Professional Documents
Culture Documents
CHAPTER 1
The national economy is composed of business enterprises, households and the government.
They are the major sectors who give life to the national economy.
Market economy or free enterprise economy – means there are economic freedoms, like free
competition, free choice of investments and prices are determined by the interaction between
demand and supply.
Our economy has not improved much because of our colonial and primitive agricultural
economy.
Economic development depends on the quality of the people of a given country. Knowledge,
skills and values are the main determinants of economic growth.
250,000 to 300,000 years ago – inhabitants in the country came from neighboring countries in
Asia through land bridges. They lived by hunting, fishing and food gathering.
Later on they were introduced to primitive agriculture and handicrafts. Then the barter system
was introduced where people were no longer nomadic. (permanent settlement)
The Philippines became slave by three colonial masters: Spain, United States and Japan
Spain – colonized the Philippines for 300 years
Intramuros – Spanish colonial capital
Economic contributions – encomiendas
- Gallen trade
- Tobacco monopoly
Martial law was declared to prevent further deterioration of the economy, it was
suppurted by the US.
It brought the economy further down
In 1984, inflation rate reached 50%
GNP growth rate was -7.1 %
PNB and DBP were bankrupt
Aquino Administration
RAMOS ADMINISTRATION
Priority programs to energy, peace and order and strengthening of local government
units.