Video #13 - Philippines: State of the Economy
Monday, January 09, 2006BACKGROUND INFORMATION
Archeological evidence shows that the native Negritos mixed with immigrant Malays and Indonesians to create the racial mixtures which eventually emerged as the Filipino people. Long before the Spaniards colonized the area in the 16th Century; commerce brought the Filipinos in contact with Hindus from India, Chinese and Arabs. Spain ruled the country (through Mexico) from 1565-1828. As a result, the "Manila-Acapulco" trade was established, further enriching the nation's culture. Mexican officials, missionaries, soldiers and traders brought with them plants, animals, industries, songs, dances, customs and traditions. The United States ruled the Philippines for the next four decades, 1898-1935-bringing an American heritage of democracy, popular education, the English language and protestant Christianity. With different languages and traditions, today's Filipinos number 77 million. The existence of many islands meant that for many years, there was no national government, Filipinos lived in independent village-states called barangays. Their rulers were called datus or rahas.
The Spanish conquered and colonized the Philippines on March 16, 1521 except for Mindanao and Sulu--inhabited by Filipino Muslims (Moros)--and the interior regions occupied by Pagan tribes. Spain's defeat in the Spanish-American War led to American colonization of the islands in 1901. The U.S. Congress enacted the Tydings-MacDuffie Law of 1934 which provided for granting of Philippine independence on July 4, 1946. This measure provided for ten years of preparation. The Philippine Constitution was drafted in 1935 and the commonwealth of the Philippines was inaugurated on November 15, 1935. However, World War II brought the Japanese Occupation of the islands from 1942 to 1944. Finally, the Third Philippine Republic was inaugurated, as scheduled, on July 4, 1946. The economy of the Philippines is based on industries such as textiles, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining and fishing. Nevertheless, many of those who have governed the archipelago over the years have made personal profit their top economic priority. As a result, the present government run by President Gloria Macapagal-Arroyo has had to overcome a legacy of corruption, terrorism and lax management. She took office in January, 2001 after President Joseph Estrada was ousted in a corruption scandal. The former Vice President, with a PhD in economics and a squeaky-clean reputation, promised to repair chronic budget deficits, relaunch government privatization and infrastructure projects, and bring back fleeing foreign investment. It has been a tall order.
Finance Secretary Jose Isidro Camacho, in a recent interview with BusinessWeek's Asia Correspondent, said he is encouraged by the methodical strides being made in the administration he serves-despite an economic and political situation has been described as "tumultuous." Still, many Filipinos say they lack faith in the administration. That is blamed on the slow pace of change, with the same families who were close to the Marcos regime still controlling the country's wealth and political power.
One of President Arroyo's projects is to privatize the electricity industry to break down the prices through competition. Although her administration recently concluded a ceasefire with the rebel Moro Islamic Liberation Front after decades of war, a recent wave of terrorist bombings has marred her success. Experts opine that while the U.S. and other major industrial powers may be able to overcome terrorist attacks, it may be much more difficult for smaller Asian countries, such as the Philippines.
The President has had to deal with security rather than economic improvements at a time when unemployment in her nation stands at 11.2% (a rate that has not come down during her administration) and while 44% of Filipinos still live on less than $2 a day. She has also been unable to reverse a five-year reduction in foreign direct investment. Although the economy is expected to grow by 4% this year due to rising electronics exports, more than 17% of loans by Filipino banks were listed as non-performing...up from 15% when President Arroyo took office. Another issue is widespread tax evasion. But in a hopeful sign, tax collections for September reportedly showed a marked improvement.
SOURCES
Adriano, Fermin D., "Crippling the economy." The Manila Times, October 18, 2002
www.manilatimes.net "Arroyo's Reforms." Arab News Editorial, July 24, 2002. Balfour, Frederik, "The Philippines: The Price of Terror." BusinessWeek online, November 4, 2002 Reyes-Cantos, Jessica, "Battered but not Beaten." Instituto del Tercer Mundo - Control Ciudadano, 2001. Zaide, Gregorio F. and Sonia M., Philippine History and Government. (Used by Mrs. Monica D. Edraline, information officer, Embassy of the Philippines for ASNIC) www.elibrary.com
O'Connell, Patricia Ed., "Steering the Philippines through a Storm." BusinessWeek online, October 30, 2002.
LESSON PLAN
GRADE LEVEL/SUBJECT:
10-12 grade Economics, International Relations, World History, Geography, International Baccalaureate Programs (IB), Current Events.
PURPOSE:
To present activities to be used in a variety of classroom situations in order to enhance student understanding of the Asian economy and its significance globally.
OBJECTIVES:
Students will be able to:
1. Locate The Philippines on a map of Asia.
2. Describe the history of The Philippines.
3. Compare and contrast the economy of The Philippines with that of other Asian economies today.
4. Evaluate American involvement in The Philippines throughout its history.
MATERIALS:
1. Background information provided.
2. Resources on The Philippines available at your school's Media Center and the Public Library System in your area.
3. Background information available through Internet search engines.
ACTIVITIES:
May be assigned as group activities or as individual tasks. They may also be designed as preparation for related presentations either by individuals or groups.
1. Illustrate The Philippines on a map of Asia.
2. Create a time-line of the most important events in Filipino history.
3. Use graphs and charts to depict the state of The Philippines' economy.
4. Write an editorial making recommendations to improve the economy of The Philippines.
5. Write a position paper on President Arroyo's administration. Support your opinions with factual information.
6. Organize a class debate for or against U.S. intervention to help The Philippines fight terrorism.
EVALUATION:
Individual assignments should be graded by the teacher using established criteria.
Group activities, presentations and projects may be evaluated by teachers and students using the following criteria and scale: Content 1 = Superior (A) Creativity 2 = Excellent (B) Clarity 3 = Good (C) 4 = Fair (D) 5 = Poor (F)
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