Economic development is a term that generally refers to the sustained, concerted effort of policymakers and community to promote the

standard of living and economic health in a specific area. Such effort can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention endeavor with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist Amartya Sen points out: ―economic growth is one aspect of the process of economic development.‖ [1]

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1 Term 2 Social Science Research 3 Goals 4 Regional policy o 4.1 Organization o 4.2 International Economic Development Council 5 Community Competition 6 See also 7 References

[edit] Term
The scope of economic development includes the process and policies by which a nation improves the economic, political, and social well-being of its people.[2] The University of Iowa's Center for International Finance and Development states that: 'Economic development' is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernization, and especially Industrialization are other terms people have used when discussing economic development. Although no one is sure when the concept originated, most people agree that development is closely bound up with the evolution of capitalism and the demise of feudalism.[3] Mansell and Wehn also state that economic development has been understood since the World War II to involve economic growth, namely the increases in per capita income, and attainment of a standard of living equivalent to that of industrialized countries.[4][5] Economy development can also be considered as a static theory that documents the state of economy at a certain time. According to Schumpeter (2003), the changes in this equilibrium state to document in economic theory can only be caused by intervening factors coming from the outside.[6]

[edit] Social Science Research
The study of economic development by social scientists encompasses theories of industrial/economic modernization causes, the historical phases or waves of economic development, and the organizational aspects of enterprise development in modern societies. Economic development embraces sociological research on a variety of topics including: business organization, enterprise development, evolution of markets and management, and cross-national comparisons of industrial organization patterns. One example inquiry would be: "Why are levels of direct foreign investment and labour productivity significantly higher in some countries than in others?"[7] In economics, the study of economic development was borne out of an extension to traditional economics that focused entirely on national product, or the aggregate output of goods and services. Economic development was concerned in the expansion of people’s entitlements and their corresponding capabilities, morbidity, nourishment, literacy, education, and other socioeconomic indicators. Borne out of the backdrop of Keynesian, advocating government intervention, and neoclassical economics, stressing reduced intervention, with rise of highgrowth countries (Singapore, South Korea, Hong Kong) and planned governments (Argentina, Chile, Sudan, Uganda), economic development, more generally development economics, emerged amidst these mid-20th century theoretical interpretations of how economies prosper.[1] Also, economist Albert O. Hirschman, a major contributor to development economics, asserted that economic development grew to concentrate on the poor regions of the world, primarily in Africa, Asia and Latin America yet on the outpouring of fundamental ideas and models.[8] ===Growth and Development Dependency theorists argue that poor countries have sometimes experienced economic growth with little or no economic development initiatives; for instance, in cases where they have functioned mainly as resource-providers to wealthy industrialized countries. There is an opposing argument, however, that growth causes development because some of the increase in income gets spent on human development such as education and health. According to Ranis et al. (2000), economic growth and human development is a two-way relationship. Moreover, the first chain consists of economic growth benefiting human development with GNP. Specifically, GNP increases human development by expenditure from families, government and organizations such as NGOs. With the rise in economic growth, families and individuals will likely increase expenditures with heightened incomes, which in turn leads to growth in human development. Further, with the increased consumption, health and education grow, also contributing to economic growth. [9] In addition to increasing private incomes, economic growth also generate additional resources that can be used to improve social services (such as healthcare, safe drinking water, etc.). By generating additional resources for social services, unequal income distribution will be mitigated as such social services are distributed equally across each community, thereby benefiting each individual. Thus, increasing living standards for the public.[10] Concisely, the relationship between human development and economic development can be explained in three ways. First, increase in average income leads to improvement in health and nutrition (known as Capability Expansion through Economic Growth). Second, it is believed that social outcomes can only be

improved by reducing income poverty (known as Capability Expansion through Poverty Reduction). Lastly, social outcomes can also be improved with essential services such as education, healthcare, and clean drinking water (known as Capability Expansion through Social Services).[11] John Joseph Puthenkalam's research aims at the process of economic growth theories that leads to economic development. After analyzing the existing capitalistic growth-development theoretical apparatus, he introduces the new model which integrate the variables of freedom, democracy and human rights into the existing models and argue that any future economic growth-development of any nation depends on this emerging model as we witness the third wave of unfolding demand for democracy in the Middle East. He develops the knowledge sector in growth theories with two new concepts of 'mirco knowledge' and 'macro knowledge'. Micro knowledge is what an individual learns from school or from varios existing knowledge and macro knowledge is the core philosophical thinking of a nation that all individuals inherently receive. How to combine both these knowledge would determine further growth that leads to economic development of developing nations. For further reading, please refer to "Integrating Freedom, Democracy and Human Rights into Theories of Economic Growth" & other publications(1998,2000&2010).

[edit] Goals
In the United States, Project Socrates outlined competitiveness as the driving factor for successful economic development in government and industry. By addressing technology directly, to meet customer needs, competitiveness was fostered in the surrounding environment and resulted in greater economic performance and sustained growth. [12] Economic development typically involves improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. GDP does not take into account other aspects such as leisure time, environmental quality, freedom, or social justice; alternative measures of economic well-being have been proposed (more). Essentially, a country's economic development is related to its human development, which encompasses, among other things, health and education. These factors are, however, closely related to economic growth so that development and growth often go together.[13]

[edit] Regional policy

and tax policies. Job creation and retention through specific efforts in business finance. Economic development practitioners generally work in public offices on the state. One growing understanding in economic development is the promotion of regional clusters and a thriving metropolitan economy.Diagram of key components of a strong regional cluster. trade. regulation of financial institutions. or municipal level. skilled laborforce. policies of economic development encompass three major areas:    Governments undertaking to meet broad economic objectives such as price stability.S. and the other is to administer policy. high employment. and projects. or in public-private partnerships organizations that may be partially funded by local. crime prevention. and infrastructure. state. and other market productive activities. stores. workforce development. parks.[14] Even the U. Economic Development Administration [3] In its broadest sense. business retention and expansion. The cluster of similar industries. or . small business development. exports. In today’s global landscape. specialties.S. Additionally. location is vitally important and becomes a key in competitive advantage. affordable housing. The practitioners have two key roles: one is to provide leadership in policymaking. regional. local services such as restaurants. helping to develop a vibrant region for the wider community. programs. U. technology.’s Economic Development Administration recognizes the importance of clusters with their continued Regional Innovation Clusters initiative which aims to ―create jobs and grow the economy‖ through the geographic concentrations of industries and firms in their need for talent. regional. Such efforts include monetary and fiscal policies. and sustainable growth. entrepreneurship. and trades experience growth as well. neighborhood development. technology transfer. marketing. [15] [edit] Organization Economic development has evolved into a professional industry of highly specialized practitioners. Programs that provide infrastructure and services such as highways. This third category is a primary focus of economic development professionals. and real estate development. and technologies help lower transaction costs and foster a growing environment of commerce. and K–12 education.

[edit] International Economic Development Council With more than 20. faith-based organizations. technology development agencies. Those types of programs are usually policy-created and can be local. and international economic development organizations. the reality is that economic developers do not typically create jobs. competition is further intensified by the use of many variations of economic incentives to the potential business such as: tax incentives. With over 4. Their role is to seek out new economic opportunities and retain their existing business wealth.federal tax money. Additionally. Many individual states also have associations comprising economic development professionals. regional. investment capital.500 members across the US and internationally. There are numerous other organizations whose primary function is not economic development work in partnership with economic developers. too much emphasis has been placed on economic developers for "not creating jobs.000 professional economic developers employed world wide in this highly specialized industry.C. as well as chambers of commerce. schools. the use of community profiling tools and database templates to measure community assets versus other communities is also an important aspect of economic development. states. donated land. foundations. health care providers. These economic development organizations (EDO's) function as individual entities and in some cases as departments of local governments. economic output. Job creation. utilities. and other education or research institutions. utility companies. who work closely with IEDC. rural. universities. but facilitate the process for existing businesses and start-ups to do so. the economic developer must make sure that there are sufficient economic development programs in place to assist the businesses achieve their goals. and colleges. They include the news media. is a non-profit organization dedicated to helping economic developers do their job more effectively and raising the profile of the profession. the International Economic Development Council (IEDC) headquartered in Washington. consultants and redevelopment authorities. serving exclusively the economic development community. and nations for new economic development projects in today's globalized world. statewide and national in nature.[16] [edit] Community Competition One unintended consequence of economic development is the intense competition between communities. Therefore. When considering measurement. With the struggle to attract and retain business. local. educational institutions." However. [edit] See also . IEDC membership represents the entire range of the profession ranging from regional. and increase in taxable basis are the most common measurement tools. IEDC places significant attention on the various activities undertaken by economic development organizations to help them compete and sustain vibrant communities. urban. and many others. D. state.

and Sheffrin. Knowledge Societies: Information Technology for Sustainable Development.edu/kewlcontent/cdoutput/TR501/page59. 133-150. Vol. J. 28(2). 7. 10. . "DoD Unveils Competitive Tool: Project Socrates Offers Valuable Analysis". Theories Of Industrial Modernization & Enterprise Development: A Review. 2000. ^ Lewis F. 2029-2049. ^ Smith. The Journal of Economic Perspectives. A. ^ Hirschman.. Available at: http://dx. The Rise and Decline of Development Economics. 2000.. Conteras.. Development: Which Way Now? Economic Journal. (1981). 3.. Human Development and Economic Sustainability. "How the Concept of Development Got Started" University of Iowa Center for International Finance and Development E-Book [1] 4. 6. A. 1998. (1983). New Jersey.. ^ a b Sen. 12.wsu. 2009]. ISBN 978-0-90632126-3. World Development. & Sen.htm 5. Upper Saddle River. ^ O'Sullivan. R & and Wehn.Wikibooks has a book on the topic of Economic Development Wikimedia Commons has media related to: Economic development          Business cluster Constitutional economics Development economics Economic growth FORGE Program Infrastructure Metropolitan economy Private Sector Development Public capital [edit] References 1. A. 7(1). ^ http://cbdd. New York: Oxford University Press. O. 1993. Pp.org/10. The Theory of Economic Development. A. M. pages 1–2. U. & Backhaus. S. S. Pearson Prentice Hall.[2] 8. G. 1-24 9. ^ Anand. Human Development in Poor Countries: On the Role of Private Incomes and Public Services. In Joseph Alois Schumpeter. 28(12).745-762. Washington Technology.1007/0-30648082-4_3 [Accessed October 19. 93 Issue 372. A. ^ R. & Ramirez. ^ Ranis. (2003). Pp. World Development. Abbott. Esther (1988-05-05). revised 2nd edition 2003. Economic Growth and Human Development. M. Economics: Principles in action. ^ Schumpeter. Essays in Trespassing: Economics to Politics to Beyond. ^ Mansell. 197-219. & Ravallion. 11. ISR/Google Books. 2. S.doi. 471pgs. Stewart. F. 61-116. ^ Anand. U. pp. 2003.

"The role of cognitive skills in economic development. no.com economic development Definition Progress in an economy. E. 2008. and Ludger Woessmann. Harvard Business Review.13. ^ Hanushek. 77-90. Clusters and the New Economics of Competition.gov/AboutEDA/RIC/ 16. 15. ^ http://www. ^ Porter. Eric A.eda. 3 (September): 607668. Pp. 14. (1998). Economic development usually refers to the adoption of new technologies. 46. or the qualitative measure of this. M." Journal of Economic Literature.org BusinessDictionary. Philippines Economic Development By: EconomyWatch Date: 30 June 2010 About The Author Follow The Money EconomyWatch. ^ http://www. and general improvement in living standards. transition from agriculture-based to industry-based economy..iedconline. Content Team .

Philippines needs a further increase in growth rate in order to sustain growth in economy. growth rate has been fastest. A hard working service sector and large allowance from millions of Filipinos working abroad played an important role in Philippines economic development. New developments in economy of Philippines can . Macapagal-Arroyo came into power in 2001 there has been an economic growth of 5 percent. Since. Real gross domestic product for this time was estimated to be 7 percent. but growth has slowed down a bit in 2008.5% because of world financial crisis. Still. in last three decades. Economic development in Philippines economy has been because of high government spending. More economic development of Philippines is required to alleviate poverty from that country and address imbalances in distribution of income. Macapagal-Arroyo also has taken great care introduce new revenue measures to constrict expenditures of country.      inShare0 Philippines economic development has been very fast in recent years. It also stresses on high population growth. which came to about 4. However.

There has been an increase in expenditure in infrastructure of country. From service sector of Philippines economy contribution towards Philippines GDP is about 54. Though there has not been any negative impact on macroeconomic outlook of Philippines economy.8% to GDP. Main focus of Philippines has been to develop employment opportunities and lessen poverty. Long term Philippines economic development can only be possible if these areas are properly taken care of. pineapples. which in turn would augur well for economic development at Philippines. It has also faced challenges from regional competitors. Major industries that contribute to economic development of Philippines are wood products. 2008 of Philippines economy and 31. yet this nation has faced some setbacks because of various external reasons. Agricultural sector contributes about 13. bananas. cassavas.5% is real growth rate in gross domestic product. while official exchange rate of GDP was $172. narrowing debt and debt service ratios.9% is received from industry. .2 billion.3%. mangoes and pork. Per capita GDP as was recorded in 2008 was $3. sugarcane. Philippines economic development is also result of agricultural products. rice.3 billion. Economic prospects of Philippines have grown. which includes corn. Purchasing power parity of GDP for fiscal year 2008 was $327.be expected because of positive efforts in lowering fiscal deficits. eggs. beef and fish. coconuts.400 and 4.

petroleum refining and fishing. To learn more about the background policies.0 Neutral Effect on Wealth Creation 2.electronics assembly. has completed a study of his home country government's economic policies as compared to the MIEPA list of policies as outlined above.0 Perfectly Obstructionist to Wealth Creation [Rating scale copyright Mike P. McKeever.0 Midway between Perfect and Neutral 3. garments. 2005. The ratings herein are based on the following rating scale: RATING SCALE 5. Rungleigh Kor with the McKeever Institute of Economic Policy Analysis (MIEPA) in December of 2005. pharmaceuticals.0 Perfect Facilitation of Wealth Creation 4. chemicals. . Used herein with permission] To read a disclaimer about the analysis in this file. The study on Philippines is shown below. To read the analysis scroll through this site. scroll to the bottom of the file. footwear. click here Introduction and Policy Recommendations To learn more about MIEPA.0 Midway between Neutral and Obstructionist 1. a Philippine native who currently [December 2005] lives in San Francisco. click here Return to MIEPA's Home Page Rungleigh Kor. food processing. THE McKEEVER INSTITUTE OF ECONOMIC POLICY ANALYSIS PHILIPPINES: Economic Policy Analysis This site presents an analysis of the Philippine government's economic policies compared to a revised list of 34 economic policies as prepared by Mr.

