Changes

At $3.8 billion, the overall balance of payments ended 2006 with its largest surplus in nearly a decade. Exports totaled $47.4 billion in 2006, relying heavily on electronics shipments for about two-thirds of export revenues. Although there has been some improvement over the years, local value added of electronics exports remains relatively low at about 30%. Net foreign direct investment (FDI) inflow rose to $2.35 billion in 2006, nearly double the 2005 level. The U.S. remains the Philippines' largest trading partner with over $17 billion in two-way trade, and the largest investor with more than $6.5 billion in total FDI. Increased export revenue, investment inflows, and foreign remittances helped produce a current account surplus of $5 billion in 2006 (equivalent to 4.3% of GDP).  

At $3.8 billion, the overall balance of payments ended 2006 with its largest surplus in nearly a decade. Exports totaled $47.4 billion in 2006, relying heavily on electronics shipments for about two-thirds of export revenues. Although there has been some improvement over the years, local value added of electronics exports remains relatively low at about 30%. Net foreign direct investment (FDI) inflow rose to $2.35 billion in 2006, nearly double the 2005 level. The U.S. remains the Philippines' largest trading partner with over $17 billion in two-way trade, and the largest investor with more than $6.5 billion in total FDI. Increased export revenue, investment inflows, and foreign remittances helped produce a current account surplus of $5 billion in 2006 (equivalent to 4.3% of GDP).  

Increased foreign capital inflows made the Philippine stock market among the top performers in East Asia during 2006. Similarly, the Philippine peso appreciated about 7.5% to the U.S. dollar, making it among East Asia's best performing currencies in 2005-2006. The Philippines maintained reserves of foreign exchange and gold of $22.97 billion, adequate for 4.3 months of goods and services imports and equivalent to 2.5 times foreign debts maturing over the next 12 months.  

Increased foreign capital inflows made the Philippine stock market among the top performers in East Asia during 2006. Similarly, the Philippine peso appreciated about 7.5% to the U.S. dollar, making it among East Asia's best performing currencies in 2005–2006. The Philippines maintained reserves of foreign exchange and gold of $22.97 billion, adequate for 4.3 months of goods and services imports and equivalent to 2.5 times foreign debts maturing over the next 12 months.  

Determined efforts to avert a fiscal and debt crisis through a combination of expenditure control and, more recently, new revenue measures have contributed significantly to positive financial sector indicators and the current air of cautious optimism. December 2004 legislation provided for biennial adjustments to the excise tax rates for tobacco and liquor products until 2011, while a law signed in January 2005 seeks to institute a performance-based rewards and penalty system in the government's revenue collection agencies. Despite public resistance and initial legal challenges, the government began implementing an expanded Value Added Tax law in November 2005, which added an estimated 75 billion pesos ($1.5 billion) to national government revenues during 2006 (equivalent to 1.2% of GDP).  

Determined efforts to avert a fiscal and debt crisis through a combination of expenditure control and, more recently, new revenue measures have contributed significantly to positive financial sector indicators and the current air of cautious optimism. December 2004 legislation provided for biennial adjustments to the excise tax rates for tobacco and liquor products until 2011, while a law signed in January 2005 seeks to institute a performance-based rewards and penalty system in the government's revenue collection agencies. Despite public resistance and initial legal challenges, the government began implementing an expanded Value Added Tax law in November 2005, which added an estimated 75 billion pesos ($1.5 billion) to national government revenues during 2006 (equivalent to 1.2% of GDP).  

==History==

==History==

The history of the Philippines can be divided into four distinct phases: the pre-Spanish period (before 1521); the Spanish period (1521-1898); the American period (1898-1946); and the post-independence period (1946–present).  

The history of the Philippines can be divided into four distinct phases: the pre-Spanish period (before 1521); the Spanish period (1521–1898); the American period (1898–1946); and the post-independence period (1946–present).  

====Pre-Spanish Period====

====Pre-Spanish Period====

Following Admiral George Dewey's defeat of the Spanish fleet in Manila Bay, the U.S. occupied the Philippines. Spain ceded the islands to the United States under the terms of the Treaty of Paris (December 10, 1898) that ended the war.  

