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
lowering the cost of doing business;
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.
In privatization, control of a
business goes to a private
organization, while in
government is the one that
actually takes over a business.
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
• 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
• Wider Capital and Expansion – privatelyowned companies can raise capital more
easily than those firms owned by the state
because investors have more faith in privatelyheld firms.
• Less External Stress – companies in the
private sector experience less external
poundings than their state-owned
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
• 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
• Downsizing and Insecurity – privatization
provides a lot of insecurities – first to the
employees of the privatized company.
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
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
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.