Contributions of Americans to the Philippines

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    Contributions of Americans to the Philippines

    Independence - America helped the Philippines to eliminate the Spaniards in the country thus

    helping the Filipinos to end the suffering from the Spanish reign. This was the first step of the country

    to stand on their own and start a new beginning. Government -we adapted and patterned some of our constitution with the Americans'.

    Sports - Filipino favourite sport had been basketball, and other foreign sports instead of the national

    sports which is sipa.

    Western style of clothing - this was also adapted as it is evident with the radical change from the

    conservative Maria Clara to the daring trends of fashion of the modern era

    Communication - The Americans brought English, the lingua franca of the modern world

    Principles - progressive liberal ideologies such as egalitarianism, democracy and equality

    Education - they endowed an educational system patterned after that of the U.S. They sent

    educators in the Philippines which are known as Thomasites. However, American style of re-education

    was amero-centric in nature, causing Philippine society to self stigmatize itself in favor of American-

    centered products and ideologies.

    Cultural impact

    The Roman Catholic Church was disestablished and a considerable amount of church land was

    purchased and redistributed. The land amounted to 170,917 hectares (422,350 acres), for which the

    Church asked $12,086,438.11 in March 1903.[102] The purchase was completed on December 22, 1903 at

    a sale price of $7,239,784.66.[103] The land redistribution program was stipulated in at least three laws:

    the Philippine Organic Act,[45]the Public Lands Act[104]and the Friar Lands Act.[105][106] Section 10 of the

    Public Land Act limited purchases to a maximum of 16 hectares for an individual or 1024 hectares for a

    corporation or like association.[104][107] Land was also offered for lease to landless farmers, at prices

    ranging from fifty centavos to one peso and fifty centavos per hectare per annum.[104][107]Section 28 of thePublic Lands Act stipulated that lease contracts may run for a maximum period of 25 years, renewable for

    another 25 years.[104][107]

    U.S. President McKinley, in his instructions to the First Philippine Commission in 1898, ordered the use of

    the Philippine languages as well as English for instructional purposes. The American administrators,

    finding the local languages to be too numerous and too difficult to learn and to write teaching materials in,

    ended up with a monolingual system in English with no attention paid to the other Philippine languages

    except for the token statement concerning the necessity of using them eventually for the system.[108]

    In 1901 at least five hundred teachers (365 males and 165 females) arrived from the U.S. aboard

    the USS Thomas. The nameThomasitewas adopted for these teachers, who firmly established

    education as one of America's major contributions to the Philippines. Among the assignments givenwereAlbay,Catanduanes, Camarines Norte,Camarines Sur, Sorsogon, andMasbate. Twenty-seven of

    the original Thomasites either died of tropical diseases or were murdered by Filipino rebels during their

    first 20 months of residence. Despite the hardships, the Thomasites persisted, teaching and building

    learning institutions that prepared students for their chosen professions or trades. They opened the

    Philippine Normal School (now Philippine Normal University) and the Philippine School of Arts and Trades

    (PSAT) in 1901 and reopened the Philippine Nautical School, established in 1839 by the Board of

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    Commerce of Manila under Spain. By the end of 1904, primary courses were mostly taught by Filipinos

    under American supervision.[109]

    ]Philippine independence

    On January 20, 1899, President McKinley appointed the First Philippine Commission (the Schurman

    Commission), a five-person group headed by Dr. Jacob Schurman, president ofCornell University, toinvestigate conditions in the islands and make recommendations. In the report that they issued to the

    president the following year, the commissioners acknowledged Filipino aspirations for independence; they

    declared, however, that the Philippines was not ready for it. Specific recommendations included the

    establishment of civilian government as rapidly as possible (the American chief executive in the islands at

    that time was the military governor), including establishment of a bicameral legislature, autonomous

    governments on the provincial and municipal levels, and a new system of free public elementary schools.[110]

    The Second Philippine Commission (the Taft Commission), appointed by McKinley on March 16, 1900,

    and headed by William Howard Taft, was granted legislative as well as limited executive powers. Between

    September 1900 and August 1902, it issued 499 laws. A judicial system was established, including a

