THE ROOT OF THE

PHILIPPINES
ECONOMIC
TROUBLES
The Philippines was already
experiencing one of its worst years
when the severe developments of the
third quarter compounded the
problems . The "second oil crisis" of INTRODUCT
1979 not only increased the price of a ION
major import, but also brought about
recessionary conditions in the OECD
countries and thereby falling prices and
little quantitative growth for Philippine
exports.
The second oil crisis, triggered by the
Iranian revolution in 1979 and exacerbated
STATEMEN
by Iran-Iraq war, resulted in a sudden and
T OF THE
substantial increase in global oil prices that PROBLEMS
cause result faces challenge for
Philippines. This study aims to investigate
the effects of the second oil crisis.
SPECIFICALLY, THIS STUDY
SEEKS TO ANSWER THE
FOLLOWING QUESTIONS:
 1. What are the causes of oil crisis in the Philippines?

 2. How does war affect the economy of the Philippines?

 3. How does the leadership of former president Marcos

affect the economic growth of the Philippines in year 1970s to
1980s?
The Philippines' economic expansion was significantly
impacted by the second oil crisis in the late 1970s and
early 1980s. It was primarily brought on by an increase
in oil prices on a global scale that was brought on by CASE
geopolitical events like the Iran-Iraq War and the Iranian EVALUATIO
Revolution. The Philippines, who rely significantly on oil N
imports for both transportation and electricity, were
immediately confronted with the problems of inflation,
declining consumer purchasing power, and rising
production costs.
To comprehend the roots of the Philippine
economic crisis, it is crucial to examine various
historical, political, social, and economic factors CONTEXT
that have contributed to its complex economic OF THE
landscape. The roots of the Philippines' STUDY
economic troubles in the early to mid-1980s can
be attributed to a combination of economic
mismanagement, external factors, and political
instability.
HERE ARE SOME KEY FACTORS THAT
CONTRIBUTED TO THE ECONOMIC CRISIS
DURING THAT PERIOD
 Global Oil Price Shock

 OPEC Actions

 External Trade Troubles

 Slower Economic Growth

 Government's Response
To mitigate the economic effects of the second oil crisis, the
Philippine government should implement the following
solutions:

1. Invest in renewable energy sources such as solar, wind, and

geothermal power to reduce dependence on imported oil.

2. The government should do a comprehensive feasibility

SOLUTION
study about nuclear energy.

3. Promote sustainable economic growth that is not dependent

on elevated levels of debt.
1. Provide financial assistance to public
transportation providers to help them offset
the rising cost of fuel.
RECOMMENDA
2. Revive the Bataan Nuclear Power Plant TION

3. Invest in research and development of

renewable energy technologies.
The Philippines was heavily impacted by the second oil
crisis in the late 1970s and early 1980s, which was caused
by worldwide oil price increases owing to geopolitical
tensions. Inflation and economic issues resulted from the
country's reliance on oil imports. To counteract the situation,
DISCUSSIO
the government enacted energy conservation policies,
N
imposed gasoline price caps, and made investments in
alternative energy sources and infrastructure. These steps
not only solved immediate concerns but also increased the
Philippines' energy self-sufficiency and resilience, lowering
its dependency on foreign oil.
XIE XIE