Diosdado Pangan Macapagal

Diosdado Macapagal was chosen by the people of the Philippines to be their president in 1961 and his
term ended in 1965. Considered to be incorruptible by most during the time, he may have served as an
inspiration to his people. That’s why he included the need for the country to have a good grasp of good morals
and ethics. He also wanted to end corruption, poverty, homelessness, and other various problems that plagued
the common man. During his entire term however, none of what he promised or wanted was really achieved.
This makes him look quite bad as a leader of the country contrary to what he was supposed to be seen as. He’s
the type of person who’s more on talk rather than action. The devaluation of the Philippine Peso started during
his term which makes him, in the eyes of some, the root of a lot of today’s problems in the country. Other than
that, he returned free trade and free enterprise to the country which crushed local goods and businesses which
continue to suffer up to today. When it came to his promises to the common man, the farmers in particular, he
was unable to keep his them during his term. He was unable to give them the land they needed because aside
from having no specific time table as to when they were to receive the land, the government didn’t have the
money to purchase the land from the hacienderos which was to be distributed to the farmers in the first place.
Basically, he made really good speeches and the country didn’t “die” when he was in power but he wasn’t able
to do anything great that problems were removed. If common people today are asked about what he did, the
answer may be as extreme as “Nothing!” or funny as “He fathered a dwarf!” Diosdado probably wasn’t a bad
man and may actually be “incorruptible” despite the issues. Unfortunately, his term and his leadership are now
seen as either unproductive to the country or were the root causes the still continuing fall of the Philippine
economy today. That is why he is rated just high enough to pass but not high enough to be considered a good
president.

Major legislation signed

 Republic Act No. 3512 – An Act Creating A Fisheries Commission Defining Its Powers, Duties and
Functions, and Appropriating Funds Therefore.
 Republic Act No. 3518 – An Act Creating The Philippine Veterans' Bank, and For Other Purposes.
 Republic Act No. 3844 – An Act To Ordain The Agricultural Land Reform Code and To Institute Land
Reforms In The Philippines, Including The Abolition of Tenancy and The Channeling of Capital Into
Industry, Provide For The Necessary Implementing Agencies, Appropriate Funds Therefor and For Other
Purposes.
 Republic Act No. 4166 – An Act Changing The Date Of Philippine Independence Day From July Four
To June Twelve, And Declaring July Four As Philippine Republic Day, Further Amending For The Purpose
Section Twenty-Nine Of The Revised Administrative Code.
 Republic Act No. 4180 – An Act Amending Republic Act Numbered Six Hundred Two, Otherwise
Known As The Minimum Wage Law, By Raising The Minimum Wage For Certain Workers, And For
Other Purposes.
Economy
In his inaugural address, Macapagal promised a socio-economic program anchored on "a return to free and
private enterprise", placing economic development in the hands of private entrepreneurs with minimal
government interference.

Twenty days after the inauguration, exchange controls were lifted and
the Philippine peso was allowed to float on the free currency exchange market. The currency controls were
initially adopted by the administration of Elpidio Quirino as a temporary measure, but continued to be adopted
by succeeding administrations. The peso devalued from P2.64 to the U.S. dollar, and stabilized at P3.80 to the
dollar, supported by a $300 million stabilization fund from the International Monetary Fund.
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 continuing of 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.

Socio-economic Program
The removal of controls and the restoration of free enterprise was intended to provide only the fundamental
setting in which Macapagal could work out economic and social progress.[13] A specific and periodic program
for the guidance of both the private sector and the government was an essential instrument to attain the
economic and social development that constituted the goal of his labors.[13]
Such a program for his administration was formulated under his authority and direction by a group of able and
reputable economic and business leaders the most active and effective of which was Sixto Roxas III. From an
examination of the planned targets and requirements of the Five-Year program – formally known as the Five-
Year Socio-Economic Integrated Development Program – it could be seen that it aimed at the following
objectives.

