Professional Documents
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Unfinished Revolution
Unfinished Revolution
Unfinished Revolution
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access to Southeast Asian Affairs
David G. Timberman
Introduction
The unfolding of the affairs of nations rarely corresponds neatly with the beginning and
end of the calendar year, and the experience of the Philippines in 1986 was no exception.
The dramatic events of 1986, the high point of which was the toppling of the Marcos
regime by a non-violent revolution in February, were inextricably rooted in the political
and economic crises that had wracked the country since the assassination of Benigno
"Ninoy" Aquino, Jr. in August 1983. Likewise, many of the daunting problems and
challenges facing the Philippines in the post-Marcos era will not begin to be resolved until
well into 1987, if at all.
Despite this seamless flow of events, the changes that occurred in the relatively short
span of twelve months created a dramatically new political environment in the Philippines
by the end of 1986. At the beginning of the year, for example, Ferdinand Marcos,
weakening but still powerful, was marshalling the intimidating powers of his presidential
office and political machine to assure his re-election in the face of the strongest political
challenge ever to his twenty-year rule. At year end, Marcos was in exile in Hawaii and
President Coraz?n ("Cory") Aquino sought to fend off challenges from both the left and
the right as she struggled to consolidate her still shaky political position and define and
pursue the policy agenda of her coalition government.
In January, the leadership of the Philippine Armed Forces appeared to be loyal to
President Marcos, despite the growing prominence of the Reform the Armed Forces
Movement (RAM). By December, however, Defence Minister Juan Ponce Enrile and his
RAM followers had gone from being heroes of the February revolution to being outcasts
as a result of their challenge to the Aquino government. Meanwhile, General Fidel
Ramos, the other "Hero of EDSA (Epifania de los Santos Avenue)", opted to support
the Aquino government, and by doing so, strengthened his position as a key figure in the
Aquino administration.
At the start of the year the communist insurgency continued to grow, and perversely,
the insurgency issue was used effectively by Marcos to criticize the Aquino candidacy and
justify his continued rule. By December the communists had recovered from their
politically damaging boycott of the February election and were using a fragile sixty-day
cease-fire to mount an effective public relations campaign.
In January, the country's economic crisis, brought about by corruption, mis
management, and unfavourable international economic conditions, showed few signs of
ending as the economy had just suffered its second consecutive year of negative growth.
By December, the dramatic recovery hoped for by many had not materialized, but a boom
in the stock market suggested increased optimism about the country's economic prospects
? optimism that was only partially justified by key economic indicators at the end of the
year.
As 1986 began, the majority of Filipinos, though divided into two opposing camps,
1 By year end more than twenty-five daily newspapers and weekly magazines were vying for readers in Metro Manila, with
only a minority of the publications profitable.
2 For a review of Philippine afTairs in 1985, see Robert Youngblood, "The Philippines in 1985: A Continuing Crisis of
Confidence", in Southeast Asian Affairs 1986 (Singapore: Institute of Southeast Asian Studies, 1986) or Eduardo Lachica, "The
Philippines: A Critical Transition", in Asian Issues 1985 (Lanham, MD: University Press of America, 1986). For a review
and assessment of the entire Marcos era, see John Bresnan, ed., Crisis in the Philippines: The Marcos Era and Beyond (Princeton:
Princeton University Press, 1986).
3 U.S. Senate Select Committee on Intelligence, The Philippines: A Situation Report (Washington, D.C.: U.S. Government
Printing Office, 1985).
4 Also contesting the election were former Senator Eva Kalaw, who ran for vice-president under her wing of the Liberal Party,
and Reuben Canoy, who ran for president under the banner of the Social Democratic Party.
5 See Jonathan Kolatch, "Could There Have Been a Revolution Without Television?", Manila Sunday Times Magazine
(reprinted from TV Guide), 29 June 1986, p. 22 and 6 July 1986, p. 24.
6 U.S. Congressman Stephen Solarz was less concerned about maintaining an air of impartiality. During the final week of
the campaign his Sub-Committee on East Asian and Pacific AlTairs held widely publicized hearings to investigate charges
that Marcos and his wife had purchased USS350 million in New York real estate.
7 Kolatch, op. cit., 6 July 1986, p. 24.
Aquino countered just as forcefully, blaming all of the country's problems on Marcos
and his twenty years of "experience". During a visit to the southern island of Mindanao
she called Marcos a coward for not visiting the island in ten years. Several days later she
labelled him an inveterate liar and described his government as "a dictatorship cleverly
crafted by an evil genius".