0 10.5 4.0 POSSIBLE 15.0 10.0 6.0 15.0 2.0 15.0 10.0 1.0 15.0 6.0 PERCENTAGE 80 % 60 20 90 80 80 80 40 20 100 100 20 80 40 60 80 20 30 30 30 20 80 .0 2.0 12.0 10.0 10. Mr.0 15.0 15.0 15.0 3. RATING SUMMARY POLICY NUMBER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 RAW SCORE 4.0 10.0 3.0 10.0 4.0 4.0 4.0 4.0 15.0 2.0 12.0 15.0 10.0 4.0 1.0 6.5 1.0 2.0 8.5 1.0 3.0 1.0 4.0 15.0 2.0 4. studying in the US in December of 2005.0 10.0 10.0 13.Return to MIEPA's Home Page Philippines Comparison of Philippines' economic policies to MIEPA criteria as prepared by native student of Philippines.0 5.5 1.0 3.0 15.0 3.0 9.0 15. Rungleigh Kor.0 3.0 1.5 12.0 8.0 8.0 3.0 5.0 1.0 15.0 ADJUSTED SCORE 12.

0 4.23 24 25 26 27 28 29 30 31 32 33 34 TOTAL 2. http://www. Entrepreneurs do have to obtain a business permit from the city hall.0 5.0 2. anyone can build a business on a location they like. As such.0 10.usaid.0 2.html and personal 2.5 211. The citizens are free to move on their own discretion. the citizens are allowed to do anything they want in their own rights which is not a violation of the law.0 The Philippines is a democratic society through and through. which earns high marks for the Philippines on this policy.0 10.0% ===== Return to MIEPA's Home Page INDIVIDUAL POLICIES 1.0 5. Outside of the government�s laws. purchase goods from local and foreign markets and such.0 1. Nonetheless.0 ====== 10.0 2.0 10.0 1. This is exemplified by the ability of people to import foreign goods and sell them in the local market.0 4.0 5.0 5.0 4. but that is for merely validation purposes on the safety and cleanliness of what is intended to be sold.0 4.gov/locations/asia_near_east/countries/philippines/philippines.0 5. with the independence of the country came the independence of the people.5 1.0 9.wikipedia.5 4.5 1.0 4.5 4.0 . Freedom from internal control: 4.0 4.5 2. Freedom of Speech: 3.0 10.0 5.0 375.org/wiki/Philippines.0 2.5 97. although one may argue that this is the reason why so many crimes are committed in the Philippines. Source: http://en.0 ===== 40 20 20 20 100 90 40 90 90 20 80 90 56.0 ===== 4.0 10.0 10.0 4.0 5.0 1.

There are other �civil� restrictions present in the industry.wikipedia. Whatever they say. But. On the other hand however.sdsu. This revolution was heavily influenced by Catholic Christian priests. in its numerous islands.org/wiki/EDSA_Revolution. they can and will achieve freedom to speak their mind. For example. the government has an amount of influence on the media and the press which forbids the media to directly criticize the government beyond a certain extent (on contrast of USA�s Meet the Press).usmc. the Philippines apparently did not find the Freedom of Speech appealing. or maybe not as much. This is again due to the very low minimum wage. In a social view. . these are relatively minor things in the society.5 The Philippines. However. The Philippines gets a very low score for this policy. policemen often find accepting bribes more profitable than legally earning their paycheck. the thing the encompasses both viewpoints is the government. 4. and http://en. Land deeds. beliefs in the Virgin Mary.smallwars. ask any Filipino and he or she will tell you that the police force is nothing short of hypocritical.asp and personal 3. there is an apparent religious intolerance when discussing about Muslim. Lastly. Source: http://www-rohan. the government takes real estate to a whole new level by selling parts of its islands to private investors in an attempt to increase the economy. for when the people really want it. 2. value the right of private property.edu/faculty/rwinslow/asia_pacific/philippines. as well as the protection of property are clear and concise in the eyes of law. bombings and murders.quantico. Protestant and other religions� belief. The Philippines gets a neutral score for this policy. This may be because of the corrupt government or just the fact that the �true� crime rate may be hidden to mask the Philippine face from the world. In the economic stand point. there is freedom of speech as evident in the famous �non-bloody� revolutions of the Philippines.html. There have been many �expose� documentaries on which policemen are shown to be accepting bribes from passengers against ticketing them legally. because of the recent terrorist attacks from the Al-Queda group. bishops and most importantly. Effective Police Force: 1. it�s against the law.org/wiki/Abu_Sayyaf and personal. it has been repeatedly reported in the news that investors are having a hard time to start a business in the Philippines because of the criminal acts.For a country that is heavily influenced by the American government and constitution.0 Although the crime rate in the Philippines is reported to be lower than other industrialized countries. Moreover. the crime rate in the Philippines shot up in terms of kidnappings. EDSA 1. Moreover. Private Property: 4.mil/search/LessonsLearned/philippines/bearers. All titles of land are nationally recognized by the government. a soda company like Coke cannot say the name or compare it to Pepsi when in a commercial. It�s just that there is a possibility that these statements will only reach the deaf ears of the government. quickly dismissing them as inappropriate and sometimes heretic. the Philippines has less freedom of speech as evident in businesses. Source: http://en. Some of these laws include the Philippine Real Estate Acquisition and Disposition Laws.wikipedia. 3. http://www. the Abu Sayyaf.

The Philippines gets a high score for this policy. Bank of America and China Bank. Luzon is . Source: www.nokia. The Philippines for one. outnumbering the number of texts continental Europe does in a month compared to what the Philippines does in the day. As for rail. Communication Systems: 4.com and personal 7. Source: http://www.0 The Philippines certainly has the sufficient communication equipment in its possession. there is the Metro Rail Transit which travels vertically through the urban commercial areas and the Light Rail Transit which travels horizontally through the same areas.com/support. jeepneys and tricycles (a motorcycle with a modified sidecar attached to it).g. the more popular ones lasting more than half a century.0 There are numerous banks in the Philippines that are commercial. is considered to be the texting (cell phone messaging) capital of the world. most of it is only available in the urban areas. Transportation: 4. Commercial Banks: 4. In addition.com/mystery.htm 6.abs-cbnnews. Source: http://www. or take to the air via domestic flights mainly provided by the Philippine Airlines. The Philippines gets a marginal high score for this policy. most television sets have access to news and entertainment through its local channels. these banks are known to be stable. some of which are international. The public can opt to take ferries to travel from island to island.ph and www. It is indeed understandable why the country does not expand its technology to the rural areas (the country is exceptionally culturally diverse) but the country does take a hit on this from an economic standpoint.philestate. However. the Philippines supplies the public with its needs.com/ and http://mysearch. CNN). Moreover. These commercial banks share a same function of being a retail and corporate full public service bank which include loans and investment. thus earning the Philippines high marks for this policy. Radios are perhaps the most abundant of all media sources in the Philippines.ph/knowledge-base/foreignbanks.0 In all aspects of transportation.com.privateislandsonline. all of which are free from government influence. In addition to private transportation such as cars. every house is certain to have one. Newspapers are widely spread and faxing and the computer (internet) has already been introduced quite some time before. the downside to this is that it is not totally spread throughout the country. The only downside to this though is the absence of most of these facilities in the rural areas (Visayas and Mindanao regions are thought of to be rural oriented.php and http://www. not to mention the option to have cable access in order to see international news (e. The idea of private property and real estate is perhaps the most profitable business right now in the Philippines. people can opt to take public road transportation via taxis.htm 5.equitablepcib.which protect the right to private property. Some of these include Equitable-PCI bank.

it isn�t the education system that�s the problem. The reason why the media likes to emphasize on success stories so much is because it rarely happens. Moreover.0 �The rich get richer and the poor get poorer�. Source: Personal 10. That�s because people here can access this education easily. the people from this region should travel to the urban cities to fully use these public services. To put it in simple terms. Moreover. The Philippines gets high marks for this policy. it has a great chance to flourish and prosper.ph/ and http://www. the Philippines ensured its protection by enlisting themselves as a member in the United Nations on October 24.0 The last instance that the Philippines was under foreign control was back on World War Two. The Philippines gets a very low score for this policy.0 First of all. the Philippines was granted its freedom and was not occupied ever since. if this person decides to have a family. he or she can expect to have a job in retail at best. Education: 2. The �rags-to-riches� story only appears once a decade on average. the reason why the most of the populations is still very much under the poverty line is because of the inability to access a college level education. This statement could not be more true in the Philippines. there are schools within the Philippines that are globally recognized such as De La Salle University. The Philippines gets a relatively low score for this policy. it would not be long before the Philippines would gain its independence. which doesn�t pay that well to begin with. The Philippines gets a relatively high score for this policy. However. This is because of the numerous barriers in Philippine society like corrupt government and lack of access to substantial education. However. he or she would say that hard work is not by any means a guarantee that you will get rich. . If one asks any Filipino.railway-technology. in the Philippines.com. especially regarding financing.com/mapmachine/profiles/rp. Thus. when one only attains a secondary degree. Social Mobility: 1.com/ 8. Source: http://www. the economy only allows the minority of middle and upper class citizens (about 20%) to access higher education. on July 4th 1946. he or she cannot afford to send his or her child to higher education because of low wages. After initially being under the Americans. Then.philippineairlines. When the Americans defeated the Japanese however. Moreover.nationalgeographic. In short. it is the lack to access it by the majority. should the Philippine education be put into the United States.html and personal 9. Source: http://plasma.superferry.considered to be the urbanized region). it depends more on luck.com/projects/manila/ and http://www. the Philippines does have a high literacy rate of 96%. 1945. Freedom from outside control: 5. the events on WWII resulted in the Philippines as an American territory under Japanese control. This move gave the Philippines an international image and security in the midst of foreign countries.

com/count ry_images/philippines_map. 13.0 The Philippine Peso. is still very much in use within the country.0 When the Philippines was founded by the Spanish in the 16th century.google.philippines. Foreign currency transactions: 5. This is not because of any lack on the government�s part however.wikipedia. especially in the northern parts of the Philippines. Indeed. Up until today. As such. Border Control: 1. this presents a language barrier in the whole country.com/traveltips. Moreover. cannot possibly monitor transactions between these islands. and cannot be avoided.info/ and personal 12. certain disruptions like piracy and smuggling will always be present.philippine-islands. The Philippines gets high marks for this policy. simply put. all with their own languages.org/wiki/Philippine_Independence_Medal and http://www.travelmall.0 The Philippine monetary unit is the Philippine Peso.com/images?q=tbn:21QF8AjpU4QJ:www. but it still needs to be dealt with regards to an economic and business view. there are still many.un. The Philippines. Source: http://www. it is tragic. with the presence of foreign exchange facilities virtually everywhere. there is usually no need for conflict. even urbanized people speak their own �slang� if you will. Language Homogeneity: 2. albeit struggling. many tribes in the Philippines.org/Overview/unmember.0 The Philippines. Currency: 4. Foreign currency should and must be exchanged at local establishments in order to purchase products and services sold in the Philippines. they encountered few of the numerous ethnic tribes.html 11. it is because of the way the Philippines is geographically. However. Some believe that the reason for this is because the Philippines is an island country. . being a country with over 7000 islands. Source: http://www. It is the only currency accepted and used as money in the Philippines. does not have border control. The country gets a high score on this policy. Therefore.gif and personal.htm and personal 14. Moreover. most business institutions (with the exception of banks) require that purchases be only made with the Peso. the businesses usually provide foreign exchange booths in their establishments to tend to the needs of foreigners and locals alike. Source: http://images.Source: http://en. Nevertheless. The Philippines gets a very low score for this policy. Cultural. Even foreign businesses such as GAP or SONY in the Philippines only accept Philippine pesos. so isolation of the tribes could be very apparent in the 7000+ islands.filipina-women.

html and Personal 16. there are some local governments who try to make processes work in the rural areas.asp and Personal 17. Moreover. the political process is failing because of controversial politics and corruption. Institutional Stability: 4.ust. does have its disadvantages.shtml 15. the government is indeed trying to start institutions to handle the management. even in urban planning. The Philippines gets a neutral score for this policy. For one. The Philippines gets a high score for this policy. This shows that when these organizations were built. The Philippine government has tended to focus most of its energy on urban planning rather than rural issues. the planning was so effective that it is still successful and stable up until now. formed in 1989. That is still the same government in effect today.wikipedia.emailpinoy.ph/innerhome/countdown2011. so what more could be expected for rural issues? However.0 It would not be surprising for a person to find out that many of the Filipino institutions date back to 50. or maybe even 100 years back. because of the way the Philippine government is structured.ph/phildnet/About_Phildhrra/Phildhrra_Members/phildhrra_members. the University of Santo Tomas (Saint Thomas) was founded more than 4 centuries ago.This presents an unwanted diversity in economic terms. there is a harder implementation of the political process in these parts of the country. such as the Philippine Partnership for the Development of Human Resources in the Rural Areas. originating as far as the 19th � 20th century when the Philippines was under American control.edu. Unfortunately. Honest Government: 1. Source: http://www. Source: http://www. As for the government.org. technology between the urban and rural areas are very far apart.psdn. And without communication. the Philippines has taken the United States type of government. Source: http://en.0 . their system of teaching (especially in religion) is still being used today. For example. Political Effectiveness: 3. This makes communication between the government and the rural areas very hard to do. The Philippines gets points for effort.com/educational/philippines-tribes.org/wiki/Philippine_National_Police http://www. In more recent terms.0 The Philippines. being an island-country. and thus earns a low mark for the Philippines in this policy. is still working and serving the country amidst the intense political strive during the 90�s and even in the potential threat of revolution today. but loses the same because of their ineffectiveness in following through in striving for political effectiveness. Up until now. This was built by the Spanish who came to colonize the Philippines during the 17th century. productivity and advancement of the rural areas. the Philippine National Police.

