Saturday, 19 June 2021 9:43 PM

INTRODUCTION

ECONOMIC DEVELOPMENT

→ Process of improving quality of life of a nation, country, region, community

→ involves objectives such as social well-being, econ growth, sustainability
→ comes first before economic growth; development serves as the foundation
→ as long as there is improvement of quality of life of people in a certain area, that's a part of
economic development already
→ The process of:
○ Improving quality of life
○ Increasing labor production
○ Improvements in education system
○ Health
○ Infrastructure
○ Technological innovation

4 ECONOMIC SYSTEMS UNDER ECONOMIC DEVELOPMENT

1. traditional economy - relies on customs, history, and time-honored beliefs.

• the very basic - the old system
• transaction of goods and services is very
• basic because of no internet connection,
• advancement of technology

2. market economy - A market economy functions under the laws of supply and demand. It is
characterized by private ownership, freedom of choice, self-interest, optimized buying and
selling platforms, competition, and limited government intervention. Competition drives
the market economy as it optimizes efficiency and innovation. Market economies marginalize
those that are unable to compete, contributing to income inequality.

• there is free trade and competitions (in quality of goods)

• there is right to choose kung ano yung gustong produkto
• magagamit yung theory of comparative advantage - export product in which it has greatest
advantage, and exports product in which it has greatest disadvantage
• if there is abundance of goods, we have the chance to export to other countries; if we
cannot produce, we should import

3. command economy - system where the government, rather than the free market,
determines what goods should be produced, how much should be produced, and the price at
which the goods are offered for sale. It also determines investments and incomes.

• Known as communism
• government controls everything; state provide goods and services to each people
• characteristics: no free trade, no free enterp, no free exchange, no competition no
• economic freedom
• so far, there is no country under command economy.
• China, USSR, etc. not yet 100%

4. mixed economy - preserves private property

and allows a degree of economic independence
in capital use but also enables governments to
intervene in economic activities to accomplish
social goals.
• combination of capitalism and socialism
• capitalism - big corp controls business and
• its main objective is raise profit

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Saturday, 19 June 2021 10:35 PM

MAIN OBJECTIVE OF ECONOMIC DEVELOPMENT

to improve quality of life by increasing per
capita income- because this serves as
measurement of stability and wealth within the
economy of a country

ECONOMICS
→ branch of social sciences concerned with production, distribution, consumption of goods and
services
production - creation
distribution - part of producer, distribute
consumption - final utilization

DEVELOPMENT
→ is a process that creates growth, progress, positive change or the addition of physical, economic,
environmental, social and demographic components.
→ Economic developments is all about improving leading standards
→ process that creates the ff:

1. growth
2. progress
3. positive change
4. additional of physical economics
5. changes in environmental
6. changes in social
7. changes in demographic components
8. rises in level and quality of life of population
9. creation or expansion of local regional
10. income
11. employment opportunities

3 CORE VALUIES OF DEVELOPMENT

1. life sustenance - receiving basic essentials: food, clothing, shelter
2. self-esteem - sense of worth
3. freedom from servitude - concerns human freedom; ability to choose and select choose;
equal distribution of goods and services

EXAMPLES OF ECONOMIC DEVELOPMENT (BASED ON VIDEO)

1. Literacy rate
→ high - allow people to avail better job employment opportunity and contribute to growth of
economy
→ more aware of family planning, better nutrition, and health
→ education for now, we have 75% literacy rate in the Philippines, which is far behind from ASEAN
countries
→ example is the implementation of K-12 program
▪ implications is important because nakikipagsabay na tayo with other ASEAN countries

2. Infrastructure
→ enhance efficiency of production, transportation, and communication
→ provide econ incentives to pub and private sector
→ for 2019-2021, there are a lot of buildings and programs of DOTC

3. internet access
→ tool in delivery of essential services
→ became a basic necessity
→ was non-essential until time na nagkaroon ng pandemic

4. academic level achievement

→ if one graduates from college courses - can be used to the industry
→ can contribute to growing economy

5. access to good quality housing

→ malaki yung comparison between quality housing from NCR - like in subdivisions vs. squatters
area

