Chapter 1 Emilio F.

Aguinaldo [1898-1901] Biography Emilio Aguinaldo was born on 23 March 1869 in Cavite Viejo (present-day Kawit), Cavite, to Carlos Aguinaldo and Trinidad Famy, a Chinese mestizo couple who had eight children, the seventh of whom was Emilio. The Aguinaldo family was quite well-to-do, as Carlos Aguinaldo was the community's appointed gobernadorcillo (municipal governor). Emilio became the cabeza de barangay of Binakayan, a chief barrio of Cavite del Viejo, when he was only 17 years old. In 1895 a law that called for the reorganization of local governments was enacted. At the age of 26 Aguinaldo became Cavite Viejo's first capitan municipal. On 1 January 1896 he married Hilaria Del Rosario (18771921), and the couple had five children: Carmen Aguinaldo Melencio, Emilio Aguinaldo, Jr, Maria Aguinaldo Poblete, Cristina Aguinaldo and Suntay Miguel Aguinaldo. Hilaria died of leprosy on 6 March 1921 at the age of 45. After his wife's death Aguinaldo married Maria Agoncillo on July 14, 1930 at Barasoain Church. His great-grandchildren are elusive to the public eye and continue to support Aguinaldo's traditions, such as awarding the Philippine Military Academy Aguinaldo Saber Award. The youngest, Emiliana, currently continues to confer the award. Aguinaldo died of coronary thrombosis at age 94 on 6 February 1964 at the Veterans Memorial Medical Center in Quezon City. A year before his death, he had 1

donated his lot and his mansion to the government. This property now serves as a shrine to "perpetuate the spirit of the Revolution of 1896." Advocacy In 1894, Aguinaldo joined the Katipunan or the K.K.K., a secret organization led by Andrs Bonifacio, dedicated to the expulsion of the Spanish and independence of the Philippines through armed force. Aguinaldo used the nom de guerre Magdalo, in honor of Mary Magdalene. His local chapter of the Katipunan, headed by his cousin Baldomero Aguinaldo, was also called Magdalo. The Katipunan revolt against the Spanish began in the last week of August 1896 in San Juan del Monte (now part of Metro Manila). However, Aguinaldo and other Cavite rebels initially refused to join in the offensive alleging lack of arms. Their absence contributed to Bonifacio's defeat. While Bonifacio and other rebels were forced to resort to guerrilla warfare, Aguinaldo and the Cavite rebels won major victories in set-piece battles, temporarily driving the Spanish out of their area. Contributions/Achievements In April 1898 the Spanish-American War broke out. In the Battle of Manila Bay on 1 May 1898, the American Asiatic Squadron under Commodore George Dewey engaged and destroyed the Spanish Pacific Squadron, and blockaded Manila. Dewey provided transport to return Aguinaldo to the Philippines. Aguinaldo promptly resumed command of revolutionary forces and besieged Manila. Dictatorial government and declaration of independence from Spain. On 24 May 1898 in Cavite, Aguinaldo issued a proclamation in which he assumed command of all Philippine forces and established a dictatorial government with himself as dictator. On 18 June, after declaring independence from Spain on 12 June, Aguinaldo issued a decree formally establishing his dictatorial government. 2

Revolutionary President. On 23 June, Aguinaldo issued a decree replacing his dictatorial government with a revolutionary government, with himself as President. Presidency at Malolos. The insurgent First Philippine Republic was formally established with the proclamation of the Malolos Constitution on 21 January 1899 in Malolos,Bulacan and endured until the capture of Emilio Aguinaldo by the American forces on 23 March 1901 in Palanan, Isabela, which effectively dissolved the First Republic. Aguinaldo appointed two premiers in his tenur, Apolinario Mabini and Pedro Paterno. He had two cabinets in the year 1899. Thereafter, the military situation growing out conflict with the Americans resulted in his ruling by decree. Crises Conflict between the Magdalo and Magdiwang Katipunan factions led to

Bonifacio's intervention in the province of Cavite. The Cavite rebels then made overtures about establishing a revolutionary government in place of the Katipunan. Though Bonifacio already considered the Katipunan to be a government, he acquiesced and presided over a convention held on 22 March 1897 in Tejeros,Cavite. There, the republic of the Philippines was proclaimed, with Aguinaldo being elected president. Bonifacio was elected Director of the Interior but, after Daniel Tirona questioned his qualifications for that position, became angered and declared "I, as chairman of this assembly, and as President of the Supreme Council of the Katipunan, as all of you do not deny, declare this assembly dissolved, and I annul all that has been approved and resolved." Bonifacio refused to recognize the revolutionary government headed by Aguinaldo and attempted to reassert his authority, accusing the Aguinaldo faction of treason and by issuing orders contravening orders issued by the Aguinaldo faction. At Aguinaldo's orders, Bonifacio and his brothers were arrested and, in a mock trial lasting one day, convicted of treason, and sentenced to death. After some vacillation, Aguinaldo 3

initially commuted the death sentence, but cancelled his commutation order after being convinced by General Manuel Noriel, President of the Council of War, and others prominent in his government that the death sentence must stand. Andrs and Procopio were executed by firing squad on 10 May 1897 at Mount Hulog, Maragondon, Cavite. From as early as March 1897, Fernando Primo de Rivera, as Spanish GovernorGeneral of the Philippines had been encouraging prominent Filipinos to contact Aguinaldo for a peaceful settlement of the conflict. On 9 August, Manila lawyer Pedro A. Paterno met with Aguinaldo at Biak-na-Bato with a proposal for peace based on reforms and amnesty. In succeeding months, Paterno conducted shuttle diplomacy, acting as an intermediary between de Rivera and Aguinaldo. On 14 December and 15 December 1897 Aguinaldo signed the Pact of Biak-na-Bato, under which Aguinaldo effectively agreed to end hostilities and dissolve his government in exchange for amnesty and "$800,000 (Mexican)" (Aguinaldo's description of the amount) as an indemnity. The documents were signed on 14 December and 15 December 1897. On 23 December, Aguinaldo and other insurgent officials departed for Hong Kong to enter voluntary exile. $400,000, representing the first installment of the indemnity, was deposited into Hong Kong banks. While in exile, Aguinaldo reorganized his revolutionary government into the socalled "Hong Kong Junta" and enlarging it into the "Supreme Council of the Nation".

Chapter 2 Manuel L. Quezon 4

[1935-1944] Biography Manuel L. Quezn, was born in Baler in the district of El Prncipe (which later became Baler, Tayabas, now Baler, Aurora). His Spanish parents were Lucio Quezn and Mara Dolores Molina. His father was a primary grade school teacher from Paco, Manila, and also a retired Sergeant in the Spanish colonial army, while his mother was a primary grade school teacher in their hometown. Although both his parents must have

contributed to his education, he received most of his primary education from the public school established by the Spanish government in his village, as part of the establishment of the system of free public education in the Philippines, as he himself testified during his speech delivered in the House of Representatives of the United States during the discussion of Jones Bill, in 1914. He later boarded at the Colegio de San Juan de Letran where he completed secondary school. In 1898, his father Lucio and his brother Pedro were ambushed and killed by armed men while on their way home to Baler from Nueva Ecija. Some historians believe they were murdered by bandits who also robbed their money, while others believe the killings could have been related to their loyalty to the Spanish government. In 1899, Quezn cut short his law studies at the University of Santo Toms in Manila, to participate in the struggle for independence against the United States, led by Emilio Aguinaldo. During the Philippine-American War he was an ayuda-de-campo to Emilio Aguinaldo. He rose to the rank of Major and fought in the Bataan sector. However, after surrendering in 1900 wherein he made his first break in the American 5

press, Quezn returned to the university and passed the bar examinations in 1903, achieving fourth place. He worked for a time as a clerk and surveyor, entering government service as an appointed fiscal for Mindoro and later Tayabas. He became a councilor and was elected governor of Tayabas in 1906 after a hard-fought election. Quezn was married to his first cousin, Aurora Aragn Quezn, on December 17, 1918 the couple had four children: Mara Aurora "Baby" Quezn (19191949), Mara Zeneida "Nini" Quezn-Avancena (born 1921), Luisa Corazn Paz "Nenita" Quezn (19231923) and Manuel L. "Nonong" Quezn, Jr. (19261998). His grandson, Manuel L. "Manolo" Quezn III (born 1970), a prominent writer and current undersecretary of the Presidential Communications Development and Strategic Planning Office, was named after him. Quezn suffered from tuberculosis and spent his last years in a "cure cottage" in Saranac Lake, New York, where he died on August 1, 1944. He was initially buried in Arlington National Cemetery. His body was later carried by

the USS Princeton and re-interred in Manila at the Manila North Cemetery on July 17, 1946 before being moved to Quezon City within the monument at the Quezon Memorial Circle on August 19, 1979. Advocacy To reflect with Quezonz advocacy let us take his political philosophy in consideration. Here are some of his quotes: "My loyalty to my party ends where my loyalty to my country begins." "Social Justice is far more beneficial when applied as a matter of sentiment, and not of law."

"I would rather have a country run like hell by Filipinos than a country run like heaven by the Americans, because however bad a Filipino government might be, we can always change it." "Pray for me so that I can return to the Philippines. I feel so weak that I'm afraid I cannot make it" "I'd rather be called "Quezn the Letranite" than "Quezn the President"." "The Latin American people believed and feel that we Filipinos form past of that vast family, the children of Spain. Thus, although Spain ceased to govern those countries many years ago and although another nation is sovereign in the Philippines, those Latin-American peoples feel themselves as brothers to the people of the Philippines. It is the Spanish language that still binds us to those peoples, and the Spanish language will bind us to those peoples eternally if we have the wisdom and patriotism of preserving it." Civics and Ethics Code. As promulgated by the Manuel L. Quezn, the first President of the Philippine Commonwealth: 1. Have faith in Divine Providence that guides the destinies of men and nations. 2. Love your country for it is the home of your people, the seat of your affections, and the sources of your happiness and well-being. Its defense is your primary duty. Be ready at all times to sacrifice and die for it if necessary. 3. Respect the Constitution which is the expression of your sovereign will. The government is your government. It has been established for your safety and welfare. Obey the laws and see that they are observed by all and that public officials comply with their duties. 4. Pay your taxes willingly and promptly. Citizenship implies not only rights but also obligations. 5. Safeguard the purity of suffrage and abide by the decisions of the majority. 7

6. Love and respect your parents. It is your duty to serve them gratefully and well. 7. Value your honor as you value your life. Poverty with honor is preferable to wealth with dishonor. 8. Be truthful and be honest in thought and in action. Be just and charitable, courteous but dignified in your dealings with your fellowmen. 9. Lead a clean and frugal life. Do not indulge in frivolity or pretense. Be simple in your dress and modest in your behavior. 10.Live up to the noble traditions of our people. Venerate the memory of our heroes. Their lives point the way to duty and honor. 11.Be industrious. Be not afraid or ashamed to do manual labor. Productive toil is conductive to economic security and adds to the wealth of the nation. 12.Rely on your own efforts for your progress and happiness. Be not easily discouraged. Persevere in the pursuit of your legitimate ambitions. 13.Do your work cheerfully, thoroughly, and well. Work badly done is worse than work undone. Do not leave for tomorrow what you can do today. 14.Contribute to the welfare of your community and promote social justice. You do not live for yourselves and family alone. You are part of society to which you owe definite responsibilities. 15.Cultivate the habit of using goods made in the Philippines. Patronize the products and trades of your countrymen. 16.Use and develop our natural resources and conserve them for posterity. They are the inalienable heritage of our people. Do not traffic with your citizenship. The vital lesson we must learn from our past is that we can triumph if we only persevere. The Filipino people, by grit, hard work, and faith in God, will march forward to fulfill their destiny. Contributions/Achievements 8

In 1935 Quezn won the Philippine's first national presidential election under the banner of the Nacionalista Party. He obtained nearly 68% of the vote against his two main rivals, Emilio Aguinaldo and Gregorio Aglipay. Quezn was inaugurated in November 1935. He is recognized as the second President of the Philippines. However, in January 2008, House Representative Rodolfo Valencia of Oriental Mindoro filed a bill seeking instead to declare GeneralMiguel Malvar as the second Philippine President, having directly succeeded Aguinaldo in 1901. Supreme Court Appointments. President Quezn was given the power under the reorganization act, to appoint the first all-Filipino Supreme Court of the Philippines in 1935. From 1901 to 1935, although a Filipino was always appointed chief justice, the majority of the members of the Supreme Court were Americans. Complete Filipinization was achieved only with the establishment of the Commonwealth of the Philippines in 1935. Claro M. Recto and Jos P. Laurel were among Quezn's first appointees to replace the American justices. The membership in the Supreme Court increased to 11: a chief justice and ten associate justices, who sat en banc or in two divisions of five members each. Government Reorganization. To meet the demands of the newly established government set-up and in compliance with the provisions of the Tydings-McDuffie law, as well as the requirements of the Constitution, President Quezn, true to his pledge of "More Government and less politics", initiated a reorganization of the government bodies. To this effect, he established the Government Survey Board to study the existing institutions and in the light of the changed circumstances, make the necessary recommendations. Early results were seen with the revamping of the Executive Department. Offices and bureaus were either merged with one another or outrightly abolished. Some new ones, however, were created. President Quezn ordered the transfer of the Philippines 9

Constabulary for the Department of Interior, were placed under the Department of Finance. Among the innovations in the Executive Departments by the way of modification in functions ore new creations, were those of the National Defense, Agriculture and Commerce, Public Works and Communications, and Health and Public Welfare. In Keeping with other exigencies posed by the Constitution, new offices and boards were created either by Executive Order or by appropriate legislative action. Among these were the Council of National Defense, the Board of National Relief, the Mindanao and Sulu Commission, and the Civil Service Board of Appeals. Social justice program. Pledged to improve the lot of the Philippine working class and seeking the inspiration from the social doctrines of Leo XIII and Pius XI, aside from the authoritative treatises of the world's leading sociologists, President Quezn started a vigorous program of social justice, which he traduced into reality through appropriate executive measures and legislation obtained from the National Assembly. Thus, a court of Industrial Relations was established by law to take cognizance disputes, under certain conditions, minimizing in this wise the inconveniences of the strikes and lockouts. A minimum wage law was enacted, as well as a law providing for a maximum of eight hours daily work and a Tenancy law for the Filipino farmers. Another effective measure was the creation of the position of Public Defenders to help indigent litigants in their court suits. Commonwealth Act No. 20 authorize President Quezn to institute expropriation proceedings and/or acquire large landed estates to re-sell them at nominal cost and under easy terms to tenants thereon, thus enabling them to possess a lot and a home of their own. It was by virtue of this law that the Buenavista estate was acquired by the Commonwealth Government. President Quezn also launched a cooperative system of 10

agriculture among the owners of the subdivided estates in order to alleviate their situation and provide them grater earnings. In all these, President Quezn showed an earnest desire to follow the constitutional mandate on the promotion of social justice. Economy. Upon the advent of the Commonwealth fortunately the economic condition of the country was stable and promising. With foreign trade reaching a peak of four hundred million pesos, the upward trend in business was accentuated and assumed the aspect of a boom. Exports crops were generally good and, with the exemption of tobacco, they were all in excellent demand in foreign trade markets. Indeed the value of the Philippine exports reached an all high of 320,896,000 pesos, the highest since 1929. On the other hand, government revenues amounted to 76,675,000 pesos in 1936, as compared with the 1935 revenue of 65,000,000 pesos. Even the government companies, with the exemption of the Manila Railroad, managed to earn profits. Gold production increased about 37% and iron nearly 100%, while cement production augmented some 14%. Notwithstanding this prosperous situation, the government had to meet certain economic problems besetting the country and which, if attended to, might jeopardize the very prosperity then being enjoyed. For this Purpose the National Economic Council was created by law. This body advised the government in economic and financial questions, including promotion of industries, diversification of crops and enterprises, tariffs, taxation, and formulation of an economic program in the contemplation of the future independent Republic of the Philippines. Again, a law reorganized the National Development Company, the National Rice and Corn Company (NARIC) was created by law. It was given a capital of four million pesos. 11

Upon the recommendation of the National Economic Council, agricultural colonies were established in the country, especially in Korondal, Malig, and other appropriate sites in Mindanao. The government, moreover, offered facilities of every sort to encourage migration and settlement in those places. The Agricultural and Industrial Bank was established to aid small farmers with the convenient loans on easy terms. Attention was also devoted to soil survey, as well as to the proper disposition of lands of t the public domain. These steps and measures held much promise for our economic welfare. Agrarian reform. When the Commonwealth Government was established, President Quezn implemented the Rice Share Tenancy Act of 1933. The purpose of this act was to regulate the share-tenancy contracts by establishing minimum standards. Primarily, the Act provided for better tenant-landlord relationship, a 5050 sharing of the crop, regulation of interest to 10% per agricultural year, and a safeguard against arbitrary dismissal by the landlord. But the Act could only be implemented by petition of majority of the municipal councils was overwhelming, no petition for the Rice Share Tenancy Act was ever presented. The major flaw of this law was that it could be used only when the majority of municipal councils in a province petitioned for it.[7] Since landowners usually controlled such councils, no province ever asked that the law be applied. Therefore, Quezn ordered that the act be mandatory in all Central Luzon provinces. However, contracts were good only for one year. By simply refusing the renew their contract, landlords were able to ejects tenants. As a result, peasant organizations agitated in vain for a law that would make the contract automatically renewable for as long as the tenants fulfilled their obligations. In 1936, this Act was amended to get rid of its loophole, but the landlords made its application relative and not absolute. Consequently, it was never carried out in spite 12

of its good intentions. In fact, by 1939, thousands of peasants in Central Luzon were being threatened with wholesale eviction. The desire of Quezn to placate both landlords and tenants pleased either. By early 1940s, thousands of tenants in Central Luzon were ejected from their farmlands and the rural conflict was more acute than ever. Indeed, during the Commonwealth period, agrarian problems persisted. This motivated the government to incorporate a cardinal principle on social justice in the 1935 Constitution. Dictated by the social justice program of the government, expropriation of landed estates and other landholdings commenced. Likewise, the National Land Settlement Administration (NSLA) began an orderly settlement of public agricultural lands. At the outbreak of the Second World War, major settlement areas containing more than 65,000 hectares were already established.

13

Educational reforms. Turning his attention to the matter of education in the country, President Quezn by virtue of Executive Order No. 19, dated February 19, 1936, created the National Council of Education, with Rafael Palma, former President of the University of the Philippines, as its first chairman. Funds retained from the early approved Residence Certificate Law were devoted to the maintenance of the public schools all over the nation and the opening of many more to meet the needs of the young people. Indeed, by this time there were already 6,511 primary schools; 1039 intermediate schools; 133 secondary and special schools; and five junior colleges. The total number of pupils enrolled was 1,262,353, who were placed under charge of 28,485 schools teachers This year's appropriation for public education amounted to 14,566,850 pesos. The private institutions of learning, for their part, accommodated more than ninety seven thousand students, thus considerably aiding the government in solving the annual school crisis. To implement the pertinent constitutional provision, the Office of Adult Education was likewise created. Women's suffrage. President Quezn initiated women's suffrage in the Philippines during the Commonwealth Era. As a result of the prolonged debate between the proponents of women's suffrage and their opponents, the Constitution finally provided that the issue be resolved by the women themselves in a plebiscite. If no less than 300,000 of them were to affirmatively vote in favour of the grant within two years would be deemed granted the country's women. Complying with this mandate, the government ordered a plebiscite to be held for the purpose on April 3, 1937. Following a rather vigorous campaign, on the day of the plebiscite, the turnout of female voters was impressive. The affirmative votes numbered 447,725, as against 44,307 who opposed the grant. National language. Another constitutional provision to be implemented by President Quezn's administration dealt with the question of The Philippines' national 14

language. Following a year's study, the Institute of the National Language established on 1936 recommended that Tagalog be adopted as the basis for the national language. The proposal was well received, considering that the Director the first to be appointed at the time Jaime C. de Veyra, was an ethnic Visayan. On December 1937, Quezn issued a proclamation approving the constitution made by the Institute and declaring that the adoption of the national language would take place two years hence. With the presidential approval, the Institute of National Language started to work on a grammar and dictionary of the language. Council of State. In 1938, President Quezn enlarged the composition of the Council of State through Executive Order No. 44. This highest of advisory bodies toPresident was henceforth to be composed of the President, Vice-President, Senate President, House Speaker, Senate President pro tempore, House Speaker pro tempore, Majority Floor leader of both chambers of Congress, former Presidents of the Philippines, and some three to five prominent citizens. Third official language. On April 1, 1940, President Quezn officially authorized the printing and publication of the grammar and dictionary prepared by the Institute of the National Language. Likewise, the Chief Executive decreed that the national language was to be compulsorily taught in all the schools during the forthcoming academic term. For its part, the National Assembly enacted Law No. 570 raising the national language elaborated by the institute to the status of official language of the Philippines, at par with English and Spanish, effective July 4, 1946, upon the establishment of the Philippine Republic. Crises War Cabinet 19411944. The outbreak of World War II and the Japanese invasion resulted in periodic and drastic changes to the government structure. Executive Order 390, December 22, 1941 abolished the Department of the Interior and established 15

a new line of succession. Executive Order 396, December 24, 1941 further reorganized and grouped the cabinet, with the functions of Secretary of Justice assigned to the Chief Justice of the Philippines. Jewish refugees. In a notable humanitarian act, Quezn, in cooperation with United States High Commissioner Paul V. McNutt, facilitated the entry into the Philippines of Jewish refugees fleeing fascist regimes in Europe. Quezn was also instrumental in promoting a project to resettle the refugees in Mindanao. Government-in-exile. After the Japanese invasion of the Philippines during World War II[12] he evacuated to Corregidor, then the Visayas and Mindanao, and upon the invitation of the US government, was further evacuated to Australia and then to the United States, where he established the Commonwealth government in exile with headquarters in Washington, D.C.. There, he served as a member of the Pacific War Council, signed the declaration of the United Nations against the Axis Powers, and wrote his autobiography (The Good Fight, 1946). To carry on the government duties in exile, President Quezon hired the entire floor of one of the wing of the Shoreham Hotel to accommodate his family and his office. On the other hand, the offices of the government were established at the quarters of the Philippine Resident Commissioner, Joaquin Elizalde. The latter was made a member of President's wartime Cabinet. Others likewise appointed were Brigadier-General Carlos P. Romulo, as Secretary of the Department of Information and Public Relations, and Jaime Hernandez as Auditor General. On June 2, 1942, President Quezon addressed the United States House of Representatives, impressing upon them the vital necessity of relieving the Philippine front. Before the Senate, later, the Philippine President reiterated the same message and urged the senators to adopt the slogan "Remember Bataan". Despite his precarious state of health, President Quezon roamed the States to deliver timely and rousing 16

speeches calculated to keep the Philippine war uppermost in the minds of the American nation. Talks of Post-war Philippines. Washington, D.C. Representatives of 26 United Nations at Flag day ceremonies in theWhite House to reaffirm their pact. Seated, left to right: Dr. Francisco Castillo Najera, Ambassador of Mexico; President Roosevelt; Manuel Quezon, President of the Philippine Islands; and Secretary of State Cordell Hull. On the occasion of his first birthday celebration in the United States, President Quezon broadcast as radio message to the Philippine residents in Hawaii, who contributed to the celebration by purchasing four million pesos worth of World War II bonds. Further showing the Philippine government's cooperation with the war effort, President Quezon officially offered the U.S Army a Philippine infantry regiment, which was authorized by the U.S. Department of War to train in California. He also had the Philippine government acquire Elizalde's yacht, which, renamed "Bataan" and totally manned by the Philippine officers and crew, was donated to the United States for use in the war. Early in November 1942, President Quezon held conferences

with President Roosevelt to work out a plan for the creation of a joint commission to study the economic conditions of post-war Philippines. Eighteen months later, the United States Congress would pass an Act creating the Philippine Rehabilitation Commission as an outcome of such talks between the two Presidents.

17

Quezon-Osmea Impasse. By 1943, the Philippine Government-in-exile was faced with a serious crisis. According to the 1935 Constitution, the official term of President Quezon was to expire on December 30, 1943 and Vice-President Sergio Osmea would automatically succeed him in the Presidency. This eventuality was brought to the attention of President Quezon by Osmea himself, who wrote the former to this effect. Aside from replying to this letter informing Vice-President Osmea that it would not be wise and prudent to effect any such change under the circumstances, President Quezon issued a press release along the same line. Osmea then requested the opinion of U.S. Attorney General Homer Cummings, who upheld Osmea's view as more in keeping with the law. Quezon, however, remained adamant. He accordingly sought President Roosevelt's decision. The latter choose to remain aloof from the controversy, suggesting instead that the Philippine officials themselves solve the impasse. A cabinet meeting was then convened by President Quezon. Aside from Quezon and Osmea, others present in this momentous meeting were Resident Commissioner Joaquin Elizalde, Brig.Gen.Carlos P. Romulo, and Cabinet Secretaries Andres Soriano and Jaime Hernandez. Following a spirited discussion, the Cabinet adopted Elizalde's opinion favorable the decision and announced his plan to retire in California.[8] After the meeting, however, Vice-President Osmea approached the President and broached his plan to ask the American Congress to suspend the constitutional provisions for presidential succession until after the Philippines should have been liberated. This legal way out was agreeable to President Quezon and the members of his Cabinet. Proper steps were taken to carry out the proposal. Sponsored by Senator Tydings and Congressman Bell, the pertinent Resolution was unanimously approved by the Senate on a voice vote and passed the House of Representativesby the a vote of 181 to 107 on November 10, 1943. 18

Chapter 3 Jose P. Laurel [1943-1945] Biography Jos Paciano Laurel was born on March 9, 1891 in the town of Tanauan, Batangas. His parents wereSotero Laurel, Sr. and Jacoba Garca. His father had been an official in the revolutionary government ofEmilio Aguinaldo and a signatory to the 1898 Malolos Constitution. While a teen, Laurel was indicted for attempted murder when he almost killed a rival suitor of his girlfriend with a Batangas fan knife. While studying and finishing law school, he argued for and received an acquittal. Laurel received his law degree from the University of the Philippines College of Law in 1915, where he studied under Dean George A. Malcolm, whom he would later succeed on the Supreme Court. He then obtained a Master of Laws degree 19

from University of Santo Tomas in 1919. Laurel then attended Yale Law School, where he obtained a Doctorate of Law. Laurel began his life in public service while a student, as a messenger in the Bureau of Forestry then as a clerk in the Code Committee tasked with the codification of Philippine laws. During his work for the Code Committee, he was introduced to its head, Thomas A. Street, a future Supreme Court Justice who would be a mentor to the young Laurel. Upon his return from Yale, Laurel was appointed first as Undersecretary of the Interior Department, then promoted as Secretary of the Interior in 1922. In that post, he would frequently clash with the American Governor-General Leonard Wood, and eventually, in 1923, resign from his position together with other Cabinet members in protest of Wood's administration. His clashes with Wood solidified Laurel's nationalist credentials. He married Paciencia Hidalgo in 1911. The couple had nine children. After receiving law degrees from the University of the Philippines (1915) and from Yale University (1920), he was elected to the Philippine Senate in 1925 and appointed associate justice of the Supreme Court in 1936. After the Pearl Harbor attack, Laurel stayed in Manila after President Manuel Quezon escaped first to Bataan and then to the United States. He offered his services to the Japanese; and because of his criticism of U.S. rule of the Philippines he held a series of high posts in 1942-43, climaxing in his selection as president in 1943. Twice in that year he was shot by Philippine guerrillas but recovered. In July 1946 he was charged with 132 counts of treason but was never brought to trial; he shared in the general amnesty in April 1948. As the Nationalist Party's nominee for the presidency of the Republic of the Philippines in 1949, he was narrowly defeated by the incumbent president, Elpidio 20

Quirino, nominee of the Liberal Party. Elected to the Senate in 1951, Laurel helped to persuade Ramn Magsaysay, then secretary of defense, to desert the Liberals and join the Nationalists. When Magsaysay became president, Laurel headed an economic mission that in 1955 negotiated an agreement to improve economic relations with the United States. He retired from public life in 1957. Laurel considered his election to the Senate as a vindication of his reputation. He declined to run for re-election in 1957. He retired from public life, concentrating on the development of the Lyceum of the Philippines established by his family. After the sudden death of President Magsaysay in March of 1957, Laurel suggested to then Congressman Ferdinand Marcosto propose to Manila Mayor Arsenio Lacson for the latter to run as President and the former as Lacson's Vice President. However, the immensely popular Lacson turned down the offer to run against Carlos P. Garcia despite Laurel's pledged support. Marcos, in turn, ran only for President in 1965. During his retirement, Laurel stayed in a 3-story, 7-bedroom mansion dubbed as "Villa Pacencia", erected in 1957 at Mandaluyong and named after Laurel's wife. The home was one of three residences constructed by the Laurel family, the other two being located in Tanauan and in Paco, Manila (called "Villa Peafrancia). In 2008, the Laurel family sold "Villa Pacencia" to Senate President Manny Villar and his wife Cynthia. On November 6, 1959, Laurel died at the Lourdes Hospital, in Manila, from a massive heart attack and a stroke. He is buried in Tanuan. Advocacy Laurel's Supreme Court tenure may have been overshadowed by his presidency, yet he remains one of the most important Supreme Court justices in Philippine history. He authored several leading cases still analyzed to this day that defined the parameters of the branches of government as well as their powers. 21

Angara v. Electoral Commission, 63 Phil. 139 (1936), which is considered as the Philippine equivalent of Marbury v. Madison, 5 U.S. (1 Cranch) 137 (1803), is Laurel's most important contribution to jurisprudence and even the rule of law in the Philippines. In affirming that the Court had jurisdiction to review the rulings of the Electoral Commission organized under the National Assembly, the Court, through Justice Laurel's opinion, firmly entrenched the power of Philippine courts to engage in judicial review of the acts of the other branches of government, and to interpret the Constitution. Held the Court, through Laurel: "The Constitution is a definition of the powers of government. Who is to determine the nature, scope and extent of such powers? The Constitution itself has provided for the instrumentality of the judiciary as the rational way. And when the judiciary mediates to allocate constitutional boundaries, it does not assert any superiority over the other departments; it does not in reality nullify or invalidate an act of the legislature, but only asserts the solemn and sacred obligation assigned to it by the Constitution to determine conflicting claims of authority under the Constitution and to establish for the parties in an actual controversy the rights which that instrument secures and guarantees to them." Another highly influential decision penned by Laurel was Ang Tibay v. CIR, 69 Phil. 635 (1940). The Court acknowledged in that case that the substantive and procedural requirements before proceedings in administrative agencies, such as labor relations courts, were more flexible than those in judicial proceedings. At the same time, the Court still asserted that the right to due process of law must be observed, and enumerated the "cardinal primary rights" that must be respected in administrative proceedings. Since then, these "cardinal primary rights" have stood as the standard in testing due process claims in administrative cases. 22

Calalang v. Williams, 70 Phil. 726 (1940) was a seemingly innocuous case involving a challenge raised by a private citizen to a traffic regulation

banning kalesas from Manila streets during certain afternoon hours. The Court, through Laurel, upheld the regulation as within the police power of the government. But in rejecting the claim that the regulation was violative of social justice, Laurel would respond with what would become his most famous aphorism, which is to this day widely quoted by judges and memorized by Filipino law students: "Social justice is neither communism, nor despotism, nor atomism, nor anarchy," but the humanization of laws and the equalization of social and economic forces by the State so that justice in its rational and objectively secular conception may at least be approximated. Social justice means the promotion of the welfare of all the people, the adoption by the Government of measures calculated to insure economic stability of all the competent elements of society, through the maintenance of a proper economic and social equilibrium in the interrelations of the members of the community, constitutionally, through the adoption of measures legally justifiable, or extra-constitutionally, through the exercise of powers underlying the existence of all governments on the time-honored principle of salus populi est suprema lex. Social justice, therefore, must be founded on the recognition of the necessity of interdependence among divers and diverse units of a society and of the protection that should be equally and evenly extended to all groups as a combined force in our social and economic life, consistent with the fundamental and paramount objective of the state of promoting the health, comfort, and quiet of all persons, and of bringing about "the greatest good to the greatest number." Economy. During Laurel's tenure as President, hunger was the main worry. Prices of essential commodities rose to unprecedented heights. The government exerted every effort to increase production and bring consumers' goods under control. However, Japanese rapacity had the better of it all. On the other hand, guerrilla activities and 23

Japanese retaliatory measures brought the peace and order situation to a difficult point. Resorting to district-zoning and domiciliary searches, coupled with arbitrary asserts, the Japanese made the mission of Laurel's administration incalculably exasperating and perilous. Food shortage. During his presidency, the Philippines faced a crippling food shortage which demanded much of Laurel's attention. Rice and bread were still of availability but the sugar supply was gone. Laurel also resisted in vain Japanese demands that the Philippines issue a formal declaration of war against the United States. There were also reports during his presidency of the Japanese military carrying out rape and massacre towards the Filipino population. KALIBAPI. Telling of Laurel's ambivalent and precarious position is the following anecdote. In 1944, Laurel issued an executive order organizing the Kapisanan sa Paglilingkod sa Bagong Pilipinas(KALIBAPI) as the sole political organization to back the government. An attempt was made to organize a women's section of the KALIBAPI, and Laurel hosted several women leaders in Malacaan Palace to plead his case. After he spoke, a university president, speaking in behalf of the group, responded, "Mr. President, sa kabila po kami". ("Mr. President, we are on the other side.") Laurel joined the others assembled in hearty laughter and the KALIBAPI women's section was never formed. Foreign policies. The countries of Greater East Asia, with a view to contributing to the cause of world peace, undertake to cooperate toward prosecuting the War of Greater East Asia to a successful conclusion, liberating their region from the yoke of British-American domination, and ensuring their self-existence and self-defense, and in constructing a Greater East Asia in accordance with the following principles:

24

The countries of Greater East Asia through mutual cooperation will ensure the stability of their region and construct an order of common prosperity and wellbeing based upon justice.