5 The Philippine budget deficit in short.htm and Personal 20. most of the malls and stores spread throughout the whole of the Philippines sell everything from pirated music CD�s to pirated fake movie DVD�s. For at least the past three years. Therefore. one could expect that there is some sort of political control on the central bank. Moreover.html and Personal 18. the last two presidents (including the current one) have either been impeached or have faced impeachment. the Philippines has always had the notorious reputation of �politics first. but there is also a blatant atmosphere of defiance in most of the urban establishments. As such. she is still trying to cover up the case and delay or even annul it as much as possible. people second�. Central Bank: 1. Source: Personal 19. For example. the deficit has been going up at a rapid rate. The Philippines gets a low mark for this policy.21 B) while the budget is at an average of $1 B. Common Laws: 1. Even with the continuing rallying of the democratic people. The lack of enforcement for common laws gets low marks for the Philippines. especially with the Philippine government. The main evidence in this case is the taped recording of her phone conversation with one of the election officials. it seems that the government just turns a deaf ear to the cry of justice. Struggling with the poor economy of the Philippines doesn�t help the bank�s job either. In that sense. it is showing .5 There is certainly a set of common laws for everyone to follow in the Philippines. is very much bigger than the budget itself. The Philippines gets the lowest mark possible for this policy. is still facing an impeachment case against her for her being caught in the act of cheating in the elections. However. the Philippines has recently passed laws concerning piracy and the ban of sales of pirated/fake CD�s. even with this huge evidence AND the fact that she admitted to it already. Source: http://www. Source: http://newsfromrussia. It focuses too much on political issues and more often than not.The Philippines has the second most corrupt government in Asia and the 12th or 13th most corrupt in the world. If it�s any proof. these laws are also commonly disregarded by the citizens. puts its duties to the citizens aside. With that being said. the current president of the Philippines.net/phuket/general/articles/thaiphil. this central bank is expected to not function as an independent bank but to help finance the government deficits.5 The Central Bank of the Philippines is a government owned enterprise. reaching a �ceiling� mark of P180 B (roughly $3. However. These not only take the form of discreet robberies and theft. The Central Bank of the Philippines has a history of becoming too diversified. But. the central bank was relatively ineffective in developing financial markets and the bank just imposed a greater cost to society.com/world/2005/08/30/61958. But.trv. Domestic budget management: 1. Gloria-Macapagal Arroyo.

the Philippines gets a low score for this policy.biz-day. especially to the United States. These statistics come from the top news media in the country and is known to be very dependable.gov. the internet has provided many non-government sites for one to be able to fully gauge the Philippine economy. very low score for this policy.pids. Source: http://dirp.htm 21.gov. Source: http://www.com/read/energy/03_mar_05/f9cvzp/egat_employees_say_that_union_leader_must_go.html and http://money.7 years�.1 B Percent of Government budget going to debt payments: appx.pids. in the media. Moreover. These are of course published websites and highly commented by independent readers. Economic statistics: 4.html and personal 23.0 Infant mortality rate: 24.php?yyyy=2003&mon=09&dd=23&fil e=17 22.net/breakingnews/view_breakingnews. the Philippine debt is more than 50 times over the country�s GNP for a year. the debt is making up of more than half of the country�s annual budget and even that is relatively small compared to the size of the debt.ph/eismain. Government Debt: 1. Source: http://dirp. The statistics are as follows: Foreign Debt for 2004: $54.24 deaths/1. The Philippines gets a high score for this policy.024 B Foreign Debt for 2005: $56. Nevertheless. The Philippines gets a very.0 In the Philippines. 40% As shown. Banks have said that �the weighted average of maturity of such debt stands at 16. Moreover. there is usually a business section in the news where the exchange rate and stock exchanges are posted on a daily basis.9 B GNP for 2004: $1. However.80 B) so it may be an improvement in the government�s part.0 The Philippines has been notoriously known for its foreign debt.inq7. Protection of Public health and safety: 2.ph/eismain. the economic resources there are usually found in magazines made internationally such as Time magazine and the like.000 live births .signs dropping down to P100 B ($1.

Source: http://www. As for the tuberculosis cases. Environmental protection: 1. putrid smoke coming out of a factory. if one family of four should eat only one meal per day (average of P40 per person). it is hardly enough to compensate for everyday living. but he will most likely also see people throwing stuff into the river. tries to provide laws towards the protection of the environment. if one travels by car across a bridge.htm http://asia.peopleandplanet. Philippine Public health is relatively low. The Philippines gets a low score for this policy. In rural areas.net/doc. it is the 17th highest out of 165.php?id=102 (picture in the middle) and Personal. However. http://philenvlaw. For example. sometimes offering dramatically less.gov/ilab/media/reports/oiea/wagestudy/FS-Philippines.com/country/rp/Health 24. taxes and other expenses. This may be because of the lack of enforcement of the wages in the country. The Philippines isn�t known for its public health and as far as the UN standards go. if a foreigner does travel to the Philippines. or approximately $5. That�s excluding housekeeping. In urban areas.html and personal 25.news.000: 226V Tuberculosis immunization: 87%V Life Expectancy from birth: 68.0 yearsV The Philippines infant mortality rate is the 84th highest out of 179 country statistics collected by the UN. despite the relatively high immunization rate.0 . especially on mountains.dol.blogspot. there are always signs of deforestation. it is almost certain that you will see black. as with any other government. Life expectancy is 101st out of 175. thus polluting the air. 26. The Philippine economy is not enough to give people higher wages or even lower prices.00 every day.0 The Philippine government. because of the huge amount of garbage covering the sign. most company owners do not follow this policy. Moreover.Tuberculosis cases . The Philippines gets a very low score for this policy.com/ and http://www. The �no throwing of garbage� signs cannot be seen. the �protection� is yet to be seen. The Philippines gets a very low score for this policy.0 The Philippines have already set a minimum wage policy of P198.nationmaster.yahoo. This is so because of the lack of authoritative backing on the environmental projects and laws. High Wage Policies: 1.Per 100. Approximately 80% of the Philippine population lies below the poverty line because of the lack of work or the lack of good wages. not only will he see the massive amount of garbage on a river. Strong Army: 1. then it would be equal to P160 already.com/050103/4/1u2s1. The wages in companies sometimes go as low as P100 for blue-collar and white-collar workers. However. even if the minimum wage policy does get followed. At a distance. Source: http://www.

they have depended on international security agreements and organizations.php?index=1&story_id=30341 27. However. therefore gives the Philippines very high marks for this policy. the Philippines has also taken measure into insuring and propagating the export of its products through a company called the PhilEXIM. along with many more functions. Protection of foreign currency earning enterprises: 4. even though a third world country. that is no excuse to not provide enough funds to improve military equipment to at least protect the country from itself.2 B Military Budget: $0.0 GDP (as of Q2 2005) = $23. has managed to get very close to the ideal balance of trade and GDP. insure and protect the companies that wish to export their product. The Philippine military has been using sub-par weapons and technologies since the 1990�s and as the 21st century came by. credit and other services to licensed businesses.inq7.467 B / $ 23. . The Philippines gets a very low mark for this policy.gov. this does not excuse the apparent disregard of the Philippine government towards the growth of the military. nothing has changed in terms of advancement.N. This government controlled company�s objective is to encourage.net/nation/index. Philippine Budget for 2005: appx. Indonesia or Japan.06 B x 100 = 32% As seen here. They also give technical assistance in the preparation and execution of development or expansion programs.78 B Percentage: 4. Foreign trade impact: 5.ph/ 28.5 The world is turning to a very globalized world where export and import are becoming a very powerful tool for generating profit. the Philippines.462 B Import: $4. However. This.census. Source: http://news.005 B Total: $7.81% Approximately 5% goes into the military budget. The Philippines gets a perfect score for this policy. Thus.The Philippines is a very small country compared to its neighbors in Asia like China. Thus. Source: http://www. $16. The reason that the Philippine government gives so little is because the country is currently experiencing a fiscal crisis. They provide insurance cover.06 B Export: $3. like the U.

However. there are many advantages of keeping close such a close contact with a country. One election in a city could be different from the other. the local economy suffers because it is paying more for a big amount of imports and receiving less for small amount of exported products.gov. When a person makes his first million. from the day its run to the rules of election. Management of foreign currency budget: 2.asp and http://www.462 B Imports: $4. but their rags-to-riches success stories as well. especially if he or she is young. being a third-world country. Therefore. In short. Layers of Collective Action: 4. Source: http://www.php 29. but more importantly.gov. Statistics as accurate as June/July 2005: Exports: $3. 1946.philexim.ph/index. But. Pro Business Climate: 4.gov.5 At first glance. but by using his talents. These local governments generate their own funds from taxes from private businesses or other financial institutions. and these elections are separate from that of the central government. most of it are American or Japanese products. the officials in these local governments get elected by the people in that city. The Philippines receive low scores for this policy. has only a handful of people belonging to the �elite� society.0 The Philippines has always been an Americanized country ever since its independence on July 4th. the Philippine Government may seem hierarichal in terms of its form. the Philippines has been importing too much goods into its economy. These elites are of course rich.Source: http://zeus. there are some big disadvantages to being �too� Americanized.005 B Balance of Trade: -$653 M As shown here. Because both major sources of import have a higher economy than the Philippines. Another story is that of someone who started out with no capital whatsoever.makati. In addition. not only because of the money they made. they are featured on either the television or the newspaper. each city in the Philippines has its own local government.ph/ and Personal 30. Of course. These people are then looked up to by the citizens of the country. got his first million at the age of 26.php 31.gov.5 The Philippines. these people are placed in a high social status because of the simple fact that they live a very good life in a poor country. Moreover. SM. Source: http://www. These kinds of people are revered . One such story is that of a man who started a humble shoe store and years later.ph/default.census.ph/govlinks/localgov. they started a business that grew and grew. The Philippines get high marks if not a perfect score for this policy. each city�s local government can stand on its own. he now owns the biggest line of malls in the country.

these agricultural businesses are clearly only for aesthetic value and nothing more.asp 33. Thus.inq7. However. Protection of domestic enterprises from government mandated costs: 4. Source: Personal and http://www. For example.state. practical needs of the consumers. the businesses that generate the most impact in the Philippines are that outside the necessities of the citizens.by the rest of the country. Also. Source: http://usembassy. its safe to say that these government enterprises get their money elsewhere. just not themselves.gov. not even monetary aid for the unemployed and aged.0 Government owned businesses and enterprises in the Philippines are plenty. Surprisingly. to enterprises which clearly can�t run on its own. that would warrant the . but farmers and the like have always been known to be poor because they have no one to turn to sell their products. Government enterprises: 1. George W. but they don�t go any further than that.0 The Philippines.gov/posts/rp1/wwwhr005. the Philippines gets high marks for its unity for security measures with the United States. the Abu Sayyaf. especially on terrorism. the US has been sending its troops to Philippine soil to help stop the terrorist attacks done by the Al-Queda group. most of the government owned businesses are agricultural-based. the Philippine president. the Philippines was one of the first to send its troops to the Middle East to help fight the war. Bush and Miss Gloria Macapagal-Arroyo. which should be good. during the war on Iraq.html 34. for at least the past 50 years. has been no stranger in the eyes of the American Government.5 The Philippine government does not usually intervene with the policies of private businesses. The majority of these businesses attend to the everyday needs of the Filipino.ph/govlinks/gocc. the US � Philippine mutual defense treaty has been strenghthened quite recently because of the similarity of both president�s views.php?yyyy=2005&mon=09&dd=11&file =2 and Personal 32. be it environmental or social. International Security Agreements: 4. Because of this treaty. Therefore. They have enjoyed close ties with each other. As a result. In turn. There are many more examples of mutual defense between the two countries. Of course. Source:http://money. the government has asked for a required level of cleanliness and security in businesses. but they have very poor maintenance. There are also no conditions. the social security system in the Philippines is very different form that of the US. especially now between Mr. Restaurants for example always have to provide clean water and surroundings. The Light Rail Transit Company does provide transportation. From businesses that are not felt by its citizens.net/topstories/view_topstories. who in turn start their own businesses in hope that they too will end up with their own success story. but certainly nothing out of the ordinary. The Philippines receive high marks for this policy. only a handful of these businesses are felt by the citizens. The Philippines earns low marks for this policy. There are virtually no benefits to be had from the Philippine SSS.

Source: Personal DISCLAIMER All the information and conclusions in each country analysis are solely the responsibility of the individual student and have not been verified.com CONTACT MIEPA: ECONOMIC PLANNING AND POLICY Philippines Table of Contents .need of new and unheard of policies in domestic enterprises. Use them at your own risk as interesting supplemental information only instead of seasoned judgements about the policy factors contained herein. corrected. The Philippines receive high marks for this policy. To learn more about other countries.mkeever. checked for copyright infringement or evaluated in any way by MIEPA or Mike P. forward your request to MIEPA and the student will be notified of your interest. You are solely responsible for the results of any use you make of the information and conclusions in these studies. if you wish to contact them for any reason. click to other files here: Return to MIEPA's Home Page CONTENTS OF SITE Return to MIEPA's Home Page list of country studies Introduction and Policy Recommendations Winning Essays: There Are Alternatives Project (TAA) Essay: Balanced Trade: Toward the Future of Economics Moral Economics McKEEVER INSTITUTE of ECONOMIC POLICY ANALYSIS Web address: http://www. McKeever. Each student has granted permission for his or her work to be displayed here under his or her own name or wishes to remain anonymous and have either created a pen name or used no name at all.

