ECONOMIC GROWTH & DEVELOPMENT
ECONOMIC GROWTH
- The increase in the society’s
productive capacity (amount of
goods and services produced).
- It occurs when the productivity rate
is higher than the population growth
rate
- The major indicator of economic
growth is production
- PR > PGR
ECONOMIC STAGNATION
- It develops when the economic
growth is only as much as populatio
growth
- EG = PG
ECONOMIC RETROGRESSION
- It occurs when population growths
faster than the economy, per capita
GNP and per capita income decline.
- The impact is that the demand will
increase (demand-pull)
- PG > EG
ECONOMIC DEVELOPMENT
- The process whereby low-income
national economies are transformed
into modern industrial economies.
- Change is a country’s economy
involving qualitative as well as
quantitative improvements.
ECONOMIC FACTORS AFFECTING
ECONOMIC GROWTH & DEVELOPMENT
LAND
- Natural resources (marine, land,
minerals)
LABOR
- Labor Productivity is the average
of how a certain laborer produce an
output
- Rate of increase in output per unit of
labor used is production
- Higher productivity rate means
higher economic growth
CAPITAL
- It is the man-made resources
- Higher investment in business
means higher economic growth
ENTERPRISE
- It is what makes the other three
factors work together
- The BRAINS of production
- It affects the economic growth
because of their innovation
- Innovation means development and
improvement, modernized and
adaptation
NON-ECONOMIC FACTORS AFFECTING
ECONOMIC GROWTH & DEVELOPMENT
SCIENTIFIC BREAKTHROUGH
- New discovery, research, and
inventions that are based on
scientific researches
- Life becomes more efficient and
convenient that also boosts the
economy
PEACE AND ORDER
- Stable government, no violence, and
equality
- It contributes to economic growth
because countries that are prone to
war have slow economic growth
because of unemployment, no
income, and no investments.
POLITICAL STABILITY
- It means that the country has stable
and fair government
- Taxes will be put to use properly
hence, no corruption
- Investments is a major factor that
gives the boost of economic growth
and development
CULTURE
- Tradition, practices, and beliefs
- Contributes to the economic growth
because it brings in tourists
- The more a nation stays and follows
their old practices, the economic
growth may become slow
CONSTITUTION
- Laws, rules, and regulations
- The 1987 Constitution states all of
the laws in the Philippines
- Laws limits and controls the
economic growth and development
AGRICULTURAL SECTOR
AGRICULTURE
- Originated from the Latin words ager
meaning field, and cultura signifying
culture. Field refers to soil, land or
farm. Culture means to raise or
cultivate.
- It may be defined as the science and
art of raising the products of the soil
to satisfy human needs and wants.
Products of the soils include crops
and animals
- It centers on, but not limited to, the
growing and raising of useful plants
and animals.
- It covers the marketing and
processing activities associated with
crop, livestock poultry, and fishery
production.
AGRICULTURAL PRODUCTION
CROP PRODUCTION
- It refers to the growing of either food
crops or commercial crops.
- Food Crops are generally intended
for household consumption (rice,
corn, fruits, vegetables, etc.)
- Commercial Crops are produced
principally for commerce, trade, and
economic purposes (cotton, fiber,
sugarcane, etc.)
LIVESTOCK & POULTRY
- Livestock are the domesticated
animals raised in an agricultural
setting to provide labor and produce
commodities such as meat, eggs,
milk, fur, leather, and wool
- Poultry are domesticated fowl
collectively, especially those valued
for their meat and eggs, as chickens,
turkeys, ducks, geese, etc.
FISHERY PRODUCTION
- It can mean either the enterprise of
raising or harvesting fish and other
aquatic life; or more commonly, the
site where such enterprise takes
place.
- Commercial Fishing is the catching
of fish on marine waters with the use
of a fishing boat of more than three
tons.
- Municipal Fishing is the catching of
fish in marine and inland waters with
the use of a fishing boat of three
tons or less.
