Foreign Engagement in the Global South: The Case of Arab Investments in the Philippines in the 21st Century

Abstract

This paper is a preliminary examination into the extent and nature of Arab investments in the Philippines, and describes the implications of these investments to both nations. This is cognizant of the fact that one of the main reasons for Arab investment is food security. A major underlying driver for the recent spate of interest in international investment in food production appears to be food security and a fear arising from the recent high food prices and policy-induced supply shocks that dependence on world markets for foods supplies or agricultural raw materials has become more risky. Thus, by engaging other countries through agricultural investments, the Arab nations increase their agricultural productivity that might address food insecurity caused by a booming population, limited arable lands, and climate change concerns, among others. By looking at the developmental implications of foreign investment to both countries—the investor and the receiver—we will see that international investment is a positive way to engage countries in mutual cooperation and solidarity.