SECTORS OF THE ECONOMY

AGRICULTURAL SECTOR
The Philippines is rich in natural resources. Filipinos make use of these resources to address
their various needs. The practice of harnessing the natural resources to produce crops and raise
livestock is called agriculture.

Importance of Agriculture
Agriculture is considered as the "backbone of the economy" because of its significance
to the employment and income of Filipinos and to the economy as a whole.

Importance of Agriculture
Source of Food The agricultural sector is the source of food such as rice, eggs, fish,
meat, and vegetables.
Many Filipinos depend on agriculture for employment. According to the
Source of Labor Force Survey of the NSO, in 2013, more than 12 million or a third of
Livelihood the labor force of the country are employed in the agricultural sector.
Meanwhile, farming, forestry, and fisheries were reported to have the highest
number of employment.
Some agricultural products are exported. Foreign exchange earned from
Contribution to agricultural exports can be used to finance not only the modernization of the
National agricultural sector but also the development of the industrial sector. In the
Income first quarter of 2013, agricultural exports contributed 0.4 percentage points to
the 7.8% growth of GDP.
Foundation of Raw materials come from agriculture. These are essential inputs of
a Stable production Also, revenues generated by the agricultural sector are used in the
Economy development of the other sectors of the economy.

Components of the Agricultural Sector

Four subsectors make up the agricultural sector, namely:

FARMING FORESTRY
Palay, corn, pineapple, mango, and tobacco Forestry pertains to the caring for
are some of the main agricultural crops in the and utilization of forests. It may involve
country. Among them, palay and corn had the cultivation, maintenance, and
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highest level of production during the first quarter development of forests. The potential of
of 2013. It is a surprise that the Philippines needs to forestry as a significant source of income
import rice when the country is considered to be for Filipinos is high.
one of the leading producers of rice in the world.
Lumber, plywood, and veneer are
Vietnam and Thailand are the countries where the main timber products in the
we import rice from according to National Food Philippines while almaciga resin, bamboo
Authority (Philippine Statistical Yearbook, 2012). poles, nipa shin gles, and unsplit rattan
Vegetable, fruit, coconut, and sugarcane are are examples of non-timber products.
included in this subsector.

FISHERIES ANIMAL HUSBANDRY

The insular characteristic of the Philippines Animal husbandry is the raising of
makes it rich in fishery resources. In 2010, the animals for their economic benefits for
Philippines was the fifth largest fish-producing example, as source of meat, fiber, and
country in the world. leather as well as additional help for
doing heavy tasks. This subsector can be
Commercial fisheries make use of boats divided into two-livestock (such as cattle,
weighing more than three gross tons (GT). goat, and swine) and poultry (such as
Municipal fisheries, on the other hand, use boats chicken and duck).
that weigh at most three GT and navigate around
the municipality. Lastly, aquaculture involves
raising and culturing fish.

Problems Confronting the Agricultural Sector

1. Pollution and Environmental Depletion

Damaging and excessive extraction of the natural resources, together with abusive
practices and negligent behaviour, result in pollution and depletion-bringing dire
consequences on the productivity of the agricultural sector.

2. Inadequacy of Capital
Many workers in the agricultural sector borrow money at a high interest in order to buy
seeds, fertilizers, machinery, and other agricultural needs. Many workers are also forced to
sell in bulk and at a low price because due to lack of farm-to-market roads. As a result,
many agricultural workers are mired in debt and low income. Many workers in the
agricultural sector borrow money at a high interest in order to buy seeds, fertilizers,
machinery, and other agricultural needs. Many workers are also forced to sell in bulk and at
a low price because due to lack of farm-to-market roads. As a result, many agricultural
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 workers are mired in debt and low income.

3. Inadequacy of Infrastructure
Inadequate infrastructure is a huge drawback for the agricultural sector. Having a well-
maintained facility is important for storage. Farm-to market roads are also needed for
fast delivery of goods, especially perishable ones.
4. Challenges Brought about by Climate Change
Frequent occurrence of typhoons and the incidence of El Niño and La Niña in the
country impede agricultural activities, damage crops and fisheries, and reduce the
productivity of the agricultural sector. The abnormal changes in temperature and weather
due to global warming are also challenges for the sector.
5. Lack of Interest of the Youth in Agricultural Activities
Poverty in the agricultural sector is believed to be the culprit for lack of interest in
agriculture among the youth. According to earlier studies, the average age of farmers in
the Philippines is 57. If the youth remain uninterested in agricultural activities, food
security in the Philippines will be compromised.