The Philippines has traditionally had a private enterprise economy both in policy and in practice. engaging in project planning and implementation. as the consequence of achieving a sustainable economic growth. the National Economic Council. labor-intensive infrastructure projects. the authority assumed the mandate both for macroeconomic planning that had been undertaken by its predecessor organization. market-oriented fiscal and monetary polices. and improving the efficiency and effectiveness of the civil service. previously undertaken by the Presidential Economic Staff. and equitable distribution of income were produced by the Marcos administration for 1974-77. and by the Aquino administration for 1987-92. was to be achieved as the result of a dynamic economic expansion within an appropriate policy environment that emphasized laborintensive production. attainment of fiscal responsibility and monetary stability. The government intervened primarily through fiscal and monetary policy and in the exercise of its regulatory authority. generation of more productive employment. Equity. Growth was encouraged largely through the provision of infrastructure and incentives for investment by private capital. Proper management of the country's . hence. particularly in rural areas." and state participation in the economy was to be minimized and decentralized. National Economic and Development Authority plans calling for the expansion of employment. strengthening the collective bargaining process. a derivative goal. the government was "to encourage and support private initiative. trickle-down fashion. The private sector was described as both the "initiator" and "prime mover" of the country's development. The National Economic and Development Authority Medium-Term Development Plan. and reduction of unemployment and mass poverty. provision of social services. maximization of growth. achieving a more liberal trade policy based on comparative advantage. and 1983-88. decentralization of power and decision making. and expanding education and skill training. Development Planning The responsibility for economic planning was vested in the National Economic and Development Authority. Nevertheless. as well as better enforcement of government laws and regulations. the goals and objectives were to be realized. Economic planning was limited largely to establishing targets for economic growth and other macroeconomic goals. The plan also involved implementing more appropriate. albeit a growth more focused on the agricultural sector. and advising the government in the use of capital funds for development projects. as with previous plans. Goals included alleviation of poverty. Goals were to be achieved through agrarian reforms. direct state participation in economic activity has generally been limited. and attainment of sustainable economic growth. undertaking rural. providing social services. and project planning and implementation. The Aquino government set a major policy initiative of consolidating and privatizing government-owned and government-controlled firms. promotion of equity and social justice. 1978-82. Created in January 1973. 1987-92 reflected Aquino's campaign themes: elimination of structures of privilege and monopolization of the economy. Although expansion of public sector enterprises occurred during the Marcos presidency.

external debt to allow an acceptable rate of growth and the establishment of a "pragmatic," development-oriented foreign policy were extremely important. Economic performance fell far short of plan targets. For example, the real GNP growth rate from 1987 to 1990 averaged 25 percent less than the targeted rate, the growth rate of real exports was one-third less, and the growth rate of real imports was well over double. The targets, however, did provide a basis for discussion of consistency of official statements and whether the plan growth rates were compatible with the maintenance of external debtrepayment obligations. The plan also set priorities. Both Aquino's campaign pronouncements and the policies embodied in the planning document emphasized policies that would favorably affect the poor and the rural sector. But, because of dissension within the cabinet, conflicts with Congress, and presidential indecisiveness, policies such as land and tax reform either were not implemented or were implemented in an impaired fashion. In addition, the Philippines curtailed resources available for development projects and the provision of government services in order to maintain good relations with international creditors. The Philippine government has undertaken to provide incentives to firms, both domestic and foreign, to invest in priority areas of the economy since the early 1950s. In 1967 an Investment Incentives Act, administered by a Board of Investments (BOI), was passed to encourage and direct investment more systematically. Three years later, an Export Incentives Act was passed, furthering the effort to move the economy beyond importsubstitution manufacturing. The incentive structure in the late 1960s and 1970s was criticized for favoring capital-intensive investment as against investments in agriculture and export industries, as well as not being sufficiently large. Export incentives were insufficient to overcome other biases against exports embodied in the structure of tariff protection and the overvaluation of the peso. The investment incentive system was revised in 1983, and again in 1987, with the goal of rewarding performance, particularly exporting and labor-intensive production. As a results of objections made by the United States and other industrial nations to export-subsidy provisions contained in the 1983 Investment Code, much of the specific assistance to exporters was removed in the 1987 version. The 1987 Investment Code delegates considerable discretionary power over foreign investment to the government Board of Investments when foreign participation in an enterprise exceeds 40 percent. Legislation under consideration by the Philippine Congress in early 1991 would limit this authority. Under the new proposal, foreign participation exceeding 40 percent would be allowed in any area not covered by a specified "negative list."

Fiscal Policy
Historically, the government has taken a rather conservative stance on fiscal activities. Until the 1970s, national government expenditures and taxation generally were each less than 10 percent of GNP. (Total expenditures of provincial, city, and municipal governments were small, between 5 and 10 percent of national government expenditures in the 1980s.) Under the Marcos regime, national government activity increased to between

15 and 17 percent of GNP, largely because of increased capital expenditures and, later, growing debt-service payments. In 1987 and 1988, the ratio of government expenditure to GNP rose above 20 percent. Tax revenue, however, remained relatively stable, seldom rising above 12 percent of GNP. Chronic government budget deficits were covered by international borrowing during the Marcos era and mainly by domestic borrowing during the Aquino administration. Both approaches contributed to the vicious circle of deficits generating the need for borrowing, and the debt service on those loans creating greater deficits and the need to borrow even more. At 5.2 percent of GNP, the 1990 government deficit was a major consideration in the 1991 standby agreement between Manila and the IMF. Over time, the apportionment of government spending has changed considerably. In 1989 the largest portion of the national government budget (43.9 percent) went for debt servicing. Most of the rest covered economic services and social services, including education. Only 9.1 percent of the budget was allocated for defense. The Philippines devoted a smaller proportion of GNP to defense than did any other country in Southeast Asia. The Aquino government formulated a tax reform program in 1986 that contained some thirty new measures. Most export taxes were eliminated; income taxes were simplified and made more progressive; the investment incentives system was revised; luxury taxes were imposed; and, beginning in 1988, a variety of sales taxes were replaced by a 10 percent value-added tax--the central feature of the administration's tax reform effort. Some administrative improvements also were made. The changes, however, did not effect an appreciable rise in the tax revenue as a proportion of GNP. Problems with the Philippine tax system appear to have more to do with collections than with the rates. Estimates of individual income tax compliance in the late 1980s ranged between 13 and 27 percent. Assessments of the magnitude of tax evasion by corporate income tax payers in 1984 and 1985 varied from as low as P1.7 billion to as high as P13 billion. The latter figure was based on the fact that only 38 percent of registered firms in the country actually filed a tax return in 1985. Although collections in 1989 were P10.1 billion, a 70 percent increase over 1988, they remained P1.4 billion below expectations. Tax evasion was compounded by mismanagement and corruption. A 1987 government study determined that 25 percent of the national budget was lost to graft and corruption. Low collection rates also reinforced the regressive structure of the tax system. The World Bank calculated that effective tax rates (taxes paid as a proportion of income) of lowincome families were about 50 percent greater than those of high-income families in the mid-1980s. Middle-income families paid the largest percentage. This situation was caused in part by the government's heavy reliance on indirect taxes. Individual income taxes accounted for only 8.9 percent of tax collections in 1989, and corporate income taxes were only 18.5 percent. Taxes on goods and services and duties on international transactions made up 70 percent of tax revenue in 1989, about the same as in 1960. The consolidated public sector deficit--the combined deficit of national government, local

government, and public-sector enterprise budgets--which had been greatly reduced in the first two years of the Aquino administration, rose to 5.2 of GNP by the end of 1990. In June 1990, the government proposed a comprehensive new tax reform package in an attempt to control the public sector deficit. About that time, the IMF, World Bank, and Japanese government froze loan disbursements because the Philippines was not complying with targets in the standby agreement with the IMF. As a result of the 1990-91 Persian Gulf crisis, petroleum prices increased and the Oil Price Stabilization Fund put an additional strain on the budget. The sudden cessation of dollar remittances from contract workers in Kuwait and Iraq and increased interest rates on domestic debt of the government also contributed to the deficit. Negotiations between the Aquino administration and Congress on the administration's tax proposals fell through in October 1990, with the two sides agreeing to focus on improved tax collections, faster privatization of government-owned and government-controlled corporations, and the imposition of a temporary import levy. A new standby agreement between the government and the IMF in early 1991 committed the government to raise taxes and energy prices. Although the provisions of the agreement were necessary in order to secure fresh loans, the action increased the administration's already fractious relations with Congress.

Monetary Policy
The Central Bank of the Philippines was established in June 1948 and began operation the following January. It was charged with maintaining monetary stability; preserving the value and covertibility of the peso; and fostering monetary, credit, and exchange conditions conducive to the economic growth of the country. In 1991 the policy-making body of the Central Bank was the Monetary Board, composed of the governor of the Central Bank as chairman, the secretary of finance, the director general of the National Economic and Development Authority, the chairman of the Board of Investment, and three members from the private sector. In carrying out its functions, the Central Bank supervised the commercial banking system and managed the country's foreign currency system. From 1975 to 1982, domestic saving (including capital consumption allowance) averaged 25 percent of GNP, about 5 percentage points less than annual gross domestic capital formation. This resource gap was filled with foreign capital. Between 1983 and 1989, domestic saving as a proportion of GNP declined on the average by a third, initially because of the impact of the economic crisis on personal savings and later more because of negative government saving. Investment also declined, so that for three of these years, domestic savings actually exceeded gross investment. From the time it began operations until the early 1980s, the Central Bank intervened extensively in the country's financial life. It set interest rates on both bank deposits and loans, often at rates that were, when adjusted for inflation, negative. Central Bank credit was extended to commercial banks through an extensive system of rediscounting. In the 1970s, the banking system resorted, with the Central Bank's assistance, to foreign credit on terms that generally ignored foreign-exchange risk. The combination of these factors

Although the short-term response seemed favorable. referred to as "expanded commercial banks" or "unibanks. whereas rates on savings deposits were only slightly more than 4 percent. At the start of the 1980s. there was little long-term change. in 1988 interest rates on six-month time deposits of large depositors averaged almost 13 percent. Philippine banks offered significantly different rates for deposits of different amounts. particularly the growth of long-term saving.2 in the 1970s. The dependence of the banking system on funds from the Central Bank at low interest rates. around 0. for example. Efforts were made to broaden the capital base of banks through encouraging mergers and consolidations. Access to resources of this sort. In addition to large intermediation margins. in excess of 20 percent. the government levied both a 5 percent gross tax on bank receipts and a 20 percent tax on deposit earnings. broadly defined to include savings and time deposits. rose to 0. In 1988. the difference between lending and borrowing rates.mitigated against the development of financial intermediation in the economy. The ratio of the country's money supply.8 percent. going from 21 percent to 25 percent. the proportion of Central Bank loans and advances to governmentowned financial institutions increased from about 25 percent of the total in 1970 to 45 percent in 1981-82. Borrowings of the government-owned Development Bank of the Philippines from the Central Bank increased almost 100-fold during this period." was created to enhance competition and the efficiency of the banking industry and to increase the flow of long-term saving. contributed to large intermediation margins. and borrowed extensively to cover budget deficits and to absorb excess growth in the money supply. Qualifying banks-those with a capital base in excess of P500 million--were allowed to expand their operations into a range of new activities.3 in 1983. combining commercial banking with activities of investment houses. has been cited as a contributing factor to the financial chaos that occurred in the 1980s. loan rates averaged 16. and the rate differential for foreign currency deposits of all available maturities was within a single percentage point range. enabled Marcos cronies to obtain loans and the later bailouts that contributed to the financial chaos. but then fell again to just above 0. the government introduced a number of monetary measures built on 1972 reforms to enhance the banking industry's ability to provide adequate amounts of long-term finance. Rates offered on six-month and twelve-month time deposits differed by only 1 percentage point. For example. to GNP.2 in the late 1980s. The functional division among other categories of banks was reduced. and that between rural banks and thrift banks eliminated. in conjunction with the discretionary authority of the bank. A new class of banks. Monetary and fiscal policies that were set by the government in the early 1980s. so that by January 1983 all interest rate ceilings had been abolished. In 1990 the reserve requirement was revised upward twice. In addition. in conjunction with subsidized interest rates. Interest rates were deregulated during the same period. whereas small savers earned only 4 percent on their savings. and rediscount rates were set in relation to the cost of competing funds. This ratio was among the lowest in Southeast Asia. Rediscounting privileges were reduced. Because . For instance. The Central Bank traditionally maintained relatively high reserve requirements (the proportion of deposits that must remain in reserve).

and the current account was in surplus. the Philippine National Bank and the Development Bank of the Philippines. Interest rates of time deposits also were bid up to reduce capital flight. the probability of interest rate discrimination by the commercial banking industry between small. The government designated that about 30 percent of the original . This discrimination coupled with the large intermediation margins. The Central Bank released funds to stabilize the financial situation following a financial scandal in early 1981. plus 399 other nonperforming assets transferred to the government by the Philippine National Bank and the Development Bank of the Philippines. The money was then repurchased by the Treasury and the Central Bank--the so-called Jobo bills. and after a coup attempt in 1989. expanding during economic and political turmoil and then contracting when the Philippines tried to meet IMF requirements. was allocated to public sector enterprises--government-owned or government-controlled corporations--in the form of equity infusions. was quite high. less-informed depositors and more affluent savers. 1984. gave rise to charges by Philippine economists and the World Bank that the Philippine commercial banking industry was highly oligopolistic. and other government entities. Before the 1969. the growth rate of the money supply was very tight. was a heavy legacy of the Marcos years. and 1986 elections. subsidies. By early 1991. the money supply grew rapidly. rates that peaked in October 1984 at 43 percent and were approaching 35 percent in late 1990. "to those who held positions of power and conflicting interest under Marcos. however. Success. Money supply growth has been highly variable. Burdened with 296 public sector enterprises. in 1984 and 1985. the Aquino administration established the Asset Privatization Trust in 1986 to dispose of government-owned and government-controlled properties. in order to regain access to external capital. after the onset of an economic crisis in late 1983." The proliferation of inefficient and unprofitable public sector enterprises and bad loans held by the Philippine National Bank. Privatization When Aquino assumed the presidency in 1986. and loans. The interest paid on this debt necessitated even greater borrowing. fifty-seven enterprises were sold wholly or in part for a total of about P6 billion. Aquino also found it necessary to write off P130 billion in bad loans granted by the government's two major financial institutions.3 billion. the Development Bank of the Philippines. P31 billion. was obtained at the expense of a steep fall in output and high unemployment. By contrast. named after then Central Bank Governor Jose Fernandez--at high interest rates. The flooding of the economy with money prior to the 1986 elections was one reason why the newly installed Aquino administration chose to scrap the existing standby arrangement with the IMF in early 1986 and negotiate a new agreement. slightly more than 25 percent of the government's budget.savings deposits accounted for approximately 60 percent of total bank deposits and alternatives for small savers were few. very high inflation abated. the Asset Privatization Trust had sold 230 assets with net proceeds of P14. Another seventy-four public sector enterprises that were created with direct government investment were put up for sale. IMF dictates were met.

public sector enterprises be retained and expected to abolish another 20 percent. the free encyclopedia Jump to: navigation. 2010 Vice Teofisto Guingona (2001-2004) . search Presidency of Gloria Macapagal-Arroyo 14th President of the Philippines In office January 20. There was widespread controversy over the fairness of the divestment procedure and its potential to contribute to an even greater concentration of economic power in the hands of a few wealthy families. 2001 – June 30. Presidency of Gloria Macapagal-Arroyo From Wikipedia.

