About the Economic Problems of the Philippines
Philippines as well endured in terms of exports, compensations from abroad Filipino employees. Also international straight financial investments, throughout the 2008 international financial dilemma, there has actually been consistent financial development in the current years. In the Global Competitiveness Report 2014-2015 of the World Economic Forum, Philippines really didn't make out well in terms of the high quality of the total framework. Their financial development could largely be linked to the compensations from the abroad Filipino employees, as well as the development in the Business Process Outsourcing (BPO) industry.
Philippines as well endured in terms of exports, compensations from abroad Filipino employees. Also international straight financial investments, throughout the 2008 international financial situation, there has actually been stable financial development in the current years. Despite the talk concerning financial development, the destitution prices have actually not altered dramatically because 2006. In the Global Competitiveness Report 2014-2015 of the World Economic Forum, Philippines really didn't get on well in terms of the high quality of the total facilities. Their financial development could mostly be connected to the compensations from the abroad Filipino employees, as well as the development in the Business Process Outsourcing (BPO) market. In the occasion of any type of situation, financial development is bound to endure.
The Policy As An Output
Embodied in the Republic Act No. 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998," is the policy of the state that deregulates the oil industry to "foster a truly competitive market which can better achieve the social policy objectives of fair prices and adequate, continuous supply of environmentally-clean and high quality petroleum products" (Congress 1998).
With deregulation, government allows market competition. That means government does not interfere with the pricing, exportation, and importation of oil products, even the establishment of retail outlets, storage depots, ocean-receiving facilities, and refineries.
It has been a decade ago since lawmakers made a proposition that deregulation would secure the Philippines from the vulnerability of oil price shocks due to its heavily dependent on imported oil. But it is now increasingly apparent that many are calling to scrap the law as six out of ten Filipinos favor the repeal of RA 8479 (Somosierra 2008).
The Policy As A Process
When President Fidel Ramos started his administration in 1992, the country had already started feeling the effects of power supply deficiencies, with major areas already experiencing power interruptions. The power crisis caused a slowdown in the national economy for nearly three years and prodded the government to initiate major reforms in order to rehabilitate the energy sector (Viray 1998, p.461-90). In response to a power supply crisis, Ramos revived the plans to liberalize the oil industry that were cut short during the Aquino administration due to Gulf crisis.
The government's efforts to enact an oil deregulation law were also intensified in 1995 when the Oil Price Stabilization Fund (OPSF ) started to threaten the fiscal stability of the economy. Deregulation was thus seen as the solution to the recurring deficit.
The problem of the OPSF deficit was in part related to the...