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AREA

The total land area of the archipelago is approximately 300,000 square kilometers. The three largest island groups are Luzon with an area of 141,395 square kilometers, Visayas with 56,606 kilometers, and Mindanao with 101,999 square kilometers.

The archipelago is further subdivided into regions, provinces, cities, municipalities and barangays. There are 16 regions, including the National Capital Region (NCR), the Cordillera Administrative Region (CAR), CARAGA and the Autonomous Region In Muslim Mindanao (ARMM). Metropolitan Manila has been designated as the National Capital Region and is composed of the cities of Manila, Quezon, Pasay, Mandaluyong, Caloocan, Makati, Pasig, Muntinlupa, Las Pinas, Marikina, Valenzuela and Paranaque and the municipalities of Malabon, Navotas, Pateros, San Juan, and Taguig.

There are 79 provinces, 113 cities, 1,496 municipalities and 41,943 barangays.

CAPITAL

Manila

CLIMATE

The climate is tropical. The rainy season is from June to October, the cool dry season is from November to February, and the hot dry season is from March to May. Temperatures range from 21°C to 32°C, with the average at 27°C. Average humidity year round is 77%. All regions are exposed to typhoons, which are prevalent during the rainy season.

POPULATION

The Philippines has total population of 76.4M as of May 1, 2000. Population density is 255 persons per square kilometer.

LANGUAGE

The national language is Pilipino, derived mostly from Tagalog. There are about 70 other local languages and dialects spoken. The major ones are Cebuano, Ilocano, Hiligaynon, Bicol, Waray, Pangasinense, Pampango and Maranao. English is widely spoken and understood. Spanish and Chinese are still spoken by a minority.

BRIEF HISTORY

Filipino society and culture were fairly well developed prior to contacts with other countries as documented from archeological artifacts recovered.

Some 500 years before Ferdinand Magellan set foot in the Philippines, the Filipinos had commercial relations with China, Indo-China, Malaysia, India and Arabian countries. Chinese silk, porcelain, jars, gold, ivory, and beads were traded for wax, bird's nest, teakwood, rattan, pearls, precious stones and other marine and forest products.

On March 16, 1521, Ferdinand Magellan claimed the Philippines for the Spanish crown and brought great changes in the political, social and cultural life of the people. Christianity was introduced and centralized government was established. By the beginning of the 17th century, Spain's sovereignty over the Philippines had been fully established. Spain's rule for over three centuries was marked by sporadic revolts.

The first Filipino revolt was led by Lakandula, the last King of Manila, in 1574 to castigate the Spaniards because of their reneged promise to exempt the Filipinos from tribute and forced labor. The revolt was terminated when the Filipinos were promised better treatment. Many of the revolts were caused by the people's desire to win back their freedom and others were prompted by Spanish oppression.

The bloody climax of Filipino struggle for freedom was the Revolution of 1896, which was also the culmination of revolts against Spanish rule. The national hero Dr. Jose Rizal led a reform movement in the 1880s which eventually led to the 1896 revolution. Dr. Rizal was tried in Manila and was sentenced to die by musketry.

His death fuelled the fires of revolution and on June 12, 1898, leaders of the revolution declared the country a sovereign state and proclaimed the first Republic of the Philippines.

While the revolution embroiled the country, Spain declared war against the United States because of the latter's intervention over Cuba's fight for independence. Cuba was then a colony of Spain. Spain was defeated and on December 10, 1898, the Philippines was formally ceded to the United States by virtue of the Treaty of Paris. The occupation of the American was resented by the Filipinos and the outcome was the Filipino-American War which lasted for three years.

After several attempts of Filipino patriots to secure an act to grant independence from the United States, the Philippines was able to obtain the approval of the Tydings-McDuffie Independence Act, which provided for the establishment of a Commonwealth government to end after a ten-year period, and the adoption of a Constitution. A Constitutional Convention drafted the Constitution which was ratified on May 14, 1935. The election of Commonwealth officials followed, with Manuel L. Quezon as President, and Sergio Osmena as Vice President. On November 15, 1935, the new officials assumed office and thus began the ten-year period of self-government.

