off
where socioeconomic inequalities prevail. because their industries can no longer
Thus workers in the garment industry, for compete with their foreign counterparts
example, are exploited even more now on account of liberalization. There is need,
because worldwide cutthroat competition too, to disaggregate the consumers,
has become more intense. If they do not particularly with regard to those who can
allow themselves to be exploited, they actually afford to eat three meals a day
lose their jobs as their factories fold up and those who cannot. Certainly these are
upon failing to compete. not the farmers, the workers, and their
The same argument could also apply to families who have lost their sources of
the intensification of smuggling with livelihood.
globalization. One can argue that this is a
governance concern and cannot be blamed
on globalization. But this brings again the The Objectives of Engagement
reality of the elite capture of the state, State-civil society engagement has to do
which allows for smuggling. The only way with how the industries’ stakeholders
to end this is to address the income adversely affected by globalization,
inequalities in society to empower the particularly with regard to the profits they
majority to put an end to the corruption earn, attempt to address the issue
of the elites. Neoliberalism as a politically. Politics here is defined as “a
philosophy of development, however, process whereby a group of people,
does not address this concern. Worse, the whose opinions or interests are initially
state is hostage not only to the elites but divergent, reach collective decisions which
also to international financial institutions are generally accepted as binding, on the
(IFIs) that pressure the Philippines, for group, enforced as common policy”
example, to adhere to further (Miller 1991: 390). For the stakeholders,
liberalization in exchange for much- the arena for intervention is the state. The
needed loans and economic assistance. framework used is the liberal-relational
approach to state-civil society
ANIB 45

engagement, which looks at the complete monopoly because of


possibilities of forming alliances with competition from other powerful players
state elites. like the meat processors and the corn and
At the microlevel, there is the call for grain feeders. The state’s entry into
safety nets in the vegetable and garment agreements for liberalization has also
industries to keep these industries from basically tied its hands with regard to fully
dying. There is also a call for state supporting the interests of the hog
regulation as a necessary countervailing industry.
force against market power, as In all of these, the question is, under
exemplified by the telecommunications what political conditions can civil society
industry, in which there must be a fair engage the state to address the impact of
distribution of market power parallel to trade liberalization, which is a by-product
the creation of an environment that of government’s submission to market
discourages monopolistic behavior. For forces?
example, the telcos did not want the Again, solutions in the form of safety
independent ISPs to provide the Voice nets for the Benguet vegetable farmers
over Internet Protocol (VoIP), claiming and garment workers and more
that this fell under their jurisdiction. ISPs participation in decision making can be
could provide this service at a cheaper dismissed as an issue of governance. But
rate, but this would pull away profits from this is not the case with a philosophy of
the telcos. The situation required a strong development that diminishes the role the
and neutral state regulator to assure state can play in the economy.
upfront competition. Furthermore, the diminished role of the
Engagement also seeks the state comes at a time where there persists
participation of the affected sectors in a big gap between the rich and the poor.
policymaking. As pointed out in the Thus, if ever stakeholders could
Benguet vegetable industry, the Philippine participate in decision making, these
government has created a political would be the well-off, as can be seen in
environment hostile to civil society the telecommunications and hog
advocating reforms in trade policies that industries. One witnesses, for example,
are deemed threatening to the full the state’s inability to regulate the telcos
realization of its economic orthodoxy. because it has been captured by the elite.
And for the garment industry, the policy
challenge is for civil society to link the
issue of the workers with the bigger rubric POLITICAL OPPORTUNITY
of pushing further the democratization STRUCTURES AT THE DOMESTIC
process that would uphold the workers’ LEVEL
rights. Another challenge for these
industries is how to modify state policies Factors facilitating the actions taken by
that put them at a disadvantage if the civil society can be viewed within the
government’s hands are already tied by internal and external dimensions of the
agreements it has signed. political environment. Notably, state-civil
Moreover, it is also necessary to society engagement is happening in a
prioritize the needs of the industries along period of democratization, i.e., not under
with those of the consumers and to the repressive political environment of the
determine what would be best for the Martial Law period, which was the context
public good. Should the country, for of state-civil society engagement during
example, continue importing vegetables to the pre-trade liberalization period of each
satisfy the consumers in exchange for the of the industries, with the exception of the
death of the Benguet vegetable industry? garment industry. The case studies show
On the other hand, the hog raisers, that civil society also made use of
despite being a powerful business lobby institutional openings to dialogue with the
group, are prevented from exercising a relevant government agencies. This has
46 ANIB