Institutions and Programs

The government implements laws and programs promoting the agricultural sector. Some
of these are discussed below.
1. Comprehensive Agrarian Reform Program Extension with
Reforms (CARPer)
The CARPer aims to promote social justice and alleviate poverty in the country by:
distributing farmlands to farmers;
promoting development of rural communities; and
dealing with agrarian cases.

2. Agrikulturang Pilipino or Agri-Pinoy

Agri-Pinoy is the strategic framework guiding the various services and programs of the
Depart ment of Agriculture from 2011 and beyond. Agri-Pinoy has four main programs-the
Agri-Pinoy Rice Program, Agri-Pinoy Corn Program, Agri-Pinoy Livestock Program, and
the High-value Crops Development Program.

3. Community Livelihood Assistance Special Program (CLASP)

CLASP aims to reduce poverty and improve the financial resources of agricultural
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 communities. It aims to reach its goals through appropriate and environment friendly
technologies, information, as well as financial support from DENR, private companies, and
other organizations.

4. Community-based Forest Management (CBFM)

CBFM is the main strategy towards sustainable use of forest resources in the
Philippines. Its main program is the National Greening Program that encourages the private
and public sectors to help plant 1.5 billion trees in 1.5 hectares of land in the Philippines
from 2011 to 2016.
5. Philippine Agriculture 2020 (PA 2020)
The PA 2020 is a medium term strategic plan prepared with the help of National
Academy of Science and Technology and a variety of stakeholders in the agricultural sector.

Government Agencies that Oversee the Agricultural Sector

The Department of Agriculture has the mandate to oversee the development of
agriculture in the Philippines. Included in the responsibilities of the Department is to formulate
policies and support businesses related to agriculture. All of these are to increase the income of
farmers, fishermen, and other members of the sector, and to encourage active participation in
the policy making bodies of the department so that the policies, plans, and programs will be
successfully implemented. Under the Department of Agriculture are agencies that support and
help in the activities of the department.

 Agricultural Training Institute (ATI)

ATI is tasked to research, plan and budget, organize, and implement training programs
for the sector and to partner with the local government to have a unified workers program. ATI
seeks to help in the progress of provinces where agriculture is the main source of livelihood.

 Bureau of Agriculture and Fisheries Product Standard (BAFPS)

BAFPS ensures the high quality of agricultural products by means of a high standard
guidelines on production process, packaging, labeling, importation, exportation, distribution,
and advertising of agricultural products. BAFPS guarantee that the guidelines are in strict
compliance with international standards.

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  Bureau of Animal Industry (BAI)

BAI is the agency that guarantees that the country has a healthy and energetic livestock
and poultry commerce. The agency has the mandate to plan and implement policies on health of
the animals, high quality feeds, post-harvest technology, and human resource development in
order for the consumers to have the finest quality of food and for the investors have high return
on investments.

 Bureau of Soils and Water Management (BSWM)

BSWM research, plans policies, and formulates programs in preserving and maximizing
the productive use of land and water as two of the most important factors of production in
agriculture. One concern is to find a solution on soil erosion and drought, and the local
government supports the agency in its program like irrigation. The agency identifies an area as
"Strategic Agriculture Fisheries Development Zones (SAFDZ)" for the area to be given priority
for research, infrastructure, technology, loans, and other services.

 Bureau of Agricultural Statistics (BAS)

BAS oversees the collection and analysis of data on agriculture and makes a report and
disseminates pertinent information to the community especially to agencies, corporations, or
offices under the Department of Agriculture. The study made by BAS is the starting point for
programs and policies. The data are open to the public for use and maybe accessed through the
agency's website http://www.bas.gov.ph.

 Bureau of Fisheries and Aquatic Resources (BFAR)

BFAR is mandated to operate, develop, and conserve aquatic resources of the Philippines.
Included in the agency's responsibilities are to: issue fishing vessel licenses; conduct fishing
agreements with other countries; research on fishery development; provide service, technical
support, infrastructure, and storage facilities to maintain high quality of aquatic products;
coordinate with local community in maintaining a clean area for delivery and selling; cooperate
with the Department of National Defense to monitor aquatic activities; implement a system on
import-export of fish; and make sure the country has sufficient supply of fish.

