Philippines vs. Mexico

The Philippine Islands became a Spanish colony during the 16th century; they were ceded to the US in 1898 following the Spanish-American War. In 1935 the Philippines became a self-governing commonwealth. Manuel QUEZON was elected president and was tasked with preparing the country for independence after a 10-year transition. In 1942 the islands fell under Japanese occupation during World War II, and US forces and Filipinos fought together during 1944-45 to regain control. On 4 July 1946 the Republic of the Philippines attained its independence. A 21-year rule by Ferdinand MARCOS ended in 1986, when a "people power" movement in Manila ("EDSA 1") forced him into exile and installed Corazon AQUINO as president. Her presidency was hampered by several coup attempts that prevented a return to full political stability and economic development. Fidel RAMOS was elected president in 1992. His administration was marked by increased stability and by progress on economic reforms. In 1992, the US closed its last military bases on the islands. Joseph ESTRADA was elected president in 1998. He was succeeded by his vice-president, Gloria MACAPAGAL-ARROYO, in January 2001 after ESTRADA's stormy impeachment trial on corruption charges broke down and another "people power" movement ("EDSA 2") demanded his resignation. MACAPAGAL-ARROYO was elected to a six-year term as president in May 2004. Her presidency was marred by several corruption allegations but the Philippine economy was one of the few to avoid contraction following the 2008 global financial crisis, expanding each year of her administration. Benigno AQUINO III was elected to a six-year term as president in May 2010 and was succeeded by Rodrigo DUTERTE in May 2016.

The Philippine Government faces threats from several groups, some of which are on the US Government's Foreign Terrorist Organization list. Manila has waged a decades-long struggle against ethnic Moro insurgencies in the southern Philippines, which led to a peace accord with the Moro National Liberation Front and a separate agreement with a break away faction, the Moro Islamic Liberation Front. The decades-long Maoist-inspired New People's Army insurgency also operates through much of the country. In 2017, Philippine armed forces battled an ISIS-Philippines siege in Marawi City, driving DUTERTE to declare martial law in the region. The Philippines faces increased tension with China over disputed territorial and maritime claims in the South China Sea.

The site of several advanced Amerindian civilizations - including the Olmec, Toltec, Teotihuacan, Zapotec, Maya, and Aztec - Mexico was conquered and colonized by Spain in the early 16th century. Administered as the Viceroyalty of New Spain for three centuries, it achieved independence early in the 19th century. Elections held in 2000 marked the first time since the 1910 Mexican Revolution that an opposition candidate - Vicente FOX of the National Action Party (PAN) - defeated the party in government, the Institutional Revolutionary Party (PRI). He was succeeded in 2006 by another PAN candidate Felipe CALDERON, but Enrique PENA NIETO regained the presidency for the PRI in 2012. Left-leaning antiestablishment politician and former mayor of Mexico City (2000-05) Andres Manuel LOPEZ OBRADOR, from the National Regeneration Movement (MORENA), became president in December 2018.

The global financial crisis in late 2008 caused a massive economic downturn in Mexico the following year, although growth returned quickly in 2010. Ongoing economic and social concerns include low real wages, high underemployment, inequitable income distribution, and few advancement opportunities for the largely indigenous population in the impoverished southern states. Since 2007, Mexico's powerful drug-trafficking organizations have engaged in bloody feuding, resulting in tens of thousands of drug-related homicides.

astride typhoon belt, usually affected by 15 and struck by five to six cyclonic storms each year; landslides; active volcanoes; destructive earthquakes; tsunamis

volcanism: significant volcanic activity; Taal (311 m), which has shown recent unrest and may erupt in the near future, has been deemed a Decade Volcano by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to its explosive history and close proximity to human populations; Mayon (2,462 m), the country's most active volcano, erupted in 2009 forcing over 33,000 to be evacuated; other historically active volcanoes include Biliran, Babuyan Claro, Bulusan, Camiguin, Camiguin de Babuyanes, Didicas, Iraya, Jolo, Kanlaon, Makaturing, Musuan, Parker, Pinatubo, and Ragang; see note 2 under "Geography - note"

tsunamis along the Pacific coast, volcanoes and destructive earthquakes in the center and south, and hurricanes on the Pacific, Gulf of Mexico, and Caribbean coasts

volcanism: volcanic activity in the central-southern part of the country; the volcanoes in Baja California are mostly dormant; Colima (3,850 m), which erupted in 2010, is Mexico's most active volcano and is responsible for causing periodic evacuations of nearby villagers; it has been deemed a Decade Volcano by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to its explosive history and close proximity to human populations; Popocatepetl (5,426 m) poses a threat to Mexico City; other historically active volcanoes include Barcena, Ceboruco, El Chichon, Michoacan-Guanajuato, Pico de Orizaba, San Martin, Socorro, and Tacana; see note 2 under "Geography - note"

note 1: for decades, the Philippine archipelago was reported as having 7,107 islands; in 2016, the national mapping authority reported that hundreds of new islands had been discovered and increased the number of islands to 7,641 - though not all of the new islands have been verified; the country is favorably located in relation to many of Southeast Asia's main water bodies: the South China Sea, Philippine Sea, Sulu Sea, Celebes Sea, and Luzon Strait