been made possible by the expanding Issues the garment industry raised had to
space for democratic and consultative do with the case of displaced workers in
processes evident in post-EDSA factories that have closed; a
governments. comprehensive plan on how to save the
garment industry; and preparing the
workers for the MFA phaseout. Civil
Engaging the State Institutions society in the garment industry also
The general willingness of the post- focused its efforts in reforming the Bureau
Marcos Philippine state to engage civil- of Customs. Corruption in the bureau has
society actors in designing its policies and made it easier for smuggled garments to
in implementing its programs—thus enter the country. Labor groups in the
conferring on its actions a constant veneer garment industry likewise engaged the
of democratic legitimacy—has benefited judiciary through the filing of cases against
civil society as it explicitly opened spaces employers.
for participation of non-state actors in Political opportunity structures also
regular politics. Such participation is presented themselves at the legislative
facilitated by laws, such as the Republic and judicial levels. The Philippine
Act (RA) 8435 or the Agriculture and Congress, for example, was used as a
Fisheries Modernization Act (AFMA) of venue for articulating the grievances of the
1997, which recognizes that civil-society Benguet vegetable farmers, particularly
actors will play a key role in its effort to through the party-list system, which has
modernize agriculture, and that the state made possible the representation of the
would set the rules on such partnership. marginalized and underrepresented in the
There were also institutionalized legislative process. In filing cases against
mechanisms such as those embodied in their employers, labor groups in the
the Local Government Code, which also garment industry made use of the
facilitated civil society engagement at the judiciary.
local level, particularly seen in the
experience of the Benguet vegetable
industry stakeholders. Another is through Mobilizing Allies
the creation of agencies, which allows for Equally important in engagement is the
participation of various sectors in the identification of key allies in government
decision-making process as seen in the institutions. The Benguet vegetable
government-sponsored National Tripartite industry, for example, found a major ally
Conference that gathered representatives in then-Department of Agriculture (DA)
from major labor organizations, Undersecretary Ernesto Ordoñez, who
management, and government experts on endorsed the actions of the vegetable
the garment industry (Magadia 2003: 67- traders, allowing them to penetrate the
68). It is mainly through agencies like Bureau of Customs. In some cases, allies
these that labor groups formally engage were also formed not on the basis of
the executive branch. Civil-society principle but because of certain
engagement also focused on the individual’s self-serving interest. For
established institutions of the example, former DTI Secretary and now-
bureaucracy, the legislature, and the Senator Manuel “Mar” Roxas III, an
judiciary. advocate of consumer-oriented
The garment industry, for example, globalization and thus opposed to an
engaged the bureaucrats when it held increase in tariff rates, changed his
formal and direct dialogues with relevant position because the vegetable
government officials from the Garments stakeholders played on his electoral
and Textile Export Board (GTEB), the ambitions to appeal for the protection of
Department of Trade and Industry (DTI), the vegetable industry. Roxas’s case is not
and the Department of Labor and unique as electoral politics provides an
Employment (DOLE), among others. opportunity for policy advocacy in
ANIB 47

