Vision

A leading institution of higher learning recognized for its

quality transformative education serving the nation

and the world.

MISSION

To provide a dynamic and supportive academic environment through the

highest standard of instruction, research and extension in a non-

sectarian institution committed to democratizing access to education.

gOALS

To achieve its mission, the University aims to:

• offer academic programs that meet the changing national and international community needs;

• produce graduates who are competent leaders and productive members of society;

• harness a pool of ethical, qualified and highly-trained human resources;• provide an academic environment conducive to optimum learning through

adequate state-of-the-art facilities;• conduct researches and other scholarly activities that generate new

knowledge and contribute to the improvement of the “quality of life” for all;

• engage in community services that foster self-reliance and empowerment among the marginalized community; and

• lead in the promotion and preservation of the cultural heritage of Mindanao and of the country as a whole.

MacroeconomicsConcepts

GovernmentFunctions

 What are the Philippines government departments 

and their functions?

DENR department of environment and natural resources. DSWD department of social welfare and development DPWH department of public works and highways

GSIS government service insurance system NEDA national economic and development authority DILG department of interior and local government

DOST department of science and technology

DFA department of foreign affairs

THE HISTORY OF

 THERE FUNCTIONS

The DENR traces its roots to the Inspeccion General de Montes, an office established in the country

by a Spanish Royal Decree. The organization's main function

involved forest administration, mineral resources conservation and

land protection.

DSWD Social welfare as a basic function of the state was a concept that

materialized only after the Second World War, although different groups were

undertaking pockets of social work in the first decade of the American occupation

in the country. After the war, the Philippine government gradually

assumed the major responsibility for social welfare.

The development of the Department of Public Works and

Highways (DPWH) into its present structure underwent a long process of evolution spanning a century of colorful and significant events in

laying the groundwork for the physical foundation of the country.

The Government Service Insurance System (GSIS) has for children of low-

income GSIS members to earn a college degree. The GSIS will shoulder up to

P20,000 of the actual cost of tuition and miscellaneous fees of the selected

scholar per semester. The scholars will also get a monthly stipend of P2,000.00.

the National Economic Development Authority was created as the

government’s central planning body. The first major thrust of the government-wide reorganization effected through

Presidential Decree (P.D.) No. 1 issued on 24 September 1972, otherwise known as

the Integrated Reorganization deficiencies of the system then existing.

Department of the Interior and Local Government (DILG) may be traced to the

old Department of Interior (DI) during the Philippine Revolution of 1897. On

March 22, 1897, leaders of the Katipunan led by Andres Bonifacio met

at Tejeros, Cavite in what is known in the Philippine history as the Acla de Tejeros

of the Tejeros Convention.

The Philippines' Department of Science and Technology is the

executive department of the Philippine Government responsible for the

coordination of science and technology-related projects in the Philippines and to

formulate policies and projects in the fields of science and technology in support of national development.

DFA OPENS HISTORY OF FOREIGN SERVICE EXHIBIT AT ROBINSONS MAGNOLIAThe Department of Foreign Affairs (DFA), in partnership with Robinsons Malls, opened the exhibit, “The Philippine Foreign Service: Its Beginnings,” at Robinsons Magnolia in Quezon City on February 17.

INFLATION

By Commodity Group, Year-on-YearAt the national level, year-on-year mark-ups in the indices of the following commodity groups were on the uptrend: food and non-alcoholic beverages (6.7%); clothing and footwear (3.4%); housing, water, electricity, gas and other fuels (3.7%); furnishing, household equipment and routine maintenance of the house (2.5%); transport (1.5%); and communication (0.1%). The rest of the commodity groups either had slower annual growths or retained their last month’s rate.

In NCR, annual inflation of the heavily-weighted food and non-alcoholic beverages index advanced

6.5 percent; clothing and footwear index, 3.3 percent; housing, water, electricity, gas and other

fuels index, 3.2 percent; and health index, 4.2 percent. Those for the rest of the commodity groups either decelerated or remained at their last month’s

rates.

The month-on-month inflation in NCR picked up by 0.5 percent in May due to the 1.3 percent mark-up

in food and non-alcoholic beverages index. The other commodity groups either had slower monthly growths or retained their last month’s rate with the

transport index posting a 0.1 percent decrease during the month.

By Commodity Group, Month-on-MonthMeasured from a month ago level, prices of consumer items in the Philippines grew by 0.5 percent in May. This was brought about by the 0.7 percent increase in the heavily-weighted food and non-alcoholic beverages index. In addition, higher growth rates were seen in alcoholic beverages and tobacco and clothing and footwear indices at 0.3 percent and in furnishing, household equipment and routine maintenance of house index, 0.2 percent. The rest of the commodity groups either slowed down or retained their last month's rate. The indices of transport, communication and education still registered a zero growth.

