NAME: Angelica A.

Gonzales SUBJECT: SSE200 CEP

YEAR/COURSE: BSE- Social Studies 3 DATE: September 24 2020

I. INTRODUCTION
An economic system is a means by which societies or governments organize and

distribute available resources, services, and goods across a geographic region or

country. Economic systems regulate the factors of production, including land, capital,

labor, and physical resources. An economic system encompasses many institutions,

agencies, entities, decision-making processes, and patterns of consumption that

comprise the economic structure of a given community. Alternatively, an economic

system is the set of principles by which problems of economics are addressed, such

as the economic problem of scarcity through allocation of finite productive resources.

STATEMENT OF THE PROBLEM

1. What are the importance of Economic System in a country?

2. What are your thoughts on the democratization of economies in Southeast Asia in

the context based on the readings of this Module?

3. “How can the economies of emerging Asia respond to COVID-19?”

THEORETICAL FRAMEWORK

Laissez-faire economics is a theory that restricts government intervention in the

economy. It holds that the economy is strongest when all the government does is protect

individuals' rights. Which means let the market do its own thing. If left alone, the laws of

supply and demand will efficiently direct the production of goods and services. Supply

includes natural resources, capital, and labor. Demand includes purchases by consumers,

businesses, and the government.

 The only role of government in a laissez-faire economy is to prevent any coercion

against individuals. Theft, fraud, and monopolies prevent rational market forces from

operating.

II. PRESENTATION AND CRITICAL ANALYSIS OF DATA

a. REALITY

Singapore's economy is characterized by excellent finances and a high

degree of openness, with the country being highly dependent on international

trade. However, GDP only grew 0.7% in 2019. According to the updated IMF

forecasts from 14th April 2020, due to the outbreak of the COVID-19, GDP growth

is expected to fall to -3.5% in 2020 and pick up to 3% in 2021, subject to the post-

pandemic global economic recovery. Singapore's economy is highly industrialized.

The industrial sector represents 25.2% of GDP and employs 16.5% of the

population. Electronics and petrochemicals dominate the industry, which also

includes biomedical sciences, logistics, and transport engineering (Guide Me

Singapore).

Indonesia is seen as a future economic giant The country hasn't suffered

negative GDP growth since 1998, and the economic growth has stabilized around

the solid 5% range over the past years; it decreased from 5.2% to 5.0% in 2019 .

The key drivers of the economy are private domestic consumption - stimulated by

its huge market with a growing middle class of nearly 70 million people (55% of

GDP), while the major issues are the ongoing trade tensions between China and

the US, the country's two biggest trading partners, and the prolonged depreciation

of the Rupiah. Indonesia is a market economy with abundant natural resources, a

young, large and burgeoning population (266.9 million), a labor force of 133.4

million people, and political stability. Industry contributes approximately to 39.7%

 of GDP and employs 21.9% of the labor force. The industrial sector includes

manufacturing of textiles, cement, chemical fertilizers, electronic products, rubber

tires, clothing and shoes (most of these are for the American market).

The Philippines' economy is considered as one of the most dynamic

economies in East Asia and the Pacific. In 2019, GDP growth rate decreased but

remained high, reaching 5.9% according to IMF estimates. This slowdown is

mainly due to a deceleration in investment growth and a weak external

environment. According to the updated IMF forecasts from 14th April 2020, due to

the outbreak of the COVID-19, GDP growth is expected to fall to 0.6% in 2020 and

pick up to 7.6% in 2021, subject to the post-pandemic global economic recovery.

Key economic drivers include solid fundamentals, a competitive workforce, a

stable job market, steady remittances, and investment in the construction sector

(World Bank)

b. REFLECTION

There are many types of economies around the world. Each has its own

distinguishing characteristics, although they all share some basic features. Each

economy functions based on a unique set of conditions and assumptions. Each

country has their own Economic System to govern organized and distribute some

of their resources equally.

c. RESPONSE

Each country has their own economic system it is importance to a country

that they have an economic system to govern and organized their resources

equally because Economic systems are the means by which countries and

governments distribute resources and trade goods and services. They are used to

control the five factors of production, including: labor, capital, entrepreneurs,

physical resources and information resources.

 For me democratizing economies in Southeast Asian countries helps in

eradication of various programmes and policies that are not beneficial for the

people of the country. Though, economic development in democracies is not as

high as dictatorship, however, it does help in reduction of economic disparities in

a country. Also, there are various factors that affect the economic growth of the

country like population. Democracy in southeast Asian countries remains the

aspiration for members of civil societies and even if the superficial forms, may be

utilized by ruling elites, often to provide an appearance of modernity or a

resemblance of legitimacy. Civil society is the product of economic development

the more complex and differentiated the economic structure the greater the

demand of engineers, scientist, corporate lawyer and for skilled worker.