exchange for votes. In the As for powerful allies at the level of the
telecommunications industry, Senator local government, this was found in
Roxas also emerged as a crucial ally. He Benguet local officials such as Fongwan,
supported the interests of ISPs when he Kim, Molintas, Sacla, and Uy. Some
filed a resolution in Congress calling for alliances were also formed because some
the Senate to remove all obstacles to the of these local officials were formerly
full commercialization and development vegetable traders themselves and thus
of VoIP as a cheaper alternative to could commiserate with the plight of the
international calls. Benguet vegetable industry players. They
Such a situation reveals that although are referred to as “institutional activists,”
stable aspects of political opportunity being government officials formerly
structures are fixed and regarded as givens associated with civil-society advocacy
(Tarrow 1994), for example the strength groups.
of state institutions or the party system,
there are precarious elements that shift
with events and policies, and are Civil Society Engaging the Private
essentially “matters of contention in which Sector
movements participate” (Gamson and The battle among the players in civil
Meyer 1996). This could be seen in the society was most evident in the
case of elections and the manner in which telecommunications sector: the ISPs
the Benguet vegetable industry framed its versus the telcos that found support from
concerns whereby “these volatile features telephone companies such as Bell
are conceived as processual rather than Telecoms with regard to the VoIP. There
structural and entail perception or framing was also the involvement of big US
of such political opportunities by telephone companies such as AT&T Corp.,
movement participants in order to which urged the Philippine government to
influence mobilization” (Tarrow 1994; classify VoIP as a value-added service
Gamson and Meyer 1996; McCarthy, (VAS), i.e., not within the control of the
Smith, and Zald 1996). Furthermore, in telcos, which will ultimately liberalize the
the case of engaging the state institutions, industry. Thus, deregulation of the
“importance is attributed to points of industry would be good for the public as
access and inclusion in policymaking. It is it would prevent foreign players to easily
said that mobilization is strongest when capture a portion of the market. Civil-
the political system is in the process of society groups emerged, like the
opening up to movement demands, rather Philippine Internet Services Organization
than when access is completely closed or (PISO), which is the voice of the small
when the regime has fully met the ISPs. In March 2005, the National
movement’s demands” (Tarrow 1994). Telecommunications Commission (NTC)
Local allies are found not only in the classified VoIP as a VAS, thus breaking the
national bureaucracy but also in the local monopoly of telcos as the sole provider
government. This was the experience of of VoIP services. Thus, in the battle of
the Benguet vegetable farmers when civil these two profit-making enterprises,
society was able to mobilize the local public good was served with the triumph
government because of its huge stake in of the ISPs.
vegetable farming. The farmers’ allies While liberalization, i.e., deregulation,
were the Benguet local government frees the market for more players, there is
officials who were running during the still need for a strong regulatory body that
elections, opening doors for civil society’s would prevent a monopoly. While the
advocacy in the vegetable industry. telcos and consumers checked the
Moreover, the farmers also mobilized government on the tax on text messaging,
nonstakeholders by making the issue part the consumers seemed to be powerless
of the larger campaign against agricultural with regard to the government’s and
trade liberalization. telcos’ collusion on a franchise tax. The
48 ANIB

government and the ISPs, in turn, checked Textile), the Labor Forum Beyond MFA,
the telcos’ monopoly of the VoIP service. and the GARTEX Labor Council
This highlights the issue of whether there (Garments, Textile, and Allied Industries
should be a strong regulatory state in Labor Council). The latter is spearheaded
place before liberalization occurs. The by the FTA and comprises eighteen labor
more structural issue, however, is whether federations. Thus, the FTA is one network
liberalization can work in a society whose concerns cut across sectors, in this
characterized by a big gap between the case, the concern of the vegetable and
rich and the poor. garment industries vis-à-vis liberalization.
The hog industry could also rely on its
strong organizational and business
COMPLEMENTING DOMESTIC networks and its prior experience in
POLITICAL OPPORTUNITY building cooperatives. This is seen in its
STRUCTURES WITH RESOURCE ability to lobby members of the
legislative and executive branches of the
MOBILIZATION
government through formal dialogues,
The domestic political opportunity letter-writing campaigns, and attendance
structures that civil society could take in hearings and sectoral consultations as
advantage of were also made possible by well as in the use of the media to air their
the resources at their disposal. One of the concerns. Its strength has been further
more important ones was their ability to reinforced with the formation of alliances
form alliances with other like-minded such as the Agricultural Sector Alliance of
players. In the case of the Benguet- the Philippines (ASAP) in 2001, which
vegetable civil society, for example, it include feed millers’ and hog raisers’
tapped alliances at the national level, such associations and cooperatives.
as the Fair Trade Alliance (FTA), a middle- The civil-society network in the
class movement; and the Kilusang telecommunications industry involved
Magbubukid ng Pilipinas (KMP) and the mainly the players who had direct stakes
Alyansa Dagiti Pesante iti Taeng in the industry and the consumers (who
Kordilyera (Alliance of Peasants in the did not figure at all in the vegetable
Cordillera Homeland [APIT TAKO]), which industry). The tax issue, specifically the so-
are part of the lower-class movement. It called text tax, brought the players to a
also forged alliances with political blocs, confrontation. The government along with
e.g., Akbayan and Bayan Muna, which some legislators framed the issue by
carried their advocacy campaign. Notably, arguing that the text tax will raise
the KMP was an organization that government revenue that can provide for
emerged during the Martial Law period more social services. Civil society, which
while the leadership of Akbayan and did not agree, framed its argument by
Bayan Muna consists of personalities who saying: (1) there is no need to tax, if the
were active during the anti-dictatorship government spent public money correctly;
struggle. Thus, the Benguet civil society (2) to impose taxes on text messaging is
benefited from political movements antipeople; and (3) government should
established in the past as well as newly just run after the big tax evaders. Civil
created ones like the FTA and the APIT- society found allies in legislators, church
TAKO. groups, and overseas Filipino workers
A similar experience is also shared by (OFWs), among others. The telcos also
civil-society campaigns in the garment supported civil society on the issue, saying
industry wherein civil society formed that the cost would merely be passed on
alliances to determine a course of action to the subscribers. In the end, the
upon the MFA’s expiration. Among these president raised the value-added tax
organizations are the BMP-Almagate (VAT) system on telecom providers from
(Bukluran ng Manggagawang Pilipino– 10 percent to between 12 and 14 percent
Alyansa ng Manggagawa sa Garment at instead of the franchise tax, which could
ANIB 49

