National Economic and Development Authority

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 the President Manuel L. Quezon was to call for a special session of Congress to enact certain laws needed by the government.[3] 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.[4] The president was authorized to appoint its respective members with the consent of the Commission on Appointments of the National Assembly.[5][6]

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.[5][7]

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 water power resources which eventually led to the enactment of Commonwealth Act No. 120[8], creating the National Power Corporation. [5][6]

After World War II, the First Congress of the Philippines enacted Republic Act No. 51[9], 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.[5][10]

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.[5][11]. 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[12]

In 1960, Congress passed a law, which changed the composition of the National Economic Council through Republic Act No. 2699[13] 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.[5]

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[14], 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.[5]

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[15], 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[16], and renamed it to the National Economic Development Authority.[5] President Marcos subsequently issued Presidential Decree No. 1-A which delineated the composition of the National Economic Development Authority.[17]

In 1973, the National Economic Development Authority was dissolved by virtue of Presidential Decree No. 107, s. 1973.[18] 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.[5]

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 Executive Order No. 230 was issued reorganizing the NEDA. Implementation of this EO was completed on February 16, 1988 when the NEDA commenced operations under its reorganized setup.