LEGAL BASES OF PHILIPPINE EDUCATIONAL SYSTEM
Subject to conditions prescribed by law, all grants
MAJOR LEGAL BASES
The Philippine Constitutions
1. 1935 CONST. Article XIV Section 5
2. 1973 CONST. Article XV Section 8 (1-8)
3. 1987 CONST. Article XIV Sections 1-5(5)
THE 1987 CONSTITUTIONS
Article XIV Sections 1-5(5)
Section 1. The state shall protect and promote the
right of all the citizens to quality education at all levels and
shall take appropriate steps to make such education
accessible to all.
Section 2. The state shall:
1. Establish, maintain and support a complete, adequate and
integrated system of education relevant to the needs of the
people and society;
2. Establish and maintain s system of free public education in
the elementary and high school levels. Without limiting the
natural rights of parents to rear their children, elementary
education is compulsory for all children of school age;
3. Establish and maintain a system of scholarship grants,
student loan programs, subsidies and other incentives which
shall be available to deserving students in both public and
private schools, especially to the underprivileged;
4. Encourage non- formal, informal and indigenous learning
system, as well as self- learning independent and out-of-
school study programs particularly those that respond to
community needs; and
5. Provide adult citizens, the disabled and out-of-school youth
with training in civics, vocational efficiency and skills.
Section 3.
1. All educational institutions shall include the study of the
Constitution as part of the curricula.
2. They shall inculcate patriotism and nationalism, foster love
of humanity, respect for human rights, appreciation of the role
of national heroes in the historical development of the country,
teach the rights and duties of citizenship, strengthen ethical
and spiritual values, develop moral character and personal
discipline, encourage critical and creative thinking, broaden
scientific and technological knowledge and promote
efficiency.
3. At the option expressed in writing by the parent or
guardians, religion shall be allowed to be taught to their
children or wards in the public elementary and high schools
within the regular class hours by instructors designated or
approved by the religious authorities of the religion to which
the children or wards belong, additional cost to the
Government.
Section 4.
1. The state recognizes the complementary roles of the public
and private institutions in the educational system and shall
exercise reasonable supervision and regulation of all
educational institutions.
2. Educational institutions, other than those established by
religious groups and mission boards, shall be allowed solely
by citizens of the Philippines or corporations or associations
at least sixty per centum of the capital of which is owned by
such citizens. The Congress may, however, require increased
Filipino equity participation in all educational institutions. The
control and administration of educational institutions shall
vested in citizens of the Philippines. No educational institution
shall be established exclusively for aliens and no group of
aliens shall comprise more than one third of the enrollment in
any school. The provisions of this subsection shall not apply
to schools established for foreign diplomatic personnel and
their dependents and, unless otherwise provided by law, for
other foreign temporary residents.
3. All revenues and assets of non- stock, non- profit
educational institutions used actually, directly and exclusively
for educational purposes shall be exempt from taxes and
duties. Upon the dissolution or cessation of the corporate
existence of such institutions, their assets shall be disposed
of in the manner provided by law. Proprietary educational
institutions, including those cooperatively owned, may
likewise be entitled to such exemptions subject to the
limitations provided by law including restrictions on dividends
and provisions for reinvestment.
4.
endowments, donations or contributions used actually,
directly and exclusively for educational purposes shall be
exempt from tax.
Section 5.
1. The State shall take into account regional and sectoral
needs and conditions and shall encourage local planning in
the development of educational policies and programs.
2. Academic freedom shall be enjoyed in all institutions of
higher learning.
3. Every citizen has a right to select a profession or course of
study, subject to fair, reasonable and equitable admission and
academic requirements.
4. The State shall enhance the right of teachers to
professional advancement. Non- teaching academic and non-
academic personnel shall enjoy the protection of the State.
5. The State shall assign the highest budgetary priority to
education and ensure that teaching will attract and retain its
rightful share of the best available talents through adequate
remuneration and other means of job satisfaction and
fulfillment.
BATAS PAMBANSA BLG. 232(THE EDUCATION ACT OF
1982)
This was an act providing for the establishment and
maintenance of an integrated system of education. In
accordance with Section 2, this act shall apply to and govern
both formal and non- formal system in public and private
schools in all levels of the entire educational system.
As provided by this Act, the national development
goals are as follows:
1. To achieve and maintain an accelerating rate of economic
development and social progress.
2. To assure the maximum participation of all the people in the
attainment and enjoyment of the benefits of such growth; and
3. To achieve and strengthen national unity and
consciousness and preserve, develop and promote desirable
cultural, moral and spiritual values in changing world.
