ACHIEVEMENTS/ADVANTAGES

FERDINAND MARCOS’ ADMINISTRATION GLORIA ARROYO’S ADMINISTRATION

 Stabilization of government finance by  Economic growth in terms of gross
means of more effective collection of domestic product has averaged 4.6%
taxes, imposing new tax laws, and getting during the Arroyo presidency from 2001
loans from foreign banks and government. up to the end of 2005. This is higher than
 Greater production of rice by promoting previous recent presidents when
the cultivation of “miracle rice” and other compared to the 3.8% average of Aquino,
fast growing rice seeds, the construction of
3.7% average of Ramos, and 2.8% average
more irrigation systems, and giving
of Estrada.
financial and technical assistance to the
farmers.  Inflation during the Arroyo presidency has
 Building of more roads and bridges, been the lowest since 1986 averaging
schoolhouses, and other public works. The 2.5%.
Philippine National Railways was also  GDP grew by 5.4% in 2006, marking the
improved to foster land transportations. first time since the 1970’s with three
 Intensive drive against smuggling, crime consecutive years of growth over 5%.
syndicates, and the communist New  GDP increased by 6% in 2004, a 15-year
People’s Army. (NPA) high, and by 5% in 2005.
 Holding of the Manila Summit Conference  Growth in 2006 was fueled by increases
on October 24-25, 1966, attended by the electronics exports, growth in the
heads of state of Australia, South Korea,
outsourcing industry, and a 20% increase
New Zealand, Philippines, South Vietnam,
in remittances from overseas workers to
Thailand and the United States.
12.8 billion dollars and about 11% of GDP.
 To hasten the economic development,
President Marcos implemented a number  Arroyo’s foreign policy is anchored on
of economic programs. These programs building strong ties with the United
helped the country to enjoy the period of States, East Asian and Southeast Asian
economic growth I the mid-1970's up to Nation, and countries where overseas
the early 1980's. Filipino workers work and live. In 2007,
 The farmers were given technical and the Philippines was the host tom the 12th
financial aid and other incentives such as ASEAN Summit in Cebu City.
"price support". With the incentives given  The average inflation rate for 2009
to the farmers, the country's agricultural
was 3.2 percent compared with 9.3
sector grew. As a result, the Philippines
became self-sufficient in rice in 1976 and percent in 2008, and is projected at
 even became a rice exporter. 4.7 percent this year.
 To help finance a number of economic  Arroyo also commended the Bureau
development projects such as soil
of Internal Revenue (BIR) for
exploration, the establishment of
geothermal power plants, the Bataan surpassing collection targets.
Nuclear Plant, hydro-electric dams, the  She also cited the Agriculture
construction of more roads, bridges, department for generating one
irrigation systems and other expensive
million jobs.
infrastructure projects, the government
engaged in foreign borrowings.  The country’s poverty incidence slid
by three points to 30 percent in
 Foreign capital was invited to invest in 2003 from 2000, but escalated to
certain industrial projects. They were 32.9 percent in 2006 despite
offered incentives including tax exemption
privileges and the privilege of bringing out
economic growth, according to the
their profits in foreign currencies. One of National Statistical Coordination
the most important economic programs in Board (NSCB).
the 1980's was the KilusangKabuhayan at  The local currency jumped from a
Kaunlaran (KKK). This program was started
yearly average of P50.99 per dollar
in September 1981. Its aim was to
promote the economic development of in 2001 to P47.64 in 2009, central
the barangays by encouraging the bank and NSCB data showed.
barangay residents to engage in their own  Mrs. Arroyo also boasted of allotting
livelihood projects.
P100 million this year for education
 The government's efforts resulted in the
increase of the nation's economic growth and building 100,000 classrooms,
rate to an average of six percent to seven increasing the national achievement
percent from 1970 to 1980. The rate was rate to 55 percent from 44 percent.
only less than 5 percent in the previous  Government housing projects, she
decade. The Gross National Product of the
country (GNP) rose from P55 billion in
claimed, had benefited 300,000
1972 to P193 billion in 1980. families, including 90,000 dwellers
along railroads.
 Another major contributor to the  The land reform of the CARPER
economic growth of the country was the
which aimed to widen the scope of
tourism industry. The number of tourists
visiting the Philippine rose to one million
the land reform and to apply other
 by 1980 from less than 200,000 in previous method in the realization of the
years. The country earned at $500 million program that will distribute land to
a year from tourism. A big portion of the the landless farmers.
tourist group was composed of Filipino
balikbayans under the Ministry of
 The free enterprise that will
Tourism's Balikbayan Program which was encourage the capitalist to invest
launched in 1973. more in the country for the
development of trading.
 Another major source of economic growth  The social reform that will take care
of the country was the remittances of of the needs of the poor.
overseas Filipino workers. Thousands of
 To find opportunities for the
Filipino workers found employment in the
Middle East and in Singapore and unemployed
Hongkong. These overseas Filipino workers  Annual economic growth in the
not only helped ease the country's Philippines averaged 4.5% and
unemployment problem but also earned expanding every quarter of her
much-needed foreign exchange for the presidency. This is higher than her
Philippines. predecessors, Corazon Aquino
 KilusangKabuhayan at Kaunlaran
(3.8%), Fidel Ramos (3.7%), and
(Movement for Livelihood and Progress)
Joseph Estrada (3.7%).
was one of the important economic
programs in the 1980’s. It started in  The Philippine economy grew at its
September 1891. Its aim is to promote fastest pace in three decadesin
economic development of the barangays 2007, with real GDP growth
by encouraging the barangay residents to exceeding 7%.
engage in their own livelihood projects.  It was one of the few to avoid
The government’s efforts resulted in the contraction during the 2008 global
increase of the nation’s economic growth financial crisis, faring better than its
rate to an average of 6 percent to 7 regional peers due to minimal
percent from 1970 to 1980. The rate was exposure to troubled international
only less than 5% in the previous decade. securities, lower dependence on
The Gross National Product rose from P55 exports, relatively resilient domestic
billion in 1972 to P193 billion in 1980. consumption, large remittances
 Tourism rose, contributing to the from four to five million oversesas
economy’s growth. Most of these
Filipino workers and a growing
“tourists” were Filipino balikbayans who
 came under the Ministry of Tourism’s business process outsourcing
Balikbayan Program, launched in 1973. industry.
  Despite this growth, the poverty rate
remained stagnant due to a high
population growth rate and uneven
distribution of income.
 A controversial expanded value
added tax law, considered the
centerpiece of Arroyo
administration’s economic reform
agenda, was implemented in
November 2005, aiming to
complement revenue-raising efforts
that could plug the country’s large
budget deficit. It boosted confidence
in the government’s fiscal capacity
and helped to strengthen the
Philippine peso, making it East Asia’s
best performing currency in 2005-
2006. The peso strengthened by
nearly 20% in 2007, making it by far
Asia’s best performing currency for
the year, a fact attributed to a
combination of increased
remittances from OFWs and a strong
domestic economy.
 Arroyo also implemented a
controversial policy of holiday
economics, adjusting holidays to
form longer weekends with the
purpose of boosting domestic
tourism and allowing Filipinos more
time with families.