The Politics of the Retail Trade Liberalization Law of the Philippines : An Assessment of the Policymaking for R.A. 8762

The proposal to amend R.A. 1180, otherwise known as the Retail Trade Nationalization Act of 1954, was contentious, as the shift from the protectionist to the liberalist mode was considered a drastic policy change. The proponents questioned the effectiveness as well as soundness of the law. They argued that the policy was outmoded, was not in tune with global capitalist development, and resulted in an inefficient industry. In the process, the stakeholders were drawn to two groups — those for liberalizing the retail trade and those for maintaining protectionism in the industry. The contradicting positions led to a passionate debate among the stakeholders and the policy actors. To understand the politics of policy change, several essential factors need to be examined: the context, the stakeholders as well as the cost and benefits equation, the rationale, the political resources as well as the concessions, and public perception. All those factors worked together to bring about the enactment of R.A. 8762 and the repeal of R.A. 1180. The experience illustrates the complexities of radical policy shift as well as the intricacies of policymaking in the Philippines