translate into higher cost of service. Thus, occasionally (usually through rallies and
one had a case of the telcos and civil pickets) to air their grievances.
society coming together vis-à-vis the Protest actions, however, were not
government. limited to holding rallies. In the hog
Networks and alliances in the industry, there was the “meat holiday,”
telecommunications sector were also i.e., the nondistribution of meat products
formed because of a common cause. The to the public markets in protest of the
tax issue, for example, provided a political rampant smuggling of meat products. This
opportunity for civil society to continue to was led by ASAP.
rally around concerns for more affordable
and efficient cellular phone service. One
of these groups was TxtPower, a loose The Use of the Media
organization of different progressive The media, for example, gave the Benguet
organizations. One of the issues they vegetable industry crisis wide coverage. In
raised was the telcos’ reduction of the a society where the media often set the
free-text allocations for prepaid agenda, it was reasonable for the civil-
subscribers without due consultation with society actors to count on the institution
the consumers. Others were the drop for forming and influencing public opinion.
calls, i.e., calls charged to subscribers who The garment, hog, and
did not make the calls. The group also telecommunications industries also used
questioned the limited period imposed by the media to talk about their problems.
telcos for the use of prepaid load credits. Thus, the media’s openness to social
Civil society remained vigilant vis-à-vis movements, although these are often
the government’s apparent penchant for excluded in the standard
creating new taxes and/or increasing operationalization of political
current rates. opportunity, is in itself an important
component of political opportunity
structures, which has both structural and
Rallies and Protest Actions dynamic elements (Gamson and Mayer
Protest actions also characterized the 1996). As seen in the case studies, the
political environment. This was seen when content of media coverage may radically
the garment industries held rallies and influence the prospects for mobilization of
demonstrations to express workers’ challenging demands and movements, as
grievances in the workplace and the illegal it affects public awareness and perceived
closure of factories. It is equally important importance of a particular issue
for the garment industry to target (McCombs and Shaw 1993). Mass
international institutions in its campaign media’s agenda-setting function,
to improve the industry as it engages the therefore, has progressed from the
state. Such a strategy is not new as labor classical assertion that the news merely
groups were particularly involved in informs the public. The selection of
several antigovernment mobilizations objects for attention and frames for
during the Marcos regime; well-known interpreting these objects shape the
among these mobilizations is the welgang manner in which news is construed
bayan (people’s strike). In fact, after (McCombs and Shaw 1993).
President Corazon Aquino’s ascension to
power, one of her first acts was to
address industrial labor relations in Other Resources for Mobilization
recognition of the labor movement’s Civil society in the telecommunications
contribution to the downfall of the industry, coming from the upper and
dictatorship. Along with the workers’ middle classes, also had the resources and
utilization of the formal venues are the the capacity to launch massive public
informal engagements that they launch education, organizing and mobilizing
consumers, reinforcing media activities,
50 ANIB

