Applied ECon WR

Polytechnic University of the Philippines
Anonas, Santa Mesa, Maynila, Kalakhang Maynila

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6 Basic Economic goals of a

Society, The Millennium
Development Goals and
President’s Duterte Medium
term Philippine Development
Plan
By:
Aguilar, Judah
Dela Cruz, Angelica
Panela, Glorilyn
Santos, Hannah Karizza F.
Professor Juncruz Bigoy PHD

6 Basic Economic Goals of a Society
Why do Countries need Economic Goals in their society?

• To become an ideal and economically stable nation.
• Each country has its own issues associated with various factors that
halt its development and growth.
• Countries tend to keep certain goals and target to achieve a particular
level of growth within a year.
1. Economic Growth
an increase in the total output produced in the economy measured in terms
of the Real Gross Domestic Product. It happens when the economy
increases its production capacity and develop better ways of producing and
developing new products and services.
Factors why countries could not achieve the economic growth:

1. The resources might be used inefficiently
2. Factors of production might be lying unemployed.
Factors which promotes economic growth includes the following;

Improvement in technology
Increase in natural resources
Increase in the labor force
Increase in human capital
The following graph shows the growth when the available resources are utilized wisely than the
output of machines
Economic Growth of the Philippines:
PH GDP posts 5.6 percent growth in the first quarter of 2019
2. Equitable distribution of income

To ensure that no group of citizens faces extreme poverty while others
enjoy abundance and prosperity. To do this, the government can impose
heavy taxation from the rich and spend this for social services.
Why do we need Equitable distribution of income?
 A more equitable distribution of income may help accelerate growth
and promote economic development.
 An equitable distribution of wealth gives all citizens a fair opportunity
to become successful.
 So that the poorer will have a higher propensity to consume so the
redistribution of income will increase consumption and
thus aggregate demand. This will spur economic growth.
 If wealth is very unfairly distributed, then majority of people will suffer
at the expense of the very few rich individuals.
 An equitable distribution of income could lower incentives for people
to work more and for business owners and businesses to take on
risks.
Solutions to Equitable distribution of income
• A good short-run solution would be a progressive tax system with
transfer payments, such as subsidies, unemployment benefits and
disability benefits.
• A good long run policy would be to improve the access to education
and healthcare, create more jobs and lower corruption.
3. Price Stability or Controlling inflation

To prevent increases in the general price level known as inflation. As
well as decreases in the general price level known as deflation.
Economic Impact of Inflation

1. Redistribution of Wealth and Income among the People
2. Distortion in the Production of Goods, employment and relative
Prices (During Periods of Inflation all prices and wages do not change
at the same rate; so changes in relative prices occur)
Maintaining price stability in the Philippines through inflation targeting
4. Full Employment
To provide suitable jobs for all citizens who are willing and able to work.
Full employment is not only confined to employment of labor but also full
utilization of land, capital and entrepreneur that will propel to more
production in the economy, hence. Economic growth.
Employment Rate in April 2019 is Estimated at 94.9 Percent
The employment rate in April 2019 was estimated at 94.9 percent. In April 2018, the
employment rate was 94.5 percent.
5. Economic Freedom
To guarantee that businesses, workers, and consumers have a high
degree of freedom in their economic activities.
Measuring Economic Freedom

 Size of government
 Sound money
 Property rights and rule of law
 International trade
 Regulation
6. Economic Security
To provide for those who are disabled, chronically ill, aged, handicapped or
otherwise dependent.
The Millennium Development Goals
Goal 1: Eradicate extreme poverty and hunger. Halve between 1990 and
2015, the proportion of people whose income is less the poverty threshold;
the proportion of underweight among under five-year old children; and the
proportion of families not meeting 100% energy requirement.
Goal 2:
Achieve universal primary education. Ensure that by 2015, children
everywhere, boys and girls alike, will be able to complete primary
schooling.
Goal 3:
Promote gender equality and empower women. Eliminate gender disparity
in primary and secondary education preferably by 2005 and in all levels of
education not later than 2015/
Goal 4:
Reduce child mortality. Retduce the mortality rate between 1990 and 2015.
Goal 5:
Improve maternal health. improve mental health. Reduce mortality ratio
quarters between 1990 and 2015.
Goal 6:
Combat HIV/AIDS, malaria and other diseases. Have halted by 2015 and
begun to rreverse the spread of HIV/AIDS.
Goal 7:
Ensure environmental sustainability. Integrate the principle of sustainable
development into country policies and programs and reverse the loss of
environmental resources.
Goal 8:
Develop a global partnership for development. Develop further an open,
rule-based, predictable, and non -discriminatory trading and financial
system.
Some programs of the government to accelerate the achievement of the
MDGs is the adoption of :
 Conditional Cash Transfer (CCT) from Latin America which was

