ECONOMICS, TAXATION, AND LAND
 DECREASE IN THE REAL VALUE OF MONEY AND
REFORM
CHAPTER 10
THE BUSINESS CYCLE
 FLUCTUATIONS IN THE LEVEL OF ECONOMIC
ACTIVITY ALTERNATING BETWEEN PERIODS OF
DEPRESSION AND BOOM CONDITIONS.
FOUR PHASES OF BUSINESS CYCLE
 PEAK OR BOOM
o THE ECONOMY IS AT FULL EMPLOYMENT
 RECESSION
o DOWNTURN IN THE BUSINESS CYCLE
 TROUGH
o THE LEVEL OF GDP “BOTOOM OUT”
 RECOVERY
o UPTURN IN THE BUSINESS CYCLE
UNEMPLOYMENT
 REFERS TO THE UNEMPLOYED LABOR SOURCE
MEASURED BY THE UNEMPLOYMENT RATE
DURING A PERIOD OF TIME.
 TYPES OF UNEMPLOYMENT
o FRICTIONAL UNEMPLOYMENT
 WORKER MOVES FROM ONE JOB TO
ANOTHER
o STRUCTURAL UNEMPLOYMENT
 CAUSED BY A MISMATCH BETWEEN JOB
OFFERED BY EMPLOYEES AND
POTENTIAL WORKERS.
o CYCLICAL UNEMPLOYMENT
 UNEMPLOYMENT RATE RISES BUT
IMPROVES WHEN THE ECONOMY
RECOVERS DURING RECESSION
o SEASONAL UNEMPLOYMENT
INFLATION
 BROADLY BASED RISE IN THE PRICE LEVEL
 THE RISE IN THE GENERAL LEVEL OF PRICES OF
GOODS AND SERVICES IN AN ECONOMY OVER A
PERIOD OF TIME.
 USUALLY MEASURED BY CONSUMER PRICE
INDEX (CPI)
NEGATIVE EFFECTS OF INFLATION
OTHER MONETARY ITEMS OVERTIME
 DECREASE INVESTMENT AND SAVING
 LEAD TO SHORTAGES OF GOODS IF
CONSUMERS BEGIN HOARDING OUT OF
CONCERN THAT PRICES WILL RISE IN THE
FUTURE
POSITIVE EFFECTS OF INFLATION
 MITIGATION OF ECONOMIC RECESSIONS
 DEBT RELIEF BY REDUCING THE REAL LEVEL OF
DEBT
THEORIES OF INFLATION
 DEMAND-PULL INFLATION
o A RISE IN THE GENERAL PRICE LEVEL
RESULTING FROM AN EXCESS OF
AGGREGATE DEMAND
o OFTEN EXPRESSED AS ‘TOO MUCH MONEY
CHASING TOO FEW GOODS’
o USUALLY OCCURS AT OR NEAR FULL
EMPLOYMENT, WHEN THE ECONOMY IS
OPERATING AT OR NEAR FULL CAPACITY
 COST-PUSH INFLATION
o A RISE IN THE GENERAL LEVEL OF PRICES
RESULTING FROM AN INCREASE RATE IN
THE COST OF PRODUCTION
CHAPTER 11
FISCAL POLICY
 THE USE OF GOVERNMENT SPENDING AND
TAXES TO INFLUENCE THE NATION’S SPENDING,
EMPLOYMENT AND PRICE LEVEL
 THE MANIPULATION OF THE NATIONAL
GOVERNMENT BUDGET TO ATTAIN PRICE
STABILITY, RELATIVELY FULL EMPLOYMENT,
AND A SATISFACTORY RATE OF ECONOMIC
GROWTH
 AN INSTRUMENT OF DEMAND MANAGEMENT
WHICH SEEKS TO INFLUENCE THE LEVEL OF
ECONOMIC ACTIVITY IN AN ECONOMY
THROUGH THE CONTROL OF TAXATION AND
GOVERNMENT SPENDING
DISCRETIONARY FISCAL POLICY
 DELIBERATE USE OF CHANGE IN GOVERNMENT
SPENDING OR TAXES TO ALTER AGGREGATE
DEMAND AND STABILIZE THE ECONOMY
 TYPES:
o EXPANSIONARY
o CONTRACTIONARY
EXPANSIONARY FISCAL POLICY
 THE GOVERNMENT CAN UNDERTAKE ANY OF
THE FOLLOWING WAYS:
o INCREASE IN GOVERNMENT SPENDING,
DECREASE TAXES, OR INCREASE
GOVERNMENT SPENDING AND TAXES
EQUALLY
CONTRACTIONARY FISCAL POLICY
 THE GOVERNMENT CAN DO EITHER OF THE
FOLLOWING WAYS:
o DECREASE GOVERNMENT SPENDING,
INCREASE TAXES, OR DECREASE
GOVERNMENT SPENDING AND TAXES
EQUALLY.
KEY POINTS:
 DEPARTMENT OF FINANCE (DOF) IS THE FISCAL
AUTHORITY IN PHILIPPINES
 DOF CAN EMPLOY A NUMBER OF TAXATION
MEASURES TO CONTROL AGGREGATE DEMAND
OR PUBLIC SPENDING
 DIRECT TAXES TO INDIVIDUALS AND
COMPANIES CAN BE INCREASED IF HOUSEHOLD
SPENDING NEEDS TO BE REDUCED SO AS TO
REDUCE INFLATION
 HOUSEHOLD SPENDING CAN BE REDUCED BY
INCREASING INDIRECT TAXES, AN INCREASE IN
VAT ON PRODUCTS, OR AN INCREASE IN EXCISE
DUTIES ON PARTICULAR PRODUCTS SUCH AS
OIL, DISTILLED PRODUCTS AND WINES, AND
CIGARETTES WILL, BY INCREASING THEIR PRICE
LEAD TO A REDUCTION IN PURCHASING
POWER.