Revision in the inflation rate in AONCR for April 2014 was due to the updated reports in electricity rates from selected provinces.CPIs and inflation rates by province and selected city are also available upon request at NSO, Industry and Trade Statistics Department, Economic Indices and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).

Employment

"Promoting full and productive employment by developing integrated employment, development and skills policies that maximize the employment impact

of economic growth, investment and development and which are inclusive, gender sensitive, productive and sustainable is essential for achieving ILO’s strategic

objective on employment".

The employment rate in April 2014 is estimated at 93.0 percent. This estimate is based on the April 2014 round of the LFS which did not cover

the province of Leyte. The employment rate for the same month of 2013, computed using data from the April 2013 LFS that includes the province of Leyte, was 92.5 percent. Using data from the same LFS

round, but excluding data from the province of Leyte, the employment rate for April 2013 is estimated at 92.4 percent. For this report, the April 2013 labor and employment indicators, computed based on data which excludes the province of Leyte, are used when comparing the April 2014

estimates with the April 2013 figures.

Four regions, namely, National Capital Region (NCR) (89.6%), Ilocos Region (90.8%), CALABARZON (91.0%),

and Central Luzon (91.4%) had employment rates lower than the national figure. The labor

force participation rate (LFPR) in April 2014 is estimated at 65.2 percent, up from the LFPR in April

2013 which was estimated at 63.8 percent. The labor force consists of the employed and the unemployed.

Workers are grouped into three broad sectors, namely, agriculture, industry and services sector. Workers in the services sector

continued to comprise the largest proportion of the population who are employed. These workers made up 52.8 percent of the total

employed in April 2014 (Table 1). Among them, those engaged in wholesale and retail trade or in the repair of motor vehicles and

motorcycles accounted for the largest percentage (35.7% of workers in services sector) (Table 2). In April 2013, workers in the services

sector accounted for 52.7 percent of the total employed,

Workers in the agriculture sector comprised the second largest group making up 30.7 percent of the total employed in April 2014, while

workers in the industry sector made up the smallest group registering 16.4 percent of the total employed. Similar percentages were recorded for April 2013, with workers in agriculture making up at 31.2 percent of the total employed, and workers in industry sector, 16.2 percent. In the

industry sector, workers in the manufacturing subsector made up the largest group, accounting for 52.4 percent of workers in this sector, and those in construction, the second largest group, making up 40.7 percent

(Table 1 and 2).

Among the occupation groups, the laborers and unskilled workers remained the largest group making up 32.3 percent of the total

employed in April 2014 (Table 1). In April 2013, such workers made up 32.5 percent of the total employed in that period. Officials of the

Government and special interest organizations, corporate executives, managers, and managing proprietors (16.0% of the total employed)

comprised the second largest occupation group, followed by farmers, forestry workers and fishermen (13.3%), and service workers and

shop/market sales workers (12.5%).

Employed persons fall into any of these classes of workers: wage and salary workers, self-employed workers without any paid employee, employers in own family-operated farm or business, and unpaid family

workers. Wage and salary workers are those who work for private households, private establishments, government or government-

controlled corporations, and those who work with pay in own family-operated farm or business. In April 2014, the wage and salary workers

made up 57.5 percent of the total employed, with those working in private establishments continuing to account for the largest percentage

(Table 1).

They made up 44.7 percent of the total employed in April 2014 and 44.4 percent of the total employed in April 2013. The second largest class of workers were the self-employed making up 28.2 percent of the total employed in April 2014,

and 28.6 percent in April 2013. The third largest class of workers consisted of the unpaid family workers, accounting

for 11.2 percent of the total employed in April 2014, and 10.9 percent of the total employed in April 2013.

Employed persons are classified as either full-time workers or part-time workers. Full-time workers are those who work for 40 hours or more in a week, while part-time workers work for

less than 40 hours. Of the total employed persons in April 2014, 59.3 percent were full-time workers, while 38.7 percent

were part-time workers (Table 3). By comparison, in April 2013, full-time workers comprised 63.8 percent while part-

time workers, 34.5 percent.

The proportion of full-time workers had decreased in all industry sectors. The decrease is most notable in the

agriculture sector. In April 2014, workers worked 40.3 hours per week, on average, compared to 41.9 hours in April 2013.

The mean hours worked per week had decreased in all sectors.