dubbed as the Pantawid Pamilyang Pilipino Program (4Ps) which was
implemented by the Arroyo Administration in 2008 and was pursued
by the Aquino Administration which benefited 3.8 million families by
2012.
Pantawid Pamilyang Pilipino Program (4Ps)

• The Pantawid Pamilyang Pilipino Program (4Ps) is a human
development measure of the national government that provides
conditional cash grants to the poorest of the poor, to improve the
health, nutrition, and the education of children aged 0-18.
• The Department of Social Welfare and Development (DSWD) is the
lead government agency of the 4Ps.
OBJECTIVES
The 4Ps has dual objectives as the flagship poverty alleviation program of
the Aquino administration:
• social assistance, giving monetary support to extremely poor families
to respond to their immediate needs; and
• social development, breaking the intergenerational poverty cycle by
investing in the health and education of poor children through
programs such as:
• health check-ups for pregnant women and children aged 0 to 5;
deworming of schoolchildren aged 6 to 14;
• enrollment of children in daycare, elementary, and secondary
schools; and
• family development sessions.
Medium term Philippine development plan of President

Duterte 2017-2022
Vision of Filipinos for Country
“By 2040, the Philippines shall be a prosperous, predominantly middle-

class society where no one is poor. Our peoples will enjoy long and healthy
lives, are smart and innovative, and will live in a high-trust society”
THE PDP 2017-2022 HAS SET TARGETS TO BE ACHIEVED IN THE

NEXT 6 YEARS
• Upper Middle income country ( to achieve 7-8% & per capita income
from $3500 to $ 5000
• Lower poverty incidence in the rural areas from 30% to 20&
• High level of Human Development
• Unemployment Rate will go down from 5.5% to 3.5%
• Greater trust in Government and Society
• More resilient Individuals and communities
• Filipinos will have greater drive for innovation
References
• https://business.inquirer.net/230624/duterte-orders-implementation-
medium-term-development-plan
• https://psa.gov.ph/nap-press-release
• https://www.indexmundi.com/philippines/millennium-development-
goals.html
• https://businessmirror.com.ph/2019/07/03/maintaining-price-stability-
in-the-philippines-through-inflation-targeting/
• https://econtutorials.com/blog/basic-economic-goals-of-a-country/
• https://psa.gov.ph/statistics/survey/labor-and-employment/labor-
force-survey
• https://www.econlib.org/library/Enc/EconomicFreedom.html
• https://www.officialgazette.gov.ph/programs/conditional-cash-transfer/
• https://www.undp.org/content/undp/en/home/sdgoverview/mdg_goals
/mdg1/
• Understanding Economics

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Polytechnic University of the Philippines

Anonas, Santa Mesa, Maynila, Kalakhang Maynila

6 Basic Economic goals of a

Professor Juncruz Bigoy PHD

Why do Countries need Economic Goals in their society?

Factors why countries could not achieve the economic growth:

Factors which promotes economic growth includes the following;

Economic Growth of the Philippines:

PH GDP posts 5.6 percent growth in the first quarter of 2019

2. Equitable distribution of income

3. Price Stability or Controlling inflation

Economic Impact of Inflation

Employment Rate in April 2019 is Estimated at 94.9 Percent

Measuring Economic Freedom

The Millennium Development Goals

 Conditional Cash Transfer (CCT) from Latin America which was

Pantawid Pamilyang Pilipino Program (4Ps)

Medium term Philippine development plan of President

Vision of Filipinos for Country

“By 2040, the Philippines shall be a prosperous, predominantly middle-

THE PDP 2017-2022 HAS SET TARGETS TO BE ACHIEVED IN THE

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