Dave Michael C.

Marimon BMLS 2H
December 6, 2013 HEC = Assignment


ECONOMIC ACHIEVEMENTS OF THE PRESIDENTS
OF THE PHILIPPINES (ROXAS ARROYO)

1.) PRESIDENT MANUEL ACUA ROXAS
No sooner had the fanfare of the independence festivities ended that the
government and the people quickly put all hands to work in the tasks of rescuing the
country from its dire economic straits. Reputed to be the most bombed and destroyed
country in the world, the Philippines was in a sorry mess. Only Stalingrad and Warsaw,
for instance, could compare with Manila in point of destruction. All over the country
more than a million people were unaccounted for. The war casualties as such could
very well reach the two million mark. Conservative estimates had it that
the Philippines had lost about two thirds of her material wealth.
The country was facing near bankruptcy. There was no national economy, no
export trade. Indeed, production for exports had not been restored. On the other hand,
imports were to reach the amount of three million dollars. There was need of immediate
aid from the United Nations Relief and Rehabilitation Administration. Something along
this line was obtained. Again, loans for the United States, as well as some increase in
the national revenues, were to help the new Republic.
President Roxas, with bold steps, met the situation with the same confidence he
exuded in his inaugural address, when he said: "The system of free but guided
enterprise is our system". Among the main remedies proposed was the establishment of
the Philippine Rehabilitation Finance Corporation. This entity would be responsible for
the construction of twelve thousand houses and for the grant of easy-term loans in the
amount of 177,000,000 pesos. Another proposal was the creation of the Central Bank of
the Philippines to help stabilize the Philippine dollar reserves and coordinate and the
nations banking activities gearing them to the economic progress.
Concentrating on the sugar industry, President Roxas would exert such efforts as
to succeed in increasing production from 13,000 tons at the time of the Philippine
liberation to an all-high of one million tons.


2.) PRESIDENT ELPIDIO RIVERA QUIRINO

Upon assuming the reins of government, Quirino announced two main objectives
of his administration: first, the economic reconstruction of the nation and second, the
restoration of the faith and confidence of the people in the government.
In connection to the first agenda, he created the President's Action Committee on
Social Amelioration or PACSA to mitigate the sufferings of indigent families, the Labor
Management Advisory Board to advise him on labor matters, the Agricultural Credit
Cooperatives Financing Administration or ACCFA to help the farmers market their crops
and save them from loan sharks, and the Rural Banks of the Philippines to facilitate
credit utilities in rural areas.


3.) PRESIDENT RAMN DEL FIERRO MAGSAYSAY

To amplify and stabilize the functions of the Economic Development Corps
(EDCOR), President Magsaysay worked

for the establishment of the National
Resettlement and Rehabilitation Administration (NARRA). This body took over from the
EDCOR and helped in the giving some sixty five thousand acres to three thousand
indigent families for settlement purposes. Again, it allocated some other twenty five
thousand to a little more than one thousand five hundred landless families, who
subsequently became farmers.
As further aid to the rural people,

the President Established the Agricultural Credit
and Cooperative Financing Administration (ACCFA). The idea was for this entity to
make available rural credits. Records show that it did grant, in this wise, almost ten
million dollars. This administration body next devoted its attention to cooperative
marketing.
Along this line of help to the rural areas, President Magsaysay initiated in all
earnestness the artesian wells campaign. A group-movement known as the Liberty
Wells Association was formed and in record time managed to raise a considerable sum
for the construction of as many artesian wells as possible. The socio-economic value of
the same could not be gainsaid and the people were profuse in their gratitude.
Finally, vast irrigation projects, as well as enhancement of the Ambuklao Power
plant and other similar ones, went along way towards bringing to reality the rural
improvement program advocated by President Magsaysay.


4.) PRESIDENT CARLOS GARCA Y POLSTICO

President Garca exercised the Filipino First Policy, for which he was known. This
policy heavily favored Filipino businessmen over foreign investors. He was also
resonsible for changes in retail trade which greatly affected the Chinese businessmen in
the country.

