ECONOMIC

ISSUES IN THE
PHILIPPINES

Name:Justine Bucago
Gr.&Section:9-Aquamarine
PHILIPPINE
PRESIDENTS
 Manuel Luis Quezon y Molina
(Nobyembre 15, 1935-Agosto 1, 1944)

a.) Problems
*The Chinese had been dominating the retail trade industry in the country.When free trade
between the Philippines and the United States began in 1909,Philippine products like
sugar,coconut oil,abaca fiber,copra,and others,entered American market free of duty.This led
to artificial prosperity because those products had ready market in United States.The
committee studied the economic problems for the Commonwealth.It recommended that
Phillipine-American free trade relations be extended so that the Philippines could have enough
time adjust its economy before independence.Some Philippine products would be allowed to
enter the United States in limited quantities,while others would enter without extort duties.
* Manuel L. Quezon made several institutions and programs to attend to the needs of the
economy on his term. Healthy economy is hard to establish back then because we became
independent on U.S. His effort to fix the economy was see on the Commonwealth Act No. 2
which established the National Economic Council, this act helps solve social imbalance, land
maldistribution, provide land to the landless and farmers, provide housing and create an
employment to the unemployed.
*Regaining independence is tough battle Filipino face and with Quezon it became possible. He
fought for Philippines to be self-governed, prepared us to be independent from America and
later on lead our country to its full independent government. He tried to solve problems
inherited from Spanish and Americans Administrations, fought graft and corruption in the
country, build up the national defense and strengthen economy that is dependent on the U.S.
Filipino pays attention on choosing the mother tongue and because of this the Institute of Nat’l
Language was created, he was known as “Ama ng Wikang Pambansa”.

b.) Laws
*EXECUTIVE ORDER NO. 249-CREATING THE NATIONAL TRADING CORPORATION
*EXECUTIVE ORDER NO. 134-PROCLAMING THE NATIONAL LANGUAGE OF THE PHILIPPINES
BASED ON THE “TAGALOG” LANGUAGE
* COMMONWEALTH ACT NO. 1-AN ACT TO PROVIDE FOR THE NATIONAL DEFENSE OF THE
PHILIPPINES, PENALIZING CERTAIN VIOLATIONS THEREOF, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
*
c.) Programs
*Commonwealth Act No. 1, President Manuel L. Quezon asks for General McArthur service to
devise an effective yet affordable National Defense Plan for the Philippines. This defense plan
was later abolished because 16 Million is not sufficient enough to fund the act. A compulsory
military training for men age 20 in a period of 5 ½ months and pre-military training in high
school was enforced. Quezon also push the standardization of ROTC (Reserve Officers’ Training
Corps) programs in colleges and universities.
*In response to social imbalance and land maldistribution; National Economic Council as an
adviser and Social Justice Program that bought lands and distribute it to farmers and landless
Filipinos. Law also requires a written agreement between farmers, tenants and landlords to
protect citizens from an unfair rent increase. Court of Industrial Relations was established for
the creation of Agricultural and Industrial Bank, National Land Settlement Administration and
National Housing Commission to provide housing, National Relief Administration for calamities
and for finding employment to the unemployed.
*Institute of National Language was established for studying the issue of choosing the country’s
mother tongue; National Council of Education to guide the education policies, adult education
program, for vocational schools, also in charge of the Education Act of 1940. He also made
Pilipino the national language.
d.) Plans
e.) Major Issue: Tydings-McDuffie
 José Paciano Laurel y García
(October 14, 1943-August 17, 1945)

a.) Problems
* During Laurel's term as President, hunger was the main problem. Prices of essential supplies
rose. The government exerted every effort to increase production and bring consumers' goods
under control. However, the greediness of the Japanese prevails.
* Prices of essential commodities rose to unprecedented heights.
* The government exerted every effort to increase production and bring consumers' goods
under control.
*Guerrilla activities and Japanese retaliatory measures brought the peace and order situation
to a difficult point. Resorting to district-zoning and domiciliary searches, coupled with arbitrary
arrests, the Japanese made the mission of Laurel's administration incalculably exasperating and
perilous.
* Filipino people were torn in half whether he’s a hero or a traitor; others think that he was
ready to obey the orders of the Japanese Army for the “maintenance of peace and order and
the promotion of well-being of our people” on the contrast the idea that he did not make any
negative actions against the Japanese Government when they occupied the Philippines.
* Mickey Mouse money enforced by the Japanese Army it has very low value caused by severe
inflation. Inflation plagued the country with the devaluation of the Japanese money, evidenced
by a 60% inflation experienced in January 1944.

