SECTION 14: The sustained development of a reservoir of national talents consisting of

Filipino scientists, entrepreneurs, professionals, managers, high-level technical manpower

and skilled workers and craftsmen in all fields shall be promoted by the State.
The State shall encourage appropriate technology and regulate its transfer for the national
benefit.
The practice of all professions in the Philippines shall be limited to Filipino citizens, save in
cases prescribed by law. Promotion of national talent pool of Filipinos.
I.
Human Capital- people- are the most critical sources of economic growth. They are the active
factors of development that utilize through their labor the passive factors (land and capital) to
produce goods and services needed by a growing economy. They determine the pace and quality
of economic, social and political development. A country is only as good as its human resources.
Human capital. The skills, capacities and abilities possessed by an individual which permit
him to earn INCOME. (The Penguin Dictionary of Economics, 1984.)
To analyse man as a producer, some method must be found to measure and quantify his
productive abilities. The idea of human capital is introduced into economic analysis to provide
such a measure. Human capital is defined as an individuals productive skills, talents, and
knowledge. It is measured in terms of the value (price multiplied by quantity) of goods and
services produced. Since consumption is the ultimate goal of our economic system, the value of a
mans human capital is the same as the value of the consumption goods and services which he
directly or indirectly produces. When the value of goods and services rises, the value of human
capital rises. When the value of goods and services falls, the value of human capital falls.
(Thurow, 1970, 1)
Sources of Human Capital
One of the main sources of formation of human capital is the investment in education.
The other sources are investing in health, in job training, information and migration. This is the
reason why parents spend so much on the education of their children. The money spent on
education is akin to the money spent by companies on capital goods in order to increase future
profits. Education is given in order to increase the income in some future date.

Education

Problem:
Top Reasons for Not Attending School The 2013 FLEMMS results also showed that of the nearly
4 million out-of-school children and youth, 22.9 percent have entered into union or marriage.
Another 19.2 percent cited insufficient family income to send child to school as the reason for
not attending school (this refers to all educational expenses other than tuition fee), while 19.1
percent lack the interest in attending school.
Among females, 4 out of every 10 have already entered marriage while 3 in every 10 males have
no interest in attending school. The proportion of out-of-school children and youth whose family
income was not sufficient to send child to school was 22.7 percent and 17.0 percent, among
males and females, respectively Solution:

Solution:
Ten-Point Education agenda
One of the notable thrusts of the current administration under President Benigno S. Aquino III is
to improve the Philippine educational system by employing a concrete education agenda. His
education agenda, entitled Ten Ways to Fix Philippine Basic Education presented during the
2010 National Elections, laid down the ground work for the ultimate realization of education
reforms by the end of his term in 2016. President Aquino emphasized the following points as
critical in reaching educational reforms for the country:
1. A 12-year basic education cycle: Expand basic education in the country from a short 10-year
cycle to a globally comparable 12 years.
2. Preschool for all: All public schools, to offer to all public school children introduction to
formal schooling through a full year of preschool.
3. Madaris education: Make the full basic EFA available to all Muslim Filipino children
anywhere in the country.
4. Technical-Vocational Education (TVE): Reintroduce TVE in public high schools to better
link schooling to local industry needs and employment.
5. A reader by Grade 1: Make each child able readers by the time they complete Grade 1
6. Science and math proficiency: Rebuild the science and math infrastructure in schools and
universities to encourage more students to become scientists, engineers, technicians,
technologists, and teachers, making the country globally competitive in industry and
manufacturing.
7. Private schools as partners: Expand the Government Assistance to Students and Teachers in
Private Education Program (GASTPE) by targeting one million private high school students
every year through Education Service Contracting Scheme (ESCS) while scrapping the wasteful
Education Voucher System (EVS).
8. Medium of Instruction (MOI): Make the MOI larger than just the classroom. The country
should become trilinguallearn English well and connect with the world; learn Filipino well
and connect with our country; and retain your dialect and connect with your heritage.
9. Quality textbooks: Do not tolerate poor textbook quality in schools; hence, textbooks should
be chosen based on three criteriaquality, better quality, and more quality.
10. Build more schools with local government units (LGUs): Build more schools in areas
where there are no public or private schools through a covenant with LGUs in order to realize
genuine EFA.
Government Projects:
Care and education services for children below 5 years old
The Department of Social Welfare and Development (DSWD) is the agency responsible for
human development concerns such as the provision of social services provided in day care
centers. For instance, DSWD is implementing the Supplementary Feeding Program (SFP)
nationwide. This is in addition to the regular meals served to Day Care Center children as part of
DSWDs program to ensure that day care children are well-nourished as they attend classes.13
On the other hand, local government units are mandated to provide the basic services and
facilities such as the establishment and maintenance of day care centers as stipulated in RA No.
7160, otherwise known as the Local Government Code of 1991. The issuance of Presidential