In the face of the trying conditions of the country, President Garca initiated what
has been called "The Austerity Program". His administration was characterized by its
austerity program and its insistence on a comprehensive nationalist policy. On March 3,
1960, he affirmed the need for complete economic freedom and added that the
government no longer would tolerate the dominance of foreign interests (especially
American) in the national economy. He promised to shake off "the yoke of alien
domination in business, trade, commerce and industry." Garca was also credited with
his role in reviving Filipino cultural arts. The main points of the Austerity Program were:


The government would tighten up its controls to prevent abuses in the over
shipment of exports under license and in under-pricing as well.
There would be a more rigid enforcement of the existing regulations on barter
shipments.
Government imports themselves were to be restricted to essential items.
The government also would reduce rice imports to a minimum.
An overhauling of the local transportation system would be attempted so as to
reduce the importation of gasoline and spare parts.
The tax system would be revised so as to attain more equitable distribution of the
payment-burden and achieve more effective collection from those with ability to
pay.
There would be an intensification of food production.

The program was hailed
[3]
by the people at large and confidence was expressed that
the measures proposed would help solve the standing problems of the Republic.


5.) PRESIDENT DIOSDADO PANGAN MACAPAGAL

To achieve the national goal of economic and social progress with prosperity
reaching down to the masses, there existed a choice of methods. First, there was the
choice between the democratic and dictatorial systems, the latter prevailing in
Communist countries. On this, the choice was easy as Filipinos had long been
committed to the democratic method. With the democratic mechanism, however, the
next choice was between free enterprise and the controls system. Macapagal stated the
essence of free enterprise in layman parlance in declaring before Congress on January
22, 1962 that "the task of economic development belongs principally to private
enterprise and not to the government.
Before independence there was free enterprise in the Philippines under
Presidents Manuel Quezon, Sergio Osmea and Manuel Roxas. In 1950
President Elpidio Quirino deviated from free enterprise launching as a temporary
emergency measure the system of exchange and import controls. The controls system
was carried on by President Magsaysay and Garcia.
The first fundamental decision Macapagal had to make was whether to continue
the system of exchange controls of Quirino, Magsaysay and Garcia or to return to the
free enterprise of Quezon, Osmena and Roxas. It had been his view since he was a
Congressman for eight years that the suitable economic system for Filipinos was free
enterprise. So on January 21, 1962 after working for 20 straight hours he signed a
Central Bank decree abolishing exchange controls and returning the country to free
enterprise.
During the 20 days available to make a decision on choice between controls and
free enterprise, between his inauguration as President and before the opening
of Congress, Macapagal's main adviser was Governor Andres Castillo of the Central
Bank.
Further reform efforts by Macapagal were blocked by the Nacionalistas, who
dominated the House of Representatives and the Senate at that time. Nonetheless,
Macapagal was able to achieve steady economic progress, and annual GDP growth
averaged at 5.15% for 196265.


6.) PRESIDENT FERDINAND EMMANUEL EDRALIN MARCOS, SR.

To help finance a number of economic development projects, the Marcos
government borrowed large amounts of money from international lenders.