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Saturday, 19 June 2021 10:35 PM

6. people shift from agricultural to industry, then service sector

→ for now in pandemic, there are many corp which totally stopped its operations people in
provinces shift to agriculture

7. standard of living
→ being able to earn even a minimum wage - already standard of living

8. access to good quality healthcare

→ ex. pandemic, and naging positive yung isang person - sagot na dapat ng government
▪ those not members of PhilHealth should have a discount

Vicious cycle / circle of poverty

→ illustrates how poverty causes poverty and traps people in poverty unless external
intervention is applied to break the cycle
→ "poverty trap"
→ poverty - low schooling - few job options - unemployment - low purchasing power -
malnutrition - poor quality of life - poverty
→ help/aid of gov to alleviate/reduce/eliminate a certain problem of the family

Goals of economic development

→ improve economic well-being of community through efforts that entail:
▪ job creation
▪ job retention
▪ tax base enhancements
▪ Quality of life

Means of Development
→ there is no single strategy / policy / program for achieving successful economic development
▪ ex. Australia - 5th largest econ
- rich in natural resources - reflected to be primary resources
▪ Canada - discovery of oil sands
▪ US - most largest economy; very excellent in developing technology, health care,
manufacturing, financial services
→ depends on community's environment and resources

Good Indicators of National Achievement

• use of modern and advances techniques of production
• high standard of living
• high per capita income
• low incidence of poverty
• low level of unemployment
• infrastructural capabilities are present

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Examples of Economic Development
Saturday, 19 June 2021 10:35 PM

** DISCUSSION

1. Life expectancy
→ how low people's life span are
→ (Macro Trends) Philippines (2019) - 71.16% which was 0.18 increase from 2018
▪ maswerte if umabot na ng 80 years old sa panahon ngayon
→ life expectancy before (forefathers) was probably 99% - before the rise of junk food,
fast food chains
→ why is there a shortened life span? because of standard of living

2. Educational Standards
→ what students should know and able to do at each level
→ ex. K-12 Program
▪ according to Education sec, Leonor Briones: SHS graduates have better
prospects because of undergoing the work immersion
▪ according to survey of Jobstreet: only 24% of employers using the website are
ready to hire graduates of k-12 program

3. Access to good quality healthcare

→ number of doctors per thousand people, access to affordable medicine, etc.
→ makikita na kulang pa rin yung doctors and nurses to accomodate - esp ngayon
situation natin na may pandemic
→ bakit kulang? because graduates work abroad

4. Literacy rate
→ percentage of population that can read
→ (UN) Phil has highest among ASEAN countries with 97.95%

5. Infrastructure
→ facilities and services necessary for economic activities
→ ex. road and buildings - Build Build Build Program

6. Increase in GDP
→ sum of all econ activities in country over spec period
→ 6.4% growth in result of 4th quarter in 2019 (BSP report)
→ IATF - chinecheck nila yung economy and yung life (safety of people)

7. People shift from agriculture to industry, then service sector

→ According to Statista: 2019 - 24.95% active in agricultural sector
→ 18.39% in industry
→ 56.66% in service

8. Internet Access
→ According to Statista: 69% of Phil population has internet access (2019)

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Build Build Build Program
Saturday, 19 June 2021 11:42 PM