Decree (PD) No. 1567 in 1977 or the decree on Establishing a Day Care Center in Every
Barangay, that requires each barangay to put up at least one day care center in its area of
jurisdiction resulted in the expansion of day care centers in the country.
Thirty-four years after the issuance of PD No. 1567 and 12 years after the enactment of RA No.
6972 or the Barangay-Level Total Development and Protection of Children Act in 1990, out of
42,026 barangays in the country, 4,570 barangays had yet to put up their own day care center
out of (DSWD, 2011). The number of day care centers, on the other hand, has increased from
51,797 in 2011 to 53,436 in 2013.
The Kindergarten Act
RA No. 10157 or the Kindergarten Act, which was approved on 20 January 2012,
institutionalized kindergarten as part of the basic education cycle, making it mandatory for all
five-year-olds to attend preschool prior to their entry to Grade 1. The Kindergarten Act paved the
way for the adoption of kindergarten services for the gifted, children with disabilities, indigenous
people and Muslim pupils, and those in especially difficult circumstances.
Policy on Free and Compulsory Education
In the Philippines, basic education is free and compulsory as mandated by the Philippine
Constitution and the Enhanced Basic Education Act of 2013. The government provides free
schooling from kindergarten to secondary education. The operation of 38,659 public elementary
and 7,748 public secondary schools (DepEd Fact Sheet, 2013) that offer free education to all
Filipino learners is a visible manifestation of the governments adherence to this mandate. The
Philippine National Education for All 2015 Plan of Action, anchored on the 1990 World
Declaration on EFA and 2000 World Conference on Education for All and Dakar Framework of
Action, ensures that every child, youth and adult be served their basic learning needs and that
educational disadvantages do not take root early on. It seeks to put all children aged six and
above in school.
Government Assistance to Students and
Teachers in Private Education (GASTPE)
To expand students access to education, the country legislated Republic Act No. 6728, otherwise
known as the Government Assistance to Students and Teachers in Private Education Act. RA
No. 6728, later amended as RA No. 8545, mandated the implementation of the Education Service
Contracting Scheme (ESCS) and the Education Voucher System (EVS). Based on DO No. 11 s.
2013, which contains the policies and guidelines for the implementation of GASTPE, the ESCS
targets deserving elementary graduates who want to continue studying in private high schools
and provide them with financial assistance from the government. Moreover, the financial
assistance is extended to those in the Open High School Program (OHSP). Each ESC grantee
enrolled in formal school in the National Capital Region (NCR) could receive PhP10,000.00 per
entire school year while those in all other regions could receive PhP6,500.00 per entire school
year. A grantee under OHSP could receive as
much as PhP6, 500.00 per year. The number of students benefiting from GASTPE has increased
by 21 percent from 666,000 in SY 2009-2010 to 809,000 in SY 2013-2014.21

