Manuel Roxas

Economy

Economy of the Philippines under
President Manuel Roxas
1946–1948

Population
1948	19.23 million
Gross Domestic Product
1947	Php 85, 269 million
Growth rate, 1947–48	39.5%
Per capita income
1947	Php 4,434
Total exports
1947	Php 24, 824 million
Exchange rates
1 US$ = Php 2.00 1 Php = US$ 0.50
Sources: Philippine Presidency Project Malaya, Jonathan; Eduardo Malaya. So Help Us God... The Inaugurals of the Presidents of the Philippines. Anvil Publishing, Inc.

No sooner had the fanfare of the independence festivities ended that the government and the people quickly put all hands to work in the tasks of rescuing the country from its dire economic straits. Reputed to be the most bombed and destroyed country in the world, the Philippines was in a sorry mess. Only Stalingrad and Warsaw, for instance, could compare with Manila in point of destruction. All over the country more than a million people were unaccounted for. The war casualties as such could very well reach the two million mark. Conservative estimates had it that the Philippines had lost about two thirds of her material wealth.^[9]

The country was facing near bankruptcy.^[9] There was no national economy, no export trade. Indeed, production for exports had not been restored. On the other hand, imports were to reach the amount of three million dollars. There was need of immediate aid from the United Nations Relief and Rehabilitation Administration. Something along this line was obtained. Again, loans from the United States, as well as some increase in the national revenues, were to help the new Republic.^[9]

President Roxas, with bold steps, met the situation with the same confidence he exuded in his inaugural address, when he said: "The system of free but guided enterprise is our system". Among the main remedies proposed was the establishment of the Philippine Rehabilitation Finance Corporation. This entity would be responsible for the construction of twelve thousand houses and for the grant of easy-term loans in the amount of 177,000,000 pesos. Another proposal was the creation of the Central Bank of the Philippines to help stabilize the Philippine dollar reserves and coordinate and the nations banking activities gearing them to the economic progress.

Concentrating on the sugar industry, President Roxas would exert such efforts as to succeed in increasing production from 13,000 tons at the time of the Philippine liberation to an all-high of one million tons.^[9]

Reconstruction after the war

The postwar Philippines had burned cities and towns, ruined farms and factories, blasted roads and bridges, shattered industries and commerce, and thousands of massacred victims. The war had paralyzed the educational system, where 80% of the school buildings, their equipment, laboratories and furniture were destroyed.^[10] Numberless books, invaluable documents and works of art, irreplaceable historical relics and family heirlooms, hundreds of churches and temples were burned. The reconstruction of the damaged school buildings alone cost more than Php 126,000,000,000.

The new Republic began to function on an annual deficit of over Php 200,000,000 with little prospect of a balanced budget for some years to come.^[11] Manila and other cities then were infested with criminal gangs which used techniques of American gangsters in some activities–bank holdups, kidnapping and burglaries. In rural regions, especially the provinces of Central Luzon and the Southern Tagalog regions, the Hukbalahaps and brigands terrorized towns and barrios.

Agrarian reform

In 1946, shortly after his induction to Presidency, Manuel Roxas proclaimed the Rice Share Tenancy Act of 1933 effective throughout the country.^[12] However problems of land tenure continued. In fact these became worse in certain areas.^[12] Among the remedial measures enacted was Republic Act No. 1946 likewise known as the Tenant Act which provided for a 70–30 sharing arrangements and regulated share-tenancy contracts.^[12] It was passed to resolve the ongoing peasant unrest in Central Luzon.^[12]

Amnesty proclamation

President Roxas, on January 28, 1948, granted full amnesty to all so-called Philippine collaborators, many of whom were on trial or awaiting to be tried, particularly former President José P. Laurel (1943–1945).^[9] The Amnesty Proclamation did not apply to those "collaborators", who were charged with the commission of common crimes, such as murder, rape, and arson. The presidential decision did much^[9] to heal a standing wound that somehow threatened to divide the people's sentiments. It was a much-called for measure to bring about a closer unity in the trying times when such was most needed for the progress of the nation.^[9]

Huks outlawed

Disgusted with the crimes being committed by Hukbó ng Bayan Laban sa Hapón (Nation's Army Against the Japanese, also called "the Huks") and possessing evidence of their subversion, Roxas issued a proclamation outlawing the Huk movement on March 6, 1948.^[9] It had become an imperative in view of the resurgence of Huk depredations, following the unseating of the seven Communists, led by Huk Supremo Luis Taruc through acts of terrorism.^[9]

Treaty of General Relations

On August 5, 1946, the Congress of the Philippines ratified the Treaty of General Relations that had been entered into by and between the Republic of the Philippines and the United States on July 4, 1946.^[9] Aside from withdrawing her sovereignty from the Philippines and recognizing her independence, the Treaty reserved for the United States some bases for the mutual protection of both countries; consented that the United States represent the Philippines in countries where the latter had not yet established diplomatic representation; made the Philippines assume all debts and obligations of the former government in the Philippines; and provided for the settlement of property rights of the citizens of both countries.^[9]

United States military bases

One of the last pictures of President Manuel Roxas.

Although Roxas was successful in getting rehabilitation funds from the United States after independence, he was forced to concede military bases (23 of which were leased for 99 years), trade restriction for the Philippine citizens, and special privileges for U.S. property owner and investor.

Parity Rights Amendment

On March 11, 1947, Philippine voters, agreeing with Roxas, ratified in a nationwide plebiscite the "parity amendment" to the 1935 Constitution of the Philippines, granting United States citizens the right to dispose of and utilize Philippine natural resources, or parity rights.

Turtle and Mangsee Islands

On 19 September 1946 the Republic of the Philippines notified the United Kingdom that it wished to take over the administration of the Turtle Islands and the Mangesse Islands. Pursuant to a supplemental international agreement, the transfer of administration became effective on 16 October 1947.^[13][14]