Following Admiral George Dewey's defeat of the Spanish fleet in Manila Bay, the U.S. occupied the Philippines. Spain ceded the islands to the United States under the terms of the Treaty of Paris (December 10, 1898) that ended the war.  

A war of resistance against U.S. rule, led by revolutionary General Aguinaldo, broke out in 1899. This conflict claimed the lives of hundreds of thousands of Filipinos and thousands of Americans [http://www.historyguy.com/PhilipineAmericanwar.html]. Filipinos and an increasing number of American historians refer to these hostilities as the [[Filipino-American War]] (1899-1902), and in 1999, the U.S. Library of Congress reclassified its references to use this term. In 1901, Aguinaldo was captured and swore allegiance to the U.S., and resistance gradually died out until the conflict ended with a Peace Proclamation on July 4, 1902. However, armed resistance continued sporadically until 1913, especially among the Muslims in Mindanao and Sulu, with heavy casualties on both sides.  

A war of resistance against U.S. rule, led by revolutionary General Aguinaldo, broke out in 1899. This conflict claimed the lives of hundreds of thousands of Filipinos and thousands of Americans [http://www.historyguy.com/PhilipineAmericanwar.html]. Filipinos and an increasing number of American historians refer to these hostilities as the [[Filipino-American War]] (1899–1902), and in 1999, the U.S. Library of Congress reclassified its references to use this term. In 1901, Aguinaldo was captured and swore allegiance to the U.S., and resistance gradually died out until the conflict ended with a Peace Proclamation on July 4, 1902. However, armed resistance continued sporadically until 1913, especially among the Muslims in Mindanao and Sulu, with heavy casualties on both sides.  

U.S. administration of the Philippines was always declared to be temporary and aimed to develop institutions that would permit and encourage the eventual establishment of a free and democratic government. Therefore, U.S. officials concentrated on the creation of such practical supports for democratic government as public education, public infrastructure, and a sound legal system.  

U.S. administration of the Philippines was always declared to be temporary and aimed to develop institutions that would permit and encourage the eventual establishment of a free and democratic government. Therefore, U.S. officials concentrated on the creation of such practical supports for democratic government as public education, public infrastructure, and a sound legal system.  

The early years of independence were dominated by U.S.-assisted postwar reconstruction. The communist-inspired Huk Rebellion (1945–53) complicated recovery efforts before its successful suppression under the leadership of President Ramon Magsaysay. The succeeding administrations of Presidents Carlos P. Garcia (1957–61) and Diosdado Macapagal (1961–65) sought to expand Philippine ties to its Asian neighbors, implement domestic reform programs, and develop and diversify the economy.  

The early years of independence were dominated by U.S.-assisted postwar reconstruction. The communist-inspired Huk Rebellion (1945–53) complicated recovery efforts before its successful suppression under the leadership of President Ramon Magsaysay. The succeeding administrations of Presidents Carlos P. Garcia (1957–61) and Diosdado Macapagal (1961–65) sought to expand Philippine ties to its Asian neighbors, implement domestic reform programs, and develop and diversify the economy.  

In 1972, President Ferdinand E. Marcos (1965–86) declared martial law, citing growing lawlessness and open rebellion by the communist rebels as his justification. Marcos governed from 1973 until mid-1981 in accordance with the transitory provisions of a new constitution that replaced the commonwealth constitution of 1935. He suppressed democratic institutions and restricted civil liberties during the martial law period, ruling largely by decree and popular referenda. The government began a process of political normalization during 1978-81, culminating in the reelection of President Marcos to a six-year term that would have ended in 1987. The Marcos government's respect for human rights remained low despite the end of martial law on January 17, 1981. His government retained its wide arrest and detention powers, and corruption and cronyism contributed to a serious decline in economic growth and development.  