The countries of Greater East Asia will ensure the fraternity of nations in their region, by respecting one another's sovereignty and independence and practicing mutual assistance and amity.

The countries of Greater East Asia by respecting one another's traditions and developing the creative faculties of each race, will enhance the culture and civilization of Greater East Asia.

The countries of Greater East Asia will endeavor to accelerate their economic development through close cooperation upon a basis of reciprocity and to promote thereby the general prosperity of their region.

The countries of Greater East Asia will cultivate friendly relations with all the countries of the world, and work for the abolition of racial discrimination, the promotion of cultural intercourse and the opening of resources throughout the world, and contribute thereby to the progress of mankind.

Contributions/Achievements The presidency of Laurel understandably remains one of the most controversial in Philippine history. After the war, he would be denounced in some quarters [who?] as a war collaborator or even a traitor, although his indictment for treason was superseded by President Roxas' Amnesty Proclamation. His subsequent electoral success demonstrates public support for him. Before his death, Laurel came to be consideredas doing his best in interceding, protecting and looking after the best interests of the Filipinos against the harsh wartime Japanese military rule and policies. However, the

25

fact remains that he violated his Oath of Office and headed an illegal government of the Philippines. Accession. When Japan invaded, President Manuel L. Quezon first fled to Bataan and then to the United States to establish a government-in-exile. Laurel's prewar, close relationship with Japanese officials (a son had been sent to study at the Imperial Military Academy in Tokyo, and Laurel had received an honorary doctorate from Tokyo University), placed him in a good position to interact with the Japanese occupation forces. Laurel was among the Commonwealth officials instructed by the Japanese Imperial Army to form a provisional government when they invaded and occupied the country. He cooperated with the Japanese, in contrast to the decision of Filipino Chief Justice Abad Santos. Because he was well-known to the Japanese as a critic of US rule, as well as having demonstrated a willingness to serve under the Japanese Military Administration, he held a series of high posts in 19421943. In 1943, he was shot by Philippine guerillas while playing golf at Wack Wack Golf and Country Club, but he quickly recovered. Later that year, he was selected, by the National Assembly, under vigorous Japanese influence, to serve as President. Crises Resistance. Due to the nature of the Second Republic, and its connection to the Empire of Japan, a sizable portion of the population actively resistedhis presidency, supporting the exiled Commonwealth government;[10] that is not to say that his government didn't have forces against said resistance. Assassination attempt. On June 5, 1943, Laurel was playing golf at the Wack Wack Golf Course in Mandaluyong when he was shot around 4 times with a 45 caliber pistol. The bullets barely missed his heart and liver. He was rushed by his golfing companions, among them FEU President Nicanor Reyes, Sr., to the Philippine 26

General Hospital where he was operated by the Chief Military Surgeon of the Japanese Military Administration and Filipino surgeons. Laurel enjoyed a speedy recovery. Two suspects to the shooting were reportedly captured and swiftly executed by the Kempetai. Another suspect, a former boxer named Feliciano Lizardo, was presented for identification by the Japanese to Laurel at the latter's hospital bed, but Laurel then professed unclear memory. However, in his 1953 memoirs, Laurel would admit that Lizardo, by then one of the former President's bodyguards, was indeed the would-beassassin. Still, the historian Teodoro Agoncillo in his book on the Japanese occupation, identified a captain with a guerilla unit as the shooter. Laurel is the only Filipino president to have been shot outside of combat. Dissolution of the Second Republic. On July 26, 1945 the Potsdam Declaration served upon Japan an ultimatum to surrender or face utter annihilation. The Japanese government refused the offer. On August 6, 1945, Hiroshima, with some 300,000 inhabitants, was almost totally destroyed by an atomic bomb dropped from an American plane. Two days later, the Soviet Union declared war against Japan. The next day, August 9, 1945, a second atomic bomb was dropped on Nagasaki. The Allied Forces' message now had a telling effect: Japan unconditionally surrendered to the Allied Powers on August 15, 1945. Since April 1945, President Laurel, together with his family and Cabinet member Camilo Osias, Speaker Benigno Aquino, Sr., Gen. Tomas Capinpin, and Ambassador Jorge Vargas, had been in Japan. Evacuated

from Baguio shortly after the city fell, they traveled to Aparri and thence, on board Japanese planes, had been taken to Japan. On August 17, 1945, from his refuge in Nara, President Laurel issued an Executive Proclamation which declared the dissolution of the Second Republic of the Philippines.

27

Chapter 4 Sergio S. Osmea, Sr. [1944-1946] Biography Osmea, Sergio (1878-1961), Philippine

independence leader and statesman, born on Cebu. Trained as a lawyer, he was elected to the first Philippine assembly, became its speaker (19071916), and later served as senator from Cebu. Osmea headed several missions to the United States to argue for Philippine independence and was instrumental in gaining commonwealth status for the Philippines in 1935. Twice elected vicepresident of the commonwealth (1935 and 1941), he became president of the government in exile when President Manuel Quezon died in 1944. He was, however, defeated (1946) in the first elections of an independent Philippines. He was the founder of the Nationalist Party (Partido Nacionalista) and president of the Philippines from 1944 to 1946. Osmea received a law degree from the University of Santo Toms, Manila, in 1903. He was also editor of a Spanish newspaper, El Nuevo Da, in Cebu City. In 1904 the U.S. colonial administration appointed him governor of the province of Cebu and fiscal (district attorney) for the provinces of Cebu and Negros Oriental. Two years later he was elected governor of Cebu. In 1907 he was elected delegate to the Philippine National Assembly and founded the Nationalist Party, which came to dominate Philippine political life. 28

Osmea remained leader of the Nationalists until 1921, when he was succeeded by Manuel Quezon, who had joined him in a coalition. Made speaker of the House of Representatives in 1916, he served until his election to the Senate in 1923. In 1933 he went to Washington, D.C., to secure passage of the Hare-Hawes-Cutting independence bill, but Quezon differed with Osmea over the bill's provision to retain U.S. military bases after independence. The bill, vetoed by the Philippine Assembly, was superseded by the Tydings-McDuffie Act of March 1934, making the Philippines a commonwealth with a large measure of independence. The following year Osmea became vice president, with Quezon as president. He remained vice president during the Japanese occupation, when the government was in exile in Washington, D.C. On the death of Quezon in August 1944, Osmea became president. He served as president until the elections of April 1946, when he was defeated by Manuel Roxas, who became the first president of the independent Republic of the Philippines. After his defeat in the election, Osmea retired to his home in Cebu. He died at age 83 on 19 October 1961 at the Veteran's Memorial Hospital in Quezon City. He is buried in the Manila North Cemetery, Manila. Advocacy Restoration of the Commonwealth. With Manila liberated, General of the Army, Douglas MacArthur, on behalf of the United States, turned over the reins of government of the Philippines to Commonwealth President, Sergio Osmea, on 27 February 1945, amidst brief, but impressive, ceremonies held at theMalacaan Palace. President Osmea, after thanking the United States through General MacArthur, announced the restoration of the Government of the Commonwealth of the Philippines and work out the salvation of the Philippines from the ravages of war.

29

Government reorganization. President Osmea proceeded with the immediate reorganization of the government and its diverse dependencies. On 8 April 1945, he formed his Cabinet, administering the oath of office to its component members. Later, President Osmea received the Council of State to help him solve the major problems confronting the nation. Government offices and bureaus were gradually reestablished. A number of new ones were created to meet needs then current. Also restored were the Supreme Court of the Philippines and the inferior courts. The Court of Appealswas abolished and its appellate jurisdiction was transferred to the Supreme Court, the members of which were increased to eleven one Chief Justice and ten Associate Justice in order to attend to the new responsibilities. Slowly but steadily, as the liberating forces freed the other portions of the country, provincial and municipal governments were established by the Commonwealth to take over from the military authorities. Rehabilitation of the Philippine National Bank. Following the restoration of the Commonwealth Government, the Congress was reorganized. Manuel

Roxas and Elpidio Quirino were electedSenate President and Senate President pro tempore respectively. At the House of Representatives, Jose Zulueta of Iloilo was electedSpeaker and Prospero Sanidad as Speaker pro tempore. The opening session of the Congress was personally addressed by President Osmea, who reported on the Commonwealth Government in exile and proposed vital pieces of legislation. The First Commonwealth Congress earnestly took up the various pending assignments to solve the pressing matters affecting the Philippines, especially in regard to relief, rehabilitation, and reconstruction. The first bill enacted was Commonwealth Act No. 672 rehabilitating the Philippine National Bank.

30

People's court. Yielding to American pressure, on 25 September 1945, the Congress enacted C.A. No. 682 creating the People's Court and the Office of Special Prosecutors to deal with the pending cases of "collaboration". Contributions/Achievements In 1924, Quezon and Osmea reconciled and joined forces in what was denominated the Partido Nacionalista Consolidado against the threat of an emerging opposition from the Democrata Party. The reunited Nacionalista Party dominated the political scene until the second break-up when the members polarized into Pros and Antis in 1934. Quezon and Osmea again reconciled for the 1935 Presidential Election. In 1935 Quezon and Osmea won the Philippine's first national presidential election under the banner of the Nacionalista Party. Quezon obtained nearly 68% of the vote against his two main rivals, Emilio Aguinaldo and Bishop Gregorio Aglipay. They were inaugurated on 15 November 1935. Quezon had originally been barred by the Philippine constitution from seeking re-election. However, in 1940, constitutional amendments were ratified allowing him to seek re-election for a fresh term ending in 1943. In the 1941 presidential elections, Quezon was re-elected over former Senator Juan Sumulong with nearly 82% of the vote. Re-elected in 1941, Osmea remained vice president during the Japanese occupation when the government was in exile. As Vice-President, Osmea concurrently served as Public Instruction

Secretary from 193540, and again from 194144. The outbreak of World War II and the Japanese invasion resulted in periodic and drastic changes to the government structure. Executive Order 390, 22 December 1941 abolished the Department of the Interior and established a new line of succession. Executive Order 396, 24 December 1941, further reorganized and grouped the cabinet, with the functions of Secretary of Justice assigned to the Chief Justice of the Philippines. 31

Osmea became president of the Commonwealth on Quezon's death in 1944. He returned to the Philippines the same year with General Douglas MacArthur and the liberation forces. After the war, Osmea restored the Commonwealth government and the various executive departments. He continued the fight for Philippine independence. For the presidential election of 1946, Osmea refused to campaign, saying that the Filipino people knew of his record of 40 years of honest and faithful service. He lost to Manuel Roxas, who won 54 percent of the vote and became president of the independent Republic of the Philippines. Liberation. Osmea accompanied U.S. General Douglas MacArthur during the landing of U.S. forces in Leyte on 20 October 1944, starting the liberation of the Philippines during the Second World War was both the combined Filipino and American soldiers including the recognized guerrilla units was fought to the Japanese Imperial forces. Upon establishing the beachhead, MacArthur immediately transferred authority to Osmea, the successor of Manuel Quezon, as Philippine Commonwealth president. Bell Trade Act. On 30 April 1946, the United States Congress, at last approved the Bell Act, which as early as 20 January had been reported to the Ways and Means Committee of the lower house, having been already passed by the Senate. President Osmea and Resident Commissioner Ramulo had urged the passage of this bill, with United States High Commissioner, Paul V. McNutt, exerting similar pressure. The Act gave the Philippines eight years of free trade with the United States, then twenty years during which tariffs would be upped gradually until they were in line with the rest of the American tariff policy. The law also fixed some quotas for certain products: sugar 850,000 long tons; cordage 6,000,000 pounds; coconut oil 200,000 long tons; cigars 200,000,000 pounds. This aid was coupled with that to be obtained from the recently passed Tydings Damage bill, which provided some nine hundred million dollars for payment of war damages, of which one million was 32

earmarked to compensate for church losses. The sum of two hundred and forty million dollars was to be periodically allocated by the United States President as good will. Also, sixty million pieces of surplus property were transferred to the Philippines government.[4] Crises By 1943, the Philippine Government-in-exile was faced with a serious crisis. According to the 1935 Constitution, the official term of President Quezon was to expire on 30 December 1943, and Vice-President Sergio Osmea would automatically succeed him in the Presidency. This eventuality was brought to the attention of President Quezon by Osmea himself, who wrote the former to this effect. Aside from replying to this letter informing Vice-President Osmea that it would not be wise and prudent to effect any such change under the circumstances, President Quezon issued a press release along the same line. Osmea then requested the opinion of U.S. Attorney General Homer Cummings, who upheld Osmea's view as more in keeping the law. Quezon, however, remained adamant. He accordingly sought President Franklin D. Roosevelt's decision. The latter choose to remain aloof from the controversy, suggesting instead that the Philippine officials themselves solve the impasse. A cabinet meeting was then convened by President Quezon. Aside from Quezon and Osmea, others present in this momentous meeting were Resident Commissioner Joaquin Elizalde, Brig. Gen. Carlos P. Romulo, and Cabinet Secretaries Andres Soriano and Jaime Hernandez. Following a spirited discussion, the Cabinet adopted Elizalde's opinion favorable the decision and announced his plan to retire in California. After the meeting, however, Vice-President Osmea approached the President and broached his plan to ask the American Congress to suspend the constitutional provisions for presidential succession until after the Philippines should have been liberated. This legal way out was agreeable to President Quezon and the members of his Cabinet. Proper steps were taken to carry out the proposal. Sponsored by Senator 33

Tydings and Congressman Bell, the pertinent Resolution was unanimously approved by the Senate on a voice vote and passed the House of Representatives by the a vote of 181 to 107, on 10 November 1943.

Chapter 5 Manuel A. Roxas [1948-1953] 34

Biography Manuel A. Roxas, third and last President of the Commonwealth and the first of the Republic of the Philippines, was born to Gerardo Roxas, Sr. andRosario Acua on January 1, 1892 in Capiz (present-day Roxas City). He was a posthumous child, for his father Gerardo had been mortally wounded by Spanish guardias civiles the year before, leaving him and his older brother Mamerto to be raised by their mother and Don Eleuterio, their maternal grandfather. Roxas received his early education in the public schools of Capiz, and at age 12, attended St. Joseph's Academy in Taiwan. But after homesickness, he went back to Capiz. He eventually moved to Manila High School (later named the Araullo High School), graduating with highest honors in 1909. Roxas began his law studies at a private law school established by George A. Malcolm, the first dean of the University of the Philippines College of Law. On his second year, he enrolled at U.P., where he was elected president of both his class and the Student Council. In 1913, Roxas obtained his law degree, graduated class valedictorian, and subsequently topped the bar examinations with a grade of 75% on the same year. Manuel Roxas was married to Trinidad de Leon in 1921. The couple had two children, Ma. Rosario "Ruby" Roxas who is married to Vicente Roxas (no relation) and Gerardo M. "Gerry" Roxas who married Judy Araneta. Gerry became a House Representative and a leader of Liberal Party. He fathered three children, two of them (Dinggoy Roxas and Mar Roxas) served as Representatives of Capiz. Mar became a Senator in 2004, and he was elected President of the Liberal 35

Party of the Philippines in 2004. His daughter-in-law Judy continues to be a prominent and driving force of the Liberal Party. Daughter Ruby has an only son, named Manuel but nicknamed Manolo. His son Gerardo, who died in 1982, had three children: Maria Lourdes Roxas, married to Augusto Ojeda, Manuel, nicknamed Mar, whose spouse is broadcaster Korina Sanchez, and Gerardo "Dinggoy" Roxas Jr. (19601993). During World War II Roxas served in the pro-Japanese government of Jos Laurel by acquiring supplies of rice for the Japanese army. Although a court was established after the war to try collaborators, Roxas was defended by his friend General Douglas MacArthur. Roxas was elected president of the Commonwealth in 1946 as the nominee of the liberal wing of the Nacionalista Party (which became the Liberal Party), and, when independence was declared on July 4, he became the first president of the new republic. Although Roxas was successful in getting rehabilitation funds from the United States after independence, he was forced to concede military bases (23 of which were leased for 99 years), trade restrictions for Philippine citizens, and special privileges for U.S. property owners and investors. His administration was marred by graft and corruption; moreover, the abuses of the provincial military police contributed to the rise of the left-wing Hukbalahap (Huk) movement in the countryside. His heavy-handed attempts to crush the Huks led to widespread peasant disaffection. Roxas died in office in 1948 and was succeeded by his vice president, Elpidio Quirino. Advocacy If war should come, I am certain of one thingprobably the only thing of which I can be certainand it is this: That America and the Philippines will be found on the same side, and American and Filipino soldiers will again fight side by side in the same 36

trenches or in the air or at sea in the defense of justice, freedom and other principles which we both loved and cherished. Contributions/Achievements Roxas served as the President of the Commonwealth of the Philippines in a brief period, from his subsequent election on May 28, 1946 to July 4, 1946, the scheduled date of the proclamation of Philippine Independence. Roxas prepared the groundwork for the advent of a free and independent Philippines, assisted by

the Congress (reorganized May 25, 1946), with Senator Jos Avelino as the Senate President and Congressman Eugenio Perez as theHouse of Representatives Speaker. On June 3, 1946, Roxas appeared for the first time before the joint session of the Congress to deliver his first state of the nation address. Among other things, he told the members of the Congress the grave problems and difficulties the Philippines are set to face and reports of his special trip to the United Statesthe approval for independence.[3] On June 21, he reappeared into another joint session of the Congress and urged the acceptance of two important laws passed by the Congress of the United States on April 30, 1946 to the Philippine lands. They are the Philippine Rehabilitation Act and the Philippine Trade Act. Both recommendations were accepted by the Congress. Manuel Roxas' term as the President of the Commonwealth of the

Philippines ended on the morning of July 4, 1946 when the Third Republic of the Philippines was inaugurated and Philippine Independence from the United States proclaimed, amidts plaudits and prayers of some 300,000 people, 21-gun salute and joyous echoes of church bells. Roxas was then inaugurated as the new and first president of the new Republic. The inaugural ceremonies took place at Luneta Park, Manila. On the grandstand there were around 3,000 guests and notables, consisted of President Roxas and his cabinet; the last US High Commissioner and first American Ambassador of US to the 37

Philippines Paul McNutt; General Douglas MacArthur (coming from Tokyo); United States Postmaster General Robert E. Hannegan; a delegation from US Congress headed by Tydings McDuffie Act author Maryland Senator Millard

Tydings and Missouri Representative C. Jasper Bell, author of Bell Trade Act and former civil governor-general Francis Burton Harrison. Economy. No sooner had the fanfare of the independence festivities ended that the government and the people quickly put all hands to work in the tasks of rescuing the country from its dire economic straits. Reputed to be the most bombed and destroyed country in the world, the Philippines was in a sorry mess. Only Stalingrad and Warsaw, for instance, could compare with Manila in point of destruction. All over the country more than a million people were unaccounted for. The war casualties as such could very well reach the two million mark. Conservative estimates had it that the Philippines had lost about two thirds of her material wealth. The country was facing near bankruptcy. There was no national economy, no export trade. Indeed, production for exports had not been restored. On the other hand, imports were to reach the amount of three million dollars. There was need of immediate aid from the United Nations Relief and Rehabilitation Administration. Something along this line was obtained. Again, loans for the United States, as well as some increase in the national revenues, were to help the new Republic. President Roxas, with bold steps, met the situation with the same confidence he exuded in his inaugural address, when he said: "The system of free but guided enterprise is our system". Among the main remedies proposed was the establishment of the Philippine Rehabilitation Finance Corporation. This entity would be responsible for the construction of twelve thousand houses and for the grant of easy-term loans in the amount of 177,000,000 pesos. Another proposal was the creation of the Central Bank of 38

the Philippines to help stabilize the Philippine dollar reserves and coordinate and the nations banking activities gearing them to the economic progress. Concentrating on the sugar industry, President Roxas would exert such efforts as to succeed in increasing production from 13,000 tons at the time of the Philippine liberation to an all-high of one million tons. Reconstruction after the war. The postwar Philippines had burned cities and towns, ruined farms and factories, blasted roads and bridges, shattered industries and commerce, and thousands of massacred victims. The war had paralyzed the educational system, where 80% of the school buildings, their equipment, laboratories and furniture were destroyed.[6] Numberless books, invaluable documents and works of art, irreplaceable historical relics and family heirlooms, hundreds of churches and temples were burned. The reconstruction of the damaged school buildings alone cost more than Php 126,000,000. The new Republic began to function on an annual deficit of over Php 200,000,000 with little prospect of a balanced budget for some years to

come. Manila and other cities then were infested with criminal gangs which used techniques of American gangsters in some activities

bank holdups, kidnapping and burglaries. In rural regions, especially the provinces of Central Luzon and theSouthern Tagalog regions, the Hukbalahaps and brigands terrorized towns and barrios. Agrarian reform. In 1946, shortly after his induction to Presidency, Manuel Roxas proclaimed the Rice Share Tenancy Act of 1933 effective throughout the country. However problems of land tenure continued. In fact these became worse in certain areas. Among the remedial measures enacted was Republic Act No. 1946 likewise known as the Tenant Act which provided for a 7030 sharing arrangements and 39

regulated share-tenancy contracts. It was passed to resolve the ongoing peasant unrest in Central Luzon. Amnesty proclamation. President Roxas, on January 28, 1948, granted full amnesty to all so-called Philippine collaborators, many of whom were on trial or awaiting to be tried, particularly former President Jose P. Laurel(19431945). The Amnesty Proclamation did not apply to those "collaborators", who were charged with the commission of common crimes, such as murder, rape, and arson. The presidential decision did much[5] to heal a standing wound that somehow threatened to divide the people's sentiments. It was a much-called for measure to bring about a closer unity in the trying times when such was most needed for the progress of the nation. Huks outlawed. Utterly disgusted with the crimes being committed

by HukBaLaHap (also known as "Hukbo ng Bayan Laban sa Hapon" and Huks) and in possession of the incontrovertible evidence of the subversive character of the same, President Roxas, on March 6, 1948, in a dramatic gesture, issued a Proclamation outlawing Huks' movement, making it a crime to belong to the same. [5] The declaration was hailed by all responsible and peace-loving elements. The same had become imperative in view of the resurgence of Huk depredations, following the unseating of the seven Communists, led by Huk Supremo Luis Taruc through acts of terrorism. Treaty of General Relations. On August 5, 1946, the Congress of the Philippines ratified the Treaty of General Relations that had been entered into by and between the Republic of the Philippines and the United States on July 4, 1946.
[5]

Aside from withdrawing her sovereignty from the Philippines and recognizing her

independence, the Treaty reserved for the United States some bases for the mutual protection of both countries; consented that the United States represent the Philippines in countries where the latter had not yet established diplomatic representation; made the Philippines assume all debts and obligations of the former government in the 40

Philippines; and provided for the settlement of property rights of the citizens of both countries. Although Roxas was successful in getting rehabilitation funds from the United States after independence, he was forced to concede military bases (23 of which were leased for 99 years), trade restriction for the Philippine citizens, and special privileges for U.S. property owner and investor. Parity Rights Amendment. On March 11, 1947, the Filipino people, heeding Roxas' persuasive harangue, ratified in a nationwide plebiscite the "parity amendment" to the 1935 Constitution, granting United States citizens the right to dispose and utilize of Philippine natural resources, or through parity rights. The night before the plebiscite day, Roxas narrowly escaped an assassination by a disgruntled Tondo barber, Julio Guillen, who hurled a grenade on the platform at Plaza Miranda immediately after the President addressed the rally of citizens. Crises His administration was marred by graft and corruption; moreover, the abuses of the provincial military police contributed to the rise of the left-wing (Huk) movement in the countryside. His heavy-handed attempts to crush the Huks led to widespread peasant disaffection. The good record of Roxas administration was marred by two failures: the failure to curb graft and corruption in the government, as evidenced by the Surplus War Property scandal, the Chinese immigration scandal and the School supplies scandal; and the failure to check and stop the communist Hukbalahap movement.

41

Chapter 6 Elpideo R. Quirino [1948-1953] Biography Elpidio Quirino was a native born

of Caoayan, Ilocos

Sur although

in Vigan, Ilocos Sur to Don Mariano Quirino of Caoayan, Ilocos Sur and Doa Gregoria Mendoza Rivera of Agoo, La Union. Quirino spent his early years in Aringay, La Union. He studied and graduated his elementary education to his native 42

Caoayan, where he became a barrio teacher. He received secondary education at Vigan High School, then went to Manila where he worked as junior computer in the Bureau of Lands and as property clerk in the Manila police department. He graduated from Manila High School in 1911 and also passed the civil service examination, first-grade. Quirino attended the University of the Philippines. In 1915, he earned his law degree from the university's College of Law, and was admitted to the bar later that year. He was engaged in the private practice of law. Quirino was married to Alicia Syquia, in 1919 the couple had 4 children namely Tomas Quirino, Armando Quirino, Victoria Quirino-Delgado (19312006) and Fe Angela Quirino. After obtaining a law degree from the University of the Philippines, near Manila, in 1915, Quirino practiced law until he was elected a member of the Philippine House of Representatives in 1919-25 and a senator in 1925-31. In 1934 he was a member of the Philippine independence mission to Washington, D.C., headed by Manuel Quezon, which secured the passage in Congress of the Tydings-McDuffie Act, setting the date for Philippine independence as July 4, 1946. He was also elected to the convention that drafted a constitution for the new Philippine Commonwealth. Subsequently he served as secretary of finance and secretary of the interior in the Commonwealth government. After World War II, Quirino served as secretary of state and vice president under the first president of the independent Philippines, Manuel Roxas. When Roxas died on April 15, 1948, Quirino succeeded to the presidency. The following year, he was elected president for a four-year term on the Liberal Party ticket, defeating the Nacionalista candidate. President Quirino's administration faced a serious threat in the form of the Communist-led Hukbalahap (Huk) movement. Though the Huks originally had been an anti-Japanese guerrilla army in Luzon, the Communists steadily gained control over the 43

leadership, and, when Quirino's negotiations with Huk commander Luis Taruc broke down in 1948, Taruc openly declared himself a Communist and called for the overthrow of the government. By 1950 the Huks had gained control over a considerable portion of Luzon, and Quirino appointed the able Ramon Magsaysay as secretary of national defense to suppress the insurrection. (see also Index: Hukbalahap Rebellion) Quirino's six years as president were marked by notable postwar reconstruction, general economic gains, and increased economic aid from the United States. Basic social problems, however, particularly in the rural areas, remained unsolved; Quirino's administration was tainted by widespread graft and corruption. The 1949 elections, which he had won, were among the most dishonest in the country's history. Magsaysay, who had been largely successful in eliminating the threat of the Huk insurgents, broke with Quirino on the issue of corruption, campaigning for clean elections and defeating Quirino as the Nacionalista candidate in the presidential election of 1953. Subsequently, Quirino retired to private life. Following his failed bid for re-election, Quirino retired from politics to private life in 1953. He offered his dedication to serve the Filipino people, he became the Father of Foreign Service. He died of a heart attack on February 29, 1956. He was buried at Manila South Cemetery in Makati. Advocacy I have faith in the democratic process we have established and in the capacity of our people to perfect themselves in it. Elpidio Quirino

44

Peace Campaign. With the Communist organization here estimated to still have more than forty thousand duly registered members by March 1951, the government went on with its sustained campaign to cope with the worsening peace and order problem. The 1951 budget included the use of a residue fund for the land resettlement program in favor of the surrendered HUKS. The money helped maintain the Economic Development Corps (EDCOR), with its settlements of six thousand five hundred hectares in Kapatagan (Lanao) and twenty five thousand hectares in Buldon (Cotabato). In each group taken to these places there was a nucleus of former Army personnel and their families, who became a stabilizing factor and ensured the success of the program. Indeed, less than ten percent of the Huks who settled down gave up this new lease in life offered them by the government. To promote the smooth restructuring of the Armed Forces of the Philippines, the military were made to undergo a reorganization. Battalion combat teams of one thousand men each were established. Each operated independently of the High Command, except for overall coordination in operational plans. A total of twenty six Battalion Combat Teams were put up. New army units were also established, such was the first Airborne Unit, the Scout Rangers, the Canine Unit, and the Cavalry Unit. Their mental showing offered much promise. Social Program. Enhancing President Manuel Roxas' policy of social justice to alleviate the lot of the common mass, President Quirino, almost immediately after assuming office, started a series of steps calculated to effectively ameliorate the economic condition of the people.[2] After periodic surprise visits to

the slums of Manila and other backward regions of the country, President Quirino officially made public a seven-point program for social security, o wit: 1. Unemployment insurance 2. Old-age insurance 45

3. Accident and permanent disability insurance 4. Health insurance 5. Maternity insurance 6. State relief 7. Labor opportunity President Quirino also created the Social Security Commission, making Social Welfare Commissioner Asuncion Perez chairman of the same. This was followed by the creation of the President's Action Committee on Social Amelioration, charges with extending aid, loans, and relief to the less fortunate citizens. Both the policy and its implementation were hailed by the people as harbingers of great benefits.