The Philippines' external debt rose from $360 million (US) in 1962 to $28.3 billion in
1986, making the Philippines one of the most indebted countries in Asia. A sizable
amount of this money went to Marcos family and friends in the form of behest loans.
These loans were assumed by the government and are still being serviced by
taxpayers, to this day. These loans were ostensibly funded to construct the Bataan
Nuclear Power Plant but after Marcos' ouster, the plant was not utilized. Today, more
than half of the country's revenues go toward the payment of interest on these loans,
with the principal amounts remaining largely untouched. During the time of the late
Pres. Corazon Aquino, these debts were repudiated and finance secretaryJaime
Ongpin, threatened to resign unless they were. He had a personal reason: Aurita
Villoso, DBP internal auditor, said loans were granted to Ongpin's Delta Ventures
Resources Inc (DVRI) amounting to P660 million. The Bangko Sentral ng Pilipinas (the
central bank of the Republic of the Philippines) tried to resist the repudiation bill's
passage in the Congress, but due to international pressure Aquino did allow the denial
of these debts.
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
1980s was the Kilusang Kabuhayan at Kaunlaran (Movement for Livelihood and
Progress). This program was started in September 1981. It aimed to promote the
economic development of the barangays by encouraging its 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 or seven percent from 1970 to 1980.
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.
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%.
With help from the Rockefeller and Ford Foundations, Marcos brought the
"Green Revolution" (industrialized, chemical agriculture) to the Philippines. These
reforms resulted in high profits for transnational corporations, but were generally
harmful to small, peasant farmers who were often pushed into poverty. After declaring
martial law in 1972, Marcos promised to implement agrarian reforms. However, the land
reforms "served largely to undermine Marcos' landholder opponents, not to lessen
inequality in the countryside", and "encouraged conversion to cash tenancy and greater
reliance on farm workers". From 1972 to 1980, agricultural production fell by 30%.
Under Marcos, exports of timber products were among the nation's top exports.
Little attention was paid to environmental impacts of deforestation. By the early 1980s,
the industry collapsed because most of the Philippines' accessible forests had been
depleted.

7.) PRESIDENT MARA CORAZN SUMULONG "CORY" COJUANGCO AQUINO

As soon as she assumed the presidency of the Philippines, Aquino moved
quickly to tackle the issue of the US$26 billion foreign debt incurred by her predecessor,
which has badly tarnished the international credit standing and economic reputation of
the country. After weighing all possible options such as choosing not to pay, Aquino
eventually chose to honor all the debts that were previously incurred in order to clear
the country's image. Her decision proved to be unpopular but Aquino defended that it
was the most practical move. It was crucial for the country at that time to regain the
investors' confidence in the Philippine economy. Since 1986, the Aquino administration
has paid off $4 billion of the country's outstanding debts to regain good international
credit ratings and attract the attention of future markets. Nevertheless, the
administration borrowed an additional $9 billion, increasing the national debt by $5
billion within six years time since the ouster of former President Ferdinand Marcos in
1986.

Further, recognizing how crony capitalism zapped out the economy due to
collusion between government and big business and adhering to the Catholic social
principle of subsidiarity, President Aquino set out on a course of market liberalization
agenda while at the same time emphasizing solidarity, people empowerment and civic
engagement to help alleviate poverty in the country. The Aquino administration also
sought to bring back fiscal discipline in order as it aimed to trim down the government's
budget deficit that ballooned during Marcos' term through privatization of bad
government assets and deregulation of many vital industries. As president, Aquino
sought out to dismantle the cartels, monopolies and oligopolies of important industries
that were set up by Marcos cronies during the dark days of Martial Law, particularly in
the sugar and coconut industries. By discarding these monopolies and allowing market-
led prices and competition, small farmers and producers were given a fair chance to sell
their produce and products at a more reasonable, competitive and profitable price. This,
in a way, also helped a lot in improving the lot of farmers who are in dire need of
increasing their personal income and earnings. It was also during Aquino's time that
vital economic laws such as the Built-Operate-Transfer Law, Foreign Investments Act
and the Consumer Protection and Welfare Act were enacted.

The economy posted a positive growth of 3.4% during her first year in office. But
in the aftermath of the 1989 coup attempt by the rightist Reform the Armed Forces
Movement, the Philippine economy remained stagnant. In her final year in office,
inflation was raging at 17%, and unemployment was slightly over 10%, higher than the
Marcos years.