 TAXATION AND GOVERNMENT SPENDING ARE
LINKED TOGETHER IN TERMS OF THE
GOVERNMENT’S OVERALL FISCAL OR BUDGET
POSITION.
 THE APPLICATION OF FISCAL POLICY AS A
SHORT-TERM STABILIZATION TECHNIQUE
ENCOUNTERS A NUMBER OF PROBLEMS WHICH
REDUCE ITS EFFECTIVENESS.
MONETARY POLICY
 A MACROECONOMIC POLICY WHICH INVOLVES
THE REGULATION OF THE MONEY SUPPLY,
CREDIT AND INTEREST RATES IN ORDER TO
CONTROL THE LEVEL OF SPENDING IN THE
ECONOMY.
 PARTICULAR ACTION OR MEASURE TAKEN BY
THE CENTRAL BANK (BSP) TO INFLUENCE THE
GENERAL PRICE LEVEL AND LEVEL OF LIQUIDITY
IN THE ECONOMY.
 TYPES:
o EXPANSIONARY
o CONTRACTIONARY
BANGKO SENTRAL NG PILIPINAS (BSP)
 PROMOTE A LOW AND STABLE INFLATION
CONDUCTIVE TO A BALANCED AND
SUSTAINABLE ECONOMIC GROWTH.
 THEIR MONETARY ACTIONS ARE AIMED AT
INFLUENCING THE TIMING, COST AND
AVAILABILITY OF MONEY AND CREDIT, AS WELL
AS OTHER FINANCIAL FUNCTIONS, FOR THE
MAIN OBJECTIVE OF STABILIZING THE PRICE
LEVEL.
EXPANSIONARY MONETARY POLICY
 REFERS TO A MONETARY POLICY SETTING THAT
INTENDS TO INCREASE THE LEVEL OF
LIQUIDITY/MONEY SUPPLY IN THE ECONOMY
AND WHICH COULD ALSO RESULT IN A
RELATIVELY HIGHER INFLATION PATH FOR THE
ECONOMY.
o LOWERING OF POLICY INTEREST RATES
o REDUCTION OF RESERVE REQUIREMENTS
 TENDS TO ENCOURAGE ECONOMIC ACTIVITY AS
MORE FUNDS ARE MADE AAILABLE FOR
LENDING BY BANKS TO BUSINESS INVESTORS.
 USUALLY UNDERTAKEN IN ORDER TO
COUNTERACT A SLOWDOWN IN THE ECONOMY.
CONTRACTIONARY MONETARY POLICY
 MONETARY POLICY SETTING THAT INTENDS TO
DECREASE THE LEVEL OF LIQUIDITY/MONEY
SUPPLY IN THE ECONOMY AND WHICH COULD
ALSO RESULT IN A RELATIVELY LOWER
INFLATION PATH FOR THE ECONOMY
 o INCREASE IN POLICY INTEREST RATES AND
RESERVE REQUIREMENTS
 TENDS TO LIMIT ECONOMIC ACTIVITY AS LESS
FUNDS ARE MADE AVAILABLE FOR LENDING BY
BANKS TO BUSINESS INVESTORS.
 USUALLY EMPLOYED TO LIMIT THE TENDENCY
OF THE ECONOMY TO OVERHEAT BECAUSE OF
INCREASE IN AGGREGATE SPENDING
KEY POINTS:
 MONETARY POLICY OF THE GOVERNMENT
TRIES TO MANIPULATE THE MONEY SUPPLY.
o MONEY SUPPLY REFERS TO THE AMOUNT
OF MONEY IN CIRCULATION IN THE
ECONOMY.
o COMPOSITION:
 M1 – CONSISTS OF CURRENCY IN
CIRCULATION AND PESO DEMAND
DEPOSITS
 M2 – BROAD MONEY, M1+PESO
SAVINGS AND TIME DEPOSITS
 M3 – BROAD MONEY LIABILITIES,
M2+PESO DEPOSIT SUBSTITUTES (SUCH
AS PROMISORY NOTES ETC.)
 M4 – M3+TRANSFERABLE AND OTHER
DEPOSITS IN FOREIGN CURRENCY.
 VARIOUS INSTRUMENTS USED BY THE BSP TO
ACHIEVE THE DESIRED LEVEL OF MONEY SUPPLY
ARE REFERRED TO AS MONETARY POLICY
INSTRUMENTS. THIS INCLUDE:
o RAISING (REDUCING) THE BSP’S POLICY
INTEREST RATES;
o INCREASING (DECREASING) THE RESERVE
REQUIREMENT;
o ENCOURAGING (DISCOURAGING) DEPOSITS
IN THE SPECIAL DEPOSIT ACCOUNT (SDA)
FACILITY BY BANKS AND TRUST ENTITIES OF
BSP-SUPERVISED FINANCIAL INSTITUTIONS;
o INCREASING (DECREASING) ITS
REDISCOUNT RATE ON LOANS EXTENDED
TO BANKING INSTITUTIONS ON A SHORT-
TERM BASIS AGAINST ELIGIBLE
COLLATERALS OF BANKS’ BARROWERS;
o OUTRIGHT SALES (PURCHASES) OF THE
BSP’S HOLDINGS OF GOVERNMENT
SECURITIES.
