History

The Philippines were populated by the furthest northeastern migration of the Indo-Malay peoples, and was also the furthest eastern area penetrated by Islam, which was brought by Arab traders and missionaries. The inhabitants were semi-nomadic and lived by hunting and fishing when the first Europeans arrived, led by Ferdinand Magellan, in 1521. Magellan was killed in a fight with the islanders.

Spanish colonial rule

Spain took possession in 1565, named the colony after Philip II, and Islam was largely replaced by Roman Catholicism. The Philippines served Spain economically, largely as an entrepôt for trade between China and the Spanish colonies of Latin America, and it was not until the latter half of the 19th century that Philippine products such as sugar, coffee, tobacco, and hemp began to enter world trade to any significant degree. The reactionary nature of Spain's colonial rule led to a series of armed nationalist revolts, culminating in the 1896 revolution.

The US takeover

The Filipinos, under the leadership of Andres Bonifacio and Emilio Aguinaldo, were on the verge of securing Philippine independence in 1898 when US forces entered the Philippines during the course of the Spanish-American War. Disregarding the legitimacy of the Aguinaldo government, the USA demanded and obtained the cession of the Philippines from Spain in December 1898 and went on the offensive against Aguinaldo's forces. The ensuing war, which lasted until 1901, was won by the Americans at a cost of some 200,000 Filipino lives (one-fifth of the population), most of them civilians; 4,000 US soldiers also died.

US colonial rule

The USA decided not to establish a colonial bureaucracy, and preferred to grant a large measure of autonomy to the Filipino estate-owning elite. Increasing self-government was granted from 1916 to 1935, although the US governor-general reserved the power of veto.

In the economic sphere, US trade laws (principally the Payne-Aldrich Tariff of 1909) insured that the economic development of the Philippines would be confined to agricultural export crops and mining, at the expense of manufacturing or industrialization on any meaningful scale.

During the depression of the 1930s the USA established a commonwealth government in the Philippines with the eventual promise of independence. This was done for internal domestic reasons, largely concerning the US sugar economy and the need to protect sizeable US investments in Cuba.

The Philippines in World War II

Plans for granting independence were disrupted by the advent of World War II and the Japanese occupation of the Philippines 1942-45. The Japanese attacked in December 1941 and in May 1942 the US forces defending the islands surrendered. A pro-Japanese puppet regime was established, in which many Filipino politicians participated. Guerrilla resistance movements were established both by pro-US Filipino officers, and by the communist-led Hukbalahap organization. US forces started the reconquest of the Philippines in October 1944. (For more details see World War II.)

The early years of independence

In 1946 independence was granted, but the USA insisted upon incorporating a number of economic limitations on Philippine national autonomy. These restrictions were incorporated in the 1946 Philippine Trade Act, which gave the Americans duty-free access to the Philippine market, control over the value of the peso, and special rights for the exploitation of Philippine natural resources. Lack of control over imports soon led to a balance-of-trade crisis as the country was flooded with imports it could not pay for. By 1949 the Philippine government was forced to impose import controls, a move reluctantly agreed to by the USA, which had the final veto right on the policy.

The onerous nature of the economic concessions to the USA, coupled with the sharp divisions between the estate-owning elite and an increasingly impoverished and dispossessed peasantry, gave rise to the Huk rebellion (1946-54), organized by the communist-led Hukbalahap, which had fought the Japanese throughout the occupation. The rebellion was eventually crushed by the combined US and Philippine forces.

Political and economic developments 1946-65

The first presidents of the independent Philippines were largely drawn from the islands' wealthy estate-owning elite. Two major political parties, the Liberals and the Nationalists, vied for political power in these years, the Liberals winning in the presidential elections of 1946, 1949, and 1961, the Nationalists winning in 1953, 1957, and 1965. There were five presidents up to 1965: Manuel Roxas (1946-48), Elpidio Quirino (1948-53), Ramon Magsaysay (1953-57), Carlos Garcia (1957-61), and Diosdado Macapagal (1961-65).

During the 13 years of import controls, 1949-1962, indigenous manufacturers were given a chance to develop their industries without facing crippling competition from US firms. The period did not, however, witness the development of a basic industrial infrastructure. In 1962 the policy of import control was terminated by newly elected President Macapagal who, at the behest of the USA and the International Monetary Fund, eliminated import controls and encouraged foreign investment and participation in the Philippine economy. As a result of these policies, a number of indigenous manufacturing concerns went into liquidation and were taken over by multinational firms.