It is also stated in Section3 that:
The State shall promote the right of every individual
to relevant quality education, regardless of sex, age, creed
socio- economic status, physical and mental conditions, racial
or ethnic origin, political or other affiliation. The State shall
therefore promote and maintain equality of access to
education as well as the benefits of education by all its
citizens.
RIGHTS OF STUDENTS IN SCHOOL (Section 9)
1. The right to receive competent instruction, relevant quality
education.
2. The right to freely choose their field of study subject to the
existing curricula and continue their course up to graduation,
except in cases of academic deficiency or violations of
disciplinary regulations.
3. The right to school guidance and counseling services.
4. The right to access to his owns school records and the
confidentiality of it.
5. The right to issuance of official certificates, diplomas,
transcript of records, grades, transfer credentials and similar
document within thirty days from request.
6. The right to publish a student newspaper and invite
resource persons during symposia, assemblies and other
activities.
7. The right to free expression of opinions and suggestions
and to effective channels of communication with appropriate
academic and administrative bodies of the school or
institutions.
8. The right to form or establish, join and participate in
organizations and societies recognized by the school…, or to
form, join and maintain organizations and societies for
purposes not contrary to law.
9. The right to be free from involuntary contributions except
those approved by their organizations and societies.
RIGHT OF ALL SCHOOL PERSONNEL (Section 10)
1. Free expression of opinions and suggestions.
2. To be provided with free legal service by the appropriate
government office in case of public school personnel and the
school authorities concerned in case of private school
personnel, when charged in administrative, civil and/or
criminal proceedings, by parties other than the school
authorities concerned, for actions committed directly in the
lawful discharged of professional duties and/or in defense of
school policies.
3. Establish join, maintain labor organization of their choice to
promote their welfare and defend their interest.
4. To be free from involuntary contributions except those
imposed by their own organizations.
SPECIAL RIGHTS and/or PRIVILEGES OF TEACHING OR
ACADEMIC STAFF (Section 11)
1. Right to be free compulsory assignment not related to their
duties defined in their appointment or employment contracts
unless compensated thereof. (additional compensation Sec.
14 R.A. 4670- at least 25% his regular remuneration)
2. Right to intellectual property………
3. Teachers are persons in authority when in lawful discharge
of duties and responsibilities… shall therefore be accorded
due respect and protection (Commonwealth Act No. 578)
4. Teachers shall be given opportunity to choose career
alternatives for advancements.
RIGHTS OF ADMINISTRATORS(Section 12)
School administrators shall be deemed persons in
authority while in the lawful discharge of their duties and
responsibilities…. Shall be accorded due respect and
protection (Commonwealth Act No. 578)
RIGHTS OF SCHOOLS (Section 13)
1. The right of their governing boards…….to adopt
and enforce administrative or management systems.
The right of institutions of higher learning to determine on
academic grounds who shall be admitted to study, who may
teach, and who shall be the subjects of the study and
research.
MAINTENANCE OF QUALITY EDUCATION
1. Voluntary Accreditation (Section 29)
2. Teachers and Administrators obligations and qualification
(Sections 176 and 17)
3. Government Financial Assistance to Private Schools
(Section 41)
OTHER LEGAL BASES
1. Act No. 74
This law was enacted on January 21, 1901 by the Philippine
Commission, and provided:
a. establishment of the Department of Public Instruction
headed by the General superintendent
b. the archipelago was divided into school divisions and
districts for effective management of the school system.
c. English was made as medium of instruction in all levels
of schooling
d. optional religious instructions in all schools (Section 16)
e. establishment of a Trade school in Manila (Philippine
College of Arts and Trade- PCAT now known as
Technological University of the Philippines), a school of
Agriculture in Negros, a Normal school in Manila
(Philippine Normal School) (Section 18)
 Philippine Normal School, however, was renamed
Philippine Normal College (PNC) by virtue of
Republic Act No. 416 on June 18, 1949. And on
December 26, 1991, the PNC was converted to
Philippine Normal University as provided by
Republic Act No. 7168.
2. Act No. 2706
This was known as the “Private School Law”,
enacted on March 10, 1917 by the Philippine Legislature,
which made obligatory the recognition and inspection of
private schools and colleges by the Secretary of Public
Instruction so as to maintain a standard of efficiency in all
private schools and colleges in the country.
This law was amended by Commonwealth Act No.
180 passed on November 13, 1936 which provided that:
The Secretary of Public Instruction was vested with power to
“supervise, inspect and regulate said schools and colleges in
order to determine the efficiency of instruction given in the
same.”
And all private schools come under the supervision
and regulation of the Secretary of DPI, thus eliminating
“diploma mills” and substandard schools.
