History of National Economic and Development Authority

On November 15, 1935, the Commonwealth of the Philippines was inaugurated with Manuel L.

Quezon as President, Sergio Osmeña as Vice President, and a unicameral National Assembly as
the Legislature. One of the first acts of the President Manuel L. Quezon was to call for a special
session of Congress to enact certain laws needed by the government. [1] The law enacted was to
create the Armed Forces of the Philippines by virtue of Commonwealth Act No. 1. The second
was to create an advisory body for economic concerns of the Philippines. Commonwealth Act.
No. 2, enacted on December 23, 1935, created the National Economic Council, which was
tasked with advising the government on economic and financial matters, and formulate an
economic program based on national independence. The president was authorized to appoint
its respective members with the consent of the Commission on Appointments of the National
Assembly.[2][3]

The year following its creation, the National Economic Council was organized on February 14,
1936, as President Quezon said in his Second State of the Nation address. The inaugural
members were the Secretary of Finance (who served as Chairman), the Secretary of Agriculture
and Commerce, the Chairman of the Board of Directors of the Philippine National Bank, the
President of the National Development Company, the President of the Manila Railroad
Company, Mr. Joaquin M. Elizalde, Hon. R.J. Fernandez, Mr. Wenceslao Trinidad, Mr. Vicente
Madrigal, Hon. Francisco Varona, Mr. Ramon Soriano, Hon. Vicente Singson Encarnacion, Hon.
Rafael R. Alunan and Hon. Manuel Roxas.[4]

The council was organized into eight committees: (1) Committee on agriculture and natural
resources, (2) industry, (3) foreign trade and tariff, (4) domestic trade, (5) transportation and
communication, (6) taxation, (7) labor and immigration, and (8) banking and finance. The first
act of the council was to survey and adopt plans for an effective utilization and conservation of
our natural resources. The council also undertook a study, in cooperation with the National
Development Company and Metropolitan Water District, on the potential of water power
resources which eventually led to the enactment of Commonwealth Act No. 120, creating the
National Power Corporation.[5]

President Manuel L. Quezon administering the oath of office to the members of the National
Economic Council in Malacañan Palace. Around the table, from the left are Jose Paez, Vicente
Singson Encarnacion, Secretary Ramon Torres, Secretary Eulogio Rodriguez, Secretary Antonio
de las Alas, Assemblyman Manuel Roxas (chairman), the President; Secretary Jose Yulo,
Secretary M. Jesus Cuenco, Rafael Alunan, Miguel Unson, and Dean Bienvenido Gonzales. Photo
from the Photogravure of Manuel L. Quezon.

After World War II, the First Congress of the Philippines enacted  , which allowed the President
of the Philippines to reorganize the Executive Branch of Government as he sees fit within one
year of its enactment. President Manuel Roxas, subsequently, amended the Administration
Code of 1917 by issuing Executive Order No. 94, s. 1947. The Executive Order made the
President of the Philippines the head of the National Economic Council.
During his administration, President Carlos P. Garcia saw the need to create a new office in
charge of the supervision of government corporations, which he called the National
Development Authority. President Garcia asked Congress to enact such a law during his 1958
State of the Nation Address. When Congress finally passed the law creating the National
Development Authority, President Garcia disagreed with its limited powers, thus vetoing the bill
sent to him as he mentioned in his 1959 State of the Nation Address. In 1960, Congress passed
a law, which changed the composition of the National Economic Council through Republic Act
No. 2699  enacted on June 18, 1960. The law increased the Council’s membership by including
the Secretary of Commerce and Industry and granting the minority party representation in the
membership of the National Economic Council. The Council would continue to perform its
functions throughout the Third Republic until the declaration of Martial Law on September 23,
1972.

President Carlos P. Garcia’s Second State of the Nation Address delivered on January 26, 1959.
Photo courtesy of The Manila Bulletin.

The need for an office in charge of national development was revived during the administration
of President Ferdinand E. Marcos. In his 1970 State of the Nation Address, Marcos said the
administrative machinery of government must be restructured and revitalized to meet the
challenge of change and development. Marcos, thereafter, crafted a government
reorganization plan which included a National Economic Development Authority and submitted
it to Congress for their approval.

When Martial Law was declared on September 23, 1972, his first act was to implement,
through Presidential Decree No. 1, s. 1972, the government reorganization plan he had
submitted to Congress a year before. The decree merged the National Economic Council and
the Presidential Economic staff, created by Executive Order No. 8, s. 1966, and renamed it to
the National Economic Development Authority. President Marcos subsequently
issued Presidential Decree No. 1-A which delineated the composition of the National
Economic Development Authority.

After he imposed Martial Law, President Marcos promulgated the reorganization of

government as his first Presidential Decree. Photo courtesy of the NEDA website.

In 1973, the National Economic Development Authority was dissolved by virtue of Presidential
Decree No. 107, s. 1973. The Presidential Decree created the National Economic and
Development Authority, which absorbed the National Economic Development Authority.

When democracy was restored in 1986, President Corazon C. Aquino issued Executive Order

No. 230, s. 1987, which reorganized and added offices to the National Economic and
Development Authority which is retained by the present day National Economic and
Development Authority.