Introduction

Background: The Philippine Islands became a Spanish colony during the 16th century; they were ceded to the US in 1898 following the Spanish-American War. In 1935 the Philippines became a self-governing commonwealth. Manuel QUEZON was elected President and was tasked with preparing the country for independence after a 10-year transition. In 1942 the islands fell under Japanese occupation during WWII, and US forces and Filipinos fought together during 1944-45 to regain control. On 4 July 1946 the Philippines attained their independence. The 21-year rule of Ferdinand MARCOS ended in 1986, when a widespread popular rebellion forced him into exile and installed Corazon AQUINO as president. Her presidency was hampered by several coup attempts, which prevented a return to full political stability and economic development. Fidel RAMOS was elected president in 1992 and his administration was marked by greater stability and progress on economic reforms. In 1992, the US closed its last military bases on the islands. Joseph ESTRADA was elected president in 1998, but was succeeded by his vice-president, Gloria MACAPAGAL-ARROYO, in January 2001 after ESTRADA's stormy impeachment trial on corruption charges broke down and widespread demonstrations led to his ouster. MACAPAGAL-ARROYO was elected to a six-year term in May 2004. The Philippine Government faces threats from armed communist insurgencies and from Muslim separatists in the south.

Geography

Location: Southeastern Asia, archipelago between the Philippine Sea and the South China Sea, east of Vietnam

Geographic coordinates: 13 00 N, 122 00 E

Map references: Southeast Asia

Area: total: 300,000 sq km; land: 298,170 sq km; water: 1,830 sq km

Area - comparative: slightly larger than Arizona

Land boundaries: 0 km

Coastline: 36,289 km

Maritime claims: territorial sea: irregular polygon extending up to 100 nm from coastline as defined by 1898 treaty; since late 1970s has also claimed polygonal-shaped area in South China Sea up to 285 nm in breadth; exclusive economic zone: 200 nm; continental shelf: to depth of exploitation

Climate: tropical marine; northeast monsoon (November to April); southwest monsoon (May to October)

Terrain: mostly mountains with narrow to extensive coastal lowlands

Elevation extremes: lowest point: Philippine Sea 0 m; highest point: Mount Apo 2,954 m

Natural resources: timber, petroleum, nickel, cobalt, silver, gold, salt, copper

Land use: arable land: 18.95%; permanent crops: 16.77%; other: 64.28% (2001)

Irrigated land: 15,500 sq km (1998 est.)

Natural hazards: astride typhoon belt, usually affected by 15 and struck by five to six cyclonic storms per year; landslides; active volcanoes; destructive earthquakes; tsunamis

Environment - current issues: uncontrolled deforestation especially in watershed areas; soil

erosion; air and water pollution in major urban centers; coral reef degradation; increasing pollution of coastal mangrove swamps that are important fish breeding grounds

Environment - international agreements: party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling; signed, but not ratified: Air Pollution-Persistent Organic Pollutants

Geography - note: the Philippine archipelago is made up of 7,107 islands; favorably located in relation to many of Southeast Asia's main water bodies: the South China Sea, Philippine Sea, Sulu Sea, Celebes Sea, and Luzon Strait

People

Population: 87,857,473 (July 2005 est.)

Age structure: 0-14 years: 35.4% (male 15,869,636/female 15,255,588); 15-64 years: 60.6% (male 26,503,785/female 26,722,511); 65 years and over: 4% (male 1,523,213/female 1,982,740) (2005 est.)

Median age: total: 22.27 years; male: 21.77 years; female: 22.8 years (2005 est.)

Population growth rate: 1.84% (2005 est.)

Birth rate: 25.31 births/1,000 population (2005 est.)

Death rate: 5.47 deaths/1,000 population (2005 est.)

Net migration rate: -1.49 migrant(s)/1,000 population (2005 est.)

Sex ratio: at birth: 1.05 male(s)/female; under 15 years: 1.04 male(s)/female; 15-64 years: 0.99 male(s)/female; 65 years and over: 0.77 male(s)/female; total population: 1 male(s)/female (2005 est.)

Infant mortality rate: total: 23.51 deaths/1,000 live births; male: 26.34 deaths/1,000 live births; female: 20.54 deaths/1,000 live births (2005 est.)

Life expectancy at birth: total population: 69.91 years; male: 67.03 years; female: 72.92 years (2005 est.)

Total fertility rate: 3.16 children born/woman (2005 est.)

HIV/AIDS - adult prevalence rate: less than 0.1% (2003 est.)

HIV/AIDS - people living with HIV/AIDS: 9,000 (2003 est.)

HIV/AIDS - deaths: less than 500 (2003 est.)