 THE BSP’S PRIMARY MONETARY POLICY
INSTRUMENTS ARE THE OVERNIGHT REVERSE
REPURCHASE (BORROWING) RATE AND THE
OVERNIGHT REPURCHASE (LENDING) RATE.
CHAPTER 12
TAX
 LIFEBLOOD OF THE GOVERNMENT
 USED BY THE GOVERNMENT TO PROVIDE ITS
SERVICES TO THE PEOPLE LIKE PUBLIC WORKS
AND HIGHWAYS, HEALTH, EDUCATION,
DEFENSE AND POLICE PROTECTION, SOCIAL
SERVICES, AMONG OTHERS.
 A LEVY IMPOSED BY THE GOVERNMENT ON THE
INCOME, WEALTH AND CAPITAL GAINS OF
PERSONS OR BUSINESSES, ON SPENDING ON
GOODA AND SERVICES, AND ON PROPERTIES
TAXATION
 ACT OF LEVYING TAX THAT IS THE PROCESS OR
MEANS BY WHICH THE SOVEREIGN, THORUGH
ITS LAW-MAKING BODY, RAISES INCOME TO
DEFRAY THE NECESSARY EXPENSES OF THE
GOVERNMENT.
 INHERENT POWER OF THE STATE TO DEMAND
ENFORCED CONTRIBUTIONS FROM THE PEOPLE
FOR PUBLIC PURPOSES.
KEY POINTS:
 TAXES ARE USED BY THE GOVERNMENT FOR A
VARIEY OF PURPOSES:
o TO RAISE FOR THE GOVERNMENT TO
COVER ITS OWN EXPENDITURE ON THE
PROVISION OFSOCIAL SERVICES SUCH AS
EDUCATION, HEALTH, PUBLIC
INFRASTRUCTURES, ETC. AS WELL AS THE
SALARIES AND BENEFITS OF PUBLIC
SERVANTS;
o AS AN INSTRUMENT OF FISCAL POLICY IN
REGULATING THE LEVEL OF TOTAL
SPENDING
o TO ALTER THE DISTRIBUTION OF INCOME
AND WEALTH
o TO CONTROL THE VOLUME OF IMPORTS
INTO THE COUNTRY
TYPES OF TAXES
 DIRECT TAXES
o TAXES BY INCOME AND WEALTH RECEIVED
BY HOUSEHOLDS AND BUSINESSES IN
 ORDER TO RAISE GOVERNMENT REVENUE
AND AS AN INSTRUMENT OF FISCAL POLICY.
o INDIVIDUAL INCOME TAXES – TAXES ON
PARTICULAR PERSONS.
o CORPORATE INCOME TAX – TAXES FROM
EARNED PROFIT.
 INDIRECT TAXES
o TAXES FROM GOODS AND SERVICES (VAT)
o CONSUMER IS THE TAX PAYER
 PROGRESSIVE TAXES
o TAXES THAT HAS GREATER BURDEN ON THE
RICH THAN THE POOR.
o THE MORE THEY EARN, THE MORE TAX
PERCENTAGE THEY PAY.
 PROPORTIONAL TAXES
o EQUAL BURDEN ON RICH, MIDDLE CLASS
AND POOR.
o SAME TAX INCREMENT PERCENTAGE IN ALL
CLASSES
 REGRESSIVE TAXES
o GREATER BURDEN ON THE POOR THAN
RICH.
BASIC PRINCIPLES OF TAXATION
(ADAM’S SMITH CANONS OF TAXATION)
 ADEQUACY
o TAXES SHOULD BE JUST ENOUGH TO
GENERATE REVENUE REQUIRED FOR
PROVISION OF ESSENTIAL PUBLIC SERVICES
LIKE HEALTH, EDUCATION, AND NATIONAL
DEFENSE AND POLICE PROTECTION
 BROAD BASING
o TAXES SHOULD BE SPREAD OVER AS WIDE
AS POSSIBLE TO ALL SECTORS OF THE
POPULATION OR ECONOMY SO AS TO
MINIMIZE THE INDIVIDUAL TAX BURDEN.
 COMPATIBILITY
o TAXES SHOULD BE COORDINATED TO
ENSURE TAX NEUTRALITY AND OVERALL
OBJECTIVES OF GOOD GOVERNANCE
 CONVENIENCE
o TAXES SHOULD BE ENFORCED IN A
MANNER THAT FACILITATES VOLUNTARY
COMPLIANCE TO THE MAXIMUM EXTENT
POSSIBLE
 EARNMARKING
o TAXES SHOULD BE DEDICATED TO A
SPECIFIC PURPOSE ONLY WHEN THERE IS A
DIRECT COST-AND-BENEFIT LINK BETWEEN
THE TAX SOURCE AND THE EXPENDITURE,
SUCH AS USE OF MOTOR USERS’ TAX FOR
ROAD MAINTENANCE.
 EFFICIENCY
o TAX COLLECTIONS SHOULD NOT COST AN
INORDINATELY HIGH PERCENTAGE OF TAX
REVENUES
 EQUITY
o TAXES SHOULD EQUALLY BURDEN ALL
INDIVIDUALS AND ENTITIES IN SIMILAR
ECONOMIC CIRCUMSTANCES.