Employed persons who express the desire to have additional hours of work in their present job, or to have additional job,

or to have a new job with longer working hours are considered underemployed. In April 2014, the

underemployment rate, which is the percentage of the underemployed to the total employed, is estimated at 18.2

percent, while it was estimated at 19.2 percent in April 2013.

Underemployed persons who work for less than 40 hours in a week are called visibly underemployed persons. They

accounted for 61.0 percent of the total underemployed in April 2014 (Table 4). The proportion in the same month of

2013 was lower (53.7%). By comparison, the underemployed persons who worked for 40 hours or more in a week made up 36.4 percent. By sector, 41.3 percent of the underemployed worked in the agriculture sector, while 40.9 percent were in

the services sector.

The unemployment rate in April 2014 is estimated at 7.0 percent. It is estimated at 7.6 percent for April 2013 based on the April 2013 LFS data which excludes Leyte. Including Leyte,

the April 2013 unemployment rate is estimated at 7.5 percent. Among the regions, the NCR (10.4%), Ilocos Region

(9.2%), Central Luzon (8.6%) and CALABARZON (9.0%) had unemployment rates higher than the national figure (Table 5).

Among the unemployed persons in April 2014, 61.7 percent were males. Of the total unemployed, the age group 15 to 24 years comprised 49.8 percent, while the age group 25 to 34, 30.5 percent. By educational attainment, one-fifth (22.4%) of the unemployed were college graduates, 14.5 percent were college undergraduates, and 32.7 percent were high school

graduates (Table 6).

Business Cycle

Suppose that a car moves 100 kilometers per hour (kph). One second after, suppose that the same car moves between 95 and 105 kph. The outcome is not surprising for

it is normal to change in a second, given the momentum, the wind, the steepness, and

the humps and bumps of the road. But suppose the car doubles its speed to 200

kph or stops to 0 kph in a second.

Then the outcome is not normal and it raises questions. Was it hit by lightning from behind to double its speed to 200

kph? Did the car hit solid rock to completely stop? What part of the change has to do with human intervention, e.g., the driver floors either the gas pedal or the brakes?

In this fashion, the economy is no different from the car. If it grows at a certain rate like 6.4 percent, by virtue of momentum, by us just showing up to

work and doing the same thing as before, the economy will normally grow not too differently

from 6.4 percent. This is so unless some extraordinary event like apower crisis, a natural

disaster, or a technological revolution takes place; or unless some human policy intervention

succeeds or fails dramatically.

One way to explain the growth of the economy is through the Real Business Cycle (RBC) model. Our

population grows by 2 percent per year so that there is a natural growth of consumers and

producers of the same rate. So normally, the economy grows by at least 2 percent. Aside from

population, technological progress takes its course. That is, knowledge and experience accumulate,

institutions mature, good habits destroy bad ones, etc.

Technological progress impacts productivity that results in additional natural growth. In the past 10 years (2002 to the present), I measure this

natural growth at 5.1 percent. Arithmetically, this means 2 percent

via population growth and 3.1 percent via technological progress.

Of course the economy does not actually grow by 5.1 percent every singleperiod. Rather, the

economy cycles around 5.1 percent (thus business cycle). Sometimes it grows faster, and sometimes it grows slower. In the long run, it is (asymptotically)

bound to grow by 5.1 percent per year. That is, unless some extraordinary events like a natural disaster or technical revolution takes place; or

unless some policy intervention succeeds or fails.

Knowing the RBC and in retrospect, the benchmarking, it should have been put this way. In 2010, the economy should have normally grown by

5.9 percent and yet it grew by 7.7 percent. This was a pleasant surprise with anecdotal creditgoing

to election spending. Since 2010 is half and half between the Arroyo and Aquino administrations, it

might be fair to say that either or neither be credited or blamed.

In 2011, the economy should have normally grown by 4.6 percent and yet it grew by 3.8

percent. This was a drag that needs explanation. Natural disaster in

thelikes of Sendong was bad especially for Northern Mindanao. But it was not enough to drag national growth by 1 percent (also

remember that it came on December, 2011).

Anecdotal blame goes to the national government under spending. The government dramatically cut the

budget deficit from P314 billion in 2010 to just less than P200 billion in 2011. It is also convenient to blame

the drag on the European debt crisis.

In the first quarter of 2012, the economy should have normally grown by 4.2 percent and yet it grew by 6.4 percent! This is a pleasant surprise that raises

questions whose answers nobody can answer yet.

But the point is this. Suppose the economy grows by 1 percent and not

the normal 4.2 percent. Then the planner cannot take credit and

citizens should not be glad about the positive growth. Rather, the planner should explain it, as citizens should demand why the economy grew by

only 1 percent.

