ECON FINALS - The formation of member-managed groups

MODULE IV - to pool resources and to generate growth and

development
1. Countryside Development
through the acceleration of investment and economic
- a popular approach to the problem of inadequate
activities.
employment and income for the rural population. The
process of transforming the rural areas into productive 3. Pump-priming Approach
centers
- The injection of massive government funds into the
In line with this approach the following actions are taken: economy purposely to spur
________________________
economic activity, to increase employment and income,
advantage of retaining the population in the rural areas to build infrastructure and to

1.1 Agrarian Reform induce private sector investment.

- Land Reform which is the abolition of tenancy and the 3.1 Foreign Investment Attraction
conversion of
- The developing countries have given much attention to
sharecroppers to leaseholders a the creation of a

-more strongly directed to equitable distribution of favorable climate for the entry of foreign investments.

wealth than to generating economic growth. the process, the foreign investors will provide the
benefits of development
1.2 Cottage Industries
in terms of employment, income, and a better quality of
- It generate income and employment in the rural areas.
life for the people.
It is small enterprises
4. Appropriate Technology Approach
based on indigenous raw materials,
-use of machines and equipment of low
handicraft, woodcraft, embroidery, metal craft,
capacity, low cost and suited to small-scale production.
-to earn cash

while waiting for the harvest and planting seasons and use of small thresher’s aid water pumps and the
to give them a
construction of biogas
subsidiary source of income
tanks for electricity and fuel are appropriate technology
1.3 Import Substitution applications that have

- The productive capacity of a country that has suffered improved the farm enterprise
trade deficits is
5. Non-Formal Education
usually oriented to the development of a capacity to
induces people to use their skill for self-employment. It
duplicate imported goods.
has been the way to
This is called import substitution, which may be
improve income for many urban and rural poor and has
designed to conserve the foreign
therefore done much to
exchange
mitigate poverty.
-hindrance to the free flow of goods between
6. Non-Government Organizations
countries
ave been a way for aid to reach the urban
2. Cooperative Approach
and rural poor directly through people-oriented most widely used fuel for generating electric power has
livelihood projects. been coal and crude oil.

-expected to provide facilitative services such as seed - Countries with limited coal and crude resources that
dispersal, are also low in purchasing

operation of irrigation systems, demonstration of power have turned to alternative sources of energy.
technology,
- Some of the common are: hydroelectric power,
7. Preferential Credit dendro-plant, and geothermal

may give preferential power generation.

status to certain projects that contribute to Labor and Consumer Protection

development.
- One approach to development is to preserve and
8. Tax Relief Approach enhance the gains and

- Selective tax relief to some industries is an approach benefits of laborers and consumers.
that may enable
- A high wage rate causes the cost production to rise,
government to influence the quantum of investment
Deregulation
towards the desirable area.
- There is advocacy that developing countries that have
-to let private business grow at a faster rate than they
installed so many
would if taxes were to be paid in full.
regulations on business and industry should dismantle
- The response to tax relief however is mixed. them to allow the market

*Tax exempt status given to an investment area gives the forces to operate freely.
impression that this is
- Some of the objects of clamor for deregulation is
for attracting investment due to its low profitability. wages, energy rates, airfares,

* Tax exemption is a real advantage that should be taken as an
opportunity.
* To the government, tax relief is in anticipation of the collection of
more taxes from a fully-grown industry in the future.
9. Vocational-Technical Education
requires adequate manpower to do the
shipping fares, fuel prices, rent and land transport fares.
Fertility Curtailment Incentives
- Rapid population growth is a deterrent to the growth
of a developing country
because the households are not able to save as the
number of dependent

technical work, which do not call for professional increase.

qualifications.
‘’However, the greatest obstacle to economic
-- There should be enough graduates who will do the
work instead of an excess of
development is man himself.’’
graduates to perform managerial and professional work.