Her term ended on June 30. Walsh School of Foreign Service Assumption College Alma mater Ateneo de Manila University University of the Philippines School of Economics Profession Economist Religion Signature Website Official website Roman Catholicism The Presidency of Gloria Macapagal-Arroyo spans from January 20. Philippines Lakas-Kampi-CMD (2009–present) Other LDP (Before 1998) political KAMPI (1997–2009) affiliations Lakas-CMD (1998–2009) Spouse(s) Jose Miguel Arroyo Edmund A. 1947 (age 64)[1] San Juan City. Contents [hide] .President Noli de Castro (2004-2010) Preceded by Joseph Estrada Succeeded by Benigno Aquino III Personal details Born Political party April 5. 2001 to June 30. 2010. 2010. pursuant to the provisions of the 1987 constitution.

2.2 2001 Midterm Elections o 4.2 ASEAN Summit o 7.3 2007 Midterm Elections o 5.3 Executive Order No.1 Iraq War o 7.2 Gallery  2. 464 and calibrated preemptive response o 6.5 Northrail Controversy 10 End of Presidency 11 References 12 External links .2.2 State of Emergency o 5.            1 Overview 2 Administration and Cabinet o 2.1 Economy o 6.8 Congressional bid in Pampanga 6 Domestic policies o 6.6 Estrada pardon o 5.2 Charter change o 6.2.2.4 Council of Women World Leaders 8 Pardons 9 Controversies o 9.3 Economic  2.1 Succession o 4.1 Inauguration o 5.1 Other cabinet-level and high posts o 2.3 Philippines-Japan Trade Deal o 7.4 Environment and Energy  2.5 Amnesty proclamation 7 Foreign Policies o 7.2 Domestic  2.7 Martial Law o 5.2.2 Hello Garci Controversy o 9.5 Foreign Affairs and National Security 3 Supreme Court Appointments 4 First Term (2001-2004) o 4.1 Malacañang Staff  2.1 Fertilizer Fund Scam o 9.4 Human rights o 6.4 Controversial Dinner party and Ondoy o 9.5 Impeachment complaints o 5.3 National Broadband Network Scandal o 9.3 Oakwood mutiny o 4.4 The Manila Peninsula Rebellion o 5.4 2004 Presidential Election 5 Second Term (2004-2010) o 5.

looking back on her first year as president. The Macapagal-Arroyo administration received another black mark when Mike Arroyo was accused of receiving bribes from a telecommunications company seeking government-approved contracts.[edit] Overview This section does not cite any references or sources. Macapagal-Arroyo opted to return to her girlhood home. Unsourced material may be challenged and removed.Gloria Macapagal-Arroyo President Arroyo. with some claiming that Philippine military officers received a portion of the funds. 2001. Please help improve this section by adding citations to reliable sources. On the economic front. My father is my role model. she cited the country's economic survival as her greatest achievement. although she remained well aware that much work lay ahead. and God will take care of the rest. I am prepared. Her administration was embarrassed. 2001. As she anticipated this event. to have a . She was also accused of providing special treatment to the jailed former president. she told Time International in a November 2000 interview that she planned to look to two predecessors as examples: "I will follow my father's footsteps in doing what is right. Macapagal-Arroyo developed a blueprint to lift the Philippines out of its financial crisis. following the 2nd EDSA revolution that ousted democratically-elected President Joseph Estrada. and Macapagal-Arroyo was thrust into the ongoing battle between the Philippine government and the rebel forces. In 2002. PGMA Madame President Gloria Macapagal-Arroyo assumed the presidency on January 20." Although her recent predecessors had lived outside Malacañang Palace. known as Abu Sayyaf. (January 2011) Presidential styles of Gloria Macapagal-Arroyo Reference style Spoken style Alternative style Her Excellency. The new president faced numerous challenges. according to The Power and the Glory. when it was revealed that several of the hostages families paid ransom to the kidnappers directly. My living role model is Cory Aquino. however. President MacapagalArroyo. Islamic militants abducted 20 hostages at a resort in the province of Palawan. On May 27. "We have been able to survive. Several other kidnappings by various criminal gangs followed. Macapagal-Arroyo officially adopted a hardline "no ransom" response to the rebels and launched military operations against them. including an unstable economy and violent protests launched by Estrada's supporters.

I am a very focused person. After former president Estrada declared the Philippines a "nation in distress. I don't focus on laurels." She also used the address to reiterate her pledge to relieve poverty and promote economic growth. Even on the day I was sworn in as president. Macapagal-Arroyo honored the rebels' demands to pull all Filipino troops out of the country." she said. In her inaugural address. provide inexpensive medicine for the poor. In defiance of the United States government's requests. Macapagal-Arroyo stated in a State of the Nation address. edition of the International Herald Tribune.' I said. and unite the country. "Let us set aside political bickering and politicking for at least one year. on feeling secure.February 2001 Agrarian Reform Secretary Hernani Braganza Rene C. 'Wow. Panganiban ." as reported on CNN.higher growth rate than our neighbors. "Our nation must embrace a vision of economic opportunity. Macapagal-Arroyo was elected to a full six-year presidential term in May 2004. She edged out her closest competitor. social cohesion and always an everdemocratic faith. 2004. as quoted in the July 1. I didn't say. Macapagal-Arroyo made international headlines in July after a Filipino driver was kidnapped by militant rebels in war-torn Iraq.. Filipino actor Fernando Poe Jr. I am now president. "I dwell on what must be done. Pangandaman Agriculture Secretary Domingo F. Villa Nasser C. feeling comfortable. [edit] Administration and Cabinet Title President Head of State Head of Government Name Term Gloria Macapagal-Arroyo 2001–2010 Vice President Teofisto Guingona Noli de Castro 2001–2004 2004–2010 2001–2003 2003–2005 2005–2010 January . 2004. balance the budget. she called for an end to political in-fighting in her own nation in order to turn the focus to economic recovery. Macapagal-Arroyo vowed to create up to 10 million jobs in the next six years. by only one million votes. 'What should I do now?' " Despite the obstacles and various charges of impropriety directed at those close to her. improve tax collection.com on July 23." she stated. Later that month.

Lotilla Angelo Reyes Environment and Natural Resources Secretary Heherson Alvarez Elisa Gozun Mike Defensor Angelo Reyes Lito Atienza 2001–2002 2002–2004 2004–2005. 2006–2010 2005–2006 2001–2005 2005–2006 2006–2010 2001–2003 2003–2004 2004–2005 2005–2006 2006–2010 2010–2010 Jan. Montemayor Luis Lorenzo Arthur Yap Domingo F.Leonardo Q. Panganiban Budget and Management Secretary Emilia T. M. Boncodin Romulo Neri Rolando Andaya Education Secretary Raul Roco Edilberto de Jesus Florencio Abad Fe Hidalgo (acting) Jesli Lapus Mona Valisno Energy Secretary Jose Isidro Camacho Vincent Perez Raphael P. 2001-June 2001 2001–2004 2004–2007 2007–2010 2001–2003 2003–2004 2004–2006 2006–2007 2007–2010 .

Tomas . 2002 2001–2002 2002–2003 2003–2004 2004–2010 2001–2004 2004–2009 2009–2010 2001–2004 2004–2006 2006–2010 2001–2003 2003 2003–2004 2004–2009 2009–2010 2010 Foreign Affairs Secretary Gloria Macapagal Arroyo (acting) Teofisto Guingona Blas Ople Delia Albert Alberto Romulo Health Secretary Dr. Gutierrez Raul M.2001-Feb. III Esperanza Cabral Interior and Local Government Secretary Joey Lina Angelo Reyes Ronaldo Puno Justice Secretary Hernando Perez Simeon Datumanong Merceditas N.Finance Secretary Alberto Romulo Jose Isidro Camacho Juanita Amatong Margarito Teves 2001 2001–2003 2003–2005 2005–2010 Jan. Manuel Dayrit Francisco Duque.2001. Gonzalez Agnes Devanadera Alberto Agra Labor and Employment Secretary Patricia Sto.

Jr.June 2007 2001–2010 2001–2005 2001–2004 2004 2004–2010 2001–2003 2001–2004 National Economic and Development Authority Romulo Neri Augusto Santos Romulo Neri Ralph Recto Public Works and Highways Secretary Simeon Datumanong Bayani Fernando Florante Soriquez Hermogenes E. Bonoan Science and Technology Secretary Social Welfare and Development Secretary Tourism Secretary Estrella Alabastro Corazon Soliman Richard Gordon Roberto Pagdanganan Joseph Ace Durano Transportation and Communications Secretary Trade and Industry Secretary Pantaleon Alvarez Mar Roxas [edit] Other cabinet-level and high posts  Executive Secretary o Renato de Villa (2001) . Manuel M. Ebdane..National Defense Secretary Orly Mercado Angelo Reyes Eduardo Ermita January–February 2001 2001–2003 2003–2004 2001–2005 2005–2006 2006–2008 2008–2009 2001–2003 2003 2003–2005 2005–2007. 2007–2010 February .

July 2002) o Milton Alingod (2003) o Hernani Braganza (2003–2004) o Ignacio Bunye (2004–2008) Presidential Spokesman o Rigoberto Tiglao (2001–2002) o Ignacio Bunye (2002–2008) Presidential Chief of Staff o Rigoberto Tiglao (2002–2004) o Michael Defensor (2006–2007) o Joey Salceda (2007) Presidential Management Staff o Rigoberto Tiglao (2004–2006) o Arthur Yap (2006) o Cerge Remonde (2006–2010) Metropolitan Manila Development Authority Chairman o Benjamin Abalos (2001–2002) o Bayani Fernando (2002–2009) o Oscar Inocentes (2009–2010) o o o o [edit] Gallery [edit] Malacañang Staff  Some of the Malacañang Staff  Alberto Romulo. Executive Secretary (2001-2004) .      Renato Corona (acting) (2001) Alberto Romulo (2001–2004) Eduardo Ermita (2004–2010) Leandro Mendoza (2010) National Security Adviser o Roilo Golez (2001–2004) o Norberto Gonzalez (2004–2010) Press Secretary o Silvestre Afable (April .

Head of the Presidential Management Staff (2006) . Eduardo Ermita. Chief of Staff (2006-2007)  Joey Salceda. Press Secretary (2004-2008)  Mike Defensor. Executive Secretary (2004-2010)  Ignacio Bunye. Chief of Staff (2007)  Arthur Yap.

Secretary of Agriculture (2004-2005. Gonzalez. 2006-2009)  Raul Roco. Raul M. Secretary of Education (2001-2002)  Jesli Lapus. Chief Presidential Legal Counsel (2009-2010) [edit] Domestic  Some of the Cabinet Members and Advisors for Domestic Affairs  Arthur Yap. Secretary of Education (2006-2010) .

. Secretary of Health (2009-2010)  Bayani Fernando. Ebdane. Secretary of Public Works and Highways (2007-2009)  Mike Defensor. Esperanza Cabral. Secretary of Public Works and Highways (2003) and Chairman of the Metropolitan Manila Development Authority (2002-2009)  Hermogenes E. Jr. Chairman of Housing and Urban Development Coordinating Council (2001-2004)  .

Chairperson of the Commission on Human Rights (2008-2010)  Gilbert Teodoro. Chairman of Housing and Urban Development Coordinating Council (2004-2010)  Leila De Lima.Noli de Castro. Acting Chairman of the Commission on Elections (2007-2008) [edit] Economic  Some of the Cabinet Members and Advisors for Economic Affairs . Chairman of the Metropolitan Manila Development Authority (20012002) and Chairman of the Commission on Elections (2002-2007)  Resurreccion Borra. Chairman of the National Disaster Coordinating Council (2007-2009)  Benjamin Abalos.

 Romulo Neri. Secretary of Budget and Management (2005-2006) and Director-General of the National Economic and Development Authority (2001-2005. Secretary of Finance (2005-2010)  Richard Gordon. Secretary of Tourism (2001-2004)  . Secretary of Finance (2001)  Margarito Teves. 2006-2008)  Alberto Romulo.

Director-General of the National Economic and Development Authority (2008-2009)  Rafael Buenaventura. Secretary of Trade and Industry (2001-2003)  Augusto Santos. 2007-2008)  Ralph Recto. Governor of the Central Bank (2001-2005) [edit] Environment and Energy  Some of the Cabinet Members and Advisors for Environment and Energy  Angelo Reyes. Secretary of Environment and Natural Resources (2006-2007) and Secretary of Energy (2007-2010) . Director-General of the National Economic and Development Authority (2005-2006.Mar Roxas.

Secretary of Environment and Natural Resources (2004-2006)  Lito Atienza. Secretary of Environment and Natural Resources (2007-2009) [edit] Foreign Affairs and National Security  Some of the Cabinet Members and Advisors for Foreign Affairs and National Security  Gloria Macapagal-Arroyo. Jr.. 2002)  Teofisto Guingona. Acting Secretary of Foreign Affairs (2001. Mike Defensor. Secretary of Foreign Affairs (2001-2002) .

Secretary of Foreign Affairs (2004-2010)  Raul Gonzalez. Secretary of National Defense (2001) . Secretary of Justice (2009-2010)  Orly Mercado. Secretary of Justice (2004-2009)  Agnes Devanadera. Blas Ople. Secretary of Foreign Affairs (2002-2003)  Alberto Romulo.

Secretary of National Defense (2007)  Gilbert Teodoro. Angelo Reyes. Secretary of National Defense (2003-2004)  Hermogenes E. Ebdane. Secretary of National Defense (2001-2003) and Secretary of Interior and Local Government Secretary (2004-2006)  Eduardo Ermita.. Secretary of National Defense (2007-2009)  . Jr.

Ambassador to the United Nations (2007-2010)  Roilo Golez.Chief Justice. Nachura . Abad . National Security Adviser (2004-2010) and Secretary of National Defense (2007.2007 Arturo D. Perez .2009 Roberto A. National Security Adviser (2001-2004)  Norberto Gonzales. Mendoza . 2010 (an associate justice since 2002) Antonio T. Jr. .2010 [edit] First Term (2001-2004) [edit] Succession . . 2006 (an associate justice since 1993) Renato C.2002 Presbitero J. 2009-2010) [edit] Supreme Court Appointments Arroyo nominated the following to the Supreme Court of the Philippines:                 Artemio Panganiban . Jr. 2005 (an associate justice since 1995) Reynato Puno .2009 Lucas P. Villarama.2009 Mariano C. Velasco. Bersamin .Chief Justice. Jr. del Castillo .. Corona .2008 Diosdado M.2007 Teresita Leonardo-de Castro . Peralta .2009 Jose C.2006 Antonio Eduardo B. Carpio .2009 Jose P.Hilario Davide.2009 Martin S.Chief Justice.2001 Conchita Carpio-Morales . Brion .