Contributions/Achievements Elpidio Quirino's six years as president were marked by notable postwar reconstruction, general economic gains, and increased economic aid from the United States. Basic social problems, however, particularly in the rural areas, remained unsolved, and his administration was tainted by widespread graft and corruption. Vice-President Elpidio Quirino was inaugurated as the 6th President of the Philippines on April 17, 1948 at the Council of State Room, Executive Building, Malacaan Palace. Quirino assumed the presidency on April 17, 1948, taking his oath of office two days after the death of Manuel Roxas. His first official act as the President was the proclamation of a state mourning throughout the country for Roxas' death. Since Quirino was a widower, his surviving daughter Vickywould serve as the official hostess and perform the functions traditionally ascribed to the First Lady. 46

New Capital City. On July 17, 1948, the Congress approved Republic Act No. 333, amending Commonwealth Act No. 502, declaring Quezon City the capital of thePhilippines in place of Manila.[2] Nevertheless, pending the official transfer of the government offices to the new capital site, Manila remained to be such for all effective purposes. HukBaLaHap. With the expiration of the Amnesty deadline on August 15, 1948, the government found out that the Huks had not lived up to the terms of the QuirinoTaruc agreement. Indeed, after having been seated in Congress and collecting his back pay allowance.[2] Luis Taruc surreptitiously fled away from Manila, even as a measly number of his followers had either submitted themselves to the conditions of the Amnesty proclamation or surrendered their arms. In the face of counter charges from the Huk from to the effect that the government had not satisfied the conditions agreed upon, President Quirino ordered a stepped-up campaign against dissidents, restoring once more to the mailed-fist policy in view of the failure of the friendly attitude previously adopted. Fireside Chats. Moreover, to bring the government closer to the people, he revived President Quezon's "fireside chats", in which he enlightened the people on the activities of the Republic by the periodic radio broadcasts from the Malacaan Palace.

47

1949 Presidential election. Incumbent President Elpidio Quirino won a full term as President of the Philippines after the untimely death of President Manuel Roxas in 1948. His running mate, Senator Fernando Lpez won asVice President. Despite factions created in the administration party, Quirino won a satisfactory vote from the public. It was the only time in Philippine history where the duly elected president, vice president and senators all came from the same party, the Liberal Party. Carlos P. Romulo and Marvin M. Gray, publisher of the Manila Evening News, accuse Quirino in their book The Magsaysay Story (The John Day Company, 1956, updated with an additional chapter on Magsaysay's death re-edition by Pocket Books, Special Student Edition, SP-18, December 1957) of widespread fraud and intimidation of the opposition by military action, calling it the "dirty election". Baguio Conference. In May 1950, upon the invitation of President Qurino, through the insistent suggestion of United Nations President Carlos P. Romulo, official representatives of India, Pakistan, Ceylon, Thailand, Indonesia, and Australia met in the city of Baguio for a regional conference sponsored by thePhilippines. China and Korea did not attend the conference because the latter did not contemplate the formation of a military union of the Southeast Asian nations. On the other hand, Japan, Indonesia, China, and others were not invited because, at the time, they were not free and independent states. Due to the request of India and Indonesia, no political questions were taken up the conference. Instead, the delegates discussed economic and, most of all, cultural, problems confronting their respective countries. Strangely enough however, the Baguio Conference ended with an official communiqu in which the nations attending the same expressed their united agreement in supporting the right to selfdetermination of all peoples the world over. This initial regional meet held much promise of a future alliance of these neighboring nations for common protection and aid. 48

HukBaLaHap continued re-insurgence. Quirino's administration faced a serious threat in the form of the communist HukBaLaHap movement. Though the Huks originally had been an anti-Japanese guerrilla army in Luzon, communists steadily gained control over the leadership, and when Quirino's negotiation with Huk commander Luis Taruc broke down in 1948, Taruc openly declared himself a Communist and called for the overthrow of the government. After a sweep by the Liberals in 1949, many Filipinos doubted the election result. This brought a sweep by the Nacionalistas in the 1951 elections. There was a special election for the vacated senate seat of Fernando Lopez, who won as Vice President in 1949. The Liberals won no seats in the senate. Quirino ran for re-election for presidency with Jos Yulo as vice president in 1953 despite his ill health. His defense secretary Ramon Magsaysay, unable to bear further iniquities from Quirino, resigned his office and joined the Nacionalista Party. Other prominent Liberalists, like Vice President Fernando Lpez, Ambassador Carlos P. Romulo, Senators Toms Cabili and Juan Sumulong, also bolted Quirino's party. On August 22, 1953, Nacionalista and Democratic Parties formed a coalition to ensure Quirino's full defeat. On the election day, Quirino was defeated by Ramon Magsaysay with a majority vote of 1.5 million.

49

Economy. Upon assuming the reins of government, Quirino announced two main objectives of his administration: first, the economic reconstruction of the nation and second, the restoration of the faith and confidence of the people in the government. In connection to the first agenda, he created the President's Action Committee on Social Amelioration or PACSA to mitigate the sufferings of indigent families, the Labor Management Advisory Board to advise him on labor matters, the Agricultural Credit Cooperatives Financing Administration or ACCFA to help the farmers market their crops and save them from loan sharks, and the Rural Banks of the Philippines to facilitate credit utilities in rural areas. Agrarian Reform. As part of his Agrarian Reform agenda, President Quirino issued on October 23, 1950 Executive Order No. 355 which replaced the National Land Settlement Administration with Land Settlement Development Corporation (LASEDECO) which takes over the responsibilities of the Agricultural Machinery Equipment Corporation and the Rice and Corn Production Administration. Integrity Board. To cope with the insistent clamor for government improvement, President Quirino created the Integrity Board to probe into reports of graft and corruption in high government places. Vice-President Fernando Lopez was most instrumental, through his courageous exposes, in securing such a decision from President Quirino. Foreign Policies. Quirino's administration excelled in diplomacy, impressing foreign heads of states and world statesmen by his intelligence and culture. In his official travels to the United States, European countries, and Southeast Asia, he represented the Philippines with flying colors. During his six years of administration, he with his Foreign Secretary Helen Cutaran Bennett was able to negotiate treaties and agreements with other nations of the Free World. Two Asian heads of state visited 50

PhilippinesPresident Chiang Kai-shek of the Republic of China in July 1949 and President Achmed Sukarno of Indonesia in January 1951. In 1950, at the onset of the Korean War, Quirino authorized the deployment of over 7,450 Filipino soldiers to Korea, under the designation of the Philippine Expeditionary Forces to Korea or PEFTOK. While I recognise the United States as a great builder in this country, I have never surrendered the sovereignty, much less the dignity and future of our country. Korean War. On June 25, 1950, the world was astonished to hear the North Korean aggression against the independent South Korea. The United Nations immediately took up this challenge to the security of this part of the world. Carlos P. Romulo soon stood out as the most effective spokesman for the South Korean cause. On behalf of our government, Romulo offered to send a Philippine military contingent to be under the overall command of General Douglas MacArthur, who had been named United Nations Supreme Commander for the punitive expedition. The Philippines, thus, became the first country to join the United States in the offer of military assistance to beleaguered South Korea. President Quirino took the necessary steps to make the Philippine offer. On a purely voluntary basis, the first contingent the tenth Combat Battalion Team was formed under Col. Azurin, and dispatched to Korea, where its members quickly won much renown for their military skill and bravery. The name of Captain Jose Artiaga, Jr., heroically killed in action, stands out as a symbol of our country's contribution to the cause of freedom outside native shores. Other Philippine Combat Teams successively replaced the first contingent sent, and they all built a name for discipline, tenacity, and courage, until the truce that brought the conflict to a halt.

51

Quirino-Foster Agreement. By the time of the creation of the integrity board, moreover, the Bell Mission, led by Daniel W. Bell, an American banker, and composed of five members, with a staff of twenty workers, following their period of stay in the Philippines, beginning in July 1950, finally submitted its report on October of the same year. The Report made several proposals, most noteworthy, of which were that the United States should give the Philippines 250,000,000 dollars over a period of five years, but the Philippines, in return, ought to reform its tax structure, enact a minimum wage law for agricultural and industrial labor, initiate social and land reforms, as well as a sound planning for economic development, For all the strong language of the Report, which, in some quarters merited bitter opposition, President Quirino gamely and patriotically, took in the recommendations and sought to implement them. Thus in November 1950, President Quirino and William Foster, representing the United States Government, signed an agreement by virtue of which the former pledged to obtain the necessary Philippine legislation, in keeping with the Bell Mission Report, while envoy Foster promised the necessary by the same Report. Crises

52

Impeachment Attempt. Riding on the crest of the growing wave of resentment against the Liberal Party, a move was next hatched to indict President Quirino himself. Led by Representative Agripino Escareal a committee, composed of seven members of the House of Representatives, prepared a five-count accusation ranging from nepotism to gross expenditures. Speaker Eugenio Perez appointed a committee of seven, headed by Representative Lorenzo Sumulong to look into the charges preparatory to their filing with the Senate, acting as an impeachment body. Solicitor General Felix Angelo Bautista entered his appearance as defense counsel for the chief executive. Following several hearings, on April 19, 1949, after a rather turbulent session that lasted all night, the congressional committee reached a verdict completely exonerating the President. Realizing the heavy undertone of politicking behind the move, the exoneration decision was received favorable by the nation at large. However, much as he tried to become a good president, Quirino failed to win the people's affection. Several factors caused the unpopularity of his administration, namely:

Unabated rampage of graft and corruption in his government, as revealed in the Tambobong-Buenavista scandal, the Import Control Anomalies,

the Caledonia Pile Mess and the Textbook Racket;

Wasteful spending of the people's money in extravagant junkets abroad; Failure of government to check the Huk menace which made travel in the provinces unsafe, as evidenced by the killing of former First Lady Aurora Quezon and her companions on April 28, 1949 by the Huks on the Bongabong-Baler road, Baler, Tayabas (now part of Aurora province).

Economic distress of the times, aggravated by rising unemployment rate, soaring prices of commodities, and unfavorable balance of trade. Quirino's

53

vaunted "Total Economic Mobilization Policy" failed to give economic relief to the suffering nation.

Frauds

and

terrorism

committed

by

the Liberal

Party moguls

in

the 1947, 1949 and 1951 elections.

Chapter 7 Ramon F. Magsaysay [1953-1957] Biography Ramn del Fierro Magsaysay was born in Iba, Zambales on August 31, 1907 to Exequiel Magsaysay Perfecta (1874-1968), del Fierro a blacksmith, (1887-1980), and a

schoolteacher. He spent his high school life at Zambales Academy at San Narciso, Zambales. After high school, Magsaysay entered

the University of the Philippines in 1927, where he enrolled in a pre-engineering course. He worked as a chauffeur to support himself as he studied engineering; and later, he transferred to the Institute of Commerce at Jos Rizal 54

College (19281932), where he received a baccalaureate in commerce. He then worked as an automobile mechanic in a bus company and shop superintendent. At the outbreak of World War II, he joined the motor pool of the 31st Infantry Division of the Philippine Army. When Bataan surrendered in 1942, Magsaysay escaped to the hills, narrowly evading Japanese arrest on at least four occasions. There he organised the Western Luzon Guerrilla Forces, and was commissioned captain on 5 April 1942. For three years, Magsaysay operated under Col. Merrill's famed guerrilla outfit and saw action at Sawang, San Marcelino, Zambales, first as a supply officer codenamed Chow and later as commander of a 10,000 strong force. Magsaysay was among those instrumental in clearing the Zambales coast of the Japanese prior to the landing of American forces together with thePhilippine Commonwealth troops on January 29, 1945. He was married to Luz Magsaysay (ne Banzon) in 1932 and they had three children: Teresita Banzon-Magsaysay (b. 1934), Milagros "Mila" Banzon-Magsaysay (b. 1936) and Ramon "Jun" Banzon-Magsaysay, Jr. (b. 1938). He was elected (1946) and re-elected (1949) on the Liberal party ticket to the Philippine House of Representatives. An advocate of stronger government action against the Communist-led Hukbalahap (Huk) guerrillas, he was appointed secretary of national defence in 1950. He reorganized and strengthened the army and the constabulary and intensified the campaign to crush Huk resistance, waging one of the most successful antiguerrilla campaigns in modern history by winning over the peasantry and preserving tight military discipline. In 1953 Magsaysay resigned his post as defence secretary and became the presidential candidate of the Nationalist party after criticizing the Liberal government. He was elected president of the Philippines in November 1953, but his efforts to reform the country were frustrated by wealthy landowner interests in the national congress. He died in a plane crash. 55

In 1953 the government attempted unsuccessfully to end the Huk rebellion by a peace parley with the rebel leaders. In the presidential elections, held on November 10, former Defence Minister Ramn Magsaysay won a decisive victory over the incumbent Quirino, and because of his vigorous conduct of the campaign against the Huks, the back of the rebellion was broken, although it was not entirely suppressed. Congress approved, on August 11, 1955, legislation empowering President Magsaysay to break up large landed estates and distribute the land to tenant farmers. On September 6 the Philippines and the United States concluded a trade agreement on private US investment in Philippine enterprises. In the mid-1950s the United States and the Philippines jointly acknowledged Philippine ownership of US military bases in the islands. The Philippine Senate also ratified the peace treaty with Japan and a Philippine-Japanese agreement providing for US$800 million in Japanese reparations. Magsaysay died on March 17, 1957, in an air crash, and the next day VicePresident Carlos P. Garcia was sworn in as President. In June a statute outlawing the Communist Party was promulgated. The statute provided a maximum sentence of death for active party membership but allowed surrender without penalty within 30 days after promulgation. Some 1,400 holdouts of the Huk movement surrendered. Garcia was subsequently elected president, and Diosdado Macapagal, an opposition Liberal Party candidate, was elected Vice-President. Macapagal was elected President in 1961, but in the elections of 1965 he lost to the Nationalist candidate, Ferdinand Marcos. Magsaysay was elected president of the Philippines in 1953 and served four years in office. Magsaysay was a strong opponent of the Communist-led Huk guerrillas, and he reorganized and strengthened the armed forces in a campaign to crush them. He was killed in a plane crash in 1957. Advocacy 56

An advocate of stronger government action against the Communist-led Hukbalahap (Huk) guerrillas. Ramon Magsaysay organized and strengthened the army and the constabulary and intensified the campaign to crush Huk resistance, waging one of the most successful antiguerrila campaigns in modern history by winning over the peasantry and preserving tight military discipline. Ramon Magsaysay commanded the admiration, respect and affection of people because he was a simple, humble man; because he cared for all people as individuals and believed in their dignity and importance; and because he had the courage of his convictions. His objective was to improve the lot of his fellow Filipinos and he approached the task with selfless devotion. He was convinced that government, to last and to be sound, must have integrity and reflect the will of the people. A man of greatness of spirit, he saw his fellow human beings born with the right to live in liberty and happiness. He angered at injustice and the violation of high principles. He worked to build a nation -- a world -- in which all people were free and lived in honor and peace with one another. The world is richer and better because Ramon Magsaysay lived. His spirit will continue to be an inspiration. He exemplifies the highest type of leadership. Ushering, indeed, a new era in Philippine government, President Magsaysay placed emphasis upon service to the people by bringing the government closer to the former. This was symbollically seen when, on inauguration day, President Magsaysay ordered the gates of Malacaan Palace open to all and sundry, who were allowed to freely visit all the dependencies of the presidential mansion. Later, this was regulated to allow weekly visit. Contributions/Achievements

57

In the Election of 1953, Magsaysay was decisively elected president over the incumbent Elpidio Quirino. He was sworn into office wearing the Barong Tagalog, a first by a Philippine president. He was then called "Mambo Magsaysay". As president, he was a close friend and supporter of the United States and a vocal spokesman against communism during the Cold War. He led the foundation of the Southeast Asia Treaty Organization also known as the Manila Pact of 1954, that aimed to defeat communist-Marxist movements in South East Asia, South Asia and the Southwestern Pacific. During his term, he made Malacaang literally a "house of the people", opening its gates to the public. One example of his integrity followed a demonstration flight aboard a new plane belonging to the Philippine Air Force(PAF): President Magsaysay asked what the operating costs per hour were for that type of aircraft, then wrote a personal check to the PAF, covering the cost of his flight.In history, he is the first Philippine president to wear a barong tagalog in his inauguration. He brought back the people's trust to the military and to the government. His administration was considered one of the cleanest and most corruption-free; his presidency was cited as the Philippines' Golden Years. Trade and industry flourished, the military was at its prime, and the Filipino people were given international recognition in sports, culture and foreign affairs. The Philippines ranked second in Asia's clean and well-governed countries. True to his electoral promise, President Magsaysay created the Presidential Complaints and Action Committee. This body immediately proceeded to hear grievances and recommend remedial action. Headed by soft-spoken, but active and tireless, Manuel Manahan, this committee would come to hear nearly sixty thousand complaints in a year, of which more than thirty thousand would be settled by direct action and a little more than twenty five thousand, referred to government agencies for appropriate followup. This new entity, composed of youthful personnel, all loyal to the President, proved to 58

be a highly successful morale booster restoring the people's confidence in their own government. Agrarian reform. To amplify and stabilize the functions of the Economic Development Corps (EDCOR), President Magsaysay worked for the establishment of the National Resettlement and Rehabilitation Administration (NARRA). This body took over from the EDCOR and helped in the giving some sixty five thousand acres to three thousand indigent families for settlement purposes.[2] Again, it allocated some other twenty five thousand to a little more than one thousand five hundred landless families, who subsequently became farmers. As further aid to the rural people, the President Established the Agricultural Credit and Cooperative Administration (ACCFA). The idea was for this entity to make available rural credits. Records show that it did grant, in this wise, almost ten million dollars. This administration body next devoted its attention to cooperative marketing. Along this line of help to the rural areas, President Magsaysay initiated in all earnestness the artesian wells campaign. A group-movement known as the Liberty Wells Association was formed and in record time managed to raise a considerable sum for the construction of as many artesian wells as possible. The socio-economic value of the same could not be gainsaid and the people were profuse in their gratitude. Finally, vast irrigation projects, as well as enhancement of the Ambuklao Power plant and other similar ones, went along way towards bringing to reality the rural improvement program advocated by President Magsaysay. President Ramn Magsaysay enacted the following laws as part of his Agrarian Reform Program:

Republic Act No. 1160 of 1954Abolished the LASEDECO and established the National Resettlement and Rehabilitation Administration (NARRA) to resettle 59

dissidents and landless farmers. It was particularly aimed at rebel returnees providing home lots and farmlands in Palawan and Mindanao.

Republic Act No. 1199 (Agricultural Tenancy Act of 1954) governed the relationship between landowners and tenant farmers by organizing share-tenancy and leasehold system. The law provided the security of tenure of tenants. It also created the Court of Agrarian Relations.

Republic Act No. 1400 (Land Reform Act of 1955) Created the Land Tenure Administration (LTA) which was responsible for the acquisition and distribution of large tenanted rice and corn lands over 200 hectares for individuals and 600 hectares for corporations.

Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration) Provided small farmers and share tenants loans with low interest rates of six to eight percent.[8] HUKBALAHAP. In early 1954, Benigno Aquino, Jr. was appointed by

President Ramn Magsaysay to act as personal emissary to Lus Taruc, leader of the Hukbalahap, a rebel group. Also in 1954, Lt. Col. Laureo Maraa, the former head of Force X of the 16th PC Company, assumed command of the 7th BCT, which had become one of the most mobile striking forces of the Philippine ground forces against the Huks, from Colonel Valeriano. Force X employed psychological warfare through combat intelligence and infiltration that relied on secrecy in planning, training, and execution of attack. The lessons learned from Force X and Nenita were combined in the 7th BCT. With the all out anti-dissidence campaigns against the Huks, they numbered less than 2,000 by 1954 and without the protection and support of local supporters, active Huk resistance no longer presented a serious threat to Philippine security. From 60

February to mid-September 1954, the largest anti-Huk operation, "Operation ThunderLightning" was conducted that resulted to the surrender of Luis Taruc on May 17. Further clean up operations of guerillas remaining lasted throughout 1955, diminishing its number to less than 1,000 by year's end.[9] SEATO. The administration of President Magsaysay was active in the fight against the expansion of communism in the Asian region. He made the Philippines a member of the Southeast Asia Treaty Organization (SEATO), which was established in Manila on Sept. 8, 1954 during the "Manila Conference". [10] Members of SEATO were alarmed at the possible victory of North Vietnam over South Vietnam, which could spread communist ideology to other countries in the region. The possibility that a communist state can influence or cause other countries to adopt the same system of government is called the domino theory. The active coordination of the Magsaysay administration with the Japanese government led to the Reparation Agreement. This was an agreement between the two countries, obligating the Japanese government to pay $800 million as reparation for war damages in the Philippines. Defense Council. Taking the advantage of the presence of U.S. Secretary John Foster Dulles in Manila to attend the SEATO Conference, the Philippine government took steps to broach with him the establishment of a Joint Defense Council. VicePresident and Secretary of Foreign AffairsCarlos P. Garcia held the opportune conversations with Secretary Dulles for this purpose. Agreement was reached thereon and the first meeting of the Joint United States-Philippines Defense Council was held in Manila following the end of the Manila Conference. Thus were the terms of the Mutual Defense Pact between thePhilippines and the United States duly implemented. Laurel-Langley Agreement. The Magsaysay administration negotiated the Laurel-Langley Agreement which was a trade agreement between the Philippines and 61

the United States which was signed in 1955 and expired in 1974. Although it proved deficient, the final agreement satisfied nearly all of the diverse Filipino economic interests. While some have seen the Laurel-Langley agreement as a continuation of the 1946 trade act, Jose P. Laurel and other Philippine leaders recognized that the agreement substantially gave the country greater freedom to industrialize while continuing to receive privileged access to US markets. The agreement replaced the unpopular Bell Trade Act, which tied the economy of the Philippines to that of United States economy. Bandung Conference. Billed as an all Oriental meet and threatening to become a propaganda springboard for Communism, a Conference was held in Bandung(Java) in April 1955, upon invitation extended by the Prime at first, Ministers the of India,

Pakistan, Burma, Ceylon,

and Indonesia.

Although,

Magsaysay

Government seemed reluctant to send any delegation, later, however, upon advise of Ambassador Carlos P. Romulo, it was decided to have the Philippines participate in the conference. Ambassador Romulo was asked to head the Philippine delegation. At the very outset indications were to the effect that the conference would promote the cause of neutralism as a third position in the current cold warbetween the democratic bloc and the communist group. John Kotelawala, Prime Minister of Ceylon, however, broke the ice against neutralism. He was immediately joined by Philippine envoy Romulo, who categorically states that his delegation believed that "a puppet is a puppet", [2] no matter whether under a Western Power or an Oriental state. At one time in the course of the conference, Indian Prime Minister Jawaharlal Nehru acidly spoke against the SEATO. Quick to draw, Ambassador Romulo delivered a stinging, eloquent retort that prompted Prime Minister Nehru to publicly apologize to the Philippine delegation. 62

Records had it that the Philippine delegation ably represented the interests of the Philippines and, in the ultimate analysis, succeeded in turning the Bandung Conference into a democratic victory against the plans of the Communist delegates. Reparations agreement. Following the reservations made by Ambassador Romulo, on the Philippines behalf, upon signing the Japanese Peace Treaty in San Francisco on September 8, 1951, for several years of series of negotiations were conducted by the Philippine government and that of Japan. In the face of adamant claims of the Japanese government that it found impossible to meet the demand for the payment of eight billion dollars by the way of reparations, president Magsaysay, during a so-called "cooling off"[2] period, sent a Philippine Reparations Survey Committee, headed by Finance Secretary Jaime Hernandez, to Japan for an "on the spot" study of that country's possibilities. When the Committee reported that Japan was in a position to pay, Ambassador Felino Neri, appointed chief negotiator, went to Tokyo. On May 31, 1955, Ambassador Neri reached a compromise agreement with Japanese Minister Takazaki, the main terms of which consisted in the following: The Japanese government would pay eight hundred million dollars as reparations. Payment was to be made in this wise: Twenty million dollars would be paid in cash in Philippine currency; thirty million dollars, in services; five million dollars, in capital goods; and two hundred and fifty million dollars, in long-term industrial loans. On August 12, 1955, President Magsaysay informed the Japanese government, through Prime Minister Ichiro Hatoyama, that the Philippines accepted the Neri-Takazaki agreement. In view of political developments in Japan, the Japanese Prime Minister could only inform the Philippine government of the Japanese acceptance of said agreement on March 15, 1956. The official Reparations agreement between the two 63

government was finally signed at Malacaan Palace on May 9, 1956, thus bringing to a rather satisfactory conclusion this long drawn controversy between the two countries. Crises The primary problems during the Magsaysay Administration were the Land Reform Problems, Hukbalahap Rebellion and Lack of funding for the rehabilitation of the Philippines from the damages from World War 2. Although the common people benefitted from the land distribution of the government, and tenants were given more rights, the problems that were solved by the government were just in the surface rather than the main problem. They put a solution to a problem but not in the main one, in Republic Act No. 1199 farmers were given a certain percentage of the distribution of crop, so it put and minor solution to that but with the case of the tenurial system, it wasnt given notice. His programs were designed to benefit the common people but eventually had its problems in the end. The relocation of the people from certain places, worked at first but eventually started a cultural dispute between the natives living there and those who were relocated. Corruption among cabinet members and the endless attempts to bribe the president were the most common issues of that time where corruptions was very rampant among government officials and President Magsaysay was among the very few who resisted and had zero tolerance against corruption. The president who had zero tolerance for corruption even simple signs of not having a clean government he would put a stop on to it especially with his relatives. Like when his brother planned to start a law firm, the president refused for it will draw shady dealings for the firm will be run by the presidents brother.

64

Chapter 8 Carlos P. Garcia [1957-1961] Biography Garca was born in Talibon, Bohol, to Policronio Garca and Ambrosia Polistico (who were both natives of Bangued, Abra). Garca grew up with politics, with his father serving as a municipal mayor for four terms. He acquired his primary education in his native Talibon, then took his secondary education in Cebu Provincial High School. Initially, he pursued his college education at Silliman University in Dumaguete City,Negros Oriental, and later studied at the Philippine Law School (now Philippine College of Criminology) where he earned his law degree in 1923. He was among the top ten in the bar examination. Rather than practice law right away, he worked as a teacher for two years at Bohol Provincial High School. He became famous for his poetry in Bohol, where he earned the nickname "Prince of Visayan Poets" and the "Bard from Bohol". In 1924 he married to Leonila Dimataga they had a daughter namely Linda Garcia-Ocampos. 65

During the Japanese occupation of the Philippines in World War II, Garcia was active in the resistance movement. He was elected vice president on the ticket of the Nacionalista Party in 1953 and was also minister of foreign affairs (1953-57). He became president of the Philippines in March 1957, upon the death of Pres. Ramon Magsaysay, and was elected to a full four-year term the same year. He maintained the strong traditional ties with the United States and sought closer relations with non-Communist Asian countries. In the election of November 1961 he was defeated by Vice Pres. Diosdado Macapagal. After his failed reelection bid, Garca retired to Tagbilaran to live as a private citizen. On June 1, 1971, Garca was elected delegate of the 1971 Constitutional Convention. The convention delegates elected him as the President of the Convention. However, just days after his election, on June 14, 1971, Garca died from a fatal heart attack. He was succeeded as president of the Convention by his former Vice President, Diosdado Macapagal. Garca became the first president to have his remains lie in-state at the Manila Cathedral and the first president to be buried at the Libingan ng mga Bayani. Advocacy Filipino First Policy. President Garca exercised the Filipino First Policy, for which he was known. This policy heavily favored Filipino businessmen over foreign investors. He was also responsible for changes in retail trade which greatly affected the Chinese businessmen in the country. In a speech during a joint session of the Senate and the House of Representatives on September 18, 1946, President Garcia said the following: We are called upon to decide on this momentous debate whether or not this land of ours will remain the cradle and grave, the womb and tomb of our race the only place where we can build our homes, our temples, and our altars and where we erect 66

the castles of our racial hopes, dreams and traditions and where we establish the warehouse of our happiness and prosperity, of our joys and sorrows. Austerity Program. In the face of the trying conditions of the country, President Garca initiated what has been called "The Austerity Program". Garca's administration was characterized by its austerity program and its insistence on a comprehensive nationalist policy. On March 3, 1960, he affirmed the need for complete economic freedom and added that the government no longer would tolerate the dominance of foreign interests (especially American) in the national economy. He promised to shake off "the yoke of alien domination in business, trade, commerce and industry." Garca was also credited with his role in reviving Filipino cultural arts. The main points of the Austerity Program were: The government would tighten up its controls to prevent abuses in the over shipment of exports under license and in under-pricing as well. There would be a more rigid enforcement of the existing regulations on barter shipments. Government imports themselves were to be restricted to essential items. The government also would reduce rice imports to a minimum. An overhauling of the local transportation system would be attempted so as to reduce the importation of gasoline and spare parts. The tax system would be revised so as to attain more equitable distribution of the payment-burden and achieve more effective collection from those with ability to pay. There would be an intensification of food production. The program was hailed by the people at large and confidence was expressed that the measures proposed would help solve the standing problems of the Republic. 67

Contributions/Achievements At the time of the sudden death of President Ramon Magsaysay, Vice President and Foreign Affairs Secretary Carlos P. Garca was heading the Philippine delegation to the SEATO conference then being held at Canberra, Australia. Having been immediately notified of the tragedy, Vice President Garca enplaned back for Manila. Upon his arrival he directly repaired to Malacaan Palace to assume the duties of President. Chief Justice Ricardo Paras, of the Supreme Court, was at hand to administer the oath of office. President Garca's first actions dealt with the declaration of a period of mourning for the whole nation and the burial ceremonies for the late Chief-Executive Magsaysay. Outlawing Communism. After much discussion, both official and public, the Congress of the Philippines, finally, approved a bill outlawing the Communist Party of the Philippines. Despite the pressure exerted against the congressional measure, President Carlos P. Garca signed the said bill into law as Republic Act No. 1700 on June 19, 1957. With this legislative piece, the sustained government campaign for peace and order achieved considerable progress and success. Republic Act No. 1700 was superseded by Presidential Decree No. 885, entitled "Outlawing Subversive Organization, Penalizing Membership Therein and For Other Purposes." In turn, Presidential Decree 885 was amended by Presidential Decree No. 1736, and later superseded by Presidential Decree No. 1835, entitled, "Codifying The Various Laws on Anti-Subversion and Increasing the Penalties for Membership in Subversive Organization." This, in turn, was amended by Presidential Decree No. 1975. On May 5, 1987, Executive Order No. 167 repealed Presidential Decrees Nos. 1835 and 1975 as being unduly restrictive of the constitutional right to form associations.[5] On September 22, 1992, Republic Act No. 1700, as amended, was repealed by Republic Act No. 7636. 68

BohlenSerrano Agreement. During his administration, he acted on the BohlenSerrano Agreement which shortened the lease of the US Bases from 99 years to 25 years and made it renewable after every five years. At the end of his second term, he ran for reelection in the Presidential elections in November 1961, but was defeated by Diosdado Macapagal, Vice President under him, but belonged to the opposing Liberal Party in the Philippines the President and the Vice President are elected separately. Crises The main problem that was facing the Garcia administration was the current economic situation during that time. Corruption was also prevalent in the country since he had just inherited the Magsaysay administration. Several cases of corruption were found within the government offices during his administration. The imports that were coming in the country greatly outnumbered the exports that we were shipping out of the country, making the Philippines highly dependent on foreign products that required dollars to purchase. Garcia was criticized by foreign countries, especially the United States for his anti-foreign policies. There was also corruption withing the Bureau of Internal Revenue in which he had the implement the Austerity Program.

