LAS 2

1. The phrase “May pera sa basura” has long been

heard in the Philippines. Thus, this picture is familiar to me.
Garbage pollution is a serious issue- worldwide, and it has
the potential to cause major health, environmental, and
economic problems. But the picture says otherwise, it
depicts the importance of trash to the less fortunate people:
having food in the landfill. Aside from that, some youngsters
recycle rubbish in exchange of money.

2. I don’t think this scenario is familiar to me but the

picture is filled with a number of people. Crowds are a
common occurrence in major cities, not just during huge
gatherings but also during everyday activities like commutes to
work. Almost immediately, the COVID-19 pandemic has
changed these benefits into negatives. Both density and
connection appear to be negative properties of a location
under the current scenario. The pandemic appears to be more
dangerous in places that are larger and more linked.

3. I’m familiar with the situation since I’ve seen the signage before, “Sorry, No
Current Vacancies.” From my perspective, the picture
circulates about unemployment. Economists today distinguish
between two forms of unemployment: structural and frictional.
The effect of voluntary employment transfers within an
economy is frictional unemployment. Even in a stable,
developing economy, frictional unemployment happens as
employees shift occupations. Because of basic and persistent
changes in the economy's structure that marginalize a set of
workers, such as technical advancements, a lack of appropriate skills, or jobs
transferring to another nation, structural unemployment can cause long-term
disturbances.
4. I'm well-versed in the situation since in the
Philippines; poverty is one of the most critical issues that
the government must address. In terms of its nature,
poverty in the said country originated as a result of the
country's fast population increase. It has a lot of apparent
consequences in nature. Many Filipinos cannot afford their
food, as you can see in the picture; and some do not
pursue their education as a result of poverty.
 5. The present COVID-19 epidemic has had an impact on all of us. The pandemic's
impact and repercussions, on the other hand, are perceived
differently depending on our standing as people and
members of society. While some people try to work from
home, educate their children, and buy meals from Instacart,
others are forced to deal with the virus in order to keep
civilization going. Our social identities and the social
groupings to which we belong define our social inclusion and,
as a result, our vulnerability to epidemics.

What to produce?
1. The first query talks about resources. The community will contemplate labor-
intensive items or focus on delivering services rather than manufacturing
commodities if there is a plentiful supply of labor in the society. In addition, the
availability of resources has an impact on what is produced.
How to produce?
2. The actual production of products and services, as well as the distribution of
resources, are the focus of this subject. Depending on the amount of money
available, a company must decide how much to invest, how many people to
recruit to manufacture the goods or services, and how many raw materials to get.
Thus, the question is related to the production's inputs.
Whom to produce for?
3. The topic of determining who would consume the items is dealt with in this
dilemma. Producing items for the poor or the wealthy is what this means. The
economy must determine for whom it will manufacture things since resources are
limited. The question, therefore, pertains to the distribution and consumption of
goods and services.
POVERTY AND UNEQUAL DISTRIBUTION OF INCOME

How does the Philippines address this problem? In the case of absolute poverty, we have short-
term and long-term intervention being implemented. For short-term, providing free meals,
housing and adequate clothing, while for long-term intervention, economists suggested to provide
resources including credit, skills, and entrepreneurial training and cash transfer. Relative poverty;
on the other hand, suggested the following measures: progressive taxation, income transfers and
other programs that improve the income of the poor families. For example, the government gives
20% discounts to senior citizens when they purchase goods and avail services. Financial assistance
to students studying in State Colleges and Universities

1. The primary goal of poverty reduction is to address the root causes of poverty.
Economic development, employment quality, social transfers, increasing
capacities, and addressing exclusion and inequality are all common drivers of
poverty alleviation. I’m not against the terms being implemented in the said
country, but by lowering the wealthiest earnings or boosting the poorest, income
disparity may be directly lowered. Increasing employment or earnings, as well as
transferring income, are two policies that focus on the latter. Above all, For
eliminating poverty and fostering equality of opportunity, ensuring universal
access to housing, water, sanitation, and electricity, as well as key social
services including nutrition, health, early childhood development, education, and
well-designed social protection, is critical.

DEMOGRAPHIC CHANGES AND ECONOMIC IMPLICATIONS

The government addressed the problem in population explosion by signing the Reproductive
Health Bill into Law or also known as “ The Responsible Parenthood and Reproductive Health Act
of 2012 (Republic Act No. 10354)”. The law guarantees universal access to methods of family
planning like contraception, fertility control, sexual education, and maternal care.

2. The underlying economic growth rate, structural productivity growth, living

standards, savings rates, consumption, and investment are all affected by
demographic changes, as are the long-run unemployment rate and equilibrium
interest rate, housing market patterns, and demand for financial assets. To
address these issues over the next decade or two, it is probable that the role and
influence of the state, and what is demanded of it, will expand. Demographic
change involves public policy areas that span health, education, social and labor
market institutions, immigration, openness of the economy to trade and
investment, retirement pension systems, and national savings and taxation
 systems. Free market solutions and ways addressing these issues are available
of course, but it is unlikely that we will be willing to depend on market-based
outcomes ass our society’s age. In the late nineteenth century, and again in the
twentieth, people needed or wanted to accord the state a bigger role introduce
and develop social welfare systems to tend to larger and younger populations.
Today, its role may have to be expanded again as populations become older and
possibly smaller at the same time.