Marcos comes to power

In 1965 President Macapagal was defeated by Ferdinand Marcos, the leader of the Nationalist Party. Marcos initiated rapid economic development and some land reform. He was re-elected in 1969, but encountered growing opposition from communist insurgents and Muslim separatists in the south. A high rate of population growth aggravated poverty and unemployment.

Leftist demands for the Philippines to withdraw from the war in Vietnam and the rapid rise in Philippine nationalism from the mid-1960s placed President Marcos in an increasingly defensive position. Some months before his second term was completed, Marcos declared martial law in September 1972, suspended the constitution, and began to rule by decree.

Marcos justified his imposition of martial law on the grounds of the existence of dissident groups in Philippine society, specifically the growing strength of a pro-Chinese Communist Party. However, his critics charged that martial law was imposed to enable Marcos to remain in power after the 1973 election, in which the constitution would have barred him from standing for a third term as president.

Martial law under Marcos

Under martial law, trade unionists, opposition political leaders, students, and journalists were arrested, and constitutional guarantees were suspended indefinitely, ushering in what the government referred to as the ‘New Society’. The Marcos government intensified its search for foreign investment, enacting a number of laws to attract multinational firms, including guarantees against nationalization, and severe restrictions on trade-union activity.

Intermittent referenda allowed Marcos to retain power. His authoritarian leadership was criticized for corruption, and in 1977 the opposition leader, Benigno Aquino, was jailed under sentence of death for alleged subversion. In 1978 martial law was relaxed, the 1972 ban on political parties was lifted, and elections for an interim National Assembly were held, resulting in an overwhelming victory for Marcos.

Partial return to democracy

In 1981 martial law was lifted completely, and hundreds of political prisoners released. Marcos then won approval, by referendum, for a partial return to democratic government with himself as president, working with a prime minister and executive council. Political and economic conditions deteriorated, communist-guerrilla insurgency escalated, unemployment climbed to over 30%, and the national debt increased. In 1983 Benigno Aquino, returning from self-imposed exile in the USA, was shot dead at Manila airport. Marcos was widely suspected of involvement in a conspiracy to murder Aquino.

National assembly elections were held in 1984, and although the government party stayed in power, the opposition registered significant gains. Then early in 1986 the main anti-Marcos movement, the United Nationalist Democratic Organization (UNIDO), chose Corazón Aquino, Benigno's widow, despite her political inexperience, to contest new presidential elections, which Marcos had been persuaded to hold as a means of maintaining vital US economic and diplomatic support. The campaign resulted in over 100 deaths, and large-scale electoral fraud was witnessed by international observers. The National Assembly declared Marcos the winner, a result disputed by an independent electoral watchdog.

‘People's power’

Corazón Aquino began a non-violent protest, termed ‘people's power’, which gathered massive popular support, backed by the Roman Catholic Church; President Marcos came under strong international pressure, particularly from the USA, to step down. The army, led by Chief of Staff Lt-Gen Fidel Ramos and defence minister Juan Enrile, declared its support for Aquino, and Marcos left for exile in Hawaii.

On assuming the presidency, Corazón Aquino dissolved the pro-Marcos National Assembly. She proceeded to govern in a conciliatory fashion, working with a coalition cabinet team comprising opposition politicians and senior military figures. Aquino freed 500 political prisoners and granted an amnesty to the New People's Army (NPA) communist guerrillas in an effort to end the 17-year-old insurgency. She also introduced a rural-employment economic programme with some land reforms, though these were opposed by property owners.

Coup attempts

The new administration endured a series of attempted coups by pro-Marcos supporters and faced serious opposition from Juan Enrile, who had been dismissed in November 1986.

In February 1987, a new ‘freedom constitution’ was overwhelmingly approved in a national plebiscite. This gave Aquino a mandate to rule as president until 30 June 1992. In the subsequent congressional elections, Aquino's People's Power coalition won over 90% of the elected seats.

However, a coup attempt in August 1987 led by Col Gregorio ‘Gringo’ Honasan, an army officer closely linked with Enrile, claimed 53 lives. There was a shift to the right in the government's policy. Tougher measures were instituted against the NPA, and the Land Reform Act 1988 was diluted. Former president Marcos died in exile in 1989.

US economic and military aid to the Philippines between 1985 and 1989 was approximately $1.5 billion. In addition, US air support was provided to help foil a further Honasan-planned coup attempt in December 1989. Aquino declared a state of emergency, and survived another coup attempt in October 1990.

