1. Compare and contrast Economic Growth and Economic Development.

Economic Growth and Economic Development have a lot of differences and similarities.
They may sound very similar in terms, and they may share the same objectives, but they
actually have distinct differences in concepts and other basis between the two.

In Economic growth, it is a narrower concept than economic development. Economic

growth is also a short-term process. It is considered as single-dimensional in nature as it
refers to the increase in the size of the country’s national income. It also measures the
formal economy in very quantitative terms and tangible results, mostly focusing on GDP
and overall output. In contrast, economic development is a long-term process. It is
considered a multidimensional phenomenon as it refers to the increase in the size of the
individual's income and overall improvement of a better quality of life in a nation. It also
focuses on intangible changes to provide both qualitative and quantitative results with
such measures in terms of various indicators like the Human Development Index (HDI)
to know the progress of the economy as a whole.

Another difference is that economic growth does not reflect or look into the depletion of
natural resources that might lead to pollution, congestion and disease. On the other hand,
economic development focuses on sustainability, which means that meeting the needs of
the present will not compromise the future needs.

Both economic growth and economic development have an impact on the overall
economy. Positive change in economic development can lead to economic growth, and
this will lead to a direct relationship between the two or what we call the two-way
relationship. Economic growth can be viewed as an overarching goal of economic
development, as they both denote the improvement or progress of standard of living in
society’s economy and individual's overall well-being.

2. From the 1st SONA of President Ferdinand Marcos Jr. last July 25, 2022, what are
the issues concerning economic development that are notable and will have a
significant impact on people's lives?
 The issues concerning economic development that are notable and will have a significant
impact on people's lives that are addressed on the first Sona of President Marcos Jr. are
the following:

➢ Economy
○ President Marcos Jr., said his administration would implement sound fiscal
management. He promises that under his administration, tax administration
reforms will be in place to increase revenue collection, ensure that expenditure
priorities will be realigned, and spending efficiency will be improved to
immediately address the economic scarring arising from the effect of COVID-19
and prepare for the future.
○ In terms of the tax system, he said that it will be adjusted to catching up with the
rapid developments of the digital economy, including the imposition of
value-added tax on digital service providers. He also vowed that the tax
compliance procedures will be simplified to promote the ease of paying taxes.
○ He also addresses the medium-term fiscal strategy which aims to attain short-term
macro-fiscal stability while remaining supportive of the country’s economic
recovery and to promote medium-term fiscal sustainability. He said that through
the implementation of this will promote transparency and credible commitment to
pursue the indicated socio-economic goals that optimize the government budget.
○ In terms of inflation, he said that it has accelerated in recent months due to the
significant increase in international prices of oil and other key commodities. But
despite this, he noted that the economic growth momentum remains firmly as
demonstrated by the strong 2022 first quarter GDP growth at 8.3 percent.
According to him, the economy is expected to grow by 6.5 to 7.5 percent this year
as the country continues to reopen the economy while considering recent external
developments.
➢ Agricultural Issues
○ The first problem that he addresses when it comes to agriculture is the food crisis.
He stated that he would come up with solutions to the rising prices and lack of
food supply by increasing the production of farmers in the planting season by
providing them financial and technical assistance.
 ○ The next one is about the national network of farm-to-market roads that he plans
to build to help improve the delivery of goods to market.
○ Lastly, it is about the loans of Agrarian Reform beneficiaries. He said that he will
urge the Congress to pass a law that will lift the burden experienced by the
farmers. He said that this measure will amend Section 26 of Republic Act 6657.
➢ Tourism
○ This time he addresses and acknowledges the abundance of opportunities that the
tourism sector creates. He said that he and the government will work hard to
improve the tourism industry in developing the roads and tourism spots, as well as
the airports and seaports to make it more convenient for tourists to travel around
the Philippines.
➢ COVID-19 Response
○ The President also stated that our country can no longer support another lockdown
brought by the imminent threat of COVID-19. That is why he was faced with the
challenge of steering the balance between the welfare of the citizens and the
stability of the economy. He also made sure that the country's healthcare system
has enough capacity, and has a continuous vaccine booster rollout, and that health
protocols are aligned with present conditions.
➢ Education
○ The President said that it is now time for students to return to full face-to-face
classes after having online classes for two years because of the pandemic. In
preparation for the resumption of in-person classes, he tasked the Department of
Health and the Department of Interior and Local Government to carry out another
rollout of booster shots to all teachers and students to avoid any complications
when the school year starts.
➢ Digitalization
○ With the rapid technological advancements taking place, the President hoped to
attain universal connectivity across the country through his National Broadband
Plan to help improve and utilize the government’s services to the public to help
them provide good and solid data that ensure security.
➢ Infrastructure and Development
 ○ Infrastructure development is one of the most crucial elements to improve sectors
ranging from agriculture, tourism, general economic activity, and governance,
noting that the infrastructure system is the "backbone of an economy." The
President promised to sustain and to expand the ambitious infrastructure program
of the Duterte administration.
○ When it comes to the Rail Transport System, he vowed to modernize old railways,
as he acknowledged that a railway is the cheapest way of transporting goods and
the passengers. He also said to finish the ongoing transportation projects, as well
as the improvement of the roads.
➢ Alternative Source of Energy
○ As part of his plans to adopt renewable energy, the President again backed the
revival of nuclear power plants, which green groups have previously flagged to be
costly and damaging to the environment. That is why he calls for the expansion of
energy sources and for the increase of its energy production. He added that
building new power plants, the use of renewable energy and bringing down the
price of electricity to consumers are the priorities of his administration.
➢ Foreign Policy
○ President Marcos Jr. promises that he will continue a friendly relationship with all
foreign friends and visitors. He affirms that the Philippines will remain
cooperative in establishing mutually beneficial outcomes with other countries. He
also claims to stand firmly in our independent foreign policy with national interest
as our primordial guide.
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