The Philippines' Economy
Marcos, Martial Law and Crony Capitalism
How Ferdinand Marcos's rule from 1965 to 1986 featured martial law, cronyism and huge foreign debt, ending in economic crisis and the People Power revolution.
Ferdinand Marcos ruled the Philippines from 1965 to 1986.
Martial law
Marcos declared martial law in 1972, ruling by decree.
Crony capitalism
- Friends and allies (“cronies”) received monopolies in industries like sugar, coconut and telecom.
- Large sums were allegedly stolen; estimates of the Marcos family’s wealth ran to billions of dollars.
Debt
- Heavy foreign borrowing financed projects, many wasteful.
- The Bataan Nuclear Power Plant was built but never operated.
Crisis
- The 1983 assassination of opposition leader Benigno Aquino Jr. triggered capital flight.
- The economy shrank sharply in 1984-85.
People Power
The 1986 EDSA revolution ousted Marcos; Corazon Aquino became president.
Legacy
Recovering stolen wealth took decades. Marcos’s son, Ferdinand “Bongbong” Marcos Jr., was elected president in 2022.
The unused plant
The Bataan nuclear plant cost billions of dollars in borrowed money but never produced electricity, a symbol of wasteful Marcos-era debt.
Thinking crony capitalism only harms politics
It wasted resources and caused an economic crisis.
Key takeaways
- Marcos ruled from 1965 to 1986, declaring martial law in 1972.
- Cronies received monopolies.
- Wasteful foreign debt led to crisis.
- People Power ousted Marcos in 1986.
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