WEAK INFRASTRUCTURE

To improve the infrastructures in the Philippines, the government borrows from external
donors to fund our several highway projects (MNTC and NLEX) from Japanese, US and
European Union government as well as the World Bank and other international agencies.

3. In the Philippines, a key impediment to economic progress and poverty

alleviation has been a lack of infrastructure. Institutions for good governance are
essential for improving the quality of our infrastructure: Infrastructural and service
marketplaces should be created. All aspects of the infrastructure system operate
together when there is a single market for infrastructure assets and services. It
ensures proper planning and avoids the common pitfalls of infrastructure
procurement, such as treating infrastructure as a static-physical asset and
purchasing it without taking into account the services it will provide, or building
new infrastructure instead of renovating and/or improving existing infrastructure.
Furthermore, increasing the appeal of infrastructure projects to private investors.
We need more openness in the infrastructure project development process, more
confidence in the project execution framework, and less risk in the operating
phase. A long-term infrastructure pipeline and better, wider, and more
independent cost-benefit analysis are the primary levers to achieving this. Lastly,
reforming the infrastructure to enable radical productivity growth and radical
innovation. Improvements in infrastructure productivity and the power of
innovation are critical prerequisites for enhanced infrastructure productivity.
Activity No. 3: What’s in your mind?
Situation:
Philippine economy was badly hurt by the pandemic Covid-19. Entrepreneurs were
forced to close down temporarily their businesses to control the spreading of the virus.
As a result, ordinary people lose their sources of income and purchasing power. In
order to ease the current situation, the Congress enacted in a special session and
grants the President additional powers to manage the crisis. This is Republic Act No.
11469 known as “Bayanihan to Heal as One Act.” The law gives the President the
authority to divert and use the P275 billion or 62% of the approved P438 billion budget
for 2020. As an economist, can the decision to use the 62% of the approved budget
solve the problem?
Write your answer in a separate sheet.
 In December 2019, new severe acute respiratory syndrome coronavirus 2 (SARS-
CoV-2) induced new coronavirus disease (COVID-19) developed in China, followed by
a rapid spread around the world. The World Health Organization (WHO) upped its
pandemic alert on March 11, 2020. COVID-19 had killed approximately 95,269 people
in 189 nations, territories, and communities as of April 11, 2020. Because it
influenced both individuals and public health, Covid-19 has become a serious source of
concern for people and governments all over the world. It is a major event in everyone's
life due to its infectiousness and rapid spread over the world, frequently inciting anxiety.
The said virus also affects the economy of the Philippines badly therefore, the Congress
enacted in a special session and grants the President additional powers to manage the
crisis.
To establish a thorough response to the COVID-19 pandemic, considerable public
financing is required. To refocus public expenditure on stimulating the economy and the
health system, government officials must move quickly and in a fiscally responsible
manner. Depending on their public financial management (PFM) and regulatory
regimes, highly affected nations have implemented a variety of ways to budget
allocation. To account for these new economic and budgetary restrictions, adjustments
to the revenue side of budgets (such as loans) are necessary. On the expense side,
quick decision-making is also required.
Several laws are part of the Philippine government's economic recovery plan. The
Bayanihan I gives the government special powers and emergency assistance to deal
with the crisis as quickly as possible. Bayanihan II, also known as the Bayanihan to
Recover as One Act, gives the President more power to realign finances for pandemic-
related expenditures in the Philippines to combat the COVID-19 pandemic, as well as
provide government funds to spur the economy while bolstering the health service and
the govt's pandemic response, such as providing cash to low-income households and
providing credit to small businesses. By collecting and analyzing, researching, and
evaluating the said economic issue, as an economist, I think the 62% of P438 billion is
not enough to solve the problem since the recovery package consists of a total of PHP
2.8 trillion in fiscal, monetary, and financial instruments, or 15.4% of the country's gross
domestic product[2]. The second pillar of the three-pillar approach to help the economy
recover by 6 to 7 percent in 2021 and return to pre-pandemic levels this year is the
execution of the economic recovery package.
Learning from higher-income nations on how to fund for the response is critical as
the epidemic spreads through lower-income nations and unstable settings where PFM
systems already have structural flaws. In these extraordinary circumstances, it is more
important than ever to strike the right balance between flexibility and responsibility. By
reprogramming current expenditure and earmarking extra monies, governments and
legislatures must provide appropriate budgetary funds. To ensure the better allocation
of resources and accountability, funds must be quickly made available to the front lines,
while efficient expenditure tracking mechanisms must be established. It is also advised
that governments start the budgeting process early to ensure a quick response from
internal sources, as well as streamlining external sources to achieve this aim.