Major infectious diseases: degree of risk: high

food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever

vectorborne diseases: dengue fever and malaria are high risks in some locations

animal contact disease: rabies (2004)

Nationality: noun: Filipino(s); adjective: Philippine

Ethnic groups: Tagalog 28.1%, Cebuano 13.1%, Llocano 9%, Bisaya/Binisaya 7.6%, Hiligaynon Ilonggo 7.5%, Bikol 6%, Waray 3.4%, other 25.3% (2000 census)

Religions: Roman Catholic 80.9%, Evangelical 2.8%, Iglesia ni Kristo 2.3%, Aglipayan 2%, other Christian 4.5%, Muslim 5%, other 1.8%, unspecified 0.6%, none 0.1% (2000 census)

Languages: two official languages - Filipino (based on Tagalog) and English; eight major dialects - Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinan

Literacy: definition: age 15 and over can read and write; total population: 92.6%; male: 92.5%;  female: 92.7% (2002)

Government

Country name: conventional long form: Republic of the Philippines; conventional short form: Philippines; local long form: Republika ng Pilipinas; local short form: Pilipinas

Government type: republic

Capital: Manila

Administrative divisions: 79 provinces and 116 chartered cities

: provinces: Abra, Agusan del Norte, Agusan del Sur, Aklan, Albay, Antique, Apayao, Aurora, Basilan, Bataan, Batanes, Batangas, Biliran, Benguet, Bohol, Bukidnon, Bulacan, Cagayan, Camarines Norte, Camarines Sur, Camiguin, Capiz, Catanduanes, Cavite, Cebu, Compostela, Davao del Norte, Davao del Sur, Davao Oriental, Eastern Samar, Guimaras, Ifugao, Ilocos Norte, Ilocos Sur, Iloilo, Isabela, Kalinga, Laguna, Lanao del Norte, Lanao del Sur, La Union, Leyte, Maguindanao, Marinduque, Masbate, Mindoro Occidental, Mindoro Oriental, Misamis Occidental, Misamis Oriental, Mountain Province, Negros Occidental, Negros Oriental, North Cotabato, Northern Samar, Nueva Ecija, Nueva Vizcaya, Palawan, Pampanga, Pangasinan, Quezon, Quirino, Rizal, Romblon, Samar, Sarangani, Siquijor, Sorsogon, South Cotabato, Southern Leyte, Sultan Kudarat, Sulu, Surigao del Norte, Surigao del Sur, Tarlac, Tawi-Tawi, Zambales, Zamboanga del Norte, Zamboanga del Sur, Zamboanga Sibugay

: chartered cities: Alaminos, Angeles, Antipolo, Bacolod, Bago, Baguio, Bais, Balanga, Batangas, Bayawan, Bislig, Butuan, Cabanatuan, Cadiz, Cagayan de Oro, Calamba, Calapan, Calbayog, Candon, Canlaon, Cauayan, Cavite, Cebu, Cotabato, Dagupan, Danao, Dapitan, Davao, Digos, Dipolog, Dumaguete, Escalante, Gapan, General Santos, Gingoog, Himamaylan, Iligan, Iloilo, Isabela, Iriga, Kabankalan, Kalookan, Kidapawan, Koronadal, La Carlota, Laoag, Lapu-Lapu, Las Pinas, Legazpi, Ligao, Lipa, Lucena, Maasin, Makati, Malabon, Malaybalay, Malolos, Mandaluyong, Mandaue, Manila, Marawi, Markina, Masbate, Muntinlupa, Munoz, Naga, Olongapo, Ormoc, Oroquieta, Ozamis, Pagadian, Palayan, Panabo, Paranaque, Pasay, Pasig, Passi, Puerto Princesa, Quezon, Roxas, Sagay, Samal, San Carlos (in Negros Occidental), San Carlos (in Pangasinan), San Fernando (in La Union), San Fernando (in Pampanga), San Jose, San Jose del Monte, San Pablo, Santa Rosa, Santiago, Silay, Sipalay, Sorsogon, Surigao, Tabaco, Tacloban, Tacurong, Tagaytay, Tagbilaran, Tagum, Talisay (in Cebu), Talisay (in Negros Oriental), Tanauan, Tangub, Tanjay, Tarlac, Toledo, Tuguegarao, Trece Martires, Urdaneta, Valencia, Valenzuela, Victorias, Vigan, Zamboanga

Independence: 12 June 1898 (from Spain)

National holiday: Independence Day, 12 June (1898)

note: 12 June 1898 was date of declaration of independence from Spain; 4 July 1946 was date of independence from US

Constitution: 2 February 1987, effective 11 February 1987

Legal system: based on Spanish and Anglo-American law; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Gloria MACAPAGAL-ARROYO (since 20 January 2001); note - president is both chief of state and head of government

head of government: President Gloria MACAPAGAL-ARROYO (since 20 January 2001)

cabinet: Cabinet appointed by the president with consent of Commission of Appointments

elections: president and vice president (Manuel "Noli" DE CASTRO) elected on separate tickets by popular vote for six-year terms; election last held 10 May 2004 (next to be held in May 2010)

election results: results of the election - Gloria MACAPAGAL-ARROYO elected president; percent of vote - Gloria MACAPAGAL-ARROYO 40%, Fernando POE 37%, three others 23%

