ECONOMIC GROWTH & DEVELOPMENT LABOR

ECONOMIC GROWTH - Labor Productivity is the average

- The increase in the society’s of how a certain laborer produce an
productive capacity (amount of output
goods and services produced). - Rate of increase in output per unit of
- It occurs when the productivity rate labor used is production
is higher than the population growth - Higher productivity rate means
rate higher economic growth
- The major indicator of economic
growth is production CAPITAL
- PR > PGR - It is the man-made resources
- Higher investment in business
ECONOMIC STAGNATION means higher economic growth
- It develops when the economic
growth is only as much as populatio ENTERPRISE
growth - It is what makes the other three
- EG = PG factors work together
- The BRAINS of production
ECONOMIC RETROGRESSION - It affects the economic growth
- It occurs when population growths because of their innovation
faster than the economy, per capita - Innovation means development and
GNP and per capita income decline. improvement, modernized and
- The impact is that the demand will adaptation
increase (demand-pull)
- PG > EG NON-ECONOMIC FACTORS AFFECTING
ECONOMIC GROWTH & DEVELOPMENT
ECONOMIC DEVELOPMENT
- The process whereby low-income SCIENTIFIC BREAKTHROUGH
national economies are transformed - New discovery, research, and
into modern industrial economies. inventions that are based on
- Change is a country’s economy scientific researches
involving qualitative as well as - Life becomes more efficient and
quantitative improvements. convenient that also boosts the
economy
ECONOMIC FACTORS AFFECTING
ECONOMIC GROWTH & DEVELOPMENT PEACE AND ORDER
- Stable government, no violence, and
LAND equality
- Natural resources (marine, land, - It contributes to economic growth
minerals) because countries that are prone to
war have slow economic growth
because of unemployment, no
income, and no investments.
POLITICAL STABILITY AGRICULTURAL PRODUCTION
- It means that the country has stable CROP PRODUCTION
and fair government - It refers to the growing of either food
- Taxes will be put to use properly crops or commercial crops.
hence, no corruption - Food Crops are generally intended
- Investments is a major factor that for household consumption (rice,
gives the boost of economic growth corn, fruits, vegetables, etc.)
and development - Commercial Crops are produced
principally for commerce, trade, and
CULTURE economic purposes (cotton, fiber,
- Tradition, practices, and beliefs sugarcane, etc.)
- Contributes to the economic growth
because it brings in tourists LIVESTOCK & POULTRY
- The more a nation stays and follows - Livestock are the domesticated
their old practices, the economic animals raised in an agricultural
growth may become slow setting to provide labor and produce
commodities such as meat, eggs,
CONSTITUTION milk, fur, leather, and wool
- Laws, rules, and regulations - Poultry are domesticated fowl
- The 1987 Constitution states all of collectively, especially those valued
the laws in the Philippines for their meat and eggs, as chickens,
- Laws limits and controls the turkeys, ducks, geese, etc.
economic growth and development
FISHERY PRODUCTION
AGRICULTURAL SECTOR - It can mean either the enterprise of
AGRICULTURE raising or harvesting fish and other
- Originated from the Latin words ager aquatic life; or more commonly, the
meaning field, and cultura signifying site where such enterprise takes
culture. Field refers to soil, land or place.
farm. Culture means to raise or - Commercial Fishing is the catching
cultivate. of fish on marine waters with the use
- It may be defined as the science and of a fishing boat of more than three
art of raising the products of the soil tons.
to satisfy human needs and wants. - Municipal Fishing is the catching of
Products of the soils include crops fish in marine and inland waters with
and animals the use of a fishing boat of three
- It centers on, but not limited to, the tons or less.
growing and raising of useful plants - Aquaculture is the rearing or raising
and animals. under controlled conditions of
- It covers the marketing and aquatic products.
processing activities associated with
crop, livestock poultry, and fishery
production.
IMPORTANCE OF AGRICULTURE - The law helped protect the tenurial
● It is the chief source of food for the rights of tenant tillers and enforced
population. fair tenancy practices.
● It is the chief source of raw materials
for the industry. THE AGRICULTURAL LAND REFORM
● It is the source of foreign exchange. CODE (RA 3844)
● It is the source of livelihood and - It was an advancement of land
income of the people. reform in the Philippines and was
● It is the major market for enacted in 1963 under President
manufactured goods (ex. pesticides, Diosdado Macapagal.
fertilizers, etc.) - It abolished tenancy and established
a leasehold system in which farmers
THE COMPREHENSIVE AGRARIAN paid fixed rentals to landlords, rather
REFORM PROGRAM (CARP) than a percentage of harvest.
- It is the Republic Act No. 6657
otherwise known as the THE FARMERS EMANCIPATION ACT OF
Comprehensive Agrarian Reform 1972
Law (CARL) signed by President - On October 21, 1972, Presidential
Corazon C. Aquino on June 10, Drecee No. 27, signed by President
1988. Ferdinand Marcos, emancipated all
- It is the redistribution of public and tenant farmers working on private
private agricultural lands to farmers agricultural lands devoted to rice and
and farmworkers who are landless, corn, whether working on a landed
irrespective of tenurial arrangement. estate or not.
- The system was implemented
THE COMPREHENSIVE AGRARIAN through a system of sharecropping
REFORM PROGRAM (CARP) or lease-tenancy.
- The vision is to have equitable land
ownership with empowered agrarian INDUSTRIAL SECTOR
reform beneficiaries who can INDUSTRY
effectively manage their economic - It is a group of manufacturers or
and social development to have a businesses that produce a particular
better quality of life. kind of goods or services.
- Land Tenure Improvement seeks - It is the work and processes involved
to hasten distribution of lands to in collecting raw materials, and
landless farmers. making them into products in
factories.
AGRICULTURAL TENANCY ACT OF 1954
- It is known as the Republic Act No. INDUSTRIAL SECTOR
1199 signed by Ramon Magsaysay. - It may be defined as the dimension
- It governed the relationship between of the economy that turns out
landowners and tenant farmers by products for intermediate or final
organizing a share tenancy and consumption.
leasehold system.
 - The growth of a nation’s industry - Government programs that aim to
sector often signifies growth of the improve infrastructure in the country
economy as a whole. The sector open up business opportunities in
includes industries directly involved the construction industry.
in production. As such, a bigger
industry translates to more UTILITIES
production. Greater production also - The electricity, gas, and water
supports the move to a more supply industry plays an important
industrialized state of the economy. role in the Philippine economy.
According to the International
COMPONENTS OF INDUSTRIAL SECTOR Labor Organization (ILO), “quality
MINING AND QUARRYING utilities are a prerequisite for
- Quarrying is more appropriately effective poverty eradication.”
used in the excavations of stones, - This makes the electricity, gas, and
rocks, and similar materials. water supply industry a priority for
- Mining on the other hand, is the government to ensure enough
conventionally used to refer to the and safe supply of utilities in the
extraction of minerals such as gold, country.
iron, copper, etc. from the earth.
- The nature of mining and quarrying SERVICE SECTOR
has negative effects on the SERVICE
environment such as land erosion - It is an intangible equivalent of
and possible contamination of soil economic goods. Its provision is
and groundwater. often an economic activity where the
- Another issue is the fact that buyer does not generally, except by
minerals are nonrenewable. Due to exclusive contract, obtain exclusive
these, one of the most controversial ownership of the thing purchased.
socio-economic topics is whether the - It is otherwise referred to as
domestic mining industry should be nonmaterial commodities, such as
shut down or not. health, insurance, education, and
security.
MANUFACTURING
- The manufacturing industry is the SERVICE SECTOR
biggest driver of the industry sector - It is the dimension of the economy
and consistently, of the whole that produces services rather than
economy. The consistent growth and goods.
positive outlook for the industry - It is the biggest sector of the
translates to more opportunities for Philippine economy in terms of GDP
business and employment. contribution.