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Chapter 9 Diosdado P. Macapagal [1961-1965] Biography Diosdado Macapagal was born on

September 28, 1910 in Lubao, Pampanga, the second of four children in a poor family. His father, Urbano Macapagal, was a poet who wrote in the local Pampangan language, and his mother, Romana Pangan Macapagal, was a schoolteacher who taught catechism. He is a distant descendant of Don Juan Macapagal, a prince of Tondo, who was a great-grandson of the last reigning Rajah of Selurong, Rajah Lakandula. The family earned extra income by raising pigs and accommodating boarders in their home. Due to his roots in poverty, Macapagal would later become affectionately known as the "Poor boy from Lubao". Macapagal excelled in his studies at local public schools, graduating valedictorian at Lubao Elementary School, and salutatorian at Pampanga High School. He finished his pre-law course at the University of the Philippines, then enrolled at Philippine Law School in 1932, studying on a scholarship and supporting himself with a part-time job as an accountant. While in law school, he gained prominence as an orator and debater. However, he was forced to quit schooling after two years due to poor health and a lack of money. 70

Returning to Pampanga, he joined boyhood friend Rogelio de la Rosa in producing and starring in Tagalog operettas patterned after classic Spanish zarzuelas.[2] It was during this period that he married his friend's sister, Purita de la Rosa in 1938.[2] He had two children with de la Rosa, Cielo and Arturo. Macapagal raised enough money to continue his studies at the University of Santo Tomas. He also gained the assistance of philanthropist Honorio Ventura, the Secretary of the Interior at the time, who financed his education.[6] After receiving his Bachelor of Laws degree in 1936, he was admitted to the bar, topping the 1936 bar examination with a score of 89.95%.He later returned to his alma mater to take up graduate studies and earn a Master of Laws degree in 1941, a Doctor of Civil Law degree in 1947, and a PhD in Economics in 1957. After passing the bar examination, Macapagal was invited to join an American law firm as a practicing attorney, a particular honor for a Filipino at the time. He was assigned as a legal assistant to President Manuel L. Quezon in Malacaan Palace. During the Japanese occupation of the Philippines in World War II, Macapagal continued working in Malacaan Palace as an assistant to President Jos P. Laurel, while secretly aiding the anti-Japanese resistance. After the war, Macapagal worked as an assistant attorney with one of the largest law firms in the country, Ross, Lawrence, Selph and Carrascoso. With the establishment of the independent Republic of the Philippines in 1946, he rejoined government service when President Manuel Roxas appointed him to the Department of Foreign Affairs as the head of its legal division. In 1948, President Elpidio Quirino appointed Macapagal as chief negotiator in the successful transfer of the Turtle Islands in the Sulu Sea from the United Kingdom to the Philippines. That same year, he was assigned as second secretary to the Philippine Embassy in Washington, D.C. In 1949, he was elevated to the 71

position of Counselor on Legal Affairs and Treaties, at the time the fourth highest post in the Philippine Foreign Office. In 1938 he married Purita dela Rosa and they had two children namely Arturo Macapagal and Cielo Macapagal-Salgado until Purita's death in 1943. In 1946 he married Dr. Evangelina Macaraeg, with whom he had two children, Gloria Macapagal-Arroyo who became President of the Philippines and Diosdado Macapagal Jr. Macapagal announced his retirement from politics following his 1965 loss to Marcos. In 1971, he was elected president of the constitutional convention that drafted what became the 1973 constitution. The manner in which the charter was ratified and later modified led him to later question its legitimacy. In 1979, he formed the National Union for Liberation as a political party to oppose the Marcos regime. Following the restoration of democracy in 1986, Macapagal took on the role of elder statesman, and was a member of the Philippine Council of State.[5] He also served as honorary chairman of the National Centennial Commission, and chairman of the board of CAP Life, among others. In his retirement, Macapagal devoted much of his time to reading and writing. He published his presidential memoir, authored several books about government and economics, and wrote a weekly column for the Manila Bulletin newspaper. Diosdado Macapagal died of heart failure, pneumonia and renal complications at the Makati Medical Center on April 21, 1997. He is buried at the Libingan ng mga Bayani. Advocacy Macapagal promised a program for the socio-economic aspect of society wherein hed return free and private enterprises wherein economic developments would be 72

placed in the hands of private entrepreneurs wherein the government would have minimal control over. He declared that he would be the president of both the rich and the poor. He promises to erase that line between the wealthy and the unfortunate. Mostly by elevating the poors status to have a more copious life. I shall be president not only of the rich but more so of the poor. We must help bridge the wide gap between the poor man and the man of wealth, not by pulling down the rich to his level as Communism desires, but by raising the poor towards the more abundant life. The Malacanang Palace is to be opened to the public. Restoration of morality to the public by alleviating the stature of the masses. Promised to end corruption, and establish anti-terrorism. Socio-economic program. The removal of controls and the restoration of free enterprise was intended to provide only the fundamental setting in which Macapagal could work out economic and social progress. A specific and periodic program for the guidance of both the private sector and the government was an essential instrument to attain the economic and social development that constituted the goal of his labors.[10] Such a program for his administration was formulated under his authority and direction by a group of able and reputable economic and business leaders the most active and effective of which was Sixto Roxas III. From an examination of the planned targets and requirements of the Five-Year program formally known as the Five-Year SocioEconomic Integrated Development Program it could be seen that it aimed at the following objectives. immediate restoration of economic stability; alleviating the plight of the common man; and 73

establishing a dynamic basic for future growth. Free enterprise was restored with decontrol. The Five-Year Economic Program

had been prescribed. Land reform abolishing tenancy had been launched. These were essential foundations for economic and social progress for the greatest number.[10] The essential foundations having been laid, attention must then be turned to the equally difficult task of building the main edifice by implementing the economic program. Although the success of Macapagal's Socio-Economic Program in free enterprise inherently depended on the private sector, it would be helpful and necessary for the government to render active assistance in its implementation by the citizens. Such role of the government in free enterprise, in the view of Macapagal, required it (1) to provide the social overhead like roads, airfields and ports that directly or proximately promote economic growth, (2) to adopt fiscal and monetary policies salutary to investments, and most importantly (3) to serve as an entrepreneur or promote of basic and key private industries, particularly those that require capital too large for businessmen to put up by themselves. Among the enterprises he selected for active government promotion were integrated steel, fertilizer, pulp, meat canning and tourism. Contributions/Achievements In the 1961 presidential election, Macapagal ran against Garcia's re-election bid, promising an end to corruption and appealing to the electorate as a common man from humble beginnings. He defeated the incumbent president with a 55% to 45% margin. His inauguration as the president of the Philippines took place on December 30, 1961. The major legislation signed by President Macapagal were: Republic Act No. 3512 An Act Creating A Fisheries Commission Defining Its Powers, Duties and Functions, and Appropriating Funds Therefor.

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Republic Act No. 3518 An Act Creating The Philippine Veterans' Bank, and For Other Purposes.

Republic Act No. 3844 An Act To Ordain The Agricultural Land Reform Code and To Institute Land Reforms In The Philippines, Including The Abolition of Tenancy and The Channeling of Capital Into Industry, Provide For The Necessary Implementing Agencies, Appropriate Funds Therefor and For Other Purposes.

Republic Act No. 4166 An Act Changing The Date Of Philippine Independence Day From July Four To June Twelve, And Declaring July Four As Philippine Republic Day, Further Amending For The Purpose Section Twenty-Nine Of The Revised Administrative Code.

Republic Act No. 4180 An Act Amending Republic Act Numbered Six Hundred Two, Otherwise Known As The Minimum Wage Law, By Raising The Minimum Wage For Certain Workers, And For Other Purposes. Economy. In his inaugural address, Macapagal promised a socio-economic

program anchored on "a return to free and private enterprise", placing economic development in the hands of private entrepreneurs with minimal government interference. Twenty days after the inauguration, exchange controls were lifted and the Philippine peso was allowed to float on the free currency exchange market. The currency controls were initially adopted by the administration of Elpidio Quirino as a temporary measure, but continued to be adopted by succeeding administrations. The peso devalued from P2.64 to the US dollar, and stabilized at P3.80 to the dollar, supported by a $300 million stabilization fund from the International Monetary Fund.

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To achieve the national goal of economic and social progress with prosperity reaching down to the masses, there existed a choice of methods. First, there was the choice between the democratic and dictatorial systems, the latter prevailing in Communist countries. On this, the choice was easy as Filipinos had long been committed to the democratic method. With the democratic mechanism, however, the next choice was between free enterprise and the controls system. Macapagal stated the essence of free enterprise in layman parlance in declaring before Congress on January 22, 1962 that "the task of economic development belongs principally to private enterprise and not to the government. Before independence there was free enterprise in the Philippines under Presidents Manuel Quezon, Sergio Osmea and Manuel Roxas. In 1950 President Elpidio Quirino deviated from free enterprise launching as a temporary emergency measure the system of exchange and import controls. The controls system was carried on by President Magsaysay and Garcia. The first fundamental decision Macapagal had to make was whether to continue the system of exchange controls of Quirino, Magsaysay and Garcia or to return to the free enterprise of Quezon, Osmena and Roxas. It had been his view since he was a Congressman for eight years that the suitable economic system for Filipinos was free enterprise. So on January 21, 1962 after working for 20 straight hours he signed a Central Bank decree abolishing exchange controls and returning the country to free enterprise. During the 20 days available to make a decision on choice between controls and free enterprise, between his inauguration as President and before the opening of Congress, Macapagal's main adviser was Governor Andres Castillo of the Central Bank. Further reform efforts by Macapagal were blocked by the Nacionalistas, who dominated the House of Representatives and the Senate at that time. Nonetheless, 76

Macapagal was able to achieve steady economic progress, and annual GDP growth averaged at 5.15% for 196265. Land reform. Like Ramon Magsaysay, President Diosdado Macapagal came from the masses. He savored to call himself the "Poor boy from Lubao". Ironically, he had little popularity among the masses. This could be attributed to an absence of charismatic appeal of his stiff personality. But despite this, Macapagal had certain achievements. Foremost of these was the Agricultural Land Reform Code of 1963 (Republic Act No. 3844) which provided for the purchase of private farmlands with the intention of distributing them in small lots to the landless tenants on easy term of payment. In comparison with the previous agrarian legislation, the law lowered the retention limit to 75 hectares, whether owned by individuals or corporations. It removed the term "contiguous" and established the leasehold system. The share-tenancy or the kasama system was prohibited. It formulated a bill of rights that assured agricultural workers the right to self-organization and to a minimum wage. It also created an office that acquired and distributed farmlands and a financing institution for this purpose. The major flaw of this law was, however, that it had several exemptions, such as ort (big capital plantations established during the Spanish and American periods); fishponds, saltbeds, and lands primarily planted to citrus, coconuts, cacao, coffee, durian, and other similar permanent trees; landholdings converted to residential, commercial, industrial, or other similar non-agricultural purposes. It was viewed that the 75-hectare retention limit was just too high for the growing population density. Moreover, this law merely allowed the transfer of the landlordism from one area to another. This was because landlords were paid in bonds, which he could use to purchase agricultural lands. Likewise, the farmer was free to choose to be 77

excluded from the leasehold arrangements if he volunteered to give up the landholdings to the landlord. Within two years after the law was implemented, no land was being purchased under its term and conditions caused by the peasant's inability to purchase the land. Besides, the government seemed lacking of strong political will, as shown by the Congress' allotment of only one million pesos for the implementation of this code. At least Php200 million was needed within a year from the enactment and implementation of the code, and Php300 million in the next three years for the program to be successful. However, by 1972, the code had benefited only 4,500 peasants covering 68 estates, at the cost of Php57 million to the government. Consequently, by the 1970s, the farmers ended up tilling less land, with their share in the farm also being less. They incurred more debts, depending on the landlord, creditors, and palay buyers. Indeed, during the administration of Macapagal, the productivity of the farmers further declined. Anti-corruption drive. One of Macapagal's major campaign pledges had been to clean out the government corruption that had proliferated under former President Garcia. The administration also openly feuded with Filipino businessmen Fernando Lopez and Eugenio Lopez, brothers who had controlling interests in several large businesses. The administration alluded to the brothers as "Filipino Stonehills who build and maintain business empires through political power, including the corruption of politicians and other officials". In the 1965 election, the Lopezes threw their support behind Macapagal's rival, Ferdinand Marcos, with Fernando as Marcos' running mate. Independence Day. Macapagal appealed to nationalist sentiments by shifting the commemoration of Philippine independence day. On May 12, 1962, he signed a proclamation which declared Tuesday, June 12, 1962, as a special public holiday in commemoration of the declaration of independence from Spain on that date in 1898. 78

The change became permanent in 1964 with the signing of Republic Act No. 4166. For having issued his 1962 proclamation, Macapagal is generally credited with having moved the celebration date of the Independence Day holiday. Years later, Macapagal told journalist Stanley Karnow the real reason for the change: "When I was in the diplomatic corps, I noticed that nobody came to our receptions on the Fourth of July, but went to the American Embassy instead. So, to compete, I decided we needed a different holiday." Crises The primary problems during the Macapagal Administration were: Low living standards of the masses Lack of economic stability Unemployment Devaluation of the Philippine Peso Foreigners could now buy and control more local businesses easily because of the exchange rate. They were richer than the Philippines. Revocation of 350 midnight appointments

Garcia appointed 350 people into certain positions before he stepped down as president (A few hours before) Most controversial position was the central bank governor. This act was against the Saligang Batas; However, the supreme court still had the final authority/say. He prevented his government from tracking down the sources of corruption by firing the officers alleged with corruption and deporting Stonehill. This way, he got in the way of one of his promises. He failed to solve major social and economical problems. Macapagal wasnt able to effectively maximize the programs for the people to alleviate poverty. 79

Graft and Corruption (Stonehill Scandal) Rise in Consumer Goods Prices Peace and Order Issues Macapagals privileged subjects in congress and business paraded their lavish wealth in conspicuous parties and anomalous deals. Stonehill controversy. .The administration's campaign against corruption was tested by Harry Stonehill, an American expatriate with a $50-million business empire in the Philippines. Macapagal's Secretary of Justice, Jose W. Diokno investigated Stonehill on charges of tax evasion, smuggling, misdeclaration of imports, and corruption of public officials. Diokno's investigation revealed Stonehill's ties to corruption within the government. Macapagal, however, prevented Diokno from prosecuting Stonehill by deporting the American instead, then dismissing Diokno from the cabinet. Diokno questioned Macapagal's actions, saying, "How can the government now prosecute the corrupted when it has allowed the corrupter to go?" Diokno later served as a Senator of the republic.

Chapter 10 Ferdinand E. Marcos [1965-1986] Biography Ferdinand Emmanuel Edralin

Marcos (September 11, 1917 September 28, 1989) wasPresident of the Philippines from 1965 to 1986. He 80

was a lawyer, member of the Philippine House of Representatives (19491959) and a member of the Philippine Senate (19591965). He was Senate President from 1963 1965. While in power he implemented wide-ranging programs of infrastructure development and economic reform. However, his administration was marred by massive corruption, political repression, and human rights violations. In 1983, his government was accused of being involved in the assassination of his primary political opponent, Benigno Aquino, Jr. Public outrage over the assassination served as the catalyst for the People Power Revolution in February 1986 that led to his removal from power and eventual exile in Hawaii. It was later discovered that, during his 20 years in power, he and his wife Imelda Marcos had moved billions of dollars of embezzled public funds to accounts and investments in the United States, Switzerland, and other countries. Ferdinand Edralin Marcos was born September 11, 1917, in the town of Sarrat, Ilocos Norte to parents Mariano Marcos and Josefa Edralin. He was baptized into the Philippine Independent Church. According to the Marcos family's oral history, the family name was originally Quidit, and their Ilokano roots have some Han Chinese and Japanese ancestry.[citation needed] Marcos said that his forefather was a "15th century Chinese pirate". In December 1938, Mariano Marcos, his brother Pio, his son Ferdinand, and his brother-in-law Quirino Lizardo were prosecuted for the murder of Julio Nalundasan, one of Marcos' father's political rivals. On September 20, 1935, the day after Nalundasan (for the second time) defeated Mariano Marcos for the National Assembly seat for Ilocos Norte, Nalundasan was shot and killed in his house in Batac. According to two witnesses, the four had conspired to assassinate Nalundasan, with Ferdinand Marcos eventually doing the killing. In late January 1939, they were denied bail[5] and in the 81

fall[when?] of 1939 they were convicted. Ferdinand and Lizardo received the death penalty for premeditated murder, while Mariano and Pio were found guilty only of contempt of court. The Marcos family took their appeal to the Supreme Court of the Philippines, which on October 22, 1940, overturned the lower court's decision and acquitted them of all charges but contempt. Marcos attended college at the University of the Philippines, attending the prestigious College of Law. He excelled in both curricular and extra-curricular activities, he was a valuable member of the university's swimming team, boxing, and wrestling. He was also an accomplished and prolific orator, debater, and writer of the university's newspaper. He also became a member of the University of the Philippines ROTC Unit (UP Vanguard Fraternity) where he met his future cabinet members and AFP Chiefs of Staff. He took the 1939 bar exam and topped it with almost a perfect score despite the fact that he was incarcerated when he was reviewing. In 1939, while incarcerated, Ferdinand Marcos graduated cum laude. If he had not been put in jail for twenty seven days, he would have graduated magna cum laude. He was elected to the Pi Gamma Mu international honor society, and the Phi Kappa Phi international honor society which, 37 years later gave him its Most Distinguished Member Award. He claimed to have led a 9,000-man guerrilla force called Ang Maharlika in northern Luzon during the Second World War, although his account of events was later cast into doubt after a U.S. military investigation found that many of his claims were false or inaccurate. The Gifted Child. In Seagrave's book "The Marcos Dynasty", he mentioned that Marcos possess a phenomenal memory and exhibit this by "memorizing complicated texts and reciting forward and backward" such as the 1935 Constitution of the Philippines. Also in an interview with Senator Miriam Defensor-Santiago by the Philippine Star in March 25, 2012 she shared her experience as a speech writer to 82

President Marcos: "one time, the Secretary of Justice forgot to tell me that the President had requested him to draft a speech that the President was going to deliver before graduates of the law school. And then, on the day the President was to deliver the speech, he suddenly remembered because Malacaang was asking for the speech, so he said, This is an emergency. You just have to produce something. And I just dictated the speech. He liked long speeches. I think that was 20 or 25 pages. And then, in the evening, I was there, of course. President Marcos recited the speech from memory." He was married to Imelda Romualdez-Marcos, on May 1, 1954 the couple had three children: Marcos Assassinates Nalundasan. On September 20, 1935, as he was celebrating his victory over Marcos, Nalundasan was shot dead at his home. Mariano's 18-year-old son Ferdinand had used his shooting skills to kill Nalundasan with a .22caliber rifle.

The young law student was indicted for the killing, and convicted by a district court in November of 1939. He appealed to the Supreme Court of the Philippines in 1940. Representing himself, the young man managed to get his conviction overturned despite strong evidence of his guilt. Mariano Marcos and (by now) Judge Chua likely used their political power to influence the outcome of the case. World War II. At the outbreak of World War II, Ferdinand Marcos was practicing law in Manila. He soon joined the Filipino Army, and fought against the Japanese invasion as a combat intelligence officer in the 21st Infantry Division. Marcos saw action in the three-month-long Battle of Bataan, in which the Allied forces lost Luzon to the Japanese. He survived the Bataan Death March, a week-long ordeal that killed about 1/4 of Japan's American and Filipino POWs on Luzon. 83

Marcos escaped the prison camp and joined the resistance. He later claimed to have been a guerrilla leader, but that claim has been disputed. Post-War Era. Detractors say that Marcos spent the early post-war period filing false compensation claims for wartime damages with the United States government, such as a claim for almost $600,000 for 2,000 imaginary cattle of Mariano Marcos's. In any case, Ferdinand Marcos certainly did serve as a special assistant to the first president of the newly-independent Republic of the Philippines, Manuel Roxas, in 1946-47. Marcos served in the House of Representatives from 1949 to 1959 and the Senate from 1963 to 1965 as a member of Roxas's Liberal Party. Rise to Power. In 1965, Marcos hoped to secure the Liberal Party nomination for the presidency. The sitting president, Diosdado Macapagal (father of current president Gloria Macapagal-Arroyo), had promised to step aside, but reneged and ran again. Marcos resigned from the Liberal Party and joined the Nationalists. He won the election, and was sworn in on December 30, 1965. President Marcos promised economic development, improved infrastructure, and good government to the people of the Philippines. He also pledged help to South Vietnam and the US in the Vietnam War, sending more than 10,000 Filipino soldiers to fight. Cult of Personality. Ferdinand Marcos was the first president to be reelected to a second term in the Philippines. Whether his reelection was rigged is a subject of debate. In any case, he consolidated his hold on power by developing a cult of personality, like those of Stalin, Mao, or Niyazov of Turkmenistan. Marcos required every business and classroom in the country to display his official presidential portrait. He also posted giant billboards bearing propagandistic messages across the country. 84

A handsome man, Marcos had married the former beauty queen Imelda Romualdez in 1954. Her glamour added to his popularity. Martial Law. Within weeks of his reelection, Marcos faced violent public protests against his rule by students and other citizens. Students demanded educational reforms; they even commandeered a fire truck and crashed it into the Presidential Palace in 1970. The Filipino Communist Party reemerged as a threat. Meanwhile, a Muslim separatist movement in the south urged succession. President Marcos responded to all of these threats by declaring martial law on September 21, 1972. He suspended habeas corpus, imposed a curfew and jailed opponents like Benigno "Ninoy" Aquino. This period of martial law lasted until January 1981. Marcos the Dictator. Under martial law, Ferdinand Marcos took extraordinary powers for himself. He used the country's military as a weapon against his political enemies, displaying a typically ruthless approach to opposition. Marcos also awarded a huge number of government posts to his and Imelda's relatives. Imelda herself was a member of Parliament (1978-84); Governor of Manila (1976-86); and Minister of Human Settlements (1978-86). Marcos called parliamentary elections on April 7, 1978. None of the members of jailed former Senator Benigno Aquino's LABAN party won their races. Election monitors cited widespread vote-buying by Marcos loyalists. Martial Law Lifted. In preparation for Pope John Paul II's visit, Marcos lifted martial law on January 17, 1981. Nonetheless, Marcos pushed through legislative and Constitutional reforms to ensure that he would retain all of his extended powers. It was purely a cosmetic change. 85

Presidential Election of 1981. For the first time in 12 years, the Philippines held a presidential election on June 16, 1981. Marcos ran against two opponents: Alejo Santos of the Nacionalista Party, and Bartolome Cabangbang of the Federal Party. LABAN and Unido both boycotted the election. In proper dictator fashion, Marcos received 88% of the vote. He took the opportunity in his inauguration ceremony to note that he would like the job of "Eternal President." Death of Aquino. Opposition leader Benigno Aquino was released in 1980 after nearly 8 years in prison. He went into exile in the United States. In August of 1983, Aquino returned to the Philippines. Upon arrival, he was hustled off the plane, and shot dead on the runway at the Manila Airport by a man in a military uniform. The government claimed that Rolando Galman was the assassin; Galman was immediately killed by airport security. Marcos was ill at the time, recovering from a kidney transplant. Imelda may have ordered Aquino's killing, which sparked massive protests. Marcos Falls. August 13, 1985 was the beginning of the end for Marcos. Fifty-six members of Parliament called for his impeachment for graft, corruption, and other high crimes. Marcos called a new election for 1986. His opponent was Corazon Aquino, the widow of Benigno. Marcos claimed a 1.6 million vote victory, but observers found a 800,000 win by Aquino. A "People Power" movement quickly developed, driving the Marcoses into exile in Hawaii, and affirming Aquino's election. The Marcoses had embezzled billions of dollars from the Philippines. Imelda famously left over 2,500 pairs of shoes in her closet when she fled Manila. 86

Ferdinand Marcos died of multiple organ failure in Honolulu on September 28, 1989. He left behind a reputation as one of the most corrupt and ruthless leaders in modern Asia. Advocacy Reformation of International and Domestic Policies (Political, Social, Economical, and Legal Systems) Renovation of Roads, Buildings, Public Works and other Infrastructures Fix the judiciary systems of the Philippines Diminish, prevent, and attack the problem of the government regarding corruption Make the Philippines rise to greatness once more This nation can be great again. This I have said over and over. It is my articles of faith, and Divine Providence has willed that you and I can now translate this faith into deeds. Economic Development and Good Governance

Contributions/Achievements First term (19651969). Marcos was famous for his anti-Japanese guerrilla activity during World War IIsomething that set him apart from his political opponents, many of whom had collaborated with the Japanese. Marcos won the presidency in 1965.

87

Infrastructure programs. In his first State of the Nation Address (SONA), Marcos revealed his plans for economic development and government reform. Marcos wanted the immediate construction of roads, bridges and public works, which included 16,000 kilometers of feeder roads, some 30,000 lineal meters of permanent bridges, a generator with an electric power capacity of one million kilowatts (1,000,000 kW), and water services to eight regions and 38 localities. He also urged the revitalization of the judiciary, the national defense posture and the fight against smuggling, criminality, and graft and corruption in the government. To accomplish his goals President Marcos mobilized the manpower and resources of the Armed Forces of the Philippines (AFP) for action to complement civilian agencies in such activities as infrastructure construction; economic planning and program execution; regional and industrial site planning and development; community development and others. The employment of technocrats in key positions and the mobilization of the AFP for civic actions resulted in the increasing functional integration of civilian and military elites.

88

Vietnam War. To the surprise of many, soon after becoming president, Marcos wanted the Philippines to become involved in the Vietnam War. He asked Congress to approve sending a combat engineer unit to South Vietnam. When the previous Philippine president, Macapagal, suggested in 19641965 to send troops it had been Marcos who had led the opposition against this plan on both legal and moral grounds. Despite opposition against the new plan, the Marcos government gained Congressional approval and Philippine troops were sent from the middle of 1966 as the Philippines Civic Action Group (PHILCAG). PHILCAG reached a strength of some 1,600 troops in 1968 and between 1966 and 1970 over 10,000 Filipino soldiers served in South Vietnam, mainly being involved in civilian infrastructure projects. Second term (19691981). In 1969, twelve candidates ran for president.Marcos was reelected for a second termthe first Filipino president to win a second term. [15] The election was marked by massive violence, vote-buying, and fraud on Marcos' part, [16]
[17]

and Marcos used $56 million from the Philippines' treasury to fund his campaign. His running mate, incumbent Vice President Fernando Lopez was also elected to a

[18]

third full term as Vice President of the Philippines. Prime Minister. In 1978, the position returned when Ferdinand Marcos became Prime Minister. Based onArticle 9 of the 1973 constitution, it had broad executive powers, that would be typical of modern prime ministers in other countries. The position was the official head of government, and the commander-in-chief of the armed forces. All of the previous powers of the President from the 1935 Constitution were transferred to the newly restored office of Prime Minister. The Prime Minister also acted as head of the National Economic Development Authority. Upon his reelection to President, Marcos was succeeded as Prime Minister by Cesar Virata in 1981. Third term (19811986, On June 16, 1981, six months after the lifting of martial law, the first presidential election in twelve years was held. As to be expected, 89

President Marcos ran and won a massive victory over the other candidates. The major opposition parties, the United Nationalists Democratic Organizations (UNIDO), a coalition of opposition parties and LABAN, boycotted the elections. Economy. To help finance a number of economic development projects, the Marcos government borrowed large amounts of money from international lenders. The Philippines' external debt rose from $360 million (US) in 1962 to $28.3 billion in 1986, making the Philippines one of the most indebted countries in Asia.[46] A sizable amount of this money went to Marcos family and friends in the form of behest loans. These loans were assumed by the government and still being serviced by taxpayers. Today, more than half of the country's revenues are outlaid for the payments on the interests of loans alone. 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 1980s was theKilusang Kabuhayan at Kaunlaran (Movement for Livelihood and Progress). This program was started in September 1981. Its aim was to promote the economic development of thebarangays by encouraging its 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 or seven percent from 1970 to 1980. The Philippine economy suffered a great decline after the Aquino assassination in August 1983. The political troubles hindered the entry of foreign investments, and foreign banks stopped granting loans to the Philippine government.[citation
needed]

In an

attempt to launch a national economic recovery program, Marcos negotiated with foreign creditors including the International Bank for Reconstruction and Development, World Bank, and theInternational Monetary Fund (IMF), for a restructuring of the country's foreign debts to give the Philippines more time to pay the loans. Marcos ordered a cut 90

in government expenditures and used a portion of the savings to finance the Sariling Sikap (Self-Reliance), a livelihood program he established in 1984. However, the economy experienced negative economic growth from the beginning of 1984 and continued to decline despite the government's recovery efforts. The recovery program's failure was caused by civil unrest, rampant graft and corruption within the government, and Marcos's lack of credibility. Marcos himself diverted large sums of government money to his party's campaign funds. The unemployment rate ballooned from 6.30% in 1972 to 27.65% in 1985. Between 1972 and 1980, the average monthly income of wage workers had fallen by 20%. By 1981, the wealthiest 10% of the population was receiving twice as much income as the bottom 60%. With help from the Rockefeller and Ford Foundations, Marcos brought the "Green Revolution" (industrialized, chemical agriculture) to the Philippines. These reforms resulted in high profits for transnational corporations, but were generally harmful to small, peasant farmers who were often pushed into poverty. After declaring martial law in 1972, Marcos promised to implement agrarian reforms. However, the land reforms "served largely to undermine Marcos' landholder opponents, not to lessen inequality in the countryside", and "encouraged conversion to cash tenancy and greater reliance on farm workers". From 1972 to 1980, agricultural production fell by 30%. Under Marcos, exports of timber products were among the nation's top exports. Little attention was paid to environmental impacts of deforestation. By the early 1980s, the industry collapsed because most of the Philippines' accessible forests had been depleted.

