PAf 201

Political Economy of Public Affairs

Mid-term Examinations

1. A popular franchiser has adopted the following strategic business model

“We must meet all the needs of all customers”

Comment.

2. President Rodrigo Duterte signed on August 3 RA 10931 providing free education for over a
million students in public tertiary and vocational schools nationwide.

Senior Deputy Executive Secretary Menardo Guevarra said Duterte found that the long-term
benefits of the law outweigh any short-term budget challenges. "Free tertiary education in
state universities and colleges is a very strong pillar of the President's social development
policy," he said. Diokno added only middle-class and upper-class students would benefit
from the scheme.
"Only 12 percent of the poor get to the state universities, 12 percent, and when you say free
tuition, you are actually subsidizing the rich," he said. However, opposition lawmakers said
in an August 3 statement the free tuition law would cost only around ₱15 billion (CNN
Philippines).

Other studies show that higher education is seen by many as a ladder out of poverty for the
poor and an instrument to reduce inequality. Meanwhile, there is broad agreement that to
maintain a competitive edge in a rapidly transforming knowledge economy, countries need
to invest more in higher education. In the area of doctoral production, China increased from
18,000 PhDs in 1978 to 50,000 in 2008 – with 40% in science, technology, engineering and
mathematics – which threatens to distort the global high-skills labor market.

Who benefits from this policy? What are the tradeoffs? Discuss extensively the merits and
drawbacks of this educational policy. You may use other studies to support your arguments.

3.