10. Alternative Energy Sources MODULE V

- Energy is a basic requirement of growth and
development. Industrialization is
stunted when the supply of energy is inadequate and
irregular. The traditional and
Industrialization and the Third World Countries
the most important requirement for industrialization is
the restructuring the values and institutions in society.
This chapter presents: approaches to industrialization,
reasons for industrialization, big mistakes in
industrialization, problems with industrialization, and
barriers to industrialization, and early Philippine
industrialization
Approaches to industrialization
However, not a few developing countries have made
mistakes in their strategies’ or approaches to
industrialization. it is not true that almost any kind of
industrialization will help them attain their objectives. It
is likewise wrong to assume that the benefits of
industrialization will automatically flow from investments
to industrial projects.
Developing the foundation of industrialization
favorable agricultural development, it would be much
easier to promote industrialization
Industrial countries like the United States, Japan and
those in Europe started their economic development
with a strong agricultural base
Reason for Industrialization
1. To increase the national income of the country
2. To improve the stability of export earnings and
national income.
3. To provide more employment to the unemployed and
underemployed.
4. To expand markets of local raw materials.
Big Mistakes in Industrialization
Industrial Development by Murray, Bryce.
Many of these unsound projects were put up without
proper evaluation. Such mistake was a great waste of
scarce resources.
For example, long and beautiful super high ways, and
imposing buildings whose cost is several items as much
as the expensive machines they housed.
-It states that in putting up a community project, always
begin with a simple project which is a felt need of the
community.
Problems of Industrialization
Max Weber, in his Protestant Ethics claimed that the
thrift and industry of the Protestants were the causes of
progress in Europe
-foreign loans and bids are only for agricultural or rural
development – not for industrial development.
-They impose quotas, tariffs, and similar trade barriers
against products coming from the less developed
regions. They cannot immediately retaliate because
their economies are heavily dependent on the rich
countries.
Encourage foreign investments
Foreign investment should be a stepping stone for
industrial development. It should not be a substitute for
local private initiative entrepreneurship
-to imitate Western technology as a development
strategy may not be correct.
Barriers to Industrialization
-It is noted that not a few conditions in many South
Asian countries have not been favorable to
industrialization. For instance, there has been inefficient
public administration.
Myrdal gave his observations on the region’s dream of
industrialization;
 There is an unskilled labor force and a
small-inexperienced managerial
resource.
 Rapid industrialization will not generate
sufficient employment. It may even be
negative if modern industry will
compete with traditional labor-
intensive manufacturing.
 There is inadequate logistic support
such as power, transport and
communication facilities. Also, not all
raw materials for industrialization are
locally available.
 Existing social economic, cultural, and
political institutions are not favorable to
development.
 Attitudes and values are likewise not
suitable to industrialization.
Early Philippine Industrialization Why are these countries successful despite their natural
shortage comings? The only
The goal of the early Philippine economy has been to
increase to share of manufacturing in the GNP. answer is the people.

Since 1916, there were experimentation with policies The human resource is still the most important factor in
which were envisioned to promote manufacturing in the economic
Philippines
development, and money, machines, and materials are
Professor Frank Golay of Cornell University stated that useless.
Philippine industrialization policy included (Golay, 1961)
- long process of education and training.
- Direct Participation of the State in
Investment in People
manufacturing and industrial activities as an
entrepreneur or partner of private firms. **human capital
- Development of financial institutions for
there is a less corruption,
allocating scarce credit and foreign
exchange resources. favoritism, tardiness, and other negative work attitudes.
- Provision of government incentives to private In Japan,
entrepreneurs.
Miseducation and Wrong Values
- Promotion of selected foreign investments in
manufacturing. THEY PREFER WHITE COLLAR JOBS
Government Participation
Young people always cast a social stigma on such
President Ramon Magsaysay in 1953
“low-class” courses.
selling government companies in which the private
sector was interested The Right Kind of Education

“padrino system” Moreover, the kind of

Philippine industrialization rose rapidly since 1950 in education that vigorously stresses the development of
terms of growth human, social and cultural

only 8.5 percent of the national income compared with values was essential elements which make a nation
42.3 percent in agriculture great.

-inefficiency, favoritism, and corruption crept into the Strategies for Developing People
operations of infant industries. Many of these industries
Developing economies have two basic problems: one is
remained in their infant stage at the expense of the
shortage of technical
taxpayers and consumers.
and skilled manpower, and the other is the surplus labor
Recto pointed out:
in all sectors of the economy
nothing more than assembling, bottling or packaging
especially in agriculture.
plants or concerns which import an almost finished
product and perform the last stage of manufacturing W.A. Harbinson, a known resource development expert,
before selling it on the selling counter . When we refer stated the objective
to these enterprises as “industries” we are deceiving
of manpower analysis:
ourselves (Constatino, 1965)
1) To identify the main critical shortages of skilled
MODULE VI
manpower in every sector
PEOPLE DEVELOPMENT POLICIES
of the economy, and analyze the reasons for such
shortages;
2) To identify the surpluses, for the both skilled and
unskilled labor, and to
analyze the reason for such surpluses; and
3) To set forward targets for woman resource
development based on realistic
expectations of growth.
-the purpose of manpower analysis is to provide an
objective picture of the
major human resource problem of the economy.
Once the manpower problem have
been identified and analyzed, an appropriate strategy
must develop to solve such
problems. Such strategy should contain the following
essential components:
1) Building appropriate incentives
2) Effective training of employed force
3) Rational development of formal education.
Manpower Problems in the Developing Countries
-employ thousand
seasonal farm workers, necessary skill, the small
manufacturing sector of their
economy cannot possibly absorb all the unemployed
people since the region is
agricultural economy.
Major Human Resource Problems
W.A. Harbinson mentioned the major human resource
problem in the
developing counties, such as:
1. Rapid growth of population;
2. Increasing unemployment in the modern sectors of
the economy and
widespread underemployment in the traditional
agriculture;
3. Shortage of persons with critical skills and knowledge
which are necessary
for effective national development;
4. Insufficient and underdeveloped organizations and
institution for mobilizing
human effort;
5. Lack of incentives for individuals to engage in
productive activities which
are vitally important national development; and
6. People are suffering generally from
undernourishment.
Approaches to education
should be made available to the poor masses.
. Education has been a passport to fame and wealth.
Most of the school drop outs live in the rural areas or
agricultural communities.
n Hindu tradition, education was principally the
privileged of the
highest social class – the Brahmans.
Buddhists, they took in boys in their monasteries
Islan acdg to Koran, it is a
religious duty to educate the young.
Thomas Balogh in his article "Education must Come
Down to Earth,"
proposed the following:
It must transform primitive agriculture.
It must be integrated into the community life to avoid
the emergence of
artificial and power-hungry elite who imitate the
lifestyles of their former colonial
masters.
It must provide technical and administrative inputs of
developing the country.
Rural education should be given first priority because of
the important of agriculture
for the welfare of the masses.
Elementary Education
Philippines,
G6 60/100 country.