    Supreme Court, and a legal code was drawn up to replace Spanish ordinances. A civil service was

    organized. The 1901 municipal code provided for popularly elected presidents, vice presidents, and

    councilors to serve on municipal boards. The municipal board members were responsible for collecting

    taxes, maintaining municipal properties, and undertaking necessary construction projects; they also

    elected provincial governors. In July 1901 the Philippine Constabulary was organized as an archipelago-

    wide police force to control brigandage and deal with the remnants of the insurgent movement. After

    military rule was terminated on July 4, 1901, the Philippine Constabulary gradually took over from United

    States army units the responsibility for suppressing guerrilla and bandit activities.[110]

    From the very beginning, United States presidents and their representatives in the islands defined their

    colonial mission as tutelage: preparing the Philippines for eventual independence.[111][112] Except for a

    small group of "retentionists," the issue was not whether the Philippines would be granted self-rule, butwhen and under what conditions.[112][113] Thus political development in the islands was rapid and

    particularly impressive in light of the complete lack of representative institutions under the Spanish.

    The Philippine Organic Actof July 1902 stipulated that, with the achievement of peace, a legislature

    would be established composed of a lower house, the Philippine Assembly, which would be popularly

    elected, and an upper house consisting of the Philippine Commission, which was to be appointed by the

    president of the United States.[110]

    The Jones Act, passed by theU.S. Congress in 1916 to serve as the neworganic law in the Philippines,

    promised eventual independence and instituted an elected Philippine senate. The Tydings McDuffie

    Act(officially the Philippine Independence Act; Public Law 73-127) approved on March 24, 1934 provided

    for self-government of the Philippines and for Filipino independence (from the United States) after aperiod of ten years. World War II intervened, bringing the Japanese occupationbetween 1941 and 1945.

    In 1946, theTreaty of Manila (1946) between the governments of the U.S. and the Republic of the

    Philippines provided for the recognition of the independence of the Republic of the Philippines and the

    relinquishment of American sovereignty over the Philippine Islands.

    http://en.wikipedia.org/wiki/William_McKinleyhttp://en.wikipedia.org/wiki/Jacob_Gould_Schurmanhttp://en.wikipedia.org/wiki/Jacob_Gould_Schurmanhttp://en.wikipedia.org/wiki/Cornell_Universityhttp://en.wikipedia.org/wiki/Cornell_Universityhttp://en.wikipedia.org/wiki/Bicameralismhttp://en.wikipedia.org/wiki/Taft_Commissionhttp://en.wikipedia.org/wiki/William_Howard_Tafthttp://en.wikipedia.org/wiki/William_Howard_Tafthttp://en.wikipedia.org/wiki/Philippine_Organic_Act_(1902)http://en.wikipedia.org/wiki/Philippine_Organic_Act_(1902)http://en.wikipedia.org/wiki/Philippine_Assemblyhttp://en.wikipedia.org/wiki/Philippine_Assemblyhttp://en.wikipedia.org/wiki/Jones_Law_(Philippines)http://en.wikipedia.org/wiki/United_States_Congresshttp://en.wikipedia.org/wiki/United_States_Congresshttp://en.wikipedia.org/wiki/Organic_lawhttp://en.wikipedia.org/wiki/Organic_lawhttp://en.wikipedia.org/wiki/Philippine_senatehttp://en.wikipedia.org/wiki/Philippine_senatehttp://en.wikipedia.org/wiki/Tydings%E2%80%93McDuffie_Acthttp://en.wikipedia.org/wiki/Tydings%E2%80%93McDuffie_Acthttp://en.wikipedia.org/wiki/Tydings%E2%80%93McDuffie_Acthttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Treaty_of_Manila_(1946)http://en.wikipedia.org/wiki/Treaty_of_Manila_(1946)http://en.wikipedia.org/wiki/William_McKinleyhttp://en.wikipedia.org/wiki/Jacob_Gould_Schurmanhttp://en.wikipedia.org/wiki/Cornell_Universityhttp://en.wikipedia.org/wiki/Bicameralismhttp://en.wikipedia.org/wiki/Taft_Commissionhttp://en.wikipedia.org/wiki/William_Howard_Tafthttp://en.wikipedia.org/wiki/Philippine_Organic_Act_(1902)http://en.wikipedia.org/wiki/Philippine_Assemblyhttp://en.wikipedia.org/wiki/Jones_Law_(Philippines)http://en.wikipedia.org/wiki/United_States_Congresshttp://en.wikipedia.org/wiki/Organic_lawhttp://en.wikipedia.org/wiki/Philippine_senatehttp://en.wikipedia.org/wiki/Tydings%E2%80%93McDuffie_Acthttp://en.wikipedia.org/wiki/Tydings%E2%80%93McDuffie_Acthttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Treaty_of_Manila_(1946)
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    Public system of education