note 2: Philippines is one of the countries along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

note 3: the Philippines sits astride the Pacific typhoon belt and an average of 9 typhoons make landfall on the islands each year - with about 5 of these being destructive; the country is the most exposed in the world to tropical storms

note 1: strategic location on southern border of the US; Mexico is one of the countries along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

note 2: some of the world's most important food crops were first domesticated in Mexico; the "Three Sisters" companion plants - winter squash, maize (corn), and climbing beans - served as the main agricultural crops for various North American Indian groups; all three apparently originated in Mexico but then were widely disseminated through much of North America; avocado, amaranth, and chili peppers also emanate from Mexico, as does vanilla, the world's most popular aroma and flavor spice; although cherry tomatoes originated in Ecuador, their domestication in Mexico transformed them into the larger modern tomato

note 3: the Sac Actun cave system at 348 km (216 mi) is the longest underwater cave in the world and the second longest cave worldwide, after Mammoth Cave in the United States (see "Geography - note" under United States)

note 4: the prominent Yucatan Peninsula that divides the Gulf of Mexico from the Caribbean Sea is shared by Mexico, Guatemala, and Belize; just on the northern coast of Yucatan, near the town of Chicxulub (pronounce cheek-sha-loob), lie the remnants of a massive crater (some 150 km in diameter and extending well out into the Gulf of Mexico); formed by an asteroid or comet when it struck the earth 66 million years ago, the impact is now widely accepted as initiating a worldwide climate disruption that caused a mass extinction of 75% of all the earth's plant and animal species - including the non-avian dinosaurs

81 provinces and 38 chartered cities

provinces: Abra, Agusan del Norte, Agusan del Sur, Aklan, Albay, Antique, Apayao, Aurora, Basilan, Bataan, Batanes, Batangas, Biliran, Benguet, Bohol, Bukidnon, Bulacan, Cagayan, Camarines Norte, Camarines Sur, Camiguin, Capiz, Catanduanes, Cavite, Cebu, Cotabato, Davao del Norte, Davao del Sur, Davao de Oro, Davao Occidental, Davao Oriental, Dinagat Islands, Eastern Samar, Guimaras, Ifugao, Ilocos Norte, Ilocos Sur, Iloilo, Isabela, Kalinga, Laguna, Lanao del Norte, Lanao del Sur, La Union, Leyte, Maguindanao, Marinduque, Masbate, Mindoro Occidental, Mindoro Oriental, Misamis Occidental, Misamis Oriental, Mountain, Negros Occidental, Negros Oriental, Northern Samar, Nueva Ecija, Nueva Vizcaya, Palawan, Pampanga, Pangasinan, Quezon, Quirino, Rizal, Romblon, Samar, Sarangani, Siquijor, Sorsogon, South Cotabato, Southern Leyte, Sultan Kudarat, Sulu, Surigao del Norte, Surigao del Sur, Tarlac, Tawi-Tawi, Zambales, Zamboanga del Norte, Zamboanga del Sur, Zamboanga Sibugay;

chartered cities: Angeles, Bacolod, Baguio, Butuan, Cagayan de Oro, Caloocan, Cebu, Cotabato, Dagupan, Davao, General Santos, Iligan, Iloilo, Lapu-Lapu, Las Pinas, Lucena, Makati, Malabon, Mandaluyong, Mandaue, Manila, Marikina, Muntinlupa, Naga, Navotas, Olongapo, Ormoc, Paranaque, Pasay, Pasig, Puerto Princesa, Quezon, San Juan, Santiago, Tacloban, Taguig, Valenzuela, Zamboanga

The economy has been relatively resilient to global economic shocks due to less exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from about 10 million overseas Filipino workers and migrants, and a rapidly expanding services industry. During 2017, the current account balance fell into the negative range, the first time since the 2008 global financial crisis, in part due to an ambitious new infrastructure spending program announced this year. However, international reserves remain at comfortable levels and the banking system is stable.

Efforts to improve tax administration and expenditures management have helped ease the Philippines' debt burden and tight fiscal situation. The Philippines received investment-grade credit ratings on its sovereign debt under the former AQUINO administration and has had little difficulty financing its budget deficits. However, weak absorptive capacity and implementation bottlenecks have prevented the government from maximizing its expenditure plans. Although it has improved, the low tax-to-GDP ratio remains a constraint to supporting increasingly higher spending levels and sustaining high and inclusive growth over the longer term.

Economic growth has accelerated, averaging over 6% per year from 2011 to 2017, compared with 4.5% under the MACAPAGAL-ARROYO government; and competitiveness rankings have improved. Although 2017 saw a new record year for net foreign direct investment inflows, FDI to the Philippines has continued to lag regional peers, in part because the Philippine constitution and other laws limit foreign investment and restrict foreign ownership in important activities/sectors - such as land ownership and public utilities.