Hs 70% finished Factors that Bar Educational Reforms

Dropped out: literacy characters of high school education have been

influenced by several factors:
Latin Ameeica 60/100
- High school students are being prepared for college
Other 70%
and university and not
A system of Spanish
for vocational or technical jobs.
education was planted from the elementary down to
- Teachers who can handle technical or vocational
college level. Some of the oldest
subjects are scarce. They
religious schools exist like Letran College, Sta. Isabel
would rather work in the government or private
College, and University of
industries where salaries are high.
Santo Thomas.
- Laboratories and special teaching aids in teaching
Colonial Education science, and technical or

s Mohandas Gandhi was one of them. He studied law in vocational subjects are very expensive.

England. But he used his education for the good of his - The weight of traditions which despise manual work
people and country. has been heavy. The

Shortcomings of Colonial Education educated ones who own and manage the schools feel a
lower social status if their
As a result many students are good in memory work
institutions are merely technical or vocational schools.
but poor in reasoning ability.
College Education Criticized
High School Curricula Evaluated
continue to produce an oversupply of generalists.
The Indian Secretary Education Committee evaluated
the Poor uiv teachers, degrees are attractive to students and
parents
secondary schooling in the region:
Education in the Philippines
Existing curriculum is narrowly conceived.
-planted by the Spanish colonial
It is bookish and theoretical.
-American rule which lasted for 50 years, mass
It is overcrowded without providing rich and significant
education was encouraged.
contents.
US Brand Of Education
P a g e | 10It makes insufficient provision for practical
and other kinds of activities become productive. Dr.

developing the whole personality. Salvador Lopez, former UP President, said that, Teaching
English is wasteful
It does not cater to the various needs and capacities of
the students. Poor Teaching Quality

It is dominated too much by examinations. Ramos stressed

It does not include technical and vocational subjects we can only expect mediocre engineers,
which are necessary for
agriculturists and technicians.
training students to take part in the industrial and
How Standard of Education
economic development of the
*46% finished in g6 cant read and write any language benefits of all members of society.

*30% public elem school are below substndars not only workers and technicians for the projects and
factories of the
*1980, 1/3 of all elem school had no classrom for g5
&g6 foreigners.

-The PNC research Health and Education

center revealed that those who take up bachelor degree Students who has undernourishment or malnutrition
in elementary education
Adults with poor health are not efficient in their works.
have the lowest IQ and mental ability followed by BSE
The Poor Patronize Quack Doctors
students.
People relied on their traditional medicine combined
-This is product of many factors.
with native herbs and spiritual cure.
Salaries of teachers are very low.
Human Values in the Dark
-On the other part of the students their poor
performance is related to their For instance, crimes,

poverty. immorality, racial discriminations, labor exploitations

and the like are increasing in
-College studs aint serious
great proportions. All these problems are reflections of
--To improve our educational system, there is a need
our human values-decaying
first to reform the
human values.
aforementioned institution and values.
Thorstein Veblen mentioned the survival of barbaric
World Bank Interference Opposed
values
funded by the
Rich People Destroy Themselves
World Bank is to fit the manpower requirements of the
richest countries in the world have the highest rates of
economy.
suicides.; denmark,sweden, and us
-Nationalist educators have accused the World Bank of
The list
manipulating our
includes too much money, too much alcohol, too many
educational system for the benefits of multinational
possessions, too many drugs,
corporations.
and not enough love and concern by parents.
-real economy
Education, Values, and Development
development is one whose fruits go to the citizens of the
The right values are
country—specially to the
learned through education. Better and faster
orientation only make the foreign businessmen richer at development can be attained through
the expense of our economy
the right values. Thus, the key to development is proper
and people, then this is exploitation, pure and simple. education.

Education is People Development

people who are

capable of transforming available scarce resources into

economic abundance for the