8.) PRESIDENT FIDEL "EDDIE" VALDEZ RAMOS

During his administration, Ramos began implementing economic reforms
intended to open up the once-closed national economy, encourage private enterprise,
invite more foreign and domestic investment, and reduce corruption. Ramos was also
known as the most-traveled Philippine President compared to his predecessors with
numerous foreign trips abroad, generating about US$ 20 billion worth of foreign
investments to the Philippines. To ensure a positive financial outlook on the Philippines,
Ramos led the 4th Asia Pacific Economic Cooperation (APEC) Leaders' Summit in the
Philippines on November 1996.
Under his administration, the Philippines enjoyed economic growth and stability.
The Philippine Stock Exchange in the mid-1990s was one of the best in the world and
his visions of 'Philippines 2000' that led the country into a newly industrialized country in
the world and the "Tiger Cub Economy in Asia".
Philippines 2000 Five-Point Program:
Peace and Stability
Economic Growth and Sustainable Development
Energy and Power Generation
Environmental Protection
Streamlined Bureaucracy
9.) PRESIDENT JOSEPH "ERAP" EJRCITO ESTRADA

There are several achievements of President Joseph Estrada. He achieved much
in both the economical, educational, and anti-crime aspects of politics. An example
includes promoting livelihood and self-help programs through his educational program.

President Estrada's regime had a strong economic squad. He also created a
strong body or group that eliminated car robbery and abduction cases in the country.

In terms of the economy, the Estrada administration, led by its team of
economists that included Felipe Medalla, Ben Diokno and Leonor Briones, was
successful in bringing the inflation rate down from 11 percent in January of 1999 to just
a little over 3 percent by November of the same year. This was in part due to the
successful agricultural program Agrikulturang Maka Masa, through which it achieved an
output growth of 6 percent, a record high at the time. Also, domestic investments began
to rise ? from 18.8 percent of GDP in 1999 to 21.2 percent of GDP in 2000. (Since then,
domestic investment has decreased to 19 percent in 2001, 16.8 percent in 2004 and
14.8 percent in 2006.)

By the end of Estrada's administration, debt supposedly reached P 2.1 trillion in
1999. Domestic debt supposedly amounted to P 986.7 billion while foreign debt stood at
US$ 52.2 billion. The fiscal deficit had reportedly doubled to more than P 100 billion
from a low of P 49 billion in 1998. Despite such setbacks, the GDP by 1999 posted a
3.2 percent growth rate, up from a low of 0.5 percent in 1998. Moreover, domestic
investments started to increase from 18.8% of GDP in 1999 to 21.2% of GDP in 2000.



10.) PRESIDENT GLORIA MACAPAGAL-ARROYO

Arroyo, who earned a master's degree and doctorate in economics, made
the Philippine economy the focus of her presidency. Annual economic growth in the
Philippines averaged 4.5% during the Arroyo administration, expanding every quarter of
her presidency.
[14]
This is higher than in the administrations of her three immediate
predecessors, Corazon Aquino (3.8%), Fidel Ramos(3.7%), and Joseph
Estrada (3.7%). The Philippine economy grew at its fastest pace in three decades in
2007, with real GDP growth exceeding 7%.

The economy was one of the few to avoid
contraction during the 2008 global financial crisis, faring better than its regional peers
due to minimal exposure to troubled international securities, lower dependence on
exports, relatively resilient domestic consumption, large remittances from four-to five-
million overseas Filipino workers, and a growing business process outsourcing industry.
Arroyo's handling of the economy has earned praise from former US President Bill
Clinton, who cited her "tough decisions" that put the Philippine economy back in
shape. Despite this growth, the poverty rate remained stagnant due to a high population
growth rate and uneven distribution of income.
A controversial expanded value added tax (e-VAT) law, considered the
centerpiece of the Arroyo administration's economic reform agenda, was implemented
in November 2005, aiming to complement revenue-raising efforts that could plug the
country's large budget deficit. Her administration originally set a target to balance the
national budget by 2010, t. The tax measure boosted confidence in the government's
fiscal capacity and helped to strengthen the Philippine peso, making it East Asia's best
performing currency in 200506. The peso strengthened by nearly 20% in 2007, making
it by far Asia's best performing currency for the year, a fact attributed to a combination
of increased remittances from overseas Filipino workers and a strong domestic
economy.
Early in her presidency, Arroyo implemented a controversial policy of holiday
economics, adjusting holidays to form longer weekends with the purpose of boosting
domestic tourism and allowing Filipinos more time with their families.