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Understanding Poverty and Corruption's Impact

Poverty is a major issue in development economics that countries struggle to fight due to various constraints they face. Absolute poverty goes beyond lack of income and assets to include lack of basic rights and social exclusion. While no single measure can fully capture poverty, countries can utilize policies and organizations to potentially extinguish poverty over time through complementary policies that address factors like inequality, lack of opportunities, and social stability. Corruption is a significant problem that erodes trust and weakens democracy. It has negative economic effects like reducing investment and growth, misallocating talent, and decreasing the effectiveness of aid by diverting funds away from those in need.
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0% found this document useful (0 votes)
70 views12 pages

Understanding Poverty and Corruption's Impact

Poverty is a major issue in development economics that countries struggle to fight due to various constraints they face. Absolute poverty goes beyond lack of income and assets to include lack of basic rights and social exclusion. While no single measure can fully capture poverty, countries can utilize policies and organizations to potentially extinguish poverty over time through complementary policies that address factors like inequality, lack of opportunities, and social stability. Corruption is a significant problem that erodes trust and weakens democracy. It has negative economic effects like reducing investment and growth, misallocating talent, and decreasing the effectiveness of aid by diverting funds away from those in need.
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© © All Rights Reserved
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Developmental Economics

1. Poverty is one of the major issues in development economics. In your own belief,
can countries fight poverty considering the glaring situations confronting them?
International institutions such as UNICEF and the United Nations have been constantly
changing and redirecting their economic frameworks and policies in order to address poverty per
se. Notably, this is the case for both developing and developed countries, and obviously for
underdeveloped countries as well. Having said that, the paper deems it important to first establish
the definition of poverty in order to gauge its scope. Subsequently, the paper shall also identify
how economists measure poverty. Finally, in order to conclude whether or not poverty is
extinguishable or not, the paper shall ask if these measure of poverty in terms of what people
have in terms of income and assets (including human capital such as education) fully capture
what it means to be poor.
Adam Smith (1776) stated that "No society can be surely flourishing and happy, of which
by far the greater part of the numbers are poor and miserable." This statement by Smith is
definitely idealistic if viewed from the capitalist lenses, which promote higher inequality
amongst citizens. That is because a higher index of inequality makes money grow bigger in
value--what people do not have, people feel like they need more. In fact, as the world grows
larger due to technology and borders become more blurred, the stronger presence poverty holds.
Over the past half century, extreme poverty remain widespread. In 2010, more than 1.2 billion
people lived on less than $1.25 a day at 2005 US purchasing power parity (2013 World Bank
Estimate0. Furthermore, 2.4 billion live on less than $2 (ibid.). Poverty, however, goes beyond
the scope of simply having little resources such as money. Poverty is deprivation--impoverished
people are so deprived that they comprise the majority of undernourished people, majority of the
illiterates, have little to no political voice, are socially excluded, and are habitants of dilapidated
urban slums. Mankiw (2019) defined this to be more specifically referred to as "absolute
poverty."
The World Bank (2011) claimed that poverty is multi-dimensional. It means that each
state has a different experience of the magnitude and quality of poverty relatively. Hence, it is
measured in the quality of well-being. In order to expound, well-being comes from different
aspects of life such as earnings, where one lives, what and how much is consumed, and access to
other basic rights such as education and health. This is used to draw the poverty line. On the
other hand, poverty goes beyond the issue of statistical implication but it encompasses the social
and moral questions of "how is being unfair fair?" and why does the world see it as a
consequence of meritocracy rather than authoritative mismanagement and power manipulation?
With the current issues faced by countries worldwide, it no measure of poverty can fully
assess and capture the impacts and implications of poverty. However, countries have to utilize
they organizations and, more importantly, their government and use the power of policies.
Before going forward to how the paper views policies to be the enabling factor for countries to
extinguish poverty, it is noteworthy to state that individuals must also acknowledge their states
of poverty and be able to adjust their quality of living in an attempt to escape it. To rail back to
the idea of policies, a "package" of complementary and supportive policies include four basic
elements:
First, it must correct factor price distortions. By doing so, it would contribute to the
countries' greater productive efficiency, more employment, and--of course-- less poverty. Given
the Philippines' demographics particularly, it may be important to promote indigenous
technological research and development of efficient, labor-intensive methods of production.
Second, it must bring about far-reaching structural changes in the distribution of assets,
power, and accessibility of education and income-earning opportunities. Going beyond the realm
of markets, restructuring will improve the living conditions of the masses of both urban and rural
poor.
Third, it should modify the size of distribution of income at the upper levels through the
enforcement of legislaltive progressive taxation on assets. The overall effect would be to act as a
social "safety net" for people bypassed by the development process.
Lastly, it should force local, national, and international organizations--both governmental
and non-governmental--to directly improve the well-being of the poor AND their communities.
Hence, in my own belief and more importantly, through the knowledge that I have pooled
in developmental economics, countries do not YET have the ability to fight poverty but it has the
potential through policy development. As I consider myself to be highly political, I identify as a
socialist liberal. In this regard, I posit that--first--extreme income inequality leads to economic
efficiency. Partly, because at any given average income, the higher the inequality is, the smaller
the fraction of population qualified for loan or credit transactions (re. relative poverty). Because
people are deprived of such basic commodities such as education, the lower the density and
quality of the labor force becomes. Moreover, with high indices of poverty, the lower overall rate
of savings the economy has. So capital flight is surely the trajectory of economies. In short,
poverty and inequality would lead to lower average income and a lower rate of economic growth
The second reason is that an inequality going over the poverty line at a high disparity undermine
social stability and solidarity. In turn, the rich portion of the population will inevitably bargain
economic power for political power and resist the redistribution of the existing economic pie.
Lastly, poverty is generally viewed as "unfair."

