econ lt

• Agricultural Sector


  Primary sector where raw materials are extracted
• Three-Sector Model


  • Primary→Agricultural- we extract all raw materials here
  • Secondary→Industrial- processes raw materials into final products
  • Tertiary→Services- facilitates transport and sale of these products
• "Food is part of physiological needs"
• Source of Livelihood


  • 21.7% share in employment as of 2022
  • Average daily basic wage of farmers is 270.62 pesos
  • NCR has the least farmers working and the least proportion of farmers
  • Western Visayas has the most farmers working
  • BARMM has the most proportion of farmers at 57%
• Francois Quesnay (wrote Tableau Economique)

  Physiocracy- economic theory that puts value of land/agriculture and its products as the basis of a nation's wealth
• Components of Agricultural Sector

  • Farming (rice, corn, sugarcane, coconuts, mangoes)
  • Fisheries (Municipal, Commercial, Aquaculture)
  • Animal Husbandry (Livestock, Poultry)
  • Forestry
• Institutions & Programs


  • CARP- Comprehensive Agrarian Reform Program
  • CARPer- Comprehensive Agrarian Reform Program Extension With Reforms
  • AGRI-PINOY- Agrikulturang Pinoy
  • CLASP- Community Livelihood Assistance Special Program
  • ANYO- Agri-Negosyo Loan Program
  • SSP- Sikat Saka Program
  • KAYA- Kapital Access for Young Agri-preneur
• Industrial Sector


  Manufacturers that do the same product

  Industrialization is the changing from a primary agriculture base to an industrial base
• Industrial Revolutions


  • 1st (UK)- Mechanization, water power, steam power
  • 2nd- Mass production, assembly line, electricity
  • 3rd- Computer and Automation
  • 4th- Cyber Physical Systems
• Components of Industrial Sector

  • Manufacturing (Consumer Goods, Food, Clothing, Bakery Products, Furniture, Appliances, Automobiles, and Milling)

  Construction (Electrical Installation, Residential Construction, Building Construction, Roads and Railways)

  Mining (Quarrying, Excavations, Electronic Devices, Accessories & Jewelries)

  Electronics (Automation Technology, Power Monitoring and Energy Distribution, Digital and Wiring Infrastructure)

  Water (Household Water Distribution, Sewage and Drainage System, Irrigation, Dams and Hydro Infrastructure)

  Oil and Gas (Petroleum and Oil Companies, Natural Gas Extraction, Powerplants, Energy Marketing)
• Problems in Industrial Sector

  • Skills Gap

  Inadequate Infrastructure

  Import Dependence

  Environmental Issues
• Programs and Institutions


  • OTOP- One Town, One Product

  SSF- Shared Service Facility

  IDP- Investment Priorities Plan

  TESDA- Technical Education and Skills Development Authority
• Components of Services Sector

  • Financial, Insurance, Real Estate Activities

  Accommodation and Food Service Activities

  Public and Private Services

  Transportation and Services

  Information and Communication

  Arts, Entertainment, and Recreation
• Brain Drain


  People want to work abroad, we lose people

  Top OFW destinations: Saudi Arabia, UAE, Hong Kong
• Skill Mismatch Issues


  • Skills gap, Skills shortage, Skills obsolescence, Over and Under Skilling
• Labor Issues


  Contractualization ("Endo" - end of contract)

  Regular (security of tenure, benefits)

  Contractual (can get fired anytime)

  Provincial Rate

  Low minimum wage

  Biggest MWR: NCR, Lowest MWR: BARMM
• Institutions & Programs


  • FSAP- Financial Sector Assessment Program

  IT21- National Information Technology Plan for the 21st Century

  Labor Code- Presidential Decree No. 442

  RA 1052- Termination Pay Law

  RA 679- Employment of Women and Children

  RA 11210- Maternity Leave Law

  RA 8187- Paternity Leave Law

  RA 10361- Domestic Workers Act or "Batas Kasambahay"

  RA 772- Employer's Liability Law

  RA 8042- Migrant Workers and Overseas Filipinos Act
• Agricultural Sector


  • Primary - agricultural
  • Secondary - industrial
  • Tertiary - services
• The agricultural sector provides raw materials to the secondary industrial sector, which then produces final products
• The tertiary services sector is responsible for storing, distributing, and selling the final products
• The agricultural sector is important as a source of food and livelihood, contributing 21.7% of employment in 2022
• The agricultural sector contributes 9.55% to the country's GDP
• Physiocracy


  • Value of land as the basis of a nation's wealth
• Francois Quesnay was a proponent of physiocracy, which emphasizes how we use the land affects the progress of a country
• Components of the agricultural sector

  • Farming (rice, corn, sugarcane)
  • Fisheries
  • Aquaculture
  • Animal husbandry
  • Forestry
• The Department of Environment and Natural Resources (DENR) and its Forest Management Bureau (FMB) oversee the forestry sector
• Problems in the agricultural sector

  • Pollution (other countries dumping trash in the Philippines)
  • Depletion (overlogging, overfishing, deforestation)
  • Inadequate capital and infrastructure (lack of farm-to-market roads)
  • Climate change
  • Lack of interest of youth in agriculture
• Institutions and programs in the agricultural sector

  • Comprehensive Agrarian Reform Program (CARP)
  • Comprehensive Agrarian Reform Program Extension with Reforms (CARPer)
  • Agri-Pinoy (framework for agriculture and services of the Department of Agriculture)
  • Community Livelihood Assistance Special Program (CLASP)
  • Agri-Negosyo Loan Program (FANYO)
  • Sikat Saka Program (SSP)
  • Kapital Access for Young Agri-Preneur (KAYA)
• The industrial sector is the secondary sector, which processes raw materials into final products
• Industrialization


  • The process where production changes from manual to machine labor
• Industrial Revolutions


  • 1st - Mechanization, Water and steam power
  • 2nd - Mass production and assembly line
  • 3rd- Electricity, computers, and automation
• The industrial sector is important for providing product variety, employment generation (19.3% of employment in 2022), and contributing 29.23% to the country's GDP in 2022
• Components of the industrial sector

  • Manufacturing
  • Merchandising
  • Construction
  • Mining
  • Electricity
  • Water
  • Oil and gas
• Problems in the industrial sector include skills gap, inadequate infrastructure, and import dependence
• Institutions and programs in the industrial sector

  • One Town, One Product (OTOP)
  • Shared Service Facility (SSF)
  • Investment Priorities Plan (IPP)
  • Technical Education and Skills Development Authority (TESDA)
• The services sector is the tertiary sector, which provides services and contributes 58.9% of employment and 61.22% of GDP in 2022
• Components of the services sector

  • Financial, insurance, and real estate activities
  • Accommodation and food service activities
  • Domestic trading (retail, wholesale)
  • Public and private services
  • Transportation and storage
  • Information and communication
  • Arts, entertainment, and recreation
• Problems in the services sector include brain drain, skills mismatch, skills shortages, skills obsolescence, and labor issues like contractualization
• Institutions and programs in the services sector

  • Financial Sector Assessment Program (FSAP)
  • IT Master Plan for the 21st Century
  • Labor Code Presidential Decree No. 442
  • Termination Pay Law (RA 1052)
  • Employment of Women and Children Act (RA 679)
  • Maternity Leave Law (RA 11210)
  • Paternity Leave Law (RA 8187)
  • Domestic Workers Act (RA 10361)
  • Employer's Liability Law (RA 772)
  • Migrant Workers and Overseas Filipinos Act (RA 6042)