Crises 91

The primary problems during the Marcos Administration were: Unemployment Destabilized Economy Rampant Corruption in the Government and abuse of authority and power Increased crime rates (before martial law) due to poverty Marcos Ill-gotten wealth Declaration of Martial Law Assassination of Benigno Aquino

92

Student uprising, In 1970, students in Manila mobilized enormous numbers of people to attend protests against U.S. imperialism and the "rise of fascism" under Marcos. The protests later became known as the First Quarter Storm. Martial law and the New Society. On a privilege speech of Benigno Aquino, Jr., he warned the public of the possible establishment of a garrison state by President Marcos. And these forewarnings proved to be correct as events started to unravel the grim Marcos master plan. Marcos declared martial law on September 22, 1972, by virtue of Proclamation No. 1081 which he signed on September 21, 1972, extending his rule beyond the constitutional two-term limit. He justified this by exaggerating threats of Communist and Muslim insurgencies. He would later tell historians that he signed Proclamation No. 1081 as early as September 17.[4] Ruling by decree, he 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, senators Benigno Aquino, Jr., Jovito

Salonga and Jose Diokno. Marcos claimed that martial law was the prelude to creating his Bagong Lipunan, a "New Society" based on new social and political values. A constitutional convention, which had been called for in 1970 to replace the Commonwealth era 1935 Constitution, continued the work of framing a new constitution after the declaration of martial law. The new constitution went into effect in early 1973, changing the form of government from presidential to parliamentary and allowing Marcos to stay in power beyond 1973. After putting in force amendments to the constitution, legislative action, and securing his sweeping powers and with the Batasan under his control, President Marcos lifted martial law on January 17, 1981. However, the suspension of the privilege of the writ of habeas corpus continued in 93 the autonomous regions of Western

Mindanao and Central Mindanao. The opposition dubbed the lifting of martial law as a mere "face lifting" as a precondition to the visit of Pope John Paul II. Marcos had a vision of a Bagong Lipunan (New Society) similar

to Indonesian presidentSuharto's "New Order administration". He used the years of martial law to implement this vision. According to Marcos' book, "Notes on the New Society," 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 selfrealization. Marcos confiscated businesses owned by the oligarchy. More often than not, they were taken over by Marcos' family members and close personal friends, who used them as fronts to launder proceeds from institutionalized graft and corruption in the different national governmental agencies as "crony capitalism," Marcos' friends using them for personal benefit. With genuinely nationalistic motives, crony capitalism was intended to redistribute monopolies traditionally owned by Chinese and Mestizo oligarchs to Filipino businessmen though in practice, it led to graft and corruption via bribery, racketeering, and embezzlement. Marcos also silenced the free press, making the state press the only legal one. He also seized privately owned lands and distributed them to farmers. By waging an ideological war against the oligarchy, Marcos gained the support of the masses though he was to create a new one in its place. Marcos, now free from day-to-day governance which was left mostly to Enrile using his power to settle scores against old rivals, such as the Lopezes, who were always opposed to the Marcos administration. Leading opponents such as Senators Benigno Aquino, Jr., Jose Diokno, Jovito Salonga and many others were imprisoned for months or years. This practice considerably alienated the support of the old social and economic elite and the media, who criticized the Marcos administration endlessly. 94

Between 1972 and 1976, Marcos increased the size of the Philippine military from 65,000 to 270,000 personnel. Military officers were placed on the boards of a variety of media corporations, public utilities, development projects, and other private corporations. At the same time, Marcos made efforts to foster the growth of a domestic weapons manufacturing industry and heavily increased military spending.[28] The GNP of the country stood at $11.5 billion by 1980, which represented a 6.6% average annual growth rate. The 1980 GNP is four times greater than the GNP in 1972. Rice production increased from 5.1 million metric tons in 1972 to 7.25 million metric tons in 1980 due to Masagana 99. From the declaration of martial law in 1972, until 1983, the U.S. government provided $2.5 billion in bilateral military and economic aid to the Marcos regime, and about $5.5 billion through multilateral institutions such as the World Bank.[30] In a 1979 U.S. Senate report, it was stated that U.S. officials were aware, as early as 1973, that Philippine government agents were in the United States to harass Filipino dissidents. In June 1981, two anti-Marcos labor activists were assassinated outside of a union hall in Seattle. On at least one occasion, CIA agents blocked FBI investigations of Philippine agents. The Marcos regime instituted a mandatory youth organization, known as the Kabataang Barangay, which was led by Marcos' eldest daughter Imee. Presidential Decree 684, enacted in April 1975, required that all youths aged 15 to 18 be shipped off to remote rural indoctrination camps, where they underwent a ritualistic program designed to instill loyalty to the First Couple. Defense Minister Juan Ponce Enrile, Chief of Staff of the Philippine Constabulary Fidel Ramos, and Chief of Staff of the Armed Forces of the Philippines Fabian Ver were the chief administrators of martial law from 1972 to 1981, and the three remained President Marcos' closest advisers until he was ousted in 1986. 95

Enrile and Ramos would later abandon Marcos' 'sinking ship' and seek protection behind the 1986 People Power Revolution. The Catholic hierarchy and Manila's middle class were crucial to the success of the massive crusade Aquino's assassination. In 1983, opposition leader Benigno Aquino, Jr. was assassinated by his Philippine military escort at the Manila International Airport upon his return to the Philippines after three years in exile. Popular speculations pointed to three suspects; first was Marcos himself through his trusted military chief Fabian Ver; the second theory pointed to his wife Imelda who had her own burning ambition now that her ailing husband seemed to be getting weaker and the third was that crony Danding Cojuangco planned the assassination because of his political ambitions. There is no basis either in motive or logic to support the allegation that either Ninoy or his ultra-pious wife Cory planned her husband's assassination. Ninoy's brutal death while under the custody of military security combined with Marcos' dictatorial governance and plundering of public coffers ultimately lead to an irreversible spiral that saw widespread protests and his eventual ignominious eviction from Malacanang. Impeachment attempt. On August 13, 1985, fifty-six Assemblymen signed a resolution calling for the impeachment of President Marcos for alleged diversion of U.S. aid for personal use, citing a July 1985 San Jose Mercury News expos of the Marcoses multi-million dollar investment and property holdings in the United States. The properties allegedly amassed by the First Family were the Crown Building, Lindenmere Estate, and a number of residential apartments (in New Jersey and New York), a shopping center in New York, mansions (in London, Rome and Honolulu), the Helen Knudsen Estate in Hawaii and three condominiums in San Francisco, California. The Assemblymen also included in the complaint the misuse and misapplication of funds for the construction of the Film Center, where X-rated and pornographic films are exhibited, contrary to public morals and Filipino customs and traditions. 96

Downfall. During these years, Marcos's regime was marred by rampant corruption and political mismanagement by his relatives and cronies, which culminated with the assassination ofBenigno Aquino. Critics considered Marcos the

quintessential kleptocrat, having looted billions of dollars from the Filipino treasury. The large personality cult in the Philippines surrounding Marcos also led to disdain. During his third term, Marcos's health deteriorated rapidly due to kidney ailments, often described as lupus erythematosus. He was absent for weeks at a time for treatment, with no one to assume command. Marcos's regime was sensitive to publicity of his condition; a palace physician who alleged that during one of these periods Marcos had undergone a kidney transplant was shortly afterward found murdered. Many people questioned whether he still had capacity to govern, due to his grave illness and the ballooning political unrest. With Marcos ailing, his equally powerful wife, Imelda, emerged as the government's main public figure. Marcos dismissed speculations of his ailing health as he used to be an avid golfer and fitness buff who liked showing off his physique. In light of these growing problems, the assassination of Aquino in 1983 would later prove to be the catalyst that led to his overthrow. Many Filipinos came to believe that Marcos, a shrewd political tactician, had no hand in the murder of Aquino but that he was involved in cover-up measures. However, the opposition blamed Marcos directly for the assassination while others blamed the military and his wife, Imelda. The 1985 acquittals of Ver as well as other high-ranking military officers for the crime were widely seen as a miscarriage of justice. By 1984, his close personal ally, U.S. President Ronald Reagan, started distancing himself from the Marcos regime that he and previous American presidents had strongly supported even after Marcos declared martial law. The United States, which had provided hundreds of millions of dollars in aid, was crucial in buttressing 97

Marcos's rule over the years.[41] During the Carter administration the relation with the U.S. soured somewhat when PresidentJimmy Carter targeted the Philippines in his human rights campaign. In the face of escalating public discontent and under pressure from foreign allies, Marcos called a "Snap election" in 1986, with more than a year left in his term. He selected Arturo Tolentino as his running mate.[citation needed] The opposition to Marcos united behind Aquino's widow, Corazon, and her running mate, Salvador Laurel.[42][43] The "People Power movement" drove Marcos into exile and installed Corazon Aquino as the new president.[44] At the height of the revolution, Enrile revealed that his ambush was faked in order for Marcos to have a pretext for imposing martial law. However, Marcos maintained that he was the duly elected and proclaimed president of the Philippines for a fourth term. The Philippine government today is still paying interest in public debts incurred during Marcos' administration. It was reported that, when Marcos fled, U.S. Customs agents discovered 24 suitcases of gold bricks and diamond jewelry hidden in diaper bags and in addition, certificates for gold bullion valued in the billions of dollars were allegedly among the personal properties he, his family, his cronies and business partners surreptitiously took with them when the Reagan administration provided them safe passage to Hawaii. When the presidential mansion was seized, it was discovered that Imelda Marcos had over 2700 pairs of shoes in her closet.

Chapter 11 Corazon C. Aquino [1986-1992] Biography 98

Born on January 25, 1933 in Paniqui, Tarlac, Maria Corazon "Cory" Sumulong Cojuangco was the 6th child of Jose Cojuangco Sr. and Demetria Sumulong. Her siblings were Pedro, Josephine, Pacita, Teresita and Jose Jr. Both Cory's parents came from

prominent clans. Her father, Jose, was a prominent Tarlac businessman and

politician. Melecio Cojuangco, her great grandfather, served as a memb er of the historic Malolos Congress. Meanwhile, her mother, Demetria, belonged to the Sumulongs of Rizal who were politically influential. Juan Sumulong, a member of the clan, challenged then Commonwealth President Manuel L. Quezon for president in 1941. As a young girl, Cory spent her elementary days at St. Scholastica's College in Manila, where she graduated on top of her class and batch as valedictorian. For high school, she transferred to Assumption Convent for her first year of high school. Afterwards, she went to the United States to finish her secondary education. There she continued her college education. She went to the College of Mount Saint Vincent in New York City, where she majored in Mathematics and French. During her stay in the United States, Cory volunteered for the campaign then of U.S. Republican presidential S.

candidate Thomas

Dewey against

Democrat

U.S.

President Harry

Truman during the 1948 U.S. Presidential Election.

99

Throughout her entire life until her very last days, Cory was known to be a very devout and conservative Roman Catholic Christian. Besides English, Tagalog, and Kapampangan, Cory was also fluent in French. After graduating from college, she returned to the Philippines to study law at the Far Eastern University (owned by the in-laws of her elder sister, Josephine Reyes) for one year. She married Sen.Benigno S. Aquino, Jr., son of the late Speaker Benigno S. Aquino, Sr. and a grandson of General Servillano Aquino. The couple had five children, four girls and one boy: Maria Elena (born August 18, 1955), Aurora Corazon (born December 27, 1957), Benigno Simeon III (born February 8, 1960), Victoria Elisa (born October 27, 1961) and Kristina Bernadette (born February 14, 1971). Corazon Aquino had difficulty initially adjusting to provincial life when she and her husband moved to Concepcion, Tarlac in 1955. Aquino found herself bored in Concepcion, and welcomed the opportunity to have dinner with her husband inside the American military facility at nearby Clark Field. A member of the Liberal Party, Aquino's husband Ninoy rose to become the youngest governor in the country and eventually became the youngest senator ever elected in the Senate of the Philippines in 1967. During her husband's political career, Aquino remained a housewife who helped raise their children and played hostess to her spouse's political allies who would frequent their Quezon City home. She would decline to join her husband on stage during campaign rallies, preferring instead to stand at the back of the audience and listen to him. Unknown to many, she voluntarily sold some of her prized inheritance to fund the candidacy of her husband. She led a modest existence in a bungalow in suburban Quezon City. Ninoy Aquino soon emerged as a leading critic of the government of President Ferdinand Marcos. He was then touted as a strong candidate for president to succeed Marcos in the 1973 elections. However, Marcos, being barred by the 100

Constitution to seek a third term, declared martial law on September 21, 1972, and later abolished the existing 1935 Constitution, thereby allowing him to remain in office. As a consequence, her husband was among those to be first arrested at the onset of martial law, later being sentenced to death. During his incarceration, Ninoy sought strength from prayer, attending daily mass and saying the rosary three times a day. As a measure of sacrifice and solidarity with her husband and all other political prisoners, she enjoined her children from attending parties and she also stopped going to the beauty salon or buying new clothes until a priest advised her and her children to instead live as normal lives as possible. In 1978, despite her initial opposition, Ninoy decided to run in the 1978 Batasang Pambansa elections. A reluctant speaker, Corazon Aquino campaigned in behalf of her husband, and for the first time in her life delivered a political speech. In 1980, upon the intervention of U.S. President Jimmy Carter, Marcos allowed Senator Aquino and his family to leave for exile in the United States, where he sought medical treatment. [4] The family settled in Boston, and Aquino would later call the next three years as the happiest days of her marriage and family life. On August 21, 1983, however, Ninoy ended his stay in the United States and returned without his family to the Philippines, only to be assassinated on a staircase leading to the tarmac of the Manila International Airport, which was later renamed in his honor. Corazon Aquino returned to the Philippines a few days later and led her husband's funeral procession, in which more than two million people joined the procession. After his assassination at Manila Airport in 1983, Corazon went to the Philippines for her husbands funeral and stayed to work in the legislative election campaign. The opposition won one-third of the seats in 1984. Marcos called presidential elections for February 1986, and she became the opposition candidate for president. Marcos, declaring himself victor in the February 7 election, was inaugurated on February 25. An 101

army revolt under Fidel Ramos and others, and demonstrations on her behalf, led to Aquinos inauguration on the same day, in the so-called EDSA Revolution. Marcos accepted asylum in the United States, while Aquino formed a provisional government. She implemented a new constitution ratified by a landslide popular vote, and held legislative elections in 1987, but opposition within the military, a continuing Communist insurgency, and severe economic problems plagued her presidency. She declined to run for a second term in 1992, yielding the presidency to her favoured candidate Ramos. In 1995 she ran a Never Again campaign during national elections to prevent the election of Marcoss son, Ferdinand Marcos, Jr., and the former army colonel and coup plotter Gregorio Honasan. In 1996 she campaigned to prevent President Ramos from changing the constitution to permit a second presidential term. Aquino became President and won the enactment of a new constitution in February 1987. Although she won a vote of confidence in legislative elections that May, military unrest, coupled with popular discontent at the slow pace of economic reform, continued to threaten her government. US Air Force jets assisted Philippine government forces in suppressing a coup attempt in December 1989. In 1991 damage from the eruption of Mount Pinatubo in central Luzon led the United States to abandon nearby Clark Air Base; the Philippine senate then refused to renew the lease on the lone remaining US base, Subic Bay Naval Station, which the United States closed in November 1992. Aquino declined to run in the May 1992 presidential election; instead, she endorsed the eventual winner, her former Defence Secretary, Fidel Valdez Ramos. Corazon Aquino became the first woman president of the Philippines in 1986 when she defeated Ferdinand E. Marcos. After she became president, she abolished the National Assembly and replaced the constitution with a new one that was adopted by popular vote in 1987. She had been married to Benigno Aquino, who was assassinated in 1983. 102

Advocacy After stepping down from the presidency, Cory Aquino remained active in helping nurture the fragile Philippine democracy that was restored during her term. Largely through the Benigno S. Aquino, Jr. Foundation (BSAF), she supported programs that promoted people empowerment, peace and human rights. In the final years of her life, she devoted much time and energy to harnessing private sector support for the microfinance sector. Her vision was to strengthen the infrastructure that would transform micro-enterprise development into a potent vehicle for raising people power to the next level, slowly creating a broad middle class that would fortify the foundations of Philippine democracy. BENIGNO S. AQUINO, JR. FOUNDATION. BSAF was established to perpetuate the memory, ideals and values of the late Senator Benigno S. Aquino, Jr.. The Foundation was led by his widow, former President Corazon C. Aquino, a wellrespected, globally-recognized and inspiring leader. When President Corys term ended, BSAF became her primary vehicle for continuing to engage non-governmental organizations (NGOs) and peoples

organizations (POs) that played a key role in empowering communities and reviving democratic institutions alongside her administration. With the help of donor groups, BSAF, through the Institute for People Power and Development (IPPD) supported programs to strengthen cooperatives, human rights education among law enforcers, and microfinance institutions. The Foundation also used part of its endowment fund to grant scholarships to poor but deserving students, to sponsor occasional symposia on democratic themes, and to give recognition to exemplary individuals and groups, which were dubbed as People Power People. Legally registered as a Philippine nonprofit organization with the Securities and Exchange Commission and certified by the Philippine Council for NGO Certification 103

(PCNC), BSAF was renamed the Ninoy and Cory Aquino Foundation (NCAF), a few months after Mrs. Aquino passed on. Today, NCAF seeks to build on the legacy of Ninoy and Cory by supporting activities that embody the spirit of People Power as a strong and positive force for social change in a robust democracy. PinoyMe (Filipino Micro-Enterprise) is a private sector, multi-stakeholder social consortium that aims to contribute to reducing poverty in the country by providing 5 million poor people with financial and non-financial services and mobilizing P5 billion in new capital for microfinance in 5 years. It will achieve these goals through capacity building, resource mobilization, business development services, and knowledge management. Principles of Cooperation Inclusiveness The program will endeavor to involve and work with all groups and individuals who are willing to accept the goals, principles and strategies of PinoyMe. Subsidiarity PinoyMe upholds the autonomy and initiative of all who will participate in its program and will at all times ensure that it will avoid duplicating, coopting or contradicting the efforts of those who participate in it. Commitment to the Goal All who will participate in the PinoyMe shall commit to achieving its goals. Market-based Interventions

104

In order to ensure the sustainability of its efforts, the program will minimize subsidies and will at all times seek to create a dynamic market for its services beyond the life of the project. ASA FOUNDATION. ASA Philippines Foundation is a non-stock, non-profit corporation registered under the Securities and Exchange Commission on July 9, 2004. It was founded by Ambassador Howard Dee and Mr. Kamrul Tarafder, with the financial assistance of Assisi Development Foundation and the Benigno S. Aquino Jr. Foundation, in order to assist the enterprising poor through microfinance. ASA Foundation is devoted to the poor for them to fight against growing poverty with the most cost-effective sustainable microfinance services and with the highest portfolio quality and management efficiency in order to eventually grow as the bestmanaged and lowest-charging microfinance service provider in the Philippine market. ASA Philippines Foundation has made its commitment to three sectors. The first is a commitment to the marginalized poor sector for which the foundation exists. The second commitment is to the staffs who are dedicated to the foundations mission objectives. The third commitment is to the incorporators and patrons to make the

program the best and most self-sustainable microfinance institution in the country. And therefore our missions are: To deliver the most cost-effective, efficient and client-responsive microfinance service to the entrepreneurial poor at the cheapest rate. To create a best place to work, where every staff member has the chance to live in dignity, develop a career path within the foundation and have the satisfaction of changing the quality of life of poor people and of themselves. To be self-sustainable and be the best managed microfinance institution in the Philippines. 105

People Power People is a movement that seeks to honor Filipinos who have served their countrymen and women well - working quietly, willingly, neither seeking nor getting publicity, but making a real difference in their communities. Launched in 2003 on the occasion of Ninoy's 20th death anniversary, this movement recognizes People Power People groups in order to give a view of what is happening in the country, what is being done by many Filipinos from all walks of life who have decided that all is not lost and that the Filipino is worth sacrificing their time, talent, and treasure for. Contributions/Achievements The triumph of the peaceful People Power Revolution and the ascension of Corazon Aquino into power signaled the end of authoritarian rule in the Philippines and the dawning of a new era for Filipinos. The relatively peaceful manner by which Aquino came into power drew international acclaim and admiration not only for her but for the Filipino people, as well. During the first months of Aquino's presidency, the country experienced radical changes and sweeping democratic reforms. One of Aquino's first moves was the creation of the Presidential Commission on Good Government (PCGG), which was tasked to go after the Marcos ill-gotten wealth. Aquino, being a revolutionary president by virtue of people power, abolished the 1973 "Marcos Constitution" and dissolved the Marcos allies-dominated Batasang Pambansa, despite the advice of her vice-president and only prime minister Salvador Laurel. She also immediately created a Constitutional Commission, which she directed for the drafting of a new constitution for the nation. Constitutional and political reforms. Immediately after assuming the presidency, President Aquino issued Proclamation No. 3, which established a revolutionary government. She abolished the 1973 Constitution that was in force during martial law, and instead promulgated the provisional 1986 Freedom Constitution, 106

pending the ratification of a new Constitution by the people. This allowed her to exercise both executive and legislative powers until the ratification of the new Philippine Constitution and the establishment of a new Congress in 1987. Aquino promulgated two landmark legal codes, namely, the Family Code of 1987, which reformed the civil law on family relations, and the Administrative Code of 1987, which reorganized the structure of the executive branch of government. Another landmark law that was enacted during her tenure was the 1991 Local Government Code, which devolved national government powers to local government units (LGUs). The new Code enhanced the power of LGUs to enact local taxation measures and assured them of a share in the national revenue. Aquino closed down the Marcos-dominated Batasang Pambansa to prevent the new Marcos loyalist opposition from undermining her democratic reforms and reorganized the membership of the Supreme Court to restore its independence. In May 1986, the reorganized Supreme Court declared the Aquino government as not merely a de facto government but in fact and law a de jure government, whose legitimacy had been affirmed by the community of nations. [10] This Supreme Court decision affirmed the status of Aquino as the rightful leader of the Philippines. To fasttrack the restoration of a full constitutional government and the writing of a new charter, she appointed 48 members of the 1986 Constitutional Commission ("Con-Com"), led by retired activist Supreme Court Associate Justice Cecilia Muoz-Palma. The Con-Com completed its final draft in October 1986.[11] On February 2, 1987, the new Constitution of the Philippines, which put strong emphasis on civil liberties, human rights and social justice, was overwhelmingly approved by the Filipino people. The ratification of the new Constitution was followed by the election of senators and congress that same year and the holding of local elections in 1988. Economic management. As soon as she assumed the presidency of the Philippines, Aquino moved quickly to tackle the issue of the US$26 billion foreign debt 107

incurred by her predecessor, which has badly tarnished the international credit standing and economic reputation of the country. After weighing all possible options such as choosing not to pay, Aquino eventually chose to honor all the debts that were previously incurred in order to clear the country's image. Her decision proved to be unpopular but Aquino defended that it was the most practical move. It was crucial for the country at that time to regain the investors' confidence in the Philippine economy. Since 1986, the Aquino administration has paid off $4 billion of the country's outstanding debts to regain good international credit ratings and attract the attention of future markets. Nevertheless, the administration borrowed an additional $9 billion, increasing the national debt by $5 billion within six years time since the ouster of former President Ferdinand Marcos in 1986. Further, recognizing how crony capitalism zapped out the economy due to collusion between government and big business and adhering to the Catholic social principle of subsidiarity, President Aquino set out on a course of market liberalization agenda. the Aquino administration also sought to bring back fiscal discipline in order as it aimed to trim down the government's budget deficit that ballooned during Marcos' term through privatization of bad government assets and deregulation of many vital industries. It was also during Aquino's time that vital economic laws such as the Built-OperateTransfer Law, Foreign Investments Act and the Consumer Protection and Welfare Act were enacted. The economy posted a positive growth of 3.4% during her first year in office. But in the aftermath of the 1989 coup attempt by the rightistReform the Armed Forces Movement, the Philippine economy remained stagnant. In her final year in office, inflation was raging at 17%, and unemployment was slightly over 10%, higher than the Marcos years. Overall, the economy under Aquino had an average growth of 3.8% from 1986 to 1992. 108

Soon after taking office, Cory declared that the presence of US Military Forces in the Philippines was an affront to national sovereignty. She ordered the United States military to vacate U.S. Naval Base Subic Bay and Clark Air Base. The US objected, pointing that they had leased the property and the leases were still in effect. Also, thousands of Filipinos worked at these military facilities and they would lose their jobs and the Filipino economy would suffer if the US Military moved out. The US stated that the facilities at Subic Bay were unequaled anywhere in Southeast Asia and a US pullout could make all of that region of the world vulnerable to an incursion by the Soviet Union or by a resurgent Japan. She refused to back down and insisted that the USA get out. The matter was still being debated when Mount Pinatubo erupted in June 1991, covering the entire area with volcanic ash. The destruction to the bases was so severe that the US decided that it would best to pull out after all, so the bases were closed and the United States departed. Agrarian reform. President Aquino envisioned agrarian and land reform as the centerpiece of her administration's social legislative agenda. However, her family background and social class as a privileged daughter of a wealthy and landed clan became a lightning rod of criticisms against her land reform agenda. On February 22, 1987, three weeks after the resounding ratification of the 1987 Constitution, agrarian workers and farmers marched to the historic Mendiola Street near the Malacaan Palace to demand genuine land reform from Aquino's administration. However, the march turned violent when Marine forces fired at farmers who tried to go beyond the designated demarcation line set by the police. As a result, 12 farmers were killed and 19 were injured in this incident now known as the Mendiola Massacre. This incident led some prominent members of the Aquino Cabinet to resign their government posts. In response to calls for agrarian reform, President Aquino issued Presidential Proclamation 131 and Executive Order 229 on July 22, 1987, which outlined her land 109

reform program, which included sugar lands. In 1988, with the backing of Aquino, the new Congress of the Philippines passed Republic Act No. 6657, more popularly known as the Comprehensive Agrarian Reform Law." The law paved the way for the redistribution of agricultural lands to tenant-farmers from landowners, who were paid in exchange by the government through just compensation but were also allowed to retain not more than five hectares of land. However, corporate landowners were also allowed under the law to voluntarily divest a proportion of their capital stock, equity or participation in favor of their workers or other qualified beneficiaries, in lieu of turning over their land to the government for redistribution. [16] Despite the flaws in the law, the Supreme Court upheld its constitutionality in 1989, declaring that the implementation of the comprehensive agrarian reform program (CARP), provided by the said law) was a revolutionary kind of expropriation. Despite the implementation of CARP, Aquino was not spared from the controversies that eventually centered on Hacienda Luisita, a 6,453-hectare estate located in the Province of Tarlac, which she, together with her siblings inherited from her father Jose Cojuangco (Don Pepe). Critics argued that Aquino bowed to pressure from relatives by allowing stock redistribution under Executive Order 229. Instead of land distribution, Hacienda Luisita reorganized itself into a corporation and distributed stock. As such, ownership of agricultural portions of the hacienda were transferred to the corporation, which in turn, gave its shares of stocks to farmers. The arrangement remained in force until 2006, when the Department of Agrarian Reform revoked the stock distribution scheme adopted in Hacienda Luisita, and ordered instead the redistribution of a large portion of the property to the tenant-farmers. The Department stepped into the controversy when in 2004, violence erupted over the retrenchment of workers in the Hacienda, eventually leaving seven people dead. 110

The laws and programs of Aquino Administration were: a.) restoration of democracy -abolished the legislature -declared a revolutionary government -wrote a new constitution (1987 Constitution) b.) Land Reform c.) Free secondary schooling d.) 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 Muoz Palma, to be members of the Concom. e.) 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. 1appointing Cabinet ministers and task forces to help her run the government. g.) 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. h.) executive order no.88 111

Cory issues Executive Order 48: Creating an Ad Hoc Special Committee to supervise the liquidation of the affairs of the Constitutional Commission of 1986, preservation of its records, and to undertake its constitutional education campaign. i.) 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. i.) 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 signaled 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. e.) 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). 112

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. Crises The primary problems during the Aquino government were: Displeased citizens Power Shortage/Rampant Brownouts

Natural disasters and calamities. During her last two years in office, President Aquino's administration faced series of natural disasters and calamities. Among these were the 1990 Luzon earthquake, which left around 1,600 people dead and the 1991 volcanic eruption of what was then thought to be a dormant Mount Pinatubo, which was 113

the second largest terrestrial eruption of the 20th century,[19] killing around 300 people and causing widespread long-term devastation of agricultural lands in Central Luzon. The worst loss of life occurred when Tropical Storm Thelma (also known as Typhoon Uring) caused massive flooding in Ormoc City in November 1991, leaving around 6,000 dead in what was considered to be the deadliest typhoon in Philippine history. It was also during Aquino's term that the MV Doa Paz sank, which is the World's worst peacetime maritime disaster of the 20th century. The disaster occurred in December 1987 which killed more than 1,700 people. During Aquino's presidency, electric blackouts became common in Manila. The capital experienced blackouts of seven to 12 hours, bringing numerous businesses to a halt. By the departure of Aquino in June 1992, businesses in Manila and nearby provinces have lost nearly $800 million since March 1992. The Aquino administration knew for years that country's power plants were failing, but they did not act to solve the problem. It was only during the time of her successor, Fidel Ramos, that the government decisively solved the severe power outages that were common during her tenure. Aquino was not spared from the controversies that eventually centered on Hacienda Luisita, a 6,453-hectare estate located in the Province of Tarlac, which she inherited from her family. She was scored for allowing Hacienda Luisita, which was now owned by the Tarlac Development Corporation, to opt for stock distribution, instead of land redistribution. She also has an issue concerning the farmers of Mendiola being massacred.

