CHAPTER 1 INTRODUCTION 1.1 Geography, History, and Economy The Philippine archipelago lies strategically within the arc of nations that sweeps southeastward from mainland Asia to Australia, spanning 1,094 kilometers from west to east. The archipelago is composed of about 7,100 islands, many of which are still uninhabited. Ithas a total area of 300,000 square kilometers, 92 percent of which is found in the 11 largest islands. There are three major island groups: Luzon, the largest island situated in the north accounts for 47 percent of the land area; Mindanao in the south has 34 percent of the total land area; and the Visayas, a group of smaller islands between Luzon and Mindanao, which constitute the remaining 19 percent of land area. Administratively, the Philippines is divided into 15 regions as follows: LUZON National Capital Region (NCR) Cordillera Autonomous Region (CAR) Region 1 - llocos Region Region 2 - Cagayan Valley Region 3 - Central Luzon Region 4 - Southern Tagalog Region 5 - Bicol VISAYAS Region 6 - Westem Visayas Region 7 - Central Visayas Region 8 - Eastern Visayas MINDANAO Region 9 - Westeru Mindanao Region 10 - Northern Mindanao Region 11 - Southern Mindanao Region 12 - Central Mindanao Autonomous Region in Muslim Mindanao - ARMM The next lower administrative units are provinces/subprovinces, cities, and municipalities, and barangays. Barangays are the smallest political subdivisions in the country. In 1990, there were 73 provinces, 2 subprovinces, 60 cities, 1,537 municipalities and some 41,000 barangays. Classification of urban and rural areas is made at the barangay level using the 1970 Census urban-rural definitions. The Philippines has the longest discontinuous coastline in the world. It has 61 natural harbors, 31 of which are developed and could accommodate large vessels. Manila Bay, the finest natural harbor in the Far East, is an asset which has given Metropolitan Manila a locational advantage for rapid industrial development. The archipelago has a diverse topography and climate. The mountain ranges which traverse the major islands are contrasted sharply by adjacent valleys and plateaus. Because of their topography and geographic location, the provinces are exposed to varying climatic conditions and degree of weather disturbances. The northeastern parts of Luzon and the Bicol Region are generally wet and more vulnerable to typhoons. On the whole, the Visayas have more rainy days than Luzon and Mindanao. Mindanao is almost free from typhoons, which makes agriculture a very valuable industry in that island. The Philippines became a republic in 1946. Since the latter part of the 1960s, the government faced several political and social problems caused by ideological and ethnic differences. Threat of communist takeover and student unrest precipitated the declaration of Martial Law by former President Marcos in 1972. Rebellions led by Muslim leftists exacerbated the political and economic situation. Under the shroud of Martial Law, Marcos extended his dictatorial leadership for two decades. The ouster of Marcos in 1986 brought new hope for political stability and economic recovery. Several attempts to topple the new government failed. Sporadic encounters of govemment forces with both the leftist and rightist groups are no longer considered threats as the Ramos administration gears itself toward the attainment of a Newly Industrialized Country status by the year 2000. The 1970s witnessed a substantial growth in the Philippine economy, with a growth rate higher than the world average for developing countries. Real GNP increased at an average rate of 6.2 percent annually during the period 1972-80. While the country experienced substantial growth in the 1970s, the income distribution structure improved only very slightly during the period 1961 to 1988. A large percentage of the nation's wealth remained concentrated in the hands of a few families. The income share of the lowest 50 percent reached its highest level at only 20.5 percentin 1975, from 17.6 percent in 1961. The corresponding proportion in 1988 and 1991 is 20.3 percent and 18.9 percent, respectively. The worldwide recession in the 1980s, however, affected the top 20 percent income group. This is reflected in the continued decline of its share from 56.5 percent in 1961 to 51.8 percent in 1988. The income share of the top 20 percent improved slightly in 1990 (53.9 percent), which is comparable to that in the early 1970s. This is because international markets for Philippine exports became weak, which adversely affected the trade and industrial sectors. Balance of payment deficit widened as a result of accelerated outflow of short-term capital and the unwillingness of some creditors to extend new credit lines. The debt servicing capacity of the country underwent stresses and strains from both the high cost of borrowing and the difficulty ofeamlng foreignexchange, ltwas agriculture whichpropelledeconomicgrowthinthe 1980s, butitsoutput was affected by the eight-month drought which struck the country in the late 1982. The worsening