Philippines vs. Peru

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.

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"

earthquakes, tsunamis, flooding, landslides, mild volcanic activity

volcanism: volcanic activity in the Andes Mountains; Ubinas (5,672 m), which last erupted in 2009, is the country's most active volcano; other historically active volcanoes include El Misti, Huaynaputina, Sabancaya, and Yucamane; 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: shares control of Lago Titicaca, world's highest navigable lake, with Bolivia; a remote slope of Nevado Mismi, a 5,316 m peak, is the ultimate source of the Amazon River

note 2: Peru 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: on 19 February 1600, Mount Huaynaputina in the southern Peruvian Andes erupted in the largest volcanic explosion in South America in historical times; intermittent eruptions lasted until 5 March 1600 and pumped an estimated 16 to 32 million metric tons of particulates into the atmosphere reducing the amount of sunlight reaching the earth's surface and affecting weather worldwide; over the next two and a half years, millions died around the globe in famines from bitterly cold winters, cool summers, and the loss of crops and animals

note 4: the southern regions of Peru and the extreme northwestern part of Bolivia are considered to be the place of origin for the common potato

The Philippines is an ethnically diverse country that is in the early stages of demographic transition.  Its fertility rate has dropped steadily since the 1950s.  The decline was more rapid after the introduction of a national population program in the 1970s in large part due to the increased use of modern contraceptive methods, but fertility has decreased more slowly in recent years.  The country's total fertility rate (TFR) - the average number of births per woman - dropped below 5 in the 1980s, below 4 in the 1990s, and below 3 in the 2010s.  TFR continues to be above replacement level at 2.9 and even higher among the poor, rural residents, and the less-educated.  Significant reasons for elevated TFR are the desire for more than two children, in part because children are a means of financial assistance and security for parents as they age, particularly among the poor.

The Philippines are the source of one of the world's largest emigrant populations, much of which consists of legal temporary workers known as Overseas Foreign Workers or OFWs.  As of 2019, there were 2.2 million OFWs.  They work in a wide array of fields, most frequently in services (such as caregivers and domestic work), skilled trades, and construction but also in professional fields, including nursing and engineering.  OFWs most often migrate to Middle Eastern countries, but other popular destinations include Hong Kong, China, and Singapore, as well as employment on ships.  Filipino seafarers make up 35-40% of the world's seafarers, as of 2014.   Women OFWs, who work primarily in domestic services and entertainment, have outnumbered men since 1992. 

Migration and remittances have been a feature of Philippine culture for decades.  The government has encouraged and facilitated emigration, regulating recruitment agencies and adopting legislation to protect the rights of migrant workers.  Filipinos began emigrating to the US and Hawaii early in the 20^th century.  In 1934, US legislation limited Filipinos to 50 visas per year except during labor shortages, causing emigration to plummet.  It was not until the 1960s, when the US and other destination countries - Canada, Australia, and New Zealand - loosened their immigration policies, that Filipino emigration expanded and diversified.  The government implemented an overseas employment program in the 1970s, promoting Filipino labor to Gulf countries needing more workers for their oil industries.  Filipino emigration increased rapidly.  The government had intended for international migration to be temporary, but a lack of jobs and poor wages domestically, the ongoing demand for workers in the Gulf countries, and new labor markets in Asia continue to spur Philippine emigration.

Peru's urban and coastal communities have benefited much more from recent economic growth than rural, Afro-Peruvian, indigenous, and poor populations of the Amazon and mountain regions. The poverty rate has dropped substantially during the last decade but remains stubbornly high at about 30% (more than 55% in rural areas). After remaining almost static for about a decade, Peru's malnutrition rate began falling in 2005, when the government introduced a coordinated strategy focusing on hygiene, sanitation, and clean water. School enrollment has improved, but achievement scores reflect ongoing problems with educational quality. Many poor children temporarily or permanently drop out of school to help support their families. About a quarter to a third of Peruvian children aged 6 to 14 work, often putting in long hours at hazardous mining or construction sites.