2. Corruption is rampant in the government. This is a disease originated from the


misuse of power since the very beginning of government establishment. Explain the effects of
corruption in the economy and its negative implications.
What is corruption? It erodes trust and weakens democracy. Heywood (2015) posited that
corruption takes many forms like, public servants demanding or taking money in exchange for
services; politicians misusing public money or exercising patronage in the place of meritocratic
qualifications for politically appointed positions; and, illegal forms of lobbying of private
corporations which blur the public and private divide. The author also stated that corruption has
many implications on all spheres of citizenship such as political, social, environmental, and
economic costs. Hence, this paper concurs to the claim that it is a disease that is no longer
benign. In this regard, the paper shall state the effects of corruption in the economy in particular
and how it impacts individuals.
As an overarching idea, corruption impedes the opportunity to build and grow wealth in
both macro- and microeconomic spheres. However, corruption is better defined as "the
appropriation of public resources for private profit and other private purposes through the use
and abuse of official power or influence" (Mankiw 2015; Todaro 2019). In short, it is a form of
stealing. In fact, corruption indices have been far higher in developing countries then in the
developed countries. Simply because, an absence of corruption reflects encouragement for
foreign and local investors to expand the economic pie and just fight for its distribution. So, as
societies grow wealthier, good governance becomes more demanded. An example of this
phenomenon is Taiwan's press obtained substantial freedoms that caused many public scandals to
be publicized. The public pressure for economic reform rode the mechanism of elections.
Hence, the overarching effect of corruption on economies falls disproportionately on the
poor and are a major restraint on their ability to escape poverty and it slows economic growth
through a wide range of channels.
The first corollary effect of corruption is it lowers investment and retards economic
growth. This is because businessmen would view the political sphere as another arena of
competition aside from the consumerism of the private sphere. Hence, bribes become a species
of bribe that would fall greatly on their expense. Further, diminishing their incentive to invest.
Second corollary effect is that talent would be misallocated; some refer to this as brain
drain. As much as this effect is self-explanatory, the more talented and more educated citizens of
a country would, by no argument, flock to an environment where they have a better opportunity
to grow in their profession.
Thirdly, corruption reduces the effectiveness of aid flows through the diversion of funds.
As a result, many donor countries would focus on issues of good governance instead of focusing
expenditure on poverty and advancement of citizenship, if not totally scale back their assistance.
Corruption also causes reduction in tax, raise in level of public expenditure, and
implementation of improper below-the-market interest rates. that of which leads to adverse
budgetary consequences and monetary problems.
It leads to lower quality of infrastructure and public services as well. And finally, it may
distort the composition of government expenditure. Large projects whose value is difficult to
liquidate means its easier to collect substantial bribes and embellishments. Hence, corruption
may be seen as an antipoverty scheme and antimonopolistic policies foster bottom-up reforms.