Arroyo was sworn in as President of the Philippines by Chief Justice Hilario Davide. Arroyo assumed office the same day as US President George W. While the local media and its proponents hailed EDSA II as another peaceful "People Power. an estimated 3. asserting that Estrada had resigned the presidency and relinquished his post. Estrada filed a lawsuit challenging the legal basis of the Arroyo presidency and insisting he remained the lawful president.[9][10] After being dispersed the crowd had looted stores and burned cars. The New York Times reported that Southeast Asia-based political economist William Overholt called it a "either being called mob rule or mob rule as a cover for a well. reaffirming the legitimacy of Arroyo's presidency. in January 2001..[10] Join me therefore as we begin to tear down the walls that divide."[6] Weeks later. after days of political turmoil and popular revolt. and economic stability.000.[9] Arroyo declared a 'state of rebellion' in Manila and ordered the arrests of opposition leaders who led the uprising and conspired to topple the government. including two policemen."' [5] On Arroyo's proclamation as President. and more than 100 were wounded in clashes between security forces and rioters. a week after Estrada was arrested on charges of plunder.Gloria Macapagal-Arroyo being sworn in as president by Chief Justice Hilario Davide Jr.[9] Four people died. Main articles: EDSA II and EDSA III “ Arroyo's ascent to the Philippine presidency in 2001 is mired in controversy as much as the ouster — Gloria Arroyo[2]. orchestrated the 'People Power II movement. Former Singaporean Prime Minister Lee Kuan Yew opined that there is "an assumption of power here which isn't in the constitution. with Arroyo declaring "the disorder has subsided".[3] Coincidentally."[4] The International Herald Tribune reports how the "opportunist coalition of church. Let us build an edifice of peace.000[8] protesters sympathetic to Estrada degenerated into violence and attempted to storm the presidential palace to force Arroyo from office.[7] The Supreme Court issued its decision on March 2. On January 20." international views expressed through foreign media described it as a "conspiracy" to oust Estrada and install Arroyo as president. Bush. 2001 of her predecessor with which it is intertwined. 2001. progress. ” .[9] The state of rebellion was lifted one week later.[3] On May 1. the Supreme Court declared the presidency vacant. At noon. though adding he would not try to reclaim his post. business elite and left. January 20.[3] The court unanimously voted to dismiss Estrada's petition.. 2001. 2001. The military and the national police had earlier withdrawn their support for Estrada.planned coup. Jr.

Her agenda consists of building up a strong bureaucracy.[12] In December 2002. former senator Raul Roco.[13] Ten months later. it allows for the election of a person who has succeeded as president and has served for not more than four years.[14] Arroyo faced a tough election campaign in early 2004 against Estrada friend and popular actor Fernando Poe. 2003. antiillegal drugs. and anti-terrorism. improving economic growth.Support for the opposition and Estrada subsequently dwindled after the victory of administration allied candidates in the midterm elections that was held later that month. Arroyo made the surprise announcement that she would not seek a new term in the Philippine general election. [edit] 2001 Midterm Elections Main article: Philippine general election.. [edit] Oakwood mutiny Main article: Oakwood mutiny The Oakwood mutiny occurred in the Philippines on July 27. On February 20. lowering crime rates. in a way that nourishes our future".[13] . This is the first synchronized national and local elections held after the ouster of Former President Joseph Estrada in January due to a military-backed civilian uprising (popularly known as EDSA II). [edit] 2004 Presidential Election Although the Philippine Constitution bars a president from reelection. Independent senatorial candidate Noli de Castro.. 2001 The 2001 legislative elections and local elections were held in the Philippines on May 14. universal health insurance. They also stated that they saw signs suggesting that the President was going to declare martial law.. job creation. Jr. saying "there is a higher cause to change society. Arroyo outlined her vision for the country as "building a strong republic" throughout her tenure. Antonio Trillanes IV of the Philippine Navy took over the Oakwood Premier Ayala Center (now Ascott Makati) serviced apartment tower in Makati City to show the Filipino people the alleged corruption of the Gloria Macapagal-Arroyo administration. however. 2001 four months after Arroyo took office. 2007. a former television anchor of TV Patrol of ABS-CBN was announced as the topnotcher. the Supreme Court of the Philippines ruled that Former Senator Gregorio Honasan lost in the 2001 Philippine elections and lost to Sen. A group of 321 armed soldiers who called themselves "Bagong Katipuneros"[11] led by Army Capt. 2004. Her campaign platform centered on a shift to a parliamentary and federal form of government. Ralph Recto but declared constitutional the special election for the remaining three-year term of Teofisto Guingona. and Christian evangelist Eddie Villanueva. senator and former police general Panfilo Lacson. and intensifying counter-terrorism efforts. increasing tax collection. she reversed her position and declared her intention to seek a direct mandate from the people. Gerardo Gambala and Lt.

2004.[13] [edit] State of Emergency Main article: 2006 state of emergency in the Philippines On Friday. to stop lawless violence and promote peace and stability. The declaration of Proclamation No. headed by Brig. Gen.Arroyo lagged behind Poe in the polls prior to the campaign season.[16] [edit] Second Term (2004-2010) [edit] Inauguration Arroyo taking her Oath of Office in Cebu City on June 30. February 24. she won the election by a margin of over a million votes against her closest rival. The government's first move after the declaration was to disperse demonstrators. she chose to first deliver her inaugural address at the Quirino Grandstand in Manila before departing to Cebu City for her oath taking: the first time a Philippine president had taken the oath of office outside of Luzon. In a break with tradition. 2004. The President. but her popularity steadily climbed to surpass Poe's.[15] As predicted by pre-election surveys and exit polls. particularly the groups picketing along EDSA. By virtue of PP 1017. Jr. colleges and universities suspended classes. Former Philippine president Corazon Aquino was among those . an alleged coup d'état plot was uncovered in the Philippines. Fernando Poe. Arroyo took her oath of office on June 30. In response. she declared a State of Emergency for the whole country in an attempt to quell rebellion as her grip on power began to slip. 1017 gave Gloria Macapagal-Arroyo the power to issue warrantless (and until then unconstitutional) arrests and to take over private institutions that run public utilities. suspended classes in elementary and high school levels. Danilo Lim. 2006. through the Department of Education.

and Crispin Beltran and Rafael Mariano of Anakpawis .that protested. After the raid. Crispin Beltran of Anakpawis was arrested on February 25 on charges of inciting to sedition and rebellion. and concerned citizens filed a complaint in the Supreme Court contesting the constitutionality of PP 1017. After the election. and all the seats in the House of Representatives. lawyers. PP 1017 continued for a week on threats of military plots (such as the military stand-off of February 26 at Fort Bonifacio headed by Col. vice governor. the other five found shelter at the Batasang Pambansa Complex. No party-list party may have more than 3 seats. 2007 Legislative and local elections were held in the Philippines on May 14. Under the new formula only one party will have the maximum 3 seats. a newspaper known as a hard-hitting critic of the Arroyo administration. Liza Maza of GABRIELA. vice mayoral and city/municipal council seats in Metro Manila and the provinces are up for grabs as well. the office of the Daily Tribune. Local elections for governor. who were elected for three-year terms. Only parties representing marginalized groups were allowed to run in the party-list election. Most representatives won seats by being elected directly. The duly elected legislators of the 2007 elections joined the elected senators of the 2004 elections to comprise the 14th Congress of the Philippines. [edit] 2007 Midterm Elections Main article: Philippine general election. Six leftist representatives . the constituency being a geographical district of about 250. and Joel Virador of Bayan Muna. a party must win 2% of the vote.000 voters. illegal rallies and public disturbance. violence. To avoid further arrest. Some representatives were elected under a party-list system. according to then Chief of Staff Michael Defensor. 2007.Satur Ocampo. in a controversial decision. was raided. on May 4. Teodoro Casiño. . However the opposition. provincial board seats and mayoral. an issuance of Journalism Guideline followed. along with leftist and extreme right activists. On Saturday. declared the proclamation constitutional. The court.[17] The decree was lifted on March 3. the Commission on Elections (COMELEC) changed how it allocates the party-list seats. A number of public figures were reported to have been arrested. which are elected for six-year terms. authored by the government in order to cope with the "present abnormal situation". It based its decision on a formula contained in a Supreme Court decision. Positions contested included half the seats in the Senate. There are 220 seats in total for all the legislative districts. February 25. After the foiling of the plot and the dispersal of the rallies. but said it was illegal to issue warrantless arrests and seize private institutions. The move to suppress freedom of the press against the Daily Tribune was criticized by Reporters Without Borders. 2006. To gain one seat.were charged with rebellion. Ariel Querubin).

2007. Josefina Lichauco. 2006.Arroyo's coalition won 3 senate seats and 123 seats in the house. Elmer Labog. Diwalwal project. However. and ordered their release. Roneo Clamor. the opposition has only 28 House seats. Jr. and representatives from civil society Renato Constantino. impeachment complaints were filed against President Arroyo although none of the cases reached the required endorsement of 1/3 of the members for transmittal to and trial by the Senate. Antonio Trillanes IV. Armando Albarillo. Armando Albarillo. and Bebu Bulchand. a human rights victim. The impeachment further raised the issues on "national broadband network agreement with China. extrajudicial killings. Gen. Danilo Lim along with other junior officers agreed to leave the hotel and surrender to Barias after the 6 hour siege. Antonio Trillanes IV and Brigadier Gen. torture and illegal arrests. the Makati City Regional Trial Court dismissed the rebellion charges against all the 14 civilians involved in the siege. [edit] Impeachment complaints In 2005. [edit] The Manila Peninsula Rebellion Main article: Manila Peninsula rebellion The Peninsula Manila Rebellion was a rebellion in the Philippines on November 29. Roneo Clamor.[19] There was difficulty getting out for a while due to the tear gas that was covering the area where they were hiding.[20][21][22][23][24] . Leah Navarro. Henri Kahn. the swine scam under the Rural Credit Guarantee Corporation. 2007 and 2008. the Northrail project. 2008. Danilo Ramos.[18] Director Geary Barias declared that the standoff at the Manila Peninsula Hotel is over as Sen. Jose Luis Alcuaz. Brig. The justice committee has 60 days to rule upon the complaint's sufficiency in form and substance. the Mt. Harry Roque. Jose de Venecia III. Francisco Alcuaz. fertilizer fund scam. On October 13. Concepcion Empeño. Karapatan deputy secretary general. Former Vice-President Teofisto Guingona also joined the march to the hotel." The opposition complainants were Edita Burgos. Detained Senator Antonio Trillanes IV. alleged bribery of members of the House. Danilo Lim surrendered to authorities after an armored personnel carrier rammed into the lobby of the hotel. Sen. and seized the second floor of The Peninsula Manila Hotel along Ayala Avenue. Rez Cortez.. Days after the mutiny. and 2004 electoral fraud. Virgilio Eustaquio. Iloilo Vice Governor Rolex Suplico. called for the ouster of President Gloria Macapagal-Arroyo. human rights violations. The complaint accuses Arroyo of corruption. Teodoro Casiño and Liza Maza. General Lim and other Magdalo (mutineers) officials walked out of their trial and marched through the streets of Makati City. the 4th 97-page impeachment complaint against President Arroyo was filed at the House of Representatives of the Philippines with the required endorsements by Party list Representatives Satur Ocampo.

supposedly based on the recommendation by the Department of Justice. He is hereby restored to his civil and political rights. members of the Supreme Court. however. she filed her candidacy under the Lakas-Kampi-CMD. Article XI. This constitutes the first declaration of martial law in the Philippines since 1972. noon. and the Ombudsman." enabling the military to make arrests without court intervention. convicted by the Sandiganbayan of plunder and imposed a penalty of reclusion perpetua. based on the legal advice he gets from former Supreme Court Chief Justice Andres Narvasa. In so doing. Vice President. and he would be free from his Tanay resthouse on October 26. 2009. Commission on Audit).[25] [edit] Estrada pardon On October 25. 2010 On November 30. when then-president Ferdinand Marcos imposed military rule over the entire country.Under Sections 2 and 3. I hereby grant Executive clemency to Joseph Ejercito Estrada. Constitution of the Philippines.[30][31] [edit] Congressional bid in Pampanga Main article: Philippine House of Representatives elections.[33] [edit] Domestic policies . disagrees. 2009. President Arroyo placed Maguindanao under a state of martial law. it is then transmitted to the Senate of the Philippines which tries and decide. President Arroyo announced on the Philippine Broadcasting Service her congressional bid for the second district of Pampanga. saying that he is eligible to run for president again. the House of Representatives of the Philippines has the exclusive power to initiate all cases of impeachment against. When a third of its membership has endorsed the impeachment articles. Estrada.[32] On December 1. 2007. Arroyo granted a pardon to Joseph Estrada. members of the Constitutional Commissions (Commission on Elections." Bunye noted that Estrada committed in his application not to seek public office.[29] [edit] Martial Law Main article: Maguindanao massacre In the wake of the massacre of 57 people in Ampatuan town. 2009. the President.[26][27][28] Accordingly. Malacañang has suspended the writ of habeas corpus in the province except "for certain areas. Executive Secretary Eduardo Ermita announced on the morning of December 5. after much speculation. on the impeachment case. Press Secretary Ignacio Bunye quoted the signed Order: "In view hereof in pursuant of the authority conferred upon me by the Constitution. as impeachment tribunal. Justice Secretary Raul Gonzales categorically stated in 2008 that an Estrada plan to run for president in the scheduled 2010 elections is unconstitutional.

