Economic history of the Philippines (1965–1986)

GDP per capita development in the Philippines 1965-1986

Economic History of the Philippines (1965–1986) covers the period of Philippine economic history during the presidency of Ferdinand Marcos, from 1965 to 1986. This era was marked by significant changes in the country's economic policies, including the imposition of Martial Law in 1972, which had profound effects on the nation's economic development, political landscape, and social structure.

Background

Before 1965, the Philippines' economy was largely based on agriculture and the export of natural resources. The country was a major producer of sugar, coconut, and other agricultural commodities. However, the economy faced numerous challenges, including high levels of poverty, unemployment, and income inequality.

Economic Policies and Developments

Upon assuming office in 1965, President Marcos initiated a series of economic reforms aimed at transforming the Philippine economy. These reforms included the promotion of industrialization, infrastructure development, and foreign investment. The government launched several major infrastructure projects, such as roads, bridges, and power plants, to support economic growth.

Industrialization

The Marcos administration pursued a policy of import substitution industrialization (ISI), aiming to reduce the country's dependence on imported goods by developing local industries. This policy led to the establishment of manufacturing plants and industries in various sectors, including textiles, chemicals, and steel.

Agricultural Reforms

Agricultural development was also a priority for the Marcos government. The administration implemented the Masagana 99 program, which aimed to increase rice production through the use of modern farming techniques and the provision of credit to farmers. However, the program had mixed results, with some areas experiencing increased production while others faced issues related to debt and land degradation.

Foreign Investment

To attract foreign investment, the Marcos administration established export processing zones (EPZs) where foreign companies could operate with tax incentives and fewer regulatory restrictions. These zones contributed to the growth of the export sector, particularly in electronics and garments.

Martial Law and Economic Impact

In 1972, President Marcos declared Martial Law, citing the need to suppress communist insurgency and maintain law and order. Martial Law allowed Marcos to rule by decree, and he used this power to implement further economic reforms. However, the period was also marked by increased political repression, human rights abuses, and corruption.

The imposition of Martial Law initially led to a period of economic stability and growth, as the government had greater control over the economy. However, by the late 1970s and early 1980s, the Philippine economy began to face significant challenges, including high levels of debt, inflation, and unemployment. The global economic downturn and the increase in oil prices further exacerbated the country's economic problems.

Conclusion

The economic history of the Philippines from 1965 to 1986 was a period of significant change and development. While the Marcos administration's policies led to some economic growth and industrialization, the benefits were unevenly distributed, and the period was also characterized by political repression and economic challenges. The legacy of this era continues to influence the Philippine economy and society today.