ECONOMIC DEVELOPMENT OF THE PHILIPPINES

FIDEL V. RAMOSEconomic Growth Can Thrive In A Democracy

FIDEL V. RAMOS 12th President of the Philippines (1992–1998), is remembered for

steadfastly promoting the principles of people empowerment and global competitiveness.

In 1993, He quickly led the nation out of darkness putting an end to the power crisis that crippled Filipino homes and industries for two years.

He made programs to fight poverty in accordance with the will of the Filipino people expressed by 229 structural/reform laws enacted by Congress during his term.

The years 1993-1997, the Philippine economy recovered dramatically.

Ramos implemented a comprehensive Social Reform Agenda (SRA) that addressed the long-standing problem of poverty: jobs and livelihood, health, education and skills training, housing, environmental protection, children and the youth, the elderly and the handicapped, agrarian reform, and access to equal opportunity.

Filipino families’ average income grew more during his administration compared to 20 years before. He pushed for the deregulation of key industries and the liberalization of the economy.

He encouraged the privatization of public entities, to include the modernization of public infrastructure through an expanded Build-Operate-Transfer (BOT) law.

FIDEL V. RAMOS

Under Ramos, the Philippines experienced a period of political stability and rapid economic growth and expansion, as a result of his policies and programs designed to foster national reconciliation and unity.

FIDEL V. RAMOS Ramos was able

to secure major peace agreements with Muslim separatists, communist insurgents and military rebels, which renewed investor confidence in the Philippine economy. Ramos also aggressively pushed for the deregulation of the nation's major industries and the privatization of bad government assets.

FIDEL V. RAMOSEconomy during his term in Administration . . .

ECONOMY President Fidel Ramos

embarked on an ambitious development plan dubbed "Philippines 2000." Under the plan, several industries critical to economic development were privatized, such as

electricity, telecommunications, banking, domestic shipping, and oil.

ECONOMY The taxation system was

reformed, and external debt was brought to more manageable levels by debt restructuring and sensible fiscal management. By 1996, GNP was growing at a rate of 7.2 percent and GDP at 5.2 percent. The annual inflation rate had dropped to 5.9 percent from its high of 9.1 percent in 1995. By the late 1990s, the Philippines' economic growth gained favorable comparisons with other Asian countries such as Taiwan, Thailand, South Korea, and Malaysia.

PHILIPPINE ECONOMY The Philippine economy

took a sharp downturn during the Asian financial crisis of 1997. Its fiscal deficit in 1998 reached P49.981 billion from a surplus of P1.564 billion in 1997. The peso depreciated (fell in value) to P40.89 per U.S. dollar from its previous rate of P29.47 to a dollar. The annual growth rate of the GNP fell to 0.1 percent in 1998 from 5.3 percent in 1997. Despite these setbacks, the Philippine economy fared better than that of some of its Asian neighbors, and other nations praised the Ramos administration for its "good housekeeping."

ECONOMIC REFORMS During his administration, Ramos began implementing economic

reforms intended to open up the once-closed national economy, encourage private enterprise, invite more foreign and domestic investment, and reduce corruption.

Ramos was also known as the most-traveled Philippine President compared to his predecessors with numerous foreign trips abroad, generating about US$ 20 billion worth of foreign investments to the Philippines.

To ensure a positive financial outlook on the Philippines, Ramos led the 4th Asia Pacific Economic Cooperation (APEC) Leaders' Summit in the Philippines on November 1996.

He also instituted reforms in the tax system which includes a forced increase on VAT (E-VAT law) from 4% to 10% mandated by World Bank and the International Monetary Fund.

ECONOMIC REFORMS Under his

administration, the Philippines enjoyed economic growth and stability. The Philippine Stock Exchange in the mid-1990s was one of the best in the world and his visions of Philippines 2000' that led the country into a newly industrialized country in the world and the "Tiger Cub Economy in Asia".

ECONOMIC REFORMS Other

economic reforms achieved during the Ramos administration was the re-adjustment of the value added tax from four percent to an International Monetary Fund and World Bank-mandated ten percent. The success of the reforms paved the way for the Philippines to be called "Asia's New Tiger"

ECONOMIC REFORMS Economic reforms

instituted during the Ramos era enabled the Philippines to experience growth rates of up to nine percent annually, and enjoy annual budget surpluses well into his tenure. The economic reforms instituted in the Philippines 2000 platform would have an effect on how the Philippines would be affected in the 1997 East Asian financial crisis.

PHILIPPINES 2000 FIVE-POINT PROGRAM

Philippines 2000 was the socio-economic program of former Philippine President Fidel V. Ramos. The plan envisioned the Philippines achieving newly industrialized country status by the year 2000.

PHILIPPINES 2000 FIVE-POINT PROGRAM

The Philippines 2000 platform largely hinged on five major areas:

Peace and Stability Economic Growth and Sustainable Development Energy and Power Generation Environmental Protection Streamlined Bureaucracy

He implemented economic reforms intended to open up the once-closed national economy, encourage private enterprise, invite more foreign and domestic investment, and reduce corruption.

EFFECTS AND LEGACY The Philippines 2000 platform

was widely successful, making it one of the greatest legacies of the Ramos administration to the Philippines. Ramos was successfully able to open the then-closed Philippine economy and break Marcos-era formed monopolies, especially with regard to Philippine Airlines and the Philippine Long Distance Telephone Company, which were privatized and de-monopolized during his tenure.

The Philippines 2000 program formed the core of the Ramos campaign platform in the 1992 elections which largely centered on economic reforms and improved national security and unity.

PREPARED BY:John Henry MadriagaJoshua Gabriel Buan

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