CONSTRUCTION
- It is another major contributor to the
industry sector.
SERVICE SECTOR on own account. These are the
- National Economic Development owner-occupied dwelling units and
Authority’s (NEDA) primer refers to imputed rent is estimated for
the service sector as the sector national accounts purposes.
which “produces intangible (invisible) - Real Estate is real property that
outputs through the application of consists of land and improvements,
labor, skills, and technology that can which include buildings, fixtures,
change the condition of products or roads, structures, and utility
persons, or that facilitate transfer of systems.
knowledge or ownership, among
others. GOVERNMENT SERVICES
- Its main responsibility is to deliver
COMPONENTS OF SERVICE SECTOR social, economic, and general public
TRADE AND COMMERCE services to the people.
- A component of the service sector
that is all about selling goods. DSWD
- Wholesale is the business of buying - Department of Social Welfare and
goods in large quantities from Development
manufacturers or producers and
selling smaller quantities to retailers INFORMAL SECTOR
- Retail the process of selling goods - It refers to businesses or business
directly to the consumer, usually in a activities that are unregistered and
shop or online. thus, not covered by the country’s
laws and regulations.
TRANSPORTATION, COMMUNICATION, - People who have odd jobs are
AND STORAGE examples. A small-time, household-
- Transportation & communication run business is another. An
facilitate the flow of trade and unregistered street vendor outside a
commerce public school is also part of the
- Storage provides custodial services informal sector.
to traders. Storage firms operate
warehouses and other facilities that TYPES OF ACTIVITIES OF FORMS OF
keep merchandise goods in safe and INFORMAL SECTOR
good condition. SURVIVAL ACTIVITIES
- It refers to informal labor which may
FINANCE include unpaid and casual jobs.
- Its main function is intermediation. These types of employment are
Banks and other financial institutions often undocumented and do not
are the main source of investments. pass official labor standards.

OWNERSHIP OF DWELLINGS AND REAL

ESTATE
- Ownership of Dwellings pertaining
to the provision of housing services
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