* Insufficiency of food production, particularly rice, has long been a problem in

the Philippines. During the American period, periodic shortages occurred,
necessitating importation from neighboring countries. Attempts were made to
make the Philippines self-sufficient and to rationalize the distribution of food in
the 1930s, but World War II erupted and the Philippines came under Japanese
rule. The war and Japanese occupation disrupted supply lines and agricultural
cycles, resulting in a potential shortage of rice and other food commodities.
Foreseeing this, the Japanese Military Administration and later, the Laurel
administration, adopted various plans to increase production, systematize
distribution, and control prices. Almost all the plans failed due to a variety of
reasons- lack of peace and order; lack of fuel and transportation; resistance by
the people: the necessity of feeding Japanese soldiers: and so on.
b.) Laws
* EXECUTIVE ORDER NO. 33-REDUCING BY THIRTY PER CENTUM THE TAX ON ALL PERMANENT
PLANTS AND TREES FOR THE YEAR 1944
* PROCLAMATION NO. 30-PROCLAIMING THE EXISTENCE OF A STATE OF WAR IN THE
PHILIPPINES
* PROCLAMATION NO. 29-PROCLAIMING MARTIAL LAW THROUGHOUT THE PHILIPPINES
* EXECUTIVE ORDER NO. 109-ESTABLISHING A NATIONAL SERVICE ASSOCIATION TO BE KNOWN
AS “KAPISANAN SA PAGLILINGKOD SA BAGONG PILIPINAS” (KALIBAPI).

c.) Programs
*He formulated the 1943 constitution; a temporary constitution expected to last until the end of
war, this established a republican government with a strong executive that states the duties and
obligations of the people rather than their rights and privileges.
*Telling of Laurel's ambivalent and precarious position is the following anecdote. In 1944,
Laurel issued an executive order organizing the Kapisanan sa Paglilingkod sa Bagong Pilipinas
(KALIBAPI) as the sole political organization to back the government. An attempt was made to
organize a women's section of the KALIBAPI, and Laurel hosted several women leaders in
Malacañang Palace to plead his case. After he spoke, a university president, speaking in behalf
of the group, responded, "Mr. President, sa kabila po kami". ("Mr. President, we are on the
other side.") Laurel joined the others assembled in hearty laughter and the KALIBAPI women's
section was never formed.
*
*

d.) Plans
e.) Major Issues: Food,Rape,Massacre
 Sergio Osmeña Sr.
(August 1, 1944-May 28, 1946)

a.) Problems
* During his time when the country is still recovering from the damage of the war; the
Philippine National Bank has been rehabilitated and the country joined the International
Monetary Fund. To help the economy be somewhat stabilized.
* President Sergio Osmeña had the problems of public order, lack of community cooperation,
regaining the people's trust in government to deal with during his presidency. And sometimes
because of that issues, a leader will not show his skills, talents, and the love to our nation. We
will not be united in one goal because of that matter. If we are united, we will be as one and we
will obtain our one desire.
* Resisted in vain Japanese demands that the Philippines issue a formal declaration of war
against the United States. There were also reports during his presidency of the Japanese
military carrying out rape and massacre towards the Filipino population.

b.) Laws
* EXECUTIVE ORDER NO. 107-PROVIDING FOR THE REHABILITATION OF DOMESTIC INSURANCE
COMPANIES, APPROPRIATING FUNDS FOR THAT END, AND FOR OTHER PURPOSES

* PROCLAMATION NO. 36-EXEMPTING FROM IMPORT DUTY RICE IMPORTED BY THE

GOVERNMENT OR A RELIEF ORGANIZATION DESIGNATED BY THE PRESIDENT OF THE PHILIP
*ADMINISTRATIVE ORDER NO. 34-AUTHORIZING THE TRADERS INSURANCE AND SURETY
COMPANY TO BECOME A SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS
AND UNDERTAKINGSPINES
* EXECUTIVE ORDER NO. 105-FURTHER EXTENDING THE PERIOD PROVIDED IN EXECUTIVE
ORDER NUMBERED TWO HUNDRED AND FIFTY-EIGHT, DATED MARCH TWELVE, NINETEEN
HUNDRED AND FORTY, AS AMENDED BY EXECUTIVE ORDER NUMBERED SIXTY-SIX, DATED
SEPTEMBER FOURTEEN NINETEEN HUNDRED AND FORTY-FIVE, FOR WHICH PAYMENT MAY BE
AUTHORIZED OF THE SALARIES OR WAGES OF NEWLY APPOINTED OR TRANSFERRED OFFICERS
AND EMPLOYEES OF THE NATIONAL, PROVINCIAL, CITY, AND MUNICIPAL GOVERNMENTS
WHILE THEIR APPOINTMENTS ARE PENDING ACTION BY THE PROPER AUTHORITIES
* COMMONWEALTH ACT No.672-AN ACT TO REHABILITATE THE PHILIPPINE NATIONAL BANK
* PROCLAMATION NO. 33-RESERVING FOR SETTLEMENT PURPOSES TWO PARCELS OF LAND
SITUATED IN THE PROVINCES OF ORIENTAL NEGROS AND OCCIDENTAL NEGROS, ISLAND OF
NEGROS.
* ADMINISTRATIVE ORDER NO. 31-AUTHORIZING THE PLARIDEL SURETY AND INSURANCE
COMPANY TO BECOME A SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS
AND UNDERTAKINGS.
* EXECUTIVE ORDER NO. 85-CREATING THE GOVERNMENT PROCUREMENT COMMISSION
* EXECUTIVE ORDER NO. 84-PRESCRIBING THE PROCEDURE FOR COURSING CORRESPONDENCE
TO AND FROM THE UNITED STATES AND FOREIGN COUNTRIES
* EXECUTIVE ORDER NO. 83-APPROPRIATING FUNDS FOR THE PAYMENT OF GRATUITIES TO
OFFICIALS AND EMPLOYEES OF THE NATIONAL, PROVINCIAL, CITY, AND MUNICIPAL
GOVERNMENTS AND OF THE CORPORATIONS OR COMPANIES OWNED OR CONTROLLED BY THE
GOVERNMENT.
*COMMONWEALTH ACT No.683-AN ACT TO ORGANIZE THE OFFICE OF FOREUGN RELATIONS
AND FOR OTHER PURPOSE.

