MACAPAGAL, MARCOS, AQUINO ADMINISTRATION

Macapagal Administration

(December 30, 1961- December 30, 1965)

• Diosdado was known as the “poor boy from Lubao,” and his story of success was an inspiration to all Filipinos. He brought the true meaning of nationalism to public service and honor to the word politics. He was assigned as a legal assistant to President Manuel Quezon.

• Diosdado Macapagal was a member of the Liberal party, his bearer for the national elections. He won the position of vice president in 1957. In the 1961 presidential elections where he ran for president, Macapagal won by a margin of 55.04% of the votes, against other candidates including former president Carlos Garcia. The main program in his campaign focused on the fight against graft and corruption.

• Diosdado Macapagal served as the fifth President of the Philippines. At first, Macapagal was very popular: he was articulate, charismatic, and he inspired great expectations of economic, political, and ethical reforms. He began a set of programs he called “New Era”

New Era Programs:

• Emergency Employment President Macapagal tried to boost the Philippine economy

by giving jobs to young Filipinos through a new program called Emergency Employment Administration (EEA). Thousands of jobs were created in reforestation, land clearing, and home industries.• Economic Liberalization

Under pressure from the US Government and international financial institutions, Macapagal reversed Garcia-era economic policies with economic liberalization policies: Lifting of foreign exchange controls:

Under Garcia, foreign (mostly American) companies in the Philippines had been prohibited from taking their profits back to the US. Macapagal lifted the controls, allowing foreign businesses to send their profits home. This resulted in a shortage of freign currency. The government was then forced to seek foreign loans to avoid a currency crisis.

Floating Peso: Under Garcia, the Peso had a fixed exchange rate, to keep low prices for domestically-produced goods and food. Macapagal allowed the Peso to “float” on currency exchange markets, causing a nearly-100% devaluation of the Peso, leading to increased consumer prices, hurting Filipino consumers.

Lifting of import controls: Under Garcia, foreign imports were limited, to encourage domestic production by Philippine businesses. Macapagal lifted these limits, with the result that foreign imports flooded in, hurting domestic industries and agriculture. But US businesses were happy.

Anti-Corruption Drive Macapagal had campaigned against Garcia on a platform of fighting corruption in

government, promising to eliminate them if elected. But his administration was soon tainted with corruption charges by a big scandal:

1962 Stonehill Scandal

• Harry Stonehill was a very successful American businessman in the Philippines. Justice Secretary Jose W. Diokno was investigating him for alleged corrupt practices when Diokno discovered that Stonehill had a “black book” listing top Philippine Government officials whom he had bribed. The list of names report edly included President Macapagal, his predecessor President Garcia, and much of the ruling Liberal Party and the opposition Nacionalista Party. Macapagal fired Secretary Diokno. When it seemed imminent that Stonehill would be forced to testify, with the potential scandal resulting in an impeachment of the president, Macapagal had Stonehill deported so he couldn’t testify.

• Within months of his inauguration, Macapagal plunged into the turmoil of scandals and controversies spawned by his reforms, and he quickly lost his original popularity.

• His five-year program included a shift in the investments from the light industries to chemicals, steel and industrial equipment. Macapagal formed a union called MAPHILINDO, an organization composed of South East Asian countries including Malaysia, the Philippines and Indonesia, in a bid to boost our country’s trade with our neighbors. The MAPHILINDO union gave the way to the formation of the Association of the Southeast Asian Nations or ASEAN.

• Macapagal's administration was a tool in changing many things that were established during the Spanish rule. The Philippine Independence Day was changed from July 4 to June 12, Dewey Boulevard was renamed Roxas Boulevard, Camp Murphy became Camp Aguinaldo, and Fort McKinley was replaced by Fort Bonifacio.

• In the 1965 election, he ran against Ferdinand Marcos but lost. Macapagal then became a blunt detractor of the Marcos administration. When the Constitutional Convention was formed in 1971, he was selected as president, and one of its major stipulations was to change the presidential form of government to parliamentary. On April 21, 1997, at the Makati Medical Center, Diosdado Macapagal died of heart failure, pneumonia and renal complications. He was 87 years old.

