Is the act of removing strict control of the government on laws in the regulation of some important industries. The reason given to deregulation is the presence of competitions on like products, high production and high prices. In deregulation the laws that control corporations are not removed but rather the restrictions relevant to these laws are a bit lessened. Market forces are given the right to determine market prices depending on the demand and supply of goods. One example that happening related to deregulation is that of the oil industry in the Philippines. Companies determine the prices on the prevailing world market prices. The government does not intervene but rather monitors only the movements of each company. Under regulation, the government determines the prices. EFFECTS OF GLOBALIZATION AND DEREGULATION IN THE LIVES OF FILIPINOS Deregulation is one policy under globalization. Under deregulation the strict control of laws on big industries are enforced. One of the biggest industries being deregulated is that of the oil industry by virtue of Republic Act 8479 passed on in 1998. Suggested by the law that the government will not intervene on the determination of oil prices. Also the import and export of petroleum products, establishment of oil depots, refineries, gasoline stations and other services is given to the oil companies. Three biggest oil companies are Caltex, Pilipinas Shell and Petron including the small oil players overseen by the same industry. The aim of the law is to allow market forces such as demand, supply, speculation, climate and geopolitical situations to determine market prices. Prices may rise and fall depending on the situation. Before there was regulation in the oil industry which was controlled by the government the oild company of Petron.
PRIVATIZATION OF GOVERNMENT CONTROLLED CORPORATIONS
When Corazon C. Aquino became the president in 1986, and estimated ₱ 31 billion pesos of the national budget was allotted for government corporations. The support is given by virtue of equity, subsidies and loans. The government was forced to pay ₱ 130 billion pesos to repay for the debt of public corporations among big Monetary Institutions like the Philippine National Bank (PNB) and the Development Bank of the Philippines (DBP). This became a burden for the Aquino administration the unpaid loans due to the bad management of public corporations and the 399 assets that are unable to generate income. Because of this the Asset Privatization Fund was established in 1986 to privatize government corporations. By 1991 the 230 government assets had now been sold amounting to ₱ 14.3 billion. There were many more public corporations sold. This became a controversial issue for it suggested that ma major portion of the country’s wealth had been placed in the hands of a few people.
EFFECTS OF PRIVATIZATION OF PUBLIC CORPORATIONS IN THE LIVES OF FILIPINOS In the privatization of public corporations, government spending for establishing properties instead...