and lobbying with sympathetic lawmakers vegetable industry is represented in


and government officials. Public campaign pertinent Philippine trade agreements
through SMS, Internet, and the broadcast with other countries. Moreover,
media was also used. Civil-society groups grassroots organizing and advocacy have
also visited colleges and schools, markets, increased social awareness of the
churches, government offices, and industry’s plight and have held
communities to gather signatures for their government accountable to the
petition against measures that they felt community. This has also opened up
went against the public regarding opportunities for others to address similar
telecommunications. The nature of their concerns vis-à-vis government and society
organization, i.e., the loose structure, in general. Some refer to this as “state–
enabled them to move effectively and social movement coalition,” whereby state
forge interorganizational linkages to actors use their resources to enhance the
accommodate more resources in their objectives of the social movement. This is
campaign. Civil-society groups also very much in the mode of the liberal-
forged alliances in Congress. Their relational approach in understanding
effectiveness was seen when the text-tax state-civil society engagement. Such an
issue died a natural death and civil-society alliance happens when the concerns of
groups, like TextPower, already had the civil society adversely impact on the
capability to involve themselves in other locality, which local and national
tax issues and link up with others, like the government officials cannot ignore.
anti-VAT groups. They framed these issues
in relation to those affecting the
telecommunications sector, such as the POLITICAL OPPORTUNITIES AT
franchise tax, which will affect a broader THE EXTERNAL LEVEL
range of telecommunication services. Political opportunities at the external level
Such resources for civil society to
were best seen in the formation of
engage government and the public were transnational alliances. For example, the
not seen in the Benguet vegetable industry
garment industry forged alliances at the
whose constituency comes from the global level, which differentiated it from
middle and lower classes. However, civil the Benguet vegetable industry whose
society’s knowledge of the issue was
alliances were limited to the local level.
reflected in its strategy and policy This is because transnational actors could
proposals. Also favorable to the advocacy
relate to the issue of human rights, which
campaign of civil society was the division was raised vis-à-vis the garment workers
of labor among the federations of peasant in the context of globalization. The loss of
political organizations, i.e., some focused
livelihood for the vegetable farmers, on
on the defense of resources and land the other hand, did not generate much
reform while others tackled the issue of
sympathy from transnational actors. There
vegetable importation. was also transnational civil-society
As for the garment industry, the ability support for the garment workers because
of the workers to engage in formal (e.g.,
they are better organized, unlike the small
dialogue with government) and informal vegetable farmers. This enabled the
(e.g., pickets) strategies to gain
garment-industry groups to network with
government attention has much to do with overseas organizations, which allowed
their organizational skills and technical them to learn from the campaigns taken
knowledge.
by other groups and eventually apply
Civil society’s advocacy work in the these at home. These campaigns usually
garment and the Benguet vegetable
center on the corporations’ social
industries has gained government responsibility, with specific focus on their
recognition as well as appreciation of their responsibilities toward their workers. The
political and economic importance. An
Clean Clothes Campaign, for example,
evidence of this is that the Benguet was formed to improve working
ANIB 51

conditions and empower workers in the farmers like then-DA Secretary Arthur
global garment industry. Local chapters of Yap. Yap epitomizes government officials,
international organizations were also particularly technocrats, who are shielded
established in the Philippines. Moreover, from political pressures in their pursuit of
because of the international networking of the neoliberal ideology because they carry
trade unions in the Philippines, they can no political ambitions. Although there
report to multinational companies the may be a façade of openness to
violations committed by local contractors. consultation as seen in the engagement of
Civil-society groups are not the only government agencies, the reality is that
ones making use of such campaigns. these institutions are insulated from
Governments, for example, have also used popular pressures. Corporate interests
these to instill social responsibility among have greater sway on government
local manufacturers. Agreements forged agencies at the national level, thus their
through the efforts of international ambivalent attitude toward civil-society
institutions have also been very useful in participation. The elite capture of the
setting the directions of the country’s laws state is an issue that neoliberalism does
with regard to the protection of workers. not address.
For the garment industry, therefore, There were also limitations in the hog
external political structures were utilized industry, one of which was government’s
to protect the workers’ rights rather than sheer ineffectiveness. This was seen in the
stopping the flow of cheaper garment foot-and-mouth disease (FMD) incident in
imports to the country. which the hog industry had to rely on
As for the telecommunications sector, government to control, e.g., through the
an external political opportunity was for importation of FMD vaccines, vigilant
them to draw in the OFWs in their policing of hog and pork traffic, imposing
campaign to ban the text tax. The external quarantine measures, and massive
environment in which the neoliberal information campaign on FMD, among
ideology dominates as perpetuated by the others. Civil society criticized the
international financial institutions, e.g., the government for corruption with regard to
World Bank and the IMF, has brought withholding money allotted for FMD. An
more positive rather than negative results. important concern was the government’s
This brings out the fact that neoliberalism refusal to act. Stakeholders in the hog
discourages too much state intervention industry, for example, linked the issue of
even as it does not dissipate the state meat imports with FMD—that is, to stop
power to tax. The “Washington FMD was to stop the importation of
Consensus” even stipulated that a country meat, particularly carabeef, which had
should have a stable exchange rate and a flooded the meat market. They also
balanced government budget. This can be pointed out that the smuggling and
accomplished through proper tax excessive importation of meat would
collection alongside less spending. ultimately lead to the collapse of the local
hog industry. No decisive action, however,
was taken by the government despite the
FACTORS HINDERING THE fact that the ASAP held protest actions
ACTION OF CIVIL SOCIETY and declared a meat holiday, among
others. They even demanded the
Factors that hindered the action of civil
resignation of government officials who
society could be seen within the context of
they believed were involved in smuggling,
the limitations in the political opportunity
but this was also to no avail.
structures both at the domestic and
In the Benguet vegetable industry, the
international levels, and with regard to the
strategy of civil society to focus on the
resources that could be utilized. In the
Benguet vegetable industry, for example, executive branch rather than the legislature
also seems to have been flawed. For one,
there were key government officials who
were not supportive of the vegetable executive orders served only as temporary
52 ANIB