At the same time NAMFREL and COMELEC were engaged in on-again-off-again
negotiations to arrive at a mutually acceptable procedure for a joint "quick count" of the
election returns. The opposition considered a prompt count as essential to ensure that the
returns would not be manipulated by the Marcos camp. But with COMELEC unwilling
to let NAMFREL play an equal role in the counting and announcing of the results the
talks ultimately broke down. On 30 January NAMFREL said that there was only a 50-50
chance of a reasonably clean election and estimated that there were up to a million "flying
voters" (voters illegally registered in more than one precinct) still on COMELEC's
registration lists. The stage was set for the bitter controversy generated by the two different
election tallies.
On the evening of 4 February, the opposition staged what was then considered to
be the largest political rally ever, drawing between 500 thousand and one million
supporters to Manila's Luneta Park. Marcos, in his final rally the following day, accused
the opposition of fomenting "hatred, anger and revolution". The following night, election
eve, the military was placed on red alert, as Vice-Chief of Staff Lt. Gen. Fidel Ramos
called for calm. U.S. Senator Richard Lugar, who headed a twenty-member official U.S.
mission to observe the election, emphasized the importance of a quick count of votes
beginning the following day.
To be contested for, on election day, were 21 to 23 million votes (80 to 90 per cent of
the 26.2 million registered voters) likely to be cast in some 90 thousand precincts around
the country. Marcos was expected to win the lion's share of votes in the "solid North"
(llocos, Cagayan, and Central Luzon) and to carry the Eastern Visayas (the home of his
wife) and much of Mindanao (where he had entered into alliances with local warlords).
If the elections were free, Aquino was expected to post strong showings in Metro Manila,
Cebu, and Southern Mindanao and to win a majority in the Southern Tagalog and
Western Visayas regions.
Bias Ople, Marcos' Labour Minister, confidently predicted that Marcos would win
by two million votes. The opposition camp claimed that Aquino would win 65 per cent
of the vote if the election was fair. In contrast to these confident projections many other
observers predicted a close contest in which Aquino would have to win by a big majority
in Metro Manila (where 4.3 million votes were at stake) and in the other major cities in
order to overcome the KBL's control of the rural areas. But none came close to
anticipating the scale of the fraud that actually occurred on 7 February and during the
week of vote counting and canvassing that followed.
B New York Times, 8 February 1986, p. 10. See also Robert Shaplen, "From Marcos to Aquino", New Yorker, 25 August 1986,
p. 33 and 1 September 1986, p. 36.
"so extensive that the election's credibility has been called into question". But most
important of all, Aquino refused to accept the Marcos "victory", and on 16 February
called for a nation-wide general strike and boycott of government and "crony" firms.
Marcos, it appeared, had "won" the election, but at the considerable cost of losing the
last vestiges of his credibility and legitimacy.9
9 For a detailed analysis of the conduct of the election see the U.S. observer delegation's final report: U.S. Senate Committee
on Foreign Relations, Report on the February 7, 1986 Presidential Election in the Philippines (Washington, D.C.: U.S.
Government Printing Office, 1986).
10 Colourful accounts of the election and revolution are given in James Fenton, "Snap Revolution", Granta, no. 18 (Spring
1986): 33-109; Cecilio Arillo, Break Away (Manila: CTA & Associates, 1986); Boyan Ko\ (Hong Kong: Asia 2000, Ltd., 1986);
Al McCoy, Gwen Robinson, and Marian Wilkinson, "How the February Revolt was Planned", Philippine Sunday Inquirer,
5 October 1986, p. 1 and 12 October 1986, p. 1; and Shaplen, op. cit.
11 A paper prepared anonymously, reportedly for the Catholic Bishops' Conference, and widely circulated at the time of the
election listed five "post-election scenarios", none of which foresaw a military-civilian revolt against Marcos. Instead the
scenarios were: the re-imposition of martial law or the staging of a pro-Marcos military coup; Marcos victory, either through
massively fraudulent or relatively clean elections; Aquino wins but Marcos refuses to step down; and Aquino wins and Marcos
concedes.
13 The New York Times reported on 25 February 1986 (p. 14) that Enrile's admission of government-sponsored election fraud
was a "turning point" in the White House's decision to call for Marcos to step down.
when the revolt began, issued a public statement calling for people to go to EDSA to lend
their support to the rebels.
