The Philippines in 1996: A House Finally in Order?

Abstract

The year saw the unfolding of developments that, after decades of domestic turmoil and economic uncertainty, buoyed the hope of Filipinos that their house may finally have been put in order. Despite initial opposition from various sectors in Southern Philippines, peace was forged with the Moro National Liberation Front (MNLF), a step that could undermine the credibility and legitimacy of secessionism advocated by splinter Muslim groups such as the Moro Islamic Liberation Front (MILF) and facilitate the expansion of the constituency for peace and development in Mindanao. However, the unabated ambition of political incumbents whose term of office expires in 1998 threatens to undermine the framework of political and constitutional stability that has served as the environment for economic growth since 1992. The Philippine economy continued to grow even as key elements of the economic reform package still remained to be put in place and the political coalition that had supported the macroeconomic reforms in the last four years unraveled. The successful hosting of the Fourth Asia Pacific Economic Cooperation (APEC) Summit in Subic Bay in November was the culmination of a year of Philippine leadership in fleshing out the Osaka Summit's action agenda into voluntary individual and collective initiatives by the APEC member economies. In spite of early political maneuvering by probable candidates for the presidential race in 1998, the economy looked quite healthy at the end of 1996, earning for the Philippines a label as the newest tiger cub in Asia.