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INDUSTRIAL SECTOR

Industry is the process of producing goods by using machinery and factories.

Industrialization, on the other hand, is the transformation from a primarily agricultural society
into one based on the manufacturing of goods. The industrial sector uses products from the
agricultural sector and processes them into products that are either consumed by end users or
sent for further processing. It may involve a change in the process of production from manual
(handmade) to mechanical (involves the use of machinery).

Importance of Industry
Industrial activities keep the economy vibrant. The reasons for this are as follows.

Employment The industrial sector is important for an economy with a growing

Generation population and an expanding labor force. Because products from this
sector address basic needs, it is certain that such products will have a
market. As population rises, so do human needs. At the same time, new
jobs are continuously generated in the industrial sector.
Offers a The industrial sector has the capacity to produce diverse items, in bulk. It
Variety of can be very responsive to the changing tastes of consumers. If there is
Products high demand for processed food, for example, the sector can swiftly
produce more processed food.
Contribution This sector significantly contributes to national income. In 2012, 31% of
to National Philippine GDP came from the industrial sector. Products from this
Income sector are sold not only in the domestic market but in foreign markets as
well.

Components of the Industrial Sector

Four subsectors make up the industrial sector, namely, manufacturing, construction,
mining, and electricity, gas, and water.
Manufacturing Mining

Manufacturing is processing of raw Mining is the extraction of minerals from the

materials into finished products by means land. According to the Mines and Geosciences
of a small-scale or large-scale industrial Bureau, about nine million hectares of land in the
operation. Consumer goods such as food Philippines are potential sources of mineral
and clothing are some of the products of deposits. produced Copper, gold, and nickel are the
this subsector. This subsector also main mineral resources of the Philippines. These
produces capital goods such as machinery minerals are used not only for exports but also in
and equipment. domestic industrial activities such as the
manufacture of electronic devices.

Electricity, Gas and Water Construction

The industrial sector is the source of Construction is the act or process of building
electricity, gas and water services. These or fixing structures or infrastructure like houses,
services are used by the other subsectors. bridges, or buildings.
The 2010 survey of Philippine Business and
Industry noted that there are 1,464 establishments in
the construction industry.
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Challenges Facing the Industrial Sector
There are problems related to the sustainability of the progress of this sector in the
Philippines. Among these are the following.
The Philippines has abundant labor and the labor force is expected to continue
Skills rising until 2020. However, there is a shortage of workers who have the skills and
Gap experience that meet the job requirements in many industries. This problem is
known as skills gap.

In many ways and instances, the environment is sacrificed in the process of

industrialization and modernization. An example is the conversion of land from
Environ- agricultural areas into residential and commercial areas in order to build
mental subdivisions or factories.
Issues Improper waste disposal by factories pollute the environment. For instance, The
World Wildlife Fund reported that about 90% of the sewage in the Philippines
flows back to the sea.

Development in the industrial sector relies heavily on modern technology,

Funds abundance of materials priced affordably, skills of the workers, and dependable
and supply of electricity and other utilities. All of these entail massive investment that
Compe- is not easy to find because of the risk factor attached in having a business. This is
tition the reason why not everyone has the ability and readiness in this kind of venture
that results in the few that is in the sector to have control of the market. Most of the
companies in this sector is oligopolistic in nature.

Weake- Having a high level of industrialization may destroy the local industry because
ning of mass production. Mass production takes less time to produce and is less
Local expensive compared to custom-made products. An example is a clay pot made in
Industry Quezon province competing with the less expensive plastic vase.

An increase in the production of the industrial sector is promising if it will be

Demand accompanied by an increase in demand. The expertise in advertising comes handy
in this situation. This is the way to entice consumers to patronize the products. For
a country with the majority of the population marginalized, increasing production is
a risky move.

Economic Laws that Support the Industrial Sector

1. Filipino First Policy. The Filipino First Policy started as Filipino Muna of President
Carlos P. Garcia. The policy is to protect the local industry from foreign-made products and
foreigners owning companies in the country. It promotes locally made products by giving them
priority in the local market. It encourages Filipinos to patronize products using local materials
produced in the country and companies owned and operated by Filipinos.
2. Oil Deregulation Law. Since the country is dependent on the supply of petroleum
from abroad, the government opened the market to competition. The market through the forces
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of supply and demand determines the price of petroleum. In situations wherein the price of
petroleum reaches an all-time high, affected businesses like transportation ask for the removal
of the 3% tariff on petroleum or increase the minimum fare to protect their earning.