 NEUTRALITY
o TAXES SHOULD NOT FAVOR ANY ONE
GROUP OR SECTOR OVER ANOTHER, OR
SDHOULD NOT BE DESIGNED TO INTERFERE
WITH OR INFLUENCE INDIVIDUAL DECISION
MAKING
 PREDICTABILITY
o COLLECTION OF TAXES SHOULD REINFORCE
THEIR INEVITABILITY AND REGULARITY
 RESTRICTED EXEMPTIONS
o TAX EXEMPTIONS MUST ONLY BE FOR
SPECIFIC PURPOSES
 SIMPLICITY
o TAX ASSESSMENT AND DETERMINATION
SHOULD BE EASY TO UNDERSTAND BY AN
AVERAGE TAXPAYER
APPROACHES TO TAXATION
 ABILITY TO PAY
o TAXES SHOULD BE LEVIED ACCORDING TO
AN INDIVIDUALS’ ABILITY TO PAY
o BASIS FOR PROGRESSIVE TAXATION
 BENEFIT APPROACH
o TAXES SHOULD BE LEVIED BROADLY IN
RELATION TO THE BENEFITS THAT PEOPLE
RECEIVE IN PUBLIC SERVICES
o PROBLEM IS PUBLIC SERVICES A TAXPAYER
USES IS NOT NECESSARILY EQUAL TO THE
TAX THEY PAY
 TAX INCIDENT APPROACH
o ANALYZING THE EFFECT OF A PARTICULAR
TAXX ON THE DISTRIBUTION OF TAX
WELFARE.
CHAPTER 13 3. INCOME AND LIVING STANDARDS
- AGRARIAN REFORM MEASURES INCREASE
AGRARIAN REFORM THE PRODUCTIVITY AND THUS RESULTS TO
RISE IN INCOME OF RURAL FARMERS
 RECTIFICATION OF THE WHOLE SYSTEM OF
WHICH WILL IN TURN IMPROVE THE LIVING
AGRICULTURE.
STANDARD OF RURAL PEOPLE
 NORMALLY DONE BY THE GOVERNMENT
4. EMPLOYMENT
WHERE IT REDISTRIBUTES THE AGRICULTURAL
- INTRODUCTION OF NEW TECHNOLOGY
LANDS AMONG THE FARMERS OF THE
MAY BRING ABOUT DISPLACEMENT OF
COUNTRY.
LABOR.
 CONCERNED WITH THE RELATION BETWEEN
5. INVESTMENT AND CAPITAL FORMATION
PRODUCTION AND DISTRIBUTION OF LAND
- AGRARIAN REFORM CAN CHANGE THE
AMONG THE FARMERS.
LABOR-CAPITAL RATIO THAT IS NEEDED FOR
 ALSO CONCERNED WITH THE PROCESSING OF
ANY ECONOMIC DEVELOPMENT
THE RAW MATERIALS THAT ARE PRODUCED BY
6. IMPARTIALITY IN RURAL POPULATION
FARMING THE LAND FROM THE RESPECTIVE
- LAND IS REDISTRIBUTED FROM THE BIG
INDUSTRIES.
LANDOWNERS TO THE SMALL AND
 COMPRISES NOT ONLY LAND REFORM BUT
MARGINAL FARMERS
ALSO THE REFORM AND THE DEVELOPMENT OF
COMPLIMENTARY INSTITUTIONAL
MEASURES OF THE AGRARIAN REFORM
FRAMEWORKS, RURAL EDUCATION, AND
SOCIAL WELFARE INSTITUTIONS.
1. PUBLIC HEALTH PROVISIONS
2. FAMILY PLANNING
LAND REFORM
3. EDUCATION AND TRAINING OF FARMERS
 FULL RANGE OF MEASURES THAT MAY OR
4. REORGANIZATION OF LAND REFORM AGENCIES
SHOULD BE TAKEN TO IMPROVE OR REMEDY
5. APPLICATION OF LABOR LAWS TO
THE DEFECT IN THE RELATIONS AMONG MEN
AGRICULTURAL WORKERS
WITH RESPECT TO THE RIGHS IN THE USE OF
6. CONSTRUCTION AND INFRASTRUCTURE
LAND.
FACILITIES
 SET OF INTEGRATED MEASURES DESIGNED TO 7. ORGANIZATION OF VARIOUS TYPES OF
ELIMINATE OBSTACLES TO ECONOMIC AND VOLUNTARY ASSOCIATIONS
SOCIAL DEVELOPMENT ARISING OUT OF 8. PROVIDE EMPLOYMENT OPPORTUNITIES FOR
DEFECTS IN THE AGRARIAN STRUCTURE. UNDEREMPLOYED OR SURPLUS RURAL LABOR
9. OTHER SERVICES WHICH ARE COMMUNITY
EFFECTS OF AGRARIAN REFORM DEVELOPMENT IN NATURE

1. ON AGRICULTURAL PRODUCTIVITY IMPORTANCE OF AGRARIAN REFORM

- AGRARIAN REFORM MAY DECREASE THE
AGRICULTURAL PRODUCTIVITY IF
 FARMERS WHO SEEK TO UPLIFT THEIR LIVING
COLLECTIVIZATION AND LAND
CONDITIONS CAN SEEK THE AGRARIAN REFORM
FRAGMENTATION ARE INTRODUCED.