This was interrupted when the Philippines was drawn into a war in the Pacific as an ally of the Americans against the Japanese. Japanese troops occupied Manila in 1942 and for three years, the Filipinos suffered the ravages of war.

The liberation of the country was fully attained in February 1945, marking the start of the country's massive rehabilitation and rebuilding out of the devastation brought about by the war.

On July 4, 1946, a year after the end of the war, the American flag was lowered and the Philippine flag was hoisted, signaling the recognition of Philippine Independence from the U.S.

GOVERNMENT

The Republic of the Philippines, a democratic and republican state, has a presidential form of government under a new Constitution promulgated in 1986 and ratified by the people on February 2, 1987

The 1986 Constitution provided for a tripartite system: the Executive, represented by a President elected by direct vote of the people for a six-year term; the Legislative, represented by a bicameral Congress, composed of the Senate and the House of Representatives; and a Judiciary, with the power of judicial review.

Executive power is vested in the President, who is assisted by the Cabinet. The President is the head of the Cabinet, which is responsible for formulating key policies and carrying out executive functions. The President is the Commander-in-Chief of the Armed Forces.

The Congress has exclusive lawmaking powers. The Senate has 24 Senators elected at large and the House of Representatives has 219 Congressmen elected by district and by party list. The Judiciary is composed of the Supreme Court, the Court of Appeals and other inferior courts. The Supreme Court has a Chief Justice and 14 Associate Justices appointed by the President.

RELIGION

The predominant religion is Roman Catholicism. Roman Catholics make up nearly 85 percent of the population. The other religions are Protestantism and Islam.

CURRENCY

The official monetary unit is the peso. The exchange rate varies from day to day. As of July 27, 2001, one US dollar fetched P 53.50

ECONOMY

For the first quarter of 2001, Gross Domestic Product grew by 2.5%, slower than last year's first quarter growth of 3.3%. The political developments in the country likewise significantly affected investments, which rose a mere 0.1% in the first quarter. The slowdown in the world economy led to a fall in Philippine net exports by 65.9%.

The industrial sector continued to post weak growth of 0.1%. Manufacturing held up a bit with a growth rate of 2.4%, compared to 6.0% in the same period last year. Construction contracted by 10.6% as both public and private construction fell.

There, however, were resilient sectors such as agriculture and services. Agriculture posted a 2.3% growth rate, boosted by crops, livestock, fishery and poultry. The services sector benefited from the strong growth in communication (24.9%); retail trade (5.6%) and private services (7.0%)

Beginning in the second quarter, however, some indications of a pick-up growth are seen. On the demand side, a strong rebound of public investments is noted as national government capital expenditures expanded in April and May by 47.8% following the 24.6% contraction in the first quarter. Approved investment projects in the first six months of the year also improved: BOI-approved projects rose 205.4% while PEZA approved projects increased by 19.4%.

Merchandise exports rose by 6.5% in April after several months of decline. What is noteworthy is the growth in raw materials and intermediate goods for two consecutive months (March - April) after more than a year of decline. Imports of office and EDP machines were also robust.

In April, the volume of industrial production exhibited a strong growth of 12.7% while sales volume growth rose 6.2%.

In agriculture, the Bureau of Agriculture Statistics forecast palay production to grow by 7.5% in the second quarter.

The pick-up in real sector recovery beginning in the second quarter is evident in the labor market data for April. Almost 2 million jobs were created compared to a loss of about 1 million jobs over the same period last year. As a result, unemployment rate fell from 13.9% in April 2000 to 13.3% in April 2001. (April unemployment rate is normally the highest due to seasonality factors: new graduates and school - age workers flock to the labor market during the month.)