Marcos Administration

(1965- 1986)

• Ferdinand E. Marcos, who succeeded the presidency after defeating Macapagal in the 1965 elections, inherited the territorial dispute over Sabah; in 1968 he approved a congressional bill annexing Sabah to the Philippines. Malaysia suspended diplomatic relations (Sabah had joined the Federation of Malaysia in 1963), and the matter was referred to the United Nations. (The Philippines dropped its claim to Sabah in 1978.)

THE FIRST MARCOS TERM (1965 – 1969)• In his first term Marcos tried to stabilize the financial position

of the government through an intensified tax collection. He also borrowed heavily from international financing institutions to support a large-scale infrastructure works projects were built. He improved agricultural production to make the country self-sufficient in food, especially in rice.

• The Philippines became one of the founding countries of the Association of Southeast Asian Nations (ASEAN) in 1967. The continuing need for land reform promoted a new Huk uprising in central Luzon, accompanied by mounting assassinations and acts of terror, and in 1969, Marcos began a major military campaign to control them. Civil war also threatened on Mindanao, where groups of Moros opposed Christian settlement.

THE SECOND TERM OF MARCOS (1969 – 1972) • In November 1969 Ferdinand Marcos and Fernando Lopez

were re-elected. They defeated the Liberal Party ticket of Sergio Osmeña, Jr. and Senator Genaro Magsaysay. In winning the election, Marcos achieved the political distinction of being the first President of the Republic to be re-elected.

• The 1971 Constitutional Convention The Congress of the Philippines called for a Constitutional Convention on June 1, 1971 to review and rewrite the 1935 Constitution. Three-hundred twenty delegates were elected. The convention was headed first by former President Carlos P. Garcia and later by former President Diosdado Macapagal.

• The Convention's image was tarnished by scandals which included the bribing of some delegates to make them "vote" against a proposal to prohibit Marcos from continuing in power under a new constitution. This scandal was exposed by Delegate Eduardo Quintero. For exposing the bribery attempt, Quintero found himself harassed by the government.

• The first Papal Visit to the Philippines On November 27, 1970, Pope Paul VI visited the Philippines. It was the first time that the Pope had visited the only Catholic nation in Asia. Huge crowds met the Pope wherever he went in Metro Manila. The Pope left on November 29.

The Rise of Student Activism • Students’ protests on the prevailing conditions of the

country saddled the second term of Marcos in office. Large throngs of students went out into the street of Manila and other urban centers to denounce the rampant graft and corruption, human rights violation, high tuition fees, militarization and abuses of the military, the presence of the U.S. Military bases and the subservience of the Marcos Administration to U.S. interests and policies.

• The most violent student demonstration took place on January 1970 when thousands of student demonstrators tried to storm the gates of Malacañang. Six students were killed and many were wounded. This event came to be know as the "Battle of Mendiola".

The Rise in Acts of Violence• In the early 1970's many of the acts of violence were inspired

by the communists. Some, however, were believed to have been planned by pro-Marcos and other terrorist incidents rocked Metro Manila. The bloodiest was the Plaza Miranda Bombing on the night of August 1, 1971 where the Liberal Party had a political rally. Eight persons were killed and over 100 others were injured. Among the senatorial candidates injured were Eva Estrada Kalaw and several of its top officials.

• Marcos blamed the communists for the tragic incident. He suspended the writ of habeas corpus to maintain peace and other. The suspension was lifted on January 11, 1972. Hundred of suspected subversives among the ranks of students, workers and professionals were picked up and detained by the government.