Government Agencies that Oversee the Industrial Sector

The following government agencies have the mandate to oversee the industrial sector:
 Department of Trade and Industry (DTI)
It is the task of DTI to plan and implement programs to make businesses in the
country progressive, efficient, at par with international standard; generate employment,
and protect the welfare of consumers in the expectation of attracting local and foreign
investors.
 Department of Public Works and Highways (DPWH)
DPWH is in charge of constructing and maintaining public infrastructures like
roads, bridges and dikes, design infrastructures conforming to urban planning.

 Construction Industry Authority of the Philippines (CIAP)

CIAP has the responsibility for developing and overseeing all projects concerning
construction. The agency is tasked to monitor and police contractors to follow
regulations in building a sound and safe infrastructure.

 Department of Environment and Natural Resources (DENR)

The DENR together with the local communities formulate and implement regulations
on industries that leave a negative impact on the environment like mining. The agency
also monitors mining activities giving special attention to safety standards like wearing
the proper attire, having the appropriate tools, and provisions in case of emergencies or
accidents.

 Department of Energy (DOE)

The DOE is mandated to formulate and implement policies and programs that will ensure the
country of having sufficient, accessible, and affordable supply of energy. The Philippines is
rich in natural resources. Filipinos make use of these resources to address their various needs.
The practice of harnessing the natural resources to produce crops and raise livestock is called
agriculture.

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 SERVICE SECTOR
The service sector contributed 56.4% in the Philippine GDP for year 2012. This has the
largest contribution from all other economic sectors. This number says something about the
quality of service and the capabilities of the Filipinos. This indicates that the citizens are the
most important wealth of the Philippines.

Transportation
The basis for an organized system of transportation is a speedy and safe transport of
people and products in the respective destination with affordable prices. It is ideal that people
would have different modes of transportation to choose from. At present, Filipinos can choose
from different public transportations: pedicab, tricycle, jeepney, bus, FX or van, train, boat, and
airplane. For those with bulk transport of products or items, there are companies that have for
hire transportations or trucking services. Metro Rail Transport (MRT), Light Railway Transit
(LRT), and Philippine National Railway (PNR) are alternative mode of transportation operated
by the government. In times of calamities, the local government makes use of
barangay/municipal transportations to provide free transport to its constituents.
Together with an organized system of transportation is having decent roads, ports, and
airports.

Telecommunication
Through time, people have more ways of communicating with one another. If before we
use telephones and mail, now we text message, MMS message, video call, chat, and e-mail
using the computer, tablet, or cell phone. Due to the technology of cell phone and Internet,
communication is now easier, faster, and affordable. For example, it is easy for the people to
communicate because of telecommunication companies promos like unlimited calls, text, and
Internet. One sign of an efficient system of telecommunications is how orderly the message is
sent among the recipients. In this case, the line of communication should be sufficient, has a
wide area coverage, accessible, clear signal, and reasonably priced.

Trade
In olden times, people did trade in a simple manner of exchanging products (barter trade).
As the years went by, trade was made easier through a medium of exchange. This gave birth to
money, check, and the system of banking. At present, trade is practiced when a consumer and
seller agree on a price and quantity of products.
The producer and the process of trade are under the services sector because through them
the products from the agriculture and industrial sector reach the consumers.

In general, trade is important for the economy because:

 trade enables the consumers to fulfill their needs that result in a comfortable life;
 when the seller earns profit, the seller is motivated to expand his business. The
growth and newly opened businesses will generate jobs; and
 the government is able to collect taxes that are used for projects and services for
the society.

Finance
A country with a strong and stable financial sector is suitable for operating a progressive
trade because it is here where the market depends for the supply of money in circulation. The
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assurance of having a stable and strong financial sector is on the shoulders of bank and nonbank
institutions. Banking institution is where individuals, groups, or companies may keep their
money in the form of saving deposits. The deposits earn interest and can be withdrawn anytime
as long as it is not on time deposit.
These entrepreneurs hire workers and the workers use their wages to buy products and
services from the agriculture, industrial, and service sector. Some will save a portion of their
wage and companies invest. With all these activities, the government is able to raise funds
from taxes that is used to provide public services. And the cycle continues. The financial
institutions play a vital role in creating and circulating money in the economy.