On Monday morning the media battle intensified as rebel troops captured Channel 4
after a skirmish that resulted in the death of two loyalist troops. The television station
was captured and its signal cut off in the middle of a press conference called by Marcos
to dispel rumours that he had fled the country. Within six hours the station was on the
air again, in time to announce Enrile's declaration of a provisional government headed
by Aquino. With the loss of Channel 4, loyalist troops then secured another station,
Channel 9, and that evening Marcos again went on television to announce the immediate
imposition of a curfew and to urge his civilian followers to bring their guns to the capital
to defend the republic "to the last breath". At about the same time the U.S. government,
in a belated but still dramatic statement, called for Marcos to step down. The White
House said, "Attempts to prolong the life of the present regime are futile ... a solution
to this crisis can only be achieved through a peaceful transition to a new government."
Marcos, unconvinced that the U.S. statement reflected the view of President Reagan,
called Senator Paul Laxalt at 3.00 on Tuesday morning (Manila time). In addition
to seeking confirmation of Reagan's position, Marcos indicated his lack of interest in
resigning and in going to the United States, where he feared congressional harrassment.
In increasing desperation he also proposed a variety of possible power-sharing arrange
ments. Laxalt said he would consult President Reagan (who apparently would not talk
to Marcos directly) and promised to call Marcos back. Two hours later, after meeting
with the White House crisis team, Laxalt called Marcos and, in response to Marcos'
request for advice, told him to "cut and cut cleanly. The time has come."14
Marcos, however, proceeded with plans for his inauguration at noon on 25 February,
the same day that Aquino planned to take her oath of office. At about 10.00 a.m. Aquino
held her inaugural and "in the name and will of the Filipino people" was sworn in as
the 7th president of the Philippines. Afterwards Laurel was sworn in as Vice-President,
Enrile as Minister of National Defence, and Ramos as Chief of Staff of the Armed Forces.
After the triumph of "people power" it was ironic, as Robert Shaplen has noted, that the
Aquino ceremony was held at Club Filipino, an exclusive club in Makati that has long
been a gathering place for the country's ?lite.
At noon Marcos took his oath as president in a melancholy ceremony at Malaca?ang
attended by about 1,000 people comprising family members, staff, and supporters.
Conspicuously absent, however, were "Vice-President" Arturo Tolentino and Cesar
Virata, Marcos' long-time Finance Minister and Prime Minister. But even as the
ceremony was under way, preparations were being made to leave the palace. Finally, at
7.15 p.m. Marcos informed the American Ambassador that he would relinquish office and
leave the palace but that he wanted to stay in the country. At 9.00 p.m. four U.S.
helicopters picked up Marcos and his family, Ver, and about thirty others and flew them
to Clark Air Base, about 100 km. north of Manila, where they spent the night. The
following morning, Marcos' request to stay having been denied by Aquino, the deposed
president and his party of about fifty-five were flown to Guam and then to Hawaii.
Accompanying them were US$1.1 million in pesos and other assets reported to be worth
US$30 million.
The Marcos government had ended after more than twenty years of increasingly
authoritarian, corrupt, and damaging rule. It was up to Coraz?n Aquino and her shaky
coalition to pick up the pieces. As Time magazine succinctly predicted in its cover story
following the departure of Marcos, "Now for the hard part."
14 See Paul Laxalt, "My Conversations With Ferdinand Marcos: A Lesson in Personal Diplomacy", Policy Review, Summer
1986, pp. 2-5.
15 For thoughtful assessments of the challenges facing the Aquino government see the report of an Asia Society study mission
entitled The Philippines: Facing the Future (New York: The Asia Society, 1986); and Carl Lande and Richard Hooley, "'Aquino
Takes Charge", Foreign Affairs, Summer 1986, pp. 1087-107.
16 In addition to UNIDO and PDP-LABAN, the Aquino coalition included the Liberal Party (Salonga wing), the Mindanao
Alliance headed by Homobono Adaza, and the Muslim Federal Party.
