Ena Josel F.

Portillo
enaportillo13@yahoo.com

ECONOMY
The wealth and

(NOUN)

resources of a country or region, esp. in terms of the production and consumption of goods and services.

www.webcrawler.com
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Economic Development Until 1970 At the time of independence in 1946, and in the aftermath of a destructive wartime occupation by Japan, Philippine reliance on the United States was even more apparent. To gain access to reconstruction assistance from the United States, the Philippines agreed to maintain its prewar exchange rate with the United States dollar and not to restrict imports from the United States. For a while the aid inflow from the United States offset the negative balance of trade, but by 1949, the economy had entered a crisis. The Philippine government responded by instituting import and foreign-exchange controls that lasted until the early 1960s.

 The Philippines found itself in an economic

crisis in early 1970, in large part the consequence of the profligate spending of government funds by President Marcos in his reelection bid. In September 1972, Marcos declared martial law, claiming that the country was faced with revolutions from both the left and the right. By the time Marcos fled the Philippines in February 1986, monopolization and corruption had severely crippled the economy. heavy borrowing from transnational commercial banks, multilateral organizations, and the United States and other countries 4

 In 1986 Corazon Aquino focused her presidential

campaign on the misdeeds of Marcos and his cronies. The economic correctives that she proposed emphasized a central role for private enterprise and the moral imperative of reaching out to the poor and meeting their needs. Reducing unemployment, encouraging smallscale enterprise, and developing the neglected rural areas were the themes. Aquino entered the presidency with a mandate to undertake a new direction in economic policy. The businesspeople and technocrats who directed the Central Bank and headed the departments of finance and trade and industry became the decisive voices in 5 economic decision making.

 Foreign policy also reflected this power relationship,

focusing on attracting more foreign loans, aid, trade, investment, and tourists. The President noted in her state-of- the-nation address in June 1989, the poor had not benefited from the economic recovery that had taken place since 1986. The gap between the rich and poor had widened, and the proportion of malnourished preschool children had grown.
The most pressing problem in the Philippine

international political economy at the time Aquino took office was the country's US$28 billion external debt.
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 The government intervened primarily

through fiscal and monetary policy and in the exercise of its regulatory authority. Although expansion of public sector enterprises occurred during the Marcos presidency, direct state participation in economic activity has generally been limited.
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 The responsibility for economic planning was vested in

the National Economic and Development Authority (created in January 1973), the authority assumed the mandate both for macroeconomic planning (that had been undertaken by its predecessor organization, the National Economic Council), and project planning and implementation, (previously undertaken by the Presidential Economic Staff). National Economic and Development Authority plans calling for the expansion of employment, maximization of growth, attainment of fiscal responsibility and monetary stability, provision of social services, and equitable distribution of income.
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Some of the GOALS.. alleviation of poverty generation of more productive employment promotion of equity and social justice attainment of sustainable economic growth Goals were to be achieved through.. agrarian reforms; strengthening the collective bargaining process; labor-intensive infrastructure projects; providing social services; and expanding education and skill training

 Is the government policy related revenue and

expenditure measure of the public budget taxation, and government spending.

Is the process by which the government control:

(i) the supply of money, (ii) cost and availability of credit , and (iii) rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy.

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 Fiscal and Monetary Policy is concerned

with money supply, these two are the most important component of a governments overall economic policy, and government use them in an attempt to maintain economic growth, high employment, and low inflation.
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 Privatization, also spelled privatisation, may have several

meanings. Primarily, it is the process of transferring ownership of a business, enterprise, agency, public service or public property from the public sector (a government) to the private sector, either to a business that operate for a profit or to a nonprofit organization. It may also mean government outsourcing of services or functions to private firms, e.g. revenue collection, law enforcement, and prison management Opposition Opponent of certain privatizations believe that certain public goods and services should remain primarily in the hands of government in order to ensure that everyone in society has access to them (such as law enforcement, basic health care, and basic education).
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 Performance. State-run industries tend to be bureaucratic. A political

government may only be motivated to improve a function when its poor performance becomes politically sensitive. Increased efficiency. Private companies and firms have a greater incentive to produce more goods and services for the sake of reaching a customer base and hence increasing profits. A public organization would not be as productive due to the lack of financing allocated by the entire government's budget that must consider other areas of the economy. Specialization. A private business has the ability to focus all relevant human and financial resources onto specific functions. A state-owned firm does not have the necessary resources to specialize its goods and services as a result of the general products provided to the greatest number of people in the population. Improvements. The government may put off improvements due to political sensitivity and special interests. Corruption. A state-monopolized function is prone to corruption; decisions are made primarily for political reasons, personal gain of the decision-maker , rather than economic ones. Corruption in a state-run corporation affects the ongoing asset stream and company performance.
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 Philippine agriculture plays a vital