3. Commonwealth Act No. 1 (Amended by R.A. 9163)
Known as the “National Defense Act” passed by the
Philippine Assembly on December 21, 1935, which provided
in Section 81 that:
“Preparatory Military training shall be given with the
youth in the elementary grade school at the age of ten years
and shall extend through the remainder of his schooling into
college or post-secondary education.
By virtue of Presidential Decree 1706, issued by the
late President Marcos on August 8, 1980, otherwise known as
the “National Service Law”, Commonwealth Act No. 1 was
amended, and required all citizens to render, civic welfare
service, law enforcement service and military service.
4. Commonwealth Act No. 80
This law created the Office of Adult Education on
October 26, 1936, so as to eliminate illiteracy and to give
vocational and citizenship training to adult citizens of the
country.
5. Commonwealth Act No. 578
Enacted on June 8, 1940, conferred the status of
“persons in authority” upon the teachers, professors, and
persons charged with the supervision of public or duly
recognized private schools, colleges and universities.
This Act also provided a penalty of imprisonment
ranging from six months and one day to six years and a fine
ranging from 500 to 1, 000 pesos upon any person found
guilty of assault upon those teaching personnel.
6. Commonwealth Act No. 586 (Repealed by R.A. 896)
This is known as Education Act of 1940. It was
approved on August 7, 1940 by the Philippine Assembly.
The law provided for the following:
a. reduction of seven- year elementary course to six- year
elementary course.
b. fixing the school entrance age to seven.
c. national support of elementary education.
d. compulsory attendance in the primary grades for all children
who enroll in Grade I.
e. introduction of double- single session- one class in the
morning and another in the afternoon under one teacher to
accommodate more children.
7. Commonwealth Act No. 589
This law, approved on August 19, 1940, established
a school ritual in all public and private elementary and
secondary schools in the Philippines.
The ritual consists of solemn and patriotic
ceremonies that include the singing of the National Anthem
and Patriotic Pledges.
8. Republic Act No. 139 (Repealed by R. A. 8047)
Enacted on June 14, 1947, and the Board of
Textbooks. This law provided that all public schools must only
use books that are approved by the Board for a period of six
years from the date of their adoption.
The private schools may use books of their choice,
provided the Board of Textbooks has no objections with those
books.
9. Republic Act No. 896
Enacted on June 20, 1953 and known as the
Elementary Education Act of 1953, it repealed
Commonwealth Act 586 and provided for the following:
a. restoration of Grade VII (but never implemented due to lack
of funds)
b. abolition of the double- single session and return to the
former practice of only one
c. class under one teacher in the primary and three teachers
to two classes or five teachers to three classes in the
intermediate level
d. compulsory completion of the elementary grades
e. compulsory enrollment of children in the public schools
upon attaining seven years of age.
10. Republic Act No. 1124 (Repealed by R. A. 7722)
Approved on June 16, 1954, this law created the
Board of National Education charged with the duty of
formulating general educational policies and directing the
educational interests of the nation.
However, this Board which was later renamed
National Board of Education (P.D. No. 1), was abolished bu
virtue of the Creation of the board of Higher Education as
stipulated in Batas Pambansa Blg. 232. The Board’s function with society, except as something to move
is now assumed by the commission on Higher Education or away from.
CHED by virtue of Republic Act No. 7722.