- Aquaculture is the rearing or raising
under controlled conditions of
aquatic products.
IMPORTANCE OF AGRICULTURE
● It is the chief source of food for the
population.
● It is the chief source of raw materials
for the industry.
● It is the source of foreign exchange.
● It is the source of livelihood and
income of the people.
● It is the major market for
manufactured goods (ex. pesticides,
fertilizers, etc.)
THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM (CARP)
- It is the Republic Act No. 6657
otherwise known as the
Comprehensive Agrarian Reform
Law (CARL) signed by President
Corazon C. Aquino on June 10,
1988.
- It is the redistribution of public and
private agricultural lands to farmers
and farmworkers who are landless,
irrespective of tenurial arrangement.
THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM (CARP)
- The vision is to have equitable land
ownership with empowered agrarian
reform beneficiaries who can
effectively manage their economic
and social development to have a
better quality of life.
- Land Tenure Improvement seeks
to hasten distribution of lands to
landless farmers.
AGRICULTURAL TENANCY ACT OF 1954
- It is known as the Republic Act No.
1199 signed by Ramon Magsaysay.
- It governed the relationship between
landowners and tenant farmers by
organizing a share tenancy and
leasehold system.
- The law helped protect the tenurial
rights of tenant tillers and enforced
fair tenancy practices.
THE AGRICULTURAL LAND REFORM
CODE (RA 3844)
- It was an advancement of land
reform in the Philippines and was
enacted in 1963 under President
Diosdado Macapagal.
- It abolished tenancy and established
a leasehold system in which farmers
paid fixed rentals to landlords, rather
than a percentage of harvest.
THE FARMERS EMANCIPATION ACT OF
1972
- On October 21, 1972, Presidential
Drecee No. 27, signed by President
Ferdinand Marcos, emancipated all
tenant farmers working on private
agricultural lands devoted to rice and
corn, whether working on a landed
estate or not.
- The system was implemented
through a system of sharecropping
or lease-tenancy.
INDUSTRIAL SECTOR
INDUSTRY
- It is a group of manufacturers or
businesses that produce a particular
kind of goods or services.
- It is the work and processes involved
in collecting raw materials, and
making them into products in
factories.
INDUSTRIAL SECTOR
- It may be defined as the dimension
of the economy that turns out
products for intermediate or final
consumption.
 - The growth of a nation’s industry
sector often signifies growth of the
economy as a whole. The sector
includes industries directly involved
in production. As such, a bigger
industry translates to more
production. Greater production also
supports the move to a more
industrialized state of the economy.
COMPONENTS OF INDUSTRIAL SECTOR
MINING AND QUARRYING
- Quarrying is more appropriately
used in the excavations of stones,
rocks, and similar materials.
- Mining on the other hand, is
conventionally used to refer to the
extraction of minerals such as gold,
iron, copper, etc. from the earth.
- The nature of mining and quarrying
has negative effects on the
environment such as land erosion
and possible contamination of soil
and groundwater.
- Another issue is the fact that
minerals are nonrenewable. Due to
these, one of the most controversial
socio-economic topics is whether the
domestic mining industry should be
shut down or not.
MANUFACTURING
- The manufacturing industry is the
biggest driver of the industry sector
and consistently, of the whole
economy. The consistent growth and
positive outlook for the industry
translates to more opportunities for
business and employment.
CONSTRUCTION
- It is another major contributor to the
industry sector.
- Government programs that aim to
improve infrastructure in the country
open up business opportunities in
the construction industry.
UTILITIES
- The electricity, gas, and water
supply industry plays an important
role in the Philippine economy.
According to the International
Labor Organization (ILO), “quality
utilities are a prerequisite for
effective poverty eradication.”
- This makes the electricity, gas, and
water supply industry a priority for
the government to ensure enough
and safe supply of utilities in the
country.