McKinsey’s perspective on how to navigate through the crisis is based on

five horizons: resolve, resilience, return, reimagine, and reform. COVID-19 is no

exception. Emerging Asia is particularly vulnerable to both the public-health

challenges of the pandemic and the economic consequences of failing to contain

it. The region’s countries have large populations, limited hospital capacity, and

acute shortages of medical supplies and equipment.

The increasing policy convergence and a more united regional response

was facilitated by discussions in the context of ASEAN and its response

mechanisms that had already been in place. ASEAN high-level officials met as

early as in January to prepare a region-wide response to the rapid spread of Covid-

19. According to the ASEAN post-2015 health sector agenda, there are at least

seven mechanisms designed to support regional preparedness and response by

ASEAN Plus Three. Since the first report from China on clusters of unexplained

pneumonia on 3 January, the Senior Officials Meeting for Health Development

(SOMHD) mobilised these different mechanisms to respond to the pandemic. The

 ASEAN Emergency Operations Centre Network for public health emergencies

(ASEAN EOC Network) has been sharing daily situational updates and providing

information on prevention, detection and response measures to the SOMHD of

ASEAN (Plus Three Countries), as well as the Contact Points of the ASEAN EOC

Network and the ASEAN Plus Three Field Epidemiology Training Network

(ASEAN+3 FETN). The ASEAN BioDioaspora Regional Virtual Centre (ABVC) for

big data analytics and visualization recently produced reports on Risk Assessment

for International Dissemination of Covid-19 across ASEAN Region,

complementing national risk assessments.

III. SUMMARY, CONCLUSION AND RECCOMMENDATION

Economic systems are grouped into traditional, command, market, and

mixed systems. Traditional systems focus on the basics of goods, services,

and work, and they are influenced by traditions and beliefs. A centralized

authority influences command systems, while a market system is under the

control of forces of demand and supply. Lastly, mixed economies are a

combination of command and market systems. Democratizing economies in

Southeast Asian countries helps in eradication of various programs and

policies that are not beneficial for the people of the country. Though, economic

development in democracies is not as high as dictatorship, however, it does

help in reduction of economic disparities in a country. Also, there are various

factors that affect the economic growth of the country like population. ASEAN

countries have also discussed capacity needs and gaps in national responses

that could possibly be supported through cooperation at national or regional

levels with Development and Dialogue Partners. Due to the pandemic, the 36th

ASEAN Summit planned to take place in Viet Nam in April was postponed until

end-June. Instead, ASEAN organized a Special Foreign Ministers’ Meeting

 among ASEAN and China on Covid-19 on 20 February, where a joint ASEAN-

China emergency response was presented but no concrete commitments were

taken. Furthermore, an ASEAN-EU Ministerial Video Conference took place on

20 March to discuss Covid-19, where both parties agreed to mitigate social and

economic impacts, keep supply chains open and advance relevant scientific

researches. In combating or responding to the Covid 19 Pandemic I

recommend the McKinsey’s perspective on how to navigate through the crisis

is based on five horizons which is the resolve, resilience, return, reimagine,

and reform.

REFERENCES

Introduction to economic systems | Boundless business. (n.d.). Lumen Learning – Simple

Book Production. https://courses.lumenlearning.com/boundless-

business/chapter/introduction-to-economic-systems/

How capitalism works compared to socialism and communism. (n.d.). The Balance.
https://www.thebalance.com/capitalism-characteristics-examples-pros-cons-3305588

Economic_System[1].pdf. (n.d.). Google Docs.

https://drive.google.com/file/d/1pNwkJdgZg2187A0mSK8bbS_SXY7hpmsb/view

Corporate Finance Institute. (2019, December 14). Economic system - Overview, types,
and examples.
https://corporatefinanceinstitute.com/resources/knowledge/economics/economic-system/

What's wrong with laissez-faire economics? (n.d.). The Balance.

https://www.thebalance.com/laissez-faire-definition-4159781

The economic context of the Philippines. (n.d.). Nordea Trade Portal.

https://www.nordeatrade.com/fi/explore-new-market/philippines/economical-
context?vider_sticky=oui

COVID-19 crisis response in ASEAN member states. (n.d.). OECD.

https://www.oecd.org/coronavirus/policy-responses/covid-19-crisis-response-in-asean-
member-states-02f828a2/#section-d1e844