- Man is a microcosm of the universe containing all
11. Republic Act No. 1265 (amended by R. A. 8491) the elements
This law was approved on June 11, 1955, and - Necessary & make up heaven and earth
provided that a daily flag ceremony shall be compulsory in all - Man’s anguish is caused by unfilled diseases
educational institutions. This includes the singing of the
Philippine National Anthem. 3. BUDDHISM- originated from the experience of
the misery of life
12. Republic Act No. 1425 - There is no peace to be found in the world
It was approved on June 12, 1956, it prescribed the - Life is caught in the labyrinth of changes
inclusion in the curricula of all schools, both public and private, - Nirvana, the only way for peace
from elementary schools to the universities, the life, works and
writings of Jose Rizal especially the Noli Me Tangere and El The teachings:
Filibusterismo. 1. The four Noble truths
A. Universal fact of pain and suffering, life is the
13. Republic Act No. 4670 root of suffering
Known as the “Magna Carta for Public School B. Desire are the origin and cause of sufferings
Teachers”. This was approved on June 18, 1966 to promote C. Negating life causes suffering
and improve the social and economic status of public school D. The path, which leads to assertion & suffering
teachers, their living and working conditions, their (accumulating karma or needs that eventually
employment and career prospects. free the mind)
It also provided the following:
1. Recruitment qualifications for teachers 2. The Eight old path
2. Code of Professional Conduct for Teachers A. The right view
3. Teaching hours- 6 hours of classroom teaching (maximum B. The right resolve aspiration
load) C. The right speech
4. Additional compensation- 25% of the regular remuneration D. The right action
5. Health and injury benefits (thru the GSIS) E. The right livelihood
6. One year study leave (sabbatical leave) after seven years F. The right effort
of continuous teaching, the teacher should receive 60% of the G. The right concentration
monthly salary. H. The right contemplation
7. One range salary increase upon retirement (basis
computing the retirement fee). 4. BRAHMANISM- founded on experience of the
8. Freedom to form organizations. divine being who is the one beyond all
multiplicity
14. Republic Act No. 1079 a. The individual self and material world are
Approved on June 15, 1959, it provided that Civil deceptions
Service eligibility shall be permanent and shall have no time b. The only real, non- conscious and beyond good
limit. and evil is Brahman or the great self
c. God become man, incarnations
15. Republic Act No. 6655 d. Moksha (salvation) consist in an escape the cyclic
Known as the “Free Public Secondary Education wheel of time
Act of 1988”, it was approved on May 26, 1988 and provided
for: 5. ISLAM- complete surrender to God
a. Free public secondary education to all qualified citizens and -life of man is supposed to be witness and
promote quality education at all level. testimony of faith in me God (Allah)
b. No tuition or other fees shall be collected except fees
related to membership in the school community such I.D., The Five Pillars
student organization and publication. A. The Muslim Creed
c. Non- payment of these shall not hinder a student from 1. There is no divinity outside God
enrollment or graduation. 2. Muhammad is God’s envoy
d. Nationalization of all public secondary schools ( Section 7) 3. There is no resurrection after man’s death
e. A student who fails in majority of his academic subjects for 4. Divine discuss govern good and evil
two consecutive years could no longer avail of their program. B. Prayer brings man in the right relationship with
God
EASTERN AND WESTERN PHILOSOPHIES C. Charity
D. Observance of the Ramadan
1. Confucianism E. Pilgrimage to Mecca
A. The way to moral virtues is through natural means
- Be true to oneself nature 6. MATERIALISM- Physical matter is the ultimate
- Apply principles of social relationship reality and that all beings and process and
- Doctrine of the mean phenomena can be explained as manifestation
- Emphasize the individual’s place in the society, or results of matters.
getting rid of governments repressive tendencies,
better institutions 7. IDEALISM- a protest against materialism
- Mans obligation is to preserve right human preoccupied with things “abstract” or “spiritual”
relationship -basis reality is composed of or is closely related to
- Rulers must serve the people’s interest the mind or idea
-mind is real
B. Contributions - reality is spiritual world is manifestation of the
1. Doctrine of the mean underlying physical reality
2. Four Nature Principles Every Person is supposed to
have 8. NATURALISM- denies anything as hiring
A. Humanity supernaturality
B. Justice -man in his society are most secondary and
C. Wisdom defendant upon the natural order
D. Propriety - man is at war with himself
3. The Golden Rule
9. PRAGMATISM- society nurtures human life
2. TAOISM- emphasize man’s place in nature in individuals are dependent upon society
contrast to Confucianism, it is not concerned
 10. PERSONALISM- a doctrine that states that the
ultimate reality of the world is a Divine person
who sustains the universe by a continuous act
of a creative world
11. EXISTENTIALISM- man is living individual that
breaths and thinks that has awful freedom of
moral choice that longs for salvation and faces
despair, the individual that lives in anxiety, and
dies.
12. REALISM- physical objects, focus and
relations are “out there” waiting to be
discovered to the will of human beings
13. HUMANISM- rejects supernaturalism
-self- realization
- stressed mathematics as an orderly
arrangement of its parts
- child is born as tabula rasa
14. COMMUNISM- society is a whole is more and
more splitting up into two great classes facing
each other
15. PERFECTIONISM- the ultimate end is the
development or perfection of the self
16. ETHICAL EGOISM- an action only if it
promotes the good or the best interest of the
performing the act.
17. HEDONISM- the view that only pleasure is the
only good as end
18. UTILITARIANISM- claims that the greater
happiness or good of the greater number of
persons is the test of the right or wrong.
19. KANTIAN PHILOSOPHY- claims of
unconditional morality. If performing an act is a
matter of duty, then we should do it regardless
of the consequence.
20. MORAL EVOLUTIONISM- morality is never
fixed or absolute but is continually changing
and evolving gradually into perfect morality.
