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THE NATURE OF ECONOMIC POLICIES

Economic policy
Is based on economic theory or principle.
It is the application of a theory or principle.
Are formulated to attain specific objectives or solve certain problems.
In economic policies, it is no longer possible to depend only on facts. Policy
makers are people with various values, orientations and interests. Many policy
makers are politicians or top government officials who have been elected by the
people. In most cases, they are inclined to make policies which ensure their
reelection or matters of political expediency rather than economic interest.
Economic policies are as good as their makers. If the policy-policy makers are only
after their own personal interests and that of their friends and relatives, then their
policies have little effects or adverse effects on the other sectors of the economy.

WHAT IS A GOOD ECONOMIC POLICY?

It must be stated in broad terms.


It must be long range, but flexible to a certain degree.
It must be in writing and easy to understand.
It must be widely acceptable.
It must be reasonable.
It must be consistent with the objectives and goal to be attained.
It must be communicated to all concerned.
It must be implementable.
It must cover all important relevant aspects.
It must be in accordance with the law.

Nevertheless, the most important element of a good economic policy is its deep
concern for the welfare of the people, especially the poorest of the poor. Precisely,
it is this group which is the largest group in the less developed countries that
needs most benefits of a good policy.
PEOPLE ORIENTED POLICY

A good economic policy should be people-oriented. The welfare of the


people is always the primary consideration. Some former poor nations became
progressive because their policies have been focused on the improvement of the
quality of life of the masses.
In the Philippines, it has been proclaimed that the main program of the
government is to improve the quality of life of the people. In fact, the Six Year
Development Plan (1987-1992) is a multi-pronged human development approach.
Dr. Placido Mapa, Jr., former Minister of Economic Planning said:
Man has always been the focus of all development efforts; hence, the
ultimate goal of all development activities is to improve the peoples quality
of life. This brings us to a point: that of sharing the fruits of development.
And this goal can only be achieved by pursuing national development
policies for various regions, through which the government hopes to redress
income disparities caused by growth imbalances.