Although the economy grew at a rapid pace under the AQUINO government, challenges to achieving more inclusive growth remain. Wealth is concentrated in the hands of the rich. The unemployment rate declined from 7.3% to 5.7% between 2010 and 2017; while there has been some improvement, underemployment remains high at around 17% to 18% of the employed population. At least 40% of the employed work in the informal sector. Poverty afflicts more than a fifth of the total population but is as high as 75% in some areas of the southern Philippines. More than 60% of the poor reside in rural areas, where the incidence of poverty (about 30%) is more severe - a challenge to raising rural farm and non-farm incomes. Continued efforts are needed to improve governance, the judicial system, the regulatory environment, the infrastructure, and the overall ease of doing business.

2016 saw the election of President Rodrigo DUTERTE, who has pledged to make inclusive growth and poverty reduction his top priority. DUTERTE believes that illegal drug use, crime and corruption are key barriers to economic development. The administration wants to reduce the poverty rate to 17% and graduate the economy to upper-middle income status by the end of President DUTERTE's term in 2022. Key themes under the government's Ten-Point Socioeconomic Agenda include continuity of macroeconomic policy, tax reform, higher investments in infrastructure and human capital development, and improving competitiveness and the overall ease of doing business. The administration sees infrastructure shortcomings as a key barrier to sustained economic growth and has pledged to spend $165 billion on infrastructure by 2022. Although the final outcome has yet to be seen, the current administration is shepherding legislation for a comprehensive tax reform program to raise revenues for its ambitious infrastructure spending plan and to promote a more equitable and efficient tax system. However, the need to finance rehabilitation and reconstruction efforts in the southern region of Mindanao following the 2017 Marawi City siege may compete with other spending on infrastructure.

Mexico's $2.4 trillion economy - 11th largest in the world - has become increasingly oriented toward manufacturing since the North American Free Trade Agreement (NAFTA) entered into force in 1994. Per capita income is roughly one-third that of the US; income distribution remains highly unequal.

Mexico has become the US' second-largest export market and third-largest source of imports. In 2017, two-way trade in goods and services exceeded $623 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of its trade under free trade agreements. In 2012, Mexico formed the Pacific Alliance with Peru, Colombia, and Chile.

Mexico's current government, led by President Enrique PENA NIETO, has emphasized economic reforms, passing and implementing sweeping energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Since 2015, Mexico has held public auctions of oil and gas exploration and development rights and for long-term electric power generation contracts. Mexico has also issued permits for private sector import, distribution, and retail sales of refined petroleum products in an effort to attract private investment into the energy sector and boost production.

Since 2013, Mexico's economic growth has averaged 2% annually, falling short of private-sector expectations that President PENA NIETO's sweeping reforms would bolster economic prospects. Growth is predicted to remain below potential given falling oil production, weak oil prices, structural issues such as low productivity, high inequality, a large informal sector employing over half of the workforce, weak rule of law, and corruption. Mexico's economy remains vulnerable to uncertainty surrounding the future of NAFTA - because the United States is its top trading partner and the two countries share integrated supply chains - and to potential shifts in domestic policies following the inauguration of a new a president in December 2018.

high unemployment and rural population impede investment in fixed infrastructure; dominance in the mobile segment and rapid development of mobile broadband; investment focused on fiber infrastructure in urban areas with 4G available in most areas; national broadband plan to improve connectivity in rural areas underway; data center and smart city pilot in Manila; submarine cable link and satellite improves telecom for the region; major exporter of integrated circuits to China, and importer of circuits and broadcasting equipment from China (2021)

with a large population and relatively low broadband and mobile penetration, Mexico's telecom sector has potential for growth; adequate telephone service for business and government; improving quality and increasing mobile cellular availability, with mobile subscribers far outnumbering fixed-line subscribers; relatively low broadband and mobile penetration, potential for growth and international investment; extensive microwave radio relay network; considerable use of fiber-optic cable and coaxial cable; 5G development slow given the existing capabilities of LTE; IXP in Mexico City; exporter of computers and broadcasting equipment to USA, and importer of same from China (2021)

Philippines claims sovereignty over Scarborough Reef (also claimed by China together with Taiwan) and over certain of the Spratly Islands, known locally as the Kalayaan (Freedom) Islands, also claimed by China, Malaysia, Taiwan, and Vietnam; the 2002 "Declaration on the Conduct of Parties in the South China Sea," has eased tensions in the Spratly Islands but falls short of a legally binding "code of conduct" desired by several of the disputants; in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord to conduct marine seismic activities in the Spratly Islands; Philippines retains a dormant claim to Malaysia's Sabah State in northern Borneo based on the Sultanate of Sulu's granting the Philippines Government power of attorney to pursue a sovereignty claim on his behalf; maritime delimitation negotiations continue with Palau

abundant rainfall in recent years along much of the Mexico-US border region has ameliorated periodically strained water-sharing arrangements; the US has intensified security measures to monitor and control legal and illegal personnel, transport, and commodities across its border with Mexico; Mexico must deal with thousands of impoverished Guatemalans and other Central Americans who cross the porous border looking for work in Mexico and the US; Belize and Mexico are working to solve minor border demarcation discrepancies arising from inaccuracies in the 1898 border treaty