21. MORAL POSITIVISM- holds that the basis or
source of all moral laws is the laws of the state
SOCIAL SCIENCES
Sociology is defined as the scientific study of human groups
and interaction in a given society.
The forerunners of sociology are:
Auguste Comte- the father of sociology; the philosopher
who coined the term sociology; developed the first complete
approach to the scientific study of society (positivism)
Herbert Spencer-viewed society as similar to a living
organism composed of structures with specific functions; a
proponent of the structural functionalism
Emile Durkheim- has extensively studied groups, social
behavior on the areas of crime and punishment, religion and
the workplace, using suicide as an index.
Karl Marx- the most important exponent of the conflict
theory; his basic argument is that the basic argument is that
the basis of group or social life are competition and conflict
between the “haves” (bourgeois) and the :”have nots”
(proletariat); author of the communist Manifesto
Max Weber- a proponent of symbolic interactionism which
focuses on the study of social life and human behavior from
the standpoint of the individuals involved in day-to-day
interactions
The study of sociology is important because it allows us to
obtain information about society and the different aspects of
life in a factual manner, which may be useful for the making
of regulations and policies by community leaders,
entrepreneurs and government officials for the good of the
society.
Culture refers to the total lifestyle of a people including all
the ideas, values, knowledge, behavior and material objects
that they share. It is categorized into- material culture which
consists of all the physical objects or “artifacts” made or
used by people and nonmaterial culture which consist of all
those things that have no physical existence such as
language, ideas, knowledge and behavior.
The components/elements of culture:
1. Beliefs- shared ideas about how the world
operates.
2. Values- people’s ideas about what is good or bad,
right or wrong.
3. Norms-rules of what people should/should not do,
say or think a given situation
4. Folkways-ordinary usage and conventions or
everyday life
5. Mores-a folkway with moral tone
6. Symbols-something that can express or evoke
meaning
7. Language-a shared set of spoken and often written
symbols and rules of combining those symbols in
meaningful ways. It is the storehouse of culture.
Characteristics of Culture:
1. Culture is shared
2. Culture is a group product
3. Culture is learned
4. Culture is transmitted from one generation to the next
5. Culture is patterned and integrated
6. Culture is adaptive and maladaptive
7. Culture is compulsory
8. Culture is cumulative
9. Culture is dynamic
10. Culture is diverse
Ethnocentrism is the tendency to judge other cultures by
one’s own standards.
Xenocentrism – the tendency to think that other cultures are
superior.
Cultural relativism is the recognition that we cannot judge
another’s culture by one’s standards, after all what might be
immoral to a certain group might be moral to another.
The members of a culture share a set of values which
represent the people’s conscience. These values differ from
one culture to another that their acceptability is relative.
Culture shock – is a term used to denote a feeling of
disorientation, confusion or displacement because of
unknown or poorly understood language, different codes of
conduct, unfamiliar food, and even unfamiliar physical
surroundings caused by living in or exposure to a foreign
environment.
Sub-Culture - refers to the attitude of certain groups
deviating from the habitual practices of the majority.
Xenophobia – the fear of foreign culture
Amalgamation – the mixture and blend of different cultural
elements to become one.
The analysis of culture maybe done through the
(1)ecological approach where cultural elements are
viewed from the context of the total environment in which the
society exists, and (2) functionalist approach where
specific components of culture are analyzed through the
functions that they perform, or the effects they have in
maintaining social order as a whole.
Society – a population that occupies the same political
territory, and participates in a common culture
Group - is a collection of people interacting together in an
orderly way on the basis of shared expectations about each
other’s behavior.
Status – is an individual’s position in a society
Role – a pattern of expected behavior attached to a
particular status.
Primary group – a small group in which relationships are - As with any other element of culture values are
both personal and enduring learned, relative, subjective, hierarchical,
Secondary group – a large and impersonal social groups transmitted, caught, and dynamic.
based on specific interest or activity - Are in consonance with the human being’s
In-group – a social group commanding a member’s esteem rationalistic, biological, spiritual, social, political,
and loyalty economic, moral, aesthetic, creative nature
Out-group –a social group towards which one feels a sense -
of composition or opposition and resistance The Filipino’s Cultural Orientation
-maintenance of smooth interpersonal relations
Socialization is the process that teaches individuals to -pakikipagkapwa tao (hiya
become functioning human beings, who must fit into a -euphemism, pakikisama
number of groups and be productive members of a society; -family oriented
the process of transmitting culture. -finds humor even in most trying times
-has the ability to survive
Sex- the biological state of being male or female. -hardworking and industrious
Gender- the personal traits and social positions that -faithful and religious
members of a society attach to being male or female. -flexible, resilient, adaptable, creative
-sensitive
Male Dominance- a social situation in which more power
and prestige are given to men that to women. Psychology
Psychology – is derived from the Greek words “psyche”
Sexism – the ideology which supports gender inequality and meaning soul and “logos” meaning study. Its common
justifies male dominance. modern definition is: The scientific study of behavior and
mental processes.
