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RATE OF GROWTH OF GNP

%

DISTRIBUTION OF INCOME PER PERCENTAGE SHARE

2010

2000

1990

1980

1970

1960

Why is the Philippines poor?

50

unemployment rate

14.2 % of country’s income are shared by 80% of the population

32.27 million Filipinos are living below the Asian poverty line

underemployment rate

40

17 million live on less than $1 a day 57% of the population consider themselves poor

30 %

UNEMPLOYMENT & UNDEREMPLOYMENT RATES

PROBLEM

UNEMPLOYMENT & UNDEREMPLOYMENT

8 7 6 5 4 3 2 1 0 -1

6 out of 10 believe they were worse off than the year before

20

7 out of 10 felt their quality of life has deteriorated

10

1 in 5 families does not have access to safe water supply

0

1975

2005

11.6% of GDP US $18.6 billion

Seabased workers were mandated to remit 80% of their earnings Professional workers to remit 70% Domestic and other service worker to remit 50%

REMITTANCES

SOLUTION

Marcos attempted to use the country’s surplus labor and high demand for labor in oil-producing countries to demonstrate the feasibility of “interdependent development.”

LABOR MIGRATION

35.8% of country’s income are shared by 20% of the population

US $103 million

10% of population

GOALS

NUMBER OF MIGRANTS DEPLOYED (in thousands)

1000

NUMBER OF MIGRANT WORKERS

To reduce levels of employment

800

To improve the stock of human capital To promote Philippine development and alleviate balance of payment problems through mandatory remittances.

600 400

CONS

taxes from remittances foreign exchange investment in human investment in physical capital helps fill unemployment helps fill underemployment multiplier effect diasporic philanthrophy brain gain

corruption from remittance taxes lax government in agriculture development Dutch disease brain drain shrinking middle class youth drain homogenous culture relative deprivation income inequality dependency behavior absent parent split marriages exploitation or abuse

This was perceived as politically safe and advantageous strategy Presented in such a way that the government was seen as providing jobs to the masses of unemployed and underemployed workers.

200 0

PROS

1975

2005

There are an estimated 250 political families nationwide, with at least 1 in every province.

POLITICAL DYNASTIES

NATIONAL OLIGARCHIES

There are about 100 or so Filipino families that control most of the country’s business.

Family Ownership Most major Filipino families had control of a bank, and meant that the state’s abillity to reward or punish actions was limited. Source: 1979

LANDED FAMILIES

GRAFT & CORRUPTION

members of political families in Congress

5000 4000 3000 2000

2010

2000

Clan wars, election-related massacre (57 killed) All presidential candidates for 2010 elections belong to a political family

Arroyo

Estrada Estrada impeached and charged for corruption

1000

52.3% of country’s income are shared by 1% of the population

INEFFECTIVE GOVERNMENT

Local election, political violence (nearly 100 killed)

Marcos’ crony Eduardo Cojuangco Jr. reclaims SAN MIGUEL†

Ramos Aquino’s maintains and expands the existing policy of labor export

US Naval Base closes

Asian Crisis

1990

1980 People Power marked the end of Marcos’ regime

Philippine Overseas Employment Association was established Marcos’ opposition Benigno Aquino assasinated

PCGG established to recover ill-gotten wealth from Marcos’ regime

Marcos declares MARTIAL LAW†

Passes MAGNA CARTA OF LABOR†

Blas Ople initiated a program for the overseas employment of Filipino workers

Oil price shock

Policy on overseas employment remained the same Migrant welfare issues arose: OFW† Flor Contemplacion executed; OFW† Sarah Balabagan raped; Maricris Sioson murdered Government denies they promote overseas employement

6000

Aquino

Marcos

DEBT

Marcos heavily promotes EOI†

WB† and IMF† encourages Philippine government to implement EOI†

ADMINISTRATION

FOREIGN BORROWING (US $ million)

1970

1960

non-members of political families in Congress

HISTORICAL NOTES

ROOT PROBLEM

Crony Capitalism Marcos’ vision of a “Bagong Lipunan” (New Society) was pursued during the martial law years. It was a movement urging the poor and the privileged to work as one for the common goals of society, and to achieve the liberation of the Filipino people through self-realization. Marcos confiscated businesses owned by oligarch families, but distributed them to small-time crony businessmen who took over these businesses and used them as fronts to launder proceeds from institutional graft and corruption in the different national governmental agencies.

“We own practically everything in the Philippines...” —IMELDA MARCOS (1998)

Fabian Ver

30th Richest Filipino (2009) Net worth: $70 million

Marcos

Imelda Marcos, Benjamin Romualdez (Imelda’s cousin)

Rolex 12, Marcos cronies

Eduardo Cojuangco Jr Juan Ponce Enrile

BECAME OWNERS OF THE NATION’S LARGEST CORPORATIONS

MONOPOLIZED THE FOLLOWING INDUSTRIES:

Roberto Benedicto

Antonio Floirendo

Lucio Tan

Herminio Disini Ricardo Silverio

$2.3 billion

Debt for BNPP † 7th Richest Filipino (2009)

2nd Richest Filipino (2009)

Net worth: $610 million

Net worth: $1.5 billion

Total foreign and domestic debt P4.655 trillion Debt servicing eats up one-third of the national budget.

0

change in external debt interest payments

The government lost about US$48 billion to corruption over a 20-year period

† Terms

BNPP - Bataan Nuclear Power Plant, largest white elephant from Marcos’ regime EOI – Export-oriented Industrialization IMF – International Monetary Fund MARTIAL LAW allows Marcos’ technocrats to control/reorient national economy MAGNA CARTA OF LABOR was designed to favor foreign investors, selected members of landed oligarchy, and Marcos himself OFW - Overseas Filipino Worker PCGG – Philippine Presidential Commission on Good Government ROLEX 12 – 12 cloest and most powerful advisers of Marcos SAN MIGUEL – Southeast Asia's largest food and beverage firm WB – World Bank



Edeline Bernal - catalog images