3.
The recent pandemic has greatly impacted the world's closed economy. Not only has it
impacted the individual levels of economy but it has also impacted the corporate levels greatly.
First, the flow of production and consumption was halted leading to adverse losses. Second, it
has created gaps in consumerism and consumer preferences. Lastly, it has cause a great
degradation in the employment rates of states. In fact, Pak et al. (2020) identified "reductions in
income, a rise in unemployment, and disruptions in daily life" sought the fall of the pandemic,
along with it, the economy.
The pandemic made the countries' economies volatile and imposed a structural impact on
the global economy. Furthermore, the corporations are now taking the future possibilities of
another pandemic resurfacing into account. Increased cash flow in the production aspect of all
economies are made up of several deviations. Firstly, consumables have taken packaging into
consideration, gauging on single-use plastics or other similar alternatives. Because this implies
that trash accumulation is envisioned to rise exponentially, corporations and governments also
visualize an increase in the budget allocation for waste management. Furthermore, a disease such
as COVID-19 entails harsher work environments. This means that economies are now coerced
into allocating larger values into ensuring worker safety and work-environment safety.
Due to the price elasticity and inflation implications brought by the Pandemic's full
economic halt, import and export expenses have also retained the increase. That said, local
produce and local economies may thrive more, leading to the price of oil to drop. The fall of oil,
international economic activity, and less cash flow would eventually lead to a flop of many
nation-states.
Hence, COVID-19 has not only influenced the economy in terms of asset exchange per
se, but it has also allowed economies to touch the field of safety and regulation. The economies
thrived during pre-pandemic seasons and significantly flopped after the pandemic arrived. This
shows the instability of economies in relation the unprepared nature and insight of governments
and people organizations. The influence of health concerns to the economy was a long-shot that
many economists saw coming but were ignored. In essence, the paper makes use of an
overarcing thought to wrap the whole paper up: ignoring all possible variables in the shift of
economic aims is never beneficial and COVID-19 has taught us this through practical ways.
Hence, while there is a long term shift in the world's market deemed to be negative, it also shows
that there are many more ways of increasing the systematic approaches of governments and
economies simultaneously in ensuring consumerism.
The economy is an entity that needs reassurance and constant evaluation. By the means
of health concerns, environmental shifts, and other sociological factors that many markets choose
to ignore, COVID-19 has shown that this is not the way for the globalized economy to move
towards. It shows that as the world becomes more complex, there must also be adjustments
found on the part of corporations. Simply being profit-driven will lead to an inevitable downfall.
Public Administration
1.
This question is a case of comparative politics and the most popular aspect in this field is
the state. McCormick, Hague, and Harrop (2019) identified the idea of democracy as one of the
easiest concepts to understand but also one of the easiest concepts to confuse. Democracy was
defined by Heywood (2015) as a political system in which government is based on a fair and
open mandate from all qualified citizens of a state. Democracy has an intrinsically western core
that promotes freedom and decentralization of power. As a core principle of democracy, self-rule
refers to the election of rulers by the ruled but to the denial of any separation between the two.
The features of a democratic rule are well-placed upon the representative systems of government
with freedom and competition, stable and predictable political institutions and processes based
on a system of power distribution, comprised of a non-monoparty system with protected
oppositions, and diverse and independent media establishments. All forms of democracy (re.
direct, liberal, and representative forms), however, promoted equality is, was turned down by
Winston Churchill as the worst form of democracy. On the other hand, Authoritarianism is as
nuanced and complex as democracy in the sense that it operates within unspoken limits.
Conversely, this system of government is ruled by an individual or a clique whose belligerence is
often a cover for vulnerability. There is also the constant presence of coercion and patronage. In
this light, corruption exists in every sphere, idealistically.