The following day, 3 March, Local Government Minister Pimentel announced that
some fourteen thousand locally elected officials would be subject to replacement by new
"Officers in Charge" or OICs, at the discretion of the government. The announcement
began one of the most controversial policies of the new government. The KBL challenged
the legality of replacing the elected local officials. But what really was at issue was the
sweeping transfer of the power of local office ? traditionally used by the national party
leadership to cultivate party loyalty at the local level and by the local office holders to
benefit their families and followers ? from the KBL to the opposition. The KBL's
hyperbolic description of the replacements as "revolutionary terror" underscored the
importance of local patronage to national politics. For the same reason Laurel and other
UNIDO stalwarts criticized Pimentel for appointing members of his party, PDP-LABAN,
to the majority of OIC positions. The military leadership, which was much more
restrained in reshuffling its local commands, expressed concern about the destabilizing
effect of the massive and sometimes arbitrary changes.
On 12 March Aquino froze the funds, assets, and properties of Marcos, his family, and
business associates. This was the first step in the PCGG's arduous task of discovering and
reclaiming the "hidden" and "ill-gotten" wealth of Marcos and his "cronies". By mid
year the PCGG, under the direction ofJovito Salonga, had identified over US5860 million
in Marcos assets abroad (out of an estimated US?5-10 billion) and had "sequestered"
or temporarily taken over some 200 firms including giants such as San Miguel Breweries
and the United Coconut Planters Bank. At year end 268 firms with assets worth 51.1
billion were sequestered.
The new government was also faced with the critical question of what to do about the
200-seat Batasang Pambansa. The options under consideration included establishing a
legislative coalition with enough "reformist" KBL MPs to give the pro-Aquino bloc a
majority, dissolving the body and electing new members in May, or doing away with the
body completely. Despite some promising preliminary discussions between the
government and various factions within the rapidly disintegrating KBL, the government
eventually decided it was necessary to begin with a completely clean state. On 25 March,
after one month in office, Aquino issued Presidential Proclamation Number 3 establishing
an interim "freedom constitution" that gave the president virtually unlimited powers and
abolished the Batasan. The Aquino government, according to Justice Minister Neptali
Gonzalez, was "revolutionary in origin, democratic in essence and transitory in nature".
In response to their sudden unemployment, a group of KBL MPs and several previously
"opposition" MPs announced their intention to convene a "rebel parliament" in April.
Former Labour Minister Bias Ople exclaimed, "This is an act of revolt and we are ready
to be arrested and jailed." But his bravado, and the self-righteous cries of injustice by the
other leaders of the discredited Batasan, rang hollow in the ears of most Filipinos and
the rump parliament movement eventually fizzled out.
In mid-April, Aquino moved to cleanse another Marcos tainted institution by swearing
in ten new Supreme Court justices and setting into motion a review of all judicial
appointments. Justice Claudio Teehankee, a Marcos appointee who became known for
his independent opinions (and for this reason was passed over twice by Marcos to
head the court), was appointed Chief Justice. Later in the year, the court reviewed the
December 1985 Sandiganbayan acquittal of Ver and his other co-defendants in the
Aquino-Galman murder trial, and declared a mis-trial, setting in motion new legal
proceedings against the original defendants.
On 25 May, three months after coming to power, Aquino took perhaps her most
important step in shaping the country's political future when she announced the
appointment of forty-four people to a commission to draft a new constitution. Although
lawyers were preponderant, the commission included representatives of almost every
major group in the Philippines, from the Catholic Church to farmers and labour unions.
17 For differing views on the nature of the communist insurgency see William Branigan, "The Rebels May Be Communists,
but They're Not the VC", Washington Post (National Weekly Edition), 25 November 1985, p. 16; Ross Monro, "The New
Khmer Rouge", Commentary, December 1985, pp. 19-38; Steve Lohr, "Inside the Philippine Insurgency", New York Times
Magazine, 3 November 1985, pp. 40-60; and the U.S. Senate Committee on Foreign Relations, Situation in the Philippines
(Washington, D.C.: U.S. Government Printing Office, 1984).
to the hills" in response to the poverty and injustice of the Marcos era and that the reforms
promised by the new government, combined with a programme of amnesty and
rehabilitation, would bring all but the most hard core of the insurgents back into the fold.
However, the continuation, and in some areas intensification, of NPA attacks on the
military soon underscored the fact that the insurgency would not be quickly or easily
ended. In late September, General Ramos reported 1,489 violent incidents from 1 March
to 15 September, of which 70 per cent were said to have been initiated by the NPA. By
October only 250 NPA regulars were reported to have surrendered.
