What is NEDA: National Economic and Development Authority (Background and Funtions)

By JDC Tuesday, April 11, 2023

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The National Economic and Development Authority or NEDA, stands at the forefront of the Philippines' pursuit of economic growth and sustainable development.

Established in 1972, NEDA has played a pivotal role in shaping the nation's policies and strategies to address various socioeconomic challenges.

NEDA Central Office

In this article, we will explore the functions, objectives, and impact of NEDA in the Philippines.

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NEDA Historical Background

NEDA's origins can be traced back to the country's economic planning efforts during the 1960s. Recognizing the need for a centralized body to coordinate development planning, the Philippine government enacted Presidential Decree No. 107 on January 24, 1973, formally creating NEDA. Since then, NEDA has evolved to adapt to the ever-changing landscape of economic and social development.

Child Agencies

• Philippine Statistics Authority (PSA)
• Philippine Statistical Research and Training Institute (PSRTI)
• Philippine Institute for Development Studies (PIDS)
• Public-Private Partnership Center (PPPC)
• Tariff Commission
• Philippine National Volunteer Service Coordinating Agency (PNVSCA)
• Commission on Population and Development (CPD)

NEDA Key Functions

a. Policy Formulation and Coordination:

• NEDA serves as the chief planning and policy-formulating body of the Philippine government.
• It coordinates with various government agencies to develop and implement plans and programs for sustainable development.

b. Socioeconomic Planning:

• NEDA conducts comprehensive socioeconomic studies and analyses to guide policy decisions. It assesses the impact of policies and projects on various sectors of society, ensuring that development benefits are equitable and sustainable.

c. Investment Coordination:

• NEDA evaluates proposed public and private sector projects to determine their feasibility and alignment with national development goals. It provides recommendations and guidelines for project implementation.

d. Research and Data Analysis:

• NEDA collects and analyzes economic and social data to monitor progress and identify areas needing intervention. These insights inform policy decisions and development strategies.

e. Regional Development:

• NEDA promotes regional development by ensuring that resources are allocated efficiently across different regions of the Philippines, reducing disparities in development and improving the quality of life for all Filipinos.

Objectives of NEDA

NEDA's core objectives are:

a. Sustainable Development:

• NEDA aims to foster balanced and sustainable development that addresses the needs of the present without compromising the ability of future generations to meet their own needs.

b. Poverty Reduction:

• The agency is committed to reducing poverty and promoting inclusive growth, targeting vulnerable sectors and regions to ensure that development benefits are distributed equitably.

c. Economic Stability:

• NEDA plays a crucial role in maintaining macroeconomic stability, which is essential for attracting investments, creating jobs, and sustaining economic growth.

d. Infrastructure Development:

• NEDA works to improve infrastructure development, enhancing the country's connectivity and competitiveness on the global stage.

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.

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.

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.

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.

Other Offices

• The Legislative-Executive Development Advisory Council (LEDAC) Secretariat.
• The Legislative Liaison Office (LLO)

NEDA Achievements

NEDA's impact on the Philippines can be seen through several achievements:

a. Sustainable Economic Growth:

• NEDA's long-term planning and policy coordination have contributed to the country's sustained economic growth, making it one of the fastest-growing economies in Asia.

b. Poverty Reduction:

• Through its inclusive policies and programs, NEDA has made significant strides in reducing poverty rates and improving the standard of living for millions of Filipinos.

c. Infrastructure Development:

• NEDA's rigorous project evaluation and coordination have led to the construction of critical infrastructure, improving transportation, communication, and utilities nationwide.

d. Environmental Conservation:

• NEDA has integrated environmental sustainability into its development plans, promoting responsible resource management and conservation.

ATTRACTIONS TO SEE IN MANILA 

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The National Economic and Development Authority (NEDA) plays a pivotal role in guiding the Philippines towards sustainable development. Its multifaceted functions, comprehensive research, and policy coordination have contributed to the country's economic growth and improved quality of life for its citizens.

As the Philippines faces new challenges in the 21st century, NEDA continues to be a vital institution driving progress and prosperity for the nation.

ACTIVITIES AND TOURS IN MANILA

Understanding the Government Agencies in the Philippines

• Philippine Statistics Authority (PSA)
• National Economic and Development Authority (NEDA)
• Philippine Overseas Employment Administration (POEA)
• Climate Change Commission (CCC)
• National Commission on Indigenous Peoples (NCIP)
• Philippine Commission on Women (PCW)
• National Privacy Commission (NPC)
• Commission on Higher Education (CHED)
• National Anti-Poverty Commission (NAPC)
• National Commission for Culture and the Arts (NCCA)
• Energy Regulatory Commission (ERC)
• Metropolitan Manila Development Authority (MMDA)
• National Youth Commission (NYC)
• Philippine Charity Sweepstakes Office (PCSO)
• Technical Education and Skills Development Authority (TESDA)
• National Disaster Risk Reduction and Management Council (NDRRMC)

To see the full list, visit The Philippine Government and Its Departments and Agencies