Real Estate
Real estate has two categories, residential and non-residential. Included in residential are
areas that are presently used by families for homes; nonresidential are all other areas used for
commerce or earn income. A real estate broker acts as a mediator between the lessee and lessor.
At present, there are several condominiums and subdivisions being built by the construction
industry in which the real estate broker looks for potential buyers. The challenge for real estate
is having affordable houses so that each Filipino family will have a house to come home to.

Public Service
Public service refers to services that the government provides to its citizens. The funds
used by the government come from the taxes paid by the citizens. Public service is expected in:
1. Externalities
The economic activities of individuals or institutions have an effect on the
environment or surroundings and the government intervenes to make sure it has no
negative effects. An example is the traffic caused by a great number of vehicles. The
government implements traffic rules like rerouting and number coding, and makes
provisions for road widening. Pollution is another effect of having a big number of vehicles.
Congress passed a law, the Clean Air Act, to oblige vehicle owners to make sure that their
vehicles do not belch out black smoke.

2. Merit Goods
Merit goods are products or services that contribute to the development of culture
and society. Most of the time the products and services are expensive and do not earn profit
that it is difficult to find companies who are willing to sponsor or fund them. Examples are
cultural show, museums, sports events, and historical places.
3. Imperfect Competition
If there are only few individuals or institutions that control the market, the government
intervenes in order to ensure that the few players in the market will not dictate the supply
and price of the product. The government makes laws to oversee industries in imperfect
competition. An example of this is the Oil Deregulation Law where investors are
encouraged to enter the petroleum industry to stir competition and dissuade the few players
from controlling the market.

4. Imperfect Information
It is second nature for entrepreneurs to introduce their products in the most enticing
way to attract consumers. They will present the best features of their products and leave
out important details like side effects or possible safety issues. An example is cigarette. We
know that cigarettes are not good for our health but companies do not advertise that
information. Because of this, the government obligates the companies to include in cigarette
packages and warning signs pictures of possible effects of smoking. Another example is
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 films shown in television and movies where producers do not divulge the nature of the films,
In this case, the government established the Movie and Television Review and
Classification Board or MTRCB in order to categorize films and determine their age
appropriateness.

5. Public Goods
Public goods are services provided by the government in order to maintain peace and
order in the country. Just like in merit goods, the private sector is not interested to invest
because there is no income to be earned. Examples are military, police, and traffic aide.

Overseas Filipino Workers (OFWs)

Included in the service sector is the Overseas Filipino Workers (OFWS) or Filipinos
working abroad. In order for OFWs to work legally in other countries, they need to present
documents that there is employment waiting for them and the companies or individuals they are
going to work for are legal and with registrations. OFWs who pass through a process and
complete their documentation papers are called documented workers, while those who do not
go through the process are categorized as undocumented workers. Filipinos work abroad for
higher wages, attractive benefit packages, professional growth, and opportunity to go to another
country. In summary, Filipinos are ready to take chances in another country in order to support
and give a better quality of life to their families.
The Importance of the Service Sector in National Development

1. The service sector serves as a conduit to other sectors. Through transportation,

agricultural products are delivered to industries to be processed and brought to the
market. Trade is facilitated by means of telecommunication, and the financial
institution helps in the circulation of money.

2. The financial institutions aid in the development of established and starting

establishments. Having many and developed establishments increases competition
that leads to quality products and lower prices. More establishments generate more
employment.

3. The service sector has the largest contribution to Philippine GNP. Dollars remitted
by the OFWs increase the country's dollar reserves.

4. The service sector offers the most job openings both in the country and elsewhere.
Employment provides opportunities for Filipinos to meet their needs and have a
happy decent life.

Issues in the Service Sector

1. The greatest challenge faced by the government and the private sector engaged in
real estate is to be able to provide quality houses at affordable prices. Together
with this is finding a solution to fight global warming wherein residential areas are
threatened by flooding, soil erosion, and pollution.

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 2. Another concern that needs the attention of the government is to be able to deliver
an efficient and high quality public service. It is known that citizens complain
about how public service is delivered that people wonder how and where taxes are
used. Corruption and the practice of the padrino system are just two of the
reasons for having an inefficient public service.

3. Highly skilled and trained Filipino workers are in demand abroad that the
country is facing brain drain. The country is unable to compete with the high
salaries and enticing packages offered by the other countries.

Economic Laws that support the Service Sector

 The Special Economic Zone Act of 1995

This law provides guidelines on how to start and operate a business within the
special economic zone in the country. It encourages foreigners to invest in the country
to generate employment, market Filipino product, and to stimulate circulation of money.