measures with very short-term impact. The under the pressure from IGOs. This may
executive can also issue a policy that may explain why in the case studies, political
benefit the Benguet vegetable farmers but parties do not seem to play a role at all in
only to be negated by another policy. For state-civil society engagement (Hague and
example, the government is in partnership Harrop 2004: 28). This is certainly most
with the vegetable industry to stop unfortunate for civil-society groups as the
smuggling but it will not accede to legislature and the political parties are the
lowering the tariff rates on imported institutional vehicles of representation for
vegetables. The legislature also has its the citizenry.
limitations as an arena for engagement. Furthermore, despite the inroads, such
These include the very low awareness of as the institutionalization of NGOs’ and
policymakers of international trade; the traders’ participation in the antismuggling
high rate of absenteeism, which may operations of government agencies and
indicate lack of interest or little task forces in the Benguet vegetable
knowledge of the issue; the long-winded industry, the government response has
process of legislation; and the parochial been minimal. In this context, state
disposition of Congress as an institution. accession to civil-society demands is seen
Changes in policy, therefore, are not as a mere rhetoric or a means to legitimize
based on principles but on realpolitik or state policies, e.g., the antismuggling
quid pro quo. Furthermore, at the end of program. In this light, changes in political
the day, the executive is tasked to opportunity structures as brought about
implement the trade policies mandated by by the democratization process are only
Congress. capable of facilitating civil society’s entry
In the case of the telecommunications into the policymaking arena and its
industry, the legislature generally played a advocacy of modest policy reforms. The
supporting role either to the state (e.g., long-term but still-elusive solution,
the NTC) or to the civil-society players therefore, is for civil society to craft a
(i.e., the telcos, the ISPs, and the feasible alternative economic paradigm
consumers). The telcos have more that serves as the foundation for its policy
resources; they are able to translate these advocacy on agriculture in general and the
to political influence. The reality, vegetable industry in particular. This
therefore, is that the state must address would also prevent the government from
the adverse effects of globalization, treating the concerns of the vegetable
despite the fact that neoliberalism calls industry as issue-specific rather than
for the state’s diminished role. comprehensively.
To reiterate what Mittelman (2002, 10) Therefore, the adverse effects of
said, globalization as manifested by its globalization cannot be fully confronted
major conveyors, the intergovernmental as long as there are impediments in the
organizations (IGOs) like the WTO, tends democratization process. These
to fragment the national political system impediments, on the other hand, cannot
and leaves winners and losers. Among the be addressed when socioeconomic
winners, as very well seen in the case inequalities pervade in society, a reality
studies, are the executive and the which neoliberalism has failed to address.
bureaucracy, which conduct negotiations
and provide the representatives to IGO
meetings; they therefore occupy pole Limitations in the Political Opportunity
position (Hague and Harrop 2004: 27). Structures at the International Level
The losers, on the other hand, include the At the international level, the major
legislature and the political parties. The stumbling block was the state’s
former may only learn of an international submission to external forces, i.e., market
agreement after the government has forces, over which it had no control.
signed it. The latter may have lost ground Nevertheless, civil society in the Benguet
ANIB 53

