The philippines amidst the asian financial

Headline Inflation Rates from to estimates derived from CPI figures in the Philippine Statistical Yearbook Economic breakthroughs by administration[ edit ] Aquino administration[ edit ] The Aquino administration takes over an economy that has gone through socio-political disasters during the People Power revolution, where there was financial and commodity collapse caused by an overall consumer cynicism, a result of the propaganda against cronies, social economic unrest resulting from numerous global shortages, massive protests, lack of government transparency, the opposition's speculations and alleged corruption in the government. Most of the immediate efforts of the Aquino administration was directed in reforming the image of the country and paying off all debts, including those that some governments were ready to write-off, as possible. This resulted in budget cuts and further aggravated the plight of the lower class because the jobs offered to them by the government was now gone. Infrastructure projects, including repairs, were halted in secluded provinces turning concrete roads into asphalt.

The philippines amidst the asian financial

Most of the immediate efforts of the Aquino administration was directed in reforming the image of the country and paying off all debts, including those that some governments were ready to write-off, as possible. This resulted in budget cuts and further aggravated the plight of the lower class because the jobs offered to them by the government was now gone.

Infrastructure projects, including repairs, were halted in secluded provinces turning concrete roads into asphalt. Privatization of many government corporations, most catering utilities, was the priority of the Aquino administration which led to massive lay-offs and inflation.

The Aquino administration however, was persistent in its belief that the problems were caused by the previous administration. Growth gradually began in the next few years of the administration. Somehow, there was still a short-lived, patchy, and erratic recovery from to as the political situation stabilized a bit.

With this, the peso became more competitive, confidence of investors was gradually regained, positive movements in terms of trade were realized, and regional growth gradually strengthened.

The philippines amidst the asian financial

There were other key events in the administration that affected the economy. This approach, which also proved important in regaining the confidence of investors, whether domestic or foreign, was definitely unthinkable during the Marcos era.

The administration was also characterized by the rescheduling and management of international debts, an exhibition perhaps of the fact that other external entities also sympathized with what happened to the Philippines and also allowed the Philippines to get back on track before anything else.

Development in this administration, however, was slightly bothered by some unforeseen circumstances such as organized coups by the Reformed Armed Forces Movement in Negotiations with Mindanao also stalled development along with the coup attempts.

The Philippines was also hit by the oil price hike effects of the Gulf War. Pressure on government spending and safety nets was intensified as natural calamities like earthquakes and the eruption of Mt. Pinatubo plagued the country, just as if the daily brownouts were not bad enough.

Philippine Resiliency to the Asian Financial Crises

One of the most important policies of the administration is the launching of the Comprehensive Agrarian Reform Program in Junewhich involved the acquisition and redistribution of all agricultural lands within a time frame of 10 years. So far, the law has already had numerous accomplishments since it was actually passed.

There were setbacks, however, in the overall implementation of this reform program such as the Garchitorena scandal tainting the Department of Agrarian Reform DAR and supposedly exposing inefficiencies in the government bureaucracy.

Another important breakthrough involved in the program was the fact that the program was also seen as a way to address poverty and equity issues. Also important in the administration were the trade reforms. The trade reforms pushed by the administration were those that improved export growth and foreign trade through the abolishing of export taxes, the gradual liberalization of imports, and the imposition of an anti-export bias ideal.

Tariff rates were also eventually reduced to encourage more foreign trade. As for industry dispersal and regional growth, the administration conceptualized and enforced the Local Government Code of which increased the autonomy and development of Local Government Units through decentralization.

It was during this administration when the Bangko Sentral ng Pilipinas was established, and this administration was also when the Philippines joined the World Trade Organization and other free trade associations such as the APEC.

During the administration, debt reduction was also put into consideration and as such, the issuance of certain government bonds called Brady Bonds also came to fruition in Key negotiations with conflicting forces in Mindanao actually became more successful during the administration, which also highlighted the great role and contributions of Jose Almonte as the key adviser of this liberal administration.

By the time Ramos succeeded Corazon Aquino inthe Philippine economy was already burdened with a heavy budget deficit. This was largely the result of austerity measures imposed by a standard credit arrangement with the International Monetary Fund and the destruction caused by natural disasters such as the eruption of Mt.

Hence, according to Canlas, pump priming through government spending was immediately ruled out due to the deficit. Ramos therefore resorted to institutional changes through structural policy reforms, of which included privatization and deregulation.

He sanctioned the formation of the Legislative-Executive Development Advisory Council LEDACwhich served as a forum for consensus building, on the part of the Executive and the Legislative branches, on important bills on economic policy reform measures 4. The daily brownouts that plagued the economy were also addressed through the enactment of policies that placed guaranteed rates.

The economy during the first year of Ramos administration suffered from severe power shortage, with frequent brownouts, each lasting from 8 to 12 hours. Twenty power plants were built because of these, and in effect, the administration was able to eliminate the power shortage problems in December and sustained economic growth for some time.

However, the Asian Crisis contagion which started from Thailand and Korea started affecting the Philippines. This prompted the Philippine economy to plunge into continuous devaluation and very risky ventures, resulting in property busts and a negative growth rate. The remarkable feat of the administration, however, was that it was able to withstand the contagion effect of the Asian Crisis better than anybody else in the neighboring countries.

Most important in the administration was that it made clear the important tenets of reform, which included economic liberalization, stronger institutional foundations for development, redistribution, and political reform.

The liberalization and opening of the capital opening culminated in full-peso convertibility in For fiscal policy, on the other hand, the administration worked on bills to expand the scope of VAT. There was even a budget surplus in the years to due to the effective tax-enhancement program by the administration.The Philippines remains a strong growth performer in the East Asia region.

While the Philippine economic growth moderated to percent year-on-year in the first half of from percent in the same period last year, the Philippines was among the top three growth performers in the region.

The Asian economic crisis triggered by the events in Thailand in the second quarter of occasions another look into FDI in the Philippines, this time within the context of the divergence in the movement of FDI flows into the five Asian countries. Kohli, H S & Sharma, A (eds) , A resilient asia amidst global financial crisis: from crisis management to global leadership, SAGE Publications India Pvt Ltd, New Delhi, viewed 31 October , doi: / Kohli, Harinder S and Ashok Sharma, eds.

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 PHILIPPINES PHILIPPINE FINANCE ASSOCIATION Makati City PHILIPPINES THE PHILIPPINE ECONOMY: Philippine GDP at % in , the Fastest Growth in the last Three Years The Philippine Economy grew by % in , the fastest in the last three years, coming off the heels of an election year amidst a volatile global economic environment.

The Philippines amidst the Asian Financial Crisis And the Global financial Crisis I. Introduction Since before, there had been many financial crisis happened, for instance the Great depression of the ’s, the U.S recession of and other financial crisis.

Presidency of Fidel Ramos - Wikipedia