role in the economy. Agriculture including forestry and fishery, plays a dominant role in the Philippine economy. The countrys population is predominantly rural (70 percent of the total) and twothirds of this population depends on farming for their livelihood. In terms of employment, about onehalf of the labor force is engaged in agricultural activities. Primarily, Philippine agriculture consisted of rice, corn, coconut, sugar, banana, livestock, poultry, other crops and fishery production activities.

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 The agriculture sector

Climatic conditions are a

makes up 12% of the GDP and employs 33% of the workforce. The type of activity ranges from small subsistence farming and fishing to large commercial ventures with significant export focus, such as major multinational corporations like Dole Food Company and Del Monte Foods.

major determinant of crop production patterns. For example, coconut trees need a constant supply of water and do not do well in areas with a prolonged dry season. Sugarcane, on the other hand, needs moderate rainfall spread out over a long growing period and a dry season for ripening and harvesting.
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 Republic Act (RA) 8178 or Agricultural

Tariffication Act -- removal of restrictions in the importation of food that include basic agricultural products such rice, onions, corn, potatoes, cabbage, and livestock that are being locally produced.

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Rice is the most important food crop, a staple food in most of the country. It is produced extensively in Luzon, the Western Visayas, Southern Mindanao, and Central Mindanao. Rice production in the country is important to the food supply in the country and economy. The country is the 8th largest rice producer in the world. 17

Regarding the strengthening of our agricultural sector: this has also been achieved. Just think: According to the NFA, in 2010, the country imported more than 2 million metric tons of rice. In 2011, this fell to 855,000 metric tons. In 2012: 500,000 metric tons. And now in 2013: the maximum we will import, including the private sector, will be the minimum access volume of 350,000 metric tons. This includes the 187,000 metric tons of reserve buffer stock in case typhoons arrive one after the other; in all likelihood, even the private sector will no longer have to import rice because we are still on track to becoming self-sufficient in rice.
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The Philippines is the world's second largest producer of coconut products, after Indonesia. Historically, the Southern Tagalog, Eastern Visayas and Bicol regions were the centers of coconut production. In the 1980s, Western Mindanao and Southern Mindanao also became important coconut-growing regions. Owners, often absentee, customarily employed local peasants to collect coconuts rather than engage in tenancy relationships. The villagers were paid on a piece-rate basis. Those employed in the coconut industry tended to be less educated and older than the average person in the rural labor force and earned lower-thanaverage incomes.

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According to research conducted in 2009, coconut farmers make up one of the poorest sectors in the country. Let us look at the process of growing coconuts: once planted, farmers wait seven years for the coconut tree to bear fruit; but after this, two generations will be able to benefit without doing anything else apart from harvesting the fruit. We have the potential to vastly grow the income of this sector if we can foster a culture that truly encourages hard work and productivity. The solution: intercropping.
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The government will help you to strengthen your coconut farms; but in exchange, you will be required to sow different kinds of seeds in between the rows of coconut trees. Doing so will raise the frequency of crop harvests, and depending on what they plant, their income will also increase. If they grow only coconuts, the farmers would earn about 20,000 pesos a year per hectare. But if they add coffee, they could reach about 172,400 pesos a year; if they add bananas, they could earn 102,325 pesos, while adding cacao would give them 89,000 pesos.
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In 2005, the Philippines is the 9th largest sugar producer in the world and 2nd largest sugar producer among the ASEAN countries second to Thailand according to Food and Agriculture Organization of the United Nations Statistics Division. At least 17 provinces located in 8 regions of the Philippine archipelago have grown sugarcane crops, of which Negros island accounts for half of the countrys total production .
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Land reform can, therefore, refer to transfer of ownership from the more powerful to the less powerful, such as from a relatively small number of wealthy (or noble) owners with extensive land holdings (e.g., plantations, large ranches, or agribusiness plots) to individual ownership by those who work the land. Such transfers of ownership may be with or without compensation; compensation may vary from token amounts to the full value of the land

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Land Lease Act -- use of land

by foreigners for as long as 25 to 50 years.