The cease-fire talks between the government and the communists became politically
desirable to both sides. Aquino was committed philosophically and politically to
exhausting all peaceful means for ending the insurgency. Although her willingness to
negotiate was criticized by the right, her role as peacemaker was generally well received
by the conflict-weary public. Negotiations also demonstrated the civilian government's
primacy over the military (which was not represented in the negotiations) and its
independence from what was perceived to be Washington's hardline stance.
In the face of Aquino's sincerity and popularity the communists did not want to be
perceived as spurning her olive branch. But equally important, the peace talks provided
them with new legitimacy, respectibility, and publicity. Although their efforts to acquire
belligerent status were not successful, the fact that the government was prepared to
negotiate with them was recognition of their importance if not of their equal stature. The
safe conduct passes provided to Ocampo and Zumel enabled them to participate in
interviews with the generally sympathetic Manila media. Soft-spoken and smiling as they
explained the CPP's ideology and objectives, they were able to counteract the rightists'
shrill warnings that the communists were ruthless, godless murderers intent on seizing
power by force.
Just as there were compelling reasons for both sides to enter into negotiations, so too
were there reasons for both sides to desire a cease-fire. Aquino had staked her reputation
on finding a peaceful solution to the problem. Failure to reach an agreement would have
intensified criticism from both the right (for the government's naivete in expecting solutions
from negotiations with the communists), and the left (for proving that Aquino was a
captive of the hardliners in the military and in Washington). The Aquino government
saw a cease-fire as, at best, the beginning of the demilitarization of the conflict or, at worst,
as a needed respite that would give the government and the military time to prepare for
the resumption of the hostilities.
The communists also felt a cease-fire would be to their advantage, judging from their
willingness to give up or moderate a number of their original demands such as for
belligerent status and "comprehensive negotiations" as a pre-condition for a cease-fire.
Another indication of this was their willingness to return to the negotiating table after the
capture of CPP leader Rudolfo Salas on 29 September and the brutal murder of labour
leader Rolando Olalia on 12 November. The potential benefits of a cease-fire to the
communists seemed to be primarily in the areas of political organization and propaganda,
as was later revealed by their campaign of highly visible and sometimes provocative armed
parades and rallies.
18 For a helpful comparison of the 1986 draft constitution with previous constitutions, see The Constitution of the Republic of
the Philippines (Manila: National Bookstore, Inc., 1986).
When the draft charter was presented to her on 15 October Aquino said, "Democracy
is safe with this constitution." She might have added that the tenure and authority of her
government would be protected, too. To ensure the passage of the Constitution prominent
Aquino supporters led by Justice Minister Neptali Gonzales on 8 November formally
launched Lakas ng Bansa (LAKAS), an "umbrella organization" that seemed destined
to evolve into Aquino's political party. After characteristic vacillation, Laurel and
UNIDO also gave their qualified support to the charter. Later Cardinal Sin gave his
blessing to the document, calling it "unique, perfect and beautiful".
However, other quarters were not as enthusiastic and the charter quickly became
a political football. Leftist groups such as Partido ng Bayan and the KMU (Kilusang
Mayo Uno or First May Movement) labour union had lobbied hard to have
"democratic nationalist" provisions written into the Constitution so that they could not be
blocked by the new legislature, which they assumed would be as conservative as its
19 Alex "Magno, "Reconciling with a Yellow Charter", Newday Magazine, 10 November 1986, p. 4.
predecessors. Their hopes frustrated, they criticized the charter's provisions on land
reform, foreign ownershop, and military bases. The KBL and Nacionalista parties,
recognizing that the document would firmly establish the Aquino government for the next
five years, vowed to campaign against it, condemning it as partisan, socialist, and pacifist.
The Filipino people would have less than four months to consider the strengths
and weaknesses of the charter ? and the implications of its rejection for the Aquino
government's stability ? before voting on it in a nation-wide plebiscite scheduled for
2 February.
year effectively came to a close. The end of the year brought the start of a fragile and
controversial cease-fire, a new role for Enrile as head of the Nacionalista Party, and a
temporary respite for the Aquino government. And from Honolulu Imelda Marcos
tearfully proclaimed, "We will return to serve again the small, the needy, and the poor."
Amid the year-end revelry Filipinos looked back on 1986 with an equal mixture of
exhaustion and exhilaration and tried to catch their breath before the new year brought
a round of new challenges.
20 See Bernardo Villegas, "The Economie Crisis", in Crisis in the Philippines: The Marcos Era and Beyond, ed. John Bresnan
(Princeton: Princeton University Press, 1986).