Indonesia.7%[35] average of the Joseph Estrada administration.0% during the Arroyo presidency from 2001 up to the first quarter of 2008.[edit] Economy President Arroyo. making it East Asia's best performing currency in 2005-06. is debatable. with poverty incidence being approximately three times higher in agricultural communities. Vietnam and China. has made the economy the focus of her presidency.[41] The peso strengthened by nearly 20% in 2007. who cited her "tough decisions" that put the Philippine economy back in shape. in terms of poverty amelioration. broke the record again seven times.[42] .8% average of Aquino.7%.[37] Whether the official economic figures are accurate. 3. Her administration first set the record for hunger levels in March 2001. making it by far Asia's best performing currency for the year. quarterly studies by the social polling research firm Social Weather Stations show that the number of Filipino households suffering from hunger has significantly increased during Arroyo's presidency.8 million. considered the centerpiece of the Arroyo administration's economic reform agenda.[40] was implemented in November 2005. or how they translate to improving lives of the citizens. a practicing economist. The country aims to balance the national budget by 2010. of Filipino families experiencing involuntary hunger.[39] A controversial expanded value added tax (e-VAT) law. ex-US President Bill Clinton. with real GDP growth exceeding 7%. the number of poor Filipinos increased by 3. The Philippine economy grew at its fastest pace in three decades in 2007. poverty levels. and 3. The tax measure boosted confidence in the government's fiscal capacity and helped to strengthen the Philippine peso. aiming to complement revenue-raising efforts that could plug the country's large budget deficit. however. The study reveals that from 2003 up to 2006.[38] With regards the problem of hunger. President Bush and other state leaders at the 2004 APEC Trade Summit Arroyo. Based on official (National Economic and Development Authority) figures.3 million households. instead of improving. and beginning June 2004. A comparative 2008 UN report shows that the Philippines lags behind its Asian neighbors. December 2008 figures saw the new record high of 23. or approximately 4. a fact attributed to a combination of increased remittances from overseas Filipino workers and a strong domestic economy. Thailand.7% average of Ramos. economic growth in terms of gross domestic product has averaged 5.[34] This is higher than in the administration of the previous recent presidents: 3. Studies made by the United Nations (UN) and local survey research firms show worsening.[36] Arroyo's handling of the economy has earned praise from former "friend" and classmate in Georgetown.

464 and calibrated preemptive response In late September 2005.[47] At her 2005 State of the Nation Address.[50] These measures were challenged before the Supreme Court. which apparently declared some sections as unconstitutional. criticized the administration for not doing enough to curb corruption. Please do not remove this message until the dispute is resolved. Arroyo implemented a controversial policy of holiday economics. It eased to 8.Annual inflation reached the 17-year high of 12. and the sooner the better.8 percent registered in 2007. Bayan Muna and Anakpawis.[49] [edit] Executive Order No. (December 2007) A May 2006 Amnesty International report expressed concern over the sharp rise in vigilante killings of militant activists and community workers in the Philippines.[46] [edit] Charter change In 2005.8 percent in December 2008 as fuel and energy prices went down.[43] The managing director of the World Bank.[51] Task Force Usig. by state run death squads counts 115 murders and says most of these are the result of an internal purge by communist rebels. Please see the discussion on the talk page. There is the issuance of Executive Order No. up from a record low of 2. adjusting holidays to form longer weekends with the purpose of boosting domestic tourism and allowing Filipinos more time with their families. These violations were alleged to have been committed against left-leaning organizations and party-list groups including BAYAN.5 percent in August 2008.[48] In late 2006. the House of Representatives shelved a plan to revise the constitution through constituent assembly. These organizations accuse the Philippine National Police and Armed Forces of the Philippines for the deaths of these .[44][45] Early in her presidency. [edit] Human rights The neutrality of this section is disputed. Arroyo initiated a movement for an overhaul of the constitution to transform the present presidential-bicameral republic into a federal parliamentary-unicameral form of government. 464 forbidding government officials under the executive department from appearing in congressional inquiries without President Arroyo's prior consent. Juan Jose Daboub.[52] Human rights groups put the number as high as 830. Arroyo issued an executive order stating that demonstrations without permits would be pre-emptively stopped. a special police unit tasked to probe reported extra-judicial killings. she claimed "The system clearly needs fundamental change. It's time to start the great debate on Charter Change". Then members of the military testified in Congressional hearings that they were defying a direct order not to testify about their knowledge of the election scandal.

Specifically. incidences of extrajudicial killings dropped 87%. which Melo submitted to Arroyo last month."[52] Stricter anti-terror laws have also caused some concern in recent years.political opponents. Under Arroyo's government. She promised to bring peace to the troubled south. were dismayed by the SONA's failure to highlight and address this major hindrance to human rights. the Philippines has become second only to Iraq as the world's riskiest place to report the news."[53][54] [55] [56] [57] General Palparan who retired September 11. Headed by former Supreme Court Justice Jose Melo.[61] In 2007. with 23 journalists killed since 2003[59] In her July 23. Arroyo told the joint session of Congress that "I would rather be right than popular. "The report. 2006 has been appointed by President Arroyo to be part of the Security Council. notably retired major general Jovito Palparan. reportedly linked state security forces to the murder of militants and recommended that military officials. with the decline attributed to the creation of a special task force to handle the killings. Arroyo has condemned political killings "in the harshest possible terms" and urged witnesses to come forward. and called for legislation to deal with a spate of political killings that have brought international criticism to her presidency. the Alternative Law Groups (ALG) echoed the lawmakers’ position that Mrs Arroyo failed to take responsibility for the problem. be held liable under the principle of command responsibility for killings in their areas of assignment. Arroyo has set out her agenda for her last three years in office. but found no proof linking the murder of activists to a "national policy" as claimed by the left-wing groups. however. This has alarmed left-leaning political parties about the potential for human rights violations. and also defended a controversial new anti-terrorism legislation. the group known as the Melo Commission concluded that most of the killings were instigated by the Armed Forces of the Philippines. notably retired major general Jovito Palparan.[62] . be held liable under the principle of command responsibility for killings in their areas of assignment. On the other hand the report "linked state security forces to the murder of militants and recommended that military officials.[58] An independent commission was assembled in August 2006 to investigate the killings."[60] Lawmakers and lawyers. 2007 State of the Nation Address.

These troops were recalled in July 2004 in response to the kidnapping of Filipino truck driver Angelo de la Cruz. and countries where overseas Filipino workers work and live. [edit] Philippines-Japan Trade Deal .[63] [edit] Foreign Policies See also: International trips made by Gloria Macapagal-Arroyo [edit] Iraq War Main article: Iraq War The Arroyo administration has forged a strong relationship with the United States.[64] The early pullout drew international condemnation. the hostage was released. other communist rebel groups.Gloria Macapagal-Arroyo visited by United States Marines." The National Committee on Social Integration (NCSI) will issue a Certificate of Amnesty to qualified applicants. President Gloria Macapagal-Arroyo signed Amnesty Proclamation 1377 for members of the Communist Party of the Philippines and its armed wing. 2001 attacks. and their umbrella organization. [edit] Amnesty proclamation On September 5. Arroyo was one of the first world leaders who expressed support for the US-led coalition against global terrorism in the aftermath of the September 11. Implementing rules and regulations are being drafted and the decree will be submitted to the Senate of the Philippines and the House of Representatives for their concurrence. with the United States protesting against the action.[64] Following the US-led invasion of Iraq. the Philippines was host to the 12th ASEAN Summit in Cebu City.[64] [edit] ASEAN Summit Arroyo's foreign policy is anchored on building strong ties with the United States.[64] With the hostage takers demands met. use and trafficking of illegal drugs and other crimes for personal ends and violations of international law or convention and protocols "even if alleged to have been committed in pursuit of political beliefs. and remains one of its closest allies in the war on terror. in July 2003 the Philippines sent a small humanitarian contingent which included medics and engineers. torture. 2007. the New People's Army.[65] In 2007. rape. kidnapping for ransom." but not including crimes against chastity. saying giving in to terrorist demands should not be an option. The amnesty will cover the crime of rebellion and all other crimes "in pursuit of political beliefs.[64] The force was previously due to leave Iraq the following month. The proclamation becomes effective only after Congress has concurred. East Asian and Southeast Asian nations. the National Democratic Front.

000 Philippine nurses. Japan also promised to hire at least 1. 2007. May 19. The opposition-dominated senate objected on the ground that toxic wastes would be sent to the Philippines. Arroyo's administration asked the Senate of the Philippines to ratify a $4 billion (£2 billion) trade deal with Japan (signed on 2006 with the former Japanese prime minister Junichiro Koizumi).[66] [edit] Council of Women World Leaders In keeping with this international mission.On August 21. 2009.  President Barack Obama jokes with Philippine President Gloria Macapagal-Arroyo before a news conference in the Oval Office on July 30. an International network of current and former women presidents and prime ministers whose mission is to mobilize the highest-level women leaders globally for collective action on issues of critical importance to women and equitable development. which would create more than 300. 2003. the government denied this due to the diplomatic notes which stated that it would not be accepting Japanese waste in exchange for economic concessions.000 jobs (by specifically increasing local exports such as shrimp to Japan). President Gloria Macapagal-Arroyo is a member of the Council of Women World Leaders.  Arroyo with World Leaders  Proceeding from public ceremony to private talks. Bush meet in the Oval Office Monday.  President Gloria Macapagal Arroyo with Russian President Vladimir Putin during a meeting of the APEC leaders . Philippine President Gloria Macapagal-Arroyo and President George W.

Rumsfeld and Republic of the Philippines President Gloria Macapagal-Arroyo meet the press Nov.S. Gates. [edit] Pardons .S Secretary of State Condoleezza Rice  Secretary of State Hillary Clinton held a bilateral meeting with Philippine President Gloria Macapagal-Arroyo  Defense Secretary Donald H. Macapagal-Arroyo is in Washington to meet with President Bush and other senior U.S. President Arroyo with Russian president Dmitry Medvedev during her visit in Moscow. 20 outside the Pentagon.  U. Defense Secretary Robert M. 2008. June 4–6. escorts Philippine President Gloria Arroyo through an honor cordon into the Pentagon for a meeting. right. Petersburg International Economic Forum. Russia for St. government officials. 2009  President Gloria Macapagal-Arroyo and U. June 24.

Arroyo admitted to inappropriately speaking to a Comelec official. Jr. the contents of the tape prove that the 2004 national election was rigged by Arroyo in order to win by around one million votes. Please see the discussion on the talk page. Rubén Aquino (2009) . Rodolfo Desolong (2009) . Attempts to impeach Arroyo failed later that year. Claro Lat (2009) .convicted for being involved in the Assassination of Benigno Aquino. Jesús Castro (2009) . Samuel Ong who is a former deputy director of the country's National Bureau of Investigation (NBI) claimed to have audio tapes of wiretapped conversations between President Arroyo and an official of the Commission on Elections. Filomeno Miranda (2009) . Jr. According to Ong.convicted for being involved in the Assassination of Benigno Aquino. Jr.convicted for being involved in the Assassination of Benigno Aquino. but denied influencing the outcome of the election. Jr.convicted for being involved in the Assassination of Benigno Aquino. On June 27. (2008) . Jr.convicted for being involved in the Assassination of Benigno Aquino. Jr.convicted of plunder Pablo Martínez (2007) . Jr.convicted for being involved in the Assassination of Benigno Aquino. Jr. Jr.convicted for being involved in the Assassination of Benigno Aquino. Please do not remove this message until the dispute is resolved. Jr.convicted for being involved in the Assassination of Benigno Aquino.President Gloria Macapagal Arroyo granted pardon the following:               Former President Joseph Estrada (2007) . Romeo Bautista (2009) . claiming it was a "lapse in judgement". Ernesto Mateo (2009) .convicted of murder Rogelio Moreno (2009) .convicted of rape [edit] Controversies [edit] Fertilizer Fund Scam Main article: Fertilizer Fund Scam The Fertilizer Fund Scam is a Philippine political controversy involving accusations that Agriculture Undersecretary Jocelyn Bolante diverted P728 million in fertilizer funds to the 2004 election campaign of President Gloria Macapagal-Arroyo. Arnulfo Artates (2009) . Former Congressman Romeo Jalosjos (2009) . (December 2007) Main article: Hello Garci scandal In the middle of 2005. Jr.convicted for being involved in the Assassination of Benigno Aquino. Jr.convicted for being involved in the Assassination of Benigno Aquino.convicted for being involved in the Assassination of Benigno Aquino. Arnulfo De Mesa (2009) . Claudio Teehankee. . [edit] Hello Garci Controversy The neutrality of this section is disputed.

Arroyo went to New York City to dine with her friends at a lush Le Cirque restaurant and was highly criticized for her supposed outlandish dinner at Le Cirque with the Philippine delegation during her visit to the United States. stepped forward in August 2006."[69] [edit] National Broadband Network Scandal The neutrality of this section is disputed. Maguindanao during the May 2004 elections.000. Antonio Rasalan and Clinton Colcol. as House Speaker. the credibility of the balloting process in Mindanao was at a record low. In July 2009. This has been linked to corruption and anti-Gloria protests to sprawl anger among the poor. while Poe received 2. Jr. the unseating of Jose de Venecia. said that Arroyo only received 1.Two witnesses. It has also taken an interesting turn of events. Pulse Asia survey (commissioned by Genuine Opposition (GO) per former Senator Sergio Osmeña III) stated that 58% percent of Filipinos in Mindanao believed that President Gloria Macapagal-Arroyo cheated in the Philippine general election. a serious blow marked an another controversy in the Philippines. 2004.445 votes. Colcol. a tabulator for the Commission on Elections (Comelec). a telecommunications and networking equipment provider. largely through the articles of newspaper columnist Jarius Bondoc of the Philippine Star.000 as reported in the New York Post. Please do not remove this message until the dispute is resolved. Please see the discussion on the talk page. and the alleged "kidnapping" of designated National Economic and Development Authority (NEDA) consultantturned-NBN/ZTE witness Rodolfo Noel "Jun" Lozada. The issue has captivated Filipino politics since it erupted in Philippine media around August 2007. First Gentleman Mike Arroyo and President Gloria MacapagalArroyo regarding the proposed government-managed National Broadband Network (NBN) for the Philippines and the awarding of its construction to the Chinese firm Zhong Xing Telecommunication Equipment Company Limited (ZTE).141 in South Upi.[67][68] On January 25. President Arroyo and her group reportedly had dinner for the cost of $20. Jr. [edit] Controversial Dinner party and Ondoy Again. (March 2008) Main article: Philippine National Broadband Network controversy The Philippine National Broadband Network controversy is a political affair that centers upon allegations of corruption primarily involving Former Commission on Elections (COMELEC) Chairman Benjamin Abalos. including the resignation of Abalos as COMELEC chairman. claiming involvement in an alleged plot to alter the results for the May 2004 elections. and more people went hungry as a . the alleged bribery of congressmen and provincial governors (dubbed as "Bribery in the Palace"). 2008. 70% also "believed that because of recurring allegations of election fraud. Rasalan claimed that he was fully convinced that the election returns presented at the House of Representatives were manufactured and had replaced the original documents.000 or P1.

