History and precursor agencies
National Economic Council
On November 15, 1935, the Commonwealth of the Philippines was inaugurated with Manuel L. Quezon as president, Sergio Osmeña as vice president, and a unicameral National Assembly as the Legislature. One of the first acts of Quezon administration was to call for a special session of Congress to enact certain laws needed by the government.[5] Under Commonwealth Act No. 2, enacted on December 23, 1935, an advisory body for economic concerns of the Philippines called the National Economic Council was tasked with advising the government on economic and financial matters, and formulate an economic program based on national independence.[6] The president was authorized to appoint its respective members with the consent of the Commission on Appointments of the National Assembly.[7][8]
The year following its creation, the National Economic Council was organized on February 14, 1936, composed of its inaugural members – the Secretary of Finance (who served as chairman), the Secretary of Agriculture and Commerce, the chairman of the Board of Directors of the Philippine National Bank, the President of the National Development Company, the President of the Manila Railroad Company, Mr. Joaquin M. Elizalde, Hon. R.J. Fernandez, Mr. Wenceslao Trinidad, Mr. Vicente Madrigal, Hon. Francisco Varona, Mr. Ramon Soriano, Hon. Vicente Singson Encarnacion, Hon. Rafael R. Alunan and Hon. Manuel Roxas.[7][9]
The council was organized into eight committees: (1) Committee on agriculture and natural resources, (2) industry, (3) foreign trade and tariff, (4) domestic trade, (5) transportation and communication, (6) taxation, (7) labor and immigration, and (8) banking and finance. The first act of the council was to survey and adopt plans for an effective utilization and conservation of our natural resources. The council also undertook a study, in cooperation with the National Development Company and Metropolitan Water District, on the potential of waterpower resources which eventually led to the enactment of Commonwealth Act No. 120,[10] creating the National Power Corporation.[7][8]
After World War II, the First Congress of the Philippines enacted Republic Act No. 51,[11] which allowed the President of the Philippines to reorganize the Executive Branch of Government as he sees fit within one year of its enactment. President Manuel Roxas, subsequently, amended the Administration Code of 1917 by issuing Executive Order No. 94, s. 1947. The Executive Order made the President of the Philippines the head of the National Economic Council.[7][12]
During his administration, President Carlos P. Garcia saw the need to create a new office in charge of the supervision of government corporations, which he called the National Development Authority. President Garcia asked Congress to enact such a law during his 1958 State of the Nation Address.[7][13] When Congress finally passed the law creating the National Development Authority, President Garcia disagreed with its limited powers, thus vetoing the bill sent to him as he mentioned in his 1959 State of the Nation Address[14]
In 1960, Congress passed a law, which changed the composition of the National Economic Council through Republic Act No. 2699[15] enacted on June 18, 1960. The law increased the council's membership by including the Secretary of Commerce and Industry and granting the minority party representation in the membership of the National Economic Council. The council would continue to perform its functions throughout the Third Republic until the declaration of Martial Law on September 23, 1972.[7]
National Economic Development Authority
The need for an office in charge of national development was revived during the administration of President Ferdinand E. Marcos. In his 1970 State of the Nation Address,[16] Marcos said the administrative machinery of government must be restructured and revitalized to meet the challenge of change and development. Marcos, thereafter, crafted a government reorganization plan which included a National Economic Development Authority and submitted it to Congress for their approval.[7]
In 1972, the National Economic Development Authority (without the conjunction “and”) was created as the government's central planning body. The first major thrust of the government-wide reorganization effected through Presidential Decree (P.D.) No. 1 issued on September 24, 1972,[17] otherwise known as the Integrated Reorganization Plan (IRP), was the provision for an integrated organizational complex for development planning and program implementation to correct the deficiencies of the system then existing. The IRP identified these deficiencies as: (1) the dispersal of planning functions among several economic planning bodies and ad hoc councils; (2) the lack of effective coordination among economic bodies; (3) the weak link between plan formulation and program execution; (4) the need to improve the capacity for sectoral and regional planning. The decree merged the National Economic Council and the Presidential Economic staff, created by Executive Order No. 8, s. 1966,[18] and renamed it to the National Economic Development Authority.[7] President Marcos subsequently issued Presidential Decree No. 1-A which delineated the composition of the National Economic Development Authority.[19]
National Economic and Development Authority
In 1973, the National Economic Development Authority was dissolved by virtue of Presidential Decree No. 107, s. 1973.[20] The Presidential Decree created the National Economic and Development Authority (now, with the conjunction “and”), which absorbed the National Economic Development Authority as mandated in the 1973 Constitution.[7]
On March 12, 1986, after the February 1986 revolution, Executive Order (EO) No. 5 was issued by President Corazon C. Aquino, directing a government-wide reorganization to promote economy, efficiency and effectiveness in the delivery of public services.