114

Chapter 12 Fidel V. Ramos [1992-1998] Biography Fidel Ramos was born on March 18, 1928 in Lingayen, Pangasinan. His father, Narciso Ramos (19001986), was a lawyer, journalist and 5-term legislator of the House of Representatives, who eventually rose to the position of Secretary of Foreign Affairs. As such, Narciso Ramos was the Philippine signatory to the ASEAN declaration forged in Bangkok in 1967 and was one of the founding fathers of the Liberal Party. His mother, Angela Valdez-Ramos (19051977), was an educator, woman suffragette and daughter of the respected Valdez clan of Batac, Ilocos Norte making him a second degree cousin to Ferdinand Marcos. 115

Ramos received secondary education at the Centro Escolar University in Manila. Afterwards he went to America and he graduated from the United States Military Academy with Bachelor of Science in University of Illinois, with masters degree in civil engineering. He also holds a master's degree in National Security Administration from the National Defense College of the Philippines and a Master's degree in Business Administration (MBA) from the Ateneo de Manila University. He married to Amelita Martinez, on October 21, 1954. The couple had five daughters named Angelita Ramos-Jones, Josephine Ramos-Samartino (19572011), Carolina Ramos-Sembrano, Cristina Ramos-Jalasco and Gloria Ramos. Ramos went to the United States Military Academy at West Point, and he graduated in 1950. Ramos, along with the Philippines' 20th Battalion Combat Team and his fellow West Point graduates of the 1950s, fought in the Korean War. Ramos was one of the heroes of the Battle of Hill Eerie,[3] where he led his platoon to sabotage the enemy in Hill Eerie. He was also present in the Vietnam War as a non-combat civil military engineer and commanding officer of the Philippine Civil Action Group (PHILCAG). It is during this assignment where he forged his lifelong friendship with his junior officer Maj. Jose T. Almonte, who went on to become his National Security Advisor throughout during his administration from 1992 to 1998. Ramos has received several military awards including the Philippine Legion of Honor, the Distinguished Conduct Star, Philippine Military Merit Medal, the United States Legion of Merit, the French Legion of Honor and the U.S. Military Academy Distinguished Graduate Award. Headed the Philippine Constabulary and Integrated National Police on 1972 when then President Ferdinand Marcos, his cousin, who was elected on 1965 imposed martial law to combat communism and to establish and preserve peace in the country, Ramos, Philippine Constabulary chief and the martial law implementor, was responsible 116

for the arrest of political personalities, communists, media and activists etc. However, Ramos as PC-INP chief initiated measures to ensure that the rights of the political detainees were protected and respected. He also build the fighting capabilities of the PC-INP. Nine years later, martial law would be lifted on 1981 but Ramos' second cousin still retains strong absolute powers in governing the Philippines. Due to his accomplishments, Ramos became one of the candidates to become the new chief of staff of the Armed Forces of the Philippines on 1981, to replace the retiring General Romeo Espino. However, Marcos instead, opted and appointed his trusted military officer and former driver, General Fabian Ver, a UP graduate and not a West Pointer, into the top military post. Instead, Ramos was named to be the vice-chief of staff of the AFP on 1982, thus he became the military's second most powerful official after Ver. When Ver was implicated in the assassination of Former Senator Benigno Aquino, Jr. who is also known as Ninoy on 1983, Ramos became the acting AFP chief of staff for a short time only because on 1985, Ver was reinstated after he was acquitted by the court on the charges against him with regards to the assassination of the Marcos regime's chief political enemy and renowned opposition leader. On February 22, 1986, then Defense Minister Juan Ponce Enrile protested the alleged fraud committed by Marcos in the country's snap presidential elections and therefore, withdrew his support from him and staged a non-violent People Power Revolution to overthrow him. General Ramos followed later. The duo also declared their support to Corazon Aquino, the wife of the late Ninoy and Marcos' main election rival. On February 25, the revolution reached its peak and conclusion when Marcos, along with his family, friends and some supporters were taken by the US government and forced them into exile in the state of Hawaii on the United States, thus ending the 20117

year Marcos military dictatorship and when Aquino took her oath as the new but first woman president of the Philippines. When belittled by the press regarding his combat record, Ramos responded with trademark sarcasm (July 31, 1987): I fought the communists as part of the battalion combat teams, I went up the ladder. Battalion staff officer. Company commander. Task Force commander. Special Forces group commander. Brigade commander. All in different periods in our country. Huk campaign. Korean War campaign. The Vietnam War, and I was the head of the advance party of the PHILCAG (Philippine Civil Action Group to Vietnam) that went to a tiny province at the Cambodian border the so-called Alligator Jaw War Zone Z where even Max Soliven said The Viet-Cong will eat us up. Of course, we were physically there as non-combat troops. But you try to be a non-combat troop in a combat area that is the toughest kind of assignment. Korea as a platoon leader. Recon leader. What is the job of a recon leader? To recon the front line no mans land. And what did we do? I had to assault a fortified position of the Chinese communists and wiped them out. And what is this Special Forces group that we commanded in the Army '62'65? That was the only remaining combat unit in the Philippine Army. The rest were training in a division set-up. We were in Luzon. We were in Sulu. And then, during the previous regime, Marawi incident. Who was sent there? Ramos. We defended the camp, being besieged by 400 rebels. So next time, look at the mans record, don't just write and write. You said, no combat experience, no combat experience. Look around you who comes from the platoon, who rose to battalion staff, company commander, group commander, which is like a battalion, brigade commander, here and abroad. Abroad, I never had an abroad assignment that was not combat. NO SOFT JOBS FOR RAMOS. Thirty-seven years in the Armed Forces. REMEMBER THAT. Youre only writing about the fringe, but do not 118

allow yourself to destroy the armed forces by those guys. You write about the majority of the Armed Forces who are on the job. That's why we're here enjoying our freedom, ladies and gentlemen. You are here. If the majority of the Armed Forces did not do their job, I doubt very much if youd all be here. After Aquino assumed the Presidency, she appointed Ramos Chief of Staff of the Armed Forces of the Philippines, and later Secretary of National Defense. During this time, Ramos personally handled the military operations that crushed nine coup attempts against the Aquino government. During Ramos' presidency, the National Unification Commission was created, and its chairman Haydee Yorac, together with Ramos, recommended to President Aquino to grant amnesty to the rebel military officers of the Reform the Armed Forces Movement (RAM) led by Col. Gregorio "Gringo" Honasan. Advocacy Ramos also unveiled his proposals for constitutional change of the country. Citing the need to be more economically competitive in the midst of globalization and the need to improve governance for all Filipinos, Ramos suggested that government should start the process of Charter Change with a set deadline in 2007 (by which time the new charter and new government will take effect). Ramos supports the transformation of the country's political system from the Philippine presidential-bicameral-system into a unicameral parliament in transition to a federal form. He is currently representing the Philippines in the ASEAN Eminent Persons Group, tasked to draft the Charter of the Association of South East Asian Nations (ASEAN). He was also a member of numerous international groups and fora, and is currently the Chairman of the Board of Directors of the Boao Forum for Asia (also one of the co-founders of BFA) and Co-Chairman of the Global Meeting of the Emerging Markets Forum (EMF). Ramos was heavily recommended for the position of the United Nations envoy to Myanmar (formerly known as Burma) in June 2006. Ramos is also a 119

member of the Club de Madrid, an organization of more than 80 former Presidents and Prime ministers of democratic states. The Club de Madrid works to strengthen democratic governance and leadership. He served as the Carlyle Group Asia Advisor Board Member until the board was disbanded in February 2004. At present, as a private citizen, Ramos is engaged in various private sector advocacies where he plays prominent roles. These include: Chairman, Ramos Peace and Development Foundation; Chairman, Boao Forum for Asia; Trustee, International Crisis Group (ICG); Member, Advisory Group, UN University for Peace; Honorary Director, General Douglas MacArthur Foundation; Founding Member, Policy Advisory Commission, World Intellectual Property Organization (PACWIPO); Honorary Member, World Commission on Water for the 21st century; Member, International Advisory Council, Asia House; Patron, Opportunity International

(Philippines); Global Advisor, University of Winnipeg; Honorary Chairman, Yuchengco Center, De La Salle University; Member, Advisory Board, Metrobank; Honorary President, Human Development Network (HDN) Philippines; Lifetime Honorary President, Christian Democrats International (CDI); and Chairman Emeritus, LakasChristian Muslim Democrats (CMD) Party. Ramos is also a firm backer of the proposed Philippine Reproductive Health bill. During a meet-up with fellow RH bill supporters last May 2011, he urged President Benigno Aquino III to certify the RH bill as urgent, saying it is the "right thing" to do. During his administration, the Department of Health under Juan Flavier launched an intense drive to promote family planning. Asiaweek reported in August 1994 that under Ramos, "family planning funding has quintupled." They also noted that President Ramos "has gone the farthest of any administration in opposing the Church's positions on contraception and abortion." At present, Ramos is listed by the Forum for Family Planning and Development as one of its Eminent Persons. The Forum is a non120

governmental organization working to advance "national policies on population management, health, and family welfare." Contributions/Achievements 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. 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". Philippines 2000 Five-Point Program:

Peace and Stability Economic Growth and Sustainable Development Energy and Power Generation Environmental Protection Streamlined Bureaucracy Death penalty. While campaigning for the presidency, Fidel Ramos declared his

support for reinstating the death penalty. Capital punishment was abolished for all crimes in 1987, making the Philippines the first Asian country to do so. In 1996 Ramos signed a bill that returned capital punishment with the electric chair (method used from 121

1923 to 1976, making Philippines the only country to do so outside U.S.) "until the gas chamber could be installed". However, no one was electrocuted nor gassed, because the previously used chair was destroyed earlier and the Philippines adopted the lethal injection. Some people were put to death by this means, until the death penalty was abolished again in 2006. Peace with separatists. Ramos, a military general himself, made peace with the rebel panels. He was instrumental in the signing of the final peace agreement between the government and the Moro National Liberation Front (MNLF) led by Nur Misuari in 1996. Although he battled Communist rebels as a young lieutenant in the 1950s, Ramos made a bold move when he signed into law Republic Act 7636, which repealed the Anti-Subversion Law.With its repeal, membership in the once-outlawed Communist Party of the Philippines became legal.[9] Migrant Workers Protection. One of the downturns of his administration was his experience in handling migrant workers protection. On the eve of his 67th birthday on March 17, 1995, Ramos was on a foreign trip when Flor Contemplacin was hanged in Singapore. His last minute effort to negotiate with Singapore President Ong Teng Cheong and Prime Minister Goh Chok Tong never succeeded and he was marred with protests after his return to Manila. The protests also caused the resignation of Foreign Affairs Secretary Roberto Romulo and Labor Secretary Nieves Confesor from the Cabinet. He immediately recalled Philippine ambassador to Singapore Alicia Ramos and suspended diplomatic relations to Singapore. He created a special commission to look into the case and to try to rescue his sagging popularity. The commission was led by retired justice Emilio Gancayco. As also recommended by the Gancayco Commission, Ramos facilitated the enactment of Republic Act 8042, better known as the Magna Carta for Overseas 122

Workers or the Migrant Workers Act. The Migrant Workers Act was signed into law on June 7, 1995. Learning from the lessons of Contemplacin case, Ramos immediately ordered UAE Ambassador Roy Seeres to facilitate negotiations after learning the death penalty verdict of Sarah Balabagan on September 1995. Balabagan's sentence was lowered and she was released August 1996. After tensions cooled off, Ramos restored diplomatic relations with Singapore after meeting Goh Chok Tong during the sidelines of the 50th anniversary of the United Nations in New York City. Republic Act 7638 (Charter of the Department of Energy). This act was signed and implemented so that the department of energy would be created. This department rationalizes the organization and functions of government agencies responsible for the management of energy in the Philippines. Being that one of the projects of Ramos was the proper management, sourcing, and allocation of energy, this act had to be implemented in order to have a department responsible for it. Republic Act 7648 (Electric Power Crisis). This act prescribes the measures that are necessary and proper to effectively address the electric power crisis in our country. First RP-US Visiting Forces Agreement. The effect of this agreement is that it allows the government of the United States to keep the authority over their military personnel that are accused of committing crimes in the Philippines. This agreement exempts the US military personnel from visa and passport regulations in the Philippines, from being tried in Filipino religious or military courts, materials exported and imported by the military from duties or taxes. This agreement allows unrestricted movement of vessels from the United States and aircrafts in the Philippines. Republic Act 7832 (Anti-electricity and Electric Transmission

Lines/Materials Pilferage Act). This act penalizes theft and pilferage of electric lines and materials. 123

Republic Act 8179. This act further allows foreign investments. It supports Republic Act 7042, which promotes foreign investments and prescribes the procedures and actions foreign investors have to do when registering for a business in the Philippines. Deregulation and Privatization of Major Industries Protection of Migrant Workers Ramos facilitated the enactment of Republic Act 8042 which is also known as the Migrant Workers Act. This act protects Filipino workers abroad. Philippines 2000 Peace and Stability Economic Growth and Development Energy and Power Generation Environmental Protection Streamlined Bureaucracy Agrarian Reform Program Restatement of the Death Penalty Crises Despite the resolution of the power shortage crisis, the Philippines fell into large debt because with the implementation of the formation of the Department of Energy, Ramos was granted special authority to give licenses to independent power producers to construct powerplants. This would guarantee that the government would buy the power that the independent power producers produced in US Dollars. When the East Asian Financial Crisis entered, this became a problem to the Philippines because the value of the peso declined. Thus, another hole of the government was that the investments from foreign investors were sought as ineffective. 124

Despite the implementation of the Migrant Workers Protection Program, there have been cases where the lack of focus on the program occurred. One such is the Flor Contemplation Hanging. The issues and controversies during Ramos Administration were: PEA-AMARI Scam Manila Bay Reclamation Deal FVR Was accused of Corruption. This deal involved acquiring 158 hectares of reclaimed land on Manila Bay and it was supposedly going to be converted to what is called as Freedom Islands. The government was accused of corruption because they were said to favor Amari Costal Bay Resources and Filinvest Development by selling them a bigger portion for their own intentions. Ramos was accused that the deal was clinched to benefit the members of Lakas-NUCD, which was Ramos group. Centennial Expo and Conversion of Military Base in Fort Bonifacio for Private Development The Centennial Expo was supposedly one of his notable contributions to the Philippines and the people. The government was charged of alleged corruption and the misuse of funds. The projects relating to the Expo site were said to be extravagant and showed the inefficiency of the administration. They said it was a convenient vehicle to effect election fund-raising for the Lakas Political Party of Ramos. The issue there was that there was a budget set for the entire project. However, not all the projects were completed but the entire budget was spent. Power crisis. The Philippines then was experiencing widespread blackouts due to huge demand for electricity and antiquity of power plants, the abolishment of the Department of Energy and discontinuation of the Bataan Nuclear Power Plant during the Aquino administration. During his State of the Nation address on July 27, 1992, he requested that the Congress enact a law that would create an Energy Department that 125

would plan and manage the Philippines' energy demands. Congress not only created an Energy Department but gave him special emergency powers to resolve the power crisis. Using the powers given to him, Ramos issued licenses to independent power producers (IPP) to construct power plants within 24 months. Ramos issued supply contracts that guaranteed the government would buy whatever power the IPPs produced under the contract in U.S. dollars to entice investments in power plants. This became a problem during the East Asian Financial Crisis when the demand for electricity contracted and the Philippine peso lost half of its value. The country was considered risky by investors due to previous coup attempts by military adventurists led by Gregorio Honasan, and experienced blackouts at an almost daily basis lasting 412 hours during the term of President Aquino. The low supply of power and perceived instability had previously held back investments and modernization in the country. Under Ramos, the Philippines was a pioneer in the Build-OperateTransfer (BOT) scheme where private investors are invited to build certain government projects (i.e. tollways, powerplants, railways, etc.), make money by charging users, and transfer operation to the government after a set amount of time. Asian Financial Crisis. The 1997 Asian Financial Crisis, which started in Thailand, was a major blow to the Ramos administration. The economy was hit by currency devaluation.[10] The same was true for the Thai baht, Malaysia ringgit and Indonesia rupiah. Growth fell to about 0.6% in 1998 from 5.2% in 1997, but recovered to 3.4% by 1999. It also resulted to the shut down of some businesses, a decline in importation, rise unemployment rate and unstable financial sector. Clark Centennial Expo Scandal. Supposedly, one of his notable contributions to the Philippines was the revival of nationalistic spirit by embarking on a massive promotion campaign for the centennial of Philippine Independence celebrated on June 12, 1998. However, charges of alleged massive corruption or misuse of funds blemished 126

the resulting programs and various projects, one of which was the Centennial Expo and Amphitheater at the former Clark Air Base in Angeles City, Pampanga, supposedly Ramos' pet project. The commemorative projects, particularly those undertaken at the former Clark Air Base, were hounded by illegal electioneering and corruption controversies even years after the Centennial celebrations. A special report by the Philippine Center for Investigative Journalism (PCIJ) showed how the projects relating to the Expo site not only revealed the extravagance and inefficiency of the administration, but also served as convenient vehicle to effect election fund-raising for the LAKAS political party of Ramos at the expense of the tax-paying Filipinos and in violation of the Election Code. The Centennial Expo Pilipino project, intended to be the centerpiece for the celebrations for the 100th anniversary of the country's independence from Spain, also earned extensive criticisms for being an expensive white elephant project that disadvantaged the government at the cost of P9 billion, or 1.7 percent of the country's 1998 national budget.[11] Six ranking Ramos cabinet members and officials, headed by Chairman Salvador Laurel (former Vice-President) of the Centennial Commission were cleared by the Ombudsman and Sandigan Bayan (People's Court). Ramos appeared before a Congressional Committee in October 1998 to help exonerate said officials of any wrong-doing. PEA-Amari Scandal. President Fidel Ramos was accused of corruption in the PEA-Amari deal. The controversial deal involved the acquisition of 158 hectares of reclaimed land on Manila Bay that was to be converted into so-called Freedom Islands. The deal was forged in April 1995 as part of the Ramos administration's Manila Bay Master Development Plan (MBMDP). The PEA-Amari deal in addition to other projects in Manila Bay - displaced over 3,000 fishing and coastal families in Manila Bay just to give way to what fisherfolk activists from Pambansang Lakas ng Kilusang 127 Mamamalakaya ng Pilipinas

(Pamalakaya) described as an immoral, illegal and grossly unconstitutional state venture". The Ramos administration was accused of selling out the government's interests by favoring Amari Coastal Bay Resources and Filinvest Developmenttopping off a growing list of other corporate beneficiariesover higher bidders in various lucrative real estate development schemes. Data obtained from Public Estate Authority (PEA) revealed that the property was sold to Amari for P1.9 billion or P 1,200 pesos per square meter although the value of properties in adjacent areas were pegged at P90,000 per square meter. The Senate in its inquiry in 1998 found a paper trail representing commissions paid to certain PEA officials amounting to P1.7 billion.[citation needed] Ramos denied accusations that the PEA-Amari deal was clinched to benefit members of the ruling Lakas-NUCD as alleged by opposition groups. However, ex- solicitor general Franciso Chavez filed a petition to nullify the PEA-Amari deal because the government stood to lose billions of pesos in the sale of reclaimed lands to Amari. On April 25, 1995, PEA entered into a joint venture with Amari to develop Freedom Islands and on June 8 of the same year, Ramos okayed deal. On November 29, 1996, then-Senate President Ernesto Maceda delivered a privilege speech assailing the deal as the "grandmother of all scams".[12] Wikileaks Expos. On August 30, 2011, Wikileaks exposed reports sent by the United States Embassy in Manila that contain detail that the Libyan government under Muammar Gaddafi allegedly contributed USD 20,000 to the presidential campaign of Ramos in 1992.[13] The report said it was former House Speaker Jose de Venecia who brought Ramos to Gaddafi.[14] Reports said that Ramos and De Venecia "had been engaged in shady dealings in both Libya and Iraq involving construction contracts for his firm, and had tried to "repay" his Libyan benefactors by acting as their front man and errand boy." The same report added that there was a lot of speculation when Ramos 128

and De Venecia left for a secret trip abroad in middle of the 1992 campaign, and implied that this connection with the Libyan government was one of the objectives. Section 95 of the Philippines' Omnibus Election Code enumerates prohibited sources of political contributions and one of them is " Foreigners and foreign corporations." In addition, "It shall be unlawful for any person to solicit or receive any contribution from any of the persons or entities enumerated herein," the Code said. Sec. 81 of the Code also states,"It shall be unlawful for any foreigner, whether judicial or natural person, to aid any candidate or political party, directly or indirectly, or take part in or influence in any manner any election, or to contribute or make any expenditure in connection with any election campaign or partisan political activity." The Wikileaks expos makes Ramos administratively and criminally liable under the. If charged and convicted for this offense, he can be fined and imprisoned.

Chapter 13 129

Joseph E. Estrada [1998-2001] Biography Joseph Estrada was born on April 19, 1937, in Manila, Philippines. Over the course of his prolific film career, he has acted the lead role in more than 80 films and produced over 70. In 1992 he ran for vice president and won. In 1998 he became president of the Philippines. In 2001 he was arrested and imprisoned for six years. He ran for re-election in 2010, but lost to Benigno Aquino III. Early Life. Joseph Estrada was born Joseph Marcelo Ejercito in the Tondo district of Manila, Philippines, on April 19, 1937. He was one of 10 children. Estradas father, Emilio Ejercito, was a government engineer. His mother was named Maria Marcelo. Josephs parents were wealthy landowners. When Joseph was still very young, his family moved to San Juan, which has since become a part of metropolitan Manila. Estrada received his primary education at a local Jesuit school called Ateneo de Manila University. After graduating from Ateneo de Manila, he enrolled in engineering courses at the Mapa Institute of Technology. To his parents grave disappointment, Estrada dropped out after three years. He was the only one of his siblings not to receive a college diploma. Film Career. When Estrada was a young adult, he stumbled upon an acting role and enjoyed the sense of escapism that acting provided him. Quickly proving his acting prowess, he opted to pursue an acting career in lieu of completing his education. His 130

parents strongly opposed to the decision and forbade him to use the family name. Instead, the fledgling actor took the screen name Joseph Estrada, Estrada being the Spanish word for street. He also gave himself the nickname Erap, a Spanish term for pal spelled backward. Over the course of his prolific film career, Estrada has acted the lead role in more than 80 films made in the Philippines, and has also produced more than 70 movies. I have been a jeepney driver, labor leader, a Communist guerilla, Estrada said of his many roles, which often entailed playing a poor man seeking justice. He was awarded Best Actor and Best Film awards by the Filipino Academy of Movie Arts and Science (FAMAS) five times each, earning him spots in the FAMAS Hall of Fame in both 1981 and 1984. Politics. In 1967, Estrada used his popularity with audiences to garner votes in the San Juan mayoral elections. He served as mayor for 17 years, during which time he focused largely on education and health care reform. In 1987 Estrada became a national politician when he took a seat in the Philippine Senate. During his five-year stint in the Senate, Estrada served as chairman of the Committee on Rural Development and Committee on Cultural Communities, as well as the vice chair of the Committee on Health and Committee on Natural Resources and Ecology. In 1992 Estrada ran for vice president and won. He retained the position for the next six years. As vice president, Estrada led the Presidential Anti-Crime Commission and was responsible for a number of high-profile criminal arrests. Estradas 1998 presidential campaign was centered on this same law-and-order platform. Despite accusations of electoral fraud, Estrada won the presidency by a landslide, leaving his closest competitor, Jose de Venecia, in the dust. During Estradas 131

administration, he improved the countrys tax collection system and worked toward demilitarizing the Philippine government. On April 25, 2001, Estrada was arrested on charges of plunder that his political adversaries had filed against him. After a long and humiliating trial, Estrada was imprisoned in Tanay for six years and was eventually released based on an unconditional pardon in October of 2007. Recent Years. Following his release from prison, Estrada has worked for a number of local humanitarian causes, including disaster-relief missions and programs that strive to help the poor by eradicating hunger.In 2009, Estrada made a comeback in the film industry with an acting role in One and Only Family, filmed in Quezon City. In 2010 he ran for president again but came in second to Benigno Aquino III in the general elections. As of 2011, Estrada continued to residealong with his wife, former senator Dr. Luisa Pimentelin the Tondo district of Manila where Estrada grew up. The couple has three children, including their son Jinggoy, who has served in the Philippine Senate since 2004. Advocacy Estradas first priority was to focus on the improvement of the economy. Creating the environment of peace and order in which business does well so as to uplift the economy of the country. Estrada wanted to focus on the masses and put up programs for them first. He promised the masses that they will not suffer anymore and let the rich people take a share on the sacrifices. As he states As far as resources permit, to the best of our ability and the limit of our energy, we will put a roof over their heads, food on their tables, and clothes on their backs. We will educate their children and foster their health. We will bring peace and security, jobs 132

and dignity to their lives. We will put more infrastructure at their service, to multiply their productivity and raise their incomes. He stated several points regarding how the government can help out in improving the country. Stamping out crimes, providing basic services without the extra cost of pork barrel, roads for work, infrastructure, schools, clinics, national defense are some of the factors Estrada promised to implement or establish. Erap swore to give at once a government that works. Estrada also promised to bring peace and harmony to the society. He wanted every Filipino, rich or poor to feel that they are safe. Philippine Clean Air Act of 1999 (Republic Act No. 8749). Designed to protect and preserve the environment and ensure the sustainable development of its natural resources. Incentives for Regional Headquarters of Foreign Multinationals (Republic Act No. 8756). The measure grants a host of incentives to multinational firms establishing their regional hubs in the country. It also provides a tax- and duty-free operating environment for them, and multiple entry visas to expatriates and their families, as well as a flat income tax rate of 15%. Retail Trade Liberalization Act (Republic Act No. 8762). The bill dismantles 40 years of state protectionism over the countrys retail trade industry and opens the sector to big foreign players. With the retail trade liberalization, well-known foreign players like Frances Carrefour and Casino Group as well as the U.S. Wal-Mart and JC Penney are already in the process of negotiating with local partners. New General Banking Act (Republic Act No. 8791). The measure opens up the local banking industry to foreign players after almost 50 years of having it exclusively reserved and protected for Filipino nationals. With the industrys liberalization, at least 10 foreign banks have already established their presence in the Philippines. 133

Electronic Commerce Act of 2000 (Republic Act No. 8792). Outlaws computer hacking and provides opportunities for new businesses emerging from the Internetdriven New Economy. New Securities Act (Republic Act No. 8799). This law liberalizes the securities market by shifting policy from merit regulation to full disclosure. With its strengthened provisions against fraud, the measure is expected to pave the way for the full development of the Philippine equities and securities market. Agrarian Reform. The Estrada administration widened the coverage of the Comprehensive Agrarian Reform Program (CARP) to the landless peasants in the country side. The latters administration distributed more than 266,000 hectares of land to 175,000 landless farmers, including land owned by the traditional rural elite. On September 1999, he issued Executive Order (EO) 151, also known as Farmers Trust Fund, which allows the voluntary consolidation of small farm operation into medium and large scale integrated enterprise that can access long-term capital. President Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA. The DAR forged into joint ventures with private investors into agrarian sector to make FBs competitive. In 1999 a huge fund was allocated to agricultural programs. One of which is the Agrikulturang Maka Masa, through which it achieved an output growth of 6 percent, a record high at the time, thereby lowering the inflation rate from 11 percent in January 1999 to just a little over 3 percent by November of the same year. Anti-Crime Task Forces. In 1998, by virtue of Executive Order No.8, President Estrada created the Presidential Anti-Organized Crime Task Force (PAOCTF) with the objective of minimizing, if not totally eradicating, car theft and worsening kidnapping cases in the country. With the help of this task force, the Philippine National Police for the first time in history achieved a record-high trust rating of +53 percent. Panfilo Lacson was its first head. He also created the Philippine Center on Transnational Crime (PCTC) 134

in 1999, with the objective of formulating and implementing a concerted of action of all law enforcement, intelligence and other government agencies for the prevention and control of transnational crime. Death Penalty. The death penalty law in the Philippines was re-enforced during the incumbency of Estradas predecessor, Fidel Ramos. This law provided the use of the electric chair until the gas chamber (method chosen by government to replace electrocution) could be installed. The Estrada administration peddled the death penalty as the antidote to crime. The reasoning was that if the criminals will be afraid to commit crimes if they see that the government is determined to execute them. Charter Change. Under President Joseph Estrada, there was a similar attempt to change the 1987 constitution. The process is termed as CONCORD or Constitutional Correction for Development. Unlike Charter change under Ramos and Arroyo the CONCORD proposal, according to its proponents, would only amend the restrictive economic provisions of the constitution that is considered as impeding the entry of more foreign investments in the Philippines. RP-US Visiting Forces Agreement. On 1999 a Visiting Forces Agreement with the United States, which was ratified in the Senate.The first Visiting Forces Agreement was actually signed under President Ramos in 1998, and the second was subsequently signed under President Estrada. The two agreements came to effect a year later. The primary effect of the Agreement is to require the U.S. government (1) to notify RP authorities when it becomes aware of the apprehension, arrest or detention of any RP personnel visiting the U.S. and (2) when so requested by the RP government, to ask the appropriate authorities to waive jurisdiction in favor of RP, except cases of special interest to the U.S. departments of State or Defense Contributions/Achievements 135

Estrada

was

inaugurated

on

June

30,

1998

in

the

historical

town

of Malolos in Bulacan province in paying tribute to the cradle of the First Philippine Republic. That afternoon the new president delivered his inaugural address at the Quirino Grandstand in Luneta. He assumed office amid the Asian Financial Crisis and with agricultural problems due to poor weather conditions, thereby slowing the economic growth to 0.6% in 1998 from a 5.2% in 1997. [12] The economy recovered by 3.4% in 1999 and 4% in 2000.[13] In 2000 he declared an "all-out-war" against the Moro Islamic Liberation Front and captured its headquarters and other camps.[1][2] However, allegations of corruption spawned a railroaded impeachment trial in the Senate courtesy of house speaker Manuel Villar, and in 2001 Estrada was ousted from a coup after the trial was aborted. Economy. In 1998, Joseph Estrada was elected president. Even with its strong economic team, the Estrada administration failed to capitalize on the gains of the previous administration. His administration was severely criticized

forcronyism, incompetence, and corruption, causing it to lose the confidence of foreign investors. Foreign investors' confidence was further damaged when, in his second year, Estrada was accused of exerting influence in an investigation of a friend's involvement instock market manipulation. Social unrest brought and about by other

numerous bombing threats,

actual bombings, kidnappings,

criminal activities contributed to the economy's troubles. Economic performance was also hurt by climatic disturbance that caused extremes of dry and wet weather. Toward the end of Estrada's administration, the fiscal deficit had doubled to more than P100 billion from a low of P49 billion in 1998. Despite such setbacks, the rate of GNP in 1999 increased to 3.6 percent from 0.1 percent in 1998, and the GDP posted a 3.2 percent growth rate, up from a low of-0.5 percent in 1998. Debt reached P2.1 trillion in 1999. Domestic debt amounted to P986.7 billion while foreign debt stood at US$52.2 billion. 136