 immediate restoration of economic stability;

 alleviating the plight of the common man; and
 establishing a dynamic basic for future growth.
Free enterprise was restored with decontrol. The Five-Year Economic Program had been prescribed. Land
reform abolishing tenancy had been launched. These were essential foundations for economic and social
progress for the greatest number.
The essential foundations having been laid, attention must then be turned to the equally difficult task of building
the main edifice by implementing the economic program. Although the success of Macapagal's Socio-Economic
Program in free enterprise inherently depended on the private sector, it would be helpful and necessary for the
government to render active assistance in its implementation by the citizens.
Such role of the government in free enterprise, in the view of Macapagal, required it to provide the social
overhead like roads, airfields and ports that directly or proximately promote economic growth, to adopt fiscal
and monetary policies salutary to investments, and most importantly to serve as an entrepreneur or promote of
basic and key private industries, particularly those that require capital too large for businessmen to put up by
themselves. Among the enterprises he selected for active government promotion were integrated
steel, fertilizer, pulp, meat canning and tourism.
Land reform
 Foremost of these was the Agricultural Land Reform Code of 1963 (Republic Act No. 3844) which provided
for the purchase of private farmlands with the intention of distributing them in small lots to the landless tenants
on easy term of payment. It is a major development in history of land reform in the Philippines,
In comparison with the previous agrarian legislation, the law lowered the retention limit to 75 hectares, whether
owned by individuals or corporations. It removed the term "contiguous" and established the leasehold system.
The share-tenancy or the kasama system was prohibited. It formulated a bill of rights that assured agricultural
workers the right to self-organization and to a minimum wage. It also created an office that acquired and
distributed farmlands and a financing institution for this purpose. The major flaw of this law was, however, that
it had several exemptions, such as ort (big capital plantations established during
the Spanish and American periods); fishponds, saltbeds, and lands primarily planted
to citrus, coconuts, cacao, coffee, durian, and other similar permanent trees; landholdings converted
to residential, commercial, industrial, or other similar non-agricultural purposes.
It was viewed that the 75-hectare retention limit was just too high for the growing population density.
Moreover, this law merely allowed the transfer of the landlordism from one area to another. This was because
landlords were paid in bonds, which he could use to purchase agricultural lands. Likewise, the farmer was free
to choose to be excluded from the leasehold arrangements if he volunteered to give up the landholdings to the
landlord.
Within two years after the law was implemented, no land was being purchased under its term and conditions
caused by the peasants' inability to purchase the land. Besides, the government seemed lacking of strong
political will, as shown by the Congress' allotment of only one million Philippine pesos for the implementation
of this code. At least Php200 million was needed within a year from the enactment and implementation of the
code, and Php300 million in the next three years for the program to be successful. However, by 1972, the code
had benefited only 4,500 peasants covering 68 estates, at the cost of Php57 million to the government.
Consequently, by the 1970s, the farmers ended up tilling less land, with their share in the farm also being less.
They incurred more debts, depending on the landlord, creditors, and palay buyers. Indeed, during the
administration of Macapagal, the productivity of the farmers further declined.
Anti-corruption drive
One of Macapagal's major campaign pledges had been to clean out the government corruption that had
proliferated under former President Garcia.The administration also openly feuded with Filipino
businessmen Fernando Lopez and Eugenio Lopez, brothers who had controlling interests in several large
businesses.The administration alluded to the brothers as "Filipino Stonehills who build and maintain business
empires through political power, including the corruption of politicians and other officials".
Stonehill controversy
The Administration's campaign against corruption was tested by Harry Stonehill, an American expatriate with a
$50-million business empire in the Philippines.[15] Macapagal's Secretary of Justice, Jose W.
Diokno investigated Stonehill on charges of tax evasion, smuggling, misdeclaration of imports, and corruption
of public officials.[15] Diokno's investigation revealed Stonehill's ties to corruption within the government.
Macapagal, however, prevented Diokno from prosecuting Stonehill by deporting the American instead, then
dismissing Diokno from the cabinet. Diokno questioned Macapagal's actions, saying, "How can the government
now prosecute the corrupted when it has allowed the corrupter to go?" Diokno later served as a Senator of the
Republic.
Independence Day
Macapagal appealed to nationalist sentiments by shifting the commemoration of Philippine independence day.
On May 12, 1962, he signed a proclamation which declared Tuesday, June 12, 1962, as a special public holiday
in commemoration of the declaration of independence from Spain on that date in 1898. The change became
permanent in 1964 with the signing of Republic Act No. 4166. For having issued his 1962 proclamation,
Macapagal is generally credited with having moved the celebration date of the Independence Day
holiday. Years later, Macapagal told journalist Stanley Karnow the real reason for the change: "When I was in
the diplomatic corps, I noticed that nobody came to our receptions on the Fourth of July, but went to the
American Embassy instead. So, to compete, I decided we needed a different holiday”