Joseph "Erap" Estrada

Administration
June 30, 1998 – January 21, 2001

Anabelle B. Laron
RD 316 - Seminar on Philippine Development Experience and Challenges
Economy
• Has strong economic team
• failed to capitalize on the gains of the previous administration
• severely criticized for cronyism, incompetence and corruption, causing it to lose the
confidence of  foreign investors.
• Foreign investors' confidence was further damaged when, in his second year,
Estrada was accused of exerting influence in an investigation of a friend's
involvement in stock market manipulation.
• Social unrest brought about by numerous bombing threats, actual bombings,
kidnappings, and other criminal activities contributed to the economy's troubles.
• Economic performance was also hurt by climatic disturbance that caused extremes
of dry and wet weather.
• fiscal deficit had doubled to more than P100 billion from a low of P49 billion in 1998
• GNP rate in 1999 increased to 3.6 percent from 0.1 percent in 1998, and the GDP
posted a 3.2 percent growth rate, up from a low of −0.5 percent in 1998.
• Debt reached P2.1 trillion in 1999. Domestic debt amounted to P986.7 billion while
foreign debt stood at US$52.2 billion
Laws
Philippine Clean Air Act of 1999
(Republic Act No. 8749)
• Designed to protect and preserve the environment and
ensure the sustainable development of its natural resources.
• focused only on the air quality management

• Incentives for Regional Headquarters of Foreign

Multinationals (Republic Act No. 8756)
The measure grants a host of incentives to multinational
firms establishing their regional hubs in the country. It also
provides a tax- and duty-free operating environment for
them, and multiple entry visas to expatriates and their
families, as well as a flat income tax rate of 15%.
Incentives for Regional Headquarters of
Foreign Multinationals
(Republic Act No. 8756)
• grants a host of incentives to multinational firms
establishing their regional hubs in the country
• provides a tax- and duty-free operating environment
for them
• provides multiple entry visas to expatriates and their
families, as well as a flat income tax rate of 15%.
Retail Trade Liberalization Act
(Republic Act No. 8762)
• The bill dismantles 40 years of state protectionism
over the country’s retail trade industry and opens the
sector to big foreign players. With the retail trade
liberalization, well-known foreign players like France’s
Carrefour and Casino Group as well as the U.S.’ Wal-
Mart and JC Penney are already in the process of
negotiating with local partners.
New General Banking Act
(Republic Act No. 8791)
• The measure opens up the local banking industry to
foreign players after almost 50 years of having it
exclusively reserved and protected for Filipino
nationals. With the industry’s liberalization, at least
10 foreign banks have already established their
presence in the Philippines.
Electronic Commerce Act of 2000
(Republic Act No. 8792)
• Outlaws computer hacking and provides
opportunities for new businesses emerging from the
Internet-driven New Economy.
New Securities Act
(Republic Act No. 8799)
• This law liberalizes the securities market by shifting
policy from merit regulation to full disclosure. With its
strengthened provisions against fraud, the measure is
expected to pave the way for the full development of
the Philippine equities and securities market.
Programs
Agrarian Reform
• Comprehensive Agrarian Reform Program (CARP) widened to the
landless peasants in the country side
‒ distributed more than 266,000 hectares of land to 175,000
landless farmers, including land owned by the traditional rural
elite
* for the benefit of those farmers living in the rural areas.
* CARP was for the benefit of those farmers who do not own their
own land
* distributed hectares of land to those who are landless
Agrarian Reform
• Executive Order (EO) 151
‒ known as Farmer’s Trust Fund
‒ Issued in September 1999
‒ allows the voluntary consolidation of small farm operation into
medium and large scale integrated enterprise that can access
long-term capital
* intended for those farmers who have small and medium capital
to extend their business into a large scale accessing long term
loans from the fund.
Agrarian Reform
• Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA
‒ DAR forged into joint ventures with private investors into
agrarian sector to make FBs competitive
‒ In 1999 a huge fund was allocated to agricultural programs. One
of which is the “Agrikulturang Maka Masa”, through which it
achieved an output growth of 6 percent, a record high at the
time, thereby lowering the inflation rate from 11 percent in
January 1999 to just a little over 3 percent by November of the
same year.
Anti-Crime Task Force
• Executive Order No.8, Presidential Anti-Organized
Crime Task Force (PAOCTF)
‒ Launched to reduce if not totally eradicate car theft
and worsening kidnapping cases in the country
‒ with the help of this task force, the Philippine National
Police for the first time in history achieved a record-
high trust rating of +53 percent.
• Philippine Center on Transnational Crime (PCTC)
‒ Aims to formulate and implement a concerted action
of all law enforcement, intelligence and other
government agencies for the prevention and control
of transnational crime.
Death Penalty
• re-enforced during the incumbency of Estrada’s
predecessor, Fidel Ramos
• provided the use of the electric chair until the gas
chamber (method chosen by government to replace
electrocution) could be installed
• The Estrada administration peddled the death penalty
as the antidote to crime
• The reasoning was that if the criminals will be afraid
to commit crimes if they see that the government is
determined to execute them.
Charter Change
• Attempted to change the 1987 Constitution
• The process is termed as CONCORD or Constitutional
Correction for Development
• Unlike Charter change under Ramos and Arroyo the
CONCORD proposal, according to its proponents,
would only amend the ‘restrictive’ economic
provisions of the constitution that is considered as
impeding the entry of more foreign investments in
the Philippines.
RP-US Visiting Forces Agreement
• Requires the US government to notify RP authorities
when it becomes aware of the apprehension, arrest
or detention of any RP personnel visiting the U.S.
• when so requested by the RP government, to ask the
appropriate authorities to waive jurisdiction in favor
of RP, except cases of special interest to the U.S.
departments of State or Defense
War against MILF
• Moro Islamic Liberation Front (MILF), a Islamic group
formed in 1977,
• During the Ramos administration a cessation of
hostilities agreement was signed between the
Philippine Government and the (MILF) in July 1997
• continued series of peace talks and negotiations
• despite the agreements, a sequence of terrorist
attacks with the Philippine military and the civilians
still continued that inflicted severe damage on the
country’s image abroad, and scared much-needed
investments away.