2009. again. she headed straight to Pampanga for her own oath-taking as congresswoman. Arroyo. January 23. ^ Mydans. http://www. "Expecting Praise. ^ Search | Sun. making her the second Philippine President . Chief Administrator Prisco Nilo was fired and resigned for having a foolproof forecast as the typhoon struck the metropolis.R. (2001)[dead link] 4.after Jose P.hwwilson.html?ex=1204174800&en=835b6565116a0 dd1&ei=5070e 5.result of rising hunger. Philip.[71] With little serious competition.[73] [edit] References 1. she was elected to congress in May 2010 with a landslide victory. Many opposition senators and congressmen opposed that the project could cost US$500 million and this has been led to corruption in the Arroyo cabinet and even her. Arroyo signed a Memorandum of agreement with Sinomach and other contractors in 2004. The New York Times. The H. January 22. anti-Gloria coup attempts. . 2009.com/2001/01/22/opinion/22iht-edbow. In September 2009.to pursue a lower office after the expiration of their presidency. http://www. Filipinos Are Criticized for Ouster. ^ Bowring. After it was constructed from 2009-2010. http://www. Retrieved January 27. 5. no plans and substitute foreign support (Japan for example) to continue the project. Retrieved January 27.t_3. [edit] Northrail Controversy The Northrail project is being surrounded by a controversy since 1997. 2001. "Filipino Democracy Needs Stronger Institutions. Retrieved January 27. 2. it eventually cancelled in March 2011. Laurel .htm.com/print/cbintl_arroyo_biography. he criticized Arroyo and PAGASA for lack of disaster preparedness and new equipment in the aftermath of Ondoy.[70] A petition seeking to disqualify Arroyo from the race was dismissed by the Comelec for lack of merit. 2001. and also. After Benigno Aquino III took office on June 30. ^ Singapore's Lee: Philippine Change No Boost For Democracy. W. Seth.[72] After receiving final military honors at the inauguration ceremony of incoming President Benigno Aquino III." 2001. 2010. G. 146710-15. 2007." International Herald Tribune website.Star Network Online 3. Feb. Current Biography International Yearbook 2004. Arroyo formally declared her intention to run for a seat in the House of Representatives representing the 2nd District of Pampanga.com/2001/02/05/world/05FILI.nytimes. to construct a rail line from Caloocan to Clark Special Economic Zone once to be completed in 2010.html 6. 2009. [edit] End of Presidency In November 2009. ^ "Gloria Macapagal-Arroyo". a decision which was later affirmed by the Supreme Court. Typhoon Ondoy became devastative throughout Metro Manila and Luzon leaving 464 people dead and resulted to massive flooding and landslides.nytimes. Wilson Company. ^ a b c Estrada v. No. Retrieved June 4. and also a series of cancellations.

". http://web. ^ "Arroyo U-turn on re-election bid". 14.GMANews. Francis. Archived from the original on 2007-05-18. ^ "Results of the Past Presidential & Vice-Presidential Elections".'State of Rebellion' Declared After Siege at Manila Palace ^ a b New York Times .Latest Philippine News ^ Bongbong.archive.ph/20060222/comment ary/20060222com5. Archived from the original on 2007-09-28.htm. 24.reuters. Estrada granted executive clemency ^ Cueto. "Small setback.rsf. Trillanes.org/web/20070824115409/http%3A//www.After 'Disorder Has Subsided. 18.html ^ New York Times ..archive. ^ Gma News. 25. Retrieved 2007-06-04. Arroyo grants pardon to Estrada ^ GMA News. Retrieved 2007-04-06.archive. Arroyo faces new impeachment bid ^ in. pp.net.org/web/20070928020715/http://www. Archived from the original on August 24. Retrieved 2007-06-04.net. "SWS May 1–4.ph/pr050804.org/web/20070518044047/http://www. 2004 Survey". 2007.election/index. Eduardo.report ^ GMA News.tribune.org/country50. http://web.tv.chanrobles.aljazeera. 20. Impeachment case filed against Philippines' Arroyo ^ inquirer. from http://www. http://web. Herman T (2006-02-22). 22. 9. ISBN 978971-27-1487-0. Social Weather Stations.au. 28. Lim decide to call it quits . ‘Erap’ slams DOJ.com/2003/WORLD/asiapcf/southeast/10/04/arroyo.org/web/20090806094545/http://geocities.archive.htm. ^ news.cnn. ^ "Article 7: Executive Department". 10. Retrieved January 29.com. 26. 2007.html. CNN.php . "The 1987 Constitution of the Republic of the Philippines Article XI". 22 November 2008.asp.ph/election_results.. ^ Mangahas. http://web... J. 13. http://web. Arroyo impeach rap filed at House ^ Chan-Robles Virtual Law Library. Retrieved 2007-08-10. Jonathan E.manilatimes. http://edition. insists he can run again in 2010. 31. http://www.org. 12. . 8. 19.Nation .org/web/20070930225217/http://www.com/benign0/agr-disagr/12-2lky. Malaya (2004). Reporters Without Borders. ^ "Philippines".So Help Us God: The Presidents of the Philippines and Their Inaugural Addresses. 29. Impeachment complaint filed vs Arroyo amid tight security ^ radioaustralia.monstersandcritics. Retrieved 2007-06-04. 2003-10-04. Retrieved 2008-07-25. Noynoy one in questioning martial law .html. 11. Annual report 2007. 23. The Daily Tribune. The 1987 Constitution of the Republic of the Philippines.com/article11. 30.7.sws. Philippine leader pardons ex-president Estrada ^ Inquirer. Philippines opposition seeks to impeach president ^ english. 21.' Philippines Lifts Its Emergency ^ Laurel.' says Barias of hotel standoff ^ gmanews. Archived from the original on 2007-09-30.com. Mahar (2004-05-08). Pasig City: Anvil Publishing.html ^ Full text: Arroyo's declaration of martial law in Maguindanao .Official Website of GMA News and Public Affairs .net/national/2008/nov/22/yehey/top_stories/20081122top3. 2009.TV . 'It's over.gov.Ex-President in Philippines Sues to Reclaim at Least His Dignity ^ Joseph "Erap" Ejercito Estrada — The Official Webpage of Joseph Ejercito Estrada » Biography ^ a b c d New York Times . 17.net. 301–303. 27.ph/aboutphil/a7. Retrieved 2006-06-04.pangulo. http://www. The Official Website of the Republic of the Philippines.archive.php3?id_mot=666. 15.net. ^ a b c Malaya. The Philippine Presidency Project. 16.

Severe Hunger at 5. http://www. December 22. ^ Philippines Economy Profile 2008 37. ^ "Arroyo to run for Congress".preda. Retrieved 2007-06-05. ^ "2005 State of the Nation Address". 49.html[dead link] 39.INQUIRER.aspx?ArticleId=429620&publicationSubCategoryId=66 44.inquirer.com/storypage.32.globalpinoy. Chino.gov. National Economic Development Authority 35. http://www. 34. http://www. 43. ABS-CBN News.com/news/news_inside.org/archives/research/digest/digest81. Philippine News for Filipinos 38.php?article_id=37690.ph/pr081222. The Official Website of the Republic of the Philippines. Moderate Hunger at 18.php?db=1&article=20091130-239344. http://www. 2005-07-25. April 03. Lira (2006-07-27).[dead link] 47.net/breakingnews/nation/view/20091201-239523/Arroyo-filescandidacy-for-Congress. http://www. http://web.php?db=1&story_id=12106. ^ Ferriols. Retrieved 2009-12-31. ^ Ubac. ^ "Pacific Newsletter". Retrieved 2008-03-26. 2009. Amnesty International. 2009-11-30.Social Weather Stations Site. http://newsinfo. 2009-12-01.Background information on candidate countries". ^ Fourth Quarter 2008 Social Weather Survey: Hunger at new record-high 23.org/web/20080117213927/http://www.asp? sourceid=&smenu=97&twindow=&mad=&sdetail=17246&wpage=1&skeyword=&sidate=&ccat= &ccatm=&restate=&restatus=&reoption=&retype=&repmin=&repmax=&rebed=&rebath=&subn ame=&pform=&sc=1718&hn=pacificnewscenter&he=.com/Article. Archived from the original on 2008-01-17.net/view. http://www.net/national/2008/apr/03/yehey/top_stories/20080403top2. 2008. 2006-05-01. http://web. ^ [1][dead link] 51.archive.com/default.net.The World Factbook . ^ Economic Indicators Table. Aurea (2007-01-19).5%.org/en/library/info/IOR41/006/2006.org/web/20070209004700/http://www. "December inflation falls to 9-month low of 8%. Retrieved 2006-09-13. http://newsinfo. ^ "Arroyo now an official bet for Congress".sws. Des. ^ Arroyo shares spotlight with global leaders in forum . Michael Lim (2006-12-12). http://www. ^ CIA . Retrieved 2007-06-06.org. ^ "WB exec laments RP’s slow growth".net/view. "People's support for Charter change 'nowhere to go but up'". http://politics.pacificnewscenter. Says UN Report. 2009." Manila Times.php?newsnum=3090.html.Philippines[dead link] 42. Retrieved 2007-06-06. ^ Leyco. "Arroyo allies retreat".amnesty. Philippine Daily Inquirer. Philippine Daily Inquirer. Retrieved 2009-1231. ^ Calica. Retrieved January 28.2%.International Herald Tribune 41. Retrieved January 28.7% of families.philstar. "GMA bares list of holidays". Archived from the original on 2007-02-09.ph/sona/sonatext2005." Retrieved January 28.inquirer.[dead link] 33. 2009. .net/inquirerheadlines/nation/view_article. Philippine Daily Inquirer.aspx?StoryId=63646. ^ "The World Bank smells corruption". Philippine Daily Inquirer.htm 40.archive. http://archive.manilatimes.inquirer. ^ Arroyo facing a dilemma after voiding of new tax . ^ "2006 Elections to the Human Rights Council . 45. Retrieved 2008-03-26. ^ Untitled Document 36. 48.com.[dead link] 46. 2008.inquirer. "Philippines Trails In Poverty Reduction. ^ Dalangin-Fernandez. 50.asp.abscbnnews. Retrieved 2006-07-27.

2004[dead link] 65.Philippines begins Iraq pullout . ^ a b c d e CNN. Retrieved July 5. ^ a b Alberto. GMA News and Public Affairs. Arroyo signs amnesty proclamation for communists 64. Inquirer. Retrieved 2009-07-10. Archived from the original on 2007-02-27. 2010-05-20.tv/story/194848/arroyo-takes-oath-as-pampangarepresentative.co.net/view. ^ STOP Extra-Judicial Killings in the Philippines 55. ^ "Arroyo lays out economic agenda". ^ Norman Borbadora.Pulse 70. Philippine Daily Inquirer.aspx?articleId=552457. Retrieved 2006-0913. 53.Official Website of GMA News and Public Affairs . 2007-07-23.Nation . "Arroyo takes oath of office as Pampanga rep". 61. "Reign of terror continues".inquirer.net/breakingnews/nation/view/20080114-112184/PNP-Extrajudicialkillings-fell-by-83-in-2007.net. Philippines fight over trade deal 67. http://web. ^ Dino Maragay (2009-11-30).SONA: Prexy's silence on killings hit by lawmakers .php?article_id=49657.gov. ^ PC(USA) News: ‘Graft and corruption’ 56. http://news. Most Mindanaoans believe Arroyo cheated in ’04 polls .gmanews. 54. http://newsinfo. Ric Sapnu (2010-02-24).archive.inquirer. ^ BBC NEWS. ^ "PNP: Extrajudicial killings fell by 83% in 2007". Philippine Daily Inquirer. Michael Lim Ubac (2006-09-09). 2010. Thea (2007-02-15). ^ Dreo Calonzo (2010-06-30). Philippine Star. http://www.TV . 63. Philippine Daily Inquirer.bbc. 73.gmanews.TV. 2006-07-24. "It's final: GMA can run for House seat".php?db=1&story_id=20004.asp.stm. Philippine News for Filipinos 69.php?db=1&story_id=15880. 2010.com . Retrieved July 5. Retrieved 2007-06-04. ^ "State of the Nation Address of President Gloria Macapagal-Arroyo". Delon Porcalla. Marvin Sy.net. ^ Office of the President of the Philippines 66. "GMA gunning for House seat". ^ Radio Pinoy USA[dead link] 57. 72.philstar. The Official Website of the Republic of the Philippines. "2 men claim cheating for Arroyo in '04 election". 59.com/ArticlePrinterFriendly. 2008-01-14. ^ Inquirer.net.philstar. http://www. ^ Scared Silent: Impunity for Extrajudicial Killings in the Philippines 58. ^ GMANews. [edit] External links . BBC News. http://www. ^ Norman Bordadora (2006-08-18). ^ "Regional Election Results Tally: PAMPANGA". http://archive.aspx?articleId=528207. 2010. Retrieved 2007-07-23.uk/2/hi/asiapacific/6911261. http://archive.52. Retrieved 2006-0913. Retrieved 2007-06-05. ^ GMA NEWS.tv/eleksyon2010/provincialcount/PAMPANGA.Latest Philippine News . Philippine Star. 68.BETA 62. http://www.org/web/20070227161854/http://www.ph/sona/sonatext2006. Retrieved July 5. ^ Senate election results could mean tough time ahead Arroyo . 71.net/breakingnews/nation/view_article.INQUIRER. 2010.com/ArticlePrinterFriendly.July 16. Retrieved July 2. "Melo: Commission report 'complete'".inquirer.inquirer. GMA News and Public Affairs. http://newsinfo. ^ A Philippine Shame 60.net/view. ^ Edu Punay.

Wikimedia Commons has media related to: Presidency of Gloria Macapagal-Arroyo Wikinews has related news: Presidency of Gloria Macapagal-Arroyo Wikisource has original works written by or about: Presidency of Gloria Macapagal-Arroyo Wikiquote has a collection of quotations related to: Presidency of Gloria Macapagal-Arroyo    Office of the President of the Philippines President Gloria Macapagal-Arroyo official website Reporter's Notebook: Ang Palasyo Reporter's Notebook Special. 12/04/2007 Political offices Vice President of the Philippines 1998–2001 President of the Philippines 2001–2010 Secretary of Foreign Affairs 2002 Secretary of National Defense 2003 Secretary of Foreign Affairs 2003 Secretary of National Defense 2006–2007 Party political offices Preceded by Chair of Lakas-CMD Position abolished Succeeded by Teofisto Guingona Succeeded by Benigno Aquino III Succeeded by Blas Ople Succeeded by Eduardo Ermita Succeeded by Delia Albert Succeeded by Hermogenes Ebdane Preceded by Joseph Estrada Preceded by Teofisto Guingona Preceded by Angelo Reyes Preceded by Franklin Ebdalin Preceded by Avelino Cruz .

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