Building economic resilience in the face of geopolitical shocks

The ongoing war in the Middle East has thrown a monkey wrench into the global economy in general, and the Philippines’ economic ambitions in particular. Suddenly, there is great uncertainty over the fate of a region that hosts millions of overseas Filipino workers. They made the sacrifice of leaving the comforts of home for a better-paying job in a foreign land. In the short term, they fear for their safety; in the longer term, they wonder how they will still be able to provide for their loved ones.

But we know only too well that even if we do not have any OFWs in our family, or rely on their remittances to fuel consumption, the conflict in the Middle East has a tangible effect on our daily living. Already, we are feeling the effects of higher prices of oil. We are told to brace ourselves for succeeding waves of price hikes. The costs of goods and services will inevitably follow.

These are developments in which neither we nor our leaders had an active hand. And yet, Filipinos are feeling the fallout of this global geopolitical crisis. Indeed, the reality of today’s interconnected global economy is that vulnerabilities rarely remain confined within borders.

Is there a way to shield ourselves from the corrosive effects of these external events? How do we make sure that our economy and our people continue to prosper whatever happens in the outside world?

One important lesson from the recent geopolitical disruptions is that economic resilience can no longer be pursued purely through domestic policy. In an interconnected world, resilience is strengthened through strategic partnerships with countries that share common interests in stability, secure supply chains, and responsible technological development.

It is within this context that the Stratbase Institute, together with the Asia Pacific Foundation of Canada, and in collaboration with the Embassy of Canada in the Philippines, recently convened policymakers, industry leaders, and experts to explore Philippines-Canada cooperation deeper.

The two countries are becoming increasingly aligned in recognizing that resilience in the face of uncertainty demands practical collaboration across strategic sectors. Thus, the growing synergy between Manila and Ottawa, specifically in areas crucial to establishing economic growth and resilience, was emphasized.

These areas are digital resilience, critical minerals and clean technology, and defense industrial development.

In the age of information and disinformation, digital resilience has emerged as a central pillar of the Philippines’ national development strategy. As connectivity expands and more citizens and businesses rely on online platforms for communication, commerce, and government services, the need for trusted digital systems becomes more urgent.

Strengthening digital data governance, investing in connectivity infrastructure, and ensuring secure data management are no longer optional. They are essential to economic competitiveness and national preparedness.

Canada’s leadership in artificial intelligence governance, cybersecurity standards, and data infrastructure development offers valuable insights for strengthening network resilience and ensuring that digital innovation proceeds responsibly.

The development of critical minerals and clean technology value chains is another area of focus. The Philippines has abundant mineral resources essential to the global energy transition, including copper, nickel, cobalt, and other inputs for battery production. However, maximizing these resources requires more than extraction. It demands investment in domestic processing, technological capability, and energy systems that support industrial activity.

Recent policy reforms aimed at streamlining permitting processes and improving the investment climate signal a strong commitment to unlocking the country’s mineral potential. Public-private partnerships and targeted incentives are expected to play an important role in mobilizing capital for large-scale projects. At the same time, partnerships with countries that have deep experience in responsible mining and resource governance can help ensure that development proceeds in a sustainable and inclusive manner.

Canada’s long-standing expertise in mining technology, environmental safeguards, and community engagement presents a natural complement to the Philippines’ resource endowment. Collaboration in processing facilities, clean energy deployment, and supply chain diversification can help both countries capture greater value from critical minerals while supporting global decarbonization goals.

Finally, and equally significant, is the growing importance of defense industrial collaboration in shaping economic security. As the Philippines recalibrates its strategic posture in response to evolving regional dynamics, it is increasingly shifting from a primarily internal security focus toward strengthening its external defense capabilities under the Comprehensive Archipelagic Defense Concept.

Efforts to strengthen domestic industrial capacity through the Self-Reliant Defense Program highlight the role of defense investments in supporting broader economic development. Building local capabilities in manufacturing and technology development can generate spillover benefits across civilian sectors, contributing to job creation, research advancement, and industrial competitiveness. Partnerships with trusted allies can facilitate technology transfer, joint capability development, and more secure defense supply chains.

The pursuit of economic resilience cannot — and should not — be undertaken by any country acting alone. Instead, it requires deliberate cooperation with like-minded partners like Canada that share its commitment to openness, innovation, and a rules-based international order.

The Philippines is well-positioned to leverage its core strengths. Its geostrategic location at the heart of key maritime routes, abundant natural resources, and dynamic young workforce provide strong foundations for deeper engagement with global partners. Legislative reforms and targeted policy measures aimed at improving the investment climate further enhance the country’s attractiveness as a hub for strategic cooperation.

All these contribute to our economic resilience, making us less vulnerable to global shocks and other events beyond our control.