Testing programs for education access

The DepEd, through the National Education Testing and Research Center (NETRC), paves the
way for the unschooled children and school leavers who want to enter/reenter the formal
education system at their appropriate level of competency through the Philippine Educational
Placement Test (PEPT) and Philippine Validating Test (PVT). The PEPT provides equivalency
and placement in the formal school system for adult learners, recognizing their learning
experiences gained outside of school. Those who drop out from the elementary and the
secondary schools or those who have never attended a formal school but can read and write, can
avail of this equivalency and placement test. The PVT is an equivalency type of test intended to
validate learning gains acquired in various situations under certain circumstances such as those
who dropped out of school by force of circumstances before the end of school year, e.g.,
absences caused by illness.
Mother Tongue-Based Multilingual
Education (MTB MLE)
Various language projects such as the DepEds Lingua Franca Project (1999-2001) that piloted
the use of mother tongue as medium of instruction for Grade 1 through DO No. 80 s. 1999, and
the Summer Institute of Linguistics (SIL) Lubuagan MLE Program (1999-present) showed that
the use of the mother tongue in instructing children in the early grades boosts childrens potential
to learn and succeed in their academic lives. With strong resolve, the DepEd institutionalized the
use of the childs mother tongue as the medium of instruction in all areas except for subjects of
Filipino and English through DO No. 74 s. 2009. In SY 2012-2013, MTB MLE was
implemented nationwide with 12 major languages and later expanded into 19 languages. All
elementary schools are now obliged to use their own dialect or mother tongue as the medium of
instruction and offer a subject on the same in Grades 1 to 3.
Health
Similarly, health is also considered as a very essential input for the future development of a
nation. Health is also important for the development of individual. Obviously a person with good
health can work much better than a not so healthy person. Therefore, the money spent on health
services in order to ensure the well being of individuals in a society is very essential in order to
attain growth.
The leading causes of death are diseases of the heart, diseases of the vascular system,
pneumonias, malignant neoplasms/cancers, accidents, COPD and allied conditions, diabetes
mellitus, nephritis/nephritic syndrome and other diseases of respiratory system.
The Department of Health (DOH) spearheads the establishment of the DOH Hypertension and
Diabetes Club. This will be launched nationwide to enhance the initiatives in addressing NonCommunicable Diseases (NCD) and will serve as a support group in communities to disseminate
information and ensure that appropriate management is provided to all patients.
NCDs like cardiovascular conditions, diabetes, lung disease, and cancer killed 38 million people
worldwide in 201216 million of them are under the age of 70 (WHO Global Status Report in
Non-Communicable Diseases 2014). Unhealthy habits such as smoking, physical inactivity,

alcohol abuse, and unhealthy diet have sparked an epidemic of diseases which together constitute
the leading cause of death.
Th reduction of these distressing figures is the Department of Health's latest target. The DOH has
allocated P10 million for the "Pilipinas Go4Health" movement, a program that aims to prevent
and control the prevalence of these diseases known collectively as non-communicable diseases
(NCDs).
The Department of Health (DOH) said on Friday that starting January 2016, hypertension and
diabetic patients nationwide may avail of free maintenance medicines for their illnesses from the
DOH
regional
rural
health
units
(RHUs).
Diagnosis will be made by barangays health workers (BHWs) in the RHUs. To ensure that
BHWs can help in the monitoring and assessments, they are provided with Blood Pressure
Apparatus and Glucometer sets to measure sugar level.
Once diagnosed, the patient will be enrolled in the club.
As a benefit, the patients can have access to DOH drugs for hypertension (Losartan, Amlodipine,
Metroprolol) and diabetes (Metformin).
As members, the patients will be included in the activities that promote healthy lifestyle so that
their blood pressure and sugar level can be controlled.
Pilipinas Go4Health
1. Go Smoke-Free
Ten Filipinos die every hour because of illnesses related to cigarette smoking, according to
Enrique Ona (DOH Secretary). He said 17.3 million Filipinos aged 15 years and older are
tobacco smokers, based on data from the 2009 Global Audit Tobacco Survey.
"GATS data show that a number of smokers accessed tobacco when they were too young to
make informed choices. By the time they are old enough, they may find it very hard to quit and
some may already suffer its consequences," he said.
Smoking is directed linked to lung cancer, emphysema, and bronchial disorders, according to
DOH.
2. Go Sustanya
Consumption of salt, sugar, fats, and high-calorie food has to be reduced to prevent hypertension
and cardiovascular diseases, as well as obesity. A DOH statement on proper nutrition added that
increased intake of fiber, such as fruits and whole grains, is needed to lower cholesterol and
blood sugar levels.
In an interview with GMA News Online, Ona said the DOH is planning to propose a bill that

would regulate food labeling.