Given these indicators, a GDP growth of about 2.8 - 3.0% is expected in the second quarter. While this is slightly lower than the 4.3% growth for the same quarter a year ago, it nonetheless rules out the onset of a recession.

The recent volatility of the peso is partly global and partly due to real or demand factors. The peso has been dragged down by the global strengthening of the dollar. It is noteworthy, however, that the peso has been gaining against the Euro (3.22%) and the Yen (2.46%). This mitigates the impact on inflation of the peso depreciation against the US dollar. The peso is expected to gradually stabilize as monetary authorities continue to implement prudent policies.

The average inflation rate in the first two quarters of 2001 reached 6.7%, still within the government's target of 6.0 - 7.0%. Inflation is expected to slightly rise to 6.8% in July, given the impact of the recent typhoon on vegetable price and the oil prices hikes.

A GNP growth of 3.3 - 3.8% in 2001 can be expected, considering the early leading indicators and the expected impact of the package of policy measures being launched by President Gloria Macapagal Arroyo. Growth is projected to strengthen in 2002 following the global economic recovery.

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The relationship between the Philippines and the United States began at the end of the nineteen century, during the Spanish-American war, in which Filipino revolutionaries and American forces fought together to liberate the Philippines from Spain's colonial domination. After Admiral Dewey defeated the Spanish fleet in the battle of Manila Bay in 1898, Spain agreed to cede the Philippines to the United States under the terms of the Treaty of Paris.

Filipino nationalists led by Emilio Aguinaldo, President of the First Philippine Republic, refused to acknowledge the cession and insisted on national independence. The Philippine-American war ensued, lasting from 1898 to 1902 which ended with the establishment of American sovereignty over the Philippines.

In the immediately succeeding years, however, Filipinos and Americans overcame the wounds of war. Americans authorities favored political, social and economic developments which encouraged Filipinos to work for eventual independence. The first Philippine legislative assembly under American tutelage was elected in 1907. Public education, health and other services were modernized. A civil service was created that the Filipinos gradually took over.

In 1916, The Philippine Autonomy Act, also known as the Jones Law, was passed by the U.S. Congress, which gave the Philippines considerable home rule and promised independence after the establishment of a stable government. Pursuant to the Tydings-McDuffie Act of 1934, the Philippines became a fully self-governng commonwealth in 1935 in preparation for complete independence after ten years.

The outbreak of World War II interrupted the progress towards complete freedom for the Philippines. Despite the heroic defense of the Philippines by Filipino and American soldiers in Bataan and Corregidor, the Philippines fell to Japanese occupation. In 1945, Filipinos and Americans fighting together liberated the Philippines. On July 4, 1946, the Republic of the Philippines was finally granted independence by the United States.

During the Cold War, which followed World War II, the Philippines fought togeter with the United States and other United Nations members in the Korean War.The Philippines supported the forward deployment of U.S. Forces in the pacific region - a key pillar of regional stability by hosting U.S. military bases, mainly Clark and Subic, under the terms of the bilateral Philippines-United States 1947 Military Bases Agreements (MBA).

The Philippines and the United States did not extend the MBA, which led to the closing of the bases in the Philippines. the two countries, nonetheless, remain firm allies by virtue of their bilateral 1951 Mutual Defense Treaty (MDT). The alliance was further strengthened by the 1998 Philippines-United States Visiting Forces Agreement (VFA), which allowed for the resumption of large-scale joint exercises and other defense cooperation activities. The Philippines and the United States are preparing their alliance for the challenges of the post-Cold War era.

The Philippine and American governments have also cooperated to promote bilateral economic relations. The Americans provided an imeptus to trade, commerce and industry in the Philippines. Until the 1930s, there was free trade between the Philippines and the United States. During this period, the Philippine sugar and coconut industries flourished. The domestic mining industry was developed, which for several decades served as a linchpin of overall economic growth.

