In all honesty, I actually do not care of what has happened in the Philippines on the years past my existence. But, having discussed and read some supplemental material about the Macroeconomic Development of the Philippines from almost past 40 years, it made me aware of how my Philippine history lessons actually have relevance to our nation’s economy then and now. Perhaps, this awareness has widened my understanding of the historical significance of those events, mainly the Marcos regime, assassination of Ninoy Aquino, among others. Of course, the significance is not only for me, but to the whole constituents of our nation as well.
Now, I am somehow enlightened as to why the Philippines is said to be buried in a heap of debt. I keep on hearing this description yet I really couldn’t explain. As said, history explains the present.
One of the most underscored and highlighted persons in Philippine history and macroeconomic development of the Philipiines for this matter is Ferdinand Marcos and his regime, which I could characterize as a period that is good at the start and terrible on the long run. I believe Marcos has truly these good intentions for the Philippines, taking into consideration his macroeconomic development strategic plans, i.e. the Green Revolution, Export Agriculture and forestry, and foreign borrowing. The vision was really good, brilliant I may say. But the execution went wrong along the way. This makes me really sad.
I’m not feeling angry with Marcos or anything. For all we know, he’s also not conscious that he’s doing the wrong thing. Like I said, for me has really good intentions. Maybe he just overlooked the process being very ambitious and mainly concentrating on the end goal. This is manifested through him declaring Proclamation No. 1081, effectively installing martial law in the Philippines, thus suspended civil rights and imposed military rule in the country. I credit him for his justification. He stressed that rebels must be impeded to uphold National Security. I think he just didn’t deal with the problem face on. He must’ve gone to the root of it. He must’ve solved the issue beyond the issue and not dealt with the manifestations of the problems.
Another thing I see that went wrong is him being very friendly. Well, “friendly” is a euphemism. It’s just on the process of the implementation of his macro-economic development strategies, he somehow has given most of the benefits to his cronies, people socially related with him. As a capitalist country, being under strict supervision and control of the government, it is but inevitable for this capitalists to be very powerful in the market to the point that they monopolize their respective industry. His cronies led the leading crops being exported during those times such as sugar, pineapples, coconuts, bananas etc. You see, instead of lifting up the Philippines as a whole, he just widened the gap between the rich and the poor. In fact, Poverty during the Marcos era deepened despite a modest increase in average national income. Additionally, income inequality increased.
Furthermore, I believe the main cause of the great amount of foreign debt of the Philippines is his move of loaning from other countries to finance government spending, aiming to push the economy up. I actually thought this as very risky if not extravagant, yet this really went well at first according to facts and figures. Expenditures on infrastructures have somehow succeeded in temporarily promoting tourism and economic growth. But, his being “friendly” surfaced again. According to Joseph Lim of the University of the Philippines, a businessman in 1981, a crony of Marcos, fled the country with $80 million worth of debt in international and local banks. Because of the gravity of the parties involved, the Central Bank, together with national banks like Philippine National Bank and Development Bank of the Philippines, formed a bailout package and rescued the banks and companies implicated, which paved way for “the expansion of the money supply from 1980 to 1983.” The outflow of capital, termed “capital flight", contributed to the foreign exchange depletion. Eventually, lavishness led the Philippines to default. Hello to debts for the Philippines.
It’s just very saddening that a President of one’s country would use the money of the public for the benefit of the private ones. In this move, I won’t credit him as having good intentions. Didn’t he learn from his Taxation class that taxes are exclusively for public use? I guess he became drowned by the thought that he is the president of the country, and he can help his “friends” in need because of this power. One word, “Pride.”
For me the main lesson here is for leaders to be good followers, not of their self-interests, but of the interests of his constituents as a whole. Every action that’ll be made must be in accordance to morality, ethics, and the value of beneficence.
Marcos regime is just a proof that a country democratic as we are, must be by the people, of the people and by the people. A move such as cronyism, and by a dictator/president for this matter, won’t totally succeed in enhancing macroeconomic situations of a country.
The good news is that these ripples of Marcos’ faults are now being stopped. Kudos to the current administrations. It’s good to learn and understand things like this. Marcos taught us many lessons, this he did. There is hope for the Philippines. I’m certain that we Filipino’s won’t let history repeat itself.
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