Masa format on radio. During his term, Estrada ordered to the National Telecommunications Commission by the adoption of Filipino language-based radio format known as masa. Named for his iconMasa (or Masses), all radio stations adopted the masa format effective since 1998, as DJ's wanted to replace English languagebased stations immediately to air OPM songs and requests. After his term in 2001, several FM stations adopted the masa format nationwide until this day. Saguisag Commission. With the purpose of investigating the alleged anomalies of the Ramos administration, President Joseph Estrada created the "Saguisag Commission" headed by former SenatorRene Saguisag. Ramos, however, refused to appear before the commission for he argued that the jurisdiction lies in the court. In the so-called Centennial Expo scam, Mr. Ramos claimed the Senate committee that conducted the probe "never closed the case" because it did not issue any final report. Instead, he rued, former President Estrada created an administrative fact-finding commission headed by former Senator Rene Saguisag. But six former government officials during his administration who were implicated in the Centennial Expo scam were subsequently "exonerated" by the Ombudsman in October 1998. Former Vice President Salvador Laurel, who chaired the Centennial Expo and was among the principal accused in this case, however, died before he could be exonerated, Mr. Ramos rued. In the Smoky Mountain case, he said, he appeared in 2000 before the public hearing of the House committee on good government chaired by then Rep. Ed Lara whose panel cleared the project as valid and legal. Subsequently, he said, the Supreme Court ruled 13-0, with 2 abstentions, in favor of the project. The SC also upheld the legality and constitutionality of the project and dismissed the petition filed against it by Sen. Miriam Defensor-Santiago. 137

In the questioned Masinloc power project, he said, the Joint Congressional Oversight Committee looked into the privilege speech of then Sen. Aquilino Pimentel Jr. on Ramos' alleged influence that this power plant be sold to a consortium connected with formerMalaysian Prime Minister Mahathir Muhammad. Agrarian reform. The Estrada administration widened the coverage of the Comprehensive Agrarian Reform Program (CARP) to the landless peasants in the country side. The latter's administration distributed more than 266,000 hectares of land to 175,000 landless farmers, including land owned by the traditional rural elite. (Total of 523,000 hectares to 305,000 farmers during his 2nd year as President). On September 1999, he issued Executive Order (EO) 151, also known as Farmer's Trust Fund, which allows the voluntary consolidation of small farm operation into medium and large scale integrated enterprise that can access long-term capital. President Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA. The DAR forged into joint ventures with private investors into agrarian sector to make FBs competitive. In 1999 a huge fund was allocated to agricultural programs. One of which is the "Agrikulturang Maka Masa", through which it achieved an output growth of 6 percent, a record high at the time, thereby lowering the inflation rate from 11 percent in January 1999 to just a little over 3 percent by November of the same year. Anti-Crime Task Forces. In 1998, by virtue of Executive Order No.8, President Estrada created the Presidential Anti-Organized Crime Task Force (PAOCTF) with the objective of minimizing, if not totally eradicating, car theft and worsening [15] kidnapping cases in the country. With the help of this task force, the Philippine National Police for the first time in history achieved a record-high trust rating of +53 percent. Panfilo Lacson was its first head. He also created the Philippine Center on Transnational Crime (PCTC) in 1999, with the objective of formulating and implementing a concerted of action 138

of all law enforcement, intelligence and other government agencies for the prevention and control of transnational crime. However in November 2000, during the Juetenggate scandal of President Estrada, high officials of the PAOCTF - Cesar Mancao, Michael Ray Aquino, Glen Dumlao, and PAOCTF chief Panfilo Lacson - were implicated in the murder of publicist Salvador Dacerand his driver Emmanuel Corbito at

the Cavite province. Dacer at that time was accused to be behind a black propaganda against President Estrada - a charge Dacerdenied. Death Penalty. The death penalty law in the Philippines was reinforced during the incumbency of Estrada's predecessor, Fidel Ramos. This law provided the use of the electric chair until the gas chamber(method chosen by government to replace electrocution) could be installed. However, the electric chair was destroyed some time prior due to a typhoon, leaving only a blackened scorch mark. Some sources have said it had burnt out the last time it had been used. However, the first execution by injection took place under Estrada's administration. On February 5, 1999, Leo Echegaray, a house painter, was executed for repeatedly raping his stepdaughter. He was the first convict to be executed since the reimposition of death penalty in 1995. His execution sparked once again a heated debate between the anti and the prodeath penalty forces in the Philippines with a huge majority of people calling for the execution of Echegaray. That there was a strong clamor for the imposition of the death penalty should be viewed from the point of view of a citizen who is desperately seeking ways to stop criminality. The Estrada administration peddled the death penalty as the antidote to crime. The reasoning was that if the criminals will be afraid to commit crimes if they see that the government is determined to execute them. The opposition maintained that the death 139

penalty is not a deterrent and that there have been studies already debunking the deterrence theory. Legislators and politicians refused to heed the recommendation of the Supreme Court for Congress to review the death penalty riding on the popularity of the pro-death penalty sentiment. Six years after its re imposition, more than 1,200 individuals have been sentenced todeath and seven convicts have been executed through lethal injection. Yet today, there are no signs that criminality has gone down. From February 6, 1999, a day after Leo Echegaray was executed, to May 31, 1999 two leading newspapers reported a total of 163 crimes which could be punishable by death penalty. But perhaps the best indicator that this law is not a deterrent to criminality is the ever-increasing number of death convicts. From 1994 to 1995 the number of persons on death row increased from 12 to 104. From 1995 to 1996 it increased to 182. In 1997 the total death convicts was at 520 and in 1998 the inmates in death row was at 781. As of November 1999 there are a total of 956 death convicts at the National Bilibid Prisons and at the Correctional Institute for Women. As of December 31, 1999, based on the statistics compiled by

the EpiscopalCommission on Prisoner Welfare of the Catholic Bishops Conference of the Philippines, there were a total of 936 convicts interned at the National Bilibid Prisons and another 23 detained at the Correctional Institute for Women. Of these figures, six are minors and 12 are foreigners. Because the Philippines is predominantly Catholic, Estrada called a moratorium in 2000 to honor the bimillenial anniversary of Jesus' birth. Executions were resumed a year later. Sovereign guarantees. President Estrada immediately ordered the removal of all sovereign guarantees on contracts for public projects which would require the 140

sovereign Filipino people to assume the financial losses of private companies doing business with the government. Records will show that until January 20, 2001, he did not sign a single government contract with a sovereign guarantee. Banknotes. During the Estrada Administration, the practice in use since the Commonwealth, of reproducing the signature of the President of the Philippines over the legend "President of the Philippines" was abandoned in favor of explicitly stating the president's name. Charter Change. Under President Joseph Estrada, there was a similar attempt to change the 1987 constitution. The process is termed as CONCORD or Constitutional Correction for Development. Unlike Charter change under Ramos and Arroyo the CONCORD proposal, according to its proponents, would only amend the 'restrictive' economic provisions of the constitution that is considered as impeding the entry of more foreign investments in the Philippines. There were once again objections from opposition politicians, religious sects and left wing organizations based on diverse arguments such as national patrimony and the proposed constitutional changes would be self serving. Like his predecessor, Estrada's government was accused of pushing Charter change for their own vested interests. War against the MILF. During the Ramos administration a cessation of hostilities agreement was signed between the Philippine Government and the Moro Islamic Liberation Front (MILF) in July 1997. This was continued by a series of peace talks and negotiations in Estrada administration. However the Moro Islamic Liberation Front (MILF), an Islamic group formed in 1977, seeks to be an independent Islamic State from the Philippines, despite the agreements, a sequence of terrorist attacks with the Philippine military and the civilians still continued. Such of those attack are 277 violations committed, kidnapping a foreign priest, namely Father Luciano Benedetti, the occupying and setting on fire of the municipal hall of Talayan, Maguindanao; the 141

takeover of the Kauswagan Municipal Hall; the bombing of the Lady of Mediatrix boat at Ozamiz City; and the takeover of the Narciso Ramos Highway. By doing so, they inflicted severe damage on the country's image abroad, and scared much-needed investments away. In addition to this, the Philippine government learned that the MILF has links with Al-Qaeda.[19]Because of this, on March 21, 2000, President Joseph Estrada declared an "all-out-war" against the MILF. During the war the Catholic Bishops' Conference of the Philippines(CBCP) asked Estrada to have a ceasefire with MILF, but Estrada opposed the idea arguing that a cease-fire would cause more terrorist attacks. For the next three months of the war, Camp Abubakar, headquarters of the MILF, fell along with other 13 major camps and 43 minor camps, and then all of which became under controlled by the government. The MILF leader Hashim Salamat fled the country and went to Malaysia. The MILF later declared a Jihad on the government. On July 10 of the same year, the President went to Minadanao and raised the Philippine flag symbolizing victory. After the war the President said, "... will speed up government efforts to bring genuine and lasting peace and development in Mindanao". In the middle of July the president ordered the military to arrest top MILF leaders. In his state of the nation address, the President highlighted his vision for Mindanao:

The first is to restore and maintain peace in Mindanaobecause without peace, there can be no development.

The second is to develop Mindanaobecause without development, there can be no peace.

The third is to continue seeking peace talks with the MILF within the framework of the Constitutionbecause a peace agreed upon in good faith is preferable to a peace enforced by force of arms. 142

And the fourth is to continue with the implementation of the peace agreement between the government and the Moro National Liberation Front, or MNLF because that is our commitment to our countrymen and to the international community. In addition to this the president said his administration can move with more

speed in transforming Mindanao into a progressive economic center. [20] High on the list of priorities was the plight of MILF guerrillas who were tired of fighting and had no camps left to report to. On October 5, 2000 the first massive surrender of 669 MILF mujahideen led by the renegade vice mayor of Marugong, Lanao del Sur Malupandi Cosandi Sarip and seven other battalion commanders, surrendered to President Joseph Estrada at the 4th ID headquarters in Camp Edilberto Evangelista, Bgy. Patag, Cagayan de Oro City. They were followed shortly by a second batch of 855 surrenderees led by MILF Commander Sayben Ampaso on Dec. 29, 2000. However, the war with the MILF was severely criticized by foreign and media observers. In fact Agriculture Secretary Edgardo Angara bridled at the high cost of Mindanao specifically the diversion of resources from military operations that eat away from the agriculture modernization program. Angara was quoted as saying "What General Reyes asks, he gets". Moreover the fighting in Mindanao even destroyed more than P135 million worth of crops and 12,000 hectares of rice and corn fields.[22] Foreign Policies. The Estrada administration upheld the foreign policy thrusts of the Ramos administration, focusing on national security, economic diplomacy, assistance to nationals, and image-building. The Philippines continued to be at the forefront of the regional and multilateral arena. It successfully hosted the ASEAN Ministerial Meeting in July 1998 and undertook confidence-building measures with China over South China Sea issue through a meeting in March 1999. President Estrada 143

strengthened

bilateral

ties

with

neighboring

countries

with

visits

to Vietnam, Thailand, Malaysia, Singapore, Hong Kong, Japan, and South Korea.[24] The country also sent a delegation of 108 observers to the Indonesian parliamentary elections, and engaged in cooperative activities in the areas of security, defense, combating transnational crimes, economy, culture, and the protection of OFWs and Filipinos abroad. RP-US Visiting Forces Agreement. On 1999 a Visiting Forces Agreement with the United States, which was ratified in the Senate. The first Visiting Forces Agreement was actually signed under President Ramos in 1998, and the second was subsequently signed under President Estrada. The two agreements came to effect a year later. The primary effect of the Agreement is to require the U.S. government (1) to notify RP authorities when it becomes aware of the apprehension, arrest or detention of any RP personnel visiting the U.S. and (2) when so requested by the RP government, to ask the appropriate authorities to waive jurisdiction in favor of RP, except cases of special interest to the U.S. departments of State or Defense. (Waiving of jurisdiction in the U.S. is complicated by United States being a Confederation of States in which each individual state has its own judicial system, and the U.S. Federal Government not being in a position to simply order a State to waive jurisdiction). The Agreement contains various procedural safeguards which amongst other things establish the right to due process and proscribe double jeopardy[26][VIII
2-6]

. The

agreement also, among other provisions, exempts RP personnel from visa formalities and guarantees expedited entry and exit processing requires the U.S. to accept RP driving licensesallows RP personnel to carry arms at U.S. military installations while on dutyprovides personal tax exemptions and import/export duty exclusions for RP personnel requires the U.S. to provide health care to RP personnel and exempts RP 144

vehicles, vessels, and aircraft from landing or ports fees, navigation or overflight charges, road tolls or any other charges for the use of U.S. military installations. Third Informal ASEAN Summit. President Estrada hosted the third

Informal ASEAN summit at the Philippine International Convention Center (PICC) from Nov. 24-28, 1999. The Chief Executive met with the leaders of the nine Asean membercountries and three dialogue partners of the regional grouping, namely China, Japan and the Republic of Korea. The 10 Asean member-countries are Brunei Darussalam, Indonesia, Malaysia, Singapore, Thailand, the Philippines, Myanmar, Cambodia, Laos, and Vietnam. The Philippines is the third Asean country to host the Asean Informal Summit. The first informal summit was held in Jakarta on Nov. 30, 1996 while the second was held in Kuala Lumpur on Dec.15-16, 1997. Myanmar, which joined the Asean only in 1997, was supposed to host the Third Informal Summit but it begged of. Following the alphabetical order, the Philippines was next in line to host the informal summit. The leaders of the 10-member Association of Southeast Asian Nations (ASEAN) and their three dialogue partners concluded their informal summit on Sunday, Nov. 28, vowing to further broaden East Asia cooperation in the 21st century to improve the quality of life of peoples in the region. A joint statement issued after the 3rd Asean Informal Summit and separate toplevel meetings with the leaders of China, Japan and Korea expressed the resolve of the heads of states and governments of Asean and its dialogue partners to work toward the attainment of peace and stability in Asia and the Pacific.[27] According to the joint statement, the leaders also voiced "satisfaction with the rapidly developing relations" among their countries that is expected to pave the way to greater East Asia cooperation. 145

The Asean countries that participated in the summit were Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Noting the bright prospects for enhanced interaction and closer linkages in East Asia, the leaders said the growing interaction has helped increase opportunities for cooperation and collaboration among their countries.[27] Closer linkages in this part of Asia, they pointed out, have strengthened the promotion of peace, stability and prosperity in the region. "Mindful of the challenges and opportunities in the new millennium, as well as the growing regional interdependence in the age of globalization and information, they agreed to promote dialogue and to deepen and consolidate collective efforts with a view to advancing mutual understanding, trust, good neighborliness and friendly relations, peace, stability and prosperity in East Asia and the world," the joint statement said. They likewise underlined their commitment to conduct their mutual relations under the principles of the United Nations Charter, the Five Principles of Peaceful Coexistence, the Treaty of Amity and Cooperation in Southeast Asia, and the universally recognized principles of international law. The leaders further underscored their commitment to build on existing cooperative processes in the economic, social and political fields. On economic cooperation, the leaders of the Asean countries, China, Japan and South Korea agreed to accelerate trade, investments, technology transfer, cooperation in information technology and promotion of industrial and agricultural cooperation, and the encourage development of growth areas in East Asia, including the Mekong River Basin.

146

On monetary and financial cooperation, they agreed to strengthen policy on financial, monetary and fiscal issues, including the cooperation mechanism for finance and central banking system. In the political-security area, they agreed to continue dialogue, coordination, and cooperation to increase mutual understanding and trust, towards forging lasting peace and stability in East Asia. The leaders agreed to strengthen cooperation in addressing common concerns in the area of transnational issues in the region. In other fields, the leaders also agreed:

to intensify coordination and cooperation in various international and regional forums, including the United Nations, World Trade Organization and Asia Pacific Economic Cooperation, as well as in regional and international financial institutions.

to strengthen regional cooperation in projecting an Asian point of view to the rest of the world and in intensifying people-to-people contacts,

to strengthen social and human resources to sustain growth in East Asia by alleviating economic and social disparities within and among East Asian countries.

to support Asean efforts in the implementation of the Hanoi Plan of Action towards advancing economic and sustainable development.[27]

Crises Graft and Corruption. Graft and corruption was pretty eminent not just during Estradas administration. Obviously, we all know Estrada was sanctioned to have been getting or robbing money from the governments fund to use for his own personal interest. That is why he was impeached due to his plunder and perjury case. 147

Asian Financial Crisis. The Central bank raised interest rates by 1.75%. The BSP was forced to intervene heavily to defend the peso raising the overnight rate from 15% to 24%. The pesa fell from 26 per dollar to 28 pesos to 40 pesos by the end of the crisis. El Nino. The El Nino led to too many problems in the country. One of which is the serious drought of lands in the rural areas that cause the unemployment of the farmers and the rise of the prices of rice. Poverty. Of the 14.37 million families, 5.75 million belonged to the lowest 40% income group while 8.62 million in the highest 60% income bracket. In terms of percentage to total families, families in the highest 60% income strata got the biggest percentage in almost all indicators. But in terms of the percentage to the total families within each income strata, families in the lowest 40% income strata are not far off from families in the highest 60%. Estradas Clean Air Act only focused only on the air quality management. I think it would have been more appealing and more effective if the law were not only about air management. I think if Erap implemented a law that focused on the environment as a whole and not just the air management, most citizens would have struck it thus making Estrada as a president who is really concerned about the status of our natural resources. President Joseph Estrada urged Congress to speed up the passage of a new Securities Act aimed at promoting a more transparent and stronger stock exchange in the Philippines. He called on lawmakers to adopt models in Singapore, Hong Kong and Australia, where the public has the majority ownership of the stock market, in restructuring the Philippine Stock Exchange (PSE). He adopted systems from other countries that are really improving however; it is pretty hard for the country to use it because it is way too different. The Philippines is a third world country therefore will have a hard time carrying out the adopted system 148

War between MILF. During the Ramos administration a cessation of hostilities agreement was signed between the Philippine Government and the Moro Islamic Liberation Front (MILF) in July 1997. This was continued by a series of peace talks and negotiations in Estrada administration. However the Moro Islamic Liberation Front (MILF), a Islamic group formed in 1977, seeks to be an independent Islamic State from the Philippines, despite the agreements, a sequence of terrorist attacks with the Philippine military and the civilians still continued. Such of those attack are 277 violations committed, kidnapping a foreign priest, namely Father Luciano Benedetti, the occupying and setting on fire of the municipal hall of Talayan, Maguindanao; the takeover of the Kauswagan Municipal Hall; the bombing of the Lady of Mediatrix boat at Ozamiz City; and the takeover of the Narciso Ramos Highway. By doing so, they inflicted severe damage on the countrys image abroad, and scared much-needed investments away. Plunder. The plunder case consisted of four separate charges: acceptance of 545 million pesos from proceeds of Jueteng, an illegal gambling game; misappropriation of 130 million pesos in excise taxes from tobacco; receiving a 189.7-million-peso commission from the sale of the shares of Belle Corporation, a real-estate firm; and owning some 3.2 billion pesos in a bank account under the name Jose Velarde. Perjury. The minor charge of perjury is for Estrada underreporting his assets in his 1999 statement of assets and liabilities and for the illegal use of an alias, namely for the Jose Velarde bank account. BW Resources. BW Resources, a small gaming company listed on the Philippine Stock Exchange and linked to people close to Estrada, experienced a meteoric rise in its stock price due to suspected stock price manipulation. The head of the compliance and surveillance group of PSE resigned which led to the confusion of the investigation. The events created a negative impression. The BW controversy undermined foreign investor confidence in the stock market and also contributed to a 149

major loss of confidence in the Philippines among foreign and local investors on concerns that cronyism may have played a part. Impeachment Trial. This was the first time Filipinos would witness, through radio and television, an elected president stand in trial and face possible impeachment with full media coverage. During the trial, the prosecution presented witnesses and alleged evidences to the impeachment court regarding Estradas alleged involvement in jueteng. The existence of secret bank accounts that he allegedly used for receiving payoffs was also brought affront. Singson stood as witness against the president during the trial and said that he and the President were alleged partners in-charge of the countrywide jueteng operations. Singsons testimony was one of the vital pieces of evidence that led to Estradas subsequent conviction. With Eraps plunder and perjury case, he did not do anything about it to prove that he is not doing some illegal acts. He just made a way to erase the thought in peoples minds. Because his market is the masa and the masa does not care about how their president act as long as he is doing something to uplift their sufferings, they do not keep in mind what Erap is doing may it be against the law or not. He just let the government take away his position by the impeachment trial. Eraps perjury case was different. The Jose Velardo account was obviously one case which Estrada together with his supporters.

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Chapter 14 Gloria M. Arroyo [2001-2010] Biography Gloria Macapagal-Arroyo (born

April 5, 1947) is a Filipino politician who served as the 14th President 2001 President to of the as the

Philippines from the12th Vice

2010, of

Philippines from 1998 to 2001, and is currently a member of the House of

Representatives representing

the 2nd

District ofPampanga. She was the country's second Aquino), female and president the (after Corazn of former

daughter

President Diosdado Macapagal. Arroyo was a former professor of economics at Ateneo de Manila

University where Benigno Aquino III was one of her students. She entered government 151

in 1987, serving as assistant secretary and undersecretary of the Department of Trade and Industry upon the invitation of President Corazon Aquino. After serving as a senator from 1992 to 1998, she was elected to the vice presidency under President Joseph Estrada, despite having run on an opposing ticket. After Estrada was accused of corruption, she resigned her cabinet position as Secretary of Social Welfare and Development and joined the growing opposition to the president, who faced impeachment. Estrada was soon forced from office by the EDSA Revolution of 2001, and Arroyo was sworn into the presidency by Chief Justice Hilario Davide, Jr. on January 20, 2001. She was elected to a full six-year presidential term in the controversial May 2004 Philippine elections, and was sworn in on June 30, 2004. Following her presidency she was elected to the House of Representatives, making her the second Philippine presidentafter Jos P. Laurelto pursue a lower office after their presidency. On November 18, 2011, Arroyo was arrested following the filing of criminal charges against her for electoral fraud. As of December 9, 2011, she is incarcerated at the Veterans Memorial Medical Center in Quezon City under charges of electoral sabotage. She was born as Mara Gloria Macaraeg Macapagal to politician Diosdado Macapagal and his wife, Evangelina Macaraeg-Macapagal. She is the sister of Dr. Diosdado "Boboy" Macapagal, Jr. and Cielo Macapagal-Salgado. She spent the first years of her life in Lubao, Pampanga, with her two older siblings from her father's first marriage.[1] At the age of four, she chose to live with her maternal grandmother in Iligan City.[4] She stayed there for three years, then split her time

between Mindanao and Manila until the age of 11. She is fluent in English, Tagalog, Spanish and several other Philippine languages, most

importantly, Kapampangan, Ilokano, and Cebuano. 152

In 1961, when Arroyo was just 14 years old, her father was elected as president. She moved with her family into Malacaang Palace in Manila. A municipality was named in her honor, Gloria, Oriental Mindoro. She attended Assumption Convent for her elementary and high school education, graduating valedictorian in 1964. Arroyo then studied for two years at Georgetown University's Walsh School of Foreign Service in Washington, D.C. where she was a classmate of future United States President Bill Clinton and achieved consistent Dean's list status. She then earned her Bachelor of Arts degree in Economics from Assumption College, graduating magna cum laude in 1968. In 1968, Arroyo married lawyer and businessman Jose Miguel Arroyo of Binalbagan, Negros Occidental, whom she had met while still a teenager. They had three children, Juan Miguel (born 1969), Evangelina Lourdes (born 1971) and Diosdado Ignacio Jose Mara (born in 1974). She pursued a Master's Degree in Economics at the Ateneo de Manila University (1978) and a Doctorate Degree in Economics from the University of the Philippines Diliman (1985). From 1977 to 1987, she held teaching positions in several schools, notably the University of the Philippines and the Ateneo de Manila University. She became chairperson of the Economics Department at Assumption College. In 1987, she was invited by President Corazon Aquino to join the government as Assistant Secretary of the Department of Trade and Industry. She was promoted to Undersecretary two years later. In her concurrent position as Executive Director of the Garments and Textile Export Board, Arroyo oversaw the rapid growth of the garment industry in the late 1980s. Arroyo entered politics in the 1992 election, running for senator. At the first general election under the 1987 Constitution, the top twelve vote-getting senatorial candidates would win a six-year term, and the next twelve candidates would win a three153

year term. Arroyo ranked 13th in the elections, earning a three-year term. She was reelected in 1995, topping the senatorial election with nearly 16 million votes. As a legislator, Arroyo filed over 400 bills and authored or sponsored 55 laws during her tenure as senator, including the Anti-Sexual Harassment Law, the Indigenous People's Rights Law, and the Export Development Act.[1] The 1995 Mining Act, which allows 100% foreign ownership of Philippine mines, has come under fire from left-wing political groups. Arroyo considered a run for the presidency in the 1998 election, but was persuaded by President Fidel V. Ramos and leaders of the administration party LakasChristian Muslim Democrats to instead seek the vice-presidency as the running mate of its presidential candidate, House Speaker Jose de Venecia, Jr.[8] Though the latter lost to popular former actor Joseph Estrada, Arroyo won the vice presidency by a large margin, garnering more than twice the votes of her closest opponent, Estrada's running mate Senator Edgardo Angara. Arroyo began her term as Vice President on June 30, 1998. Historically, she was the first and only to date female Vice President of the Philippines. She was appointed by Estrada to a concurrent position in the cabinet as Secretary of Social Welfare and Development. Arroyo resigned from the cabinet in October 2000, distancing herself from President Estrada, who was accused of corruption by a former political supporter, Chavit Singson, Governor from Ilocos Sur. She had initially resisted pressure from allies to speak out against Estrada, but eventually joined calls for Estrada's resignation. The last quarter of 2000 up to the first week of January 2001 was a period of political and economic uncertainty for the Philippines. On January 16, 2001, the impeachment trial has also taken a new direction. Private prosecutors walked out of the trial when pro-Estrada senators prevented the opening of an evidence (a brown 154

envelope) containing bank records allegedly owned by President Estrada. With the walk out, the impeachment trial was not completed and the Filipinos eventually took to the street to continue the clamor for President Estrada's resignation. From January 17 to 20, 2001, hundreds of thousands of Filipinos gathered at Epifanio de los Santos Avenue (EDSA), the site of the original People Power Revolution. The clamor for a change in the presidency gained momentum as various sectors of Philippine society professionals, students, artists, politicians, leftist and rightist groups joined what became known as EDSA II. Officials of the administration, the Armed Forces of the Philippines (AFP), and the Philippine National Police (PNP) also withdrew their support for President Estrada. Days after leaving Malacaang Palace, President Estrada's lawyers questioned the legitimacy of Arroyo's presidency before the Supreme Court. He reiterated that he did not resign as president and that at most, Arroyo was just serving in an acting capacity. The high court, however, voted unanimously in upholding the legitimacy of Arroyo's succession. As a consequence, Estrada no longer enjoys immunity from charges being filed against him. In the last week of April 2001, the Sandiganbayan ordered the arrest of Estrada and his son, Senator Jinggoy Estrada, for plunder charges. A few days later, Estrada supporters protested his arrest, gathered at the EDSA Shrine, and staged what they called, EDSA III comparing their actions to the People Power revolution of 1986 and January 2001. Thousands of protesters demanded the release of Estrada. Eventually, they also called for the ouster of Arroyo and the reinstatement of the former. On May 1, 2001, they marched towards Malacaang to force Arroyo to give in to their demands. Violence erupted when the protesters attempted to storm the presidential palace and the military and police were forced to use their arms to drive them back. Arroyo declared a state of 155

rebellion because of the violence and prominent political personalities affiliated with Estrada were charged and arrested. The so-called EDSA III was the first serious political challenge to the Arroyo presidency. 2004 Presidential Election. Article VII Section 4 of the 1987

Constitution explicitly states that the president of the Philippines can only serve for one term. However, the same provision also implicitly states that a president's successor who has not served for more than four years can still seek a full term for the presidency. Although Arroyo falls under this category, she initially announced on December 30, 2002 that she will no longer seek the presidency. She emphasized that she will devote her remaining months in office to serving the people and improving the economy of the Philippines. In October 2003, Arroyo changed her mind and announced that she will run for the May 2004 presidential elections and seek a direct mandate from the people. She explained that, "there is a higher cause to change society...in a way that nourishes our future". With her decision, the initial criticisms hurled against Arroyo centered on her lack of word of honor. As predicted by SWS exit polls, Arroyo won the election by a margin of over one million votes against Poe. However, the congressional canvassing was quite contentious as opposition lawmakers in the National Board of Canvassers argued that there were many discrepancies in the election returns and that insinuations of cheating were raised. On June 23, 2004, Congress proclaimed Arroyo and Noli de Castro as president and vice president, respectively. On June 30, 2004, in a break with tradition, Arroyo first delivered her inaugural speech at the Quirino Grandstand in Manila. She then departed for Cebu City for her oath taking, the first time that a Philippine president took the oath of office outside of Luzon. 156

Allegations of cheating against Arroyo gained momentum one year after the May 2004 elections. In a press conference held on June 10, 2005, Samuel Ong, former deputy director of the National Bureau of Investigation (NBI) claimed to have audio recordings of wiretapped conversations between Arroyo and an official of the Commission on Elections (COMELEC). Virgilio Garcillano, a former COMELEC commissioner, would later be identified as the official talking to Arroyo. According to Ong, the recordings allegedly proved that Arroyo ordered the rigging of the national elections for her to win by around one million votes against Poe. The recordings of Ong became known as the Hello Garci controversy and triggered massive protests against Arroyo. Key members of her cabinet resigned from their respective posts and urged Arroyo to do the same. On June 27, 2005, Arroyo admitted to inappropriately speaking to a COMELEC official, claiming it was a "lapse in judgement". She, however, denied influencing the outcome of the elections and declared that she won the elections fairly. Arroyo did not resign despite the pressures coming from various sectors of society. The Hello Garci controversy became the basis of the impeachment case filed against Arroyo in 2005. Attempts to impeach Arroyo failed later that year. Another impeachment case was filed against Arroyo in 2006 but was also defeated at the House of Representatives. In October 2007, lawyer Alan Paguia filed an impeachment complaint against Arroyo in connection with the issue of bribery. Paguia's complaint was based on the revelation of Pampanga GovernorEd Panlilio that various governors received half a million pesos from Malacaang. The impeachment case, as of the middle of October 2007, has already been referred to the House of Representatives Committee on Justice. In November 2009, Arroyo formally declared her intention to run for a seat in the House of Representatives representing the 2nd District ofPampanga, making her the 157

second Philippine President after Jose P. Laurel to pursue a lower office after the expiration of their presidency. A petition seeking to disqualify Arroyo from the race was dismissed by the Comelec for lack of merit, a decision which was later affirmed by the Supreme Court. With little serious competition, she was elected to congress in May 2010 with a landslide victory. After receiving final military honors at the inauguration ceremony of incoming President Benigno Aquino III, she headed straight to Pampanga for her own oath-taking as congresswoman. Despite being considered the strongest contender for Speaker of the House, Arroyo declined to seek the position, hoping instead to take on a role similar to Sonia Gandhi, who was influential as merely the head of her party. On her first day as a lawmaker, Arroyo and her son Dato filed a resolution calling for Congress to call a constitutional convention to propose amendments to the existing constitution. Hospital Arrest. Arroyo was arrested on November 18, 2011 after a Pasay court issued a warrant of arrest against her, following the filing of a complaint for electoral sabotage by the Commission on Elections. The arrest warrant was served at a St. Luke's Medical Center at Taguig where Arroyo had been confined. Days earlier, the Supreme Court had issued a Resolution enjoining attempts by the Department of Justice to prevent her departure from the Philippines to seek medical treatment overseas. She was transferred to the Veterans Memorial Medical Center in Quezon City on December 9, 2011. Arroyo was released from hospital arrest on bail on July 25, 2012. On October 29, 2012, she refused to enter any plea on charges she misused $8.8 million in state lottery funds during her term in office.

