Philippines

The Philippine Islands became a Spanish colony during the 16th century; they were ceded to the US in 1898 following the Spanish-American War. In 1935 the Philippines became a self-governing commonwealth. Manuel QUEZON was elected president and was tasked with preparing the country for independence after a 10-year transition. In 1942 the islands fell under Japanese occupation during World War II, and US forces and Filipinos fought together during 1944-45 to regain control.

On 4 July 1946 the Republic of the Philippines attained its independence. A 21-year rule by Ferdinand MARCOS ended in 1986, when a "people power" movement in Manila ("EDSA 1") forced him into exile and installed Corazon AQUINO as president. Her presidency was hampered by several coup attempts that prevented a return to full political stability and economic development. Fidel RAMOS was elected president in 1992. His administration was marked by increased stability and by progress on economic reforms.

In 1992, the US closed its last military bases on the islands. Joseph ESTRADA was elected president in 1998. He was succeeded by his vice-president, Gloria MACAPAGAL-ARROYO, in January 2001 after ESTRADA's stormy impeachment trial on corruption charges broke down and another "people power" movement ("EDSA 2") demanded his resignation. MACAPAGAL-ARROYO was elected to a six-year term as president in May 2004. Her presidency was marred by several corruption allegations, but the Philippine economy was one of the few to avoid contraction following the 2008 global financial crisis, expanding each year of her administration. Benigno AQUINO III was elected to a six-year term as president in May 2010 and was succeeded by Rodrigo DUTERTE in May 2016.

The Philippine Government faces threats from several groups, some of which are on the US Government's Foreign Terrorist Organization list. Manila has waged a decades-long struggle against ethnic Moro insurgencies in the southern Philippines, which led to a peace accord with the Moro National Liberation Front and a separate agreement with a break away faction, the Moro Islamic Liberation Front. The decades-long Maoist-inspired New People's Army insurgency also operates through much of the country.

In 2017, Philippine armed forces battled an ISIS-East Asia siege in Marawi City, driving DUTERTE to declare martial law in the region. The Philippines faces increased tension with China over disputed territorial and maritime claims in the South China Sea.

The Philippines is an ethnically diverse country that is in the early stages of demographic transition. Its fertility rate has dropped steadily since the 1950s. The decline was more rapid after the introduction of a national population program in the 1970s in large part due to the increased use of modern contraceptive methods, but fertility has decreased more slowly in recent years.

The country’s total fertility rate (TFR) – the average number of births per woman – dropped below 5 in the 1980s, below 4 in the 1990s, and below 3 in the 2010s. TFR continues to be above replacement level at 2.9 and even higher among the poor, rural residents, and the less-educated.

Significant reasons for elevated TFR are the desire for more than two children, in part because children are a means of financial assistance and security for parents as they age, particularly among the poor.

The Philippines are the source of one of the world’s largest emigrant populations, much of which consists of legal temporary workers known as Overseas Foreign Workers or OFWs. As of 2019, there were 2.2 million OFWs. They work in a wide array of fields, most frequently in services (such as caregivers and domestic work), skilled trades, and construction but also in professional fields, including nursing and engineering.

OFWs most often migrate to Middle Eastern countries, but other popular destinations include Hong Kong, China, and Singapore, as well as employment on ships. Filipino seafarers make up 35-40% of the world’s seafarers, as of 2014. Women OFWs, who work primarily in domestic services and entertainment, have outnumbered men since 1992.

Migration and remittances have been a feature of Philippine culture for decades. The government has encouraged and facilitated emigration, regulating recruitment agencies and adopting legislation to protect the rights of migrant workers. Filipinos began emigrating to the US and Hawaii early in the 20 th century.

In 1934, US legislation limited Filipinos to 50 visas per year except during labor shortages, causing emigration to plummet. It was not until the 1960s, when the US and other destination countries – Canada, Australia, and New Zealand – loosened their immigration policies, that Filipino emigration expanded and diversified.