"If you buy food ngayon, 'yung contents nasa likod, so who reads it?" he said. "If you want to
give that information, ilagay natin sa harap."
3. Go Sigla
Only 7 out of 100 Filipino adults exercise at least three to four times a week, the DOH said,
based on findings from the Food and Nutrition Institute (FNRI).
"The human body is designed for motion," Ona said.
4. Go Slow sa Tagay
According to DOH, the effect of alcohol varies in every person, and while it may offer health
benefits to some, it may actually impose a major health risk to others.
Excessive alchohol consumption can lead to drunk-driving accidents, which is one of the reasons
cited by President Benigno Aquino III when he signed into law last May a bill penalizing drivers
who are under the influence of alcohol and dangerous drugs.
Republic Act (R.A.) 10586, signed by the president on May 27 2013, gives law enforcement
officials the authority to conduct sobriety and breath alcohol tests on drivers found to have
"indications" of drunk driving, such as overspeeding, weaving, swerving and lane straddling.
II.
Points to Consider:
Paramount objective of trade policy. The Constitution makes it clear that the trade
policy which it requires the State to promote must be one that serves the general welfare.
Benefits from international trade. International trade benefits a country by allowing it
to buy from other countries, goods it lacks, or cannot produce better, or can produce only at
higher cost, and sell surplus goods, or those it can produce better and cheaper.
Regulation of Technology transfer. 1). Benefits from technology transfer. It is safe to
say that underdeveloped economies are so because they continue to depend on traditional
technology particularly in agriculture. The growth gap between developed and underdeveloped
countries is generally wide as the technological gap. 2). Safeguard against import of
inappropriate foreign technology. The transfer or appropriation of technology, however, is not
necessarily the solution. There must be safeguards against import of obsolete foreign
technologies particularly where they involve the payment of high charges such as royalties and
license fees.

Pareto efficiency

Is an economic state where resources are allocated in the most efficient manner. Pareto
efficiency is obtained when a distribution strategy exists where one party's situation cannot be
improved without making another party's situation worse. Pareto efficiency does not imply
equality or fairness.

Absolute advantage
Smith argued that it was impossible for all nations to become rich simultaneously by
following mercantilism because the export of one nation is another nations import and instead
stated that all nations would gain simultaneously if they practiced free trade and specialized in
accordance with their absolute advantage.[1] Smith also stated that the wealth of nations depends
upon the goods and services available to their citizens, rather than their gold reserves. [4] While
there are possible gains from trade with absolute advantage, the gains may not be mutually
beneficial.
FOB value is the price paid for the goods plus the cost of transportation, loading, unloading,
handling, insurance, and associated costs incidental to delivery of the goods at the port or place
of export in the country of export.

Mineral fuels, lubricants and related materials, however, continued their downtrend. Accounting
for 9.6% of the total import bill that month, the category contracted by 40.1% to $582.85 million
in November. Year to date, it had declined by 41.7%.
External events such as the decline in commodity prices, especially crude oil, will be beneficial
for the economy as it leads to lower production costs, said Mr. Balisacan.
University of Santo Tomas economics professor Emmanuel J. Lopez said the downtrend in the
commodity has been anticipated years back due to the self-sufficiency of western countries.
Locally, we benefit from depressed oil prices, but this benefit may be short-lived and exclusive
considering that it may be an indicator of world economic slowdown, Mr. Lopez said.
EXPORT CORRELATION DOUBTED
Still, the uptick in imports may not translate to export growth this year, with economists citing

sluggish external demand as the culprit to this perceived import-export disconnect.

Strong import growth may not translate to export growth, even though they showed some
correlation last time, Standard Chartereds Mr. Ng said.
It may mean import growth for domestic use.

The balance of trade in goods (BOT-G) for the Philippines in November 2015, however,
registered a deficit of $976.87 million higher than the $361.35 million trade deficit in the same
period last year.