By the same token, if the economy grew by 6.4 percent and not the normal 4.2 percent, then

the planner can relax, since citizens should be aware that the

economy grew faster than normal.

Going forward, the RBC states that the economy is to normally grow by 5.9, 5.6 and 5.4 percent in the last three quarters of 2012. These numbers should

at least provide planners and citizens a more educated benchmark. If the economy

grows slower than the said numbers, then planners should explain, as citizens should demand why the economy did not grow as fast. Otherwise, if the economy grows faster, then planners need

not explain and proceed to the next quarters.

International Trade

At independence in 1946, the Philippines was an agricultural nation tied closely to its erstwhile

colonizer, the United States. This was most clearly observed in trade relations between the two

countries. In 1950 the value of the Philippines' ten principal exports--all but one being agricultural or mineral products in raw or minimally processed form--added up to 85 percent of the country's

exports. For the first twenty-five years of independence, the structure of export trade

remained relatively constant.

The direction of trade, however, did not remain constant. In 1949, 80 percent of total Philippine

trade was with the United States. Thereafter, the United States portion declined as that of Japan

rose. In 1970 the two countries' share was approximately 40 percent each, the United States slightly more, and Japan slightly less. The pattern

of import trade was similar, if not as concentrated. The United States share of Philippine imports

declined more rapidly than Japan's share rose, so that by 1970 the two countries accounted for about 60 percent of total Philippine imports.

After 1970 Philippine exporters began to find new markets, and on the import side the dramatic

increases in petroleum prices shifted shares in value terms, if

not in volume. In 1988 the United States accounted for 27 percent of total Philippine trade, Japan

for 19 percent.

At the time of independence and as a requirement for receiving war reconstruction assistance from

the United States, the Philippine government agreed to a number of

items that, in effect, kept the Philippines closely linked to the United States economy and

protected American business interests in the Philippines. Manila promised not to change its

(overvalued) exchange rate from the prewar parity of P2 to the dollar, or to impose tariffs on imports from the United States without the consent of the

president of the United States.

By 1949 the situation had become untenable. Imports greatly surpassed the sum of exports and the inflow of

dollar aid, and a regime of import and foreign-exchange controls was

initiated, which remained in place until the early 1960s.

The controls initially reduced the inflow of goods dramatically. Between 1949 and 1950, imports fell

by almost 40 percent to US$342 million and surpassed the 1949 level in only one year during the 1950s. Being constrained, imports of goods and nonfactor services as a proportion of GNP

declined during the 1950s, ending the decade at 10.6 percent, about the same percentage as that of exports. By the late 1950s, however, exchange controls had begun to lose their effectiveness as

most available FOREIGN EXCHANGE was committed for required imports.

A tariff law was passed in 1957, and, from 1960 to early 1962, import and exchange controls were

phased out. Exports and imports increased rapidly. By 1965 the import to GNP ratio was more than 17 percent. Another acceleration of imports occurred in the early 1970s, this time raising the import to

GNP ratio to around 25 percent, the level at which it remained into the 1990s. Imports in the 1970s

were increasingly being financed by external debt rather than by exports.

The composition of imports evolved after independence as industrial development occurred

and commercial policy was modified. In 1949, about 37 percent of imports were consumer goods. This proportion declined to around 20

percent during the exchange-and-import control period of the 1950s. By the late 1960s, consumer imports had been largely replaced by domestic

production. Imports of machinery and equipment increased, however, as the country engaged in

industrialization, from around 10 percent in the early 1950s to double that by the mid-1960s.

As a result of the surge in petroleum prices in the 1970s, the import share of both consumer and capital goods

fell somewhat, but their relative magnitudes remained the same.

No matter the trade regime, the Philippines had difficulty in generating sufficient

exports to pay for its imports. In the forty years from 1950 through 1990, the trade balance was positive in only two years:

1963 and 1973. For a few years after major devaluations in 1962 and 1970, the current

account was in surplus,

TAXE

Exceptionsindividuals ......45 for every qualified dependent child; number of children not to exceed four.Exceptions for Small and Medium Enterprises with income of less than 100,000 pesos

Cedulais a community tax that is paid annually at the Barangay Hall. It is often rated at 5% of income.

Value Added Taxes (VAT)

In the Philippines, the rate of VAT is at 12%. With some additional VAT:Cockpits and Cabarets: 18%Jai-Jalai and racetracks: 30%

And with some exceptions:Big Businesses: 90%Not VAT-registered businesses: 3-5%

Excise taxesAlcoholic beverages, tobacco products, jewelry, petroleum products, mining and petroleum taxes, residence taxes, a head tax on immigrants above a certain age and staying beyond a certain period, document stamp taxes, donor (gift) taxes, estate taxes, and capital gains taxes. A document stamp tax is charged on stock certificates, proofs of indebtedness, proofs of ownership, etc., and normally amount to .75% to 1% of the par or face value of the certificate are imposed with excise taxes.