TO HELP THEM SECURE CAPITAL INVESTMENTS
- PRODUCTIVITY MAY BE ENHANCED BY THE
FOR NEW INDUSTRIES
USE OF NEW INPUTS AND TECHNOLOGY IN
 TO IMPROVE THE LIVES OF THE FARMERS BY
THE AGRICULTURAL PROCESS.
INCREASING THEIR PRODUCTION THAT WILL
2. ON POVERTY
FURTHER GENERATE EMPLOYMENT TO THE
- AGRARIAN REFORM CAN MINIMIZE THE
BENEFIT OF THE EVER-GROWING POPULATION
EXTENT OF POVERTY AND ALSO IMPROVE
OF THE COUNTRY
THE REAL PER CAPITA INCOME OF RURAL
 TO CREATE A STABLE AND SECURE SOCIETY
WORKERS
  TO BALANCE THE SOCIETY BY CORRECTING THE
SOCIAL INFRASTRUCTURE OF LAND LABORERS
AND SALARIED WORKERS, DWELLERS OF PUBLIC
LANDS, AND FARMERS WHO OWN FAMILY-SIZE
LANDS
AGRARIAN REFORM HISTORY
PRE-SPANISH PERIOD
 THIS PERIOD WAS BOUNTIFUL FOR EVERYONE
HAD ACCESS TO THE FRUITS OF THE SOIL.
 RICE WAS THE MEDIUM OF EXCHANGE
SPANISH PERIOD
 THE CONCEPT OF ROYAL LAND GRANTS OR
ENCOMIENDA SYSTEM WAS INTRODUCED
 TRIBUTE WAS COLLECTED BY ENCOMIENDEROS
FROM THE INDIOS (NATIVES)
FIRST PHILIPPINE REPUBLIC
 AGUINALDO DECLARED IN THE MALOLOS
CONSTITUTION HIS INTENTION TO CONFISCATE
LARGE ESTATES, ESPECIALLY SO-CALLED FRIAR
LANDS (1899)
 BUT WAS NEVER IMPLEMENTED DUE TO
SHORT-LIVED REPUBLIC.
AMERICAN PERIOD
 PHILIPPINE BILL OF 1902
o CEILINGS ON THE HECTARAGE OF PRIVATE
INDIVIDUALS AND CORPORATIONS THAT
MAY ACQUIRED
 16 has. FOR PRIVATE INDIVIDUALS
 1,024 has. FOR CORPORATIONS
 LAND REGISTRATION ACT OF 1902
o ACT NO. 496
o COMPREHENSIVE REGISTRATION OF LAND
TITLES UNDER TORRENS SYSTEM
 PUBLIC LAND ACT OF 1903
o HOMESTEAD SYSTEM IN THE PHILIPPINES
 RICE SHARE TENANCY ACT OF 1933
o ACT NO. 4054
o REGULATED THE RELATIONSHIPS BETWEEN
LANDOWNERS AND TENANTS OF RICE
LANDS
o 50-50 SHARING OF CROPS
 SUGAR CANE TENANCY CONTRACTS ACT
o ACT NO. 4113
o REGULATED THE RELATIONSHIPS BETWEEN
LANDOWNERS AND TENANTS OF SUGAR
CANE LANDS
o 50-50 SHARING OF CROPS
COMMONWEALTH PERIOD
 1935 PHILIPPINE CONSTITUTION
o PROMOTION OF SOCIAL JUSTICE TO
ENSURE THE WELL-BEING AND ECONOMIC
SECURITY OF ALL PEOPLE SHOULD BE THE
CONCERN OF THE STATE.
 COMMONWEALTH ACT NO. 178
o AMENDMENT TO RICE TENANCY ACT NO.
4045
o PASSED ON NOVEMBER 13, 1936
o PROVIDED FOR CERTAIN CONTROLS IN THE
LANDLORD-TENANT RELATIONSHIPS
 NATIONAL RICE AND CORN CORPORATION
(NARIC), 1936
o WHICH ESTABLISHED THE PRICE OF RICE
AND CORN THEREBY HELPING THE POOR
TENANTS AS WELL AS THE CONSUMERS
 COMMONWEALTH ACT NO. 461, 1937
o APPROVAL OF TENANCY DIVISION OF THE
DEPARTMENT OF JUSTICE.
 RURAL PROGRAM ADMINISTRATION
o MARCH 2, 1939
o PROVIDED FOR THE PURCHASE AND LEASE
OF HACIENDAS AND THEIR SALE AND LEASE
TO THE TENANTS
 COMMONWELATH ACT NO. 441
o JUNE 3, 1939
o CREATION OF NATIONAL SETTLEMENT
ADMINISTRATION WITH A CAPITAL STOCK
OF P20,000,000
JAPANESE PERIOD
 HUKBO NG BAYAN LABAN SA HAPON
(HUKBALAHAP) CONTROLLED THE CENTRAL
LUZON AND LANDLORDS WHO SUPPORTED THE
HUKS, EARNED FIXED RENTALS IN FAVOR OF
THE TENANTS.
 PEASANTS AND WORKERS ORGANIZATIONS
GREW IN STRENGTH UPON THE ARRIVAL OF
JAPANESE IN 1942
AGRARIAN REFORMS AFTER COLONIZATIONS
MANUEL A. ROXAS (1946-1948)
 REPUBLIC ACT NO. 34
o RICE TENANCY ACT OF 1946
o 70-40 SHARING ARRANGEMENTS AND
REGULATING SHARE-TENANCY CONTRACTS
 REPUBLIC ACT NO. 55
o MORE EFFECTIVE SAFEGUARD AGAINST
ARBITRARY EJECTMENT OF TENANTS.
