RELEVANT ECONOMIC POLICIES, REFORMS AND DEVELOPMENT ADOPTED BY GOVERNMENT A. B. C. D. E.

Globalization/Trade Libaration Privatization Regulation/Deregulation Decentralization

GLOBALIZATION (or globalisation, also mundialisation or mundialization) is a common term for processes of international integration arising from increasing human activity and interchange of worldviews, products, ideas, and other aspects of culture. In particular, advances in transportation and telecommunicationsinfrastructure, including the rise of the Internet, represent major driving factors in globalization and precipitate further interdependence of economic and cultural activities. used as a shorthand way of describing the spread and connectedness of production, communication and technologies across the world. involves the diffusion of ideas, practices and technologies. It is something more than internationalization and universalization.

PRIVATIZATION An incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector(the state or government) to the private sector(business that operate for a private profit) or to private non-profit organizations Transfer of any government function to the private sector including governmental function like revenue and law enforcement Buyout and Demutualization

Privatization is not equivalent to decentralization. 4 METHODS OF PRIVATIZATION 1. Share Issue Privatization (SIP) - Selling shares on the stock market 2. Asset Sale Privatization - Selling an entire organization(or part of it) to a strategic investor, usually by auction 3. Voucher Privatization - Distributing shares of ownership to all citizens, usually for free or at a very low price 4. Privatization from Below - Start-up of new private businesses in formerly socialist countries

REGULATION Consist of government rules or laws issued to control the price, sale, or production decisions of firms Examples of regulation include controls on market entries, prices, wages, development, approvals, pollution effects, employment for certain people in certain industries, standards of production for certain goods, the military forces and services. Regulatory economics is the economics of imposing or removing regulations relating to markets is analyzed. Alfred Kahn- is the pioneer of regulatory economics who reshaped our world in his short term of government service. FORMS OF REGULATION 1. Economic regulation refers to rules that limit who can enter a business (entry controls) and what prices they may charge (price control). Examples of entry controls: Taxi drivers and many professionals (lawyers, accountants, beauticians, financial advisers, etc.) must have licenses in order to do business; these are Examples for price controls: For many years, airlines, trucking companies, and railroads were told what prices they could charge, or at least not exceed. Companies providing local telephone service are still subject to price controls in all states. 2. Social regulation refers to the broad category of rules governing how any business or individual carries out its activities, with a view to correcting one or more market failures. *A classic way in which the market fails is when firms (or individuals) do not take account of the costs their activities may impose on third parties (externalities). *When this happens, the activities will be pursued too intensely or in ways that fail to stem harm to third parties. For example: Left to its own devices, a manufacturing plant may spew harmful chemicals into the air and water, causing harm to its neighbors. Governments respond to this problem by setting standards for emissions or even by requiring that firms use specific technologies (such as scrubbers for utilities that capture noxious chemicals before steam is released into the air). DEREGULATION It is the removal of government rules and regulations that constrain the operation of market forces.

It doesnt mean elimination of laws against fraud or property rights but eliminating or reducing government control of how business is done, thereby moving toward a more laissez faire, free market. It is different from liberalization, where more players enter in the market, but continues the regulation and guarantee of consumer rights and maximum and minimum process It reduces the legal constraints on private participation in service provision or allows competition among private suppliers for services that in the past had been provided by the government or by regulated monopolies.

DECENTRALIZATION The process of transferring and assigning decision-making authority to lowe levels of an organizational hierarchy. In decentralized organization, the decision-making has been moved to lower levels of tiers of the organization, such as divisions, branches, department and subsidiaries. -Knowledge, informarion and ideas are flowing from the bottom to the top of the organization. The span of control of top managers is relatively small, and there are relatively few tiers in the organization, because there is more autonomy in the lower ranks. To distribute the administrative powers or functions of (a central authority) over a less concentrated area: to decentralize the national governmant. -To disperse (something) from an area of concentration: to decebtralize the nations industry. Transfer of decision making power and assignment of accountability and responsibility for results. It accompanied by delegation of comensurate authority to individuals or units at all levels of an organization even those far removed from headquarters or oter centers of power. The term decentralization embraces a variety of concepts which must be carefully analyzed in any particular country before determining if projects or programs shouldsupport reorganization of financial, administrative, or service delivery systems. -the transfer of authority and responsibility for public functions from the central government to subordinate or quasi-independent government organizations and/or the private sectors is a complex multifaceted concept. Different types of decentaralization should be distinguished because they have different characteristics, policy, and conditions for success.

IMPLICATIONS OF DECENTRALIZATION 1. There are fewer burdens n the chief executive as in the case of centralization 2. In decentralization, the subordinates gets a chance to decide and act independently which develops skills and capabilities. This ways the organization is able to process reserve of talents in it. 3. In decentralization, diversification and horizontal can be easily implanted. 4. In decentralization, concern diversification of activities can placed effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree 5. In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up

6. In here, there is greater motivation and morale of the employees since they get more independence to act and decide 7. In here, co-ordination to some extent is difficult to maintain as there are lot many department divisions and authority is delegated to maximum possible extent, ie., to the bottom most level delegation reaches. STRENGTHS OF DECETRALIZATION Characteristics Philosophy or emphasis on: bottom-up, political, cultural and learning dynamics Decision-making: democratic, participative, detailed Organizational change: emerging from interactions, organizational dynamics Execution: evolutionary, emergent. Flexible to adapt to minor issues and changes. Participation, accountability. Low risk of not-invented-here behavior.

TYPES OF DECENTRALIZATION 1. Political Decentralization - It aims to give citizens or their elected representatives more power in public decisionmaking. - It is often associated with pluralistic politics and representative government, this concept implies that the selection of representatives from local electoral jurisdicti9on allows citizens to know better their political representatives and allows elected officials to know better the needs and desires of their constituents - It often requires constitutional or statutory reforms, the development of pluralistic political parties, the strengthening of legislatures, creation of local political units, and the encouragement of effective public interest groups 2. Administrative Decentralization -it seeks to redistribute authority, responsibility and financial resources for providing public services among different levels of government. It it the transfer of responsibility for the planning, financing and management of certain public functions from the central government and its agencies to field units of government agencies, subordinate units or levels of government, semi-autonomous public authorities or corporations, or area-wide, regional or functional authorities Three Major forms of Administrative Decentralization: a. Deconcentration - Often considered to be the weakest form of decentralization - It is used in unitary states redistributes decision making authority and financial and management responsibilities among different levels of the central government b. Delegation - It is a more extensive form of decentralization - Through this, central governments transfer responsibility for decision making and administration of public functions to semi-autonomous organizations not wholly controlled by the central government, but ultimately accountable to it. c. Devolution

- (When governments devolve functions, they transfer authority for decision-making, finance, and management to quasi-autonomous units of local government with corporate status) - Transfers responsibilities for services to municipalities that elect their own mayors and councils, raise their own revenues, and have independent authority to make investment decisions. - Underlies most political decentralization

JAECEL SIBBALUCA MARIDEE TRUMATA ANGELICA VERZOLA SARAH TUMBALI APRIL GUZMAN MELODY REMOLACIO RUBY ROSE MARTIN