Legislative branch: bicameral Congress or Kongreso consists of the Senate or Senado (24 seats - one-half elected every three years; members elected at large by popular vote to serve six-year terms) and the House of Representatives or Kapulungan Ng Mga Kinatawan (212 members representing districts plus 24 sectoral party-list members; members elected by popular vote to serve three-year terms; note - the Constitution prohibits the House of Representatives from having more than 250 members)

elections: Senate - last held 10 May 2004 (next to be held in May 2007); House of Representatives - elections last held 10 May 2004 (next to be held in May 2007)

election results: Senate - percent of vote by party - Lakas 30%, LP 13%, KNP 13%, independents 17%, others 27%; seats by party - Lakas 7, LP 3, KNP (coalition) 3, independents 4, others 6; note - there are 23 rather than 24 sitting senators because one senator was elected Vice President; 14 senators are pro-government, 9 are in opposition; House of Representatives - percent of vote by party - NA%; seats by party - Lakas 93, NPC 53, LP 34, LDP 11, others 20; party-listers 24; note - there are 211 rather than 212 sitting representatives because one was appointed Secretary of Tourism (2004)

Judicial branch: Supreme Court (15 justices are appointed by the president on the recommendation of the Judicial and Bar Council and serve until 70 years of age); Court of Appeals; Sandigan-bayan (special court for hearing corruption cases of government officials)

Economy

Economy - overview: The Philippines was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided in part by annual remittances of $7-8 billion from overseas workers and no sustained runup in asset prices or foreign borrowing prior to the crisis. From a 0.6% decline in 1998, GDP expanded by 2.4% in 1999, and 4.4% in 2000, but slowed to 3.2% in 2001 in the context of a global economic slowdown, an export slump, and political and security concerns. GDP growth accelerated to 4.3% in 2002, 4.7% in 2003, and about 6% in 2004, reflecting the continued resilience of the service sector, and improved exports and agricultural output. Nonetheless, it will take a higher, sustained growth path to make appreciable progress in poverty alleviation given the Philippines' high annual population growth rate and unequal distribution of income. The Philippines also faces higher oil prices, higher interest rates on its dollar borrowings, and higher inflation. Fiscal constraints limit Manila's ability to finance infrastructure and social spending. The Philippines' consistently large budget deficit has produced a high debt level and has forced Manila to spend a large portion of the national government budget on debt service. Large, unprofitable public enterprises, especially in the energy sector, contribute to the government's debt because of slow progress on privatization. Credit rating agencies are increasingly concerned about the Philippines' ability to sustain the debt; legislative progress on new revenue measures will weigh heavily on credit rating decisions.

GDP: purchasing power parity - $430.6 billion (2004 est.)

GDP - real growth rate: 5.9% (2004 est.)

GDP - per capita: purchasing power parity - $5,000 (2004 est.)

GDP - composition by sector: agriculture: 14.8%; industry: 31.9%; services: 53.2% (2004 est.)

Labor force: 35.86 million (2004 est.)

Labor force - by occupation: agriculture 36%, industry 16%, services 48% (2004 est.)

Unemployment rate: 11.7% (2004 est.)

Population below poverty line: 40% (2001 est.)

Household income or consumption by percentage share: lowest 10%: 2.3%; highest 10%: 31.9% (2003)

Distribution of family income - Gini index: 46.6 (2003)

Inflation rate (consumer prices): 5.5% (2004 est.)

Investment (gross fixed): 17% of GDP (2004 est.)

Budget: revenues: $12.22 billion; expenditures: $15.84 billion, including capital expenditures of $2.4 million (2004 est.)

Public debt: 74.2% of GDP (September 2004 est.)

Agriculture - products: sugarcane, coconuts, rice, corn, bananas, casavas, pineapples, fish, mangoes, pork, eggs, beef

Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

Industrial production growth rate: 5% (2004 est.)

Electricity - production: 52.86 billion kWh (2003)

Electricity - consumption: 46.05 billion kWh (2003)

Electricity - exports: 0 kWh (2003)

Electricity - imports: 0 kWh (2003)

Oil - production: 26,000 bbl/day (2003 est.)

Oil - consumption: 338,000 bbl/day (2003 est.)

Oil - exports: 0 bbl/day (2001)

Oil - imports: 312,000 bbl/day (2003)

Oil - proved reserves: 152 million bbl (1 January 2004)

Natural gas - production: 2.5 million cu m (2004 est.)

Natural gas - consumption: 25 million cu m (2004 est.)

Natural gas - exports: 0 cu m (2004 est.)

Natural gas - imports: 0 cu m (2004 est.)

Natural gas - proved reserves: 107.6 billion cu m (1 January 2004)

Current account balance: $3.6 billion (2004 est.)

Exports: $38.63 billion f.o.b. (2004 est.)

Exports - commodities: electronic equipment, machinery and transport equipment, garments,

optical instruments, coconut products, fruits and nuts, copper products, chemicals

Exports - partners: US 17.5%, Japan 15.8%, China 11.4%, Hong Kong 8.3%, Singapore 7.7%, Taiwan 6.4%, Netherlands 6%, Malaysia 5.5%, Germany 4.2% (2004)

Imports: $37.5 billion f.o.b. (2004 est.)

Imports - commodities: raw materials, machinery and equipment, fuels, vehicles and vehicle

parts, plastic, chemicals, grains

Imports - partners: Japan 20.6%, US 16%, Singapore 8.4%, China 7.4%, Hong Kong 5.3%, South Korea 5.2