ELPIDIO QUIRINO (1948-1953)
 EXECUTIVE ORDER NO. 355
o OCTOBER 23, 1950
o REPLACED THE NATIONAL LAND
SETTLEMENT ADMINISTRATION WITH LAND
SETTLEMENT DEVELOPMENT
CORPORATION (LADESCO)
 TOOK OVER RESPONSIBILITIES OF THE
AGRICULTURAL MACHINERY
EQUIPMENT CORPORATION AND THE
RICE AND CORN PRODUCTION
ADMINISTRATION
RAMON MAGSAYSAY (1953-1957)
 REPUBLIC ACT NO. 1160, 1954
o ABOLISHED THE LAND SETTLEMENT
DEVELOPMENT CORPORATION (LASEDECO)
o ESTABLISHMENT OF NATIONAL
RESSETLEMENT AND REHABILITATION
ADMINISTRATION (NARRA)
 TO RESETTLE DISSIDENTS AND
LANDLESS FARMERS
 PARTICULARLY AIMED AT REVEL
RETURNEES PROVIDING HOME LOTS
AND FARMLANDS IN PALAWAN AND
MINDANAO.
 REPUBLIC ACT NO. 1400, 1955
o LAND REFORM ACT OF 1955
o CREATION OF LAND TENURE
ADMINISTRATION
 RESPONSIBLE FOR ACQUISITION AND
DISTRIBUTION OF LARGE TENANTED
RICE AND CORN LANDS OVER 200 has.
FOR INDIVIDUALS AND 600 has. FOR
CORPORATIONS
 REPUBLIC ACT NO. 821
o CREATION OF AGRICULTURAL CREDIT
COOPERATIVE FINANCING
ADMINISTRATION
 PROVISION OF LOANS WITH LOW
INTEREST RATES OF 6-8% PER ANNUM
FOR SMALL FARMERS AND SHARE
TENANTS
CARLOS P. GARCIA (1957-1961)
 CONTINUED THE PROGRAM OF MAGSAYSAY
DIOSDADO MACAPAGAL (1961-1965)
 REPUBLIC ACT NO. 3844
o AGRICULTURAL LAND REFORM CODE
o AUGUST 8, 1963
o ABOLISHED SHARE TENANCY,
INSTITUTIONALIZED LEASEHOLD,
o SET RETENTION LIMIT OF 75 has.,
o INVESTED RIGHTS OF PRE-EMPTION AND
REDEMPTION FOR TENANT FARMERS
o PROVIDED FOR AN ADMINISTRATIVE
MACHINERY FOR IMPLEMENTATION
o INSTITUTIONALIZED A JUDICIAL SYSTEM OF
AGRARIAN CASES,
o INCORPORATED EXTENSION, MARKETING
AND SUPERVISED CREDIT SYSTEM OF
SERVICES OF FARMER BENEFICIARIES
FERDINAND MARCOS (1965-1986)
 PROCLAMATION NO. 1081
o SEPTEMBER 21, 1972
o USHERED THE PERIOD OF BAGONG
LIPUNAN (NEW SOCIETY)
o FIVE DAYS AFTER THE PROCLAMATION OF
MARTIAL LAW, THE ENTIRE COUNTRY WAS
PROCLAIMED A LAND REFORM AREA AND
SIMULTANEOUSLY THE AGRARIAN REFORM
PROGRAM WAS INSTITUTED.
 REPUBLIC ACT NO. 6389, 1971
o CREATION OF DEPARTMENT OF AGRARIAN
REFORM
 REPUBLIC ACT NO. 6390, 1971
o AGRARIAN REFORM SPECIAL ACCOUNT
FUND.
RAs 6389 & 6390 BOTH STRENGTHENS THE
POSITION OF FARMERS AND EXPANDED THE
SCOPE OF AGRARIAN REFORM
 PRESIDENTIAL DECREE NO. 2
o SEPTEMBER 26, 1972
 o DECLARED THE COUNTRY UNDER LAND
REFORM PROGRAM
o IT ENJOINED ALL AGENCIES AND OFFICES OF
THE GOVERNMENT TO EXTEND FULL
COOPERATION AND ASSISTANCE TO THE
DAR.
o ALSO ACTIVATED THE AGRARIAN REFORM
COORDINATING COUNCIL.
 PRESIDENTIAL DECREE NO. 27
o OCTOBER 21, 1972
o RESTRICTED LAND REFORM SCOPE TO
TENANTED RICE AND CORN LANDS AND SET
THE RETENTION LIMIT OF 7 has.
 THE AGRARIAN REFORM OF MARCOS
ADMINISTRATION HAS FOUR MAJOR PROGRAM
COMPONENTS
o LEASEHOLD OPERATION
o OPERATION LAND TRANSFER
o LAND CONSOLIDATION
o SETTLEMENTS
 THE MARCOS ADMINISTRATION HAS ALSO
FOCUSED ON THE INTENSIFIED
MODERNIZATION PROGRAM CENTERED ON THE
FORMATION OF COMPACT FARMS AND THE
DEVELOPMENT OF RESETTLEMENT AREAS
CORAZON C. AQUINO (1986-1992)
 1987 CONSTITUTION
o ARTICLE 2, SECTION 21.
