The Nationalization and Liberalization of the Retail Trade Industry in the Philippines

Abstract

The Philippine policy experience in the retail trade sector is distinct. Two radical policy shifts have occurred in the industry and the policy change took a circular path. In 1954, the Third Congress passed Republic Act (R.A.) 1180, the Retail Trade Nationalization Act, and in 2000, the Eleventh Congress enacted R.A. 8762, the Retail Trade Liberalization Act. The former was a change from an open to a protectionist policy, while the latter was a change from a protectionist to an open policy. Typically, any move to change an existing policy is always contentious and difficult. Those benefiting from the status quo would naturally take action to preserve their advantage; thus, policy change entails winners and losers. In examining the politics of policy change in the retail trade, this paper will utilize four factors — the context, the stakeholders and the cost benefit equation, policy rationalization, and presidential intervention and concessions — to systematically outline and explain the policy shifts that occurred.