Duterte’s Foreign Policy Pivot and Its Impact on Philippine Trade and Investments: An International Political Economy Perspective

Abstract

Since the Philippines elected President Rodrigo Duterte in 2016, the country’s foreign policy seems to have become more uncertain. President Duterte’s mercurial personality and antagonistic tirades against the country’s traditional Western allies, including the United States (US) and the European Union (EU), and his statements of building closer ties with China and Russia, had changed the political and diplomatic tone of the Philippines overall. Certainly, the political relationship between the Philippines and the West has been changed by Duterte’s strong remarks against the US and EU. Has this change spilled over to the economy? The paper presents an international political economy framework in examining the impact of Duterte’s foreign policy pivot to the country’s foreign economic relations, focusing on trade and investment. The paper argues that Duterte’s foreign policy shift is mainly shaped by Duterte’s “politics of survival”. Not firmly anchored in any idea, norms, or interest that can clearly benefit the country, Duterte is unable to provide coherent guidance and leadership on the foreign policy pivot, particularly on the economy. Duterte’s lack of guidance provided the technocrats with the policy space to continue the policies from the previous administration and not to divert radically from previous economic policies. The stability of the economic institutions provided a refuge in the period of uncertainty. As a result, the foreign economic relations of the Philippines has not radically shifted. The trade and investment situation of the Philippines remained stable, and economic relations with traditional partners are maintained.

Do Filipinos Really Hate Duterte’s Leadership? Uncovering Duterte Controversies in the Philippines

“…However, critics of Duterte argued that his radicalism was dangerous and that it was undermining the Philippines' democracy and institutions. They also argued that Duterte's foreign policy was risking the country's security and sovereignty (Balboa 2020).…”

Are Filipinos Really Hate Duterte’s Leadership?

“…However, critics of Duterte argue that his radicalism is dangerous and that it is undermining the Philippines" democracy and institutions. They also argue that Duterte"s foreign policy is risking the country"s security and sovereignty (Balboa, 2020).…”

Sovereignty, Discipline, Governmentality, and Pastorate: The Ménage à Quatre of Contemporary Authoritarian and Right-Wing Populist Power

“…26, 55–62, 157; Weiss & Wallace, 2021, pp. 645–646, 648, 656–657) or the incessant emphasis to free national sovereign independence and power from external restrictions of the Trump administration (see Weiss, 2018), the Bolsonaro presidency in Brazil (see Casarões & Barros Leal Farias, 2022; Søndergaard & Campos, 2020), the Duterte presidency in the Philippines (see Balboa, 2020; Rafael, 2022, pp. 57–59), or the anti-European governments in Poland, Hungary, and Italy (see Brunazzo & Gilbert, 2017; Csehi & Zgut, 2021; Franzosi et al, 2015) represent almost ideal-typical examples of the circularity of sovereign power logics.…”