Nacionalista Party leader Ferdinand Marcos dominated the political scene of Philippines for two decades after his election to presidency in 1965. In 1967, Philippines became a founding member of ASEAN (Association of Southeast Asian Nations). He became the first President to be reelected in 1969. In 1972 marcos declared the tyrannical Martial Law i.e. the imposition of military rule. 25 th February, 1986 , EDSA People Power Revolution marked a significant national event. True empowerment of democracy was exhibited by its successful efforts to oust a tyrant by a demonstration without tolerance for violence and bloodshed. This signifies their freedom from the governance of president Marcos. Video: Marcos Era: http://www.britannica.com/EBchecked/media/139465/Events-in-the-Philippines-under-the-regime-of-Ferdinand-E
Senator Benigno Ninoy Aquino was shot and killed at the airport in August 21, 1983, upon his return to the Philippines from exile in the United States. Aquino’s death marked the day that Filipinos learned to fight. His grieving wife,Corazon Aquino showed the Filipinos and the world the strength and courage to claim back the democracy. She became the president in 1986. The current president Benigno Noynoy Aquino III is the son of these two personalities.
The Third Republic, 1946 – 1972 The independent Republic of the Philippines was finally proclaimed on July 4, 1946 with Manuel Roxas as President. Martial Law and the Fourth Republic, 1972-1986 On September 23, 1972 President Ferdinand E. Marcos placed the entire country under Martial Law. Under martial rule, Marcos created the Batasang Bayan in 1976 to serve as a legislative advisory council – a quasi-legislative machinery to normalize the legislative process for the eventual actualization of the 1973 Constitution The Fifth Republic, 1987 – present: The 1987 Constitution finally came into full force and effect on February 11, 1987. It re-established a bicameral legislature, composed of the House of Representatives and the Senate, much like the way it was before Martial Law.
1. Executive Branch – headed by President who appoints cabinet 2. Legislative Branch – Congress of the Philippines comprising of the Senate (upper house) presided by the President of the Senate and the House of Representatives (lower house) presided by the Speaker of the House of representatives. 3. Judicial Branch – : Supreme Court of the Philippines comprising the Chief Justice and 14 Associate Justices, the Court of Appeals, Sandiganbayan, and the lower courts.
Founding member of UN. Been elected to Security Council once. ASEAN can will be the 9 th largest economy in the world Eventhough it had been colonised by America, their relations post independence continued.
Paid in Minimum capital is the amount of money that is to be deposited with a notary for a period of 3 months.
PHILIPPINES GROUP – 3 ANKIT ROY INDER DEEP SINGH JIVITESH PATRA SURBHI KHANNA VIJAY KRISHNAN VIDHI GUPTA
Post Independence(1946 onwards) The Marcos Era (1965-86) • Dominated the political scene for two decades • Declared Martial Law in 1972 • February 25, 1986: EDSA People Power Revolution Ferdinand E. Marcos
AQUINO YEARS AND AFTERBenigno Ninoy Aquino Corazon Aquino (Senator during Benigno Noynoy Aquino III (President: 1986-1992) Marcos rule) (President: 2010- Present)
LEGISLATIVE HISTORY1.First Republic (Revolutionary Government/ ThePhilippines under Spanish rule)2.The Second Republic, 19433.Restoration of the Philippine Commonwealth,1945 – 19464.The Third Republic, 1946 – 19725.The Fourth Republic, 1972-19866.The Fifth Republic, 1987 – present(2010-Present) President: Benigno Simeon "Noynoy"Cojuangco Aquino III
PRESENT POLITICAL SYSTEMThe Electoral system -Single-ballot plurality voteExistence of legislative districts and local government unitsElectorate: duly registered citizens 18 years of age and above Political parties in the Philippines•Multi-party system•Parties must work with each other to form coalition governments.•The Commission of Elections (COMELEC)Independent Agencies – Securities and Exchange Commission
Culture: Blend of the Malayo-Polynesian and HispanicEthnic Make-up: Christian Malay 91.5%, Muslim Malay 4%, Chinese 1.5%, other 3%Religions: Roman Catholic 83%, Protestant 9%, Muslim 5%, Buddhist and other 3% The San Agustin Church in Manila
Dances: Tinikling and Carinosa.Music: Filipino rock, hip hopArchitecture: Nipa hut main stream of housing.Language: Filipino(Tagalog)Sports: Arnis
KEY GROWTH INDUSTRIES1. CALL CENTERS AND BPOs• Fastest-growing segment of the economy.• Cornered 15 percent of the global BPO market• The call center workforce hit 442,000 by end-2011.2. INFRASTRUCTURE & GOVERNMENT PROJECTS• Through PPP, plans are to develop expressway from Manila straight to Cagayan Valley in Northern Luzon for $100 million.• The government has plans to use the old train path of the Philippine National Railways to link the North Luzon and South Luzon expressways.
