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Philippines Table of Contents


The Business Elite

The Aquino assassination shattered business confidence at a time when the economy was suffering from years of mismanagement under the cronies and unfavorable international conditions. Business leaders, especially those excluded from regime-nurtured monopolies, feared that a continuation of the status quo would cause a collapse of the economy. Their apprehensions were shared by foreign creditors and international agencies such as the International Monetary Fund (IMF--see Glossary). Inflation and unemployment were soaring. The country's GNP became stagnant by 1983, and then it contracted--by -6.8 percent in 1984, and -3.8 percent in 1985, according to the IMF. There was a steep decline both in domestic and foreign investment. Outward capital flows reached as high as US$2 million a day in the panic that followed Aquino's death. The Makati area of Manila, with its banks, brokerage houses, luxury hotels, and upper-class homes, became a center of vocal resistance to the Marcos regime.

Data as of June 1991