UPSE Discussion Paper on Martial Law and the Philippine Economy
To those who were looking for references on the Philippine economy during the Martial Law years, look no further than a recent discussion paper from the UP School of Economics (UPSE). To quote from their social media post:
UPSE Discussion Paper No. 2021-07 (November 2021)
📌Title: Martial law and the Philippine economy
🖊Authors: Emmanuel S. de Dios, Maria Socorro Gochoco-Bautista, Jan Carlo Punongbayan
📄Abstract: Part of a proposed anthology, this article provides a concise review of the economic performance during the period of the Marcos dictatorship (1972-1985) from a comparative historical perspective. We examine the external events and internal policy responses that made possible the high growth in the early years of martial law and show that these are integral to explaining the decline and ultimate collapse of the economy in 1984-1985. The macroeconomic, trade, and debt policies pursued by the Marcos regime—particularly its failure to shift the country onto a sustainable growth path—are explained in the context of the regime’s larger political-economic programme of holding on to power and seeking rents.
📖 Read the full paper here: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1543/1027
Why is this relevant to transportation in the country? Economic performance and policies during that period strongly influenced if not practically dictated infrastructure development during the period. Add politics to the mix and you get what ultimately affected future administrations in terms of debt servicing and other financial or fiscal issues that needed to be addressed due to the debt incurred during that period.
We should learn from this and hopefully not repeat it. Unfortunately, the fiscal discipline and reforms during the previous administration appear to have been abandoned and the current spending and borrowing spree will likely handicap future administrations. Are there bad debts around? Probably! And so there will likely be a need to do some due diligence during the transition to a new administration after the elections this year.