The Americans also undertook major infrastructure projects that brought roads, bridges, schools and hospitals to remote areas. Over the past thirty years, almost US$4 billion in development assistance was provided through USAID. some 8, 500 Peace Corps volunteers have served in the Philippines from the start of the Peace Corps program in 1961. Such development cooperation has helped improve local government, democratic governance, family planning, environmental conversation, agriculture and human resources training in the Philippines. In addition, thousands of Filipinos have studied in American institutions of higher and specialized learning.

However, the special economic relationship between the Philippines and the United States could not be sustained, and in its place grew a more complex and less independent relationship. The two nations have forged a new partnership anchored on the enhanced Philippine capacity to tap trade and investment opportunities in a freely competitive international environment.

Since independence, the Philippine-American relationship has been strengthened by exchanges of visits at the highest levels. Through the years, Philppine Presidents Manuel Roxas, Elpidio Quirino, Carlos Garcia, Diosdado Macapagal, Ferdinand Marcos, Corazon Aquino, Fidel Ramos and Joseph Ejercito Estrada have paid state of official visits to the United States. U.S. Presidents Dwight Eisenhower, Lyndon Johnson, Richard Nixon, Gerald Ford and William Clinton have visited the Philippines.

Philippine-American cooperation has not been limited to the bilateral sphere. The two countries have also worked together in the United Nations, including in peacekeeping operations, in the ASEAN Regional Forum (ARF) and the Asia Pacific Economic Cooperation (APEC) context. The Philippines and the United States pursue the same goals of global and regional peace, security, economic developments and prosperity through multilateral dialogue.

In addition, there is a vital human dimension to the bilateral Philippine-American relationship as well. An estimated three million Filipinos and Americans of Philippines ancestry live in the United States, while there are some 100,000 American Citizens in the Philippines. These personal family and community connections between Filipinos and Americans have created a multicultural trans-Pacific bridge between the two countries that enhances dynamic people-to-people interaction at all levels.

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                                 a- BOI-Approved only. PEZA registered FDI for 2000 amounted to US$ 6,055,900.                                                                               b- January – June only

TABLE 1
Agricultural Imports by the Philippines from the United States
(in US dollars)

                             Source: Department of Trade and Industry

TABLE 2
Foreign Agricultural Trade of the United States
United States Agricultural Exports

                         Source: Economic Research Service, United States Department of Agriculture

 TABLE 3
Top Three Sources of RP Agricultural Imports (Food)

                             Source: Department of Trade and Industry

TABLE 4
Top Three Sources of RP Agricultural Imports (Resource-based)

Source: Department of Trade and Industry

TABLE 5

Agricultural Imports by the Philippines
(Value in US dollars)

                            1 Includes non-food items such as mineral products, forest products, tobacco,
                            fibers, oils and rubber.

                            Source: Department of Trade and Industry

TABLE 6

Agricultural Imports for Consumption by the United States from the Philippines
(1995 - 1997)
(In million US dollars)

1     Competitive agricultural import products consists of all products similar to
agricultural commodities produced commercially in the United States, together with all agricultural products interchangeable to any significant extent with such U.S. commodities.
2    Non-competitive agricultural products include all others, about 90 percent of which consist of rubber, coffee, raw silk, cacao beans, wool for carpets, bananas, tea, spices, and vegetable fibers.

Source: Economic Research Service, Market and Trade Economics Division. Compiled from reports of the U.S. Department of Commerce

USAID AND PL 480 Grant to the Philippines for 2000-2001

Commodity Assistance*

*Source: USAID, Manila Office
** This referes to incremental funding provided for the year covered by an
amendment to a particular Strategic Objective Grant Agreement

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XVIII. Maritime Matters:
 
1. Agreement relating to naval charter for lease of vessels to the Philippines. Exchanges of notes at Manila 26 September and 09 December 1947, and 06 May and 07 Jung 1948; entered into force 07 June 1948.
 