vegetable industry sought to remedy this In the formal approach to state


by engaging the state. engagement, there was also the issue of
As for the hog industry, the government misrepresentation. Traders, for example,
could not stop the importation of meats misrepresented themselves as farmers and
because it had already signed agreements their approach, i.e., of carrying out the
that opened up the country for antismuggling drive, was not approved of
liberalization. Importation has had by other civil-society groups that believed
different impacts on the various sectors this to be the task of the government.
directly or indirectly linked with the hog There was also resistance among
industry. For example, it led to the loss of vegetable farmers to political organizing
profits for the hog industry unless the for fear of being manipulated to advance
government reduced production costs by a particular dogma. Misrepresentation
lowering tariff on corn and soybeans, also benefited the traders, creating a gap
primary components of hog feeds. This between them and the farmers.
meant that pursuing the interest of hog Furthermore, the Benguet vegetable
industry players would go against civil- industry, unlike the hog industry, could not
society advocates of the producers of take advantage of RA 5435 whereby the
these commodities, such as the corn state recognizes state and civil-society
farmers. This was also seen in the case of partnership in development.
the call to stop the importation of For the telecommunications industry, it
carabeef from India, which benefited the was very clear what organizations the
hog industry but not the meat processors civil-society members belonged to, i.e.,
who were benefiting from carabeef whether they were with the telcos, the
imports. Thus, although the government ISPs, or the consumer groups. The same
has attempted to address the interests of could be said for the civil-society players
the different affected sectors, it has failed in the hog and garment industries.
to come up with a win-win solution. As for the labor movement in the
Only the garment industry workers garment industry, questions that arise
could take advantage of linking up with include why the labor movement, one of
transnational movements fighting for a the oldest movements in the Philippines,
similar cause. Unlike the vegetable and is unable to assert itself with regard to the
hog industries, these movements are more workers’ condition in a period of
focused on workers’ rights rather than democracy. One view is that the labor
livelihood issues. movement has not been sector-specific,
i.e., attention has not been given to the
nuances of each of the sectoral needs of
Limitations in Resources for the workers. Also, subcontracting has
Engagement made it difficult for workers to organize
One of the factors that went against the since they are diffused.
Benguet vegetable industry was the lack
of organization among the farmers, which
kept them from any meaningful CONCLUSION
participation. The highly technical nature These studies have shown globalization’s
of discussions during public hearings and different effects within and across
consultations also alienated groups that domestic industries as well as the multiple
were not conversant with the different strategies of engagement between civil
aspects of tariff policy. This was society and the state. The impact on the
aggravated by the lack of pertinent stakeholders in the Benguet vegetable,
information and data, thus making it garment, and hog industries has been
difficult to establish the validity of the negative. The impact was most severe in
case through hard facts and, in the the case of the Benguet vegetable
process, undermining civil society’s industry, which barely survived despite its
credibility vis-à-vis the policymakers.
54 ANIB

pre-trade liberalization monopoly of the engagement. Such an engagement is best


industry. seen in the context of the liberal-relational
The garment industry, despite being approach that views civil society as not
among the top export earners, shows that just any nonstate and nonmarket actor or
globalization in a time of democracy has that civil society is in opposition to the
brought about profit losses translating state (Hearn 2001: 342). What emerges is
into the closure of several factories and a civil society construed “as part of what
the layoff of hundreds of workers. The links the state to society more broadly,
expiration of the MFA will only make and as providing the channels through
matters worse. Globalization has brought which people influence their states, and
in cheaper meat, but this hardly threatens states cultivate legitimacy” (Hearn 2001:
the hog industry. For the 340). This interaction “reinforces
telecommunications sector, however, democracy by encouraging and
globalization has been positive as the entrenching the pursuit of sectional
entry of more players encouraged greater interest through generally agreed norms”
competition. (Friedman 2003: 10).
In all these, the consumers are the ones Such a situation was best exemplified in
who supposedly benefit the most as civil-society engagement of the local
globalization provides them with cheaper government unit and the local government
products. However, this comes at the officials as well as their engagement of the
expense of the industries that clearly state at the national level, i.e., engaging
cannot compete. There is therefore a need the executive and its bureaucracy, the
for reforms that could be implemented legislature, and the judiciary. The nature of
vis-à-vis developmental outcomes arising engagement is formal and direct, e.g.,
from economic liberalization in specific through committees on tariff involving
sectors. Prioritization as well as safety NGOs, as well as informal and direct, e.g.,
nets are most urgent if communities are to lobbying government officials. Political
survive the adverse impact of opportunities are also present for civil
globalization. In other words, society to engage the state in an informal
globalization should not be adopted and indirect manner, e.g., the use of the
wholesale but on a case-to-case basis, media as well as demonstrations.
with preference for the more marginalized The state is not monolithic. While
sectors. industry players may tap key allies in
Another important lesson from these government, there will always be state
case studies is that the state cannot afford functionaries who are insulated from the
to treat the adverse impact of pressure to provide for safety nets to
globalization on a piecemeal basis, i.e., industries, as in the case of the Benguet
being issue-specific. Civil society, on the vegetable and garment industries. The
other hand, also has to do its homework allies may come from local government
to provide a feasible alternative with officials whose communities are at risk
regard to their specific sectoral concern because of globalization, or allies who are
vis-à-vis what unbridled neoliberalism has ideologically against globalization killing
to offer. More important, there is a need off industries, or those who see that
to come together to put these concerns supporting the antiglobalization
within the bigger framework of movement would mean electoral votes.
development. These combinations were, for example,
The upside is that the situation provides seen in the Benguet vegetable industry,
political opportunities for civil society to where “rifts among elites could provide
engage the state at both the local and movements occasions to influence
national levels. This can be best attributed policymaking” and “the presence or
to the current democratic dispensation, absence of influential allies, such as the
which, despite its shortcomings, has elite, could also have direct impact on the
provided the space for state-civil society movement’s actions.” This is mainly
ANIB 55