 THE STATE SHALL PROMOTE
COMPREHENSIVE RURAL
DEVELOPMENT AND AGRARIAN
REFORM.
 EXECUTIVE ORDER NO. 228
o JULY 16, 2987
o FULL OWNERSHIP TO QUALIFIED FARMER-
BENEFICIARIES COVERED BY PD 27.
o DETERMINED THE VALUE REMAINING
UNVALUED RICE AND CORN LANDS SUBJECT
OF PD 27 AND PROVIDED FOR THE MANNER
OF PAYMENT BY THE FBs ABD MODE OF
COMPENSATION TO LANDOWNERS
 EXECUTIVE ORDER NO. 229
o MECHANISM FOR THE IMPLEMENTATION
OF COMPREHENSIVE LAND REFORM
PROGAM (CARP)
 PROCLAMATION NO. 131
o JULY 22, 1987
o INSTITUTED THE CARP AS A MAJOR
PROGRAM OF THE GOVERNMENT.
o PROVIDED FOR A SPECIAL FUND KNOWN AS
THE AGRARIAN REFORM FUND (ARF) WITH
AN INITIAL AMOUNT OF P50-B TO COVER
THE ESTIMATED COST OF THE PROGRAM
FORM 1987-1992.
 EXECUTIVE ORDER NO. 129-A
o JULY 26, 1987
o STREAMLINED AND EXPANDED THE POWER
AND OPERATIONS OF THE DAR
 REPUBLIC ACT NO. 6657
o JUNE 10, 1988 SIGNED; JUNE 15, 1988
EFFECTIVE
o COMPREHENSIVE LAND REFORM LAW
(CARL)
o INSTITUTED A COMPREHENSIVE AGRARIAN
REFORM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION PROVIDING THE
MECHANISM FOR ITS IMPLEMENTATION
AND FOR OTHER PURPOSES.
 EXECUTIVE ORDER NO. 405
o JUNE 14, 1990
o VESTED THE LAND BANK OF THE
PHILIPPINES THE RESPONSIBILITY TO
DETERMINE LAND VALUATION AND
COMPENSATION FOR ALL LANDS COVERED
BY CARP
 EXECUTUVE ORDER NO. 407
o JUNE 15, 1990
o ACCELERATED THE ACQUISITION AND
DISTRIBUTION OF AGRICULTURAL LAND;
PASTURE LANDS, FISHPONDS, AGRO-
FORESTRY LANDS, AND OTHER LANDS OF
THE PUBLIC DOMAIN SUITABLE FOR
AGRICULTURE
FIDEL V. RAMOS (1992-1998)
 “FAIRER, FASTER, AND MORE MEANINGFUL
IMPLEMENTATION OF THE AGRARIAN REFORM
PROGRAM”
 REPUBLIC ACT NO. 7881, 1995
o AMENDED CERTAIN PROVISIONS OF RA
6657 AND EXEMPTED FISHPODS AND
PRAWN FARMS FORM THE COVERAGE OF
CARP
 REPUBLIC ACT NO. 7905, 1995
o STRENGTHEN THE IMPLEMETATION OF
CARP
  EXECUTIVE ORDER NO. 363, 1997
o LIMITED THE TYPE OF LANDS THAT MAY BE
CONVERTED BY SETTING CONDITIONS
UNDER WHICH SPECIFIC CATEGORIES OF
AGRICULTURAL LAND ARE EITHER
ABSOLUTELY NON-NEGOTIABLE FOR
CONVERSION OR HIGHLY RESTRICTED FOR
CONVERSION
 REPUBLIC ACT NO. 8435, 1997
o AGRICULTURE AND FISHERIES
MODERNIZATION ACT
o PLUGGED THE LEGAL LOOPHOLES IN LAND
USE CONVERSION
 REPUBLIC ACT NO. 8532, 1988
o AGRARIAN REFORM FUND
o PROVIDED AND ADDITIONAL P50-B FOR
CARP AND EXTENDED ITS
IMPLEMENTATION FOR ANOTHER 10 YEARS
JOSEPH E. ESTRADA (1998-2001)
 EXECUTIVE ORDER NO. 151
o FARMERS’ TRUST FUND
o ALLOWED THE VOLUNTARY
CONSOLIDATION OF SMALL FARM
OPERATION INTO MEDIUM AND LARGE-
SCALE INTEGRATED ENTERPRISES THAT CAN
ACCESS LONG-TERM CAPITAL.
 MAGKASAKA PROGRAM
o MAGKABALIKAT PARA SA KAUNLARANG
AGRARYO
o THE DAT FORGED INTO JOINT VENTURES
WITH PRIVATE INVESTORS INTO AGRARIAN
SECTOR TO MAKE FBs COMPETITIVE
GLORIA M. ARROYO (2001-2010)
 LAND TENURE IMPROVEMENT
o DAR WILL REMAIN VIGOROUS IN
IMPLEMENTING LAND ACQUISITION AND
DISTRIBUTION COMPONENT OF CARP.
o THE DAT WILL IMPROVE LAND TENURE
SYSTEM THROUGH LAND DISTRIBUTION
AND LEASEHOLD.