    Silliman University, inDumaguete City was the first American private school to be founded in the country.[1]

    Educationbecame a very important issue for the United States colonial government, since it allowed it to

    spread their cultural values, particularly the English language, to the Filipino people.[2]

    Every child from age 7 was required to register in schools located in their own town or province. The

    students were given free school materials. There were three levels of education during the American

    period. The "elementary" level consisted of four primary years and 3 intermediate years. The "secondary"

    or high school level consisted of four years; and the third was the "college" or tertiary level. Religion was

    not part of the curriculum of the schools. as it had been during the Spanish period.

    In some cases those students who excelled academically were sent to the U.S. to continue their studies

    and to become experts in their desired fields or professions. They were called "scholars" because the

    government covered all their expenses. In return, they were to teach or work in government offices afterthey finished their studies. Some examples of these successful Filipino scholars were JudgeJose Abad

    Santos, Francisco Benitez, Dr. Honoria Sison and Francisco Delgado.

    Many elementary and secondary schools from the Spanish era were recycled and new ones were opened

    in cities and provinces, among which there were normal, vocational, agricultural, and business schools.

    Among the most important colleges during United States rule were:Philippine Normal Schoolin 1901

    (now a university) and other normal schools throughout the country such as Silliman University (1901),

    Negros Oriental High School (1902),St. Paul University Dumaguete (1904),Cebu Normal School (1915)

    also a university at present, Iloilo Normal School in 1902 (now West Visayas State University) and

    Zamboanga Normal School in 1904 (nowWestern Mindanao State University) ; National

    University (1901); University of Manila(1914); Philippine Women University (1919); and Far EasternUniversity (1933). Examples of vocational schools are: the Philippine Nautical School, Philippine School

    of Arts and Tradesand the Central Luzon Agriculture School. The University of the Philippines was also

    founded in 1908.

    Schools were also built in remote areas like Sulu, Mindanao, and the Mountain Provinces, where attention

    was given to vocational and health practice.

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    [edit]Thomasites

    Main article: Thomasites

    Volunteer American soldiers became the first teachers of the Filipinos. Part of their mission was to build

    classrooms in every place where they were assigned. The American soldiers stopped teaching only when

    a group of teachers from the U.S. came to the Philippines in June 1901. They came aboard the ship

    "Sheridan." In August 1901, 600 teachers called Thomasites arrived. Their name derived from the ship

    they traveled on, theUSS Thomas.

    The original batch of Thomasites was composed by 365 males and 165 females, who sailed from United

    States on July 23, 1901. The U.S. government spent about $105,000 for the expedition.[3]More American

    teachers followed the Thomasites in 1902, making a total of about 1,074 stationed in the Philippines.

    [edit]Criticisms

    [edit]Monroe Commission on Philippine Education

    The Monroe Commission on Philippine Education was created in 1925 with the aim of reporting on theeffectiveness of the education in the Philippines during the period of U.S. annexation. It was headed

    byPaul Monroe, who at the time was the Director of the International Institute of Teachers College,

    Columbia University, and it was composed by a total of 23 education professionals, mostly from the U.S.

    and some from the Philippines. During 1925 the Commission visited schools all throughout the

    Philippines, interviewing a total of 32,000 pupils and 1,077 teachers. The commission found that in the 24

    years since the U.S. education system had been established, 530,000 Filipinos had completed

    elementary school, 160,000 intermediate school, and 15,500 high school.