because “elite allies possess resources and effect as seen in the telecommunications
political influence that movements lack industry, the reality is that state regulation
and could serve as indirect channels of alone cannot provide the necessary
access in the system” (Tarrow 1994) as countervailing force against market
was seen in the case studies. power. What is needed, therefore, is a fair
The study also reveals that the distribution of market power parallel to
industries that have more resources, e.g., the creation of an environment that
the hog and telecommunications discourages monopolistic behavior. This
industries, are in a better position to can only be attained once socioeconomic
engage the state because of the profits inequalities are addressed, which will lead
they bring to the economy. This is where to the empowering of the majority.
the state has to come in to provide the Where does that leave civil-society
balance by, for example, leveling the players? As earlier noted in the garment
playing field. One consolation, though, for industry, much is to be gained from
the marginal players is that the exploring political opportunity structures
competition between big industry players at the international level, and this may
who are in conflict with one another has also be true for the other sectors, which
provided a check and balance as seen in can learn from the experiences of others
the hog and telecommunications that have suffered or will suffer the same
industries. Ironically, the check and fate. Transnational activism is on the rise
balance does not come from the state and as such, some issues, e.g., workers
because of its patrimonial character, i.e., rights, have been mainstreamed into
dispenser of patronage politics, which can international policymaking. There is also
be attributed to the elite capture of the still much to be desired in empowering
state. In all these experiences, one the stakeholders not only in terms of the
witnesses not the retreat of the state but need to organize but also in terms of the
the state as a major actor of contention resources available.
for the different civil-society players The anchor of all of these is the push
affected by globalization. for further democratization, i.e., the
Nevertheless, the state is still the major enlargement of the space that would allow
arena of contention to confront the not only state-civil society engagement
adverse effects of liberalization. But but also state-civil society cooperation
despite the importance of the state, it also vis-à-vis the onslaught of globalization.
has its limitations, as seen in its Such engagement and cooperation have
helplessness in the face of the FMD to take into consideration the similarities
outbreak. Executive orders as well as the and differences in the impact of
competence of legislators also have their globalization on the various sectors. The
limitations. Furthermore, as the case success of civil society in engaging the
studies also reveal, the hands of the state state has much to do with taking
to go against the tide of liberalization are advantage of the political opportunities
tied, particularly in situations where it had and in mobilizing available resources in
already signed agreements to open up the advocating what they perceive to be the
country’s economy. One, therefore, has to best for the public good. Thus, much of
acknowledge the presence of “exogenous the role of civil society is to monitor the
factors that enhance or inhibit prospects changes in political opportunity structures
for mobilization, for particular sorts of and to determine which among the various
claims to be advanced rather than others, situations encourage or discourage their
for particular strategies of influence to be advocacy and, most of all, discern when
exercised, and for movements to affect or how struggles could lead to actual
mainstream institutional politics and reforms (Tarrow 1994). As can be gleaned
policy” (Meyer and Minkoff 2004: 1457- from the case studies, their success may
58). And as for situations in which mean incremental gains not only for their
globalization brings about a positive specific sectors but for the advancement
56 ANIB

of the country’s development and of globalization is felt, until there are no


democratization process. longer excuses.
The long-term objective of all of these
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