21 See National Economic Development Authority, Philippine Development XIII, no. 4 (July-August 1986).
their "wait and see" attitude, investment declined by an estimated 15per cent by the end
of 1986.
During the year the government also began the painful and politically sensitive process
of reforming and restructuring the economy. In April, the government rescinded Marcos'
ban on the export of copra and reduced the export tax on coconut. In June, sugar trading
was also decontrolled with the phasing out of the Philippine Sugar Commission. As a
condition for the World Bank loan, the government agreed to a large reduction in the size
and activities of the bankrupt Philippine National Bank and the Development Bank of the
Philippines. Finally, the government also ended quotas on the import of about 70
per cent of 1,232 products selected for phased liberalization under the IMF's economic
stabilization programme. At year end the government, at the urging of Trade and
Industry Minister Concepci?n, was fighting for a further delay in the liberalization of
a number of the final 300 items.
These reforms were significant, but they did not address the immediate problems
of a severely depressed economy. Unemployment during the year was at least 12 per
cent, and at least 25 per cent of the work-force suffered from underemployment. In the
absence of domestic demand, industries were utilizing between 40 and 60 per cent of
their capacity. The government stepped in to "prime the pump" through deficit
spending on salaries and public works. The centre-piece of the government's effort
was a P3.9 billion (US$195 million) Community Employment Development Program
intended to create 600 thousand jobs. However, by year end only about half of the
projects were underway or completed, delayed by the Manila bureaucracy's traditional
resistance to decentralization.
The mixed record in the overall performance of the economy reflected the policies
which were implemented. According to National Economic Development Authority
(NEDA) estimates, real GNP posted a 2.23 per cent decline during the first half of
the year but grew by more than 2 per cent during the second half to register 0.13 per cent
growth for the year. A 3.7 per cent decline in industrial output and a stagnant service
sector were offset by a 4 per cent increase in the agricultural sector. But per capita GNP
still declined by at least 2.26 per cent because of the rapid rate of population growth,
which NEDA (under)estimated at 2.44 per cent. The country's international trade
during the year was roughly in balance, primarily because of the decline in oil
prices. More than US$500 million in workers' remittances and the inflow of foreign
aid and loans enabled the country to post a balance of payments surplus estimated to be
in excess of US$2 billion.
By the end of 1986 there were signs that the Philippines' economic decline had been
stopped if not reversed. The growth of GNP in the second half, an inflation rate of under
2 per cent, the apparent stability of the peso (despite arguments by some economists
that it was over-valued by 10 to 20 per cent) and the rise in copra prices by about 50 per
cent were reasons for some optimism. In that spirit the Cabinet approved in November a
medium-term development plan that projects 6.5 per cent average annual GNP growth
from 1987 to 1991, the creation of one million jobs annually and the return to the 1981
level of per capita income by 1991.
To meet the optimistic medium-term plan the government will have to reverse years
of neglect of agriculture, which, though it provides direct or indirect livelihood for 70 per
cent of the population, has always been treated like the unseemly "poor cousin" of the
urbanized Manila ?lite. There is also the major question of whether the Philippine ?lite both
within and outside the government will allow its wealth and power to be eroded by the
implementation of meaningful land reform. If not, the continuation of rural poverty
and the nation's glaring disparity in income distribution are assured.
Agricultural reform is necessary for revitalized economic growth, but it does not
guarantee it. Even with a reformed agricultural sector, the manufacturing and service
23 See Leslie Ge!b, "A Winning Style: Reagan and the Philippines", New York Times Magazine, 30 March 1986, p. 31; and
Richard Holbrooke, "Why We Didn't Blow It in the Philippines", Washington Post (National Weekly Edition), 17 March
1986, p. 23. Fora more critical look at U.S. policy, see Richard Kessler, "Marcos and the Americans", Foreign Policy, Summer
1986, pp. 40-57.
reduce its large budget deficit. Initially the Reagan Administration offered US$100
million in new economic assistance as part of a package that would provide a total of
US$504 million in grants, concessional loans, and food aid in 1986. Additionally,
Washington planned to double military assistance for 1986 to slightly more than US$100
million. Filipinos, whose hopes were unrealistically inflated by suggestions that a "mini
Marshall Plan" was forthcoming, were disappointed by what they considered to be the
meagre amount of new aid being offered by Washington. This feeling persisted until early
October, when the U.S. Senate narrowly approved a House bill appropriating an
additional US$200 million in economic aid.