    The Commission declared that although Filipino students were on the same level as their American

    counterparts in subjects like Math or Science, they lagged far behind in English-language related

    subjects. George Counts, a Yale professor and a member of the Commission wrote on 1925 in The

    Elementary School Journalthat Half of the children were outside the reach of schools. Pupil performance

    was generally low in subjects that relied on English, although the achievement in Math and Science was

    at par with the average performance of American school children... Counts also described the Filipino

    children of the 1920s as handicapped because not only were they trying to learn new concepts in a

    foreign language but they were also being forced to do so from the point of view of a different culture, due

    to the fact that they were using materials originally designed for pupils in the United States.[4]

    The report also informed that teacher training was inadequate and that 82 per cent of the pupils did not go

    beyond grade 4. Many of the problems identified were attributed to the attempt to impose an English-

    based education system in just one generation, concluding that Upon leaving school, more than 99% of

    Filipinos will not speak English in their homes. Possibly, only 10% to 15% of the next generation will be

    able to use this language in their occupations. In fact, it will only be the government employees, and theprofessionals, who might make use of English.[5]

    Other recommendations of the Commission asking for a "curtailment of the type of industrial work found

    on schools" and the elimination of the General Sales Department that had been set up to distribute the

    sale of items made in schools, pushed the implementation of several changes in the educational system

    to try to prioritize on the instruction of the pupils to be taught over the teaching of "industrial" education

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    that until then had been focusing on the production of handicrafts such as basketry for boys and

    embroidery for girls, farming techniques, and other skills deemed favorable for the future of the pupils.[6]

    Reminiscent of the countrys Spanish colonial past, the Saint Agustin church dominates Manilas Intramuros district, built bythe Spaniards in the 16th century.

    Echoing softly across the 7,100 islands that form the Philippines archipelago, the lilting strains of the

    countrys national anthem seem to be a reminder of a volatile past. This indeed is a country where

    invaders trampled its sacred shores, imposing colonization for more than three centuries. Freedom since

    then has been a thorny crown to wear and the years of toil under colonial masters and then despotic

    power hungry leaders have marred these pristine islands. Asias only predominantly Christian country,

    the Philippines enjoys one of the highest literacy rates in the world, and it would seem that economic

    prosperity is its destiny. But then man plays a cruel hand where destiny cannot. It has been the curse of

    the Philippines that its leaders have shorn the country of its value. Will the nation rise again? Perhaps,

    gentle as the wind that swirls across Cebu, it already has.

    Go to Top

    History

    Colonial vassal rises to become independent power

    The islands of the Philippines were inhabited long before Ferdinand Magellan first landed his ship onthese shores. The invading Spanish colonizers termed the Pygmies of the Aeta and Agta tribes as Negritos,

    which continues to be used even today. Spain eventually named these groups of islands Isla Filipinas after

    Prince Philip. Magellans exploration would mean the conquest of the Philippines in the hands of Spain

    for the next 300 years. Traces of the Spanish influence remain visible in the country even today.

    Philippines and the World

    Nominal GDP ($)166.9 billion

    GDP Rank47/191

    Per Capita GNI ($)1890

    Per Capita GNI Rank144/210

    Population Rank12/227

    Geographical Area Rank 72/249

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    Global Competitiveness Rank87/133

    Economic Freedom Index Rank109/179

    Human Development Index

    Rank

    105/182

    Major Industries Processed Foods, Coal, ChemicalProducts, Garments, Electrical

    Machinery and Electronics, Fishing

    Following the defeat of Spain in the Spanish-American war, the Treaty of Paris granted the Philippines to

    the Americans who were to exert their dominance and shape the course of this nation until well into the

    20th century. The American President William McKinley called it a policy of benevolent assimilation.

    The Filipinos, however, were a proud people and searching for sovereignty, went to war in what was to beknown as the Philippine-American War. More than 4,000 American and 16,000 Filipino soldiers died in

    combat before the U.S. established a political administration in the Philippines with the promise of

    independence eventually on July 4, 1946.