SERVICE SECTOR
SERVICE
- It is an intangible equivalent of
economic goods. Its provision is
often an economic activity where the
buyer does not generally, except by
exclusive contract, obtain exclusive
ownership of the thing purchased.
- It is otherwise referred to as
nonmaterial commodities, such as
health, insurance, education, and
security.
SERVICE SECTOR
- It is the dimension of the economy
that produces services rather than
goods.
- It is the biggest sector of the
Philippine economy in terms of GDP
contribution.
SERVICE SECTOR
- National Economic Development
Authority’s (NEDA) primer refers to
the service sector as the sector
which “produces intangible (invisible)
outputs through the application of
labor, skills, and technology that can
change the condition of products or
persons, or that facilitate transfer of
knowledge or ownership, among
others.
COMPONENTS OF SERVICE SECTOR
TRADE AND COMMERCE
- A component of the service sector
that is all about selling goods.
- Wholesale is the business of buying
goods in large quantities from
manufacturers or producers and
selling smaller quantities to retailers
- Retail the process of selling goods
directly to the consumer, usually in a
shop or online.
TRANSPORTATION, COMMUNICATION,
AND STORAGE
- Transportation & communication
facilitate the flow of trade and
commerce
- Storage provides custodial services
to traders. Storage firms operate
warehouses and other facilities that
keep merchandise goods in safe and
good condition.
FINANCE
- Its main function is intermediation.
Banks and other financial institutions
are the main source of investments.
OWNERSHIP OF DWELLINGS AND REAL
ESTATE
- Ownership of Dwellings pertaining
to the provision of housing services
on own account. These are the
owner-occupied dwelling units and
imputed rent is estimated for
national accounts purposes.
- Real Estate is real property that
consists of land and improvements,
which include buildings, fixtures,
roads, structures, and utility
systems.
GOVERNMENT SERVICES
- Its main responsibility is to deliver
social, economic, and general public
services to the people.
DSWD
- Department of Social Welfare and
Development
INFORMAL SECTOR
- It refers to businesses or business
activities that are unregistered and
thus, not covered by the country’s
laws and regulations.
- People who have odd jobs are
examples. A small-time, household-
run business is another. An
unregistered street vendor outside a
public school is also part of the
informal sector.
TYPES OF ACTIVITIES OF FORMS OF
INFORMAL SECTOR
SURVIVAL ACTIVITIES
- It refers to informal labor which may
include unpaid and casual jobs.
These types of employment are
often undocumented and do not
pass official labor standards.
ILLEGAL ACTIVITIES not paying taxes or government fees
- It refers to business activities or jobs related to registrations.
that entail intentionally evading the - The complexity in identifying
law and government regulations. A violators and tracking illegal
business that does not comply with transactions make it difficult to
registration is guilty of tax evasion. assess the size of the black market
- This category also includes those in the Philippines. This is the same
recognized as underground activities reason why the black market is also
such as crime and drug-related sometimes referred to as the
practices. Two notable illegal underground economy.
activities in the informal sector are
counterfeiting and the black market BENEFITS OF INFORMAL SECTOR
transactions. ● Addressing the unemployment
problem
EXAMPLES OF ILLEGAL ACTIVITIES ● More goods and services
COUNTERFEITING ● Emergence of self- sufficiency
- It refers to the unauthorized ● Promotion of innovations
reproduction of authentic or genuine ● Generates income
items. The purpose is generally to ● Easy entry
defraud a consumer which is why it
is considered an illegal activity.
- Counterfeiting results in the
proliferation of fake products in the
markets.

PIRACY
- It is more commonly used to refer to
the unauthorized reproduction of
works or content such as visual
media content and related software
products.

BLACK MARKET
- It is often used to refer to the
informal sector as a whole since it is
characterized by illegal business
activities.
- Black market transactions generally
entail circumventing existing laws
and regulations. Individuals try to
profit by bypassing legal processes Notes made by Julienne Amular
or regulators. <3
- On the other hand, sellers or
producers are able to cut costs by