ABSTRACT
IN THE 1960s, the Philippines had a formally democratic political system, the highest levels of per capita income, and most promising economic growth prospects in all Southeast Asia. But in 1972 President Marcos imposed martial law and proceeded to create a highly authoritarian fonn of rule that lasted until his overthrow in 1986, after nearly five years of serious economic decline. By then the country was falling behind the fast-growing Association of Southeast Asian Nations (ASEAN) "tiger" economies to a point where it was often called ''the sick man of Southeast Asia." Although a democratic mode of government was restored by President Corazon Aquino in early 1986, after the overthrow of Marcos in the legendary "People's Power" revolution, her government proved a disappointment to her left-of-center supporters who came to regard it as little more than a restoration of "the old oligarchy" that even Marcos had vowed to destroy (WurfeI1988). Worse, the economy continued to languish at low growth rates (except briefly in 1987-88) and declining per capita incomes until after the election of President Fidel Ramos in 1992. It then began to regain momentum toward annual growth rates of 5 to 6 percent in 1994-96, although at per capita income levels that are now well below all the original ASEAN countries, except Indonesia.
