1978: Philippines
1. Politics and government.
For the first time since martial law
was proclaimed in September 1972, Filipinos went to the polls this April 7 to
elect a new legislature. On June 12, the 80th anniversary of the end of Spanish
rule, the Batasang Pambansa (National Assembly), an interim legislative body,
opened its session. The over-whelming majority of the assembly's members
belonged to the new government party, the Kilusang Bagong Lipunan (New Society
Movement). Only nine opposition candidates managed to get elected to the
200-member assembly.
Earlier in the year President
Ferdinand E. Marcos lifted curfew restrictions except in a few areas in
Mindanao and northern Luzon, where rebels still resisted government authority.
Other significant moves the martial law government has made to pave the way for
restoration of constitutional processes included the following: the release of
thousands of detainees arrested by the military on charges including illegal
assembly, unauthorized possession of firearms, and rebellion; grants of amnesty
to those who have left rebel groups; and the transfer of thousands of cases
from military tribunals to civilian courts.
With the National Assembly in
session, President Marcos ceased to issue decrees, although he retained his
emergency powers and can still rule by decree when the assembly is not in
session. It was expected that the parliamentary form of government will
function in full force at the end of the Batasang Pambansa's six-year term and
that a new election will be called. Meanwhile, Marcos reorganized his
government and changed the designation of his department secretaries to
ministers. He also created a new cabinet post, minister of ecology and human
settlements, and named his wife, Imelda Marcos, who concurrently holds the
position of governor of metropolitan Manila, as minister. As authorized by the
last referendum prior to the National Assembly elections, the president assumed
the role of prime minister during the transition period until he calls for a
new election under the parliamentary system of government.
2. Foreign relations.
Philippine foreign policy has been
geared primarily to promoting the country's economic development effort through
greater trade with all countries and diversification of the sources of both
long-term foreign loans and foreign investment in capital-intensive loan
enterprises. In accordance with this policy, the government has been sending
financial and investment missions to the European Economic Community members,
other European nations, the United States, and Japan—to entice foreign
investors and also to maximize foreign loan availability. The Philippines is
also beginning to obtain development funds from Arab countries.
A great deal of attention has been
given to relations with the other four members of the Association of Southeast
Asian Nations (ASEAN)—Indonesia, Malaysia, Singapore, and Thailand. Efforts at
further trade liberalization moved along smoothly, and by the end of 1978,
ASEAN was expected to have at least 1,000 commodities under preferential
trading arrangements.
Progress was made in updating the
military bases agreement between the Philippines and the United States.
Washington agreed to Manila's exercising sovereignty over bases now used by the
United States in the Philippines, through the appointment of Filipino
commanders and the flying of the Filipino flag over these bases. The ticklish
question of jurisdiction over crimes allegedly committed by American personnel,
both inside and outside the bases, was yet to be resolved, as was the amount of
rent the United States should pay to the Philippines for use of the bases.
3. The economy.
Despite poor prices for some of the
Philippines' major exports, the economy performed quite well in 1977. The gross
national product grew by 6.3 percent, compared with 6.1 percent (a revised
figure) in 1976. This overall growth was made possible by satisfactory gains in
such major production sectors as agriculture, which still accounts for nearly
30 percent of total GNP; manufacturing, which in the 1980's is expected to
catch up with agriculture as a contributor to GNP; and mining, which is still
steadily expanding in spite of price setbacks suffered by the major metals
through the first half of 1978.
One of the bright spots in the agricultural
sector has been the attainment of self-sufficiency in rice supply, making the
Philippines a net rice exporter instead of an importer, as it had been until a
few years ago. A major setback in the agricultural sector has been the
depressed price of sugar in the world market, relegating sugar to the second
position in the export list and making sugar growing and milling a distressed
industry.
Declines in world market prices of
several major exports—including copper and nickel, as well as sugar—combined
with rising production costs and the operation of the socialized pricing scheme
for prime commodities to adversely affect the profitability of many
enterprises. In 1977, five of the 50 biggest corporations in the Philippines
reported losses, and 15 showed decreased earnings. The largest corporations, in
petroleum and mining, suffered the heaviest declines in profits. On the other
hand, the public utility firms, which enjoy a monopoly in their franchise
areas, were among the most profitable and showed some of the highest returns on
sales.
The inflation rate was kept at 7
percent in 1977 and into 1978, compared with 10 percent in 1976. But wage and
tax increases contributed to raising the cost of doing business, and such costs
were generally being passed on to consumers.
4. Disasters.
In August the Philippines suffered
from a series of tropical depressions that brought torrential rains and floods.
About a score of fatalities resulted from landslides and rampaging waters, and
there was significant damage in infrastructure, like roads and bridges. Damage
to crops was not serious enough to set back projections of another bountiful
rice harvest this year. At least two volcanoes that had been dormant for some
time, Mayon in southern Luzon and Kanlaon on Negros island in the central
Philippines, erupted but caused little damage.
5. Insurgency.
The government claimed that hundreds
of additional Muslim rebels abandoned insurgency groups and were granted
amnesty. But raids and ambushes of military personnel continued in southern
Mindanao, and elements of the New People's Army, based in northern Luzon and
also lately in such Visayan (central Philippines) islands as Samar and Panay,
continued to defy the martial law government.
6. Area and population.
Area, 115,830 sq. mi. Pop. (est.
1978), 46.3 million. Manila (cap.; met. area), 7 million.
7. Government.
Republic under martial law, now in
transition to parliamentary system. Pres. and prime min., Ferdinand E. Marcos.
8. Finance.
Monetary unit, peso; 1 peso =
US$0.1375. Budget (1979), US$4.6 billion.
9. Trade (1977).
Imports, $4.5 billion; exports,
$3.15 billion.
10. Education.
Enrollment (1977-1978): elementary
schools, 7,850,000; secondary schools, 2,400,000; institutions of higher
learning, 850,000.
11. Armed forces (est. 1978).
Army, 63,000; navy, 20,000; air
force, 16,000; paramilitary forces, 65,000.
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