President Macapagal took position as president on Nov.

14, 1961

Performance as President
Macapagal became president on Nov. 14, 1961, defeating former president Carlos P.
Garcia. In his inaugural statement he declared: "I shall be president not only of the rich but
more so of the poor. We must help bridge the wide gap between the poor man and the man
of wealth, not by pulling down the rich to his level as Communism desires, but by raising the
poor towards the more abundant life." With his naiveté and paternalistic attitude,
Macapagal vowed to open Malakanyang Palace, the presidential residence, to all the
citizens. He canceled the inaugural ball and issued a decree forbidding any member of his
family or of his wife's to participate in any business deals with the government. He
dismissed corrupt officials and started court action against those who could not explain their
sudden acquisition of wealth. He changed the date that Filipinos celebrate their
independence to June 12 from July 4. In 1898, Filipino revolutionaries had declared
independence from Spain on June 12; July 4 was the date the Philippines were declared
independent by the United States after World War II.
Macapagal aimed to restore morality to public life by concentrating on the elevation of the
living standard of the masses. Addressing Congress in 1962, he formulated the objectives
of his socioeconomic programs as, first, the immediate restoration of economic stability;
second, the alleviation of the common man's plight; and third, the establishment of a
"dynamic basis for future growth." Unfortunately, Macapagal's friends in the oligarchy and
the privileged minority in Congress and business soon began parading their lavish wealth in
conspicuous parties, junkets, and anomalous deals.
On Jan. 21, 1962, Macapagal abolished the economic controls that had been in operation
since 1948. He devalued the Philippine peso by setting its value according to the prevailing
free market rate instead of by government direction. He lifted foreign exchange controls and
reduced tariff rates on essential consumer goods. Seeking to remedy the problem of
unemployment, he took steps to decentralize the economy and at the same time encourage
commerce and industry in the provinces. He also proposed decentralization in government
by investing greater power in provincial and local governments as a step essential to the
growth of democratic institutions. He also suggested the establishment of eight regional
legislatures with power to levy taxes.

Land Reform Program

To ameliorate the plight of the Filipino peasant in the face of vast population growth,
Macapagal instituted a public land clearance program to make new farmlands available for
immediate use. The product of his concern for the impoverished majority was the Land
Reform Code of Aug. 8, 1963, which sought to replace the abusive and unjust tenancy
system inherited from colonial times by the leasehold system, affording full government
protection to the leaseholder. The positive result obtained in 1966 demonstrated the value
of the land reform program in materially improving the local living conditions of the rural
poor.

Foreign Policy
Macapagal's foreign policy displayed an eccentric course. On the one hand, he affirmed
that he would never recognize Communist China despite what the United States or other
nations might decide. On the other, he criticized in May 1962 the United States support of
Laos neutralists as "a species of sophistry that can only weaken the defense of the free
world."
In June 1962 Macapagal registered a claim of Philippine sovereignty over British North
Borneo (Sabah). In July he proposed the establishment of a greater Malayan confederation
which would supersede the British-sponsored plan for the Federation of Malaysia. This
would be a step toward ultimate establishment of a Pan-Asian Union. Macapagal initiated
the Manila Accord of July 31, 1963, signed by himself, President Sukarno of Indonesia, and
Abdul Rahman of Malaya; on August 6 the three chiefs of state issued the Manila
Declaration toward the establishment of Maphilindo, designed to set up closer ties between
the three countries in their collective fight against neocolonialism. This plan broke up with
the formation on Aug. 1, 1964, of the Federation of Malaysia by the Malayan and British
governments.
Although Macapagal prided himself in being the "conscience of the common man," he failed
in preventing his administration from being wrecked by the Stonehill scandal of 1962, which
revealed massive government corruption and racketeering that involved almost the whole
bureaucracy and Congress. Despite Macapagal's so-called incorruptibility, he failed to solve
decisively the major social and economic problems of the nation. He lost his bid for re-
election in 1965 to Ferdinand Marcos, who ruled for the next 20 years. However,
Macapagal's political legacy lives on in his daughters, both of whom followed him into
politics: Gloria Macapagal-Arroyo is a Filipino senator, and Cielo Macapagal-Salgado is
vice-governor of Pampanga, her father's home province. Macapagal also had two sons,
Arturo and Diosdado, Jr.
He died in Manila on April 21, 1997 of heart failure. He was 86.