On July 22, 1987, EO 230 was issued reorganizing the NEDA. The implementation of this EO was completed on February 16, 1988, when NEDA commenced operations under its reorganized setup.
Governing law
The present form of the NEDA was organized by President Corazon C. Aquino on July 22, 1987, through EO 230. It defined the composition of the NEDA Board and the Secretariat and its powers and functions, the powers and functions of the Authority and its committees.[24]
On July 26, 1994, President Fidel V. Ramos signed Memorandum Order No. 222 which reactivated the NEDA Board Executive Committee and mandating that the decisions of the NEDA Board Executive Committee shall be final, executory and binding upon the NEDA Board.[25]
On July 27, 1992, President Ramos signed Republic Act No. 7640, which constituted the Legislative-Executive Development Advisory Committee (LEDAC). The LEDAC serves as a consultative and advisory body to the President as the head of the NEDA and gives advice on certain programs and policies, which are essential to the realization of the goals of national development.[26]
NEDA Board
The powers and functions of NEDA reside within the NEDA Board. The NEDA Board is the country's premier socioeconomic development planning and policy coordinating body, responsible for developing the social and economic policies, plans, and programs of the government. The Board is composed of the President as the Chair, the NEDA Secretary as the Vice-Chair, and the following as members: the Executive Secretary of the Office of the President, and the Secretaries of the Departments of Budget and Management, Finance, Energy, Human Settlements and Urban Development, Public Works and Highways, and Transportation. The Chairperson of the Mindanao Development Authority and Deputy Governor of the Bangko Sentral ng Pilipinas are also members of the NEDA Board.
Previous members of the Board included: the Secretaries of Health, Foreign Affairs, and Agrarian Reform (per Memorandum Order No. 164, dated March 21, 1988); the Secretary of Science and Technology (per Memorandum Order No. 235, dated May 19, 1989); and the Secretary of Transportation and Communications (per Memorandum Order No. 321, dated September 26, 1990). However, the Secretary of Energy (per Republic Act No. 7638, approved December 9, 1992) and the Governor of the Bangko Sentral ng Pilipinas (per Section 124 of Republic Act No. 7653, approved June 14, 1993) have since been included in the Board.
On April 22, 2006, the NEDA Board was reconstituted through Administrative Order (AO) No. 148, adding eight new members and replacing five original members.
Under EO No. 230, s. 1987 (Reorganizing NEDA), the President may revise the membership of the NEDA Board whenever necessary through an administrative or memorandum order for the Board to effectively perform its functions. Pursuant to said EO and to streamline the decision-making process in the bureaucracy, including the NEDA Board and the Investment Coordination Committee (ICC), the President issued Administrative Order (AO) 8, s. 2017 reconstituting the NEDA Board, reactivating and reorganizing the NEDA Board Executive Committee (ExCom), and reconstituting the ICC.
As stated in the said AO, the NEDA Board ExCom shall have the following powers and functions:
- Provide policy direction and resolve policy issues involving a number of agencies or a specific socioeconomic sector, without the need to convene the entire NEDA Board in accordance with existing laws, rules, and regulations;
- Approve development plans and programs consistent with the policies set by the President of the Philippines; and
- Confirm ICC-approved projects classified as extremely urgent by the ICC.
The Board is assisted by seven (7) Cabinet-level Inter-agency Committees:
- Development Budget Coordination Committee (DBCC)
- Committee on Infrastructure (InfraCom)
- Investment Coordination Committee (ICC)
- Social Development Committee (SDC)
- Committee on Tariff and Related Matters (CTRM)
- Regional Development Committee (RDCom)
- National Land Use Committee (NLUC)
Further, Section 34, Article VII of Republic Act 11054: Bangsamoro Organic Law, provides that the Chief Minister of the Bangsamoro Region shall be an Ex-Officio Member of the NEDA Board on matters concerning the Bangsamoro Region.
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