In order to properly extrapolate the difference of public administration within these two
systems of government, the paper metaphorically represents the former's leader as an orchestrate
and the latter's leader as a ruler (Carino, 2003; Ocampo, 2016). The different forms of
government system create different limits and areas of prioritization within the administration.
For example, the values of a democracy would center on serving the people instead of
maintaining stiff criminality laws. Another example is that the nature of business-oriented goals
of a laissez faire economy in a democracy would impede the radical socialist goals of a
dictatorship. Furthermore, it is in my belief that dictatorships is simply power abuse cloaked in
forced authority and illegitimate use of control. Hence, these influencers are what drive the
public administration to vary depending on the type of government system at hand.
The difference of consumerism and authoritarian goals are most prominently
distinguished by centralization and decentralization, respectively. Centralization of power in a
dictatorship makes the intent of the government more power centric rather that people-centric.
Conversely, the need for a decentralized distribution of power constitutes a sort of check and
balance system within the state and creates a more accessible and transparent for of public
administration. In conclusion, the difference of the government system experienced by the state
has contributed to the characteristic of the public administration throught the goal-setting and
attitude orientation of the people in charge. That said, it is fair to conclude that public
administration is indeed dynamic depending on whether the arena it operates by is democratic or
authoritarian.
2. What is public administration and does it work in relation to the government system in
the Philippines?
Public Administration is still unestablished insofar as there are still multiple definitions
associated with it. First, Nebres (2009) defined it in three ways. First, the author wrote that
Public Administration referred to the subfield of political science committed to the study of
bureaucratic processes and institutions of government. Secondly, Nebres cited Richard and
Copen denoting Public Administration as the organized process concerned with implementation
of objectives and plans and internal operating efficiency. Thirdly, Nebres cited Presthus who
defined it as a branch concerned with the institutional framework of the government, its
socioeconomic and political milieu, and the behavior of individuals who watch the bureaucratic
machine. Finally, Nebres cited de Guzman in saying that Public Administration deals with the
formulation of public policies and implementation of government programs so wherever there is
government, there is public administration. So, yes, it does work in relation to the government
system in the Philippines.
Public Administration is best described in Section 1, Article XI of the 1987 Constitution,
which stated that "Public office is a public rust. Public officers and employees must at all times
be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and
efficiency, act with patriotism and justice, and lead modest lives." This means that the nature of
public administration in the Philippine government system is closed at four (4) functions. Public
Administration is an essential tool of government in the performance of its functions. What this
means is that Public Administration serves as the ball-bearing in policies and programs. This is
where the government puts the policies and programs in operation and the public servants (both
administrative official and civil service employees) implement them. Hence, the public
administration in relation to the government is comprised of the executive, judicial, legislative
and other agencies of the government.
Subsequently, it also functions as the protective partner of politics in a sense that it brings
the affairs of government to the people through active participation on matters affecting their
welfare. Public Administration is a part of political process and environment as a dynamic organ
of the government that is sensitive to the needs of the people. Finally, it carries out public policy
and regulates itself in the process.
Nevertheless, the Philippine Administrative System is not fully functional as an arm of
the democratic system of the Philippine government because there exists a dichotomy in form,
substance, and attitude. In essence, a Filipino being a public servant in an Western-influenced
government system have disparate instilled values and culture that dictates them to feel the need
to deviate. This dichotomy is mainly rooted in the incompatibility of western theories that
constitute most of the PPA tot he actual context. As an addition, a manifestation of the impact of
the dichotomous nature of the Philippine Administrative System calls out an identity crisis.
Nevertheless, the PPA is slowly finding its footing, with PA scholars working hard to give it its
own identity by searching for an ethos that will distinguish Asian, if not Filipino, PA from
Western PA. A Public Administration that takes into account the unique context of the praxis of
PA in the Philippines. This "praxis" should recognize the local and indigenous systems and
forms found in the Philippines, which provides a platform for analysis and the development of
Public Administration Theory.
3.
In relation to the private sector, the public sphere more often employs authority in the
aims of achieving its function. The state has the ability to control individuals to pay taxes, pull
mortgages, and punish wrongdoings due to the power placed upon them by the law. Thus, it is
important to allow them to understand the implications of this possibility of coercion and ask for
equal treatment. This, in turn limits the extent to which the general public may engage in
consumerism. Conversely, this coercive aspect is absent from the private sphere despite being
business-aligned by nature. private firms have a tremendous deal of latitude to act to their own
discretion. As a result, these businesses may charge in diverse ways and operate outside the
norms and regulations.