Deviance – a behavior that violates significant social norms
and is disapproved by a large number of people. Biological Basis of Human Behavior
Stigma – is a mark of social disgrace that sets the deviant 1. Genetics – the scientific study of how
apart from those who consider themselves normal. characteristics or traits are handed down from one
Anomie - a sense of normlessness that happens when generation to the next.
people in society are socialized into desirable social goals  What genetic traits are transmitted and will
but are denied access to institutionalized means of achieving manifest is pure a matter of chance
these goals. 2. The Nervous system – a highly organized
communication network that is made of nerve cells
Social stratification – refers to the division of a society into and whose basic purpose is to relay information
layers or strata whose occupants have unequal access to back and forth among cells.
social opportunities and rewards. Psychological Development
Social inequality – is the unequal sharing of such social 1. Heredity – refers to the qualities and potentialities
rewards as wealth, power and prestige that are genetically derived from one’s ancestors
- Maturation – the process of unfolding
The five basic social institutions genetically determined abilities and
The family- a relatively permanent group of people related characteristics
by blood, marriage or adoption. Its functions are regulations 2. Environment – all factors (except genes) that
of sexual behavior, replacement of members, socialization, influence the growth and development of an
care and protection, social placement, and emotional organism in any way.
support.
Sensation – the process involved in the initiation and
Education- refers to the various ways in which knowledge is propagation of nerve impulses by the physical stimulation of
transmitted to members of the society. Formal education receptors in the sense organs.
enhances the integration and stability of society through Senses Stimulus Receptors
socialization, social integration, social placement and cultural Sight Light Photoreceptors in
innovation. It may also act as an agent of social change as the retina
through it knowledge is diffused; societies modernized, and Hearing Sound Hair cells in the
may contribute to rebellion or revolution. cochlea
Taste Chemical Taste buds
Government - the pattern of statuses and roles that a substances
society develops to fulfill the need for order within it and the soluble in
need for defense against threats from outside it. Its functions saliva
are to implement political control such as maintaining order, Smell Air borne Hair cells in the
settling disputes, coordinating activities of members and molecules olfactory
protecting its citizens from external threats; and plan and epithelium
maintain activities that involve large positions. Skin senses Physical Free nerve
(touch, pressure on endings
Religion - a collectively held set of symbols and rituals that temperature, skin
express a basic understanding of the world and address the pain)
ultimate concern of the meaning of human existence. Its
primary function is to give emotionally satisfying explanation Perception – the process by which sensory input is
for the great problems of earthly existence. interpreted so as to make it meaningful.
Economy- the institutionalized system for production,
distribution, and consumption of goods and services. Learning – the process by which a relatively enduring
change in behavior occurs as a result of practice.
Conditioning – a form of learning; the acquisition of specific
patterns of behavior in the presence of well-defined stimuli.
Values
Memory – the process by which information is acquired,
Man-is an individual composed of body, soul and spirit. The
stored in the brain, and later retrieved.
body constitutes man’s physical tangible self. Man’s mind
will constitute his spirit- his innermost self. The moral and Intelligence – the capacity to learn and use information; the
emotional nature of man is known as the soul.
sum total of everything we know; the ability to learn and
Ethics- is both the study of human conduct and practical
profit from experience; the ability to solve problems and cope
sciences of the morality of human behavior. with environment; the capacity to understand the world and
Values- are those that are desirable and meaningful to man
resourcefulness to cope with its challenges; a general
as a rational and social being.
capacity for comprehension and reasoning that manifests
- Internalized standardized standards of norms of itself in various ways.
behavior
Motivation – the process of arousing, directing and
maintaining behavior.
Emotion – the condition of an organism during an
experience that is affectively toned, whether mild or intense.
Personality – is the distinctive characteristic pattern of
thought, emotion and behavior that define the individual’s
personal style and his interaction with the environment.
ECONOMICS
Economics is the study of how societies efficiently
use scarce resources to produce valuable commodities and
distribute them to satisfy the needs and wants of their
members. It is also defined as the proper allocation and use
of available resources for the maximum satisfaction of
human wants.
The Fundamental economic questions:
1. What goods and services must be produced and in
what quantities?
2. How shall these goods and services be produced?
3. For whom shall these goods and services be
produced?
