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Greetings!
We, a group of BS Legal Management students of the Ateneo de Manila
University, are taking up a course on Intermediate Microeconomics Theory
under the guidance of Mr. R.Lance Chua, MA. Our group, the Gamechangers,
would like to propose to you our 8-point economic agenda that we believe
will be beneficial to the betterment of our country and its economy.
Our groups proposal is entitled Boom Pinas: Road to a Booming Philippines,
Trending with the Global economy. We envision a Philippines that can stand
on its own beside a 1st world country as a 1st world country. This is not an
impossible feat.
With the different lessons and theories we have learned from our class, we
applied some of them to the different sectors and industries of our nation.
We looked through the different issues and problems our country is currently
facing and we used the knowledge that we learned from class in order to
provide a long lasting solution to it.
As young people of society, we are the future of this country. We would love
to see a better Philippines and a better tomorrow. With this 8-point economic
agenda, we believe that we can bring awareness and change to the
understated sectors of our country that just might be the key to a greater
development. We thank you for your time and consideration towards our
project.
The Gamechangers
I. Privatization of the MRT, LRT and public transportations alike that are mis
managed by the government. (Cost of Production)
In privatizing the MRT and LRT, the government will have lesser
problems. In the Philippines, most of the government run businesses fail or
In doing this agenda, the government may reap a lot of benefits. First,
for example, if the government decides to incentivize the companies by
cutting up their taxes or subsidize the public utility expense (water expense,
electrical expenses, etc.) of the companies, the companies would think about
manufacturing their raw materials here. With this, they could minimize the
cost of production (lower taxes) because the cost of buying the raw material
would be equal or more than the cost of producing in the country. here is that
instead of importing its raw materials, the company would then hire more
laborers. When hiring more laborers, more people will have jobs. So if more
people have jobs, consumption will go up and money will be able to circulate
more in the economy.
Furthermore, according to example 7.4 of the book: (When the firm is
not charged for dumping its wastewater in a river, it chooses to produce a
given output using 10,000 gallons of wastewater and 2000 machine-hours of
capital at A. However, an effluent fee raises the cost of wastewater, shifts
the isocost curve from FC to DE, and causes the firm to produce at Ba
process that results in much less effluent.)
This example points out that if the cost were much higher, the
company would produce less. If the cost were lower, the company would
then produce more. So, if the government were to give them incentives, the
cost of producing would be lower and the company would be incentivized to
increase its production.
With this, not only can the government increase its GDP and GNP
because of the increase in production of the companies, it can also help a lot
of people by giving more job opportunities to the unemployed.
expenditure
will
increase
as
more
buildings
and
for the lost resources. The proceeds for this will then be used to enhance and
protect the remaining natural resources.
sources: http://www.tradingeconomics.com/philippines/unemploymentrate
IV. Government must invest in research and development for weather
forecast and disaster prevention measures for peoples safety and to prevent
possible future destruction of infrastructures that leads to increase in death
rate and unemployment rate in the long run.
Just last year, the country has suffered a major loss when a storm
surge affected Tacloban. A lot of people died and infrastructures were
destroyed. Disasters and its magnitude are not easy to predict. However,
developed countries have shown that it is possible for destructions to be as
minimal as possible, equipped with knowledge and proper preparation. The
group believes that disaster mitigation, can also be an economic booster in
such a way that not only will it prevent long run economic problems but it
will also solve some problems in the short run by employing people and
purchasing goods.
First, the government must continuously help in funding PAGASA in its
research and development as it tries to enhance its forecasting system. This
may include purchase of state-of-the-art equipment that is an investment in
the long run.
Second,
V. The government should tax people so that it could provide subsidies to the
firms that produce vaccinations which bring out positive externalities.
When the government provides subsidies that will reduce costs for
these firms, these firms will be encouraged to produce more or supply more
of the good. These subsidies could be obtained from collected taxes from the
citizens.
There are about 16 million Hepatitis B carriers today. Our country is a
highly endemic area of this disease with about 12%-16% of its population
infected by it. In the Philippines, free Hepatitis B vaccinations in public health
centers are only given to infants and Children (Republic Act 10152:
Mandatory Infants and Children Immunization Act of 2011). If the
government subsidizes these firms, and the cost of the vaccine goes down,
more people (adults) could avail of the immunization. These people would be
encouraged to avail of the vaccine since its price may now be more
affordable. They would be able to have themselves vaccinated even in
private hospitals/ health centers.
If this agenda is done, it could also be a possible solution to the free
rider problem. Without knowing, citizens who are experiencing these positive
externalities are indirectly paying for the benefits they receive. For this to
happen, the government could tax its citizens to fund for the subsidy it could
give to firms who produce Hepatitis B vaccines. When the firm receives a
subsidy from the government, it could be able to produce/supply more
(therefore, there would be increase in supply) since production costs
decrease and the prices of the vaccines they produce could go down causing
its demand to also increase. So in the long run, when already a lot of its
citizens get vaccinated, even the ones who didnt get vaccinated will be
given protection. There is already a positive effect of the vaccinated
individuals not spreading the disease to others.
Source:
http://www.economicsonline.co.uk/Market_failures/Positive_externalities.html
http://www.doh.gov.ph/node/1067.html
http://www.pchrd.dost.gov.ph/index.php/2012-05-23-07-46-36/2012-05-2400-01-11/4760-prevent-hepatitis-b-consult-your-doctor-today
VI. The government should provide incentives for the youth for them to take
up farming/agriculture.
Less and less youth today are choosing to involve themselves in
farming. Studies show that the youth of today find farming less appealing,
and they would prefer to take up degrees in other fields such as medicine
and engineering. To solve this problem. the group believes that the
government could team up with certain agricultural firms that would be
willing to teach the youth modern techniques
Francis Pangilinan, this will serve as a threat in our countrys food security
efforts.
If the government together with the agricultural firms have seminars
and trainings introducing modern techniques of farming to the youth, the
youth may be enticed to give it a try. This will solve a lot of problems in the
long run. New techniques and science involved in farming, means that the
income of these farmers will increase. An increase in income will lure in
people to consider farming as a career. With more farmers, unemployment
will be reduced and an increase in production of crops will ensure stable food
supplies in our country. We might also be able to provide enough cavans of
rice to support our countrys needs so that we would not need to import rice
from other countries such as Thailand and Vietnam anymore. We could also
focus more on exporting rice instead. This will also be a good opportunity for
local rice manufacturers/producers since their production and sales could go
up. The countrys GDP and GNP would increase too.
Source:
http://business.inquirer.net/18611/philippines-is-running-out-of-farmers
different firms which in turn will lead to a higher income for the companies.
With this, a higher consumption of other goods and services in the market.
The lack of internet access gives a disadvantage in terms of making
opportunities for themselves.The internet provides us with the ease to
communicate and to research. With this simple and effective way to
communicate and research about different information, it is easier to develop
different other products and services the different firms can produce and sell.
The increase in the access to the internet will also increase the productivity
of the people.
SOURCES:
http://ahumanright.org/
http://www2.ohchr.org/english/bodies/hrcouncil/docs/17session/A.HRC.17.27_
en.pdf