Philippines
The fertile islands of the Philippines have been inhabited for thousands of years. Many invaders sought to take control of the area, including the explorer Magellan who landed in 1521 and was killed by native warriors.
Area: 117,000 square miles Capital: Manila Government: Republic Population: 82.85 million Language: English, Filipino GDP per capita: USD 3,800 Monetary unit: Philippine Peso Exports: electronic equipment, garments, coconut products, machinery and transport equipment Imports: Raw materials and intermediate goods, capital goods, consumer goods, fuels.
Business-friendly government offers many investment incentives
History
Gloria Macapagal-Arroyo, President
The Spanish conquistador Ruy Lopez de Villalobos gave the Philippines its name; another Spanish explorer, Miguel Lopez de Legazpe, established a colony in Cebu (1565) and founded Manila (1571). Spanish domination ended in 1898 when Commodore George Dewey won the Battle of Manila Bay and the Philippines was ceded to the United States; the nation gained independence in 1946.
Ferdinand Marcos ruled the country under martial law for two decades. Former Philippines senator Benigno Aquino returned to the country in 1983 to reestablish democracy, but was assassinated. His widow Corazon Aquino became president in 1986, marking a return to democracy. Democratic rule continues today under President Gloria Macapagal-Arroyo, who is successfully supporting economic liber-alization.
Economy
As the world’s third-largest English-speaking country, with an abundance of highly skilled workers and a strategic location in the ASEAN region, the Philippines has attracted significant foreign investment.
President Gloria Macapagal-Arroyo, who studied at Georgetown University, is strongly committed to continuing the economic liberalization and business-friendly policies that have led to the Philippines’ strong growth over the past two decades. She aims to achieve privatization of the country’s energy sector in the near future, which will make the nation even more competitive.
As Felipe M. Medalla, former Secretary of Socio-Economic Planning at the National Economic and Development Authority, explains, “We have a big domestic market, with huge human capital, and we are the ideal entry point for United States investors wishing to establish a presence in the ASEAN region.” He adds that the Philippines has created a number of industrial zones, including special IT zones, with extensive attractions for investors. “We want to get export-oriented investors, and we do not want to tax them,” he says.
The IT sector remains a powerful force in the Philippines’ economy, and the government is working to make the country Asia’s e-services hub. The textiles sector is also one of the world’s strongest and most competitive, with local companies employing the latest technologies and serving export markets throughout the world; these companies represent excellent investment potential.
An attractive quality of life for expatriates, extensive natural resources, a thriving tourism sector and compelling investment incentives are ensuring that the Philippines will continue to achieve economic growth in the future.