BRANCHES OF ECONOMICS
Economics is divided into two branches:
Macroeconomics which deals with the economic behavior
of the whole economy of its aggregates such as government,
business and the like. It is concerned about the gross
national product, level of production, unemployment rate,
etc.
Microeconomics deals with the economic behavior of
individual units or specific segments of the whole economics
such as firms, consumers, price of commodities and the like.
DIVISIONS OF ECONOMICS
1. Production- the process of manufacturing goods
needed by the people to satisfy their needs.
2. Consumption- the proper utilization of economic
goods.
3. Distribution- the marketing of goods and services
to different economic outlets for allocation to
individual consumers.
4. Exchange-the process of transferring goods and
services from one person to another in exchange
for something,
5. Public Exchange- the activity of the government
regarding taxation, borrowing and expenditures.
FACTORS OF PRODUCTION
Factors of Production are economic resources that
are necessary to produce economic goods. They are the
following:
1. Land- natural resources.
2. Labor- human resources and manpower
3. Capital- manmade physical productive capacity
such as plants, machines, tools and the like.
4. Entrepreneur- the person who organizes and
coordinates all the other factors of production to
produce economic goods.
5. Foreign Exchange- the foreign currency reserve
and for importing goods and services in the process
of production.
THE LAW OF DIMINISHING RETURNS
It states that when successive units of a variable
input(like farmers) work with a fixed input (like one hectare
of land) beyond a certain point, the additional product
(output) produced by each additional unit of a variable input
decreases (Fajardo, 1986).
SUPPLY AND DEMAND
Supply is the flow of goods and services which the
firms are willing or can make available in the market at a
given price structure.
Demand is the relationship between market price
and the quantity demanded, expressing how much of the
same commodity or services one consumer or all consumers
would but at a given real price schedule.
Price is the value of a product or services.
MARKET MODELS
Market is an impersonal set of pressures bringing
together supply and demand. The different market models
are the following:
1. Pure competition- a market situation where there is a
considerable number of sellers offering the same
products.
2. Pure Monopoly- a market situation where there is only
one seller of a particular good or service.
3. Monopolistic Competition- a market situation where
there is a relatively large number of small sellers
offering similar but not identical products.
4. Oligopoly- a market situation where there are few firms
offering standardized or differentiated goods and
services.
ECONOMIC SYSTEMS
An economic system is a set of economic institution
that dominates a given economy (Fajardo, 1986). The
following are the major economic systems in the world today.
1. Capitalism- in this economic system, the factors of
production and distribution are owned by the private
individuals or corporations.
2. Socialism- it is the bridge between capitalism and
communism. It is a combination of capitalism and
communism. Under this system, the major factors of
production and distribution and industries are owned
and managed by the state, while the minor industries
are owned by the private sector.
3. Communism- it is the exact the opposite of capitalism,
where all the factors of production and all the industries
are owned and managed by the state. It is also known
as command economy, where private property
ownership is not allowed.
4. Mixed Economics- is one that has element form more
than one economic system. It contains both private and
public enterprises.
TAXATION
The power to tax is an attribute of sovereignty emanating
from necessity. It is a necessary burden to preserve the
state’s sovereignty and a means for the government to
provide the citizenry the needed facilities and protection.
Taxes are enforced proportional contributions from the
persons and property levied by the law-making body of the
State by virtue of its sovereignty in support of government
and for public needs.
Nature of the Power of Taxation
1. Legislative – can only be exercised by the law-
making body
2. Inherent in sovereignty
Purpose
1. Primary – to provide funds or property with which
the government discharges its appropriate functions
for the protection and general welfare of its citizens.
2. Non-revenue objectives
a. To strengthen anemic enterprises by granting
them tax exemptions or other conditions or
incentives for growth
b. To protect local industries against foreign
competition by increasing import taxes
c. As a bargaining tool in trade negotiations with
other countries
d. To counter the effects of inflation or depression
e. To reduce inequalities in the distribution of
wealth
f. To promote science and invention, finance
educational activities or maintain and improve
the efficiency of local police forces
g. To implement police power and promote
general welfare
Classification of Taxes
1. As to subject matter
a. Personal Tax-taxes are of fixed amount
upon all persons of a certain class within
the jurisdiction without regard to property,
occupation or business in which they may
be engaged.
b. Property Tax-assessed on property of a
certain class
c. Excise Tax- imposed on the exercise of a
privilege
 d. Customs Duties- duties charged upon the
commodities on their being imported into
or exported from a country
2. As to Burden
a. Direct Tax- both the incidence of and
liability for the payment of the tax as well
as the impact of burden of the tax falls on
the same person.
b. Indirect Tax- the incidence or liability of the
payment of the tax falls on one person but
the burden thereof can be passed on to
another.