In this light, the main objective of the government is to produce public value and the
private is for profit maximization. On the other hand, the government is seldomly in unison with
making decisions such as these so the result of their objectives are intrapolated by complicated
measures and evaluations. In most cases, a lack inappropriate measurement makes the majority
of the public sector useless and with no oversight. While this is also a possibility for the private
sector, the objective measure of their progress is seen to contribute to their success.

However, despite the diversity of objective, success is a concept with widespread


consensus in terms of financial returns and market share. Politicians may demand administrative
steps that are all over the place and driven by blatantly political motives. Hence, a manager is
tasked with a significant portion of functions in a political leadership limited by their available
room for action. Furthermore, due to the vastness of public sectors, it is difficult to maintain
control and coordination.

Tranformational Leadership
1. Can pandemic be considered as a catalyst for a change in government? Why or
why not
The Pandemic Crisis has caused the world so much problems and it has tested the veracity of
governments; the effectivity of their measures and decisions in adapting to the changes and
constantly shifting conditions. On the one hand, the majority of the leaders of state governments
have shown a diverse set of ability to think, act, and control implementations while navigating
through stretching their limited resources. In aspects that prove to be difficult even at the reach
of professionals and academics, the bureaucratic and administrative procedures are proved
difficult, if not impossible. Hence, the officials were pushed to simplify and modify these laws
and procedures to become inherently simpler in a very short span of time. These changes in
legislation have, in turn, brought the self-sustenance of the state the endurance of those who were
executing it.
The crisis made it possible for governments to push their abilities to adapt and survive, thus,
furnishing their service to the fullest possible potential. However, there are important questions
raised about whether these changes are sustainable. Furthermore, and more importantly, how
much deeper should governments dive in order to reach the depth of change that would allow
them to cope with both short-term and long term implications in relation the values that they
aspire to achieve.
Subsequently, in terms of personal and financial consequence of the Pandemic, as well as the
ramification for the running of democracies, it is imperative that the government endeavor to
learn from history and continuously apply these changes. the organization for economic
cooperation and development (OECD) create an arena for collective learning by compiling the
data of different nations and makes it available at the disposal of governments to evaluate and
formulate possible measures for mitigation.
Hence, the pandemic is viewed in the light of teaching governments to consider crises as a
potential catalyst for transformation. It ca be viewed like the increasing pain tolerance of a
person, gradual and more intensely, the crisis will make governments withstand harder times. It
should push governments to be more citizen-centered through adjusting the policies and level of
commitment that the offices offer.
In relation to the previous discussion, the paper deems it important to create a resounding
statement on how important the roles of governments are in the adaptation of states wit world
conditions. The change in world conditions may manifest, for one, in the form of crises such as
the Pandemic, abut it may also be in social conditions. The resurgence of different values and
different preferences has made individualism as dangerous as health crises like COVID-19. In
this light, the paper notes that the catalyst of change in different crises are mainly constituted by
the compromise and political agreement of the constituents and the authorities-in-charge.
Without such mind-conditioning, change and transformations would be impossible even in the
face of invisible enemies or death and mass-wide extermination itself.
2.
The nature of organizations are planted upon macro-level and micro-level actors. Macro-level
actors are comprised of whole companies and the micro-level actors are comprised of the
particular departments and teams comprising the companies. These people making up the
organizations' body are all uniquely composed with different ideas and mindsets. Hence, an
organization is seen to be multicultural. In this regard, effective management is taking all the
cultures and integrating them to become a unique singular culture for their particular company.
To do this, it is necessary to impact the peoples emotions, logic, and abilities to be honed
according to the demand of the company.
Emotions bring bout conviction that alter their conduct; logic allow them to comprehend
situations and the trajectory of how they would handle the situation; and, their skills and abilities
are the vehicle to bring about the progress and contribution to the organization.
Cooperation and full participation among the individuals in all levels of the organization is
required for a successful transformation to arise. In this regard, leaders play a crucial part in