Peru was a country of immigration in the 19th and early 20th centuries, but has become a country of emigration in the last few decades. Beginning in the 19th century, Peru brought in Asian contract laborers mainly to work on coastal plantations. Populations of Chinese and Japanese descent - among the largest in Latin America - are economically and culturally influential in Peru today. Peruvian emigration began rising in the 1980s due to an economic crisis and a violent internal conflict, but outflows have stabilized in the last few years as economic conditions have improved. Nonetheless, more than 2 million Peruvians have emigrated in the last decade, principally to the US, Spain, and Argentina.

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

Alliance for Progress (Alianza para el Progreso) or APP [Cesar ACUNA Peralta]
American Popular Revolutionary Alliance or APRA [Cesar TRELLES Lara]
Broad Front (Frente Amplio; also known as El Frente Amplio por Justicia, Vida y Libertad) (coalition includes Nuevo Peru [Veronika MENDOZA], Tierra y Libertad [Marco ARANA Zegarra], and Fuerza Social [Susana VILLARAN de la Puente]
Free Peru (Peru Libre) [Vladimir CERRON Rojas]
National Solidarity (Solidaridad Nacional) or SN [Luis CASTANEDA Lossio]
National Victory (Victoria Nacional) or VN [George FORSYTH Sommer]
Peru Posible or PP (coalition includes Accion Popular and Somos Peru) [Alejandro TOLEDO Manrique]
Peruvian Aprista Party (Partido Aprista Peruano) or PAP [Javier VELASQUEZ Quesquen] (also referred to by its original name Alianza Popular Revolucionaria Americana or APRA)
Peruvian Nationalist Party [Ollanta HUMALA]
Peruvians for Change (Peruanos Por el Kambio) or PPK [Pedro Pablo KUCZYNSKI]
Popular Action (Accion Popular) or AP [Mesias GUEVARA Amasifuen]
Popular Christian Party (Partido Popular Cristiano) or PPC [Lourdes FLORES Nano]
Popular Force (Fuerza Popular; formerly Fuerza 2011) [Keiko FUJIMORI Higuchi]
Popular Renewal (Renovacion Popular) [Rafael LOPEZ ALIAGA]
Purple Party (Partido Morado) [Julio Armando GUZMAN Caceres]
Social Integration Party (Avanza Pais - Partido de Integracion Social) [Pedro CENAS Casamayor]
Together For Peru (Juntos por el Peru) or JP [Robert SANCHEZ Palomino]
We Are Peru (Somos Peru) [Patricia LI]
We Can Peru (Podemos Peru) [Jose Leon LUNA Galvez]

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.

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru's lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.

Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

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)

economic impact on telcom services during pandemic due to consumer unemployment; good mobile operator competition with LTE services; fixed-line tele-density remains among lowest in South America, with obstacles to growth including widespread poverty, fixed-to-mobile substitution, expensive telephone services, and geographical inaccessibility in the Andean mountains and Amazon jungles; government investment in underserved areas with fiber backbone; government facilitated virtual learning during pandemic via tablets with Internet connectivity; 3G network and new LTE services expanded providing mobile broadband to rural communities, though low penetration still exists; major importer of broadcasting equipment and computers from China (2021)

the International Maritime Bureau reports the territorial waters of littoral states and offshore waters in the South China Sea as high risk for piracy and armed robbery against ships; an emerging threat area lies in the Celebes and Sulu Seas between the Philippines and Malaysia where three ships were attacked in 2020; numerous commercial vessels have been attacked and hijacked both at anchor and while underway; hijacked vessels are often disguised and cargoes stolen

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

Chile and Ecuador rejected Peru's November 2005 unilateral legislation to shift the axis of their joint treaty-defined maritime boundaries along the parallels of latitude to equidistance lines which favor Peru; organized illegal narcotics operations in Colombia have penetrated Peru's shared border; Peru rejects Bolivia's claim to restore maritime access through a sovereign corridor through Chile along the Peruvian border