 The Proclamation of Martial Law

• Marcos declared martial law on September 21, 1972 by virtue of Proclamation No. 1081. Martial Law remained in force until 1981, when Marcos was re-elected, in the midst of accusations of electoral fraud. Marcos, ruling by decree, curtailed press freedom and other civil liberties; closed down Congress and media establishments; and ordered the arrest of opposition leaders and militant activists, including his staunchest critics Senator Benigno Aquino, Jr. and Senator Jose Diokno. Initially, the declaration of martial law was well received, given the social turmoil the Philippines was experiencing. Crime rates plunged dramatically after a curfew was implemented. Political opponents were given the opportunity to go into exile. But, as martial law dragged on for the next nine years, excesses by the military emerged.

• Constitutionally barred from seeking another term beyond 1973 and, with his political enemies in jail, Marcos reconvened the Constitutional Convention and manoeuvred its proceedings to adopt a parliamentary form of government, paving the way for him to stay in power beyond 1973. Sensing that the constitution would be rejected in a nationwide plebiscite, Marcos decreed the creation of citizens' assemblies which anomalously ratified the constitution.

• Even before the Constitution could be fully implemented, several amendments were introduced to it by Marcos, including the prolongation of martial law and permitting himself to be President and concurrent Prime Minister. The economy during the decade was robust, with budgetary and trade surpluses. The Gross National Product rose from P55 billion in 1972 to P193 billion in 1980. Tourism rose, contributing to the economy's growth. The number of tourists visiting the Philippines rose to one million by 1980 from less than 200,000 in previous years. A big portion of the tourist group was composed of Filipino balikbayans (returnees) under the Ministry of Tourism's Balikbayan Program which was launched in 1973.

• The first formal elections since 1969 for an interim Batasang Pambansa (National Assembly) were held in 1978. In order to settle the Catholic Church before the visit of Pope John Paul II, Marcos officially lifted martial law on January 17, 1981. However, he retained much of the government's power for arrest and detention. Corruption and nepotism as well as civil unrest contributed to a serious decline in economic growth and development under Marcos, whose health declined due to lupus.

THE ESTABLISHMENT OF NEW PEOPLE'S ARMY (NPA) • Because of the perceived deplorable condition of the nation, the communist

movement subdued by President Magsaysay in 1950's, revived their activities and clamor for reform. A more radical group, the Maoists, who believed in the principles of Mao-Tse-Tung (leader of China) took over the communist movement. They reorganized the Communist Party of the Philippines (CPP) and created a new communist guerilla army called the New People's Army (NPA).

• The communists took advantage of the growing discontent with the Marcos. Administration to increase the number and strength. As a strategy, they actively supported a number of anti-Marcos groups. They infiltrated several student organizations, farmers, laborers and even professionals. The NPA gradually increased its ranks and spread to other parts of the country as far as Mindanao.

• After the Feb., 1986, presidential election, both Marcos and his opponent, Corazon Aquino (the widow of Benigno), declared themselves the winner, and charges of massive fraud and violence were leveled against the Marcos faction. Marcos’s domestic and international support battered and he fled the country on Feb. 25, 1986, finally obtaining refuge in the United States.

ECONOMIC CHANGES UNDER MARCOS • To hasten the economic development, President Marcos

implemented a number of economic programs. These programs helped the country to enjoy the period of economic growth I the mid-1970's up to the early 1980's.

• The farmers were given technical and financial aid and other incentives such as "price support". With the incentives given to the farmers, the country's agricultural sector grew. As a result, the Philippines became self-sufficient in rice in 1976 and even became a rice exporter.

• To help finance a number of economic development projects such as soil exploration, the establishment of geothermal power plants, the Bataan Nuclear Plant, hydro-electric dams, the construction of more roads, bridges, irrigation systems and other expensive infrastructure projects, the government engaged in foreign borrowings.

• Foreign capital was invited to invest in certain industrial projects. They were offered incentives including tax exemption privileges and the privilege of bringing out their profits in foreign currencies. One of the most important economic programs in the 1980's was the Kilusang Kabuhayan at Kaunlaran (KKK). This program was started in September 1981. Its aim was to promote the economic development of the barangays by encouraging the barangay residents to engage in their own livelihood projects.

