Ferdinand Edralin Marcos

Ferdinand Edralin Marcos (1965-1986)

CONDITION OF THE PHILIPPINES
There was a decrease of freedom and democracy during the second term of Ferdinand Marcos.
Because of the developments (economically, industrially, and infrastructures) Marcos accomplished, there was a massive increase in tourism rates.
The Marcoses established good relations with world leaders, therefore bringing the Philippines’ image to higher grounds. Foreign relations brought foreign investments in and made the economy boom. During this time, the ratio of the peso to a dollar is 1:1. However, the economy took a downturn during his second term and the prices of the market increased.
Corruption allegations against the government and people’s oppositions to the laws and “dictatorship” of Marcos brought about uprisings and reformation movements to oust the president (PP1)
There was an increase in job opportunities but it declined eventually. In relation to this, huge economic accelerations from OFW remittances were occurring. But declined after the Aquino’s killing controversy.
The inflation rate was high and critics claim it was because of overspending the 1969 budget.

PRIMARY PROBLEMS
Unemployment
Destabilized Economy
Rampant Corruption in the Government and abuse of authority and power
Increased crime rates (before martial law) due to poverty

PROMISES DURING THE ELECTIONS AND INAUGURATION
• Reformation of International and Domestic Policies (Political, Social, Economical, and Legal Systems)
• Renovation of Roads, Buildings, Public Works and other Infrastructures
• Fix the judiciary systems of the Philippines
• Diminish, prevent, and attack the problem of the government regarding corruption
• Make the Philippines rise to greatness once more
“This nation can be great again. This I have said over and over. It is my articles of faith, and Divine Providence has willed that you and I can now translate this faith into deeds.”
• Economic Development and Good Government

LAWS AND PROGRAMS
Martial Law
Martial Law was declared by Marcos to suppress the increasing civil discord and the threats of communist conquest. The declaration was initially granted by some sectors bit it eventually became unpopular to the people and the masses because of the human rights abuses by the military.
Decentralization Act
Investment Incentives Act of 1967

BENEFICIARIES OF THE LAWS AND PROGRAMS
During his first term Marcos focused on developing infrastructure, the development of the North Luzon Expressway benefitted the Filipino common man. Marcos also had livelihood programs for LGU’s to help make their communities more economically developed. The implementation of Martial Law turned to out to be beneficiary to the Philippines during the first year of implementation to till the 80’s the countries GNP increased from P55 billion to P193 billion, this however came at the expense of the Filipinos who lost their sense of democracy during Martial Law.
HOLES AND SHORTCOMINGS OF THE LAWS The policies implemented were not structured and formulated to resolve the problems on poverty.
In his earlier term, good governance was present. However, upon entry of his wife, Imelda, corruption started to surface.
An increase in the population of people included below the poverty line.

ISSUES AND CONTROVERSIES
Marcos Ill-gotten wealth
Declaration of Martial Law
Assassination of Benigno Aquino

SUMMARY OF GOVERNANCE
During his first term Marcos focused on developing the country’s infrastructure, economy and the agriculture industry. Marcos helped the Philippines reach economic prosperity during the first few years of his terms, also putting up a lot of schools; he put up more schools than all of the previous presidents combined.
Constant threats to the Marcos administration led him to the implementation of Martial Law. The whole country was put under the military’s control. It was well received during the first year as crime rates all over the Philippines dropped and given the social turmoil in the Philippines at the time it was deemed necessary. But after nine years, the military took more excessive actions. Military units were in control of domestic air flights, all incoming calls in the Philippines were not allowed and even stricter curfews were implemented.
The downfall of his administration came when Benigno Aquino was assassinated this fueled even more activist to go into rallies to fight against his administration. In 1986 Marcos held a snap election in order to stop rumors that his government was being overthrown. Ultimately he was driven out of the country with People Power.
During the early years of Martial Law, the Philippine economy grew a significant amount, spurred by heavy borrowing from transnational banking companies and government-to-government loans. By 1980, however, the heavy burden of foreign debt servicing took its toll in the economy, and mismanagement of important industries due to crony capitalism led the economy to a downturn. The assassination of popular opposition leader Benigno Aquino in 1983 led to the pull-out of foreign capital from the country, resulting in negative GDP growth in 1983 and 1984.
The Philippine economy suffered a great decline after the Aquino assassination in August 1983. The political troubles hindered the entry of foreign investments, and foreign banks stopped granting loans to the Philippine government. In an attempt to launch a national economic recovery program, Marcos negotiated with foreign creditors including the International Bank for Reconstruction and Development, World Bank, and the International Monetary Fund (IMF), for a restructuring of the country's foreign debts – to give the Philippines more time to pay the loans. Marcos ordered a cut in government expenditures and used a portion of the savings to finance the Sariling Sikap (Self-Reliance), a livelihood program he established in 1984.
However, the economy experienced negative economic growth from the beginning of 1984 and continued to decline despite the government's recovery efforts. The failure of the recovery program was caused by civil unrest, rampant graft and corruption within the government, and Marcos' lack of credibility. Marcos himself diverted large sums of government money to his party's campaign funds. The unemployment rate ballooned from 6.30% in 1972 to 27.65% in 1985.[65]
Between 1972 and 1980, the average monthly income of wage workers had fallen by 20%. By 1981, the wealthiest 10% of the population was receiving twice as much income as the bottom 60%.
ECONOMIC CHANGES UNDER MARCOS

To hasten the economic development, President Marcos implemented a number of economic programs. These programs helped the country to enjoy the period of economic growth I the mid-1970's up to the early 1980's.

The farmers were given technical and financial aid and other incentives such as "price support". With the incentives given to the farmers, the country's agricultural sector grew. As a result, the Philippines became self-sufficient in rice in 1976 and even became a rice exporter.

To help finance a number of economic development projects such as soil exploration, the establishment of geothermal power plants, the Bataan Nuclear Plant, hydro-electric dams, the construction of more roads, bridges, irrigation systems and other expensive infrastructure projects, the government engaged in foreign borrowings.

Foreign capital was invited to invest in certain industrial projects. They were offered incentives including tax exemption privileges and the privilege of bringing out their profits in foreign currencies. One of the most important economic programs in the 1980's was the Kilusang Kabuhayan at Kaunlaran (KKK). This program was started in September 1981. Its aim was to promote the economic development of the barangays by encouraging the barangay residents to engage in their own livelihood projects.

The government's efforts resulted in the increase of the nation's economic growth rate to an average of six percent to seven percent from 1970 to 1980. The rate was only less than 5 percent in the previous decade. The Gross National Product of the country (GNP) rose from P55 billion in 1972 to P193 billion in 1980.

Another major contributor to the economic growth of the country was the tourism industry. The number of tourists visiting the Philippine rose to one million by 1980 from less than 200,000 in previous years. The country earned at $500 million a year from tourism. A big portion of the tourist group was composed of Filipino balikbayans under the Ministry of Tourism's Balikbayan Program which was launched in 1973.

Another major source of economic growth of the country was the remittances of overseas Filipino workers. Thousands of Filipino workers found employment in the Middle East and in Singapore and Hongkong. These overseas Filipino workers not only helped ease the country's unemployment problem but also earned much-needed foreign exchange for the Philippines.