 Anti-Money Laundering Act of 2011

This act protects the banking and nonbank Institutions from money coming from
illegal sources. It also protects the clients of the banking and nonbank institutions by
making sure their savings are well taken care of.

Laws that Protect and Safeguard the Rights of the Workers

 Labor Code of the Philippines

The Labor Code of the Philippines is executed to organize the system of

employment in the country. The code includes protection of the rights of workers like
having an orderly and safe environment to work in. The code also protects the workers
from abusive employers and company policies.

 Rules of Procedure on Minimum Wage Fixing

The law of the land gave directives to the National Wages and Productivity
Commission and the Regional Tripartite Wages and Productivity Boards to set the
appropriate and just wages of the workers based on the cost of living of a region. It is
expected that the set minimum wage is sufficient or more than sufficient to meet the needs
of the workers to live decently.

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 INFORMAL SECTOR
The informal sector is commerce not registered in government agencies, its
operations are not monitored by the government and do not pay taxes, and its income is not
measured in the Philippine GDP. An example of commerce in the informal sector is street
vending or selling without a permanent place. The capital and profit in the informal sector
is small so that sellers do not register their business. Selling activity only happens irregularly
and only when there are considerably a number people like during rush hours. Included in
this sector are individuals that sell products that they personally make like food and
accessories which they personally deliver to the consumer.

Commerce in this sector is small that entrepreneurs cannot afford to register, have a
permanent store, and to pay tax.

The black market or commerce whose operation is kept secret from the government is also
under this sector. Examples of products in the black market are pirated DVDs, bags, clothes,
shoes, and jewelry sold illegally in the country. Included also are food and medicines that
did not undergo the process of inspection, endangered plants and animals, dangerous drugs
like marijuana and shabu. The government is always on guard to stop illegal activities to
protect society.

The Various Forms of the Informal Sector

The International Labour Organization defines the informal sector as very small-
scale units producing and distributing goods and services, and consisting largely of
independent, self-employed producers in urban areas of developing countries, some of
whom also employ family labor and/or few hired workers or apprentices; which operate with
very little capital, or none at all; which utilize low level of technology and skills, which
therefore operate at low level of productivity; and which generally provide very low and
irregular incomes and highly unstable employment to those who work in it. They are
informal in the sense that they are for the most part unregistered and unrecorded in official
statistics.

Businesses belonging to the informal sector have the following characteristics:

 the company or workers are not registered;
 the business is not considered a legal entity which is independent from its owner
or owners;
 it is usually owned and managed by blood relatives; and
 it is usually not well-organized and has only a few workers.

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 Meanwhile, informal employment are those that are excluded from the formal sector
and jobs in the formal sector that are not taxed and that do not provide basic social
protection like pensions and payments for sick leave and vacation leave.

The informality of some employment in the formal sector may be attributed to:
 failure to declare the occupation of workers of the company;
 temporariness of the job;
 insufficient number of working hours or wage compared to what had been
officially declared;
 illegitimacy of the business;
 operation of business beyond the official status of the business; and
 the business does not comply with labor laws.

Employment Categories Definition

in the Informal Sector
Homeworker A person who works at, or near his/her home in the
production of goods for a fixed agreement with an employer
or contractor. They are usually paid on a piece-rate basis.
Self-employed or self- A person who has no employer or contractor and operates
account worker business on his/her own. He/she does everything has no paid
employee and assisted only by family members on occasional
basis.
Employer A person similar to a self-employed but employs one or
more paid employees.
Employee A paid employee in an informal enterprise.
Unpaid family worker One who works without pay in a farm or business operated
by a member of his/her family. He/she works on occasional
basis.

Issues in having an Unregistered Business

1. The government has no means of knowing the quality of products sold by

unregistered businesses. Food preparations that do not go through sanitation
inspection may cause food poisoning. DVDs, bags, shoes, and cloth imitations are
considered as stealing from the people who made or designed the original said
products. Low quality electronic goods like Christmas lights can cause short circuit
and fire; the same holds true for substandard fireworks that may misfire.

2. Consumers who buy products from unregistered stores usually do not get their
money's worth. Although products sold in the informal sector are considerably
cheaper than products sold in registered stores, seldom are defective products replaced
or repaired by the sellers in the informal sector. Most of the time, consumers in the
informal sector think that they are able to save but in reality they spend more because
products are usually short lived, if not defective.