• The government's efforts resulted in the increase of the nation's economic growth rate to an average of six percent to seven percent from 1970 to 1980. The rate was only less than 5 percent in the previous decade. The Gross National Product of the country (GNP) rose from P55 billion in 1972 to P193 billion in 1980.

• Another major contributor to the economic growth of the country was the tourism industry. The number of tourists visiting the Philippine rose to one million by 1980 from less than 200,000 in previous years. The country earned at $500 million a year from tourism. A big portion of the tourist group was composed of Filipino balikbayans under the Ministry of Tourism's Balikbayan Program which was launched in 1973.

• Another major source of economic growth of the country was the remittances of overseas Filipino workers. Thousands of Filipino workers found employment in the Middle East and in Singapore and Hongkong. These overseas Filipino workers not only helped ease the country's unemployment problem but also earned much-needed foreign exchange for the Philippines.

FOREIGN-RELATIONS POLICY UNDER MARCOS REGIME • In 1976 President Marcos announced to the Filipino people his

policy of establishing relations with communist countries such as the People's Republic of China (June 9, 1975) and the Soviet Union (June 2, 1976).

• Relations with the United States was modified. It was no longer based on the "sentimental ties" but on mutual respect for each other's national interest. Thus, the military and economic agreements between U.S. and the Philippines were amended to reflect this new relationship. In the amendments to the RP-U.S. Military Bases Agreement of 1947, the U.S. acknowledged the sovereignty of the Philippines over the American military bases in the country (Subic and Clark). These bases would have a Filipino commander and would fly the Philippine flag. IN addition, the U.S agreed to pay rentals to the Philippines for the use of the bases.

• Marcos established closer ties with the Asian countries. The Philippines became a leading member of the Third-World – the collective name for the developing countries at that time. The Philippines actively participated in such world conferences as the United Nations Conference on Trade and Development (UNCTAD) meeting held in Nairobi, Kenya, in 1976 and in the International Meeting on "Cooperation and Development held by the heads of 21 nations in Cancun, Mexico, in 1981.

• Marcos took his oath of office on June 30, 1981 at the Luneta Park for a six-year term ending in 1987. On that occasion Marcos announced the establishment of a "New Republic of the Philippines".

The lifting of Martial Law• After implementing the program of development, Pres.

Marcos issued Proclamation NO. 2045 on January 17, 1981, lifting Martial Law. Martial Law lasted for eight years, 3 months and 26 days. Mr. Marcos lifted Martial law to show to the Filipinos and the world that the situation in the Philippines was already back to normal. The government had already been functioning smoothly under the 1973 Constitution. Despited the lifting of Martial law, however, Marcos remained powerful and practised authoritarian rule.

The Snap Election of 1986• The rumors turned to be true because in November 1985,

Marcos announced that there would be a snap presidential election. Marcos said that he needed a new mandate from the people to carry out a national economic recovery program successfully. The Batasang Pambansa enacted a law scheduling the election on February 7, 1986.

• The divided opposition had the problem of choosing a candidate to fight Marcos. There were several opposition leaders who aspired to run for president, one of them being former Senator Salvador "Doy" H. Laurel who was nominated in June 1985 by the UNIDO to be its presidential candidate in any future presidential election. But none of them could unite the opposition.

Plans for a Military Coup De'etat• While the anti-Marcos sentiment in the country was growing, a group

of young officers in the Armed Forces of the Philippines were making their own plans to overthrow the Marcos dictatorship. These officers were the leading organizers and members of a group known as the Reform the AFP Movement (RAM)

• This movement was started in March 1985 by a group of officers who were graduated of the Philippine Military Academy. Its main aim was to work for reform in the armed forces. Just like the other branches of the government, the AFP was riddles with graft and corruption, favoritism and other anomalies that demoralized the decent members of the military. RAM wanted the restoration of professionalism in the military so that the AFP could regain its honor and pride. A reformed AFP, the movement's organizers believed, would be able to fight more effectively the growing communist threat in the Philippines. Minister of Defense Juan Ponce Enrile secretly sympathized with RAM. The members of the RAM came to be known as reformists.

