Reaction: Ferdinand Marcos and Valencia Site Pol

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BEST COLLEGE OF POLOMOLOK , INC.
Valencia Site Pol. South Cot.

Reaction Paper
In
Araling Panlipunan I (ArPan)

Date:
03 – 07 – 13
By:
Glady Faith R. Cayare

BEST COLLEGE OF POLOMOLOK , INC.
Valencia Site Pol. South Cot.

Reaction Paper
In
Araling Panlipunan I (ArPan)

Date:
03 – 07 – 13
By:
Cindy Rose Momo

*Economy :
The Philippines found itself in an economic crisis in early 1970, in large part the consequence of the profligate spending of government funds by President Marcos in his reelection bid. The government, unable to meet payments on its US$2.3 billion international debt, worked out a US$27.5 million standby credit arrangement with the International Monetary Fund (IMF) that involved renegotiating the country's external debt and devaluing the Philippine currency to P6.40 to the United States dollar. The government, unwilling and unable to take the necessary steps to deal with economic difficulties on its own, submitted to the external dictates of the IMF. It was a pattern that would be repeated with increasing frequency in the next twenty years. In September 1972, Marcos declared martial law, claiming that the country was faced with revolutions from both the left and the right. He gathered around him a group of businessmen, used presidential decrees and letters of instruction to provide them with monopoly positions within the economy, and began channeling resources to himself and his associates, instituting what came to be called "crony capitalism." By the time Marcos fled the Philippines in February 1986, monopolization and corruption had severely crippled the economy. In the beginning, this tendency was not so obvious. Marcos's efforts to create a "New Society" were supported widely by the business community, both Filipino and foreign, by Washington, and, de facto, by the multilateral institutions. Foreign investment was encouraged: an export-processing zone was opened; a range of additional investment incentives was created,...
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