 PROVISION OF SUPPORT SERVICES
o CARP NOT ONLY INVOLVES THE
DISTRIBUTION OF LANDS BUT ALSO
INCLUDED PACKAGE OF SUPPORT SERVICES
WHICH INCLUDES: CREDIT ASSISTANCE,
EXTENSION SERVICES, IRRIGATION
FACILITIES, ROADS AND BRIDGES,
MARKETING FACILITIES, AND TRAINING
AND TECHNICAL SUPPORT PROGRAMS.
 INFRASTUCTURE PROJECTS
o DAR WILL TRANSFORM THE AGRARIAN
REFORM COMMUNITIES (ARCs), AN AREA
FOCUSED AND INTEGRATED DELIVERY OF
SUPPORT SERVICES, INTO RURAL
ECONOMIC ZONES THAT WILL HELP IN THE
CREATION OF JOB OPPORTUNITIES IN THE
COUNTRYSIDE.
 KALAHI ARZONE
o THE KALAHI AGRARIAN REFORM (KAR)
ZONES ARE ALSO LAUNCHED. THESE ZONES
CONSIST OF ONE OR MORE MUNICIPALTIES
WITH CONCENTRATION OF ARC
POPULATION TO ACHIEVE GREATER AGRO-
PRODUCTIVITY
CHAPTER 13-B
REPUBLIC ACT NO. 3844
 AGRICULTURAL LAND REFORM CODE
 AUGUST 8, 1963
 PRESIDENT DIOSDADO MACAPAGAL
PROVISIONS
 TO ESTABLISH AND ENCOURAGE THE
FORMATION OF FAMILY-SIZED FARMS AS THE
BASIS FOR PHILIPPINE AGRICULTURE
 TO IMPROVE THE LIVES OF FARMERS BY
LIBERATING THEM FROM HARMFUL PRACTICES
SUCH AS ILLEGAL INTEREST RATES
 TO ENCOURAGE GREATER PRODUCTIVITY AND
INCREASE INCOME OF SMALL FARMERS
 TO APPLY LABOR LAWS EQUALLY REGARDLESS
OF STATUS
 TO PROVIDE A LAND SETTLEMENT PROGRAM
AND PROMOTE EQUITABLE DISTRIBUTION OF
LAND
 TO MAKE POOR FARMERS SELF-RELIANT,
RESPONSIBLE CITIZENS TO STRENGTHEN
SOCIETY
IMPERATIVES
 LAND REFORM WOULD INCREASE PRODUCTION
 IT WOULD PROVIDE FOR THE CAPITAL NEEDED
TO INDUSTRIALIZE
  LAND REFORM IS THE ANSWER TO THE
COMMUNIST CHALLENGE
 IT WOULD CORRECT THE PRESENT IMBALANCE
IN OUR SOCIETY
 IT WOULD MAKE DEMOCRACY TRULY
MEANINGFUL TO OUR PEOPLE
BILLS OF RIGHTS FOR AGRICULTURAL LABOR
COMPONENTS
 LAND DISTRIBUTION
o MOST EFFECTIVE WAY OF PROVIDING
SECURITY OF TENURE TO TILLERS OF THE
SOIL
 COMPANION MEASURES
o CREDIT AND MODERN AND BETTER
METHODS OF PRODUCTION
 CREATION AND DEVELOPMENT OF NEW SOCIAL
INSTITUTIONS TO ASSIST THE FARMERS
OBJECTIONS TO AGRARIAN REFORM
 FRAGMENTATION OF FARM-HOLDINGS
 SMALL FARMS UNECONOMIC
 SMALL LANDHOLDINGS INCLUDED
 AGRARIAN REFORM FAILED IN THE PAST
 RIGHT TO SELF-ORGANIZATION;
 RIGHT TO ENGAGE IN CONCERTED ACTIVITIES;
 RIGHT TO MINIMUM WAGE;
 RIGHT TO WORK FOR NOT MORE THAN EIGHT
HOURS;
 RIGHT TO CLAIM FOR DAMAGES FOR DEATH OR
INJURIES SUSTAINED WHILE AT WORK;
 RIGHT TO COMPENSATION FOR PERSONAL
INJURIES, DEATH OR ILLNESS; AND
 RIGHT AGAINST SUSPENSION OR LAY-OFF

BENEFICIARIES UNDER THE CODE:

 TENANTED FARMERS
 AGRICULTURAL WAGE EARNERS OR FARM
WORKERS
 SETTLERS INCLUDING MIGRANT WORKERS
 OWNER-CULTIVATORS OF LESS THAN FAMILY
SIZED FARMS

LAND COVERED BY THE CODE:

 TENANTED AREAS
 LANDED ESTATES
 OLD SETTLEMENT
 PROPOSED SETTLEMENTS

PHILIPPINE AGRARIAN PROBLEM

1. TWO IMPORTANT DIMENSIONS
- LAND & THE PEOPLE: AGRICULTURAL AND
SOCIAL
- PRODUCTIVITY & HUMAN RIGHTS
2. BASIC PROBLEM OF SOCIETY
3. QUESTION OF LAND DISTRIBUTION AND
UTILIZATION
- THE RIGHT TO OWN PROPERTY, UNIVERSAL
BUT LIMITED
- LAND IS NECESSARY FOR ALL HUMAN
BEINGS AND EVERYBODY HAS THE RIGHT
TO USE LAND FOR HIS SURVIVAL
- THE RIGHT TO USE IS GIVEN TO ALL
INDIVIDUALS BUT THE MATTER TO BE USED
IS LIMITED AND THE NUMBER OF USER
UNLIMITED