Comprehensive Agrarian Reform

Declaration of Principles and Policies

It is the policy of the State to pursue a Comprehensive Agrarian Reform Program 

(CARP). 

The Comprehensive Agrarian Reform Programo Known as R.A. 6657 signed by President Cory Aquinoo The welfare of the landless farmers and farm workers

will receive the highest consideration to promote social justice and to move the nation toward sound rural development and

industrialization, and the establishment of owner

cultivatorship

of economic sized farms as the basis of Philippine agriculture.o A more

equitable distribution of land, with due regards to

the rights of landowners to just compensation and to

the ecological needs of the nation, undertaken to

provide farms and farm workers with the

opportunity to enhance their dignity and improve the quality of their lives

through greater productivity of agriculture lands.o In the 70’s, the Philippines has one of the highest farm tenancy

rates in Asia.

The Land reform before 1972 A Rice Share Tenancy Act was passed in 1933 but

the legislation was circumvented by Landlords

interest and was never implemented.

1911 and 1400 in 1954 and 1955 established a formula for crop sharing, promoted

the resettlement of the public lands, and provided

for the expropriation of land estates to provide family

size farms for endless tenants.

In 1963 the Agricultural Land Reform Code (RA

3844) shifted the emphasis away from expropriation

and resettlement to a two stage conversion of share

croppers.

Operation Land Transfer Department of agrarian

reform, consists of issuing and distributing certificates

of land transfer and transferring titles to former

tenants.

he certificate is not deed or title to the land but merely verifies that the tenant is the tiller of the land he claims to be cultivating

Although the intention in 1972 was to transfer titles

for all 1.5million hectares, in 1974 the government

indicated that tenanted holding of 7 or fewer

hectares would be exempted from the land

transfer.

Administrative difficulties have arisen primarily as the result of the long delay in

issuing rules and regulations for the DAR field teams. The

emphasis of the 1972 reforms on the transfer of ownership highlights the problem of incomplete

records of land titles and land

• http://www.answers.com/Q/What_are_the_Philippines_government_departments_and_their_functions

• http://en.wikipilipinas.org/index.php/Department_of_Environment_and_Natural_Resources

• http://members.relia.net/thedane/cn_functions.html• http://www.dswd.gov.ph/about-us/history-of-dswd/• http://www.dswd.gov.ph/about-us/history-of-dswd/#stha

sh.ayFMsA9q.dpuf• http://www.dpwh.gov.ph/about_us/brief_history.htm• http://en.wikipedia.org/wiki/Government_Service_Insura

nce_System• http://www.gsis.gov.ph/

SEARCH LINKS

• http://nro6.neda.gov.ph/historical-background/• http://region12.dilg.gov.ph/v4/index.php/about-us/brief-history• https://www.google.com.ph/search?newwindow

=1&biw=1093&bih=499&tbm=isch&oq=+Inflation+in+philippines&gs_l=img.3..0i24.49381.62077.0.62569.16.11.0.5.5.0.650.1082.4-1j1.2.0.msedr...0...1c.1.61.img..9.7.1111.vj4Vnd8iifw&q=Inflation%20in%20philippines#imgdii=_&imgrc=x5j_rtmox2Mn_M%253A%3B8wtv0Sz3qYoYpM%3Bhttp%253A%252F%252Fweb0.psa.gov.ph%252Fsites%252Fdefault%252Ffiles%252Fitsd%252FCPI2K_0104f1.gif%3Bhttp%253A%252F%252Fweb0.psa.gov.ph%

• 252Fstatistics%252Fsurvey%252Fprice%252Fsummary-inflation-report-consumer-price-index-1994100-april-2001%3B360%3B230

• http://census.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2006100-may-2014

• http://ilo.org/employment/lang--en/index.htm

• http://web0.psa.gov.ph/content/employment-rate-april-2014-estimated-930-percent

• http://aer.ph/the-2012-real-business-cycle-of-the-philippines/

• http://www.photius.com/countries/philippines/geography/philippines_geography_international_trade.html

• http://en.wikipedia.org/wiki/Taxation_in_the_Philippines

• http://en.wikipedia.org/wiki/Comprehensive_Agrarian_Reform_Program

• http://www.slideshare.net/mariz_rose04/chap-14-comprehensive-agrarian-reform-program