demonstrating (being a role model) and simultaneously guiding the individuals in how they
should behave in order to penetrate the whole of the organization. In a sense, employees are least
likely to achieve long-term behavioral changes on their own unless the leaders are demonstrating
the impact of these changes.
Conduct evaluations are performed in order to determine how the organization is to go about in
the near future in relation to the grounding of its current reality. This is due to the leadership
having different impressions of culture than the rest of the business. Hence, this shows that the
disparity between the company culture and the rest of the company deems it important to get
accurate data and feedback.
Establishing organizational goals and objectives are also imperative so that the management will
know when progress is present and change is successfully brought about. This would include, but
are not limited to:market reach, honing innovative leaders i the field of the business, and/or
distinguishing exceptional patronage.
In the simplest terms, modification is necessary in order to fit company goals and create a
sustainable company culture and clientelism. Specifically, this entails that transformation is
brought from engaging with both executives and workers who will lead and execute,
respectively.
The culture of a company dictates how the workers wish to be treated, how the company is
envisioned to go about and how the sustainability of all its aspects can be honed and maintained.
That said cultural transformation happens at the heart of the company's multicultural identity,
successfully led by an effective leader. Finally, it is very important to establish limitations on all
aspects of the organization from beginning to the end of the transformation process after the
grounding of the current state of the organization. Visualizing the trajectory of the organization
is one of the most crucial steps in creating and maintaining focus while transitioning. In short,
attaining the organizations' goals include consistent check-ins and milestone celebrations.
3.
Leadership is most often confused with the idea of dictatorship. Hence, the problem is often
identified with personal-level or individual-driven problems such as manager, or
chairpersons, or team leaders. On the other hand, there are actually a handful of problems
and types of problems that constitute leadership issues. These include the strategies
surrounding their craft; the compatibility of the company they work for, and the culture
driving the whole organization. It may not be a problem of the person-in-charge per se, but
it could be an institutional issue at most. Hence, it is appropriate to investigate the
members and the other factors comprising the system who have formal power, instead of
simply pointing towards the highest authority alone. It could also be in the lack of planning
and ability of the overall group to execute, which makes one prone to tunnel vision in
viewing leadership issues side-by-side with leader problem.
What the paper is actually pointing at is that a leader is a system of powers, resources, and
other agencies, not the individual alone. The individual is but a driver of leadership
positions. As a social process, it provides an opportunity for people to cooperate and
accomplish collective results or results that are unachievable by working alone. The
discourse and brainstorming between the driver and his passengers are essential for full
satisfaction of the trip, this is the same thing with leaders and followers. The leader is only
dysfunctional when the followers are not in sync. Again, this is not a problem of personal
incompatibility alone but is also impacted by the views and values of the persons engaged,
the quality of relationships, and the formal structures and processes, and habit formed by
the group members. In this regard, it is noteworthy to say that identifying the root cause of
leadership problems is complex because it is necessary to look at whole systems rather than
an individual alone. So, formal leaders are only one essential part of the whole, dynamic,
and complex process of leadership within an organization.
So, what does make up a good and effective decision making-process? The most effecient
place to start with is establishing the target results that the leadership process is aimed
towards. TO do so, there are three (3) critical dimensions for results to emerge: direction,
goal alignment, and commitment (DAC). There must be consensus on the group's overall
aim and this constitutes direction. People with strong directions are more likely to focus on
doing tasks that contribute to achieving the goal. Converesly, members with conflicting
aims are more likely to have different actions that contribute to different goals.

Alignment is a product of consensus. This is the process of coordinating efforts within a


group. With poor alignment, individuals are more likely to work in isolation which makes
progress slow down and or more prone to committing mistakes. That said, the efficiency of
the group exponentially flops.

Finally, commitment is a shared sense of responsibility in achieving the goal at hand. If


members feel that they are compelled to achieve the success of the group, they are aware
that they need to be in sync. They avoid divulging and are highly likely to achieve
effieciency and success.