The Mount Pinatubo eruption

At least 343 people were killed and 100,000-200,000 made homeless when the Mount Pinatubo volcano, dormant for 600 years and situated 90 km/56 mi northwest of Manila, erupted in June 1991. The US Clark Field and Subic Bay military bases, 15 and 40 km/9 and 25 mi away, had to be temporarily evacuated, and much rice-growing land was covered in up to 3 m/10 ft of volcanic ash.

US forces evicted from Subic Bay

The Senate of the Philippines voted in September 1991 to terminate the US lease for the Subic Bay naval base on its expiry, rejecting over $2 billion in US aid over a ten-year period and the provision of approximately 45,000 jobs. Although Aquino supported renewal of the lease, opposition was overwhelming. Critics of the base claimed that its existence contravened a clause in the constitution that banned nuclear weapons, and that the presence of military personnel encouraged prostitution.

Ramos elected president

Fidel Ramos was elected as Aquino's successor in 1992 and proceeded to form a ‘rainbow coalition’ government. Moves were made to curb corruption and in 1993 more than 60 top-ranking police officers were dismissed. In September 1993 the body of former president Ferdinand Marcos was flown home for burial. The same month his widow, Imelda Marcos - who had returned in November 1991 after almost six years in exile and had stood unsuccessfully for the presidency - was sentenced to 18-24 years' imprisonment for corruption, but remained free on bail.

A National Unification Commission was formed to consult with rebel groups and, during 1993 and 1994, peace talks were held with the communist NPA and Muslim secessionists and several ceasefires negotiated. These initiatives were endorsed in the May 1995 mid-term elections when the pro-Ramos coalition won a sweeping majority. Imelda Marcos was herself elected to the House of Representatives by a landslide majority during these elections. In February 1996 the Laban ng Demokratikong Pilipino (LDP) withdrew from the two-party coalition, leaving President Ramos with a minority in the Senate although he still had a large majority in the House of Representatives.

No second term for Ramos

In September 1997 the Supreme Court rejected a petition seeking to amend the constitution to allow President Ramos to run for re-election for a second term. In December Ramos endorsed Jose de Venecia, the controversial but colourless speaker of the lower house of Congress, as his ‘anointed’ successor in the coming presidential election. However, de Venecia faced strong opposition from other candidates, including the populist vice-president, Joseph Estrada (a former film star), former defence secretary Renato de Villa, and senator Gloria Macapagal-Arroyo (daughter of a former president), who led in opinion polls.

Film star becomes president

The former vice-president and film star, Joseph Estrada, took over as President on 30 June 1998. Estrada, of the populist right-of-centre Struggle of Nationalist Filipino Masses (LaMMP), won 46% of the vote in the May 1998 presidential election, well ahead of his nearest rival, Jose de Venecia, of the centre-right Power of Edasa - National Union of Christian Democrats (Lakas-NUCD), who secured 17%. Gloria Macapagal Arroyo (the daughter of a former president, Diosdado Macapagal) was elected vice-president. Estrada inherited a worsening economy, with a large and growing budget deficit and rising unemployment, as a result of the effects of the 1997-98 Asian financial crisis. He pledged to continue with the market-centred reform programme initiated by his predecessor, and appointed the banker, Edgardo Espiritu, as finance secretary. However, during his campaign, Estrada had also promised to alleviate poverty, reduce crime levels and establish peace and order across all the Philippines, including Mindanao, within six months. During the early months of the Estrada presidency, there were indications of a return to influence of some former associates of the late president Marcos.

Peace accord in civil war on Mindanao

After 25 years of civil war on the southern island of Mindanao, a peace agreement was signed in September 1996 between the government and the Moro National Liberation Front (MNLF). The MNLF viewed the island as the traditional homeland of the Philippines' 500,000-strong Muslim minority, where the majority community comprises Christian immigrants. The peace agreement was seen as an unacceptable compromise by the more radical Moro Islamic Liberation Front (MILF), which continued to demand full independence for Mindanao. However, in January 1997 preliminary peace talks were opened between the government and the MILF. A ceasefire was implemented in late January, but failed to hold.

Dispute with China

In early November 1998 the Philippines accused China of building naval facilities on Mischief Reef, in the Spratly Islands, in the South China Sea, which were claimed by both countries and which were believed to contain oil and gas deposits. Philippines naval forces were sent to the Reef, but in late November China and the Philippines reached an agreement on joint use of the resources around the Reef.

In September 1999, there were widespread protests in Manila and other cities against plans put forward by President Estrada to amend the constitution. Corazón Aquino, a former president, accused Estrada of eroding the gains of the 1986 revolution by reducing press freedom and allowing the revival of nepotism.