2. Agreement relating to the loan of a floating dry dock to the Republic of the Philippines. Exchange of notes at Manila 28 September and 04 October 1961; entered into force 04 October 1961. Extension and amendment 04 November 1966.
 
XIX. Military Cemeteries and Monuments:
 
1. Agreement relating to cooperation in consecrating Corregidor Island as a World War 11 memorial site. with annex.  Exchange of notes at Manila 22 December 1965, entered into force 22 December 1965.
 
XX. Mutual Security:
 
1. Agreement relating to the assurances required under the Mutual Security Act of 1951. Exchange of notes at Manila 04 and 07 January 1952; entered into force 07 January 1952.
 
XXI. Patents:
 
1. Agreement relating to the reciprocal application of certain rights of priority in the filing of patent applications. Exchange of notes at Washington 12 February and 04 and 23 August 1948; entered into force 23 August 1948.
 
XXII. Peace Corps:
 
1. Agreement relating to the establishment of a Peace Corps program in the Republic of the Philippines. Exchange of notes at Manila 11 and 31 October 1961. Entered into force 31 October 1961.
   
XXIII. Postal Matters:
 
1. Convention for the exchange of money orders. Signed at Washington 29 January, and at Manila 12 March 1951; entered into force 01 April 1951.
 
2. Parcel post convention. Signed at Manila 21 September and at Washington 12 November 1964; entered into force 01 November 1965.
 
XXIV. Publications:
 
1. Agreement relating to the exchange of official publications. Exchange of notes at Manila 12 April and 07 June 1948 entered into force 07 June 1948. Amended 02 and 20 December 1965.
 
XXV. Relief Supplies and Packages;
 
1. Agreement providing for duty-free entry into the Philippines and exemption from internal taxation of relief supplies and packages. Exchange of notes at Manila 29 April 1954 and 18 October 1956; entered into force 18 October 1958. Amended 06 August and 19 September 1970.
 
XXVI. Social Security:
 
1. Agreement providing for social security beverage for non-United States citizen employees of the United States armed forces in the Philippines. Exchange of notes at Manila 23 Apri1 1962 and 30 August 1963; entered into force 30 August 1963.
 
2. Agreement providing for social security coverage of non-United States citizen employees of the United States Employees Association, JUSMAG Officers Club, JUSMAG NCO Club and the AID Employees' Recreation Association in the Philippines. Exchange of notes at Manila 30 August and 08 October 1963; entered into force 08 October 1963.
 
3. Agreement providing for social security coverage for Philippine citizen civilian employees of the Agency for International Development Mission to the Philippines, with annex. Exchange of notes at Manila 12 November 1964 and 10 March 1965, entered into force 10 March 1965.
 
4. Agreement providing for social security coverage of Philippine citizen civilian employees of the Peace Corps and United States Joint Military Advisory Group (JUSMAG), with annex.  Exchange of notes at Manila 05 April and 15 July 1965; entered into force 15 July 1965.
 
XXVII. Taxation:
 
1. Convention with respect to taxes on income.  Signed at Manila 01 October 1976; entered into force 16 October 1982.
 
XXVIII. Telecommunication:
 
1. Agreement regarding radio broadcasting facilities with protocol and exchange of notes. Signed at Manila 06 May 1963; entered into force 06 May 1963. Amended 10 September 1965.
 
2. Agreement relating to the transfer to the Philippines of radio broadcasting facilities at Malolos, Bulacan Province pursuant to the agreement of 06 May 1963 as amended. Exchange of notes at Manila 13 July 1966; entered into force 13 July 1966
 
3. Agreement relating to the reciprocal granting of authorizations to permit licensed amateur radio operators of either country to operate their stations in the other country. Exchange of notes at Manila 25 October 1976; entered into force 25 October 1976.
 
XXIX. Tourism:
 
1. Agreement on the development and facilitation of reciprocal tourism. Signed at Washington 17 September 1982; entered into force 17 September 1982.
 