3. TOURISM & RELATED BUSINESSES• Tourism industry has a variety of niches that are still hot until now, so it"s definitely an advantage (the country has over its neighbors).• The government is planning to build four "truly world-class" international airports in each major regional area.4. MANUFACTURING PRODUCTS FOR EXPORT• Major Exporter Of Electronic Products Like Processors, Chips And Hard Drives, Apparels & Clothing accessories.• Exports Were Worth 4314 Million USD In June Of 2012.
EXPORTSExports = 4314 Million USD in June of 2012.Historically, from 2002 until 2012, Exports averaged 3681.10 Million USD reaching an all time high of 5325 Million USD in September of 2010 & a record low of 3506 Million USD in February of 2009. 2000’s Source: http://www.tradingeconomics.com/philippines/exports
MAJOR EXPORT Electronic products like processors, chips & hard drives (more than 50% of total exports revenues). Garments Coconut oil Furniture Transport Equipments Copper Products Fruits Source: http://www.tradingeconomics.com/philippines/exports
PHILIPPINES IMPORTS MOSTLY:mineral fuels, lubricants,transport equipment, industrialmachinery and equipment, ironand steel.Main imports partners areJapan, United States, China,South Korea and Singapore.
1960-19801967- Investment incentive Act.1970- Cronyism and Corruption Caused economic problems and social unrest. Sept 1972- Martial Law declared. Crony Capitalism. Export Incentive Act. January 1973- National Economic and Development Authority.
1980-1990 1980- Decline in export 1981- Increase in national government expenditure. Formation of Uni Bank Increase in bad debt. Foreign debt ballooned. “Sick Man of Asia”.
1980-19901986- Aquino’s wife became president.Emphasize on Privatization.New tax reform- Export taxes were eliminated.IT simplified.Luxury tax imposed.10% VAT introduced.
1980-19901987- New constitution formed. Land Reform introduced.GDP increased from 3.5% in 1986 to 4.3% in 1987 6.6% in 1988. Earthquakes, natural disasters caused power shortage leading to economic activities. Investment Incentives system revised.
1980-19901989- 43.9% of budget went debt servicing. 1990- Privatization of electricity, telecommunication and banking industry. 1990-91 Persian Gulf crisis, petroleum prices increased. The Oil Price Stabilization Fund put an additional strain on the budget
1990-20001996- GNP grew at 7.2% and GDP by 5.2%. Inflation rate drop to 5.9% from 9.1% in 1995. 1998- Asian financial crisis. Fiscal deficit reached P49.981 billion from surplus of P1.564billion in 1997.• Peso depreciated from P29.47 to P40.89 a dollar.• GNP fell from 5.3% to 0.1%.
1990-2000 Joseph Estrada was elected as President. Fiscal Deficit doubled from P49 billion to P100 billion. Corruption, cronyism.
FOREIGN INVESTORS•UK, US and Japan are the primaryinvestors•US – Invested in the power generationsector•UK – Planning to setup an aircraftmanufacturing unit (BEA)•UK – Invested in banking and portfoliomanagement•Japan – Strong trading partner
WHY TO DO BUSINESS IN PHILLIPINES•Phillipines features in the Next 11(Beyond BRICs) report of GoldmanSachs•Also featured in 3G countries(Global Growth Generator)•It had shown economic stabilityduring the Asian crisis of 1997•Touted to become the 14th largesteconomy by 2050
WHAT BUSINESS TO DOPercentage Applicable Businessesof Foreign EquityUpto 25% Private recruitment companies, Contracts for locally funded public work, Contracts for construction of defense related structuresUpto 30% AdvertisingUpto 40% Exploration, development & utilization of natural resource, Educational institutions, Private lands, Public Utilities, Gambling, Domestic Market EnterprisesUpto 60% Financing companies and Housing companies (Regulated)
COMPARING WITH BRICS Paid-in Min. Cost (% ofEmerging Procedures Capital (% of Time (days) income perEconomy (number) income per capita) capita)Brazil 13 119 5.4 0China 14 38 3.5 100.4India 12 29 46.8 149.6Philippines 15 35 19.1 5.2RussianFederation 9 30 2 1.6South Africa 5 19 0.3 0 Source: http://www.doingbusiness.org/data/exploreeconomies/philippines/starting-a-business
THINGS TO FOLLOW: BASIC ETIQUTTES• Schedule business meeting one month in advance• Customary to offer business card first• Greet the oldest member in the group first• When you are offered light refreshments, never offend by declining• If you are going to gift, pack it attractively.
FACTS & TRIVIA ABOUT PHILIPPINES• There are more than 10 million Filipinos living overseas, of this, about 8 million are OFWs or Overseas Filipino Workers of which around 1.5 million are contractual workers.• The karaoke is a Filipino invention. It was invented by Roberto del Rosario. He called his invention "Sing-Along-System", which was later called karaoke.• The Philippine flag is the only flag in the world that is displayed upside-down when the country is in war.• The Philippines is considered the "text capital of the world“• 488 coral species out of the known 500 coral species worldwide are found in the country.• The Ramon Magsaysay Award is named after famous Filipino President Ramon Magsaysay.