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 3. Workers in the informal sector do not receive benefits mandated by law like Pag-
IBIG, and PhilHealth. If a worker meets an accident, he will not receive any benefits
other than the amount handed by his employer.

4. Patronizing imitated products slowly kills legitimate industries. Pirated DVDs are sold
inexpensively that few buy the expensive original DVDs and fewer people go to movie
theaters. Because of this, the movie industry that depends on movie theaters and DVD
sales is slowly losing profit that will lead to fewer movies produced. Legitimate movie
producers are protected by the Intellectual Property Rights. Any entity that would like
to use their works must seek permission Sellers of pirated DVDs do not pay royalties
or taxes.

Contribution of the Informal Sector in the Philippine Economy

For most Filipinos having difficulty in landing a secure and decent job, they resort
to engaging in business like having a small store, selling a variety of things and vending
food. Although profit here is small, it is a big help for individuals or families who
have no other source of income. The small business is able to meet the needs of the
family like food, shelter, and clothing. In this situation, the money in the informal
sector circulates in the economy. If all the small capitals are combined together it will
be a massive amount. In a country like the Philippines, where most citizens are
unemployed, having an alternative source of income like having a small store is
desirable.

Laws and Programs for the Informal Sector

 Barangay Micro Business Enterprises (BMBES) Act of 2002

The law encourages unregistered businesses to register with the proper
government agencies. Registering their businesses mean that that they will be
governed by business regulations and laws, and will receive business incentives.

 Consumer Act of the Philippines

The Law is for the protection of the consumers from products and services
that are wrongly valued and of poor quality. The law covers the products and
services of the informal sector whose operation is not monitored by the government.

 Comprehensive Dangerous Act of 2002

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 This law is to hunt and put behind bars the people behind the illegal drugs
trade. Its objective is to limit if not totally eradicate the presence of the said trade.

DE LA SALLE JOHN BOSCO COLLEGE

La Salle Drive, John Bosco District, Mangagoy, Bislig City
Basic Education Department— Junior High School Level

Performance Task in Fourth Quarter

Social Studies 9

Vlogging is a fantastic way to document any life related activity. Aside from its
popularity it is a useful means that provides the children a visual documentation of their highs
and lows in their daily life experiences. In lieu with this, you are tasked to create a vlog entitled
“A day in a life” featuring the your daily routines that describes the different sectors of the
economy.

Service Sector:  Showing services rendered inside the household.

Agricultural Sector:  Home activities relating to agriculture.
Industrial Sector:  Routines that may involved manufacturing and processing.
Informal Sector:  Acts that belongs to the informal sector such as selling on a
small scale.
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 Vlog should be done only within the perimeter of your home. Language to be used
could either be English or Filipino. The use of vulgar/foul words and action is strictly
prohibited. It should not exceed 5 minutes but not less than 2 minutes and output should
be submitted only in the official LMS Performance task class account under the Social
Studies class. Output should be submitted on or before May 30, 2022 (Monday). (Note:
It is not necessary that all sectors is found in the vlog.)

CRITERIA
The content includes a One or two The content Content lacks a
clear statement of details /content does not present central theme,
purpose or theme and presented are not a clearly stated clear point of
is creative, and connected to the theme, is vague, view and logical
Content compelling. A rich theme and to the and some of the sequence of
(50 %) variety of supporting supporting supporting information.
information in the information that information The viewer is
video contributes to contributes to the does not seem unsure what the
the understanding of understanding of to fit to the main message is
the project’s main the project’s main idea. because there is
idea. Events and idea.. a little
messages are information.
presented in a logical
manner.
Product shows a large One or two of the Almost all of There is no new
Creativity and amount of original ideas are similar the ideas are idea presented.
Originality thought. Ideas are with the creation similar with the
(30 %) creative and or display of creation or
inventive. others display of others
The presentation has a One part of the Presentation is The presentation
clear and good presentation is not organized in a is aimless and
Presentation/ opening beginning, presented in a logical manner disorganized.
Organization contains an logical manner but but sometimes
(20 %) informative content it contains an gets off topic.
and satisfying impact informative
to the society. It is content and
organized in a logical satisfying impact
manner. to the society.

You may send your output to my email: wendilynetababa@gmail.com

Furthermore, outputs will be grade in accordance to the following criteria:

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