Major Economic System and the Current Economic System of the
Philippines
Capitalism is a system of economics based on the private ownership of
capital and production inputs, and on the production of goods and services for profit. The production of goods and services is based on supply and demand in the general market (market economy), rather than through central planning (planned economy). Capitalism is generally characterized by competition between producers. Other facets, such as the participation of government in production and regulation, vary across models of capitalism.
A political and economic ideology based on communal ownership and
the absence of class. Communism, which can be thought of as capitalism's opposite, says that in a capitalist society, the working class (the proletariat) is exploited by the ruling class (the bourgeoisie).
While based on a Utopian ideal of equality and abundance, as expressed
by the popular slogan, "From each according to his ability, to each according to his need," communism in practice has only existed under authoritarian government and has been the source of millions of human rights violations and deaths.
Socialism is an economic and political system based on public or
collective ownership of the means of production. Socialism emphasizes equality rather than achievement, and values workers by the amount of time they put in rather than by the amount of value they produce. It also makes individuals dependent on the state for everything from food to health care. China, Vietnam and Cuba are examples of modern-day socialist societies. Twentieth- century socialist governments were overthrown in Czechoslovakia, East Germany and the U.S.S.R.
Philippines has a mixed economy. We have free enterprise where private
investors are free to open production and market them anywhere in the country or resort to exportation. However, there are sectors within the economy that operates with government control. There are rules and regulations to follow especially those sectors that are equated with concerns of national health, national security and national interest. Take the case of agriculture. Cereals and other agri-aqua production must be in the hands of the Filipino farmers/fishermen. Selectively, palay and corn farmers are given incentives by the government in the form of subsidized buying price.
Corporations engaged in agriculture, mining, and fishing are required to
be of Filipino owned or majority must be Filipino citizens. Before they embark on industrial production, they have to consider certain government regulations attached to them. Because of these limitations, dummies are deemed illegal and are brought to court for prosecution.
In short, the economic activities in the Philippines are both free of
intervention and with government regulations. It may be regared as mixed economy.