XXX. Trade and Commerce
 
1. Agreement relating to entry of nationals of either country into the territories of the other for purposes of trade, investment and related activities. Exchange of notes at Washington 06 September 1955; entered into force 06 September 1955.
 
2. Agreement on trade concessions and contributions within the framework of the multilateral trade negotiations, and related letters of 28 January and 04 February 1980. Signed at Manila 30 October 1979; entered into force 30 October 1979.
 
3. Agreement relating to the subsidization of exports in the context of the agreement on interpretation and application of articles VI, XVI and XXII (Subsidies code) of the General Agreement an Tariffs and Trade. Exchange of letters at Manila and Washington 14 and 15 March 1985.
 
4. Philippines-United States Joint Statement on Electronic Commerce. Signed at Washington 27 July 2000
 
XXXI. Environment and Public Health:
 
1. Joint Statement between the Republic of the Philippines and the United States of America for Bilateral Cooperation on Environment and Public Health. Signed at Washington 27 July 2000.
 
2. Joint Statement by the Republic of the Philippines and the United States of America on the US$5.0 Grant for FY Under Global Climate Change Program. Signed at Washington 27 July 2000.
 
3. Agreement between the Government of the Philippines and the Government of the United States concerning the Transboundary Movement of Hazardous from the Philippines to the United States. Signed at Manila 20 September 2001.
 
XXXII. Narcotics Control
 
1. Letter of Agreement on Narcotics Control and Law Enforcement. Signed at Manila 20 September 2000.

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Based on an October 2001 report from the Commission of Filipinos Overseas (CFO) the United States was the major destination of Filipino immigrants.  The stock estimate of Filipino Immigrants by Major Destination Country shows that 1.8M or 71% went to the United States.  Canada was a far second, with .277M or 11% and Australia, third with .202 or 8%.

However, in terms of Overseas Filipino Workers (OFWs), the United States (US) is only the eighth largest employer, accounting for 59, 767 OFWs or 2% of the total.  The largest employer of OFWs is Saudi Arabia (829,300 or 27.73%) with Hong Kong a far second (148,844 or 4.98%).

In the United States, 51% of the population are foreign-born.  Of this number, Filipinos account for 6%, ranking second to Mexicans.  Major destinations of these immigrants are California, Hawaii, Illinois, New Jersey, New York, Washington, Texas, Florida, Virginia and Nevada.

A majority of the Filipino immigrants entered the US between 1980 – 1990.  The profile shows that the median age of Filipinos in the US in 1990 was 31 or younger than the national median of 33.  Educational attainment was also higher compared to other foreign-born immigrants.   Forty-three percent of Filipinos, 25 years and over, had at least a college degree, compared to 20% of all foreign-born.

Filipinos were also more productive, having a 75% labor force participation rate than all Americans (65%).  Of this number, 28% were occupying managerial/professional positions, while 36% were holding technical positions.  In terms of income, the median income for families headed by Philippine-born individuals was highest at US$47,794, compared to US$35,225 for all families.  Additionally, the poverty incidence among Filipinos in the US was lowest at 6%, compared to the national level of 13%.

It can thus be concluded that the substantial number of Filipinos in the US are young and with a relatively high educational attainment.  Majority are gainfully employed and have a high median income.  Consequently, poverty incidence is low.  For a majority of Filipino immigrants, then, the US is indeed a land of opportunity.

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The main values and goals supported by the CDI are:

• The promotion and defense of human rights and peace at a national and international level
  
• The recognition of the unalienable nature of the person, his social dimension and the defence of basic social institutions, in particular, the family
  
• The promotion and defence of democracy and its institutions
  
• The promotion of integral human development through the social and ecological market economy
  
• The application of subsidiarity, solidarity and justice.

Over the last few years, the CDI has increased its geographic presence and the number of its members from 67 in 1994 to 76 at the end of 1977. This total does not include about 20 parties that are part of European regional parties that have still not joined the CDI.

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