Although both governments stated their satisfaction with the status quo concerning
the two U.S. military facilities in the Philippines, the left and the Manila-based
intelligentsia continued to attack the bases as being magnets for a nuclear strike and for
undermining Philippine sovereignty. These criticisms, however, were not fully shared by
the majority of Filipinos who, according to polls taken in 1986, support the retention of
the bases. But there were signs that the general public's awareness of the negative aspects
of the bases ? whether it was the threat of nuclear war or the spread of AIDS ? was
increasing in relation to its appreciation of the security and economic benefits that these
bases provided. One indication of this was the broad and generally very critical public
debate that was sparked at mid-year by the Constitutional Commission's deliberations
over a provision to ban the bases.
The warm reception President Aquino received by the American government, media,
and public during her "triumphant" nine-day visit to the United States in mid-September
helped to smooth over some of the earlier irritants in bilateral relations. The promise of
increased aid, a pledge to increase the United States' quota for garment imports from the
Philippines and a small but only temporary increase in the shrinking U.S. sugar quota
also helped. Consequently the year closed with a somewhat more muted, though not
necessarily more stable, relationship.
If the Philippines' relationship with the United States is an emotional one, the country's
relations with Japan are mostly pragmatic, revolving around trade and aid. On 10-14
November President Aquino visited Tokyo, where she was warmly received by Prime
Minister Nakasone, Emperor Hirohito, and the Japanese media. Having stunned
Japanese officials in advance with a request for some US$1.6 billion in yen loans, grants,
and credits, Aquino left with a promise of Y40.4 billion (US$250 million) for a coal-fired
power-plant, pledges from the major Japanese sogo shosha (large trading conglomerates)
to increase their imports and investments, and a pledge from Nakasone that he would
support a 14th yen loan package for 1987 in excess of the US$310 million 13th yen loan
package.
In contrast to the Marcos government's virtual withdrawal from ASEAN affairs
because of its preoccupation with its domestic crises, the Aquino government seemed
intent on making its presence felt within the Association. At the opening of the ASEAN
Foreign Ministers meeting in Manila on 19 June, Aquino criticized the Association's slow
progress in economic relations, saying that it threatened to render the grouping
"meaningless". But despite her criticism of the organization, Aquino made it a point to
visit the ASEAN region before visiting the United States. On 24-27 August Aquino made
well received visits to Indonesia and Singapore. In Indonesia she received assurances that
Jakarta considers the Muslim secessionist movement a "domestic problem". In Singapore,
Philippine Deputy Foreign Minister Leticia Shahani assured the Singaporeans that the
new government was "anxious to find the right solution" to the Sabah dispute, a
statement that subsequently was given credence by the omission of any claim to Sabah
in the draft constitution. Towards the end of the year the Philippines appeared ready to
play a more active and positive role in ASEAN, clearing the way to holding the third
ASEAN Heads of State Meeting in Manila during the second half of 1987.
Conclusion
Nineteen eighty-six was a year of great, but incomplete and uneven, change in the
Philippines. It is clear that it was a year of political transition away from the
authoritarianism of Ferdinand Marcos' regime. But it is not clear in what direction the
process of change ultimately will lead. Will the Aquino government be able to formulate
and successfully implement moderate reforms that satisfy the majority of Filipinos who
are impoverished, without seriously alienating the small but powerful ?lite? Will the new
Philippine leadership have the political will and the resources to address head-on
fundamental problems afflicting the country such as the unequal distribution of land and
income, rapid population growth, and an inefficient economy? And failing this, is it
possible that Philippine society will abandon its traditional conservatism and opt for the
radical change advocated by the left?
Also unclear is what other elements of Philippine society, if any, have had their values
and behaviour permanently transformed by the February election and subsequent non
violent revolution. Preliminary indications suggest that the changes of 1986 may not be
as widespread or as lasting as some might hope. But a more definitive judgement must
await two tests in 1987: the constitutional plebiscite on 2 February and the national
legislative elections scheduled for 11 May. These contests will reveal the level of President
Aquino's popularity after one year in office and will test the Aquino camp's ability to
build a political organization to rival the parties of the left and right. But equally
important, the manner in which these two political exercises are conducted will give the
first concrete indications of whether the unseating of Marcos has begun a new, more
genuinely democratic, era in Philippine politics or, instead, has left intact the country's
traditional politics based on patronage and narrow self-interest.