3. As to purpose
a. General Tax- levied for the genera or
ordinary purposes of the government
b. Special Tax- levied for special purposes
4. As to manner of computation
a. Specific Tax- the computation of the tax or
the rate of the tax is already provided for
by law
b. Ad Valorem Tax- tax of a fixed proportion
of the value of the property with respect to
which the tax is assessed; this requires
the intervention of assessors or appraisers
to estimate the value of such property
before the amount due from each taxpayer
maybe determined.
5. As to taxing authority
a. National Tax- levied by the National
Government
b. Local Tax- levied by the local Government
6. As to rate
a. Progressive Tax-rate or amount of the tax
increases as the amount of the income or
earning of the taxed increases
b. Regressive Tax-tax rate decreases as the
amount of the income to be taxed
increases
c. Proportionate Tax- based on the fixed
proportion of the value of the property
assessed.
Basic Principles of a Sound Tax System
1. Fiscal adequacy – the sources of revenue should
be sufficient and elastic to meet the demands of
public expenditure
2. Equality or theoretical justice – the tax burden
should be in proportion to the taxpayer’s ability to
pay
3. Administrative feasibility – tax laws must be
capable of convenient, just and effective
administration on the part of both the government
and the taxpayer
4. Consistency or compatibility with economic goals.
Taxation in the Philippines adheres to the principles of
equality, uniformity and we adapt progressive system
taxation.
Limitations on the Power of Taxation
1. Constitutional - those expressly provided by the
constitution or implied from its provisions
a. Observance of the due process of law and
equal protection of the law (Sec.1,ArtIII)
b. Rule of uniformity and equity in taxation
(Sec.28 (1), Art VI)
c. No imprisonment for non-payment of poll tax
(Sec 20, Art III)
d. Non-impairment of the obligation of contracts
(Sec 10, Art III)
e. Prohibition against infringement of religious
freedom (Sec 5, Art III)
f. And the limitations on the granting of tax
exemptions; and judicial review of all cases
involving the legality of any tax, impost,
assessment, or any penalty imposed in relation
thereto.
2. Inherent – those not embodied in the Constitution
a. Taxes may be levied only for public purpose, or
a purpose affecting the inhabitants of the state
or taxing district as a community and not
merely as individuals
b. Power to tax is limited to the territorial
jurisdiction of the state
c. Prohibition against delegation of taxing power
Tax avoidance-when a tax payer uses his knowledge of
taxation to avoid of minimize the payment of taxes; this is
legal and therefore allowed by law.
Tax evasion- when a tax payer deliberately fails to pay tax
due to the government-, this is illegal and therefore punished
by law.
Agrarian Reform
Agrarian Reform – is a social/political movement to bring
about land reforms and to improve the economic conditions
of the farmer. The rationale of the comprehensive agrarian
reform is to free the tenant farmers from the bondage of the
soil. The redistribution of the lands regardless of fruits or
crops produced, to farmers and regular farm workers who
are landless, irrespective of tenurial arrangements, and
includes the totality of factors and support services designed
to fit the economic state of the beneficiaries.
-the basic of AR is social justice or the equitable diffusion of
wealth and political power for common good.
-the root cause of land monopoly in the Philippines can be
traced back to the feudalistic influence of Spanish rule.
-this land monopoly resulted to poverty among the Filipino
masses.
-in democratic countries like the Philippines, this problem is
solved by land distribution
- RA 6657-the Comprehensive Agrarian Reform Law is the
basic law being implemented by the government now to
solve the inequitable distribution of land and alleviate the
economic conditions of the landless in the country
Salient Features of the CARP
 CARP covers all agricultural lands, public and private,
industrial or corporate regardless of the commodity
produced.
 Retention limits of five (5) hectares to owners and three
(3) hectares to each child who is at least 15 years old
and actively tilling the land
 Rights of indigenous communities to their ancestral
lands are protected to ensure their economic, social and
cultural well-being
 In determining just compensation, the cost of acquisition
of the land, the current value of the property, its nature,
actual use and income, the sworn valuation of the
owner, the tax declarations and the assessment made
by the government assessors shall be considered.
 Land awarded to the beneficiaries shall be paid to the
Land Bank of the Philippines in 30 annual amortizations
@ 6%/annum
 the policy on social justice however is not just for the
landless farmers but must be balanced with the interest
of the landowners as well thru the observance of the
principle of “equal justice under the law”
Rights of the landowner
1. Due process
2. Equal protection of the laws
3. Payment of just compensation
4. Retention for himself and his qualified children(5
and 3 has respectively)
5. The right to choose the area to be retained