Business and Trades Institutions

and Agencies

To support the business, trade, and industry sector,

including all local and foreign firms, there are various institutions and agencies that exist that

have this particular function.

Among the government agencies that support

business and trade are the Securities and Exchange

Commission (SEC) and the Department of Trade and

Industry (DTI).

The Securities and Exchange Commission or

SEC seeks to strengthen the corporate and capital

market infrastructure of the Philippines, and maintain a

regulatory system.

The Department of Trade and Industry or DTI is a primary

department or agency of the government that serves as the

primary coordinative, promotive, and facilitate arm

for trade, industry and investment activities.

Objectives of DTI:

a comprehensive industrial growth strategy; a progressive and socially responsible

liberalization and deregulation program; The expansion and diversification of both

domestic and foreign trade; the promotion and development of small and

medium enterprises (SMEs);

preparation for the knowledge economy; lowering the cost of doing business; and ensuring that consumers get the best value for their money.

The end goal of DTI is to grow and expand Philippine trade and industry as the

means to generate jobs and raise incomes, so that

Filipinos may enjoy continuing improvements in

their quality of life.

Privatizationand

Nationalization

In privatization, control of a business goes to a private

organization, while in nationalization, the

government is the one that actually takes over a

business.

Privatization

Privatization is the sale of government assets, particularly firms or companies, to private groups or organization.

Modes of Privatization

Privatization may be done through the following means:

• Share Issue Privatization (SIP) – In this method, the shares of the government firm are sold on the stock market.

• Asset Sale Privatization (ASP) – This is the selling of the entire government firm, usually through an auction or a bidding process.

• Voucher Privatization (VP) – This is when the shares of ownership are distributed to all citizens for free or at a very low price.

• Rehabilitate-Operate-Transfer (ROT) – this gives the opportunity for private investors to rehabilitate state-owned companies that may be in financial or organizational distress, operate them for a time, and then transfer them to the government again once a certain profit or return is realized.

Advantages of Privatization

Proponents and supporters of privatization point to the following as their reasons for going for privatization:

• Better Management – private companies are said to be managed in a better and more efficient manner.

• Wider Capital and Expansion – privately-owned companies can raise capital more easily than those firms owned by the state because investors have more faith in privately-held firms.

• Less External Stress – companies in the private sector experience less external poundings than their state-owned counterparts.

Disadvantages of Privatization

Opponents and critics of privatization point also to certain reasons why they oppose privatization and these are the following:

• Cuts in Essential Services – critics say that private companies emphasize profit, and would give their best products and services to those who can pay much and not to the general public.

• Concentrate of Wealth – a government firm that earns well may be privatized for other reasons that will result to the profit going to the pockets of a few individuals and not the general public.

• Downsizing and Insecurity – privatization provides a lot of insecurities – first to the employees of the privatized company.

Nationalization

Nationalization is the act of taking assets or companies into state ownership or control. Sometimes it is done using legal means, but payment may or may not be fair to the private owners.

Nationalization may be crucial when some basic services are not being provided to the people by private companies. In such cases, government may have the legal right to buy these entities, at a proper price, so that the services may be duly given to the people.

Setting and Maintaining Standards

The business and industry sector continues to be a main part of the economy of nations. The sector has been doing its best in providing quality goods and services to consumers. With the help of government agencies, the sector has been growing through the years.

The Philippines today is privatizing pertinent industries to promote efficiency in the delivery of basic services. The business and industry sector continues to grow in the country, and technology-based businesses such as Business Process Outsourcing (BPO), where foreign companies get our services in the form of call centers and medical transcription work, are slowly gaining headway.