    The shadow of the Rising Sun and the looming hand of World War II cast an unwilling Philippines into

    the forefront of a vicious battle between the Americans and the Japanese. Battered, and bruised beyond

    recognition, Manila became the second most destroyed city of the cataclysmic World War next only to

    Warsaw in Poland. It was in this bitter, somber and fragile atmosphere that the Philippines finally claimed

    its rightful independence in 1946.

    The Manila American Cemetery and Memorial in the Philippines for victims of World War II contains 17, 202 graves.

    Post-war, faced with teething infrastructure and economic problems, the fledgling government led by

    Manuel Roxas also had to face insurgency from within in the form of the Hukbalahap a guerilla warfare

    that was extinguished finally in 1954. A period of relative stability followed with progressive visionary

    Ferdinand Magsaysays rule, but his death in a plane crash hurled the country into the hands of power

    despots such as Ferdinand Marcos. The assassination of popular opposition leader Benigno Aquino was to

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    be the trigger for a People Power Movement that led to the immensely corrupt leaders downfall and flight

    from the Philippines. The newly widowed Corazon Aquino and later Fidel Ramoss presidency brought

    about a semblance of reform to the teetering nation. A second People Power Movement or ESDA led to the

    downfall of the charismatic but inept Joseph Estrada, paving the way for Gloria Macapagal Arroyo.

    However, Arroyo was to be one of the most unpopular presidents the Philippines ever had, and Benigno

    Aquino, a senator and the son of former President Corazon Aquino, won the 2010 elections to become the

    countrys next president in a term that will last until 2016.

    Administrative Structure: As a democratic republic, the chief of state, head of government, and

    commander-in-chief of the armed forces in the Philippines remains the president, who is elected by direct

    popular vote for a term of six years. The Philippines has a bicameral (two-chamber) legislature called the

    Congress, which consists of the 24-member Senate and the 260-strong House of Representatives.

    Administratively, the country is divided into 15 regions, 79 provinces and 115 cities.Go to Top

    Culture

    American and Spanish mix

    Unlike most other countries in the region, the Philippines indigenous culture was almost completely

    transformed by the Spanish and American influences it was subject to for centuries. Under American

    occupation, the Philippines rose to become one of the most westernized nations in Southeast Asia. Yet,

    especially among Muslim and upland tribal groups, certain old Malay traditions related to dance,sculpture and music still remain. Under the patronage of the Roman Catholic Church, architecture drew

    on religious icons for expression.

    Local culture: Philippine tribes have retained some of the older traditions of oral storytelling, and art

    forms such as rattan weaving, woodcarving, and textile weaving. Filipino music has synthesized the best

    of its Spanish and American past although unique folk dances such astinikling (bamboo or heron dance)

    and singkil(court dance), which continue to be popular. With around 120 ethnic groups and mainstream

    communities such as the Tagalog, Ilocano, Pampango, and Visaya, the quest for a common identity is

    forged oddly through another American legacy English. The Philippines is now the third-largest English

    speaking country in the world.

    Go to Top

    Economy

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    Unbridled corruption taints erratic growth

    During the American occupation, the Philippines primarily supplied the U.S. with agricultural products. Today, the agricultural

    sector only contributes 13.6% to the countrys GDP.

    Economic history: During the long years of American occupation, the Philippines functioned only as an

    economic vassal to the world superpower. Supplying the U.S. with mainly agricultural and forest

    products, the Philippines was forced to import most manufactured items from the U.S. Industrial growth

    virtually grounded to a halt during this period.

    Post independence, the Philippines economy swirled through a dizzying cycle of boom and bust. During

    the 1950s, the country tried to become an industrialized nation with the policy of import substitution,

    where domestic goods are substituted for imports. However, these protectionist measures had a negative

    effect in the long term leading to inefficiencies and misallocation of resources. For that period during the

    1970s, however, economic growth spurted.

