Ferdinand Edralin Marcos

Ferdinand Edralin Marcos-

Sixth and last President of the Third Republic of
the Philippines Birthdate: September 11, 1917, Died- September 28, 1989 Term:December 30, 1965- December 30, 1973


President of the Fourth Republic of the PhilippinesTerm: June 30, 1981 - February 25,1986Philippine lawyer and politician who ruled by martial law and was ousted by a peaceful People Power Revolution in 1986.

Economic Program of the Marcos Administration:

Economic performance during the Marcos era was strong at times, but when looked at over his whole regime it was not characterized by strong economic growth. Penn World Tables report real growth in GDP per capita averaged 3.5% from 1951 to 1965, while under the Marcos regime (1966 to 1986) annual average growth was only 1.4%. To help finance a number of economic development projects, such as infrastructure, the Marcos government engaged in borrowing money. Foreign capital was invited to invest in certain industrial projects. They were offered incentives, including tax exemption privileges and the privilege of bringing out their profits in foreign currencies. One of the most important economic programs in the 1980s was the Kilusang Kabuhayan at Kaunlaran (Movement for Livelihood and Progress). This program was started in September 1981. Its aim was to promote the economic development of the barangays by encouraging its residents to engage in their own livelihood projects. The government's efforts resulted in the increase of the nation's economic growth rate to an average of six percent or seven percent from 1970 to 1980. The rate was only less than 5% in the previous decade. The Gross National Product rose from P55 billion ($7.7 billion) in 1972 to P193 billion ($27 billion) in 1980. Tourism rose, contributing to the economy's growth. Most of these "tourists" were Filipino balikbayans (returnees) who came under the Ministry of Tourism's Balikbayan Program, launched in 1973.
Economic growth was largely financed, however, by U.S. economic aid and several loans made to the Marcos government as the country's foreign debts increased by over 27 billion USD when Marcos assumed the presidency. A sizable amount of this money went to Marcos family and friends in the form of behest loans. These loans were assumed by the government and still being serviced by taxpayers. Today, more than half of the country's revenues are outlaid for the payments on the interests of loans alone.
Another major source of economic growth was the remittances of overseas Filipino workers. These overseas Filipino workers not only helped ease the country's unemployment problem but also earned much-needed foreign exchange for the Philippines.
The Philippine economy suffered a great decline after the Aquino assassination in August 1983. The political troubles also hindered the entry of foreign investments, and foreign banks stopped granting loans to the Philippine government.
In an attempt to launch a national economic recovery program, Marcos negotiated with foreign creditors including the International Bank for Reconstruction and Development, World Bank, and the International Monetary Fund (IMF), for a restructuring of the country's foreign debts – to give the Philippines more time to pay the loans. Marcos ordered a cut in government expenditures and used a portion of the savings to finance the Sariling Sikap (Self-Reliance), a livelihood program he established in 1984.
However, the economy experienced negative economic growth from the beginning of 1984 and continued to decline despite the government's recovery efforts. The recovery program's failure was caused by civil unrest, rampant graft and corruption within the government, and Marcos's lack of credibility. The unemployment rate ballooned from 6.30% in 1972 to 12.55% in 1985.