III.
Practice of all professions limited to Filipinos Profession - has been defined as a calling which
requires the passing of an appropriate government or bar examination, such as the practice law,
medicine, public accountancy, engineering, etc. Nature of right to practice The practice of
profession involves public interest and is open only to persons who have undergone the
necessary academic preparation and passed the appropriate government examination and who
possesses such other special qualification prescribed by law.
Exercise of privilege by aliens. The Constitution limits the practice of all professions in the
Philippines to Filipino citizens. However, Congress may provide otherwise in certain cases,
pursuant to the treaty, or on grounds of reciprocity.
In Board of Medicine vs Yasuyuki Ota GR 166097 July 14 2008,
Facts:
Yasuyuki Ota (respondent) is a Japanese national, married to a Filipina, who has continuously
resided in the Philippines for more than 10 years. He graduated from Bicol Christian College of
Medicine on April 21, 1991 with a degree of Doctor of Medicine. 5 After successfully completing
a one-year post graduate internship training at the Jose Reyes Memorial Medical Center, he filed
an application to take the medical board examinations in order to obtain a medical license. He
was required by the Professional Regulation Commission (PRC) to submit an affidavit of
undertaking, stating among others that should he successfully pass the same, he would not
practice medicine until he submits proof that reciprocity exists between Japan and the
Philippines in admitting foreigners into the practice of medicine.6
Respondent submitted a duly notarized English translation of the Medical Practitioners Law of
Japan duly authenticated by the Consul General of the Philippine Embassy to Japan, Jesus I.
Yabes;7 thus, he was allowed to take the Medical Board Examinations in August 1992, which he
subsequently passed.8
In spite of all these, the Board of Medicine (Board) of the PRC, in a letter dated March 8, 1993,
denied respondent's request for a license to
practice medicine in the Philippines on the ground that the Board "believes that no genuine
reciprocity can be found in the law of Japan as there is no Filipino or foreigner who can possibly
practice there."
Ruling:

Presidential Decree (P.D.) No. 223 (CREATING THE PROFESSIONAL REGULATION

COMMISSION AND PRESCRIBING ITS POWERS AND FUNCTIONS) also provides in
Section (j) thereof that:
j) The [Professional Regulation] Commission may, upon the recommendation of the Board
concerned, approve the registration of and authorize the issuance of a certificate of registration
with or without examination to a foreigner who is registered under the laws of his country:
Provided, That the requirement for the registration or licensing in said foreign state or country
are substantially the same as those required and contemplated by the laws of the Philippines and
that the laws of such foreign state or country allow the citizens of the Philippines to practice the
profession on the same basis and grant the same privileges as the subject or citizens of such
foreign state or country: Provided, finally, That the applicant shall submit competent and
conclusive documentary evidence, confirmed by the Department of Foreign Affairs, showing that
his country's existing laws permit citizens of the Philippines to practice the profession under the
rules and regulations governing citizens thereof. The Commission is also hereby authorized to
prescribe additional requirements or grant certain privileges to foreigners seeking registration in
the Philippines if the same privileges are granted to or some additional requirements are required
of citizens of the Philippines in acquiring the same certificates in his country
Section 9 (1) of R.A. No. 2382 , which provides who may be candidates for the medical board
examinations, merely requires a foreign citizen to submit competent and conclusive documentary
evidence, confirmed by the Department of Foreign Affairs (DFA), showing that his countrys
existing laws permit citizens of the Philippines to practice medicine under the same rules and
regulations governing citizens thereof.
It is enough that the laws in the foreign country permit a Filipino to get license and practice
therein. Requiring respondent to prove first that a Filipino has already been granted license and is
actually practicing therein unduly expands the requirements provided for under R.A. No. 2382
and P.D. No. 223.
The Supreme Court, while upholding the principle that license to practice medicine is a privilege
or franchise granted by the government, declared that the power to regulate the exercise of a
profession or pursuit of an occupation cannot be exercised by the State or its agents in an
arbitrary, despotic or oppressive manner.