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If there is one topic my name is often associated with, that would have to be Hacienda Luisita. I would like to inform you that, back in February, in compliance with the decision of the Supreme Court, the Department of Agrarian Reform has completed the list of qualified beneficiaries for the land in Luisita. According to Secretary Gil Delos Reyes, the process to determine the beneficiaries lots began last week, and the turnover of these lots will begin in September As for other large tracts of land: we have long tasked the DAR, DENR, LRA, and Landbank to develop a framework for speeding up the parceling out of land. I would like to remind everyone: Correct data is the first step to the orderly implementation of CARPER. But we inherited a land records system that was problematic and defective. This is why, from the start, the DOJ, LRA, DENR, and DAR have worked to fix this system, and now we are at a point where we can guarantee: In the next year, all notices of coverage will have been served for lands covered by comprehensive agrarian reform
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Livestock are domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. Livestock are generally raised for profit. Raising animals (animal husbandry) is a component of modern agriculture. It has been practiced in many cultures since the transition to farming from hunter-gather lifestyles.

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Approximately 97.5 percent of the forest is owned by the Govt. and is administered by the Bureau of Forestry; 2.5 percent is privately owned. The greater bulk of the forest is in large blocks on the principal islands such as Luzon, Mindanao, Samar, Negros, and Palawan. Most of the forest is of the tropical rain type, complex in its composition. More than 3,000 species of trees attain a diameter of 30 centimeters (one foot) or more; however, less than sixty of these are marketed. Seventy-five percent of the stand consists of dipterocarps, commonly called lauan, to which "Philippine mahogany" belongs. As a source of raw materials and revenue to the Government, it can be managed to yield for a long time more 27 than it does in the present.

Source: Bureau of Forestry (DENR)

Closed A&D 35.72%

Plantation 5%

Mangrove 3.45% Open Plantation 56.23%

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The Philippines is surrounded by a vast aquatic resource base. However, the country's traditional fishing grounds constituted a relatively small 126,500-square km. area. Fish and other seafood provided more than half the protein consumed by the average Filipino household. Fishponds and Fish pens are also used nowadays to culture fish that somehow contribute to the 29 problems of our LAKE.

MANUFACTURING The Philippines, now considered a Newly Industrialized Country, has come a long way in terms of development in the manufacturing industry. In fact, in 2004 manufacturing contributed 24 percent of the GDP. The manufacturing sector accounts for a larger share of national income than agriculture, fishing, and forestry combined. However, more people are employed in those traditional sectors than in 30 manufacturing.

 Manufactured goods,

The bulk of manufacturing

however, have a different story having found a way to still make it up as a major component in Philippine exports: nearly 90 percent in the early 21st century. To put it simply, while the number of people employed in manufacturing jobs has not quite increased, the contribution of manufacturing to the national economy has rather increased remarkably.

is concentrated in the Manila area. The city is the principal point of entry for raw materials and other goods. It has a huge local market, a pool of skilled labor, and large financial institutionsalong with the presence of cultural institutions and the central government. The metropolitan area accounts for more than half of the total manufacturing employment.

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The country is rich with mineral and geothermal energy resources. In 2003, it produced 1931 MW of electricity from geothermal sources (27% of total electricity production), second only to the United States, and a recent discovery of natural gas reserves in the Malampaya oil fields of the island of Palawan is already being used to generate electricity in three gaspowered plants. Philippine gold, nickel, copper and 32 chromite deposits are among the largest in the world.

In the 1970s and 1980s, the Philippines sought growth and self-sufficiency in energy production. In 1972 the government altered the legal arrangements for oil exploration from concessions to a service contracts, and serious oil exploration began in the midand late 1970s. As a result of exploration in the Palawan-Sulu seabed, oil was discovered in the Nido oil field in 1976. Commercial production began in 1979 and yielded 8.8 million barrels. Successful wells also were drilled in the Cadlao and Matinloc fields off Palawan in 1981 and 1982, but the fields were relatively small.

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 RA 7942 or New Mining Code of 1995 --

opening of 25% of land area of the country for foreign exploitation. RA 8180 or the Downstream Oil Deregulation Act -- which will give entry to new players in the oil industry but does not dissolves the oil cartel or monopoly in the industry;
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BORACAY

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Tourism can drive significant business growth and increase revenue for companies operating in a certain place that tourist visited.
- georgia.org/industries/tourism

Tourism in the Philippines is a major economic contributor to the Philippine economy.