Aquino Administration

(1986-1992)

• In 1983 she succeeded her husband who was assassinated upon his return to the Philippines in August 21, 1983 to participate in promised elections. In the turmoil that erupted over his murder, the widowed Corazon became the symbol of moral opposition to the Marcos government. A movement against Marcos came about since it was believed that he was instrumental in the death of Ninoy Aquino. It was also the desire of the Filipino people to put an end to the 20 years of dictatorship. This movement, which was led by Cory Aquino, escalated nationwide and involved the support of the coalition of people of all ages and from practically all walks of life.

LAWS AND PROGRAMS

• Land Reform• Free secondary schooling• Proclamation No.9 - Cory issues Proclamation No. 9 which provides for the creation of a constitutional commission (Concom) to draft a new charter “truly reflective of the ideals and aspirations of the Filipino People,” on or before September 2 of the same year. She appoints 48 men and women, led former justice Cecilia Muñoz Palma, to be members of the Concom

• Proclamation no. 1 - Cory, in her inaugural address, issues her first edict: Proclamation No. 1 calling all appointive public officials to submit their courtesy resignations. In her speech, she proceeded to reorganize the government issuing Executive Order No. 1—appointing Cabinet ministers and task forces to help her run the government.

• Proclamation no.3 - One month after assuming the presidency, Cory issues Proclamation No. 3, proclaiming her government a “revolutionary government.” With this, she suspends the 1973 Constitution installed during martial law and promulgates a provisional “Freedom Constitution,” which vests legislative making powers on her, pending the enactment of the new constitution.

• United States trading in the First Philippine Fund Inc. - On November 9, she opens United States trading in the First Philippine Fund Inc. She later spoke at a meeting of the United States Chamber of Commerce and the United States-Philippine Business Committee, where she urged American business to increase its investment in the Philippines.

• Ratification of a 1991 treaty - A president must also learn how to bow to the inevitable, as Cory had to do with the negotiations on the renewal of the US lease on its military bases in the Philippines. After keeping her options open, she signalled her support for the ratification of a 1991 treaty allowing the Americans continued access to the installation for ten years, with the option to renew for another ten. The Senate voted 12-11 against the agreement and the Americans were out of the country by 1992.

• Administrative Code of 1987 - establishes the various Cabinet departments and offices falling within the executive branch of government, and under the direct control and supervision of the President. The Code also prescribes the administrative procedure undertaken in proceedings before the offices under the executive department.

• Executive Order No. 228, July 16, 1987 – Declared full ownership to qualified farmer-beneficiaries covered by PD 27. It also determined the value remaining unvalued rice and corn lands subject of PD 27 and provided for the manner of payment by the FBs and mode of compensation to landowners.

• Executive Order No. 229, July 22, 1987 – Provided mechanism for the implementation of the Comprehensive Agrarian Reform Program (CARP).

• Proclamation No. 131, July 22, 1987 – Instituted the CARP as a major program of the government. It provided for a special fund known as the Agrarian Reform Fund (ARF), with an initial amount of Php50 billion to cover the estimated cost of the program from 1987-1992.

• Executive Order No. 129-A, July 26, 1987 – streamlined and expanded the power and operations of the DAR.

• Republic Act No. 6657, June 10, 1988 (Comprehensive Agrarian Reform Law) – An act which became effective June 15, 1988 and instituted a comprehensive agrarian reform program to promote social justice and industrialization providing the mechanism for its implementation and for other purposes. This law is still the one being implemented at present.

• Executive Order No. 405, June 14, 1990 – Vested in the Land Bank of the Philippines the responsibility to determine land valuation and compensation for all lands covered by CARP.

• Executive Order No. 407, June 14, 1990 – Accelerated the acquisition and distribution of agricultural lands, pasture lands, fishponds, agro-forestry lands and other lands of the public domain suitable for agriculture