Trisha Mae K.

Deiparine

Laissez-faire is according, to Merriam dictionary a doctrine

opposing governmental interference in economic affairs beyond the
minimum necessary for the maintenance of peace and property
rights. But is it a doctrine that is applicable in our country? Keynesian
theory also suggest that according to business dictionary based on
the concept that in order for an economy to grow and be stable, active
government intervention is required.

It is important to note that in a developing country like Philippines

forecasting its economic stability is vital, for it affects the holistic
development of a country in addition to its culture development.

There are so many assertions in regards to government

interventions to economic activity. Is it really necessary? Or shall the
government apply the laissez-faire doctrine in handling economic
activity? In this sense, the government should intervene in the
countrys economic activity.

In the international trade there is the so-called comparative

advantage which states, that the countries specializes and exports
those goods where they have complete advantage and import those
commodities where they do not have complete advantage.

The influxes of imported goods are waving flag in our stores

nowadays. Instead of seeing Philippine produced vegetables and fruits
we see, most of them are from China. Is our infant industries benefiting
from this or are the people sees it as an opportunity to feed their
family because it is more affordable or cheaper compared to the
Philippine-produced vegetables and fruits.

In an article on Why Philippines is poor by Fernando Fajardo it cited

its ( Philippines) statistics, more or less, shows that our historically
high consumption rates, and consequently, our low investment rates,
along with our negative net exports is what is causing our GDP to grow
at a much slower pace than our neighbors, causing our per capita
income to remain low and place many of our people in poverty.
 In an article by Rey Gamboa (The Philippine Star) The Philippine
agriculture sector, for example, has been heard once again asking for a
deferment in further trade liberalization, fearing that the influx of
lower-priced agricultural products from its neighboring countries would
deal a death blow on local production.

To answer this predicament in our economy theres a so called

Protectionism which is to protect our infant industries namely the tariff
which is a tax applied to imported goods in order not to compete with
local products; the import quota a limit on products that are produced
abroad and sold domestically; the Anti-Dumping Law - Philippine Tariff
Commission also known as the R.A. 8752 of 1999.

Products like RTWs and furniture of the finest artisans in our

countries are underrated because of the colonial mentally of how
people buy imported goods thinking this is better since its from
abroad. Before we import products from other countries, why not
tangkilikin our own products to help our infant industries flourish and
will be given time to develop. In the case of Philippine-produced
products, the country is already exporting products in other countries,
mainly agriculture-based products; world-class furniture and wood
carving are also exported. That is of boast to the country.

Conclusion: The government intervention in our country is thus

essential. Because not only it protects our economic stability but will
also promote the eradication of the colonial-mentality that is evident in
the society. Question like: how is the countrys economy going to
flourish if its agitated by the invasion of imported products.

Bibliography:
Laissez-faire definition, http://www.merriam-webster.com/dictionary/laissez-faire

Keynesian Theory definition,

http://www.businessdictionary.com/definition/Keynesian-theory.html#ixzz2wLCfkp1A

Make Free Trade Agreements Benefit us,

http://www.philstar.com/business/2013/09/05/1172511/make-free-trade-
agreements-benefit-us
Why Philippines is Poor. ,
http://globalnation.inquirer.net/cebudailynews/opinion/view/20100203-
251059/Why_the_Philippines__is_poor

10 Philippine Exports for Small To Medium Scale Businesses ,

http://www.manilatrade.com/top-10-philippine-exports-for-small-to-medium-scale-
businesses/