Fiscal Administration
1. Enumerate and explain the criteria on whether the Local Government Unit should
participate in Local Economic Enterprises. If you are the LGU chief Executive, will you be
implementing projects through LEEs?
According to Nebres (2009), an LEE or a Local Economic Enterprise includes public
markets, slaughter houses, hospitals, public cemeteries, parking areas, etc. that aim to be income-
generating resources of Local government units. However, on the ground, many Local Economic
Enterprises incur losses on a continuing basis. The very initial step in considering whether or not
the Local Government Unit should participate in the Local Economic Enterprise is its objective
performance. The consideration for specific Local Economic Enterprise is that a Local Economic
Enterprise is self-liquidating and it aims to avoid draining the Local Government Unit's
resources. In that regard, the establishment of the planned Local Economic Enterprise shall be
evaluated by appropriate authorities. The criteria for such is as follows:
The availability of a product or a service is essential in order for a Local Economic
Enterprise to establish that there is a demonstrable demand for output. It also implies that
commensurate user fees may be charged for the use of the LEE's production in accordance with
its business character.
A form of governmental feasibility study must be conducted in hopes of assessing the
long term eco-social viability as mandated by sufficient demands and the overall chance of the
economic enterprise to be established. Furthermore, the prospective constituency users shall be
assessed of their willingness and ability to pay for the use of the Local Economic Enterprise.
Determining the appropriacy of Local Economic Enterprise's as the facility for the service
delivery of Local Government Units, Local Economic Enterprises must meet the economic and
social objectives as reflected in the PDPFP if on the provincial, CDP in the case of a city or
municipality. It shall also be reflected on the LDIP and Annual Investment Program and
simultaneously, it shall follow the applicable laws and regulations or AIP.
The establishment and operation of a prospective Local Economic Enterprise shall be
considered as a part and parcel of an overall development and economic planning process.
Hence, the allocation insight for a Local Economic Enterprise has been included in the Local
Government Unit's Annual budget as part of the overall spending requirements.
The Public Sphere is compelled to cooperate with the private sphere in filling the gaps of
service delivery as stated in the second criterion. The criterion also states that the Local
Economic Enterprise functions as a commercial operation with its own business plan and budget
that the Local Government Unit can manipulate based on their political and fiscal footing. As the
fourth and final criterion, it shall appoint a workforce that complements the Local Government
Unit's operational goals; consequently, the appointment must be in compliance with the current
Civil Service Commission's standards and regulations.
In conclusion, if I were the Chief Executive head of a Local Government Unit, I would
implement projects through the Local Economic Enterprise. This is because I see it as an
augmenting factor of the Local Government Unit's income in hopes of supporting my
constituents. So, an Local Economic Enterprise is a machinery in serving the common good,
especially for people who are unable to access private services.

