In the growing discussion of developmental prospects in the Philippines, this paper tries to bridge the gap in the relationship between international and local systems that operate in the country that is Neoliberalism and Feudalism. Scholars in systems theory mostly prefer the traditional notion that industrial development brought about by neoliberalism into the backward agricultural economy, contributes to the dismantling of that economy's feudalistic system. Neoliberalism as a world system operating under the context of class expression of imperialist states, has established its roots in the Philippines by the middle of 1980s, when the political climate has shifted from dictatorship to the liberal democratic framework.
The paper uses Marxist analysis of hegemony and Political Economy in asserting that both systems reinforce each other to serve the interest of foreign capital and local elite with the poor peasant communities at stake. In its assertion it tackles semi-feudalism, as defined by Amado Guerrero, as an output of the relationship between the two system and its impacts to the agriculture sector and the Philippine economy as a whole.