Economic Crisis in the Philippines

Abstract

The assassination of former Senator Benigno S. Aquino, Jr., on August 21, 1983, triggered the severest political and economic crisis in the history of the Philippine Republic. The immediate reaction was to demand the resignation of President Ferdinand E. Marcos. Rallies were held, marches undertaken, and speeches made. The immense size of the protests, particularly in Metro Manila, gave witness to the widespread disenchantment with the regime. Perhaps most surprising was the participation by the business community in Makati, the financial and corporate center of the country. Although individual business people had begun to speak out, at times vociferously, against the economic policies of the regime, most of the economically powerful had gone along with Marcos. For the first few years of the martial law regime business had benefited and there was little reason to complain. Later when the economy turned down and the bailouts of Marcos' cronies became excessive, business people generally kept their complaints to themselves or expressed them in subdued terms. Beyond the obvious revulsion at what was almost universally believed to be a Marcos administration initiated assassination, there are at least two reasons why Makati capitalists and executives perceived the need to become actively involved in the anti-Marcos movement. First, it was important that they be able to dominate the above ground, political opposition to the regime. Their involvement in the recent parliamentary elections demonstrates this point. Second, it became increasingly obvi-