The government implemented an overseas employment program in the 1970s, promoting Filipino labor to Gulf countries needing more workers for their oil industries. Filipino emigration increased rapidly. The government had intended for international migration to be temporary, but a lack of jobs and poor wages domestically, the ongoing demand for workers in the Gulf countries, and new labor markets in Asia continue to spur Philippine emigration.

party to:

Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Comprehensive Nuclear Test Ban, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping-London Convention, Marine Dumping-London Protocol, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 2006, Wetlands

signed, but not ratified:

none of the selected agreements

description:

bicameral Congress or Kongreso consists of:; Senate or Senado (24 seats; members directly elected in multi-seat constituencies by majority vote; members serve 6-year terms with one-half of the membership renewed every 3 years); House of Representatives or Kapulungan Ng Mga Kinatawan (316 seats; 253 members directly elected in single-seat constituencies by simple majority vote and 63 representing minorities directly elected by party-list proportional representation vote; members serve 3-year terms)

elections:

Senate - elections last held on 9 May 2022 (next to be held in May 2025); House of Representatives - elections last held on 9 May 2022 (next to be held in May 2025)

election results:

• Senate - percent of vote by party - NA;
• seats by party - NPC 5, PDP-Laban 5, NP 4, other 5, independent 5;
• composition - men 17, women 7, percent of women 29%

;

• House of Representatives - percent of vote by party - PDP-Laban 22.7%, NP 13.7%, NUP 12.6%, NPC 11.7%, Lakas-CMD 9.4%,LP 3.8%, HNP 2.5%, other 19.6% independent 4%;
• seats by party - PDP-Laban 66, NP, NPC 35, NUP 33, Lakas-CMD 26, LP 10, HNP 6, other 35, independent 6, party-list 63;
• composition - men 193, women 123, percent of women 38.9%;
• note - total Congress percent of women 38.2%

chief of mission:

Ambassador Jose Manuel del Gallego ROMUALDEZ (since 29 November 2017)

chancery:

1600 Massachusetts Avenue NW, Washington, DC 20036

telephone:

[1] (202) 467-9300

FAX:

[1] (202) 328-7614

email address and website:

[email protected]; [email protected]

consulate(s) general:

Chicago, Honolulu, Los Angeles, New York, Saipan (Northern Mariana Islands), San Francisco, Tamuning (Guam)

name:

"Lupang Hinirang" (Chosen Land)

lyrics/music:

Jose PALMA (revised by Felipe PADILLA de Leon)/Julian FELIPE

note: music adopted 1898, original Spanish lyrics adopted 1899, Filipino (Tagalog) lyrics adopted 1956; although the original lyrics were written in Spanish,

later English and Filipino versions were created; today, only the Filipino version is used

The economy has been relatively resilient to global economic shocks due to less exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from about 10 million overseas Filipino workers and migrants, and a rapidly expanding services industry.

During 2017, the current account balance fell into the negative range, the first time since the 2008 global financial crisis, in part due to an ambitious new infrastructure spending program announced this year. However, international reserves remain at comfortable levels and the banking system is stable.

Efforts to improve tax administration and expenditures management have helped ease the Philippines' debt burden and tight fiscal situation. The Philippines received investment-grade credit ratings on its sovereign debt under the former AQUINO administration and has had little difficulty financing its budget deficits.

However, weak absorptive capacity and implementation bottlenecks have prevented the government from maximizing its expenditure plans. Although it has improved, the low tax-to-GDP ratio remains a constraint to supporting increasingly higher spending levels and sustaining high and inclusive growth over the longer term.

Economic growth has accelerated, averaging over 6% per year from 2011 to 2017, compared with 4.5% under the MACAPAGAL-ARROYO government; and competitiveness rankings have improved. Although 2017 saw a new record year for net foreign direct investment inflows, FDI to the Philippines has continued to lag regional peers, in part because the Philippine constitution and other laws limit foreign investment and restrict foreign ownership in important activities/sectors - such as land ownership and public utilities.

Although the economy grew at a rapid pace under the AQUINO government, challenges to achieving more inclusive growth remain. Wealth is concentrated in the hands of the rich. The unemployment rate declined from 7.3% to 5.7% between 2010 and 2017; while there has been some improvement, underemployment remains high at around 17% to 18% of the employed population.

