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Questions and Answers
What is a Government-Owned and Controlled Corporation (GOCC)?
What is a Government-Owned and Controlled Corporation (GOCC)?
- A corporation owned entirely by foreign investors
- A private corporation with government funding
- A corporation with majority government ownership (correct)
- A non-profit organization established for community service
What does Article XII, Section 16 of the 1987 Constitution state regarding GOCCs?
What does Article XII, Section 16 of the 1987 Constitution state regarding GOCCs?
- They may be created for the common good, subject to economic viability. (correct)
- They should operate without government intervention.
- They can be established solely for profit.
- They must be privately funded and operated.
As reported by the Commission on Audit in August 2010, how many GOCCs were operational in the Philippines?
As reported by the Commission on Audit in August 2010, how many GOCCs were operational in the Philippines?
- 604 (correct)
- 446
- 700
- 500
How are GOCCs grouped according to their nature and functions?
How are GOCCs grouped according to their nature and functions?
What type of entities fall under Cluster B of GOCCs?
What type of entities fall under Cluster B of GOCCs?
What is a characteristic of a Government-Owned and Controlled Corporation (GOCC)?
What is a characteristic of a Government-Owned and Controlled Corporation (GOCC)?
Which of the following is NOT a form of GOCC?
Which of the following is NOT a form of GOCC?
What role do GOCCs play in promoting economic development?
What role do GOCCs play in promoting economic development?
Which statement best describes the ownership of GOCCs?
Which statement best describes the ownership of GOCCs?
In which sector did GOCCs find their traditional roles?
In which sector did GOCCs find their traditional roles?
What change has been observed regarding the growth of GOCCs in recent decades?
What change has been observed regarding the growth of GOCCs in recent decades?
What was the average gross value added in manufacturing for GOCCs from 1975 to 1984?
What was the average gross value added in manufacturing for GOCCs from 1975 to 1984?
Which of the following is NOT a characteristic of a GOCC?
Which of the following is NOT a characteristic of a GOCC?
What is a primary concern that governments have regarding foreign-owned enterprises?
What is a primary concern that governments have regarding foreign-owned enterprises?
What might trigger government takeover of private industries?
What might trigger government takeover of private industries?
Which organization provides research and policy recommendations to legislators in the Philippine Senate?
Which organization provides research and policy recommendations to legislators in the Philippine Senate?
Under what circumstance might the government be involved in providing goods and services?
Under what circumstance might the government be involved in providing goods and services?
What is one reason a government might create bias in favor of a disadvantaged sector?
What is one reason a government might create bias in favor of a disadvantaged sector?
What overarching theme drives the government's interest in controlling strategic sectors of the economy?
What overarching theme drives the government's interest in controlling strategic sectors of the economy?
What critical infrastructure might the government take responsibility for developing?
What critical infrastructure might the government take responsibility for developing?
Which of the following is NOT a reason for government intervention in economic sectors?
Which of the following is NOT a reason for government intervention in economic sectors?
Which of the following best defines a public enterprise?
Which of the following best defines a public enterprise?
What term is officially used in the Philippines for public corporations?
What term is officially used in the Philippines for public corporations?
Which aspect is NOT typically associated with the public side of a public enterprise?
Which aspect is NOT typically associated with the public side of a public enterprise?
What is one of the key components on the enterprise side of public enterprises according to the content?
What is one of the key components on the enterprise side of public enterprises according to the content?
Which of the following is true about the definition of a corporation as per the Revised Corporation Code?
Which of the following is true about the definition of a corporation as per the Revised Corporation Code?
What differentiates a local enterprise from a public enterprise in the context provided?
What differentiates a local enterprise from a public enterprise in the context provided?
Which of the following is NOT a characteristic outlined for public enterprises?
Which of the following is NOT a characteristic outlined for public enterprises?
Which of the following best captures the concept of 'public accountability' in public enterprises?
Which of the following best captures the concept of 'public accountability' in public enterprises?
What is one of the main reasons for government intervention in markets?
What is one of the main reasons for government intervention in markets?
What defines a Government-owned and controlled corporation (GOCC)?
What defines a Government-owned and controlled corporation (GOCC)?
Which statement reflects a characteristic of natural monopolies?
Which statement reflects a characteristic of natural monopolies?
What idea is the government intervention based upon?
What idea is the government intervention based upon?
How did Executive Order No. 64 of 1993 expand the definition of GOCC?
How did Executive Order No. 64 of 1993 expand the definition of GOCC?
Study Notes
Public Enterprise Definition
- A commercial, financial, industrial, agricultural, or promotional undertaking, wholly or majority-owned by a public authority, selling goods/services, and with recordable balance sheets and profit/loss accounts (ICPE definition).
- Mendoza (1990) expands on the "public" (public interest, ownership, control, and accountability) and "enterprise" (organization, decision-making, goods/services provision, marketing, and investment/return) aspects.
Public Enterprises in the Philippines
- Officially termed "Government Owned or Controlled Corporations" (GOCCs) per the 1973 Constitution.
- Also referred to as government corporations, public corporations, state-owned enterprises, and parastatal corporations.
- Includes GOCCs and Local Government Unit (LGU)-owned enterprises (LEEs).
Corporations
- Artificial beings created by law, possessing the right of succession, and powers/attributes/properties authorized by law or incidental to their existence (Republic Act No. 11232).
GOCCs
- Agencies organized as stock or non-stock corporations, performing governmental or proprietary functions relating to public needs, and government-owned (wholly or >51% for stock corporations).
- Forms include Government Instrumentalities with Corporate Power (GICP), Government Corporate Entities (GCE), Government Financial Institutions (GFI), and GOCC subsidiaries.
GOCC Characteristics
- Government business enterprise, ownership, management, and control.
- Service-motivated, autonomous, publicly accountable, with separate legal status and continued existence.
GOCC Role in Economic Development and Social Equity
- Addressing market failures.
- Providing essential services.
- Redistributing wealth.
- Promoting inclusive growth.
GOCC Growth
- Rapid growth in number and size observed in developing countries over recent decades.
- Initially in utilities (electricity, gas, water), transport, and communication, now also in manufacturing, construction, finance, services, natural resources, and agriculture.
GOCC Control
- Government seeks national control over "strategic sectors" (defense, etc.) and foreign-owned enterprises.
- Other reasons include private industry bankruptcy and ideological motivations.
Senate Economic Planning Office (SEPO) Role
- Provides research, analysis, and policy recommendations to legislators.
- Justifications for GOCCs include: addressing unmet private sector needs (essential services, infrastructure), supporting disadvantaged sectors, spurring strategic development, and controlling natural monopolies.
Additional Thoughts on GOCCs
- Acknowledges market failures justifying government intervention.
- Utilizes the corporate structure as an efficient means of managing government assets.
Legal and Policy Framework
- Presidential Decree No. 2029 and Executive Order No. 64 (1993) define GOCCs, focusing on government ownership (directly or indirectly) of a majority of capital stock.
- The 1987 Constitution allows GOCC creation for the common good, subject to economic viability.
- As of August 2010, the Commission on Audit (COA) reported 604 GOCCs (446 operational water districts), categorized into three clusters based on functions (financial, utilities/industrial, and social/cultural).
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Description
This quiz explores the concept of public enterprise, focusing on its definitions, characteristics, and the specific framework of government-owned or controlled corporations in the Philippines. Delve into the roles and responsibilities of these entities as described in the 1973 Constitution.