employment situation was partly offset by the overseas deployment of workers and the implementation of the national livelihood program. After President Aquino came into power in 1986, the government underwent political and economic reform. The 1984-1987 Development Plan was updated, with the commitment to strengthen the national will and capability for self-reliant development through a conscious effort to raise productivity and attain self- sufficiency. Its fundamental goals are to increase productivity for sustainable development, more equitable distribution of the fruits of development, and total human development. Over the years, development has not been distributed equitably among regions and provinces within a region. Infrastructure and development eflbrts have been concentrated in Metropolitan Manila and its environs, and selected cities. Because of the locational advantage of Metropolitan Manila, economic and social policies in the past administrations have been biased, resulting in the rapid industrialization of Metropolitan Manila. Later, an overspill of economic development was seen in the neighboring provinces. Uneven development and perceived economic opportunities in urban centers stimulated rural-urban migration and the continued influx of migrants has exerted pressure on the urban resources and environment. 2 In 1991, the Philippine economy suffered from disturbances caused by the Gulf War which disrupted employment in the Middle East where many Filipinos work. Millions of US dollars were lost, not only from overseas remittances but also from the damage caused by the continued eruption of Mt. Pinatubo and the flash floods in Ormoc City. The economic slowdown was manifested in all the major sectors, posting lower growth rates over the previous year. As with economic development, social development has not been distributed equitably among geographic units of the country. Although the national level of literacy has improved from 83 percent for persons aged 10 and over in 1970 to 94 percent in 1990, pockets of illiteracy are still prevalent in remote barangays of nearly all provinces. The present government policy on this issue is aimed at eradicating illiteracy by the year 2000 by providing education for all. There are wide differences in the economic participation between males and females. Sex differentials in education, however, are minimal. In fact, in terms of higher educational attainment, females have an advantage over males. The differential impact of development on women has been integrated in the development plan for 1989-92 by providing women equal opportunities in the economic, political, and social activities of the country. In 1982, the Filipino diet was found to be adequate in protein but inadequate in energy and micronutrients, except niacin. Nutrient intake was generally higher among those with higher education and income, in urban than in rural areas, with Metro Manila being worse off than other urban and rural areas. Breastfeeding practices and duration have been slowly declining but a reversal in trend was observed among urban and more educated women. A declining trend persists among the disadvantaged women where the benefits of breastfeeding are most needed. 1.2 Population Growth The 1990 Census of Population reported a total population of 60.7 million, up by 12.6 million persons over the previous decade. About 30 million or 49 percent of the population lived in urban areas, an increase of 11 percentage points from 1980 (see Table 1.1.). The population growth rate has been declining at a slow pace. The average annual growth rate decreased by 0.4 percentage points, from 2.75 percent during the intercensal period 1970-80 to 2.35 percent in 1980-1990. The Philippine population is unevenly distributed over the 15 regions. In 1990, the National Capital Region (NCR), which accounted for only 0.2 percent of the total land area, had 13 percent of the total population, surpassed only by Southern Tagalog which registered 14 percent of the population. These two regions, together with Central Luzon, accounted for more than a third of the country's population. The six least populated regions are Cordillera AdministrativeRegion (CAR), Cagayan Valley, Bicol, Eastern Visayas, Western Mindanao and Central Mindanao, which are at the same time the least developed regions, as well as experiencing a relatively high level of civil unrest. The overall population density increased from 122 persons per square kilometer in 1970 to 160 in 1980, and 202 in 1990. The average density in 1990 ranged from 12,498 persons per square kilometer in Metro Manila to 30 in Kalinga-Apayao in CAR. The slow decline in population growth has partly been brought about by a decline in both the fertility and mortality levels. In 1970, the crude birth rate was estimated at 39 births per 1,000 population, dropping slightly to 36 in 1980 and 29 in 1990. The total fertility rate for women 15-49 years dropped by about one child in two decades, from an estimated level of 5.1 children in 1970, to 4.7 in 1980 and 4.1 in 1990.