Advocacy 158

The 10-point agenda outlined by Macapagal-Arroyo during her inaugural address last June 30, 2001: 1. I shall have created more than six million jobs, perhaps, even 10 million jobs I shall have supported three million entrepreneurs by giving them loans and helping them become good managers I shall have developed one million hectares, if possible two million of agribusiness land by making them productive and transporting their products to the markets efficiently. 2. Everyone of school age will be in school in an uncrowded classroom, in surroundings conducive to learning. Hangad kong makapasok sa eskuwela ang bawat bata. Mayroong sapat na lugar sa silid-aralan at may computer sa bawat aralan. (I wish for all children to be able to go to school. With enough classroom and computers at every school). 3. I shall have balanced the budget by collecting the right revenues and spending on the right things. 4. The network of transport and digital infrastructure on which my government embarked in the last three years will have linked the entire country. 5. Power and water will be regularly provided to all barangays (villages). 6. Metro Manila will be decongested with economic activity growing and spreading to new centers of government, business and community in Luzon, in the Visayas and in Mindanao. 7. The Subic-Clark corridor will be the most competitive international service and logistic center in the Southeast Asian Region. 8. Elections will no longer raise a single doubt about their integrity. The electoral process will be completely computerized.

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9. Peace will have come to Mindanao. All insurgence shall have turned their swords into plowshares. They will have become so absorbed into one society that the struggles of the past will be just a stuff of legend. 10. The divisive issues generated by EDSA I, II and III will also be just memories shared by friends from every side in those upheavals Only the lessons of unity, courage and a just closure left alive in their hearts. Restoring Political Stability and Building New Politics. President Arroyo wanted to resolve the political crisis through restoring the confidence of the people in the government through: Making a Selection Committee to recruit a Cabinet team who is committed to the values of the administration Establishing partnerships with the civil society by involving people in governance. Opening up peace initiatives to address threats specifically regarding the Muslim rebels to make them obey the law and list them as soldiers in the war against poverty. Restoring the rule of law in order to fight crimes such as smuggling, kidnapping, and corruption. Building High Standards of Morality and Performance These are the foundations of good governance. Implementing anti-corruption programs starting with the Administrative Order No.1 which forbids the relatives and top officials of the president to form contracts with the government. Making a new Anti-Graft Commission which will promote integrity among the officials and presidential appointees.

160

Promote Economic Revival through Social Equity Implementing a monetary policy in order to keep the inflation rate low while providing liquidity for growth. Create new micro-financing guidelines so that loans may be more available to the poor. Banking reforms to promote transparency, enhanced competition, financial soundness and modernization with the help of expanded foreign participation in domestic banks. By joining hands with business to strengthen information and communications technology (ICT) while encouraging rural industries. Battle of the Budget The Anti-Poverty Strategy The anti-poverty strategy is based on these five programs namely asset distribution, human development services, protection from violence, more livelihood opportunities for the poor and greater participation in governance and social life. a.Asset Distribution Land for the landless Provide facilities for the poor by the improvement of the slums Provide financial assistance for the housing of OFWs, the employees with low salaries, and the AFP/PNP personnel Address housing problems through restructured home loans Spend 20 billion pesos to finance agricultural modernization to improve the productivity and salaries/incomes of farmers and fishermen.

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b. Human Development Services Improve health care and education services for the poor.

c. Protection from Violence Promote anti poverty programs to vulnerable groups including the children, women, elderly, disabled and refugees from conflicts by handing them the resources they need to improve their lives. Conduct entrepreneurial and livelihood seminars/talks/trainings for the rural workers, working women and union members. d. More Livelihood Opportunities Finance agricultural projects Provide employment assistance Provide 17,000 jobs through the 38.7 billion pesos worth of new investments. Finance and facilitate loans totaling 127 million pesos to improve the productivity of enterprises. DOMESTIC POLICIES Charter change In the presidents SONA, she said that the system of government needs fundamental change and the debate on Charter Change should start immediately. She initiated a movement to overthrow the present form of government and make it into a federal parliamentary-unicameral form of government. It still remains as a proposed policy because it is obviously not yet implemented In the last 2006, her House of Representatives planned to revise the constitution through the constituent assembly. Executive Order No. 464 and Calibrated Preemptive Response 162

Arroyo issued Executive Order No. 464 which states that demonstrations or otherwise known as rallies should have permits or they would be preemptively stopped.

Human Rights Killings were rampant during the Arroyo administration that is why independent commissions were assembled to investigate them. Arroyo promised to bring peace through the anti-terrorism legislation

Amnesty Proclamation 1377 President Arroyo signed the Amnesty Proclamation 1377 which is for the Communist Party of the Philippines and the New Peoples Army. The amnesty would cover up the crime of rebellion and all other crimes fighting for political beliefs but will not include the crimes against chastity, rape, torture, kidnapping for ransom, use and trafficking of illegal drugs and other crimes leading to personal ends which violate international law provided that they surrender/return their trust in the society. Estrada Pardon President Arroyo granted Former President Estrada pardon based on the recommendation of the Department f Justice Estrada was freed from his Tanay rest house on October 6.

Conversion Order (The Sumilao Farmers March) President Arroyo rescinded the conversion order on the 144 hectare lot in Sumilao, Bukidnon so that land owenership may be returned to 55 members of the Higainon tribe farmers

The order signed by Eduardo Ermita, the Executive Secretary indicates that: Wherefore premises considered and as recommended by DAR, the 163

petition for cancellation and/or revocation of the conversion order covering 144 hectares of landis hereby granted. Contributions/Achievements Achievements of former President Gloria Macapagal-Arroyo The House of Representatives has turned into a shooting gallery of sorts following the election of former President Gloria Macapagal-Arroyo to the Lower House. In recent days, many congress members have been trying their best to be as creative and vindictive as possible in verbally assaulting and berating the former President. The attacks have been so blunt that Arroyo has begun going to her office to go to work instead of staying on the floor where most at least those who attend the proceedings stay during the sessions. While it is unlikely that anything would be able to absolve Arroyo in the eyes of history of the crimes and offenses that she has committed against the Filipino people, the constitution and other stakeholders in the country, it would be a bit too extreme to suggest that nothing good came out of the past nine years. Despite the apparent corruption of the Marcos regime that lasted twenty years, a lot of people still say that life then was better compared to now. Sure, the degree of freedom was severely curtailed during the de facto authoritarian rule by the dictator but at least government services such as education was still running at a very good level of efficiency. A drive down Roxas Boulevard and the surrounding alleys would have clearly shown just how posh the area looked back in the 1970s. Marcos was instrumental in the construction of various edifices in the scenic road along the coast of Manila Bay. The Cultural Center of the Philippines still stands proud as one of the most prestigious performing venues in the country. Even the underutilized buildings like the Folk Arts Theater and the former Film Center still have the imposing and impressive faade that echo to a time of greater opulence and global prominence. And best of all unlike 164

virtually all politicians today Marcos has never found it necessary to put his name on the buildings. Thats quite refreshing considering every school, arch and traffic sign now bears the name of a barangay captain, mayor, governor and congressmen. Each State of the Nation Address (SONA) that former President Arroyo has had the privilege of delivering, she has been boldly proclaiming the great achievements of her administration. People have always been wary of the flowery words of Arroyo. No matter how positive economic indicators have been, most Filipinos have been concerned at just how little of the positive figures trickle down to the poorest citizens. While numbers have been good to look at for the economists and market analysts who peer into the figures show a strengthening economy, the quality of life of the average Filipino has not improved. Here are the achievements of the Arroyo administration that may help what many Filipinos consider to be a corrupt and incompetent regime: 1. The Strong Republic Nautical Highway During the earlier part of former President Arroyos term, the RoRo (roll-on, rolloff) network of ships and barges that link the highly fragmented islands of the Philippines was a prominent talking point in the presidents speeches. The ships have always been there and the geographic challenges but the supposed efforts of the president have helped in stream lining the network. Many of the most populous cities and provinces outside of Luzon are located in the Visayas which is essentially a set of nearby islands unlike the relatively large land masses of Luzon and Mindanao. The project has allowed the nation to be more connected and has allowed for the greater connectivity in terms of trade and commerce; and to certain extend tourism. Thanks to the nautical highway, it is now possible to take a bus from Cubao that goes all the way to Panay Island or even Davao City one of the most southernmost urban centers in the country. 165

Despite the reach and scale of the nautical highway, it is still not something that is being used by a vast chunk of the population. It has been useful to certain demographics but relative to the growing population of the Philippines, its not something that touches the lives of many struggling Filipinos. The improvement in the regional businesses could help bolster the local commerce that could in turn have an indirect effect in job generation and increased chances of gainful employment. 2. Job creation Arroyo has always had a mantra of creating one million jobs for Filipinos. The creation of jobs is done through the infusion of fresh capital in the form investments. Arroyo has gone on many international trips to secure the support of various companies and businessmen by making the country seem palatable and a worthy venue for their next business ventures. All the jobs generated in a country during the course of a presidency would be reflected on the statistics of the country whether or not the head of state did something to actually increase the number. The working assumption is at the very least, the decisions and general housekeeping strategies contribute to having a business climate that is conducive to building the confidence of investors. This is a fair assessment even if there are government agencies like Department of Trade and Industry (DTI) and National Economic Development Authority (NEDA) that are devoted to these goals and objectives. The president is the person who appointed people to these posts and by extension as the head of state, the successes of these cabinet members would also have to have an effect on the president. This is only a fair trade off since the failures of the cabinet members and the president to increase the number of jobs and keep the unemployment rates stable is to also reflect negatively on the chief executive. 166

In the case of Arroyo, various industries managed to have a boom during the last nine years. While some of the businesses have indeed taken a hit due to the global financial crisis and the golden era of outsourcing seems to be tailing off, the Philippines did get a lot of benefits from the many companies who have decided to set up shop in the country based on the promise of the Filipinos great technical skills and customer relation abilities. Whether you think these types of jobs are good in terms of forwarding the development of individuals is up for debate. 3. Conventional infrastructure The Arroyo regime has also ushered in greater gains in terms of infrastructure in the country. In her administration, we have seen the emergence of many domestic and international airports like the ones in Bacolod and Clark which the former president ended up naming after her late and former President Diosdado Macapagal. Gloria may not have been the visionaries that Ferdinand and Imelda were during the 70s with their goals of making world-class establishments and buildings but GMA has certainly tried her best to connect and interlink the various major towns in the country. The road conditions in between the farms and the actual market places were farmers could peddle their goods have always been a key talking point in various stump speeches of political candidates and government officials and Gloria seems to have taken this to heart. It may not have been perfect, but she certainly tried. No road in the country better encapsulates this dedication to interconnection than the Halsema Highway that traverses the heart of the Cordillera region. This is an important passageway that connects the western gate to the mountainous Cordillera Administrative Region (CAR) Baguio City with the other towns to the east in the provinces of Mountain Province and Ifugao; and to the north to the provinces of Abra, Apayao and Kalinga. 167

While there arent really a lot of people living in CAR, the area serves an important role in terms of fulfilling the produce requirements of the country. The cool climate in the Cordilleras makes it suitable for growing vegetables. The Halsema Highway has always been a road that has heavily traveled by trucks and buses that shuttle goods and people across the Cordilleras. Despite the considerable traffic that it gets, it has always been at a relatively poor condition. The road has always been in a state of disrepair and back in the 1990s there were even parts of the highway that werent even wide enough to handle two vehicles at the same time. The sides of the highway didnt even have barriers to protect motorists from falling off a ravine thats around a hundred feet off the ravine. The geographic location of the road makes it very hard to be repaired by the DPWH. With narrow roads, it is very challenging to bring heavy machinery and other land movers to the area. The road itself was also carved precariously along jagged mountainsides that make rockslides and landslides an everyday occurrence. Typhoon Pepeng (International name: Parma) cause devastation last year when the typhoon lingered for over a week on Northern Luzon. The heavy rains caused a lot of landslides that isolated various towns along the Halsema to traffic. Buses that used to have seven to eight trips a day were limited to just two after the travel time lengthened to almost twice as long immediately after the disaster. Surprisingly, the repairs on Halsema happened faster than the repairs on Kennon Road. The highway took less time to clear compared to the number of days that it required to reconnect the city of Baguio to the rest of the country. This allowed for the speedy arrival of relief to the towns along the Halsema the Benguet towns of La Trinidad, Natubleng, Atok and Buguias as well as the Mt. Province municipalities of Bauko, Sabangan and Sagada. 168

The Arroyo administration also saw the construction of various strategically placed expressways in Southern and Central Luzon. The Star Tollway that cuts through the provinces of Laguna and Batangas connected the existing South Luzon Expressway (SLEX) that served as the lifeline of Southern Luzon to Manila. The Star Tollway allowed for the creation of a direct link from Manila to the busy sea port of Batangas city. The port of Batangas has traditionally served as an important jump off point for human traffic and goods to Mindoro, Western Visayas and even the island of Palawan. These developments bring about a very interesting question however should the President take credit for the constructed infrastructure during his or her administration considering that the factors that affect construction like the

conceptualization, execution and maintenance of the infrastructure are things that are largely out of the Presidents hands at least indirectly. While it would be fair to say that the Philippines has never been more interconnected geographically in its history thanks to new nautical routes, expressways and new airports, it is also important to note that that development is to be expected unless there is some sort of fortuitous event that destroys the already existing infrastructure in the country like a natural disaster for instance. Yes, Gloria Arroyo did make the country develop to a level that made it easier to travel from one place to another in support of her Super Regions idea that was revealed in a past State of the Nation (SONA) address but that was exactly what was expected of her.

4. Holiday Economics The typical Filipino worker or student would probably remember the Arroyo policy of moving holidays around for the sake of boosting local tourism to be the one shining example of the former presidents contribution for the betterment of society. Thanks to Glorias insistence that the holidays be moved to a Monday or a Friday to allow for a 169

three-day weekend, many students and employees have been able to get a day of rest while a good number of Filipinos also used the opportunity to travel. While the tourism numbers for the Philippines still pale in comparison with the rest of Southeast Asia, the Holiday Economics policy sure seems to have put Filipinos in the mood to travel. It probably is one of the few things that GMA has done that the new President Noynoy Aquino would be keen on continuing. Despite the glowing reviews of the average person regarding the holiday economics concept, this has put a strain on business since the holiday status of certain dates obliges employers to double the salary of their employees. This is probably one of the less visible effects of the holiday economics concept. 5. The relatively peaceful and orderly elections While there are still questions of electoral fraud and whether or not automation should be used again in future elections, it seems clear that the nation was more or less sold on the fact that the 2010 elections were largely cleaner than the controversial 2004 elections. Preliminary results showing the apparent big lead of Aquino over his rivals made it clear that he was indeed on his way to victory the expected result of many Filipinos due to what the surveys were indicating a few days before the actual polls. The vice-presidential race was a lot closer but that was also predicted by the people who did the surveys during the lead up to the election. Mar Roxas has already filed his electoral protest to the Electoral Tribunal and only time will tell if the case would even prosper at this level. It would be an uphill climb for Roxas since he has to prove that there was widespread fraud during the elections that has led to his loss. He would be treading a very thin line between proving the fault and fraudulent actions done during the election by his opponent and opponents supporters without casting to doubt the legitimacy of Aquinos victory. 170

Lets face it; none of these things would probably be the long standing impression that people would have when it comes to what the Arroyo administration did during the nine year window that it had to make changes in the country. Yes, there were achievements; but the man on the street would probably remember the less unsavory details of the regime. Corruption and the image of a corrupt government has always hounded Arroyo for the entirety of the last nine years despite being whisked into power by people who detested the criminal practices of former President Joseph Erap Estrada. The very controversial victory that allowed Arroyo to extend her term in 2004 would also come into mind. People still remember how the Hello Garci scandal was kept under wraps and the Philippines continues to remain in the dark as to how such a manipulation of the electoral results were executed by high ranking officials of the Commission on Elections (COMELEC). And then there were also deals that clearly put taxpayers on the losing end. The deal with Chinese company ZTE, the wrongful utilization of the fertilizer fund, the expensive road projects and other excesses by the government such as the dinner at Le Cirque would probably go down as one of the more iconic reminders of just how ostentatious spending got during the Arroyo Era.

Most important of all, the Arroyo administration would be remembered for the deaths of many journalists and other individuals who were felled by extra-judicial killings and enforced disappearances. There has been a culture of impunity that has the average Filipino feel helpless against the abuses and the excesses of the Arroyo administration and while some of the offenses were terribly shocking, people have chosen to keep mum about it and just wait it out until the new administration came 171

around. Changing this mindset of passive observance would be one of the biggest challenges that the Aquino administration would have to change. Crises The primary problems during Arroyos Administration were: Killings There have been more than 840 killings in the Philippines since President Gloria Macapagal Arroyo came to power. One of the major problems of the Philippines are the arbitrary, unlawful and extrajudicial killings which includes the death of journalists. More than half of the journalists who were killed after Marcos time were killed during the Arroyo administration. Only in three cases of killings were the killers been convicted but no mastermind was brought to court. The Philippines is now considered as the second most dangerous country to practice journalism next to Iraq. Even though there are intense efforts of the government to investigate and prosecute the cases of killings, many cases were still unresolved and a lot of them are still not punished.

Corruption Corruption scandals during the Arroyo Administration in the last seven years have cost the Filipinos around 7.3 billion pesos. With at least six corruption cases so far, President Arroyo has now been considered the most corrupt president in the Philippines.

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Corruption has greatly benefited the Arroyo Administration while it continues to worsen the condition of the Philippines specifically contribute more to poverty.

Corruption is a problem in all the institutions of the Philippines including the criminal justice system specifically the police, prosecutorial and judicial organs.

Budget Mismanagement Education, health, and public infrastructure were not given much priority even though there were large increases in the national budget. The president relied on reenacted budget; none of the proposed regular budgets were approved on time. In three of the nine years as president, she ran the government without an approved budget. Poverty Poverty is most rampant in the rural areas of the Philippines. Even though there is a share of poverty in the National Capital Region, the rate of poverty in rural areas than urban areas is still a lot higher. The rural poor are the unemployed or self-employed in agriculture or only casual labor who are landless. Poverty has worsened because of high inflation and unemployment. The Philippines has not yet surpassed poverty unlike neighboring countries like Vietnam, Thailand, and Indonesia who are rapidly reducing poverty at present.

Unemployment President Arroyo promised to create 10 million jobs from 2004-2010 but didnt reach this target. A lot of decent jobs in the manufacturing sector disappeared and more less secure jobs emerged.

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Since unemployment, poverty and hunger go together, this just shows the failure of the Philippine social-protection program who doesnt provide enough protection for the less fortunate and unemployed. All these three have worsened under the Arroyo Administration. The issues and controversies faced by President Arroyo were the following: Hello Garci Controversy (June 2005 Present). The Hello Garci

Controversy is about wiretapped recordings of Gloria Macapagal Arroyos conversations with COMELEC Commissioner Virgilio Garcilliano. The conversations was about rigging or cheating the 2004 national elections. Former NBI Deputy Director Samuel Ong released the wiretapped tapes; he also claimed that he had the mother of all tapes which was released a few days later. The National Telecommunications Commission initially banned the playing of the tapes in the media, and threatened that any media group who plays the tapes will be forced to close. The tape was then allowed by the Supreme Court to be aired by the media with a vote of 9 6, this was against the NTCs decision. In the tape a woman who sounds like Gloria Macapagal Arroyo was talking to Virgilio Garci Garcilliano about by how many votes she would win in her run for the presidency. In the conversation she asked if she would win by a million votes and Garci replied that she will; coincidentally or suspiciously she did win by over a million votes in the 2004 presidential elections.

GMA admitted that she was the woman in the wiretapped conversations but said that she only talked to Garci after the counting has been done. She also aired on national television her apology to the public for her lapse in judgement, this act was

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supposed to reduce the tensions the issue has created however this backfired and it created more tensions and more calls for her to step down. Virgilio Garcillianos whereabouts were unknown right after the Hello Garci tapes came out. There were even some rumors that he was able to escape the country. 5 Months later he resurfaced and admitted that he was the one talking to GMA in the tapes but the conversation took place after the counting of votes had been done. He also denied that GMA instructed him to cheat in the 2004 national elections. The issue created a lot of tension and anger in the public. Thousands went to the street to call for GMA to step down. There was even an attempt to create another People Power, this failed however due to the lack of protestors that attended the peaceful gathering. GMA survived the storm; this issue was the biggest issue that threatened her presidency. Until now the issue has not yet been solved, and no one has been punished. Oakwood Mutiny (July 27, 2003). A group composing of more than 300 fully armed soldiers took over Oakwood Premier in Ayala, Makati City. The soldiers were led by Navy Ltsg. Antonio Trillanes IV, Army Capt. Gerardo Gambala, Army Capt. Milo Maestrecampo, Navy Ltsg. James Layug and Marine Capt. Gary Alejano. The group called themselves the new katipuneros but they were dubbed y the media as the magdalo soldiers. They claim that the taking over of the Oakwood Premier in Makati was spontaneous, and that their goal was only to be able to air their grievances and complaints about the corruption in the military and in the government. They also stated that the saw signs that GMA was going to declare martial law. One of the accusations made by the soldiers was that the Arroyo administration was selling arms and ammunitions to the enemy forces. These enemy forces include the MILF and the Abu Sayyaf. Also they claim that Arroyo issued the order to bomb Davao City so that Arroyo would be able to ask the United States of America for anti-terrorist 175

support. Arroyo also planned to bomb several areas in Metro Manila so that she could declare martial law. Some of the grievances include general cases like the corruption of the government and its officials, low salaries of soldiers and the difference of salaries between the AFP soldiers and the Air Force Pilots, insufficient supply of medicines in the army and the powerful comptroller family who is enjoying promotions and positions and are manipulating funds and that the government funds for the soldiers never or seldom reach them. The bloodless mutiny ended after 18 hours. The soldiers surrendered as they failed to rally support from the public. All the 300 soldiers were arrested and charged in the general court martial. On September 24, 2004 the soldiers apologized to Gloria Macapagal Arroyo and took back the accusations against top AFP officials. Currently majority of the soldiers have been released and some soldiers have escaped military custody. Proclamation 1017 (February 24, 2006). I Gloria Macapagal-Arroyo, President of the Republic of the Philippines and Commander-in-Chief of the Armed Forces of the Philippines, by virtue of the powers vested upon me by Section 18, Article 7 of the Philippine Constitution which states that: The Presidentwhenever it becomes necessary,may call out (the) armed forces to prevent or suppressrebellion, and in my capacity as their Commander-in-Chief, do hereby command the Armed Forces of the Philippines, to maintain law and order throughout the Philippines, prevent or suppress all forms of lawless violence as well any act of insurrection or rebellion and to enforce obedience to all the laws and to all decrees, orders and regulations promulgated by me personally or upon my direction; and as provided in Section 17, Article 12 of the Constitution do hereby declare a State of National Emergency. 176

On February 24, 2006, President Gloria Macapagal Arroyo used her emergency powers and issued Proclamation 1017. The proclamation was called a state of national emergency and was similar to Martial Law primarily because she will be able to order arrests without warrants. The proclamation came after the Armed Forces of the Philippines received reports that some officials of the armed forces will announce their withdrawal of support from GMA during the anniversary of the People Power Edsa 1 Revolution. To prevent this GMA issued the proclamation to ensure that there will be no rebellion or violent coup attempts. AFP Chief Generoso Sanga revealed that Danilo Lim, one of the commanders of an elite force in the AFP was the one planning to withdraw his support of GMA. Lim then was relieved of his port and was placed under Sangas custody. Police also suspended all gun carrying licenses and did not allow the public to carry weapons. The next day, police raided offices of the newspaper Daily tribune and also sent armed men in civilian clothing to go around the offices of Abante a tabloid newspaper. The military was also sent to surround the offices of ABS-CBN and GMA Network. The government claimed that they were only protecting these establishments from potential takeovers from destabilizers. 16 people were arrested and charged with rebellion, these people included Bayan Muna Reps. Satur Ocampo, Teddy Casio and Joel Virador of Bayan Muna, Anakpawis Reps. Beltran and Rafael Mariano, and Gabriela Rep. Liza Maza.

Former President Cory Aquino was allowed to have a rally in Ayala but the rally was dispersed right after Cory Aquino left. The proclamation lasted for a week, after this President Gloria Macapagal Arroyo lifted the proclamation. Petitions questioning the legality of the proclamation were raised by a number of groups and people. A few months later the Supreme Court declared that 177

the proclamation was indeed legal however the acts done in implementing the proclamation were not. NBN-ZTE Controversy (April 2007). The NBN-ZTE controversy is about a deal between the Philippines and XTE Corporation, a company in china. The deal was worth $329.59 Million and was aimed at improving the communication capabilities of the Philippines. On August 29, 2007, Nueva Vizcaya Rep. Carlos Padilla, disclosed on his privilege speech that COMELEC chairman Benjamin Abalos has been going to China not just for leisure but to broker a deal with the XTE Corporation. He also said that there were two other corporations willing to do the job for the Philippines at lower prices but was turned down. These two other private companies offered cheaper prices than ZTE Corporation. Abalos denied these accusations but also admitted that he knew some of the officials in ZTE Corporation. A few days later on September 10, 2007, Jose de Venecia III issued an affidavit stating that he was with Abalos in china and heard Ablaos demanding money from the officials of the ZTE Corporation. The Supreme Court issued a temporary restraining order preventing the contract from pushing through.

On September 18, 2007, while testifying to in the senate, Jose de Venecia III revealed that the First Gentleman Mike Arroyo told him to back off from pursuing the deal. A few days later President Gloria Macapagal Arroyo suspended the deal because of political criticisms. She also claimed that the alleged corruption was investigated and that the reports after the investigation were uncorroborated. During the hearings the Senate ordered Rodolfo Jun Lozada, who was the President of Philippine Forest Corporation and was said to have knowledge that the deal was overpriced, to attend the senate hearing. Lozada did not attend the hearing and was able to fly out of the country 2 hours before the start of the hearing. The Senate then 178

ordered the arrest of Jun Lozada. On February 5, 2008, Jun Lozada arrived at the NAIA international airport and was taken away by unidentified men. Lozada claims that the men blindfolded him and was talking about where he was supposed to be killed. This was prevented however since text messages from his family to media revealed that there was going to be something bad that was to happen to Jun Lozada. The next day the PNP admits that Jun Lozada was in their custody. On February 7, 2008, Jun Lozada appeared in a pre-dawn conference in La Salle Greenhills and narrated his experience on how he was taken away against his will. In the following weeks Jun Lozada testified in the senate, fearing for his life. He said that Abalos threatened to have him killed and that when he left the NBN project the project was priced at $262 million but it ballooned to $329.5 Million when it was approved. The hearings were conducted; with Lozada as the whistleblower and a lot of government officials were implicated and involved in the issue. This included First Gentleman Mike Arroyo, Former Mayor Lito Atienza and Former COMELEC chairman Benjamin Abalos. Until now the controversy never reached a conclusion and truth and justice has yet to be achieved. Gloria Arroyos Expensive Dinners. The public began noticing the expensive dinners that President Macapagal Arroyo was having when an article from the New York Post reported that GMA and her entourage to the US dined in the famous Le Cirque in New York and spent $20,000 or almost 1 Million Pesos. The report said that GMA ordered several expensive bottles of wine which pushed the tab to $20,000. Considering the economic downturn in the Philippines and the continuous increase in unemployment and poverty ratings, the expensive dinner resulted into a lot of criticisms against GMA. Makati Mayor Jejomar Binay bashed GMA for her expensive dinner and said that $20,000 can already give 30,000 people 3 square meals in a day. He also noted that if GMA indeed used public funds to pay for the meal 179

then it should be deplorable. If she used her own money to pay for the dinner then it is really insensitive to the millions of Filipinos who experience hunger everyday in the Philippines. Bishops also criticized the expensive dinner and said that it was very imprudent and the public deserves an explanation and an apology. Then Press Secretary Cerge Remonde said that it was Romualdez that paid for the dinner however this was not believed by the public and called Cerge a certified liar. Cerge said that this dinner issue was only a way to anger the people and turn them against GMA, also to help ease the situation he ordered the financial statements regarding the trip to be shown to the public. After this issue several reports regarding a $15,000 dinner in Washington also came out. The issue then was never resolved and now only exists as a memory. State of Emergency On February 24, 2006, a plot to take over the government was uncovered by authorities, allegedly headed by Gen. Danilo Lim and other rightist military adventurists. General Lim and some of his men were arrested. To face the threat posed by enemies of the state, Arroyo issued Presidential Proclamation 1017 (PP 1017) and used it as basis in declaring a state of emergency throughout the Philippines. According to Arroyo, this declaration was done to quell the military rebellion, stop lawless violence, and promote peace and stability. PP 1017 also empowered the government to enforce warrantless arrests and take over strategic private utilities companies. On February 25, 2006, the police raided the office of the Daily Tribune, a newspaper known as a critic of the Arroyo administration. The government then issued a journalism guidelines to address the threat posed by critics in the media. Presidential Management Staff chief Michael Defensor said that the guidelines were necessary in order to cope with the emergency situation. 180

The state of emergency existed for about one week with the purpose of curbing further violence, illegal rallies, and public disturbance throughout the Philippines. The police and the military dispersed demonstrators and protesters, especially those along Epifanio de los Santos Avenue (EDSA). Aside from General Lim, prominent personalities were also arrested in connection with their alleged participation in the attempt to overthrow the government. Among those arrested were: Col. Ariel Querubn leader of a group of Philippine Marines who engaged the government in a political stand-off at Fort Bonifacio on February 25, 2005 Randy David led a protest rally without securing the necessary permit Crispin Beltran party-list representative of Anakpawis charged with inciting to sedition and rebellion Batasan Five party-list representatives charged with rebellion and were placed under the custody of the House of Representatives; Bayan Muna's Teodoro Casio, Satur Ocampo, and Joel Virador; Gabriela's Liza Maza, and Anakpawis' Rafael Mariano PP 1017 was lifted on March 3, 2006 but members of the opposition, private lawyers, and concerned citizens challenged its constitutionality before the Supreme Court

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http://en.wikipedia.org/wiki/List_of_Presidents_of_the_Philippines http://bloomspresidents.wordpress.com/about/ tl.wikipedia.org/wiki/ asianhistory.about.com www.bookrags.com/biography www.biography.com People 181

www.imdb.com/name/nm1300894/ http://global.britannica.com/EBchecked/topic/364302/ http://malacanang.gov.ph/presidents/ www.angelfire.com www.nndb.com www.google.com.ph

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