The Philippines is an archipelagic country composed of 7,107 islands. It offers a rich biodiversity with its tropical rainforests, mountains, beaches, coral reefs, islands, and diverse range of flora and fauna, making it as one of the mega diverse countries in the world.
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The improvement of our infrastructure is intertwined with the growth of our tourism industry. Consider this: In 2001, the Philippines recorded 1.8 million tourist arrivals. When we assumed office in 2010, this figure had grown to only around 3.1 million. Take note: Despite the length of their time in office, the previous administration only managed to add a mere 1.3 million tourist arrivalsand we contributed half a year to that number. Under our administration, we welcomed 2.1 million tourist arrivals by June 2012. More will arrive during peak season, before the end of the year, so I have no doubt that we will meet our quota of 4.6 million tourist arrivals for 2012. This means that we will have a year-on-year increase of 1.5 million tourists.

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A stronger tourism sector will generate more job opportunities. The DOT estimates that tourism created 3.8 million jobs in 2011. The truth is, it is not just our scenic and most famed destinations that will profit from the arrival of tourists, but also the nearby towns that can be considered tourism support communities: the places from which resorts and hotels source the food that they serve, the souvenirs that they sell, as well as other products and services that provide a source of income for our provinces.
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Rank /Country 2009 2010 1 South Korea 497,936 740,622 2 United States 582,537 600,165 3 Japan 324,980 358,744 4 China 155,019 187,446 5 Taiwan 102,274 142,455

2011 925,204 624,527 375,496 243,137 181,738

2012 1,031,155 652,626 412,474 250,883 216,511

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 Employment is a relationship between two

parties, usually based on a contract, one being the employer and the other being the employee. In the Philippines, private employment is regulated under the Labor Code of the Philippines by the Department of Labor and Employment while government employment is guided by the Civil Service Code of the Philippines.
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The largest union body was the Trade Union Congress of the Philippines (TUCP). Formed in December 1974, it was designated the official labor center of the Philippines by the Marcos government. Another labor organization, the Kilusang Mayo Uno (KMU), or the May First Movement, was formed in July 1980, bringing together nine broadly based, more ideologically oriented unions. The two major union centers represented sharply different visions of the role of unions in society. Although TUCP supported Marcos, it represented itself as a proponent of nonpolitical unionism, concerned primarily with the collective bargaining process. The KMU was more openly political, projecting itself as a proponent of "genuine, militant, and nationalist unionism.

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Our unemployment rate is declining steadily. In 2010, the unemployment rate was at 8 percent. In April 2011, it dropped to 7.2, and dropped further to 6.9 this year. Is it not an apt time for us to dream of a day where any Filipino who wishes to work can find a job? Look at the BPO sector. Back in the year 2000, only 5,000 people were employed in this industry. Fast forward to 2011: 638,000 people are employed by BPOs, and the industry has contributed 11 billion dollars to our economy. It has been projected that come 2016, the year I will bid you farewell, it will be bringing in 25 billion dollars and will be employing 1.3 million Filipinos. And this does not include the estimated 3.2 million taxi drivers, baristas, corner stores, canteens, and many others that will benefit from the indirect jobs that the BPO industry will create.
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 Individuals are said to be in absolute poverty when they

are unable to obtain at least a specified minimum of the food, clothing, and shelter that are considered necessary for continued survival. In the Philippines, two such minimums have been established. The poverty line is defined in terms of a least-cost consumption basket of food that provides 2,016 calories and 50 grams of protein per day and of nonfood items consumed by families in the lowest quintile of the population. In 1988 the poverty line for a family of six was estimated to be P2,709 per month. The subsistence level is defined as the income level that allows purchase of the minimum food requirements only.
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 The World Bank report

concluded, and many economists associated with the Philippines concurred, that the country's high population growth rate was a major cause of the widespread poverty, particularly in the rural areas. Implementation of a government-sponsored family-planning program, however, was thwarted by stiff opposition from the hierarchy of the Roman Catholic Church.

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International Trade International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP).
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 is a direct investment into production or business in a

country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Since 1980s, the Philippines have opened their economy to foreign markets, and established a network of free trade agreements with several countries. The United States is one of the Philippines top trading partner. In 2010, according to US Department of Commerce, trade between the Philippines and US amounts to US$15.4 billion.
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 http://www.fao.org http://www.forestry.denr.gov.ph http://georgia.org/industries/tourism http://www.photius.com/countries/philippines/geograph

y/index.html (Sources: The Library of Congress Country Studies) http://www.skyinet.net/~courage/position/private3.html http://www.webcrawler.com http://en.wikipilipinas.org/ http://en.wikipedia.org/
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