At least 40% of the employed work in the informal sector. Poverty afflicts more than a fifth of the total population but is as high as 75% in some areas of the southern Philippines. More than 60% of the poor reside in rural areas, where the incidence of poverty (about 30%) is more severe - a challenge to raising rural farm and non-farm incomes.

Continued efforts are needed to improve governance, the judicial system, the regulatory environment, the infrastructure, and the overall ease of doing business.

2016 saw the election of President Rodrigo DUTERTE, who has pledged to make inclusive growth and poverty reduction his top priority. DUTERTE believes that illegal drug use, crime and corruption are key barriers to economic development. The administration wants to reduce the poverty rate to 17% and graduate the economy to upper-middle income status by the end of President DUTERTE’s term in 2022.

Key themes under the government’s Ten-Point Socioeconomic Agenda include continuity of macroeconomic policy, tax reform, higher investments in infrastructure and human capital development, and improving competitiveness and the overall ease of doing business. The administration sees infrastructure shortcomings as a key barrier to sustained economic growth and has pledged to spend $165 billion on infrastructure by 2022.

Although the final outcome has yet to be seen, the current administration is shepherding legislation for a comprehensive tax reform program to raise revenues for its ambitious infrastructure spending plan and to promote a more equitable and efficient tax system. However, the need to finance rehabilitation and reconstruction efforts in the southern region of Mindanao following the 2017 Marawi City siege may compete with other spending on infrastructure.

general assessment:

• the Covid-19 pandemic had a relatively minor impact on the Philippine’s telecom sector in 2020;
• subscriber numbers fell in some areas, but this was offset by strong growth in mobile data and broadband usage since a significant proportion of the population transitioned to working or studying from home;
• major investment programs covering LTE, 5G, and fiber broadband networks suffered slight delays due to holdups in supply chains, but activity has since ramped up in an attempt to complete the roll outs as per the original schedule;
• the major telecom operators had mixed financial results for the past year;
• overall, the number of mobile subscribers is expected to grow to 153 million by the end of 2021, with the penetration rate approaching 144%;
• the government remains keen, and committed, to seeing strong competition, growth, and service excellence in the telecom sector, so there is likely to be continued support (financially as well as through legislation such as enabling mobile tower sharing and number portability) to ensure that the sector remains viable for emerging players;
• the mobile sector will remain the Philippines’ primary market for telecommunications well into the future;
• the unique terrain and resulting challenges associated with accessing remote parts of the archipelago means that in many areas fixed networks are neither cost-effective nor logistically viable;
• the bulk of telecoms investment over the coming years will continue to be in 5G and 5G-enabled LTE networks;
• coverage of LTE and 5G networks extends to over 95% of the population, and for the vast majority of people mobile will likely remain their only platform for telecom services (2021)

domestic:

• telecommunications infrastructure includes the following platforms: fixed line, mobile cellular, cable TV, over-the-air TV, radio and (very small aperture terminal) VSAT, fiber-optic cable, and satellite for redundant international connectivity;
• fixed-line nearly 4 per 100 and mobile-cellular nearly 137 per 100 (2020)

international:

country code - 63; landing points for the NDTN, TGN-IA, AAG, PLCN, EAC-02C, DFON, SJC, APCN-2, SeaMeWe, Boracay-Palawan Submarine Cable System, Palawa-Illoilo Cable System, NDTN, SEA-US, SSSFOIP, ASE and JUPITAR submarine cables that together provide connectivity to the US, Southeast Asia, Asia, Europe, Africa, the Middle East, and Australia (2019)

note: the COVID-19 pandemic continues to have a significant impact on production and supply chains globally; since 2020, some aspects of the telecom sector have experienced a downturn, particularly in mobile device production; progress toward 5G implementation has resumed, as well as upgrades to infrastructure;

consumer spending on telecom services has increased due to the surge in demand for capacity and bandwidth; the crucial nature of telecom services as a tool for work and school from home is still evident, and the spike in this area has seen growth opportunities for development of new tools and increased services

Armed Forces of the Philippines (AFP):

Army, Navy (includes Marine Corps), Air Force (2021)

note 1: the Philippine Coast Guard is an armed and uniformed service under the Department of Transportation; it would be attached to the AFP in wartime;