c.) Programs
* On 30 April 1946, the United States Congress, at last, approved the Bell Act, which as early as
20 January had been reported to the Ways and Means Committee of the lower house, having
been already passed by the Senate. President Osmeña and Resident Commissioner Romulo had
urged the passage of this bill, with United States High Commissioner, Paul V. McNutt, exerting
similar pressure.The Act gave the Philippines eight years of free trade with the United States,
then twenty years during which tariffs would be upped gradually until they were in line with the
rest of the American tariff policy. The law also fixed some quotas for certain products: sugar –
850,000 long tons; cordage – 6,000,000 pounds; coconut oil – 200,000 long tons; cigars –
200,000,000 pounds. This aid was coupled with that to be obtained from the recently passed
Tydings Damage bill, which provided some nine hundred million dollars for payment of war
damages, of which one million was earmarked to compensate for church losses. The sum of two
hundred and forty million dollars was to be periodically allocated by the United States President
as good will. Also, sixty million pieces of surplus property were transferred to the Philippines
government.
* On 5 December 1945, President Osmeña appointed Resident Commissioner Carlos P. Romulo
as his representative to accept Philippine membership in the International Monetary Fund and
in the International Bank for Reconstruction and Development, which bodies had been
conceived in the Bretton Woods Agreement, in which the Philippine had also taken part.
Romulo signed said membership on 27 December 1945 on behalf of the Philippines
* To prepare for the forthcoming independent status of the Philippines, President Osmeña
created the Office of Foreign Relations Vicente Sinco was appointed as its first Commissioner,
with cabinet rank. In this connection, President Osmeña also entered into an agreement with
the United States Government to send five Filipino trainees to the U.S. State Department to
prepare themselves for diplomatic service. They were sent by U.S. State Department to the
United States embassies in Moscow and Mexico City and consulates in Saigon and Singapore.
* The First Commonwealth Congress earnestly took up the various pending assignments to
solve the pressing matters affecting the Philippines, especially in regard to relief, rehabilitation,
and reconstruction. The first bill enacted was Commonwealth Act No. 672 – rehabilitating the
Philippine National Bank.To prepare for the forthcoming independent status of the Philippine,
President Osmeña created the Office of Foreign Relations. President Osmeña entered into an
agreement with the United States Government to send five Filipino trainees to the U.S. State
Department to prepare themselves for diplomatic service.
* President Osmeña proceeded with the immediate reorganization of the government and its
diverse dependencies. On 8 April 1945, he formed his Cabinet, administering the oath of office
to its component members. Later, President Osmeña received the Council of State to help him
solve the major problems confronting the nation. Government offices and bureaus were
gradually reestablished. A number of new ones were created to meet needs then current. Also
restored were the Supreme Court of the Philippines and the inferior courts. The Court of
Appeals was abolished and its appellate jurisdiction was transferred to the Supreme Court, the
members of which were increased to eleven – one Chief Justice and ten Associate Justices – in
order to attend to the new responsibilities. Slowly but steadily, as the liberating forces freed
the other portions of the country, provincial and municipal governments were established by
the Commonwealth to take over from the military authorities.

d.) Plans
e.) Major Issue: HUKBALAHAP
 Manuel Acuna Roxas
(May 28, 1946 -April 15, 1948)

a.) Problems
* Since the country was severely damaged by the war, the economy was struggling because of
low output growth and high unemployment rates. Production became low because farms and
factories were ruined. Unemployment rates were rising at a fast pace; because businesses were
closing, there were no more jobs available for people. The reconstruction cost of these
buildings reached 126 million pesos. Also, there was an annual lack of budget of about 200
million pesos.
* Although Roxas was successful in obtaining rehabilitation funds from America to repair what
has been destroyed in the Philippines, he was still criticized for his approval to the Bell Trade
Act. Graft and corruption did not stop in the government. Scandals such as the surplus war
property scandal, school supplies scandal and Chinese immigration scandals appeared during
his time.
* World War II paralyzed the whole country; its effect is excessive that $ 800 million is needed
for the recovery of the Philippines. However, the president managed to find a resource for this
amount.
*
********