    Marcos rule: Rich in human and natural resources, it seemed then that the Philippines was destined to

    become one of Asias real superpowers. However, the overwhelming power of corruption tainted its

    leaders, and the Philippines struggled under Marcos long rule. By 1981, the nation was heavily in debt,

    the country was facing problems making payments on its international loans, and poverty was endemic as

    economic and democratic institutions collapsed. Plunged into a deep recession in the 1980s, the

    Philippines suffered from what came to be known as crony capitalism, as President Marcos built up a

    monopolistic system that favored his relatives and associates. Marcoss removal from office ushered in the

    more progressive Aquino administration, which introduced vital reforms such as a liberal Foreign

    Investment Act, a Comprehensive Agrarian Reform Law, and the privatization of public companies. Then,

    under Ramos, the government embarked on a development plan called Philippines 2000,which

    enhanced privatization in key industries like banking, electricity, telecommunications, shipping and oil.

    The economy slowly recovered and unlike other countries in the region, the Philippines contracted less

    dramatically during the Asian crisis of 1997, though inflation soared. The situation has eased since then

    and progressively improved..

    Historically, the agricultural sector in the Philippines has underperformed, considering that it employs

    about 36% of the labor force even while contributing just 13.6% to the Gross Domestic Product (GDP).

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    Important cash crops: Bananas Sugar Pineapples Coconuts: the Philippines remains one of the worlds leading producers

    However, in one of the most stunning cases of environmental degradation, the Philippines has turned

    from being one of the worlds biggest exporters of tropical hardwoods in the 1970s to being a net importerof forest products by 1990s.

    This business park in Cebu is one of many which support a growing back office processing business in the Philippines. With

    the third largest English speaking population in the world, the countrys BPO sector is forecasted to earn $1 billion by 2010.

    Industry contributes to 33.2% of the GDP, with consumer goods such as processed goods, coal, and

    garments dominating the manufacturing sector. Mining was once one of the predominant industries, with

    the Philippines blessed with minerals like copper, gold, silver, chromium and lead. The closure of several

    mines and crumbling infrastructure coupled with worries about environmental havoc, have led to the

    decline of the mining industry.

    Key fact: The Philippines is the second largest producer of geothermal power in the world after the U.S.

    Geothermal power accounts for about 50% of domestic power generation, followed by hydropower, which

    represents about 33%.

    One of the most competitive aspects of the Philippine economy has been the rapid growth of its services

    sector since 1980. Contributing to 53.2% of the GDP, segments such as telecommunications, business

    outsourcing and financial services have leapfrogged into the limelight, making the country one of the

    fastest growing BPO (Back Office Processing) destinations in the world.

    A member of the World Trade Organization, the Philippines most important trading partners are:

    The U.S. Japan Netherlands Hong Kong China Singapore

    According to 2008 figures, life expectancy at birth was 69.4 for males, 73.9 for women, and 71.6 years

    overall (Human Development Reports). Although health status improvement has been slow compared to

    other countries in the region, Filipinos are in a better state of health now than 50 years ago, according to

    data by the World Health Organization (WHO).

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    The recession and its aftermath

    Economic upheaval: During the recent global recession, the Philippines found that its export industry

    was hard hit, and remittances also fell, as overseas Filipinos felt the pinch of the economic downturn.

    Faced with the challenges of declining external demand, the economy of the Philippines grew just 0.9% in

    2009, a sharp fall compared to the average growth of 5.5% over the previous five years, mainly on the

    back of a strong services sector. At the same time, private consumption rose by 3.8%, and increased

    government stimulus spending to rejuvenate the economy helped support demand. Towards the latter

    half of 2009, remittances also rose as a series of typhoons forced Filipinos overseas to transfer more

    money to affected relatives. Inflationary pressures were reduced remarkably, with whole-year inflation

    falling to an average of 3.2% compared to 9.3% in 2008, according to the Philippine central bank.

    Still, infrastructure remains a key issue. Among developing economies in East Asia, the Philippines ranks

    last owing to the poor quality of its railroads, electrical systems and ports. The countrys creaking

    infrastructure received a boost with the governments stimulus, and the construction of roads,

    expressways and airports is expected to gather momentum over the next few years. Despite the global

    economy showing firm signs of revival, it is unlikely that the new Aquino government will pamper the

    economy with further stimuli, given the turmoil in Greece and the Euro-zone, and especially with the new

    focus on reducing the countrys fiscal deficit to around 3% to 5% of the GDP.