More than 7,000 people were left homeless after floods swept through low-lying areas of the southern Philippines in February 2000.

Separatist activity

In April and May 2000, the southern Philippines saw activity from Muslim rebels fighting for an independent Muslim state in the area. Foreign hostages were taken from holiday resorts in Malaysia to Basilan Island, Philippines, by rebel group Abu Sayyaf, which demanded a US$2.4 million ransom and the release of three Muslim extremists from imprisonment in the USA. Some of the hostages were killed when troops attempted to rescue them. On the island of Mindanao, around a hundred people were taken hostage by the separatist MILF. In May and July government forces seized major MILF bases on Mindanao alongside continuing peace talks.

The hostage crisis continued into September 2000 as hostages held by Muslim rebels on Jolo island were released in small numbers. Despite some international criticism, Libya agreed to pay $4 million for the remaining hostages. The Libyan leader, Khaddhafi, appeared to hope that by ending the Jolo island crisis his image on the international stage would be further enhanced and his country might win a more respectable role. However, further hostages continued to be taken by the Abu Sayyaf guerrilla group.

In September the Philippine army launched an assault on Muslim rebel bases on Jolo island, as the government's patience finally snapped. A number of civilians were reported to have been killed in the attacks and more than 36,000 villagers fled their homes to escape the army assault. As the Philippine army continued its attack on the hostage-takers in October, five hostages were still reported to be missing.

A question of bribery

President Estrada faced accusations of receiving US$11 million in ‘kickbacks’ from illegal gambling syndicates and the diversion of tobacco taxes, as repeated public demonstrations in October called for his resignation. 40 members of congress deserted him for the opposition, led by former vice-president Gloria Macapagal Arroyo, and in November Estrada was impeached.

A series of bombs in Manila killed over 20 people in December 2000 and wounded nearly 100. No group admitted responsibility, but in early January 2001, police charged members of the MILF with the attack.

Estrada's trial began in December, but ended with indefinite suspension in January 2001 after pro-Estrada senators blocked the presentation of vital evidence regarding the president's bank accounts. Two days of public demonstrations calling for his immediate resignation followed and Estrada's senior military commanders and entire cabinet deserted him. Estrada left office, but despite Arroyo being sworn in as president, he insisted that he was still the legitimate head of state and promised to use all legal means to win back his office. However, the Philippines's Supreme Court confirmed Arroyo as president in March 2001, despite warnings by Estrada's lawyers that the overthrow of a democratically-elected leader would create a dangerous precedent. The court also voted to deny Estrada immunity from prosecution. It had also emerged in February that more than US$60 million had allegedly been withdrawn from Estrada's bank account just before his deposition. Estrada was arrested in April 2001 on charges of corruption and plundering the state. Thousands of his supporters tried to storm the presidential palace, and a ‘state of rebellion’ was declared for five days until public order was restored in early May.

Arroyo, whose government was supported by the IMF and World Bank, pledged to win the fight against poverty within 10 years. She also ordered peace talks with the MILF on the status of Mindanao. MILF responds by declaring a ceasefire. Preliminary talks also began with the political wing of the communist New People's Army (NPA).

Abu Sayyaf take more hostages

In May 2001, Abu Sayyaf guerrillas kidnapped 17 Filipinos and 3 US tourists from a luxury holiday resort on Palawan island in the southern Philippines. The Philippines government announced it would not pay ransom money. Nine of the hostages escaped in early June, after three days of fighting between Abu Sayyaf and Philippines forces. The kidnappers responded by executing two of the remaining Filipino hostages. In mid-June, despite government acceptance of a Malaysian mediator, as demanded by the terrorists, Abu Sayyaf claimed to have beheaded one of the US tourists in retaliation for a recent army attack.

President Arroyo suspended the governor of the autonomous region in Muslim Mindanao, Nur Misuari in November 2001. Misuari was arrested and charged with rebellion after a faction of his Moro National Liberation Front (MNLF) broke a five-year ceasefire and attacked army posts on the island of Jolo. More than 100 people are killed in the fighting. The following month, Misuari was replaced as governor by Parouk Houssin.

US soldiers landed on the troubled island of Basilan on 16 February 2002. It was the first deployment of US military personnel on the island, and was a response to increased activity by extremist Muslim rebels. There were also indications that the Abu Sayyaf was linked to the al-Qaeda terrorist network. US involvement was seen as a widening of the USA's War on Terrorism, which was declared after the terrorist attacks on the USA on 11 September 2001.

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