In 1972, President Ferdinand E. Marcos (1965–86) declared martial law, citing growing lawlessness and open rebellion by the communist rebels as his justification. Marcos governed from 1973 until mid-1981 in accordance with the transitory provisions of a new constitution that replaced the commonwealth constitution of 1935. He suppressed democratic institutions and restricted civil liberties during the martial law period, ruling largely by decree and popular referenda. The government began a process of political normalization during 1978–81, culminating in the reelection of President Marcos to a six-year term that would have ended in 1987. The Marcos government's respect for human rights remained low despite the end of martial law on January 17, 1981. His government retained its wide arrest and detention powers, and corruption and cronyism contributed to a serious decline in economic growth and development.  

The assassination of opposition leader Benigno (Ninoy) Aquino upon his return to the Philippines in 1983 after a long period of exile coalesced popular dissatisfaction with Marcos and set in motion a succession of events that culminated in a snap presidential election in February 1986. The opposition united under Aquino's widow, Corazon Aquino, and Salvador Laurel, head of the United Nationalist Democratic Organization (UNIDO). The election was marred by widespread electoral fraud on the part of Marcos and his supporters. International observers, including a U.S. delegation led by Senator Richard Lugar (R-Indiana), denounced the official results. Marcos was forced to flee the Philippines in the face of a peaceful civilian-military uprising that ousted him and installed Corazon Aquino as president on February 25, 1986.  

The assassination of opposition leader Benigno (Ninoy) Aquino upon his return to the Philippines in 1983 after a long period of exile coalesced popular dissatisfaction with Marcos and set in motion a succession of events that culminated in a snap presidential election in February 1986. The opposition united under Aquino's widow, Corazon Aquino, and Salvador Laurel, head of the United Nationalist Democratic Organization (UNIDO). The election was marred by widespread electoral fraud on the part of Marcos and his supporters. International observers, including a U.S. delegation led by Senator Richard Lugar (R-Indiana), denounced the official results. Marcos was forced to flee the Philippines in the face of a peaceful civilian-military uprising that ousted him and installed Corazon Aquino as president on February 25, 1986.  

Popular movie actor Joseph Ejercito Estrada's election as president in May 1998 marked the Philippines' third democratic succession since the ouster of Marcos. Estrada was elected with overwhelming mass support on a platform promising poverty alleviation and an anti-crime crackdown.  

Popular movie actor Joseph Ejercito Estrada's election as president in May 1998 marked the Philippines' third democratic succession since the ouster of Marcos. Estrada was elected with overwhelming mass support on a platform promising poverty alleviation and an anti-crime crackdown.  

Gloria Macapagal-Arroyo, elected vice president in 1998, assumed the presidency in January 2001 after widespread demonstrations that followed the breakdown of Estrada's impeachment trial on corruption charges. The Philippine Supreme Court subsequently endorsed unanimously the constitutionality of the transfer of power. National and local elections took place in May 2004. Under the constitution, Arroyo was eligible for another six-year term as president, and she won a hard-fought campaign against her primary challenger, movie actor Fernando Poe, Jr., in elections held May 10, 2004. Noli De Castro was elected vice president.  

Gloria Macapagal-Arroyo, elected vice president in 1998, assumed the presidency in January 2001 after widespread demonstrations that followed the breakdown of Estrada's impeachment trial on corruption charges. The Philippine Supreme Court subsequently endorsed unanimously the constitutionality of the transfer of power. National and local elections took place in May 2004. Under the constitution, Arroyo was eligible for another six-year term as president, and she won a hard-fought campaign against her primary challenger, movie actor Fernando Poe Jr., in elections held May 10, 2004. Noli De Castro was elected vice president.  

Impeachment charges were brought against Arroyo in June 2005 for allegedly tampering with the results of the elections after purported tapes of her speaking with an electoral official during the vote count surfaced, but Congress rejected the charges in September 2005. Similar charges were discussed and dismissed by Congress in the summer of 2006.  

Impeachment charges were brought against Arroyo in June 2005 for allegedly tampering with the results of the elections after purported tapes of her speaking with an electoral official during the vote count surfaced, but Congress rejected the charges in September 2005. Similar charges were discussed and dismissed by Congress in the summer of 2006.  

{{Asian Countries}}

{{Asian Countries}}

[[Category:Archipelagos]]

[[Category:Archipelagos]]