    Monetary action: Along with the fiscal stimulus, the economy also received support from the central

    bank, with Bangko Sentral ng Pilipinas lowering its benchmark interest rates by over 200 basis steps in a

    series of policy actions from December 2008 to July 2009. At the height of the rate cutting cycle, the

    policy interest rate stood at just 4%, the lowest in almost two decades. While monetary policy is expected

    to continue to support economic recovery, the bank needs to be wary of inflationary pressures.

    Forecasts and projections: The International Monetary Fund expects the Philippines to grow 3.6% in 2010. Inflation to rise to 5%. The ADB raised its growth outlook for the Philippines economy, stating that with private consumption rising, and

    helped by robust remittances, GDP may expand to 3.8% this year. The World Bank projects the Philippines will grow at 3.5% in 2010 and 3.8% in 2011.

    Problems aplenty

    From relative prosperity in the 1950s and 1960s, where the country was hailed as one of Asias most

    impressive beacons, to the dark days of Marcos rule, and again to the promise of today, the Philippines

    has lurched through time, with chaos, confusion and instability serving as constant reminders of a

    decayed past.

    Driven by paucity of job opportunities, around six million Filipinos have found work outside the

    Philippines. Almost 10% of the countrys GDP comes in the form of remittances sent by overseas Filipinos

    to family members back home. Yet, this migration of professionals is causing a severe brain drain on the

    country.

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    Manila, the 11th most populous metropolitan area in the world, continues to be a fast growing center of the countrys

    economy.

    Unrealized potential: For a country that always promised much, it seems that for the Philippines

    potential has never matched performance. Corruption has been a deadly poison that has sunk its fangs

    deep into the very fiber of its society. Almost all of the countrys leaders from Marcos to Estrada have

    succumbed to the dark side, and the countrys political scene remains tumultuous despite the optimism

    surrounding Aquinos 2010 win. The U.S. continues to be the Philippines biggest ally, and relations with

    China and old rival Indonesia are improving, although Malaysia remains a testy neighbor. Rising

    economic growth, however, has not resulted in better standards of living, with 22.6% of the population

    still subsisting on less than $1.25 a day.

    Whats more, concerns remain over the countrys ability to sustain its growth, especially as the U.S.

    remains the Philippines largest investor with more than $6.5 billion in total Foreign Direct Investment(FDI). Moreover, with one of the highest population growth rates in Asia, this middle-income country is

    finding it increasingly difficult to lift its millions out of poverty. Urbanization has accelerated at an

    alarming pace, and with the country located on the Pacific Ring of Fire, the Philippines has had to cope

    with natural disasters like typhoons, volcanoes, landslides and earthquakes on a frequency that would test

    even the most developed and mature economy.

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    El Ninos impact: In one of its reports, the ADB highlighted its concern that the Philippines, already in

    a difficult fiscal situation, gripped by high public debt and heavily dependent on exports and overseas

    remittances for growth, has not invested sufficiently in infrastructure and social sectors. Also, the El Nino

    effect has been playing havoc on the Philippines fragile ecosystem. There have been long sustained

    periods of drought that have caused significant problems for the agricultural sector, and the impact of El

    Nino, it is feared, may also constrain the supply of power.

    The biggest challenge for this archipelago will be to reconcile its fragile ecosystem and equally fragile

    political structure, while at the same time sustain a growing populace on the wealth that its economic

    growth will bring. It seems a test of fire. For this predominantly Roman Catholic country, one thing

    remains - faith. Amidst the breathtakingly beautiful sands of the Philippines, as the strains of the national

    anthem drift through the air, the echoes of Aquinos words hover. Perhaps, faith is what the Philippines

    survives on.

    Faith is not simply a patience that passively suffers until the storm is past. Rather, it is a spirit that

    bears things - with resignations, yes, but above all, with blazing, serene hope- Corazon Aquino,

    President of the Philippines, 1986-1992.