2. Discuss the budget cycle in Philippine Government and how it is being


implemented.
The budget cycle of the Philippines is a time interval when the period by which the
government drafts and proposes a budget for the succeeding year. Budget preparation,
legislation, execution, and liquidation make up the full Philippine budget process. Each Phase is
exclusive and non-overlapping in the majority of times. However, when they do overlap, it
means that the process is at the execution phase throughout the fiscal year in question.
On the first phase, the preparation of budget, a budget call is issued by the director of
budget and this marks the launching of the planning period. The budget call includes the budget
criteria that was previously established by the DBCC or the Development budget Coordination
Comittee. Also, it complies with the policy guidelines and processes to assist the government
machineries in the development and execution of their budget proposals to and for the World
Bank. It has two (2) variations: first is a national budget call that concerns all government
machineries, including educational facilities; and, a corporate budget call that concerns all
government-owned and government-controlled corporations (GOCCs) and government financial
institutions (GFIs). Subsequently, after the budget call, the individual government arms shall
submit their separate agency budget proposal to their director of budget. This calls for maximum
political participation so the executive officials are tasked to collaborate with the citizen
organizations and other stakeholders in creating the agency budget proposals. Consequently, the
proposals are presented to a group of personnel comprised of the technical panel of the
Department of Budget and Management or known as DBM during budget hearings. During
budget hearings, the various departments and agencies are given the chance to defend these
aforementioned budget proposals.
After careful evaluation, the Department of Budget and Management produces an
analysis to formulate possible revisions to be presented to the Executive Review Board. The
Executive Review Board is made up of the DBM Secretary and the department's top officials.
These recommendations take into account, the prioritized projects and the national government's
agenda.
Then, the Department of Budget and Management compiles the suggested agency
budgets into the National Expenditure Program or wat is known as the NEP and the budget
expenditures and source of financing that are all published by the BESF. In turn, the document is
presented in the form of proposed general accounting office budget containing the details of
proposed expenditure for each department.
A more extensive breakdown if the most important PAPs in the NEP, particularly those
that fit the government's development strategy, is encoded in the Details of Selected Programs
and Project Section. And then, the President and the lower house is provided the NEP and BESF
by the DBM and the DBCC for the final revisions. Then, as the two entities accept the proposal,
the DBM formulates the budget papers into three (3) documents namely, the president's
explanation of the framework and priorities in a document known as the President's Budget
Message; the BESF mandating the macroeconomic assumptions for the current and the two (2)
succeeding fiscal years; and, the national economic plan.
There are usually two parts that make up the Public Expenditures namely, the outlays,
and the current operating expenditures. Outlays or what is known as Capital expenditures are
allocated for the construction or the maintenance of infrastructures. They are costs that last for
more than a year and that contributes to the government's assets through capital bonds. On other
hand, the current operating expenses are purchases that do not stretch beyond one fiscal year.
Personal services, and maintenance and other operational costs make up the current operating
expenses.
Public Expenditure is broadly classified as economic development expenditures, social
services expenditure, and general public service expenditures. Economic development
expenditures are closed to expenditures on agricultural and natural resources, transportation and
communications, and other economic development-related programs. Social Services
expenditures include the outlay on health, education, labor and welfare, social struggles and
other social development aspects. Finally, there is another way of classifying Public
Expenditures which is based on the type of monetary allocation (i.e. general fund, special fund,
and capital bonds).
3. Explain the statement, “a public office is a public trust”.
Public office is public trust can be taken from two perspectives, at face value or at an in-
depth lens. At face value, this constitutes the first principle of public service ethics. This implies
that the an official being voted into his post was designated with legitimate authority by the
mass. This is especially true for the capitalist democracies. Now, given that the public has
entrusted the management and the regulation of public resources and processes at his own
expense, the official appointed must be transparent and accountable for all his actions while he or
she is in office. In the event that public officials break this trust, he or she is known to be
pursuing personal gains using public resources that may only benefit himself or a select few, not
public welfare. The paper shall now cite a few ethical ground rules established by the
constitution in order to objectively maintain public trust: first the administrators defer the policy-
making prerogative of the legislature and implement laws in good faith; demonstrates highest
loyalty tot eh broadest public good or a utilitarian intent must be in place; maintains integrity of
democratic process or honors the spirit and intent of rules and laws; does not use public
resources for personal affairs; and, does not abuse his or her title for the prestige or the implicit
power given by his or her office.
That said, all of it sums up to corruption. Corruption is the root cause of public distrust
and corruption impedes the rights of the people by influencing the duties of judges, prosecutors,
lawyers, and other legal professionals. Hence, the implicit meaning of public officials breaking
public trust is when they break the ability of people to access full rights. For example, the case
of Vuuzle Media Corp was branded with dishonesty. They are killing the victims and they are
are killing the will of the widowed.
In conclusion, the idea of public trust in public officials are concentrated upon the fact
that people put officials into office in hopes that these officials would represent them fully. That
said, the most basic service that these officials can render is to create a sphere of resistance
against the oppressors and impeders of their personal and basic rights. That said, people with no
money to bribe judicial officials or hold land reform accountable are the faces of the public
distrust.
In essence, the people are the real drivers of power and they have the ability to choose
who represents them. The act of choosing who represents them is the real wielder of power and
this power grants the official authoritative legitimization of the power borrowed by these
officials. So, by keeping the power they borrowed, they are juxtaposed with the responsibility of
upholding the rights of those who granted them power in the first place

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