→ Phil suffers from unemployment and poverty bc of poor infrastructure

▪ shallow far from comprehensive living high level of employment, poverty and hunger
→ Pres. Duterte initiated Build x3 Program that aims to usher the golden age of infrastructure
which aims to accelerate infrastructure and create industries that will yield robust growth,
create jobs, and improve lives of Filipinos
▪ centerpiece program of Duterte admin
▪ 47 infrastructures
▪ 5 flood control
▪ 4 energy facilities
▪ 3 social infrastructure
→ public spending and infrastructure projects is targeted at 8-9 trillion from 2017-2022
→ key infrastructure projects under Build, Build, Build Program include:
▪ energy facilities
▪ water resource projects and irrigation systems
▪ flood control facilities
▪ Subic-Clark railway
▪ North-South railway projects-connects Los Banos, Laguna to Tutuban, Manila and Clark
Freeport in Pampanga
▪ 1,500 hectares industrial park in Clark and expanded Clark international airport in
Pampanga
▪
→ has already built roads, bridges, railroads, and air/sea ports
→ gov infra spending as measured by GDP is expected to grow to 7-7.5% by 2022 from 5.1% in 2018
→ has already build 9,845 km has already been completed in Metro Manila, Cavite, Tarlac,
Pangasinan, La Union, Davao, Cebu
→ 2,709 bridges in diff parts of the phil
▪ kalibo bridge - longest bridge in western Visayas
- 15.81 km kalibo circumferential road
- completed in time for the Ati-atihan festival
→ to address gap of facilities - finished 71,803 classrooms the will benefit more than 3.2M students
→ Airports:
▪ Bohol Panglao Intl airport
▪ Sangley Airport, Cavite
▪ Visayas and Mindanao ?
▪ Puerto Prinsesa International Airport
▪ domestic airports; Marinduque, etc
→ New Clark City as centerpiece - opened many investment opportunities; omises to be modern
enterprise
▪ location of Southeast Asian games
→ construct sector experienced 12.7% growth since 2016; number of workers ballooned to 4.2
million last 2019 from 3.5 M in April 2017
▪ 51.9% of the industry segment total employment
▪ reduced unemployment rate to 4.5% - lowest rate since 2005
→ improvements all over the country raises productivity dramatically, in terms of transportation,
trading, etc
▪ positively impact
→ According to Pres Dizon for flagship projects, at end of the day, it isn't just about building, it's to
make lives - daily lives

DPWH Projects - in charge of BBB program

1. Metro Cebu expressway 6. Mega manila subway project
• 28B ▪ 356.170 B
• started 2018, finish 2022 ▪ 2018-2025
7. Bohol Panglao International airport
2. NLEX-SLEX connection road ▪ 25.452 B
• 23.3 B ▪ 2020-2021 .
• started 2019, finish 2021 8. unified grand central station
▪ 2.873 B
3. BGC to Ortigas link ▪ 2019-2021
• 1.631 B 9. Bases conv and development authority, like
• 2017-finished Clark International airport
4. Line 7 - MRT ▪ 14.972 B
• 70.8 B ▪ 2018-2020
• 2016-2021 10. Subic Clark airway project
5. Davao International airport ▪ 50.031 B

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5. Davao International airport ▪ 50.031 B
• 46.973 B ▪ 2019-2027
• 2020-2028

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Sunday, 20 June 2021 10:10 AM

5 STAGES OF ECONOMIC GROWTH

WALT WHITMAN ROSTOW'S WORK

→ American economic historian
→ became well known with publication of The Stages of Economic Growth: A Non-Communist
Manifesto (1960)
→ argued that economies of countries will be placed in the five stages of economic growth

ROSTOW'S MODEL OF DEVELOPMENT

STAGE 1: TRADITIONAL SOCIETY

→ Agricultural economy, mainly subsistence farming

→ Limited capital stock
→ characterized as subsistent agricultural based economy w intensive labor and low level of
trading; population does not have scientific perspective on technology
→ subsistent - relies on natural resources to provide for support in their daily needs

STAGE 2: TRANSITIONAL STAGE - PRECONDITIONS FOR TAKE-OFF

→ Growth of savings and investments

→ Remittances from overseas workers
→ society begins to develop in terms of manufacturing and more national as opposed to
regional

STAGE 3:TAKE-OFF

→ Importance of manufacturing industry

→ Political and social institutions start to develop
→ Dual economy
→ introduction and continuous rapid growth in industrial, manufacturing, better growing
investment, and cultural change

STAGE 4: DRIVE TO MATURITY

→ Improvements in technology
→ Innovation increases per capita income
→ new ideas, technologies
→ place order industries
→ econ growth spread in the country
→ less reliance on imports'
→ innovation
→ technology plays a big role in society

STAGE 5: HIGH MASS CONSUMPTION

→ Increased output levels

→ Growth of the middle class consumers
→ economy flourishes in capitalist system characterized by mass production and
consumerism
→ more wealth
→ welfare are fully develop, trade expansion
→ people have capacity to consume and buy what they need and want

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